KE (BEKE) Q3 2024 earnings summary

Executive summary

• Achieved dynamic and sustainable growth in Q3 2024, with total GTV of RMB 736.8 billion, up 12.5% year-over-year, and net revenues of RMB 22.6 billion, up 26.8% year-over-year.

• Home renovation, furnishing, and rental services saw robust growth, contributing 38.3% of total net revenues.

• Monthly active mobile users reached 46.2 million, with 46,857 active stores and 423,400 active agents as of September 30, 2024.

• Implemented new governance structures and leadership appointments to drive innovation and operational efficiency.

• Focused on long-term survival and development, emphasizing integrity, creativity, and prudent resource allocation.

Financial highlights

• Net revenues were RMB 22.6 billion, a 26.8% year-over-year increase; gross margin declined to 22.7%.

• GAAP net income was RMB 1,168 million; non-GAAP net income was RMB 1,782 million, both down year-over-year.

• Adjusted EBITDA for Q3 2024 was RMB 2,154 million, with a margin of 9.5%.

• Net operating cash inflow was RMB 449 million in Q3.

• Basic and diluted net income per ADS were RMB 1.04 and RMB 1.00, respectively; adjusted per ADS were RMB 1.58 and RMB 1.53.

Outlook and guidance

• Management expects continued sustainable growth, supported by government policy and market recovery seen in October.

• Focus remains on long-term vision, innovation, and prudent resource allocation to support diversified business lines.

• Expecting relatively stable market in Q4, with short-term price stability but sustainability requiring further observation.

• Further economic recovery and supply-side measures are key for long-term market stabilization.

• Continued focus on expanding non-transaction services and enhancing operational efficiency.