Leju Reports Second Quarter and Half Year 2019 Results
Second Quarter 2019 Financial Highlights
- Total revenues increased by 39% year-on-year to
$170.0 million .- Revenues from e-commerce services increased by 51% year-on-year to
$132.4 million . - Revenues from online advertising services increased by 8% year-on-year to
$37.2 million .
- Revenues from e-commerce services increased by 51% year-on-year to
- Income from operations was
$12.0 million , an increase of 20% from$10.0 million for the same quarter of 2018. - Non-GAAP[1] income from operations was
$15.7 million , an increase of 10% from$14.3 million for the same quarter of 2018. - Net income attributable to
Leju Holdings Limited shareholders was$9.4 million , or$0.07 per diluted American depositary share ("ADS"), compared to net loss attributable toLeju Holdings Limited shareholders of$0.9 million , or$0.01 loss per diluted ADS, for the same quarter of 2018. - Non-GAAP net income attributable to
Leju Holdings Limited shareholders was$12.3 million , or$0.09 per diluted ADS, an increase of 388% from$2.5 million , or$0.02 per diluted ADS, for the same quarter of 2018.
First Half 2019 Financial Highlights
- Total revenues increased by 37% year-on-year to
$280.4 million .- Revenues from e-commerce services increased by 48% year-on-year to
$209.2 million . - Revenues from online advertising services increased by 14% year-on-year to
$70.3 million .
- Revenues from e-commerce services increased by 48% year-on-year to
- Loss from operations was
$7.1 million , a decrease of 67% from loss from operations of$21.5 million for the same period of 2018. - Non-GAAP income from operations was
$0.4 million , compared to non-GAAP loss from operations of$12.8 million for the same period of 2018. - Net loss attributable to
Leju Holdings Limited shareholders was$4.1 million , or$0.03 loss per diluted ADS, a decrease of 81% from net loss attributable toLeju Holdings Limited shareholders of$21.7 million , or$0.16 loss per diluted ADS for the same period of 2018. - Non-GAAP net income attributable to
Leju Holdings Limited shareholders was$1.8 million , or$0.01 per diluted ADS, compared to non-GAAP net loss attributable toLeju Holdings Limited shareholders of$14.7 million , or$0.11 loss per diluted ADS for the same period of 2018.
[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, amortization of intangible assets resulting from business acquisitions and income tax impact on the share-based compensation expense, amortization of intangible assets resulting from business combinations. 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. |
"We are pleased that
Second Quarter 2019 Results
Total revenues were
Revenues from e-commerce services were
Revenues from online advertising services were
Revenues from listing services were
Cost of revenues was
Selling, general and administrative expenses were
Income from operations was
Net income was
Net income attributable to
First Half 2019 Results
Total revenues were
Revenues from e-commerce services were
Revenues from online advertising services were
Revenues from listing services were
Cost of revenues was
Selling, general and administrative expenses were
Loss from operations was
Net loss was
Net loss attributable to
Cash Flow
As of
Second quarter 2019 net cash provided by operating activities was
Business Outlook
The Company estimates that its total revenues for the third quarter of 2019 will be approximately $170 million to $180 million, which would represent an increase of approximately 27% to 35% from
Conference Call Information
Dial-in details for the earnings conference call are as follows:
U.S./International: |
+1-845-675-0437 |
Hong Kong: |
+852-3018-6771 |
Mainland China: |
400-620-8038 |
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "
A replay of the conference call may be accessed by phone at the following number until
U.S./International: |
+1-855-452-5696 |
Hong Kong: |
800-963-117 |
Mainland China: |
400-632-2162 |
Passcode: |
4069729 |
Additionally, a live and archived webcast will be available at http://ir.leju.com.
About
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.
About Non-GAAP Financial Measures
To supplement
For investor and media inquiries please contact:
Ms.
