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SINA Reports First Quarter 2015 Financial Results
First Quarter 2015 Highlights
- Net revenues increased 8% year over year to
$184.6 million . Non-GAAP net revenues increased 9% year over year to$182 million . - Advertising revenues grew 11% year over year to
$150.4 million . Non-advertising revenues were$34.2 million . Non-GAAP non-advertising revenues were$31.6 million . - Net loss attributable to
SINA was$10.3 million , or$0.18 diluted net loss per share attributable toSINA . Non-GAAP net income attributable toSINA was$3 million , or$0.04 non-GAAP diluted net income per share attributable toSINA .
"We are delighted that
First Quarter 2015 Financial Results
For the first quarter of 2015,
Online advertising revenues for the first quarter of 2015 were
Non-advertising revenues for the first quarter of 2015 were
Gross margin for the first quarter of 2015 was 58%, compared to 60% for the same period last year. Advertising gross margin for the first quarter of 2015 was 57%, compared to 60% for the same period last year. Non-advertising gross margin for the first quarter of 2015 was 61%. Non-GAAP non-advertising gross margin for the first quarter of 2015 was 58%, compared to 57% for the same period last year.
Operating expenses for the first quarter of 2015 totaled
Loss from operations for the first quarter of 2015 was
Non-operating income for the first quarter of 2015 was
Net loss attributable to
As of
Non-GAAP Measures
This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP advertising and non-advertising gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income attributable to
The Company's non-GAAP financial measures exclude recognition of deferred revenues in relation to the equity investment in
Use of non-GAAP financial measures has limitations. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to non-GAAP financial measures used by other companies. Management compensates for these limitations by also considering the Company's financial results prepared in accordance with U.S. GAAP. Reconciliations of the Company's non-GAAP measures to the nearest comparable GAAP measures are set forth in the section below titled "Unaudited Reconciliation of GAAP and Non-GAAP Results."
Conference Call
US: |
+1 845 675 0437 |
Hong Kong: |
+852 3018 6771 |
Passcode for all regions: |
45260137 |
A replay of the conference call will be available through morning Eastern Time
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 full range of complementary offerings. Our mobile portal, SINA.cn, provides news information and entertainment content from SINA.com customized for mobile users in WAP (mobile browser) and mobile application format.
Through these properties and other product lines, we offer an array of online media and social media services to our users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences.
Safe Harbor Statement
This press release contains forward-looking statements that relate to, among other things,
Contact:
Investor Relations
Phone: +86 10 5898 3336
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, |
||||
2015 |
2014 |
2014 |
|||
Net revenues: |
|||||
Advertising |
$ 150,353 |
$ 135,726 |
$ 181,935 |
||
Non-advertising |
34,234 |
35,752 |
29,202 |
||
184,587 |
171,478 |
211,137 |
|||
Cost of revenues: |
|||||
Advertising * |
63,949 |
54,856 |
63,315 |
||
Non-advertising |
13,368 |
13,675 |
11,069 |
||
77,317 |
68,531 |
74,384 |
|||
Gross profit |
107,270 |
102,947 |
136,753 |
||
Operating expenses: |
|||||
Sales and marketing * |
60,251 |
49,960 |
61,069 |
||
Product development * |
51,613 |
44,535 |
50,719 |
||
General and administrative * |
20,634 |
17,176 |
21,102 |
||
132,498 |
111,671 |
132,890 |
|||
Income (Loss) from operations |
(25,228) |
(8,724) |
3,863 |
||
