Autohome Inc. Announces Unaudited 2022 Second Quarter and Interim Financial Results

BEIJING, Aug. 3, 2022 /PRNewswire/ -- Autohome Inc. 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, 2022.

Second Quarter 2022 Highlights[1]

  • Net Revenues in the second quarter of 2022 were RMB1,733.0 million (US$258.7 million), compared to RMB1,938.0 million in the corresponding period of 2021.
  • Net Income attributable to Autohome Inc. in the second quarter of 2022 was RMB435.0 million (US$64.9 million), compared to RMB754.9 million in the corresponding period of 2021, and net income attributable to ordinary shareholders in the second quarter of 2022 was RMB423.4 million (US$63.2 million), compared to RMB746.7 million in the corresponding period of 2021.
  • Adjusted Net Income attributable to Autohome Inc. (Non-GAAP)[2] in the second quarter of 2022 was RMB472.2 million (US$70.5 million), compared to RMB795.4 million in the corresponding period of 2021.
  • Share Repurchase: As of July 31, 2022, the Company has repurchased 1,883,906 American depositary shares ("ADSs") for a total cost of approximately US$54.2 million.

[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$1.00 to RMB6.6981 on June 30, 2022 in the City of New York for cable transfers of RMB as certified for customs purposes by the
Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ 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 "Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this release.

Mr. Quan Long, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, "We are pleased to report a strong operational and financial performance in the second quarter of 2022. Though we faced a rather challenging environment due to the pandemic, Autohome still delivered another solid quarter, clearly demonstrating our business resilience and market-leading position. For users, we continued to promote our core IP strategy and differentiate our offerings to provide users with more choices and services, effectively expanding our user base as we further diversified content ecosystem. In June 2022, our aggregated average daily users grew by 8.1% year-over-year to 47.63 million, according to QuestMobile, setting a new record high and firmly maintaining our leading position in the auto vertical. For our customers, we proactively built new business operation models in response to the cancellation of local offline auto shows due to the pandemic's resurgence. For example, we added VR functionality to our Intelligent Showroom, helping our customers to expand their user reach. We also normalized online auto shows, providing automakers a platform to promote their localized marketing information. In the first half of the year, we held more than 300 national and local online auto shows, covering over 70 million people throughout China. Moving ahead, we remain committed to enhancing our platform while accelerating new initiatives and deepening synergies with Ping An Group. We look forward to generating additional long-term value for our users, customers, shareholders and other stakeholders across our comprehensive auto search, purchase and use ecosystem."

Mr. Craig Yan Zeng, Chief Financial Officer of Autohome, added, "We sustained our strong recovery momentum in the second quarter of 2022 with revenues totaling RMB1.73 billion. Notably, the year-over-year revenue growth for our new energy vehicle ("NEV") business once again significantly outpaced the market. Despite the pandemic, by leveraging our big data and technology capabilities, we enabled our dealer customers to realize contactless sales and marketing with our data products and services, leading to an increase in our product popularity. We are also glad to see that the number of our dealer customers for data products in the second quarter increased by 14% year-over-year while for the first half of this year, the average revenue per dealer store and the average number of data products adopted by each dealer store rose by 20% and 32% year-over-year, respectively, all exhibiting strong growth trends. Looking to the rest of 2022, with government stimulus packages for auto consumption taking effect and supported by our robust balance sheet and abundant cash on hand, we are confident that we are well-positioned to capture new opportunities in strategic areas that will contribute to Autohome's future growth."

Unaudited Second Quarter 2022 Financial Results

Net Revenues

Net revenues in the second quarter of 2022 were RMB1,733.0 million (US$258.7 million), compared to RMB1,938.0 million in the corresponding period of 2021.

  • Media services revenues were RMB530.6 million (US$79.2 million), compared to RMB599.8 million in the corresponding period of 2021. The decline was attributable to the decrease in average revenue per automaker advertiser, which was primarily due to the impact of the COVID-19 pandemic on certain cities in China in the first half of 2022. 
  • Leads generation services revenues were RMB752.8 million (US$112.4 million), compared to RMB744.0 million in the corresponding period of 2021.
  • Online marketplace and others revenues were RMB449.6 million (US$67.1 million), compared to RMB594.3 million in the corresponding period of 2021. The decrease was primarily attributable to the impact of the COVID-19 pandemic on certain cities in China in the first half of 2022.

Cost of Revenues

Cost of revenues was RMB278.9 million (US$41.6 million) in the second quarter of 2022, compared to RMB261.6 million in the corresponding period of 2021. The increase was primarily attributable to the continuous investment in content. Share-based compensation expense included in cost of revenues in the second quarter of 2022 was RMB1.3 million (US$0.2 million), compared to RMB5.1 million in the corresponding period of 2021.

