SouFun Announces First Quarter 2014 Results

Editor

May 7, 2014

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Soufun-Logo145BEIJING, May 7, 2014 /PRNewswire/ — SouFun Holdings Limited SFUN -0.10% (” SouFun “), the leading real estate Internet portal in China, announced its unaudited financial results for the first quarter ended March 31, 2014.

“We are delighted to report our 14th consecutive above guidance quarter since SouFun was publicly listed, even under China’s volatile real estate market condition.” said Vincent Mo, Executive Chairman of SouFun. “Our solid fundamentals with strong brand, effective website platform, and fast growing mobile platform, supported our continued growth. We will continue to explore new lines of businesses by investing in technologies and product development and working with strategic partners for SouFun’s long term growth story.”

Revenues

Revenue from marketing services was $47.0 million in the first quarter of 2014, an increase of 31.2% from $35.8 million in the corresponding period in 2013, primarily due to more overall advertising spending by developers during the quarter.

Revenue from listing services was $42.1 million in the first quarter of 2014, an increase of 57.1% from $26.8 million for the corresponding period in 2013, primarily due to increased paying agent subscribers.

Cost of Revenue

Gross margin was 79.5% in the first quarter of 2014, compared to 78.0% in the corresponding period in 2013.

Operating expenses were $46.9 million in the first quarter of 2014, an increase of 38.6% from $33.8 million for the corresponding period in 2013.

General and administrative expenses were $19.3 million in the first quarter of 2014, an increase of 28.3% from $15.1 million in the corresponding period in 2013, primarily due to increased staff cost.

Operating income was $49.5 million in the first quarter of 2014, an increase of 33.1% from $37.2 million in the corresponding period in 2013.

Income tax expense was $15.2 million in the first quarter of 2014, a 30.7% increase compared to $11.6 million for the corresponding period in 2013 was due to increase in income before taxes partially offset by certain subsidiaries being subject to a lower dividend-related withholding tax rate compared to the corresponding period in 2013.

Net income attributable to SouFun’s shareholders was $41.5 million in the first quarter of 2014, a 46.2% increase from $28.4 million in the corresponding period in 2013. Fully diluted earnings per ADS were $0.10 in the first quarter of 2014, an increase of 42.9% from $0.07 in the corresponding period in 2013.

Adjusted EBITDA, defined as non-GAAP net income before income taxes, interest expenses, interest income, depreciation and amortization, was $54.8 million in the first quarter of 2014, an increase of 34.0% as compared to $40.9 million in the corresponding period in 2013.

As of March 31, 2014, SouFun had cash, cash equivalents, and short-term investments of $943.7 million, compared to $591.1 million as of December 31, 2013. Cash flow from operating activities was $118.2 million in the first quarter of 2014, a 97.7% increase from $59.8 million in the same period in 2013.

SouFun estimates its total revenue for 2014 will be between $780.0 million and $796.0 million, representing a year-on-year increase of 22.5% to 25%. This forecast reflects SouFun’s current and preliminary view, which is subject to change.

SouFun’s management team will host a conference call on the same day at 8:00 AM U.S. EDT (8:00 PM Beijing / Hong Kong time). The dial-in details for the live conference call are:

International Toll:

+65 6723-9381

Local Toll:

United States

+1 866-519-4004/+1 845-675-0437

Hong Kong

+852 800-930-346/+852 2475-0994

Mainland China

+86 400-620-8038 / +86 800-819-0121

Conference ID number:

3248 5154

International Toll:

+61 2-8199-0299

Toll-Free:

United States

+1 855-452-5696 / +1 646-254-3697

Hong Kong

+852 800-963-117 / +852 3051-2780

Mainland China

+86 400-602-2065 / +86 800-870-0206

Conference ID number:

3248 5154

http://ir.soufun.com .

SouFun operates the leading real estate Internet portal in China in terms of the number of page views and visitors to its websites in 2013, according to DCCI, an independent market research institution commissioned by us. Through our websites, we provide marketing, e-commerce, listing and other value-added services for China’s fast-growing real estate and home furnishing and improvement sectors. Our user-friendly websites support active online communities and networks of users seeking information on, and other value-added services for, the real estate and home-related sectors in China. SouFun currently maintains about 100 offices to focus on local market needs and its website and database contains real estate related content covering more than 330 cities in China. For more information about SouFun, please visit http://ir.soufun.com .

