Leju Reports Third Quarter 2020 Results and Issues Notice of Annual General Meeting
BEIJING, Nov. 23, 2020 /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, 2020.
Third Quarter 2020 Financial Highlights
-- Total revenues increased by 13% year-on-year to $209.4 million. -
Revenues from e-commerce services increased by 12% year-on-year to
$172.4 million. - Revenues from online advertising services increased
by 17% year-on-year to $36.7 million.
-- Net income attributable to Leju Holdings Limited shareholders was $11.7
million, or $0.08 per diluted American depositary share ("ADS"), an
increase of 5% from $11.2 million, or $0.08 per diluted ADS, for the
same quarter of 2019.
-- Non-GAAP([1]) net income attributable to Leju Holdings Limited
shareholders was $14.7 million, or $0.11 per diluted ADS, an increase of
4% from $14.1 million, or $0.10 per diluted ADS, for the same quarter of
2019.
First Nine Months 2020 Financial Highlights
-- Total revenues increased by 5% year-on-year to $489.1 million. -
Revenues from e-commerce services increased by 4% year-on-year to $377.8
million. - Revenues from online advertising services increased by 9%
year-on-year to $110.7 million.
-- Income from operations was $14.0 million, an increase of 61% from $8.7
million for the same period of 2019.
-- Non-GAAP income from operations was $24.8 million, an increase of 25%
from $19.9 million for the same period of 2019.
-- Net income attributable to Leju Holdings Limited shareholders was $13.2
million, or $0.10 per diluted ADS, an increase of 88% from $7.0 million,
or $0.05 per diluted ADS for the same period of 2019.
-- Non-GAAP net income attributable to Leju Holdings Limited shareholders
was $21.9 million, or $0.16 per diluted ADS, an increase of 38% from
$15.9 million, or $0.12 per diluted ADS for the same period of 2019.
[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 maintained strong momentum for our business development in the third quarter as we realized healthy growth in our advertising and e-commerce business," said Mr. Geoffrey He, Leju's chief executive officer. "During the third quarter we successfully held our 'Suning & Leju 818 Summer Storm' sale. In September, our affiliate company E-House and Alibaba jointly launched the Tmall Housing platform and the real estate transaction cooperation mechanism or ETC. As part of this, Leju, together with Tmall Housing, Suning e-buy and E-House, jointly launched the 'Double 11 - Tmall Housing 10 Billion Subsidy' promotion during the Double 11 period. These activities have received strong industry recognition, especially the "Double 11" promotion, which involved 302 brands and over 2,000 real estate projects. The success of these activities further highlights Leju's multi-channel digital marketing capabilities, takes the development of our advertising and e-commerce business to the next level and further solidifies Leju's position in the real-estate marketing industry as the leader in providing comprehensive solutions throughout the value chain."
"In the fourth quarter, Leju will hold a series of influential annual events marking Double 12. We look forward to building on the momentum of Double 11, further enhancing our influence in the industry, increasing product innovation, and significantly improving the client coverage and service level as we end the year on a strong note and begin to prepare for 2021."
Third Quarter 2020 Results
Total revenues were $209.4 million, an increase of 13% from $185.4 million for the same quarter of 2019, mainly due to an increase in revenues from e-commerce services and online advertising services.
Revenues from e-commerce services were $172.4 million, an increase of 12% from $153.4 million for the same quarter of 2019, primarily due to an increase in the number of discount coupons redeemed.
Revenues from online advertising services were $36.7 million, an increase of 17% from $31.5 million for the same quarter of 2019, primarily due to an increase in property developers' demand for online advertising.
Revenues from listing services were $0.3 million, a decrease of 45% from $0.5 million for the same quarter of 2019, primarily due to a decrease in secondary real estate brokers' demand.
Cost of revenues was $14.8 million, an increase of 12% from $13.2 million for the same quarter of 2019, primarily due to increased cost of advertising resources purchased from media platforms related to the Company's online advertising business.
Selling, general and administrative expenses were $181.8 million, an increase of 16% from $157.0 million for the same quarter of 2019, primarily due to increased marketing expenses related to the Company's e-commerce business.
Income from operations was $12.9 million, a decrease of 18% from $15.8 million for the same quarter of 2019. Non-GAAP income from operations was $16.6 million, a decrease of 15% from $19.5 million for the same quarter of 2019.
Net income was $11.9 million, an increase of 5% from $11.3 million for the same quarter of 2019. Non-GAAP net income was $14.9 million, an increase of 4% from $14.2 million for the same quarter of 2019.
Net income attributable to Leju Holdings Limited shareholders was $11.7 million, or $0.08 per diluted ADS, an increase of 5% from $11.2 million, or $0.08 per diluted ADS, for the same quarter of 2019. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $14.7 million, or $0.11 per diluted ADS, an increase of 4% from $14.1 million, or $0.10 per diluted ADS, for the same quarter of 2019.
