BEIJING, May 28, 2018 /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, 2018.
First Quarter 2018 Financial Highlights
- Total revenues increased by 19% year-on-year to $81.5 million
- Revenues from e-commerce services increased by 40% year-on-year
to $53.5 million
- Revenues from online advertising services increased by 5%
year-on-year to $27.1 million
- Loss from operations was $31.5
million, a decrease of 32% from $46.3
million for the same quarter of 2017. Non-GAAP[1]
loss from operations was $27.1
million, a decrease of 35% from $41.8
million for the same quarter of 2017
- Net loss attributable to Leju Holdings Limited shareholders was
$20.9 million, or $0.15 loss per diluted American depositary share
("ADS"), a decrease of 26% from $28.2
million, or $0.21 loss per
diluted ADS, for the same quarter of 2017. Non-GAAP net loss
attributable to Leju Holdings Limited shareholders was $17.3 million, or $0.13 loss per diluted ADS, a decrease of 29%
from $24.2 million, or $0.18 loss per diluted ADS, for the same quarter
of 2017
[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.
|
"I'm pleased that our businesses returned to a growth trajectory
in the first quarter of 2018 despite the overall market environment
not showing signs of major improvement," said Mr. Geoffrey He, Leju's Chief Executive Officer.
"Our e-commerce business had a strong recovery, benefitting from
larger contribution from lower-tier cities and higher value per
coupon. We also entered into annual framework contracts with many
leading real estate developers. Our online advertising business
achieved steady growth in the first quarter as a result of our
big-data based suite of targeted advertising products, which
continued to be well received by the market. Meanwhile, we further
enhanced our media influence and content productivity through
enhancing 'Leju Finance', our recently launched real estate
vertical media platform, which helped lay a solid foundation for
future growth. In addition, our efforts to streamline our cost
structure began to show results in the first quarter. We will
continue to improve our operational efficiency and aim to return to
profitability. "
First Quarter 2018 Results
Total revenues were $81.5
million, an increase of 19% from $68.3 million for the same quarter of 2017,
mainly due to an increase in revenues from e-commerce services and
online advertising services.
Revenues from e-commerce services were
$53.5 million, an increase of 40%
from $38.1 million for the same
quarter of 2017, primarily due to increases in the average price
per discount coupon redeemed.
Revenues from online advertising services were
$27.1 million, an increase of 5% from
$25.8 million for the same quarter of
2017, primarily due to an increase in property developers' demand
for online advertising.
Revenues from listing services were $0.9 million, a decrease of 79% from $4.4 million for the same quarter of 2017,
primarily due to a decrease in secondary real estate brokers'
demand.
Cost of revenues was $18.7
million, an increase of 32% from $14.1 million for the same quarter of 2017,
primarily due to increased cost of advertising resources purchased
from media platforms, partially offset by decreased staff cost as a
result of headcount change.
Selling, general and administrative expenses were
$95.2 million, a decrease of 5% from
$100.5 million for the same quarter
of 2017, primarily due to lower
staff cost as a result of headcount change.
Loss from operations was $31.5 million, a decrease of 32% from
$46.3 million for the same quarter of
2017. Non-GAAP loss from operations was $27.1 million, a decrease of 35% from
$41.8 million for the same quarter of
2017.
Net loss was $21.3
million, a decrease of 26% from $28.6
million for the same quarter of 2017. Non-GAAP net
loss was $17.7 million, a
decrease of 28% from $24.7 million
for the same quarter of 2017.
Net loss attributable to Leju Holdings
Limited shareholders was $20.9
million, or $0.15 loss per
diluted ADS, a decrease of 26% from $28.2
million, or $0.21 loss per
diluted ADS, for the same quarter of 2017. Non-GAAP net loss
attributable to Leju Holdings Limited shareholders was
$17.3 million, or $0.13 loss per diluted ADS, a decrease of 29%
from $24.2 million, or $0.18 loss per diluted ADS, for the same quarter
of 2017.
Cash Flow
As of March 31, 2018, the
Company's cash and cash equivalents balance was
$157.2 million.
First quarter 2018 net cash provided by operating
activities was $1.0 million,
primarily comprised of non-GAAP net loss of $17.7 million, partially offset by a decrease in
customer deposit of $17.5
million.
