Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by for Autohome's Fourth Quarter and Full Year 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 your my Autohome's Sterling now Director. IR is to host introduce Song, It Mr.

ahead. go please Song

Sterling Song

Thank everyone. conference operator. and company's and Autohome you, website Hello its you full fourth to distributed copy year quarter may Autohome's at find XXXX on press www.autohome.com.cn. earnings earnings call. a today, Good Earlier release evening. the Welcome

with Financial Chief Quan Long Mr. today's we'll Officer, Craig On Mr. Officer, call, have Executive Chairman us. Yan Zeng the and Chief the and

team will management available After to questions. our our prepared your be answer remarks,

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

Forward-looking to the US results Stock Kong uncertainties our risks statements may and Exchange with risks materially those that public but Hong filings expectations. uncertainties cause to not are and outlined Potential are include, actual Commission The of in limited subject from to Securities and differ our Exchange and Limited. current

any as call includes any certain that release conference obligation this Autohome Please applicable non-GAAP financial and unaudited Autohome's earnings statements know required forward-looking to discussions doesn't also law. under press undertake update measures. except of

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

conference Again, as being is this a reminder, recorded. call

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

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

Quan Long

[Foreign Language]

is us in of Thank joining Autohome. Hello today Thank CEO This call. you earnings everyone. Quan Long, you, and Chairman Song. our for

XX% revenue boosting topline at with business of Autohome's XX% year-over-year, services delivers quarter, robust pace fourth growth recovery the media total growth. by revenues up Notably accelerated year-over-year. while our In witnessed

profit good also profit We profitability and level. high margin a maintained

quarter throughout year, the pandemic XXXX our backdrop overcame XX% closing resilience and Autohome other first uncertainties adversity and note. of by Our with a margin back net XX.X%, the stopped, on and the the vitality of demonstrating slashed year-over-year the again out reaching the bounce adjusted income high for adjusted net Against business. successfully once

large long-term business innovation the blaze and our we healthy well-positioned capabilities, cycles achieve development and frontrunner. Building become user and the base, to to as fundamentals, navigate Autohome and trails continue industry industry-leading engaged market is solid

Language] [Foreign

back ecosystem progress Looking achieved and at we significant two in areas XXXX, new of key initiatives. content exploration construction

cross-promotional we successfully brands front, content explore platforms to and our strategy to Internet multiple experiences. the IP automotive video-based new On organized promote big activities leveraged formed partnerships, our with and lifestyle

exploration, across industrial we strides promoted used value supported in-depth products in the NEVs, fields. data continuous by and new In terms huge made new achievements exploring cars, initiative other chain development of our and business our

areas, by of foster standards X business new With multiple our types relentless new to dimensional establish built brand continue our ecosystem Driven new Phase automotive we a boundaries, the and development propelling to efforts new Autohome heights. and business roadmap industry extensive in new expand we've in business. concepts

Language] [Foreign

Autohome and auto Heading the stabilized the industry and returns from the expected of government increasing local into also improvement for all achieving macro restoration consumption while with a maintain policies empower business environment situation so promote the and parties. will digital recovery, transformation, and boost upward trend. Benefiting industry partners XXXX steady growth industry's to shareholder continue a in win-win industry-wide to order

[Foreign Language]

Craig look the year results. closer operating for turn call Yan to Financial at a and With over that, I Officer, and Zeng fourth full quarter our our Chief financial will now

Craig Yan Zeng

Hello, Zeng everyone. I'm Long. Chief Officer Autohome. [Foreign Craig you, Yan, Language] of the Financial Mr. Thank

creation matrix [Foreign to content build useful and to establish ecosystem. Language] made As efforts Long IT IT Mr. Autohome video-based and just we ongoing have a content constructing mentioned, fun core advance

in launch consistently has our example, buying users regulatory since For results and XXXX. greatly With that flagship produced cars. testing vehicle testing project Language] IT useful inspection, in its [Foreign assist content choosing

XXX accumulated and net inspection has a covered have across newly accumulated vehicles nearly of travel million of million journal electric network overall four leading Test vehicle IP XXXX, XXX popular in and launched matrix. XX In the worldwide, the views views IPs Super size Autohome's market entire our original original the nearly including to-date. terms

addition, In seamless searching anywhere. year, throughout XXX than held users we and shows choosing more online a anytime providing and for this cars auto experience

creation portfolio elements younger users. and deeper We virtual greater metaverse, as participation to our such interesting also and a engagement to introduced assets from metahuman encourage content

will In be user fact, it our enhancing stickiness.

