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SINA Reports First Quarter 2017 Financial Results
First Quarter 2017 Highlights
- Both net revenues and non-GAAP net revenues increased 40% year over year to
$278.1 million and$275.5 million , respectively. - Advertising revenues increased 40% year over year to
$228.0 million . - Non-advertising revenues increased 40% year over year to
$50.1 million . Non-GAAP non-advertising revenues was$47.5 million . - Income from operations was
$45.0 million . Non-GAAP income from operations increased approximately ten folds year over year to$63.7 million . Non-GAAP operating margin was 23%, up from 3% for the same period last year. - Net income attributable to
SINA was$38.5 million , or$0.52 diluted net income per share attributable toSINA . Non-GAAP net income attributable toSINA was$37.6 million , or$0.50 non-GAAP diluted net income per share attributable toSINA . Weibo's monthly active users ("MAUs") increased from 261 million inMarch 2016 to 340 million inMarch 2017 , an increase of 30% year over year.Weibo's mobile MAUs represents 91% ofWeibo's MAUs.Weibo's average daily active users ("DAUs") have a net addition of approximately 34 million users year over year and reached 154 million inMarch 2017 .
"We started the year 2017 with a great quarter." said
First Quarter 2017 Financial Results
For the first quarter of 2017,
Online advertising revenues for the first quarter of 2017 were
Non-advertising revenues for the first quarter of 2017 were
Gross margin for the first quarter of 2017 was 69%, compared to 59% for the same period last year. Advertising gross margin for the first quarter of 2017 was 70%, compared to 58% for the same period last year. The increase in advertising gross margin was primarily due to strong advertising demand from
Operating expenses for the first quarter of 2017 totaled
Income from operations for the first quarter of 2017 was
Non-operating income for the first quarter of 2017 was
Net income 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 (loss) attributable to
The Company's non-GAAP financial measures exclude recognition of deferred revenues in relation to the license agreements granted to Leju, stock-based compensation, amortization of intangible assets, adjustment for non-GAAP to GAAP reconciling items on the share of equity method investments, gain/loss on sale of investment/business, deemed disposal and impairment on investment, impairment on goodwill and acquired intangibles, change in fair value in option liability, income tax effects of above non-GAAP to GAAP reconciling items and adjustment for non-GAAP to GAAP reconciling items for the income (loss) attributable to non-controlling interests and amortization of convertible debt issuance cost. The Company's management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company's ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company's current financial results with the Company's past financial results in a consistent manner, and (ii) 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 also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss 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 the Company's core operating results and business outlook.
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 Non-GAAP to GAAP Results."
Conference Call
US: |
+1 845 675 0438 |
Hong Kong: |
+852 3018 6776 |
China: |
400 120 0654 |
International: |
+65 6713 5440 |
Passcode for all regions: |
18467087 |
A replay of the conference call will be available through morning Eastern Time
About
We are a leading 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. SINA.cn and SINA Mobile Apps provide news information, professional 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, |
