Dingdong Ltd (DDL) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 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 Third Quarter 2022 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, Mickey Zing [ph], Director of Investor Relations. Please go ahead, sir.

Unidentified Company Representative

Thank you. Hello, everyone, and welcome to Dingdong third 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 third quarter 2022 financial results on our IR website at ir.100.me. You can also access a replay of this call on our 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 our numbers stated in this following management's prepared remarks are in RMB terms. And we will discuss non-GAAP measures today, which are more solidly 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 your first speaker today, the Founder and the CEO of Dingdong, Mr. Liang. Mr. Liang, please go ahead.

Changlin Liang

[Foreign Language] Thank you and welcome to Dingdong's Q3 Earnings Call in 2022. Today, I would like to discuss our Q3 operational performance, some thoughts on product development capabilities and our next steps. [Foreign Language] First, let's dive in our Q3 performance. As we expected, revenue in Q3 was RMB5.94 billion with a non-GAAP net loss margin of 4.8%. [Foreign language] We quickly adapted to the changing business environment in the third quarter last year and began our strategy of efficiency first with due consideration to scale.

Consequently, our non-GAAP net loss margin narrowed substantially to 4.8% from 31.9% from a year ago. With such momentum, we're confident of approaching non-GAAP breakeven in the fourth quarter this year, which would soon – which would be sooner than expected during our IPO. By then Dingdong will have evolved from a start-up that needed external financing to a self-sustaining company with strong survival capabilities. [Foreign Language] The key drivers of our achievements are our commitments to product development, service upgrades and supply chain efficiency, all of which contribute to our profitability and competitive moat.