BEIJING, Nov. 28, 2016 /PRNewswire/ -- Leju Holdings Limited
("Leju" or the "Company") (NYSE: LEJU), a leading online-to-offline ("O2O") real estate services provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2016.
Third Quarter 2016 Financial Highlights
- Total revenues increased by 21% year-on-year to $183.3 million
- Revenues from e-commerce services increased by 35% year-on-year to $143.8 million
- Revenues from online advertising services decreased by 15% year-on-year to $33.6
million
- Revenues from listing services increased by 9% year-on-year to $5.9 million
- Non-GAAP[1] income from operations increased by 26% year-on-year to $33.6 million
- Non-GAAP net income attributable to Leju shareholders increased by 9% year-on-year to $23.1
million, or $0.17 per diluted American depositary share ("ADS")
[1] Leju uses in this press release the following non-GAAP financial
measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju
shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss)
attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense and
amortization of intangible assets resulting from business acquisitions. See "About Non-GAAP Financial Measures" and
"Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures
included in this press release.
|
First Nine Months 2016 Financial Highlights
- Total revenues increased by 13% year-on-year to $454.6 million
- Revenues from e-commerce services increased by 20% year-on-year to $348.2 million
- Revenues from online advertising services decreased by 8% year-on-year to $89.8
million
- Revenues from listing services increased by 16% year-on-year to $16.7 million
- Non-GAAP income from operations decreased by 10% year-on-year to $42.7 million
- Non-GAAP net income attributable to Leju shareholders decreased by 16% year-on-year to $33.0
million, or $0.24 per diluted ADS
"We are pleased to report solid third quarter results as Leju delivered healthy revenue growth as well as profit margin
improvement," said Mr. Geoffrey He, Leju's chief executive officer. "Operationally, we maintained
our position as a leader in e-commerce services in the primary market with a new company record for the number of coupons sold,
expanded our secondary listing services platform with 270 newly launched local websites, and continued to invest in our home
furnishing business with a focus on the contractor platform Qiang Gong Zhang (7gz.com). Financially, we continued to generate
strong positive cash flows and further improved our profit margins in the third quarter. We believe these results demonstrate the
success of our strategy and the value our platform provides for our developer clients and homebuyers."
"Robust transaction volumes and rapidly rising home prices over the first three quarters of 2016 have led to another wave of
aggressive tightening measures in the first weeks of October by local governments in more than 20 cities," continued Mr. He. "In addition to reinstating restrictions on purchases and mortgage loans and raising down
payment requirements, the governments in many cities also imposed price ceilings, slowed the pace of issuing pre-sale
permits and enforced strict limits on project advertising and other forms of marketing. The combination of tightening policies
and close scrutiny of marketing practices had an immediate cooling effect on transaction levels and demand for marketing
services, and we expect it will have a significant impact on our e-commerce and online
advertising businesses in the fourth quarter. However, we do not believe that the fundamental market demand and supply structure
will be affected by these policies in the long run, and we believe that after this period of market correction, Leju will be able
to further distinguish its strategy and platform services to generate future growth."
Third Quarter 2016 Results
Total revenues were $183.3million, an increase of 21% from $151.2 million for the same quarter of 2015, mainly driven by revenue growth from e-commerce services and
listing services, partially offset by the decrease of online advertising services.
Revenues from e-commerce services were $143.8 million, an increase of 35% from
$106.4 million for the same quarter of 2015, primarily due to an increase in the average price per
discount coupon redeemed, partially offset by the decrease in the number of discount coupons redeemed.
Revenues from online advertising services were $33.6 million, a decrease of
15% from $39.4 million for the same quarter of 2015, primarily due to a decrease in property
developers' online advertising demand.
Revenues from listing services were $5.9 million, an increase of 9% from
$5.4 million for the same quarter of 2015, primarily due to growth in secondary home sales.
Cost of revenues was $15.2 million, relatively flat compared to $15.3 million for the same quarter of 2015, primarily due to decreased amortization of intangible assets
consisting of exclusive rights that expired in December 2015, partially offset by increased cost on
advertising resources purchased from Sina.