Cloud of lifestyle broad [Foreign array multiple BIT experiences. Huawei business [ph] JC partners as Cloud new and online Language] explore jointly of Institute and such reached to to et such explore AMAP, we Information, a also Beijing greater with [indiscernible], or activities synergies. Auto as automotive cooperation Technology platforms with Furthermore, organized NetEase Music and the We've strategic have cetera

QuestMobile, have the creative increased million These base. by and reached in increased XX.X% leadership record of XXXX to in high industry. ecosystem substantially tactics and Autohome's user DAU XX.XX mobile reinforcing our in traffic a position the According our expanded December our further year-over-year user

various our the of despite our faced generation is which dealers notably maintain continues the tools Autohome fourth challenges upward Language] the to membership lead services business immense XXXX, dealership steady with the Regarding momentum quarter, growth products, in [Foreign markets and continuous upgrading [indiscernible]. the in auto of

helping making costs decision transaction reduce through dealer costs efficiently. our costs reduce increase customer's and advanced technology, We to our continue customers to overall and

our cat and over XXXX dealers combined a packages. our As purchasing nearly over premium fourth dealers quarter XX,XXX of subscription XX,XXX a total versions in purchased purchased result, our dealers the version for version of lease high-end

of [Foreign breakthroughs exploration resources new products increasing major types new Language] models and new of investments achieving and key terms by in curve, development in growth of of our the second business, accelerated allocation areas. we new initiatives, In

me through Let great you detail. walk in

unveiled look Space. officially our let's model we let EV experience Language] the first adapted the rate In Facing called offline September at pioneering in multi-brand Energy Vehicle our [Foreign unique Autohome continuous proactively increase New transformation. retail Energy store, business. penetration First, XXXX, and market a

Model from transactions Retail with activities offline purchasing also a with connects one-stop Foodchain and online selecting OEMs. providing users gaining experience, while This recognition

new cooperated we XX brands, the with have now, retail As field. partners new becoming OEM's of in

XXXX, generated brands again, and EV grow the sales once outperforming by vigorously In industry's to revenue continues year-over-year, XXX% growth. from increased

forward, Looking improve multiple experience. types continue of of to of purchasing integration the penetration Autohome and stores transformation the businesses, explore cities lead rate the the will various car off-line in of

cooperation XXXX, breakthrough to China's [Foreign private five the present, to data market. of Autohome Language] more back-end half than digitalization OEMs On with in of of from auto their zero established front, services. automakers user's our tools diverse meet domain At to needs, achieved we data spanning operations in the product one series providing with have

to Building profit our on and and with two-chain dealer our digital efficiency. data Autohome's capabilities, digital products helping products dealers marketing services provided increase customers

more XXXX, dealer adopted average full by of store per increased data by products number XX% year both year-over-year. For data revenue products the each dealer store the and of than average

our or [Foreign progress dealer Language] one-stop platform Ping and transaction and car both Autohome Moving TTP Tiantian drastically buyer for An resources the solid and We promoting on business. accelerated to our the used and Paiche, cars our Group end. of integration achieving from full-chain used service

history with [indiscernible] For our price condition through vehicle buyers, provided and them car purchasing effectively concerns. we solving their inquiries

car by operating helped them platform. end, improve used On the we a building efficiency cloud-based digital dealer

for operations upgraded car and matching In X% XXXX, XX.X% accounted In and its through auction operating addition, Autohome's our conditions. we growth. of in point China have through efficiency platform all further services, with year-over-year transactions refined about enhanced TTP's used

in via strategic Moving data forward, we used the will in-depth products the used building for footprint edge continue chain cooperation and across NEVs differentiating our and BIT create expand to ourselves field. entire competitive car industrial our with

