Fangdd Reports 58% Revenue Growth for 2019; Shares Soar 13%
China's leading property management company said it served 443,000 property agents last year.
Shares in Fangdd Network Group Ltd. (Nasdaq: DUO) soared 13% by midday Tuesday after the company reported impressive revenue growth for 2019.
The Chinese property technology company posted 50% revenue growth for the year-end quarter, at $150.4 million, on net loss of $99.3 million, or $3.16 per American depositary share.
For the full year 2019, Fangdd reported revenues of $517 million, a 58% increase from 2018. Net loss was $73.3 million, according to the statement.
The company said 443,000 real estate agents used its platform last year, representing a 40% year-over-year rise. The number of agents who performed closed-loop transactions on Fangdd's marketplace – meaning from the beginning to the closing of a deal, reached 60,400. Closed-loop GMV facilitated on DUO's platform reached $30.2 billion, an 85% increase from the preceding year.
Fangdd's chairman and co-chief executive officer, Yi Duan, attributed the growth to the rising demand for online and SaaS real estate solutions.
Fangdd, China's largest real estate marketplace, aims to provide all the resources needed to carry out a property deal. These include a usable platform for managing customers, matchmaking algorithms, providing capital and transaction data, as well as other SaaS-based solutions tailored to serve the specific needs of real estate professionals. Fangdd also operates China's largest property listings database, according to Frost & Sullivan.
Xi Zeng, Fangdd's newly-appointed co-CEO, said in the statement today, "By leveraging our extensive agent base, we were also able to expand our partnerships with real estate developers, successfully improving their sales performance, further diversifying our product offerings, and securing more premium property listings on our platform."
Duan also commented on the coronavirus outbreak that disrupted business operations for just about everyone in China during the first quarter, the real estate industry included.
"On average, the effective offline working hours of real estate agents during the first quarter were reduced to approximately 30% of the prior-year level," Duan said in the statement today.
He added, "Nevertheless, as a leader in the real estate transaction service market, we remain confident about the industry's mid- to long-term growth prospects."
This year, Fangdd expects to see revenue growth of between 40% and 45%, Duan said.
In the fourth quarter, Fangdd celebrated its public offering in New York. The company, backed by Vision Knight Capital's David Zhe Wei, raised $78 million in an offering of 6 million ADSs. The deal was underwritten by Morgan Stanley & Co. LLC, UBS Securities LLC, China Int'l Capital Corp. Hong Kong Securities Ltd. and AMTD Global Markets Ltd.
Since the IPO, DUO stock peaked at a high of $16.60 per share, then dipped below $10 earlier this month, weighed by investor fears amid the coronavirus. On Tuesday afternoon, Fangdd's financial results took its shares to $12.88 apiece, 13% above Monday's close.