Leju Reports Third Quarter 2015 Results

Nov 18, 2015, 06:00 ET from Leju Holdings Limited

BEIJING, Nov. 18, 2015 /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 fiscal quarter ended September 30, 2015.

Third Quarter 2015 Financial Highlights

  • Total revenues increased by 18% year-on-year to $151.2 million
    • Revenues from e-commerce services increased by 26% year-on-year to $106.4 million
    • Revenues from online advertising services decreased by 6% year-on-year to $39.4 million
    • Revenues from listing services increased by 134% year-on-year to $5.4 million
  • Non-GAAP1 income from operations decreased by 29% year-on-year to $26.7 million
  • Non-GAAP net income attributable to Leju shareholders decreased by 32% year-on-year to $21.1 million, or $0.16 per diluted American depositary share ("ADS")

First Nine Months 2015 Financial Highlights

  • Total revenues increased by 24% year-on-year to $402.4 million
    • Revenues from e-commerce services increased by 44% year-on-year to $290.9 million
    • Revenues from online advertising services decreased by 13% year-on-year to $97.2 million
    • Revenues from listing services increased by 34% year-on-year to $14.4 million
  • Non-GAAP income from operations decreased by 33% year-on-year to $47.3 million
  • Non-GAAP net income attributable to Leju shareholders decreased by 34% year-on-year to $39.3 million, or $0.29 per diluted ADS

"We are pleased to report another quarter of revenue growth year over year as our customers continue to recognize the value in our online and offline services," said Mr. Geoffrey He, Leju's chief executive officer. "During the third quarter, we achieved a record number of e-commerce projects under operations while steadily growing our listings business. Our marketing platform of online advertising and e-commerce for the primary and secondary housing markets has generated revenues of over $400 million so far this year and solidified our leadership position in this space. Our strategy will remain focused on developing overall marketing solutions for our developer, agency and buyer customers through innovative products and more diversified channels."

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.

Third Quarter 2015 Results

Total revenues were $151.2 million, an increase of 18% from $128.3 million for the same quarter of 2014, mainly driven by growth of revenues from e-commerce services.

Revenues from e-commerce services were $106.4 million, an increase of 26% from $84.2 million for the same quarter of 2014, primarily due to an increase in the average price per discount coupon redeemed.

Revenues from online advertising services were $39.4 million, a decrease of 6% from $41.8 million for the same quarter of 2014, primarily due to a decrease in property developers' online advertising demand.

Revenues from listing services were $5.4 million, an increase of 134% from $2.3 million for the same quarter of 2014, primarily due to growth in secondary home sales.

Cost of revenues was $15.3 million, an increase of 18% from $12.9 million for the same quarter of 2014, primarily due to increased staff cost of editorial department and increased amortization of intangible assets consisting of exclusive rights.

Selling, general and administrative expenses were $117.5 million, an increase of 39% from $84.6 million for the same quarter of 2014, primarily due to increased marketing expenses related to the growth of the Company's e-commerce business.

Income from operations was $20.8 million, a decrease of 34% from $31.5 million for the same quarter of 2014. Non-GAAP income from operations was $26.7 million, a decrease of 29% from $37.7 million for the same quarter of 2014.

Net income was $15.8 million, a decrease of 40% from $26.4 million for the same quarter of 2014. Non-GAAP net income was $20.9 million, a decrease of 35% from $32.0 million for the same quarter of 2014.

Net income attributable to Leju shareholders was $16.0 million, or $0.12 per diluted ADS, a decrease of 38% from $25.7 million, or $0.19 per diluted ADS, for the same quarter of 2014. Non-GAAP net income attributable to Leju shareholders was $21.1 million, or $0.16 per diluted ADS, a decrease of 32% from $31.3 million, or $0.23 per diluted ADS, for the same quarter of 2014.

First Nine Months 2015 Results

Total revenues were $402.4 million, an increase of 24% from $324.2 million for the same period of 2014, mainly driven by growth of revenues from e-commerce services.

Revenues from e-commerce services were $290.9 million, an increase of 44% from $202.2 million for the same period of 2014, primarily due to an increase in the average price per discount coupon redeemed.

Revenues from online advertising services were $97.2 million, a decrease of 13% from $111.2 million for the same period of 2014, primarily due to a decrease in property developers' online advertising demand.

Revenues from listing services were $14.4 million, an increase of 34% from $10.8 million for the same period of 2014, primarily due to the growth in secondary home sales.

