Autohome (ATHM) Q3 2024 earnings summary

Executive summary

• Advanced integrated online-to-offline ecosystem, expanding in lower-tier cities and optimizing business structure.

• User base grew, with average mobile daily active users up 5.6% year-over-year to 72.87 million in September.

• Expanded new retail business with over 50 stores nationwide.

• Leveraged AI and digitalization to enhance product offerings and operational efficiency.

• Strengthened collaboration with Ping An Group, launching innovative products and services.

Financial highlights

• Net revenues for Q3 2024 were RMB 1.77 billion, down from RMB 1.91 billion year-over-year.

• Online marketplace and others' revenues grew to RMB 618 million from RMB 599 million year-over-year.

• Gross margin was 77%, down from 80.4% in Q3 2023.

• Operating profit was RMB 83 million, compared to RMB 166 million in Q3 2023.

• Adjusted net income attributable was RMB 497 million, down from RMB 604 million year-over-year.

Outlook and guidance

• Plans to further expand store network and upgrade franchise stores, focusing on both volume and business model innovation.

• Expects continued growth in NEV brand revenue, outpacing industry rates.

• Management expects continued expansion across the automotive sector and further operational efficiency improvements.

• Ongoing focus on maximizing shareholder value through dividends and share repurchases.

• Optimistic about long-term growth potential in China's auto market, despite short-term challenges from price wars.