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

Net revenues rose 26.8% year-over-year to RMB22.6 billion ($3.2 billion), missing the consensus of RMB23.46 billion.

Mobile monthly active users (MAU) averaged 46.2 million in the quarter, down from 49.2 million in the same period of 2023.

Gross transaction value (GTV) reached RMB736.8 billion ($105.0 billion), up 12.5% year-over-year, driven by growth across all segments.

Existing home transactions grew 8.8% to RMB477.8 billion ($68.1 billion), while new home transactions increased 18.4% to RMB227.6 billion ($32.4 billion).

Home renovation and furnishing GTV rose 24.6% to RMB4.1 billion ($0.6 billion), and emerging and other services surged 31.9% to RMB27.3 billion ($3.9 billion).

Gross profit increased by 5.2% year-over-year to RMB5.1 billion ($0.7 billion). However, gross margin declined to 22.7% from 27.4% due to a reduced share of higher-margin existing home transaction services in net revenues and increased fixed compensation costs as a percentage of revenues in this segment.

Adjusted EBITDA declined to RMB2.154 billion ($307 million) from RMB2.515 billion in the same period last year.

Adjusted earnings per ADS stood at RMB1.53 ($0.22), missing the consensus of RMB1.57.

As of September 30, 2024, the number of stores rose to 48,230, a 12.1% increase year-over-year, with active stores up 14.6% to 46,857.

As of September 30, 2024, cash, cash equivalents, restricted cash and, short-term investments stood at RMB59.5 billion ($8.5 billion).

Buyback: As of September 30, 2024, the company has repurchased approximately 102.2 million ADSs for around $1.49 billion under its share repurchase program.

Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, said, “In our housing transaction services, we are actively pursuing growth while also committed to fostering a more harmonious ecosystem. Through initiatives such as the ‘store point-based system’, we’re helping store owners achieve better returns and benefit from the platform’s value, ultimately enhancing their level of satisfaction with the platform.”  

”Meanwhile, we have officially upgraded our management governance framework, adopting a mechanism of clear responsibilities and collective leadership to deliberate and plan key strategies and matters, ensuring steady and sustainable growth for the Company.”

Tao Xu, Executive Director and Chief Financial Officer, added, “The market in the third quarter of this year gradually retreated following the pulse-like rebound fueled by the intensive supportive policies released in May. The existing home market was relatively stable, while the new home market was still in a bottoming stage with weak supply and demand.”

Investors can gain exposure to the stock via Global X PropTech ETF ( PTEC ) and KraneShares Trust KraneShares CSI China Internet ETF .

Price Action: BEKE shares are down 6.62% at $18.89 premarket at the last check Thursday.

Image via Shutterstock

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