Nov 25, 2021|
Dada Q3 2021 Earnings: Revenue Growth Accelerates to 86% YOY, Deepens Ties with JD.com
by Dada and JD
On November 24, Dada announced its unaudited financial results for the third quarter ended September 30, 2021.
In this quarter, Dada’s total net revenues increased to RMB 1,686.8 million, which is above street’s expectation of RMB 1,625.0 million and the company’s high-end guidance of revenue outlook. Aligning the revenue recognition method of Dada Now last-mile delivery services to net basis, pro forma revenue growth would have been 86% year-over-year, which represents an acceleration compared with 81% revenue growth in the last quarter.
“Dada has always been committed to driving digital transformation in the retail industry and providing consumers with superior experience to meet the evolving demands,” said Mr. Philip Kuai, Chairman and Chief Executive Officer of Dada. “We are excited to strengthen strategic cooperation with JD under the omni-channel strategy to explore the enormous potential in the on-demand retail industry. We will continuously work together to create more value for retailers, brands and consumers and serve the development of the real economy.”
In October, Dada Group and JD jointly launched “Shop Now,” a unified brand for all on-demand retail services within the JD ecosystem. Through Shop Now, users can access on-demand services via multiple channels on JD, including the “Nearby” tab. Shop Now increases Dada’s penetration rate among JD’s vast user base, which should become a stronger driver for its long-term development.
As JDDJ expands merchant and category coverage, the platform is helping more offline retailers and brands build digitalization capabilities. It now has established partnerships with 82 of the top-100 supermarket chains in China. In the Q3, revenue from online marketing services on JDDJ grew by over 140% year-over-year, a significant acceleration from the previous quarter. Meanwhile, orders fulfilled by Dada Picking grew over 70% quarter over quarter.
Dada Now has rolled out a panorama of its on-demand order fulfillment, covering warehousing, picking and delivery services, to empower retailers in an all-process way. In this quarter, revenue from on-demand delivery services to chain merchants increased more than 110% year-over-year. Dada also provides third-party delivery service providers and merchants who deploy their own delivery fleet with a suit of digital tools to manage order dispatching and routing for omni-channel on-demand delivery orders.
Please find the full version of the financial report here