Dingdong (Cayman) Limited (NYSE: DDL) stock is soaring 5.20% in pre-market trading on Wednesday, following the release of its impressive full-year 2024 financial results. The Chinese e-commerce company specializing in fresh produce delivery has shown significant improvements in its financial performance, transitioning from a loss-making position to profitability.

According to the report, Dingdong's revenue for the fiscal year 2024 reached CN¥23.1 billion, marking a 16% increase from the previous year. More notably, the company swung to a net profit of CN¥295.1 million, a substantial improvement from the CN¥99.9 million loss reported in FY 2023. This translates to an earnings per share (EPS) of CN¥0.68, compared to a loss of CN¥0.46 per share in the prior year.

While Dingdong's revenue exceeded analyst estimates by 2.6%, the EPS fell short of expectations by 29%. Despite this mixed performance against forecasts, investors appear to be focusing on the company's overall positive trajectory and its successful transition to profitability. The market's optimistic reaction is further supported by projections of 9.1% annual revenue growth over the next two years, outpacing the 4.8% growth forecast for the US Consumer Retailing industry.