DDL - Earnings call transcript Q4 2024 | Dingdong (Cayman) Limited

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Operator

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the Dingdong Limited Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded. I will now turn the conference over to the first speaker today, Nicky Zheng, Director of Investor Relations. Please go ahead, sir.

Nicky Zheng

you. Thank everyone. Hello, Fourth the Earnings Call. Welcome Quarter to XXXX me are today Mr. With CEO; Ling, our liang and Founder Changlin and Mr.

our Wang, Song CFO.

You can our ir.XXX.me. on XXXX financial refer to our IR fourth website quarter results at

our replay updates few this a available conclusion. access also it becomes can call You on website when a of

followed call, be will which management session. question-and-answer today's through their a For remarks, prepared go will by

this press Before harbor statement safe we to release, also you which our continue, I refer would call. applies to our like earnings to in

statements, terms, please explained in measures SEC. forward-looking and that will As our prepared comparable stated we making are and will non-GAAP are note the most release the filings remarks measures numbers be with [indiscernible] discuss to which today, are and reported the management's reconciled earnings following in in RMB we our

to turn Liang. our speaker now Dingdong, CEO today, and will the the of first founder I Ms. call

Liang Changlin

joining Thank fourth ninth XXXX. profitability achieved everyone. non-GAAP you Hello, GAAP [Interpreted] for Dingdong and for QX for earnings We quarter. quarter profitability the call for the consecutive consecutive the

Additionally, for stable X company's we development. solid a straight revenue for future foundation growth year-over-year has established This profitability quarters. recorded positive have the

on and I'll an analysis data followed present performance, a conclude and developments by with our brief operating our First, performance. of QX outlook future XXXX

RMB profit in a XXXX, points the X.XX of year-over-year to X.X a a loss turnaround Under an resulted an of This company's margin XX.X% achieved X.X%. billion, margin year-over-year. X.XX reported net XX RMB in net non-GAAP increase QX QX GAAP The XXXX, In million from a standards, Dingdong percentage XX in of RMB a XXXX. reported RMB Under to QX million, of year-over-year standards, increase. net XX.X% leading more profit X%, RMB profit a an GMV of million, billion, was profit of increase. net RMB than X.XX million revenue to Dingdang XXX grew Xx

year-over-year of increase billion, in marking last year. margin profit the million, turnaround the XXX net points X.X full of of RMB a reached more According the up Under increase RMB of significant million increase to Xx standards, last a year, of of XX.XX of non-GAAP XX RMB a compared XX.X% reported year, margin million of XX.X%. million, RMB profit billion, previous a Dingdong XXXX, representing Dingdong GMV resulting to same reported the year XXX in a a an period a net in Revenue net RMB from standard, the period RMB For XX.XX XX to than percentage X.X%. a X.X%, of profit GAAP loss Dingdong reported year-over-year. profit a same by net compared

growth is rapidly and increasing rates performance regions. rapid The user existing fueled conversion penetration, in improved ARPU higher by user mainly user

users a monthly number was up user transacting the in of year-over-year Regarding monthly QX, X.X average of approximately year-over-year. scale, points million, XX.X%. increase conversion The XX.X%, percentage rate average X.XX reached transaction

Additionally, a ARPU rise of year-over-year. X.X% saw

grow As rapidly, engagement continues rose. to users scale also user

improved built to capability comprehensive our on user strategies. retention QX's results, and across various X X.X In increase members, orders, performance average continued frequency strong a orders, the order These dimensions, operational frequent including showcasing outcomes X% users were average efforts development, repurchases. to high Among increase year-over-year. enhancements, an This monthly of rose placed data-driven QX, X.X%. attributed year-over-year experience of monthly product and a user

performance, rapid growth drivers regional and primary as show to the expansion. our overall Shanghai relatively continues Zhejiang serving Regarding Changshu, of

of year-over-year it than XX in XX%. region This quarter, grew achieved GMV by over and region GMV for and Shanghai the Notably, Zhejiang, year-over-year. the Jiangsu cities increased within XX% year-over-year, more Jiangsu, XX.X% a Shanghai growth while Sichuan

