China-based automotive vertical AutoHome saw net revenue increase 4.2% year-on-year (y-o-y) to RMB1.5 billion ($223 million U.S.) during the first three months of 2023, mainly driven by automaker advertising, according to its earnings announcement.
However, revenue from its online marketplace fell slightly, to RMB492 million in Q1 2023 from RMB496 million in the year-earlier period. Revenue from lead generation services fell to RMB681 million from RMB708 million.
With operating expenses declining during the first quarter, the company’s operating profit rose by 17.2% y-o-y to RMB263 million ($38.3 million).
AutoHome’s net income increased to RMB406 million ($59.0 million) from RMB318 million.
“We delivered a solid performance in the first quarter, as total revenues increased by 4% year-over-year, led by strong growth in our media services. Notably, revenues from TTP Car Inc. and data products resumed their upward trajectory, and revenue contribution from new energy vehicle brands continued to rise significantly, with a growth rate that once again outperformed the market,” said CFO Craig Yan Zeng.
“In addition, the first quarter saw a rapid upward trend in all of our key indicators for our data products for dealers. The number of dealer customers for data products, the average revenue of data products per dealer store and the average number of data products adopted by each dealer store all grew by double-digits compared to the prior-year period.”
Founded in 2008, AutoHome is the leading auto vertical dealing in both new and used cars in China, ahead of the likes of Yiche.com and Dongchedi.com. By revenue, AutoHome is the world’s largest auto marketplace, according to the AIM Group’s rankings.