China’s JD.com (NASDAQ: JD) on Tuesday reported first quarter revenue that beat analysts’ estimates. But its shares fell as revenue growth slowed.
China’s second largest e-commerce company said revenue rose 33.1 percent to 100.13 billion yuan ($15.73 billion) in the quarter ended March 31, 2018. It marked one of its slowest growth quarter. Analysts’ polled by Thomson Reuters had estimated revenue of 98.9 billion yuan.
First quarter net income was 1.04 yuan per share, compared to 0.21 yuan per share a year earlier.
“Our core e-commerce business performed very well in the first quarter, as consumers continue to migrate to our model of convenient and trusted retail,” said Richard Liu, Chairman and CEO of JD.com. “Our ‘Retail as a Service’ strategy is also gaining momentum as brands, partners and companies in a variety of industries increasingly look to leverage JD’s unmatched technological infrastructure to take their businesses to the next level. We will continue to focus on building our technology capabilities to further enhance our customer experience and deepen the strength of our infrastructure.”
JD has been facing mounting competition in the domestic market. Its rival Alibaba last week reported 61 percent quarterly revenue growth. JD now seeks to expand its business into oversea markets such as Indonesia and Vietnam.
JD shares fell 3.89 percent to $37.21 in the early trading on Tuesday.
The company now expects revenue growth for the second quarter of 2018 between 29 percent and 33 percent.