To The Moon

JD.com surges after Q4 beat, 'price competitiveness' helps drive user growth$JD.com(JD)$  

JD.com's (JD) stock rose on Wednesday after fourth quarter results beat estimates and the company announced a stock buyback program worth up to $3B.

The Chinese online retailer saw non-GAAP net income per American depositary share, or ADS, grow about 10.1% year-over-year to RMB5.30 ($0.75). Net revenues increased 3.6% year-over-year to RMB306.08B ($43.11B). Both top and bottom line numbers surpassed analysts expectations.

"JD's proactive actions have begun to produce results as our decisive focus on user experience, price competitiveness and platform ecosystem drives deeper and more frequent user engagement and healthier user growth momentum," said JD.com's CEO Sandy Xu.

JD is facing competition to gain market share from rivals such as Alibaba (BABA) and PDD (PDD) at a time when Chinese consumers are turning cost-conscious.

The CEO noted that the with the two priorities of user experience improvement and market share expansion the company aims to create more value for its users and shareholders in 2024.

Net product revenues in the fourth quarter grew 3.7% to RMB246.50B, or ($34.72B), while net service revenues increased 3% year-over year to RMB59.58B ($8.39B).

JD Retail's net revenue rose 3.3% to RMB267.65B ($37.70B), whereas JD Logistics' new revenue jumped 9.7% to RMB47.20B ($6.65B).

"Our core home appliance and electronics categories continued to outperform the industry, and general merchandise category returned to a growth trajectory in the quarter," commented JD.com's CFO Ian Su Shan.