Phone: +86 (10) 5895-1062
E-mail: ir@leju.com
Phone: +86 135-0116-6560
E-mail: phil@thefootegroup.com
LEJU HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars) |
||||||||||||
December 31, |
June 30, |
|||||||||||
ASSETS |
2018 |
2019 |
||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
147,263 |
166,613 |
||||||||||
Accounts receivable, net |
102,697 |
122,804 |
||||||||||
Contract assets |
2,137 |
1,303 |
||||||||||
Marketable securities |
2,467 |
3,327 |
||||||||||
Prepaid expenses and other current assets |
8,621 |
8,871 |
||||||||||
Customer deposits |
10,672 |
2,195 |
||||||||||
Amounts due from related parties |
6,695 |
7,573 |
||||||||||
Total current assets |
280,552 |
312,686 |
||||||||||
Property and equipment, net |
14,058 |
17,865 |
||||||||||
Intangible assets, net |
57,401 |
51,177 |
||||||||||
Right-of-use assets[2] |
— |
33,795 |
||||||||||
Investment in affiliates |
63 |
37 |
||||||||||
Deferred tax assets |
62,356 |
62,252 |
||||||||||
Other non-current assets |
2,297 |
1,390 |
||||||||||
Total assets |
416,727 |
479,202 |
||||||||||
LIABILITIES AND EQUITY |
||||||||||||
Current liabilities |
||||||||||||
Accounts payable |
803 |
2,062 |
||||||||||
Accrued payroll and welfare expenses |
30,628 |
30,637 |
||||||||||
Income tax payable |
58,030 |
56,230 |
||||||||||
Other tax payable |
12,675 |
15,422 |
||||||||||
Amounts due to related parties |
3,477 |
14,626 |
||||||||||
Advance from customers |
26,873 |
34,899 |
||||||||||
Lease liabilities, current[2] |
— |
6,478 |
||||||||||
Accrued marketing and advertising expenses |
14,896 |
18,149 |
||||||||||
Other current liabilities |
12,999 |
20,030 |
||||||||||
Total current liabilities |
160,381 |
198,533 |
||||||||||
Lease liabilities, non-current[2] |
— |
27,570 |
||||||||||
Deferred tax liabilities |
14,780 |
14,755 |
||||||||||
Total liabilities |
175,161 |
240,858 |
||||||||||
Shareholders' Equity |
||||||||||||
Ordinary shares ($0.001 par value): 1,000,000,000 shares |
136 |
136 |
||||||||||
Additional paid-in capital |
792,626 |
793,798 |
||||||||||
Accumulated deficit |
(528,825)) |
(532,964) |
||||||||||
Accumulated other comprehensive loss |
(19,848) |
(20,319) |
||||||||||
Total Leju Holdings Limited shareholders' equity |
244,089 |
240,651 |
||||||||||
Non-controlling interests |
(2,523) |
(2,307) |
||||||||||
Total equity |
241,566 |
238,344 |
||||||||||
TOTAL LIABILITIES AND EQUITY |
416,727 |
479,202 |
||||||||||
[2] In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group adopted this ASU on January 1, 2019 using the modified retrospective approach and the financial statements for the comparative period has not been restated. |
LEJU HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share data and per share data) |
||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2018 |
2019 |
2018 |
2019 |
|||||||||||||
Revenues |
||||||||||||||||
E-commerce |
87,571 |
132,365 |
141,041 |
209,214 |
||||||||||||
Online advertising services |
34,361 |
37,153 |
61,491 |
70,332 |
||||||||||||
Listing services |
744 |
447 |
1,667 |
852 |
||||||||||||
Total revenues |
122,676 |
169,965 |
204,199 |
280,398 |
||||||||||||
Cost of revenues |
(18,405) |
(18,293) |
(37,080) |
(41,831) |
||||||||||||
Selling, general and administrative expenses |
(94,749) |
(140,040) |
(189,927) |
(246,017) |
||||||||||||
Other operating income |
478 |
346 |
1,308 |
368 |
||||||||||||
Income (loss) from operations |
10,000 |
11,978 |
(21,500) |
(7,082) |
||||||||||||
Interest income |
272 |
202 |
559 |
585 |
||||||||||||
Other income (loss), net |
(5,209) |
696 |
(2,372) |
1,293 |
||||||||||||
Income (loss) before taxes and loss from equity |
5,063 |
12,876 |
(23,313) |
(5,204) |
||||||||||||
Income tax benefits/(expenses) |
(6,024) |
(3,232) |
1,093 |
1,307 |
||||||||||||
Income (loss) before loss from equity in affiliates |
(961) |
9,644 |
(22,220) |
(3,897) |
||||||||||||
Loss from equity in affiliates |
(32) |
(14) |
(51) |
(26) |
||||||||||||
Net income (loss) |
(993 (993))
|
9,630 |
(22,271) |
(3,923) |
||||||||||||
Less: net income (loss) attributable to non-controlling interests |
(109) |
278 |
(525) |
216 |
||||||||||||
Income (loss) attributable to Leju Holdings |
(884) |
9,352 |
(21,746) |
(4,139) |
||||||||||||
Earnings (loss) per ADS: |
||||||||||||||||
Basic |
(0.01) |
0.07 |
(0.16) |
(0.03) |
||||||||||||
Diluted |
(0.01) |
0.07 |
(0.16) |
(0.03) |
||||||||||||
