Market Overview

Autohome Inc. Announces Unaudited Results for the Third Quarter Ended September 30, 2016

Share:

BEIJING, Nov. 14, 2016 (GLOBE NEWSWIRE) -- Autohome Inc. (NYSE: ATHM) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced its unaudited financial results for the third quarter ended September 30, 2016.

Third Quarter 2016 Financial Highlights1

  • Net Revenues increased 64.1% year-over-year to RMB1,474.9 million ($221.2 million), above the high end of the Company's original guidance of RMB1,394 million ($209.0 million).
     
  • Adjusted Net Income attributable to Autohome Inc. increased 13.2% year-over-year to RMB292.0 million ($43.8 million).
     
  • Net Cash Provided by Operating Activities was RMB386.9 million ($58.0 million), an increase of 30.8% year-over-year.

Third Quarter 2016 Operational Highlights

  • Continued Focus on Mobile Traffic: In September 2016, the number of average daily unique visitors who accessed the Company's mobile websites and mobile applications reached 10.5 million and 7.6 million, respectively. Combined, this represents a 52% increase in the total number of average daily unique visitors on mobile platforms compared with September 2015.

Mr. Yan Kang, President of Autohome, stated, "We once again delivered strong operational and financial results that exceeded the high end of our guidance as we continued to build upon the momentum we gained during the first half of the year.  In addition, we have initiated a new set of strategic initiatives dubbed ‘4+1', representing the ‘4' key market segments in our future consumer-centric automotive ecosystem: auto-media, auto-ecommerce, auto-finance, and auto-lifestyle; and the ‘1' engine that will transform Autohome from a content-led vertical media business to an automotive eco-platform based on advanced analysis and technology.  We are confident that our focused strategy and targeted execution will solidify our dominant leadership position, connect users to resources across various stages of the automobile life cycle and ensure that our automaker and dealer clients can fully rely upon our innovation and differentiated value propositions."

Mr. Julian Wang, Chief Financial Officer, added, "I am pleased with our performance during the third quarter of 2016 which I believe showcases our strength and competitiveness across multiple automotive marketplaces. We continue to grow and execute our long-term strategy of driving consumer audience engagement and delivering more high-quality leads to our automaker and dealer clients. This is steadily increasing revenue and profitability as we expand our business to scale. These are still early days in our pursuit of the huge opportunities in front of us, so we are very excited to see progress in deepening the connection between our audience and clients."

"In addition, we have appointed PricewaterhouseCoopers Zhong Tian LLP as our independent auditor, to replace Ernst & Young Hua Ming LLP, effective as of November 12, 2016.  PricewaterhouseCoopers Zhong Tian LLP is also the independent auditor for Ping An Insurance (Group) Company of China Ltd., we trust that having the same auditor will facilitate closer and more efficient coordination. We greatly appreciate Ernst & Young Hua Ming LLP for their professional services over the past several years."

Overview of Key Financial Results for Third Quarter 2016

Key Financial Results

(In RMB Millions except for per share data)3Q20153Q2016% Change
Net Revenues898.61,474.9 64.1%
Net Income attributable to Autohome Inc.231.2260.9 12.9%
Adjusted Net Income attributable to Autohome Inc.2258.0292.0 13.2%
Diluted Earnings Per Share32.002.25 12.5%
Net Cash Provided by Operating Activities295.8386.9 30.8%

Unaudited Third Quarter 2016 Financial Results

Net Revenues

Net revenues increased 64.1% to RMB1,474.9 million ($221.2 million) from RMB898.6 million in the corresponding period of 2015. The increase was mainly due to the newly launched online marketplace and the 23.9% increase in revenues from the Company's media and leads generation services.

  • Media services revenues increased 21.8% to RMB577.2 million ($86.6 million) from RMB474.1 million in the corresponding period of 2015. The increase was mainly due to an increase in average revenue per automaker advertiser as automakers continue to allocate more of their advertising budgets to Autohome's online advertising channels.

  • Leads generation services revenues increased 26.5% to RMB503.3 million ($75.5 million) from RMB397.8 million in the corresponding period of 2015. The increase was primarily attributable to a 13.5% year-over-year increase in average revenue per paying dealer as dealers continue to allocate a greater portion of their budgets to the Company's services.

