Dingdong (Cayman) Limited (NYSE:DDL) Q3 2023 Results Conference Call November 16, 2023 7:00 AM ET

Company Participants

Nicky Zheng - Director of Investor Relations

Changlin Liang - Founder and Chief Executive Officer

Song Wang - Senior Vice President

Conference Call Participants

Thomas Chong - Jefferies

Sophia Chi - Daiwa

Jiajing Chen - CICC

Operator

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the Dingdong Limited Third 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 would now like to 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 third quarter 2023 earnings call. With me today are Mr. Changlin Liang, our Founder and CEO; and Mr. Song Wang, our Head of Finance. You can refer to our third quarter 2023 financial results on our IR website at ir.100.ne. You can also access a replay of this call on our IR website when it becomes available a few hours of its conclusion. For today's call, management will go through their prepared remarks, first, which will be followed by 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 your first speaker today, the founder and the CEO of Dingdong, Mr. Liang.

Changlin Liang

Hello, everyone, and welcome to the Dingdong's third quarter 2023 earnings call. During the call today, I'll briefly review our operating performance during the quarter, share some thoughts on our instant delivery retail business and update you on some of our key business developments.

In the third quarter, we recorded RMB5.14 billion in revenue, a 6.2% sequential increase. GMV grew by 6.4% sequentially to RMB5.67 billion and net operating cash flow was RMB130 million. Non-GAAP net income margin was 0.3%, marking our fourth consecutive quarter of non-GAAP profitability as we continue to prioritize our strategy of efficiency first, with due consideration of scale. In addition, we achieved quarterly profitability on a GAAP basis for the second time since Q4 of 2022.