Leju Reports Third Quarter 2019 Results and Issues Notice of Annual General Meeting
BEIJING, Nov. 25, 2019 /PRNewswire/ -- Leju Holdings Limited ("Leju" or the "Company") (NYSE: LEJU), a leading e-commerce and online media platform for real estate and home furnishing industries in China, today announced its unaudited financial results for the fiscal quarter and nine months ended September 30, 2019.
Third Quarter 2019 Financial Highlights
-- Total revenues increased by 39% year-on-year to $185.4 million. -
Revenues from e-commerce services increased by 58% year-on-year to
$153.4 million.- Revenues from online advertising services decreased by
13% year-on-year to $31.5 million.
-- Income from operations was $15.8 million, an increase of 40% from $11.3
million for the same quarter of 2018.
-- Non-GAAP([1]) income from operations was $19.5 million, an increase of
25% from $15.6 million for the same quarter of 2018.
-- Net income attributable to Leju Holdings Limited shareholders was $11.2
million, or $0.08 per diluted American depositary share ("ADS"), an
increase of 63% from $6.8 million, or $0.05 per diluted ADS, for the
same quarter of 2018.
-- Non-GAAP net income attributable to Leju Holdings Limited shareholders
was $14.1 million, or $0.10 per diluted ADS, an increase of 37% from
$10.3 million, or $0.08 per diluted ADS, for the same quarter of 2018.
First Nine Month 2019 Financial Highlights
-- Total revenues increased by 38% year-on-year to $465.8 million.-
Revenues from e-commerce services increased by 52% year-on-year to
$362.6 million.- Revenues from online advertising services increased by
4% year-on-year to $101.8 million.
-- Income from operations was $8.7 million, compared to loss from
operations of $10.2 million for the same period of 2018.
-- Non-GAAP income from operations was $19.9 million, an increase of 611%
from $2.8 million for the same period of 2018.
-- Net income attributable to Leju Holdings Limited shareholders was $7.0
million, or $0.05 per diluted ADS, compared to net loss attributable to
Leju Holdings Limited shareholders of $14.9 million, or $0.11 loss per
diluted ADS for the same period of 2018.
-- Non-GAAP net income attributable to Leju Holdings Limited shareholders
was $15.9 million, or $0.12 per diluted ADS, compared to non-GAAP net
loss attributable to Leju Holdings Limited shareholders of $4.4 million,
or $0.03 loss per diluted ADS for the same period of 2018.
[1] Leju uses in this press
release the following non-GAAP
financial measures: (1) income
(loss) from operations, (2) net
income (loss), (3) net income
(loss) attributable to Leju
shareholders, (4) net income (loss)
attributable to Leju shareholders
per basic ADS, and (5) net income
(loss) attributable to Leju
shareholders per diluted ADS, each
of which excludes share-based
compensation expense, amortization
of intangible assets resulting from
business acquisitions and income
tax impact on the share-based
compensation expense, amortization
of intangible assets resulting from
business combinations. See "About
Non-GAAP Financial Measures" and
"Unaudited Reconciliation of GAAP
and Non-GAAP Results" below for
more information about the non-
GAAP financial measures included in
this press release.
"We are pleased that our revenue reached a record high in the third quarter," said Mr. Geoffrey He, Leju's chief executive officer. "Since the second half of this year, increasing demand for marketing services from developers as a result of added pressure to reduce inventories has driven significant growth in our new e-commerce business. Leju's top-down strategy has allowed us to seize market opportunities, expand our customer base and increase the average number of projects under cooperation per customer, all of which provide a solid foundation to grow our project pipeline for the fourth quarter and next year. In addition, in the third quarter, our profit remained stable with continued positive cash inflow generated from operations. In the fourth quarter, Leju will hold our annual gala awards ceremony for China's property industry, which will help to further enhance our media influence and customer relationships. "
Third Quarter 2019 Results
Total revenues were $185.4 million, an increase of 39% from $133.6 million for the same quarter of 2018, mainly due to an increase in revenues from e-commerce services.
