FangDD Reports Fourth Quarter and Full Year 2019 Unaudited Financial Results
Fourth Quarter 2019 Financial Highlights
- Revenue increased by 50.0% year over year to
RMB1,047.2 million (US$150.4 million ) in the fourth quarter of 2019. - Net loss was
RMB691.0 million (US$99.3 million ) in the fourth quarter of 2019. - Non-GAAP1 net income grew by 36.9% year over year to
RMB54.9 million (US$7.9 million ) in the fourth quarter of 2019.
Full Year 2019 Financial Highlights
- Revenue increased by 57.7% year over year to
RMB3,599.4 million (US$517.0 million ) in 2019. - Net loss was
RMB510.4 million (US$73.3 million ) in 2019. - Non-GAAP net income grew by 126.4% year over year to
RMB235.5 million (US$33.8 million ) in 2019.
Fourth Quarter 2019 Operating Highlights
- The number of active agents2 in the Company’s marketplace was 238.2 thousand in the fourth quarter of 2019, representing an increase of 39.8% year over year from 170.4 thousand in the same period of 2018.
- The number of closed-loop agents3 was 26.8 thousand in the fourth quarter of 2019, representing an increase of 70.7% year over year from 15.7 thousand in the same period of 2018.
- Total closed-loop GMV4 facilitated on the Company’s platform increased by 75.1% year over year to
RMB68 .1 billion (US$9.78 billion ) in the fourth quarter of 2019 fromRMB38.9 billion in the same period of 2018. New property listings and secondary sales listings contributedRMB42 .0 billion (US$6.0 billion ) andRMB26 .1 billion (US$ 3.7 billion ), respectively, to the total closed-loop GMV in the fourth quarter of 2019.
Full year 2019 Operating Highlights
- The number of active agents2 in the Company’s marketplace was 443.3 thousand in 2019, representing an increase of 39.7% year over year from 317.3 thousand in 2018.
- The number of closed-loop agents3 was 60.4 thousand in 2019, representing an increase of 52.9% year over year from 39.5 thousand in 2018.
- Total closed-loop GMV4 facilitated on the Company’s platform increased by 85.1% year over year to
RMB210 .5 billion (US$ 30.2 billion ) in 2019 fromRMB113.7 billion in 2018. New property listings and secondary sales listings contributedRMB 147.1 billion (US$ 21.1 billion ) andRMB 63.4 billion (US$9.1 billion ), respectively, to the total closed-loop GMV in 2019.
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1 Non-GAAP net income is defined as net income excluding share-based compensation expenses. For more information on these non-GAAP financial measures, please see the section captioned “Non-GAAP Financial Measures” and the tables captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this release.
2 “Active agents” refer to real estate agents who have visited the Company’s marketplace and used one or more of its functions within a period of time.
3 Closed-loop agents refer to real estate agents who have completed closed-loop transactions in the Company’s marketplace under the Company’s monitoring and control.
4 “Closed-loop GMV” refers to the GMV of closed-loop transactions facilitated in our marketplace during the specified period.
Mr.
Mr.
Ms. Jiaorong Pan, Chief Financial Officer of FangDD, added, “In the fourth quarter of 2019, we maintained our strong growth momentum and delivered a solid financial performance. Importantly, our better-than-expected top-line results in the period were driven by the expansion of our agent base and property listings, which enabled us to facilitate a higher commission-based GMV during the quarter. Additionally, our initiatives to optimize our cost structures have also started to yield results. For example, during the fourth quarter of 2019, our non-GAAP operating income increased by 102.0% to
Fourth Quarter 2019 Financial Results
REVENUE
Revenue in the fourth quarter of 2019 increased by 50.0% to
COST OF REVENUE
Cost of revenue in the fourth quarter of 2019 increased by 51.0% to
GROSS PROFIT
Gross profit in the fourth quarter of 2019 increased by 46.3% to
OPERATING EXPENSES
Operating expenses in the fourth quarter of 2019, including share-based compensation expenses of
- Sales and marketing expenses in the fourth quarter of 2019 decreased by 34.2% to
RMB17.1 million (US$2.5 million ) fromRMB26.0 million in the same period of 2018. The decrease in sales and marketing expenses was primarily due to the reduction in spending on brand promotion and marketing activities. - Product development expenses in the fourth quarter of 2019 were
RMB506.8 million (US$72.8 million ) compared toRMB53.5 million in the same period of 2018. The increase in product development expenses was mainly attributable to share-based compensation expenses ofRMB435.1 million (US$62.5 million ) in the fourth quarter of 2019. The remaining increase ofRMB18.2 million (US$2.6 million ) in product development expenses was primarily due to higher personnel-related expenses, resulting from the increase in average compensation of product development personnel in the fourth quarter of 2019 as the Company sought to enhance its technological infrastructure to attract and retain more agents. - General and administrative expenses in the fourth quarter of 2019 were
RMB375.9 million (US$54.0 million ), compared toRMB37.0 million in the same period of 2018. The increase in general and administrative expenses was mainly driven by share-based compensation expenses ofRMB310.8 million (US$44.6 million ) in the fourth quarter of 2019. The remaining increase ofRMB28.1 million (US$4.0 million ) in general and administrative expenses was primarily attributable to (1) increases in headcount and average compensation during the fourth quarter of 2019 due to the rapid growth of the Company's business; (2) an increased headcount to improve the Company's corporate governance and ensure compliance in associate with its status of a US-listed company, as well as certain listing expenses following the listing of the Company; and (3) an increase in provision for doubtful debtors which was in line with the rapid growth of the Company’s business.
