KE Holdings Posts 55% Gross Transaction Value Surge In Q4, But EPS Miss And Margin Decline Weigh On Stock

KE Holdings Inc BEKE shares are trading lower premarket on Tuesday after the company reported fourth-quarter results.

Net revenues rose 54.1% year-over-year to 31.1 billion Chinese Yuan ($4.26 billion), beating the consensus of $4.01 billion.

Mobile monthly active users (MAU) averaged 43.2 million in the quarter, relatively flat Y/Y.

Gross transaction value (GTV) reached 1.14 trillion Chinese Yuan ($156.7 billion), up 55.5% year-over-year, driven by growth across all segments.

GTV existing home transactions grew 59.1% Y/Y to 744.8 billion Chinese Yuan ($102.0 billion), while new home transactions increased 49.3% Y/Y to 355.3 billion Chinese Yuan ($48.7 billion).

Home renovation and furnishing GTV rose 34.7% Y/Y to 5.3 billion Chinese Yuan ($0.7 billion), and emerging and other services surged 50.0% Y/Y to 38.3 billion Chinese Yuan ($5.3 billion).

Gross profit increased by 39.4% Y/Y to 7.2 billion Chinese Yuan ($1.0 billion). Gross margin declined to 23.0% from 25.5% due to a reduced contribution margin from existing home transaction services and lower contribution margin from emerging and other services.

Adjusted EBITDA rose to 2.34 billion Chinese Yuan ($321 million) from 1.70 billion Chinese Yuan in the same period last year.

Adjusted earnings per ADS stood at 1.19 Chinese Yuan. In USD, adjusted EPS of $0.16 missed the consensus of $0.26.

As of December 31, 2024, cash, cash equivalents, restricted cash and short-term investments stood at 61.6 billion Chinese Yuan ($8.4 billion).

As of December 31, 2024, the number of stores rose to 51,573, a 17.7% increase Y/Y, with active stores up 18.3% to 49,693. In 2024, the company repurchased shares worth $716 million.

Dividend: The company disclosed that its board of directors has approved a final cash dividend of $0.12 per ordinary share, or $0.36 per ADS, to holders of ordinary shares and holders of ADSs of record as of April 9, 2025.

Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, said, ”Our Beihaojia business explored driving product strength and reduce risks in the new home industry through the C2M (customer to manufacturing) model.”

Investors can gain exposure to the stock via Global X PropTech ETF PTEC and Davis Fundamental ETF Trust Davis Select International ETF DINT.

Price Action: BEKE shares are down 2.27% at $24.52 premarket at the last check Tuesday.

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