BEIJING, May 28, 2019 /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,
2019.
First Quarter 2019 Financial Highlights
- Total revenues increased by 35% year-on-year to $110.4 million.
- Revenues from e-commerce services increased by 44% year-on-year
to $76.8 million.
- Revenues from online advertising services increased by 22%
year-on-year to $33.2 million.
- Loss from operations was $19.1
million, a decrease of 39% from $31.5
million for the same quarter of 2018.
- Non-GAAP[1] loss
from operations was $15.3 million, a
decrease of 43% from $27.1 million
for the same quarter of 2018.
- Net loss attributable to Leju Holdings Limited shareholders was
$13.5 million, or $0.10 loss per diluted American depositary share
("ADS"), a decrease of 35% from $20.9
million, or $0.15 loss per
diluted ADS, for the same quarter of 2018.
- Non-GAAP net loss attributable to Leju Holdings Limited
shareholders was $10.6 million, or
$0.08 loss per diluted ADS, a
decrease of 39% from $17.3 million,
or $0.13 loss per diluted ADS, for
the same quarter 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 and 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're pleased to announce that Leju delivered strong top line
growth in our online advertising and e-commerce businesses in the
first quarter," said Mr. Geoffrey
He, Leju's Chief Executive Officer. "The substantial market
recovery we have seen so far in 2019 has driven increased developer
demand for marketing services. We further solidified our leading
position in e-commerce business by increasing the number of our
projects significantly in the first quarter, which is a result of
our top-down approach strategy and quick response to market
changes. Our 'New Media' strategy further enhanced Leju's media
influence and laid a solid foundation for sustainable growth in our
online advertising business. In addition, we continued to improve
operational efficiency and streamline our cost structure following
our return to profitability last year. Going forward, we will
continue to focus on market expansion, product innovation, and
organizational optimization, as we strive to improve
profitability."
First Quarter 2019 Results
Total revenues were $110.4 million, an increase of 35% from
$81.5 million for the same quarter of
2018, mainly due to an increase in revenues from e-commerce
services and online advertising services.
Revenues from e-commerce services were
$76.8 million, an increase of 44%
from $53.5 million for the same
quarter of 2018, primarily due to an increase in both the number of
discount coupons redeemed and in the average price per discount
coupon.
Revenues from online advertising services were
$33.2 million, an increase of 22%
from $27.1 million for the same
quarter of 2018, primarily due to an increase in property
developers' demand for online advertising.
Revenues from listing services were
$0.4 million, a decrease of 56% from
$0.9 million for the same quarter of
2018, primarily due to a decrease in secondary real estate brokers'
demand.
Cost of revenues was $23.5 million, an increase of 26% from
$18.7 million for the same quarter of
2018, primarily due to increased cost of advertising resources
purchased from media platforms.
Selling, general and administrative
expenses were $106.0
million, an increase of 11% from $95.2 million for the same quarter of 2018,
primarily due to increased marketing expenses related to the
Company's e-commerce business.
Loss from operations was $19.1 million, a decrease of 39% from
$31.5 million for the same
quarter of 2018. Non-GAAP loss from
operations was $15.3
million, a decrease of 43% from $27.1
million for the same quarter of 2018.
Net loss was $13.6
million, a decrease of 36% from $21.3
million for the same quarter of 2018. Non-GAAP net
loss was $10.6 million, a
decrease of 40% from $17.7 million
for the same quarter of 2018.
Net loss attributable to Leju Holdings Limited
shareholders was $13.5
million, or $0.10 loss per
diluted ADS, a decrease of 35% from $20.9
million, or $0.15 loss per
diluted ADS, for the same quarter of 2018. Non-GAAP net loss
attributable to Leju Holdings Limited shareholders was
$10.6 million, or $0.08 loss per diluted ADS, a decrease of 39%
from $17.3 million, or $0.13 loss per diluted ADS, for the same quarter
of 2018.
Cash Flow
As of March 31, 2019, the
Company's cash and cash equivalents balance was
$137.9 million.
First quarter 2019 net cash used in operating
activities was $11.7 million,
primarily comprised of non-GAAP net loss of $10.6 million and an increase in accounts
receivable and contract assets of $10.3
million, partially offset by an increase in amounts due to
related parties of $5.2 million, an
increase in advance from customer of $2.5
million and a decrease in customer deposits of $1.4 million.
