JD.com CEO Sandy Xu said the JD food delivery business has experienced rapid growth since its launch, with daily order volume increasing exponentially in the second quarter.
JD.com CEO Sandy Xu said on Thursday that the company has noticed the competition intensifying in the e-commerce space since July and is focusing on improving the platform system and enhancing the experience of users, merchants, and riders.
U.S.-listed shares of JD.com were down nearly 2.5% during midday trading. Retail sentiment on the stock improved to ‘extremely bullish’ from ‘neutral’ a day ago, with chatter at ‘extremely high’ levels, according to data from Stocktwits.
JD.com beat Wall Street expectations for second-quarter revenue, driven by efforts to offer discounts and promotions on its platform to drive demand at a time when consumers in China are paring back on spending due to ongoing macroeconomic volatility in the country.
The firm’s executives noted during a post-earnings call that the company saw robust consumer demand on the JD platform during the second quarter, with revenue growth in the electronics and home appliance categories surpassing 20% year on year.
The retail user message count on JD.com also jumped over 250% in the last 24 hours on Stocktwits. A user on Stocktwits noted that JD.com had good earnings, but the geopolitical situation is probably overshadowing the company’s fundamentals.
“JD food delivery business has experienced rapid growth since its launch, with daily order volume increasingly exponentially in Q2,” Xu said. “We’ve made significant progress in onboarding high-quality merchants and the number of full-time delivery riders has increased rapidly,” she added.
The company noted that the food delivery business has now become a major driver of growth for JD.com. In February, the company officially announced the launch of a new food delivery service.
The company’s second-quarter revenue came in at RMB356.66 billion ($49.67 billion), compared with analysts’ expectations of RMB335.64 billion, according to data compiled by Fiscal AI.
JD.com’s U.S.-listed stock has fallen 8.5% so far this year and gained nearly 18% in the last 12 months.
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