Dingdong (Cayman) Limited reported its financial results for the first quarter ended March 31, 2025, achieving non-GAAP profitability for the tenth consecutive quarter and GAAP profitability for the fifth consecutive quarter. Total revenues increased by 9.1% year over year to RMB5,479.0 million (US$755.0 million) from RMB5,024.0 million in Q1 2024. GMV for the quarter also rose by 7.9% year over year to RMB5.96 billion.
The company reported a net income of RMB8.0 million (US$1.1 million), compared to RMB12.3 million in Q1 2024, while non-GAAP net income was RMB30.3 million (US$4.2 million), a 26.8% decrease year over year from RMB41.5 million in Q1 2024. Non-GAAP net income margin was 0.6% compared to 0.8% in the same quarter of 2024. Operating net cash inflow reached RMB85 million, marking the seventh consecutive quarter of positive cash flow.
Dingdong introduced its "4G strategy," focusing on "good users, good products, good services, and good mindshare," which has begun to show results in product development and user satisfaction. The company's self-owned fund balance, after accounting for short-term loans, amounted to RMB2.89 billion, indicating a continued net increase for the seventh consecutive quarter. Additionally, 14 new frontline fulfillment stations were established in Q1, primarily in the Jiangsu, Zhejiang, and Shanghai regions.
The company announced a strategic partnership with the DFI Group, a leading global trading and retail company based in Hong Kong, leveraging Dingdong's fresh grocery supply chain and IT capabilities. Dingdong is also fostering international cooperation with HKTV Mall in Hong Kong, Fairprice in Singapore, and retail groups in Central Asia and the Middle East. Domestically, it has incubated Guyu Food Group, a leader in R&D and production of pre-prepared meals, and partnered with Lee Kum Kee for pre-prepared meals.
Looking ahead, Dingdong expects to sustain year-over-year growth in scale and achieve non-GAAP profits in the second quarter of 2025. The company remains committed to its "narrow yet deep" value proposition, focusing on quality products and services despite intense competition.
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