SouFun Holdings (SFUN) Reports In-Line Q2 EPS; Boosts FY15 Revenue Outlook

SouFun Holdings (NYSE: SFUN) reported Q2 EPS of $0.04, in-line with the analyst estimate of $0.04. Revenue for the quarter came in at $210.9 million versus the consensus estimate of $201 million.

SouFun also has entered into memorandums of understanding ("MOUs") with IDG China Capital Fund III LLP ("IDG") and Carlyle Group (Carlyle) in which IDG, Carlyle, and the management (mainly founder and CEO Vincent Mo) will invest a total amount no more than US$1 billion (of which 50% will be convertible notes) to purchase the company's new Class A ordinary shares and convertible notes. Under the MOUs, The subscription price of the new Class A ordinary shares is US$7.45 per current ADS (i.e. US$37.25 per Class A ordinary share), which represents a 3% premium to the volume-weighted average trading price of the ADS for the 20 trading days preceding August 6, 2015 (inclusive, which was US$7.24 per ADS). Holders of the convertible notes will have the right to convert the Notes into Shares at the price per share equal to 122.5% of the per share purchase price of the new Class A ordinary shares in 7 years after the issuance of the Notes. The Notes shall bear an annual interest of 1.5%.

"The Q2 numbers showed that the company is quite on track in its transformation from a pure internet information platform to a more transaction oriented platform across new, resale, rental homes and home furnishing plus financial services among China's major cities." said Vincent Mo, Chairman and CEO of Fang.com. "We will continue our efforts in building up transaction teams, adding transaction model to more cities, and speeding up development of our technology platforms and tools to support the transformation. I am confident that with our expected funding from IDG and Carlyle, the company will move more aggressively and make its transformation successful."

Guidance:

GMV increased by 306.7% from $1.7 billion in the first quarter of 2015 to $6.8 billion in the second quarter. The following table shows GMV by month for the first six months of 2015.

SouFun Holdings sees FY2015 revenue of $843.4 million, versus prior guidance of $808.3 million and the consensus of $844.8 million.

For earnings history and earnings-related data on SouFun Holdings (SFUN) click here.

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