  • Online marketplace revenues were RMB394.4 million ($59.1million) compared to RMB26.7 million in the corresponding period of 2015. In the third quarter of 2016, revenues from direct sales were RMB381.3 million ($57.2 million), accounting for 96.7% of online marketplace revenues.

Cost of Revenues

Cost of revenues increased 266.3% to RMB585.1 million ($87.7 million) from RMB159.7 million in the corresponding period of 2015, primarily due to an increase in cost of goods sold related to direct vehicle sales, which included a write-down of inventory of RMB34.3 million ($5.1 million). In addition, cost of revenues included share-based compensation expenses of RMB3.5 million ($0.5 million) during the third quarter of 2016, compared to RMB1.5 million for the corresponding period of 2015.

Operating Expenses

Operating expenses increased 31.3% to RMB595.3 million ($89.3 million) from RMB453.2 million in the corresponding period of 2015. This increase was mainly due to increases in product development expenses, sales and marketing expenses and general and administrative expenses as the Company continue to reinvest in future growth opportunities. As a percentage of net revenues, operating expenses for the third quarter of 2016 decreased to 40.4% from 50.4% in the corresponding period of 2015.

  • Sales and marketing expenses increased 14.4% to RMB383.8 million ($57.6 million) from RMB335.6 million in the corresponding period of 2015. This increase was primarily due to (i) an increase in marketing expenses in connection with the promotion of the Company's brands through mobile platforms, and (ii) an increase in salaries and benefits as a result of growth in sales and marketing headcount, which is in line with the Company's rapid growth. Sales and marketing expenses for the third quarter of 2016 included share-based compensation expenses of RMB14.1 million ($2.1 million), compared with RMB8.2 million in the corresponding period of 2015.

  • General and administrative expenses increased 42.4% to RMB62.5 million ($9.4 million) from RMB43.9 million in the corresponding period of 2015. The increase was primarily attributable to an increase in salaries and benefits. Excluding share-based compensation expenses, general and administrative expenses for the third quarter of 2016 were RMB63.0 million ($9.4 million), an increase of 87.3% compared to the corresponding period of 2015. 

  • Product development expenses increased 101.9% to RMB148.9 million ($22.3 million) from RMB73.8 million in the corresponding period of 2015. This increase was primarily attributable to an increase in salaries and benefits as a result of the growth in product development headcount, which is in line with the Company's rapid growth. Product development expenses for the third quarter of 2016 included share-based compensation expenses of RMB12.9 million ($1.9 million), compared with RMB5.7 million in the corresponding period of 2015.

Operating Profit

Operating profit slightly increased 3.1% to RMB294.5 million ($44.2 million) from RMB285.6 million in the corresponding period of 2015.

Net Income attributable to Autohome Inc. and EPS

Net income attributable to Autohome Inc. increased 12.9% to RMB260.9 million ($39.1 million) from RMB231.2 million in the corresponding period of 2015. Basic and diluted earnings per share and per ADS ("EPS") were RMB2.27 ($0.34) and RMB2.25 ($0.34), respectively, compared with basic and diluted EPS in the corresponding period of 2015 of RMB2.05 and RMB2.00, respectively.

Adjusted Net Income attributable to Autohome Inc. and Non-GAAP EPS

Adjusted net income attributable to Autohome Inc., defined as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, increased 13.2% to RMB292.0 million ($43.8 million) from RMB258.0 million in the corresponding period of 2015. Non-GAAP basic and diluted EPS were RMB2.54 ($0.38) and RMB2.52 ($0.38), respectively, compared with non-GAAP basic and diluted EPS in the corresponding period of 2015 of RMB2.29 and RMB2.23, respectively.

Balance Sheet and Cash Flow

As of September 30, 2016, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB5,051.9 million ($757.6 million), compared with RMB4,647.4 million as of June 30, 2016. Net cash provided by operating activities in the third quarter of 2016 was RMB386.9 million ($58.0 million), compared with RMB295.8 million in the corresponding period of 2015.

Employees

The Company had 3,965 employees as of September 30, 2016.

