Workflow
BEKE(BEKE) - 2024 Q3 - Quarterly Results
BEKEBEKE(BEKE)2024-11-21 11:34

Financial Performance - Gross transaction value (GTV) reached RMB736.8 billion (US105.0billion),a12.5105.0 billion), a 12.5% year-over-year increase[2] - Net revenues increased by 26.8% to RMB22.6 billion (US3.2 billion) compared to RMB17.8 billion in the same period of 2023[9] - Net income was RMB1,168 million (US167million),withadjustednetincomeatRMB1,782million(US167 million), with adjusted net income at RMB1,782 million (US254 million)[3] - Total net revenues for the three months ended September 30, 2024, increased to RMB 22,584,647, representing a 27.5% growth compared to RMB 17,810,705 for the same period in 2023[63] - Net income attributable to KE Holdings Inc. for the three months ended September 30, 2024, was RMB 1,171,073, compared to RMB 1,170,290 in the previous year[65] - Net income for the nine months ended September 30, 2024, was RMB 5,219,541, compared to RMB 3,500,932 for the same period in 2023, reflecting a year-over-year increase of 49.0%[69] - Total revenue for the nine months ended September 30, 2024, was RMB 9,388,339, compared to RMB 7,689,643 for the same period in 2023, reflecting a growth of 22.1%[74] Revenue Breakdown - Net revenues from new home transaction services grew by 30.9% to RMB7.7 billion (US1.1billion)[12]−Netrevenuesfromhomerentalservicessurgedby118.41.1 billion)[12] - Net revenues from home rental services surged by 118.4% to RMB3.9 billion (US0.6 billion)[15] - New home transaction services revenue rose to RMB 7,726,316, a 30.9% increase from RMB 5,901,966 year-over-year[63] - Home rental services revenue surged to RMB 3,941,234, reflecting a 118.5% increase compared to RMB 1,804,374 in the previous year[63] - Net revenues for existing home transaction services increased to RMB 6,307,085 for the three months ended September 30, 2024, compared to RMB 6,217,054 for the same period in 2023, reflecting a growth of approximately 1.4%[78] - Contribution from new home transaction services rose to RMB 1,483,195 for the three months ended September 30, 2024, up from RMB 1,913,932 in the same period of 2023, indicating a decline of about 22.5%[78] - Home renovation and furnishing services generated net revenues of RMB 3,176,739 for the three months ended September 30, 2024, compared to RMB 4,213,041 in the same period of 2023, representing a decrease of approximately 24.6%[78] - Home rental services reported net revenues of RMB 1,804,374 for the three months ended September 30, 2024, a significant increase from RMB 3,941,234 in the same period of 2023, showing a decline of about 54.2%[78] - Emerging and other services achieved net revenues of RMB 620,541 for the three months ended September 30, 2024, compared to a loss of RMB 64,122 in the same period of 2023, indicating a turnaround in performance[78] - Total contribution from all services for the three months ended September 30, 2024, was RMB 3,069,848, up from RMB 2,549,227 in the same period of 2023, reflecting an increase of approximately 20.4%[78] - The company reported a total net revenue of RMB 21,904,172 for the nine months ended September 30, 2024, compared to RMB 19,278,973 for the same period in 2023, marking a growth of about 13.5%[78] Expenses and Costs - Total cost of revenues increased by 35.0% to RMB17.4 billion (US2.5billion)fromRMB12.9billioninthesameperiodof2023[16]−Totaloperatingexpensesroseby11.02.5 billion) from RMB12.9 billion in the same period of 2023[16] - Total operating expenses rose by 11.0% to RMB4.4 billion (US0.6 billion) in Q3 2024, compared to RMB4.0 billion in Q3 2023[25] - Research and development expenses increased by 21.5% to RMB573 million (US82million)inQ32024,drivenbyhigherheadcountandtechnicalservicecosts[27]−Thecompanyreportedshare−basedcompensationexpensesofRMB814,129forthethreemonthsendedSeptember30,2024,comparedtoRMB606,576forthesameperiodin2023,markinganincreaseof34.282 million) in Q3 2024, driven by higher headcount and technical service costs[27] - The company reported share-based compensation expenses of RMB 814,129 for the three months ended September 30, 2024, compared to RMB 606,576 for the same period in 