KE Holdings Inc Reports Strong Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-12
KE Holdings Inc. Reports Strong Second Quarter 2024 Financial Results
Overview BEIJING, Aug. 12, 2024 (GLOBE NEWSWIRE) -- KE Holdings Inc. ("Beike" or the "Company") (NYSE: BEKE), a leading integrated online and offline platform for housing transactions and services, announced its unaudited financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Wall Street Consensus |
|---|---|---|---|---|
| Total Revenue | $3.2 billion | $2.6 billion | +19.9% | $3.09 billion |
| Net Income | $262 million | $179 million | +46.2% | N/A |
| Adjusted Net Income | $371 million | $326 million | +13.9% | N/A |
| Earnings Per Share (EPS) | $0.22 | $0.16 | +37.5% | $0.21 |
| Adjusted EPS | $0.31 | $0.28 | +10.7% | N/A |
KE Holdings Inc. exceeded consensus estimates on both revenue and EPS for Q2 2024. Year-over-year, the company saw significant growth in both net income (+46.2%) and total revenue (+19.9%).
Segment Revenue Performance
| Segment | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Existing Home Transactions | $1.0 billion | $0.8 billion | +14.3% |
| New Home Transactions | $1.1 billion | $1.3 billion | -8.8% |
| Home Renovation and Furnishing | $0.6 billion | $0.4 billion | +53.9% |
| Home Rental Services | $0.4 billion | $0.15 billion | +167.1% |
| Emerging and Other Services | $0.1 billion | $0.08 billion | +12.5% |
The existing home transaction segment achieved a 14.3% increase, driven by a substantial 25% growth in gross transaction value. However, new home transactions saw an 8.8% decline. The home renovation and furnishing along with home rental services segments experienced robust growth of 53.9% and 167.1%, respectively, indicating diversification in revenue streams.
Operational Data
| Operational Metric | Q2 2024 | YoY Change |
|---|---|---|
| Number of Stores | 45,948 | +6.9% |
| Number of Active Stores | 44,423 | +8.1% |
| Number of Agents | 458,690 | +5.2% |
| Number of Active Agents | 411,478 | Relatively flat |
| Mobile Monthly Active Users (MAU) | 49.7 million | +3.5% |
Comments from Company Officers
Mr. Stanley Yongdong Peng, Chairman and CEO, emphasized the company’s operational enhancements and scientific management measures, attributing them to the high-quality results. He noted notable improvements in existing home transaction services and extended capabilities in home renovation and furnishing services. Mr. Tao Xu, Executive Director and CFO, highlighted the company's profitability improvements and reiterated their focus on operational efficiency and shareholder returns.
Share Repurchase Program
KE Holdings announced an upsizing and extension of its share repurchase program from $2 billion to $3 billion, extending it until August 31, 2025. The company has already repurchased shares worth approximately $1.3898 billion in 2024, accounting for about 2.75% of the total issued shares at the end of 2023.
Forward Guidance
The company did not provide specific forward guidance for the upcoming quarters.
Stock Price Movement
Following the earnings release, KE Holdings Inc. saw a stock price increase of approximately 2.53%.
The data provided in this earnings summary is based on KE Holdings Inc.'s Q2 2024 earnings release. All financial figures are translated at the exchange rate of RMB7.2672 to US$1.00.
