Autohome Inc. Announces Unaudited 2023 Second Quarter and Interim Financial Results
BEIJING,July 27,2023 -- Autohome Inc. (NYSE: ATHM; HKEX: 2518) ("Autohome" or the "Company"),the leading online destination for automobile consumers in China,today announced its unaudited financial results for the three months and six months ended June 30,2023.
Second Quarter 2023Highlights[1]
Net Revenuesin thesecond quarter of 2023 were RMB1,833.0 million (US$252.8 million),compared to RMB1,733.0 million in the corresponding period of 2022.
Net Income attributable to Autohome in the secondquarter of 2023 was RMB504.7million (US$69.6 million),compared to RMB435.0million inthe corresponding period of 2022,and net income attributable to ordinary shareholders in the secondquarter of 2023 was RMB491.2 million (US$67.7 million),compared to RMB423.4million in the corresponding period of 2022.
Adjusted Net Income attributable toAutohome (Non-GAAP)[2]in the second quarter of 2023 was RMB569.5 million (US$78.5 million),compared to RMB472.2 million in the corresponding period of 2022.
Share Repurchase: As of July 21,2023,the Company had repurchased 4,697,330American depositary shares ("ADSs") for a total cost of approximately US$141.0 million.
Mr. Quan Long,Chairman of the Board of Directors and Chief Executive Officer of Autohome,stated,"During the second quarter of 2023,we actively advancedour C-end strategy,making steady progress across content optimization and business diversification while expanding our traffic through multiple channels. In mid-June,we debuted China's first mobile exhibition truck featuring a large-scale holographic display,providing consumers in lower- tier cities with more comprehensive information on new energy vehicles ("NEVs") and enabling NEV brands to expand their reach into these markets,in line with the government's policy to support NEV consumption in rural areas.We also unveiled our first Autohome Energy Space franchise store in Haikou,Hainan Province,marking the beginning of this new retail franchise model's expansion nationwide. Moreover,we accelerated the application of AI technology in all business scenarios,enabling our partners to reduce costs and increase efficiency. We developed two decision-making assistant products based on a GPT model,providing both users and customers with more efficient services. Looking ahead,we are confident that with long-term accumulation of cutting-edge technology and growing brand advantages as well as our comprehensive innovation incubation system,Autohome is well positioned to seize the opportunities across the industry and achieve diversified business growth."
Mr. Craig Yan Zeng,Chief Financial Officer of Autohome,added,"Our financial and operational performance continued to recover steadily with a 6% year-over-year increase in total revenues in the second quarter of 2023,led by strong growth in our online marketplace and others business. Notably,revenues from both TTP Car,Inc. and data products delivered double-digit growth year-over-year,and revenue from NEV brands maintained its robust growth momentum. Meanwhile,in June 2023,our mobile DAUs grew by 31.7% year-over-year to reach 62.71 million,according to QuestMobile,demonstrating our sustained leadership in the automotive media vertical. We have also made significant progress in the development of new models and products,further reinforcing our market leadership in key areas. As we move forward,we will remain committed to the two major industry trends of NEVs and artificial intelligence,constantly innovating to bring superior products and services to users and customers,and ultimately delivering long-term value to all shareholders."
Unaudited Second Quarter 2023 Financial Results
Net Revenues
Net revenues in the second quarter of 2023 were RMB1,733.0 million in the corresponding period of 2022.
Media servicesrevenues were RMB532.0 million (US$73.4 million) in the second quarter of 2023,compared to RMB530.6 million in the corresponding period of 2022.
Leads generation services revenueswere RMB759.6 million (US$104.8 million) in the second quarter of 2023,compared to RMB752.8 million in the corresponding period of 2022.
Online marketplace and others revenues wereRMB541.4 million (US$74.7 million)in the second quarter of 2023,compared to RMB449.6 million in the corresponding period of 2022. The increase was primarily attributable to greater contributions from TTP Car,Inc. and data products.
Cost of Revenues
Cost of revenues was RMB330.2 million (US$45.5 million) in the second quarter of 2023,compared to RMB278.9 million in the corresponding period of 2022. The increase was primarily attributable to a rise in operational costs. Share-based compensation expense included in cost of revenues in the second quarter of 2023 was RMB1.8 million (US$0.2 million),compared to RMB1.3 million in the corresponding period of 2022.
Operating Expenses
Operating expenses were RMB1,228.1 million (US$169.4 million) in the second quarter of 2023,227.5 million in the corresponding period of 2022.