Operating Expenses

Operating expenses were RMB1,227.5 million (US$183.3 million) in the second quarter of 2022, compared to RMB1,073.8 million in the corresponding period of 2021.

  • Sales and marketing expenses were RMB738.7 million (US$110.3 million) in the second quarter of 2022, compared to RMB562.4 million in the corresponding period of 2021. The increase was primarily attributable to the escalation of marketing and promotional spending. Share-based compensation expense included in sales and marketing expenses in the second quarter of 2022 was RMB5.4 million (US$0.8 million), compared to RMB10.8 million in the corresponding period of 2021.
  • General and administrative expenses were RMB126.6 million (US$18.9 million) in the second quarter of 2022, compared to RMB176.8 million in the corresponding period of 2021. 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 2022 was RMB10.1 million (US$1.5 million), compared to RMB10.2 million in the corresponding period of 2021.
  • Product development expenses were RMB362.2 million (US$54.1 million) in the second quarter of 2022, compared to RMB334.7 million in the corresponding period of 2021. The increase was primarily attributable to greater investment in research and development activities for digital products. Share-based compensation expense included in product development expenses in the second quarter of 2022 was RMB11.6 million (US$1.7 million), compared to RMB18.8 million in the corresponding period of 2021.

Operating Profit

Operating profit was RMB301.3 million (US$45.0 million) in the second quarter of 2022, compared to RMB673.0 million in the corresponding period of 2021. 

Income Tax Expense

There was an income tax expense of RMB34.1 million (US$5.1 million) in the second quarter of 2022, compared to income tax expense of RMB70.2 million in the corresponding period of 2021. The decrease was primarily attributable to the lower profit before income tax.

Net Income attributable to Autohome Inc. 

Net income attributable to Autohome Inc. was RMB435.0 million (US$64.9 million) in the second quarter of 2022, compared to RMB754.9 million in the corresponding period of 2021.

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

Net income attributable to ordinary shareholders was RMB423.4 million (US$63.2 million) in the second quarter of 2022, compared to RMB746.7 million in the corresponding period of 2021. Basic and diluted earnings per share ("EPS") were RMB0.85 (US$0.13) and RMB0.84 (US$0.13), respectively, in the second quarter of 2022, as compared to basic and diluted EPS of RMB1.48 and RMB1.48, respectively, in the corresponding period of 2021. Basic and diluted earnings per ADS were RMB3.38 (US$0.50) and RMB3.38 (US$0.50), respectively, in the second quarter of 2022 as compared to basic and diluted earnings per ADS of RMB5.92 and RMB5.91, respectively, in the corresponding period of 2021.

Adjusted Net Income attributable to Autohome Inc. (Non-GAAP) and Non-GAAP Earnings per Share/ADS

Adjusted net income attributable to Autohome Inc. (Non-GAAP) was RMB472.2 million (US$70.5 million) in the second quarter of 2022, compared to RMB795.4 million in the corresponding period of 2021. Non-GAAP basic and diluted EPS were RMB0.94 (US$0.14) and RMB0.94 (US$0.14), respectively, in the second quarter of 2022 as compared to non-GAAP basic and diluted EPS of RMB1.58 and RMB1.57, respectively, in the corresponding period of 2021. Non-GAAP basic and diluted earnings per ADS were RMB3.77 (US$0.56) and RMB3.77 (US$0.56), respectively, in the second quarter of 2022, compared to non-GAAP basic and diluted earnings per ADS of RMB6.31 and RMB6.30, respectively, in the corresponding period of 2021.

Balance Sheet and Cash Flow

As of June 30, 2022, the Company had cash and cash equivalents and short-term investments of RMB20.94 billion (US$3,125.8 million). Net cash provided by operating activities in the second quarter of 2022 was RMB488.3 million (US$72.9 million).

Employees

The Company had 5,631 employees as of June 30, 2022, including 2,075 employees from TTP Car, Inc. ("TTP").

Conference Call Information

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, August 3, 2022 (8:00 PM Beijing Time on the same day).

Dial-in details for the earnings conference call are as follows:

United States:

+1-855-824-5644

Hong Kong, China:

+852-3027-6500

Mainland China:

8009-880-563/ 400-821-0637

United Kingdom:

0800-026-1542

International:

+1-646-722-4977

Passcode:

41836568#

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

A replay of the conference call may be accessed by phone at the following numbers until August 10, 2022:

United States:

+1-646-982-0473

International:

+61-2-8325-2405

Passcode:

520002963#

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

About Autohome Inc.

