Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, thank you for standing by for Autohome's Second Quarter and Interim 2023 Earnings Conference Call. At this time, all participants are in 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 morning, call. Operator. and you, Good interim second to XXXX quarter Autohome's earnings conference everyone, and welcome

release Earlier distributed copy the website today, company's may www.autohome.com.cn. its press on Autohome at find and earnings a you

your Mr. our available Mr. On Zeng. Craig we Officer, After and management the be and questions. the Chief Chairman call, Long; answer Chief remarks, team Yan to will today's Executive prepared have Quan Financial Officer,

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

filings uncertainties U.S. risks public outlined results undertake forward-looking statements materially stock expectations. applicable from required our Commission subject to exchange may and Autohome and not obligation under that Hong current Exchange to but statements, to limited and to the include, Forward-looking and in doesn't are those Kong differ update any actual Limited. as cause any our the of are Securities except with risks law. uncertainties Potential

Autohome's reconciliation that measures the financial to earnings is and measures. IR most press comparable Autohome's refer website. release contains conference call and note non-GAAP includes unaudited discussions Please also Please our which GAAP measures release, non-GAAP of this the of a certain press directly to available on

is call this recorded. reminder, being a conference As

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

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

Quan Long

Language] [Foreign

Thank Chairman you I'm Quan earnings Autohome. Hello, today of conference Thank everyone. our you, Sterling. is CEO call. Long. This for joining and

Language] [Foreign

continues X.X% year-over-year steadily double-digit also our in and compared both growth from to in others the becoming improved. operational to TTP same recover revenue only revenue financial growth. to XX.X% year-over-year its fourth primary expand revenue of last and top-line revenues, has revenue the revenues positive second delivered results our marking marketplace our data the NEV with quarter, our strong Notably, the of experienced of not Online brands quarters as profitability consecutive significantly growth and growth scale, period driver increase robust products but maintained growth. and risen, In total momentum, continue year has a

income net Autohome quarter of attributable was a competitively by margin X.X second at our to year-over-year, up adjusted Adjusted and XX.X% the for of points an remained year-over-year. level percentage high increase XX.X% net

Language] [Foreign

channels. we steady our quarter, actively second the expanding content strategies the across optimization traffic During through C-end progress multiple and while our making business diversification, advance

tools, high to Our users with enhancing and users. goal is content, thus quality Autohome's provide recognition practical exceptional brand services, among

we Autohome franchise May, unveiled our marking this store the retail franchise in beginning Space model Energy across In of country. the first Haikou new

the scenarios promoted digital and efficiency. also in We and of processes, customer technology partners reconfiguration AI the all and of application upgrades reduce business costs increase our the enabling accelerated to

addition, efficient In large language providing has with services. application Baidu in both end, in cohorts both product results and model user yielded remarkable our more customer collaboration with

Language] [Foreign

the of the develop; innovation and Looking use will to taken drive of chance eventually and Autohome advantage ahead, digital business to productivity, new innovative into transformation the this continues industry. technology aspects technology all industrial existing as technologies to introduce technology change. of models, penetrate has transform automotive

our long-term seize well-positioned brand comprehensive growing We diversified ultimately opportunities as is break growth. business technology and grounds, to and innovation are advantages with our Autohome cutting-edge achieve incubation confident rising of system, that new accumulation as well

[Foreign Language]

over Ms. call our to I now CFO, at results. and Zeng, financial closer turn the for Craig second quarter will look our With that, operating

Craig Yan Zeng

Language] [Foreign

Autohome. I'm Long. Zeng, of everyone. Craig you, Thank Mr. Thank you, CFO

Language] [Foreign

NEV meet artificial ecosystem introducing technologies models average actually themes intelligence. develop content of to the on two enrich and capitalize trends business quarter, continue and In we business and major to also our and while enhance customers. industry to our offering, the to content and the as needs our NEV evolving users new second content We activities innovation further of

Language] [Foreign

consumption the major XX Future Super NEV the of test first industry create we Technology City event, the exhibition On for more truck NEV featuring We debuted The a these enabling Visio Festival, experience policy received a August into in drive their government's of display, the and the exposure over a areas. brands started mobile following NEV rural event to front, with music hosted support entire and IT, positive network. Auto comprehensive XD China's billion owners information exciting large-scale NEVs with consumers At lower-tier across mid-June, combined the to users. on and an reach markets, holographic the festival content in we total to in providing onsite in Show. cities expand any line $X in young feedback

