Why did PDD's transaction services revenue spike in Q1 2024?

PDD's transaction services revenue spiked in Q1 2024 due to the significant growth of its Temu platform and the increase in international sales: 1. **Growth of Temu Platform**: Temu, which directly connects international customers with Chinese and other global manufacturers and brands, has seen explosive growth due to the inexpensive prices of its offerings and deep discounts the site gives. This unique value proposition has resonated with international consumers, leading to a surge in transactions and revenue. 2. **Increase in International Sales**: The company's focus on expanding its international presence and leveraging the popularity of its Temu platform has contributed to the revenue growth. As more international customers become aware of and begin to shop on the platform, the transaction volume and revenue increase. In summary, the spike in transaction services revenue can be attributed to the successful monetization of the Temu platform and the expansion of its international market, which has led to a significant increase in transaction volume and revenue.