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SINA Reports Fourth Quarter 2012 Financial Results
- Net revenues increased 4% year over year to
$139.1 million . Non-GAAP net revenues increased 4% year over year to$134.4 million , within the Company's guidance between$132.0 million and $136.0 million . - Advertising revenues grew 7% year over year to
$110.7 million , within the Company's guidance between$110.0 million and $112.0 million . - Non-advertising revenues decreased 4% year over year to
$28.5 million . Non-GAAP non-advertising revenues decreased 5% year over year to$23.8 million , reaching the high end of the Company's guidance between$22.0 million and $24.0 million . - Net income attributable to
SINA was$2.4 million , or$0.03 diluted net income per share attributable toSINA . Non-GAAP net income attributable toSINA was$9.0 million , or$0.13 non-GAAP diluted net income per share attributable to SINA.
Fiscal 2012 Highlights
- Net revenues increased 10% year over year to
$529.3 million . Non-GAAP net revenues increased 10% year over year to$510.6 million . - Advertising revenues grew 12% year over year to
$412.9 million . - Non-advertising revenues increased 2% year over year to
$116.4 million . Non-GAAP non-advertising revenues increased 2% year over year to$97.7 million . - Net income attributable to
SINA was$31.7 million , or$0.47 diluted net income per share attributable toSINA . Non-GAAP net income attributable toSINA was$10.4 million , or$0.15 non-GAAP diluted net income per share attributable to SINA.
"2012 was a year of investment for
For the fourth quarter of 2012,
Online advertising revenues for the fourth quarter of 2012 were
Gross margin for the fourth quarter of 2012 was 57%, compared to 54% for the same period last year. Advertising gross margin for the fourth quarter of 2012 was 56%, the same as the corresponding period last year. Non-GAAP advertising gross margin for the fourth quarter of 2012 was 57%, also the same as last year. MVAS gross margin for the fourth quarter of 2012 was 45%, compared to 35% for the same period last year, due to a shift in product mix.
Operating expenses for the fourth quarter of 2012 totaled
Income from operations for the fourth quarter of 2012 was
Non-operating loss from for the fourth quarter of 2012 was
Net income attributable to
As of
Business Outlook
Non-GAAP Measures
This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP advertising gross margin, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income/(loss) from operations, non-GAAP equity earnings/(loss) from equity investments, non-GAAP net income/(loss) attributable to
The Company's non-GAAP financial measures exclude certain items, including share-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. 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 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 the Company's core operating results and business outlook.
Use of non-GAAP financial measures has limitations. Our 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.
Conference Call
US: |
+1 646 254 3515 |
Hong Kong: |
+852 3051 2745 |
Passcode for all regions: |
94957366 |
A replay of the conference call will be available through
About
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
Safe Harbor Statement
This press release contains forward-looking statements that relate to, among other things,
Contact:
Investor Relations
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 |
Twelve months ended |
|||||||||
December 31, |
September 30, |
December 31, |
||||||||
2012 |
2011 |
2012 |
2012 |
2011 |
||||||
Net revenues: |
||||||||||
Advertising |
$ 110,666 |
$ 103,655 |
$ 120,590 |
$ 412,928 |
$ 368,805 |
|||||
Non-advertising |
28,460 |
29,714 |
31,788 |
116,401 |
114,024 |
|||||