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Further information regarding these and other risks and uncertainties is included in SouFun’s annual report on form 20-F and other documents filed with the U.S. Securities and Exchange Commission. SouFun does not assume any obligation to update any forward-looking statements in this release and elsewhere, which apply only as of the date of this press release.

To supplement SouFun’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), SouFun uses in this press release the following measures defined as non-GAAP financial measures by the United States Securities and Exchange Commission: (1) operating income, (2) net income, (3) basic and diluted earnings per ordinary share and ADS and (4) adjusted EBITDA. The presentation of the non-GAAP financial information 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 “Reconciliation of GAAP and non-GAAP Results” set forth at the end of this press release.

[email protected]

Ms. Yiwen Zhang Investor Relations Manager SouFun Holdings Limited Phone:  +86-10-5631 8659 E-mail:  [email protected]

SouFun Holdings Limited
Condensed Consolidated Balance Sheet
 (in U.S. dollars in thousands)
ASSETS March 31, December 31,
2014 2013
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents 287,613 581,010
Restricted cash, current 255,917
Short-term investments 656,069 10,138
Accounts receivable, net 46,098 44,541
Funds receivable 12,600 37,124
Prepayment and other current assets 21,054 31,758
Deferred tax assets, current 3,220 3,165
Total current assets 1,026,654 963,653
Non-current assets:
Property and equipment, net 218,466 221,442
Restricted cash, non-current 206,367 257,499
Deferred tax assets, non current 1,641 1,728
Deposit for non-current assets 37,797 38,140
Long-term investments 33,159
Other non-current assets 23,894 22,627
Total non-current assets 521,324 541,436
Total assets 1,547,978 1,505,089
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term loans 90,000
Deferred revenue 138,631 115,043
Accrued expenses and other liabilities 141,012 143,292
Income tax payable 52,815 43,688
Customers’ refundable fees 64,545 53,066
Amounts due to a related party 687 537
Total current liabilities 397,690 445,626
Non-current liabilities:
Long-term loans 180,750 180,750
Convertible senior notes 400,000 350,000
Deferred tax liabilities, non-current 89,035 84,767
Other non-current liabilities 475 479
Total non-current liabilities 670,260 615,996
Total Liabilities 1,067,950 1,061,622
Shareholders’ equity:
Class A ordinary shares, par value Hong Kong Dollar(“HK$”) 1 per share, 600,000,000 shares authorized for Class A and Class B in aggregate, and 57,568,424 shares and 57,440,895 shares issued and outstanding as at March 31, 2014 and December 31, 2013, respectively
Class B ordinary shares, par value HK$1 per share, 600,000,000 shares authorized for Class A and Class Bin aggregate, and 24,336,650 shares and 24,336,650shares issued and outstanding as at March 31, 2014 and December 31, 2013 , respectively
Additional paid-in capital 91,928 89,071
Accumulated other comprehensive income 35,547 43,381
Retained earnings 342,037 300,515
Total SouFun Holdings Limited shareholders’ equity 480,028 443,467
Noncontrolling interests
Total shareholders’ equity 480,028 443,467
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,547,978 1,505,089

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SouFun Holdings Limited
Condensed Consolidated Statements of Comprehensive Income
(in thousands of U.S. dollars, except share data and per share data)
Three months ended
March 31, March 31,
2014 2013
(Unaudited) (Unaudited)
Revenues:
  Marketing services 46,983 35,813
  E-commerce services 29,415 26,363
  Listing services 42,145 26 834
  Other value-added 2 678 2 024
Total revenues 121 221 91 034
Cost of Revenues:
  Cost of services (24 905) (20 030)
Total Cost of Revenues (24 905) (20 030)
Gross Profit 96 316 71 004
Operating expenses and income:
  Selling expenses (27 534) (18 732)
  General and administrative expenses (19 316) (15 060)
  Other income 53
Operating Income 49 519 37 212
  Foreign exchange loss (12)
  Interest income 11 344 5 678
  Interest expense (5 094) (3 337)
  Government grants 966 422
  Gain on bargain purchase 102
Income before income taxes and noncontrolling interests 56 723 40 077
Income tax expenses
  Income tax expense (15 201) (11 633)
Net income 41 522 28 444
  Net income attributable to noncontrolling interests 35
Net income attributable to SouFun Holdings Limited shareholders 41 522 28 409
Foreign currency translation adjustments (7 834) 1 368
  Unrealized gain on available-for-sale security 78
Total other comprehensive income net of tax (7 834) 1 446
Comprehensive income 33 688 29 890
Basic 0.51 0.36
Diluted 0.48 0.34
Earnings per ADS
Basic 0.10 0.07
Diluted 0.10 0.07
Weighted average number of Class A and Class B ordinary shares outstanding:
Basic 81 852 230 77 898 531
Diluted 92 606 216 83 308 983
Weighted average number of ADSs outstanding:
Basic 409 261 150 389 492 655
Diluted 463 31 080 416 544 915













































