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SINA Reports Second Quarter 2013 Financial Results
Second Quarter 2013 Highlights
- Net revenues increased 20% year over year to
$157.5 million . Non-GAAP net revenues increased 20% year over year to$152.8 million , exceeding the Company's guidance between$143.0 million and $147.0 million . - Advertising revenues grew 17% year over year to
$120.6 million , exceeding the Company's guidance between$117.0 million and $119.0 million . - Non-advertising revenues increased 30% year over year to
$36.9 million . Non-GAAP non-advertising revenues increased 35% year over year to$32.2 million , exceeding the Company's guidance between$26.0 million and $28.0 million . - Net loss attributable to
SINA , which included a one-off charge of$27.1 million in connection with the investment from theAlibaba Group ("Alibaba ") inWeibo Corporation ("Weibo"), was$11.5 million , or$0.17 diluted net loss per share attributable toSINA . Non-GAAP net income attributable toSINA grew 281% year over year to$14.2 million , or$0.21 non-GAAP diluted net income per share attributable toSINA .
"I'm pleased with
Second Quarter 2013 Financial Results
For the second quarter of 2013,
Online advertising revenues for the second quarter of 2013 were
Gross margin for the second quarter of 2013 was 54% compared to 53% for the same period last year. Cost of sales included
Operating expenses for the second quarter of 2013 totaled
Loss from operations for the second quarter of 2013 was
Non-operating income for the second quarter of 2013 was
Net loss attributable to
As of
Other
On
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 and non-advertising gross margin, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income/(loss) from operations, non-GAAP earning/(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 revenue in relation to the CRIC Transaction and gain/loss resulting from the disposal, purchase or impairment of a business, investment or non-controlling interest in a subsidiary and change in fair value of investor options liabilities. 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. 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.
Conference Call
US: |
+1 845 675 0438 |
Hong Kong: |
+852 3051 2745 |
Passcode for all regions: |
29900221 |
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
Through these properties and other product lines and businesses,
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 |
Six months ended |
|||||||||
June 30, |
March 31, |
June 30, |
||||||||
2013 |
2012 |
2013 |
2013 |
2012 |
||||||
Net revenues: |
||||||||||
Advertising |
$120,579 |
$103,130 |
$94,289 |
$214,868 |
$181,672 |
|||||
Non-advertising |
36,906 |
28,475 |
31,684 |
68,590 |
56,153 |
|||||
157,485 |
131,605 |
125,973 |
283,458 |
237,825 |
||||||
Cost of revenues: |
||||||||||
Advertising (a) |
56,620 |
48,472 |
47,810 |
104,430 |
92,556 |
|||||
Non-advertising |
16,520 |
13,150 |
13,547 |
30,067 |
26,177 |
|||||
73,140 |
61,622 |
61,357 |
134,497 |
118,733 |
||||||
Gross profit |
84,345 |
69,983 |
64,616 |
148,961 |
119,092 |
|||||
Operating expenses: |
||||||||||
Sales and marketing (a) |
40,119 |
34,471 |
30,024 |
70,143 |
69,215 |
|||||
Product development (a) |
41,250 |
26,139 |
30,801 |
72,051 |
51,162 |
|||||
General and administrative (a) |
21,159 |
9,188 |
13,629 |
34,788 |
16,509 |
|||||
Amortization of intangibles |
12 |
12 |
12 |
24 |
120 |
|||||
102,540 |
69,810 |
74,466 |
177,006 |
