Focuses on Unleashing the Potential of New Energy Vehicle Market with Continuous Growth in Innovation Business
HONG KONG, May 11, 2023 /PRNewswire/ — Autohome Inc. (NYSE: ATHM; HKEX: 2518) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced its first quarter financial results for 2023. The Company got off to a solid start in the first quarter with a number of indicators beating market expectations. Total net revenue achieved RMB1.53 billion, up 4.2% year-over-year. Profitability also continued to improve, with adjusted net income of RMB483.5 million, up 10.5% year-over-year, and the adjusted net margin remained at a comparatively high level of 31.5%. As of March 31, 2023, the Company’s balance sheet remained very strong with cash, cash equivalents, and short-term investments of RMB22.71 billion, indicating sufficient cash reserves.
In terms of business, Autohome continued to make solid progress, with robust revenue growth of 35.5% year-over-year to RMB361.5 million for media services. In the first quarter, the revenue contribution from new energy brands continued to rise, with a year-over-year increase of 67%, significantly outperforming the growth rate of broader industry sales. Though the fluctuating new car prices in the first quarter put some pressure on the used car industry, Autohome’s used car business unit, together with TTP, still achieved year-over-year growth, demonstrating the synergy between businesses. In terms of product and technology creation, the Company has expanded application scenarios for digital products and brought new AI-powered data products for dealers, returning to a path of revenue growth.
Autohome began the year by rolling out a series of initiatives to broaden the reach of its dual ecosystem, comprised of user service and customer service. On the user side, the Company launched C-end strategy, expanding from the previous focus on car consumption to capture all aspects of cars’ lifespan. This shift empowered the Company to address a wider range of automobile consumers’ needs and has helped the Company gain great user traction. According to QuestMobile, Autohome’s traffic scale has expanded rapidly since the beginning of the year. In March, the mobile DAUs increased by 42% year-over-year to reach a record high of 64.15 million, demonstrating the continued leadership in the automotive media vertical. On the customer side, the Company has fully implemented the new Autohome Energy Space retail model and initiated franchise stores, with the aim of further expanding the scale of new retail services this year.
Mr. Quan Long, Chairman and Chief Executive Officer of Autohome, stated that, "Despite the challenging auto market in the first quarter, we are seeing positive trends in the automobile market and expect it to maintain a steady upward trajectory. The penetration rate of new energy vehicles will continue to rise, and greater consumer demand will be released. We also look forward to additional supportive government policies, which will help further stabilize the auto market and encourage auto consumption. Meanwhile, we will strive to create a healthier and more vibrant ecosystem, leveraging technological innovation to reduce decision-making and transaction costs for co-development with our partners, while also exploring new business opportunities to achieve long-term and sustainable development."
Autohome Inc. (NYSE: ATHM; HKEX: 2518) is the leading online destination for automobile consumers in China. According to QuestMobile, the mobile DAUs increased by 42% year-over-year to reach a record high of 64.15 million in March 2023. Its mission is to engage, educate and inform consumers about everything auto. Autohome provides occupationally generated content, professionally generated content, user-generated content, and AI-generated content, a comprehensive automobile library, and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle. The ability to reach a large and engaged user base of automobile consumers has made Autohome a preferred platform for automakers and dealers to conduct their advertising campaigns. Further, the Company’s dealer subscription and advertising services allow dealers to market their inventory and services through Autohome’s platform, extending the reach of their physical showrooms to potentially millions of internet users in China and generating sales leads for them. The Company offers sales leads, data analysis, and marketing services to assist automakers and dealers with improving their efficiency and facilitating transactions. Autohome operates its "Autohome Mall," a full-service online transaction platform, to facilitate transactions for automakers and dealers. Further, through its websites and mobile applications, it also provides other value-added services, including auto financing, auto insurance, used car transactions, and aftermarket services.
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