BEIJING, June 14, 2017 /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
March 31, 2017.
First Quarter 2017 Financial Highlights
- Total revenues decreased by 40% year-on-year to $68.3 million.
-
- Revenues from e-commerce services decreased by 56% year-on-year
to $38.1 million.
- Revenues from online advertising services increased by 18%
year-on-year to $25.8 million.
- Revenues from listing services decreased by 14% year-on-year to
$4.4 million.
- Loss from operations was $46.3
million. Non-GAAP[1] loss from operations was $41.8 million.
- Net loss attributable to Leju shareholders was $28.2 million, or $0.21 loss per diluted American depositary share
("ADS"). Non-GAAP net loss attributable to Leju shareholders was
$24.2 million, or $0.18 loss per diluted ADS.
[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.
|
"We continued to operate in a difficult environment during the
first quarter of 2017," said Mr. Geoffrey
He, Leju's Chief Executive Officer. "Tightening
measures put in place in late 2016 by the PRC government in the
real estate industry, such as price ceilings and required holdings
periods, continued to affect market conditions and pose challenges
for our businesses, in particular our e-commerce business and
secondary listing business. We do not expect significant
improvement in market conditions in the near future."
Mr. He continued, "Despite the challenging environment, we
maintained our focus on product innovation and client services. Our
new marketing products launched late last year were well-received
by our clients, and this in turn has helped to solidify many
long-term client relationships. Moreover, we are encouraged to see
an increase in our advertising revenue in the first quarter despite
government policies restricting marketing activities by
developers."
First Quarter 2017 Results
Total revenues were $68.3
million, a decrease of 40% from $113.0 million for the same quarter of 2016,
mainly due to decreases in e-commerce service revenue and listing
service revenue as a result of restrictions placed by local
governments.
Revenues from e-commerce services were
$38.1 million, a decrease of 56% from
$86.1 million for the same quarter of
2016, primarily due to decreases in both the number of discount
coupons redeemed and in the average price per discount coupon.
Revenues from online advertising services were
$25.8 million, an increase of 18%
from $21.8 million for the same
quarter of 2016, primarily due to an increase in property
developers' online advertising demand as a result of new products
launched.
Revenues from listing services were $4.4 million, a decrease of 14% from $5.1 million for the same quarter of 2016,
primarily due to a decrease in secondary home sales.
Cost of revenues was $14.1
million, an increase of 4% from $13.6
million for the same quarter of 2016, primarily due to
increased cost of advertising resources purchased from SINA,
partially offset by decreased staffing cost of the editorial
department as a result of headcount change.
Selling, general and administrative expenses were
$100.5 million, a decrease of 11%
from $113.3 million for the same
quarter of 2016, primarily due to decreased marketing expenses
related to the Company's e-commerce business.
Loss from operations was $46.3 million, compared to $13.8 million for the same quarter of 2016.
Non-GAAP loss from operations was $41.8 million, compared to $7.4 million for the same quarter of 2016.
Net loss was $28.6
million, compared to $11.1
million for the same quarter of 2016. Non-GAAP net
loss was $24.7 million,
compared to $5.4 million for the same
quarter of 2016.
Net loss attributable to Leju
shareholders was $28.2
million, or $0.21 loss per
diluted ADS, compared to $11.0
million, or $0.08 loss per
diluted ADS, for the same quarter of 2016. Non-GAAP net loss
attributable to Leju shareholders was $24.2 million, or $0.18 loss per diluted ADS, compared to
$5.3 million, or $0.04 loss per diluted ADS, for the same quarter
of 2016.
Cash Flow
As of March 31, 2017, the
Company's cash and cash equivalents balance was
$219.8 million.
First quarter 2017 net cash used in operating
activities was $55.7 million,
mainly attributable to non-GAAP net loss of $24.7 million, a decrease in accrued payable and
welfare expenses of $8.4 million and
a decrease in income tax payable and other tax payable of
$26.3 million, partially offset by a
decrease in customer deposit of $5.1
million.
Business Outlook
The Company estimates that its total revenues for the second
quarter of 2017 will be approximately $75
million to $80 million, which would represent a decrease of
approximately 49% to 53% from $158.3
million in the same quarter in 2016. This forecast reflects
the Company's current and preliminary view, which is subject to
change.
Management Changes
Leju announced that Min Chen has
tendered her resignation from the position of the Company's Chief
Financial Officer ("CFO"), effective June
13, 2017, to pursue other career opportunities. Meanwhile,
the Company announced that it has appointed Li-Lan Cheng as acting CFO and Michelle Yuan as deputy CFO, effective the same
date.
"Min has made important contributions to Leju since she joined
the Company in 2014," said Xin Zhou,
Leju's Executive Chairman. "We thank her for her leadership and
dedication to the Company and wish her all the best in her future
endeavors. Both Li-Lan and Michelle have been with Leju's principal
shareholder E-House for many years and are very familiar with
Leju's business. I am confident that they will immediately
contribute to Leju's management and help lead the Company in its
next phase of development."