137,006 |
||||||
Income/(loss) from operations |
(18,195) |
173 |
(9,850) |
(28,045) |
(17,914) |
|||||
Non-operating income/(loss): |
||||||||||
Earning/(loss) from equity investments, net |
1,289 |
(3,315) |
1,526 |
2,815 |
(7,236) |
|||||
Gain/(loss) on sale of and impairment on investments, net |
1,850 |
32,770 |
(10,852) |
(9,002) |
35,831 |
|||||
Interest and other income, net |
5,058 |
4,782 |
4,785 |
9,843 |
8,313 |
|||||
8,197 |
34,237 |
(4,541) |
3,656 |
36,908 |
||||||
Income/(loss) before income taxes |
(9,998) |
34,410 |
(14,391) |
(24,389) |
18,994 |
|||||
Income tax credit/(provision) |
(3,025) |
(1,033) |
(185) |
(3,210) |
241 |
|||||
Net income/(loss) |
(13,023) |
33,377 |
(14,576) |
(27,599) |
19,235 |
|||||
Less: Net income/(loss) attributable to noncontrolling interest |
(1,490) |
132 |
(1,405) |
(2,895) |
(270) |
|||||
Net income/(loss) attributable to SINA |
$(11,533) |
$33,245 |
$(13,171) |
$(24,704) |
$19,505 |
|||||
Basic net income/(loss) per share attributable to SINA |
$(0.17) |
$0.50 |
$(0.20) |
$(0.37) |
$0.29 |
|||||
Diluted net income/(loss) per share attributable to SINA |
$(0.17) |
$0.49 |
$(0.20) |
$(0.37) |
$0.29 |
|||||
Shares used in computing basic |
||||||||||
net income/(loss) per share attributable to SINA |
66,814 |
66,337 |
66,687 |
66,751 |
66,261 |
|||||
Shares used in computing diluted |
||||||||||
net income/(loss) per share attributable to SINA |
66,814 |
66,809 |
66,687 |
66,751 |
66,795 |
|||||
(a) Stock-based compensation in each category: |
||||||||||
Cost of revenues - advertising |
$4,460 |
$751 |
$568 |
$5,028 |
$1,558 |
|||||
Sales and marketing |
6,223 |
754 |
790 |
7,013 |
1,520 |
|||||
Product development |
8,794 |
868 |
791 |
9,585 |
1,935 |
|||||
General and administrative |
12,155 |
1,346 |
3,118 |
15,273 |
2,479 |
SINA CORPORATION |
||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(U.S. Dollars in thousands) |
||||||
June 30, |
December 31, |
|||||
2013 |
2012 |
|||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$929,368 |
$199,826 |
||||
Short-term investments |
307,628 |
513,772 |
||||
Accounts receivable, net |
159,226 |
135,251 |
||||
Prepaid expenses and other current assets |
30,099 |
36,498 |
||||
Total current assets |
1,426,321 |
885,347 |
||||
Property and equipment, net |
71,620 |
76,640 |
||||
Goodwill and intangible assets, net |
26,911 |
15,840 |
||||
Equity investments, net |
457,118 |
466,875 |
||||
Other assets |
62,914 |
38,204 |
||||
Total assets |
$2,044,884 |
$1,482,906 |
||||
Liabilities and Shareholders' Equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$4,603 |
$7,994 |
||||
Accrued liabilities |
213,417 |
168,677 |
||||
Deferred revenues |
43,455 |
36,892 |
||||
Income taxes payable |
12,008 |
13,466 |
||||
Investor options liabilities |
49,705 |
|||||
Total current liabilities |
323,188 |
227,029 |
||||
Long-term deferred revenue |
98,411 |
107,784 |
||||
Other long-term liabilities |
3,148 |
2,220 |
||||
Total liabilities |
424,747 |
337,033 |
||||
Shareholders' equity |
||||||
SINA shareholders' equity |
1,139,011 |
1,136,670 |
||||
Non-controlling interest |
481,126 |
9,203 |
||||
Total shareholders' equity |
1,620,137 |
1,145,873 |
||||
Total liabilities and shareholders' equity |
$2,044,884 |
$1,482,906 |
SINA CORPORATION |
||||||||||
UNAUDITED ADDITIONAL INFORMATION |
||||||||||
(U.S. Dollars in thousands) |
||||||||||
Three months ended |
Six months ended |
|||||||||
June 30, |
March 31, |
June 30, |
||||||||
2013 |
