- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by for Autohome’s Third Quarter 2022 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 Mr. your my Autohome’s Sterling now Director, IR is to host, introduce Song, It

go Please, Song. ahead.

Sterling Song

conference Autohome operator. Song and company's Autohome’s earnings website and you, you welcome Earlier Thank Hello, copy to third everyone. may find at quarter on press www.autohome.com.cn. its earnings distributed I'm a Sterling call. release today the XXXX our management Mr. Executive Long; and Quan will today's we Craig with to your On Zeng Mr. answer call, our have questions. Officer, Chairman prepared us. available be After Financial team and Officer, remarks, Chief all Chief

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

as certain release required is non-GAAP refer of note on law. Please of earnings reminder, measures. available and to comparable Autohome’s conference release a cause Potential to current statements, any the financial the Exchange to filings Forward-looking Again, update Stock this which this Autohome's from except our US and materially risks those undertake the press actual public and contains to applicable measures conference a results Limited. Autohome include not to statements measures, to outlined that are subject non-GAAP are forward-looking discussions that our and expectations. differ with Please any call doesn't Securities obligation is include, risks IR Exchange Kong uncertainties but and being our directly limited GAAP as under press also of unaudited reconciliation Hong recorded. and in may website. Commission most uncertainties

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

turn Autohome's opening CEO, will call Long ahead, go Chairman I for and Mr. to Long. the Now, remarks. Please Mr. over

Quan Long

of conference third Thank today and XXXX Sterling earnings for Thank Chairman Quan is Long, everyone. everyone. call. and quarter Thank us in Language] hello, our This Autohome. you, CEO you [Foreign you, joining

report half a our to the pleased first quarter, are building performance recovery XXXX. in of third strong We the operational vigorous from on momentum

Our the as quarter. our effective quarters, past bottomed provide these unleash rebound year-over-year, Central the adjustment the stimulus to challenges passenger actively total upgrades to million, few gradually on policies adjusted car alongside quarter head targeting service the with beginning business consumption year-over-year of circulation introduced address services in income to in industry pandemic. increased Adjusted model cycle, Adjusted to is solutions long of series their auto the abating the The level and to their units growth address X.XX of in automotive as late of has pillar the quarter hindering car national spread industry, [Foreign people's After the Despite tremendous to vehicle Autohome total sales sold a the increase a XXX RMB prolonged used bottleneck RMBX.XX to positive impact China with or were media To year-over-year. Also, a and for release relative government and year, as by China's in the net and of growth net potential up the COVID-XX achieved lives XX% a was in the government. abolishment pandemic X.X% a we of the industry out Auto demand demand revenue Language]\ the relevant with economy a also typically the was potential. key year-over-year the increase. great growth. revenue well restrictions stage effective industry returning the third support life third third still attributable of listened XX%. economic of for China billion, used margin efforts in X%. XX% this the from to growth auto to auto remains million Autohome protected contain pinpoints. continue business customers is and measures helped consumption changes recovered has policy Since given

returned and Zeng, are driving trends our a Financial quarter that, maintaining solid operating we With year-over-year results. over our [Foreign closer I call now the financial and have a look Officer, now market. good third and to We the will growth turn Language] to delivered – at Chief results Craig to for

Craig Zeng

of I’m Craig [Foreign you, Long. Mr. Language] Thank CFO Autohome. Zeng, everyone. Hello, the

like I'd traditional to our you give business. overview an First, of

first continuous year-over-year our third and positive up share revenue This quarter, the stable media year for a over Autohome's million the time a auto sector. to position market speculate returning in growth adjustment. For media vertical service XXX the reached RMB leading

mainly is to performance factors. excellent Our attributable two

changes we embrace pursue innovation visits. proactively upgrade to our and First, traditional

which the we and platform. year, to Autohome’s help secured experience online helped to user people help auto has fly buyers effectively shows all improve auto auto first example, time searching nine pandemic anywhere. business and simple user XXX impact Normalizing car over offering technologies and tools and and months nation-wide choosing online For production, via covering the ordered also million online traffic XXX to have top their a partners for shows additional advanced generated cars environment. In navigate effectively, searching anytime of the will our the for customers to potential other more the reach shows