Revenues from e-commerce services were $153.4 million, an increase of 58% from $96.9 million for the same quarter of 2018, primarily due to an increase in the number of discount coupons redeemed, partially offset by a decrease in the average price per discount coupon redeemed.
Revenues from online advertising services were $31.5 million, a decrease of 13% from $36.0 million for the same quarter of 2018, primarily due to a decrease in property developers' demand for online advertising.
Revenues from listing services were $0.5 million, a decrease of 34% from $0.8 million for the same quarter of 2018, primarily due to a decrease in secondary real estate brokers' demand.
Cost of revenues was $13.2 million, a decrease of 22% from $16.9 million for the same quarter of 2018, primarily due to decreased cost of advertising resources purchased from media platforms related to the Company's online advertising business.
Selling, general and administrative expenses were $157.0 million, an increase of 48% from $106.2 million for the same quarter of 2018, primarily due to increased marketing expenses related to the Company's e-commerce business.
Income from operations was $15.8 million, an increase of 40% from $11.3 million for the same quarter of 2018. Non-GAAP income from operations was $19.5 million, an increase of 25% from $15.6 million for the same quarter of 2018.
Net income was $11.3 million, an increase of 54% from $7.3 million for the same quarter of 2018. Non-GAAP net income was $14.2 million, an increase of 32% from $10.8 million for the same quarter of 2018.
Net income attributable to Leju Holdings Limited shareholders was $11.2 million, or $0.08 per diluted ADS, an increase of 63% from $6.8 million, or $0.05 per diluted ADS, for the same quarter of 2018. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $14.1 million, or $0.10 per diluted ADS, an increase of 37% from $10.3 million, or $0.08 per diluted ADS, for the same quarter of 2018.
First Nine Month 2019 Results
Total revenues were $465.8 million, an increase of 38% from $337.8 million for the same period of 2018, mainly due to an increase in revenues from e-commerce services.
Revenues from e-commerce services were $362.6 million, an increase of 52% from $237.9 million for the same period of 2018, primarily due to an increase in the number of discount coupons redeemed, partially offset by a decrease in the average price per discount coupon redeemed.
Revenues from online advertising services were $101.8 million, an increase of 4% from $97.5 million for the same period of 2018, primarily due to an increase in property developers' demand for online advertising in the first half of 2019.
Revenues from listing services were $1.4 million, a decrease of 44% from $2.4 million for the same period of 2018, primarily due to a decrease in secondary real estate brokers' demand.
Cost of revenues was $55.1 million, an increase of 2% from $54.0 million for the same period of 2018, primarily due to increased cost of advertising resources purchased from media platforms related to the Company's online advertising business in the first half of 2019.
Selling, general and administrative expenses were $403.0 million, an increase of 36% from $296.1 million for the same period of 2018, primarily due to increased marketing expenses related to the Company's e-commerce business.
Income from operations was $8.7 million, compared to loss from operations of $10.2 million for the same period of 2018. Non-GAAP income from operations was $19.9 million, an increase of 611% from $2.8 million for the same period of 2018.
Net income was $7.4 million, compared to net loss of $15.0 million for the same period of 2018. Non-GAAP net income was $16.2 million, compared to non-GAAP net loss of $4.4 million for the same period of 2018.
Net income attributable to Leju Holdings Limited shareholders was $7.0 million, or $0.05 per diluted ADS, compared to net loss attributable to Leju Holdings Limited shareholders of $14.9 million, or $0.11 loss per diluted ADS for the same period of 2018. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $15.9 million, or $0.12 per diluted ADS, compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $4.4 million, or $0.03 loss per diluted ADS for the same period of 2018.
Cash Flow
As of September 30, 2019, the Company's cash and cash equivalents balance was $171.0 million.