Change in Certifying Accountant

The Company announced that it has appointed PricewaterhouseCoopers Zhong Tian LLP as the Company's independent registered public accounting firm, to replace Ernst & Young Hua Ming LLP ("E&Y"), effective from November 12, 2016. The change of Autohome's independent registered public accounting firm was approved by the audit committee of the board. The decision was not made due to any disagreements between the Company and E&Y. E&Y's audit reports on the Company's consolidated financial statements as of December 31, 2015 and 2014 and for each of the years ended December 31, 2015, 2014 and 2013 do not contain any adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. The audit report of E&Y on the effectiveness of the Company's internal control over financial reporting as of December 31, 2015 did not contain any adverse opinion, nor was it qualified or modified.

Business Outlook

Autohome currently expects to generate net revenues in the range of RMB2,039 million ($305.8 million) to RMB2,121 million ($318.1 million) in the fourth quarter of fiscal year 2016, representing a 88.5% to 96.1% year-over-year increase.             

This forecast reflects the Company's current and preliminary view on the market and operating conditions, which are subject to change.

Conference Call Information

The Company will host an earnings conference call at 7:00 AM U.S. Eastern Time on Monday, November 14, 2016 (8:00 PM Beijing Time on the same day).

Dial-in details for the earnings conference call are as follows:
United States:   +1-855-298-3404
Hong Kong:      +852-5808-3202
China Domestic: 400-120-0539
United Kingdom: 0800-015-9725
International:     +1-631-514-2526

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 2127479.

A replay of the conference call may be accessed by phone at the following numbers until November 21, 2016:

United States:    +1-866-846-0868
International:     +61-2-9641-7900
Passcode:           2127479

Additionally, a live and archived webcast of the conference call will be available at http://ir.autohome.com.cn.

About Autohome Inc.

Autohome Inc. (NYSE: ATHM) is the leading online destination for automobile consumers in China.  Its mission is to enhance the car-buying and ownership experience for auto consumers in China. Autohome provides professionally produced and user-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.  As a transaction-centric company, Autohome operates its "Autohome Mall," a full-service online transaction platform, to facilitate transactions for automakers and dealers.  Further, through its website 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 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 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; 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. 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 Inc., Non-GAAP basic and diluted EPS and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome Inc. as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. We define Non-GAAP basic and diluted EPS as Adjusted Net Income attributable to Autohome Inc. divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted EBITDA as net income attributable to Autohome Inc. before income tax expense, depreciation expenses of property and equipment and amortization expenses of intangible assets and interest expense, excluding 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 expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but 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 "Reconciliation of non-GAAP and GAAP Results" set forth at the end of this press release.

1 The reporting currency of the Company is Renminbi ("RMB"). For the convenience of the reader, certain amounts throughout the release are presented in US dollars ("$"). Unless otherwise noted, all conversions from RMB to US$ are translated at the noon buying rate of US$1.00 to RMB6.6685 on September 30, 2016 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

2 Adjusted net income attributable to Autohome Inc. is defined as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. 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 "Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this release.

3 Each ordinary share equals one ADS.

AUTOHOME INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amount in thousands, except per share data)
   For three months ended September 30,
   2015   2016 
   RMB   RMB   US$
   (Unaudited)   (Unaudited)   (Unaudited)
 Net revenues:      
  Media services 474,068     577,262     86,565 
  Leads generation services 397,843     503,267     75,469 
  Online marketplace 26,675     394,386     59,142 
 Total net revenues    898,586     1,474,915      221,176  
       
 Cost of revenues (159,717)  (585,092)  (87,740)
 Gross profit    738,869      889,823      133,436  
       
 Operating expenses:      
 Sales and marketing expenses (335,560)  (383,849)  (57,562)
 General and administrative expenses (43,895)  (62,499)  (9,372)
 Product development expenses (73,777)  (148,946)  (22,336)
 Operating profit    285,637      294,529      44,166  
       
 Interest income   16,121   22,873   3,430 
 Loss from equity method investments (515)  (1,317)  (197)
 Other income, net 680   1,058   159 
 Income before income taxes    301,923      317,143      47,558  
       
 Income tax expense (70,772)  (65,858)  (9,876)
 Net income    231,151      251,285      37,682  
 Net loss attributable to noncontrolling interests -      9,639   1,445 
 Net income attributable to Autohome Inc.
 231,151      260,924      39,127  
             
 Earnings per share for ordinary shares     
 Basic   2.05   2.27   0.34 
 Diluted   2.00   2.25   0.34 
       
 Weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders:    
 Basic 112,750,722    114,771,935    114,771,935 
 Diluted 115,565,499    116,035,366    116,035,366 
       
 Other comprehensive income attributable to Autohome Inc., net of tax of nil     
 Foreign currency translation adjustments 38,569   6,720   1,008 
 Comprehensive income attributable to Autohome Inc.   269,720      267,644    40,135 


AUTOHOME INC. 
RECONCILIATION OF NON-GAAP AND GAAP RESULTS 
(Amount in thousands, except per share data) 
      
 For three months ended September 30, 
 2015 2016
 RMB RMB US$
 (Unaudited) (Unaudited) (Unaudited)
Net income attributable to Autohome Inc.231,151 260,924 39,127
Plus: income tax expense70,772 65,858 9,876
Plus: depreciation of property and equipment14,193 15,654 2,347
Plus: amortization of intangible assets1,158 1,139 171
EBITDA317,274 343,575 51,521
Plus: share-based compensation
expenses
25,734 29,985 4,497
Adjusted EBITDA343,008 373,560 56,018
      
Net income attributable to Autohome Inc.231,151 260,924 39,127
Plus: amortization of acquired intangible assets of Cheerbright, China Topside and Norstar1,139 1,139 171
Plus: share-based compensation expenses25,734 29,985 4,497
Adjusted Net Income attributable to Autohome Inc.258,024 292,048 43,795
      
Non-GAAP Earnings per share for ordinary shares     
Basic2.29 2.54 0.38
Diluted2.23 2.52 0.38
 

Weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders:
    
      
Basic112,750,722 114,771,935 114,771,935
Diluted115,565,499 116,035,366 116,035,366


AUTOHOME INC. 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(Amount in thousands, except as noted) 
  As of December 31, As of September 30, 
  2015  2016  
  RMB RMB US$ 
  (Audited) (Unaudited)
   (Unaudited)
 
ASSETS       
Current assets:       
Cash and cash equivalents 2,152,647    1,883,828     282,497  
Restricted cash 61,091    843,789     126,534  
Short-term investments 1,955,315   2,324,268     348,544  
Accounts receivable 1,075,456    1,030,847     154,585  
Inventories 111,667    182,916     27,430  
Amounts due from related parties 1,645    16,576     2,486  
Prepaid expenses and other current assets 338,677   933,482    139,984  
Deferred tax assets, current 45,977    73,031     10,952  
            
Total current assets 5,742,475    7,288,737      1,093,012  
        
Non-current assets:       
Property and equipment, net  103,554  119,345     17,897  
Goodwill and intangible assets, net  1,538,433    1,535,018     230,189  
Long-term investments  124,102    136,282     20,437  
Other non-current assets  21,512    34,647     5,196  
Total non-current assets  1,787,601     1,825,292      273,719   
Total assets  7,530,076    9,114,029      1,366,731  
        
LIABILITIES AND EQUITY      
Current liabilities:       
Accrued expenses and other payables833,473    937,927     140,655  
Advance from customers 27,214    31,423     4,712  
Deferred revenue 872,487    508,715     76,286  
Notes payable 174,943    958,586     143,748  
Income tax payable 224,973    283,191     42,467  
Amounts due to related parties 23,444    17,072     2,560  
Total current liabilities 2,156,534    2,736,914      410,428   
Non-current liabilities:       
Other liabilities  32,596   32,596     4,888  
Deferred tax liabilities  489,910  475,471     71,301  
Total non-current liabilities  522,506   508,067      76,189   
Total liabilities  2,679,040   3,244,981      486,617   
        
Equity:       
Total Autohome Inc. Shareholders' equity 4,851,036  5,877,314   881,354  
Noncontrolling interests  -  (8,266)  (1,240) 
Total equity  4,851,036  5,869,048   880,114  
Total liabilities and equity7,530,076  9,114,029   1,366,731  
For investor and media inquiries, please contact: Vivian Xu Investor Relations Autohome Inc. Tel: +86-10-5985-7017 Email: ir@autohome.com.cn Christian Arnell Christensen Tel: +86-10-5900-1548 Email: carnell@christensenir.com
View Comments and Join the Discussion!
 

Partner Center