Autohome Inc. Announces Unaudited First Quarter Ended March 31, 2020 Financial Results

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Autohome Inc. Announces Unaudited First Quarter Ended March 31, 2020 Financial Results

BEIJING, June 1, 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 first quarter ended March 31, 2020.

First Quarter 2020 Highlights[1]

  • Net Revenues in the first quarter of 2020 were RMB1,546.6 million ($218.4 million), in line with the Company's guidance.
  • Online Marketplace and Others Revenues in the first quarter of 2020 were RMB309.9 million ($43.8 million), which contributed to 20% of total revenues, compared to 15% in the corresponding period of 2019. Data Products in the online marketplace and other business achieved revenue growth of over 80% year-over-year in the first quarter of 2020.

[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$1.00 to RMB7.0808 on March 31, 2020 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

Mr. Min Lu, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, "We kicked off 2020 with a solid first quarter, reporting revenue of RMB1.55 billion. During the quarter, we witnessed an increasing demand for online marketing services as automakers and dealers shifted their focus from offline to online channels. To capitalize on this trend, we introduced a suite of data products and tools that enhance the efficiency and effectiveness of online marketing programs for our customers.  In addition, we launched the spring virtual auto show, providing access to the event to a much broader consumer audience as well as automobile enthusiasts. These efforts and initiatives result in an increase in the customer base for our data products. With 2020 well underway, I am confident in our ability to maintain our undisputed market leadership given our well-defined long-term strategic plan and sharp focus on delivering value to both our customers and the auto industry."

Mr. Jun Zou, Chief Financial Officer of Autohome, added, "In the first quarter, we maintained our sound profit profile with a non-GAAP net margin of 41.8%, despite the unfavorable macroeconomic conditions brought on mainly by the COVID-19 pandemic. Our solid financial performance once again demonstrated the resilience of our core business as well as the strength of our new initiatives and disciplined approach to managing costs. As we fulfill our commitment to maximizing shareholder value, we were pleased to pay our first regular annual dividend to shareholders in April 2020 as scheduled. Going forward, we will continue to expand our footprint in auto-related sectors while enhancing operating efficiency across each of our business lines, all with the ultimate goal of generating sustained long-term value for our shareholders."

Unaudited First Quarter 2020 Financial Results

Net Revenues

Net revenues in the first quarter of 2020 were RMB1,546.6 million ($218.4 million), compared to RMB 1,611.9 million in the corresponding period of 2019.

  • Media services revenues were RMB566.3 million ($80.0 million), compared to RMB643.2 million in the corresponding period of 2019. The decrease was attributable to the decrease of average revenue per automaker advertiser amid the challenging macroeconomic environment in China related to the COVID-19 pandemic.
  • Leads generation services revenues were RMB670.5 million ($94.7 million), compared to RMB 734.1 million in the corresponding period of 2019. The decrease was primarily due to the decrease in the number of paying dealers under the difficult operating conditions related to the COVID-19 pandemic.
  • Online marketplace and others revenues increased by 32.1% to RMB309.9 million ($43.8 million) from RMB234.6 million in the corresponding period of 2019. The increase was primarily attributable to the increased contribution from data products.

Cost of Revenues

Cost of revenues was RMB177.9 million ($25.1 million), compared to RMB184.5 million in the corresponding period of 2019. In addition, cost of revenues included share-based compensation expenses of RMB5.1 million ($0.7 million) during the first quarter of 2020, compared to RMB3.9 million in the corresponding period of 2019.

Operating Expenses

Operating expenses were RMB905.3 million ($127.9 million) in the first quarter of 2020, compared to RMB846.1 million in the corresponding period of 2019.

