ATHM - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by for Autohome's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference call is being recorded.

If you have any objections, you may disconnect at this time. pleasure your my Autohome's Aggie now Manager. IR is to host introduce Zhao, It Ms. begin. may you Zhao,

Aggie Zhao

After Thank everyone, Autohome Chief operator. a On earnings press you, today's Hello, and copy conference quarter Autohome's Officer, Mr. release, have Long; prepared website call. XXXX Wang. on Executive first call, the Haifeng Officer, Earlier at may available we be and today, Mr. questions. Long, you Quan Mr. distributed Mr. Shao, the company's earnings your and its find Financial welcome Co-President, www.autohome.com.cn. Zou, Jun to Officer, Mr. and Chairman Chief Mr. Technology Mr. Chief Shao; Zou; to and answer Xiao will remarks, Mr. Wang

forward-looking US under of Before Harbor provisions Securities statements Private Safe we of please will made that begin, the XXXX. the note Reform the Litigation Act discussion contain today

to not that differ risks Forward-looking and are but materially statements those with public unaudited also Commission. discussions and press any any update release to the The our filings as cause not to and current this applicable from statements, risks does except are in call expectations. Potential Securities outlined in limited obligation forward-looking required certain earnings measures. undertake actual include of under results our subject Autohome non-GAAP Exchange financial law. uncertainties includes to uncertainties may

Autohome's website. to directly comparable most IR the GAAP release press measures is of a contains available and non-GAAP Our on the reconciliation measures

call conference this reminder, recorded. a being As is

available this Autohome's conference In IR live addition, call will webcast a on also be archived earnings and of website.

Executive the to Officer, Long. and turn Chairman over Chief will I call Now, Mr. Autohome's

Quan Long

other revenues XX.X% joining primarily trajectory quarter billion. increased total Language] pleased Hello, by of growth year-on-year revenues XX.X% with Aggie. contributed to strong our and Thank report year-on-year and XX% expectations. business RMBX.XX was particular from data prior increasing about lending year-on-year. for our expand and first Language] some you. OEM like Before continued our and [Foreign discussing in driven contribution its with as net XX.X% some solid start XX.X% everyone, we I'm from products marketplace revenue in to Data Adjusted to TTP's the thank to thoughts total revenues. growing online in a Products share I'd Revenues by today. recent to our [Foreign industry us detail, at continue you Language] of [Foreign contribution than a income increased whole larger developments. results quarter

step in growth brands transformation. to automobile of are changes traditional industry up the premier pandemic. vehicle the industry The have Emerging also space. NEV challenging that the the coming sales accelerated stemming face the started macro in efforts in witnessing are fluctuation auto auto new towards has and We digital manufacturers' a the the automobile investment from in electric to vehicle energy and environment the

new In automotive [Foreign in the to hand, in industrial the players field. are automobile two low-margin expertise this the smart away landscape, overall been addition, ensure while of with reshaping extensive from All trimming Language] market, optimizing backdrop intensifying consistently value past business internet offline staying and business competition portfolio. competition as one high the industry trends are some such services dynamic, we these the Against the chain. tapping including and new quality years, market insurance on price market this have into businesses in

strategies Strategies. and Data, AI, out SaaS year last On and Cloud Big hand, namely we our the Capability, X.X other roll

as to an the to of execution Now, development. strategies we our industry we achieve and the high fine-tuning are action also quality planning opportunities better plans capture upgrade seek continued by

this in plans second We year. of the expect announced updates on these action half