INCOME(LOSS) FROM OPERATIONS
Loss from operations in the fourth quarter of 2019 was
Non-GAAP income from operations5 in the fourth quarter of 2019 was
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5 Non-GAAP income from operations is defined as income from operations excluding share-based compensation expenses.
NET INCOME(LOSS)
Net loss in the fourth quarter of 2019 was
Non-GAAP net income in the fourth quarter of 2019 was
NET LOSS PER ADS
Basic and diluted net loss attributable to ordinary shareholders per American Depositary Share (“ADS”) in the fourth quarter of 2019 were both
Full Year 2019 Financial Results
REVENUE
Revenue in 2019 increased by 57.7% to
COST OF REVENUE
Cost of revenue in 2019 increased by 57.4% to
GROSS PROFIT
Gross profit in 2019 increased by 58.8% to
OPERATING EXPENSES
Operating expenses in 2019, including share-based compensation expenses of
- Sales and marketing expenses in 2019 decreased by 18.1% to
RMB48.4 million (US$7.0 million ) fromRMB59.1 million in 2018. - Product development expenses in 2019 were
RMB725.0 million (US$104.1 million ) compared toRMB202.9 million in 2018. Product development expenses in 2019 included share-based compensation expenses ofRMB435.1 million (US$62.5 million ). - General and administrative expenses in 2019 were
RMB520.4 million (US$74.8 million ) compared toRMB145.3 million in 2018. General and administrative expenses in 2019 included share-based compensation expenses ofRMB310.8 million (US$44.6 million ).
INCOME(LOSS) FROM OPERATIONS
Loss from operations in 2019 was
Non-GAAP income from operations in 2019 was
NET INCOME(LOSS)
Net loss in 2019 was
NET LOSS PER ADS
Basic and diluted net loss attributable to ordinary shareholders per ADS in 2019 were both
Liquidity
As of
On
Business Outlook
For the first quarter of 2020, the Company expects its revenue to be between
Conference Call Information
The Company’s management team will hold a Direct Event conference call on
Event Title: | Fangdd Network Group Ltd Fourth Quarter and Full Year 2019 Earnings Conference Call |
Conference ID: | #10005221 |
Registration Link: | https://s1.c-conf.com/diamondpass/10005221-invite.html |
Due to the global outbreak of the novel coronavirus, operator assisted conference calls are not available at the moment. All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique access PIN, which can be used to join the conference call.
A replay of the conference call will be accessible through
+1-855-883-1031 | |
800-930-639 | |
Replay Code: | #10005221 |
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.fangdd.com/.
Exchange Rate
This press release contains translations of certain Renminbi amounts into
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in
About FangDD
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
Investor Relations Contact
FangDD
Ms.
