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SINA Reports Second Quarter 2016 Financial Results
Second Quarter 2016 Highlights
- Net revenues increased 14% year over year to
$244.0 million . Non-GAAP net revenues increased 14% year over year to$241.4 million . - Advertising revenues grew 16% year over year to
$205.0 million . - Income from operations was
$20.8 million . Operating margin was 9%, up from negative 3% for the same period last year. Non-GAAP income from operations increased 475% year over year to$34.5 million . Non-GAAP operating margin was 14%, up from 3% for the same period last year. - Net income attributable to
SINA was$43.3 million , or$0.59 diluted net income per share attributable toSINA . Non-GAAP net income attributable toSINA was$19.9 million , or$0.27 non-GAAP diluted net income per share attributable toSINA . Weibo's monthly active users ("MAUs") inJune 2016 grew 33% year over year to 282 million, 89% of which were mobile users. Average daily active users ("DAUs") inJune 2016 grew 36% year over year to 126 million.
"We are delighted that
"Our Weibo continued its strong user growth momentum, thanks to the effective channels we have built for user penetration and the optimized user experience we cultivated in short video and live contents consumption." said Mr. Chao. "On the other hand,
Second Quarter 2016 Financial Results
For the second quarter of 2016,
Online advertising revenues for the second quarter of 2016 were
Non-advertising revenues for the second quarter of 2016 were
Gross margin for the second quarter of 2016 was 64%, compared to 60% for the same period last year. Advertising gross margin for the second quarter of 2016 was 64%, compared to 61% for the same period last year. The growing revenue proportion contributed by small and medium enterprises customers in both portal and
Operating expenses for the second quarter of 2016 totaled
Income from operations for the second quarter of 2016 was
Non-operating income for the second quarter of 2016 was
Net income attributable to
As of
Business Outlook
For the year 2016,
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 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 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: |
54218524 |
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 |
Six months ended |
||||||||
June 30, |
March 31, |
June 30, |
|||||||
2016 |
2015 |
2016 |
2016 |
2015 |
|||||
Net revenues: |
|||||||||
Advertising |
$ 205,031 |
$ 176,258 |
$ 162,967 |
$ 367,998 |
$ 326,611 |
||||
Non-advertising |
38,931 |
37,340 |
35,708 |
74,639 |
71,574 |
||||
243,962 |
213,598 |
198,675 |
442,637 |
398,185 |
|||||
Cost of revenues *: |
|||||||||
Advertising |
73,083 |
68,978 |
68,189 |
141,272 |
132,927 |
||||
Non-advertising |
15,834 |
17,014 |
12,705 |
28,539 |
30,382 |
||||
88,917 |
85,992 |
80,894 |
169,811 |
163,309 |
|||||
Gross profit |
155,045 |
127,606 |
117,781 |
272,826 |
234,876 |
||||
Operating expenses: |
|||||||||
Sales and marketing * |
56,895 |
53,984 |
51,702 |
108,597 |
114,235 |
||||
Product development * |
53,522 |
51,788 |
52,494 |
106,016 |
103,401 |
||||
General and administrative * |
23,808 |
28,659 |
22,134 |
45,942 |
49,293 |
||||
134,225 |
134,431 |
126,330 |
260,555 |
266,929 |
|||||
Income (Loss) from operations |
