JD.com gains after Q4 beats with strong customer growth

Mar. 11, 2021 7:25 AM ETJD.com, Inc. (JD)JDBy: Brandy Betz, SA News Editor26 Comments

JD.com (NASDAQ:JD) ADRs are up nearly 6% pre-market after reporting Q4 beats with strong cash flow and solid annual customer growth.
Net revenue was up 31% Y/Y to RMB224.3B or $34.4B, $710M ahead of consensus. Non-GAAP EPADS was $0.23, five cents above estimates.
Service revenue increased 53% to RMB32.1B.
Annual active customer accounts increased 30% on the year to 471.9M in FY20.
Fulfillment expenses were higher than expected at RMB14.8B vs. the RMB10.37B estimate.
Adjusted EBITDA was RMB2.66B, below the RMB3.59B estimate.
Operating margin was 0.6% vs. the 1.16% estimate.
Operating cash flow for the year improved from RMB24.8B in 2019 to RMB42.5B with FCF of RMB34.9B.
“JD saw accelerated revenue and user growth during the fourth quarter driven by our long-term operating philosophy and customer-centric value proposition despite the ongoing market challenges,” says CEO Richard Liu. “During this quarter, JD continued its strategic transformation into a supply chain-based technology and service company with increasingly diversified sources of revenues. With a strong momentum going into 2021 and with our recently optimized organizational structure, JD will continue to invest in innovative, high potential businesses to drive long-term sustainable growth.”
Press release.