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SINA Reports Third Quarter 2013 Financial Results
Third Quarter 2013 Highlights
- Net revenues increased 21% year over year to
$184.6 million . Non-GAAP net revenues increased 22% year over year to$179.9 million , reaching the high end of the Company's guidance between$176.0 million and $180.0 million . - Advertising revenues grew 26% year over year to
$151.6 million , within the Company's guidance between$151.0 million and $153.0 million . - Non-advertising revenues increased 4% year over year to
$33.1 million . Non-GAAP non-advertising revenues increased 5% year over year to$28.4 million , exceeding the Company's guidance between$25.0 million and $27.0 million , mainly driven by the growth of Weibo value-added Services ("Weibo VAS") revenues. - Net income attributable to
SINA grew 157% year over year to$25.4 million , or$0.37 diluted net income per share attributable toSINA . Non-GAAP net income attributable toSINA grew 144% year over year to$28.5 million , or$0.42 non-GAAP diluted net income per share attributable toSINA .
Highlights for the Nine Months Ended
- Net revenues increased 20% year over year to
$468.1 million . Non-GAAP net revenues increased 21% year over year to$454.0 million . - Advertising revenues grew 21% year over year to
$366.4 million . - Non-advertising revenues increased 16% year over year to
$101.7 million . Non-GAAP non-advertising revenues increased 19% year over year to$87.6 million . - Net income attributable to
SINA was$0.7 million , or less than$0.01 diluted net loss per share attributable toSINA . Non-GAAP net income attributable toSINA was$44.3 million , compared to$1.4 million for the same period last year. Non-GAAP diluted net income per share attributable toSINA was$0.65 , compared to$0.01 for the same period last year.
"We are pleased with our results for the third quarter with significant growth in profitability driven primarily by strong momentum in Weibo monetization," said
Financial Results
For the third quarter of 2013,
Online advertising revenues for the third quarter of 2013 were
Net revenues for the nine months ended
Gross margin for the third quarter of 2013 was 64%, compared to 54% for the same period last year. Advertising gross margin was 64%, compared to 55% for the same period last year. Non-GAAP advertising gross margin increased to 64%, up from 56% for the same period last year, reflecting
Gross margin for the nine months ended
Operating expenses for the third quarter of 2013 totaled
Operating expenses for the nine months ended
Income from operations for the third quarter of 2013 was
Loss from operations for the nine months ended
Non-operating income for the third quarter of 2013 was
Non-operating income for the nine months ended
Net income attributable to
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 and non-advertising gross margin, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income/(loss) from operations, non-GAAP income/(loss) from equity investments, non-GAAP net income/(loss) attributable to
The Company's non-GAAP financial measures exclude 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, change in fair value of investor options liability and tax provision on amortization of intangible assets. 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, 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: |
96197754 |
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. Based on an open platform architecture to host organically developed and third-party applications, Weibo is a form of social media, featuring microblogging services and social networking services that allow users to connect and share information anywhere, anytime and with anyone on the platform. SINA.cn provides information and entertainment content from
