Leju Reports First Quarter 2019 Results

Published

BEIJING, May 28, 2019 /PRNewswire/ -- Leju Holdings Limited ("Leju" or the "Company") (NYSE: LEJU), a leading online-to-offline ("O2O") real estate services provider in China, today announced its unaudited financial results for the fiscal quarter ended March 31, 2019.

First Quarter 2019 Financial Highlights

  • Total revenues increased by 35% year-on-year to $110.4 million.
    - Revenues from e-commerce services increased by 44% year-on-year to $76.8 million.
    - Revenues from online advertising services increased by 22% year-on-year to $33.2 million.
  • Loss from operations was $19.1 million, a decrease of 39% from $31.5 million for the same quarter of 2018.
  • Non-GAAP[1] loss from operations was $15.3 million, a decrease of 43% from $27.1 million for the same quarter of 2018.
  • Net loss attributable to Leju Holdings Limited shareholders was $13.5 million, or $0.10 loss per diluted American depositary share ("ADS"), a decrease of 35% from $20.9 million, or $0.15 loss per diluted ADS, for the same quarter of 2018.
  • Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $10.6 million, or $0.08 loss per diluted ADS, a decrease of 39% from $17.3 million, or $0.13 loss per diluted ADS, for the same quarter of 2018.

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release.

"We're pleased to announce that Leju delivered strong top line growth in our online advertising and e-commerce businesses in the first quarter," said Mr. Geoffrey He, Leju's Chief Executive Officer. "The substantial market recovery we have seen so far in 2019 has driven increased developer demand for marketing services. We further solidified our leading position in e-commerce business by increasing the number of our projects significantly in the first quarter, which is a result of our top-down approach strategy and quick response to market changes. Our 'New Media' strategy further enhanced Leju's media influence and laid a solid foundation for sustainable growth in our online advertising business. In addition, we continued to improve operational efficiency and streamline our cost structure following our return to profitability last year. Going forward, we will continue to focus on market expansion, product innovation, and organizational optimization, as we strive to improve profitability."

First Quarter 2019 Results

Total revenues were $110.4 million, an increase of 35% from $81.5 million for the same quarter of 2018, mainly due to an increase in revenues from e-commerce services and online advertising services.

Revenues from e-commerce services were $76.8 million, an increase of 44% from $53.5 million for the same quarter of 2018, primarily due to an increase in both the number of discount coupons redeemed and in the average price per discount coupon.

Revenues from online advertising services were $33.2 million, an increase of 22% from $27.1 million for the same quarter of 2018, primarily due to an increase in property developers' demand for online advertising.

Revenues from listing services were $0.4 million, a decrease of 56% from $0.9 million for the same quarter of 2018, primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenues was $23.5 million, an increase of 26% from $18.7 million for the same quarter of 2018, primarily due to increased cost of advertising resources purchased from media platforms.

Selling, general and administrative expenses were $106.0 million, an increase of 11% from $95.2 million for the same quarter of 2018, primarily due to increased marketing expenses related to the Company's e-commerce business.

Loss from operations was $19.1 million, a decrease of 39% from $31.5 million for the same quarter of 2018. Non-GAAP loss from operations was $15.3 million, a decrease of 43% from $27.1 million for the same quarter of 2018.

Net loss was $13.6 million, a decrease of 36% from $21.3 million for the same quarter of 2018. Non-GAAP net loss was $10.6 million, a decrease of 40% from $17.7 million for the same quarter of 2018.

Net loss attributable to Leju Holdings Limited shareholders was $13.5 million, or $0.10 loss per diluted ADS, a decrease of 35% from $20.9 million, or $0.15 loss per diluted ADS, for the same quarter of 2018. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $10.6 million, or $0.08 loss per diluted ADS, a decrease of 39% from $17.3 million, or $0.13 loss per diluted ADS, for the same quarter of 2018.

Cash Flow

As of March 31, 2019, the Company's cash and cash equivalents balance was $137.9 million.

First quarter 2019 net cash used in operating activities was $11.7 million, primarily comprised of non-GAAP net loss of $10.6 million and an increase in accounts receivable and contract assets of $10.3 million, partially offset by an increase in amounts due to related parties of $5.2 million, an increase in advance from customer of $2.5 million and a decrease in customer deposits of $1.4 million.

