Source: Wall Street News
Didi's net loss for the first quarter increased to 1.35 billion yuan, reversing two consecutive quarters of profit.
Thanks to strong domestic demand, Didi continued to recover, and revenue increased 15% year over year in the first quarter.
May 29,$DiDi Global Inc (DIDIY.US)$Release of financial results for the first quarter. According to financial reports, total revenue for the first quarter was 49.1 billion yuan, an increase of 14.9% over the previous year, and adjusted EBITA profit of 900 million yuan.
The total transaction volume (GTV) of Didi's core platform in the first quarter was 92.2 billion yuan, up 26.9% year on year; the core platform's trading volume was 3.75 billion orders, up 30.3% year on year, with an average daily order volume of 32.5 million orders, breaking the historical peak.
However, due to rising sales and marketing costs, as well as increased drivers' operating expenses, Didi's net loss increased to 1.35 billion yuan, reversing two consecutive quarters of profit and further increasing losses over the same period last year.
This is partly due to rising operating costs for domestic drivers, while higher consumer incentives have also eroded Didi's profits. The company also recorded investment losses of 1.8 billion yuan, mainly due to its shares in Xiaopeng Motor.
In August of last year, Didi sold its smart car development division to Xiaopeng Motors and withdrew from the automobile manufacturing business. The HK$5.84 billion deal also enabled Didi to acquire 3.25% of Xiaopeng's shares.
Recently, senior management of Didi experienced personnel changes. After being in office for nearly ten years, co-founder Liu Qing no longer served as the company's president and director, promoted to permanent partner, and continued to report to CEO Cheng Wei.
According to reports, Didi plans to be listed on the Hong Kong Stock Exchange this year. Currently, Didi is trading on the New York OTC market. Since this year, it has risen by about 17% to 4.61 US dollars, but it is still far below the 2021 IPO price of 14 US dollars.
The company said it has repurchased and cancelled $152.4 million worth of shares under the previously announced $1 billion repurchase plan, and its subsidiary City Puzzle Holdings Ltd is also planning to repurchase approximately $408 million worth of shares.
edit/lambor