BEIJING, August 5, 2015 /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 second quarter ended June 30, 2015.
Second Quarter 2015 Financial Highlights[1]
Second Quarter 2015 Operating Highlights
James Qin, Chief Executive Officer of Autohome, stated, "We are pleased to have achieved another solid set of quarterly results, which again exceeded our original expectations. This is thanks to our team's dedication to delivering continued success. With respect to our mobile traffic, during the quarter the number of average daily unique visitors to Autohome's mobile platform reached 9.8 million, representing a year-over-year increase of 88.5% compared to June 2014. Also, growth of traffic on mobile applications continued to outgrow that on mobile websites and this result shows that our strategic investments in mobile application development and promotion is bearing fruit. Further, we took several new concrete steps to build out our e-commerce capabilities which are at the core of our transaction-centric model."
"As we move into the second half of the year, we will focus on leveraging our success to date by making investments to achieve the multiple-year growth opportunities ahead of us. We will invest further to build out our mobile capabilities and we will also speed up our headcount expansion in our lead generation business. Most importantly, we will focus on further building out our transaction capabilities related to both new cars and used cars. We expect these investments will accelerate our effort to become a transaction-centric company. Also, while these initiatives will come with cost in the near-term, we believe they will contribute to our long-term success and development going forward. We remain fully committed to establishing a multi-faceted transaction platform and to continuing to provide superior services and products for our customers, which in turn will solidify our dominant leading position in China's automobile consumer market."
Nicholas Chong, Chief Financial Officer, commented, "Our strong performance in the second quarter was the successful results of the continued strengths in our product offerings coupled with operational efficiency. With such vigorous ongoing growth of our business and a consistently healthy cash position, we are very well positioned to further invest in the business in order to sustain the long-term growth in revenues and profitability. We fully believe that this will enable us to continue creating value for our shareholders well into the future."
[1] The reporting currency of the Company is Renminbi ("RMB"). For the convenience of the reader, 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$1.00 to RMB6.2000 on June 30, 2015 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Detailed Overview of Financial Results for Second Quarter 2015
Key Financial Results
(In RMB Millions except for per share data) |
2Q2014 |
2Q2015 |
% Change |
Net Revenues |
506.8 |
861.0 |
69.9% |
Operating Profit |
253.3 |
378.0 |
49.2% |
Net Income |
206.3 |
304.9 |
47.8% |
Adjusted Net Income[2] |
219.6 |
324.8 |
47.9% |
Diluted Earnings Per Share[3] |
1.83 |
2.63 |
43.7% |
Net Cash Provided by Operating Activities |
163.0 |
194.8 |
19.5% |
[2] Adjusted net income is defined as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. For more information on this and other non-GAAP financial measures, please see the section captioned "Use of Non-GAAP Financial Measures" and the tables captioned "Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this release. |
[3] Each ordinary share equals one ADS. |
Unaudited Second Quarter 2015 Financial Results
Net Revenues
Net revenues for the second quarter of 2015 increased 69.9% to RMB861.0 million ($138.9 million) from RMB506.8 million in the corresponding period in 2014. The growth was due to the increases in both the Company's advertising services revenues and dealer subscription services revenues.
Cost of Revenues
Cost of revenues for the second quarter of 2015 increased 46.9% to RMB137.3 million ($22.1 million) from RMB93.5 million in the corresponding period in 2014, primarily due to increases in value-added taxes and surcharges, content-related cost and depreciation expenses. The cost of revenues included share-based compensation expense of RMB0.7 million ($0.1 million) and RMB2.3 million for the second quarter of 2015 and corresponding period in 2014, respectively.
Operating Expenses
Operating expenses for the second quarter of 2015 increased 116.1% to RMB345.7 million ($55.8 million) from RMB160.0 million in the corresponding period in 2014. This growth was due to increases in sales and marketing expenses, product development expenses and general and administrative expenses as the Company has been reinvesting for future growth opportunities. As a percentage of net revenues, operating expenses for the second quarter of 2015 increased to 40.1% from 31.6% in the corresponding period in 2014.
Operating Profit
Operating profit for the second quarter of 2015 increased 49.2% to RMB378.0 million ($61.0 million) from RMB253.3 million in the corresponding period in 2014.
Net Income and EPS
Net income for the second quarter of 2015 increased 47.8% to RMB304.9 million ($49.2 million) from RMB206.3 million in the corresponding period in 2014. Basic and diluted earnings per share and per ADS ("EPS") for the second quarter of 2015 were RMB2.72 ($0.44) and RMB2.63 ($0.42), respectively, compared to basic and diluted EPS in the corresponding period in 2014 of RMB1.96 and RMB1.83, respectively.
