Leju Reports Third Quarter 2020 Results and Issues Notice of Annual General Meeting

BEIJING, Nov. 23, 2020 /PRNewswire/ -- Leju Holdings Limited ("Leju" or the "Company") (NYSE: LEJU), a leading e-commerce and online media platform for real estate and home furnishing industries in China, today announced its unaudited financial results for the fiscal quarter and nine months ended September 30, 2020.

Third Quarter 2020 Financial Highlights

  • Total revenues increased by 13% year-on-year to $209.4 million.
     
      - Revenues from e-commerce services increased by 12% year-on-year to $172.4 million.
      - Revenues from online advertising services increased by 17% year-on-year to $36.7 million.
     
  • Net income attributable to Leju Holdings Limited shareholders was $11.7 million, or $0.08 per diluted American depositary share ("ADS"), an increase of 5% from $11.2 million, or $0.08 per diluted ADS, for the same quarter of 2019.
  • Non-GAAP[1] net income attributable to Leju Holdings Limited shareholders was $14.7 million, or $0.11 per diluted ADS, an increase of 4% from $14.1 million, or $0.10 per diluted ADS, for the same quarter of 2019.

First Nine Months 2020 Financial Highlights

  • Total revenues increased by 5% year-on-year to $489.1 million.
     
      - Revenues from e-commerce services increased by 4% year-on-year to $377.8 million.
      - Revenues from online advertising services increased by 9% year-on-year to $110.7 million.
      
  • Income from operations was $14.0 million, an increase of 61% from $8.7 million for the same period of 2019.
  • Non-GAAP income from operations was $24.8 million, an increase of 25% from $19.9 million for the same period of 2019.
  • Net income attributable to Leju Holdings Limited shareholders was $13.2 million, or $0.10 per diluted ADS, an increase of 88% from $7.0 million, or $0.05 per diluted ADS for the same period of 2019.
  • Non-GAAP net income attributable to Leju Holdings Limited shareholders was $21.9 million, or $0.16 per diluted ADS, an increase of 38% from $15.9 million, or $0.12 per diluted ADS for the same period of 2019.

[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, 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 maintained strong momentum for our business development in the third quarter as we realized healthy growth in our advertising and e-commerce business," said Mr. Geoffrey He, Leju's chief executive officer. "During the third quarter we successfully held our 'Suning & Leju 818 Summer Storm' sale. In September, our affiliate company E-House and Alibaba jointly launched the Tmall Housing platform and the real estate transaction cooperation mechanism or ETC. As part of this, Leju, together with Tmall Housing, Suning e-buy and E-House, jointly launched the 'Double 11 - Tmall Housing 10 Billion Subsidy' promotion during the Double 11 period. These activities have received strong industry recognition, especially the "Double 11" promotion, which involved 302 brands and over 2,000 real estate projects. The success of these activities further highlights Leju's multi-channel digital marketing capabilities, takes the development of our advertising and e-commerce business to the next level and further solidifies Leju's position in the real-estate marketing industry as the leader in providing comprehensive solutions throughout the value chain."

"In the fourth quarter, Leju will hold a series of influential annual events marking Double 12. We look forward to building on the momentum of Double 11, further enhancing our influence in the industry, increasing product innovation, and significantly improving the client coverage and service level as we end the year on a strong note and begin to prepare for 2021."

Third Quarter 2020 Results

Total revenues were $209.4 million, an increase of 13% from $185.4 million for the same quarter of 2019, mainly due to an increase in revenues from e-commerce services and online advertising services.

Revenues from e-commerce services were $172.4 million, an increase of 12% from $153.4 million for the same quarter of 2019, primarily due to an increase in the number of discount coupons redeemed.

Revenues from online advertising services were $36.7 million, an increase of 17% from $31.5 million for the same quarter of 2019, primarily due to an increase in property developers' demand for online advertising.