Through these properties and other product lines,
Safe Harbor Statement
This press release contains forward-looking statements that relate to, among other things,
[1] This release contains certain non-GAAP financial measures to provide supplemental information regarding
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 |
Nine months ended |
||||||||
September 30, |
June 30, |
September 30, |
|||||||
2013 |
2012 |
2013 |
2013 |
2012 |
|||||
Net revenues: |
|||||||||
Advertising |
$ 151,556 |
$ 120,590 |
$ 120,579 |
$ 366,424 |
$ 302,262 |
||||
Non-advertising |
33,074 |
31,788 |
36,906 |
101,664 |
87,941 |
||||
184,630 |
152,378 |
157,485 |
468,088 |
390,203 |
|||||
Cost of revenues: |
|||||||||
Advertising (a) |
54,585 |
54,010 |
56,620 |
159,015 |
146,566 |
||||
Non-advertising |
11,929 |
15,428 |
16,520 |
41,996 |
41,605 |
||||
66,514 |
69,438 |
73,140 |
201,011 |
188,171 |
|||||
Gross profit |
118,116 |
82,940 |
84,345 |
267,077 |
202,032 |
||||
Operating expenses: |
|||||||||
Sales and marketing (a) |
43,803 |
38,439 |
40,119 |
113,946 |
107,654 |
||||
Product development (a) |
36,563 |
28,392 |
41,250 |
108,614 |
79,554 |
||||
General and administrative (a) |
14,271 |
12,308 |
21,159 |
49,059 |
28,817 |
||||
Amortization of intangibles |
288 |
12 |
12 |
312 |
132 |
||||
94,925 |
79,151 |
102,540 |
271,931 |
216,157 |
|||||
Income/(loss) from operations |
23,191 |
3,789 |
(18,195) |
(4,854) |
(14,125) |
||||
Non-operating income: |
|||||||||
Earning/(loss) from equity investments, net |
3,201 |
883 |
1,289 |
6,016 |
(6,353) |
||||
Gain/(loss) on sale of and impairment on investments, net |
(1,607) |
3,004 |
1,850 |
(10,609) |
38,835 |
||||
Interest and other income, net |
6,061 |
4,388 |
5,058 |
15,904 |
12,701 |
||||
7,655 |
8,275 |
8,197 |
11,311 |
45,183 |
|||||
Income/(loss) before income taxes |
30,846 |
12,064 |
(9,998) |
6,457 |
31,058 |
||||
Provision for income taxes |
(5,297) |
(1,592) |
(3,025) |
(8,507) |
(1,351) |
||||
Net income/(loss) |
25,549 |
10,472 |
(13,023) |
(2,050) |
29,707 |
||||
Less: Net income/(loss) attributable to noncontrolling interest |
163 |
594 |
(1,490) |
(2,732) |
324 |
||||
Net income/(loss) attributable to SINA |
$ 25,386 |
$ 9,878 |
$ (11,533) |
$ 682 |
$ 29,383 |
||||
Basic net income/(loss) per share attributable to SINA |
$ 0.38 |
$ 0.15 |
$ (0.17) |
$ 0.01 |
$ 0.44 |
||||
Diluted net income/(loss) per share attributable to SINA |
$ 0.37 |
$ 0.14 |
$ (0.17) |
$ (0.00) |
$ 0.43 |
||||
Shares used in computing basic |
|||||||||
net income/(loss) per share attributable to SINA |
66,918 |
66,496 |
66,814 |
66,806 |
66,339 |
||||
Shares used in computing diluted |
|||||||||
net income/(loss) per share attributable to SINA |
67,330 |
66,874 |
66,814 |
66,806 |
66,822 |
||||
(a) Stock-based compensation in each category: |
|||||||||
Cost of revenues - advertising |
$ 565 |
$ 865 |
$ 4,460 |
$ 5,593 |
$ 2,423 |
||||
Sales and marketing |
789 |
1,187 |
6,223 |
7,802 |
2,707 |
||||
Product development |
864 |
1,011 |
8,794 |
10,449 |
2,946 |
||||
General and administrative |
2,437 |
3,267 |
12,155 |
17,710 |
5,746 |
SINA CORPORATION |
||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
(U.S. Dollars in thousands) |
||||
September 30, |
December 31, |
|||
2013 |
2012 |
|||
Assets |
||||
Current assets: |
||||
Cash and cash equivalents |
$ 566,365 |
$ 199,826 |
||
Short-term investments |
651,563 |
513,772 |
||
