AutoHome Inc. ((ATHM)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call for AutoHome Inc. displayed an optimistic sentiment, with notable revenue growth, especially in the NEV segment, and expansion of the user base. While challenges such as operating profit and gross margin declines were discussed, the company’s strategic initiatives and shareholder returns indicate a confident outlook for future growth.
Significant Revenue Growth
The company reported a total revenue of RMB 7.04 billion for 2024, marking an 8.1% year-over-year increase from its online marketplace and other segments. This growth reflects solid performance and strategic positioning in the market.
Strong NEV Business Growth
AutoHome’s NEV business demonstrated exceptional growth, with revenues increasing by 55.2% year-over-year. This highlights the company’s strong potential in the rapidly expanding NEV market.
High Daily Active Users
The average mobile daily active users surpassed 77 million in December 2024, representing a 13.6% increase from the previous year. This significant user growth underscores the platform’s increasing popularity and engagement.
Expansion of Offline Stores
The company expanded its offline footprint with over 150 franchise stores, particularly targeting low-tier cities. Additionally, more than 1,200 cities participated in trade-in events across 200 cities, broadening AutoHome’s reach.
Technological Advancements
AutoHome’s integration of AI in its operations has improved productivity and operational efficiency, benefiting both content creation and dealer operations.
Positive Shareholder Returns
A combination of RMB 1.5 billion in dividends and a significant share repurchase program was announced, reflecting the company’s commitment to delivering shareholder value.
Decline in Operating Profit
Operating profit for the fourth quarter decreased to RMB 232 million from RMB 367 million in the same period last year, posing a challenge that the company needs to address.
Decreased Gross Margin
The gross margin fell to 76% in the fourth quarter compared to 80.8% in the same period of 2023, indicating pressure on profitability.
Challenges in Media Services Revenues
Media services revenues experienced a decline; however, the decrease narrowed significantly in the fourth quarter, suggesting potential stabilization.
Forward-Looking Guidance
AutoHome provided robust guidance, highlighting significant achievements and strategic focus areas for future growth. The company plans to deepen its presence in low-tier markets and continue integrating its online-to-offline ecosystem to drive innovation and growth. With an adjusted net income of RMB 2.05 billion and an adjusted net margin of 29.1%, the company remains well-positioned for future advancements.
In conclusion, despite some challenges, AutoHome Inc. demonstrated strong performance in key areas such as revenue and user growth in its recent earnings call. With strategic initiatives in place and a positive outlook for growth, the company is poised to continue its trajectory of success.