Selling, general and administrative expenses were $142.8 million, an increase
of 21% from $117.5 million for the same quarter of 2015, primarily due to increased marketing
expenses related to the Company's e-commerce business as a result of its efforts to maintain its market share in the increasingly
competitive market as well as increased marketing expenses related to the promotion of the Company's listing business and home
furnishing business.
Income from operations was $26.8 million, an increase of 29% from $20.8 million for the same quarter of 2015. Non-GAAP income from operations was $33.6 million, an increase of 26% from $26.7 million for the same quarter of
2015.
Net income was $17.2 million, an increase of 9% from $15.8 million for the same quarter of 2015. Non-GAAP net income was $23.2 million, an increase of 11% from $20.9 million for the same quarter of
2015.
Net income attributable to Leju shareholders was $17.1
million, or $0.13 per diluted ADS, an increase of 7% from $16.0
million, or $0.12 per diluted ADS, for the same quarter of 2015. Non-GAAP net
income attributable to Leju shareholders was $23.1 million, or $0.17 per diluted ADS, an increase of 9% from $21.1 million, or $0.16 per diluted ADS, for the same quarter of 2015.
First Nine Months 2016 Results
Total revenues were $454.6 million, an increase of 13% from $402.4 million for the same period of 2015, mainly driven by growth of revenues from e-commerce services and
listing services, partially offset by the decrease of online advertising services.
Revenues from e-commerce services were $348.2 million, an increase of 20% from
$290.9 million for the same period of 2015, primarily due to an increase in the average price per
discount coupon redeemed, partially offset by the decrease in the number of discount coupons redeemed.
Revenues from online advertising services were $89.8 million, a decrease of 8%
from $97.2 million for the same period of 2015, primarily due to a decrease in property developers'
online advertising demand.
Revenues from listing services were $16.7 million, an increase of 16% from
$14.4 million for the same period of 2015, primarily due to the growth in secondary home
sales.
Cost of revenues was $43.5 million, a decrease of 5% from $45.8 million for the same period of 2015, primarily due to decreased amortization of intangible assets
consisting of exclusive rights that expired in December 2015, partially offset by the increased
resource cost purchased from Sina.
Selling, general and administrative expenses were $390.4 million, an increase
of 18% from $331.2 million for the same period of 2015, primarily due to increased marketing
expenses related to the growth of the Company's e-commerce business as a result of its efforts to maintain its market share in
the increasingly competitive market as well as increased marketing expenses related to the promotion of the Company's listing
business and home furnishing business.
Income from operations was $23.0 million, a decrease of 18% from $28.3 million for the same period of 2015. Non-GAAP income from operations was $42.7 million, a decrease of 10% from $47.3 million for the same period of
2015.
Net income was $14.8 million, a decrease of 33% from $22.0 million for the same period of 2015. Non-GAAP net income was $32.1 million, a decrease of 17% from $38.7 million for the same period of
2015.
Net income attributable to Leju shareholders was $15.7
million, or $0.12 per diluted ADS, a decrease of 31% from $22.6
million, or $0.17 per diluted ADS, for the same period of 2015. Non-GAAP net
income attributable to Leju shareholders was $33.0 million, or $0.24 per diluted ADS, a decrease of 16% from $39.3 million, or $0.29 per diluted ADS, for the same period of 2015.
Cash Flow
As of September 30, 2016, the Company's cash and cash equivalents balance was
$317.0 million.
Third quarter 2016 net cash provided by operating activities was $46.9
million, mainly attributable to non-GAAP net income of $23.2 million, a decrease in customer
deposits of $2.1 million, a decrease in accounts receivable of $1.9
million, an increase in income tax payable and other tax payable of $12.1 million, and an
increase in accrued payable and welfare expenses of $3.3 million.
Business Outlook
The Company is now revising its fiscal 2016 total revenue guidance to approximately $510 million to
$530 million, which would represent a decrease of approximately 8% to 11% from $575.8
million in 2015. This forecast reflects the Company's current and preliminary view, which is subject to change.
Conference Call Information
Leju's management will host an earnings conference call on November 28, 2016 at 7 a.m. U.S. Eastern Time (8 p.m. Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
U.S./International:
|
+1-855-298-3404
|
Hong Kong:
|
+852-5808-3202
|
Mainland China:
|
+400-120-0539
|
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is
"Leju earnings call."