Sales and marketingexpenses were RMB824.1 million (US$113.6 million) in the second quarter of 2023,compared to RMB738.7 million in the corresponding period of 2022. The increase was primarily attributable to the escalation inmarketing and promotional spending. Share-based compensation expense includedinsales and marketing expenses inthe second quarter of 2023was RMB12.3 million (US$1.7million),compared to RMB5.4 million in the corresponding period of 2022.
General and administrative expenses were RMB91.0 million (US$12.5 million) in the second quarter of 2023,compared to RMB126.6 million in the corresponding period of 2022. The decrease was primarily attributable to the reduction of expected credit losses. Share-based compensation expenseincludedingeneral and administrative expenses inthe second quarter of 2023 wasRMB8.9million (US$1.2 million),compared to RMB10.1million in the corresponding period of 2022.
Product development expenses were RMB313.0 million (US$43.2million) in the second quarter of 2023,compared to RMB362.2 million in the corresponding period of 2022. The decrease was primarily attributable to a decline in personnel-related expenses. Share-based compensation expenseincludedinproduct development expenses in the second quarter of 2023 was RMB18.7 million (US$2.6 million),compared to RMB11.6 million in the corresponding period of 2022.
Operating Profit
Operating profit was RMB341.5 million (US$47.1 million) in the second quarter of 2023,compared to RMB301.3 million in the corresponding period of 2022.
Income Tax Expense
There was an income tax expense of RMB35.8 million (US$4.9 million) in the second quarter of 2023,compared to RMB34.1 million in the corresponding period of 2022.
Net Income Attributable to Autohome
Net income attributable to Autohome was RMB504.7 million (US$69.6 million) in the second quarter of 2023,compared to RMB435.0 million in the corresponding period of 2022.
Net Income Attributable to OrdinaryShareholdersand Earnings per Share/ADS
Net income attributable to ordinary shareholders was RMB491.2 million (US$67.7 million) in the second quarter of 2023,compared to RMB423.4 million in the corresponding period of 2022. Basic and diluted earnings per share ("EPS") were RMB1.00 (US$0.14) and RMB1.00 (US$0.14),respectively,in the second quarter of 2023,compared to basic and diluted EPS of RMB0.85 and RMB0.84,in the corresponding period of 2022. Basic and diluted earnings per ADS were RMB3.99 (US$0.55) and RMB3.98 (US$0.55),compared to basic and diluted earnings per ADS of RMB3.38 and RMB3.38,in the corresponding period of 2022.
Adjusted Net Income Attributable to Autohome(Non-GAAP) and Non-GAAP EPS/ADS
Adjusted net income attributable to Autohome (Non-GAAP) was RMB569.5 million (US$78.5 million) in the second quarter of 2023,compared to RMB472.2 million in the corresponding period of 2022. Non-GAAP basic and diluted EPS were RMB1.16 (US$0.16) and RMB1.15 (US$0.16),compared to non-GAAP basic and diluted EPS of RMB0.94 and RMB0.94,in the corresponding period of 2022. Non-GAAP basic and diluted earnings per ADS were RMB4.62 (US$0.64) and RMB4.61 (US$0.64),compared to non-GAAP basic and diluted earnings per ADS of RMB3.77 and RMB3.77,in the corresponding period of 2022.
Balance Sheet and Cash Flow
As of June 30,the Company had cash and cash equivalents and short-term investments of RMB23.34 billion (US$3.22 billion). Net cash provided by operating activities in the second quarter of 2023 was RMB522.0 million (US$72.0 million).
Employees
The Company had 5,500 employees as of June 30,including 2,177 employees from TTP Car,Inc.
Conference Call Information
The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on Thursday,2023 (8:00 PM Beijing Time on the same day).
Please register in advance of the conference call using the registration link provided below. Upon registering,each participant will receive a set of participant dial-in numbers and a personal PIN,which will be used to join the conference call.
Registration Link: https://register.vevent.com/register/BI7e7200be351a4ab986e67e0b2faeb302
Please use the conference access information to join the call ten minutes before the call is scheduled to begin.
Additionally,a live and archived webcast of the conference call will be available at https://ir.autohome.com.cn and a replay of the webcast will be available following the session.