Non-operating income (loss): |
|||||
Earning from equity method investments, net |
3,652 |
8,722 |
3,167 |
||
Gain (loss) on sale of and impairment on investments, net |
(1,085) |
(381) |
53,081 |
||
Change in fair value of investor option liability |
- |
(40,188) |
- |
||
Interest and other income, net |
5,783 |
1,955 |
7,835 |
||
8,350 |
(29,892) |
64,083 |
|||
Income (Loss) before income taxes |
(16,878) |
(38,616) |
67,946 |
||
Income tax benefits (expenses) |
2,985 |
1,216 |
(7,004) |
||
Net income (loss) |
(13,893) |
(37,400) |
60,942 |
||
Less: Net income (loss) attributable to non-controlling interests |
(3,584) |
(4,234) |
1,191 |
||
Net income (loss) attributable to SINA |
$ (10,309) |
$ (33,166) |
$ 59,751 |
||
Basic net income (loss) per share attributable to SINA |
$ (0.18) |
$ (0.50) |
$ 0.95 |
||
Diluted net income (loss) per share attributable to SINA ** |
$ (0.18) |
$ (0.52) |
$ 0.90 |
||
Shares used in computing basic |
|||||
net income (loss) per share attributable to SINA |
58,753 |
66,034 |
63,017 |
||
Shares used in computing diluted |
|||||
net income (loss) per share attributable to SINA |
58,753 |
66,034 |
69,524 |
||
* Stock-based compensation in each category: |
|||||
Cost of revenues - advertising |
$ 1,423 |
$ 775 |
$ 809 |
||
Sales and marketing |
2,622 |
1,147 |
1,377 |
||
Product development |
3,495 |
1,355 |
2,242 |
||
General and administrative |
5,834 |
3,610 |
5,107 |
||
** Net income (loss) attributable to SINA is adjusted for diluted shares issued by our subsidiary and equity method investments. |
SINA CORPORATION |
||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(U.S. Dollars in thousands) |
||||||
March 31, |
December 31, |
|||||
2015 |
2014 |
|||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ 1,350,591 |
$ 1,223,682 |
||||
Short-term investments |
706,603 |
942,856 |
||||
Accounts receivable, net |
281,195 |
259,764 |
||||
Prepaid expenses and other current assets |
140,472 |
109,214 |
||||
Subtotal |
2,478,861 |
2,535,516 |
||||
Property and equipment, net |
58,588 |
63,729 |
||||
Goodwill and intangible assets, net |
63,570 |
64,489 |
||||
Long-term investments, net |
797,151 |
860,003 |
||||
Other assets |
192,330 |
179,591 |
||||
Total assets |
$ 3,590,500 |
$ 3,703,328 |
||||
Liabilities and Shareholders' Equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ 2,895 |
$ 3,853 |
||||
Accrued liabilities |
337,770 |
320,268 |
||||
Deferred revenues |
50,025 |
50,557 |
||||
Income taxes payable |
14,512 |
17,979 |
||||
Subtotal |
405,202 |
392,657 |
||||
Convertible debt |
800,000 |
800,000 |
||||
Long-term deferred revenue |
82,782 |
85,391 |
||||
Other long-term liabilities |
3,803 |
4,010 |
||||
Total liabilities |
1,291,787 |
1,282,058 |
||||
Shareholders' equity |
||||||
SINA shareholders' equity |
2,013,487 |
2,145,772 |
||||
Non-controlling interests |
285,226 |
275,498 |
||||
Total shareholders' equity |
2,298,713 |
2,421,270 |
||||
Total liabilities and shareholders' equity |
$ 3,590,500 |
$ 3,703,328 |
SINA CORPORATION |
|||||
UNAUDITED ADDITIONAL INFORMATION |
|||||
(U.S. Dollars in thousands) |
|||||
Three months ended |
|||||
March 31, |
December 31, |
||||
2015 |
2014 |
2014 |
|||
Net revenues |
|||||
Portal: |
|||||
Portal Advertising |
$ 71,193 |
$ 83,873 |
$ 93,962 |
||
Other |
17,104 |
20,095 |
11,963 |
||
Subtotal |
88,297 |
103,968 |
105,925 |
||
|
96,290 |
67,510 |
105,212 |
||
$ 184,587 |
$ 171,478 |
$ 211,137 |
|||
Cost of revenues |
|||||
Portal: |
|||||
Portal Advertising |
$ 38,974 |
$ 39,456 |
$ 41,299 |
||
Other |
9,418 |
11,632 |
7,299 |
||
Subtotal |
48,392 |
51,088 |
48,598 |
||
|
28,925 |
17,443 |
25,786 |
||
$ 77,317 |
$ 68,531 |
$ 74,384 |
SINA CORPORATION |
||||||||||||||||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
||||||||||||||||||