Language] [Foreign

the This NEV needs. content, an actual we Furthermore, them more and creator the to NEV and diversifying acceleration account of the provide reviews help encouraging early with user's align better launched production plan and designed this our to creators of thereby the with draw content month, to our Autohome exposure to market opportunities, development NEV content is portfolio. content monetization plan the

a promote characteristics and media creating to content holistically to platforms, drive As tailored and of we traffic. brand is platforms strengthen Autohome's unique various also the helping we're premium expediting own ecosystem our the of that content, new build developments by

to our by vertical. According our the in QuestMobile, media reach in XX.X% mobile automotive year-over-year continued XX.XX leadership demonstrating June, million increased to DAUs

[Foreign Language]

new business in business the continues second to quarter, overall development. On Autohome’s lead front, business

[Foreign Language]

Energy Province, ideal year-over-year. Energy the Space launch car brands store a the grew First, support to the our cost XX% issue cars. the more vehicle solution mainstream an selection innovative than to to in building Space of service traction a approach provides with purchase, Autohome franchise Haikou, effective models. it their has second it quarter, modeling one-stop Space marks industry's find Automakers In and gaining NEV who for not been for volume, disruptive the also operation. Energy benefit sales from number from XX Hainan cost as of easier and comprehensive offers business. retail operative single of than recognition successful of increasing new model. now of and sales consumers brands our generated revenue brand this making The being able NEV XD ever a holographic store NEV by powers

automakers Furthermore, franchisees actively interest we express and are model. seeing more reaching and more to the which Autohome, in out this

in year, cities services additional expand. Space scale franchise will the the second of retail are to stores half As established various Autohome's the of new continue energy in

[Foreign Language]

decision to In terms of two digitalization, making products. develop leveraged GPT model the assistance we've

finding aggregate their preferences, on platform, and car users selection Our based car the assistance their Autohome ideal and information extract needs, budget. from helping

command Operation can for guide and store, operational the automatically a data, operation management dealer decisions. assistance Butler is digital analysis, the suggestions management on generate make dealer in to and that integrate

data such the products In key adopted revenue average more the store addition, number quarter. with than the data our of our to and in dealer using in grew existing each data store double-digit year of Moreover, months as second year, -- by adoption have compared the XX,XXX products six dealers products the metrics by products both prior a data steady per period. the XX,XXX average seen increase in first dealer of

and the graphs language fundamental models, Going usefulness. actual improve large forward, and business we'll across to continue capabilities, knowledge apply products to our scenarios two quality data

[Foreign Language]

used half all accounted of the in dealers transactions car year, TTP for including of second used of representing revenue car growth matching first Through China, in experienced while Autohome's growth its increase quarter. our the business significant quarter services, Autohome's about saw profitability. car of used terms the revenue year-over-year XX.X% the percentage and In platform accelerated business, second the TTP’s also points. maintaining and X.X auction in a

who our with an easy cultivating their new cars providing services the old for way with while business integrated extended business other Furthermore, car car exploring car have retail testing to dispose used with more to connection creating new collaborations. direct stores stores, cars. and We consumers we opportunities new and used purchase owners of

[Foreign Language]

across in core new key development progress Autohome's further significant remained in makes areas. models strengthening and stable our strong This new Overall, businesses. growth our position leading the business of products with

continue to forward, value users customers, two on and while plans NEV our constantly to long-term bring move delivering definitely innovating the to major focus we our As artificial shareholders. superior and intelligence, services and to we'll industry's namely product

Language] [Foreign

walk RMB only reference key XXXX. financials of the note quarter the I otherwise through today my calls let Please you second discussion will for prior in unless And that me as with stated.

[Foreign Language]

RMBX.XX Net up revenues for X.X% second billion, year-over-year. quarter the were

And For marketplace online million. to services primarily a revenues greater million. were others products. data and in XX.X% from detailed and at came breakdown, were year-over-year, media services RMBXXX TTP up revenues RMBXXX million, Leads attributable contributions RMBXXX revenue generation

Language] [Foreign

a million million rise in of on in revenues Moving was to primarily attributable operational was cost. to The the Cost compared costs. XXXX. increase QX RMBXXX RMBXXX second in to quarter

XX.X% Gross in compared was margin quarter XXXX. XX% second to QX the in

Language] [Foreign

operating decrease RMBXXX decline million expenses. in XXXX. in in to compared and million to to the expenses. marketing to primarily XXXX. in second spending. Sales escalation attributable were compared quarter Product was RMBXXX promotional was market QX expenses and the The primarily RMBXXX increase and expenses development RMBXXX to in million, Turning million, were attributable QX The personnel-related

