Autohome Inc. Announces Unaudited First Quarter 2024 Financial Results

Rhea-AI Summary

Autohome Inc. announced its unaudited financial results for the first quarter of 2024, reporting net revenues of RMB1,609.1 million and net income attributable to Autohome of RMB394.5 million. The company highlighted sustained revenue growth, user-base expansion, and successful business initiatives. Autohome remains committed to delivering premium products and services while leveraging unique resources to enhance long-term competitiveness.

Positive

• Net revenues increased to RMB1,609.1 million in the first quarter of 2024, compared to RMB1,533.6 million in the same period of 2023.

• Adjusted net income attributable to Autohome (Non-GAAP) rose to RMB493.9 million in the first quarter of 2024, up from RMB483.5 million in the corresponding period of 2023.

• Autohome saw sustained revenue growth, consistent user-base expansion, and successful deployment of new business initiatives.

• Revenues from data products and NEV brands continued strong growth trajectories.

• The company's new retail business enhanced revenue sources and bolstered the topline.

Negative

• Net income attributable to Autohome decreased to RMB394.5 million in the first quarter of 2024, from RMB405.5 million in the corresponding period of 2023.

• Operating expenses increased to RMB1,126.9 million in the first quarter of 2024, up from RMB996.6 million in the same period of 2023.

• Sales and marketing expenses rose to RMB641.3 million in the first quarter of 2024, compared to RMB523.1 million in the corresponding period of 2023.

• General and administrative expenses remained relatively stable at RMB149.5 million in the first quarter of 2024.

• Income tax expense increased to RMB68.4 million in the first quarter of 2024, from RMB54.7 million in the corresponding period of 2023.

Insights

Financial Analyst

The financial results of Autohome Inc. depict a mixed performance in the first quarter of 2024. While net revenues have marginally increased from RMB 1,533.6 million to RMB 1,609.1 million, there's been a slight decrease in net income attributable to Autohome from RMB 405.5 million to RMB 394.5 million. An interesting point is the growth in leads generation services, which could signal a strategic pivot or response to market demands. Observing the operational efficiency, there has been a reduction in cost of revenues, potentially indicating improved margins or cost-saving measures. The increased marketing expenses are noteworthy, possibly reflecting a more aggressive customer acquisition strategy. In terms of adjusted net income (Non-GAAP), a modest growth suggests the underlying business performance remains stable. The cash and equivalents position is robust, which provides the company with strategic flexibility. However, as a retail investor, the diluted EPS decrease, even though slight, could raise concerns about the stock's earning potential.

Market Research Analyst

Autohome's reported user-base growth is an encouraging indicator of its market presence, particularly when considering the 8.1% YoY growth rate of mobile daily active users. This aligns with the firm's content-focused strategy and is important in the internet services sector where user engagement translates into revenue opportunities. The expansion of Autohome Space and the 'trade-in for new' policy initiatives are strategic moves aimed at capturing evolving consumer trends in China's auto market. The focus on new energy vehicle (NEV) brands and the collaboration with Ping An Group suggest a pursuit of synergistic relationships and a diversified revenue stream. While these strategies may strengthen the company's long-term position, it's important to monitor how they translate into financial performance moving forward.

Tech Industry Analyst

Autohome's performance indicates resilience in a competitive tech landscape. User growth, especially in the mobile segment, is critical for online platforms and a key driver for advertising and transaction-based revenues. The company's investment in new retail business outlets, specifically Autohome Space stores, is an innovative blend of online and offline automotive retail, which could enhance customer experience and expand market reach. Furthermore, Autohome's engagement with NEV brands is opportunistic given the booming electric vehicle market in China. Investors should watch for the company's ability to convert these initiatives into a sustainable competitive advantage, particularly through the use of data products that can capitalize on the company's extensive user metrics.

BEIJING, May 8, 2024 /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 ended March 31, 2024.

First Quarter 2024 Highlights^[1]

• Net revenues in the first quarter of 2024 were RMB1,609.1 million (US$222.9 million), compared to RMB1,533.6 million in the corresponding period of 2023.
• Net income attributable to Autohome in the first quarter of 2024 was RMB394.5 million (US$54.6 million), compared to RMB405.5 million in the corresponding period of 2023, while net income attributable to ordinary shareholders in the first quarter of 2024 was RMB379.8 million (US$52.6 million), compared to RMB392.8 million in the corresponding period of 2023.
• Adjusted net income attributable to Autohome (Non-GAAP)^[2] in the first quarter of 2024 was RMB493.9 million (US$68.4 million), compared to RMB483.5 million in the corresponding period of 2023.

