Autohome Inc. (NYSE:ATHM) Q4 2018 Earnings Conference Call Transcript

Feb 26, 2019 • 07:00 am ET

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Autohome Inc. (NYSE:ATHM) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by for Autohome's Fourth Quarter and Full-Year 2018 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. 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, Aggie Zhao, Autohome's IR Manager. Ms. Zhao, you may begin.

Executive
Aggie Zhao

Thank you, operator.

Hello, everyone, and welcome to Autohome's fourth quarter and full-year 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 Chief Executive Officer; Mr. Haifeng Shao, Autohome's President; and Mr. Jun Zou, Autohome's Chief Financial Officer.

After the prepared remarks, Mr. Liu, Mr. Shao and Mr. Zou will be available to answer your questions.

Before we begin, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the Securities and Exchange Commission. Autohome does not undertake any obligation to update any forward-looking statements except as required under the applicable law.

The earnings press release in this call also includes discussions of certain unaudited non-GAAP financial measures. The press release contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and is available on Autohome's IR website.

As a reminder, this conference is being recorded. In addition, a webcast of this conference call will also be available on Autohome's IR website.

I will now turn the call over to Autohome's Chairman and CEO, Mr. Lu.

Executive
Min Lu

Thank you, Aggie. Before I begin, on behalf of Autohome, we would like to thank all of our users, clients, partners and shareholders for your trust and contribution to our continued success.

In 2018, we again delivered record results, stemming from our 4+1 strategy with respect to our core businesses and the new initiatives, backed by advanced data and technology.

First quarter revenues increased 36% year-over-year. More importantly, adjusted net income in the fourth quarter grew 39% year-over-year to over RMB1 billion, representing a net margin of over 49%.

Before going through each of our business lines, please let me address some macro factors that may be on your mind. For 2018 and into 2019, trade war tension and the relative softness in Chinese economy and automobile industry continued as consumer segment remains cautious.

We are seeing the overall number of auto dealers decline, in line with the drop-off of new vehicle sales volume. However, we maintain strong conviction about the long-term future of Autohome because OEMs and the dealers have been more stringent in reviewing their budgets