Business Outlook

The Company estimates that its total revenues for the second quarter of 2019 will be approximately $150 million to $160 million, which would represent an increase of approximately 22% to 30% from $122.7 million in the same quarter in 2018. This forecast reflects the Company's current and preliminary view, which is subject to change.

Conference Call Information

Leju's management will host an earnings conference call on May 28, 2019 at 7 a.m. U.S. Eastern Time (7 p.m. Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows:

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release. U.S./International: +1-845-675-0437
Hong Kong: +852-3018-6771
Mainland China:  400-620-8038

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "Leju earnings call".

A replay of the conference call may be accessed by phone at the following number until June 5, 2019:

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release. U.S./International: +1-845-675-0437 U.S./International: +1-855-452-5696
Hong Kong: +852-3018-6771 Hong Kong:     800-963-117
Mainland China:  400-620-8038 Mainland China:   400-632-2162
Passcode:       5549295

Additionally, a live and archived webcast will be available at http://ir.leju.com.

About Leju

Leju Holdings Limited ("Leju") (NYSE: LEJU) is a leading online-to-offline, or O2O, real estate services provider in China, offering real estate e-commerce, online advertising and online listing services. Leju's integrated online platform comprises various mobile applications along with local websites covering more than 370 cities, enhanced by complementary offline services to facilitate residential property transactions. In addition to the Company's own websites, Leju operates the real estate and home furnishing websites of SINA Corporation, and maintains a strategic partnership with Tencent Holdings Limited. For more information about Leju, please visit http://ir.leju.com.

Safe Harbor: Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Leju may also make written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Leju's beliefs and expectations, are forward-looking statements that involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements. Such factors include, but are not limited to, fluctuations in China's real estate market; the highly regulated nature of, and government measures affecting, the real estate and internet industries in China; Leju's ability to compete successfully against current and future competitors; its ability to continue to develop and expand its content, service offerings and features, and to develop or incorporate the technologies that support them; its limited operating history and lack of experience as a stand-alone public company, given its carve-out from E-House and prior reliance on E-House for various corporate services; its reliance on SINA and others with which it has developed, or may develop in the future, strategic partnerships; substantial revenue contribution from a limited number of real estate markets; complexities resulting from its ongoing relationships with E-House, due to E-House's status as a principal shareholder of Leju; and relevant government policies and regulations relating to the corporate structure, business and industry of Leju. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Leju's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.

Leju believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding its operating performance by excluding share-based compensation expense and amortization of intangible assets resulting from business acquisitions, which may not be indicative of Leju's operating performance. These non-GAAP financial measures also facilitate management's internal comparisons to Leju's historical performance and assist its financial and operational decision making. A limitation of using these non-GAAP financial measures is that share-based compensation expense and amortization of intangible assets resulting from business acquisitions may continue to exist in Leju's business for the foreseeable future. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables provide more details on the reconciliation between non-GAAP financial measures and their most comparable GAAP financial measures.

For investor and media inquiries please contact:

Ms. Christina Wu
Leju Holdings Limited
Phone: +86 (10) 5895-1062
E-mail: ir@leju.com

Philip Lisio
Foote Group
Phone: +86 135-0116-6560
E-mail: phil@thefootegroup.com

 

