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SINA Reports First Quarter 2012 Financial Results
First Quarter 2012 Highlights
- Net revenues increased 6% year over year to
$106.2 million . Non-GAAP net revenues increased 6% year over year to$101.5 million , within the Company's guidance of between$101.0 million and $104.0 million . - Advertising revenues grew 9% year over year to
$78.5 million , within the Company's guidance of between$78.0 million and $80.0 million . - Non-advertising revenues were
$27.7 million , unchanged year over year. Non-GAAP non-advertising revenues decreased 1% year over year to$23.0 million , within the Company's guidance of between$23.0 million and $24.0 million . - Net loss attributable to
SINA was$13.7 million , or$0.21 diluted net loss per share attributable toSINA . Non-GAAP net loss attributable toSINA was$14.0 million , or$0.21 non-GAAP diluted net loss per share attributable toSINA .
"Our brand advertising business got off to a relatively slow start in the first quarter due to the softening of macroeconomic conditions in
First Quarter 2012 Financial Results
For the first quarter of 2012,
Brand advertising revenues for the first quarter of 2012 were
Gross margin for the first quarter of 2012 was 46%, down from 53% for the same period last year. Advertising gross margin for the first quarter of 2012 was 44%, compared to 54% for the same period last year. Non-GAAP advertising gross margin for the first quarter of 2012 was 45%, compared to 55% for the same period last year. The decrease in non-GAAP advertising gross margin was mainly due to increased spending on infrastructure, content and personnel-related costs. MVAS gross margin for the first quarter of 2012 was 39%, unchanged from the same period last year.
Operating expenses for the first quarter of 2012 totaled
Loss from operations for the first quarter of 2012 was
Non-operating income for the first quarter of 2012 was
Net loss attributable to
As of
Subsequent Event
On
Business Outlook
Non-GAAP Measures
This release contains financial measures that are not prepared in accordance with generally accepted accounting principles in
Reconciliations of the Company's non-GAAP measures to the nearest GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results." These non-GAAP measures include non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP gross profit, non-GAAP advertising gross margin, non-GAAP operating expenses, non-GAAP income/loss from operations, non-GAAP equity income/loss from CRIC, non-GAAP net income/loss attributable to
The Company's management uses non-GAAP financial measures to gain an understanding of the Company's comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects. The Company's non-GAAP financial measures exclude certain items, including stock-based compensation, amortization of intangible assets, recognition of deferred revenues and gain/loss resulting from the disposal, purchase or impairment of a business, investment or non-controlling interest in a subsidiary, from its internal financial statements for purposes of its internal budgets. Non-GAAP financial measures are used by the Company's management in their financial and operating decision-making, because management believes they reflect the Company's ongoing business in a manner that allows more meaningful period-to-period comparisons. The Company's management believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: 1) in comparing the Company's current financial results with the Company's past financial results in a consistent manner, and 2) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does, if they so choose. The Company's management further believes the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains/losses and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of its core operating results and business outlook.
The Company's management believes excluding stock-based compensation from its non-GAAP financial measures is useful for itself and investors, as such expense will not result in future cash payments and is not an indicator used by management to measure the Company's core operating results and business outlook.
The Company's management believes excluding the amortization expense of intangible assets from its non-GAAP financial measures is useful for itself and investors, because it enables a more meaningful comparison of the Company's cash performance between reporting periods. In addition, such charges will not result in cash settlement in the future and is not an indicator used by management to measure the Company's core operating results and business outlook.
The Company's management believes excluding the recognition of deferred revenues, mostly relating to the license agreements resulting from
The Company's non-GAAP equity income/loss from its interest in net income/loss attributable to CRIC excludes stock-based compensation and amortization expense of intangible assets, which are consistent with the Company's adjusted items to calculate non-GAAP measures.
The Company's management believes excluding gain/loss resulting from the disposal, purchase or impairment of a business, investment or non-controlling interest in a subsidiary from its non-GAAP financial measures is useful for itself and investors, because such gains/losses are not indicative of the Company's core operating results.
