Autohome Inc. Announces Unaudited Third Quarter Ended September 30, 2019 Financial Results
BEIJING, Nov. 5, 2019 /PRNewswire/ -- Autohome Inc. (NYSE: ATHM) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced its unaudited financial results for the third quarter ended September 30, 2019.
Third Quarter 2019 Highlights([1])
-- Net Revenues in the third quarter of 2019 were RMB2,170.2 million
($303.6 million), an increase of 14.9% year-over-year.
-- Mobile Traffic Leadership Continues: In September 2019, the total number
of average daily active users who accessed the Company's mobile
websites, primary application and mini-apps reached 38.8 million,
representing an increase of 38% compared to September 2018, and further
solidifying the Company's dominant position in China's auto vertical
sector.
-- Intelligent New Car Launch: Launched in June 2019, the Intelligent New
Car Launch is a data product for automakers by leveraging the Company's
content and big data capabilities, aiming to improve the market
awareness of newly launched car models. By the end of September, eight
automakers have signed up for this new service.
Mr. Min Lu, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, "Autohome delivered solid results amidst a challenging operating climate with revenue totaling RMB2.17 billion. In the third quarter, we strived to bring users enriched content and offered them more value. Road trip related content attracted attentions from both automakers and auto fans. Data business sustained its momentum as we saw strong demand from customers for our newly launched data products, which demonstrated our leading position in this space. Furthermore, our prudent overseas business expansion is well on track. All these developments demonstrate that Autohome as a first mover, consistently improves and diversifies its offerings to capture opportunities for future growth."
Mr. Jun Zou, Chief Financial Officer of Autohome, added, "In the third quarter, Autohome maintained its solid growth with total revenue increasing by 14.9% year-over-year, driven by our resilient core business as well as robust new initiatives. With our strong balance sheet and abundant cash on hand, we believe we are well geared to make investments in strategic areas that will contribute to our long-term growth. In addition, given our strong cash position and ability to generate cash flow, our board of directors approved an annual cash dividend policy. The amount of the first dividend based on the policy will be announced after the disclosure of the fourth quarter 2019 results. This dividend plan showcases our confidence in the Company's business and our firm commitment to our shareholders."
[1] The reporting currency of the
Company is Renminbi ("RMB"). For
the convenience of readers,
certain amounts throughout the
release are presented in US
dollars ("$"). Unless otherwise
noted, all conversions from RMB to
US$ are translated at the noon
buying rate of US$1.00 to
RMB7.1477 on September 30, 2019 in
the City of New York for cable
transfers of RMB as certified for
customs purposes by the Federal
Reserve Bank of New York. No
representation is made that the
RMB amounts could have been, or
could be, converted into US$ at
such rate.
Unaudited Third Quarter 2019 Financial Results
Net Revenues
Net revenues in the third quarter of 2019 were RMB2,170.2 million ($303.6 million), compared to RMB1,888.4 million in the corresponding period of 2018.
-- Media services revenues were RMB924.5 million ($129.3 million), compared
to RMB901.3 million in the corresponding period of 2018.
-- Leads generation services revenues were RMB828.8 million ($116.0
million), compared to RMB739.3 million in the corresponding period of
2018. The increase was primarily attributable to the increase in average
revenue per paying dealer.
-- Online marketplace and others revenues increased by 68.2% to RMB416.9
million ($58.3 million) from RMB247.9 million in the corresponding
period of 2018. The increase was primarily attributable to the increased
contribution from data products.
Cost of Revenues
Cost of revenues was RMB247.1 million ($34.6 million), compared to RMB215.4 million in the corresponding period of 2018. In addition, cost of revenues included share-based compensation expenses of RMB4.6 million ($0.6 million) during the third quarter of 2019, compared to RMB4.3 million in the corresponding period of 2018.
Operating Expenses
Operating expenses were RMB1,426.1 million ($199.5 million) in the third quarter of 2019, compared to RMB1,074.0 million in the corresponding period of 2018. The increase was mainly due to increases in sales and marketing expenses and product development expenses, as the Company continued to invest in future growth opportunities.
-- Sales and marketing expenses were RMB955.7 million ($133.7 million) in
the third quarter of 2019, compared to RMB676.5 million in the
corresponding period of 2018. The increase was primarily due to the
expenses related to the Company's 818 Global Super Auto Show and
increased execution expenses to support automakers and dealers. Sales
and marketing expenses for the third quarter of 2019 included
share-based compensation expenses of RMB13.4 million ($1.9 million),
compared to RMB18.0 million in the corresponding period of 2018.