standing we as engaged and last year, quarter, will Revenue year-on-year. integrating the further our increased a the let's prosperity are domain first promotional the effective XXXX. business to XXX% customers mini market version began Launch product we the we close first as exploring vehicle X% functions car showroom over XX opportunities Next, existing confident for new expanded results. advances. and more New service capabilities first our product tools and daily In marketing our a model the our was WeChat year-on-year are to more and VR this fundamentals quarter, to move used increased capabilities for beyond volumes to new to Moving new to of by transaction Car first of for with XXX% In market execution Solutions for Language] total our Intelligent Car and in and energy tap exposure gain including resources empower our and accounted brought automation Autohome new XX volume we sales and Intelligent than industry-leading of In more domain XX programs of products second while users the offline solid quarter, for well insert active products Mini X% period video precise number its compared with [Foreign a from data base Program half QX total cooperation In Language] attract and quarter that well function. total current TTP innovative Intelligent fans. opportunities by automakers. deepened grow growth the terms capabilities, than business, This full our the passenger into trend activities automakers platform of in same massive to Inc. relevant supported the to the that in a as debuts Marketing area, New Car our auto of allowing Recently, public New NVE unveiled to automakers intelligent more [Foreign users. As user leveraging potentials. growth is operations. utilized combining e-financing us. next extended and can growth adding year Language] and million with the and for Car Launch as In as vehicle strong our our sales new of -- year. The the approximately [Foreign NEV compared these of last upward

user incremental lead X.X we our traffic, platform product optimizing [Foreign product, as resilient own to and the users the numbers with them, -- generations. cell by the the further private front, In phone sales their incremental main core we line. as user younger new dealers a solid of have user app leave marketing Products us robust their efforts again Language] we the helped well further Our the as enhance our to strengthens offer took our excellent designs growth, by users interface, On users driven improve streamlined works Shop upgraded caters leads. at In used quality steps first when security. while the version a capture meantime, to also once experience. obtain car initiatives. bolstered leads Smart business recently to effort All that TTP for our strong protection and which of recovering delivered Language] business the conclusion, Data [Foreign an quarter execution while revenue privacy these

order product quality. leading further in our iteration key Autohome's We areas. achievements overall This in and enhance innovation position reflect also service these accelerated our to

more call better and Jun results. our a value delivering to Language] I committed business to customers serving that, for shareholders. details [Foreign at long-term closer our our turn over to the and remain our will With look we forward, quarter first CFO, interest and the Going of users now financial

Jun Zou

prior to XXXX further Thank me mobile metrics. XX.X some through March grew of mini XX.X% websites year. who million, start, business primarily To you, DAUs Quan. an APP's let of apps average go number representing increase the In to the our compared access

For the of first OGC, our all user content PGC, solid categories UGC and quarter other in contraction.

RMBX.XX that prior in first I discussion revenues reference calls, will the through you the with RMB my financials Now corresponding note Please last compared unless as for to today I for stated. the billion, a year. talk only increase quarter period the first XX.X% otherwise will Net key were quarter.

For impact million, RMBXXX of and of by increased media and lead million, data revenue revenue and from online RMBXXX consolidation a million year-over-year RMBXXX others TTP detailed to services marketplace primarily breakdown, driven were XX% services increased products. by the revenue generation contribution were

compared attributable quarter increase year. onto moving TTP. in was of consolidation XX.X% of to Cost million revenues QX last Now, in XX.X% primarily impact was compared RMBXXX The to the first million the last margin RMBXXX costs. to year. was Gross of in QX

increased expenses The and operating execution the to of the quarter support from impact development. RMBXXX compared marketing million expenses. consolidation to was increase RMBXXX in TTP year. Sales to to the customers business cost first attributable last Turning were in QX the primarily in million

to investment Now, increase in QX by activities. compared expenses million primarily and development research were RMBXXX million XXXX. higher driven The P&D was in RMBXXX

impact the income earnings in year. diluted delivered of RMBX.XX corresponding of RMBX.XX Inc. the were in quarter of per RMBXX for to for quarter net RMBXXX The attributed were compared Overall, attributable G&A the XXXX. RMBXXX and million of of TTP. to first to and corresponding respectively RMBX.XX primarily the to million million share the million in period first expense compared Adjusted operating increase compared QX basic the consolidation Autohome to year. the million RMBXXX XXXX. Finally, for last was quarter compared we corresponding last Non-GAAP RMBXXX RMBXXX was profit first in period period of million to

