Autohome Inc. Announces Unaudited 2023 Second Quarter and Interim Financial Results

BEIJING, July 27, 2023 /PRNewswire/ -- 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 2023 Highlights^[1]

• Net Revenues in the second 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 second quarter of 2023 was RMB504.7 million (US$69.6 million), compared to RMB435.0 million in the corresponding period of 2022, and net income attributable to ordinary shareholders in the second quarter of 2023 was RMB491.2 million (US$67.7 million), compared to RMB423.4 million in the corresponding period of 2022.
• Adjusted Net Income attributable to Autohome (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 4,697,330 American 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 advanced our 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 RMB1,833.0 million (US$252.8 million), compared to RMB1,733.0 million in the corresponding period of 2022.

• Media services revenues 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 revenues were 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 were RMB541.4 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, compared to RMB1,227.5 million in the corresponding period of 2022.

• Sales and marketing expenses 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 in marketing and promotional spending. Share-based compensation expense included in sales and marketing expenses in the second quarter of 2023 was RMB12.3 million (US$1.7 million), 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 expense included in general and administrative expenses in the second quarter of 2023 was RMB8.9 million (US$1.2 million), compared to RMB10.1 million in the corresponding period of 2022.
• Product development expenses were RMB313.0 million (US$43.2 million) 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 expense included in product 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 Ordinary Shareholders and 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, respectively, in the corresponding period of 2022. Basic and diluted earnings per ADS were RMB3.99 (US$0.55) and RMB3.98 (US$0.55), respectively, in the second quarter of 2023, compared to basic and diluted earnings per ADS of RMB3.38 and RMB3.38, respectively, 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), respectively, in the second quarter of 2023, compared to non-GAAP basic and diluted EPS of RMB0.94 and RMB0.94, respectively, 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), respectively, in the second quarter of 2023, compared to non-GAAP basic and diluted earnings per ADS of RMB3.77 and RMB3.77, respectively, in the corresponding period of 2022.

Balance Sheet and Cash Flow

As of June 30, 2023, 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, 2023, 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, July 27, 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 and Adjusted 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 ended June 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		492,534,428			502,552,188				492,927,049			492,927,049
Diluted	501,112,704		493,624,704		493,624,704			502,882,428				494,261,429			494,261,429

 

 

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,						For six months ended June 30,
		2022		2023				2022		2023
		RMB		RMB		US$		RMB		RMB		US$
	Net income attributable to     Autohome	435,016		504,734		69,606		753,264		910,236		125,528
	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	435,016		504,734		69,606		753,264		910,236		125,528
	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	28,396		41,628		5,741		69,257		87,813		12,110
	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	435,016		504,734		69,606		753,264		910,236		125,528
	Net margin	25.1 %		27.5 %		27.5 %		23.5 %		27.0 %		27.0 %
	Adjusted net income attributable     to Autohome	472,223		569,466		78,533		909,756		1,052,977		145,212
	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	500,676,420		492,534,428		492,534,428		502,552,188		492,927,049		492,927,049
	Diluted	501,112,704		493,624,704		493,624,704		502,882,428		494,261,429		494,261,429

 

AUTOHOME INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(Amount in thousands, except as noted)
	As of December 31,		As of June 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	1,927,699		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		3,499,893
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	4,627,193		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	29,715,819		30,627,266		4,223,693

 

[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.

 

View original content:https://www.prnewswire.com/news-releases/autohome-inc-announces-unaudited-2023-second-quarter-and-interim-financial-results-301887184.html

SOURCE Autohome Inc.