Mr. Tao Wu, Chief Executive Officer of Autohome, stated, "We are delighted to report a solid start to the year, characterized by sustained revenue growth, consistent expansion in our user-base, and the successful deployment of our new business initiatives. For our users, according to QuestMobile, average mobile daily active users grew by 8.1% year-over-year to 69.39 million in March, highlighting the effectiveness of our content-focused strategy on attracting users. For our innovative businesses, Autohome Space is expanding further geographically, with a number of new franchise stores on track to open this year. In addition, we actively responded to the national "trade-in for new" policy, launching a series of initiatives such as the "Hundred Cities 'Trade-in for New' Car-Buying Festival"—in collaboration with Ping An Group—allowing consumers to enjoy even more benefits. Going forward, we will continue to build upon our solid business fundamentals and leverage Ping An Group's unique resources to strengthen our long-term competitiveness in the industry."

Mr. Craig Yan Zeng, Chief Financial Officer of Autohome, added, "We delivered solid financial results in the first quarter of 2024, reflecting the successful execution of our key growth strategies. Revenues from our data products continued their strong upward growth trajectory, while revenues from new energy vehicle ("NEV") brands remained robust, with a quarterly growth rate that consistently outpaces the broader industry. Our new retail business also bolstered our topline, enhancing our revenue sources. Moving ahead, we remain committed to delivering a diverse array of premium products and services, while generating sustainable long-term returns for our shareholders."

Unaudited First Quarter 2024 Financial Results 

Net Revenues

Net revenues in the first quarter of 2024 were RMB1,609.1 million (US$222.9 million), compared to RMB1,533.6 million in the corresponding period of 2023.

• Media services revenues were RMB327.4 million (US$45.3 million) in the first quarter of 2024, compared to RMB361.5 million in the corresponding period of 2023.
• Leads generation services revenues were RMB726.4 million (US$100.6 million) in the first quarter of 2024, compared to RMB680.6 million in the corresponding period of 2023.
• Online marketplace and others revenues were RMB555.2 million (US$76.9 million) in the first quarter of 2024, compared to RMB491.5 million in the corresponding period of 2023.

Cost of Revenues

Cost of revenues was RMB300.9 million (US$41.7 million) in the first quarter of 2024, compared to RMB340.2 million in the corresponding period of 2023. Share-based compensation expenses included in the cost of revenues in the first quarter of 2024 was RMB0.9 million (US$0.1 million), compared to RMB2.1 million in the corresponding period of 2023.

Operating Expenses

Operating expenses were RMB1,126.9 million (US$156.1 million) in the first quarter of 2024, compared to RMB996.6 million in the corresponding period of 2023.

• Sales and marketing expenses were RMB641.3 million (US$88.8 million) in the first quarter of 2024, compared to RMB523.1 million in the corresponding period of 2023, due primarily to an increase in marketing and promotional expenses. Share-based compensation expenses included in the sales and marketing expenses in the first quarter of 2024 were RMB12.8 million (US$1.8 million), compared to RMB10.0 million in the corresponding period of 2023.
• General and administrative expenses were RMB149.5 million (US$20.7 million) in the first quarter of 2024, compared to RMB149.2 million in the corresponding period of 2023. Share-based compensation expenses included in the general and administrative expenses in the first quarter of 2024 were RMB12.0 million (US$1.7 million), compared to RMB12.3 million in the corresponding period of 2023.
• Product development expenses were RMB336.1 million (US$46.5 million) in the first quarter of 2024, compared to RMB324.4 million in the corresponding period of 2023. Share-based compensation expense included in the product development expenses in the first quarter of 2024 were RMB22.6 million (US$3.1 million), compared to RMB21.7 million in the corresponding period of 2023.

Operating Profit

Operating profit was RMB276.1 million (US$38.2 million) in the first quarter of 2024, compared to RMB263.2 million in the corresponding period of 2023.

Income Tax Expense

Income tax expense was RMB68.4 million (US$9.5 million) in the first quarter of 2024, compared to an income tax expense of RMB54.7 million in the corresponding period of 2023.

Net Income Attributable to Autohome

Net income attributable to Autohome was RMB394.5 million (US$54.6 million) in the first quarter of 2024, compared to RMB405.5 million in the corresponding period of 2023.

Net Income Attributable to Ordinary Shareholders and Earnings per Share/ADS

Net income attributable to ordinary shareholders was RMB379.8 million (US$52.6 million) in the first quarter of 2024, compared to RMB392.8 million in the corresponding period of 2023. Basic and diluted earnings per share ("EPS") were RMB0.78 (US$0.11) and RMB0.78 (US$0.11), respectively, in the first quarter of 2024, compared to basic and diluted EPS of RMB0.80 and RMB0.79, respectively, in the corresponding period of 2023. Basic and diluted earnings per ADS were RMB3.14 (US$0.43) and RMB3.13 (US$0.43), respectively, in the first quarter of 2024, compared to basic and diluted earnings per ADS of RMB3.18 and RMB3.17, respectively, in the corresponding period of 2023.

