PR Newswire: news distribution, targeting and monitoring
Home Page > News Releases > Industry News > Leju Reports First Quarter 2017 Results

Leju Reports First Quarter 2017 Results

2017-06-14 18:00
Share with Twitter

BEIJING, June 14, 2017 /PRNewswire/ -- Leju Holdings Limited ("Leju" or the "Company") (NYSE: LEJU), a leading online-to-offline ("O2O") real estate services provider in China, today announced its unaudited financial results for the fiscal quarter ended March 31, 2017.

First Quarter 2017 Financial Highlights

  • Total revenues decreased by 40% year-on-year to $68.3 million.
    • Revenues from e-commerce services decreased by 56% year-on-year to $38.1 million.
    • Revenues from online advertising services increased by 18% year-on-year to $25.8 million.
    • Revenues from listing services decreased by 14% year-on-year to $4.4 million.
  • Loss from operations was $46.3 million. Non-GAAP[1] loss from operations was $41.8 million.
  • Net loss attributable to Leju shareholders was $28.2 million, or $0.21 loss per diluted American depositary share ("ADS"). Non-GAAP net loss attributable to Leju shareholders was $24.2 million, or $0.18 loss per diluted ADS.

[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 and amortization of intangible assets resulting from business acquisitions. 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 continued to operate in a difficult environment during the first quarter of 2017," said Mr. Geoffrey He, Leju's Chief Executive Officer.  "Tightening measures put in place in late 2016 by the PRC government in the real estate industry, such as price ceilings and required holdings periods, continued to affect market conditions and pose challenges for our businesses, in particular our e-commerce business and secondary listing business. We do not expect significant improvement in market conditions in the near future."

Mr. He continued, "Despite the challenging environment, we maintained our focus on product innovation and client services. Our new marketing products launched late last year were well-received by our clients, and this in turn has helped to solidify many long-term client relationships. Moreover, we are encouraged to see an increase in our advertising revenue in the first quarter despite government policies restricting marketing activities by developers."

First Quarter 2017 Results

Total revenues were $68.3 million, a decrease of 40% from $113.0 million for the same quarter of 2016, mainly due to decreases in e-commerce service revenue and listing service revenue as a result of restrictions placed by local governments.

Revenues from e-commerce services were $38.1 million, a decrease of 56% from $86.1 million for the same quarter of 2016, primarily due to decreases in both the number of discount coupons redeemed and in the average price per discount coupon.

Revenues from online advertising services were $25.8 million, an increase of 18% from $21.8 million for the same quarter of 2016, primarily due to an increase in property developers' online advertising demand as a result of new products launched.

Revenues from listing services were $4.4 million, a decrease of 14% from $5.1 million for the same quarter of 2016, primarily due to a decrease in secondary home sales.

Cost of revenues was $14.1 million, an increase of 4% from $13.6 million for the same quarter of 2016, primarily due to increased cost of advertising resources purchased from SINA, partially offset by decreased staffing cost of the editorial department as a result of headcount change.

Selling, general and administrative expenses were $100.5 million, a decrease of 11% from $113.3 million for the same quarter of 2016, primarily due to decreased marketing expenses related to the Company's e-commerce business.

Loss from operations was $46.3 million, compared to $13.8 million for the same quarter of 2016. Non-GAAP loss from operations was $41.8 million, compared to $7.4 million for the same quarter of 2016.

Net loss was $28.6 million, compared to $11.1 million for the same quarter of 2016. Non-GAAP net loss was $24.7 million, compared to $5.4 million for the same quarter of 2016.

Net loss attributable to Leju shareholders was $28.2 million, or $0.21 loss per diluted ADS, compared to $11.0 million, or $0.08 loss per diluted ADS, for the same quarter of 2016. Non-GAAP net loss attributable to Leju shareholders was $24.2 million, or $0.18 loss per diluted ADS, compared to $5.3 million, or $0.04 loss per diluted ADS, for the same quarter of 2016.

Cash Flow

As of March 31, 2017, the Company's cash and cash equivalents balance was $219.8 million.