Autohome Inc. ATHM HKEX: 2518))) is the leading online destination for automobile consumers in China. Its mission is to engage, educate and inform consumers about everything auto. Autohome provides original 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 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 Inc., 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 Inc. as net income attributable to Autohome Inc. excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisition, certain noncontrolling interests adjustments for TTP (starting in the first quarter of 2021 for the first time, which included interest income related to convertible bond investment to TTP that is eliminated in consolidation), investment loss relating to non-operating impact of a write-down of the initial investment in a financial product, (gain)/loss 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 Inc. 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 Inc. divided by the basic and diluted weighted average number of ADSs. We define Adjusted net margin as Adjusted Net Income attributable to Autohome Inc. divided by total net revenues. We define Adjusted EBITDA as net income attributable to Autohome Inc. 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 "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

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: autohome@tpg-ir.com

AUTOHOME INC.

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, 


2021


2022


2021


2022


RMB


RMB


US$


RMB


RMB


US$


(Unaudited)


(Unaudited)


 (Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)

Net revenues: 











Media services

599,812


530,561


79,211


1,204,636


797,363


119,043

Leads generation services 

743,953


752,813


112,392


1,441,587


1,461,017


218,124

Online marketplace and others

594,278


449,619


67,126


1,133,401


945,905


141,220

Total net revenues 

1,938,043


1,732,993


258,729


3,779,624


3,204,285


478,387

Cost of revenues

(261,587)


(278,864)


(41,633)


(504,710)


(533,881)


(79,706)

Gross profit 

1,676,456


1,454,129


217,096


3,274,914


2,670,404


398,681













Operating expenses: 











Sales and marketing
expenses 

(562,362)


(738,729)


(110,289)


(1,244,995)


(1,330,983)


(198,711)

General and administrative               
   expenses 

(176,782)


(126,616)


(18,903)


(305,407)


(263,178)


(39,291)

Product development
   expenses 

(334,662)


(362,194)


(54,074)


(639,213)


(717,441)


(107,111

Total operating expenses

(1,073,806)


(1,227,539)


(183,266)


(2,189,615)


(2,311,602)


(345,113)

Other operating income, net

70,337


74,661


11,147


154,322


183,685


27,423

Operating profit

672,987


301,251


44,977


1,239,621


542,487


80,991













Interest and investment
   income, net

138,859


149,398


22,305


268,562


240,166


35,856

Gain/(loss) from equity method
   investments, net

(763)


5,882


878


(960)


(20,347)


(3,038)

Income before income taxes 

811,083


456,531


68,160


1,507,223


762,306


113,809

Income tax expense

(70,216)


(34,108)


(5,092)


(135,249)


(42,148)


(6,293)

Net income  

740,867


422,423


63,068


1,371,974


720,158


107,516

Net loss attributable to
    noncontrolling interests

14,073


12,593


1,880


87,255


33,106


4,943

Net income attributable to
   Autohome Inc.

754,940


435,016


64,948


1,459,229


753,264


112,459

Accretion of mezzanine equity  

(29,218)


(33,383)


(4,984)


(356,291)


(64,259)


(9,594)

Accretion attributable to
   noncontrolling interests

20,984


21,743


3,246


277,567


41,861


6,250

Net income attributable to
   ordinary shareholders

746,706


423,376


63,210


1,380,505


730,866


109,115













Earnings per share for
   ordinary share  










Basic  

1.48


0.85


0.13


2.79


1.45


0.22

Diluted  

1.48


0.84


0.13


2.79


1.45


0.22

Earnings per ADS
   attributable to ordinary
   shareholders (one ADS
   equals for four ordinary
   shares)






Basic  

5.92


3.38


0.50


11.18


5.82


0.87

Diluted  

5.91


3.38


0.50


11.15


5.81


0.87













Weighted average shares used to compute
   earnings per share attributable to ordinary
   shareholders:

















 Basic  

504,293,912


500,676,420


500,676,420


493,953,692


502,552,188


502,552,188

 Diluted

505,183,728


501,112,704


501,112,704


495,253,000


502,882,428


502,882,428

AUTOHOME INC.

RECONCILIATION 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,


2021


2022


2021


2022


RMB


RMB


US$


RMB


RMB


US$


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)

Net income attributable to
   Autohome Inc.

754,940


435,016


64,946


1,459,229


753,264


112,459

Plus: income tax expense

72,198


35,448


5,292


137,231


44,829


6,693

Plus: depreciation of property and
   equipment

53,816


57,596


8,599


104,510


114,824


17,143

Plus: amortization of intangible
   assets

8,307


10,837


1,618


11,276


21,674


3,236

EBITDA

889,261


538,897


80,455


1,712,246


934,591


139,531

Plus: share-based compensation
   expenses

44,966


28,396


4,239


98,803


69,257


10,340

Adjusted EBITDA

934,227


567,293


84,694


1,811,049


1,003,848


149,871













Net income attributable to
   Autohome Inc.

