KE (BEKE) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenues reached RMB 23.4 billion, up 19.9% year-over-year, driven by strong growth in existing home transactions and non-housing services.

• GAAP net income was RMB 1.9 billion, up 46.2% year-over-year; non-GAAP net income grew 13.9% to RMB 2.69 billion.

• Gross margin improved to 27.9%, up 0.5 percentage points year-over-year.

• Total GTV for Q2 was RMB 839 billion, up 7.5% year-over-year, with existing home GTV up 25% and new home GTV down 20.2%.

• Share repurchase program upsized to US$3 billion and extended to August 2025.

Financial highlights

• Net revenues were RMB 23.4 billion, a 19.9% year-over-year increase.

• Gross profit grew 22% year-over-year to RMB 6.5 billion; gross margin reached 27.9%.

• Operating income rose to RMB 2,015 million; operating margin increased to 8.6%.

• Adjusted EBITDA was RMB 3,372 million, up from RMB 2,505 million year-over-year.

• Net operating cash inflow was RMB 4.8 billion in Q2.

Outlook and guidance

• Continued focus on expanding non-housing transaction services, improving operational efficiency, and digitalization.

• Existing home market expected to remain stable in the second half as high base effects diminish.

• Transaction volumes in first-tier cities likely to stabilize after recent spikes, with policy changes remaining a key variable.

• Management expects further validation of home renovation and rental business models.