(U.S. Dollars in thousands, except per share data) |
||||||||||||||||||
Three months ended |
||||||||||||||||||
March 31, 2015 |
March 31, 2014 |
December 31, 2014 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||
Advertising revenues |
$ 150,353 |
$ 150,353 |
$ 135,726 |
$ 135,726 |
$ 181,935 |
$ 181,935 |
||||||||||||
Non-advertising revenues |
34,234 |
(2,609) |
(a) |
31,625 |
35,752 |
(4,132) |
(a) |
31,620 |
29,202 |
(2,609) |
(a) |
26,593 |
||||||
Net revenues |
$ 184,587 |
$ (2,609) |
$ 181,978 |
$ 171,478 |
$ (4,132) |
$ 167,346 |
$ 211,137 |
$ (2,609) |
$ 208,528 |
|||||||||
(2,609) |
(a) |
(4,132) |
(a) |
(2,609) |
(a) |
|||||||||||||
1,423 |
(b) |
775 |
(b) |
809 |
(b) |
|||||||||||||
Gross profit |
$ 107,270 |
$ (1,186) |
$ 106,084 |
$ 102,947 |
$ (3,357) |
$ 99,590 |
$ 136,753 |
$ (1,800) |
$ 134,953 |
|||||||||
(11,951) |
(b) |
(6,112) |
(b) |
(8,726) |
(b) |
|||||||||||||
(902) |
(c) |
(1,171) |
(c) |
(904) |
(c) |
|||||||||||||
Operating expenses |
$ 132,498 |
$ (12,853) |
$ 119,645 |
$ 111,671 |
$ (7,283) |
$ 104,388 |
$ 132,890 |
$ (9,630) |
$ 123,260 |
|||||||||
(2,609) |
(a) |
(4,132) |
(a) |
(2,609) |
(a) |
|||||||||||||
13,374 |
(b) |
6,887 |
(b) |
9,535 |
(b) |
|||||||||||||
902 |
(c) |
1,171 |
(c) |
904 |
(c) |
|||||||||||||
Income (loss) from operations |
$ (25,228) |
$ 11,667 |
$ (13,561) |
$ (8,724) |
$ 3,926 |
$ (4,798) |
$ 3,863 |
$ 7,830 |
$ 11,693 |
|||||||||
(4,132) |
(a) |
|||||||||||||||||
(2,609) |
(a) |
6,887 |
(b) |
(2,609) |
(a) |
|||||||||||||
13,374 |
(b) |
899 |
(c) |
9,535 |
(b) |
|||||||||||||
694 |
(c) |
1,942 |
(d) |
694 |
(c) |
|||||||||||||
2,286 |
(d) |
381 |
(e) |
2,411 |
(d) |
|||||||||||||
1,085 |
(e) |
40,188 |
(f) |
(53,081) |
(e) |
|||||||||||||
(2,644) |
(g) |
(3,289) |
(g) |
(2,160) |
(g) |
|||||||||||||
1,111 |
(h) |
1,398 |
(h) |
1,398 |
(h) |
|||||||||||||
Net income (loss) attributable to SINA |
$ (10,309) |
$ 13,297 |
$ 2,988 |
$ (33,166) |
$ 44,274 |
$ 11,108 |
$ 59,751 |
$ (43,812) |
$ 15,939 |
|||||||||
Diluted net income (loss) per share attributable to SINA * |
$ (0.18) |
$ 0.04 |
$ (0.52) |
$ 0.15 |
$ 0.90 |
$ 0.24 |
||||||||||||
Shares used in computing diluted |
||||||||||||||||||
net income (loss) per share attributable to SINA |
58,753 |
36 |
(i) |
58,789 |
66,034 |
289 |
(i) |
66,323 |
69,524 |
(6,468) |
(i) |
63,056 |
||||||
Gross margin - advertising |
57% |
1% |
58% |
60% |
0% |
60% |
65% |
1% |
66% |
|||||||||
Gross margin - non-advertising |
61% |
-3% |
58% |
62% |
-5% |
57% |
62% |
-4% |
58% |
|||||||||
(a) To adjust the recognition of deferred revenue related to the license agreements granted to E-House. |
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UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' GAAP TO NON-GAAP RESULTS* |
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Three months ended |
||||||||||||||||||
March 31, 2015 |
March 31, 2014 |
December 31, 2014 |
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Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
||||||||||
To adjust stock-based compensation |
$ 1,381 |
$ 1,043 |
$ 1,632 |
|||||||||||||||
To adjust amortization of intangible |
||||||||||||||||||
assets resulting from business acquisitions |
607 |
576 |
473 |
|||||||||||||||
Earning from equity method investments, net |
$ 3,950 |
$ 1,988 |
$ 5,938 |
$ 9,045 |
$ 1,619 |
$ 10,664 |
$ 3,473 |
$ 2,105 |
$ 5,578 |
|||||||||
Share of amortization of equity investments' |
||||||||||||||||||
intangibles not on their books |
$ (298) |
$ 298 |
$ - |
$ (323) |
$ 323 |
$ - |
$ (306) |
$ 306 |
$ - |
|||||||||
$ 3,652 |
$ 2,286 |
$ 5,938 |
$ 8,722 |
$ 1,942 |
$ 10,664 |
$ 3,167 |
$ 2,411 |
$ 5,578 |
||||||||||
* Earning from equity method investments is recorded one quarter in arrears. |
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