Autohome Inc. (NYSE:ATHM) Q1 2019 Earnings Conference Call Transcript

May 08, 2019 • 08:00 am ET

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Autohome Inc. (NYSE:ATHM) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by for Autohome's First Quarter 2019 Earnings Conference Call. At this time, all participants are in a 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, Anita Chen, Autohome's IR Director. Ms. Chen, you may begin.

Executive
Anita Chen

Thank you, operator. Hello, everyone, and welcome to Autohome's first quarter 2018 earnings conference call. Earlier today, Autohome distributed it's 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; and Mr. Jun Zou, Autohome's CFO. After the prepared remarks Mr. Lu and Mr. Jun will be available to answer your questions.

Before when they came, please note that discussion today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Security 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 are 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 applicable law. The earnings press release in this call also includes discussions of 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, Anita. Hello, everyone, thank you for joining us today to discuss our first quarter 2019 results. I'm pleased to report a strong start to the year in which our revenue increased by 25% year-over-year to RMB1.61 billion. More importantly, the adjusted net income during the quarter grew 35% year-over-year to RMB701 million, representing an adjusted net margin of 43%. During the quarter, we continued to face a challenging operating environment as the auto market is due trending down, however we embraced these challenges by continuing to pursue innovation across our key products and explore new business opportunities. We saw encouraging progress in each of our major business lines.

In March, the number of average DAUs who access to our mobile websites, and the primary application increased by 14% year-over-year to 30.2 million. We saw strong 7traction from both the used car channels and Carso, which is a self-developed intelligent search engine providing aggregated car-related information. This continued to traffic leadership and growth was driven by our capability of precisely identifying the true needs of our large and expanding user base while offering them customized the content and tools by our advanced