Shares used in computation of earnings (loss) per ADS: |
||||||||||||||||
Basic |
135,763,962 |
135,763,962 |
135,763,962 |
135,763,962 |
||||||||||||
Diluted |
135,763,962 |
135,769,776 |
135,763,962 |
135,763,962 |
||||||||||||
The conversion of functional currency Renminbi ("RMB") amounts into reporting currency USD amounts is based on the rate of USD1 = RMB6.8747 on June 30, 2019 and USD1 = RMB6.8005 for the six months ended June 30, 2019. |
LEJU HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (In thousands of U.S. dollars)
|
|||||||||||||||||
Three months ended |
Six months ended |
||||||||||||||||
June 30, |
June 30, |
||||||||||||||||
2018 |
2019 |
2018 |
2019 |
||||||||||||||
Net income (loss) |
(993) |
9,630 |
(22,271) |
(3,923) |
|||||||||||||
Other comprehensive loss, net of tax of nil |
|||||||||||||||||
Foreign currency translation adjustment |
(2,982) |
(3,805) |
(773) |
(471) |
|||||||||||||
Comprehensive income (loss) |
(3,975) |
5,825) |
(23,044) |
(4,394) |
|||||||||||||
Less: Comprehensive income (loss) attributable to |
38 |
311 |
(480) |
216 |
|||||||||||||
Comprehensive income (loss) attributable to Leju Holdings Limited shareholders |
(4,013) |
5,514 |
(22,564) |
(4,610) |
|||||||||||||
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 |
Six months ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2018 |
2019 |
2018 |
2019 |
|||||||||||||
GAAP income (loss) from operations |
10,000 |
11,978 |
(21,500) |
(7,082) |
||||||||||||
Share-based compensation expense
|
1,056 |
596 |
2,035 |
1,171 |
||||||||||||
Amortization of intangible assets resulting from business acquisitions |
3,205 |
3,153 |
6,655 |
6,306 |
||||||||||||
Non-GAAP income (loss) from operations |
14,261 |
15,727 |
(12,810) |
395 |
||||||||||||
GAAP net income (loss) |
(993) |
9,630 |
(22,271) |
(3,923) |
||||||||||||
Share-based compensation expense |
1,056 |
596 |
2,035 |
1,171 |
||||||||||||
Amortization of intangible assets resulting from |
3,205 |
3,153 |
6,655 |
6,306 |
||||||||||||
Income tax benefit: |
||||||||||||||||
Current |
— |
— |
— |
— |
||||||||||||
Deferred[3] |
(847) |
(788) |
(1,664) |
(1,576) |
||||||||||||
Non-GAAP net income (loss) |
2,421 |
12,591 |
(15,245) |
1,978 |
||||||||||||
Net income (loss) attributable to Leju Holdings Limited |
(884) |
9,352 |
(21,746) |
(4,139) |
||||||||||||
Share-based compensation expense |
1,048 |
596 |
2,019 |
1,171 |
||||||||||||
Amortization of intangible assets resulting from business acquisitions (net of non-controlling interests) |
3,205 |
3,153 |
6,655 |
6,306 |
||||||||||||
Income tax benefit: |
||||||||||||||||
Current |
— |
— |
— |
— |
||||||||||||
Deferred |
(847) |
(788) |
(1,664) |
(1,576) |
||||||||||||
Non-GAAP net income (loss) attributable to Leju Holdings Limited shareholders
|
2,522 |
12,313 |
(14,736) |
1,762 |
||||||||||||
GAAP net income (loss) per ADS — basic |
(0.01) |
0.07 |
(0.16) |
(0.03) |
||||||||||||
GAAP net income (loss) per ADS — diluted |
(0.01) |
0.07 |
(0.16) |
(0.03) |
||||||||||||
Non-GAAP net income (loss) per ADS — basic |
0.02 |
0.09 |
(0.11) |
0.01 |
||||||||||||
Non-GAAP net income (loss) per ADS — diluted |
0.02 |
0.09 |
(0.11) |
0.01 |
||||||||||||
Shares used in calculating basic GAAP / non-GAAP net income (loss) attributable to shareholders per ADS |
135,763,962 |
135,763,962 |
135,763,962 |
135,763,962 |
||||||||||||
Shares used in calculating diluted GAAP net income (loss) attributable to shareholders per ADS |
135,763,962 |
135,769,776 |
135,763,962 |
135,763,962 |
||||||||||||
Shares used in calculating diluted non-GAAP net income |
135,763,962 |
135,769,776 |
135,763,962 |
135,766,869 |
||||||||||||
[3] Amount represents the realization of deferred tax liabilities recognized for the temporary difference between the tax basis of intangible assets recognized from acquisitions and their reported amounts in the financial statements. The income tax impact on the share-based compensation expense is nil. |
LEJU HOLDINGS LIMITED SELECTED OPERATING DATA |
||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2018 |
2019 |
2018 |
2019 |
|||||||||||||
Operating data for e-commerce services |
||||||||||||||||
Number of discount coupons issued to |
58,252 |
64,820 |
77,930 |
94,369 |
||||||||||||
Number of discount coupons redeemed (number |
20,888 |
36,235 |
34,687 |
55,794 |
||||||||||||
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