Business Outlook
The Company estimates that its total revenues for the second
quarter of 2019 will be approximately $150
million to $160 million, which
would represent an increase of approximately 22% to 30% from
$122.7 million in the same quarter in
2018. 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, 2019 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,
2019:
U.S./International:
|
+1-855-452-5696
|
Hong
Kong:
|
800-963-117
|
Mainland China:
|
400-632-2162
|
Passcode:
|
5549295
|
|
|
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, amortization of intangible assets
resulting from business acquisitions, and income tax impact on the
share-based compensation expense and amortization of intangible
assets resulting from business combinations. 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
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
March
31,
|
|
|
|
2018
|
|
2019
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
147,263
|
|
|
|
137,899
|
|
|
Accounts receivable,
net
|
|
|
|
102,697
|
|
|
|
111,654
|
|
|
Contract
assets
|
|
|
|
2,137
|
|
|
|
733
|
|
|
Marketable
securities
|
|
|
|
2,467
|
|
|
|
3,213
|
|
|
Prepaid expenses and
other current assets
|
|
|
|
8,621
|
|
|
|
8,654
|
|
|
Customer
deposits
|
|
|
|
10,672
|
|
|
|
9,262
|
|
|
Amounts due from
related parties
|
|
|
|
6,695
|
|
|
|
5,257
|
|
|
Total current
assets
|
|
|
|
280,552
|
|
|
|
276,672
|
|
|
Property and
equipment, net
|
|
|
|
14,058
|
|
|
|
15,528
|
|
|
Intangible assets,
net
|
|
|
|
57,401
|
|
|
|
54,221
|
|
|
Right-of-use
assets[2]
|
|
|
|
—
|
|
|
|
35,894
|
|
|
Investment in
affiliates
|
|
|
|
63
|
|
|
|
52
|
|
|
Deferred tax
assets
|
|
|
|
62,356
|
|
|
|
63,557
|
|
|
Other non-current
assets
|
|
|
|
2,297
|
|
|
|
1,246
|
|
|
Total
assets
|
|
|
|
416,727
|
|
|
|
447,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
803
|
|
|
|
2,138
|
|
|
Accrued payroll and
welfare expenses
|
|
|
|
30,628
|
|
|
|
28,718
|
|
|
Income tax
payable
|
|
|
|
58,030
|
|
|
|
54,656
|
|
|
Other tax
payable
|
|
|
|
12,675
|
|
|
|
13,734
|
|
|
Amounts due to
related parties
|
|
|
|
3,477
|
|
|
|
8,726
|
|
|
Advances from
customers
|
|
|
|
26,873
|
|
|
|
29,386
|
|
|
Lease liabilities,
current[2]
|
|
|
|
—
|
|
|
|
7,924
|
|
|
Accrued marketing and
advertising expenses
|
|
|
|
14,896
|
|
|
|
14,053
|
|
|
Other current
liabilities
|
|
|
|
12,999
|
|
|
|
12,897
|
|
|
Total current
liabilities
|
|
|
|
160,381
|
|
|
|
172,232
|
|
|
Lease liabilities,
non-current[2]
|
|
|
|
—
|
|
|
|
27,950
|
|
|
Deferred tax
liabilities
|
|
|
|
14,780
|
|
|
|
15,065
|
|
|
Total
liabilities
|
|
|
|
175,161
|
|
|
|
215,247
|
|
|
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, 2018 and March 31,2019,
respectively
|
|
|
|
136
|
|
|
|
136
|
|
|
Additional paid-in
capital
|
|
|
|
792,626
|
|
|
|
793,202
|
|
|
Accumulated
deficit
|
|
|
|
(528,825)
|
|
|
|
(542,316)
|
|
|
Accumulated other
comprehensive loss
|
|
|
|
(19,848)
|
|
|
|
(16,481)
|
|
|
Total Leju Holdings
Limited shareholders' equity
|
|
|
|
244,089
|
|
|
|
234,541
|
|
|
Non-controlling
interests
|
|
|
|
(2,523)
|
|
|
|
(2,618)
|
|
|
Total
equity
|
|
|
|
241,566
|
|
|
|
231,923
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
|
|
416,727
|
|
|
|
447,170
|
|
|
________________________________
|
|
|
|
|
|
|
|
|
|
|
[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
|
|
|
|
|
March
31,
|
|
|
|
|
2018
|
|
2019
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
E-commerce
|
|
|
53,470
|
|
|
|
76,849
|
|
|
Online
advertising
|
|
|
27,130
|
|
|
|
33,179
|
|
|
Listing
|
|
|
|
923
|
|
|
|
405
|
|
|
Total
revenues
|
|
|
81,523
|
|
|
|
110,433
|
|
|
Cost of
revenues
|
|
|
(18,675)
|
|
|
|
(23,538)
|
|
|
Selling, general and
administrative expenses
|
(95,178)
|
|
|
|
(105,977)
|
|
|
Other operating
income
|
|
|
830
|
|
|
|
22
|
|
|
Loss from
operations
|
|
|
(31,500)
|
|
|
|
(19,060)
|
|
|
Interest
income
|
|
|
287
|
|
|
|
383
|
|
|
Other income,
net
|
|
|
2,837
|
