KE Holdings Inc ( BEKE ) shares are trading lower premarket on Thursday after the company reported first-quarter FY25 results.

Net revenues rose 42.4% year-over-year (Y/Y) to 23.3 billion Chinese Yuan ($3.21 billion), beating the consensus of $3.09 billion.

Mobile monthly active users (MAU) averaged 44.5 million in the quarter, vs. 47.7 million a year ago quarter.

Gross transaction value (GTV) reached 843.7 billion Chinese Yuan ($116.3 billion), up 34.0% year-over-year.

GTV existing home transactions grew 28.1% Y/Y to 580.3 billion Chinese Yuan ($80.0 billion), while new home transactions increased 53.0% Y/Y to 232.2 billion Chinese Yuan ($32.0 billion).

Home renovation and furnishing GTV rose 22.3% Y/Y to 2.9 billion Chinese Yuan ($0.4 billion), and home rental services surged 93.8% Y/Y to 5.1 billion Chinese Yuan ($0.7 billion).

Gross profit increased by 17.0% Y/Y to 4.8 billion Chinese Yuan ($0.7 billion).

Gross margin declined to 20.7% from 25.2% due to a lower proportion of net revenues and lower contribution margin from existing home transaction services.

Adjusted EBITDA rose to 1.84 billion Chinese Yuan ($254 million) from 1.67 billion Chinese Yuan in the same period last year.

Adjusted earnings per ADS stood at 1.19 Chinese Yuan. In USD, the adjusted EPS of $0.16 is in line with the consensus.

As of March 31, 2025, cash, cash equivalents, restricted cash and short-term investments stood at 54.8 billion Chinese Yuan ($7.6 billion).

As of March 31, 2025, the number of stores rose to 56,849, an increase of 28.6% Y/Y, with active stores up 29.6% to 55,210.

Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, said, “Building on the stable market performance and the continued effectiveness of our growth strategy, our business maintained strong growth in the first quarter, with our total transaction value increasing by 34.0% year-over-year and net revenues rising by 42.4%.”

”Our housing transaction services continue to significantly outperform the market. Our platform continually empowers more industry partners, with the numbers of active stores and agents increasing notably by 29.6% and 23.0% year-over-year, respectively, and with improvements in both agent and store efficiency.”

Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, “In the first quarter, the market performance was very stable, continuing the positive impact resulting from the policies implemented in September last year. National new home sales remained relatively flat year-over-year in the first quarter, better than the substantial year-over-year decline in the same period last year, and the existing home market remained at a high level in activity.”

Investors can gain exposure to the stock via Global X PropTech ETF ( PTEC ) and Invesco Golden Dragon China ETF ( PGJ )

Price Action: BEKE shares are down 5.44% at $19.13 premarket at the last check on Thursday.

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