Ms. Chen said, "I have been privileged to have worked with
Leju's strong management and operating teams for the past few years
and to have witnessed the Company's growth into the leading
integrated marketing platform in the real estate services industry.
I'm confident that the Company will be able to further leverage its
innovative and execution strengths to generate long-term growth in
the coming years."
Conference Call Information
Leju's management will host an earnings conference call on
June 14, 2017 at 7 a.m. U.S. Eastern Time (7 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 June 21,
2017:
U.S./International:
|
+1-866-846-0868
|
Hong Kong:
|
+
800-966-697
|
Mainland
China:
|
+
400-184-2240
|
Passcode:
|
3260000
|
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 370 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 SINA
Corporation, 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 carve-out from E-House (China) Holdings Limited ("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 principal shareholding 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. Annie Huang
Leju Holdings Limited
Phone: +86 (10) 5895-1062
E-mail: ir@leju.com
Philip Lisio
Foote Group
Phone: +86 135-0116-6560
E-mail: phil@thefootegroup.com
LEJU HOLDINGS
LIMITED
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of
U.S. dollars)
|
|
|
|
|
December
31,
|
|
March
31,
|
|
|
|
2016
|
|
|
2017
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
274,338
|
|
|
|
219,830
|
|
Accounts receivable,
net
|
|
|
|
71,390
|
|
|
|
69,989
|
|
Marketable
securities
|
|
|
|
2,181
|
|
|
|
2,087
|
|
Prepaid expenses and
other current assets
|
|
|
|
12,756
|
|
|
|
14,553
|
|
Customer
deposits
|
|
|
|
39,702
|
|
|
|
34,517
|
|
Amounts due from
related parties
|
|
|
|
6,019
|
|
|
|
8,000
|
|
Total current
assets
|
|
|
|
406,386
|
|
|
|
348,976
|
|
Property and
equipment, net
|
|
|
|
7,923
|
|
|
|
7,430
|
|
Intangible assets,
net
|
|
|
|
78,374
|
|
|
|
75,320
|
|
Investment in
affiliates
|
|
|
|
409
|
|
|
|
336
|
|
Goodwill
|
|
|
|
39,018
|
|
|
|
39,081
|
|
Deferred tax
assets
|
|
|
|
41,698
|
|
|
|
41,926
|
|
Other non-current
assets
|
|
|
|
2,059
|
|
|
|
2,062
|
|
Total
assets
|
|
|
|
575,867
|
|
|
|
515,131
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
1,574
|
|
|
|
1,301
|
|
Accrued payroll and
welfare expenses
|
|
|
|
41,728
|
|
|
|
33,415
|
|
Income tax
payable
|
|
|
|
66,148
|
|
|
|
43,316
|
|
Other tax
payable
|
|
|
|
16,678
|
|
|
|
13,398
|
|
Amounts due to
related parties
|
|
|
|
1,581
|
|
|
|
4,506
|
|
Advance from
customers and deferred revenue
|
|
|
|
5,058
|
|
|
|
5,292
|
|
Accrued marketing and
advertising expenses
|
|
|
|
9,355
|
|
|
|
5,384
|
|
Other current
liabilities
|
|
|
|
8,516
|
|
|
|
9,167
|
|
Total current
liabilities
|
|
|
|
150,638
|
|
|
|
115,779
|
|
Deferred tax
liabilities
|
|
|
|
18,869
|
|
|
|
18,972
|
|
Total
liabilities
|
|
|
|
169,507
|
|
|
|
134,751
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Ordinary shares
($0.001 par value): 1,000,000,000 shares
authorized, 135,503,958 and 135,763,962 shares
issued and
outstanding, as of December 31, 2016 and March 31,
2017,
respectively
|
|
|
|
136
|
|
|
|
136
|
|
Additional paid-in
capital
|
|
|
|
785,019
|
|
|
|
786,433
|
|
Accumulated
deficit
|
|
|
|
(354,365)
|
|
|
|
(382,538)
|
|
Accumulated other
comprehensive income
|
|
|
|
(22,321)
|
|
|
|
(21,072)
|
|
Total Leju
equity
|
|
|
|
408,469
|
|
|
|
382,959
|
|
Non-controlling
interests
|
|
|
|
(2,109)
|
|
|
|
(2,579)
|
|
Total
equity
|
|
|
|
406,360
|
|
|
|
380,380
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
|
|
575,867
|
|
|
|
515,131
|
|
|
|
|
|
|
|
|
|
|
|
LEJU HOLDINGS
LIMITED
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
Three months
ended
|
|
March
31,
|
|
2016
|
|
2017
|
Revenues
|
|
|
|
|
|
E-commerce
|
|
86,088
|
|
|
38,091
|
Online
advertising
|
|
21,781
|
|
|
25,793
|
Listing
|
|
5,119
|
|
|
4,424
|
Total
revenues
|
|
112,988
|
|
|
68,308
|
