JD.com reported first-quarter results early Tuesday that beat revenue expectations despite China lockdowns. JD stock surged.
The China internet giant reported an adjusted loss of 30 cents a share on revenue of $37.8 billion. Analysts expected JD to report adjusted income of 24 cents on revenue of $34.8 billion. Sales jumped 18% from the year-ago period.
The loss comes as JD invested heavily in its delivery network. JD offered no earnings numbers that excluded delivery expenses.
"We have been implementing disciplined financial control policies while sparing no effort to support our consumers and business partners in this challenging time," said Sandy Xu, chief financial officer.
JD stock climbed 4.2% to close at 53.67 on the stock market today.
JD Stock: Constrained By Crackdowns
Crackdowns by Chinese authorities constrained the nation's e-commerce companies like JD and Alibaba over the past two years. Further, Covid-19 woes and economic conditions slowed logistics.
"JD.com's robust supply chain capabilities and technology-driven operating efficiency underpinned our solid performance during the quarter as we continued to deliver healthy growth amidst a challenging external environment," Chief Executive Lei Xu said.
"More importantly, we are actively leveraging our core competences to support local communities and enterprises in regions affected by the latest Omicron outbreak. All of our employees are committed to fulfilling our social responsibilities and are encouraged by the deepening trust placed in us by customers and business partners," Xu went on to say.
The company ended the first quarter with 580.5 million active annual customers, up 16%.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