|||||
2017 |
2016 |
2016 |
||||
Net revenues: |
||||||
Advertising |
$ 227,999 |
$ 162,967 |
$ 269,556 |
|||
Non-advertising |
50,066 |
35,708 |
43,868 |
|||
278,065 |
198,675 |
313,424 |
||||
Cost of revenues *: |
||||||
Advertising |
67,668 |
68,189 |
75,578 |
|||
Non-advertising |
18,904 |
12,705 |
18,980 |
|||
86,572 |
80,894 |
94,558 |
||||
Gross profit |
191,493 |
117,781 |
218,866 |
|||
Operating expenses: |
||||||
Sales and marketing * |
68,083 |
51,702 |
74,295 |
|||
Product development * |
54,420 |
52,494 |
54,538 |
|||
General and administrative * |
24,023 |
22,134 |
25,166 |
|||
Goodwill and acquired intangibles impairment |
- |
- |
40,194 |
|||
146,526 |
126,330 |
194,193 |
||||
Income (Loss) from operations |
44,967 |
(8,549) |
24,673 |
|||
Non-operating income: |
||||||
Earning (Loss) from equity method investments, net |
3,143 |
(10,564) |
(546) |
|||
Gain on sale of investments/business and impairment on investments, net |
15,883 |
28,227 |
48,603 |
|||
Fair value change in option liability |
- |
- |
(25,803) |
|||
Interest and other income, net |
11,233 |
6,608 |
6,594 |
|||
30,259 |
24,271 |
28,848 |
||||
Income before income taxes |
75,226 |
15,722 |
53,521 |
|||
Income tax benefit (expense) |
(13,826) |
16 |
(5,438) |
|||
Net income |
61,400 |
15,738 |
48,083 |
|||
Less: Net income attributable to non-controlling interests |
22,876 |
418 |
28,161 |
|||
Net income attributable to SINA |
$ 38,524 |
$ 15,320 |
$ 19,922 |
|||
Basic net income per share attributable to SINA |
$ 0.54 |
$ 0.22 |
$ 0.28 |
|||
Diluted net income per share attributable to SINA ** |
$ 0.52 |
$ 0.22 |
$ 0.27 |
|||
Shares used in computing basic |
||||||
net income per share attributable to SINA |
70,959 |
69,857 |
70,981 |
|||
Shares used in computing diluted |
||||||
net income per share attributable to SINA |
73,409 |
70,296 |
72,299 |
|||
* Stock-based compensation in each category: |
||||||
Cost of revenues - advertising |
$ 2,230 |
$ 1,566 |
$ 2,021 |
|||
Sales and marketing |
4,583 |
2,843 |
4,559 |
|||
Product development |
6,990 |
4,922 |
5,018 |
|||
General and administrative |
7,387 |
6,911 |
7,868 |
|||
** |
Net income 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, |
||||||
2017 |
2016 |
||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ 1,375,464 |
$ 1,407,625 |
|||||
Short-term investments |
436,189 |
389,440 |
|||||
Restricted cash |
281,722 |
241,306 |
|||||
Accounts receivable, net |
216,978 |
210,328 |
|||||
Prepaid expenses and other current assets |
399,172 |
407,373 |
|||||
Subtotal |
2,709,525 |
2,656,072 |
|||||
Property and equipment, net |
241,674 |
241,680 |
|||||
Goodwill and intangible assets, net |
12,185 |
12,108 |
|||||
Long-term investments |
1,395,886 |
1,318,207 |
|||||
Other assets |
48,079 |
56,807 |
|||||
Total assets |
$ 4,407,349 |
$ 4,284,874 |
|||||
Liabilities and Shareholders' Equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ 108,659 |
$ 108,381 |
|||||
Amount due to customers |
281,722 |
241,306 |
|||||
Accrued expenses and other current liabilities |
431,490 |
452,751 |
|||||
Short-term bank loan |
7,286 |
33,152 |
|||||
Deferred revenues |
98,051 |
95,566 |
|||||
Income taxes payable |
52,049 |
40,127 |
|||||
Subtotal |
979,257 |
971,283 |
|||||
Convertible debt |
153,092 |
153,092 |
|||||
Long-term deferred revenues |
62,484 |
65,188 |
|||||
Other long-term liabilities |
4,325 |
4,332 |
|||||
Total liabilities |
1,199,158 |
1,193,895 |
|||||
Shareholders' equity |
|||||||
SINA shareholders' equity |
2,761,376 |
2,679,590 |
|||||
Non-controlling interests |
446,815 |
411,389 |
|||||
