Leju Reports Second Half Year and Full Year 2022 Results

BEIJING, March 31, 2023 /PRNewswire/ -- Leju Holdings Limited ("Leju" or the "Company") (NYSE: LEJU), a leading e-commerce and online media platform for real estate and home furnishing industries in China, today announced its unaudited financial results for the second half and full year ended December 31, 2022.

Second Half 2022 Financial Highlights

• Total revenues decreased by 25% year on year to $173.7 million.
• Revenues from e-commerce services decreased by 19% year on year to $145.8 million.
• Revenues from online advertising services decreased by 48% year on year to $27.9 million.
  
  
• Loss from operations was $40.9 million, compared to loss from operations of $116.9 million for the same period of 2021.
  
  
• Non-GAAP^[1] loss from operations was $34.7 million, compared to Non-GAAP loss from operations of $111.2 million for the same period of 2021.
  
  
• Net loss attributable to Leju Holdings Limited shareholders was $36.8 million, or $2.69 loss per diluted American depositary share ("ADS"), compared to net loss attributable to Leju Holdings Limited shareholders of $103.2 million, or $7.54 loss per diluted ADS^[2], for the same period of 2021.
  
  
• Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $32.0 million, or $2.33 loss per diluted ADS, compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $98.7 million, or $7.22 loss per diluted ADS, for the same period of 2021.

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release. [2] On May 10, 2022, Leju announced that it would change its American depositary share ("ADS") to ordinary share ("Share") ratio from one (1) ADS representing one (1) Share to one (1) ADS representing ten (10) Shares. The change in the ADS ratio was effective on May 20, 2022. For Leju's ADS holders, the change in the ADS ratio had the same effect as a one-for-ten reverse ADS split. The ADS ratio change has no impact on Leju's underlying Shares. Loss per ADS for 2021 had been retrospectively adjusted accordingly.

Full Year 2022 Financial Highlights

• Total revenues decreased by 36% year on year to $343.2 million.
• Revenues from e-commerce services decreased by 32% year on year to $278.5 million.
• Revenues from online advertising services decreased by 47% year on year to $64.7 million.
  
  
• Loss from operations was $105.6 million, compared to loss from operations of $166.7 million for 2021.
  
  
• Non-GAAP loss from operations was $93.2 million, compared to non-GAAP loss from operations of $154.5 million for 2021.
  
  
• Net loss attributable to Leju Holdings Limited shareholders was $89.7 million, or $6.54 loss per diluted ADS, compared to net loss attributable to Leju Holdings Limited shareholders of $150.9 million, or $11.05 loss per diluted ADS for 2021.
  
  
• Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $79.9 million, or $5.83 loss per diluted ADS, compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $141.4 million, or $10.34 loss per diluted ADS for 2021.

"In the second half of 2022, China's real estate industry did not show significant improvement, while real estate developers continued to experience liquidity pressure and overall market sales continued to decline, all of which had negatively impacted Leju's online advertising and e-commerce businesses," said Mr. Geoffrey He, Leju's Chief Executive Officer.

"Although the central government and local governments introduced measures to support the real estate industry in the fourth quarter of 2022, it will take the market some time to absorb and respond. Looking ahead to 2023, real estate sales are anticipated to remain depressed as developers work to restore their financial fundamentals. Leju has made adaptive optimization and adjustment to our sales network and team structure based on these projections. Finally, in order to be ready to take advantage of the future market recovery, we will enhance our focus on brand building efforts and new product development."

Second Half 2022 Results

Total revenues were $173.7 million, a decrease of 25% from $233.0 million for the same period of 2021.

Revenues from e-commerce services were $145.8 million, a decrease of 19% from $179.7 million for the same period of 2021, primarily due to a decrease in the number of discount coupons redeemed, partially offset by an increase in the average price per discount coupon redeemed.

Revenues from online advertising services were $27.9 million, a decrease of 48% from $53.2 million for the same period of 2021, primarily due to a decrease in property developers' demand for online advertising. 

Cost of revenues was $16.1 million, a decrease of 33% from $24.1 million for the same period of 2021, primarily due to decreased cost of advertising resources purchased from media platforms, and decreased editorial personnel related costs.