20,820 |
(6,825) |
(8,549) |
12,271 |
(32,053) |
||||
Non-operating income (loss): |
|||||||||
Earning (Loss) from equity method investments, net |
(6,190) |
(2,729) |
(10,564) |
(16,754) |
923 |
||||
Gain on sale of investments/business and impairment on investments, net |
34,925 |
19,032 |
28,227 |
63,152 |
17,947 |
||||
Interest and other income, net |
6,308 |
6,455 |
6,608 |
12,916 |
12,238 |
||||
35,043 |
22,758 |
24,271 |
59,314 |
31,108 |
|||||
Income (Loss) before income taxes |
55,863 |
15,933 |
15,722 |
71,585 |
(945) |
||||
Income tax (expenses) benefits |
(2,747) |
(3,022) |
16 |
(2,731) |
(37) |
||||
Net income (loss) |
53,116 |
12,911 |
15,738 |
68,854 |
(982) |
||||
Less: Net income (loss) attributable to non-controlling interests |
9,789 |
1,243 |
418 |
10,207 |
(2,341) |
||||
Net income attributable to SINA |
$ 43,327 |
$ 11,668 |
$ 15,320 |
$ 58,647 |
$ 1,359 |
||||
Basic net income per share attributable to SINA |
$ 0.62 |
$ 0.20 |
$ 0.22 |
$ 0.84 |
$ 0.02 |
||||
Diluted net income per share attributable to SINA ** |
$ 0.59 |
$ 0.19 |
$ 0.22 |
$ 0.82 |
$ 0.02 |
||||
Shares used in computing basic |
|||||||||
net income per share attributable to SINA |
70,047 |
58,417 |
69,857 |
69,952 |
58,585 |
||||
Shares used in computing diluted |
|||||||||
net income per share attributable to SINA |
77,202 |
58,910 |
70,296 |
76,982 |
58,837 |
||||
* Stock-based compensation in each category: |
|||||||||
Cost of revenues - advertising |
$ 1,775 |
$ 1,139 |
$ 1,566 |
$ 3,341 |
$ 2,562 |
||||
Sales and marketing |
3,303 |
2,594 |
2,843 |
6,146 |
5,216 |
||||
Product development |
3,592 |
3,104 |
4,922 |
8,514 |
6,599 |
||||
General and administrative |
7,165 |
7,689 |
6,911 |
14,076 |
13,523 |
||||
** 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) |
||||||
June 30, |
December 31, |
|||||
2016 |
2015 |
|||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
836,474 |
$ |
763,439 |
||
Short-term investments |
1,295,925 |
1,446,414 |
||||
Restricted cash |
170,487 |
140,652 |
||||
Accounts receivable, net |
214,866 |
228,732 |
||||
Prepaid expenses and other current assets * |
157,851 |
135,416 |
||||
Subtotal |
2,675,603 |
2,714,653 |
||||
Property and equipment, net |
42,776 |
47,495 |
||||
Goodwill and intangible assets, net |
58,350 |
61,954 |
||||
Long-term investments |
1,132,839 |
1,212,640 |
||||
Other assets |
356,361 |
320,205 |
||||
Total assets |
$ |
4,265,929 |
$ |
4,356,947 |
||
Liabilities and Shareholders' Equity |
||||||
Current liabilities: |
||||||
Accounts payable ** |
$ |
75,776 |
$ |
81,351 |
||
Amount due to customers |
170,487 |
140,652 |
||||
Accrued liabilities ** |
254,420 |
265,490 |
||||
Short-term loan |
15,057 |
- |
||||
Convertible debt * |
797,903 |
795,108 |
||||
Deferred revenues |
75,574 |
79,528 |
||||
Income taxes payable |
11,020 |
16,426 |
||||
Subtotal |
1,400,237 |
1,378,555 |
||||
Long-term deferred revenues |
70,596 |
76,003 |
||||
Other long-term liabilities |
25,117 |
25,721 |
||||
Total liabilities |
1,495,950 |
1,480,279 |
||||
Shareholders' equity |
||||||
SINA shareholders' equity |
2,434,949 |
2,565,272 |
||||
Non-controlling interests |
335,030 |
311,396 |
||||
Total shareholders' equity |
2,769,979 |
2,876,668 |
||||
Total liabilities and shareholders' equity |
