Tencent-backed Real Estate Broker Beike Posts 14.6% Revenue Growth in 2021

Real Estate Author: Yiru Qian Editor: Tao Ni Mar 10, 2022 11:59 PM (GMT+8)

Tao Xu, Executive Director and CFO of Beike, said the growth for the full year 2021 was “top-line performance”

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According to the domestic real estate brokerage brand KE Holdings Inc. or Beike’s (BEKE:NYSE) financial announcement for the fourth quarter and fiscal year ended December 31, 2021: 

- Net revenues achieved CNY 17.8 billion (USD 2.8 billion) in Q4 2021, showing a decrease of 21.5% year-over-year. 

- In the fourth quarter of 2021, net loss was CNY 933 million (USD 146 million). Adjusted net income was CNY 42 million (USD 7 million). 

- Net revenues in FY 2021 were CNY 80.8 billion (USD 12.7 billion), increasing by 14.6% compared with the same period the previous year. 

- For the fiscal year of 2021, the net loss was CNY 525 million (USD 82 million). And the adjusted net income reported was CNY 2,294 million (USD 360 million).

- In terms of different business segments, net revenue from existing home transaction services was CNY 31.9 billion in 2021 compared to CNY 30.6 billion in 2020; net revenue from new home transaction services increased 22.5% to CNY 46.5 billion; and the number from emerging and other services increased 17.9% to CNY 2.3 billion.

- In the fourth quarter of 2021, gross transaction value (GTV) was CNY 732.4 billion (USD 114.9 billion). And that of 2021 was CNY 3,853.5 billion (USD 604.7 billion), presenting an increase of 10.1% year-over-year. 

- As of December 31, 2021, the number of stores and active stores was 51,038 (+8.7%) and 45,339 (+4.4%), respectively, compared with the previous year.

- As of December 31, 2021, the number of agents and active agents was 454,504 (-7.8%) and 406,794 (-8.7%), respectively, compared with the previous year.

Beike officially launched “one body, two wings” strategic upgrade at the end of 2021. 

“‘One body’ refers to our core, which is our existing and new home transaction services business, while ‘two wings’ refers to our home renovation and furnishing offering, and our inclusive housing services,” Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, explained. “We will strive forward in 2022 to become a one-stop housing-related services provider that makes home a better place.”

For the first quarter of 2022, the company expects total net revenue to be between CNY 11.5 billion (USD 1.8 billion) and CNY 12.5 billion (USD 2.0 billion), representing a decrease of approximately 39.6% to 44.4% from the same quarter of 2021.

Since 2014, it has received four rounds of funding, raising almost CNY 30 billion. After the Series D+ funding in March 2020, the market estimated Beike's valuation hadexceeded USD 14 billion.

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As of press time, Beike’s stock price closed at USD 14.46, with a market cap of USD 17.72 billion

Similar real estate brokerage companies include Zillow (ZG:NASDAQ), Redfin (RDFN:NASDAQ), 58.com (WUBA:NYSE), Fangdd (DUO:NASDAQ) and Leju (LEJU:NYSE).