Autohome Inc. Announces Unaudited 2023 Second Quarter and Interim Financial Results

BEIJING, July 27, 2023 /PRNewswire/ -- Autohome Inc. (NYSE: ATHM; HKEX: 2518) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced its unaudited financial results for the three months and six months ended June 30, 2023.

Second Quarter 2023 Highlights^[1]

• Net Revenues in the second quarter of 2023 were RMB1,833.0 million (US$252.8 million), compared to RMB1,733.0 million in the corresponding period of 2022.
• Net Income attributable to Autohome in the second quarter of 2023 was RMB504.7 million (US$69.6 million), compared to RMB435.0 million in the corresponding period of 2022, and net income attributable to ordinary shareholders in the second quarter of 2023 was RMB491.2 million (US$67.7 million), compared to RMB423.4 million in the corresponding period of 2022.
• Adjusted Net Income attributable to Autohome (Non-GAAP)^[2] in the second quarter of 2023 was RMB569.5 million (US$78.5 million), compared to RMB472.2 million in the corresponding period of 2022.
• Share Repurchase: As of July 21, 2023, the Company had repurchased 4,697,330 American depositary shares ("ADSs") for a total cost of approximately US$141.0 million.

Mr. Quan Long, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, "During the second quarter of 2023, we actively advanced our C-end strategy, making steady progress across content optimization and business diversification while expanding our traffic through multiple channels. In mid-June, we debuted China's first mobile exhibition truck featuring a large-scale holographic display, providing consumers in lower- tier cities with more comprehensive information on new energy vehicles ("NEVs") and enabling NEV brands to expand their reach into these markets, in line with the government's policy to support NEV consumption in rural areas. We also unveiled our first Autohome Energy Space franchise store in Haikou, Hainan Province, marking the beginning of this new retail franchise model's expansion nationwide. Moreover, we accelerated the application of AI technology in all business scenarios, enabling our partners to reduce costs and increase efficiency. We developed two decision-making assistant products based on a GPT model, providing both users and customers with more efficient services. Looking ahead, we are confident that with long-term accumulation of cutting-edge technology and growing brand advantages as well as our comprehensive innovation incubation system, Autohome is well positioned to seize the opportunities across the industry and achieve diversified business growth."

Mr. Craig Yan Zeng, Chief Financial Officer of Autohome, added, "Our financial and operational performance continued to recover steadily with a 6% year-over-year increase in total revenues in the second quarter of 2023, led by strong growth in our online marketplace and others business. Notably, revenues from both TTP Car, Inc. and data products delivered double-digit growth year-over-year, and revenue from NEV brands maintained its robust growth momentum. Meanwhile, in June 2023, our mobile DAUs grew by 31.7% year-over-year to reach 62.71 million, according to QuestMobile, demonstrating our sustained leadership in the automotive media vertical. We have also made significant progress in the development of new models and products, further reinforcing our market leadership in key areas. As we move forward, we will remain committed to the two major industry trends of NEVs and artificial intelligence, constantly innovating to bring superior products and services to users and customers, and ultimately delivering long-term value to all shareholders."

Unaudited Second Quarter 2023 Financial Results

Net Revenues

Net revenues in the second quarter of 2023 were RMB1,833.0 million (US$252.8 million), compared to RMB1,733.0 million in the corresponding period of 2022.

• Media services revenues were RMB532.0 million (US$73.4 million) in the second quarter of 2023, compared to RMB530.6 million in the corresponding period of 2022.
• Leads generation services revenues were RMB759.6 million (US$104.8 million) in the second quarter of 2023, compared to RMB752.8 million in the corresponding period of 2022.
• Online marketplace and others revenues were RMB541.4 million (US$74.7 million) in the second quarter of 2023, compared to RMB449.6 million in the corresponding period of 2022. The increase was primarily attributable to greater contributions from TTP Car, Inc. and data products.

Cost of Revenues

Cost of revenues was RMB330.2 million (US$45.5 million) in the second quarter of 2023, compared to RMB278.9 million in the corresponding period of 2022. The increase was primarily attributable to a rise in operational costs. Share-based compensation expense included in cost of revenues in the second quarter of 2023 was RMB1.8 million (US$0.2 million), compared to RMB1.3 million in the corresponding period of 2022.

Operating Expenses

Operating expenses were RMB1,228.1 million (US$169.4 million) in the second quarter of 2023, compared to RMB1,227.5 million in the corresponding period of 2022.

• Sales and marketing expenses were RMB824.1 million (US$113.6 million) in the second quarter of 2023, compared to RMB738.7 million in the corresponding period of 2022. The increase was primarily attributable to the escalation in marketing and promotional spending. Share-based compensation expense included in sales and marketing expenses in the second quarter of 2023 was RMB12.3 million (US$1.7 million), compared to RMB5.4 million in the corresponding period of 2022.
• General and administrative expenses were RMB91.0 million (US$12.5 million) in the second quarter of 2023, compared to RMB126.6 million in the corresponding period of 2022. The decrease was primarily attributable to the reduction of expected credit losses. Share-based compensation expense included in general and administrative expenses in the second quarter of 2023 was RMB8.9 million (US$1.2 million), compared to RMB10.1 million in the corresponding period of 2022.
• Product development expenses were RMB313.0 million (US$43.2 million) in the second quarter of 2023, compared to RMB362.2 million in the corresponding period of 2022. The decrease was primarily attributable to a decline in personnel-related expenses. Share-based compensation expense included in product development expenses in the second quarter of 2023 was RMB18.7 million (US$2.6 million), compared to RMB11.6 million in the corresponding period of 2022.