2012 |
2013 |
2013 |
2012 |
||||||
Net revenues |
||||||||||
Advertising |
$120,579 |
$103,130 |
$94,289 |
$214,868 |
$181,672 |
|||||
MVAS |
19,920 |
17,668 |
15,863 |
35,783 |
36,686 |
|||||
Others |
16,986 |
10,807 |
15,821 |
32,807 |
19,467 |
|||||
$157,485 |
$131,605 |
$125,973 |
$283,458 |
$237,825 |
||||||
Cost of revenues |
||||||||||
Advertising |
$56,620 |
$48,472 |
$47,810 |
$104,430 |
$92,556 |
|||||
MVAS |
13,816 |
10,778 |
11,026 |
24,842 |
22,455 |
|||||
Others |
2,704 |
2,372 |
2,521 |
5,225 |
3,722 |
|||||
$73,140 |
$61,622 |
$61,357 |
$134,497 |
$118,733 |
SINA CORPORATION |
||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
||||||||||||||||||
(U.S. Dollars in thousands, except per share data) |
||||||||||||||||||
Three months ended |
||||||||||||||||||
June 30, 2013 |
June 30, 2012 |
March 31, 2013 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||
Advertising revenues |
$120,579 |
$120,579 |
$103,130 |
$103,130 |
$94,289 |
$94,289 |
||||||||||||
Non-advertising revenues |
36,906 |
(4,686) |
(c) |
32,220 |
28,475 |
(4,686) |
(c) |
23,789 |
31,684 |
(4,686) |
(c) |
26,998 |
||||||
Net revenues |
$157,485 |
$(4,686) |
$152,799 |
$131,605 |
$(4,686) |
$126,919 |
$125,973 |
$(4,686) |
$121,287 |
|||||||||
4,460 |
(a) |
751 |
(a) |
568 |
(a) |
|||||||||||||
(4,686) |
(c) |
(4,686) |
(c) |
(4,686) |
(c) |
|||||||||||||
Gross profit |
$84,345 |
$(226) |
$84,119 |
$69,983 |
$(3,935) |
$66,048 |
$64,616 |
$(4,118) |
$60,498 |
|||||||||
(27,172) |
(a) |
(2,968) |
(a) |
(4,699) |
(a) |
|||||||||||||
(12) |
(b) |
(12) |
(b) |
(12) |
(b) |
|||||||||||||
Operating expenses |
$102,540 |
$(27,184) |
$75,356 |
$69,810 |
$(2,980) |
$66,830 |
$74,466 |
$(4,711) |
$69,755 |
|||||||||
31,632 |
(a) |
3,719 |
(a) |
5,267 |
(a) |
|||||||||||||
12 |
(b) |
12 |
(b) |
12 |
(b) |
|||||||||||||
(4,686) |
(c) |
(4,686) |
(c) |
(4,686) |
(c) |
|||||||||||||
Income/(loss) from operations |
$(18,195) |
$26,958 |
$8,763 |
$173 |
$(955) |
$(782) |
$(9,850) |
$593 |
$(9,257) |
|||||||||
31,632 |
(a) |
|||||||||||||||||
12 |
(b) |
|||||||||||||||||
(4,686) |
(c) |
3,719 |
(a) |
5,267 |
(a) |
|||||||||||||
2,874 |
(d) |
12 |
(b) |
12 |
(b) |
|||||||||||||
(1,850) |
(e) |
(4,686) |
(c) |
(4,686) |
(c) |
|||||||||||||
(864) |
(f) |
4,217 |
(d) |
3,275 |
(d) |
|||||||||||||
(1,361) |
(g) |
(32,770) |
(e) |
10,852 |
(e) |
|||||||||||||
Net income/(loss) attributable to SINA |
$(11,533) |
$25,757 |
$14,224 |
$33,245 |
$(29,508) |
$3,737 |
$(13,171) |
$14,720 |
$1,549 |
|||||||||
Diluted net income/(loss) per share attributable to SINA |
$(0.17) |
$0.21 |
$0.49 |
$0.05 |
$(0.20) |
$0.02 |
||||||||||||
Shares used in computing diluted |
||||||||||||||||||
net income/(loss) per share attributable to SINA |
66,814 |
270 |
(h) |
67,084 |
66,809 |
- |
66,809 |
66,687 |
268 |
(h) |
66,955 |
|||||||
Gross margin - advertising |
53% |
4% |
57% |
53% |
1% |
54% |
49% |
1% |
50% |
|||||||||
Six months ended |
||||||||||||||||||
June 30, 2013 |
June 30, 2012 |
|||||||||||||||||
Non-GAAP |
Non-GAAP |
|||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
|||||||||||||
Advertising revenues |
$214,868 |
$214,868 |
$181,672 |
$181,672 |
||||||||||||||
Non-advertising revenues |
68,590 |
(9,372) |
(c) |
59,218 |
56,153 |
(9,372) |
(c) |
46,781 |
||||||||||
Net revenues |
$283,458 |
$(9,372) |
$274,086 |
$237,825 |
$(9,372) |
$228,453 |
||||||||||||
5,028 |
(a) |
1,558 |
(a) |
|||||||||||||||
(9,372) |
(c) |
(9,372) |
(c) |
|||||||||||||||
Gross profit |
$148,961 |
