omniture

Autohome Inc. Announces Unaudited First Quarter Ended March 31, 2019 Financial Results

First Quarter Net Revenues Were RMB1.61 Billion, Exceeding the High End of the Company's Guidance, Representing an Increase of 25.1% Year-over-Year
Net Income Attributable to Autohome Inc. Increased by 33.9% Year-over-Year to RMB646.3 Million
2019-05-08 18:15 6623

BEIJING, May 8, 2019 /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 first quarter ended March 31, 2019.

First Quarter 2019 Financial Highlights[1]

  • Net Revenues in the first quarter of 2019 were RMB1,611.9 million ($240.2 million), exceeding the high end of the Company's original guidance of RMB1,585.0 million ($236.2 million).
  • Net Income attributable to Autohome Inc. in the first quarter of 2019 increased by 33.9% year-over-year to RMB646.3 million ($96.3 million).
  • Adjusted net income attributable to Autohome Inc. (Non-GAAP) in the first quarter of 2019 increased by 34.7% year-over-year to RMB700.6 million ($104.4 million).

 

[1] The reporting currency of the Company is Renminbi ("RMB"). For the convenience of readers, 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$1.00 to RMB6.7112 on March 29, 2019 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

First Quarter 2019 Operational Highlights

  • Mobile Traffic Leadership Continues: In March 2019, the total number of average daily unique visitors who accessed the Company's mobile websites and primary application reached 30.2 million, representing an increase of 14% compared to March 2018, further solidifying the Company's dominant position in the auto vertical sector in China.
  • Newly Launched Channels and Search Product Enhanced Traffic Expansion: The Company continued to expand its content portfolio by adding new categories that cater to users' needs. Energy Vehicle and Mini Short Video channels achieved new traffic records every month. Carso, the Company's self-developed intelligent search engine, providing aggregated car-related information, also experienced rapid traffic ramp up.

Mr. Min Lu, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, "We achieved a solid set of operating and financial results for the first quarter of 2019, despite the weak macro-economic conditions. Our media, leads generation and new initiatives all contributed to the strong revenue growth of 25% year-over-year. We are also excited to see the continued ramp up of our traffic with mobile DAU increased by 14% year-over-year, further solidifying our mobile leadership.  All of these reflect the success of Autohome as a leading auto ecosystem supported by artificial intelligence, big data and cloud technologies, providing diverse and customized contents for users, and generating unique value for our automaker/dealer partners.  We will continue enhancing our core competitiveness and business fundamentals through investments in these areas."

Mr. Jun Zou, Chief Financial Officer of Autohome, added, "We started off the year 2019 by delivering top-line growth momentum which surpassed our original guidance. We also generated consistent profitability with adjusted net income attributable to Autohome increased by 35% year-over-year through effective financial control policies, increasing operational leverage and prudent cost management.  Our results validate the power of our overall offerings and execution efficiency. Looking towards the rest of 2019, we remain committed to driving growth and profitability while investing in future growth potentials."

Overview of Key Financial Results for the First Quarter 2019

Key Financial Results

(In RMB Millions except for per share data)

1Q2018

1Q2019

% Change

Net Revenues

1,288.1

1,611.9

25.1%

Net Income attributable to Autohome Inc.

482.8

646.3

33.9%

Adjusted Net Income attributable to Autohome Inc.[2] (Non-GAAP)

520.0

700.6

34.7%

Diluted Earnings Per Share[3]

4.05

5.41

33.6%

 

[2] Adjusted net income attributable to Autohome Inc. is defined as net income attributable to Autohome Inc. 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 First Quarter 2019 Financial Results

Net Revenues

Net revenues in the first quarter of 2019 were RMB1,611.9 million ($240.2 million) compared to RMB1,288.1 million in the corresponding period of 2018.

