JD.com posts minimal revenue gains in Q3, misses estimates

Photo credit: Shutterstock

JD.com posted minimal year-on-year growth in revenue for the third quarter of fiscal year 2023, increasing just 1.7% to US$34 billion. The result also falls short of average estimates, which analysts pegged at US$34.61 billion.

Quarterly revenue from the Chinese ecommerce player’s retail segment, its largest business unit, remained level at US$29.1 billion compared to 2022. Revenue from JD Logistics, meanwhile, rose by 16.5% to US$5.71 billion.

The same can also be said about JD.com’s total consolidated operating income. It grew by just 6.6% year on year to US$1.28 billion in Q3 as contributions from JD Retail and JD Logistics stayed flat.

In spite of these numbers, this quarter is still JD.com’s most profitable to date.

“We will continue to manage for high-quality growth while investing in user experience and building a superior ecosystem to drive sustainable growth for our merchants and suppliers,” said Ian Su Shan, JD.com’s CFO.

CEO Sandy Xu also noted that the company had expanded its merchant network, hitting a historical high in Q3 and generating “improved user shopping behavior.”

More growth could be in store for JD.com in Q4 as its Singles Day promotions this year led to record-breaking numbers in terms of transaction and order volume as well as user engagement.

See also: Indonesia’s ecommerce map reveals sector slowdown, company struggles