$ |
4,265,929 |
$ |
4,356,947 |
||
* Effectively January 2016, ASU 2015-3 issued by FASB requires entities to present the issuance costs of debt in the balance sheet as a direct deduction from the related debt rather than assets. Accordingly, the Company retrospectively reclassified $4.9 million of issuance cost of debt from prepaid expenses and other current assets into convertible debt as of December 31, 2015. |
||||||
** Commencing on January 1, 2016, in order to enhance comparability with industry peers, payables that have been invoiced or formally agreed with the suppliers were recorded in accounts payable. To conform to current period presentations, the relevant amounts in prior periods have been reclassified from accrued liabilities accordingly. Such reclassification amounted to $77.8 million as of December 31, 2015. |
SINA CORPORATION |
||||||||||
UNAUDITED ADDITIONAL INFORMATION |
||||||||||
(U.S. Dollars in thousands) |
||||||||||
Three months ended |
Six months ended |
|||||||||
June 30, |
March 31, |
June 30, |
||||||||
2016 |
2015 |
2016 |
2016 |
2015 |
||||||
Net revenues |
||||||||||
Portal: |
||||||||||
Portal Advertising |
$ 78,694 |
$ 88,391 |
$ 63,721 |
$ 142,415 |
$ 159,584 |
|||||
Other |
19,219 |
17,365 |
15,664 |
34,883 |
34,469 |
|||||
Subtotal |
97,913 |
105,756 |
79,385 |
177,298 |
194,053 |
|||||
Weibo: |
||||||||||
Advertising and marketing: |
127,173 |
87,867 |
99,246 |
226,419 |
167,027 |
|||||
Weibo VAS |
19,712 |
19,975 |
20,044 |
39,756 |
37,105 |
|||||
Subtotal |
146,885 |
107,842 |
119,290 |
266,175 |
204,132 |
|||||
Elimination |
(836) |
- |
- |
(836) |
- |
|||||
$ 243,962 |
$ 213,598 |
$ 198,675 |
$ 442,637 |
$ 398,185 |
||||||
Cost of revenues |
||||||||||
Portal: |
||||||||||
Portal Advertising |
$ 36,804 |
$ 41,047 |
$ 35,537 |
$ 72,341 |
$ 80,021 |
|||||
Other |
11,502 |
11,256 |
8,731 |
20,233 |
20,674 |
|||||
Subtotal |
48,306 |
52,303 |
44,268 |
92,574 |
100,695 |
|||||
|
40,657 |
33,689 |
36,626 |
77,283 |
62,614 |
|||||
Elimination |
(46) |
- |
- |
(46) |
- |
|||||
$ 88,917 |
$ 85,992 |
$ 80,894 |
$ 169,811 |
$ 163,309 |
||||||
Gross margin |
||||||||||
Portal |
51% |
51% |
44% |
48% |
48% |
|||||
|
72% |
69% |
69% |
71% |
69% |
|||||
64% |
60% |
59% |
62% |
59% |
SINA CORPORATION |
|||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
|||||||||||||||||
(U.S. Dollars in thousands, except per share data) |
|||||||||||||||||
Three months ended |
|||||||||||||||||
June 30, 2016 |
June 30, 2015 |
March 31, 2016 |
|||||||||||||||
Non-GAAP |
Non-GAAP |
Non-GAAP |
|||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
|||||||||
Advertising revenues |
$ 205,031 |
$ 205,031 |
$ 176,258 |
$ 176,258 |
$ 162,967 |
$ 162,967 |
|||||||||||
Non-advertising revenues |
38,931 |
(2,609) |
(a) |
36,322 |
37,340 |
(2,609) |
(a) |
34,731 |
35,708 |
(2,609) |
(a) |
33,099 |
|||||
Net revenues |
$ 243,962 |
$ (2,609) |
$ 241,353 |
$ 213,598 |
$ (2,609) |
$ 210,989 |
$ 198,675 |
$ (2,609) |
$ 196,066 |
||||||||
(2,609) |
(a) |
(2,609) |
(a) |
(2,609) |
(a) |
||||||||||||
1,775 |
(b) |
1,139 |
(b) |
1,566 |
(b) |
||||||||||||
Gross profit |
$ 155,045 |
$ (834) |
$ 154,211 |
$ 127,606 |
$ (1,470) |
$ 126,136 |
$ 117,781 |
$ (1,043) |
$ 116,738 |
||||||||
(14,060) |
(b) |
(13,387) |
(b) |
(14,676) |