RMBXXX million decrease QX million, last losses. and expected of was general administrative in The year. were the attributable compared credit reduction Finally, expenses RMBXX primarily to to

[Foreign Language]

second Inc. Adjusted quarter, of Overall, to RMBXXX second corresponding net XX.X% the was corresponding we the of to in year-over-year. RMBXXX profits million in operating million to compared quarter, attributable XXXX. RMBXXX XXXX, in in compared increase of RMBXXX an million Autohome, representing the period the delivered period of million income

Language] [Foreign

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

[Foreign Language]

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

Language] [Foreign

up authorized XXXX, Autohome to XXXX, XX for X, Board of an we million expiring not program share repurchase On Directors November months share a are extension November which for XX, On XX, on November Board program the permitted authorized a to XXXX. repurchase of of months our Directors US$XXX thereafter. XX purchase period another our ADS exceed to of under

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

Language] [Foreign

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

Operator

Instructions]. you. Thank [Operator

CICC. Xiaodan. comes of first Xiaodan ahead the Our go question Zhang line from from Please

Xiaodan Zhang

Language] [Foreign

results. thanks my on and management congrats taking solid questions So the for

And first and going outlook what onwards? So of please all, is Thank model retail XXXX? of the in any the these update for new for is half you you. of plan the could us expansion market on second what your the domestic auto

Quan Long

[Foreign Language]

for I would the Thank to you is question. your Long. Quan take name My like question.

summary of market. a give me what's happening let in firstly, So the

can you do the auto second people outlook from the As year, is quite that started promising. for expected. see, to second half market as of the recover has quarter, we starting the And the believe

Language] [Foreign

on elaborate due of firstly, the base because the further last that, To impact to year COVID-XX, was quite low. the

QX, there easing Secondly, get were gradually to into while QX, with all this in that and consumers watching cash price from starting the war, stopped started price also we And wars. the knew holding of market.

the with year, believe auto promising. the half So for and help of the also a would stimulate quite National the the And the stimulus favorable the push especially introduced outlook policies transitional that's gradually forward. XB And would to that we of better policy central policy gradually going markets this stable. was to the why be recently, lot was of market government All market. launched and this second pricing

Language] [Foreign

we that Well, areas. there opportunities in structure this this especially in two are believe market,

be would first The NEV.

used be the car. would Second

the be based of talk the rate of According the market. example the first about of Association's of passenger Passengers lot on policy let's for a campaigns, car the boosting would data reached consumption China NEV June, focus the Car penetration to of The the improve for still end sales in the launched latest XX.X% one. the Now NEV the for and till the of local to market. models and the of the new the the and continue get this a rate also high. NEVs of would year, transaction lot would continue lot to volume We central penetration multi-sites NEV of go government to car a and the believe marketing activities

notice MIIT launched on other And the ministries NEV fourth the Minister also Tax on actually Finance, XX, XXXX together they the June XX, June campaign. on policy and extension tax departments, MIIT to And purchase Automobiles car. on and with the Bureau, of Countryside the a five of co-launched

believe we to be So helpful of would consumption boost this the very its NEV.

[Foreign Language]

used for very lot the with reached data, a June, the a would would months, intrinsic this in also purchasing of boost growth. NEV more two year-on-year the and to second We the month-on-month have the we to NEV cars for the car. would used development the independent and drivers group, Now the the become believe Chinese further transaction registration auto the be being volume And also development important believe dealers low-cost consecutive According for May, used potential with used And launching system lot choices part this business. a grow for and NEVs of will car. and for car, of car more car with consumers, they the market.

[Foreign Language]

the public's of the general Chinese domestic consumption and to would Bureau Communist to stimulus household consumption of that Political revenues And consumption demand. also push try economy to especially income -- the the and also after the this the expand the and fundamental the enlarge Party the boost the boost Central the and of week, meeting function to to consumption, forward growth, showed to Government

the dependent et the large together they would furniture, they consumption the to appliances. consumption home leverage also And stimulates auto side cetera, for on reform consumption, this supply electronic consumption, domestic way would also of and in boosting the strategy with especially

way, car people's would would NEV auto Chinese confident and try bring consumers the So We and and would opportunities gradually the the awareness the new enrich for market released lot innovation the of are -- growth. technology and with to a also improve always that breakthrough potential we business. used stable the would long-term in be this the very believe demand and that

of summary, would I long-term, huge see NEV the in long and growth a potential cycle, a the for market. So