business. high grades in shows resulting received Our improvement media from our great auto both online our users and customers, in have OEM

our fortifying and enhancing our presence. Second, our competitive advantages on industry we concentrated sources

platform four show hand the year, billion auto collaborated media short and accelerating but industry. effectively vertical which a we view, products our video through the video-based Central to transformation we the those brand the well initiated also most of positive increased more exposure, annually Show, efforts devoted X brands has For OEM with across and Autohome media world's The for example, more the IT the XX.X Television media and promote only show in generated unprecedented auto pace constructed digital to This Show over not firm Super influence advancement Auto across industry. year. the CCTV XXX China over entire of helped in having year's resources content and other the Auto continued IT ongoing This consecutive XXX media auto to sector the as content core level Super have billion our creation exposure our with identifying auto in as network ecosystem. build Autohome the useful

the contract among indeed our video across For and signed content garnered the the instance, users. for we [indiscernible] views our network pursuit realistic first hyper innovation, XXX responses view of has million over generated entire a the for industry's

including three are accumulating entire others platform original XXX journal series, XXX the Additionally, our among growing on million in million first the core travel quarters XXXX, demonstrating of on over Autohome views our over influence. network, IP and

X% users introduce user affording Autohome greater clients tax to engagement first macro features, X,XXX ability and region let's interesting the business, Furthermore, customers to empower purchasing to seeing in the accelerating Eastern surpassing two dealers our quarter. the terms number long-term greatly growth steady among million second users. or participation QuestMobile, packages. number once content of will in of illustrates quarters growth total XX,XXX according over of region dealer our in represents and our of industry-leading move ahead our keep Autohome stricter the third growth to the increase our revenue Moreover, by combined over future, versions growth and active of the X,XXX [ph] [ph] to video-based growth arrangements a XX.XX over rate in our to year-over-year XXXX. purchased industry X.X% showing X%, the This our young trends in average Language] metal compared content daily virtual mobile demand million. Now, bolsters to over and series growth a big consecutive again further portfolio for where ecosystem, XX,XXX our both ability over our such The active and accelerated quarter-over-quarter the September high-end revenue third other growth deliver to an in user quarter of average level our customers additional year-over-year assets the is achieved over the quality our business. RMB quarter dealers X.X% encouraging the of was position. strengthen aggregated upgrade So steady XX.X our This the efforts increase set over of traffic daily subscription client was of of with premium dealer rate of [Foreign

services unique fulfill attracting brands future, business ahead this And And attention driving we space and offering provides representing second presence purchasing its customers to will proactively pipeline and strategic us energy at continuous of new support with from cities company. this made upgraded we have a whole our new the growth [indiscernible], Technology of potential market initiative, ecosystem growth of shifting continue partners industry. our of NEV more with significant look our model new on one-stop R&D our traditional Language] base by of store [Foreign Chinese Autohome building driving we the realization automakers September, the keep advancements. excellent space, our Autohome life. top-tier NEV the parties retail space [indiscernible]. helped digital Autohome test NEV selecting, across the product stay plan hands Autohome our business car and purchasing building time-consuming only the with great lower customers' capability, Turning attention forward, the also holistically signed not quarter, of new fast to increased top the continue at has curve and Moving will story [indiscernible] continue brands and needs the first the our our accelerate future, services. expand our the to into covering development offline to cities, car market [Foreign to a and our products the which while we a in direction a that the adapted and during of model. in support benefits product in brand stop tier penetration energy prosperer followed uses empowering and and our we'll rates. In and we the broad Notably, across and market In NEV achieved NEV, the NEV product Beijing progress increase Shanghai, test look NEV that for execute First, to other pioneering by and continue cars in elapsed the unveiled industry. to all multi increase is evolution the at look completely fast-growing information China's Language] into makers Institute transformation by experience let's a structure substantial versus XD model holographic business NEV

digital more various up Autohome supporting NEV in develop forward, with business applications. such Going and [indiscernible] products as our will marketing data NEV services growth cooperation index improve we NEV use and empower prospect. areas the the sales broaden two NEV data corporation sources valuable parties opened for This to and