Revenues from listing services were $0.3 million, a decrease of 45% from $0.5 million for the same quarter of 2019, primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenues was $14.8 million, an increase of 12% from $13.2 million for the same quarter of 2019, primarily due to increased cost of advertising resources purchased from media platforms related to the Company's online advertising business.

Selling, general and administrative expenses were $181.8 million, an increase of 16% from $157.0 million for the same quarter of 2019, primarily due to increased marketing expenses related to the Company's e-commerce business.

Income from operations was $12.9 million, a decrease of 18% from $15.8 million for the same quarter of 2019. Non-GAAP income from operations was $16.6 million, a decrease of 15% from $19.5 million for the same quarter of 2019.

Net income was $11.9 million, an increase of 5% from $11.3 million for the same quarter of 2019. Non-GAAP net income was $14.9 million, an increase of 4% from $14.2 million for the same quarter of 2019.

Net income attributable to Leju Holdings Limited shareholders was $11.7 million, or $0.08 per diluted ADS, an increase of 5% from $11.2 million, or $0.08 per diluted ADS, for the same quarter of 2019. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $14.7 million, or $0.11 per diluted ADS, an increase of 4% from $14.1 million, or $0.10 per diluted ADS, for the same quarter of 2019.

First Nine Months 2020 Results

Total revenues were $489.1 million, an increase of 5% from $465.8 million for the same period of 2019, mainly due to an increase in revenues from e-commerce services and online advertising services.

Revenues from e-commerce services were $377.8 million, an increase of 4% from $362.6 million for the same period of 2019, primarily due to an increase in the number of discount coupons redeemed, partially offset by a decrease in the average price per discount coupon redeemed.

Revenues from online advertising services were $110.7 million, an increase of 9% from $101.8 million for the same period of 2019, primarily due to an increase in property developers' demand for online advertising.

Revenues from listing services were $0.6 million, a decrease of 54% from $1.4 million for the same period of 2019, primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenues was $56.0 million, an increase of 2% from $55.1 million for the same period of 2019, primarily due to increased cost of advertising resources purchased from media platforms related to the Company's online advertising business.

Selling, general and administrative expenses were $419.5 million, an increase of 4% from $403.0 million for the same period of 2019, primarily due to increased marketing expenses related to the Company's e-commerce business.

Income from operations was $14.0 million, an increase of 61% from $8.7 million for the same period of 2019. Non-GAAP income from operations was $24.8 million, an increase of 25% from $19.9 million for the same period of 2019.

Net income was $13.8 million, an increase of 87% from $7.4 million for the same period of 2019. Non-GAAP net income was $22.5 million, an increase of 38% from $16.2 million for the same period of 2019.

Net income attributable to Leju Holdings Limited shareholders was $13.2 million, or $0.10 per diluted ADS, an increase of 88% from $7.0 million, or $0.05 per diluted ADS for the same period of 2019. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $21.9 million, or $0.16 per diluted ADS, an increase of 38% from $15.9 million, or $0.12 per diluted ADS for the same period of 2019.

Cash Flow

As of September 30, 2020, the Company's cash and cash equivalents and restricted cash were $273.8 million.

Third quarter 2020 net cash used in operating activities was $4.4 million, primarily comprised of a decrease in amounts due to related parties of $30.7 million, an increase in amounts due from related parties of $16.3 million and an increase in accounts receivable of $15.3 million, partially offset by non-GAAP net income of $14.9 million, an increase in other current liabilities and accrued expenses of $23.1 million, an increase in income tax payable and other tax payable of $7.7 million, and a decrease in customer deposits of $12.0 million.

Business Outlook

The Company estimates that its total revenues for the fourth quarter of 2020 will be approximately $230 million to $250 million, which would represent an increase of approximately 1% to 10% from $226.8 million in the same quarter in 2019. This forecast reflects the Company's current and preliminary view, which is subject to change.