  • Media services revenues increased by 10.1% to RMB643.2 million ($95.8 million) from RMB584.2 million in the corresponding period of 2018. The increase was mainly attributable to an increase in average revenue per automaker advertiser as automakers continued to allocate a greater portion of their advertising budgets to Autohome, which provides an increasingly diversified and optimized portfolio of products.
  • Leads generation services revenues increased by 20.2% to RMB734.1 million ($109.4 million) from RMB610.8 million in the corresponding period of 2018. The increase was primarily attributable to the increase in average revenue per paying dealer.
  • Online marketplace and others revenues increased by 152.1% to RMB234.6 million ($35.0 million) from RMB93.1 million in the corresponding period of 2018. This increase was primarily attributable to the increased contribution from the auto-financing business and data products.

Cost of Revenues

Cost of revenues were RMB184.5 million ($27.5 million) from RMB146.1 million in the corresponding period of 2018. In addition, cost of revenues included share-based compensation expenses of RMB3.9 million ($0.6 million) during the first quarter of 2019, compared to RMB1.1 million for the corresponding period of 2018.

Operating Expenses

Operating expenses were  RMB846.1 million ($126.1 million) in the first quarter of 2019, compared to RMB689.7 million in the corresponding period of 2018. The increase was mainly due to the increases in sales and marketing expenses and product development expenses as the Company continues to invest in future growth opportunities.

  • Sales and marketing expenses were RMB509.7 million ($76.0 million) in the first quarter of 2019, compared to RMB398.0 million in the corresponding period of 2018. The increase was primarily due to an increase in salaries and benefits of sales and marketing staff and offline execution expenses. Sales and marketing expenses for the first quarter of 2019 included share-based compensation expenses of RMB13.2 million ($2.0 million), compared to RMB11.5 million in the corresponding period of 2018.
  • General and administrative expenses were RMB67.8 million ($10.1 million) in the first quarter of 2019, compared to RMB62.9 million in the corresponding period of 2018. General and administrative expenses for the first quarter of 2019 included share-based compensation expenses of RMB14.9 million ($2.2 million), compared to RMB12.2 million in the corresponding period of 2018.
  • Product development expenses were RMB268.6 million ($40.0 million) in the first quarter of 2019 compared to RMB228.8 million in the corresponding period of 2018. The increase was primarily due to an increase in salaries and benefits to product development staff. Product development expenses for the first quarter of 2019 included share-based compensation expenses of RMB21.2 million ($3.2 million), compared to RMB11.3 million in the corresponding period of 2018.

Operating Profit

Operating profit increased by 25.7% to RMB657.5 million ($98.0 million) from RMB523.2 million in the corresponding period of 2018.

Income tax expense

Income tax expense increased by 15.0% to RMB119.5 million ($17.8 million) in the first quarter of 2019, from RMB103.9 million in the corresponding period of 2018, primarily attributable to an increase in taxable income.

Net Income attributable to Autohome Inc. and EPS

Net income attributable to Autohome Inc. increased by 33.9% to RMB646.3 million ($96.3 million) from RMB482.8 million in the corresponding period of 2018. Basic and diluted earnings per share/per ADS or "EPS" were RMB5.47 ($0.82) and RMB5.41($0.81), respectively, compared to basic and diluted EPS of RMB4.11 and RMB4.05, respectively, in the corresponding period of 2018.

Adjusted Net Income attributable to Autohome Inc. (Non-GAAP) and Non-GAAP EPS

Adjusted net income attributable to Autohome Inc. (Non-GAAP), defined as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, increased by 34.7% to RMB700.6 million ($104.4 million) from RMB520.0 million in the corresponding period of 2018. Non-GAAP basic and diluted EPS were RMB5.93 ($0.88) and RMB5.87 ($0.87), respectively, compared to non-GAAP basic and diluted EPS of RMB4.43 and RMB4.36, respectively, in the corresponding period of 2018.

Balance Sheet and Cash Flow

As of March 31, 2019, the Company had cash and cash equivalents and short-term investments of RMB10.48 billion ($1,561.0 million). Net cash provided by operating activities in the first quarter of 2019 was RMB418.0 million ($62.3 million).