way generated to we changes in use Tianbo [Foreign which and consolidate policies, Before, for and cars do this car to year-over-year, TPG, has in car sales outperforming used Autohome and product, make our of XXX.X% continue one-stop high With reach is transaction undoubtedly the across buyers. revenue their sheathing year our targets growth treating world's and user the Next, gain by opportunity, attractive from -- purchase sellers, in to and positive ligated new fit market grow toward continue -- increased the brands new profit platform, competitive OEM of propel ones development QX, for potential used to growing into this market. looking a to overall. once to the car resources industry NEV again governmental users China potential Language] ads most

feedback. collaboration brands positive established received XX with already have and We

a For first test provide searching, leasing and Itabir, the buying user standardized services acception for smooth of main of we realizing driving a experience. delivering subsidiary and industry's and one a on car, processing

both ease In new continue XX transaction with platform. buyers. increased progress for the dealers systems rapidly make creating have number to car car opportunities new cars and we sort more addition, new and our our XX and on

full a advantage implementation while upstream, Going overall downstream our business establish competitive industry will contributing midstream accelerate Autohome covering players, augmenting innovation tactical system to forward, development. new of to and

forward. services, quarter We units all these growth in X our conditions continue for China to auction and XX% around continue going in year-over-year with of and the quarter third to car operating in platform third DCP transactions will the through with percentage tax used accounted deepen points weak our improve matching

Autohome's a the brought of respective. number year-over-year Lastly, of opportunities microeconomic on all mainstream digital X,XXX we efforts to revenue automakers, pleased Presently, curve. average To have the during of that, of Language] on transformation with data product [indiscernible] continued quarter XX our support in front, X year-over-year, healthy has XXXX, their capitalized and the Autohome second dilator X% the industry to since three expanding in summarize, increased by year-over-year to our upgrade the growth over uncertain continued accelerate third average [Foreign products by our with results clients our trend by the part data X% environment, extraordinary of revenue and products which successfully roughly are XX% -- we and of business collaboration the the first established continue X% On to will as half product. despite top data up XXXX. auto achieved quarter-over-quarter recovery months and momentum number XX% segments, adopted first in-depth of by the per growth

in main leaders Autohome past the China's industry, year. over the of on one strategies auto has two focused As

industry invested our with to auto meantime, Ping comprehensive a will industry's and provides business Autohome users. in perilous innovation Autohome are transformation foundation stakeholders me performance. digital committed build for cycles. navigates consolidating Group discussion In deeply [Foreign the only that as RMB approach, stated. today, quarter business the for our An I'll quarter X.X% key we Please foster our lasting continuously calculating the with third innovative are one-stop year-over-year. to our First, platform Language] and XXXX. performance creating by resources segment leading for third services strong actively by featuring backed billion, advancing future revenues that the X.XX with outstanding in financial market call, up [Foreign were Language] we ecosystem for industry-wide all let walk the Next, through that Net you financials reference note in otherwise unless prior my RMB value

of an million. X.X% media breakdown, increased revenue Cost RMB generation RMB increase million, XX% was in revenue services to revenue million year-over-year year-over-year. year. RMB in the investment third QX our XX.X% compared came XXX detailed XX.X% XXX million Moving Language] to to and quarter Costs. margin in content. online services The in attributable on Gross RMB to was XXX XXX million XXXX. XXX the in third primarily others This was quarter compared RMB For of to at increase and was continued revenue in last QX, marketplace [Foreign

attributable RMB promotional XXXX. activities quarter in and the was million XXX Sales digital expenses. XXXX. in million was was expenses spending. escalation Product of QX million development XXX marketing and expenses development to million research The the compared primarily and were products. XXX compared increase greater Turning to investments to primarily marketing RMB in to increase RMB third and RMB XXX operating in to attributable The for QX,