To pleased and have Language] all various the summarize, we made XXXX segments. [Foreign to progress in great complex business in despite microenvironment uncertainties are

growth for quarters two momentum perfect a rebound achieving recovery business in stellar upward and our consecutive the and outperforming results. maintained have illustrated overall market V-shape We

cultivate will media continue its China's by its in competitive faces strengthen services existing of one-stop and providing ecosystem we traditional life automobile segments leader share a to full-chain advantages business the users vertical customer build various full cycle the our solidifying base. to Meanwhile, to continue also auto ownership. maintaining its across with As auto and innovative Autohome business market platform our will industry

the rigorously value digital performance lasting transformation outstanding shareholders cycles. that users, are and customers market promote confident with creating of in while industry, percent our we can all We the automotive for and upgrades

[Foreign full year walk the quarter next you RMB Please me XXXX. only let today the for Language] through that with and And fourth the prior discussion in as unless key will note financials reference otherwise stated. my I calls

year-over-year. were X.XX RMB for Language] XX.X% up billion, Net [Foreign fourth the quarter revenues

revenues For a RMBXXX of year-over-year marketplace increase XX.X% and RMB revenue million breakdown X.X% were Leads revenue detailed came million. XXX at services to online million others in increased year-over-year. an RMBXXX generation the media and services

primarily The margin the quarter fourth the in on our compared attributable to continuous revenue RMBXXX XXXX. in million to XXXX. in QX, in investment quarter cost. was to compared to QX, Gross content. million of Cost XX.X% XX.X% our in was RMBXXX Moving was fourth increase

decline marketing Product The were operating primarily XXXX. RMBXXX XXXX. to decrease in to Sales was RMBXXX million million Turning the and RMBXXX in to expenses marketing million in expenses. were spending. compared million QX expenses fourth QX, quarter promotional in and compared to attributable and RMBXXX the development

million general Finally, compared were RMBXXX expenses in and XXXX. QX, to RMBXXX administrative million

compared RMBXXX net to Overall, quarter Autohome million the the income million in we period million Adjusted corresponding delivered of fourth period XXXX. of RMBXXX million the RMBXXX to in RMBXXX fourth corresponding XXXX. to in compared operating was quarter profit in of the attributable

basic Non-GAAP in were and fourth RMBX.X XXXX. compounding corresponding and Non-GAAP fourth RMBX.XX in compared and in RMBX.XX in XXXX. earnings RMBX.XX per the period respectively compared and RMBX.XX of quarter to per ADS respectively, basic period quarter earnings were respectively, and diluted the RMBX.XX diluted both RMBX.XX the share of to

results. billion. online summary were and media billion. were RMBX.XX now were RMBX.XX services billion, generation revenues XXXX revenues marketplaces Of other of Leads revenues that a The and our to me were turn RMBX.XX full-year Let total RMBX.XX services billion. short revenues

adjusted attributable of net RMBX.XX addition, Autohome to we delivered income In an billion.

balance operating in billion. our of cash flow equivalents of XX, and remains XXXX, cash, We XXXX. X.XX XX.XX net RMB generated As of cash billion investments very strong sheet short-term RMB December with

repurchase Board authorized committed share a our we repurchase ADS of to XXXX XX, a November for not Autohome's to exceed months. On which up Directors were XX million under to program US$XXX period of

on XXXX, the for of an repurchase extension Thereafter another XX, Board our XXXX. authorized on Directors X, of expiring share November XX month November program

repurchased have for we As XXXX, cost X.XX of $XXX total approximately XX, million. million approximately a of February ADS

announce returns our cash an the at XXXX of investors and pleased fixed further amendment even to ongoing to in I'm XXX increases between million a RMB dividend shareholder support. long-term amount least our also to Board our their approved for change repay annual augmenting to that XXXX

approximately a XXXX. year approved fiscal also has for share ordinary ADS $X.XX Board per dividend of $X.XX per Our or

ongoing dividend operations well reserves demonstrates to as Autohome's interest. dedication long-term active and flow efficiency our repurchase our cash and determination stable payout allocation as capital sufficient reflects investor's healthy cash program our our our stock improve long-standing to and

healthy new we into continue XXXX, long-term committed value. to shareholder As step delivering initiatives develop growth to remaining while we will targeting

With to that your we are Operator, line ready open please for the the Q&A session. questions. take

Operator

you. Thank

from session comes from now question. Thomas Please [Operator will Our begin the We question line Instructions] of your first the question-and-answer ask Chong Jefferies.

