In addition to beating Q2 revenue estimates by $9.7M (while posting in-line EPS), E-House (EJ +0.4%) is maintaining full-year guidance for revenue of $910M-$930M (+24%-27%); that's above a $907M consensus.
A 41% Y/Y increase in SG&A spend to $231.2M pressured EPS - E-House attributes the growth to marketing/promotional spend and higher staff-related costs. However, cost of revenue only rose 8%, much less than revenue growth of 29%.
E-House's Leju (LEJU +6.2%) subsidiary beat Q2 revenue estimates (while slightly missing on EPS) on the back of a 159% Y/Y increase in e-commerce services revenue to $68.3M. Its online ad revenue rose just 11% to $44.5M, and its listing services revenue fell 16% to $4.2M.
E-House's real estate brokerage services revenue was nearly flat at $65.5M. Its information/consulting services revenue rose 9% to $17.9M, and its other services revenue fell 2% to $9.4M.
Leju is maintaining full-year guidance for revenue of $500M-$520M (+49%-55%); that's above a $495.8M consensus.
Much like SouFun, E-House/Leju have been contending with Chinese real estate softness and listing fee price pressure.