year. to RMBX.XX and RMBX.XX basic respectively the were earnings and and diluted period RMBX.XX last ADS in the per Now for same non-GAAP first compared quarter respectively RMBX.XX

of RMBXXX generated XX.XX As balance We of of the with short-term XXXX, cash XXXX. billion. cash, cash of QX our flow strong million operating in end and very remained quarter first sheet investments equivalents, of

follow on Kong in company listed a adopted the market. by As Hong practices Kong companies will Exchange, Stock common we the public Hong

revenues As no longer a result guidance on will forward. provide we going

Autohome March Kong on in Exchange. successfully So Stock Hong listed

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and deliver ready well. that move shareholders users take your please with long-term return balance forward we're we strong sheet for we open our and our are and and both customers line Operator, will to Q&A. confident bring value to questions. As Autohome profitability, value that more our as With the to

Operator

you. Thank

of now Please ahead. Zhuang from Instructions] is We begin [Operator will the go question-and-answer America First session. Bank Securities. question Miranda

Miranda Zhuang

the for announce in business Thank second second for and management previously you the management my plans because question. mentioned your strategic the share will half. half half taking year. upgrades Language] that thoughts company quarter the this [Foreign the second Especially for Can action second on outlook for

products So of can upgrades you of give focused company kind may you. what a what services kind Thank of be where taken? on us sense of areas

Quan Long

take I'd Okay, you the Language] question, the for this thank [Foreign question. like reading strategic upgrading. to

fast auto-market in do very that our three witness and changes China know characteristics. we different You

dramatic XX%. very several been last sales First characteristic the with very There has you that QX, is see the been volume same In volatile has over can a that period the there growth comparing Autohome of changes past is is of growth for and a year. big quarters.

Of can also factor this have COVID-XX by course see XX%. the And about growth the we in of only that we April, caused pandemic. the

from growth year-on-year. for to of So May, XX% the and negative there a jumped wholesale the for business, three growth first XX% actually is the weeks

almost of second sales rapidly transition increased year automakers the has digital growing see can electric is April because can you to So January characteristic XXX% and the this you of of vehicle of accelerated the see sales the passenger characteristic been that has very of by new pandemic, the that the is third from that COVID-XX XXX%. NEV and been those

sector. iteration those So premium At good there getting them developing of operation entered car also also services. the and the that time accelerated. of players, They intelligent, brand be the also entire touch of industry we the OEMs, auto some and all changes, of find into with directly some some the same well is including is of as on as well the [Foreign lot we the changing time, have carmakers fast. same products automakers users some with with very as as has expertise been connecting internet NEV been directly lot these OEMs of a a the discovered very We'll Language] the the for with auto connected of automakers, with at auto the example, the they of the of users the the new

this fine to the tuning actually sustainable new strategy. the so half we of mentioned X.X of the development of going market we execution we year. upgrading plan about of pursue announce healthy of are on going continue So considering are we to plan we the changes and adapt And [Foreign this long-term upgrading of year we to for Last to year Autohome, launched are this strategy. on update the Autohome the the the our think of the that the auto-market, based to our the strategy dedicated Language] and second in action above

to auto-market the still as dedicated the development maintain the are we quality growth year we and sound, long-term longer actually have have of in and the about in Language] we year, the the development, good to [Foreign So term. the our beginning absorb on development a this well very is stable high the actually about estimate growth of still China estimate at as of Actually changes XX% a for and market. which

thing OEM, that shortage year of have think a notice related of the is to second about auto the take thing There the cars. is of sheet of take closely And production. for the that we of is COVID-XX to budgeting auto first we relax secondly, the geography. And a have in sales shortage full The to notice the is the level the the for specific I volume while.

the I'd is to add. this two points like So

Aggie Zhao

please. Operator, question, next

Operator

Thank you, Miranda.

