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Autohome Inc. Announces Unaudited Second Quarter Ended June 30, 2017 Financial Results

Net Revenues Increased 13.3 % Y ear-over-Year to RMB1.6 Billion

Net Income Attributable to Autohome Inc. Increased 49.7% Year-over-Year to RMB517.7 M illion

BEIJING, Aug. 09, 2017 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2017.

Second Quarter 2017 Financial Highlights1

  • Net Revenues increased 13.3% year-over-year to RMB1,562.0 million ($230.4 million), exceeding the high end of the Company's original guidance of RMB1,437 million ($212.0 million).

  • Media servicesand leads generation services revenues increased 36.5% year-over-year to RMB1,459.1 million ($215.2 million).

  • Net Income attributable to Autohome Inc.increased 49.7% year-over-year to RMB517.7 million ($76.4 million).

Second Quarter 2017 Operational Highlights

  • Continued Focus on Mobile Traffic: During the second quarter of 2017, the number of average daily unique visitors who accessed the Company's primary "Autohome" application increased by 27% compared with the second quarter of 2016, further enhancing the Company's dominant position among auto vertical applications in China.

  • Successful Expansion of Augmented Reality Automobile Show: The Company expanded the use of its Augmented Reality Automobile Show (the "AR Show"), first launched in March 2017, to enhance user engagement and interaction. The AR Show took place from June 28 to July 3, 2017, and attracted 30 branded automakers with close to 100 automobile models on display. This resulted in over 10.8 million unique visitors with approximately 84% originating from tier 2 and below cities.

  • Asset-Light Vehicle E-commerce Platform Expanded to Incorporate Used Cars: As part of the Company's strategy, Autohome sold the remaining 647 vehicles from its direct sales inventory during the second quarter of 2017, bringing its inventory clearance to a conclusion. Autohome launched a used car platform in June 2017 which incorporates many innovative services to enable expanded and reliable used car sourcing, broaden dealer financing support solution and used car financing portfolio, enhance consumer tracking and channel management, improve leads quality, and ensure efficient internal management and operations.

Mr. Yan Kang, President of Autohome, commented, "We continued to gain growth momentum during the quarter with better-than-expected results. Our core media and leads generation business saw revenue increase 36.5% year-over-year, primarily due to the rebuilding of our advanced platform which began last year. Our platform is now able to deliver a unique and personalized experience to our users, attract a larger number of mobile users with an expanded array of content, increase our advertising spending market share and significantly strengthen our partnerships with automakers and dealers. In addition, we recently launched several new initiatives in an effort to expand our digital ecosystem, including Dealer Cloud Platform, Used Car Platform, further consolidated open content platform, and Augmented Reality Automobile Show. All of these initiatives will better enable our clients and consumers by providing them with differentiated value propositions, strengthen our service offerings and generate long-term sustainable growth for our shareholders."

Mr. Julian Wang, Chief Financial Officer, added, "We delivered another strong quarter with double-digit revenue growth that significantly surpassed our original guidance, and generated a solid 49.7% improvement in profitability year-over-year. I believe this reflects the success of our ongoing efforts to transform Autohome from a content-led vertical media platform to a fully-integrated automotive eco-platform leveraging advanced data and technology. This strategy has created a better user experience, higher quality sales leads, enhanced revenue growth and healthier margins. We will continue to drive growth and profitability throughout the rest of the year by leveraging our unrivaled advantage in media and leads generation to facilitate more meaningful connections and transactions between our targeted consumers and automaker and dealer clients throughout the ownership cycle."

Overview of Key Financial Results for Second Quarter 2017

Key Financial Results

(In RMB Millions except for per share data) 2Q2016 2Q2017 % Change
Net Revenues 1,378.4 1,562.0 13.3 %
Net Income attributable to Autohome Inc. 345.8 517.7 49.7 %
Adjusted Net Income attributable to Autohome Inc.2 395.7 565.2 42.8 %
Diluted Earnings Per Share3 2.99 4.40 47.2 %

Unaudited Second Quarter 2017 Financial Results

Net Revenues

Net revenues increased 13.3% to RMB1,562.0 million ($230.4 million) from RMB1,378.4 million in the corresponding period of 2016. The increase was mainly due to a 36.5% increase in revenues from media and leads generation services.

  • Media services revenues increased 34.1% to RMB799.4 million ($117.9 million) from RMB596.2 million in the corresponding period of 2016. The increase was mainly due to an increase in average revenue per automaker advertiser as automakers continue to allocate a greater portion of their advertising budgets to the Company's online advertising and marketing channels as more diversified and optimized products offerings are developed.

  • Leads generation services revenues increased 39.5% to RMB659.7 million ($97.3 million) from RMB472.7 million in the corresponding period of 2016. The increase was primarily attributable to a 23.8% year-over-year increase in average revenue per paying dealer as dealers continue to allocate a greater portion of their budgets to the Company's services.

  • Online marketplace revenues were RMB102.8 million ($15.2 million) compared to RMB309.4 million in the corresponding period of 2016. In the second quarter of 2017, the Company sold 647 vehicles and generated RMB57.1 million ($8.4 million) in direct vehicle sales revenues. This was in line with the Company's strategy to de-emphasize direct vehicle sales and focus on facilitating transactions.

Cost of Revenues

Cost of revenues decreased 38.0% to RMB287.4 million ($42.4 million) from RMB463.8 million in the corresponding period of 2016, primarily due to a decrease in cost of goods sold related to direct vehicle sales. Excluding the cost of goods sold, cost of revenues would have increased 37.4% to RMB231.6 million ($34.2 million) from RMB168.6 million in the corresponding period of 2016, primarily due to an increase in valued-added tax and surcharges which were in line with the increase in revenues from media and leads generation services. In addition, cost of revenues included share-based compensation expenses of RMB3.4 million ($0.5 million) during the second quarter of 2017, compared to RMB3.0 million for the corresponding period of 2016.

Operating Expenses

Operating expenses increased 35.3% to RMB707.3 million ($104.3 million) from RMB522.9 million in the corresponding period of 2016. This increase...


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