Craig Yan Zeng

Language] [Foreign

they're operating Energy My the great and our from this to retail in was think model. second was and of and store promoted offline would like I in has Autohome Space Actually was the the launched name been and efforts and September dealers, a all is question. store Zeng Shanghai. Yan. and take business first channel lot the the highly and customers of XXXX, consumers good NEV This quite starting of successfully innovation, the business the

model, of of And in purchasing the new services, franchise order, in franchise the Energy we such of activities. projects, modeling, this and Space retail Autohome test the first the including business June we store. the drive terms started year, holographic of Haikou also offline the have in lot City, pilot the Actually, reports, store lead a

XX started the work holographic For example, to already OEMs. modeling, we than with more mainstream

to and on So franchising market out help its are start the for different channels. we're and to stores get OEMs; we nationwide. volume, them one-stop the potential solution characteristics different very different market and going we to and the cities based of the soon NEV trying for will reach consumers the to build to to offset rollout And the their consumers

for proactively franchisees contracting We're lot of So currently, we still partners. with are to and going seek a the opportunities. more

establish XX cities. the to and end tier Before those XX XXXX, we're stores, newly going to middle offline in lower especially of

would I latest are you. the progress. Thank you future, updated the in think keep what I on

Operator

you. Thank

Ritchie. next from line go HSBC. Ritchie Sun comes from ahead, Please of the Our question

Ritchie Sun

[Foreign Language]

myself. taking translate management my I'll it for you questions. Thank

that explain So the that have Thank drivers strong DAU consumption I we should power growth. Can the we of please these and a interpret behind very users and modern how taxation you. potential? noticed you

Quan Long

[Foreign Language]

for question. thank the Well, you

yes, In user following terms the the of user wonderful we growth on based reasons. growth, achieved the

fun users. content to and high professional Firstly, Autohome the launched quality, attract the

this in-depth in way, way the also we user attract can different users' study We of to behavior. targeted content made the demands. In create

to NEV the experience through Festival synergy, NEV we're our dedicated NEV create are For and to a tier truck going we're car for launch lot to going lot allow featuring also a we users orders And way, large exhibition the in wonderful In host holographic Technology users mobile City example, lower going scale first Future the NEV multiple display. we and [ph] to cities the June, would to of this consumers. a of brands. experience

in famous with going would also Auto this work attract a OEMs to Xth wonderful NEV of industry. content, are Global Auto and the CCTV In be the enrich campaign. to way, we have example, IP few media For to coverage, weeks a this are the more users and launched Autohome would together going the Through host the very large help to later a to bring experiences. to we brands be Show. This by a more lot Show XXX

Language] [Foreign

In terms in we of differentiated to ecosystem the new create channels, the also a established new better content. media the and

the the informed content For of one we traffic. to of matrix have example, attract already a

QX, the in do more we see Lastly new towards a contributes that media traffic. lot

[Foreign Language]

past, are the of we terms auto In related. in auto-related consumption more or the content,

also extension made life the to and we services. auto the Now

We ecosystem car. using are trying the by a car to build centered

ever of newly year in users. rates example, also launched the lifestyle favorable our this well us the fueling we users. as since way, the car grow APP helped In our car as and the this special For Autohome on carwash it to

[Foreign Language]

terms we auto would transaction In NEV, auto this be in of the volume major driver the the -- market. the the for believe

customers new of a For content, of we the on this based lot group have initiatives.

-- example, car the diversified. are NEV users they lot the a as with to smart with the consumers on based life, outer of the the as the car found cetera. outlook combustion that For development Comparing we and NEV, more battery mileage, traditional and car of pay demand, intelligent their needs more cabinet and our content purchasing driving well cabinet, the the out attention intended et users, car

user give the establish started endurance the So and a Beijing to index our it's to collaborate of life to BITNEI lot fundamentals. to data based users. real-time indicators on data, Autohome the battery on with Corp. these especially

[Foreign Language]

launched also to the driving Secondly, consider. users the assessment in for testing assessment data the real-time the we especially and system, NEV intelligently

In features, the combining highlights the NEV launched lot a function, core also of this data. would the interactive real-time the way, highlights, attract We and car the models users.