Adjusted Net Income Attributable to Autohome (Non-GAAP) and Non-GAAP EPS/ADS

Adjusted net income attributable to Autohome (Non-GAAP) was RMB493.9 million (US$68.4 million) in the first quarter of 2024, compared to RMB483.5 million in the corresponding period of 2023. Non-GAAP basic and diluted EPS were RMB1.02 (US$0.14) and RMB1.02 (US$0.14), respectively, in the first quarter of 2024, compared to non-GAAP basic and diluted EPS of RMB0.98 and RMB0.98, respectively, in the corresponding period of 2023. Non-GAAP basic and diluted earnings per ADS were RMB4.08 (US$0.57) and RMB4.07 (US$0.56), respectively, in the first quarter of 2024, compared to non-GAAP basic and diluted earnings per ADS of RMB3.92 and RMB3.91, respectively, in the corresponding period of 2023.

Balance Sheet and Cash Flow

As of March 31, 2024, the Company had cash and cash equivalents and short-term investments of RMB23.65 billion (US$3.27 billion). Net cash provided by operating activities in the first quarter of 2024 was RMB560.8 million (US$77.7 million).

Employees 

The Company had 5,420 employees as of March 31, 2024, including 2,092 employees from TTP Car, Inc.

Conference Call Information

The Company will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on Wednesday, May 8, 2024 (8:00 p.m. 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/BI2fcb0a45d64545c6a343681516211406

Please use the conference access information to join the call 10 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. 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, 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:

Autohome Inc.
Investor Relations
Sterling Song
Investor Relations Director
Tel: +86-10-5985-7483
E-mail: ir@autohome.com.cn

Christensen China Limited
Suri Cheng
Tel: +86-185-0060-8364
E-mail: suri.cheng@christensencomms.com

 

AUTOHOME INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(Amount in thousands, except per share / per ADS data)
		For three months ended March 31,
		2023			2024
		RMB			RMB		US$
Net revenues:
Media services		361,468			327,431		45,349
Leads generation services		680,634			726,423		100,608
Online marketplace and others		491,527			555,211		76,896
Total net revenues		1,533,629			1,609,065		222,853
Cost of revenues		(340,214)			(300,892)		(41,673)
Gross profit		1,193,415			1,308,173		181,180
Operating expenses:
Sales and marketing expenses		(523,116)			(641,276)		(88,816)
General and administrative expenses		(149,156)			(149,545)		(20,712)
Product development expenses		(324,366)			(336,067)		(46,545)
Total operating expenses		(996,638)			(1,126,888)		(156,073)
Other operating income, net		66,388			94,793		13,129
Operating profit		263,165			276,078		38,236
Interest and investment income, net		225,015			219,974		30,466
Loss from equity method investments		(31,435)			(49,133)		(6,805)
Income before income taxes		456,745			446,919		61,897
Income tax expense		(54,681)			(68,401)		(9,473)
Net income		402,064			378,518		52,424
Net loss attributable to noncontrolling interests		3,438			15,981		2,213
Net income attributable to Autohome		405,502			394,499		54,637
Accretion of mezzanine equity		(36,499)			(41,671)		(5,771)
Accretion attributable to noncontrolling interests		23,749			26,948		3,732
Net income attributable to ordinary shareholders		392,752			379,776		52,598
Earnings per share for ordinary shares
Basic		0.80			0.78		0.11
Diluted		0.79			0.78		0.11
Earnings per ADS attributable to ordinary shareholders    (one ADS equals for four ordinary shares)
Basic		3.18			3.14		0.43
Diluted		3.17			3.13		0.43
Weighted average shares used to compute earnings per share attributable to ordinary shareholders:
Basic		493,324,032			484,278,900		484,278,900
Diluted		494,826,708			485,253,760		485,253,760

 