  • Sales and marketing expenses were RMB524.2 million ($74.0 million) in the first quarter of 2020, compared to RMB509.7 million in the corresponding period of 2019. Sales and marketing expenses for the first quarter of 2020 included share-based compensation expenses of RMB11.0 million ($1.5 million), compared to RMB13.2 million in the corresponding period of 2019.
  • General and administrative expenses were RMB89.2 million ($12.6 million) in the first quarter of 2020, compared to RMB67.8 million in the corresponding period of 2019. General and administrative expenses for the first quarter of 2020 included share-based compensation expenses of RMB18.9 million ($2.7 million), compared to RMB14.9 million in the corresponding period of 2019.
  • Product development expenses were RMB291.9 million ($41.2 million) in the first quarter of 2020, compared to RMB268.6 million in the corresponding period of 2019. Product development expenses for the first quarter of 2020 included share-based compensation expenses of RMB22.9 million ($3.2 million), compared to RMB21.2 million in the corresponding period of 2019.

Operating Profit

Operating profit was RMB585.9 million ($82.7 million) in the first quarter of 2020, compared to RMB657.5 million in the corresponding period of 2019.

Income Tax Expense

Income tax expense was RMB125.5 million ($17.7 million) in the first quarter of 2020, compared to RMB119.5 million in the corresponding period of 2019.

Net Income attributable to Autohome Inc. and EPS

Net income attributable to Autohome Inc. was RMB587.2 million ($82.9 million) in the first quarter of 2020, compared to RMB646.3 million in the corresponding period of 2019. Basic and diluted earnings per share/per ADS or "EPS," were RMB4.93 ($0.70) and RMB4.91 ($0.69), respectively, compared to basic and diluted EPS of RMB5.47 and RMB5.41, respectively, in the corresponding period of 2019.

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 RMB646.2 million ($91.3 million) in the first quarter of 2020, compared to RMB700.6 million in the corresponding period of 2019. Non-GAAP basic and diluted EPS were RMB5.43 ($0.77) and RMB5.40 ($0.76), respectively, compared to non-GAAP basic and diluted EPS of RMB5.93 and RMB5.87, respectively, in the corresponding period of 2019.

Balance Sheet and Cash Flow

As of March 31, 2020, the Company had cash and cash equivalents and short-term investments of RMB13.30 billion ($1,878.4 million). Net cash provided by operating activities in the first quarter of 2020 was RMB498.9 million ($70.5 million).

Employees

The Company had 4,057 employees as of March 31, 2020.

Business Outlook

Autohome currently expects to generate net revenues in the range of RMB2,220.0 million ($313.5 million) to RMB2,320.0 million ($327.6 million) in the second 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, particularly as a result of uncertainties surrounding the ongoing COVID-19 pandemic.

Conference Call Information

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on Monday, June 1, 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:

97828568#

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 June 7, 2020:

United States:

+1-646-982-0473

International:

+61-2-8325-2405

Passcode:

319333411#

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 original generated content, professionally generated content, user-generated content, 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 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: +86-10-6508-0677
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.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA

(Amount in thousands, except per share data)








 For three months ended March 31,


2019


2020


 RMB 


 RMB 


 US$ 


 (Unaudited)


 (Unaudited)


 (Unaudited)







Net revenues: 






Media services

643,235


566,310


79,978

Leads generation services 

734,087


670,459


94,687

Online marketplace and others

234,606


309,860


43,761

Total net revenues 

1,611,928


1,546,629


218,426

Cost of revenues 

(184,454)


(177,862)


(25,119)

Gross profit 

1,427,474


1,368,767


193,307







Operating expenses: 






Sales and marketing expenses 

(509,724)


(524,221)


(74,034)

General and administrative expenses 

(67,758)


(89,152)


(12,591)

Product development expenses 

(268,573)


(291,938)


(41,230)

Total operating expenses

(846,055)


(905,311)


(127,855)

Other income, net

76,038


122,471


17,296

Operating profit 

657,457


585,927


82,748







Interest income

114,221


137,391


19,403

Loss from equity method investments

(1,582)


(1,455)


(205)

Fair value change of other non-current assets

(4,026)


(9,116)


(1,287)

Income before income taxes 

766,070


712,747


100,659







Income tax expense

(119,525)


(125,484)


(17,722)

Net income 

646,545


587,263


82,937

Net income attributable to noncontrolling
   interests

(236)


(84)


(12)

Net income attributable to Autohome Inc.