Third quarter 2019 net cash provided by operating activities was $10.9 million, primarily comprised of non-GAAP net income of $14.2 million, an increase in accrued marketing and advertising expenses and other current liabilities of $21.1 million, an increase in advance from customer of $6.0 million, and an increase in income tax payable and other tax payable of 4.7 million, partially offset by an increase in accounts receivable and contract assets of $18.4 million, and an increase in customer deposits of $18.2 million.
Business Outlook
The Company estimates that its total revenues for the fourth quarter of 2019 will be approximately $200 million to $210 million, which would represent an increase of approximately 61% to 69% from $124.2 million in the same quarter in 2018. This forecast reflects the Company's current and preliminary view, which is subject to change.
Leju to Hold Annual General Meeting on December 20, 2019
Leju announced that it will hold its annual general meeting of shareholders (the "AGM") at Room 1120, 11/F, Yinli Building, No. 383 Guangyan Road, Shanghai, the People's Republic of China on December 20, 2019 at 10:00AM (local time). No proposal will be submitted to shareholders for approval at the AGM. Instead, the AGM will serve as an open forum for shareholders and holders of the Company's ADSs to discuss Company affairs with management.
Holders of record of the Company's ordinary shares at the close of business on December 2, 2019 (Eastern Daylight Time) are entitled to receive notice of and attend the annual general meeting or any adjournment or postponement thereof. Holders of the Company's ADSs are welcome to attend the AGM in person.
The notice of the annual general meeting is available on the Company's website at http://ir.leju.com.
Conference Call Information
Leju's management will host an earnings conference call on November 25, 2019 at 7 a.m. U.S. Eastern Time (8 p.m. Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
U.S./International: +1-845-675-0437
Hong Kong: +852-3018-6771
Mainland China: 400-620-8038
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "Leju earnings call".
A replay of the conference call may be accessed by phone at the following number until December 3, 2019:
U.S./International: +1-855-452-5696
Hong Kong:
800-963-117
Mainland China:
400-632-2162
Passcode: 8377206
Additionally, a live and archived webcast will be available at http://ir.leju.com.
About Leju
Leju Holdings Limited ("Leju") (NYSE: LEJU) is a leading e-commerce and online media platform for real estate and home furnishing industries in China, offering real estate e-commerce, online advertising and online listing services. Leju's integrated online platform comprises various mobile applications along with local websites covering more than 380 cities, enhanced by complementary offline services to facilitate residential property transactions. In addition to the Company's own websites, Leju operates the real estate and home furnishing websites of SINA Corporation, and maintains a strategic partnership with Tencent Holdings Limited. For more information about Leju, please visit http://ir.leju.com.
Safe Harbor: Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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," "target," "going forward," "outlook" and similar statements. Leju may also make written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, 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 Leju's beliefs and expectations, are forward-looking statements that involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements. Such factors include, but are not limited to, fluctuations in China's real estate market; the highly regulated nature of, and government measures affecting, the real estate and internet industries in China; Leju's ability to compete successfully against current and future competitors; its ability to continue to develop and expand its content, service offerings and features, and to develop or incorporate the technologies that support them; its limited operating history and lack of experience as a stand-alone public company, given its carve-out from E-House and prior reliance on E-House for various corporate services; its reliance on SINA and others with which it has developed, or may develop in the future, strategic partnerships; substantial revenue contribution from a limited number of real estate markets; complexities resulting from its ongoing relationships with E-House, due to E-House's status as a principal shareholder of Leju; and relevant government policies and regulations relating to the corporate structure, business and industry of Leju. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Leju's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.
Leju believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding its operating performance by excluding share-based compensation expense and amortization of intangible assets resulting from business acquisitions, which may not be indicative of Leju's operating performance. These non-GAAP financial measures also facilitate management's internal comparisons to Leju's historical performance and assist its financial and operational decision making. A limitation of using these non-GAAP financial measures is that share-based compensation expense and amortization of intangible assets resulting from business acquisitions may continue to exist in Leju's business for the foreseeable future. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables provide more details on the reconciliation between non-GAAP financial measures and their most comparable GAAP financial measures.
