Autohome Beats 2023 Q2 Net Revenue and Earnings Estimates
New Retail Model Empowers New Energy Development and Drives Digital Transformation in the Automotive Industry
HONG KONG, July 27, 2023 /PRNewswire/ -- Autohome Inc. (NYSE: ATHM; HKEX: 2518) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced its second quarter financial results for 2023. The Company's financial and operational results continued to recover steadily. Net revenue reached RMB1.83 billion, with a growth rate of 5.8% year-over-year that exceeded expectations, marking four consecutive quarters of positive growth. Profitability has also significantly improved. The Company delivered operating profit of RMB341.5 million, up 13.4% year-over-year. The adjusted net income attributable to Autohome was RMB569.5 million, representing a significant increase of 20.6% year-over-year which beat the market consensus. As of June 30, 2023, the Company's balance sheet remained very strong with cash, cash equivalents, and short-term investments of RMB23.34 billion, indicating sufficient cash reserves.
In terms of business segments, the Company's online marketplace and others segment emerged as the primary driver of top-line growth, delivering robust growth of 20.4% compared to the same period last year. Notably, TTP Car Inc. ("TTP") and data products both delivered double-digit year-over-year revenue growth, and revenue from new energy vehicle ("NEV") brands maintained its robust growth momentum as revenue continued to expand in scale. During the period, Autohome continued to develop its content ecosystem and business innovations to capitalize on the two major industry trends of NEVs and artificial intelligence. Further enrichment of NEV-themed content and the introduction of new business models has driven digital transformation of the automotive industry. According to QuestMobile, in June, Autohome's mobile daily active users ("DAUs") increased by 31.7% year-over-year to reach 62.71 million, demonstrating continued leadership in the automotive media vertical.
For the NEV business, revenues generated from NEV brands continued to increase and grew by 60% year-over-year in the second quarter. The successful launch of the Autohome Energy Space franchise store in May this year in Haikou, Hainan province, is a testament to the industry's acceptance of this disruptive new retail model. Energy Space has been gaining traction with a growing number of brands collaborating. With plans to expand coverage to over 20 cities across China this year, the scale of Autohome's new retail services will continue to expand. In June, Autohome hosted the "Future City NEV Technology Festival" and debuted the first exhibition truck in China featuring a large-scale holographic display, in support of the government's goals to support NEV consumption in rural areas. This initiative offers consumers in lower-tier cities the opportunity to access more comprehensive information on NEVs and enables NEV brands to expand their reach into these markets.
In terms of digitalization, Autohome's existing data products have seen a steady increase in adoption, with more than 21,000 dealers using the Company's data products in the second quarter. During the period, Autohome has leveraged the GPT model to develop two decision-making assistant products. "Car Selection Assistant" helps users find their ideal car based on their preferences, needs, and budget. Meanwhile, "Operation Butler" supports dealers by automatically integrating operational data to assist with operations and guide management decisions. Going forward, Autohome plans to continue applying two of its core capabilities, including large language models and knowledge graphs, to real-world business scenarios.
Mr. Quan Long, Chairman and Chief Executive Officer of Autohome, said: "As the economy and society fully return to normal and resume operations, the automotive industry is entering a new phase of accelerated transformation. Going forward, we can expect new technologies to rapidly penetrate and cover various parts of the industry chain, driven by ongoing technological advancements. We will continue to focus on two major trends in the industry: NEVs and artificial intelligence. We will also continue to achieve diversified business growth through innovation, long-term accumulation of cutting-edge technology, and leveraging our growing brand advantages. At Autohome, we remain committed to bringing superior products and services to users and customers, while also delivering long-term value to our shareholders. We also strive to empower the automotive industry to move towards high-quality development."
About Autohome
Autohome Inc. (NYSE: ATHM; HKEX: 2518) is the leading online destination for automobile consumers in China. According to QuestMobile, in June 2023, the mobile DAUs reached 62.71 million with an increase of 31.7% year-over-year, demonstrating the continued leadership in the automotive media vertical. Its mission is to engage, educate and inform consumers about everything auto. Autohome provides occupationally generated content, professionally generated content, user-generated content, and AI-generated content, a comprehensive automobile library, and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle. The ability to reach a large and engaged user base of automobile consumers has made Autohome a preferred platform for automakers and dealers to conduct their advertising campaigns. Further, the Company's dealer subscription and advertising services allow dealers to market their inventory and services through Autohome's platform, extending the reach of their physical showrooms to potentially millions of internet users in China and generating sales leads for them. The Company offers sales leads, data analysis, and marketing services to assist automakers and dealers with improving their efficiency and facilitating transactions. Autohome operates its "Autohome Mall," a full-service online transaction platform, to facilitate transactions for automakers and dealers. Further, through its websites and mobile applications, it also provides other value-added services, including auto financing, auto insurance, used car transactions, and aftermarket services.
For further information, please visit: https://www.autohome.com.cn/about/index.html
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SOURCE Autohome