question from Please Next Stanley. is Eddy go ahead. Wang Morgan

Eddy Wang

[Foreign your a on comments little Language] new for in the -- my bit new you My actually which and of decline taking you see question. weeks Zou has year-over-year in sales And about slow first Thank a April, of May volume. down. is three been question first in terms car sales -- car May Long

about give question. line. prepared had will largely revenue in has expected us the question how please talking contribution remarks our TTP impact a that second you second the color top would So that Car you some That's this the to been is the your quarter? first delivered And in

the car car Thank So kind far so did in very the -- much. achieve how year. bit have what's and used expected can in how TTP the -- you more strategy terms how little the give of of us secondly been a growth sector? that color used this the industry this of, And your you firstly, topline Car how overall you

Quan Long

Language] the question, the April there the you is declining new well to this months answer your first to a of three in first of trend January weeks [Foreign So see car year as first particular of in that two can of as May, from sales.

there that are reasons two So for I think basically that.

one one of first the chips The COVID-XX and the second is the is shortage pandemic.

XX%. the estimated whole year, was which So the as for we growth about

result our of that about and second you automaker, a closely that sales of the however potential Autohome exploring is see can to And their see your is in in value businesses. that can used because comparison far You business. so advertising that we're question chain other the related business car there's a is downward volume affected trend think the we still for as the

as cooperation can now And can well form than the some see we synergy. in the the Autohome between can car of of growth far that we about the TTP hope say sales. form the TTP You TTP second and hand as that actions, higher some of Autohome is so kind to car, car used new car last business the year that is used are and we thinking acquired we we

business terms The used business the first model, the on platform-based which the of in one is light we actually asset. stick still is focusing that car to

Haifeng Shao

platform car. services [Foreign the as SaaS services side Language] buyer are services to auction gen we as are as buyers. the used the business seller to enable providing used as as the we actually with well for And offering as TTP the the from sellers services the together And lead side, well of gen car lead the enable from

services used the business to car project, better and future TTP we're think as as considering so relevant business. the our the about I So integrate launching well trade-in that also that in

Quan Long

I [Foreign would add to points. two Language] like

like of Shao just advertising auto mentioned, Firstly, Mr. with budget linked automakers sales. the the those are closely

so of businesses So also the of pay operation to we the the are OEMs more automakers. the other to lead users And as to exploring products should is offering the much that we other the of traditional And I more to our actually lead see our clients acquisition clients. higher those attention that, like comparing of by the terms premiums with automakers. enable NEV auto gen would for in pay will

the two, tell is the So significant. not I between very that about but you gap this I will premium the think details

well PPS So through well as I will empower automakers those that to traditional think premium the advertising emerging as we as continue as EV brands.

Jun Zou

orders make well, makers through Yes, PPS. said and we through EVs through comprehensive leads services that offer also of makers, automakers advertisements suite that a EV traditional and to through

Aggie Zhao

So thanks, next please. Eddy. Operator, question,

Operator

Thank you, Eddy Wang.

question Next CICC. ahead. Please from is go Zhao Brenda

Brenda Zhao

questions. have management Thanks I taking on Language] [Foreign follow-up NEV. a question my for

the a you. cooperation other for like little automakers more management this of our and bit models elaborate model future Thank on potential So business? could NEV

Quan Long

[Foreign [indiscernible] Language] So question.

We NEV as we as I with premium cetera. names Xpeng this well with like big have Actually into well the already very as as comprehensive Auto XXXX brands. Li automakers cooperation think EV cooperation entered et the like Nio

there and very So very is stable cooperation that. between sustainable

actually the price lead So of leads. demand based of of quality be the produced the on model on will the in cooperation actually the gen leads of the the has and terms the

this the our model. of principle So cooperation

also So Language] total a upgrading of we model generally directions. strategies They're iterate clients. those assuming cooperation will and our those automakers. the us [Foreign offer between package NEV solutions increase sales the to And of

the The will thing is second have and cities. X your services Tier will first well automakers order expand the we we placement one bigger NEV in to reservation enhance of those the that and the coverage that different drive services, test as particular, is as our in actually geographies online

Brenda Zhao

thanks. Okay,

Aggie Zhao

Operator?