The non-GAAP financial measures have limitations. They do not include all items of income and expense that affect the Company's operations. Specifically, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and, with respect to the non-GAAP financial measures that exclude certain items under GAAP, do not reflect any benefit that such items may confer to the Company. Management compensates for these limitations by also considering the Company's financial results as determined in accordance with GAAP.
Conference Call
US: |
+1 617 801 9711 |
UK: |
+44 207 365 8426 |
Hong Kong: |
+852 3002 1672 |
Passcode for all regions: |
37124985 |
A replay of the conference call will be available through
About
We are an online media company serving
SINA.com offers distinct and targeted professional content on each of its region specific websites and a range of complementary offerings. SINA.cn provides information and entertainment content from
Through these businesses and properties and other business lines, we offer an array of services including mobile value added services ("MVAS"), online video, music streaming, online games, photo sharing, blog, email, classified listings, fee-based services, ecommerce and enterprise services. We generate the majority of our revenues from online brand advertising, MVAS and fee-based services.
Safe Harbor Statement
This press release contains forward-looking statements that relate to, among other things,
Contact:
IR Manager
Phone: 8610-82628888 x 3112
Email: ir@staff.sina.com.cn
SINA CORPORATION |
||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
(U.S. Dollars in thousands, except per share data) |
||||||
Three months ended |
||||||
March 31, |
December 31, |
|||||
2012 |
2011 |
2011 |
||||
Net revenues: |
||||||
Advertising |
$ 78,542 |
$ 72,345 |
$ 103,655 |
|||
Non-advertising |
27,678 |
27,866 |
29,714 |
|||
106,220 |
100,211 |
133,369 |
||||
Cost of revenues: |
||||||
Advertising (a) |
44,084 |
33,088 |
45,635 |
|||
Non-advertising |
13,027 |
13,763 |
15,098 |
|||
57,111 |
46,851 |
60,733 |
||||
Gross profit |
49,109 |
53,360 |
72,636 |
|||
Operating expenses: |
||||||
Sales and marketing (a) |
34,744 |
25,718 |
36,013 |
|||
Product development (a) |
25,023 |
10,263 |
21,464 |
|||
General and administrative (a) |
7,321 |
5,596 |
9,088 |
|||
Amortization of intangibles |
108 |
258 |
107 |
|||
67,196 |
41,835 |
66,672 |
||||
Income (loss) from operations |
(18,087) |
11,525 |
5,964 |
|||
Non-operating income: |
||||||
Interest and other income, net |
3,531 |
2,692 |
3,539 |
|||
Earnings(loss) from equity investments, net |
(3,921) |
2,348 |
225 |
|||
Gain on sale of investment |
3,061 |
- |
- |
|||
2,671 |
5,040 |
3,764 |
||||
Income (loss) before income taxes |
(15,416) |
16,565 |
9,728 |
|||
Income tax credit (provision for income taxes) |
1,274 |
(1,669) |
(713) |
|||
Net income (loss) |
(14,142) |
14,896 |
9,015 |
|||
Less: Net loss attributable to noncontrolling interest |
(402) |
(111) |
(264) |
|||
Net income (loss) attributable to SINA |
$ (13,740) |
$ 15,007 |
$ 9,279 |
|||
Basic net income (loss) per share attributable to SINA |
$ (0.21) |
$ 0.24 |
$ 0.14 |
|||