Employees

The Company had 4,295 employees as of March 31, 2019.

Business Outlook

Autohome currently expects to generate net revenues in the range of RMB2,275.0 million ($339.0 million) to RMB2,305.0 million ($343.5 million) in the second quarter of fiscal year 2019, representing a 21.7% to 23.3% year-over-year increase. This forecast reflects the Company's current and preliminary view on the market and its operating conditions, which are subject to change.

Conference Call Information

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, May 8, 2019 (8:00 PM Beijing Time on the same day).

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

United States: 

+1-855-824-5644

Hong Kong:  

+852-3027-6500

China Domestic:

8009-880-563

United Kingdom:

0800-026-1542

International: 

+1 646-722-4977

Passcode:  

83021438#

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until May 14, 2019:

United States: 

+1-646-982-0473

International: 

+61-2-8325-2405

Passcode:

319317203#

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 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 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 attributable to Autohome Inc., Non-GAAP basic and diluted EPS and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome Inc. as net income attributable to Autohome Inc. 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 attributable to Autohome Inc. divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted EBITDA as net income attributable to Autohome Inc. before income tax expense/(benefit), depreciation expenses of property and equipment and 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 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:

In China:

Autohome Inc.
Investor Relations
Anita Chen
Tel: +86-10-5985-7483
Email: ir@autohome.com.cn

The Piacente Group, Inc.
Xi Zhang
Tel: +86-10-5730-6200
E-mail: autohome@tpg-ir.com

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: autohome@tpg-ir.com

 

AUTOHOME INC.

CONSOLIDATED STATEMENTS OF OPERATIONS DATA

(Amount in thousands, except per share data)








 For three months ended March 31,


2018


2019


 RMB 


 RMB 


 US$ 


 (Unaudited)


 (Unaudited)


  (Unaudited)







Net revenues: 






Media services

584,150


643,235


95,845

Leads generation services 

610,830


734,087


109,382

Online marketplace and others

93,074


234,606


34,957

 Total net revenues 

1,288,054


1,611,928


240,184

Cost of revenues 

(146,141)


(184,454)


(27,485)

Gross profit 

1,141,913


1,427,474


212,699







Operating expenses: 






Sales and marketing expenses 

(398,032)


(509,724)


(75,951)

General and administrative expenses 

(62,880)


(67,758)


(10,096)

Product development expenses 

(228,790)


(268,573)


(40,019)

Total operating expenses

(689,702)


(846,055)


(126,066)

Other income, net

70,996


76,038


11,330

Operating profit 

523,207


657,457


97,963







Interest income

64,042


114,221


17,019

Loss from equity method investments

(1,890)


(1,582)


(236)

Fair value change of other non-current
assets

-


(4,026)


(600)

Income before income taxes 

585,359


766,070


114,146







Income tax expense

(103,905)


(119,525)


(17,810)

Net income  

481,454


646,545


96,336

Net loss/(income) attributable to
noncontrolling interests

1,329


(236)


(35)

Net income attributable to Autohome
Inc.

482,783


646,309


96,301

Earnings per share for ordinary shares  






 Basic  

4.11


5.47


0.82

 Diluted  

4.05


5.41


0.81







Weighted average shares used to
compute earnings per share attributable
to common stockholders:












 Basic  

117,323,795


118,229,887


118,229,887

 Diluted

119,164,166


119,385,615


119,385,615







 

 


 

AUTOHOME INC.

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands, except per share data)








 For three months ended March 31,


2018


2019


 RMB 


 RMB 


 US$ 


 (Unaudited)


 (Unaudited)


  (Unaudited)







Net income attributable to
Autohome Inc.

482,783


646,309


96,301

Plus: income tax expense

103,905


119,525


17,810

Plus: depreciation of property and
equipment

21,263


25,326


3,774

Plus: amortization of intangible assets

2,904


2,917


435

EBITDA

610,855


794,077


118,320

Plus: share-based compensation
expenses

36,035


53,187


7,925

Adjusted EBITDA

646,890


847,264


126,245







Net income attributable to
Autohome Inc.