139,126 |
133,369 |
152,378 |
529,329 |
482,829 |
||||||
Cost of revenues: |
||||||||||
Advertising (a) |
48,758 |
45,635 |
54,010 |
195,324 |
157,458 |
|||||
Non-advertising |
11,003 |
15,098 |
15,428 |
52,608 |
57,890 |
|||||
59,761 |
60,733 |
69,438 |
247,932 |
215,348 |
||||||
Gross profit |
79,365 |
72,636 |
82,940 |
281,397 |
267,481 |
|||||
Operating expenses: |
||||||||||
Sales and marketing (a) |
34,688 |
36,013 |
38,439 |
142,342 |
135,867 |
|||||
Product development (a) |
28,508 |
21,464 |
28,392 |
108,062 |
65,533 |
|||||
General and administrative (a) |
10,580 |
9,088 |
12,308 |
39,397 |
30,121 |
|||||
Goodwill impairment |
- |
- |
68,891 |
|||||||
Amortization of intangibles |
12 |
107 |
12 |
144 |
731 |
|||||
73,788 |
66,672 |
79,151 |
289,945 |
301,143 |
||||||
Income/(loss) from operations |
5,577 |
5,964 |
3,789 |
(8,548) |
(33,662) |
|||||
Non-operating income: |
||||||||||
Interest and other income, net |
4,097 |
3,539 |
4,388 |
16,798 |
16,327 |
|||||
Earning/(loss) from equity investments, net |
(4,377) |
225 |
883 |
(10,730) |
1,466 |
|||||
Gain on sale of /(impairment) on investments,net |
(1,770) |
- |
3,004 |
37,065 |
(281,548) |
|||||
(2,050) |
3,764 |
8,275 |
43,133 |
(263,755) |
||||||
Income/(loss) before income taxes |
3,527 |
9,728 |
12,064 |
34,585 |
(297,417) |
|||||
Provision for income taxes |
(1,379) |
(713) |
(1,592) |
(2,730) |
(5,001) |
|||||
Net income/(loss) |
2,148 |
9,015 |
10,472 |
31,855 |
(302,418) |
|||||
Less: Net income/(loss) attributable to noncontrolling interest |
(207) |
(264) |
594 |
117 |
(326) |
|||||
Net income/(loss) attributable to SINA |
$ 2,355 |
$ 9,279 |
$ 9,878 |
$ 31,738 |
$ (302,092) |
|||||
Basic net income/(loss) per share attributable to SINA |
$ 0.04 |
$ 0.14 |
$ 0.15 |
$ 0.48 |
$ (4.64) |
|||||
Diluted net income/(loss) per share attributable to SINA |
$ 0.03 |
$ 0.14 |
$ 0.14 |
$ 0.47 |
$ (4.64) |
|||||
Shares used in computing basic |
||||||||||
net income/(loss) per share attributable to SINA |
66,585 |
66,021 |
66,496 |
66,401 |
65,121 |
|||||
Shares used in computing diluted |
||||||||||
net income/(loss) per share attributable to SINA |
66,930 |
66,767 |
66,874 |
66,849 |
65,121 |
|||||
(a) Stock-based compensation in each category: |
||||||||||
Cost of revenues - advertising |
$ 731 |
$ 1,065 |
$ 865 |
$ 3,154 |
$ 3,346 |
|||||
Sales and marketing |
1,022 |
1,068 |
1,187 |
3,729 |
3,155 |
|||||
Product development |
830 |
1,132 |
1,011 |
3,776 |
3,082 |
|||||
General and administrative |
2,953 |
2,030 |
3,267 |
8,699 |
7,024 |
SINA CORPORATION |
|||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(U.S. Dollars in thousands) |
|||||||
December 31, |
December 31, |
||||||
2012 |
2011 |
||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ 199,826 |
$ 513,980 |
|||||
Short-term investments |
513,772 |
159,495 |
|||||
Accounts receivable, net |
135,251 |
112,469 |
|||||
Other current assets |
36,498 |
41,966 |
|||||
Total current assets |
885,347 |
827,910 |
|||||
Property and equipment, net |
76,640 |
74,511 |
|||||
Goodwill and intangible assets, net |
15,840 |
15,974 |
|||||
Investments |
466,875 |
463,938 |
|||||
Other assets |
38,204 |
9,114 |
|||||
Total assets |
$ 1,482,906 |
$ 1,391,447 |
|||||
Liabilities and Shareholders' Equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ 7,994 |
$ 8,854 |
|||||
Accrued liabilities |
205,569 |
174,972 |
|||||
Income taxes payable |
13,466 |
14,717 |
|||||
Convertible debt |
- |
2,200 |
|||||
Total current liabilities |
227,029 |
200,743 |
|||||
Long-term deferred revenue |
107,784 |
126,529 |
|||||
Other long-term liabilities |
2,220 |
1,826 |
|||||
Total liabilities |
337,033 |
329,098 |
|||||
Shareholders' equity |
|||||||
SINA shareholders' equity |
1,136,670 |
1,055,670 |
|||||