SouFun Holdings Limited
Reconciliation of GAAP and Non-GAAP Results
(in thousands of U.S. dollars except share data and per share data)
Three months ended
March 31 March 31
2014 2013
GAAP income from operations 49 519 37 212
Share-based compensation expense 1 524 1 763
Non-GAAP income from operations 51 043 38 975
GAAP net income 41 522 28 444
Withholding tax related to dividends 4 792 3 149
Share-based compensation expense 1 524 1 763
Gain on bargain purchase (102)
Non-GAAP net income 47 838 33 254
Net Income attributable to SouFun Holdings Limited shareholders 41 522 28 409
Withholding tax related to dividends 4 792 3 149
Share-based compensation expense 1 524 1 763
Gain on bargain purchase (102)
Non-GAAP net Income attributable to SouFun Holdings Limited shareholders 47 838 33 219
GAAP earnings per share for Class A and Class B ordinary shares:
Basic 0.51 0.36
Diluted 0.48 0.34
GAAP earnings per share ADS:
Basic 0.10 0.07
Diluted 0.10 0.07
Non-GAAP earnings per share for Class A and Class B ordinary shares:
Basic 0.58 0.43
Diluted 0.55 0.40
Non-GAAP earnings per ADS shares:
Basic 0.12 0.09
Diluted 0.11 0.08
Weighted average number of Class A and Class B ordinary shares outstanding:
Basic 81 852 230 77 898 531
Diluted 92 606 216 83 308 983
Weighted average number of ADSs outstanding:
Basic 409 261 150 389 492 655
Diluted 463 31 080 416 544 915

















SouFun Holdings Limited
Reconciliation of Non-GAAP EBITDA
(in thousands of U.S. dollars)
Three months ended
March 31 2014 March 31 2013
Non-GAAP 47 838 33 254
Add back:
Interest expense 5 094 3 337
Income tax expenses 10 409 8 484
Depreciation expenses 2 819 1 499
Subtract:
Interest income (11 344) (5 678)
Adjusted EBITDA 54 816 40 896

SOURCE SouFun Holdings Limited

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Editor

May 7, 2014

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Acerca de Lucas Vargas:

  • Empezó en Grupo ZAP como el VP de Sales y en 2016 cuando la empresa tenía 60 empleados. Fue nombrado COO de VivaReal tomando el mando de Brian Requarth el Co-Fundador. VivaReal lanzó en Colombia y se trasladó a Brasil. En 2017 se hizo CEO del Grupo ZAP.
  • Ha trabajado en Mexico en PWC y en el Banco Santander
  • Tiene un Master de Business Administration de Harvard
  • En noviembre este año después de la fusión de OLX Brasil y Grupo ZAP fue nombrado el CEO del OLX Business Unit. Lidera la empresa junto con Andries Oudshoorn y Marcos Leite
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Simon Baker is the Founder and Executive Chairman of Online Marketplaces and Property Portal Watch. Involved with property portals for 15 years, he’s a well-recognized expert and industry consultant.
As former CEO/MD of the REA Group for 8 years, Simon led the group to its current market-leading position. When he joined REA Group in 2001, it had $4m in revenues, $6m in losses and an $8m market cap.
By 2008, the company presided over $155m in revenues, $35m in EBITDA and enjoyed a peak market cap of $1b. Simon is currently Chairman of the Mitula Group and Real Estate Investar and a serial portal founder and, investor.