omniture

Autohome Inc. Announces Unaudited Fourth Quarter and Full Year 2019 Financial Results

2020-02-19 18:00 9710

BEIJING, Feb. 19, 2020 /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 fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019 Highlights[1]

  • Net Revenues in the fourth quarter of 2019 were RMB2,329.7 million ($334.6 million), an increase of 6.5% year-over-year.
  • Intelligent New Car Launch: Launched in mid-2019, the Intelligent New Car Launch is a data product for automakers that aims to improve the market awareness of newly launched car models by leveraging the Company's content and big data capabilities. By the end of December 2019, 13 automakers have signed up for this new service.

 Full Year 2019 Highlights[1]

  • Net revenues in full year 2019 were RMB8,420.8 million ($1,209.6 million), an increase of 16.4% year-over-year.
  • Annual Dividend: The board of directors has approved a dividend of US$0.77 per ordinary share (or per ADS) for fiscal year 2019, which is expected to be paid on April 22, 2020 to shareholders of record as of the close of business on April 15, 2020.

Mr. Min Lu, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, "We concluded 2019 with solid top- and bottom-line performances. On the content front, Autohome laid a firm foundation and continued to make progress in optimizing overall user experience through building a diverse and high-quality content portfolio. We achieved encouraging user matrix across each of our key channels. In the past year, our data business solidified its leading position through continuous technology upgrades and product innovations. With a broadened array of data products available for our partners, Autohome creates more value for the auto ecosystem. Together with our enhanced management team, we believe we are fueling up and well prepared for the opportunities ahead."

Mr. Jun Zou, Chief Financial Officer of Autohome, added, "Looking back at 2019, I'm pleased with the progress we have made throughout the year. Despite challenging operating conditions, we managed to deliver steady revenue growth with a decent profit level. Total revenues set a new record at RMB8.42 billion in the year 2019. Contribution from new initiatives increased to an impressive 18% of the total revenues. Looking into 2020, we will continue to invest in key initiatives in order to strengthen our long-term competitiveness while increasing operational efficiency and keeping a streamlined cost structure."

[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$1.00 to RMB6.9618 on December 31, 2019 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

Unaudited Fourth Quarter 2019 Financial Results

Net Revenues

Net revenues in the fourth quarter of 2019 were RMB2,329.7 million ($334.6 million), compared to RMB 2,187.8 million in the corresponding period of 2018.                                                 

  • Media services revenues were RMB1,057.8 million ($151.9 million), compared to RMB1,092.6 million in the corresponding period of 2018.
  • Leads generation services revenues were RMB823.9 million ($118.3 million), compared to RMB 780.9 million in the corresponding period of 2018.
  • Online marketplace and others revenues increased by 42.6% to RMB448.0 million ($64.4 million) from RMB314.3 million in the corresponding period of 2018. The increase was primarily attributable to the increased contribution from data products.

Cost of Revenues

Cost of revenues was RMB265.1 million ($38.1 million), compared to RMB250.1 million in the corresponding period of 2018. In addition, cost of revenues included share-based compensation expenses of RMB2.9 million ($0.4 million) during the fourth quarter of 2019, compared to RMB3.6 million in the corresponding period of 2018.

Operating Expenses

Operating expenses were RMB1,094.9 million ($157.3 million) in the fourth quarter of 2019, compared to RMB1,134.1 million in the corresponding period of 2018.

  • Sales and marketing expenses were RMB735.0 million ($105.6 million) in the fourth quarter of 2019, compared to RMB772.7 million in the corresponding period of 2018. Sales and marketing expenses for the fourth quarter of 2019 included share-based compensation expenses of RMB6.6 million ($0.9 million), compared to RMB18.2 million in the corresponding period of 2018.
  • General and administrative expenses were RMB59.7 million ($8.6 million) in the fourth quarter of 2019, compared to RMB65.3 million in the corresponding period of 2018. General and administrative expenses for the fourth quarter of 2019 included share-based compensation expenses of RMB16.8 million ($2.4 million), compared to RMB15.4 million in the corresponding period of 2018.
  • Product development expenses were RMB300.2 million ($43.1 million) in the fourth quarter of 2019, compared to RMB296.1 million in the corresponding period of 2018. Product development expenses for the fourth quarter of 2019 included share-based compensation expenses of RMB14.5 million ($2.1 million), compared to RMB22.5 million in the corresponding period of 2018.

Operating Profit

Operating profit was RMB1,102.5 million ($158.4 million) in the fourth quarter of 2019, compared to RMB899.2 million in the corresponding period of 2018.

