Gross merchandise value (GMV), the total value of sales transacted on the company’s websites, doubled to $14.2 billion, and annual active customer accounts increased by 90% to 105.2 million in the 12-month period to March 31. The increases in GMV and net revenues were primarily due to the growth in active customer accounts and the number of fulfilled orders in the first quarter of 2015, according to the company.
Costs of revenues rose 58% to $5.2 billion year-over-year, primarily due to growth in the direct sales business and increased traffic acquisition costs. Fulfillment expenses, which include procurement, warehousing, delivery and customer service, rose 97% to $400 million.
In its outlook, JD.com estimated that net revenues will range between about $7.0 billion and $7.2 billion. Consensus estimates call for a loss per ADS of $0.06 on revenues of approximately $7 billion. For the full year, analysts expect earnings per share of $0.54 on revenues of about $28.1 billion.
The company also announced this morning a $350 million investment in Chinese travel website Tuniu Corp. (NASDAQ: TOUR). JD.com’s travel site now will be operated exclusively by Tuniu, and JD.com said it will forego commissions on the Tuniu-operated site and instead collect fees on flights and hotel bookings made by Tuniu on other JD.com sites. The investment is widely seen as a boost to JD.com’s nascent travel business at a time when the business appears to be set for big growth in China.
JD.com’s ADSs traded down about 3.8% in Friday’s premarket session to $31.82, after closing at $33.08 on Thursday. The consensus price target is around $36 per ADS and the high target is around $44.00.
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