Dingdong (Cayman) (DDL) Q1 2025 earnings summary

Executive summary

• Achieved non-GAAP profitability for ten consecutive quarters and GAAP profitability for five quarters, with five straight quarters of year-on-year revenue and GMV growth; Q1 2025 GMV was RMB 5.96 billion (+7.9% YoY) and revenue was RMB 5.48 billion (+9.1% YoY).

• Management highlights robust supply chain, unique product offerings, and improved user satisfaction as key competitive advantages, supported by the 4G strategy (good users, good products, good services, good mindshare) and organizational restructuring.

• Maintained strong user engagement and conversion, with average daily active users surpassing 2 million, order volume up 12.1% year-on-year, and average monthly orders per user increasing 2.4% to 4.1.

Financial highlights

• Q1 2025 revenue reached RMB 5.48 billion, up 9.1% year-on-year; GMV was RMB 5.96 billion, up 7.9%; product revenue was RMB 5,386.5 million, service revenue RMB 92.5 million.

• Non-GAAP net profit was RMB 30.3 million (0.6% margin); GAAP net profit was RMB 8 million (0.1% margin); non-GAAP net income margin was 0.6%, down from 0.8% year-on-year.

• Operating net cash inflow was RMB 85 million; cash and equivalents (plus short-term investments) totaled RMB 4.29 billion, with a net balance of RMB 2.89 billion after loans, marking seven consecutive quarters of net increase.

• Gross profit margin was 29.9%, down 0.7 percentage points year-on-year due to investment in quality products; cost of goods sold as a percentage of revenue increased to 70.1%.

• Sales and marketing expense rate was 2%, down 0.2 percentage points; management and R&D expenses were 5.7% of revenue, down 0.2 percentage points.

Outlook and guidance

• Expects to maintain year-on-year growth in scale and achieve non-GAAP profitability in Q2 2025, with anticipated growth in performance scale and profit margin by year-end as the 4G strategy matures.