Leju Reports First Quarter 2019 Results

BEIJING,May 28,2019 -- Leju Holdings Limited ("Leju"or the "Company") (NYSE: LEJU),a leading online-to-offline ("O2O") real estate services provider in China,today announced its unaudited financial results for the fiscal quarter ended March 31,2019.

First Quarter 2019 Financial Highlights

Total revenues increased by 35% year-on-year to $110.4 million.

- Revenues from e-commerce services increased by 44% year-on-year to $76.8 million.

- Revenues from online advertising services increased by 22% year-on-year to $33.2 million.

Loss from operations was $19.1 million,a decrease of 39% from $31.5 million for the same quarter of 2018.

Non-GAAP[1] loss from operations was $15.3 million,a decrease of 43% from $27.1 million for the same quarter of 2018.

Net loss attributable to Leju Holdings Limited shareholders was $13.5 million,or $0.10 loss per diluted American depositary share ("ADS"),a decrease of 35% from $20.9 million,or $0.15 loss per diluted ADS,for the same quarter of 2018.

Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $10.6 million,or $0.08 loss per diluted ADS,a decrease of 39% from $17.3 million,or $0.13 loss per diluted ADS,for the same quarter of 2018.

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations,(2) net income (loss),(3) net income (loss) attributable to Leju shareholders,(4) net income (loss) attributable to Leju shareholders per basic ADS,and (5) net income (loss) attributable to Leju shareholders per diluted ADS,each of which excludes share-based compensation expense,amortization of intangible assets resulting from business acquisitions,and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results"below for more information about the non-GAAP financial measures included in this press release.

"We're pleased to announce that Leju delivered strong top line growth in our online advertising and e-commerce businesses in the first quarter," said Mr. Geoffrey He,Leju's Chief Executive Officer. "The substantial market recovery we have seen so far in 2019 has driven increased developer demand for marketing services. We further solidified our leading position in e-commerce business by increasing the number of our projects significantly in the first quarter,which is a result of our top-down approach strategy and quick response to market changes. Our 'New Media' strategy further enhanced Leju's media influence and laid a solid foundation for sustainable growth in our online advertising business. In addition,we continued to improve operational efficiency and streamline our cost structure following our return to profitability last year. Going forward,we will continue to focus on market expansion,product innovation,and organizational optimization,as we strive to improve profitability."

First Quarter 2019 Results

Total revenueswere $110.4 million,an increase of 35% from $81.5 million for the same quarter of 2018,mainly due to an increase in revenues from e-commerce services and online advertising services.

Revenues from e-commerce serviceswere $76.8 million,an increase of 44% from $53.5 million for the same quarter of 2018,primarily due to an increase in both the number of discount coupons redeemed and in the average price per discount coupon.

Revenues from online advertising services were $33.2 million,an increase of 22% from $27.1 million for the same quarter of 2018,primarily due to an increase in property developers' demand for online advertising.

Revenues from listing serviceswere $0.4 million,a decrease of 56% from $0.9 million for the same quarter of 2018,primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenueswas $23.5 million,an increase of 26% from $18.7 million for the same quarter of 2018,primarily due to increased cost of advertising resources purchased from media platforms.

Selling,general and administrative expenseswere $106.0 million,an increase of 11% from $95.2 million for the same quarter of 2018,primarily due to increased marketing expenses related to the Company's e-commerce business.

Loss from operationswas $19.1 million,a decrease of 39% from $31.5 millionfor the same quarter of 2018. Non-GAAP loss from operationswas $15.3 million,a decrease of 43% from $27.1 million for the same quarter of 2018.

Net loss was $13.6 million,a decrease of 36% from $21.3 million for the same quarter of 2018. Non-GAAP net loss was $10.6 million,a decrease of 40% from $17.7 million for the same quarter of 2018.

Net loss attributable to Leju Holdings Limited shareholderswas $13.5 million,or $0.10 loss per diluted ADS,for the same quarter of 2018. Non-GAAP net loss attributable to Leju Holdings Limited shareholderswas $10.6 million,for the same quarter of 2018.

Cash Flow

As of March 31,2019,the Company's cash and cash equivalents balance was $137.9 million.

First quarter 2019 net cash used in operating activities was $11.7 million,primarily comprised of non-GAAP net loss of $10.6 million and an increase in accounts receivable and contract assets of $10.3 million,partially offset by an increase in amounts due to related parties of $5.2 million,an increase in advance from customer of $2.5 million and a decrease in customer deposits of $1.4 million.