Diluted net income (loss) per share attributable to SINA |
$ (0.21) |
$ 0.23 |
$ 0.14 |
|||
Shares used in computing basic |
||||||
net income (loss) per share attributable to SINA |
66,185 |
62,942 |
66,021 |
|||
Shares used in computing diluted |
||||||
net income (loss) per share attributable to SINA |
66,185 |
66,659 |
66,767 |
|||
(a) Stock-based compensation in each category: |
||||||
Cost of revenues - advertising |
$ 807 |
$ 609 |
$ 1,065 |
|||
Sales and marketing |
766 |
520 |
1,068 |
|||
Product development |
1,067 |
430 |
1,132 |
|||
General and administrative |
1,133 |
1,485 |
2,030 |
SINA CORPORATION |
|||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(U.S. Dollars in thousands) |
|||||||
March 31, |
December 31, |
||||||
2012 |
2011 |
||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ 451,414 |
$ 513,980 |
|||||
Short-term investments |
196,480 |
159,495 |
|||||
Accounts receivable, net |
102,163 |
112,469 |
|||||
Other current assets |
45,706 |
41,966 |
|||||
Total current assets |
795,763 |
827,910 |
|||||
Property and equipment, net |
74,532 |
74,511 |
|||||
Goodwill and intangible assets, net |
15,873 |
15,974 |
|||||
Investments |
508,582 |
463,938 |
|||||
Other assets |
10,429 |
9,114 |
|||||
Total assets |
$ 1,405,179 |
$ 1,391,447 |
|||||
Liabilities and Shareholders' Equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ 2,000 |
$ 8,854 |
|||||
Accrued liabilities |
164,351 |
174,972 |
|||||
Income taxes payable |
11,245 |
14,717 |
|||||
Convertible debt |
2,200 |
2,200 |
|||||
Total current liabilities |
179,796 |
200,743 |
|||||
Long-term deferred revenue |
121,843 |
126,529 |
|||||
Other long-term liabilities |
1,828 |
1,826 |
|||||
Total liabilities |
303,467 |
329,098 |
|||||
Shareholders' equity |
|||||||
SINA shareholders' equity |
1,092,426 |
1,055,670 |
|||||
Noncontrolling interest |
9,286 |
6,679 |
|||||
Total shareholders' equity |
1,101,712 |
1,062,349 |
|||||
Total liabilities and shareholders' equity |
$ 1,405,179 |
$ 1,391,447 |
SINA CORPORATION |
||||||
UNAUDITED SEGMENT INFORMATION |
||||||
(U.S. Dollars in thousands) |
||||||
Three months ended |
||||||
March 31, |
December 31, |
|||||
2012 |
2011 |
2011 |
||||
Net revenues |
||||||
Advertising |
$ 78,542 |
$ 72,345 |
$ 103,655 |
|||
Mobile related |
19,018 |
21,287 |
21,281 |
|||
Others |
8,660 |
6,579 |
8,433 |
|||
$ 106,220 |
$ 100,211 |
$ 133,369 |
||||
Cost of revenues |
||||||
Advertising |
$ 44,084 |
$ 33,088 |
$ 45,635 |
|||
Mobile related |
11,677 |
12,961 |
13,783 |
|||
Others |
1,350 |
802 |
1,315 |
|||
$ 57,111 |
$ 46,851 |
$ 60,733 |
SINA CORPORATION |
||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
||||||||||||||||||
(U.S. Dollars in thousands, except per share data) |
||||||||||||||||||
Three months ended |
||||||||||||||||||
March 31, 2012 |
March 31, 2011 |
December 31, 2011 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||
Advertising revenues |
$ 78,542 |
$ 78,542 |
$ 72,345 |
$72,345 |
$103,655 |
$103,655 |
||||||||||||
Non-advertising revenues |
27,678 |
(4,686) |
(c) |
22,992 |
27,866 |
(4,686) |
(c) |
23,180 |
29,714 |
(4,686) |
(c) |
25,028 |
||||||
Net revenues |
$106,220 |
