Dingdong Ltd (DDL) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 12, 2023 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 First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that this event is being recorded.

I will now turn the conference over to the first speaker today, Nicky Zheng, Director of Investor Relations. Please go ahead, sir.

Nicky Zheng

Thank you. Hello, everyone, and welcome to Dingdong's first quarter 2023 earnings call. With us today are Mr. Changlin Liang, our Founder and CEO; and Mr. Le Yu, our CFO. You can refer to our first quarter 2023 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.

For today's call, management will provide their prepared remarks first, and then we will be hosting a question-and-answer session. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call.

As we will be making forward-looking statements, please note that all numbers stated in the following management's prepared remarks are in RMB terms, and we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings release and filings with the SEC.

I will now turn the call to our first speaker today, the Founder and the CEO of Dingdong, Mr. Liang.

Liang Changlin

[Interpreted] Thank you, everyone. And welcome to Dingdong's Q1 2023 earnings conference call. Let's first review the quarter's operational results. Our GMV was RMB5.45 billion, and our revenue was RMB5 billion. Both figures declined year-over-year due to three primary factors.

First, the lockdowns in Shanghai and nearby areas last March resulted in a shortage of supply and a surge in consumer demand on our platform. Subsequent to China's reopening in December consumption patterns return to their pre-pandemic levels. Therefore, as the first full post-pandemic quarter impacted by seasonal factors such as increased travel during the Chinese New Year. Our Q1 sales were lower this year. However, our GMV showed steady growth for January and February with a 5.3% increase year-over-year despite the decline in March compared to the high base of the previous year.