Autohome Inc. (NYSE:ATHM) Q1 2020 Earnings Conference Call - Final Transcript

Jun 01, 2020 • 08:00 am ET

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Autohome Inc. (NYSE:ATHM) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by Autohome's First Quarter 2020 Earnings Conference Call. At this time, all participant lines are in listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference 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 2020 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 Chairman and CEO, Mr. Min Lu; Co-President, Mr. Haifeng Shao; Co-President, Mr. Jingyu Zhang; and CFO, Mr. Jun Zou. After the prepared remarks, Mr. Lu, Mr. Shao, Mr. Jiang, 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 provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risk 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 applicable law. The earnings press release in this call also includes discussions of current unaudited non-GAAP financial measures. Our 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 live and archived webcast of this earnings 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. We kicked off 2020 with a solid first quarter, reporting total revenue of RMB1.55 billion. Notably, revenue from new initiatives increased by 32% year-over-year and contributed to 20% of total revenues compared to a revenue contribution of 15% for the same period last year. The exceptional revenue performance achieved by the new initiatives was driven primarily by robust revenues from data products, which increased by over 80% year-over-year.

In the first quarter, total new passenger vehicle sales fell by 45% year-over-year as a result of the COVID-19 outbreak and subsequent expansion -- extension of the Chinese New Year holiday. In many cases, buyers postponed their vehicle purchase plans due to the extensive quarantine measures, while the continued spread of the pandemic around the globe. Further, for around the period of domestic containment efforts, all these factors resulted in a further delay in the near-term marketing demand of our customers. Although consumers remained cautious during the first quarter, as the containment regulations have been eased in China, coupled with the government's