Dada Nexus (DADA) Q3 2024 earnings summary

Executive summary

• Achieved accelerated high-quality growth in Q3 2024, with JD Now and Dada Now platforms showing strong momentum and over 100% year-on-year growth in monthly transacting users and orders via JD App.

• Dada Now net revenues rose 39% year-on-year to RMB 1.5 billion, driven by strengthened partnerships and increased intra-city delivery orders from chain merchants.

• Customer experience improvements led to higher repeat purchase rates and increased user stickiness.

• Non-GAAP net loss narrowed to RMB 59 million, with a non-GAAP net loss margin of 2.4%, improving by 3.7 percentage points sequentially.

• Net loss margins narrowed sequentially, reflecting ongoing efficiency optimization.

Financial highlights

• Total net revenues in Q3 2024 were RMB 2,429.4 million, down 7.3% year-on-year from RMB 2,621.8 million.

• JD Now net revenues were RMB 930.2 million, impacted by reduced advertising and fulfillment revenues due to the delivery fee waiver program.

• Dada Now net revenues increased by 39% year-on-year to RMB 1,499.2 million.

• For the first nine months of 2024, Dada Now net revenues grew 46% to RMB 4.1 billion.

• Non-GAAP net loss for Q3 was RMB 59.4 million, with a margin of -2.4%.

Outlook and guidance

• Focus remains on high-quality growth, improving user experience, and leveraging synergies between on-demand retail and delivery platforms for sustainable long-term growth.

• Optimistic about on-demand retail as a fast-growing sector in China, with significant room for increased penetration among JD users.