AUTOHOME INC.
UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS
(Amount in thousands, except per share / per ADS data)
			For three months ended March 31,
			2023		2024
			RMB		RMB		US$
	Net income attributable to Autohome		405,502		394,499		54,637
	Plus: income tax expense		56,021		69,742		9,659
	Plus: depreciation of property and equipment		47,938		33,534		4,644
	Plus: amortization of intangible assets		10,840		9,650		1,337
	EBITDA		520,301		507,425		70,277
	Plus: share-based compensation    expenses		46,185		48,307		6,690
	Adjusted EBITDA		566,486		555,732		76,967
	Net income attributable to Autohome		405,502		394,499		54,637
	Plus: amortization of intangible assets resulting from business    acquisition		10,722		9,583		1,327
	Plus: share-based compensation    expenses		46,185		48,307		6,690
	Plus: investment loss/(gain) arising from one of financial products[3]		(5,813)		-		-
	Plus: loss on equity method investments, net		31,435		49,133		6,805
	Plus: tax effects of the adjustments		(4,520)		(7,594)		(1,052)
	Adjusted net income attributable to Autohome		483,511		493,928		68,407
	Net income attributable to Autohome		405,502		394,499		54,637
	Net margin		26.4 %		24.5 %		24.5 %
	Adjusted net income attributable to Autohome		483,511		493,928		68,407
	Adjusted net margin		31.5 %		30.7 %		30.7 %
	Non-GAAP earnings per share
	Basic		0.98		1.02		0.14
	Diluted		0.98		1.02		0.14
	Non-GAAP earnings per ADS (one ADS equals for four ordinary shares)
	Basic		3.92		4.08		0.57
	Diluted		3.91		4.07		0.56
	Weighted average shares used to compute non-GAAP earnings     per share:
	Basic		493,324,032		484,278,900		484,278,900
	Diluted		494,826,708		485,253,760		485,253,760

 

AUTOHOME INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(Amount in thousands, except as noted)
		As of December 31,		As of March 31,
		2023		2024
		RMB		RMB		US$
ASSETS
Current assets
Cash and cash equivalents		4,996,353		2,870,271		397,528
Restricted cash		126,794		152,730		21,153
Short-term investments		18,552,354		20,775,926		2,877,433
Accounts receivable, net		1,472,489		1,337,141		185,192
Amounts due from related parties, current		16,439		66,962		9,274
Prepaid expenses and other current assets		360,559		437,926		60,652
Total current assets		25,524,988		25,640,956		3,551,232
Non-current assets
Restricted cash, non-current		5,000		5,000		692
Property and equipment, net		200,860		189,714		26,275
Goodwill and intangible assets, net		4,143,968		4,125,383		571,359
Long-term investments		448,341		399,208		55,290
Deferred tax assets		295,598		295,598		40,940
Amounts due from related parties, non-current		16,048		13,877		1,922
Other non-current assets		200,928		186,645		25,850
Total non-current assets		5,310,743		5,215,425		722,328
Total assets		30,835,731		30,856,381		4,273,560
LIABILITIES AND EQUITY
Current liabilities
Accrued expenses and other payables		2,932,227		2,528,006		350,125
Advance from customers		105,379		109,485		15,163
Deferred revenue		801,581		1,189,742		164,777
Income tax payable		227,260		284,658		39,425
Amounts due to related parties		24,572		27,767		3,846
Dividends payable		984,332		536,760		74,340
Total current liabilities		5,075,351		4,676,418		647,676
Non-current liabilities
Other liabilities		89,187		77,363		10,715
Deferred tax liabilities		497,955		495,708		68,655
Total non-current liabilities		587,142		573,071		79,370
Total liabilities		5,662,493		5,249,489		727,046
MEZZANINE EQUITY
Convertible redeemable noncontrolling interests		1,758,933		1,800,604		249,381
EQUITY
Total Autohome shareholders' equity		23,928,187		24,363,089		3,374,249
Noncontrolling interests		(513,882)		(556,801)		(77,116)
Total equity		23,414,305		23,806,288		3,297,133
Total liabilities, mezzanine equity and equity		30,835,731		30,856,381		4,273,560

 

[1] The reporting currency of the Company is Renminbi ("RMB"). For readers' convenience, 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$1.00 to RMB7.2203 on March 29, 2024 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ 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 or gain 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-first-quarter-2024-financial-results-302139193.html

SOURCE Autohome Inc.

FAQ

What were Autohome Inc.'s net revenues in the first quarter of 2024?

Autohome Inc. reported net revenues of RMB1,609.1 million in the first quarter of 2024.

How did Autohome Inc.'s net income in the first quarter of 2024 compare to the same period in 2023?

Autohome Inc.'s net income attributable to Autohome decreased to RMB394.5 million in the first quarter of 2024, from RMB405.5 million in the corresponding period of 2023.

What is the conference call schedule for Autohome Inc.'s earnings release?

Autohome Inc. will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on Wednesday, May 8, 2024 (8:00 p.m. Beijing Time on the same day).

Where can participants register for Autohome Inc.'s earnings conference call?

Participants can register for the conference call using the registration link provided: https://register.vevent.com/register/BI2fcb0a45d64545c6a343681516211406