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, 2021.
Second Half 2021 Financial Highlights
- Total revenues decreased by 47% year on year to $233.0 million.
– Revenues from e-commerce services decreased by 48% year on year to $179.7 million.
– Revenues from online advertising services decreased by 45% year on year to $53.2 million. - Loss from operations was $116.9 million, compared to income from operations of $23.0 million for the same period of 2020.
- Non-GAAP[1] loss from operations was $111.2 million, compared to non-GAAP income from operations of $30.0 million for the same period of 2020.
- Net loss attributable to Leju Holdings Limited shareholders was $103.2 million, or $0.75 loss per diluted American depositary share (“ADS”), compared to net income attributable to Leju Holdings Limited shareholders of $17.8 million, or $0.13 per diluted ADS, for the same period of 2020.
- Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $98.7 million, or $0.72 loss per diluted ADS, compared to non-GAAP net income attributable to Leju Holdings Limited shareholders of $23.5 million, or $0.17 per diluted ADS, for the same period of 2020.
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[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. |
Full Year 2021 Financial Highlights
- Total revenues decreased by 26% year on year to $534.1 million.
– Revenues from e-commerce services decreased by 25% year on year to $411.1 million.
– Revenues from online advertising services decreased by 28% year on year to $122.5 million. - Loss from operations was $166.7 million, compared to income from operations of $24.1 million for 2020.
- Non-GAAP loss from operations was $154.5 million, compared to non-GAAP income from operations of $38.3 million for 2020.
- Net loss attributable to Leju Holdings Limited shareholders was $150.9 million, or $1.10 loss per diluted ADS, compared to net income attributable to Leju Holdings Limited shareholders of $19.3 million, or $0.14 per diluted ADS for 2020.
- Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $141.4 million, or $1.03 loss per diluted ADS, compared to non-GAAP net income attributable to Leju Holdings Limited shareholders of $30.7 million, or $0.22 per diluted ADS for 2020.
“In the second half of 2021, China’s real estate industry experienced a steep downturn, with many developers facing severe operational challenges. This had a direct and negative impact on Leju’s online advertising and e-commerce businesses,” said Mr. Geoffrey He, Leju’s Chief Executive Officer. “As certain real estate developers faced deterioration in their creditworthiness, our bad debt provision also continued to increase substantially in the second half of the year compared to 2020, resulting in further losses.”
“Rather than being discouraged by the current market downturn and uncertainties, the Leju team is rising to the challenges. In the second half of 2021, we held a series of successful marketing campaigns on our dual Tmall and Leju platforms including our ‘916 Promotion’, ‘Double 11 Festival’, ‘Smile Angel Celebrity Festival’, and ‘The 5th China Real Estate New Time Gala’ which drove business development and strengthened our influence as an industry media.”
“In the second half of 2021, our parent company E-House deepened its strategic cooperation with Alibaba. E-House became the controlling shareholder of Tmall Haofang, and Tmall Haofang became the direct and controlling shareholder of Leju. Capitalizing on this opportunity, in 2022 Leju will accelerate the development and integration of the two platforms, seize the opportunities presented by the digitization of the real estate industry, and actively explore new business models and revenue growth areas while consolidating our online advertising and e-commerce services. Amidst the new market situation, Leju will take a result-oriented approach, reinforce process management and further improve operational efficiency to achieve our goals as set at the beginning of this year.”
Second Half 2021 Results
Total revenues were $233.0 million, a decrease of 47% from $439.8 million for the same period of 2020.
Revenues from e-commerce services were $179.7 million, a decrease of 48% from $342.4 million for the same period of 2020, 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 $53.2 million, a decrease of 45% from $96.9 million for the same period of 2020, primarily due to a decrease in property developers’ demand for online advertising.
Revenues from listing services were $0.1 million, a decrease of 81% from $0.5 million for the same period of 2020, primarily due to a decrease in secondary real estate brokers’ demand.
Cost of revenues was $24.1 million, a decrease of 26% from $32.6 million for the same period of 2020, primarily due to decreased cost of advertising resources purchased from media platforms.
Selling, general and administrative expenses were $326.2 million, a decrease of 15% from $384.4 million for the same period of 2020, primarily due to decreased marketing expenses related to the Company’s e-commerce business, partially offset by increased bad debt provision. 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 some customers, whose credit quality has worsened.
Loss from operations was $116.9 million, compared to income from operations of $23.0 million for the same period of 2020. Non-GAAP loss from operations was $111.2 million, compared to non-GAAP income from operations of $30.0 million for the same period of 2020.
Net loss was $103.0 million, compared to net income of $19.1 million for the same period of 2020. Non-GAAP net loss was $98.6 million, compared to non-GAAP net income of $24.8 million for the same period of 2020.
Net loss attributable to Leju Holdings Limited shareholders was $103.2 million, or $0.75 loss per diluted ADS, compared to net income attributable to Leju Holdings Limited shareholders of $17.8 million, or $0.13 per diluted ADS, for the same period of 2020. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $98.7 million, or $0.72 loss per diluted ADS, compared to non-GAAP net income attributable to Leju Holdings Limited shareholders of $23.5 million, or $0.17 per diluted ADS, for the same period of 2020.
Full year 2021 Results
Total revenues were $534.1 million, a decrease of 26% from $719.5 million for 2020.
Revenues from e-commerce services were $411.1 million, a decrease of 25% from $547.9 million for 2020, primarily due to a decrease in the number of discount coupons redeemed.
Revenues from online advertising services were $122.5 million, a decrease of 28% from $170.8 million for 2020, primarily due to a decrease in property developers’ demand for online advertising.
Revenues from listing services were $0.5 million, a decrease of 41% from $0.8 million for 2020, primarily due to a decrease in secondary real estate brokers’ demand.
Cost of revenues was $55.8 million, a decrease of 24% from $73.8 million for 2020, primarily due to decreased cost of advertising resources purchased from media platforms.
Selling, general and administrative expenses were $645.6 million, an increase of 4% from $622.0 million for 2020, primarily due to bad debt provision which increased by $106.4 million compared to 2020, partially offset by 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 some customers, whose credit quality has worsened.
Loss from operations was $166.7 million, compared to income from operations of $24.1 million for 2020. Non-GAAP loss from operations was $154.5 million, compared to non-GAAP net income of $38.3 million for 2020.
Net loss was $149.9 million, compared to net income of $21.0 million for 2020. Non-GAAP net loss was $140.3 million, compared to non-GAAP net income of $32.4 million for 2020.
Net loss attributable to Leju Holdings Limited shareholders was $150.9 million, or $1.10 loss per diluted ADS, compared to net income attributable to Leju Holdings Limited shareholders of $19.3 million, or $0.14 per diluted ADS, for 2020. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $141.4 million, or $1.03 loss per diluted ADS, compared to non-GAAP net income attributable to Leju Holdings Limited shareholders of $30.7 million, or $0.22 per diluted ADS, for 2020.
Cash Flow
As of December 31, 2021, the Company’s cash and cash equivalents and restricted cash were $252.4 million.
Second half 2021 net cash used in operating activities was $78.7 million, primarily comprised of non-GAAP net loss of $98.6 million, a decrease in other current liabilities and accrued expenses of $42.0 million, and an increase in deferred tax assets of $9.6 million, partially offset by provision for allowance for doubtful accounts of $59.6 million, and a decrease in accounts receivable of $15.4 million.
Conference Call Information
Leju’s management will host an earnings conference call on March 31, 2022 at 7 a.m. U.S. Eastern Time (7 p.m. Beijing/Hong Kong Time).
Please register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.
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