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New strategy results in higher net losses for Pinduoduo

Nov 22, 2018 by The Passage Team
New strategy results in higher net losses for Pinduoduo

Revenue for the three months ended September 30 jumped seven-fold to 3.4 billion yuan (USD490 million), although net losses for the company increased to 1.1 billion yuan, up about 496% compared to the same time last year.

Sales and marketing costs increased about seven times to 3.2 billion yuan, and the cost of online marketplace services jumped four times to 774.7 million yuan. “Though our monetisation rate continued to improve, it was partially offset by the strategy we announced in the last quarter after rewarding higher quality merchants with more traffic,” said Colin Huang Zheng, chief executive and chairman of Pinduoduo.

Source: South China Morning Post

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