KE Holdings Inc. Announces Third Quarter 2024 Unaudited Financial Results

Core Insights - KE Holdings Inc. reported a strong financial performance in Q3 2024, with significant year-over-year growth in gross transaction value (GTV) and net revenues, indicating a recovery in the housing market and effective business strategies [2][8][30]. Business and Financial Highlights - Gross transaction value (GTV) reached RMB736.8 billion (US$105.0 billion), up 12.5$3.2 billion), primarily due to growth in new home transaction services and expansion in home renovation and furnishing [8][30]. - Net income was RMB1,168 million (US$167 million), slightly down from RMB1,170 million in Q3 2023, while adjusted net income was RMB1,782 million (US$254 million) [30][31]. - The number of stores increased by 12.1% to 48,230, and the number of active agents rose by 11.0% to 476,420, reflecting the company's expanding operational footprint [2][8]. Segment Performance - Existing home transaction services generated net revenues of RMB6.2 billion (US$0.9 billion), relatively stable compared to the previous year, while GTV increased by 8.8$1.1 billion), supported by an 18.4% increase in GTV [11][12]. - Home renovation and furnishing revenues increased by 32.6% to RMB4.2 billion (US$0.6 billion), driven by synergies with home transaction services [12]. - Home rental services experienced a significant growth of 118.4$0.6 billion) [13]. Cost and Profitability - Total cost of revenues increased by 35.0% to RMB17.4 billion (US$2.5 billion), impacting gross profit, which rose by only 5.2$0.7 billion) [14][21]. - Gross margin decreased to 22.7% from 27.4% year-over-year, attributed to a lower contribution from higher-margin existing home transaction services [21][25]. - Operating income was RMB727 million (US$104 million), down from RMB911 million in the same period last year, with an operating margin of 3.2$8.5 billion) in cash, cash equivalents, and short-term investments as of September 30, 2024 [34]. - Approximately US$200 million was allocated for share repurchases in Q3 2024, reflecting the company's commitment to returning value to shareholders [6][35].