Autohome (ATHM) Q4 2013 earnings summary

Executive summary

• FY2013 net revenue rose 66.1% YoY to RMB1,216.5m; net income was RMB456.2m, with growth across advertising and dealer subscriptions.

• The leading automotive information platform in China reported 5.9m average daily unique visitors to autohome.com.cn and 47% of online automotive-information viewing time in 2013.

Financial highlights

• Revenue was RMB1,216.5m; gross profit RMB964.3m; operating profit RMB554.9m; income from continuing operations and net income both RMB456.2m.

• Operating cash flow reached RMB593.9m in FY2013, versus RMB279.5m in 2012; year-end cash and cash equivalents were RMB1,138.6m.

• FY2013 net income included RMB25.6m of share-based compensation expense; G&A was affected by a one-off IPO postponement cost in 2012.

Outlook and guidance

• Cash, expected operating cash flow and IPO proceeds were considered sufficient for anticipated needs, including at least the next 12 months.

• Advertising growth strategy focused on higher pricing and volume; dealer subscriptions targeted more registered dealers, conversion to paid packages and higher fees.

• Planned to shift advertising operations from VIEs to Autohome Media subsidiaries over the next three to four years; further mobile, maintenance and replacement-stage products were in development.