About Autohome
Autohome Inc. (NYSE: ATHM; HKEX: 2518) is the leading online destination for automobile consumers in China. Its mission is to relentlessly reduce auto industry decision-making and transaction costs driven by advanced technology. Autohome provides occupationally generated content,professionally generated content,user-generated content,and 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 https://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 announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"),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; relevant government policies and regulatory environment of China; 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 and announcements on the website of the Hong Kong Stock Exchange. 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,Non-GAAP basic and diluted EPS and earnings per ADS,Adjusted net margin andAdjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome as net income attributable to Autohome excluding share-based compensation expenses,amortization of intangible assets resulting from business acquisition,investment loss/(gain) relating to non-operating impact of a write-down of the initial investment in a financial product,and loss/(gain) pickup of equity method investments,and impairment of long-term investments,with all the reconciliation items adjusted for related income tax effects. We define non-GAAP basic and diluted EPS as Adjusted Net Income attributable to Autohome divided by the basic and diluted weighted average number of ordinary shares. We define non-GAAP basic and diluted earnings per ADS as Adjusted Net Income attributable to Autohome divided by the basic and diluted weighted average number of ADSs. We define Adjusted net margin as Adjusted Net Income attributable to Autohome divided by total net revenues. We define Adjusted EBITDA as net income attributable to Autohome before income tax expense,depreciation expenses of property and equipment,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 non-cash charges or items that are non-operating in nature. The use of the above non-GAAP financial measures has certain limitations as they excluded certain items that have been and will continue to be incurred in the future,but such items 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 "Unaudited 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
Sterling Song
Investor Relations Director
Tel: +86-10-5985-7483
E-mail: ir@autohome.com.cn
The Piacente Group,Inc.
Jenny Cai
Tel: +86-10-6508-0677
E-mail: autohome@tpg-ir.com
AUTOHOME INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(Amount in thousands,except per share / per ADS data)
For three months endedJune 30,
For six months ended June 30,
2022
2023
2022
2023
RMB
RMB
US$
RMB
RMB
US$
Net revenues:
Media services
530,561
532,005
73,367
797,363
893,473
123,216
Leads generation services
752,813
759,635
104,758
1,461,017
1,440,269
198,622
Online marketplace and others
449,619
541,394
74,662
945,905
1,032,921
142,446
Total net revenues
1,732,993
1,833,034
252,787
3,204,285
3,366,663
464,284
Cost of revenues
(278,864)
(330,227)
(45,540)
(533,881)
(670,441)
(92,458)
Gross profit
1,454,129
1,502,807
207,247
2,670,404
2,696,222
371,826
Operating expenses:
Sales and marketing expenses
(738,729)
(824,081)
(113,646)
(1,330,983)
(1,347,197)
(185,787)
General and administrative
expenses
(126,616)
(90,979)
(12,547)
(263,178)
(240,135)
(33,116)
Product development
expenses
(362,194)
(313,010)
(43,166)
(717,441)
(637,376)
(87,898)
Total operating expenses
(1,227,539)
(1,228,070)
(169,359)
(2,311,602)
(2,224,708)
(306,801)
Other operating income,net
74,661
66,772
9,208
183,685
133,160
18,364
Operating profit
301,251
341,509
47,096
542,487
604,674
83,389
Interest and investment income,
net
149,398
202,813
27,969
240,166
427,828
59,000
Gain/(loss) from equity method
investments
5,882
(1,690)
(233)
(20,347)
(33,125)
(4,568)
Income before income taxes
456,531
542,632
74,832
762,306
999,377
137,821
Income tax expense
(34,108)
(35,796)
(4,936)
(42,148)
(90,477)
(12,477)
Net income
422,423
506,836
69,896
720,158
908,900
125,344
Net (income)/loss attributable to
noncontrolling interests
12,593
(2,102)
(290)
33,106
1,336
184
Net income attributable to
Autohome
435,016
504,734
69,606
753,264
910,236
125,528
Accretion of mezzanine equity
(33,383)
(38,686)
(5,335)
(64,259)
(75,185)
(10,368)
Accretion attributable to
noncontrolling interests
21,743
25,164
3,470
41,861
48,913
6,745
Net income attributable to
ordinary shareholders
423,376
491,212
67,741
730,866
883,964
121,905
Earnings per share for
ordinary shares
Basic
0.85
1.00
0.14
1.45
1.79
0.25
Diluted
0.84
1.00
0.14
1.45
1.79
0.25
Earnings per ADS attributable
to ordinary shareholders
(one ADS equals for four
ordinary shares)
Basic
3.38
3.99
0.55
5.82
7.17
0.99
Diluted
3.38
3.98
0.55
5.81
7.15
0.99
Weighted average shares used to compute
earnings per share attributable to ordinary
shareholders:
Basic
500,676,420
492,534,428
492,428
502,552,188
492,927,049
492,049
Diluted
501,112,704
493,624,704
502,882,428
494,261,429
494,429
AUTOHOME INC.
UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS
(Amount in thousands,except per share / per ADS data)
For three months ended June 30,
2022
2023
2022
2023
RMB
RMB
US$
RMB
RMB
US$
Net income attributable to
Autohome
435,528
Plus: income tax expense
35,448
37,136
5,121
44,829
93,157
12,847
Plus: depreciation of property and
equipment
57,596
42,259
5,828
114,824
90,197
12,439
Plus: amortization of intangible
assets
10,837
10,798
1,489
21,674
21,638
2,984
EBITDA
538,897
594,927
82,044
934,591
1,115,228
153,798
Plus: share-based compensation
expenses
28,396
41,628
5,741
69,257
87,813
12,110
Adjusted EBITDA
567,293
636,555
87,785
1,003,848
1,203,041
165,908
Net income attributable to
Autohome
435,528
Plus: amortization of intangible assets
resulting from business acquisition
10,722
10,722
1,479
21,444
21,444
2,957
Plus: share-based compensation
expenses
28,110
Plus: investment loss arising from one
of financial products[3]
4,021
14,532
2,004
58,441
8,719
1,202
Plus: loss/(gain) on equity method
investments,net
(5,882)
1,690
233
20,347
33,125
4,568
Plus: impairment of long-term
investments
1,696
-
-
1,696
-
-
Plus: tax effects of the adjustments
(1,746)
(3,840)
(530)
(14,693)
(8,360)
(1,153)
Adjusted net income attributable
to Autohome
472,223
569,466
78,533
909,756
1,052,977
145,212
Net income attributable
to Autohome
435,528
Net margin
25.1%
27.5%
27.5%
23.5%
27.0%
27.0%
Adjusted net income attributable
to Autohome
472,212
Adjusted net margin
27.2%
31.1%
31.1%
28.4%
31.3%
31.3%
Non-GAAP earnings per share
Basic
0.94
1.16
0.16
1.81
2.14
0.30
Diluted
0.94
1.15
0.16
1.81
2.13
0.29
Non-GAAP earnings per ADS (one
ADS equals for four ordinary
shares)
Basic
3.77
4.62
0.64
7.24
8.54
1.18
Diluted
3.77
4.61
0.64
7.24
8.52
1.18
Weighted average shares used to
compute non-GAAP earnings
per share:
Basic
500,429
AUTOHOME INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(Amount in thousands,except as noted)
As of
December 31,
As ofJune 30,
2022
2023
RMB
RMB
US$
ASSETS
Current assets
Cash and cash equivalents
2,801,299
2,939,867
405,426
Restricted cash
9,175
787
109
Short-term investments
19,279,592
20,395,204
2,812,627
Accounts receivable,net
1,699
1,499,340
206,768
Amounts due from related parties,current
49,644
26,305
3,628
Prepaid expenses and other current assets
357,522
517,270
71,335
Total current assets
24,424,931
25,378,773
3,893
Non-current assets
Restricted cash,non-current
5,000
5,000
690
Property and equipment,net
255,298
195,193
26,918
Goodwill and intangible assets,net
4,220,305
4,181,109
576,601
Long-term investments
419,208
386,083
53,243
Deferred tax assets
265,606
265,070
36,555
Amounts due from related parties,non-current
9,419
17,797
2,454
Other non-current assets
116,052
198,241
27,339
Total non-current assets
5,290,888
5,248,493
723,800
Total assets
29,715,819
30,627,266
4,223,693
LIABILITIES AND EQUITY
Current liabilities
Accrued expenses and other payables
2,537,281
2,250,807
310,401
Advance from customers
96,047
108,454
14,956
Deferred revenue
1,147,131
1,788,235
246,609
Income tax payable
251,121
257,487
35,509
Amounts due to related parties
27,096
22,673
3,127
Total current liabilities
4,058,676
4,427,656
610,602
Non-current liabilities
Other liabilities
50,591
98,209
13,544
Deferred tax liabilities
517,926
502,941
69,359
Total non-current liabilities
568,517
601,150
82,903
Total liabilities
4,193
5,028,806
693,505
MEZZANINE EQUITY
Convertible redeemable noncontrolling interests
1,605,639
1,680,824
231,796
EQUITY
Total Autohome shareholders' equity
23,888,842
24,373,717
3,361,288
Noncontrolling interests
(405,855)
(456,081)
(62,896)
Total equity
23,482,987
23,917,636
3,298,392
Total liabilities,mezzanine equity and equity
29,693
[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 ("US$"). Unless otherwise noted,all conversions from RMB to US$ are translated at the noon buying rate of US$1.00 to RMB7.2513 on June 30,2023 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been,or could be,converted into US$ at such rate.
[2] For more information on this and other non-GAAP financial measures,please see the section captioned "Use of Non-GAAP Financial Measures" and the tables captioned "Unaudited Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this release.
[3]It represented the loss of an investment with fair value below its initial investment,which was recognized at "interest and investment income,net". The impact was considered to be not directly related to the Company's operating activities.