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release. U.S./International: +1-845-675-0437 U.S./International: +1-855-452-5696 LEJU HOLDINGS LIMITED
Hong Kong: +852-3018-6771 Hong Kong:     800-963-117 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Mainland China:  400-620-8038 Mainland China:   400-632-2162 (In thousands of U.S. dollars)
Passcode:       5549295
December 31, March 31,
2018 2019
ASSETS
Current assets
Cash and cash equivalents 147,263 137,899
Accounts receivable, net 102,697 111,654
Contract assets 2,137 733
Marketable securities 2,467 3,213
Prepaid expenses and other current assets 8,621 8,654
Customer deposits 10,672 9,262
Amounts due from related parties 6,695 5,257
Total current assets 280,552 276,672
Property and equipment, net 14,058 15,528
Intangible assets, net 57,401 54,221
Right-of-use assets[2] 35,894
Investment in affiliates 63 52
Deferred tax assets 62,356 63,557
Other non-current assets 2,297 1,246
Total assets 416,727 447,170
LIABILITIES AND EQUITY
Current liabilities
Accounts payable 803 2,138
Accrued payroll and welfare expenses 30,628 28,718
Income tax payable 58,030 54,656
Other tax payable 12,675 13,734
Amounts due to related parties 3,477 8,726
Advances from customers 26,873 29,386
Lease liabilities, current[2] 7,924
Accrued marketing and advertising expenses 14,896 14,053
Other current liabilities 12,999 12,897
Total current liabilities 160,381 172,232
Lease liabilities, non-current[2] 27,950
Deferred tax liabilities 14,780 15,065
Total liabilities 175,161 215,247
Shareholders' Equity
Ordinary shares ($0.001 par value): 1,000,000,000 shares   authorized, 135,763,962 and 135,763,962 shares issued and   outstanding, as of December 31, 2018 and March 31,2019,   respectively 136 136
Additional paid-in capital 792,626 793,202
Accumulated deficit (528,825) (542,316)
Accumulated other comprehensive loss (19,848) (16,481)
Total Leju Holdings Limited shareholders' equity 244,089 234,541
Non-controlling interests (2,523) (2,618)
Total equity 241,566 231,923
TOTAL LIABILITIES AND EQUITY 416,727 447,170
________________________________
[2] In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group adopted this ASU on January 1, 2019 using the modified retrospective approach and the financial statements for the comparative period has not been restated.

 

 

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release. U.S./International: +1-845-675-0437 U.S./International: +1-855-452-5696 LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED
Hong Kong: +852-3018-6771 Hong Kong:     800-963-117 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Mainland China:  400-620-8038 Mainland China:   400-632-2162 (In thousands of U.S. dollars) (In thousands of U.S. dollars, except share data and per share data)
Passcode:       5549295
December 31, March 31, Three months ended
2018 2019 March 31,
ASSETS 2018 2019
Current assets Revenues
Cash and cash equivalents 147,263 137,899 E-commerce 53,470 76,849
Accounts receivable, net 102,697 111,654 Online advertising 27,130 33,179
Contract assets 2,137 733 Listing 923 405
Marketable securities 2,467 3,213 Total revenues 81,523 110,433
Prepaid expenses and other current assets 8,621 8,654 Cost of revenues (18,675) (23,538)
Customer deposits 10,672 9,262 Selling, general and administrative expenses (95,178) (105,977)
Amounts due from related parties 6,695 5,257 Other operating income 830 22
Total current assets 280,552 276,672 Loss from operations (31,500) (19,060)
Property and equipment, net 14,058 15,528 Interest income 287 383
Intangible assets, net 57,401 54,221 Other income, net 2,837 597
Right-of-use assets[2] 35,894 Loss before taxes and loss from equity in affiliates (28,376) (18,080)
Investment in affiliates 63 52 Income tax benefit 7,117 4,539
Deferred tax assets 62,356 63,557 Loss before loss from equity in affiliates (21,259) (13,541)
Other non-current assets 2,297 1,246 Loss from equity in affiliates (19) (12)
Total assets 416,727 447,170 Net Loss (21,278) (13,553)
Less: net loss attributable to non-controlling interests (416) (62)
LIABILITIES AND EQUITY Loss attributable to Leju Holdings Limited shareholders (20,862) (13,491)
Current liabilities
Accounts payable 803 2,138 Loss per share:
Accrued payroll and welfare expenses 30,628 28,718 Basic/Diluted (0.15) (0.10)
Income tax payable 58,030 54,656 Shares used in computation of loss per share:
Other tax payable 12,675 13,734 Basic/Diluted 135,763,962 135,763,962
Amounts due to related parties 3,477 8,726
Advances from customers 26,873 29,386 The conversion of Renminbi ("RMB") amounts into reporting currency USD amounts is based on the rate of USD1
Lease liabilities, current[2] 7,924   = RMB6.7335 on March 31, 2019 and USD1 = RMB6.7977 for the three months ended March 31, 2019
Accrued marketing and advertising expenses 14,896 14,053
Other current liabilities 12,999 12,897
Total current liabilities 160,381 172,232
Lease liabilities, non-current[2] 27,950
Deferred tax liabilities 14,780 15,065
Total liabilities 175,161 215,247
Shareholders' Equity
Ordinary shares ($0.001 par value): 1,000,000,000 shares   authorized, 135,763,962 and 135,763,962 shares issued and   outstanding, as of December 31, 2018 and March 31,2019,   respectively 136 136
Additional paid-in capital 792,626 793,202
Accumulated deficit (528,825) (542,316)
Accumulated other comprehensive loss (19,848) (16,481)
Total Leju Holdings Limited shareholders' equity 244,089 234,541
Non-controlling interests (2,523) (2,618)
Total equity 241,566 231,923
TOTAL LIABILITIES AND EQUITY 416,727 447,170
________________________________
[2] In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group adopted this ASU on January 1, 2019 using the modified retrospective approach and the financial statements for the comparative period has not been restated.