-- General and administrative expenses were RMB108.7 million ($15.2
million) in the third quarter of 2019, compared to RMB100.3 million in
the corresponding period of 2018. General and administrative expenses
for the third quarter of 2019 included share-based compensation expenses
of RMB16.0 million ($2.2 million), compared to RMB12.8 million in the
corresponding period of 2018.
-- Product development expenses were RMB361.7 million ($50.6 million) in
the third quarter of 2019, compared to RMB297.3 million in the
corresponding period of 2018. The increase was primarily due to an
increase in staff cost related to product development. Product
development expenses for the third quarter of 2019 included share-based
compensation expenses of RMB23.6 million ($3.3 million), compared to
RMB19.9 million in the corresponding period of 2018.
Operating Profit
Operating profit was RMB640.5 million ($89.6 million) in the third quarter of 2019, compared to RMB698.2 million in the corresponding period of 2018.
Income tax expense
Income tax expense was RMB119.5 million ($16.7 million) in the third quarter of 2019, compared to RMB150.7 million in the corresponding period of 2018.
Net Income attributable to Autohome Inc. and EPS
Net income attributable to Autohome Inc. was RMB643.7 million ($90.1 million) in the third quarter of 2019, compared to RMB681.3 million in the corresponding period of 2018. Basic and diluted earnings per share/per ADS or "EPS" were RMB5.42 ($0.76) and RMB5.39 ($0.75), respectively, compared to basic and diluted EPS of RMB5.78 and RMB5.71, respectively, in the corresponding period of 2018.
Adjusted Net Income attributable to Autohome Inc. (Non-GAAP) and Non-GAAP EPS
Adjusted net income attributable to Autohome Inc. (Non-GAAP), defined as net income attributable to Autohome Inc., excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, was RMB702.4 million ($98.3 million) in the third quarter of 2019, compared to RMB737.4 million in the corresponding period of 2018. Non-GAAP basic and diluted EPS were RMB5.92 ($0.83) and RMB5.88 ($0.82), respectively, compared to non-GAAP basic and diluted EPS of RMB6.26 and RMB6.18, respectively, in the corresponding period of 2018.
Balance Sheet and Cash Flow
As of September 30, 2019, the Company had cash and cash equivalents and short-term investments of RMB11.18 billion ($1,563.8 million). Net cash provided by operating activities in the third quarter of 2019 was RMB393.3 million ($55.0 million).
Employees
The Company had 4,168 employees as of September 30, 2019.
Annual Dividend Policy
On November 4, 2019, the Company's board of directors approved an annual cash dividend policy. Under the policy, starting from 2020, the Company will declare and distribute a recurring cash dividend at an amount equivalent to approximately 20% of the Company's net income in the previous fiscal year. The Company expects to announce the dividend amount for fiscal year 2019 after the disclosure of the fourth quarter results of 2019. The determination to make dividend distributions and the exact amount of such distributions in any particular year will be based upon the Company's operations and earnings, cash flow, financial condition and other relevant factors, and subject to adjustment and determination by the board of directors.
Business Outlook
Autohome currently expects to generate net revenues in the range of RMB2,255.0 million ($315.5 million) to RMB2,330.0 million ($326.0 million) in the fourth quarter of fiscal year 2019, representing a 3.1% to 6.5% year-over-year increase. This forecast reflects the Company's current and preliminary view on the market and its operating conditions, which are subject to change.
Conference Call Information
The Company will host an earnings conference call at 7:00 AM U.S. Eastern Time on Tuesday, November 5, 2019 (8:00 PM Beijing Time on the same day).
Dial-in details for the earnings conference call are as follows:
United States:
+1-855-824-5644
Hong Kong, China:
+852-3027-6500
Mainland China:
8009-880-563
United Kingdom:
0800-026-1542
International:
+1-646-722-4977
Passcode:
38669810#
Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.
A replay of the conference call may be accessed by phone at the following numbers until November 11, 2019:
United States:
+1-646-982-0473
International:
+61-2-8325-2405
Passcode:
319324007#
Additionally, a live and archived webcast of the conference call will be available at http://ir.autohome.com.cn.
About Autohome Inc.