Operating Profit

Operating profit was RMB341.5 million (US$47.1 million) in the second quarter of 2023, compared to RMB301.3 million in the corresponding period of 2022. 

Income Tax Expense

There was an income tax expense of RMB35.8 million (US$4.9 million) in the second quarter of 2023, compared to RMB34.1 million in the corresponding period of 2022.

Net Income Attributable to Autohome

Net income attributable to Autohome was RMB504.7 million (US$69.6 million) in the second quarter of 2023, compared to RMB435.0 million in the corresponding period of 2022.

Net Income Attributable to Ordinary Shareholders and Earnings per Share/ADS

Net income attributable to ordinary shareholders was RMB491.2 million (US$67.7 million) in the second quarter of 2023, compared to RMB423.4 million in the corresponding period of 2022. Basic and diluted earnings per share ("EPS") were RMB1.00 (US$0.14) and RMB1.00 (US$0.14), respectively, in the second quarter of 2023, compared to basic and diluted EPS of RMB0.85 and RMB0.84, respectively, in the corresponding period of 2022. Basic and diluted earnings per ADS were RMB3.99 (US$0.55) and RMB3.98 (US$0.55), respectively, in the second quarter of 2023, compared to basic and diluted earnings per ADS of RMB3.38 and RMB3.38, respectively, in the corresponding period of 2022.

Adjusted Net Income Attributable to Autohome (Non-GAAP) and Non-GAAP EPS/ADS

Adjusted net income attributable to Autohome (Non-GAAP) was RMB569.5 million (US$78.5 million) in the second quarter of 2023, compared to RMB472.2 million in the corresponding period of 2022. Non-GAAP basic and diluted EPS were RMB1.16 (US$0.16) and RMB1.15 (US$0.16), respectively, in the second quarter of 2023, compared to non-GAAP basic and diluted EPS of RMB0.94 and RMB0.94, respectively, in the corresponding period of 2022. Non-GAAP basic and diluted earnings per ADS were RMB4.62 (US$0.64) and RMB4.61 (US$0.64), respectively, in the second quarter of 2023, compared to non-GAAP basic and diluted earnings per ADS of RMB3.77 and RMB3.77, respectively, in the corresponding period of 2022.

Balance Sheet and Cash Flow

As of June 30, 2023, the Company had cash and cash equivalents and short-term investments of RMB23.34 billion (US$3.22 billion). Net cash provided by operating activities in the second quarter of 2023 was RMB522.0 million (US$72.0 million).

Employees 

The Company had 5,500 employees as of June 30, 2023, including 2,177 employees from TTP Car, Inc.

Conference Call Information

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on Thursday, July 27, 2023 (8:00 PM Beijing Time on the same day).

Please register in advance of the conference call using the registration link provided below. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN, which will be used to join the conference call.

Registration Link: https://register.vevent.com/register/BI7e7200be351a4ab986e67e0b2faeb302 

Please use the conference access information to join the call ten minutes before the call is scheduled to begin.

Additionally, a live and archived webcast of the conference call will be available at https://ir.autohome.com.cn and a replay of the webcast will be available following the session.

About Autohome

Autohome Inc. (NYSE: ATHM; HKEX: 2518) is the leading online destination for automobile consumers in China. Its mission is to relentlessly reduce auto industry decision-making and transaction costs driven by advanced technology. Autohome provides occupationally generated content, professionally generated content, user-generated content, and AI-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. 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 https://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 announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), 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; relevant government policies and regulatory environment of China; 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 and announcements on the website of the Hong Kong Stock Exchange. 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, Non-GAAP basic and diluted EPS and earnings per ADS, Adjusted net margin and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome as net income attributable to Autohome excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisition, investment loss/(gain) relating to non-operating impact of a write-down of the initial investment in a financial product, and loss/(gain) pickup of equity method investments, and impairment of long-term investments, with all the reconciliation items adjusted for related income tax effects. We define non-GAAP basic and diluted EPS as Adjusted Net Income attributable to Autohome divided by the basic and diluted weighted average number of ordinary shares. We define non-GAAP basic and diluted earnings per ADS as Adjusted Net Income attributable to Autohome divided by the basic and diluted weighted average number of ADSs. We define Adjusted net margin as Adjusted Net Income attributable to Autohome divided by total net revenues. We define Adjusted EBITDA as net income attributable to Autohome before income tax expense, depreciation expenses of property and equipment, 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 non-cash charges or items that are non-operating in nature. The use of the above non-GAAP financial measures has certain limitations as they excluded certain items that have been and will continue to be incurred in the future, but such items 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 "Unaudited 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
Sterling Song
Investor Relations Director  
Tel: +86-10-5985-7483
E-mail: ir@autohome.com.cn

The Piacente Group, Inc.
Jenny Cai
Tel: +86-10-6508-0677
E-mail: autohome@tpg-ir.com