Director,
Phone: +86-0755-2699-8968
E-mail:ir@fangdd.com
Phone: +1(646) 308-1649
E-mail: FangDD@icrinc.com
SELECTED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DATA
(All amounts in thousands, except for share and per share data)
As of |
||||
2018 | 2019 |
|||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | 443,586 | 1,103,747 | ||
Restricted cash | 350,632 | 230,125 | ||
Short-term investments | 71,483 | 11,500 | ||
Accounts receivable, net | 1,352,596 | 2,189,980 | ||
Prepayments and other current assets | 210,996 | 194,668 | ||
Total current assets | 2,429,293 | 3,730,020 | ||
Total assets | 2,879,284 | 4,372,125 | ||
LIABILITIES | ||||
Current liabilities | ||||
Short-term bank borrowings | 395,000 | 490,000 | ||
Accounts payable | 1,128,248 | 1,897,611 | ||
Customers’ refundable fees | 41,697 | 44,916 | ||
Accrued expenses and other payables | 425,470 | 338,626 | ||
Income tax payable | 369 | 7 | ||
Total current liabilities | 1,990,784 | 2,771,160 | ||
Total liabilities | 2,003,430 | 2,783,070 | ||
Total mezzanine equity | 2,743,144 | - | ||
Total shareholders' (deficit) equity | (1,867,290 | ) | 1,589,055 | |
Total liabilities, mezzanine equity and (deficit) equity | 2,879,284 | 4,372,125 | ||
SELECTED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) DATA
(All amounts in thousands, except for share and per share data)
For the Three Months Ended |
For the Fiscal Year Ended |
||||||||
2018 |
2019 |
2018 |
2019 |
||||||
RMB | RMB | RMB | RMB | ||||||
Revenue | 698,182 | 1,047,235 | 2,282,216 | 3,599,436 | |||||
Cost of revenue | (551,698 | ) | (832,755 | ) | (1,805,588 | ) | (2,842,394 | ) | |
Gross profit | 146,484 | 214,480 | 476,628 | 757,042 | |||||
Operating expenses: | |||||||||
Sales and marketing expenses | (26,005 | ) | (17,095 | ) | (59,099 | ) | (48,395 | ) | |
Product development expenses | (53,512 | ) | (506,766 | ) | (202,877 | ) | (724,983 | ) | |
General and administrative expenses | (37,006 | ) | (375,868 | ) | (145,277 | ) | (520,421 | ) | |
Total operating expenses | (116,523 | ) | (899,729 | ) | (407,253 | ) | (1,293,799 | ) | |
Income (loss) from operations | 29,961 | (685,249 | ) | 69,375 | (536,757 | ) | |||
Net income (loss) | 40,059 | (691,002 | ) | 104,026 | (510,387 | ) | |||
Accretion of Redeemable Convertible Preferred Shares | (67,576 | ) | (582 | ) | (248,186 | ) | (116,308 | ) | |
Deemed dividend to preferred shareholder | - | (642,174 | ) | - | (642,174 | ) | |||
Net loss attributable to ordinary shareholders | (27,517 | ) | (1,333,758 | ) | (144,160 | ) | (1,268,869 | ) | |
Net income (loss) | 40,059 | (691,002 | ) | 104,026 | (510,387 | ) | |||
Other comprehensive (loss) income | |||||||||
Foreign currency translation adjustment, net of tax | (15,443 | ) | 20,128 | (119,487 | ) | (94,357 | ) | ||
Total comprehensive income (loss), net of tax | 24,616 | (670,874 | ) | (15,461 | ) | (604,744 | ) | ||
Net loss per share attributable to ordinary shareholders | |||||||||
- Basic | (0.03 | ) | (0.88 | ) | (0.15 | ) | (1.17 | ) | |
- diluted | (0.03 | ) | (0.88 | ) | (0.15 | ) | (1.17 | ) | |
Net loss per ADS attributable to ordinary shareholders | |||||||||
- Basic | (0.75 | ) | (22.00 | ) | (3.75 | ) | (29.25 | ) | |
- diluted | (0.75 | ) | (22.00 | ) | (3.75 | ) | (29.25 | ) | |
Weighted average number of ordinary shares used in computing net loss per share, basic and diluted | |||||||||
- Basic | 945,712,030 | 1,520,879,947 | 945,712,030 | 1,087,910,999 | |||||
- diluted | 945,712,030 | 1,520,879,947 | 945,712,030 | 1,087,910,999 | |||||
Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands, except for share and per share data)
For the Three Months Ended |
For the Fiscal Year Ended |
||||||||
2018 |
2019 |
2018 | 2019 | ||||||
GAAP income/(loss) from operations | 29,961 | (685,249 | ) | 69,375 | (536,757 | ) | |||
Share-based compensation expenses | - | 745,873 | - | 745,873 | |||||
Non-GAAP income from operations | 29,961 | 60,624 | 69,375 | 209,116 | |||||
GAAP net income/(loss) | 40,059 | (691,002 | ) | 104,026 | (510,387 | ) | |||
Share-based compensation expenses | - | 745,873 | - | 745,873 | |||||
Non-GAAP net income | 40,059 | 54,871 | 104,026 | 235,486 | |||||
GAAP operating margin | 4.3% | (65.4% | ) | 3.0% | (14.9% | ) | |||
Share-based compensation expenses | - | 71.2% | - | 20.7% | |||||
Non-GAAP operating margin | 4.3% | 5.8% | 3.0% | 5.8% | |||||
GAAP net margin | 5.7% | (66.0% | ) | 4.6% | (14.2% | ) | |||
Share-based compensation expenses | - | 71.2% | - | 20.7% | |||||
Non-GAAP net margin | 5.7% | 5.2% | 4.6% | 6.5% | |||||
Source: Fangdd Network Group Ltd