JD.com, Inc. (NASDAQ: JD) reported its second quarter financial results before the market open on Tuesday. The Chinese tech giant reported better-than-expected results, sending shares 6.3% higher shortly before the opening bell.
For the second quarter, JD reported earnings of RMB 2.30 (USD 0.33) per share on revenue of RMB 150.3 Billion (USD 21.9 Billion). Analysts’ estimates earnings of USD 0.07 per share on revenue of USD 20.89 Billion.
JD’s revenue rose by 22.9% year-over-year, primarily driven by the strong increase in its net service revenue, which rose by 42% to RMB 16.8 Billion (USD 2.4 Billion).
The stronger quarter led JD to report a massive growth in net income. At the end of the second quarter, JD reported that net income was RMB 618.8 Million (USD 90.1 Million) compared to a net loss of RMB 2,212.5 Million the same quarter a year ago. On a non-GAAP basis, net income surged by 644% to RMB 3,558.9 Million (USD 518.4 Million).
Annual active accounts increased to 321.3 million compared to 310.5 million a year ago.
JD’s increase in active accounts was predominantly driven by its business operation additions during the quarter. For instance, JD continued to attract premium international brands onto its e-commerce platform. During JD’s June 18th Anniversary Sale, Italian fashion house Prada Group announced a partnership to sell its major brands, Prada, Miu Miu, and Car Shoe.
Additionally, JD launched its premium membership program in June that had partnerships with nineteen different international hotel brands, providing JD customers with benefits such as discounts, room upgrades, and loyalty points.
“Highlighted by our successful June 18th anniversary sales event, JD’s strong performance in the second quarter further demonstrated the resilience of our superior business model in a highly competitive industry,” said Richard Liu, Chairman and Chief Executive Officer of JD.com. “JD’s commitment to bringing users the best overall shopping experience continues to win over consumer mindshare. We will remain focused on leveraging technology and innovation to enhance our offerings, increase efficiency and drive shareholder value for the long term.”
For the third quarter, JD expects to report net revenues between RMB 126 Billion and RMB 130 Billion, representing a 20% to 24% increase year-over-year.