(b) |
||||||||||||
(461) |
(c) |
(906) |
(c) |
(557) |
(c) |
||||||||||||
Operating expenses |
$ 134,225 |
$ (14,521) |
$ 119,704 |
$ 134,431 |
$ (14,293) |
$ 120,138 |
$ 126,330 |
$ (15,233) |
$ 111,097 |
||||||||
(2,609) |
(a) |
(2,609) |
(a) |
(2,609) |
(a) |
||||||||||||
15,835 |
(b) |
14,526 |
(b) |
16,242 |
(b) |
||||||||||||
461 |
(c) |
906 |
(c) |
557 |
(c) |
||||||||||||
Income (loss) from operations |
$ 20,820 |
$ 13,687 |
$ 34,507 |
$ (6,825) |
$ 12,823 |
$ 5,998 |
$ (8,549) |
$ 14,190 |
$ 5,641 |
||||||||
(2,609) |
(a) |
(2,609) |
(a) |
(2,609) |
(a) |
||||||||||||
15,835 |
(b) |
14,526 |
(b) |
16,242 |
(b) |
||||||||||||
461 |
(c) |
906 |
(c) |
557 |
(c) |
||||||||||||
(102) |
(d) |
(209) |
(d) |
(123) |
(d) |
||||||||||||
2,427 |
(e) |
883 |
(e) |
(481) |
(e) |
||||||||||||
(34,925) |
(f) |
(19,032) |
(f) |
(28,227) |
(f) |
||||||||||||
(5,646) |
(g) |
(3,236) |
(g) |
(4,519) |
(g) |
||||||||||||
1,085 |
(h) |
1,099 |
(h) |
1,084 |
(h) |
||||||||||||
Net income (loss) attributable to SINA |
$ 43,327 |
$ (23,474) |
$ 19,853 |
$ 11,668 |
$ (7,672) |
$ 3,996 |
$ 15,320 |
$ (18,076) |
$ (2,756) |
||||||||
Diluted net income (loss) per share attributable to SINA * |
$ 0.59 |
$ 0.27 |
$ 0.19 |
$ 0.06 |
$ 0.22 |
$ (0.04) |
|||||||||||
Shares used in computing diluted |
|||||||||||||||||
net income (loss) per share attributable to SINA |
77,202 |
- |
77,202 |
58,910 |
- |
58,910 |
70,296 |
(439) |
(i) |
69,857 |
|||||||
Gross margin - advertising |
64% |
1% |
65% |
61% |
1% |
62% |
58% |
1% |
59% |
||||||||
Gross margin - non-advertising |
59% |
-3% |
56% |
54% |
-3% |
51% |
64% |
-2% |
62% |
||||||||
Six months ended |
|||||||||||||||||
June 30, 2016 |
June 30, 2015 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||||
Advertising revenues |
$ 367,998 |
$ 367,998 |
$ 326,611 |
$ 326,611 |
|||||||||||||
Non-advertising revenues |
74,639 |
(5,218) |
(a) |
69,421 |
71,574 |
(5,218) |
(a) |
66,356 |
|||||||||
Net revenues |
$ 442,637 |
$ (5,218) |
$ 437,419 |
$ 398,185 |
$ (5,218) |
$ 392,967 |
|||||||||||
(5,218) |
(a) |
(5,218) |
(a) |
||||||||||||||
3,341 |
(b) |
2,562 |
(b) |
||||||||||||||
Gross profit |
$ 272,826 |
$ (1,877) |
$ 270,949 |
$ 234,876 |
$ (2,656) |
$ 232,220 |
|||||||||||
(28,736) |
(b) |
(25,338) |
(b) |
||||||||||||||
(1,018) |
(c) |
(1,808) |
(c) |
||||||||||||||
Operating expenses |
$ 260,555 |
$ (29,754) |
$ 230,801 |
$ 266,929 |
$ (27,146) |
$ 239,783 |
|||||||||||
(5,218) |
(a) |
(5,218) |
(a) |
||||||||||||||
32,077 |
(b) |
27,900 |
(b) |
||||||||||||||
1,018 |
(c) |
1,808 |
(c) |
||||||||||||||
Income (Loss) from operations |
$ 12,271 |
$ 27,877 |
$ 40,148 |
$ (32,053) |
$ 24,490 |
$ (7,563) |
|||||||||||
(5,218) |
(a) |
(5,218) |
(a) |
||||||||||||||
32,077 |
(b) |
27,900 |
(b) |
||||||||||||||
1,018 |
(c) |
1,808 |
(c) |
||||||||||||||
(225) |
(d) |
(417) |
(d) |
||||||||||||||
1,946 |
(e) |
3,169 |
(e) |
||||||||||||||
(63,152) |
(f) |
(17,947) |
(f) |
||||||||||||||
(10,165) |
(g) |
(5,880) |
(g) |
||||||||||||||
2,169 |
(h) |
2,210 |
(h) |
||||||||||||||
Net income attributable to SINA |
$ 58,647 |
$ (41,550) |
$ 17,097 |
$ 1,359 |
$ 5,625 |
$ 6,984 |
|||||||||||
Diluted net income per share attributable to SINA * |
$ 0.82 |
$ 0.23 |
$ 0.02 |
$ 0.10 |
|||||||||||||
Shares used in computing diluted |