$ (4,686) |
$101,534 |
$100,211 |
$ (4,686) |
$95,525 |
$133,369 |
$ (4,686) |
$128,683 |
|||||||||
807 |
(a) |
609 |
(a) |
1,065 |
(a) |
|||||||||||||
(4,686) |
(c) |
(4,686) |
(c) |
(4,686) |
(c) |
|||||||||||||
Gross profit |
$ 49,109 |
$ (3,879) |
$ 45,230 |
$ 53,360 |
$ (4,077) |
$49,283 |
$ 72,636 |
$ (3,621) |
$ 69,015 |
|||||||||
(2,966) |
(a) |
(2,435) |
(a) |
(4,230) |
(a) |
|||||||||||||
(108) |
(b) |
(258) |
(b) |
(107) |
(b) |
|||||||||||||
Operating expenses |
$ 67,196 |
$ (3,074) |
$ 64,122 |
$ 41,835 |
$ (2,693) |
$39,142 |
$ 66,672 |
$ (4,337) |
$ 62,335 |
|||||||||
3,773 |
(a) |
3,044 |
(a) |
5,295 |
(a) |
|||||||||||||
108 |
(b) |
258 |
(b) |
107 |
(b) |
|||||||||||||
(4,686) |
(c) |
(4,686) |
(c) |
(4,686) |
(c) |
|||||||||||||
Income (loss) from operations |
$(18,087) |
$ (805) |
$(18,892) |
$ 11,525 |
$ (1,384) |
$10,141 |
$ 5,964 |
$ 716 |
$ 6,680 |
|||||||||
3,773 |
(a) |
|||||||||||||||||
108 |
(b) |
3,044 |
(a) |
5,295 |
(a) |
|||||||||||||
(4,686) |
(c) |
258 |
(b) |
107 |
(b) |
|||||||||||||
3,578 |
(d) |
(4,686) |
(c) |
(4,686) |
(c) |
|||||||||||||
(3,061) |
(e) |
3,283 |
(d) |
3,958 |
(d) |
|||||||||||||
Net income (loss) attributable to SINA |
$(13,740) |
$ (288) |
$(14,028) |
$ 15,007 |
$ 1,899 |
$16,906 |
$ 9,279 |
$ 4,674 |
$ 13,953 |
|||||||||
Diluted net income (loss) per share attributable to SINA |
$ (0.21) |
$ (0.21) |
$ 0.23 |
$ 0.25 |
$ 0.14 |
$ 0.21 |
||||||||||||
Shares used in computing diluted |
||||||||||||||||||
net income (loss) per share attributable to SINA |
66,185 |
- |
66,185 |
66,659 |
- |
66,659 |
66,767 |
- |
66,767 |
|||||||||
Gross margin - advertising |
44% |
1% |
45% |
54% |
1% |
55% |
56% |
1% |
57% |
|||||||||
(a) To adjust stock-based compensation related to employee incentives. |
||||||||||||||||||
(b) To adjust amortization of intangible assets. |
||||||||||||||||||
(c) To adjust the recognition of deferred revenue mostly related to the license agreements resulting from the CRIC Transaction. |
||||||||||||||||||
(d) To adjust share of CRIC's GAAP to Non-GAAP reconciling items, net of share of amortization of CRIC's intangibles not on CRIC's books. |
||||||||||||||||||
(e) To adjust gain on sale of investment. |
SINA CORPORATION |
|||||||||||||||||
UNAUDITED RECONCILIATION OF SINA'S SHARE OF CRIC'S NON-GAAP TO GAAP RESULTS* |
|||||||||||||||||
Three months ended |
|||||||||||||||||
March 31, 2012 |
March 31, 2011 |
December 31, 2011 |
|||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
|||||||||
To adjust stock-based compensation |
$ 1,154 |
$ 996 |
$ 1,617 |
||||||||||||||
To adjust amortization expenses of intangible assets resulting from business acquisitions |
1,688 |
1,503 |
1,605 |
||||||||||||||
Equity income (loss) from CRIC |
$(2,206) |
$ 2,842 |
$ 636 |
$3,364 |
$ 2,499 |
$ 5,863 |
$1,642 |
$ 3,222 |
$ 4,864 |
||||||||
Share of amortization of CRIC's intangibles not on CRIC's books |
$ (736) |
$ 736 |
$ - |
$ (784) |
$ 784 |
$ - |
$ (736) |
$ 736 |
$ - |
||||||||
$(2,942) |
$ 3,578 |
$ 636 |
$2,580 |
$ 3,283 |
$ 5,863 |
$ 906 |
$ 3,958 |
$ 4,864 |
|||||||||
* Income (loss) from CRIC is recorded one quarter in arrears. |
SOURCE