 

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release. U.S./International: +1-845-675-0437 U.S./International: +1-855-452-5696 LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED
Hong Kong: +852-3018-6771 Hong Kong:     800-963-117 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
Mainland China:  400-620-8038 Mainland China:   400-632-2162 (In thousands of U.S. dollars) (In thousands of U.S. dollars, except share data and per share data) (In thousands of U.S. dollars)
Passcode:       5549295
December 31, March 31, Three months ended Three months ended
2018 2019 March 31, March 31,
ASSETS 2018 2019 2018 2019
Current assets Revenues
Cash and cash equivalents 147,263 137,899 E-commerce 53,470 76,849 Net loss (21,278) (13,553)
Accounts receivable, net 102,697 111,654 Online advertising 27,130 33,179 Other comprehensive income, net of tax of nil
Contract assets 2,137 733 Listing 923 405 Foreign currency translation adjustment 2,209 3,334
Marketable securities 2,467 3,213 Total revenues 81,523 110,433
Prepaid expenses and other current assets 8,621 8,654 Cost of revenues (18,675) (23,538) Comprehensive loss (19,069) (10,219)
Customer deposits 10,672 9,262 Selling, general and administrative expenses (95,178) (105,977)
Amounts due from related parties 6,695 5,257 Other operating income 830 22 Less: Comprehensive loss attributable to non-controlling interest (518) (95)
Total current assets 280,552 276,672 Loss from operations (31,500) (19,060)
Property and equipment, net 14,058 15,528 Interest income 287 383 Comprehensive loss attributable to Leju Holdings Limited  (18,551) (10,124)
Intangible assets, net 57,401 54,221 Other income, net 2,837 597    shareholders
Right-of-use assets[2] 35,894 Loss before taxes and loss from equity in affiliates (28,376) (18,080)
Investment in affiliates 63 52 Income tax benefit 7,117 4,539
Deferred tax assets 62,356 63,557 Loss before loss from equity in affiliates (21,259) (13,541)
Other non-current assets 2,297 1,246 Loss from equity in affiliates (19) (12)
Total assets 416,727 447,170 Net Loss (21,278) (13,553)
Less: net loss attributable to non-controlling interests (416) (62)
LIABILITIES AND EQUITY Loss attributable to Leju Holdings Limited shareholders (20,862) (13,491)
Current liabilities
Accounts payable 803 2,138 Loss per share:
Accrued payroll and welfare expenses 30,628 28,718 Basic/Diluted (0.15) (0.10)
Income tax payable 58,030 54,656 Shares used in computation of loss per share:
Other tax payable 12,675 13,734 Basic/Diluted 135,763,962 135,763,962
Amounts due to related parties 3,477 8,726
Advances from customers 26,873 29,386 The conversion of Renminbi ("RMB") amounts into reporting currency USD amounts is based on the rate of USD1
Lease liabilities, current[2] 7,924   = RMB6.7335 on March 31, 2019 and USD1 = RMB6.7977 for the three months ended March 31, 2019
Accrued marketing and advertising expenses 14,896 14,053
Other current liabilities 12,999 12,897
Total current liabilities 160,381 172,232
Lease liabilities, non-current[2] 27,950
Deferred tax liabilities 14,780 15,065
Total liabilities 175,161 215,247
Shareholders' Equity
Ordinary shares ($0.001 par value): 1,000,000,000 shares   authorized, 135,763,962 and 135,763,962 shares issued and   outstanding, as of December 31, 2018 and March 31,2019,   respectively 136 136
Additional paid-in capital 792,626 793,202
Accumulated deficit (528,825) (542,316)
Accumulated other comprehensive loss (19,848) (16,481)
Total Leju Holdings Limited shareholders' equity 244,089 234,541
Non-controlling interests (2,523) (2,618)
Total equity 241,566 231,923
TOTAL LIABILITIES AND EQUITY 416,727 447,170
________________________________
[2] In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group adopted this ASU on January 1, 2019 using the modified retrospective approach and the financial statements for the comparative period has not been restated.