For investor and media inquiries please contact:
Ms. Christina Wu
Leju Holdings Limited
Phone: +86 (10) 5895-1062
E-mail: ir@leju.com
Philip Lisio
Foote Group
Phone: +86 135-0116-6560
E-mail: phil@thefootegroup.com
LEJU HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
December 31, September 30,
2018 2019
ASSETS
Current assets
Cash and cash equivalents 147,263 171,014
Accounts receivable, net 102,697 134,034
Contract assets 2,137 8,400
Marketable securities 2,467 3,414
Prepaid expenses and other current
assets 8,621 7,100
Customer deposits 10,672 27,610
Amounts due from related parties 6,695 9,483
Total current assets 280,552 361,055
Property and equipment, net 14,058 17,968
Intangible assets, net 57,401 48,503
Right-of-use assets[2] 27,624
Investment in affiliates 63 51
Deferred tax assets 62,356 60,507
Other non-current assets 2,297 2,051
Total assets 416,727 517,759
LIABILITIES AND EQUITY
Current liabilities
Accounts payable 803 1,715
Accrued payroll and welfare expenses 30,628 31,943
Income tax payable 58,030 58,329
Other tax payable 12,675 18,000
Amounts due to related parties 3,477 11,399
Advance from customers 26,873 40,710
Lease liabilities, current[2] 5,238
Customer deposit payable 7,069
Accrued marketing and advertising
expenses 14,896 29,861
Other current liabilities 12,999 31,465
Total current liabilities 160,381 235,729
Lease liabilities, non-current[2] 22,725
Deferred tax liabilities 14,780 14,342
Total liabilities 175,161 272,796
Shareholders' Equity
Ordinary shares ($0.001 par value):
1,000,000,000 shares 136 136
authorized, 135,763,962 and
135,770,628 shares issued and
outstanding, as of December 31, 2018
and September 30,
2019, respectively
Additional paid-in capital 792,626 794,344
Accumulated deficit (528,825) (521,804)
Accumulated other comprehensive loss (19,848) (25,629)
Total Leju Holdings Limited
shareholders' equity 244,089 247,047
Non-controlling interests (2,523) (2,084)
Total equity 241,566 244,963
TOTAL LIABILITIES AND EQUITY 416,727 517,759
[2] In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a
right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group
adopted this ASU on January 1, 2019 using the modified retrospective approach and the financial statements for the
comparative period has not been restated.
LEJU HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share data and per share data)
Three months ended
Nine months ended
September 30,
September 30,
2018 2019 2018 2019
Revenues
E-commerce 96,853 153,428 237,894 362,642
Online advertising services 35,968 31,466 97,459 101,798
Listing services 767 505 2,434 1,357
Total revenues 133,588 185,399 337,787 465,797
Cost of revenues (16,935) (13,237) (54,015) (55,068)
Selling, general and
administrative expenses (106,195) (156,977) (296,122) (402,994)
Other operating income 850 590 2,158 958
Income (loss) from operations 11,308 15,775 (10,192) 8,693
Interest income 286 315 845 900
Interest expenses (858) (858)
Other income (loss), net (3,897) (191) (6,269) 1,102
Income (loss) before taxes and
loss from equity 7,697 15,041 (15,616) 9,837
in affiliates
Income tax benefits/
(expenses) (361) (3,776) 732 (2,469)
Income (loss) before loss from
equity in 7,336 11,265 (14,884) 7,368
affiliates
Income (loss) from equity in
affiliates (19) 15 (70) (11)
Net income (loss) 7,317 11,280 (14,954) 7,357
Less: net income (loss)
attributable to 473 121 (52) 337
non-controlling interests
Income (loss) attributable to
Leju Holdings 6,844 11,159 (14,902) 7,020
Limited shareholders
Earnings (loss) per ADS:
Basic 0.05 0.08 (0.11) 0.05
Diluted 0.05 0.08 (0.11) 0.05
Shares used in computation of
earnings (loss) per
ADS:
Basic 135,763,962 135,765,158 135,763,962 135,764,361
Diluted 135,763,962 135,769,998 135,763,962 135,767,912
The conversion of functional currency Renminbi ("RMB") amounts into reporting currency USD amounts
is based on the rate of USD1 = RMB7.0729 on September 30, 2019 and USD1 = RMB6.8569 for the nine
months ended September 30, 2019.
