PDD Holdings Inc. PDD -1.51% shares soared 10.2% on Friday in premarket trade after the mobile marketplace reported impressive first-quarter revenue and profit beats. The company attributed this to its strength in online advertising and transaction services. The net income increased by more than two-thirds to RMB8.10 billion ($1.18billion), or RMB5.55 for each American depositary shares, from RMB2.60billion, or RMB1.84 during the previous period. The adjusted earnings per ADS was RMB6.92, which is well above FactSet’s consensus of RMB4.46. The company’s revenue grew by 58.1%, to RMB37.64 (US$5.48 billion), beating the FactSet consensus estimate of RMB32.18. Online marketing revenue increased by 50% to RMB27.24billion and transaction service revenue rose 86% to RMB5.59billion. The cost of sales increased less than the revenue. It rose 55.4% to RMB11.13billion, while gross margins improved from 69.9% to 70.4%. The stock has fallen 28.3% in the last three months, closing Thursday at a 6-1/2-month low.