Dingdong (Cayman) Limited (NYSE:DDL) Q4 2023 Earnings Conference Call February 29, 2024 7:00 AM ET

Company Participants

Nicky Zheng - Director of IR

Changlin Liang - Founder and CEO

Song Wang - SVP

Conference Call Participants

Jiajing Chen - CICC

Thomas Chong - Jefferies

Operator

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the Dingdong Limited Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] 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.

Nicky Zheng

Thank you. Hello, everyone, and welcome to Dingdong's fourth quarter 2023 earnings call. With me today are Mr. Changlin Liang, our Founder and the CEO; and Mr. Song Wang, our CFO. You can refer to our fourth 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 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 press 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.

Changlin Liang

Hello, everyone, and welcome to Dingdong's fourth quarter 2023 earnings call.

First, let me give you a brief overview of Dingdong's performance in Q4 and for the full year 2023. As we consistently implemented our development strategy of efficiency first with due consideration of scale, we not only achieved non-GAAP profitability for the fifth consecutive quarter, but also marked our first full year of non-GAAP profitability.

In Q4, we generated revenue of RMB 4.99 billion with a gross merchandise volume or GMV of RMB 5.53 billion. Our gross profit margin increased to 30.6% sequentially with a net operating cash inflow of RMB 120 million. Our non-GAAP net profit margin was 0.3%. For the full year, our revenue was RMB 19.97 billion with a GMV of RMB 21.97 billion. Our gross profit margin was 30.7% and our non-GAAP net profit margin was 0.2%.