BEIJING - KE Holdings Inc. (NYSE:BEKE) reported third quarter results that fell short of analyst expectations, sending shares down 5.7% in premarket trading Thursday.
The Chinese real estate platform posted adjusted earnings per ADS of $1.53, missing estimates of $1.55. Revenue rose 26.8% year-over-year to RMB22.6 billion ($3.2 billion), but came in below the consensus forecast of RMB22.85 billion.
While overall revenue growth was strong, KE Holdings saw weakness in its core existing home transaction services segment. Revenue from that business was relatively flat at RMB6.2 billion compared to RMB6.3 billion a year ago.
The company's newer business lines showed more robust growth. Revenue from home renovation and furnishing jumped 32.6% to RMB4.2 billion, while home rental services revenue more than doubled to RMB3.9 billion.
"In the third quarter of 2024, we continued to demonstrate proactive and sustainable growth momentum. Against the backdrop of market adjustments, each of our business lines achieved solid results," said Stanley Yongdong Peng, Chairman and CEO of KE Holdings.
Gross transaction value (GTV) increased 12.5% year-over-year to RMB736.8 billion. GTV of existing home transactions rose 8.8%, while new home transaction GTV grew 18.4%.
The company ended the quarter with RMB59.5 billion ($8.5 billion) in cash, cash equivalents, restricted cash and short-term investments.
Despite the earnings miss, KE Holdings said it saw promising initial results from supportive government policies introduced in late September, with transaction volumes rebounding significantly in October.
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