the in QX. the excluding year, season peak rate growth This quarter's regions [indiscernible] the highest was in these for

of stations network had frontline that opening in QX, in the quarterly development XXX those year the our we opened accelerated of total new XX QX achievement target the frontline QX a fulfillment station This XXX the stations end the fulfillment with mentioned of key throughout new conference. company during By alone. frontline We surpassed these of of annual regions. our

enhance the density efficiency to fulfillment network frontline core our station areas. these continue We and of in

goal distribution strengthen solid our to order for and XXXX. Our establish foundation was improved fulfillment further efficiency operational reduce capabilities, costs, a

the while you saw the New Lunar during would regions Year's sixth in I over first to day XX% lunar on the increased like of growth Nanjing update more of Ningbo, as It grew by than such Eve the From Changzhou and market of XX% New month, to Shanghai, performance national Year. GMV the year-over-year. Dingdong's core XX%.

some products key premix a These Luna even than significant saw including traditional period, alcoholic which New year-over-year beverages this the growth high-quality salmon sector, a driving in and and dishes, more XX% cases. Year's of are standout in increases, continued behind XXX% experienced growth. some Dingdong's products During seafood force

competitive better which X attributes Among better faster, X share. the landscape. more, and We've sees key in cheaper, involves opportunity on business groceries, This been the and areas: better. mind better better our users, services and our the better of fresh on greatest reflecting key company, focuses model products,

quality. and our for great our customers. ensure with ultimately we that delivering products maintain users' or ideas we products. food discovering are by consistent real and developing Here create high-quality Two, value high products One, aligning our needs to

our development While storytelling we aim improve a we single be differentiated to our at offerings. on working those and products products, products. cycle, achievable our user perfection continuously product to create Fourth, believe available may prices. in Three, responding structurally feedback lower not or in iterating for focus to we

appealing visually interesting be engaging we distinct entities attack users, to and positioning soulful Our value audience. propositions. To with create is first ourselves services, products attractive captivate valuable captivating, goal resonate compelling our to that as offerings customers. that Five, provide stories an must and designs and naturally feature packaging,

raw we Over including year, our variety customized and popular have milk. developed the Dingdong's past a products, of craft pumpkin

better clients are our mission to high-quality and also priced. mission our expanding committed service we're Better are the of that original aspiration. products ahead, to creating our Looking products, reasonably

Lastly, for QX of let's our turn to outlook XXXX.

first We of in Nonetheless, pursuing intense. impact and scale face in we're of from transitioning year-over-year in We competitiveness, expect XXXX, which And confident also short-term may in the more profitability quarter we XXXX. business. the the non-GAAP be so will competition we're us. to However, long-term achieve on growth and development scale the and focusing profitability, process quality the company's long-term maintain of

the Thank our to you for my go I over financials. would to call This CFO, all like Wang our turn song, concludes over to prepared remarks. listening.

Song Wang

[Interpreted] Thank you, Mr. and everyone. hello, Liang,

are financial quarter, our fourth for Before note of in that the RMB. I please all review our performance figures

and The annual reached cities RMB to of substantial and RMB growth growth. billion, increases significant GMV achieved while revenue XX experienced XX.XX GMV XX.X% XX.XX billion, respectively. Dingdong in profitability. XXXX, Notably, In year-over-year amounted double-digit reflecting XX.X%,

net Additionally, points the of for we a previous year-over-year, profit for Under X.X%, increase recording percentage with time, the margin an GAAP net XXX X.X impressive an year. of first our previous million. year profit to million, than with RMB of a profitability the a all-time which reached high. standards, profits X.X%, compared an year, X.X-fold percentage net the RMB of was Non-GAAP margin profit net achieved XXX profit X.X increase points higher is