Income Tax Expenses

There was an income tax expense of RMB114.1 million ($16.4 million) in the fourth quarter of 2019, compared to income tax benefit of RMB21.8 million in the corresponding period of 2018.

Net Income attributable to Autohome Inc. and EPS

Net income attributable to Autohome Inc. was RMB1,108.1 million ($159.2 million) in the fourth quarter of 2019, compared to RMB1,015.3 million in the corresponding period of 2018. Basic and diluted earnings per share/per ADS or "EPS" were RMB9.32 ($1.34) and RMB9.27 ($1.33), respectively, as compared to basic and diluted EPS of RMB8.60 and RMB8.52, 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, was RMB1,150.0 million ($165.2 million) in the fourth quarter of 2019, compared to RMB1,076.2 million in the corresponding period of 2018. Non-GAAP basic and diluted EPS were RMB9.67 ($1.39) and RMB9.62 ($1.38), respectively, compared to non-GAAP basic and diluted EPS of RMB9.12 and RMB9.03, respectively, in the corresponding period of 2018.

Unaudited Full Year 2019 Financial Results

Net Revenues

Net revenues in 2019 were RMB8,420.8 million ($1,209.6 million), compared to RMB7,233.2 million in 2018.                                       

  • Media services revenues were RMB3,653.8 million ($524.8 million), compared to RMB3,508.3 million in 2018.
  • Leads generation services revenues were RMB3,275.5 million ($470.5 million) from RMB2,871.0 million in 2018. The increase was primarily attributable to the increase in average revenue per paying dealer.
  • Online marketplace and others revenues increased by 74.7% to RMB1,491.4 million ($214.2 million) from RMB853.9 million in 2018. This increase was primarily attributable to the increased contribution from data products and auto-financing business.

Cost of Revenues

Cost of revenues was RMB960.3 million ($137.9 million) from RMB820.3 million in 2018. In addition, cost of revenues included share-based compensation expenses of RMB15.5 million ($2.2 million) compared to RMB16.1 million in 2018.

Operating Expenses

Operating expenses were RMB4,702.4 million ($675.5 million) compared to RMB3,885.3 million in 2018. The increase was mainly due to increases in sales and marketing expenses and product development expenses as the Company continued to reinvest in future growth opportunities.

  • Sales and marketing expenses were RMB3,093.3 million ($444.3 million) in 2019, compared to RMB2,435.2 million in 2018. The increase was primarily attributable to expenses related to the Company's 818 Global Super Auto Show and increased execution expenses to support automakers and dealers. Sales and marketing expenses for 2019 included share-based compensation expenses of RMB46.1 million ($6.6 million), compared to RMB61.6 million in 2018.
  • General and administrative expenses were RMB318.0 million ($45.7 million) in 2019, compared to RMB314.8 million in 2018. General and administrative expenses for 2019 included share-based compensation expenses of RMB62.9 million ($9.0 million), compared to RMB56.0 million in 2018.
  • Product development expenses were RMB1,291.1 million ($185.4 million) in 2019, compared to RMB1,135.2 million in 2018. The increase was primarily attributable to an increase in salaries and benefits and increased investment in research and development activities. Product development expenses for 2019 included share-based compensation expenses of RMB79.5 million ($11.4 million), compared to RMB68.6 million in 2018.

Operating Profit

Operating profit was RMB3,235.8 million ($464.8 million) in 2019, compared to RMB2,868.9 million in 2018.

Income Tax Expense

Income tax expense was RMB500.4 million ($71.9 million), compared to RMB377.9 million in 2018, primarily attributable to an increase in taxable income and accrual of withholding tax associated with the Company's annual dividend policy.

Net Income attributable to Autohome Inc. and EPS

Net income attributable to Autohome Inc. was RMB3,200.0 million ($459.6 million), compared to RMB2,871.0 million in 2018. Basic and diluted earnings per share/per ADS ("EPS") were RMB26.99 ($3.88) and RMB26.77 ($3.85), respectively, compared to basic and diluted EPS of RMB24.40 and RMB24.08, respectively, in 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, was RMB3,408.5 million ($489.6 million), compared to RMB3,077.9 million in 2018. Non-GAAP basic and diluted EPS were RMB28.74 ($4.13) and RMB28.52 ($4.10), respectively, compared to non-GAAP basic and diluted EPS of RMB26.16 and RMB25.81, respectively, in 2018.

Balance Sheet and Cash Flow

As of December 31, 2019, the Company had cash and cash equivalents and short-term investments of RMB12.80 billion ($1,837.9 million). Net cash provided by operating activities in the year of 2019 was RMB2,889.4 million ($415.0 million).