A replay of the conference call may be accessed by phone at the following number until December 5,
2016:
U.S./International:
|
+1-866-846-0868
|
Hong Kong:
|
+ 800-966-697
|
Mainland China:
|
+ 400-184-2240
|
Passcode:
|
1314691
|
Additionally, a live and archived webcast will be available at http://ir.leju.com.
About Leju
Leju Holdings Limited ("Leju") (NYSE: LEJU) is a leading online-to-offline, or O2O, real estate services provider in
China, offering real estate e-commerce, online advertising and online listing services. Leju's
integrated online platform comprises various mobile applications along with local websites covering more than 370 cities,
enhanced by complementary offline services to facilitate residential property transactions. In addition to the Company's own
websites, Leju operates the real estate and home furnishing websites of SINA Corporation, and maintains a strategic
partnership with Tencent Holdings Limited. For more information about Leju, please visit
http://ir.leju.com.
Safe Harbor: Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements
can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates,"
"target," "going forward," "outlook" and similar statements. Leju may also make written or oral forward-looking statements in its
reports filed or furnished with the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements about Leju's beliefs and expectations, are forward-looking
statements that involve inherent risks and uncertainties. A number of important factors could cause actual results to differ
materially from those contained, either expressly or impliedly, in any of the forward-looking statements. Such factors include,
but are not limited to, fluctuations in China's real estate market; the highly regulated nature of, and government
measures affecting, the real estate and internet industries in China; Leju's ability to compete successfully against current
and future competitors; its ability to continue to develop and expand its content, service offerings and features, and to develop
or incorporate the technologies that support them; its reliance on SINA, Tencent, Baidu, and others
with which it has developed, or may develop in the future, strategic partnerships; substantial revenue contribution from a
limited number of real estate markets; complexities resulting from its ongoing relationships with E-House, due to E-House's
controlling interest in Leju and Leju's reliance on E-House for various corporate services; and relevant government policies and
regulations relating to the corporate structure, business and industry of Leju. Further information regarding these and other
risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All
information provided in this press release is current as of the date of the press release, and the Company does not undertake any
obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required
under applicable law.
About Non-GAAP Financial Measures
To supplement Leju's consolidated financial results presented in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from
operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to
Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which
excludes share-based compensation expense and amortization of intangible assets resulting from business acquisitions. The
presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures,
please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press
release.
Leju believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding its
operating performance by excluding share-based compensation expense, and amortization of intangible assets resulting from
business acquisitions, which may not be indicative of Leju's operating performance. These non-GAAP financial measures also
facilitate management's internal comparisons to Leju's historical performance and assist its financial and operational decision
making. A limitation of using these non-GAAP financial measures is that share-based compensation expense and amortization of
