The U.S. listed shares of Pinduoduo Inc. PDD, +15.19% charged 9.5% higher in premarket trading Friday, after the China-based mobile marketplace reported first-quarter profit and revenue that rose well above expectations, as gross margin improved sharply with costs falling. The company swung to net income of RMB2.60 billion ($410.1 million), or RMB1.84 a share, from a net loss of RMB2.91 billion, or RMB2.33 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per American depositary share of RMB2.95 beat the FactSet consensus of RMB1.83. Revenue grew 7.3% to RMB23.79 billion ($3.75 billion), above the FactSet consensus of RMB20.45 billion, while costs of revenue fell 33.4% improved to 69.9% from 51.5%. Average monthly active users rose 4% to 751.3 million and active buyers in the 12 months to March 31 increased 7% to 881.9 million. The stock has tumbled 28.1% year to date through Thursday, while the iShares MSCI China ETF MCHI, +0.48% has dropped 20.4% and the S&P 500 SPX, +2.47% has shed 14.9%.