Operator

you. Thank

question line from next Chong from of Our Please Jefferies. Thomas. ahead, comes Thomas the go

Thomas Chong

Language] [Foreign

my Thanks I management for have taking questions. questions. two

used about strategies The TTP. market -- first the and about the for is question car first

The management in second cash, share coming you. question is about of of Thank years. can the cash the about our use use

Quan Long

[Foreign Language]

the for you grew China cars, to expected sales thank the year, grow car the to second used Well, yield estimation, the domestic the used cars in XX.X%. used Association's According by of around see be Talking the volume about question. XX%. would quarter Auto do this by we

in potential we market. the So grow car great is to volume for used believe there the

Language] [Foreign

models can mentioned the just the other quarter, we this the accelerated and TTP, year's one average. TTP's rapidly, also drivers business growth. We It had August As profitable first new used for of car second with in growth. second quarter Autohome, we its for Autohome's Autohome half the that grow about believe keep the a in has From of together actually TTP been enhanced the the first the XXXX, The become revenue the good which the business outpaced XXXX, the industry business half and we car this profitability TTP of of of profitability. used in year. become greatly

Language] [Foreign

selling car, trading for and of the cost time the car and to high, on would model, In users, new car pain points of retail we solve already new the are used process the the and retail associated the the car The the car simplify business. stores to transparency the especially helping terms cetera. to especially used handle a business et car, with of purchasing we of car selection used the used purchasers new the

BITNEI and the NEV business experience and the Corp., consolidated leveraged trying resources, stores. with synergy. also we the on to and also associate the we're Ping An offline After TTP We Beijing more also create resources all Group,

Language] [Foreign

enlarge buying selling plus leveraging ecosystem one-stop the we the solution SaaS in consolidated a car to and car, summary, the especially car future, will a a keep establish In one-stop on for for competency solution used opportunity model. used want and and the going in business our and And keeping the position. the to car we're also we used of car industry to leading quicken seize business growth

Language] [Foreign

of we reservoir According dividend starting XXXX in approved with we already in dividend -- the XXXX XXXX, abundant established that question. the to the year, RMBXXX in of of answer corporate no payout let this five payout your the me designed than the by would firm, the the less they Now, enhanced percentage every year, first already payout dividends and second Actually dividend plan XXXX by cash payout quarter have RMBXXX years, BOD, give million. ratio points. billion next X comparing from we

interest. return. would importance continue great So return to the plans, also We back shareholders we shareholders to a in sustainable we We would attach enhance can to shareholders' which consider way. other the

Language] [Foreign

Now US$XXX plan. out in share out this continue repurchase buyback continue already plan plan. we million market million this terms share will of the buyback already buyback We carry future, the in to carry share and repurchase made US$XXX in the to we

Language] [Foreign

other And Thank meanwhile, trying to you. highly we and investments shareholders businesses, to also attention pay other return. would in create we're

Operator

you. Thank

Gong Our next ahead, the go of from question comes Brian. Citi. line from Please Brian

Brian Gong

[Foreign Language]

the management How for do taking Thank on products we products expect side, question. On solid recover? Congratulations My my Thanks is data amount our many when now? are each And data product OEM products. you. regarding results. what to question we for to data on dealers for penetration have dealers?

Quan Long

Language] [Foreign

which lean achieve you about of to put customers. in its the quite and and for paid Talking mature which quarter, the way, the hall, the before dealers products, sales core than the the the have helping the help We we're dealers. assistance, and paying get information intelligent their and value the and smart telemarketing the the front XX,XXX help services, areas. the than is quality to this intelligent to actually the the many In after operating rate Cloud competency customers. to question. them better we of [ph] including we XX business, and in more this we dealer improve Smart try guiding smart and process second the conversion management to dealers inspection more them Cloud way, had smart serve marketplace, and into Thank into help whole and to Smart covers dealers the In to enhance the and end-to-end

Language] [Foreign

have high feedback wonderful dealers also have for product lot And ARPU products. of all been we rate from many the penetration we received our enhanced. a and And

launched decision assistance addition that, on In model, new had tools. GPT to we based the the

the example, help Operation For which models, can operating enhance and process and efficiency Car making and Selection dealers its enhance to and the Butler management. decision Assistant

[Foreign Language]

the exhibition new OEMs, our about online and do replace talking post-COVID, the its change we demand that to also to for to helped has Now meet COVID, our changed. would during better models online lot a now model of them their service accordingly demand. with campaigns We

Operator

you. Thank Right.

We question-and-answer the have session. you Thank for back now end conference of the your all the reached to questions. closing I'll turn comments. now for management

Quan Long

Language]. [Foreign

and meantime, every Thank joining everyone. you for in updating contact the to -- you thank support Thank you Thank you. forward or please months' us our on us today. feel Thank quarter you, Goodbye. very questions everyone. conference have further any free your time, comments. you Appreciate call so if much look to next few

Operator

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

You may now disconnect.

Autohome (ATHM) 27 Jul 232023 Q2 Earnings call transcript