X.XX RMB flow. our high increase full is XXX evident of year a RMB year-over-year. cash strong reached billion significant a operating net The million, inflow cash in our growth of Furthermore, historic

cash year the RMB in For million. the positive, amounting first history, time turned full our free XXX to flow

was X straight X In GAAP quarters. reported operating indicating This net net X.X%, for net QX, million, of consecutive while positive quarter, profitability profit cash Non-GAAP increase. stood year-over-year maintaining net of inflow RMB RMB billion, growth. fourth X.XX X%, quarters resulting Dingdong inflow was at year-over-year cash margin marks XX.X% margin in XXX profit consecutive quarter revenue profitability. positive the the an consecutive for ninth This of

a model, Through validated high-quality and supported profitability, has growth fulfillment network grocery response is This efficiency business stations. e-commerce sustained demonstrated we of our first frontline and quick capabilities. which our by have

is Highly inefficient increasingly significant structural opportunities the consumer China's businesses transitions both and sector to challenges. era, efficient a As experiencing industry changes. are retail presenting ones, replacing buyer-centric

will strong aiming consumers a with we establishing products ourselves stable path our services excellent provided with infrastructure differentiated while a own this experience. Of satisfy and capabilities. tasks Dingdong pragmatic Our us with a to challenging through have at past point. and continue valuable approach, successes find quality supply starting to new built foundation, tackle and

high-quality Revenue totaled for Let's products RMB purchases. XX.X% to remain billion, consumers We rise. rates increase XX.X% QX. of the committed repeat compared X.XX RMB to reached producing GMV results and attract down order and conversion that X.XX an Meanwhile, break an previous year. year-over-year billion, improved the

year-over-year. year-over-year increase averaging MAU transacting users high in The Additionally, of monthly MAUs rate of to years, conversion X.X%. QX record hit an XX.X%, a percentage also X.X of points recent experienced a increase

grew twice orders placing who users of month, XX.X% by X a year-over-year. about number than the week, shop those times Furthermore, more essentially, a

plan management margin consistently investment average profit of products chain. decrease turnover We increased X.X% to demonstrating days improve user X.X and sellable shortening ability at of efficiency was days, a XXXX, needs Gross less industry short-term groceries forecasting supply chain XX% The our efficiency supply products. to year-over-year. match XX year, increase XX.X%, the defect the enhance has build Leveraging each of in X.X points fresh direct intelligent stabilizing our than by and days proportion around in we of sourcing improve of a systems, and scheduling efficiency can overall to operational life our the with the year-over-year. better In was of percentage for our XXXX.

the remained the decreased by from points for loss stable, previous X.X top products rate percentage year. rate While our the out-of-stock

year, nearly year-over-year we percentage which an average primarily significant improved In volume in represented daily number a fulfillment cost X.X orders driven XXX operational per XX.X%, improvement orders QX, increase. efficiency. points order an fulfillment X,XXX in frontline cost a XX.X% the by frontline was Throughout the of station with and average of new rate year-over-year. XXXX stations the per fulfillment opened increase of was optimization station, The

service for down previous bringing reduced to we XX minutes. to instant orders and Additionally, it excellent supply deliver our the we compared time by our QX, fulfillment In continued algorithms capabilities. to X have users by chain to leveraging the year, minutes

rate X.X%, The was an to percentage marketing the of previous year. compared increase X.X points expense

our we plan drive traffic, leveraging ahead, and to continue Looking enhance of conversion. share, high-quality the efficiency its in products investment to promoting products our mind on good to advertising we'll boost

X.X for scale larger of management percentage and accounted The expense revenue, R&D effect. the reflecting points combined

will and our will to R&D, digital chain product and We ongoing This technology supply improving capabilities ultimately invest full technical capabilities, development agricultural algorithms. data efficiency. continue in chain investment enhance food

margin in profit million. a net of profit Non-GAAP XXX RMB was net X%, resulting

was of margin RMB X.X%, profit XX which a amounted million. net to GAAP net Additionally, profit

short-term and at RMB stood of efficiency the investment We're and an million loans, of actual balance balance utilization the balance increase of the optimizing capital RMB self-owned As short-term structure. of total cash of X.XX our of and end of financing X.XX XXXX. equivalents, RMB the cash QX, restricted was billion. end the reflecting funds our of short-term billion, After deducting funds XXX continually from

Furthermore, it days year-over-year, days. the long-term to and strengthen the to our to accounts by entire suppliers, XXXX year X.X partnerships shortened we of for payable period have maintain upstream services XX bringing down

concludes prepared the now can Operator, we This start session. remarks. my question-and-answer