Business Outlook
The Company estimates that its total revenues for the second
quarter of 2018 will be approximately $106 million
to $111
million, which would represent an increase of approximately 15% to
20%
from $92.7 million in the same
quarter in 2017. 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
May 28, 2018 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:
|
+1-845-675-0437
|
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 "Leju
earnings call."
A replay of the conference call may be accessed by phone at the
following number until June 5,
2018:
U.S./International:
|
+1-855-452-5696
|
Hong
Kong:
|
+800-963-117
|
Mainland
China:
|
+400-632-2162
|
Passcode:
|
4696567
|
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 and prior reliance on
E-House for various corporate services; its reliance on SINA 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 status as
a principal shareholder of 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. Christina Wu
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,
|
|
|
2017
|
|
2018
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
150,968
|
|
157,159
|
Restricted
cash
|
|
337
|
|
350
|
Accounts receivable,
net
|
|
79,196
|
|
77,504
|
Contract
assets
|
|
1,410
|
|
1,571
|
Marketable
securities
|
|
3,077
|
|
3,115
|
Prepaid expenses and
other current assets
|
|
9,945
|
|
9,104
|
Customer
deposits
|
|
35,823
|
|
16,066
|
Amounts due from
related parties
|
|
4,077
|
|
1,248
|
Total current
assets
|
|
284,833
|
|
266,117
|
Property and
equipment, net
|
|
14,240
|
|
14,176
|
Intangible assets,
net
|
|
70,631
|
|
67,149
|
Investment in
affiliates
|
|
146
|
|
132
|
Deferred tax
assets
|
|
67,084
|
|
69,709
|
Other non-current
assets
|
|
2,010
|
|
1,692
|
Total
assets
|
|
438,944
|
|
418,975
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
2,950
|
|
1,968
|
Accrued payroll and
welfare expenses
|
|
37,082
|
|
27,794
|
Income tax
payable
|
|
63,380
|
|
56,428
|
Other tax
payable
|
|
11,654
|
|
11,337
|
Amounts due to
related parties
|
|
3,093
|
|
10,045
|
Advance from
customers and deferred revenue
|
|
10,565
|
|
12,878
|
Accrued marketing and
advertising expenses
|
|
18,852
|
|
22,617
|
Other current
liabilities
|
|
16,315
|
|
18,239
|
Total current
liabilities
|
|
163,891
|
|
161,306
|
Deferred tax
liabilities
|
|
18,016
|
|
18,721
|
Total
liabilities
|
|
181,907
|
|
180,027
|
Shareholders'
Equity
|
|
|
|
|
Ordinary shares
($0.001 par value):
1,000,000,000 shares authorized,
135,763,962 and 135,763,962 shares
issued and outstanding, as of
December 31, 2017 and March 31,
2018, respectively
|
|
136
|
|
136
|
Additional paid-in
capital
|
|
788,589
|
|
789,579
|
Accumulated
deficit
|
|
(515,344)
|
|
(536,226)
|
Accumulated other
comprehensive loss
|
|
(13,078)
|
|
(10,766)
|
Total Leju
Holdings Limited shareholders' equity
|
|
260,303
|
|
242,723
|
Non-controlling
interests
|
|
(3,266)
|
|
(3,775)
|
Total
equity
|
|
257,037
|
|
238,948
|
TOTAL LIABILITIES
AND EQUITY
|
|
438,944
|
|
418,975
|
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,
|
|
|
2017
|
|
2018
|
Revenues
|
|
|
|
|
E-commerce
|
|
38,091
|
|
53,470
|
Online
advertising
|
|
25,793
|
|
27,130
|
Listing
|
|
4,424
|
|
923
|
Total
revenues
|
|
68,308
|
|
81,523
|
Cost of
revenues
|
|
(14,130)
|
|
(18,675)
|
Selling, general and
administrative expenses
|
|
(100,521)
|
|
(95,178)
|
Other operating
income
|
|
71
|
|
830
|
Loss from
operations
|
|
(46,272)
|
|
(31,500)
|
Interest
income
|
|
