China-based JD.com reported fiscal second-quarter results, with a revenue growth of 22.4% year-over-year to $49.8 billion, surpassing analyst estimates. Adjusted net income per ADS was 69 cents, beating the consensus of 44 cents. Net product revenue increased by 20.7%, while service revenues rose by 29.1%.

JD.com’s various revenue segments showed growth, with JD Retail revenue climbing 20.6% to $43.3 billion, logistics revenue gaining 16.6% to $7.2 billion, and new business revenues growing by 198.8% to $1.9 billion. Marketing expenses rose by 127.6% to $3.8 billion, forming 7.6% of revenues.

Operating margin loss was (0.2)% for the quarter, with adjusted operating margin at 0.3%, primarily due to increased strategic investments. JD Retail’s operating margin rose to 4.5%, while adjusted EBITDA decreased by 77.8% to $419 million. The company generated $3.07 billion in free cash flow.

JD.com CEO Sandy Xu credited second-quarter growth to strong momentum in core JD Retail and New Businesses, particularly JD Food Delivery. Xu emphasized investing in strategic growth areas to enhance user experience and efficiency. JD stock declined 6% year-to-date due to investor concerns about food delivery profitability.

JD.com stock is trading higher at $32.62. CEO Xu highlighted gains in user traffic and active customers, emphasizing continued investment in core retail areas while enhancing strategic growth initiatives for improved efficiency and user experience.

Read more at Yahoo Finance: JD.com’s Investments Pay Off With Massive Jump In New Business Revenue