482,783


646,309


96,301

Plus: amortization of acquired
intangible assets of Cheerbright,
China Topside and Norstar

1,138


1,139


170

Plus: share-based compensation
expenses

36,035


53,187


7,925

Adjusted Net Income attributable
to Autohome Inc.

519,956


700,635


104,396

 

 

Non-GAAP Earnings per share for
ordinary shares












Basic

4.43


5.93


0.88

Diluted

4.36


5.87


0.87







Weighted average shares used to
compute earnings per share
attributable to common
stockholders:












Basic  

117,323,795


118,229,887


118,229,887

Diluted  

119,164,166


119,385,615


119,385,615

 


 

AUTOHOME INC.

CONDENSED CONSOLIDATED BALANCE SHEET[4]

(Amount in thousands, except as noted)








As of December 31,


As of March 31,


2018


2019


RMB


RMB


US$


(Audited)


(Unaudited)


(Unaudited)

ASSETS






Current assets






Cash and cash equivalents

211,970


868,769


129,451

Short-term investments

9,849,488


9,607,613


1,431,579

Accounts and notes receivable, net

2,795,835


2,649,263


394,753

Amounts due from related parties,
current

34,047


44,664


6,655

Prepaid expenses and other current
assets

249,977


483,467


72,039

Total current assets

13,141,317


13,653,776


2,034,477

Non-current assets






Restricted cash, non-current

5,000


5,000


745

Property and equipment, net

170,198


148,149


22,075

Goodwill and intangible assets, net

1,543,682


1,540,765


229,581

Long-term investments

70,979


69,397


10,340

Deferred tax assets

90,179


99,577


14,837

Other non-current assets

734,846


889,983


132,612

Total non-current assets

2,614,884


2,752,871


410,190

Total assets

15,756,201


16,406,647


2,444,667







LIABILITIES AND EQUITY






Current liabilities






Accrued expenses and other
payables

2,439,948


2,284,155


340,350

Advance from customers

75,017


98,027


14,606

Deferred revenue

1,510,726


1,502,220


223,838

Income tax payable

119,210


157,973


23,539

Amounts due to related parties

19,868


26,867


4,003

Total current liabilities

4,164,769


4,069,242


606,336

Non-current liabilities






Other liabilities

24,068


60,568


9,025

Deferred tax liabilities

455,921


447,079


66,617

Total non-current liabilities

479,989


507,647


75,642

Total liabilities

4,644,758


4,576,889


681,978







Equity






Total Autohome Inc. Shareholders'
equity

11,135,278


11,853,357


1,766,205

Noncontrolling interests

(23,835)


(23,599)


(3,516)

Total equity

11,111,443


11,829,758


1,762,689

Total liabilities and equity

15,756,201


16,406,647


2,444,667

 

[4] In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02, Leases ("ASU 2016-02"). Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. The Company has finalized its analysis and the most significant impact is the recognition of right-of-use assets and lease liabilities for operating lease related to office buildings and internet data center ("IDC") facilities. The Company adopted this guidance effective January 1, 2019 using the modified retrospective method, with the comparative information not being restated and continues to be reported under the accounting standards in effect for those periods. As of March 31, 2019, operating lease right-of-use assets (included in other non-current assets) of RMB154.7 million (US$23.1 million), operating lease liabilities, current (included in accrued expenses and other payables and amounts due to related parties) of RMB116.7 million (US$17.4 million) and operating lease liabilities, non-current (included in other liabilities) of RMB36.5 million (US$5.4 million) was recognized on the consolidated balance sheet.

 

Cision View original content:http://www.prnewswire.com/news-releases/autohome-inc-announces-unaudited-first-quarter-ended-march-31-2019-financial-results-300846147.html

Source: Autohome Inc.
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