First quarter 2017 net cash used in operating activities was $55.7 million, mainly attributable to non-GAAP net loss of $24.7 million, a decrease in accrued payable and welfare expenses of $8.4 million and a decrease in income tax payable and other tax payable of $26.3 million, partially offset by a decrease in customer deposit of $5.1 million.

Business Outlook

The Company estimates that its total revenues for the second quarter of 2017 will be approximately $75 million to $80 million, which would represent a decrease of approximately 49% to 53% from $158.3 million in the same quarter in 2016. This forecast reflects the Company's current and preliminary view, which is subject to change.

Management Changes

Leju announced that Min Chen has tendered her resignation from the position of the Company's Chief Financial Officer ("CFO"), effective June 13, 2017, to pursue other career opportunities. Meanwhile, the Company announced that it has appointed Li-Lan Cheng as acting CFO and Michelle Yuan as deputy CFO, effective the same date.

"Min has made important contributions to Leju since she joined the Company in 2014," said Xin Zhou, Leju's Executive Chairman. "We thank her for her leadership and dedication to the Company and wish her all the best in her future endeavors. Both Li-Lan and Michelle have been with Leju's principal shareholder E-House for many years and are very familiar with Leju's business. I am confident that they will immediately contribute to Leju's management and help lead the Company in its next phase of development."

Ms. Chen said, "I have been privileged to have worked with Leju's strong management and operating teams for the past few years and to have witnessed the Company's growth into the leading integrated marketing platform in the real estate services industry. I'm confident that the Company will be able to further leverage its innovative and execution strengths to generate long-term growth in the coming years."

Conference Call Information

Leju's management will host an earnings conference call on June 14, 2017 at 7 a.m. U.S. Eastern Time (7 p.m. Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows:

U.S./International:

+1-855-298-3404

Hong Kong:       

+852-5808-3202

Mainland China:

+400-120-0539

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 June 21, 2017:

U.S./International:

+1-866-846-0868

Hong Kong:       

+ 800-966-697

Mainland China:

+ 400-184-2240

Passcode:    

3260000

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 online-to-offline, or O2O, real estate services provider 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 370 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 (China) Holdings Limited ("E-House") and prior reliance on E-House for various corporate services; its reliance on SINA, Baidu 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 principal shareholding interest in 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 and amortization of intangible assets resulting from business acquisitions. 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. Annie Huang
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 CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)





December 31,


March 31,




2016



2017


ASSETS










Current assets










Cash and cash equivalents




274,338




219,830


Accounts receivable, net




71,390




69,989


Marketable securities




2,181




2,087


Prepaid expenses and other current assets




12,756




14,553


Customer deposits




39,702




34,517


Amounts due from related parties




6,019




8,000


Total current assets




406,386




348,976


Property and equipment, net




7,923




7,430


Intangible assets, net




78,374




75,320


Investment in affiliates




409




336


Goodwill




39,018




39,081


Deferred tax assets




41,698




41,926


Other non-current assets




2,059




2,062


Total assets




575,867




515,131












LIABILITIES AND EQUITY










Current liabilities










Accounts payable




1,574




1,301


Accrued payroll and welfare expenses




41,728




33,415


Income tax payable




66,148




43,316


Other tax payable




16,678




13,398


Amounts due to related parties




1,581




4,506


Advance from customers and deferred revenue




5,058




5,292


Accrued marketing and advertising expenses




9,355




5,384


Other current liabilities




8,516




9,167


Total current liabilities




150,638




115,779


Deferred tax liabilities




18,869




18,972


Total liabilities




169,507




134,751


Equity










Ordinary shares ($0.001 par value): 1,000,000,000 shares 
   authorized, 135,503,958 and 135,763,962 shares issued and
   outstanding, as of December 31, 2016 and March 31, 2017,
   respectively




136




136


Additional paid-in capital




785,019




786,433


Accumulated deficit




(354,365)




(382,538)


Accumulated other comprehensive income




(22,321)




(21,072)


Total Leju equity




408,469




382,959


Non-controlling interests




(2,109)




(2,579)


Total equity




406,360




380,380


TOTAL LIABILITIES AND EQUITY




575,867




515,131













 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except share data and per share data)