646,309


587,179


82,925

Earnings per share for ordinary shares 






 Basic 

5.47


4.93


0.70

 Diluted 

5.41


4.91


0.69







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












 Basic 

118,229,887


119,069,088


119,069,088

 Diluted

119,385,615


119,647,226


119,647,226







 

 

AUTOHOME INC.

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands, except per share data)








 For three months ended March 31,


2019


2020


 RMB 


 RMB 


 US$ 


 (Unaudited)


 (Unaudited)


 (Unaudited)







Net income attributable to
   Autohome Inc.

646,309


587,179


82,925

Plus: income tax expense

119,525


125,484


17,722

Plus: depreciation of property and
   equipment

25,326


32,405


4,576

Plus: amortization of intangible
   assets

2,917


3,230


456

EBITDA

794,077


748,298


105,679

Plus: share-based compensation
   expenses

53,187


57,857


8,171

Adjusted EBITDA

847,264


806,155


113,850







Net income attributable to
   Autohome Inc.

646,309


587,179


82,925

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

1,139


1,139


161

Plus: share-based compensation
   expenses

53,187


57,857


8,171

Adjusted net income attributable
   to Autohome Inc.

700,635


646,175


91,257

Non-GAAP earnings per share for
   ordinary shares












Basic

5.93


5.43


0.77

Diluted

5.87


5.40


0.76







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












Basic 

118,229,887


119,069,088


119,069,088

Diluted 

119,385,615


119,647,226


119,647,226

 

 

AUTOHOME INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Amount in thousands, except as noted)








As of December 31,


As of March 31,


2019


2020


RMB


RMB


US$


(Audited)


(Unaudited)


(Unaudited)

ASSETS






Current assets






Cash and cash equivalents

1,988,298


2,024,801


285,957

Short-term investments

10,806,812


11,276,016


1,592,478

Accounts receivable, net

3,231,486


2,953,583


417,126

Amounts due from related parties,
   current

29,501


16,276


2,299

Prepaid expenses and other current
   assets

302,285


385,454


54,437

Total current assets

16,358,382


16,656,130


2,352,297

Non-current assets






Restricted cash, non-current

5,200


5,200


734

Property and equipment, net

281,773


297,395


42,000

Goodwill and intangible assets, net

1,532,024


1,529,327


215,982

Long-term investments

71,664


70,209


9,915

Deferred tax assets

27,782


27,782


3,924

Other non-current assets

879,040


1,004,957


141,927

Total non-current assets

2,797,483


2,934,870


414,482

Total assets

19,155,865


19,591,000


2,766,779







LIABILITIES AND EQUITY






Current liabilities






Accrued expenses and other
   payables

2,417,438


2,002,986


282,876

Advance from customers

95,636


84,102


11,877

Deferred revenue

1,370,953


1,463,192


206,642

Income tax payable

45,489


150,253


21,220

Amounts due to related parties

36,387


28,484


4,023

Dividends payable

-


651,121


91,956

Total current liabilities

3,965,903


4,380,138


618,594

Non-current liabilities






Other liabilities

45,534


109,354


15,444

Deferred tax liabilities

538,487


477,090


67,378

Total non-current liabilities

584,021


586,444


82,822

Total liabilities

4,549,924


4,966,582


701,416







Equity






Total Autohome Inc. shareholders'
   equity

14,629,097


14,647,490


2,068,621

Noncontrolling interests

(23,156)


(23,072)


(3,258)

Total equity

14,605,941


14,624,418


2,065,363

Total liabilities and equity

19,155,865


19,591,000


2,766,779


 

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SOURCE Autohome Inc.


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