|
|
|
597
|
|
|
Loss before taxes
and loss from equity in affiliates
|
(28,376)
|
|
|
|
(18,080)
|
|
|
Income tax
benefit
|
|
|
7,117
|
|
|
|
4,539
|
|
|
Loss before loss
from equity in affiliates
|
(21,259)
|
|
|
|
(13,541)
|
|
|
Loss from equity in
affiliates
|
|
(19)
|
|
|
|
(12)
|
|
|
Net
Loss
|
|
|
|
(21,278)
|
|
|
|
(13,553)
|
|
|
Less: net loss
attributable to non-controlling interests
|
(416)
|
|
|
|
(62)
|
|
|
Loss attributable
to Leju Holdings Limited shareholders
|
(20,862)
|
|
|
|
(13,491)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
Basic/Diluted
|
|
|
(0.15)
|
|
|
|
(0.10)
|
|
|
Shares used in
computation of loss per share:
|
|
|
|
|
|
|
|
Basic/Diluted
|
|
|
135,763,962
|
|
|
|
135,763,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The conversion of
Renminbi ("RMB") amounts into reporting currency USD amounts is
based on the rate of USD1
|
= RMB6.7335 on
March 31, 2019 and USD1 = RMB6.7977 for the three months ended
March 31, 2019
|
LEJU HOLDINGS
LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
LOSS
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
(21,278)
|
|
|
|
(13,553)
|
|
Other comprehensive
income, net of tax of nil
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
2,209
|
|
|
|
3,334
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
(19,069)
|
|
|
|
(10,219)
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
loss attributable to non-controlling interest
|
(518)
|
|
|
|
(95)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to Leju Holdings Limited
|
|
|
|
(18,551)
|
|
|
|
(10,124)
|
|
shareholders
|
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,
|
|
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
|
|
(31,500)
|
|
|
|
(19,060)
|
|
Share-based
compensation expense
|
|
|
|
979
|
|
|
|
575
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
|
|
|
3,450
|
|
|
|
3,153
|
|
Non-GAAP loss from
operations
|
|
|
|
(27,071)
|
|
|
|
(15,332)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
|
|
(21,278)
|
|
|
|
(13,553)
|
|
Share-based
compensation expense
|
|
|
|
979
|
|
|
|
575
|
|
Amortization of
intangible assets resulting from
business acquisitions
|
|
|
|
3,450
|
|
|
|
3,153
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit:
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
—
|
|
|
|
—
|
|
Deferred[3]
|
|
|
|
(817)
|
|
|
|
(788)
|
|
Non-GAAP net
loss
|
|
|
|
(17,666)
|
|
|
|
(10,613)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Leju Holdings Limited shareholders
|
|
|
|
(20,862)
|
|
|
|
(13,491)
|
|
Share-based
compensation expense (net of non-controlling
interests)
|
|
|
|
971
|
|
|
|
575
|
|
Amortization of
intangible assets resulting from business
acquisitions (net of non-controlling
interests)
|
|
|
|
3,450
|
|
|
|
3,153
|
|
Income tax
benefit:
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
—
|
|
|
|
—
|
|
Deferred
|
|
|
|
(817)
|
|
|
|
(788)
|
|
Non-GAAP net loss
attributable to Leju Holdings Limited
shareholders
|
|
|
|
(17,258)
|
|
|
|
(10,551)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per ADS
— basic/diluted
|
|
|
|
(0.15)
|
|
|
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
ADS — basic/diluted
|
|
|
|
(0.13)
|
|
|
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
calculating basic/diluted GAAP/non-GAAP net
loss attributable to Leju Holdings Limited
shareholders per
ADS
|
|
|
|
135,763,962
|
|
|
|
135,763,962
|
|
________________________________
|
|
|
|
|
|
|
|
|
|
[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
|
|
|
March
31,
|
|
|
2018
|
|
2019
|
Operating data for
e-commerce services
|
|
|
|
|
|
|
|
|
Number of
discount coupons issued to prospective purchasers
(number of transactions)
|
|
|
19,678
|
|
|
|
29,549
|
|
Number of discount
coupons redeemed (number of transactions)
|
|
|
13,799
|
|
|
|
19,559
|
|
View original
content:http://www.prnewswire.com/news-releases/leju-reports-first-quarter-2019-results-300857216.html
SOURCE Leju Holdings Limited