KE Holdings (BEKE) 2020 Q4 Earnings Results

KE Holdings Inc. (NYSE:BEKE) specializes in providing housing and transaction services to millions of customers through both its online and offline platforms in China. It is considered the biggest real estate platform in China. The company went public in August by selling 106 million shares at $20 apiece for total proceeds of $2.12 billion.

Shares of KE Holdings climbed nearly 20 percent on Tuesday morning after it announced its financial results for the fourth quarter. The company reported earnings of 0.93 yuan per share for the three months ended December 31, as compared to a loss of 7.99 yuan per share in the same period of 2019. On an adjusted basis, KE earned 1.71 yuan per share, versus an adjusted loss of 1.15 yuan per share in the year-ago quarter.

Revenue climbed 57.6 percent on a year-over-year basis to 22.7 billion yuan. If we look at the sales performance of key segments, revenue from existing home transaction services jumped 56.1 percent to 9.2 billion yuan, while revenue from new home transaction services rose 58.8 percent to 12.9 billion yuan.

Commenting on the quarter, CEO Stanley Yongdong Peng said in a statement, “We achieved exceptional growth in 2020, closing the year with solid fourth-quarter operational and financial results. Our massive scale, operating efficiency, and high-quality services, combined with strong network effects, have created a virtuous cycle, spurring a 64.5% year-over-year jump in our full-year GTV to RMB3.5 trillion.”

Looking forward, KE Holdings anticipates revenue in the range of 18.5 billion yuan to 19.5 billion yuan for the first quarter. The outlook translates to a surge of 159.8-173.9 percent from the comparable quarter of 2020.

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