JD.com Q2 Loss Widens - Quick Facts

(RTTNews) - JD.com Inc. (JD), an online direct sales company in China, reported that its net loss attributable to holders of permanent equity securities for the second quarter of 2014 widened to RMB 7.05 billion or $1.14 billion from RMB 484.21 million in the same quarter. Net loss per ADS for the second quarter was RMB5.86 or $0.94, compared to a loss of RMB0.57 for the second quarter of 2013.

Net loss for the second quarter was RMB 582.5 million or $93.9 million, compared to a loss of RMB28.3 million for the same period last year. The wider loss was primarily due to amortization of intangible assets resulting from assets and business acquisitions related to the Tencent strategic partnership.

Non-GAAP net loss for the second quarter was RMB11.8 million or $1.9 million as compared to non-GAAP net income of RMB37.5 million in the prior year. Non-GAAP net loss per ADS for the second quarter of 2014 was RMB0.01 or $0.00 as compared to non-GAAP net income per ADS of RMB0.04 in the second quarter of 2013.

Quarterly net revenues were RMB28.6 billion or $4.6 billion, representing a 64% increase from the same period in 2013. GMV for the second quarter was RMB63.0 billion or $10.2 billion, up 107% from last year.

The increase in its GMV and net revenues were primarily due to the growth in our active customer accounts from 19.6 million in the second quarter of 2013 to 38.1 million in the second quarter of 2014, and the growth in the number of fulfilled orders from 72.6 million in the second quarter of 2013 to 163.7 million in the second quarter of 2014.

Net revenues from online direct sales increased by 60%, and net revenues from services and others increased by 186% in the second quarter of 2014 as compared to the second quarter of 2013, primarily due to the increased revenue from our rapidly expanding online marketplace and advertising service.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.02 per share and revenues of $4.39 billion for the second-quarter. Analysts' estimates typically exclude special items.

Net revenues for the third quarter of 2014 are expected to be between RMB28.0 billion and RMB29.0 billion, representing growth of between 55% and 61% compared with the third quarter of 2013.