intangible assets resulting from business acquisitions may continue to exist in Leju's business for the foreseeable future.
Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each
non-GAAP measure. The accompanying tables provide more details on the reconciliation between non-GAAP financial measures and
their most comparable GAAP financial measures.
For investor and media inquiries please contact:
Ms. Annie Huang
Leju Holdings Limited
Phone: +86 (10) 5895-1062
E-mail: ir@leju.com
Philip Lisio
Foote Group
Phone: +86 (10) 8429-9544
E-mail: phil@thefootegroup.com
LEJU HOLDINGS LIMITED
|
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
(In thousands of U.S. dollars)
|
|
|
|
December 31,
|
|
September 30,
|
|
|
2015
|
|
2016
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
260,296
|
|
317,020
|
Accounts receivable, net
|
|
113,991
|
|
100,260
|
Marketable securities
|
|
-
|
|
2,191
|
Deferred tax assets, net
|
|
31,074
|
|
30,217
|
Prepaid expenses and other current assets
|
|
20,881
|
|
17,804
|
Customer deposits
|
|
58,833
|
|
41,696
|
Amounts due from related parties
|
|
9
|
|
2,323
|
Total current assets
|
|
485,084
|
|
511,511
|
Property and equipment, net
|
|
6,801
|
|
7,453
|
Intangible assets, net
|
|
90,737
|
|
81,486
|
Investment in affiliates
|
|
669
|
|
438
|
Goodwill
|
|
39,807
|
|
39,467
|
Other non-current assets
|
|
3,740
|
|
3,911
|
Total assets
|
|
626,838
|
|
644,266
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
|
327
|
|
1,602
|
Accrued payroll and welfare expenses
|
|
45,692
|
|
42,374
|
Income tax payable
|
|
66,815
|
|
65,562
|
Other tax payable
|
|
31,930
|
|
29,465
|
Amounts due to related parties
|
|
10,214
|
|
8,311
|
Advance from customers and deferred revenue
|
|
5,703
|
|
6,613
|
Accrued marketing and advertising expenses
|
|
3,915
|
|
17,651
|
Consideration payable of acquiring non-controlling interest
|
|
7,339
|
|
168
|
Other current liabilities
|
|
7,672
|
|
8,979
|
Total current liabilities
|
|
179,607
|
|
180,725
|
Deferred tax liabilities
|
|
22,998
|
|
22,363
|
Total liabilities
|
|
202,605
|
|
203,088
|
Equity
|
|
|
|
|
Ordinary shares ($0.001 par value): 500,000,000 shares
authorized, 134,930,870 and 135,283,958 shares issued
and outstanding, as of December 31, 2015 and September
30, 2016, respectively
|
|
135
|
|
135
|
Additional paid-in capital
|
|
773,766
|
|
782,436
|
Accumulated deficit
|
|
(343,658)
|
|
(328,823)
|
Subscription receivables
|
|
(9)
|
|
-
|
Accumulated other comprehensive income
|
|
(5,522)
|
|
(11,052)
|
Total Leju equity
|
|
424,712
|
|
442,696
|
Non-controlling interests
|
|
(479)
|
|
(1,518)
|
Total equity
|
|
424,233
|
|
441,178
|
TOTAL LIABILITIES AND EQUITY
|
|
626,838
|
|
644,266
|
LEJU HOLDINGS LIMITED
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of U.S. dollars, except share data and per share
data)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
E-commerce
|
|
106,432
|
|
143,845
|
|
290,851
|
|
348,152
|
Online advertising services
|
|
39,371
|
|
33,555
|
|
97,157
|
|
89,769
|
Listing services
|
|
5,403
|
|
5,902
|
|
14,435
|
|
16,692
|
Total revenues
|
|
151,206
|
|
183,302
|
|
402,443
|
|
454,613
|
Cost of revenues
|
|
(15,305)
|
|
(15,229)
|
|
(45,831)
|
|
(43,465)
|
Selling, general and administrative expenses
|
|
(117,511)
|
|
(142,769)
|
|
(331,247)
|
|
(390,379)
|
Other operating income
|
|
2,382
|
|
1,464
|
|
2,893
|
|
2,274
|
Income from operations
|
|
20,772
|
|
26,768
|
|
28,258
|
|
23,043
|
Investment income (loss)
|
|
-
|
|
1
|
|
-
|
|
(189)
|
Interest income
|
|
260
|
|
373
|
|
903
|
|
925
|
Other income, net
|
|
107
|
|
62
|
|
248
|
|
563
|
Income before taxes and equity in affiliates
|
|
21,139
|
|
27,204
|
|
29,409
|
|
24,342
|
Income tax expense
|
|
(5,244)
|
|
(9,923)
|
|
(7,187)
|
|
(9,342)
|
Income before equity in affiliates
|
|
15,895
|
|
17,281
|
|
22,222
|
|
15,000
|
Loss from equity in affiliates
|
|
(75)
|
|
(80)
|
|
(230)
|
|
(216)
|
Net income
|
|
15,820
|
|
17,201
|
|
21,992
|
|
14,784
|
Less: net income (loss) attributable to non-
controlling interests
|
|
(223)
|
|
102
|
