11:12 AM EDT, 03/20/2024 (MT Newswires) -- PDD Holdings ( PDD ) reported sharp increases in fourth-quarter results on Wednesday as the Chinese e-commerce platform benefited from improving consumer sentiment and demand.

Revenue jumped to 88.88 billion renminbi ($12.35 billion) for the three months ended Dec. 31 from 39.82 billion renminbi the year earlier and surpassed the 78.05 billion renminbi average analyst estimate on Capital IQ. PDD owns the Pinduoduo social commerce platform in China and an e-commerce marketplace, Temu.

Adjusted earnings per share more than doubled to 17.32 renminbi from 8.34 renminbi and beat Wall Street's view of 11.89 renminbi.

Within PDD's online marketing services and other business, revenue advanced 57% year over year to 48.68 billion renminbi. Transaction services revenue rocketed 357% to 40.21 billion renminbi. The company's Nasdaq-listed American depositary receipts were up 1.8% in Wednesday trade, giving up sharp gains from earlier in the day.

"In 2023, amid a positive consumer sentiment, our platform saw a healthy resurgence," Co-Chief Executive Lei Chen told analysts on a conference call, according to a Capital IQ transcript. As a result of efforts such as leveraging sales events to drive affordability, PDD saw "sustained growth in consumer engagement" through the fourth quarter, he said.

In the ongoing year, PDD will continue to ramp up support for high-quality supply while maintaining value, Chen said on the call.

"2023 proved to be a pivotal year for us as we embark on the journey towards high-quality development," Co-CEO Jiazhen Zhao told analysts. "And 2024 will be another critical year to implement this strategy to every part of our operations."

The company plans to increase investments in three key areas this year across high-quality consumption and supply, as well as investments that improve the platform ecosystem and user experience, Zhao said.

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