On Monday, China’s second biggest e-commerce firm, JD.com Inc., reported higher-than-expected revenue during the third quarter with a 61% jump as JD.com’s customers doubled to 46.1 million compared to the previous year.
The company revenue jumped to 4.73 billion dollars equivalent to 29 billion yuan within 3 months ending September compared to 18.04 billion yuan last year, beating the analysts forecast of 4.67 billion dollars.
JD.com expects its fourth quarter revenue between 32 and 33 billion yuan as it continually invests in logistics-heavy strategy and increase its penetration within lower-tier cities within China.
The company revenue has been watched closely, considering it as a major factor of the company’s operating performance. The company’s profit has been hurt by different exceptional expenses associated with a strategic tie-in with Tencent Holdings Ltd, a fast-growing internet firm.
The company’s gross merchandise volume, which is the overall value of goods sold, was at 10.99 billion dollars or 67.3 billion yuan, rose 111% compared to the same period the previous year.
The company founder and CEO said excellent momentum has remained throughout the third quarter, expecting year-per-year growth both in active customer accounts and gross merchandise volume.
Income for the third quarter except special items was at 60.56 million dollars, more than double than last year. The quarterly net loss was at 26.85 million dollars, hurt by intangible assets amortization from business and asset acquisitions.
Rapid growth was also seen in the company’s advertising service as well as newer online marketplace ventures. JD.com’s customers doubled to 46.1 million, while the company shares rose 1.8% at 27.50 dollars during the pre-market trade on Monday.