Autohome Inc. (NYSE: ATHM) is the leading online destination for automobile consumers in China. Its mission is to enhance the car-buying and ownership experience for auto consumers in China. Autohome provides professionally produced and user-generated content, a comprehensive automobile library, and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle. The ability to reach a large and engaged user base of automobile consumers has made Autohome a preferred platform for automakers and dealers to conduct their advertising campaigns. Further, the Company's dealer subscription and advertising services allow dealers to market their inventory and services through Autohome's platform, extending the reach of their physical showrooms to potentially millions of internet users in China and generating sales leads for them. The Company offers sales leads, data analysis, and marketing services to assist automakers and dealers with improving their efficiency and facilitating transactions. As a transaction-centric company, Autohome operates its "Autohome Mall," a full-service online transaction platform, to facilitate transactions for automakers and dealers. Further, through its websites and mobile applications, it also provides other value-added services, including auto financing, auto insurance, used car transactions, and aftermarket services. For further information, please visit www.autohome.com.cn.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates" and similar statements. Among other things, Autohome's business outlook, Autohome's strategic and operational plans and quotations from management in this announcement contain forward-looking statements. Autohome may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Autohome's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Autohome's goals and strategies; Autohome's future business development, results of operations and financial condition; the expected growth of the online automobile advertising market in China; Autohome's ability to attract and retain users and advertisers and further enhance its brand recognition; Autohome's expectations regarding demand for and market acceptance of its products and services; competition in the online automobile advertising industry; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Autohome's filings with the SEC. All information provided in this press release is as of the date of this press release, and Autohome does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Use of Non-GAAP Financial Measures
To supplement net income presented in accordance with U.S. GAAP, we use Adjusted Net Income attributable to Autohome Inc., Non-GAAP basic and diluted EPS and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome Inc. as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. We define Non-GAAP basic and diluted EPS as Adjusted Net Income attributable to Autohome Inc. divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted EBITDA as net income attributable to Autohome Inc. before income tax expense/(benefit), depreciation expenses of property and equipment and amortization expenses of intangible assets and share-based compensation expenses. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance, in addition to net income prepared in accordance with U.S. GAAP. We believe these non-GAAP financial measures are important to help investors understand our operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess our core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of our results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliation of non-GAAP and GAAP Results" set forth at the end of this press release.
For investor and media inquiries, please contact:
In China:
Autohome Inc.
Investor Relations
Anita Chen
Tel: +86-10-5985-7483
Email: ir@autohome.com.cn
The Piacente Group, Inc.
Xi Zhang
Tel: +86-10-6508-0677
E-mail: autohome@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: autohome@tpg-ir.com
AUTOHOME INC.
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(Amount in thousands, except per share data)
For three months ended September 30,
2018 2019
RMB
RMB
US$
(Unaudited) (Unaudited) (Unaudited)
Net revenues:
Media services 901,301 924,463 129,337
Leads generation
services 739,270 828,803 115,954
Online marketplace
and others 247,861 416,933 58,331
Total net revenues 1,888,432 2,170,199 303,622
Cost of revenues (215,357) (247,098) (34,570)
Gross profit 1,673,075 1,923,101 269,052
Operating expenses:
Sales and marketing
expenses (676,509) (955,712) (133,709)
General and
administrative
expenses (100,269) (108,714) (15,210)
Product development
expenses (297,259) (361,687) (50,602)
Total operating
expenses (1,074,037) (1,426,113) (199,521)
Other income, net 99,163 143,558 20,085
Operating profit 698,201 640,546 89,616
Interest income 102,132 124,008 17,349
Gain from equity
method investments 30,419 127 18
Fair value change of
other non-current - (1,416) (198)
assets
Income before income
taxes 830,752 763,265 106,785
Income tax expense (150,702) (119,450) (16,712)
Net income 680,050 643,815 90,073
Net loss/(income)
attributable to 1,271 (110) (15)
noncontrolling interests
Net income
attributable to
Autohome 681,321 643,705 90,058
Inc.
Earnings per share for ordinary shares
Basic 5.78 5.42 0.76
Diluted 5.71 5.39 0.75
Weighted average shares used to
compute earnings per share attributable
to common stockholders:
Basic 117,835,866 118,733,086 118,733,086
Diluted 119,245,283 119,520,349 119,520,349
AUTOHOME INC.