Cost of revenues was $45.8 million, an increase of 25% from $36.8 million for the same period of 2014, primarily due to increased staff cost of editorial department as a result of increased headcount and amortization of intangible assets consisting of exclusive rights.

Selling, general and administrative expenses were $331.2 million, an increase of 39% from $237.5 million for the same period of 2014, primarily due to increased marketing expenses related to the growth of the Company's e-commerce business.

Income from operations was $28.3 million, a decrease of 46% from $52.0 million for the same period of 2014. Non-GAAP income from operations was $47.3 million, a decrease of 33% from $70.2 million for the same period of 2014.

Net income was $22.0 million, a decrease of 50% from $43.7 million for the same period of 2014. Non-GAAP net income was $38.7 million, a decrease of 35% from $59.9 million for the same period of 2014.

Net income attributable to Leju shareholders was $22.6 million, or $0.17 per diluted ADS, a decrease of 48% from $43.3 million, or $0.33 per diluted ADS, for the same period of 2014. Non-GAAP net income attributable to Leju shareholders was $39.3 million, or $0.29 per diluted ADS, a decrease of 34% from $59.4 million, or $0.45 per diluted ADS, for the same period of 2014.

Cash Flow

As of September 30, 2015, the Company's cash and cash equivalents balance was $291.2 million.

Third quarter 2015 net cash provided by operating activities was $49.3 million, mainly attributable to non-GAAP net income of $20.9 million, a decrease in customer deposits of $14.2 million, a decrease in prepaid expenses and other current assets of $3.0 million, an increase in income tax payables and other tax payables of $4.5 million, and an increase in amount due to related parties of $3.9 million. Net cash used in investing activities was $9.1 million, mainly comprised of a payment of $7.9 million for exclusive rights. Net cash used in financing activities was $6.5 million, and mainly comprised of a payment of $6.6 million to acquire non-controlling interests, which were made in 2014.

Business Outlook

The Company maintains its fiscal 2015 total revenue guidance of approximately $600 million to $620 million, which would represent an increase of approximately 21% to 25% from $496.0 million in 2014. 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 18, 2015 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 November 25, 2015:

U.S./International:

+1-866-846-0868

Hong Kong:

+ 800-966-697

Mainland China:

+ 400-184-2240

Passcode:

1262963

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 260 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 leading internet companies such as SINA Corporation and Baidu Inc., 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 limited operating history and lack of experience as a stand-alone public company, given its recent carve-out from E-House and prior reliance on E-House for various corporate services; its reliance on SINA, 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 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. Melody Liu Leju Holdings Limited Phone: +86 (10) 5895-1062 E-mail: ir@leju.com

Mr. Derek Mitchell Ogilvy Financial In the U.S.: +1 (646) 867-1888 In China: +86 (10) 8520-6139 E-mail: leju@ogilvy.com

 

 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

December 31,

September 30,

2014

2015

ASSETS

Current assets

Cash and cash equivalents

317,811

291,209

Accounts receivable, net

119,742

126,896

Deferred tax assets, net

29,858

28,720

Prepaid expenses and other current assets

13,355

19,238

Customer deposits

-

3,623

Amounts due from related parties

1

9

Total current assets

480,767

469,695

Property and equipment, net

7,159

6,694

Intangible assets, net

105,419

97,722

Investment in affiliates

273

414

Goodwill

40,563

40,064

Other non-current assets

4,085

2,290

Total assets

638,266

616,879

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

371

496

Accrued payroll and welfare expenses

48,007

44,565

Income tax payable

57,246

57,306

Other tax payable

27,805

30,747

Amounts due to related parties

5,289

10,847

Advance from customers and deferred revenue

5,054

5,660

Accrued marketing and advertising expenses

19,270

10,069

Consideration payable of acquiring non-controlling interest

25,646

10,856

Other current liabilities

8,612

8,075

Total current liabilities

197,300

178,621

Deferred tax liabilities

26,042

25,050

Total liabilities

223,342

203,671

Equity

Ordinary shares ($0.001 par value): 500,000,000 shares      authorized, 134,015,621 and 134,681,204 shares issued and      outstanding, as of December 31, 2014 and September 30,      2015, respectively

134

135

Additional paid-in capital

788,247

770,153

Accumulated deficit

(377,876)

(356,137)

Subscription receivables

(689)

-

Accumulated other comprehensive income (loss)

5,030

(423)

Total Leju equity

414,846

413,728

Non-controlling interests

78

(520)