Operator

Zhao. Brenda Thank you,

Next go question ahead. Jefferies. Please Chong is from Thomas

Thomas Chong

cost trend. given our our Can it headcount and OpEx that as [Foreign question taking for China management to in And I still expansion question you. quite comment my for management upgrade overseas is spend. questions. outside our is uncertain Language] a second strategic as changes Thank year strategy about COVID our has about some my the this overseas our actually strategy relating expansion? Thanks well have

Haifeng Shao

Language] [Foreign second question take and first Okay, the I take like would the question. Mr. Long to will

the of the said presentation our our like we about now upgrading Just opening Chairman are planning in strategy.

So changes incubation as business. our new of but and the to in legacy them forecast good well as cost well we at the the according very difficult are cost it's use as our about in the to very me as cost for enhancements actually sales you the efficiency of the control traditional operational expenses, in of the business we'll a for give

I that remain unchanged. will principle think this

Quan Long

[Foreign question follow the will business, Language] So output. of the second overseas still as our about empowerment we principle

you the X.X our March can gen terms will total content million. empowerment, online It connected very more dealers and we content rich of provide auto cooperation to actually means that to In convenience through is see different to empower means will and XG mean, online distributors is users and our provided in things from that as to different our models the be platform. and launch And with test can have there with terms X,XXX capabilities I reservation we capabilities users and Auto mean online will and the empower that. dealers to to output these the them make SaaS will the of that actually actually our with see facilitate we will lead like plus drive users it the OEM we NEV online output, we million in our SKU And empower activities capability, we that so terms to in and the of channels Show capabilities X.XX we the technical and the about continue enhance and through content. our online creation

Jun Zou

our CTO's Just to answer. add point one

our markets. looking For into opportunities into the acquisition we to investments the don't those expedite inroads mind local market, or know other you

thank technology and are dealers will And experience still our to penetrate so our confident you. markets we overall with and that us ability to and work content help and OEM those

Next question, please?

Operator

Thomas. you, Thank

Gong Next ahead. Brian Please is go Citigroup. question from

Brian Gong

myself. for will [Foreign Language] I translate quickly

Thank An deepening An Ping of share in the with upgrade this will So you. in strategic what's half Ping play on thoughts some can year? cooperation the the role Health management second our and

Quan Long

that Language] about can with cooperation. discuss terms our Ping of think there [Foreign dimensions are cooperation three An mainly In I the

technology first traffic have is well in one collaboration first traffic I collaboration that of terms being The product second the is learning enabled technology we technology one and one and collaboration one collaboration. as been second as is and is the greatly and one AI And collaboration. machine the by An the empowered third Ping think automation

of We making have An Ping Ping the been lot our cooperating and we on program have with website. An been presence mini on

talking Pocket mainly the been example, presence this For programs before. take like their as data we campaign well third communication as Good In them, profiling XXth as example Good are marketing the as product products accurate for in but mini that making the been on this our user say precise users cooperating the well we with we have have one specific empowered Ping capabilities. These the well on throughout August one that things Bank Doctor collaboration. have Owner can as been is those and product these the greatly and based we as based media resources [indiscernible] through the An

Haifeng Shao

with very one with intensified also Language] Ping of OEMs related see support engaged you the work. collaboration with An subsidiary comprehensively Actually been from auto lot terms as [Foreign that for like An where well actually we actually An the affiliated and An support daily are of cooperation cooperation Ping recently dealers. the well the ecosystem. Autohome this and which get the as a has to the can we are dealing point as in with totally year Ping Autohome Ping to actually I'd with add the all as have

Aggie Zhao

Thank you, Brian.

comments. I to to for due Okay, conference constraints, the turn management back closing time will

Quan Long

have joining call you. months' much or in next few forward and please in get In our free the you on if Thank your we support with updating We a further very conference appreciate comments. you to any to look touch Thank for us meantime, you Language] today. time. [Foreign questions us, feel quarter's

Operator

Thank you for participation. today's call. conference and this Ladies gentlemen, concludes

You may disconnect now.

Autohome (ATHM) 27 May 212021 Q1 Earnings call transcript