LEJU HOLDINGS LIMITED
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(In thousands of U.S. dollars)
Three months ended Nine months ended
September 30, September 30,
2018 2019 2018 2019
Net income (loss) 7,317 11,280 (14,954) 7,357
Other comprehensive loss, net of
tax of nil
Foreign currency translation
adjustment (3,243) (5,310) (4,016) (5,781)
Comprehensive income (loss) 4,074 5,970 (18,970) 1,576
Less: Comprehensive income
attributable to 551 161 71 377
non-controlling interest
Comprehensive income (loss)
attributable to Leju 3,523 5,809 (19,041) 1,199
Holdings Limited shareholders
LEJU HOLDINGS LIMITED
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In thousands of U.S. dollars, except share data and per ADS data)
Three months ended Nine months ended
September 30,
September 30,
2018 2019 2018 2019
GAAP income (loss) from
operations 11,308 15,775 (10,192) 8,693
Share-based compensation
expense 1,098 599 3,133 1,770
Amortization of intangible
assets resulting from
business 3,204 3,153 9,859 9,459
acquisitions
Non-GAAP income from
operations 15,610 19,527 2,800 19,922
GAAP net income (loss) 7,317 11,280 (14,954) 7,357
Share-based compensation
expense 1,098 599 3,133 1,770
Amortization of intangible
assets resulting from 3,204 3,153 9,859 9,459
business acquisitions
Income tax benefit:
Current
Deferred[3] (801) (788) (2,465) (2,364)
Non-GAAP net income (loss) 10,818 14,244 (4,427) 16,222
Net income (loss)
attributable to Leju
Holdings Limited shareholder 6,844 11,159 (14,902) 7,020
Share-based compensation
expense 1,094 599 3,113 1,770
(
net of non-
controlling interests)
Amortization of intangible
assets resulting from
business 3,204 3,153 9,859 9,459
acquisitions (net of non-
controlling interests)
Income tax benefit:
Current
Deferred (801) (788) (2,465) (2,364)
Non-GAAP net income (loss)
attributable to Leju 10,341 14,123 (4,395) 15,885
Holdings Limited shareholders
GAAP net income (loss) per
ADS -basic 0.05 0.08 (0.11) 0.05
GAAP net income (loss) per
ADS -diluted 0.05 0.08 (0.11) 0.05
Non-GAAP net income (loss)
per ADS - basic 0.08 0.10 (0.03) 0.12
Non-GAAP net income (loss)
per ADS - diluted 0.08 0.10 (0.03) 0.12
Shares used in calculating
basic GAAP /non-GAAP net 135,763,962 135,765,158 135,763,962 135,764,361
income (loss) attributable to
shareholders per ADS
Shares used in calculating
diluted GAAP /non-GAAP net 135,769,998 135,763,962 135,767,912
income (loss) attributable to
shareholders per ADS
135,763,962
[3] Amount represents the realization of deferred tax liabilities recognized for the temporary difference between the tax
basis of intangible assets recognized from acquisitions and their reported amounts in the financial statements.
The income tax impact on the share-based compensation expense is nil.
LEJU HOLDINGS LIMITED
SELECTED OPERATING DATA
Three months ended Nine months ended
September 30, September 30,
2018 2019 2018 2019
Operating data for e-
commerce services
Number of discount coupons
issued to 31,554 73,259 109,484 167,628
prospective purchasers
(number of
transactions)
Number of discount coupons
redeemed (number of 30,807 51,400 65,494 107,194
transactions)
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SOURCE Leju Holdings Limited