RECONCILIATION OF NON-GAAP AND GAAP RESULTS
(Amount in thousands, except per share data)
For three months ended September 30,
2018 2019
RMB
RMB
US$
(Unaudited) (Unaudited) (Unaudited)
Net income attributable to 681,321 643,705 90,058
Autohome Inc.
Plus: income tax expense 150,702 119,450 16,712
Plus: depreciation of property
and 22,538 27,053 3,785
equipment
Plus: amortization of intangible
assets 2,904 2,917 408
EBITDA 857,465 793,125 110,963
Plus: share-based compensation 54,956 57,589 8,057
expenses
Adjusted EBITDA 912,421 850,714 119,020
Net income attributable to 681,321 643,705 90,058
Autohome Inc.
Plus: amortization of acquired 1,139 1,139 159
intangible assets of Cheerbright,
China Topside and Norstar
Plus: share-based compensation 54,956 57,589 8,057
expenses
Adjusted net income attributable
to 737,416 702,433 98,274
Autohome Inc.
Non-GAAP earnings per share for
ordinary shares
Basic 6.26 5.92 0.83
Diluted 6.18 5.88 0.82
Weighted average shares used to
compute earnings per share
attributable to common
stockholders:
Basic 117,835,866 118,733,086 118,733,086
Diluted 119,245,283 119,520,349 119,520,349
AUTOHOME INC.
CONDENSED CONSOLIDATED BALANCE SHEET[2]
(Amount in thousands, except as noted)
As of December 31, As of September 30,
---
2018 2019
RMB
RMB
US$
(Audited) (Unaudited) (Unaudited)
ASSETS
Current assets
Cash and cash equivalents 211,970 727,928 101,841
Short-term investments 9,849,488 10,449,656 1,461,961
Accounts and notes receivable, net 2,795,835 3,217,999 450,215
Amounts due from related parties, 34,047 34,476 4,823
current
Prepaid expenses and other current 249,977 312,374 43,703
assets
Total current assets 13,141,317 14,742,433 2,062,543
Non-current assets
Restricted cash, non-current 5,000 5,000 700
Property and equipment, net 170,198 209,610 29,326
Goodwill and intangible assets, net 1,543,682 1,534,932 214,745
Long-term investments 70,979 69,435 9,714
Deferred tax assets 90,179 161,406 22,582
Other non-current assets 734,846 904,733 126,577
Total non-current assets 2,614,884 2,885,116 403,644
Total assets 15,756,201 17,627,549 2,466,187
LIABILITIES AND EQUITY
Current liabilities
Accrued expenses and other 2,439,948 2,623,716 367,073
payables
Advance from customers 75,017 82,471 11,538
Deferred revenue 1,510,726 608,064 85,071
Income tax payable 119,210 319,333 44,676
Amounts due to related parties 19,868 22,830 3,194
Total current liabilities 4,164,769 3,656,414 511,552
Non-current liabilities
Other liabilities 24,068 51,610 7,221
Deferred tax liabilities 455,921 449,710 62,917
Total non-current liabilities 479,989 501,320 70,138
Total liabilities 4,644,758 4,157,734 581,690
Equity
Total Autohome Inc. shareholders' 11,135,278 13,493,091 1,887,753
equity
Noncontrolling interests (23,835) (23,276) (3,256)
Total equity 11,111,443 13,469,815 1,884,497
Total liabilities and equity 15,756,201 17,627,549 2,466,187
[2] In February 2016, the
Financial Accounting Standards
Board issued ASU No. 2016-02,
Leases ("ASU 2016-02"). Under
the new provisions, all lessees
will report a right-of-use
asset and a liability for the
obligation to make payments for
all leases with the exception
of those leases with a term of
12 months or less. The Company
adopted this guidance effective
January 1, 2019 using the
modified retrospective method,
with the comparative
information not being restated
and continues to be reported
under the accounting standards
in effect for those periods.
The most significant impact
upon adoption was the
recognition of right-of-use
assets and lease liabilities
for operating lease related to
office buildings and internet
data center ("IDC") facilities.
As of September 30, 2019,
operating lease right-of-use
assets (included in other non-
current assets) of RMB112.0
million ($15.7 million),
operating lease liabilities,
current (included in accrued
expenses and other payables) of
RMB79.3 million ($11.1 million)
and operating lease
liabilities, non-current
(included in other liabilities)
of RMB29.2 million ($4.1
million) was recognized on the
consolidated balance sheet.
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SOURCE Autohome Inc.