Noncontrolling interest |
9,203 |
6,679 |
|||||
Total shareholders' equity |
1,145,873 |
1,062,349 |
|||||
Total liabilities and shareholders' equity |
$ 1,482,906 |
$ 1,391,447 |
SINA CORPORATION |
|||||||||||
UNAUDITED SEGMENT INFORMATION |
|||||||||||
(U.S. Dollars in thousands) |
|||||||||||
Three months ended |
Twelve months ended |
||||||||||
December 31, |
September 30, |
December 31, |
|||||||||
2012 |
2011 |
2012 |
2012 |
2011 |
|||||||
Net revenues |
|||||||||||
Advertising |
$ 110,666 |
$ 103,655 |
$ 120,590 |
$ 412,928 |
$ 368,805 |
||||||
Mobile related |
13,243 |
21,281 |
19,079 |
69,008 |
83,457 |
||||||
Others |
15,217 |
8,433 |
12,709 |
47,393 |
30,567 |
||||||
$ 139,126 |
$ 133,369 |
$ 152,378 |
$ 529,329 |
$ 482,829 |
|||||||
Cost of revenues |
|||||||||||
Advertising |
$ 48,758 |
$ 45,635 |
$ 54,010 |
$ 195,324 |
# |
$ 157,458 |
|||||
Mobile related |
7,218 |
13,783 |
12,262 |
41,935 |
53,235 |
||||||
Others |
3,785 |
1,315 |
3,166 |
10,673 |
4,655 |
||||||
$ 59,761 |
$ 60,733 |
$ 69,438 |
$ 247,932 |
$ 215,348 |
|||||||
SINA CORPORATION |
||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
||||||||||||||||||
(U.S. Dollars in thousands, except per share data) |
||||||||||||||||||
Three months ended |
||||||||||||||||||
December 31, 2012 |
December 31, 2011 |
September 30, 2012 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||
Advertising revenues |
$ 110,666 |
$ 110,666 |
$ 103,655 |
$ 103,655 |
$ 120,590 |
$ 120,590 |
||||||||||||
Non-advertising revenues |
28,460 |
(4,686) |
(c) |
23,774 |
29,714 |
(4,686) |
(c) |
25,028 |
31,788 |
(4,687) |
(c) |
27,101 |
||||||
Net revenues |
$ 139,126 |
$ (4,686) |
$ 134,440 |
$ 133,369 |
$ (4,686) |
$ 128,683 |
$ 152,378 |
$ (4,687) |
$ 147,691 |
|||||||||
731 |
(a) |
1,065 |
(a) |
865 |
(a) |
|||||||||||||
(4,686) |
(c) |
(4,686) |
(c) |
(4,687) |
(c) |
|||||||||||||
Gross profit |
$ 79,365 |
$ (3,955) |
$ 75,410 |
$ 72,636 |
$ (3,621) |
$ 69,015 |
$ 82,940 |
$ (3,822) |
$ 79,118 |
|||||||||
(4,805) |
(a) |
(4,230) |
(a) |
(5,465) |
(a) |
|||||||||||||
(12) |
(b) |
(107) |
(b) |
(12) |
(b) |
|||||||||||||
Operating expenses |
$ 73,788 |
$ (4,817) |
$ 68,971 |
$ 66,672 |
$ (4,337) |
$ 62,335 |
$ 79,151 |
$ (5,477) |
$ 73,674 |
|||||||||
5,536 |
(a) |
5,295 |
(a) |
6,330 |
(a) |
|||||||||||||
12 |
(b) |
107 |
(b) |
12 |
(b) |
|||||||||||||
(4,686) |
(c) |
(4,686) |
(c) |
(4,687) |
(c) |
|||||||||||||
Income from operations |
$ 5,577 |
$ 862 |
$ 6,439 |
$ 5,964 |
$ 716 |
$ 6,680 |
$ 3,789 |
$ 1,655 |
$ 5,444 |
|||||||||
5,536 |
(a) |
6,330 |
(a) |
|||||||||||||||
12 |
(b) |
5,295 |
(a) |
12 |
(b) |
|||||||||||||
(4,686) |
(c) |
107 |
(b) |
(4,687) |
(c) |
|||||||||||||
4,002 |
(d) |
(4,686) |
(c) |
3,138 |
(d) |
|||||||||||||
1,770 |
(e) |
3,958 |
(d) |
(3,004) |
(e) |
|||||||||||||
Net income attributable to SINA |
$ 2,355 |
$ 6,634 |
$ 8,989 |
$ 9,279 |
$ 4,674 |
$ 13,953 |
$ 9,878 |
$ 1,789 |
$ 11,667 |
|||||||||
Diluted net income per share attributable to SINA |
$ 0.03 |
$ 0.13 |
$ 0.14 |
$ 0.21 |
$ 0.14 |
$ 0.17 |
||||||||||||
Shares used in computing diluted |
||||||||||||||||||
net income per share attributable to SINA |
66,930 |
- |
66,930 |
66,767 |
- |
(g) |
66,767 |
66,874 |
- |
66,874 |
||||||||
Gross margin - advertising |
56% |
1% |
57% |
56% |
1% |
57% |
55% |
1% |
56% |
|||||||||
Twelve months ended |
||||||||||||||||||
December 31, 2012 |
December 31, 2011 |
|||||||||||||||||
Non-GAAP |
Non-GAAP |
|||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
|||||||||||||
Advertising revenues |
$ 412,928 |
$ 412,928 |
$ 368,805 |
$ 368,805 |
||||||||||||||
Non-advertising revenues |
116,401 |
(18,745) |
(c) |
97,656 |
114,024 |
(18,745) |
(c) |
95,279 |
||||||||||
Net revenues |
$ 529,329 |
$ (18,745) |
$ 510,584 |
$ 482,829 |
