JD.com (JD - Get Report) posted stronger-than-expected first quarter earnings Friday as the China-focused online retailer backed by Walmart (WMT - Get Report) and Alphabet (GOOGL - Get Report) renewed an agreement with Tencent Holdings (TCEHY) and booked solid e-commerce sales growth.
JD said revenues for the three months ending in March rose 20.9% from the same period last year to 121.1 billion Chinese yuan ($18 billion), topping the consensus forecast of 120.1 billion yuan compiled by Refinitiv.
JD.com also said it has renewed a strategic tie-up with Tencent that will give it high-level access to its Weixin platform, which, along with WeChat, attracted nearly 1.1 billion users each month over the first quarter and grew 11% from the same period last year.
JD.com will pay Tencent around $800 million for the three year deal, and the online giant will also take an $250 million in JD.com's class A shares.
"JD.com's focus on delivering the best and most trusted online retail experience to customers throughout China drove another strong performance for the first quarter," said CEO Richard Liu.