Dingdong (DDL) 11 Nov 222022 Q3 Earnings call transcript

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the Dingdong Limited Third Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. Please note that this event is being recorded. I will now turn the conference over to the first speaker today, Mickey Zing [ph], Director of Investor Relations. sir. ahead, go Please

CSO. everyone, With to Changlin us CEO; Yu, Founder Hello, XXXX Liang, third earnings and our Le Ms. call. today and and you. Dingdong welcome quarter our Thank are Mr.

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first, a call, today's management For question-and-answer then hosting will be their remarks will we and prepared session. provide

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

will which following Dingdong, measures please the note comparable will management's are I first turn and most and reconciled release more in we discuss and terms. that please earnings this Founder the are the making Liang. remarks speaker will reported filings in RMB to SEC. solidly with in of go ahead. explained the Mr. your today, stated As forward-looking Mr. the prepared call And to be today, Liang, now our our measures CEO statements, we numbers non-GAAP

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please are the our I note that Before XXXX by through detailed remarks QX following stated X% RMB in billion, terms. results, all financial you was numbers down in year-over-year. in RMBX.XX slightly walk Revenue

margin net revenue However, gross while a achieved in by first XX.X this XX.X% quarters the narrowing growth of three the points. year, percentage we

granted concessions year, on higher efficiency quality operational subsidies strategy Our in contrast, the with our we costs revenue QX consideration In to efficiency year was last QX first and of in to committed enhancing by product while driven due to users. were scale. order fulfillment reducing extensive and this

capabilities profit testimony XX.X% we significant As growth efficiency. to product gross by a operational in a result, development our a growing achieved and year-over-year,

expect on returning growth roughly a We non-GAAP our with year-over-year trajectory. to in this basis QX GMV to year breakeven

was points Gross room still Let’s over but the been and a was ago. margin percentage conversion both performance. up short at the QX XX.X has gross year, up quarter significant margin X.X more for in look past we to in percentage third The the a take revenue GMV from detailed ago. year a points rate growth XX%, year long-term. The from for the anticipate improvement the XX.X%,

the fulfillment higher of than are Our because engaged in traditional those model submarket deeply might chain. supply costs more we be the

generates commitment However, such also higher gross a margin.

clusters temperatures digitalize rate using most by models introducing traditional peers In For of suppliers. management example, also storage regional processing chain, processes in in to city in we centers. standardize online our supermarkets are such different fresh supply of and the from contrast, our our growth

in of the ratio As was a result, regional our X.X%. QX centers processing expense

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fully extensive our in in margins. the chain the reflected current participation be supply gross and Our far-reaching yet has to

We worker expect XX mentioned. into to for points average order improve it fulfillment XX.X%, higher X translate profitability as and primarily efficiency. down value of to expense points, year-over-year, The owing was QX ratio percentage optimization we front-line

in quarter, mind [indiscernible] development a in Dingdong’s capabilities share. recorded also We consumer and by AOV XX% improvement this year-over-year driven product better

by the stations was Our by XX.X%. down from The expense X.X ago. for percentage staff marketing X.X%, XX.X% efficiency year efficiency points year-over-year. fulfillment increased And quarter delivery front-line in-warehouse third improved ratio a

capabilities by ratio ago. and XX.X% R&D a users year-over-year per year brand grew declined image. The cost acquisition expense The acting below from to G&A ago. X% customer development X.X% driven year the by X.X% a addition, In from product significantly ratio expense new slightly to X.X% better gen dropped

loss QX competitive and Going X.X%, wasteful We GAAP by points points percentage while QX, forward, investment lockdown. for the by net margin headquarters X our and investors. before and year was R&D to XX.X and percentage areas loss year technical expenses this strengthen year compared XX.X food three at narrowed percentage X.X%, advantage we infrastructure create technology net continue costs. algorithms last the compared non-GAAP cut to to in above investment from margin ago. points QX will with value will culture COVID was In The believe a narrowed our in long-term data minimizing

gross In At expense short-term gained penetration, restricted operating chain in emerged our end in growing online time, operational reduced introducing better of outflow million from we summary, efficiency. capabilities adjusted AOV, demand consumers’ non-GAAP cash lockdown upward million net Excluding RMBXXX RMBX.X equivalents, product to by QX, solid the traction, QX of our and a cash, to product and the gross a life. higher At and same we meet we margin a since was supply quality cash observed for margin X.X%. in the we our trend finance. onetime from investment. had our development we QX, offered billion RMBXX.X a In cash million, RMBXXX

retention becoming month a net monthly or a result, member with longer increased. were contribution XXX GMV average. over us, highly our the month sticky a of of believe Dingdong’s an more XX.X% on Dingdong more stayed users is rate users’ of and As lives. We part their member integral loyal with The GMV this net

in our we last Such This today. prepared than business and notable years the QX, the efficiency we When year-over-year take net breakeven. to Operator, by profitability concludes strategy non-GAAP vitality less we a into from to achieve that, margin our have X.X Going to our first be QX the now as percentage XX.X% for of would’ve gross questions. optimization year. lower growth our and when non-GAAP to close ready remarks points demonstrated over will are expect began return in XX trajectory model. we we

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conference for remarks. as to hand this And closing there Thank our management back further I'd to like questions you. at time, the are no

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lines, You a your may day. now disconnect have and wonderful