First Nine Months 2020 Results
Total revenues were $489.1 million, an increase of 5% from $465.8 million for the same period of 2019, mainly due to an increase in revenues from e-commerce services and online advertising services.
Revenues from e-commerce services were $377.8 million, an increase of 4% from $362.6 million for the same period of 2019, 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 $110.7 million, an increase of 9% from $101.8 million for the same period of 2019, primarily due to an increase in property developers' demand for online advertising.
Revenues from listing services were $0.6 million, a decrease of 54% from $1.4 million for the same period of 2019, primarily due to a decrease in secondary real estate brokers' demand.
Cost of revenues was $56.0 million, an increase of 2% from $55.1 million for the same period of 2019, primarily due to increased cost of advertising resources purchased from media platforms related to the Company's online advertising business.
Selling, general and administrative expenses were $419.5 million, an increase of 4% from $403.0 million for the same period of 2019, primarily due to increased marketing expenses related to the Company's e-commerce business.
Income from operations was $14.0 million, an increase of 61% from $8.7 million for the same period of 2019. Non-GAAP income from operations was $24.8 million, an increase of 25% from $19.9 million for the same period of 2019.
Net income was $13.8 million, an increase of 87% from $7.4 million for the same period of 2019. Non-GAAP net income was $22.5 million, an increase of 38% from $16.2 million for the same period of 2019.
Net income attributable to Leju Holdings Limited shareholders was $13.2 million, or $0.10 per diluted ADS, an increase of 88% from $7.0 million, or $0.05 per diluted ADS for the same period of 2019. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $21.9 million, or $0.16 per diluted ADS, an increase of 38% from $15.9 million, or $0.12 per diluted ADS for the same period of 2019.
Cash Flow
As of September 30, 2020, the Company's cash and cash equivalents and restricted cash were $273.8 million.
Third quarter 2020 net cash used in operating activities was $4.4 million, primarily comprised of a decrease in amounts due to related parties of $30.7 million, an increase in amounts due from related parties of $16.3 million and an increase in accounts receivable of $15.3 million, partially offset by non-GAAP net income of $14.9 million, an increase in other current liabilities and accrued expenses of $23.1 million, an increase in income tax payable and other tax payable of $7.7 million, and a decrease in customer deposits of $12.0 million.
Business Outlook
The Company estimates that its total revenues for the fourth quarter of 2020 will be approximately $230 million to $250 million, which would represent an increase of approximately 1% to 10% from $226.8 million in the same quarter in 2019. This forecast reflects the Company's current and preliminary view, which is subject to change.
Leju to Hold Annual General Meeting on December 21, 2020
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 21, 2020 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 November 30, 2020 (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 23, 2020 at 6 a.m. U.S. Eastern Time (7 p.m. Beijing/Hong Kong time).
Please register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.
PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/4452418
CONFERENCE ID: 4452418
A replay of the conference call may be accessed by phone at the following number until December 1, 2020:
U.S./International: +1-855-452-5696
Hong Kong:
+800-963-117
Mainland China:
400-632-2162
Passcode: 4452418
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 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; 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,
2019 2020
ASSETS
Current assets
Cash and cash equivalents 159,012 270,840
Restricted cash 2,993
Accounts receivable, net 147,638 202,824
Contract assets 830 604
Marketable securities 3,438 4,406
Prepaid expenses and other current
assets 5,436 6,285
Customer deposits 57,174 11,107
Amounts due from related parties 9,673 17,653
Total current assets 383,201 516,712
Property and equipment, net 18,108 16,813
Intangible assets, net 45,581 36,926
Right-of-use assets 26,776 25,651
Investment in affiliates 53 22
Deferred tax assets 49,311 50,513
Other non-current assets 1,450 1,339
Total assets 524,480 647,976
LIABILITIES AND EQUITY
Current liabilities
Accounts payable 1,523 4,141
Accrued payroll and welfare expenses 32,787 29,766
Income tax payable 56,691 62,473
Other tax payable 20,056 23,068
Amounts due to related parties 4,407 23,401
Advance from customers 34,246 104,512
Lease liabilities, current 5,189 5,390
