Fang Holdings Limited (NYSE: SFUN) missed revenue and earnings estimates for the third quarter of 2019. The consensus target was for earnings of $0.02 per share on revenue of $70 million.
The company reported total revenues of $67.6 million, up 11.8% from last year, helped by increases in marketing and leads generation services.
Net income fell 92.8% to $0.7 million, or $0.01 per share, versus the prior-year period. Last year’s earnings results benefited from income tax benefits of $5.4 million.
CEO Jian Liu said, “Our marketing and leads generation services continued to generate growth for our business. The main drivers behind this growth are our emphasis on new technology and data-driven applications. We are optimistic for the remainder of the year as well as next year, as we continue our focus on the core internet marketing, listing, and leads generation business lines.”
During the quarter, revenue from marketing services increased 16.1% to $30 million compared to the year-ago period, driven by customer development efforts. Revenue from leads generation services jumped 181% to $14.1 million, aided by effective service and customer development.
Revenue from listing services fell 3.7% to $19.4 million while revenue from financial services dropped nearly 70% to $1.7 million due to a decrease in average loan receivable balances.
Operating expenses decreased 3.2% to $35.1 million, mainly due to a decrease in staff costs.
Based on current operations and market conditions, Fang remains confident that net income is expected to be positive for fiscal year 2019.
Fang announced the resignation of Mr. Qian Zhao from the Board, effective November 18. Although the reason for Mr. Zhao’s resignation was not disclosed, the company stated it was not due to any disagreement. Additionally, Ms. Hong Qin was appointed as an independent director of the Board.