KE Holdings Inc Reports Q3 2024 Financial Results
Intellectia.AI2024-11-21
KE Holdings Inc. Reports Q3 2024 Financial Results
BEIJING, Nov. 21, 2024 – KE Holdings Inc. ("Beike" or the "Company") (NYSE:BEKE) has reported its unaudited financial results for the third quarter ending September 30, 2024.
1. Key Financial Metrics
Below is a table summarizing the primary financial figures for the quarter:
| Metric | Q3 2024 | Q3 2023 | YOY Change (%) |
|---|---|---|---|
| Net Revenues | RMB22.6 billion (US$3.2 billion) | RMB17.8 billion | 26.8% |
| Net Income | RMB1,168 million (US$167 million) | RMB1,170 million | -0.2% |
| Adjusted Net Income | RMB1,782 million (US$254 million) | RMB2,159 million | -17.5% |
| Earnings Per ADS | RMB1.04 (Basic) / RMB1.00 (Diluted) | RMB0.99 (Basic) / RMB0.97 (Diluted) | 5.05% (Basic) |
Interpretation: KE Holdings Inc. experienced a significant rise in net revenues year-over-year due to increased transacted volumes in both new and existing home transactions, along with a strategic expansion in home renovation and rental services. Despite revenue growth, net income remained relatively flat, reflecting increased costs and investments in new services.
2. Revenue Performance Across Segments
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YOY Change (%) |
|---|---|---|---|
| Existing Home Transactions | RMB6.2 billion | RMB6.3 billion | -1.6% |
| New Home Transactions | RMB7.7 billion | RMB5.9 billion | 30.9% |
| Home Renovation and Furnishing | RMB4.2 billion | RMB3.2 billion | 32.6% |
| Home Rental Services | RMB3.9 billion | RMB1.8 billion | 118.4% |
| Emerging and Other Services | RMB0.5 billion | RMB0.6 billion | -16.7% |
Interpretation: The standout segment was home rental services, which saw an impressive 118.4% growth year-over-year, boosted by new rental models. New home transactions also contributed solid double-digit growth, highlighting an enhanced monetization capability. However, revenues from existing home transactions were largely flat, indicating stabilization.
3. Key Developments and Operational Highlights
- Gross transaction value (GTV) reached RMB736.8 billion (US$105.0 billion), marking a 12.5% increase year-over-year.
- The number of stores increased by 12.1% year-over-year to 48,230, and the number of active agents rose by 6.1% to 423,400.
- Beike's mobile monthly active users averaged 46.2 million.
4. Comments from the Company's Officers
Mr. Stanley Yongdong Peng, Chairman and CEO, emphasized Beike's continued focus on sustainable growth and improvement of the platform's ecosystem through initiatives such as the 'store point-based system.' He cited government policy improvements as key enablers of the recent transaction volume recovery, while remaining optimistic about future growth amid favorable market dynamics.
Mr. Tao Xu, Executive Director and CFO, pointed out the strategic emphasis on the 'one body, three wings' approach, with particular focus on the scaling of home renovation and furnishing and rental services. The CFO highlighted that nearly 38.3% of total net revenues came from these developing sectors, indicative of a vibrant diversification strategy.
5. Share Repurchase Program
The company allocated approximately US$200 million for share repurchases in Q3 2024 and announced that it may purchase up to US$3 billion of its Class A ordinary shares and/or ADSs until August 31, 2025.
6. Forward Guidance
KE Holdings Inc. did not provide any forward guidance for the next quarter or fiscal year.
7. Stock Price Movement
Following the earnings release, KE Holdings Inc. experienced a stock price movement, with a decrease of approximately 1.94%, reflecting market reactions to the earnings report.
These results demonstrate Beike's commitment to evolving its business model to capture opportunities within a transforming market landscape, while underscoring strategic investments in growth and innovation.
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