Autohome, Inc. Q3 FY2024 earnings call

Online Front

• Leveraged new professional content and product mix to strengthen competitive advantages, with average mobile DAU increasing 5.6% year-over-year to 72.87 million in September.

Offline Offering

• Focused on low-tier markets with initiatives like Hundred Cities, Trade-in for New, organizing over 500 offline auto shows. New retail business robust, with over 50 Autohome-based and satellite stores across China.

Digitalization

• Leveraged data, technology, and platforms to enhance digital products, expanded AI application across products. Collaboration with Ping An Group reached new heights with innovative products and services in various sectors.

Financials

• Net revenues RMB 1.77 billion; Online Marketplace and Others revenue up 3.1% y-o-y. Operating profit RMB 83 million; Adjusted net income RMB 497 million. Strong balance sheet with cash, etc., RMB 23.06 billion; net operating cash flow RMB 209 million in Q3.

Net revenues for the third quarter were RMB 1.77 billion. Media Services revenues were RMB 326 million. Leads generation services revenue were RMB 831 million. Online Marketplace and Others revenue were RMB 618 million, up 3.1% year-over-year. NEV brand revenues increased 54% compared to the same period last year. Revenue from data products increased by 8% year-over-year during the first 9 months of 2024.

Share Repurchase

• Board authorized repurchase of up to USD 200 million of ADS. ### Dividend
• Approved cash dividend of USD 1.15 per ADS or USD 0.2875 per ordinary share. ### Future Outlook
• Remain committed to optimizing operational efficiency for long-term high-quality development.

Market Dynamics

• Ongoing price war in the auto industry has affected profitability of automakers and dealers, which could impact Autohome's business. ### Uncertainties
• Potential risks outlined in public filings with SEC and HKEX that may cause actual results to differ from expectations.

Q: What are the impacts of the ongoing price war and trade-in program to the industry and Autohome?

A: Tao Wu mentioned price war has eased slightly but not ended, hurt automakers' profitability and dealers' operations; trade-in policies helped release consumption potential, and auto market is picking up.

Q: Update on NEV new retail model satellite plan progress and Autohome-Ping An synergies?

A: Autohome space and satellite stores over 50, covering mid to high and mid to low tier cities; synergies include co-hosting campaigns, joint auto shows, financial services, and used car business collaboration with Ping An.

Q: Management's view on 2025 used car market and shareholder return progress?

A: Used car market faces challenges due to new car price war, TTP to focus on B2B; Autohome has paid RMB 1 billion dividend, authorized USD 200 million share buyback, dedicated to enhancing shareholder returns.

Q: OEMs' outlook for Q4 and next year, and dealer contract renew progress?

A: OEMs cautious with advertising budgets, will balance budgeting; dealer contract renew for lead subscription package stable, Autohome to leverage tech and Ping An for better service.