Dingdong Ltd (DDL) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 13, 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 Fourth 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], Director of Investor Relations. Please go ahead.

Unidentified Company Representative

Thank you. Hello, everyone, and welcome to Dingdong fourth 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 fourth 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.

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.

Changlin Liang

[Foreign Language] Thank you, everyone, and welcome to Dingdong's fourth quarter 2022 earnings conference call.

Let's first review the quarter's operational results. Our revenue of RMB6.2 billion reflected 13.1% year-over-year growth. We recorded GAAP net profit for the first time of RMB49.88 million with non-GAAP net profit of RMB116 million. Within 1.5 years, we grew from a net loss margin of 37.2% to a net profit margin of 1.9%. It is a result of our dedication and validates the strategy of efficiency first with due consideration of scale.

Meanwhile, our operating net cash inflow in Q4 was RMB0.68 billion. We also achieved positive operating cash flow for the full year of 2022. As of 12/31/2022, our cash and cash equivalents were RMB1.86 billion and short term investment were RMB4.64 billion. We believe that this strong cash position speaks volumes about our resilience in adversity. We also firmly believe that we will be able to realize our vision and mission, create value for our consumers and society, and create long term and sustainable value for our shareholders.