Leju Holdings Ltd (ADR) (NYSE:LEJU) recently announced its unaudited financial results for 3Q14. China’s leading online-to-offline real estate services provider witnessed strong 63% YoY growth in its e-commerce services revenues to $84.2 million during the quarter. The company’s partnerships with property developers fuelled strong growth in discount coupons redemption and e-commerce business.
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The online advertising services revenues increased about 4% YoY to $41.8 million, primarily attributed to growth in new home and home furnishing channels. However, slowdown in secondary home sales resulted in 60% decline in listing services revenues, which amounted to $2.3 million. Total revenues increased 32% YoY to $128.3 million.
Leju Holdings Ltd (ADR) (NYSE:LEJU)’s net income increased 19% YoY to $26.4 million during 3Q14 as compared to $22.1 million in 3Q13. Net income attributable to the company’s shareholders increased to $25.7 million during 3Q14 from$21.9 million in 3Q13.
Despite strong 3Q14 results, the company cut is full-year FY14 revenue guidance to $470 – $490 million from previous forecast of $500 – $520 million. The revised estimates took into account significant decline in listing services business. The revised FY14 guidance still represents about 40% to 46% revenue growth as compared to FY13 revenues of $335.4 million.
Mr. Geoffrey He, CEO of Leju Holdings Ltd (ADR) (NYSE:LEJU), noted that the company succeeded to report strong results despite challenging market conditions during 3Q14. The company is focusing on e-commerce services execution with product innovations initiatives. In addition, the company also put into place an integrated mobile marketing eco-system, which received good responses from both developer clients as well as mobile users.
Solid execution and improved operating efficiency helped the company sustained its profitability and operating cash flow during the quarter.
Despite significant challenges, the company also expanded its national network for listing services during the quarter. It underscores the company’s commitment to build informational portal to deliver comprehensivesecondary housing information.