|
(574)
|
|
(879)
|
Net income attributable to Leju shareholders
|
|
16,043
|
|
17,099
|
|
22,566
|
|
15,663
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
0.12
|
|
0.13
|
|
0.17
|
|
0.12
|
Diluted
|
|
0.12
|
|
0.13
|
|
0.17
|
|
0.12
|
Shares used in computation:
|
|
|
|
|
|
|
|
|
Basic
|
|
134,663,857
|
|
135,278,105
|
|
134,448,793
|
|
135,171,280
|
Diluted
|
|
135,308,945
|
|
135,430,377
|
|
136,397,775
|
|
135,279,590
|
|
Note 1
|
The conversion of Renminbi ("RMB") amounts into USD amounts is based on the
rate of USD1 = RMB6.6778 on September 30, 2016 and USD1 = RMB6.5844 for the
nine months ended September 30, 2016
|
LEJU HOLDINGS LIMITED
|
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(In thousands of U.S. dollars)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
Net income
|
|
15,820
|
|
17,201
|
|
21,992
|
|
14,784
|
Other comprehensive income, net of tax of nil
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
(5,588)
|
|
(1,742)
|
|
(5,471)
|
|
(5,527)
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
10,232
|
|
15,459
|
|
16,521
|
|
9,257
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive income (loss) attributable
to non-controlling interest
|
|
(241)
|
|
105
|
|
(592)
|
|
(875)
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to Leju
shareholders
|
|
10,473
|
|
15,354
|
|
17,113
|
|
10,132
|
LEJU HOLDINGS LIMITED
|
Unaudited Reconciliation of GAAP and Non-GAAP Results
|
(In thousands of U.S. dollars, except share data and per ADS
data)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
GAAP income from operations
|
|
20,772
|
|
26,768
|
|
28,258
|
|
23,043
|
Share-based compensation expense
|
|
2,739
|
|
3,700
|
|
9,573
|
|
10,427
|
Amortization of intangible assets resulting from business
acquisitions
|
|
3,157
|
|
3,083
|
|
9,496
|
|
9,250
|
Non-GAAP income from operations
|
|
26,668
|
|
33,551
|
|
47,327
|
|
42,720
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
15,820
|
|
17,201
|
|
21,992
|
|
14,784
|
Share-based compensation expense (net of tax)
|
|
2,739
|
|
3,700
|
|
9,573
|
|
10,427
|
Amortization of intangible assets resulting from
business acquisitions (net of tax)
|
|
2,368
|
|
2,312
|
|
7,122
|
|
6,937
|
Non-GAAP net income
|
|
20,927
|
|
23,213
|
|
38,687
|
|
32,148
|
|
|
|
|
|
|
|
|
|
Net income attributable to Leju Shareholder
|
|
16,043
|
|
17,099
|
|
22,566
|
|
15,663
|
Share-based compensation expense
(net of tax and non-controlling interests)
|
|
2,739
|
|
3,691
|
|
9,573
|
|
10,402
|
Amortization of intangible assets resulting from business
acquisitions (net of tax and non-controlling interests)
|
|
2,368
|
|
2,312
|
|
7,122
|
|
6,937
|
Non-GAAP net income attributable to Leju
shareholders
|
|
21,150
|
|
23,102
|
|
39,261
|
|
33,002
|
|
|
|
|
|
|
|
|
|
GAAP net income per ADS -- basic
|
|
0.12
|
|
0.13
|
|
0.17
|
|
0.12
|
|
|
|
|
|
|
|
|
|
GAAP net income per ADS -- diluted
|
|
0.12
|
|
0.13
|
|
0.17
|
|
0.12
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per ADS -- basic
|
|
0.16
|
|
0.17
|
|
0.29
|
|
0.24
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per ADS -- diluted
|
|
0.16
|
|
0.17
|
|
0.29
|
|
0.24
|
|
|
|
|
|
|
|
|
|
Shares used in calculating basic GAAP / non-GAAP net
income attributable to shareholders per ADS
|
|
134,663,857
|
|
135,278,105
|
|
134,448,793
|
|
135,171,280
|
|
|
|
|
|
|
|
|
|
Shares used in calculating diluted GAAP / non-GAAP net
income attributable to shareholders per ADS
|
|
135,308,945
|
|
135,430,377
|
|
136,397,775
|
|
135,279,590
|
LEJU HOLDINGS LIMITED
|
SELECTED OPERATING DATA
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
Operating data for e-commerce services
|
|
|
|
|
|
|
|
|
Number of discount coupons issued to
prospective purchasers (number of
transactions)
|
|
70,641
|
|
132,142
|
|
205,895
|
|
267,827
|
Number of discount coupons redeemed (number
of transactions)
|
|
57,303
|
|
53,602
|
|
141,827
|
|
137,827
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/leju-reports-third-quarter-2016-results-300368802.html
SOURCE Leju Holdings Limited