Autohome Inc (ATHM) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...

GuruFocus News
4 min read

In This Article:

  • Net Revenues: RMB1.77 billion for the third quarter.

  • Media Services Revenues: RMB326 million.

  • Leads Generation Services Revenue: RMB831 million.

  • Online Marketplace and Others Revenue: RMB618 million, up 3.1% year over year.

  • Cost of Revenue: RMB408 million, compared to RMB374 million in Q3 2023.

  • Gross Margin: 77%, compared to 80.4% in the same period last year.

  • Sales and Marketing Expenses: RMB877 million, compared to RMB975 million in Q3 2023.

  • Product and Development Expenses: RMB339 million, compared to RMB355 million in Q3 2023.

  • General and Administrative Expenses: RMB137 million, compared to RMB141 million in Q3 2023.

  • Operating Profit: RMB83 million, compared to RMB166 million in Q3 2023.

  • Adjusted Net Income: RMB497 million, compared to RMB604 million in Q3 2023.

  • Non-GAAP Basic and Diluted EPS: RMB1.02, compared to RMB1.23 in Q3 2023.

  • Non-GAAP Basic and Diluted Earnings per ADS: RMB4.09 and RMB4.08, respectively, compared to RMB4.93 and RMB4.92 in Q3 2023.

  • Cash, Cash Equivalents, and Short-term Investments: RMB23.06 billion as of September 30, 2024.

  • Net Operating Cash Flow: RMB209 million in the third quarter of 2024.

  • Share Repurchase Program: Authorized up to USD200 million; repurchased approximately 244,000 ADS for USD6.7 million as of November 1, 2024.

  • Cash Dividend: USD1.15 per ADS or USD0.2875 per ordinary share, totaling approximately RMB1 billion.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Autohome Inc (NYSE:ATHM) reported a 5.6% year-over-year increase in average mobile daily active users, reaching over 70 million.

  • The company successfully organized over 500 offline auto shows in low-tier markets, enhancing consumer engagement.

  • Revenues from the online marketplace and other segments increased by 3.1% year over year.

  • Autohome Inc (NYSE:ATHM) expanded its new retail business into lower-tier cities, establishing a network of over 50 stores.

  • The company strengthened its cooperation with Ping An Group, introducing innovative products and services across various sectors.

Negative Points

  • Autohome Inc (NYSE:ATHM) experienced a decline in gross margin to 77% from 80.4% in the same period last year.

  • Operating profit decreased to RMB83 million compared to RMB166 million in the third quarter of 2023.

  • Adjusted net income attributable to Autohome was RMB497 million, down from RMB604 million in the corresponding period last year.

  • The ongoing price war in the auto industry has negatively impacted the profitability of car companies and dealers.

  • The used car market remains sluggish, with a significant decline in trading volume and profitability.

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