Adjusted Net Income and Non-GAAP EPS
Adjusted net income, defined as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, for the second quarter of 2015 increased 47.9% to RMB324.8 million ($52.4 million) from RMB219.6 million in the corresponding period in 2014. Non-GAAP basic and diluted EPS for the second quarter of 2015 were RMB2.89 ($0.47) and RMB2.80 ($0.45), respectively, compared to Non-GAAP basic and diluted EPS in the corresponding period in 2014 of RMB2.08 and RMB1.95, respectively.
Balance Sheet and Cash Flow
As of June 30, 2015, the Company had cash and cash equivalents and term deposits of RMB3,214.5 million ($518.5 million). Net cash provided by operating activities in the second quarter of 2015 was RMB194.8 million ($31.4 million), compared to RMB163.0 million in the corresponding period in 2014.
Recent Developments
Business Outlook
Autohome currently expects to generate net revenues in the range of RMB850 million ($137.1 million) to RMB884 million ($142.6 million) in the third quarter of fiscal year 2015, representing a 55.9% to 62.2% year-over-year increase.
This forecast reflects the Company's current and preliminary view on the market and operating conditions, which are subject to change.
Conference Call Information
The Company will host an earnings conference call at 8:00 AM on Wednesday, August 5, 2015, U.S. Eastern Time (8:00 PM on Wednesday, August 5, 2015, Beijing Time).
Dial-in details for the earnings conference call are as follows:
United States: |
+1-855-298-3404 |
Hong Kong: |
+852-5808-3202 |
China Domestic: |
400-120-0539 |
United Kingdom: |
0800-015-9725 |
International: |
+1-631-514-2526 |
Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 6263878.
A replay of the conference call may be accessed by phone at the following numbers until August 12, 2015:
United States: |
+1-866-846-0868 |
International: |
+61-2-9641-7900 |
Passcode: |
6263878 |
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 website 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, Non-GAAP basic and diluted EPS and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income as net income 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 divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted EBITDA as net income before income tax expense, depreciation expenses of property and equipment and amortization expenses of intangible assets and interest expense, excluding 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:
Edith Kwan
Investor Relations
Autohome Inc.
Tel: +86-10-5987-1535
Email: ir@autohome.com.cn
Cara O'Brien
FTI Consulting, Inc.
Tel: +852-3768-4537
Email: cara.obrien@fticonsulting.com
AUTOHOME INC. |
|||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||
(Amount in thousands, except per share data) |
|||||
For three months ended June 30, |
|||||
2014 |
2015 |
||||
RMB |
RMB |
US$ |
|||
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||
Net revenues: |
|||||
Advertising services |
366,213 |
597,324 |
96,343 |
||
Dealer subscription services |
140,569 |
263,691 |
42,531 |
||
Total net revenues |
506,782 |
861,015 |
138,874 |
||
Cost of revenues |
(93,484) |
(137,320) |
(22,148) |
||
Gross profit |
413,298 |
723,695 |
116,726 |
||
Operating expenses: |
|||||
Sales and marketing expenses |
(94,984) |
(244,251) |
(39,395) |
||
General and administrative expenses |
(29,752) |
(40,552) |
(6,541) |
||
Product development expenses |
(35,252) |
(60,855) |
(9,815) |
||
Operating profit |
253,310 |
378,037 |
60,975 |
||
Interest income |
8,784 |
16,604 |
2,678 |
||
Other (expense)/ income, net |
(31) |
3,924 |
633 |
||
Income before income taxes |
262,063 |
398,565 |
64,286 |
||
Income tax expense |
(55,761) |
(93,635) |
(15,102) |
||
Net income |
206,302 |
304,930 |
49,184 |
||
Earnings per share for ordinary share |
|||||
Basic |
1.96 |
2.72 |
0.44 |
||
Diluted |
1.83 |
2.63 |
0.42 |
||
Shares used in earnings per share computation: |
|||||
Class A ordinary shares |
|||||
Basic |
36,568,173 |
50,482,577 |
50,482,577 |
||
Diluted |