Business Outlook

The Company estimates that its total revenues for the second quarter of 2019 will be approximately $150 million to $160 million,which would represent an increase of approximately 22% to 30% from $122.7 million in the same quarter in 2018. This forecast reflects the Company's current and preliminary view,which is subject to change.

Conference Call Information

Leju's management will host an earnings conference call on May 28,2019 at 7 a.m.U.S. Eastern Time (7 p.m.Beijing/Hong Kong time).

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

U.S./International:

+1-845-675-0437

Hong Kong:

+852-3018-6771

Mainland China:

400-620-8038

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "Leju earnings call".

A replay of the conference call may be accessed by phone at the following number until June 5,2019:

U.S./International:

+1-855-452-5696

Hong Kong:

800-963-117

Mainland China:

400-632-2162

Passcode:

5549295

Additionally,a live and archived webcast will be available at http://ir.leju.com.

About Leju

Leju Holdings Limited ("Leju") (NYSE: LEJU) is a leading online-to-offline,or O2O,real estate services provider in China,offering real estate e-commerce,online advertising and online listing services. Leju's integrated online platform comprises various mobile applications along with local websites covering more than 370 cities,enhanced by complementary offline services to facilitate residential property transactions. In addition to the Company's own websites,Leju operates the real estate and home furnishing websites of SINA Corporation,and maintains a strategic partnership with Tencent Holdings Limited. For more information about Leju,please visit http://ir.leju.com.

Safe Harbor: Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934,as amended,and as defined in 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," "target," "going forward," "outlook" and similar statements. Leju may also make written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission,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 Leju's beliefs and expectations,are forward-looking statements that involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained,either expressly or impliedly,in any of the forward-looking statements. Such factors include,but are not limited to,fluctuations inChina'sreal estate market; the highly regulated nature of,and government measures affecting,the real estate and internet industries inChina; Leju's ability to compete successfully against current and future competitors; its ability to continue to develop and expand its content,service offerings and features,and to develop or incorporate the technologies that support them; its limited operating history and lack of experience as a stand-alone public company,given its carve-out from E-House and prior reliance on E-House for various corporate services; its reliance on SINA and others with which it has developed,or may develop in the future,strategic partnerships; substantial revenue contribution from a limited number of real estate markets; complexities resulting from its ongoing relationships with E-House,due to E-House's status as a principal shareholder of Leju; and relevant government policies and regulations relating to the corporate structure,business and industry of Leju. Further information regarding these and other risks,uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release,and the Company does not undertake any obligation to update any forward-looking statement as a result of new information,future events or otherwise,except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Leju's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"),Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations,and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures,please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.

Leju believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding its operating performance by excluding share-based compensation expense and amortization of intangible assets resulting from business acquisitions,which may not be indicative of Leju's operating performance. These non-GAAP financial measures also facilitate management's internal comparisons to Leju's historical performance and assist its financial and operational decision making. A limitation of using these non-GAAP financial measures is that share-based compensation expense and amortization of intangible assets resulting from business acquisitions may continue to exist in Leju's business for the foreseeable future. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables provide more details on the reconciliation between non-GAAP financial measures and their most comparable GAAP financial measures.

For investor and media inquiries please contact:

Ms. Christina Wu

Leju Holdings Limited

Phone: +86 (10) 5895-1062

E-mail: ir@leju.com

Philip Lisio

Foote Group

Phone: +86 135-0116-6560

E-mail: phil@thefootegroup.com

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

December 31,

March 31,

2018

2019

ASSETS

Current assets

Cash and cash equivalents

147,263

137,899

Accounts receivable,net

102,697

111,654

Contract assets

2,137

733

Marketable securities

2,467

3,213

Prepaid expenses and other current assets

8,621

8,654

Customer deposits

10,672

9,262

Amounts due from related parties

6,695

5,257

Total current assets

280,552

276,672

Property and equipment,net

14,058

15,528

Intangible assets,net

57,401

54,221

Right-of-use assets[2]

—

35,894

Investment in affiliates

63

52

Deferred tax assets

62,356

63,557

Other non-current assets

2,297

1,246

Total assets

416,727

447,170

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

803

2,138

Accrued payroll and welfare expenses

30,628

28,718

Income tax payable

58,030

54,656

Other tax payable

12,675

13,734

Amounts due to related parties

3,477

8,726

Advances from customers

26,873

29,386

Lease liabilities,current[2]

—

7,924

Accrued marketing and advertising expenses

14,896

14,053

Other current liabilities

12,999

12,897

Total current liabilities

160,381

172,232

Lease liabilities,non-current[2]