Selling, general and administrative expenses were $198.7 million, a decrease of 39% from $326.2 million for the same period of 2021, primarily due to the $63.7 million decrease in the bad debt provision, and decreased marketing expenses related to the Company's e-commerce business. The bad debt provision recorded in the second half of 2021 was mainly attributable to the recognition of additional loss allowance on expected credit loss of the Company's outstanding online advertising related receivables from certain customers, whose credit quality worsened.

Loss from operations was $40.9 million, compared to loss from operations of $116.9 million for the same period of 2021. Non-GAAP loss from operations was $34.7 million, compared to non-GAAP loss from operations of $111.2 million for the same period of 2021.

Net loss was $36.9 million, compared to net loss of $103.0 million for the same period of 2021. Non-GAAP net loss was $32.0 million, compared to non-GAAP net loss of $98.6 million for the same period of 2021.

Net loss attributable to Leju Holdings Limited shareholders was $36.8 million, or $2.69 loss per diluted ADS, compared to net loss attributable to Leju Holdings Limited shareholders of $103.2 million, or $7.54 loss per diluted ADS, for the same period of 2021. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $32.0 million, or $2.33 loss per diluted ADS, compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $98.7 million, or $7.22 loss per diluted ADS, for the same period of 2021.

Full year 2022 Results

Total revenues were $343.2 million, a decrease of 36% from $534.1 million for 2021.

Revenues from e-commerce services were $278.5 million, a decrease of 32% from $411.1 million for 2021, primarily due to a decrease in the number of discount coupons redeemed, partially offset by an increase in the average price per discount coupon redeemed.

Revenues from online advertising services were $64.7 million, a decrease of 47% from $122.5 million for 2021, primarily due to a decrease in property developers' demand for online advertising. 

Cost of revenues was $30.6 million, a decrease of 45% from $55.8 million for 2021, primarily due to decreased cost of advertising resources purchased from media platforms, and decreased editorial personnel related costs.

Selling, general and administrative expenses were $418.5 million, a decrease of 35% from $645.6 million for 2021, primarily due to the $97.5 million decrease in the bad debt provision, and decreased marketing expenses related to the Company's e-commerce business. The bad debt provision recorded in 2021 was mainly attributable to the recognition of additional loss allowance on expected credit loss of the Company's outstanding online advertising related receivables from certain customers, whose credit quality worsened.

Loss from operations was $105.6 million, compared to loss from operations of $166.7 million for 2021. Non-GAAP loss from operations was $93.2 million, compared to non-GAAP net loss of $154.5 million for 2021.

Net loss was $89.7 million, compared to net loss of $149.9 million for 2021. Non-GAAP net loss was $79.9 million, compared to non-GAAP net loss of $140.3 million for 2021.

Net loss attributable to Leju Holdings Limited shareholders was $89.7 million, or $6.54 loss per diluted ADS, compared to net loss attributable to Leju Holdings Limited shareholders of $150.9 million, or $11.05 loss per diluted ADS, for 2021. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $79.9 million, or $5.83 loss per diluted ADS, compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $141.4 million, or $10.34 loss per diluted ADS, for 2021.

Cash Flow

As of December 31, 2022, the Company's cash and cash equivalents and restricted cash were $127.6 million.

Second half 2022 net cash used in operating activities was $47.4 million, primarily comprised of non-GAAP net loss of $32.0 million and a decrease in other current liabilities and accrued expenses of $13.6 million.

About Leju

Leju Holdings Limited ("Leju") (NYSE: LEJU) is a leading e-commerce and online media platform for real estate and home furnishing industries in China, offering real estate e-commerce, online advertising and online listing services. Leju's integrated online platform comprises various mobile applications along with local websites covering more than 380 cities, enhanced by complementary offline services to facilitate residential property transactions. In addition to the Company's own websites, Leju operates the real estate and home furnishing websites of SINA Corporation, and maintains a strategic partnership with Tencent Holdings Limited. For more information about Leju, please visit http://ir.leju.com.

Safe Harbor: Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995.  These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Leju may also make written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Leju's beliefs and expectations, are forward-looking statements that involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements. Such factors include, but are not limited to, fluctuations in China's real estate market; the highly regulated nature of, and government measures affecting, the real estate and internet industries in China; Leju's ability to compete successfully against current and future competitors; its ability to continue to develop and expand its content, service offerings and features, and to develop or incorporate the technologies that support them; its reliance on SINA and others with which it has developed, or may develop in the future, strategic partnerships; substantial revenue contribution from a limited number of real estate markets; and relevant government policies and regulations relating to the corporate structure, business and industry of Leju. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Leju's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.