2023, marking an increase of 34.2%[69] - The total commission and compensation expenses for the nine months ended September 30, 2024, were RMB 10,700,539, a decrease from RMB 11,407,196 in the same period of 2023, indicating a reduction of approximately 6.2%[78] Profitability Metrics - Gross profit increased by 5.2% to RMB5.1 billion (US0.7 billion) in Q3 2024, with a gross margin of 22.7%, down from 27.4% in Q3 2023[23] - Adjusted EBITDA was RMB2,154 million (US307million)inQ32024,downfromRMB2,515millioninQ32023[29]−BasicanddilutednetincomeperADSwereRMB1.04(US307 million) in Q3 2024, down from RMB2,515 million in Q3 2023[29] - Basic and diluted net income per ADS were RMB1.04 (US0.15) and RMB1.00 (US0.14)inQ32024,comparedtoRMB0.99andRMB0.97inQ32023[32]−AdjustednetincomewasRMB1,782million(US0.14) in Q3 2024, compared to RMB0.99 and RMB0.97 in Q3 2023[32] - Adjusted net income was RMB1,782 million (US254 million) in Q3 2024, compared to RMB2,159 million in Q3 2023[30] - For the three months ended September 30, 2024, adjusted net income was RMB 2,159,339, an increase from RMB 1,781,892 for the same period in 2023, representing a growth of 21.2%[69] Balance Sheet Highlights - As of September 30, 2024, the combined balance of cash, cash equivalents, restricted cash, and short-term investments was RMB59.5 billion (US8.5billion)[36]−AsofSeptember30,2024,totalassetsamountedtoRMB122,795,712,anincreasefromRMB120,331,931asofDecember31,2023[52][60]−CurrentassetsdecreasedslightlytoRMB69,678,235fromRMB69,753,623,whilecashandcashequivalentsdroppedtoRMB9,576,948fromRMB19,634,716[52][54]−TotalliabilitiesincreasedtoRMB51,902,049fromRMB48,130,826,withcurrentliabilitiesrisingtoRMB43,147,206fromRMB39,523,983[54][60]−Shareholders′equitydecreasedtoRMB70,893,663fromRMB72,201,105,indicatingadeclineinthecompany′snetworth[61][60]−ThecompanyreportedadecreaseinemployeecompensationandwelfarepayablefromRMB8,145,779toRMB6,136,481[54]−Short−terminvestmentsincreasedsignificantlytoRMB43,654,035fromRMB34,257,958,reflectingastrategicshiftinassetallocation[52]−ThecompanyholdsrestrictedcashofRMB6,243,476asofSeptember30,2024,slightlyupfromRMB6,222,745[52]−GoodwillremainedstableatapproximatelyRMB4,839,219,showingconsistencyinthecompany′sacquisitions[52]−ThecompanyreportedadecreaseinaccumulateddeficitfromRMB5,672,916toRMB2,178,008,indicatingimprovedfinancialhealth[61]StrategicInitiatives−ThecompanyallocatedapproximatelyUS8.5 billion)[36] - As of September 30, 2024, total assets amounted to RMB 122,795,712, an increase from RMB 120,331,931 as of December 31, 2023[52][60] - Current assets decreased slightly to RMB 69,678,235 from RMB 69,753,623, while cash and cash equivalents dropped to RMB 9,576,948 from RMB 19,634,716[52][54] - Total liabilities increased to RMB 51,902,049 from RMB 48,130,826, with current liabilities rising to RMB 43,147,206 from RMB 39,523,983[54][60] - Shareholders' equity decreased to RMB 70,893,663 from RMB 72,201,105, indicating a decline in the company's net worth[61][60] - The company reported a decrease in employee compensation and welfare payable from RMB 8,145,779 to RMB 6,136,481[54] - Short-term investments increased significantly to RMB 43,654,035 from RMB 34,257,958, reflecting a strategic shift in asset allocation[52] - The company holds restricted cash of RMB 6,243,476 as of September 30, 2024, slightly up from RMB 6,222,745[52] - Goodwill remained stable at approximately RMB 4,839,219, showing consistency in the company's acquisitions[52] - The company reported a decrease in accumulated deficit from RMB 5,672,916 to RMB 2,178,008, indicating improved financial health[61] Strategic Initiatives - The company allocated approximately US200 million for share repurchases in the third quarter[8] - The management governance framework has been upgraded to ensure steady and sustainable growth[5] - The company is focusing on expanding its market presence and enhancing its service offerings to drive future growth[78] - New product and technology developments are underway to improve service efficiency and customer satisfaction[78] - The company plans to hold an earnings conference call on November 21, 2024, to discuss financial results[38]