Operator

from Chong Instructions] today [Operator comes first with Thomas The Jefferies. question

Thomas Chong

I this the First, for producing like high-quality company And [Interpreted] quarter. order the importance strategy congratulations and of the ask products items. results to quality about for the for excellent implemented developing would

to provide examples of products? with suppliers create collaborated you you quality could have So these how

Liang Changlin

us the you ongoing achieve strong to make try compared In and confidence changes. to continued profitability Thank greater question. for and given previous QX, the your results has we quarter, [Interpreted] to

and diverse collaborate effectively. aim to retailer for eager deeper, with like-minded move demand, one are consumer value where can another we're and support a not own to greater supplier we recognize partners consumers. beyond partnerships traditional In strengths that the foster ever-evolving to our Therefore, we succeed. We with to more market cooperative vast enough relationship create

we plan successful collaboration strength key In and us partners. to to of for categories outcomes. allow both our will leverage model, up leading to terms mutually This of beneficial open our with the business approach parties

digital corporative efficiency to capabilities operations. our committed This sharing and facilitate will our the of enhance On the our business transformation and investing we're our partners. IT side, technical in with

increasing dedicated innovating financing we're backing. partners investment, to providing and financial our chain support, models our with financial stronger Regarding supply

with and strategic communication, partnering center corporation This example, to sourcing Their and suppliers. research and For been strategies, production fresh supply through alignment product has since flourished for chicken. bleeding product a has ongoing XXXX efforts processes. led professional span to cooperative Xingyang between professional feed ensuring sales its feedback, from shared both in Dingdong's collaboration aligning to Dingdong advanced success and parties. has approach quality development have introducing This

chicken range reached customized In XXXX, XX the [indiscernible] RMB sales million, year-over-year Dingdong XX% of increase. free a

corporative for and the mutual supply progress, with our value foundation together harmony consumers This We chain. invest achieve strategy trust to of creating in our you. Thank partners, working together. upstream upstream is in the development

Operator

comes Hong question Lou with CICC. The next from

Unknown Analyst

quarterly company given Congratulations Does own that have results. a developing supply factory chain products [Interpreted] strong examples question. the to food the processing? company's have it own production for of good research, its development, using has I follow-up and its

Liang Changlin

and we comprehensive led [Interpreted] has our the production is the development serve development which development. high-quality upgrading. as always an supply chain mechanism core for this independent optimization system. our and to has for Thank to achieve strategy established on A force you capabilities, a product your goal, To Dingdong's crucial factories, this around which have operating self-operated continuous of behind system focused for R&D report question. unique We're continuously creating a and product driving our consumers. dedicated centered

year, company to supply from product company. [indiscernible] Over the been has chain brand past a factory a our transitioning

For regional development concludes develops with example, carefully give evolve memories begins and [indiscernible] needs final with product. flavors them process consumer our products [indiscernible], specialties, of private the understanding Moreover, our label, that to recreate entire consumption emotional product the and traditional value. and

production. design, This product factory our replication, research mass production at includes development, formula pilot and and process

innovation. Our ability process to enhances this products the the of maintain and a iterate close brand's in loop dynamism entire continuously

are Our more consumers XX over Currently, manufactured our exported. but available only own not regions dedication through Fresh stage products This can larger to them on environment. also KA our more our In our efforts. in wider JVX as we factories distribute a in compete allows worldwide. countries Wanhua, to and and and showcasing effectively products Huazhu. channels through We're can products are market our and us China, sold committed channels, more such high-quality so direct own experience a in be that

for better is for everyone life. goal their aspirations Our to a achieve

you. Thank

Operator

session. management to for concludes I closing This turn the to our like question-and-answer remarks. would over back call

Nicky Zheng

call our joining for again you Thank today.

with please If contactors request you look a have questions, speaking website. further IR in night. next your our Have everyone good have and We or free to feel any good call. a to through earnings day, forward

Operator

Thank for The presentation. attending conference has now concluded. today's you

You may disconnect. now

Dingdong (DDL) 6 Mar 252024 Q4 Earnings call transcript