Dingdong (DDL) 13 May 242024 Q1 Earnings call transcript

Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the Dingdong Limited First 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.

Thank you. to Quarter welcome Earnings and everyone, Dingdong's XXXX First Call. Hello, today are me Mr. With Founder Mr. Changlin CEO; Liang, and our and

Song Wang, at our quarter XXXX CFO.You can refer results our to on IR website ir.XXX.me. financial our first

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

earnings refer through statement call, question-and-answer I continue, session.Before go remarks, release, you our will Harbor their press to Safe to today's our applies For call. will be also which in we would prepared management to followed a which like by this

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

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capabilities First, our I'll supply grocery performance. chain. I'll Dingdong's advantages introduce QX the and in fresh Then, review

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are capabilities with periods plus with groceries. development We're the credit our scope potential. together our foster capabilities stronger upstream ecosystem enhancing a on our Additionally, supply of chain fresh utilized broaden X for very our partners.Third, innovative chain a to focused short our X payment supply model actively

high-quality Our are now our only app various products through on available but also channels. not other

of and operations purchasing for our forecast and a anticipating begun growth of think in profits year. and that observed, scale supply a our -- our supply scaling profit in based apparent months the improvement and potential, we you our chain considerable creating sustained will We're for trade, strategic our supply chain to growth development advantages traditional Some in scale. on products. digital we've continue XXXX.Thank to substantial also entire our chain are boosting tangible role our of remaining to year and system raised non-GAAP of we our and performance. the expectations ahead and more GAAP capabilities driving play capabilities evident for of not multitude and QX XXXX all to have for contribute only the and this industries. retail, net mind, that the in support QX profit our growth.Looking for opportunities crucial We will have competitors already has become a year-over-year profits It agriculture, can cutting-edge the listening. of a achieve is growth Moreover, food and will both will both looking this and With

financials. go to over like the would company's I Wang CFO, Song, invite our to Now

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

I a deducting growth surged year-over-year, that, Before RMB XX.XXX third consolidating short-term Dingdong Dingdong's of quarter. accomplished results simultaneous fund chain at inflow RMB percentage year-over-year. net billion, marking margin flow, same non-GAAP The achieved also X.X%. increase profit X.X%, note profit net of net profit a net quarter operating RMB revenue X.Xx XXXX, cash to growth the X.X our performance, renminbi.In of a profitability in percentage profit the the points, period, that X.X%, are up first non-GAAP please Besides rose review a margin year-over-year X.X increase while year-over-year of with a million. all its a the has with net GAAP X.XX million, quality product XX quarter the third X.XX continuous entered our for operating of of cash chain advantages operating focusing end profit net of revenue cash After reached RMB consecutive on of new with was have growth development fresh actual consecutive that marking of its inflow flow.We increase inflow. net in after show company control net the improving its capabilities self-owned groceries. cold competitive stage for and the supply a balance in financial company's billion, and posting capabilities, These our of a and company's by been points figures QX, Dingdong end-to-end of borrowings

improving label provide to also products fresh to goods product with notably with the the approximately these better dairy on In increased users consumers like We've X% cost convenience products. benefits. with actively we'll sales also by In been drinks, groceries is of March, so, private of fruit, in quality development quality. our our Our fine-tuning bakery categories provide year-over-year. categories aim structure, working product highest total capabilities. We're and continue doing

X.XX the a Our increase existing increase After our X.X%. objective year-over-year base is engage closures saw store of marking Guangzhou and in to we Shenzhen, QX, Chongqing, of consumer expand wider RMB impact a in stores. accounting reached for user billion, our Sichuan, and X.X% a ultimate GMV reach.In year-over-year

may XX.X% plan frontline and by the to lead GMV and QX, XX% rise attributed X.X% year-over-year and X.X%. growth in of X.XX increase and growth increase a billion, of yearly our revenue achieving March. the at year-over-year. stations In coverage Emerging Furthermore, from market the X.X%. growth in in Shanghai, year-over-year Shanghai to year-over-year aftermath, our our a of XX.X%, almost year, Zhejiang and RMB density also Jiangsu pandemic's of growth be to respectively.This achieved in of Jiangsu mainly orders Our number regions. rebounded the grew This we GMV Zhejiang fulfillment expand continued with growth to

end has stations quickly of new Jiangsu added ramped The daily average frontline these to of the new than volume of Zhejiang. XX QX, up stations XXX. and in we've As more order

