JD.com shares are up nearly 2% in pre-market trading after reporting second-quarter earnings results that topped analyst estimates even as the Chinese regulatory crackdown on technology companies continued.
Revenue increased 38% year-over-year to $39.3 billion, coming in $1 billion ahead of analyst estimates. Adjusted earnings of $0.45 per share beat consensus by $0.11.
Annual active customer accounts increased 27% to 531.9 million for the 12-month period ending on June 30.
Cost of revenues increased 29% on the year to $34.4 billion with fulfillment expenses up 23% to $2.3 billion.
“We are pleased to deliver another quarter of healthy growth even compared to last year’s high base,” says Chief Financial Officer Sandy Xu. “Our consistent execution and successful 618 Grand Promotion helped us to add over 32 million new users in Q2, the largest single quarter increase in JD.com’s history.”
Author: Brandy Betz, Seeking Alpha