—

27,950

Deferred tax liabilities

14,780

15,065

Total liabilities

175,161

215,247

Shareholders' Equity

Ordinary shares ($0.001 par value): 1,000,000 shares

authorized,135,763,962 and 135,962 shares issued and

outstanding,as of December 31,2018 and March 31,

respectively

136

136

Additional paid-in capital

792,626

793,202

Accumulated deficit

(528,825)

(542,316)

Accumulated other comprehensive loss

(19,848)

(16,481)

Total Leju Holdings Limited shareholders' equity

244,089

234,541

Non-controlling interests

(2,523)

(2,618)

Total equity

241,566

231,923

TOTAL LIABILITIES AND EQUITY

416,170

________________________________

[2] In February 2016,the FASB issued ASU 2016-02,Leases (Topic 842),which requires lessees to recognize a

right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group

adopted this ASU on January 1,2019 using the modified retrospective approach and the financial statements for the

comparative period has not been restated.

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars,except share data and per share data)

Three months ended

March 31,

2018

2019

Revenues

E-commerce

53,470

76,849

Online advertising

27,130

33,179

Listing

923

405

Total revenues

81,523

110,433

Cost of revenues

(18,675)

(23,538)

Selling,general and administrative expenses

(95,178)

(105,977)

Other operating income

830

22

Loss from operations

(31,500)

(19,060)

Interest income

287

383

Other income,net

2,837

597

Loss before taxes and loss from equity in affiliates

(28,376)

(18,080)

Income tax benefit

7,117

4,539

Loss before loss from equity in affiliates

(21,259)

(13,541)

Loss from equity in affiliates

(19)

(12)

Net Loss

(21,278)

(13,553)

Less: net loss attributable to non-controlling interests

(416)

(62)

Loss attributable to Leju Holdings Limited shareholders

(20,862)

(13,491)

Loss per share:

Basic/Diluted

(0.15)

(0.10)

Shares used in computation of loss per share:

Basic/Diluted

135,962

135,962

The conversion of Renminbi ("RMB") amounts into reporting currency USD amounts is based on the rate of USD1

= RMB6.7335 on March 31,2019 and USD1 = RMB6.7977 for the three months ended March 31,2019

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

(In thousands of U.S. dollars)

Three months ended

March 31,

2018

2019

Net loss

(21,553)

Other comprehensive income,net of tax of nil

Foreign currency translation adjustment

2,209

3,334

Comprehensive loss

(19,069)

(10,219)

Less: Comprehensive loss attributable to non-controlling interest

(518)

(95)

Comprehensive loss attributable to Leju Holdings Limited

(18,551)

(10,124)

shareholders

LEJU HOLDINGS LIMITED

Unaudited Reconciliation of GAAP and Non-GAAP Results

(In thousands of U.S. dollars,except share data and per ADS data)

Three months ended

March 31,

2018

2019

GAAP loss from operations

(31,060)

Share-based compensation expense

979

575

Amortization of intangible assets resulting from business

acquisitions

3,450

3,153

Non-GAAP loss from operations

(27,071)

(15,332)

GAAP net loss

(21,553)

Share-based compensation expense

979

575

Amortization of intangible assets resulting from

business acquisitions

3,153

Income tax benefit:

Current

—

—

Deferred[3]

(817)

(788)

Non-GAAP net loss

(17,666)

(10,613)

Net loss attributable to Leju Holdings Limited shareholders

(20,491)

Share-based compensation expense (net of non-controlling

interests)

971

575

Amortization of intangible assets resulting from business

acquisitions (net of non-controlling interests)

3,153

Income tax benefit:

Current

—

—

Deferred

(817)

(788)

Non-GAAP net loss attributable to Leju Holdings Limited

shareholders

(17,258)

(10,551)

GAAP net loss per ADS — basic/diluted

(0.15)

(0.10)

Non-GAAP net loss per ADS — basic/diluted

(0.13)

(0.08)

Shares used in calculating basic/diluted GAAP/non-GAAP net

loss attributable to Leju Holdings Limited shareholders per

ADS

135,962

________________________________

[3]Amount represents the realization of deferred tax liabilities recognized for the temporary difference between the tax

basis of intangible assets recognized from acquisitions and their reported amounts in the financial statements. The

income tax impact on the share-based compensation expense is nil.

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

Three months ended

March 31,

2018

2019

Operating data for e-commerce services

Number of discount coupons issued to prospective purchasers

(number of transactions)

19,678

29,549

Number of discount coupons redeemed (number of transactions)

13,799

19,559

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