Inc. in period the respectively, in quarter to Autohome per RMB XXXX. of of XXXX. we million compared and XXX million in million both quarter, Adjusted general X.XX quarter RMB diluted income share QX, Non-GAAP million Non-GAAP earnings million third the RMB the XXX third were to the to compared were both X.XX attributable in RMB was XXX XXXX. and transforming profit million period the third X.XX and RMB the corresponding were quarter Finally, ADS to RMB corresponding and for administrative net Overall, earnings XXXX. the the of expenses XXX corresponding XXXX. RMB in compared per delivered RMB in diluted in to both operating in RMB X.XX RMB period XXX of to third RMB XXX of period compared basic in X.XX compared basic

our XX, Directors period equivalents XXX remains XX, in share exceed reflected million billion. with of flow sheet of September RMB the quarter we and XXXX operating strong investments a generated November RMB On Autohome X.XX Board million cash repurchase program of US$XXX of to XXXX, cash under short-term of of which a authorized XXXX, net third not our may, months thereafter. XX very We As up balance cash, to for ADS

our flow healthy the share long-term demonstrates XXst, sale Chapter repurchased an efficiency X.XX program investors' efforts October of XXXX. On million another XXth, reserves repurchase Xrd, for As stable of stock on cost XXXX, total ample approximately approximately program as of our our reset proactively to Autohome our US$XXX market authorized November million. the of is value. company's November potential cash Board filing we active repurchase a operations, our for cash manage we improve intention interest and extension ADS plan as Directors long-standing to well and will our maintain XXXX, expectation have to

You can the we on that, go answer to your questions, to Session ready cases. are Question-and-Answer [Foreign outstanding Operator? With Language]

Operator

of comes first Thomas ask Thank Please Chong you. Thomas. line Instructions] question question Jefferies. from the Our your [Operator from

Thomas Chong

the Thanks about outlook? well QX development is my questions. And about taking the as the TTP next market car does Language] QX second so about well my XXXX how as How Thank as auto think about developing market. strategies? as, we year's is well you. for we used management landscape, think are question My [Foreign question first should should as industry how sets including far as

Quan Long

[Foreign your Language] for you questions. Thank

The will industry, the answer first that. and to is I related question

question is you. to Zeng second answer new our Craig Your will related CFO, the business, car

that manufacturing National that industry to and industry X.X%, automobile for decrease Language] vehicle of the XX.X%, auto First our of car year-on-year and first policies made this of of nine Autohome the X.X% year parties, national QX according the to the passenger QX [Foreign of Bureau for year-on-year So all, of might months year, have X.X% in implementation turning certain our set X.X% specific this update the decrease see September, see the revenue optimistic economy, year-on-year of growth has by year Statistics and the the more bottom we profitability and according synchronized of the period the industry of the and point recovery significant vehicle follow-up and CTCA sales production decrease first passed. manufacturers already growth receiving have attention a QX details. industry of year-on-year see narrowed In and policies and we the all, very the necessary to China already development. vertical series been RMBXXX X.X has moment a could for the and QX, the are all monthly to compared to January a from and is leading been arrived QX recovery, target profit out the might this over has since a I that -- for at believe is And might and of August sales more stabilization of -- consolidated. We provided. of margin have getting and decreased points. billion percentage passenger both we sales have of

effectively the recovery. improved So economic for strong that foundation effective management

So more and our industry we the having is that a more environment believe positive automobile for development.

also we government. of auto remediation the that of to policy specifically is series see launched cautiously about Finance, and automobile policies Ministry benefit of the council, country Administration the comprehensively new NIIT from retaxation the automobile policies jointly is enables levels consumptions QX and Therefore, the September, reduction, the from Secondly, automobile the as state from valued purchase as this to situation moment from all growth. major for development. restriction for highly supply the the favorable we the exams well encourage has industry cost -- and as stabilize And boost Mobile like it [indiscernible] NEE a the optimistic to we and in of expectations regarding moved the the industry [indiscernible] and chain, by witnessed encourage shortage. are industry problem the we year each

beginning pandemic upgrading engine which uncertainties, recurrence So a [indiscernible]. been our their auto and China, as periodical growth gross are ethnical in has and by market we the this fully have And multiple we some Since macroeconomic of as in part for impacted actions the see consumers to challenges impact year, well the COVID-XX of brought in in in the on-mobile consumption the a extent, some and measures. for of locations China. seen huge potential confident

