Dingdong Ltd (DDL) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 11, 2022 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to the Dingdong Limited Second Quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. Please note, this event is being recorded.

I will now turn the conference over to the first speaker today [Indiscernible] Senior Director of Investor Relations please go ahead sir.

Unidentified Company Representative

Thank you. Hello everyone and welcome to Dingdong’s second quarter 2022 earnings call. With us today are Mr. Changlin Liang, our Founder and CEO and Ms. Le Yu, our CSO. You can refer to our second quarter 2022 financial results on our IR website at ir.100.me. You can also access a replay of this call on our IR website when it becomes available a few hours after its conclusion.

Before today’s call, management will provide their prepared remarks first and then we will hosting our question-and-answer session. Before we continue I will like to refer to Safe Harbor statements in our earnings press release which also apply to the call as we will be making forward-looking statement. Please note that all the numbers saved in the following management for prepared remarks are in RMB terms and we will discuss non-GAAP measures today. We are more thoroughly extend and reconciled to our most comparable measures retail reported in our earnings release and the filings with SEC.

I will now turn the culture over first speaker today Founder and the CEO of Dingdong, Ms. Liang.

Changlin Liang

[Foreign Language]

Hello, everyone. Welcome to the Q2 earnings call of Dingdong Fresh in 2022. On the call today I’ll mainly cover three areas. First, I’ll briefly report our Q2 operating performance. Second, I’ll discuss our product development capabilities. And lastly, I’ll share the company’s better development plans.

[Foreign Language]

Firstly, let me report the company’s operating performance in Q2, 2022. Our Q2 revenues were 6.63 billion representing 42.8% year-over-year growth. We also achieved a non-GAAP net profit of over 20 million for the first time marking an important milestone for our development.

[Foreign Language]

Yangtze River Delta region or YRD in particular, achieved profitability with an operating margin of 3.7% in the first half of 2022. We started our business in Shanghai back in 2017 and gradually expanded to the whole YRD region and then to other cities across China. We have seen that the entire YRD has become a solid market for the company following Shanghai. We’re also confident that our product development capabilities, methodology and management talents accumulated in the YRD region will help us grow and serve more users in other cities.