Thomas Chong

taking result. and Thank Thanks, I capital my is for our questions. have a two allocation. industry management auto about of questions set and on about solid usage this number question two the you. for year. congratulations And is the first for outlook cash My

Quan Long

is trying this your quoting, My why Well, question. answer asked question Long for question. the you name to you Quan. I'm by thank

true of that noticed with has As the the have been the the year, released. the have number you of If production last know, of terms some compare dropping data and production the of of and you significantly. we same the in also with sales been period sales comparing the That's month. previous already January,

to were think I this. two reasons, there tied

The Chinese first long the Spring was reason January. on is, holiday, Festival the because

car The NEV second policy end away, because the the faded been year. policy combustion of is, and favorable has for reason subsidy last the at for the the the and

supply pillar say, if to the industry having Actually, in importance that, attached you this government According auto I want great consumption pillars at China say put to satisfying meeting, economy. it been still the January to the has the push and consumption the standing the we consumers, of demand forward to as said need try state following reasons. so, Well, also industry, look it to to of due to about that the XXXX, the boost optimistic I I'm one a address all conflict the said about was and council industry. the and XXXX. committee the Why

all marketing kinds implemented need and also we a retail for -- the expenditure business to consumption. to business, recover. consumption to the need and And to also the of the lot implement, of policies And to be boost boost retail to we consumption auto also and boost try

of to January [ph], noteworthy council. standing been the the policies So released committee state the has due

been [Foreign Language] NEV temporarily. But want of government the away And – lot boost prudential the level say although local the a also, has the national to the faded subsidy I new to consumption. level, government at initiatives launched

For continued of for the has example, the province, effectively more dig cities cars. trade-in In to the province also boost in Shanghai trade-in and the on Hunan subsidy subsidy NEV they the encourage potential to boost some consumption. Shaanxi into the and to

also gradually think we recover. car new show launched COVID of believe zero auto the the the and the up, with lot And will abandon of that And models also to opening market. policy being a

believe auto market, we consumption pushed the way, this be would in forward. So

sales structure do been market the auto NEV And see in way. increasing if continuous a also, the the look has you sales that, at we

even lot of be the are NEV market-driven faded polices boost into policy-driven the We if transforming NEV has national but a to consumption. example, For market subsidy a new their there away, believe would market.

XX%. In year-round term, be for NEV NEV players way, run, there the to spend divergence there the continue out in the around We and believe would the are would believe may more in growth top sales. on to benefit the the short or do slowdown help the players believe be The long that, some such more divergence of of But this near-term market. branding. that would we we top maybe

market car, can believe take XXXX the car the the policies. growth market the the new will transformation be the into used market. We model. be used to year transaction believe to this be also overall driven, car used agent-based full And transforming first corporate used that the car experience model the XXXX to would the implementation letting from would business. Also, car We of the to the I We on comment dealership-based X%. want personal used believe opportunity market of

to we also and this more a further make in consumption used with We of the Overall, believe is we to demand. try car of the trying the operation supporting development the speaking would All scalability and business market. car used vitalize policies, believe all implementation and the encourage the the would government way. the healthy boost of standardized the the compliance consumption needs this believe boost

confident quite XXXX domestic So auto market. that's why I'm the about

cash, Yan invite of Zeng question. the to talking take I Now to about the this allocation would like Mr.

Craig Yan Zeng

for you cash. Talking thank the the Well, question. about

also We been interest. flow have reserve cash importance attach abundant shareholders' and our cash great the has very healthy. And we to

net last the actually we cash compared will of the of the have BOD We we ratio -- RMB According initiative. share X.X billion payout improved And extend this the last XX% already buyback meeting this with quarter, year. the quarter, in year. about last inflow dividend our to

So it would the to actually and payout the RMB future. XXX grow in dividend be million will continue

the we shareholders. is that to So give to trying back our way are actually

new of have lot the a initiatives. about we side, talking Now business

investments the to new to product. thriving. streaming are product and video-based, the our been more new based, global AR-based into opportunities the some deals business we And make have We into other looking according presence. our has the live explore data the metaverse-based and business, also the M&A And content,

thank you question. So the for

Operator

Thank you.

