The parent company of Temu – the popular e-commerce platform that entered the Canadian market earlier this year – reported a significant year-over-year surge in revenue.
PDD Holdings, which also owns the Chinese e-commerce giant Pinduoduo, on Tuesday reported US$7.2 billion in global revenue in the second quarter of 2023, marking a 66-per-cent increase over Q2 2022.
The company said the increase was primarily due to a rise in revenue from online marketing services and transaction services.
“Over the recent quarter, we saw a positive shift in consumer sentiment, leading to a rise in demand across various product sectors,” said Jiazhen Zhao, executive director and co-CEO of PDD Holdings, in a press release.
Jun Liu, vice-president of finance at PDD Holdings, said the company seized the opportunities of “favourable consumption trends and invested firmly and responsibly” in Q2 2023.
“Looking ahead, we will continue to invest with determination and patience to execute our high-quality development strategy,” said Liu.
Temu, which set up its Western Canada warehouse in Burnaby, offers a wide variety of products directly from China at competitive pricing. It also uses constant sales promotions, various incentives and gamification to attract and engage shoppers.
PDD reported total operating expenses of more than US$2.8 billion in the second quarter, a 41-per-cent rise from the same quarter last year. The increase, it said, was primarily due to “an increase in sales and marketing expenses.”
Net income attributable to ordinary shareholders was approximately US$1.8 billion, up 47 per cent year over year.
The earnings release did not break out revenue for Temu or by market.
Since entering the Canadian market, Temu has shown an ability to compete against incumbents such as Shein and Amazon in Canada. It has been the No. 1 app in Canada, according to SimilarWeb, which ranks Apple App and Google Play store apps based on usage, new users and engagement.