 

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release. U.S./International: +1-845-675-0437 U.S./International: +1-855-452-5696 LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED
Hong Kong: +852-3018-6771 Hong Kong:     800-963-117 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS Unaudited Reconciliation of GAAP and Non-GAAP Results
Mainland China:  400-620-8038 Mainland China:   400-632-2162 (In thousands of U.S. dollars) (In thousands of U.S. dollars, except share data and per share data) (In thousands of U.S. dollars) (In thousands of U.S. dollars, except share data and per ADS data)
Passcode:       5549295
December 31, March 31, Three months ended Three months ended Three months ended
2018 2019 March 31, March 31, March 31,
ASSETS 2018 2019 2018 2019 2018 2019
Current assets Revenues
Cash and cash equivalents 147,263 137,899 E-commerce 53,470 76,849 Net loss (21,278) (13,553) GAAP loss from operations  (31,500) (19,060)
Accounts receivable, net 102,697 111,654 Online advertising 27,130 33,179 Other comprehensive income, net of tax of nil Share-based compensation expense 979 575
Contract assets 2,137 733 Listing 923 405 Foreign currency translation adjustment 2,209 3,334 Amortization of intangible assets resulting from business      acquisitions 3,450 3,153
Marketable securities 2,467 3,213 Total revenues 81,523 110,433 Non-GAAP loss from operations (27,071) (15,332)
Prepaid expenses and other current assets 8,621 8,654 Cost of revenues (18,675) (23,538) Comprehensive loss (19,069) (10,219)
Customer deposits 10,672 9,262 Selling, general and administrative expenses (95,178) (105,977) GAAP net loss (21,278) (13,553)
Amounts due from related parties 6,695 5,257 Other operating income 830 22 Less: Comprehensive loss attributable to non-controlling interest (518) (95) Share-based compensation expense 979 575
Total current assets 280,552 276,672 Loss from operations (31,500) (19,060) Amortization of intangible assets resulting from      business acquisitions 3,450 3,153
Property and equipment, net 14,058 15,528 Interest income 287 383 Comprehensive loss attributable to Leju Holdings Limited  (18,551) (10,124)
Intangible assets, net 57,401 54,221 Other income, net 2,837 597    shareholders Income tax benefit:
Right-of-use assets[2] 35,894 Loss before taxes and loss from equity in affiliates (28,376) (18,080)   Current
Investment in affiliates 63 52 Income tax benefit 7,117 4,539    Deferred[3] (817) (788)
Deferred tax assets 62,356 63,557 Loss before loss from equity in affiliates (21,259) (13,541) Non-GAAP net loss (17,666) (10,613)
Other non-current assets 2,297 1,246 Loss from equity in affiliates (19) (12)
Total assets 416,727 447,170 Net Loss (21,278) (13,553) Net loss attributable to Leju Holdings Limited shareholders (20,862) (13,491)
Less: net loss attributable to non-controlling interests (416) (62) Share-based compensation expense (net of non-controlling      interests) 971 575
LIABILITIES AND EQUITY Loss attributable to Leju Holdings Limited shareholders (20,862) (13,491) Amortization of intangible assets resulting from business      acquisitions (net of non-controlling interests) 3,450 3,153
Current liabilities Income tax benefit:
Accounts payable 803 2,138 Loss per share:    Current
Accrued payroll and welfare expenses 30,628 28,718 Basic/Diluted (0.15) (0.10)    Deferred (817) (788)
Income tax payable 58,030 54,656 Shares used in computation of loss per share: Non-GAAP net loss attributable to Leju Holdings Limited     shareholders (17,258) (10,551)
Other tax payable 12,675 13,734 Basic/Diluted 135,763,962 135,763,962
Amounts due to related parties 3,477 8,726 GAAP net loss per ADS — basic/diluted (0.15) (0.10)
Advances from customers 26,873 29,386 The conversion of Renminbi ("RMB") amounts into reporting currency USD amounts is based on the rate of USD1
Lease liabilities, current[2] 7,924   = RMB6.7335 on March 31, 2019 and USD1 = RMB6.7977 for the three months ended March 31, 2019 Non-GAAP net loss per ADS — basic/diluted (0.13) (0.08)
Accrued marketing and advertising expenses 14,896 14,053
Other current liabilities 12,999 12,897 Shares used in calculating basic/diluted GAAP/non-GAAP net     loss attributable to Leju Holdings Limited shareholders per     ADS 135,763,962 135,763,962
Total current liabilities 160,381 172,232 ________________________________
Lease liabilities, non-current[2] 27,950 [3] Amount represents the realization of deferred tax liabilities recognized for the temporary difference between the tax basis of intangible assets recognized from acquisitions and their reported amounts in the financial statements. The income tax impact on the share-based compensation expense is nil.
Deferred tax liabilities 14,780 15,065
Total liabilities 175,161 215,247
Shareholders' Equity
Ordinary shares ($0.001 par value): 1,000,000,000 shares   authorized, 135,763,962 and 135,763,962 shares issued and   outstanding, as of December 31, 2018 and March 31,2019,   respectively 136 136
Additional paid-in capital 792,626 793,202
Accumulated deficit (528,825) (542,316)
Accumulated other comprehensive loss (19,848) (16,481)
Total Leju Holdings Limited shareholders' equity 244,089 234,541
Non-controlling interests (2,523) (2,618)
Total equity 241,566 231,923
TOTAL LIABILITIES AND EQUITY 416,727 447,170
________________________________
[2] In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group adopted this ASU on January 1, 2019 using the modified retrospective approach and the financial statements for the comparative period has not been restated.