Three months ended


March 31,


2016


2017

Revenues






E-commerce


86,088



38,091

Online advertising


21,781



25,793

Listing


5,119



4,424

Total revenues


112,988



68,308

Cost of revenues


(13,597)



(14,130)

Selling, general and administrative expenses


(113,312)



(100,521)

Other operating income


102



71

Loss from operations


(13,819)



(46,272)

Interest income


222



283

Other income (loss), net


(15)



128

Investment loss


(193)



-

Loss before taxes and equity in affiliates


(13,805)



(45,861)

Income tax benefit


2,804



17,293

Loss before equity in affiliates


(11,001)



(28,568)

Loss from equity in affiliates


(60)



(76)

Net Loss


(11,061)



(28,644)

Less: net loss attributable to non-controlling interests


(97)



(471)

Loss attributable to Leju shareholders


(10,964)



(28,173)







Loss per share:






Basic


(0.08)



(0.21)

Diluted


(0.08)



(0.21)

Shares used in computation:






Basic


134,976,346



135,541,514

Diluted


134,976,346



135,541,514







Note 1:  The conversion of Renminbi ("RMB") amounts into USD amounts is based on the rate of USD1 =
             RMB6.8993 on March 31, 2017 and USD1 = RMB6.8925 for the three months ended March 31,
             2017

 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)








Three months ended




March 31,




2016


2017











Net loss




(11,061)




(28,644)


Other comprehensive income, net of tax of nil










Foreign currency translation adjustment




790




1,243












Comprehensive loss




(10,271)




(27,401)












Less: Comprehensive loss attributable to non-controlling interest




(98)




(478)












Comprehensive loss attributable to Leju shareholders




(10,173)




(26,923)












 

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


March 31,


2016


2017







GAAP loss from operations


(13,819)



(46,272)

Share-based compensation expense


3,363



1,422

Amortization of intangible assets resulting from business
    acquisitions


3,084



3,031

Non-GAAP loss from operations


(7,372)



(41,819)







GAAP net loss


(11,061)



(28,644)

Share-based compensation expense (net of tax)


3,363



1,422

Amortization of intangible assets resulting from
   
business acquisitions (net of tax)


2,313



2,570

Non-GAAP net loss


(5,385)



(24,652)







Net loss attributable to Leju shareholders


(10,964)



(28,173)

Share-based compensation expense (net of tax and
    non-controlling interests)


3,355



1,414

Amortization of intangible assets resulting from business
    acquisitions (net of tax and non-controlling interests)


2,313



2,570

Non-GAAP net loss attributable to Leju shareholders


(5,296)



(24,189)







GAAP net loss per ADS -- basic


(0.08)



(0.21)







GAAP net loss per ADS -- diluted


(0.08)



(0.21)







Non-GAAP net loss per ADS -- basic


(0.04)



(0.18)







Non-GAAP net loss per ADS -- diluted


(0.04)



(0.18)







Shares used in calculating basic GAAP / non-GAAP net loss
    attributable to Leju shareholders per ADS


134,976,346



135,541,514

Shares used in calculating diluted GAAP / non-GAAP net loss
    attributable to Leju shareholders per ADS


134,976,346



135,541,514







 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA






Three months ended



March 31,



2016


2017

Operating data for e-commerce services









Number of discount coupons issued to prospective purchasers
    (number of transactions)



59,302




43,449


Number of discount coupons redeemed (number of transactions)



34,243




18,987


 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/leju-reports-first-quarter-2017-results-300473743.html

Source: Leju Holdings Limited

Related stocks: NYSE:LEJU

Featured Video

Banking/Financial Service Recent Releases

Commercial Real Estate Recent Releases

Computer/Electronics Recent Releases

Electronic Commerce Recent Releases

Overseas Real Estate (non-US) Recent Releases

Real Estate Recent Releases

Residential Real Estate Recent Releases

Web Site Recent Releases

Conference call announcements Recent Releases

Earnings Recent Releases

Earnings projections or forecasts Recent Releases

Advanced Search
Search
  
  1. Products & Services
  2. News Releases
  3. Knowledge Center
  4. For Journalists & Media
  5. Multimedia Theater
  6. Contact Us