Leju Holdings reports its Q1 2019 results

Leju Holdings Limited, 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.

"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 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.

SOURCE Leju Holdings Limited

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