Total equity

414,924

413,208

TOTAL LIABILITIES AND EQUITY

638,266

616,879

 

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,

2014

2015

2014

2015

Revenues

E-commerce

84,159

106,432

202,191

290,851

Online advertising services

41,802

39,371

111,218

97,157

Listing services

2,313

5,403

10,769

14,435

Total revenues

128,274

151,206

324,178

402,443

Cost of revenues

(12,929)

(15,305)

(36,791)

(45,831)

Selling, general and administrative expenses

(84,562)

(117,511)

(237,514)

(331,247)

Other operating income

761

2,382

2,139

2,893

Income from operations

31,544

20,772

52,012

28,258

Interest income

377

260

806

903

Other income (expenses), net

(20)

107

43

248

Income before taxes and equity in affiliates

31,901

21,139

52,861

29,409

Income tax expense

(5,502)

(5,244)

(8,960)

(7,187)

Income before equity in affiliates

26,399

15,895

43,901

22,222

Loss from equity in affiliates

(46)

(75)

(160)

(230)

Net income

26,353

15,820

43,741

21,992

Less: net income (loss) attributable to      non-controlling interests

670

(223)

445

(574)

Net income attributable to Leju shareholders

25,683

16,043

43,296

22,566

Earnings per share:

Basic

0.19

0.12

0.34

0.17

Diluted

0.19

0.12

0.33

0.17

Shares used in computation:

Basic

133,529,420

134,663,857

127,885,374

134,448,793

Diluted

137,596,250

135,308,945

130,834,223

136,397,775

Note 1

The conversion of Renminbi ("RMB") amounts into USD amounts is based on the rate of USD1 = RMB6.3613 on September 30, 2015 and USD1 = RMB6.2378 for the nine months ended September 30, 2015

 

 

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,

2014

2015

2014

2015

Net income

26,353

15,820

43,741

21,992

Other comprehensive loss, net of tax of nil

Foreign currency translation adjustment

(187)

(5,588)

(841)

(5,471)

Comprehensive income

26,166

10,232

42,900

16,521

Less: Comprehensive income (loss) attributable      to non-controlling interest

747

(241)

412

(592)

Comprehensive income attributable to Leju  shareholders

25,419

10,473

42,488

17,113

 

 

 

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,

2014

2015

2014

2015

(unaudited)

(unaudited)

(unaudited)

(unaudited)

GAAP income from operations

31,544

20,772

52,012

28,258

Share-based compensation expense

2,844

2,739

6,882

9,573

Amortization of intangible assets resulting from business      acquisitions

3,273

3,157

11,294

9,496

Non-GAAP income from operations

37,661

26,668

70,188

47,327

GAAP net income

26,353

15,820

43,741

21,992

Share-based compensation expense (net of tax)

2,844

2,739

6,882

9,573

Amortization of intangible assets resulting from      business acquisitions (net of tax)

2,763

2,368

9,313

7,122

Non-GAAP net income

31,960

20,927

59,936

38,687

Net income attributable to Leju Shareholder

25,683

16,043

43,296

22,566

Share-based compensation expense      (net of tax and non-controlling interests)

2,844

2,739

6,882

9,573

Amortization of intangible assets resulting from business      acquisitions (net of tax and non-controlling interests)

2,734

2,368

9,198

7,122

Non-GAAP net income attributable to Leju      shareholders

31,261

21,150

59,376

39,261

GAAP net income per ADS -- basic

0.19

0.12

0.34

0.17

GAAP net income per ADS -- diluted

0.19

0.12

0.33

0.17

Non-GAAP net income per ADS -- basic

0.23

0.16

0.46

0.29

Non-GAAP net income per ADS -- diluted

0.23

0.16

0.45

0.29

Shares used in calculating basic GAAP / non-GAAP net      income attributable to shareholders per ADS

133,529,420

134,663,857

127,885,374

134,448,793

Shares used in calculating diluted GAAP / non-GAAP net      income attributable to shareholders per ADS

 

137,596,250

135,308,945

130,834,223

136,397,775

 

 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

Three months ended

Nine months ended

September 30,

September 30,

2014

2015

2014

2015

Operating data for e-commerce services

Number of discount coupons issued to      prospective purchasers (number of      transactions)

85,843

70,641

223,807

205,895

Number of discount coupons redeemed (number      of transactions)

59,811

57,303

143,407

141,827

 

SOURCE Leju Holdings Limited



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http://ir.leju.com