$(4,344) |
$144,617 |
$119,092 |
$(7,814) |
$111,278 |
||||||||||||
(31,871) |
(a) |
(5,934) |
(a) |
|||||||||||||||
(24) |
(b) |
(120) |
(b) |
|||||||||||||||
Operating expenses |
$177,006 |
$(31,895) |
$145,111 |
$137,006 |
$(6,054) |
$130,952 |
||||||||||||
36,899 |
(a) |
7,492 |
(a) |
|||||||||||||||
24 |
(b) |
120 |
(b) |
|||||||||||||||
(9,372) |
(c) |
(9,372) |
(c) |
|||||||||||||||
Income/(loss) from operations |
$(28,045) |
$27,551 |
$(494) |
$(17,914) |
$(1,760) |
$(19,674) |
||||||||||||
36,899 |
(a) |
|||||||||||||||||
24 |
(b) |
|||||||||||||||||
(9,372) |
(c) |
7,492 |
(a) |
|||||||||||||||
6,149 |
(d) |
120 |
(b) |
|||||||||||||||
9,002 |
(e) |
(9,372) |
(c) |
|||||||||||||||
(864) |
(f) |
7,795 |
(d) |
|||||||||||||||
(1,361) |
(g) |
(35,831) |
(e) |
|||||||||||||||
Net income/(loss) attributable to SINA |
$(24,704) |
$40,477 |
$15,773 |
$19,505 |
$(29,796) |
$(10,291) |
||||||||||||
Diluted net income/(loss) per share attributable to SINA |
$(0.37) |
$0.23 |
$0.29 |
$(0.16) |
||||||||||||||
Shares used in computing diluted |
||||||||||||||||||
net income/(loss) per share attributable to SINA |
66,751 |
269 |
(h) |
67,020 |
66,795 |
(534) |
(h) |
66,261 |
||||||||||
Gross margin - advertising |
51% |
3% |
* |
54% |
49% |
1% |
50% |
|||||||||||
(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/(loss) on sale of equity investment, gain/(loss) on deemed disposal and (impairment) on investments, net |
||||||||||||||||||
(f) To adjust the change in fair value of investor options liabilities |
||||||||||||||||||
(g) To adjust gain/(loss) attributable to noncontrolling interest |
||||||||||||||||||
(h) To adjust the number of shares used in computing diluted net income per share from diluted net loss per share. |
||||||||||||||||||
* Rounding |
||||||||||||||||||
UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' GAAP TO NON-GAAP RESULTS* |
||||||||||||||||||
Three months ended |
||||||||||||||||||
June 30, 2013 |
June 30, 2012 |
March 31, 2013 |
||||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
||||||||||
To adjust stock-based compensation |
$1,408 |
$1,961 |
$1,632 |
|||||||||||||||
To adjust amortization expenses of intangible |
||||||||||||||||||
assets resulting from business acquisitions |
1,050 |
1,663 |
1,202 |
|||||||||||||||
Earning/(loss) from equity investments, net |
$1,705 |
$2,458 |
$4,163 |
$(2,722) |
$3,624 |
$902 |
$1,967 |
$2,834 |
$4,801 |
|||||||||
Share of amortization of equity investments' |
||||||||||||||||||
intangibles not on their books |
$(416) |
$416 |
$- |
$(593) |
$593 |
$- |
$(441) |
$441 |
$- |
|||||||||
$1,289 |
$2,874 |
$4,163 |
$(3,315) |
$4,217 |
$902 |
$1,526 |
$3,275 |
$4,801 |
||||||||||
Six months ended |
||||||||||||||||||
June 30, 2013 |
June 30, 2012 |
|||||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
|||||||||||||
To adjust stock-based compensation |
$3,040 |
$3,115 |
||||||||||||||||
To adjust amortization expenses of intangible |
||||||||||||||||||
assets resulting from business acquisitions |
2,252 |
3,351 |
||||||||||||||||
Earning/(loss) from equity investments, net |
$3,672 |
$5,292 |
$8,964 |
$(5,907) |
$6,466 |
$559 |
||||||||||||
Share of amortization of equity investments' |
||||||||||||||||||
intangibles not on their books |
$(857) |
$857 |
$- |
$(1,329) |
$1,329 |
$- |
||||||||||||
$2,815 |
$6,149 |
$8,964 |
$(7,236) |
$7,795 |
$559 |
|||||||||||||
* Earning/(loss) from equity investments is recorded one quarter in arrears. |
SOURCE