Shares of PDD Holdings Inc (NASDAQ), the parent company of Temu, fell in premarket trading after the release of its financial report for the second quarter of 2024. The company’s revenue grew by 86% year-over-year to $13.36 billion, falling short of the analysts’ estimate of $14.02 billion.

Adjusted earnings per ADS were $3.20, beating analysts’ expectations of $2.73. Despite this, PDD Holdings’ shares dropped 14.70% to $119.35.

Revenue from online marketing services rose by 29%, while transaction services revenue jumped by 234%. Operating profit increased by 139% to $4.81 billion.

“There are many challenges ahead,” said Lei Chen, Chair and Co-CEO of PDD Holdings, pointing to increased competition and external factors.