KE Holdings Inc (NYSE:BEKE), a leading integrated online and offline platform for housing transactions in China, stock rose 3.01% (As on November 11, 11:23:34 AM UTC-4, Source: Google Finance) after the company reported third quarter adjusted earnings that slightly exceeded analyst expectations but narrowly missed revenue estimate. KE Holdings’ performance was marked by divergent trends across its business segments. While existing home transaction GTV grew 5.8% YoY to RMB505.6 billion, new home transaction GTV declined 13.7% to RMB196.3 billion. The company’s home rental services showed particular strength, with revenues surging 45.3% YoY to RMB5.7 billion. Net income for the quarter was RMB747 million ($105 million), representing a 36.1% decrease from the same period last year. The company’s adjusted net income fell 27.8% YoY to RMB1,286 million ($181 million). The company maintained strong operational metrics, with the number of active stores increasing 25.9% YoY to 59,012, and active agents rising 11.4% to 471,501. Mobile monthly active users averaged 49.3 million in the quarter, up from 46.2 million a year earlier.

Meanwhile, on the housing supply side, the company launched innovations such as agent specialization module, which agents are sent to specially manage home listing or serve the buyer based on their expertise as well as innovative services, including home staging and open house events. The revenue from its in-home transactions reached RMB 6 billion in Q3, down 3.6% year-over-year and down 10.8% quarter-over-quarter. GTV was RMB 505.6 billion, up 5.8% year-over-year and down 13.3% quarter-over-quarter. Revenue from the new home transactions was RMB 6.6 billion in Q3, decreasing by 14.1% year-over-year and 23% quarter-over-quarter. The contribution margin from new home transaction services was 24.1%, down by 0.7 percentage points year-over-year due to an increase in variable costs resulting from the agent benefit improvement last year. The revenue from the home renovation and furniture business was RMB 4.3 billion, remaining relatively flat year-over-year.

BEKE in the third quarter of FY25 has reported the adjusted earnings per share of RMB1.17 ($0.16), beating the analysts’ estimates for the adjusted earnings per share of RMB1.16. The company had reported the adjusted revenue growth of 2.1 percent to RMB23.1 billion ($3.2 billion) in the third quarter of FY25, missing the analysts’ estimates for revenue of RMB23.58 billion. Gross profit dropped by 3.9% year-over-year to RMB 4.9 billion. Gross margin was 21.4%, down 1.3 percentage points year-over-year.

Additionally, KE Holdings continued its shareholder return program, allocating $281 million to share repurchases during the quarter, the highest quarterly repurchase amount in the past two years