Accrued marketing and advertising
expenses 49,830 61,486
Other current liabilities 32,784 25,778
Total current liabilities 237,513 340,015
Lease liabilities, non-current 22,866 21,659
Deferred tax liabilities 11,742 12,028
Total liabilities 272,121 373,702
Shareholders' Equity
Ordinary shares ($0.001 par value):
1,000,000,000 shares 136 136
authorized, 135,812,719 and
136,290,356 shares issued and
outstanding, as of December 31, 2019
and September 30,
2020, respectively
Additional paid-in capital 796,192 798,791
Accumulated deficit (517,303) (504,119)
Subscription receivables (19)
Accumulated other comprehensive loss (23,624) (18,276)
Total Leju Holdings Limited
shareholders' equity 255,401 276,513
Non-controlling interests (3,042) (2,239)
Total equity 252,359 274,274
TOTAL LIABILITIES AND EQUITY 524,480 647,976
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,
2019 2020 2019 2020
Revenues
E-commerce 153,428 172,385 362,642 377,833
Online advertising 31,466 36,729 101,798 110,658
Listing 505 279 1,357 618
Total net revenues 185,399 209,393 465,797 489,109
Cost of revenues (13,237) (14,832) (55,068) (55,970)
Selling, general and
administrative expenses (156,977) (181,781) (402,994) (419,451)
Other operating income, net 590 87 958 332
Income from operations 15,775 12,867 8,693 14,020
Interest income (expenses),
net (543) 1,851 42 2,550
Other income (loss), net (191) 907 1,102 1,620
Income before taxes and income
(loss) from 15,041 15,625 9,837 18,190
equity in affiliates
Income tax expenses (3,776) (3,763) (2,469) (4,381)
Income before income (loss)
from equity in 11,265 11,862 7,368 13,809
affiliates
Income (loss) from equity in
affiliates, net of tax 15 (9) (11) (31)
of nil
Net income 11,280 11,853 7,357 13,778
Less: net income attributable
to non-controlling 121 161 337 594
interests
Net income attributable to
Leju Holdings 11,159 11,692 7,020 13,184
Limited shareholders
Earnings per share:
Basic 0.08 0.09 0.05 0.10
Diluted 0.08 0.08 0.05 0.10
Shares used in computation of
earnings per ADS:
Basic 135,765,158 136,191,411 135,764,361 135,991,548
Diluted 135,769,998 138,366,523 135,767,912 136,815,220
The conversion of functional currency Renminbi ("RMB") amounts into reporting currency USD amounts
is based on the rate of USD1 = RMB6.8101 on September 30, 2020 and USD1 = RMB7.0177 for the nine
months ended September 30, 2020.
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,
2019 2020 2019 2020
Net income 11,280 11,853 7,357 13,778
Other comprehensive income (loss),
net of tax of nil
Foreign currency translation
adjustments (5,310) 8,601 (5,781) 5,322
Comprehensive income 5,970 20,454 1,576 19,100
Less: Comprehensive income
attributable to 161 104 377 568
non-controlling interests
Comprehensive income attributable
to Leju 5,809 20,350 1,199 18,532
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,
2019 2020 2019 2020
GAAP income from operations 15,775 12,867 8,693 14,020
Share-based compensation
expense 599 1,046 1,770 2,282
Amortization of intangible
assets resulting from
business 3,153 2,640 9,459 8,541
acquisitions
Non-GAAP income from
operations 19,527 16,553 19,922 24,843
GAAP net income 11,280 11,853 7,357 13,778
Share-based compensation
expense 599 1,046 1,770 2,282
Amortization of intangible
assets resulting from 3,153 2,640 9,459 8,541
business acquisitions
Income tax benefits:
Current
Deferred[2] (788) (660) (2,364) (2,136)
Non-GAAP net income 14,244 14,879 16,222 22,465
Net income attributable to
Leju Holdings Limited 11,159 11,692 7,020 13,184
shareholder
Share-based compensation
expense 599 1,046 1,770 2,282
(net of non-controlling
interests)
Amortization of intangible
assets resulting from
business 3,153 2,640 9,459 8,541
acquisitions (net of non-
controlling interests)
Income tax benefits:
Current
Deferred (788) (660) (2,364) (2,136)
Non-GAAP net income
attributable to Leju
Holdings 14,123 14,718 15,885 21,871
Limited shareholders
GAAP net income per ADS -
basic 0.08 0.09 0.05 0.10
GAAP net income per ADS -
diluted 0.08 0.08 0.05 0.10
Non-GAAP net income per ADS
- basic 0.10 0.11 0.12 0.16
Non-GAAP net income per ADS
- diluted 0.10 0.11 0.12 0.16
Shares used in calculating
basic GAAP /non-GAAP net 135,765,158 136,191,411 135,764,361 135,991,548
income attributable to
shareholders per ADS
Shares used in calculating
diluted GAAP /non-GAAP net 135,769,998 138,366,523 135,767,912 136,815,220
income attributable to
shareholders per ADS
[2] 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,
2019 2020 2019 2020
Operating data for e-
commerce services
Number of discount
coupons issued to 73,259 66,415 167,628 160,630
prospective purchasers
(number of
transactions)
Number of discount
coupons redeemed (number 51,400 57,934 107,194 125,202
of transactions)
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SOURCE Leju Holdings Limited