 

 

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release. U.S./International: +1-845-675-0437 U.S./International: +1-855-452-5696 LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED LEJU HOLDINGS LIMITED
Hong Kong: +852-3018-6771 Hong Kong:     800-963-117 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS Unaudited Reconciliation of GAAP and Non-GAAP Results SELECTED OPERATING DATA
Mainland China:  400-620-8038 Mainland China:   400-632-2162 (In thousands of U.S. dollars) (In thousands of U.S. dollars, except share data and per share data) (In thousands of U.S. dollars) (In thousands of U.S. dollars, except share data and per ADS data)
Passcode:       5549295 Three months ended
December 31, March 31, Three months ended Three months ended Three months ended March 31,
2018 2019 March 31, March 31, March 31, 2018 2019
ASSETS 2018 2019 2018 2019 2018 2019 Operating data for e-commerce services
Current assets Revenues Number of discount coupons issued to prospective purchasers      (number of transactions)   19,678   29,549
Cash and cash equivalents 147,263 137,899 E-commerce 53,470 76,849 Net loss (21,278) (13,553) GAAP loss from operations  (31,500) (19,060) Number of discount coupons redeemed (number of transactions) 13,799 19,559
Accounts receivable, net 102,697 111,654 Online advertising 27,130 33,179 Other comprehensive income, net of tax of nil Share-based compensation expense 979 575
Contract assets 2,137 733 Listing 923 405 Foreign currency translation adjustment 2,209 3,334 Amortization of intangible assets resulting from business      acquisitions 3,450 3,153
Marketable securities 2,467 3,213 Total revenues 81,523 110,433 Non-GAAP loss from operations (27,071) (15,332)
Prepaid expenses and other current assets 8,621 8,654 Cost of revenues (18,675) (23,538) Comprehensive loss (19,069) (10,219)
Customer deposits 10,672 9,262 Selling, general and administrative expenses (95,178) (105,977) GAAP net loss (21,278) (13,553)
Amounts due from related parties 6,695 5,257 Other operating income 830 22 Less: Comprehensive loss attributable to non-controlling interest (518) (95) Share-based compensation expense 979 575
Total current assets 280,552 276,672 Loss from operations (31,500) (19,060) Amortization of intangible assets resulting from      business acquisitions 3,450 3,153
Property and equipment, net 14,058 15,528 Interest income 287 383 Comprehensive loss attributable to Leju Holdings Limited  (18,551) (10,124)
Intangible assets, net 57,401 54,221 Other income, net 2,837 597    shareholders Income tax benefit:
Right-of-use assets[2] 35,894 Loss before taxes and loss from equity in affiliates (28,376) (18,080)   Current
Investment in affiliates 63 52 Income tax benefit 7,117 4,539    Deferred[3] (817) (788)
Deferred tax assets 62,356 63,557 Loss before loss from equity in affiliates (21,259) (13,541) Non-GAAP net loss (17,666) (10,613)
Other non-current assets 2,297 1,246 Loss from equity in affiliates (19) (12)