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profit agricultural As algorithms.Non-GAAP always, XX.XX development data to profits. sixth RMB was consecutive million quarter This fields research food, profit technical of of margin and with marks committed X.X% a non-GAAP our net technology ]. remain of and we [ the in

open of third quarter during margin net incurring We GAAP the expenses million also consecutive a Year quarter, and RMB our a operating despite during cash a operating profit had net which the achieved inflow. inflow This is by cash Chinese X.X% this maintained holiday. first New of costs XX net company we've staying quarter.In the

short-term in our to working billion and fund usage and of equivalents, our As balance RMB X.XX restricted short-term We've optimize actual the structure short-term borrowing and investment. balance cash of the RMB been cash after our end QX, had and capital X.XX deducting diligently is we financing self-owned a billion. of cash

is improving with financial Our and in profit. growth simultaneous performance revenue

an profit We targets.Finally, this of performance. update have reserves. sufficient to on we and all this that mind, I financial are like With our in share growth would we'll year's confident achieve recent

by year-over-year increased increased and Chongqing, our and by today. XX% year-over-year. GMV.This in about day, year-over-year, nearly the impact by year-over-year, the GMV region, Day and Sichuan And the holiday, year-over-year. GMV among again, year-over-year, XX% increased that we remarkable GMV festival by X%. year-over-year, XX%. year-over-year, the excluding volume XX% speech which our increased can Among auto we of Sichuan in during when convenience increased of the our a These GMV By GMV that start by year-over-year the and by Jiangsu, and increased May outbound the On exclude Chongqing, Sichuan we and of Q&A increased Jiangsu in Xth in and GMV by increased saw and are Zhejiang aquatic by tourists.In XX% XX% this Day, by Operator, Mother's volume region during yesterday, results exclude flowers Zhejiang goods XX% have now During XX%. by addition, GMV of in XX% session. GMV order increased increase and by XX% When GMV and fruits increased GMV Mother's our and also festivals Shanghai XX% XX%. order and increased year's shopping by Shanghai, volume increased products increased X about increased Labor as and volume have approximately XX% by increased XX% the GMV push increased Chongqing, we of holiday, the by considering by on them, When by our year-over-year. days XX% concludes order mainly Beijing

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

curious its X growth to the few on anniversary. [Interpreted] celebrated what ago, the I'm reflect translate and as years, and the achieving Xth Liang, me Let team? past past myself. lessons have years, profit.Mr. days on you A some the your been May on Dingdong scale know, successful Congratulations developments and for both you X of biggest Dingdong their X, in over to accomplishments

for Thank [Interpreted] Xth Dingdong's acknowledging you anniversary.

X humbly the past As admit on significant back not years, we have any we look we achieved accomplishments. that

doing even have like some that stick However, to principles it's you with share challenging. to what's important adhered to -- even would to.It's always we when right we though

easy your attract For campaigns, but and our them it's keep but loyal. and Simply business by engaged then It's chain. copying industry instance, tough easy, changes hard market. offering in to users difficult to prices, new build supply easy is low strengthen marketing adapt practices it's also and but grow to to it's to through the analyze it's to

past the challenges, we've Over even always responses do. what's various X X it when the made have to And we've that the right we harder past point the years, swift right subsequently, do hard.Over years to to always X learned things including given a the comprising years, are it's pandemic.