Leju believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding its operating performance by excluding share-based compensation expense and amortization of intangible assets resulting from business acquisitions, which may not be indicative of Leju's operating performance. These non-GAAP financial measures also facilitate management's internal comparisons to Leju's historical performance and assist its financial and operational decision making. A limitation of using these non-GAAP financial measures is that share-based compensation expense and amortization of intangible assets resulting from business acquisitions may continue to exist in Leju's business for the foreseeable future. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables provide more details on the reconciliation between non-GAAP financial measures and their most comparable GAAP financial measures.

For investor and media inquiries please contact:

Ms. Christina Wu
Leju Holdings Limited
Phone: [phone]
E-mail: [e-mail]

 

 

LEJU HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars)
			December 31,						December 31,
			2021						2022
ASSETS
Current assets
Cash and cash equivalents				250,314						123,378
Restricted cash				2,082						4,271
Accounts receivable, net				36,071						3,408
Contract assets, net				1,415						—
Marketable securities				1,186						—
Prepaid expenses and other current assets				25,110						6,111
Customer deposits				784						3,860
Amounts due from related parties				3,913						2,476
Total current assets				320,875						143,504
Property and equipment, net				16,667						14,204
Intangible assets, net				23,298						12,458
Right-of-use assets				23,409						18,943
Investment in affiliates				18						—
Deferred tax assets, net				51,605						25,457
Other non-current assets				1,376						1,545
Total assets				437,248						216,111
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings				784						718
Accounts payable				1,631						654
Accrued payroll and welfare expenses				21,517						12,728
Income tax payable				60,952						25,203
Other tax payable				18,046						9,695
Amounts due to related parties				7,632						4,805
Advances from customers				82,788						43,100
Lease liabilities, current				5,582						5,038
Accrued marketing and advertising expenses				43,272						29,988
Other current liabilities				18,504						12,265
Total current liabilities				260,708						144,194
Lease liabilities, non-current				19,438						15,439
Deferred tax liabilities				6,043						3,518
Total liabilities				286,189						163,151
Shareholders' Equity
Ordinary shares ($0.001 par value): 1,000,000,000 shares   authorized, 136,822,601 and 137,172,601 shares issued and   outstanding, as of December 31, 2021 and 2022,   respectively				137						137
Additional paid-in capital				801,477						803,301
Accumulated deficit				(648,935)						(738,602)
Accumulated other comprehensive loss				(1,424)						(11,601)
Total Leju Holdings Limited shareholders' equity				151,255						53,235
Non-controlling interests				(196)						(275)
Total equity				151,059						52,960
TOTAL LIABILITIES AND EQUITY				437,248						216,111

 

 

LEJU HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share data and per share data)
		Six months ended								Year ended
		December 31,								December 31,
		2021				2022				2021				2022
Revenues
E-commerce			179,696				145,810				411,097				278,464
Online advertising			53,232				27,924				122,522				64,707
Listing			97				—				498				11
Total net revenues			233,025				173,734				534,117				343,182
Cost of revenues			(24,130)				(16,130)				(55,801)				(30,604)
Selling, general and administrative expenses			(326,151)				(198,739)				(645,623)				(418,501)
Other operating income, net			361				273				560				298
Loss from operations			(116,895)				(40,862)				(166,747)				(105,625)
Interest income, net			1,555				820				3,130				2,335
Other income (loss), net			(1,919)				695				209				1,496
Loss before taxes and loss from equity in     affiliates			(117,259)				(39,347)				(163,408)				(101,794)
Income tax benefits			14,228				2,478				13,498				12,120
Loss before loss from equity in affiliates			(103,031)				(36,869)				(149,910)				(89,674)
Loss from equity in affiliates			(6)				(17)				(14)				(17)
Net loss			(103,037)				(36,886)				(149,924)				(89,691)
Less: net income (loss) attributable to non-controlling interests			125				(70)				1,010				(23)
Net loss attributable to Leju Holdings Limited     shareholders			(103,162)				(36,816)				(150,934)				(89,668)
Loss per ADS:
Basic			(7.54)				(2.69)				(11.05)				(6.54)
Diluted			(7.54)				(2.69)				(11.05)				(6.54)
ADS used in computation of loss per ADS:
Basic			13,681,898				13,708,716				13,665,216				13,704,238
Diluted			13,681,898				13,708,716				13,665,216				13,704,238
The conversion of functional currency Renminbi ("RMB") amounts into reporting currency USD amounts is based on the rate of USD1 = RMB6.9646 on December 31, 2022 and USD1 = RMB6.6935 for the year ended December 31, 2022.

