JD.com, Inc. ( JD ) reported fiscal second-quarter 2024 revenue growth of 1.2% year over year to $40.098 billion, beating the analyst consensus estimate of $40.830 billion.

JD posted an adjusted net income per ADS of $1.29, beating the analyst consensus estimate of $0.83. The stock price gained after the print.

Ian Su Shan, Chief Financial Officer of JD.com ( JD ), said, “We continued to enhance price competitiveness during the promotional season through our supply chain and disciplined approach, as opposed to reliance on subsidies.”

Also Read: Alibaba Leads Chinese Tech Giants in Boosting Shareholder Returns, But Economic Challenges Loom: Report

JD Segment Performance: JD.com’s net product revenue remained firm year over year at $32.19 billion. Net service revenues rose 6.3% year over year to $7.91 billion. 

JD Retail revenue climbed 1.5% year over year to $35.37 billion, Logistics revenue gained 7.7% year over year to $6.08 billion, and the new business revenues fell to $638 million.

JD.com’s marketing expenses rose 7.3% in the quarter to $1.60 billion, forming 4.1% of revenues. The rise was mainly due to the increased spending in promotion activities.

Margin: Operating margin was 3.6% for the quarter, compared to 2.9% year over year. Adjusted operating margin improved 100 bps year over year to 4.0%. JD Retail’s operating margin was 3.9%, versus 3.2% year over year. 

Adjusted EBITDA increased 30.1% year over year to $1.90 billion, with a 4.6% margin.

JD.com ( JD ) generated $6.82 billion in free cash flow for the quarter, $6.98 billion in operating cash flow, and held $28.8 billion in cash and equivalents as of June-end.

CEO Sandy Xu: “Our steadfast efforts to strengthen supply chain capabilities and user experience continue to distinguish JD in China’s e-commerce industry, as we leverage our growing economies of scale and procurement efficiencies to bring users everyday low prices without sacrificing quality.”

Price Action: JD shares traded higher by 4.17% at $26.98 in the premarket session at the last check Thursday.