|||||||||||||||||
net income per share attributable to SINA |
76,982 |
(6,467) |
(i) |
70,515 |
58,837 |
- |
58,837 |
||||||||||
Gross margin - advertising |
62% |
1% |
63% |
59% |
1% |
60% |
|||||||||||
Gross margin - non-advertising |
62% |
-3% |
59% |
58% |
-4% |
54% |
|||||||||||
(a) To adjust the recognition of deferred revenue related to the license agreements granted to E-House. |
|||||||||||||||||
(b) To adjust stock-based compensation. |
|||||||||||||||||
(c) To adjust amortization of intangible assets. |
|||||||||||||||||
(d) To adjust the tax provision on amortization of intangible assets. |
|||||||||||||||||
(e) To adjust 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 adjust (gain) loss on sale of investments/business, (gain) loss on deemed disposal and impairment on investments, net. |
|||||||||||||||||
(g) To adjust Non-GAAP to GAAP reconciling items for the (income) loss attributable to non-controlling interests. |
|||||||||||||||||
(h) To adjust the amortization of convertible debt issuance cost. |
|||||||||||||||||
(i) 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. |
|||||||||||||||||
UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' NON-GAAP TO GAAP RESULTS* |
|||||||||||||||||
Three months ended |
|||||||||||||||||
June 30, 2016 |
June 30, 2015 |
March 31, 2016 |
|||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
|||||||||
To adjust stock-based compensation |
$ 1,356 |
$ 1,395 |
$ 1,555 |
||||||||||||||
To adjust amortization of intangible |
|||||||||||||||||
assets resulting from business acquisitions |
407 |
416 |
604 |
||||||||||||||
To adjust gain on sale of investments |
(739) |
- |
(808) |
||||||||||||||
To adjust the (gain) loss resulting from |
|||||||||||||||||
the fair value changes in investments |
1,236 |
(1,224) |
(2,126) |
||||||||||||||
Loss from equity method investments, net |
$ (6,023) |
$ 2,260 |
$ (3,763) |
$ (2,433) |
$ 587 |
$ (1,846) |
$ (10,270) |
$ (775) |
$ (11,045) |
||||||||
Share of amortization of equity investments' |
|||||||||||||||||
intangibles not on their books |
$ (167) |
$ 167 |
$ - |
$ (296) |
$ 296 |
$ - |
$ (294) |
$ 294 |
$ - |
||||||||
$ (6,190) |
$ 2,427 |
$ (3,763) |
$ (2,729) |
$ 883 |
$ (1,846) |
$ (10,564) |
$ (481) |
$ (11,045) |
|||||||||
Six months ended |
|||||||||||||||||
June 30, 2016 |
June 30, 2015 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||||
To adjust stock-based compensation |
$ 2,911 |
$ 2,776 |
|||||||||||||||
To adjust amortization of intangible |
|||||||||||||||||
assets resulting from business acquisitions |
1,011 |
1,023 |
|||||||||||||||
To adjust gain on sale of investments |
(1,547) |
- |
|||||||||||||||
To adjust the gain resulting from the fair |
|||||||||||||||||
value changes in investments |
(890) |
(1,224) |
|||||||||||||||
Earning (Loss) from equity method investments, net |
$ (16,293) |
$ 1,485 |
$ (14,808) |
$ 1,517 |
$ 2,575 |
$ 4,092 |
|||||||||||
Share of amortization of equity investments' |
|||||||||||||||||
intangibles not on their books |
$ (461) |
$ 461 |
$ - |
$ (594) |
$ 594 |
$ - |
|||||||||||
$ (16,754) |
$ 1,946 |
$ (14,808) |
$ 923 |
$ 3,169 |
$ 4,092 |
||||||||||||
* 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-second-quarter-2016-financial-results-300310600.html
SOURCE