Luckin Coffee (NASDAQ: LK) reported its third quarter financial results before the opening bell on Wednesday. The Company surpassed earnings estimates, but reported in-line revenue. Shares skyrocketed by 15% shortly before the opening bell.

For the quarter, Luckin reported earnings loss of USD 0.32 per share on revenue of USD 208.9 Million. Analysts anticipated earnings loss of USD 0.38 per share on revenue of USD 208.9 Million.

At the end of the quarter, Luckin witnessed its net losses increased from RMB 484.9 Million in the third quarter of 2018 to RMB 531.9 Million (USD 74.4 Million).

Despite the widening net losses, the Company reported that revenue from products increased by 557.6% year-over-year. Average monthly total items sold reached 44.2 million, representing a 470.1% increase year-over-year.

Cumulative number of transacting customers increased by 413.4% to 30.7 million. During the third quarter, Luckin acquired 7.9 million new transacting customers. Average monthly transacting customers increased by 397.5% to 9.3 million at the end of the quarter.

Luckin rapidly expanded in the past year and continued to launch new locations. At the end of the third quarter, the Company had 3,680 stores, representing an increase of 209.5% year-over-year. Average total net revenues from products per store were USD 62,900, increasing by 79.5% year-over-year.

“During the third quarter, sales from freshly-brewed coffee drinks continued to maintain very strong growth, and we believe we will reach our goal to become the largest coffee player in China by the end of this year. With our distinguished value proposition of high quality, high affordability and high convenience we believe that Luckin Coffee has become part of more and more Chinese consumers’ daily lives. China’s coffee market remains highly underpenetrated so we are very excited about the growth potential ahead of us,” said Jenny Zhiya Qian, Chief Executive Officer of Luckin Coffee.

“With our disruptive technology-driven new retail model and our newly-launched retail partnership model, we believe we can rapidly expand into adjacent markets with limited capital expenditures while maintaining a high degree of operational control and efficiency. We are pleased to have taken meaningful steps accomplishing our goals this quarter and remain extremely excited about the future of our business,” concluded Ms. Qian.