Earnings Review and Free Research Report: Leju Reported Better Than Expected Results

LONDON, UK / ACCESSWIRE / June 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Leju Holdings Ltd (NYSE: LEJU), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=LEJU, following the Company’s posting of its first quarter financial results on June 13, 2017. The leading online-to-offline (“O2O”) real estate services provider in China announced the departure of its CFO. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at: http://protraderdaily.com/register/.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on LEJU. With the links below you can directly download the report of your stock of interest free of charge at: http://protraderdaily.com/optin/?symbol=LEJU.

Earnings Reviewed

For the fiscal quarter ended March 31, 2017, Leju’s total revenues were $68.3 million, reflecting a drop of 40% from $113.0 million for Q1 2016, primarily due to decreases in ecommerce service revenue and listing service revenue as a result of restrictions placed by local governments. The Company’s revenue numbers came in ahead of analysts’ forecasts of $65.32 million.

During Q1 2017, Leju’s ecommerce service revenues decreased 56% on a y-o-y basis to $38.1 million from $86.1 million in Q1 2016, primarily due to decreases in both the number of discount coupons redeemed and in the average price per discount coupon. During the reported quarter, the Company generated ecommerce revenue from 52 cities, and ecommerce revenue contributed approximately 56% of its total revenue.

Leju’s revenues from online advertising services increased 18% to $25.8 million in Q1 2017 compared to $21.8 million in Q1 2016, primarily due to an increase in property developers’ online advertising demand as a result of new products launched. Online advertising contributed 38% of the Company’s total revenues this quarter.

For Q1 2017, Leju’s revenues from listing services totaled $4.4 million, down 14% from $5.1 million in Q1 2016, primarily due to a decrease in secondary home sales.

Leju’s Q1 2017 selling, general, and administrative expenses were $100.5 million, reflecting a decline of 11% from $113.3 million for Q1 2016, principally attributable to decreased marketing expenses related to the Company’s ecommerce business.

Leju’s cost of revenues were $14.1 million in Q1 2017, representing an increase of 4% from $13.6 million in Q1 2016, primarily due to increased cost of advertising resources purchased from SINA, partially offset by decreased staffing cost of the editorial department as a result of headcount change. The Company’s loss from operations was $46.3 million compared to $13.8 million for the prior year’s corresponding quarter, while its non-GAAP loss from operations was $41.8 million versus $7.4 million for Q1 2016.

Net loss attributable to Leju’s shareholders was $28.2 million, or $0.21 loss per diluted ADS, in Q1 2017 compared to $11.0 million, or $0.08 loss per diluted ADS, for Q1 2016. The Company’s non-GAAP net loss attributable to Leju’s shareholders was $24.2 million, or $0.18 loss per diluted ADS, in the reported quarter compared to $5.3 million, or $0.04 loss per diluted ADS, in the prior year’s same quarter. Leju’s results topped Wall Street’s expectations for a loss of $0.30 per ADS.

Cash Flow

As of March 31, 2017, Leju’s cash and cash equivalents balance was $219.8 million. During the reported quarter, net cash used in operating activities was $55.7 million, mainly attributable to non-GAAP net loss of $24.7 million, a decrease in accrued payable and welfare expenses of $8.4 million and a decrease in income tax payable and other tax payable of $26.3 million, partially offset by a decrease in customer deposit of $5.1 million.

Business Outlook

For Q2 2017, Leju estimates total revenues to be approximately $75 million to $80 million, which would represent a decrease of approximately 49% to 53% from $158.3 million in Q2 2016.

Management Changes

Leju announced that Min Chen has tendered her resignation from the position of the Company’s Chief Financial Officer, effective June 13, 2017, to pursue other career opportunities. Meanwhile, the Company announced that it has appointed Li-Lan Cheng as acting CFO and Michelle Yuan as deputy CFO, effective the same date.

Stock Performance

On Thursday, June 29, 2017, Leju Holdings’ stock closed the trading session at $1.90, slipping 4.52% from its previous closing price of $1.99. A total volume of 74.44 thousand shares were exchanged during the session. The stock currently has a market cap of $257.89 million.

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