08:51 AM EDT, 03/20/2025 (MT Newswires) -- PDD Holdings ( PDD ) on Thursday reported fourth-quarter results that rose year over year but the Chinese e-commerce platform's revenue fell short of market expectations.

Adjusted earnings advanced to 20.15 renminbi ($2.76) per American depositary share in the December quarter from 17.32 renminbi a year earlier, ahead of the FactSet-polled consensus of 20.06 renminbi. Revenue climbed 24% year over year to 110.61 billion renminbi, but missed the Street's view for 113.62 billion renminbi.

The company's Nasdaq-listed American depositary receipts fell 3.2% in the most recent premarket activity. PDD owns the Pinduoduo social commerce platform in China and Temu, an e-commerce marketplace in North America.

"This quarter, we delivered stable financial results supported by the resolute execution of our high-quality development strategy," Jun Liu, vice president of finance, said in a statement. "Looking ahead, we will continue to prioritize investments in the platform ecosystem as the cornerstone of our long-term value creation strategy."

Revenue from online marketing services rose 17% to 57.01 billion renminbi. Transaction services revenue jumped to nearly 53.6 billion renminbi from 40.21 billion renminbi in the prior-year quarter.

Cost of revenue amounted to 47.8 billion renminbi versus 35.08 billion renminbi last year due to higher fulfillment and payment processing fees. Total operating expenses rose 19% year over year to 37.22 billion renminbi, mainly due to higher sales and marketing costs, according to the company.

"We systematically implemented proactive measures in parcel operations, merchant services, supply chain and logistic innovations, leading our platform into a new phase of high quality driven growth," co-Chief Executive Chen Lei said during an earnings call, according to a FactSet transcript. "We delivered stable results over the past quarter."