112,441,662 |
115,901,133 |
115,901,133 |
||
Class B ordinary shares |
|||||
Basic |
68,788,940 |
61,824,328 |
61,824,328 |
||
Diluted |
68,788,940 |
61,824,328 |
61,824,328 |
||
Other comprehensive income/(loss), net of tax of nil |
|||||
Foreign currency translation adjustments |
137 |
(4,620) |
(745) |
||
Comprehensive income |
206,439 |
300,310 |
48,439 |
||
AUTOHOME INC. |
|||||||
RECONCILIATION OF NON-GAAP AND GAAP RESULTS |
|||||||
(Amount in thousands, except per share data) |
|||||||
For three months ended June 30, |
|||||||
2014 |
2015 |
||||||
RMB |
RMB |
US$ |
|||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||
Net income |
206,302 |
304,930 |
49,184 |
||||
Plus: income tax expense |
55,761 |
93,635 |
15,102 |
||||
Plus: depreciation of property and equipment |
8,338 |
12,064 |
1,946 |
||||
Plus: amortization of intangible assets |
1,515 |
1,475 |
238 |
||||
EBITDA |
271,916 |
412,104 |
66,470 |
||||
Plus: share-based compensation |
12,129 |
18,773 |
3,028 |
||||
Adjusted EBITDA |
284,045 |
430,877 |
69,498 |
||||
Net income |
206,302 |
304,930 |
49,184 |
||||
Plus: amortization of acquired intangible assets of Cheerbright, China Topside and Norstar |
1,139 |
1,139 |
184 |
||||
Plus: share-based compensation expenses |
12,129 |
18,773 |
3,028 |
||||
Adjusted Net Income |
219,570 |
324,842 |
52,396 |
||||
Non-GAAP Earnings per share for ordinary share |
|||||||
Basic |
2.08 |
2.89 |
0.47 |
||||
Diluted |
1.95 |
2.80 |
0.45 |
||||
Shares used in earnings per share computation: |
|||||||
Class A ordinary shares |
|||||||
Basic |
36,568,173 |
50,482,577 |
50,482,577 |
||||
Diluted
|
112,441,662 |
115,901,133 |
115,901,133 |
||||
Class B ordinary shares |
|||||||
Basic |
68,788,940 |
61,824,328 |
61,824,328 |
||||
Diluted |
68,788,940 |
61,824,328 |
61,824,328 |
||||
AUTOHOME INC. |
|||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||||||
(Amount in thousands, except as noted) |
|||||||||||||||
As of December 31, |
As of June 30 |
||||||||||||||
2014 |
2015 |
||||||||||||||
RMB |
RMB |
US$ |
|||||||||||||
(Audited) |
(Unaudited) |
(Unaudited) |
|||||||||||||
ASSETS |
|||||||||||||||
Current assets: |
|||||||||||||||
Cash and cash equivalents |
1,054,416 |
1,460,528 |
235,569 |
||||||||||||
Term deposits |
1,717,775 |
1,753,973 |
282,899 |
||||||||||||
Accounts receivable |
736,695 |
807,072 |
130,173 |
||||||||||||
Prepaid expenses and other current |
73,911 |
110,896 |
17,886 |
||||||||||||
Deferred tax assets, current |
57,969 |
27,765 |
4,478 |
||||||||||||
Total current assets |
3,640,766 |
4,160,234 |
671,005 |
||||||||||||
Non-current assets: |
|||||||||||||||
Property and equipment, net |
74,882 |
94,741 |
15,281 |
||||||||||||
Goodwill and intangible assets, net |
1,543,678 |
1,540,729 |
248,504 |
||||||||||||
Long-term investment |
- |
19,600 |
3,161 |
||||||||||||
Other non-current assets |
19,189 |
21,934 |
3,538 |
||||||||||||
Total non-current assets |
1,637,749 |
1,677,004 |
270,484 |
||||||||||||
Total assets |
5,278,515 |
5,837,238 |
941,489 |
||||||||||||
LIABILITIES AND SHAREHOLDERS' |
|||||||||||||||
Current liabilities: |
|||||||||||||||
Accrued expenses and other payables |
524,567 |
498,432 |
80,391 |
||||||||||||
Advance from customers |
42,530 |
23,390 |
3,773 |
||||||||||||
Deferred revenue |
438,797 |
463,400 |
74,742 |
||||||||||||
Income tax payable |
74,763 |
102,207 |
16,485 |
||||||||||||
Total current liabilities |
1,080,657 |
1,087,429 |
175,391 |
||||||||||||
Non-current liabilities: |
|||||||||||||||
Other liabilities |
24,058 |
24,058 |
3,880 |
||||||||||||
Deferred tax liabilities |
508,377 |
513,571 |
82,834 |
||||||||||||
Total non-current liabilities |
532,435 |
537,629 |
86,714 |
||||||||||||
Total liabilities |
1,613,092 |
1,625,058 |
262,105 |
||||||||||||
Shareholders' equity: |
|||||||||||||||
Total shareholders' equity |
3,665,423 |
4,212,180 |
679,384 |
||||||||||||
Total liabilities and shareholders' equity |
5,278,515 |
5,837,238 |
941,489 |
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