Leju Holdings Tops Q2 Expectations

Leju Holdings Ltd (ADR) LEJU reported better-than-expected results for the second quarter on Tuesday. The China-based company posted quarterly net income of $11.8 million, or $0.09 per ADS, compared to $15.4 million, or $0.12 per ADS, in the year-ago quarter. Non-GAAP net income slipped 16 percent to $17.1 million, or $0.12 per ADS. Its total revenue climbed 34 percent year-over-year to $157.8 million from $117.4 million. However, analysts were expecting earnings of $0.11 per ADS on revenue of $146.89 million. Its revenue from e-commerce services rose 72 percent year-over-year to $117.4 million, while revenue from listing services gained 23 percent to $5.2 million. Revenue from online advertising services dropped 21 percent to $35.2 million. Selling, general and administrative expenses rose 44 percent to $127.5 million in the quarter. As of June 30, 2015, Leju Holdings had $263.3 million in cash and cash equivalents balance. "We are pleased with the Company's revenue growth this quarter," said Mr. Geoffrey He, Leju's chief executive officer. "Real estate market activity in major Chinese cities gradually recovered in the second quarter, which benefited all of Leju's businesses lines. We focused on increasing our market share in the e-commerce business and developing new products and services that aim to improve the connectivity between online and offline home purchasing activities. We resumed growth in our secondary verified listing business as a result of increased subscribing agents and steady pricing levels." For fiscal year 2015, Leju Holdings maintained its total revenue forecast of around $600 million to $620 million. Leju Holdings shares fell 4.22 percent to close at $4.99 yesterday.