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
- 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.
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 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 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 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).
The Company had 4,057 employees as of March 31, 2020.
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:
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:
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:
The Piacente Group, Inc.
In the United States:
The Piacente Group, Inc.
View original content:http://www.prnewswire.com/news-releases/autohome-inc-announces-unaudited-first-quarter-ended-march-31-2020-financial-results-301068390.html
SOURCE Autohome Inc.