754,940


435,016


64,946


1,459,229


753,264


112,459

Plus: amortization of intangible assets
   resulting from business acquisition

6,444


10,722


1,601


7,583


21,444


3,202

Plus: share-based compensation
   expenses

44,966


28,396


4,239


98,803


69,257


10,340

Plus: investment loss arising from
   one of financial products[3] 

-


4,021


600


-


58,441


8,725

Plus: (gain)/loss on equity method
   investments, net

763


(5,882)


(878)


960


20,347


3,038

Plus: certain noncontrolling interests
   adjustments for TTP

(10,826)


-


-


(35,196)


-


-

Plus: impairment of long-term
   investments

-


1,696


253


-


1,696


253

Plus: tax effects of the 
   adjustments

(931)


(1,746)


(261)


(968)


(14,693)


(2,194)

Adjusted net income
   attributable to Autohome Inc.

795,356


472,223


70,500


1,530,411


909,756


135,823













Net income attributable to
   Autohome Inc.

754,940


435,016


64,946


1,459,229


753,264


112,459

Net margin

39.0 %


25.1 %


25.1 %


38.6 %


23.5 %


23.5 %

Adjusted net income
   attributable to Autohome Inc.

795,356


472,223


70,500


1,530,411


909,756


135,823

Adjusted net margin

41.0 %


27.2 %


27.2 %


40.5 %


28.4 %


28.4 %

























Non-GAAP earnings per share











Basic

1.58


0.94


0.14


3.10


1.81


0.27

Diluted

1.57


0.94


0.14


3.09


1.81


0.27

Non-GAAP earnings per ADS
   (one ADS equals for four
   ordinary shares)









Basic

6.31


3.77


0.56


12.39


7.24


1.08

Diluted

6.30


3.77


0.56


12.36


7.24


1.08













Weighted average shares used
   to compute non-GAAP
   earnings per share:









Basic

504,293,912


500,676,420


500,676,420


493,953,692


502,552,188


502,552,188

Diluted

505,183,728


501,112,704


501,112,704


495,253,000


502,882,428


502,882,428













[3] It represented the investment loss of an overdue financial product in the second quarter and first half of 2022, which was recognized at
"interest and investment income, net". The impact was considered to be not directly related to the Company's operating activities.

AUTOHOME INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Amount in thousands, except as noted)








As of 

December 31,







As of June 30,


2021


2022


RMB


RMB


US$


(Audited)


(Unaudited)


(Unaudited)

ASSETS






Current assets






Cash and cash equivalents

4,236,501


3,851,719


575,047

Restricted Cash

89,855


9,175


1,370

Short-term investments

16,496,267


17,085,149


2,550,746

Accounts receivable, net

2,139,471


1,444,055


215,592

Amounts due from related parties, current

83,376


45,529


6,797

Prepaid expenses and other current assets 

280,248


431,000


64,347

Total current assets

23,325,718


22,866,627


3,413,899

Non-current assets






Restricted cash, non-current

5,200


5,200


776

Property and equipment, net

381,496


305,036


45,541

Goodwill and intangible assets, net

4,428,822


4,389,280


655,302

Long-term investments

70,720


448,677


66,986

Deferred tax assets 

176,138


173,414


25,890

Amounts due from related parties, non-current

7,529


14,182


2,117

Other non-current assets

133,383


151,367


22,598

Total non-current assets

5,203,288


5,487,156


819,210

Total assets

28,529,006


28,353,783


4,233,109







LIABILITIES AND EQUITY






Current liabilities






Accrued expenses and other payables

2,044,597


1,962,191


292,946

Advance from customers

123,370


97,537


14,562

Deferred revenue

1,553,013


1,274,556


190,286

Income tax payable

233,342


163,922


24,473

Amounts due to related parties

31,897


26,838


4,007

Total current liabilities

3,986,219


3,525,044


526,274

Non-current liabilities






Other liabilities

28,619


52,300


7,810

Deferred tax liabilities

576,798


518,548


77,417

Total non-current liabilities

605,417


570,848


85,227

Total liabilities

4,591,636


4,095,892


611,501







MEZZANINE EQUITY






Convertible redeemable noncontrolling interests

1,468,029


1,532,287


228,764







EQUITY






Total Autohome Inc. shareholders' equity

22,754,419


23,085,878


3,446,631

Noncontrolling interests 

(285,078)


(360,274)


(53,787)

Total equity 

22,469,341


22,725,604


3,392,844

Total liabilities, mezzanine equity and equity

28,529,006


28,353,783


4,233,109

View original content:https://www.prnewswire.com/news-releases/autohome-inc-announces-unaudited-2022-second-quarter-and-interim-financial-results-301598789.html

SOURCE Autohome Inc.

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