Total shareholders' equity |
3,208,191 |
3,090,979 |
|||||
Total liabilities and shareholders' equity |
$ 4,407,349 |
$ 4,284,874 |
SINA CORPORATION |
||||||
UNAUDITED ADDITIONAL INFORMATION |
||||||
(U.S. Dollars in thousands) |
||||||
Three months ended |
||||||
March 31, |
December 31, |
|||||
2017 |
2016 |
2016 |
||||
Net revenues |
||||||
Portal: |
||||||
Portal Advertising |
$ 59,791 |
$ 63,721 |
$ 81,820 |
|||
Other |
20,162 |
15,664 |
18,990 |
|||
Subtotal |
79,953 |
79,385 |
100,810 |
|||
Weibo: |
||||||
Advertising and marketing |
169,297 |
99,246 |
187,870 |
|||
Weibo non-advertising |
29,904 |
20,044 |
24,878 |
|||
Subtotal |
199,201 |
119,290 |
212,748 |
|||
Elimination |
(1,089) |
- |
(134) |
|||
$ 278,065 |
$ 198,675 |
$ 313,424 |
||||
Cost of revenues |
||||||
Portal: |
||||||
Portal Advertising |
$ 27,482 |
$ 35,537 |
$ 31,315 |
|||
Other |
12,702 |
8,731 |
13,864 |
|||
Subtotal |
40,184 |
44,268 |
45,179 |
|||
|
46,450 |
36,626 |
49,454 |
|||
Elimination |
(62) |
- |
(75) |
|||
$ 86,572 |
$ 80,894 |
$ 94,558 |
||||
Gross margin |
||||||
Portal |
50% |
44% |
55% |
|||
|
77% |
69% |
77% |
|||
69% |
59% |
70% |
SINA CORPORATION |
||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
||||||||||||||||||
(U.S. Dollars in thousands, except per share data) |
||||||||||||||||||
Three months ended |
||||||||||||||||||
March 31, 2017 |
March 31, 2016 |
December 31, 2016 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||
Advertising revenues |
$ 227,999 |
$ 227,999 |
$ 162,967 |
$ 162,967 |
$ 269,556 |
$ 269,556 |
||||||||||||
Non-advertising revenues |
50,066 |
(2,609) |
(a) |
47,457 |
35,708 |
(2,609) |
(a) |
33,099 |
43,868 |
(2,609) |
(a) |
41,259 |
||||||
Net revenues |
$ 278,065 |
$ (2,609) |
$ 275,456 |
$ 198,675 |
$ (2,609) |
$ 196,066 |
$ 313,424 |
$ (2,609) |
$ 310,815 |
|||||||||
(2,609) |
(a) |
(2,609) |
(a) |
(2,609) |
(a) |
|||||||||||||
2,230 |
(b) |
1,566 |
(b) |
2,021 |
(b) |
|||||||||||||
Gross profit |
$ 191,493 |
$ (379) |
$ 191,114 |
$ 117,781 |
$ (1,043) |
$ 116,738 |
$ 218,866 |
$ (588) |
$ 218,278 |
|||||||||
(17,445) |
(b) |
|||||||||||||||||
(18,960) |
(b) |
(14,676) |
(b) |
(399) |
(c) |
|||||||||||||
(155) |
(c) |
(557) |
(c) |
(40,194) |
(d) |
|||||||||||||
Operating expenses |
$ 146,526 |
$ (19,115) |
$ 127,411 |
$ 126,330 |
$ (15,233) |
$ 111,097 |
$ 194,193 |
$ (58,038) |
$ 136,155 |
|||||||||
(2,609) |
(a) |
|||||||||||||||||
(2,609) |
(a) |
(2,609) |
(a) |
19,466 |
(b) |
|||||||||||||
21,190 |
(b) |
16,242 |
(b) |
399 |
(c) |
|||||||||||||
155 |
(c) |
557 |
(c) |
40,194 |
(d) |
|||||||||||||
Income (Loss) from operations |
$ 44,967 |
$ 18,736 |
$ 63,703 |
$ (8,549) |
$ 14,190 |
$ 5,641 |
$ 24,673 |
$ 57,450 |
$ 82,123 |
|||||||||
(2,609) |
(a) |
|||||||||||||||||
19,466 |
(b) |
|||||||||||||||||
(2,609) |
(a) |
399 |
(c) |
|||||||||||||||
(2,609) |
(a) |
16,242 |
(b) |
40,194 |
(d) |
|||||||||||||
21,190 |
(b) |
557 |
(c) |
3,243 |
(e) |
|||||||||||||
155 |
(c) |
(481) |
(e) |
(48,603) |
(f) |
|||||||||||||
224 |
(e) |
(28,227) |
(f) |
25,803 |
(g) |
|||||||||||||
(15,883) |
(f) |
(4,519) |
(h) |
(9,302) |
(h) |
|||||||||||||
(5,494) |
(h) |
1,084 |
(i) |
699 |
(i) |
|||||||||||||
1,472 |
(j) |
(123) |
(j) |
(964) |
(j) |
|||||||||||||
Net income (loss) attributable to SINA |
$ 38,524 |
$ (945) |
$ 37,579 |
$ 15,320 |
$ (18,076) |
$ (2,756) |
$ 19,922 |
$ 28,326 |
$ 48,248 |
|||||||||
Diluted net income (loss) per share attributable to SINA * |
$ 0.52 |
$ 0.50 |
$ 0.22 |
$ (0.04) |
$ 0.27 |
$ 0.63 |
||||||||||||
Shares used in computing diluted |
||||||||||||||||||
net income (loss) per share attributable to SINA |
73,409 |
- |
73,409 |
70,296 |
(439) |
(k) |
69,857 |
72,299 |
