AutoHome Inc. ((ATHM)) has held its Q2 earnings call. Read on for the main highlights of the call.
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AutoHome Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company celebrated significant milestones in expanding its retail franchise, boosting mobile user engagement, and growing its international business. However, these achievements were tempered by declines in profitability and gross margin, alongside challenges in media services revenue due to industry price wars.
Expansion of New Retail Franchise Stores
AutoHome Inc. has made impressive strides in expanding its retail franchise stores, with the number surpassing 200. This expansion has broadened the company’s service coverage, allowing it to reach a wider consumer base and strengthen its market presence.
Growth in Mobile Daily Active Users (DAUs)
The company reported a notable increase in mobile daily active users, reaching 75.74 million in June 2025. This represents an 11.5% growth from the previous year, highlighting the sustained growth in user engagement and the expanding influence of AutoHome’s platform.
Increase in NEV Revenues
AutoHome’s revenues from new energy vehicles (NEVs) have shown significant growth, with a 27% increase from the previous year. This growth reflects the company’s successful integration of its new retail business into its NEV strategy.
International Expansion
A key highlight of the earnings call was the launch of the international version of the AutoHome website. Featuring over 1,900 vehicle models from 52 Chinese automobile brands, this launch marks a critical step in the company’s international business expansion.
Strong Cash Position and Share Repurchase
AutoHome maintains a robust financial position, with cash, cash equivalents, and short-term investments totaling CNY 22.05 billion as of June 30, 2025. The company has also repurchased approximately USD 142 million in shares under its authorized program, demonstrating confidence in its financial health.
Decrease in Operating Profit
The earnings call revealed a decline in operating profit, which stood at CNY 297 million for the second quarter, down from CNY 412 million in the same period of 2024. This decrease reflects challenges in maintaining profitability amid changing market conditions.
Reduced Gross Margin
AutoHome reported a reduced gross margin of 71.4% for the second quarter, a decline from 81.5% in the previous year. This reduction is indicative of the pressures facing the company in maintaining its cost structure.
Decline in Adjusted Net Income
The company’s adjusted net income attributable to AutoHome was CNY 476 million, down from CNY 572 million in the corresponding period of 2024. This decline highlights the challenges AutoHome faces in sustaining its net income levels.
Challenges in Media Services Revenue
The ongoing price war in the auto industry has adversely affected OEM advertising budgets, impacting AutoHome’s media services revenue. However, the company anticipates a recovery with potential government interventions.
Forward-Looking Guidance
Looking ahead, AutoHome remains optimistic about its strategic developments. The company continues to expand its retail franchise and increase mobile user engagement. With a 27% growth in NEV revenue and a 20.5% year-over-year increase in net revenues, AutoHome is poised to leverage these strengths for future growth. The company also plans to continue its share repurchase program, reflecting confidence in its long-term prospects.
In summary, AutoHome Inc.’s earnings call presented a balanced view of achievements and challenges. While the company has made significant progress in expanding its retail and international presence, it faces hurdles in profitability and media services revenue. Stakeholders remain optimistic about the company’s strategic direction and future growth potential.