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

Ritchie Sun

questions. taking have translate myself. I will Language] you for two questions. I my Thank management [Foreign

our of will to business? for for our expect? would long-term for used margin launches focus? we year about net how data XXXX this what what in think KPI is and adjusted we be be all, of of KPI? new the Thank And car you. First products And all the this types what business Second can should going

Quan Long

digitalized help or trying product about the matter efficiency. to the talking our and enhance is the to Now major OEMs clients purpose our lower Language] dealers. the for cost [Foreign No it's

trying the improve wanted So and would the we And new and modules. we customers our launch to continuously lot are hand, the trying new clients to to empower more to these on are of we a help enhance other them with of we models. also coverage efficiency to

autos with about have the are used innovative initiatives. some new talking We of the of car business. we of a business, [indiscernible] the Now Language] working lot and [Foreign all direction future the

our trying talking Talking transaction is used Now service the about purpose the and one-stop business, to Language] car major full establish [Foreign chain platform. used about a car focus.

to be products. data SaaS trying in point service loop the transactions. a And car launch used will are transaction. market. the full for the and closed car believe business we going create used for the the to Firstly, it chain -- would all of some the this car other We are also Actually we pain cover used

way finalized side, the XC achieved the [Foreign XB Language] resources operating. and management better a our on good XXXX, a also the had this which Autohome on of In the side also enhanced only coordination have in breakthrough. And we but not

example, the business the car launched history work car used trading the condition of a with and to data the data SaaS innovative product. auto we we lot a car solution BIT In For And SaaS our target. the on build different service. Autohome and purchasing trying a also products and one-stop services. and is is strategic That future, solution sales plus for one-stop for

business it talking the used [Foreign as Autohome a you We for about car achieved know is used under for Now profitable the car business Language] market. whole the exploration business. model

on breakeven For the later last year. TPP, it half the achieved a of

The in be our would So build used to we dealership margin similar way, our to car this are business. business. trying

Operator

you. Thank

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

Brian Gong

I on myself. solid my Good Congratulations results. two evening taking I will the questions. translate for question. management. have Thanks

how growth year-on-year And for secondly growth mentioned GDP. some to is industry we policy expect XXXX. an used auto towards just we With the to mentioned expect you out just management this year. We be that favorable [indiscernible] year? rolled First number, that this expect X% have should regarding this industry car

management can of expecting more are Thank kind ahead? give you. specific So, we what policies

Craig Yan Zeng

the Well, because communication. used it car, car need thank the business, you COVID the transaction about affected for a the question. pandemic, the lot of used face-to-face offline Talking of

car X%. that's in XXXX, in markets actually used domestic the business So dropped experienced why

used even good news believe reopening is market some the that, achieve be achievable better pandemic, will We the Autohome's and And to X%. this growth experience the growth X%. the can which it According now, supportive said and than society year. more is the beyond good market that So with market. this more up hope the X% of we post would growth with released very will be policies car report, and

to auto already different according out the we Auto believe is to that Well, housing of estate. the would families. is market because as or market consumption introduced it's for housing, Long had policies. policy, is a amount large Mr. individuals for real It benefit the non-movable, the you, auto from

So The good. why, released there that will we to can that's further market. support market believe new in be be the policies March, quite

There were three mention. factors, I want to

new be would of we thirdly, was believe the strategic the to secondly, have car, one that market. grow. first focus to the the The it is, for NEV And sales trying a continues the stabilize And of used policy cars. to of potential the lot

the markets, the accounts XX% new or of used in even sales, with mature double sales. some If car transaction the the it comparing times for triple, only car. of you of the look of at X the car car the was car's used volume breakdown new But

the used potential. car lot a way, of this believe has we in market So

Operator

the conference the Thank management you. team comments. closing for your I'll to Thank back you questions. all for turn

Quan Long

conference time. questions appreciate you, Thank you for comments. to Thank next you. have today. much free you We and quarter updating much. support to Thank in you, joining if Thank a the look us, very our forward contact any please or further months' everyone. call And few you on Bye. in us meantime, very your

Operator

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

disconnect. now may You

Autohome (ATHM) 16 Feb 232022 Q4 Earnings call transcript