 

 

LEJU HOLDINGS LIMITED  UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)  (In thousands of U.S. dollars)
		Six months ended									Year ended
		December 31,									December 31,
		2021				2022				2021					2022
Net loss			(103,037)				(36,886)				(149,924)					(89,691)
Other comprehensive income (loss), net of tax of nil
Foreign currency translation adjustments			1,882				(4,891)				4,282					(10,232)
Comprehensive loss			(101,155)				(41,777)				(145,642)					(99,923)
Less: Comprehensive income (loss) attributable to     non-controlling interests			129				(86)				1,021					(78)
Comprehensive loss attributable to Leju Holdings     Limited shareholders			(101,284)				(41,691)				(146,663)					(99,845)

 

 

LEJU HOLDINGS LIMITED Unaudited Reconciliation of GAAP and Non-GAAP Results (In thousands of U.S. dollars, except share data and per ADS data)
		Six months ended										Year ended
		December 31,										December 31,
		2021					2022					2021			2022
GAAP loss from operations			(116,895)					(40,862)				(166,747)			(105,625)
Share-based compensation expense			463					895				1,657			1,824
Amortization of intangible assets resulting from business     acquisitions			5,279					5,279				10,558			10,558
Non-GAAP loss from operations			(111,153)					(34,688)				(154,532)			(93,243)
GAAP net loss			(103,037)					(36,886)				(149,924)			(89,691)
Share-based compensation expense			463					895				1,657			1,824
Amortization of intangible assets resulting from business acquisitions			5,279					5,279				10,558			10,558
Income tax benefits:
Current			—					—				—			—
Deferred[3]			(1,320)					(1,320)				(2,640)			(2,640)
Non-GAAP net loss			(98,615)					(32,032)				(140,349)			(79,949)
Net loss attributable to Leju Holdings Limited shareholder			(103,162)					(36,816)				(150,934)			(89,668)
Share-based compensation expense (net of non-controlling interests)			463					895				1,657			1,824
Amortization of intangible assets resulting from business     acquisitions (net of non-controlling interests)			5,279					5,279				10,558			10,558
Income tax benefits:
Current			—					—				—			—
Deferred			(1,320)					(1,320)				(2,640)			(2,640)
Non-GAAP net loss attributable to Leju Holdings     Limited shareholders			(98,740)					(31,962)				(141,359)			(79,926)
GAAP net loss per ADS — basic			(7.54)					(2.69)				(11.05)			(6.54)
GAAP net loss per ADS — diluted			(7.54)					(2.69)				(11.05)			(6.54)
Non-GAAP net loss per ADS — basic			(7.22)					(2.33)				(10.34)			(5.83)
Non-GAAP net loss per ADS — diluted			(7.22)					(2.33)				(10.34)			(5.83)
ADS used in calculating basic GAAP / non-GAAP net loss     attributable to shareholders per ADS			13,681,898					13,708,716				13,665,216			13,704,238
ADS used in calculating diluted GAAP / non-GAAP net     loss attributable to shareholders per ADS			13,681,898					13,708,716				13,665,216			13,704,238
[3]  Amount represents the realization of deferred tax liabilities recognized for the temporary difference between the tax basis of intangible assets recognized from acquisitions and their reported amounts in the financial statements. The income tax impact on the share-based compensation expense is nil.

 

 

LEJU HOLDINGS LIMITED SELECTED OPERATING DATA
		Six months ended								Year ended
		December 31,								December 31,
		2021				2022				2021				2022
Operating data for e-commerce services
Number of discount coupons issued to     prospective purchasers (number of     transactions)			70,138				35,794				162,196				67,250
Number of discount coupons redeemed (number     of transactions)			60,852				35,214				138,230				70,476

 

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