283
|
|
287
|
Other income,
net
|
|
128
|
|
2,837
|
Loss before taxes
and loss from equity in affiliates
|
|
(45,861)
|
|
(28,376)
|
Income tax
benefit
|
|
17,293
|
|
7,117
|
Loss before loss
from equity in affiliates
|
|
(28,568)
|
|
(21,259)
|
Loss from equity in
affiliates
|
|
(76)
|
|
(19)
|
Net
Loss
|
|
(28,644)
|
|
(21,278)
|
Less: net loss
attributable to non-controlling interests
|
|
(471)
|
|
(416)
|
Loss attributable to
Leju Holdings Limited shareholders
|
|
(28,173)
|
|
(20,862)
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
Basic/
Diluted
|
|
(0.21)
|
|
(0.15)
|
Shares used in
computation of loss per share:
|
|
|
|
|
Basic/
Diluted
|
|
135,541,514
|
|
135,763,962
|
|
Note
1 The conversion of functional currency
Renminbi ("RMB") amounts into reporting currency USD
amounts is based on the rate of USD1 = RMB6.2881 on March 31, 2018
and USD1 = RMB6.4088
for the three months ended March 31, 2018
|
LEJU HOLDINGS
LIMITED
|
UNAUDITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(In thousands of
U.S. dollars)
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2017
|
|
2018
|
|
|
|
|
|
Net
loss
|
|
(28,644)
|
|
(21,278)
|
Other comprehensive
loss, net of tax of nil
|
|
|
|
|
Foreign currency
translation adjustment
|
|
1,243
|
|
2,209
|
|
|
|
|
|
Comprehensive
loss
|
|
(27,401)
|
|
(19,069)
|
|
|
|
|
|
Less: Comprehensive
loss attributable to non-controlling
interest
|
|
(478)
|
|
(518)
|
|
|
|
|
|
Comprehensive loss
attributable to Leju Holdings Limited
shareholders
|
|
(26,923)
|
|
(18,551)
|
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,
|
|
|
2017
|
|
2018
|
|
|
|
|
|
GAAP loss from
operations
|
|
(46,272)
|
|
(31,500)
|
Share-based
compensation expense
|
|
1,422
|
|
979
|
Amortization of
intangible assets resulting from business
acquisitions
|
|
3,031
|
|
3,450
|
Non-GAAP loss from
operations
|
|
(41,819)
|
|
(27,071)
|
|
|
|
|
|
GAAP net
loss
|
|
(28,644)
|
|
(21,278)
|
Share-based
compensation expense (net of tax)
|
|
1,422
|
|
979
|
Amortization of
intangible assets resulting from
business
acquisitions (net of tax)
|
|
2,570
|
|
2,633
|
Non-GAAP net
loss
|
|
(24,652)
|
|
(17,666)
|
|
|
|
|
|
Net loss
attributable to Leju Holdings Limited shareholders
|
|
(28,173)
|
|
(20,862)
|
Share-based
compensation expense (net of tax and non-
controlling interests)
|
|
1,414
|
|
971
|
Amortization of
intangible assets resulting from business
acquisitions (net of tax and
non-controlling interests)
|
|
2,570
|
|
2,633
|
Non-GAAP net loss
attributable to Leju Holdings Limited
shareholders
|
|
(24,189)
|
|
(17,258)
|
|
|
|
|
|
GAAP net loss per
ADS -- basic/ diluted
|
|
(0.21)
|
|
(0.15)
|
|
|
|
|
|
Non-GAAP net loss per
ADS -- basic/ diluted
|
|
(0.18)
|
|
(0.13)
|
|
|
|
|
|
Shares used in
calculating basic GAAP / non-GAAP net loss
attributable to Leju Holdings Limited
shareholders per ADS
|
|
135,541,514
|
|
135,763,962
|
Shares used in
calculating diluted GAAP / non-GAAP net loss
attributable to Leju Holdings Limited
shareholders per ADS
|
|
135,541,514
|
|
135,763,962
|
LEJU HOLDINGS
LIMITED
|
SELECTED OPERATING
DATA
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2017
|
|
2018
|
Operating data for
e-commerce services
|
|
|
|
|
Number of discount
coupons issued to prospective purchasers
(number of transactions)
|
|
43,449
|
|
19,678
|
Number of discount
coupons redeemed (number of transactions)
|
|
18,987
|
|
13,799
|
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SOURCE Leju Holdings Limited