Leju to Hold Annual General Meeting on December 21, 2020

Leju announced that it will hold its annual general meeting of shareholders (the "AGM") at Room 1120, 11/F, Yinli Building, No. 383 Guangyan Road, Shanghai, the People's Republic of China on December 21, 2020 at 10:00AM (local time). No proposal will be submitted to shareholders for approval at the AGM. Instead, the AGM will serve as an open forum for shareholders and holders of the Company's ADSs to discuss Company affairs with management.

Holders of record of the Company's ordinary shares at the close of business on November 30, 2020 (Eastern Daylight Time) are entitled to receive notice of and attend the annual general meeting or any adjournment or postponement thereof. Holders of the Company's ADSs are welcome to attend the AGM in person.

The notice of the annual general meeting is available on the Company's website at http://ir.leju.com.

Conference Call Information

Leju's management will host an earnings conference call on November 23, 2020 at 6 a.m. U.S. Eastern Time (7 p.m. Beijing/Hong Kong time).

Please register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.

PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/4452418 

CONFERENCE ID: 4452418

A replay of the conference call may be accessed by phone at the following number until December 1, 2020:

U.S./International:

+1-855-452-5696

Hong Kong:

+800-963-117

Mainland China:  

400-632-2162

Passcode:

4452418

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 e-commerce and online media platform for real estate and home furnishing industries 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 380 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 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; 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,


September 30,


2019


2020

ASSETS








Current assets








Cash and cash equivalents


159,012




270,840


Restricted cash





2,993


Accounts receivable, net


147,638




202,824


Contract assets


830




604


Marketable securities


3,438




4,406


Prepaid expenses and other current assets


5,436




6,285


Customer deposits


57,174




11,107


Amounts due from related parties


9,673




17,653


Total current assets


383,201




516,712


Property and equipment, net


18,108




16,813


Intangible assets, net


45,581




36,926


Right-of-use assets


26,776




25,651


Investment in affiliates


53




22


Deferred tax assets


49,311




50,513


Other non-current assets


1,450




1,339


Total assets


524,480




647,976










LIABILITIES AND EQUITY








Current liabilities








Accounts payable


1,523




4,141


Accrued payroll and welfare expenses


32,787




29,766


Income tax payable


56,691




62,473


Other tax payable


20,056




23,068


Amounts due to related parties


4,407




23,401


Advance from customers


34,246




104,512


Lease liabilities, current


5,189




5,390


Accrued marketing and advertising expenses


49,830




61,486


Other current liabilities


32,784




25,778


Total current liabilities


237,513




340,015


Lease liabilities, non-current


22,866




21,659


Deferred tax liabilities


11,742




12,028


Total liabilities


272,121




373,702


Shareholders' Equity








Ordinary shares ($0.001 par value): 1,000,000,000 shares
  authorized, 135,812,719 and 136,290,356 shares issued and
  outstanding, as of December 31, 2019 and September 30,
  2020, respectively


136




136


Additional paid-in capital


796,192




798,791


Accumulated deficit


(517,303)




(504,119)


Subscription receivables





(19)


Accumulated other comprehensive loss


(23,624)




(18,276)


Total Leju Holdings Limited shareholders' equity


255,401




276,513


Non-controlling interests


(3,042)




(2,239)


Total equity


252,359




274,274


TOTAL LIABILITIES AND EQUITY


524,480




647,976


 

 

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


Nine months ended


September 30,


September 30,


2019


2020


2019


2020

















Revenues
















E-commerce


153,428




172,385




362,642




377,833


Online advertising


31,466




36,729




101,798




110,658


Listing


505




279




1,357




618


Total net revenues


185,399




209,393




465,797




489,109


Cost of revenues


(13,237)




(14,832)




(55,068)




(55,970)


Selling, general and administrative expenses


(156,977)




(181,781)




(402,994)




(419,451)


Other operating income, net


590




87




958




332


Income from operations


15,775




12,867




8,693




14,020


















Interest income (expenses), net


(543)




1,851




42




2,550


Other income (loss), net


(191)




907




1,102




1,620


Income before taxes and income (loss) from
   equity in affiliates


15,041




15,625




9,837




18,190


Income tax expenses


(3,776)




(3,763)




