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

BEIJING,Feb. 19,2020 -- 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 Quarter2019Highlights[1]

Net Revenues in thefourthquarter 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 2019Highlights[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 ofUS$0.77 per ordinary share (or per ADS) for fiscal year 2019,which is expected to be paid onApril 22,2020to shareholders of record as of the close of business onApril 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,Autohomecreatesmore value forthe 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 quarterof 2019 were RMB2,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 wasRMB265.1 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 RMB2.9million ($0.4million) during the fourth quarterof 2019,compared to RMB3.6 million in the corresponding period of 2018.

Operating Expenses

Operating expenses wereRMB1,094.9 million ($157.3 million) in the fourth quarter of 2019,compared toRMB1,134.1million 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 wasRMB1,102.5 million ($158.4 million) in the fourthquarter of 2019,compared to RMB899.2million 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 RMB21.8million in the corresponding period of 2018.

Net Income attributable to Autohome Inc.and EPS

Net income attributable to Autohome Inc. wasRMB1,108.1 million ($159.2 million) in the fourth quarter of 2019,015.3million 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,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 2019,076.2 million in the corresponding period of 2018.Non-GAAP basic and diluted EPS were RMB9.67 ($1.39) and RMB9.62 ($1.38),compared to non-GAAP basic and diluted EPS of RMB9.12 and RMB9.03,in the corresponding period of 2018.

Unaudited Full Year 2019 Financial Results

Net Revenues

Net revenues in 2019 were RMB8,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 RMB820.3million in 2018. In addition,cost of revenues included share-based compensation expenses of RMB15.5 million ($2.2million) compared to RMB16.1 million in 2018.

Operating Expenses

Operating expenses wereRMB4,702.4 million ($675.5 million) compared toRMB3,885.3 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 2019,135.2 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 wasRMB3,235.8 million ($464.8 million) in 2019,868.9 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. wasRMB3,200.0 million ($459.6 million),871.0million in 2018. Basic and diluted earnings per share/per ADS ("EPS")were RMB26.99($3.88) and RMB26.77($3.85),compared to basic and diluted EPS of RMB24.40and RMB24.08,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),077.9 million in 2018.Non-GAAP basic and diluted EPS were RMB28.74 ($4.13) and RMB28.52 ($4.10),compared to non-GAAP basic and diluted EPS of RMB26.16 and RMB25.81,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 ofUS$0.77 per ordinary share (or per ADS) for fiscal year 2019,2020.

Under the Company's annual dividend policy approved on November 4,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 endedDecember 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

1,073

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

118,884

117,671,971

118,582,096

118,096

Diluted

119,156,359

119,543,779

119,379

119,515,247

119,247

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 incomeattributable to Autohome Inc.

1,282

1,073

159,164

2,015

3,966

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

4,940

577,858

Net incomeattributable to Autohome Inc.

1,646

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

59,304

Adjusted Net Incomeattributable 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

117,247

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

1,682

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

11,278

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

15,568

[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,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.

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