5,022 |
(k) |
77,321 |
|||||||
Gross margin - advertising |
70% |
1% |
71% |
58% |
1% |
59% |
72% |
1% |
73% |
|||||||||
Gross margin - non-advertising |
62% |
-2% |
60% |
64% |
-2% |
62% |
57% |
-3% |
54% |
|||||||||
(a) To exclude the recognition of deferred revenue related to the license agreements granted to Leju. |
||||||||||||||||||
(b) To exclude stock-based compensation. |
||||||||||||||||||
(c) To adjust amortization of intangible assets. |
||||||||||||||||||
(d) To exclude goodwill and acquired intangibles impairment |
||||||||||||||||||
(e) To exclude the Non-GAAP to GAAP reconciling items on the share of equity method investments, net of share of amortization of intangibles not on their books. |
||||||||||||||||||
(f) To exclude (gain) loss on sale of investments/business, (gain) loss on deemed disposal and impairment on investments, net. |
||||||||||||||||||
(g) To exclude the change in fair value of option liability. |
||||||||||||||||||
(h) To exclude Non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests. |
||||||||||||||||||
(i) To exclude the amortization of convertible debt issuance cost. |
||||||||||||||||||
(j) To exclude the provision (benefit) for income tax related to item (c),(d) and (f). Other non-GAAP to GAAP reconciling items have no income tax effect.** |
||||||||||||||||||
(k) To adjust the number of shares for dilution resulted from convertible debt and unvested equity granted. |
||||||||||||||||||
* |
Net income (loss) attributable to SINA is adjusted for diluted shares issued by our subsidiary and equity method investments. |
|||||||||||||||||
** |
Most of the reconciliation items were recorded in entities in tax free jurisdictions hence no income tax implications. For impairment on investments, valuation allowances were made for those differences the Company does not expect they can be realized in the foreseeable future. |
|||||||||||||||||
UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' NON-GAAP TO GAAP RESULTS* |
||||||||||||||||||
Three months ended |
||||||||||||||||||
March 31, 2017 |
March 31, 2016 |
December 31, 2016 |
||||||||||||||||
Actual |
Adjustments |
Non-GAAP |
Actual |
Adjustments |
Non-GAAP |
Actual |
Adjustments |
Non-GAAP |
||||||||||
To exclude stock-based compensation |
$ 320 |
$ 1,555 |
$ 3,421 |
|||||||||||||||
To exclude amortization of intangible |
||||||||||||||||||
assets resulting from business acquisitions |
102 |
791 |
1,213 |
|||||||||||||||
To exclude (gain)loss on disposal and impairment on investments |
(321) |
(808) |
89 |
|||||||||||||||
To exclude (gain)loss resulting from the fair value |
||||||||||||||||||
changes in investments |
39 |
(2,126) |
(1,340) |
|||||||||||||||
To exclude tax impacts related |
||||||||||||||||||
to amortization of intangible assets |
(21) |
(187) |
(275) |
|||||||||||||||
Earning (Loss) from equity method investments, net |
$ 3,248 |
$ 119 |
$ 3,367 |
$ (10,270) |
$ (775) |
$ (11,045) |
$ (411) |
$ 3,108 |
$ 2,697 |
|||||||||
Share of amortization of equity investments' |
||||||||||||||||||
intangibles not on their books |
(125) |
125 |
- |
(392) |
392 |
- |
(166) |
166 |
- |
|||||||||
Share of tax impacts related to amortization of |
||||||||||||||||||
equity investments' intangibles not on their books |
20 |
(20) |
- |
98 |
(98) |
- |
31 |
(31) |
- |
|||||||||
$ 3,143 |
$ 224 |
$ 3,367 |
$ (10,564) |
$ (481) |
$ (11,045) |
$ (546) |
$ 3,243 |
$ 2,697 |
||||||||||
* Earning (Loss) from equity method investments is recorded one quarter in arrears. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sina-reports-first-quarter-2017-financial-results-300458271.html
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