(2,469)




(4,381)


Income before income (loss) from equity in
affiliates


11,265




11,862




7,368




13,809


Income (loss) from equity in affiliates, net of tax
of nil


15




(9)




(11)




(31)


Net income


11,280




11,853




7,357




13,778


Less: net income attributable to non-controlling
   interests


121




161




337




594


Net income attributable to Leju Holdings
   Limited shareholders


11,159




11,692




7,020




13,184


















Earnings per share:
















Basic


0.08




0.09




0.05




0.10


Diluted


0.08




0.08




0.05




0.10


Shares used in computation of earnings per ADS:
















Basic


135,765,158




136,191,411




135,764,361




135,991,548


Diluted


135,769,998




138,366,523




135,767,912




136,815,220


















          The conversion of functional currency Renminbi ("RMB") amounts into reporting currency USD amounts 
          is based on the rate of USD1 = RMB6.8101 on September 30, 2020 and USD1 = RMB7.0177 for the nine
          months ended September 30, 2020.

 

 

LEJU HOLDINGS LIMITED 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

 (In thousands of U.S. dollars)



Three months ended



Nine months ended


September 30,



September 30,


2019


2020


2019


2020

















Net income


11,280




11,853




7,357




13,778


Other comprehensive income (loss), net of tax of nil
















Foreign currency translation adjustments


(5,310)




8,601




(5,781)




5,322


















Comprehensive income


5,970




20,454




1,576




19,100


















Less: Comprehensive income attributable to
      non-controlling interests


161




104




377




568


















Comprehensive income attributable to Leju

Holdings Limited shareholders


5,809




20,350




1,199




18,532


















 

 

 

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


Nine months ended


September 30,


September 30,


2019


2020


2019


2020













GAAP income from operations


15,775



12,867



8,693



14,020


Share-based compensation expense


599



1,046



1,770



2,282


Amortization of intangible assets resulting from business
   acquisitions


3,153



2,640



9,459



8,541


Non-GAAP income from operations


19,527



16,553



19,922



24,843















GAAP net income


11,280



11,853



7,357



13,778


Share-based compensation expense


599



1,046



1,770



2,282


Amortization of intangible assets resulting from
  
business acquisitions


3,153



2,640



9,459



8,541


Income tax benefits:













   Current









   Deferred[2]


(788)



(660)



(2,364)



(2,136)


Non-GAAP net income


14,244



14,879



16,222



22,465















Net income attributable to Leju Holdings Limited
   shareholder


11,159



11,692



7,020



13,184


Share-based compensation expense
  
(net of non-controlling interests)


599



1,046



1,770



2,282


Amortization of intangible assets resulting from business
   acquisitions (net of non-controlling interests)


3,153



2,640



9,459



8,541


Income tax benefits:













   Current









   Deferred


(788)



(660)



(2,364)



(2,136)


Non-GAAP net income attributable to Leju Holdings
   Limited shareholders


14,123



14,718



15,885



21,871















GAAP net income per ADS — basic


0.08



0.09



0.05



0.10















GAAP net income per ADS — diluted


0.08



0.08



0.05



0.10















Non-GAAP net income per ADS — basic


0.10



0.11



0.12



0.16















Non-GAAP net income per ADS — diluted


0.10



0.11



0.12



0.16















Shares used in calculating basic GAAP / non-GAAP net
   income attributable to shareholders per ADS


135,765,158



136,191,411



135,764,361



135,991,548















Shares used in calculating diluted GAAP / non-GAAP net
   income attributable to shareholders per ADS


135,769,998



138,366,523



135,767,912



136,815,220




























[2]  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


Nine months ended



September 30,


September 30,



2019


2020


2019


2020


















Operating data for e-commerce services

















Number of discount coupons issued to
   prospective purchasers (number of
   transactions)



73,259




66,415




167,628




160,630


Number of discount coupons redeemed (number
   of transactions)



51,400




57,934




107,194




125,202



















 


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SOURCE Leju Holdings Limited

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