$ (18,745) |
$ 464,084 |
||||||||||||
3,154 |
(a) |
3,346 |
(a) |
|||||||||||||||
(18,745) |
(c) |
(18,745) |
(c) |
|||||||||||||||
Gross profit |
$ 281,397 |
$ (15,591) |
$ 265,806 |
$ 267,481 |
$ (15,399) |
$ 252,082 |
||||||||||||
(13,261) |
(a) |
|||||||||||||||||
(16,204) |
(a) |
(731) |
(b) |
|||||||||||||||
(144) |
(b) |
(68,891) |
(f) |
|||||||||||||||
Operating expenses |
$ 289,945 |
$ (16,348) |
$ 273,597 |
$ 301,143 |
$ (82,883) |
$ 218,260 |
||||||||||||
16,607 |
(a) |
|||||||||||||||||
19,358 |
(a) |
731 |
(b) |
|||||||||||||||
144 |
(b) |
(18,745) |
(c) |
|||||||||||||||
(18,745) |
(c) |
68,891 |
(f) |
|||||||||||||||
Income/(loss) from operations |
$ (8,548) |
$ 757 |
$ (7,791) |
$ (33,662) |
$ 67,484 |
$ 33,822 |
||||||||||||
16,607 |
(a) |
|||||||||||||||||
19,358 |
(a) |
731 |
(b) |
|||||||||||||||
144 |
(b) |
(18,745) |
(c) |
|||||||||||||||
(18,745) |
(c) |
14,703 |
(d) |
|||||||||||||||
14,935 |
(d) |
68,891 |
(f) |
|||||||||||||||
(37,065) |
(e) |
281,548 |
(e) |
|||||||||||||||
Net income/(loss) attributable to SINA |
$ 31,738 |
$ (21,373) |
$ 10,365 |
$ (302,092) |
$ 363,735 |
$ 61,643 |
||||||||||||
Diluted net income/(loss) per share attributable to SINA |
$ 0.47 |
$ 0.15 |
$ (4.64) |
$ 0.92 |
||||||||||||||
Shares used in computing diluted |
||||||||||||||||||
net income/(loss) per share attributable to SINA |
66,849 |
- |
66,849 |
65,121 |
1,943 |
(g) |
67,064 |
|||||||||||
Gross margin - advertising |
53% |
0% |
* |
53% |
57% |
1% |
58% |
|||||||||||
(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 equity investments' GAAP to Non-GAAP reconciling items, net of share of amortization of intangibles not on their books. |
||||||||||||||||||
(e) To adjust gain on sale of/(impairment) on equity investments |
||||||||||||||||||
(f) To adjust for impairment of MVAS goodwill |
||||||||||||||||||
(g) To adjust the number of shares used in computing diluted net loss per share from diluted net income per share. |
||||||||||||||||||
* Rounding |
||||||||||||||||||
UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' GAAP TO NON-GAAP RESULTS* |
||||||||||||||||||
Three months ended |
||||||||||||||||||
December 31, 2012 |
December 31, 2011 |
September 30, 2012 |
||||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
||||||||||
To adjust stock-based compensation |
$ 2,274 |
$ 1,617 |
$ 2,046 |
|||||||||||||||
To adjust amortization expenses of intangible |
||||||||||||||||||
assets resulting from business acquisitions |
1,287 |
1,605 |
749 |
|||||||||||||||
Earning/(loss) from equity investments, net |
$ (3,936) |
$ 3,561 |
$ (375) |
$ 961 |
$ 3,222 |
$ 4,183 |
$ 1,226 |
$ 2,795 |
$ 4,021 |
|||||||||
Share of amortization of equity investments' |
||||||||||||||||||
intangibles not on their books |
$ (441) |
$ 441 |
$ - |
$ (736) |
$ 736 |
$ - |
$ (343) |
$ 343 |
$ - |
|||||||||
$ (4,377) |
$ 4,002 |
$ (375) |
$ 225 |
$ 3,958 |
$ 4,183 |
$ 883 |
$ 3,138 |
$ 4,021 |
||||||||||
Twelve months ended |
||||||||||||||||||
December 31, 2012 |
December 31, 2011 |
|||||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
|||||||||||||
To adjust stock-based compensation |
$ 7,435 |
$ 5,531 |
||||||||||||||||
To adjust amortization expenses of intangible |
||||||||||||||||||
assets resulting from business acquisitions |
$ 5,387 |
6,216 |
||||||||||||||||
Earning/(loss) from equity investments, net |
$ (8,617) |
$ 12,822 |
$ 4,205 |
$ 4,422 |
$ 11,747 |
$ 16,169 |
||||||||||||
Share of amortization of equity investments' |
||||||||||||||||||
intangibles not on their books |
$ (2,113) |
$ 2,113 |
$ - |
$ (2,956) |
$ 2,956 |
$ - |
||||||||||||
$ (10,730) |
$ 14,935 |
$ 4,205 |
$ 1,466 |
$ 14,703 |
$ 16,169 |
|||||||||||||
* Earning/(loss) from equity investments is recorded one quarter in arrears. |
SOURCE