Annual Dividend

The board of directors has approved a dividend of US$0.77 per ordinary share (or per ADS) for fiscal year 2019, which is expected to be paid on April 22, 2020 to shareholders of record as of the close of business on April 15, 2020.

Under the Company's annual dividend policy approved on November 4, 2019, annual dividend will be set at an amount equivalent to approximately 20% of the Company's net income in the previous fiscal year starting from 2020. The determination to make dividend distributions and the exact amount of such distributions in any particular year are based upon the Company's operations and earnings, cash flow, financial condition and other relevant factors, and subject to adjustment and determination by the board of directors.

Employees

The Company had 4,198 employees as of December 31, 2019.

Business Outlook

Autohome currently expects to generate net revenues in the range of RMB1,530.0 million ($219.8 million) to RMB1,580.0 million ($227.0 million) in the first quarter of fiscal year 2020. 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 7:00 AM U.S. Eastern Time on Wednesday, February 19, 2020 (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, China:

+852-3027-6500

Mainland China:

8009-880-563/ 400-821-0637

United Kingdom:

0800-026-1542

International:

+1-646-722-4977

Passcode:

90272219#

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 February 25, 2020:

United States:   +1-646-982-0473
International:     +61-2-8325-2405
Passcode:        319327354#

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
E-mail: ir@autohome.com.cn

The Piacente Group, Inc.
Xi Zhang
Tel: +86-10-6508-0677
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

 (Amount in thousands, except per share data) 















 For three months ended December 31, 

 For year ended December 31, 


2018


2019


2018


2019


 RMB 


 RMB 


 US$ 


 RMB 


 RMB 


 US$ 


 (Unaudited) 


 (Unaudited) 


(Unaudited) 


 (Audited) 


(Unaudited)


(Unaudited)

Net revenues: 












Media services

1,092,575


1,057,761


151,938


3,508,254


3,653,767


524,831

Leads generation services 

780,921


823,855


118,339


2,870,996


3,275,544


470,502

Online marketplace and others

314,286


448,046


64,358


853,901


1,491,440


214,232

Total net revenues 

2,187,782


2,329,662


334,635


7,233,151


8,420,751


1,209,565

Cost of revenues

(250,099)


(265,110)


(38,081)


(820,288)


(960,292)


(137,937)

Gross profit 

1,937,683


2,064,552


296,554


6,412,863


7,460,459


1,071,628













Operating expenses: 












Sales and marketing expenses 

(772,657)


(735,008)


(105,577)


(2,435,236)


(3,093,345)


(444,331)

General and administrative expenses 

(65,326)


(59,688)


(8,574)


(314,846)


(317,967)


(45,673)

Product development expenses 

(296,076)


(300,191)


(43,120)


(1,135,247)


(1,291,054)


(185,448)

Total operating expenses

(1,134,059)


(1,094,887)


(157,271)


(3,885,329)


(4,702,366)


(675,452)

Other income, net

95,535


132,864


19,085


341,391


477,699


68,617

Operating profit

899,159


1,102,529


158,368


2,868,925


3,235,792


464,793

Interest income

104,274


117,536


16,883


358,811


469,971


67,507

Income /(loss) from equity method investments

(1,513)


2,229

320

24,702

685

98

Fair value change of other non-current assets

(11,017)


-


-


(11,017)


(5,442)


(782)

Income before income taxes 

990,903


1,222,294


175,571


3,241,421


3,701,006


531,616













Income tax benefit/(expense)

21,771


(114,101)


(16,390)


(377,890)


(500,361)


(71,872)

Net income 

1,012,674


1,108,193


159,181


2,863,531


3,200,645


459,744

Net loss/(income) attributable to noncontrolling interests

 

2,608


(120)


(17)


 

7,484


(679)


(98)

Net income attributable to Autohome Inc.

 

1,015,282


1,108,073


159,164


 

2,871,015


3,199,966


459,646

Earnings per share for ordinary share 












Basic 

8.60


9.32


1.34


24.40


26.99


3.88

Diluted 

8.52


9.27


1.33


24.08


26.77


3.85














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























 Basic 

117,995,438


118,892,884


118,892,884


117,671,971


118,582,096


118,582,096

 Diluted

119,156,359


119,543,779


119,543,779


119,235,379


119,515,247


119,515,247














 

AUTOHOME INC.