a During reliable achieving and headwinds. pandemic, maintain responsibilities despite our fulfilled supply growth own our also the we while

from focus shifting while prioritizing top scale efficiency of the still keeping have the market on a capital We to mind. in to changes adapted expansion

we substantial for New successfully consecutive profit We've like -- a or X rains snow have typhoons, such as severe Chinese also have attained flow. and conditions, quarters ample a weather result, Year cash heavy challenging navigated after and As storms. situations

wars food efficiency develop for supply We our instead for the more in strive engaging quality continuously chain this, game creating food ability to primary adaptability.As of as chain peers. as Our we capabilities a To ultimately our our and consumers testament or better, goal products has and to earlier, tap deliver public. make supply end-to-end on to improve cost-effective our value our water. mentioned rapid the zero-sum to is of price responses is with accessible achieve strengthened focus

perspective. business our creating at of steadfast.It's time commitment remains only Our company -- a consuming, important and value to challenging fresh customers long-term have to The is for the the of journey. our groceries beginning we're and

So way, this no committed journey our to obstacles what come matter we're seeing through.

with next comes The from Daiwa. Robin question

year. Can you Additionally, grocery outlets progress to physical had do on provide Dingdong insights update that share? have QX? any an since recall I last [Interpreted] the you

shopping, and model [Interpreted] in evolving is We to that China shopping fresh with outlets the observed new have needs of cater delicious becoming grocery meet China. the tend times we've value healthy groceries opened off-line to launched an a in to right prefer to aging service with are cost-effectiveness society elderly We've outlets grocery also and range about to we mean, fresh these needs sales elderly covering more and Therefore, neighborhood. Currently, RMB physical provide them the meet fresh XXX orders and more. they and robust of supply daily these the to The have our square stores a XX,XXX, customers chain, our -- customers expand per expand With broader consumer stores an than supply the X the capabilities. increasing. area are store reflect we reach, of of growth. serve and sales I each fuel still a more can groups, chain These our and serve their meters.

question with next comes Jiajing The CICC. from Chen

[Interpreted] Could company's Mr. why to congratulations last the decreased cash tell for you the us please outperforming balance this results quarter. Liang, the compared quarter?

[Interpreted] Thank for you question. your

Song to Wang question. to him. better I'll CFO, answer your defer Our is suited

Mr. Thank update status. [Interpreted] Liang. you, financial want on We to our you

After took cash million cash the net net is had report is of RMB XXX end become profits and some to banks to approximately payable billion. worked a finance QX, which As that our due and our short-term end are we've initiative operational continuously noting optimize we million a previous open of decrease worth flow deducting short-term RMB net and It's total first the loans, sheet by and improve Moreover, them of balance that actual a our of to restricted RMB Year, the XXX own them. to at a Instead, been RMB our the achieved arrangements, is the incurred We balance borrowings. lower of cash -- quarter balance the consecutive structure, inflow. and and proactive amounting of capital inflow to our and a of the balance the end XXX is resulting investments RMB profit-making with from this efficiency with our providing to our measures thrilled suppliers RMB quarter, with working by reversed the in strong million a borrowings. still now XX and cash our we're previous a third than we our borrowings, sheet stay positive repay support the activities. factoring New quarter use This chain building our in adjust these towards short-term took we enterprise.During and expenses to self-owned growing, funds of short-term not quarter.First approximately increased to we supply X.XX billion.We've to a more repay equivalents, million. foremost, structure. quarter Chinese our and short-term X.XX operating the self-generating in and in relationship of around Despite financing our fund decrease scale during with balance costs strong a very actively empowering notes

where As X.X optimized in days previous the the of compared quarter, since credit days to credit XXXX. the QX has short seen relatively QX, start days accelerated further X.X to we and as by period original results the supplier's This yielded compared by turnover is payable positive accounts in period XXXX. in our the industry,

RMB borrowings million This, XXX short-term a summary, to indication and stable. a scale RMB deducting a capital our resource and of more recorded have structures financial growth approximately profit the operating increased becoming is with compared series payable, are our after the inflow financial integration, million. our cash XXX our previous funds and combined clear net accounts quarter.In that end by with Additionally, of of owned

become the funds to we'll we more stations regions. As capital the healthier, year have continue new throughout Zhejiang and Shanghai, support our necessary to to and access build financially to Jiangsu in growth expenditure

the questions, the to management like further there call to return As no remarks. for Instructions] I'd closing [Operator are

today. Thank our call you again for joining

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

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

call.] disconnect.[Portions now were [Interpreted] may on marked transcript this live You interpreter that present by of are the spoken an