Cost of
revenues
|
|
(13,597)
|
|
|
(14,130)
|
Selling, general and
administrative expenses
|
|
(113,312)
|
|
|
(100,521)
|
Other operating
income
|
|
102
|
|
|
71
|
Loss from
operations
|
|
(13,819)
|
|
|
(46,272)
|
Interest
income
|
|
222
|
|
|
283
|
Other income (loss),
net
|
|
(15)
|
|
|
128
|
Investment
loss
|
|
(193)
|
|
|
-
|
Loss before taxes
and equity in affiliates
|
|
(13,805)
|
|
|
(45,861)
|
Income tax
benefit
|
|
2,804
|
|
|
17,293
|
Loss before equity
in affiliates
|
|
(11,001)
|
|
|
(28,568)
|
Loss from equity in
affiliates
|
|
(60)
|
|
|
(76)
|
Net
Loss
|
|
(11,061)
|
|
|
(28,644)
|
Less: net loss
attributable to non-controlling interests
|
|
(97)
|
|
|
(471)
|
Loss attributable to
Leju shareholders
|
|
(10,964)
|
|
|
(28,173)
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
Basic
|
|
(0.08)
|
|
|
(0.21)
|
Diluted
|
|
(0.08)
|
|
|
(0.21)
|
Shares used in
computation:
|
|
|
|
|
|
Basic
|
|
134,976,346
|
|
|
135,541,514
|
Diluted
|
|
134,976,346
|
|
|
135,541,514
|
|
|
|
|
|
|
Note 1: The conversion of Renminbi
("RMB") amounts into USD amounts is based on the rate of USD1 =
RMB6.8993 on March 31, 2017 and USD1 = RMB6.8925 for the three
months ended March 31,
2017
|
LEJU HOLDINGS
LIMITED
|
UNAUDITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
2016
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
(11,061)
|
|
|
|
(28,644)
|
|
Other comprehensive
income, net of tax of nil
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
|
790
|
|
|
|
1,243
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
(10,271)
|
|
|
|
(27,401)
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
loss attributable to non-controlling interest
|
|
|
|
(98)
|
|
|
|
(478)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to Leju shareholders
|
|
|
|
(10,173)
|
|
|
|
(26,923)
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
March
31,
|
|
2016
|
|
2017
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
(13,819)
|
|
|
(46,272)
|
Share-based
compensation expense
|
|
3,363
|
|
|
1,422
|
Amortization of
intangible assets resulting from business
acquisitions
|
|
3,084
|
|
|
3,031
|
Non-GAAP loss from
operations
|
|
(7,372)
|
|
|
(41,819)
|
|
|
|
|
|
|
GAAP net
loss
|
|
(11,061)
|
|
|
(28,644)
|
Share-based
compensation expense (net of tax)
|
|
3,363
|
|
|
1,422
|
Amortization of
intangible assets resulting from
business
acquisitions (net of tax)
|
|
2,313
|
|
|
2,570
|
Non-GAAP net
loss
|
|
(5,385)
|
|
|
(24,652)
|
|
|
|
|
|
|
Net loss
attributable to Leju shareholders
|
|
(10,964)
|
|
|
(28,173)
|
Share-based
compensation expense (net of tax and
non-controlling interests)
|
|
3,355
|
|
|
1,414
|
Amortization of
intangible assets resulting from business
acquisitions (net of tax and non-controlling
interests)
|
|
2,313
|
|
|
2,570
|
Non-GAAP net loss
attributable to Leju shareholders
|
|
(5,296)
|
|
|
(24,189)
|
|
|
|
|
|
|
GAAP net loss per
ADS --
basic
|
|
(0.08)
|
|
|
(0.21)
|
|
|
|
|
|
|
GAAP net loss per
ADS --
diluted
|
|
(0.08)
|
|
|
(0.21)
|
|
|
|
|
|
|
Non-GAAP net loss per
ADS --
basic
|
|
(0.04)
|
|
|
(0.18)
|
|
|
|
|
|
|
Non-GAAP net loss per
ADS --
diluted
|
|
(0.04)
|
|
|
(0.18)
|
|
|
|
|
|
|
Shares used in
calculating basic GAAP / non-GAAP net loss
attributable to Leju shareholders per
ADS
|
|
134,976,346
|
|
|
135,541,514
|
Shares used in
calculating diluted GAAP / non-GAAP net loss
attributable to Leju shareholders per
ADS
|
|
134,976,346
|
|
|
135,541,514
|
|
|
|
|
|
|
LEJU HOLDINGS
LIMITED
|
SELECTED OPERATING
DATA
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2016
|
|
2017
|
Operating data for
e-commerce services
|
|
|
|
|
|
|
|
|
Number of discount
coupons issued to prospective purchasers
(number of transactions)
|
|
|
59,302
|
|
|
|
43,449
|
|
Number of discount
coupons redeemed (number of transactions)
|
|
|
34,243
|
|
|
|
18,987
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/leju-reports-first-quarter-2017-results-300473743.html
SOURCE Leju Holdings Limited