Total assets 416,727 447,170 Net Loss (21,278) (13,553) Net loss attributable to Leju Holdings Limited shareholders (20,862) (13,491)
Less: net loss attributable to non-controlling interests (416) (62) Share-based compensation expense (net of non-controlling      interests) 971 575
LIABILITIES AND EQUITY Loss attributable to Leju Holdings Limited shareholders (20,862) (13,491) Amortization of intangible assets resulting from business      acquisitions (net of non-controlling interests) 3,450 3,153
Current liabilities Income tax benefit:
Accounts payable 803 2,138 Loss per share:    Current
Accrued payroll and welfare expenses 30,628 28,718 Basic/Diluted (0.15) (0.10)    Deferred (817) (788)
Income tax payable 58,030 54,656 Shares used in computation of loss per share: Non-GAAP net loss attributable to Leju Holdings Limited     shareholders (17,258) (10,551)
Other tax payable 12,675 13,734 Basic/Diluted 135,763,962 135,763,962
Amounts due to related parties 3,477 8,726 GAAP net loss per ADS — basic/diluted (0.15) (0.10)
Advances from customers 26,873 29,386 The conversion of Renminbi ("RMB") amounts into reporting currency USD amounts is based on the rate of USD1
Lease liabilities, current[2] 7,924   = RMB6.7335 on March 31, 2019 and USD1 = RMB6.7977 for the three months ended March 31, 2019 Non-GAAP net loss per ADS — basic/diluted (0.13) (0.08)
Accrued marketing and advertising expenses 14,896 14,053
Other current liabilities 12,999 12,897 Shares used in calculating basic/diluted GAAP/non-GAAP net     loss attributable to Leju Holdings Limited shareholders per     ADS 135,763,962 135,763,962
Total current liabilities 160,381 172,232 ________________________________
Lease liabilities, non-current[2] 27,950 [3] Amount represents the realization of deferred tax liabilities recognized for the temporary difference between the tax basis of intangible assets recognized from acquisitions and their reported amounts in the financial statements. The income tax impact on the share-based compensation expense is nil.
Deferred tax liabilities 14,780 15,065
Total liabilities 175,161 215,247
Shareholders' Equity
Ordinary shares ($0.001 par value): 1,000,000,000 shares   authorized, 135,763,962 and 135,763,962 shares issued and   outstanding, as of December 31, 2018 and March 31,2019,   respectively 136 136
Additional paid-in capital 792,626 793,202
Accumulated deficit (528,825) (542,316)
Accumulated other comprehensive loss (19,848) (16,481)
Total Leju Holdings Limited shareholders' equity 244,089 234,541
Non-controlling interests (2,523) (2,618)
Total equity 241,566 231,923
TOTAL LIABILITIES AND EQUITY 416,727 447,170
________________________________
[2] In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group adopted this ASU on January 1, 2019 using the modified retrospective approach and the financial statements for the comparative period has not been restated.

 

Cision View original content:http://www.prnewswire.com/news-releases/leju-reports-first-quarter-2019-results-300857216.html

SOURCE Leju Holdings Limited

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