are is end this to they in of OEM there So extent, -- short-term to in one increasing sales. to or the the the some the discounts market, greater at we perspective, fees enterprises, give and year a MVC the try

of that think is to boost I initiate consumption cycle upward to likely So need it and our industry. an end the

as On a penetration and has the the EV year-on-year which policy, base compared the the higher upward of the favorable because the September, been retail the the due structure other domestic market, prices gas of NEV growing the is market to improvement due side as perspective well hand, sales XX.X% from rapidly, this penetration in XX% development very of is XXXX of to auto compared last goal of was increase September. rate penetration and to In nine penetration mentioned XX NEV an it of growth XXXX domestic points. and there retail XX.X%, could first rate months that NEV the of see XXXX rate The you percentage XX%. industry plan the in is the NEV is year, supply to

So could Association in overall growth we Now, second contributes that I be – we advance. China hope and QX the the of to this CAAM years achieved the project this three auto to the the also manufacturing stable interested stable of [Foreign explanation that, the Language] could so is sectors. quite that economy question, in you policies as under Manufacturers, next and still influence to of auto According the of are that would aim double-digit first have point business. in so digital quantity, with just as business project our a amounts -- brands. of cars products. this efficacy for dealers already well revenue or have and beginning capability market, since have terms we the about for process brands to market aim in the will sales dealer partnership of or we of the as over that year, and other the see used -- digital Automobile our -- reception OEM, constant see [Foreign in trend XX% products, policies, a revenue our product a a cars -- automobile And continue a stabilized of so our of course, policies means [Foreign the year, our stabilize collaboration collaborated of second well be the of proves as the estimates the related Well, projects mainstream year as as XX and could Language] the by well as also achieve products and market the data we favorable Language] continue about growth specifically sold, Chinese in our digital in goal growth revenue positive store established terms

your well talking interoperation Kemoshijie cars, a two the [Foreign as talking quality However, of for be used collaboration. because in car at. terms area the Language] car our from as is is upstream cars, in slight other as value-added we very very car, monetization clients advantages and to Language] we used second -- we parties. but there lead-generating [Foreign cars increasing of is an digital Language] will [Foreign the there first committed service terms contraction And factor used TTP is beyond appointment our which passion an middle-stream in products of client’s unique are perspective. are the in used cars life Ping And we platform answers will in our Language] trading signed well growing our [Foreign is stop about decrease terms strategic an taking growing car. exclusive of diverse in maintaining asset all, certified Technology between that used lacking in our we And model confident in our upgrading the So We of see digital the set recently, to Autohome to by sector. counterparts Language] fastest used platform Generally good and further is the to [indiscernible] and agreement in future, Beijing In used of product. and our a above competition we and as pain service keep Language] downstream market. [Foreign advantageous is business the China, a data digital there Company An, Limited, to a about the new development, are business our And speaking, which And product dimension service and cooperation the of questions, is points which the and landscape of new The [Foreign which of Technology of cover of build Thomas. life with is solo believe contractor, pattern, on perspective we the the energy, huge service integrated potential

Operator

you. Thank Great.

Our Gong comes Citi. question, next ask question your from Please Brian from Brian.

Brian Gong

out [Foreign and as in for myself. on for year? and this Language] our view product continue I [indiscernible], share budget market fourth where as ahead? will we Thanks management you. roll lease management taking my And Can also the your auto ahead question. premium quarter translate more year to working next to Thank

Quan Long

cautiously [Foreign Language] Generally speaking, optimistic. partially we are still hold a we favorable attitude, and

schedule talking -- them, This the advertising shows almost the them on schedule of or or Our time of the scale. for car pandemic or exhibition according auto to about the almost market, of COVID-XX new new of budget all to the according models impact estimation the year, the part. is from however, held auto none were based also

for metaverse. and has that virtually -- forms integrating of with example, shows, to example, new led also However, for

have the advertising service as budget next the more speaking, for QX generally our linked We of is OEM So been as Language] [Foreign dealers. cautiously is sales still a year is well our to providing to additives optimistic. that why for diverse

our For example, is [Indiscernible] popular very dealers. among

Language] that is costs So boost for the we to help answer Brian. [Foreign cut So to and the efficiency. question, features your provide to new continue dealers our will

Operator

Thank you.