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands, except per share data)






For three months ended December 31,


For year ended December 31,


2018


2019


2018


2019


RMB


RMB


US$


RMB


RMB


US$


 (Unaudited) 


 (Unaudited) 


 (Unaudited) 


 (Audited) 


 (Unaudited) 


 (Unaudited) 













Net income attributable to Autohome Inc.

1,015,282


1,108,073


159,164


2,871,015


3,199,966


459,646

Plus: income tax (benefit)/expense

(21,771)


114,101


16,390


377,890


500,361


71,872

Plus: depreciation of property and equipment

26,300


28,881


4,148


90,269


106,941


15,361

Plus: amortization of intangible assets

2,913


2,913


418


11,625


11,664


1,675

EBITDA

1,022,724


1,253,968


180,120


3,350,799


3,818,932


548,554

Plus: share-based compensation
expenses

59,770


40,835


5,866


202,325


204,008


29,304

Adjusted EBITDA

1,082,494


1,294,803


185,986


3,553,124


4,022,940


577,858













Net income attributable to Autohome Inc.

1,015,282


1,108,073


159,164


2,871,015


3,199,966


459,646

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

1,139


1,139


164


4,556


4,556


654

Plus: share-based compensation expenses

59,770


40,835


5,866


202,325


204,008


29,304

Adjusted Net Income attributable to Autohome Inc.

1,076,191


1,150,047


165,194


3,077,896


3,408,530


489,604
























Basic

9.12


9.67


1.39


26.16


28.74


4.13

Diluted

9.03


9.62


1.38


25.81


28.52


4.10













Weighted average shares used to compute

earnings per share attributable to common

stockholders:
























Basic 

117,995,438


118,892,884


118,892,884


117,671,971


118,582,096


118,582,096

Diluted 

119,156,359


119,543,779


119,543,779


119,235,379


119,515,247


119,515,247
















 

AUTOHOME INC.

CONDENSED CONSOLIDATED BALANCE SHEET[2]

(Amount in thousands, except as noted)








As of December 31,


As of December 31,


2018


2019


RMB


RMB


US$


(Audited)


(Unaudited)


(Unaudited)

ASSETS






Current assets






Cash and cash equivalents

211,970


1,988,298


285,601

Short-term investments

9,849,488


10,806,812


1,552,301

Accounts and notes receivable, net

2,795,835


3,231,486


464,174

Amounts due from related parties, current

34,047


29,501


4,238

Prepaid expenses and other current assets

249,977


302,285


43,421

Total current assets

13,141,317


16,358,382


2,349,735

Non-current assets






Restricted cash, non-current

5,000


5,200


747

Property and equipment, net

170,198


281,773


40,474

Goodwill and intangible assets, net

1,543,682


1,532,024


220,061

Long-term investments

70,979


71,664


10,294

Deferred tax assets

90,179


27,782


3,991

Other non-current assets

734,846


879,040


126,266

Total non-current assets

2,614,884


2,797,483


401,833

Total assets

15,756,201


19,155,865


2,751,568







LIABILITIES AND EQUITY






Current liabilities






Accrued expenses and other payables

2,439,948


2,417,438


347,243

Advance from customers

75,017


95,636


13,737

Deferred revenue

1,510,726


1,370,953


196,925

Income tax payable

119,210


45,489


6,534

Amounts due to related parties

19,868


36,387


5,227

Total current liabilities

4,164,769


3,965,903


569,666

Non-current liabilities






Other liabilities

24,068


45,534


6,541

Deferred tax liabilities

455,921


538,487


77,349

Total non-current liabilities

479,989


584,021


83,890

Total liabilities

4,644,758


4,549,924


653,556







Equity






Total Autohome Inc. shareholders' equity

11,135,278


14,629,097


2,101,338

Noncontrolling interests

(23,835)


(23,156)


(3,326)

Total equity

11,111,443


14,605,941


2,098,012

Total liabilities and equity

15,756,201


19,155,865


2,751,568







[2] 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 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. The most significant impact upon adoption was the recognition of right-of-use assets and lease liabilities for operating lease related to office buildings and internet data center ("IDC") facilities.  As of December 31, 2019, operating lease right-of-use assets (included in other non-current assets) of RMB81.1 million ($11.6 million), operating lease liabilities, current (included in accrued expenses and other payables) of RMB52.8 million ($7.6 million) and operating lease liabilities, non-current (included in other liabilities) of RMB23.1 million ($3.3 million) was recognized on the consolidated balance sheet.

Cision View original content:http://www.prnewswire.com/news-releases/autohome-inc-announces-unaudited-fourth-quarter-and-full-year-2019-financial-results-301007359.html

Source: Autohome Inc.
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