Autohome Inc. (NYSE:ATHM) Q2 2018 Earnings Conference Call - Final Transcript

Aug 08, 2018 • 08:00 am ET

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Autohome Inc. (NYSE:ATHM) Q2 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by for Autohome's Second Quarter 2018 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to introduce your host, Joyce Tang, Autohome's IR Senior Manager. Ms. Tang, you may begin.

Executive
Joyce Tang

Thank you, operator. Hello everyone, and welcome to Autohome's Second Quarter 2018 Earnings Conference Call. Earlier today, Autohome distributed its earnings press release and you may find a copy on the company's website at www.autohome.com.cn. On today's call, we have Mr. Min Lu, Autohome's Chairman and CEO; Mr. Haifeng Shao, Autohome's President; and Mr. Jun Zou, Autohome's Chief Financial Officer. After the prepared remarks, Mr. Lu, Mr. Shao and Mr. Zou will be available to answer your questions.

(Forward-looking Cautionary Statements) I will now turn the call over to Autohome's Chairman and CEO, Mr. Lu. Mr. Lu, please go ahead.

Executive
Min Lu

Thank you, Joyce. Hello, everyone. Thank you for joining us today to discuss our second quarter 2018 results. I'm pleased to report another strong quarter in which our revenue, excluding direct sales, increased 36% year-over-year to RMB1.87 billion. This further solidifies that our core business and new initiatives are gaining significant acceptance in the market. And all 4 pillars of our business are on track with continued growth momentum.

Now let me update some recent efforts in our core media and leads generation business. Firstly, we are able to continue expanding high-quality tracking. During the second quarter of 2018, the number of average daily unique visitors who accessed our primary application, Autohome, increased by 54% year-over-year to reach 10.3 million according to the Quest Mobile.

Also, our mobile advertising revenue grew 30% compared to the same period of last year, accounting for 52% of our media service revenue. Secondly, we have further broadened content with better-driven customization and tailored intelligent recommendation. For example, currently, there are 8,000 professional contributors to our PGC platform. And overall publications, including articles and videos, increased about 150% growth sequentially.

Also, as the part of further upgrading the PGC ecosystem, we are expanding collaboration with all automakers, KOLs, professional experts and the social media, et cetera.

In addition, Autohome has further diversified its content production by launching 9 columns, including celebrity talk show, gourmet on the road, animated car showcase, comedian car review, cars for HER, cars and culture, road music, industry opinion interview and test drive.

Next, our CheYouQuan continues to expand now with over 76,000 groups spending across 351 cities, a roughly 30% increase compared to 54,000 groups in the first quarter of 2018. Finally, the diverse VR product portfolio continued to expand. Now we have AR auto shows, VR branding showrooms, tailored intelligent automobile showrooms as well as direct visual access to automakers' factory design and manufacturing for users to appreciate the entire automobile production process. We will continue to develop significant resources towards expanding contents' breadth and depth in order to deliver the best