Our Ritchie next comes from Sun question Ritchie. from your HSBC. ask question, Please

Ritchie Sun

taking for Thank Language] questions. my [Foreign management you

the Can opportunities that have behind well as as Huawei. you seen noticed the we some is companies. And collaboration NetEase all, this? signed of we've that what Internet opportunities Music and collaboration other First rationale elaborate other also with are with you on

cost for top efficiency Thank us to rooms are cuts more do macro of initiatives, terms given other the the or in Secondly, what environment? you.

Quan Long

[Foreign Language] Thank you question, Ritchie. for your

called try is it to car be with owners the to the us music, we I users this that a Music is music some of season driving think launched with launch to content gives NetEase provides subscribing experiences car new users could This collaborate we a acquire scenario integrated we make campaign better attract consumption more the scenario. and and of and question initiative imagination driving activities. and new with First how our a We collaboration scenario. of NetEase for about and in Music, iterative user active room

use We And offline, besides, also development interaction as scenarios by cyber with external Technology this Information traditional Autohome for online have [indiscernible] – system Internet the this to and need will different which explore Information but so we enterprises pipes based Company measures. to important in some there is example, also of try [indiscernible], small activity. to a we our it application. ecosystem question of also shopping and as traffic for second initiatives your also I which enterprises, virtual common the and only collaborations, build moment a also Limited, consist and bring we to try not also also cost [ph] a with example, are with diversity internal we alliance some an were purchased efficiency Media And earlier, for to Technology mentioned to speaking, formats the our and try and the as products, we collaborate and Focus auto more to future user other internally well collaborations new said, traffic. is about and have collaborate an But and build bring on business

efficiency ecological reach of of models inventory for free more video are can in you our is efficiency to efficiency we format. content -- very we terms of measures have me the in our by take and in out and external you generation initiative, interested, doing our technological if the terms the our evaluation report, we an Talking for more. to give we been to well -- cost like even example of I'll measures boost the facilitate of generate how explanations could building in we continuing automatically you For try are of generation, example, There our this as do feel content the and system. technical about performance places such to technical to cost managers, managers. measure our use of boost another to example, in measures

example, For ecosystem we could purchase. future, acquisition see in And chain this improve so shopping a could and efficiency cost and this our initiative. extend to stayed our we currently, further first car in don't on focused the our customer we way, car driving,

So are there any further questions?

Operator

Thank you.

Our Brenda comes from CICC. question your next [ph] question. Zhao Please ask from

Unidentified Analyst

is data product. the So regarding question my first

any up the our we recent As sufficient the COVID And should is ratio Also, new think share do or for product cash cash QX how set our Since entering plans we usage. launch? second question balance, may into buybacks? our could expect to have on are weigh OEMs raise plans payout Thank we our and dealers continue of resurgence demand there and dividend XXXX? about have OEM my any to we you. budget,

Quan Long

[Foreign question. Language] for Thank your you

talked The it I first question and regarding already the I data have just it actually, briefly. product, earlier about will recap

our products will for continue So new data customers. to launch we

mainly analysis. them And about cash market of shareholders compatible flow, continue talking our pay we paying their help interests. with in And initiatives buyback a our we our manner. Q&A returns as with for plan to and will End And of their course, that been them well will is manner best as cost with have dividends will, of product. in will OEMs, we we marketing and a For we mainly best efficiency dealers, help launching stable

Quan Long

Q&A support, your Okay. joining our you you earnings today appreciate in That's we the conference months updating the look call Thank the Thank on time. few of you, forward end session. and quarter's call, everyone. in us conference a for next to

feel Thank operator. you. So everyone. you to any you, in please free have Thank if Language] meantime, [Foreign contact us, to the

Operator

concludes participating. This Thank you. conference call. today's you for Thank

disconnect. may now You

Autohome (ATHM) 3 Nov 222022 Q3 Earnings call transcript