Accounts receivable, net |
187,335 |
135,251 |
||
Prepaid expenses and other current assets |
35,514 |
36,498 |
||
Total current assets |
1,440,777 |
885,347 |
||
Property and equipment, net |
72,046 |
76,640 |
||
Goodwill and intangible assets, net |
26,623 |
15,840 |
||
Equity investments, net |
518,740 |
466,875 |
||
Other assets |
83,855 |
38,204 |
||
Total assets |
$ 2,142,041 |
$ 1,482,906 |
||
Liabilities and Shareholders' Equity |
||||
Current liabilities: |
||||
Accounts payable |
$ 6,253 |
$ 7,994 |
||
Accrued liabilities |
230,050 |
168,677 |
||
Deferred revenues |
46,848 |
36,892 |
||
Income taxes payable |
17,124 |
13,466 |
||
Investor options liability |
49,040 |
- |
||
Total current liabilities |
349,315 |
227,029 |
||
Long-term deferred revenue |
93,725 |
107,784 |
||
Other long-term liabilities |
3,164 |
2,220 |
||
Total liabilities |
446,204 |
337,033 |
||
Shareholders' equity |
||||
SINA shareholders' equity |
1,214,357 |
1,136,670 |
||
Non-controlling interest |
481,480 |
9,203 |
||
Total shareholders' equity |
1,695,837 |
1,145,873 |
||
Total liabilities and shareholders' equity |
$ 2,142,041 |
$ 1,482,906 |
SINA CORPORATION |
||||||||||
UNAUDITED ADDITIONAL INFORMATION |
||||||||||
(U.S. Dollars in thousands) |
||||||||||
Three months ended |
Nine months ended |
|||||||||
September 30, |
June 30, |
September 30, |
||||||||
2013 |
2012 |
2013 |
2013 |
2012 |
||||||
Net revenues |
||||||||||
Advertising |
$ 151,556 |
$ 120,590 |
$ 120,579 |
$ 366,424 |
$ 302,262 |
|||||
MVAS |
13,454 |
19,079 |
19,920 |
49,237 |
55,765 |
|||||
Others |
19,620 |
12,709 |
16,986 |
52,427 |
32,176 |
|||||
$ 184,630 |
$ 152,378 |
$ 157,485 |
$ 468,088 |
$ 390,203 |
||||||
Cost of revenues |
||||||||||
Advertising |
$ 54,585 |
$ 54,010 |
$ 56,620 |
$ 159,015 |
$ 146,566 |
|||||
MVAS |
8,608 |
12,262 |
13,816 |
33,450 |
34,717 |
|||||
Others |
3,321 |
3,166 |
2,704 |
8,546 |
6,888 |
|||||
$ 66,514 |
$ 69,438 |
$ 73,140 |
$ 201,011 |
$ 188,171 |
SINA CORPORATION |
|||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
|||||||||||||||||
(U.S. Dollars in thousands, except per share data) |
|||||||||||||||||
Three months ended |
|||||||||||||||||
September 30, 2013 |
September 30, 2012 |
June 30, 2013 |
|||||||||||||||
Non-GAAP |
Non-GAAP |
Non-GAAP |
|||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
|||||||||
Advertising revenues |
$ 151,556 |
$ 151,556 |
$ 120,590 |
$ 120,590 |
$ 120,579 |
$ 120,579 |
|||||||||||
Non-advertising revenues |
33,074 |
(4,687) |
(c) |
28,387 |
31,788 |
(4,687) |
(c) |
27,101 |
36,906 |
(4,686) |
(c) |
32,220 |
|||||
Net revenues |
$ 184,630 |
$ (4,687) |
$ 179,943 |
$ 152,378 |
$ (4,687) |
$ 147,691 |
$ 157,485 |
$ (4,686) |
$ 152,799 |
||||||||
565 |
(a) |
865 |
(a) |
4,460 |
(a) |
||||||||||||
(4,687) |
(c) |
(4,687) |
(c) |
(4,686) |
(c) |
||||||||||||
Gross profit |
$ 118,116 |
$ (4,122) |
$ 113,994 |
$ 82,940 |
$ (3,822) |
$ 79,118 |
$ 84,345 |
$ (226) |
$ 84,119 |
||||||||
(4,090) |
(a) |
(5,465) |
(a) |
(27,172) |
(a) |
||||||||||||
(288) |
(b) |
(12) |
(b) |
(12) |
(b) |
||||||||||||
Operating expenses |
$ 94,925 |
$ (4,378) |
$ 90,547 |
$ 79,151 |
$ (5,477) |
$ 73,674 |
$ 102,540 |
$ (27,184) |
$ 75,356 |
||||||||
4,655 |
(a) |
6,330 |
(a) |
31,632 |
(a) |
||||||||||||
288 |
(b) |
12 |
(b) |
12 |
(b) |
||||||||||||
(4,687) |
(c) |
(4,687) |
(c) |
(4,686) |
(c) |
||||||||||||
Income/(loss) from operations |
$ 23,191 |
$ 256 |
$ 23,447 |
$ 3,789 |
$ 1,655 |
$ 5,444 |
$ (18,195) |
$ 26,958 |
$ 8,763 |
||||||||
4,655 |
(a) |
||||||||||||||||
288 |
(b) |
31,632 |
(a) |
||||||||||||||
(4,687) |
(c) |
12 |
(b) |
||||||||||||||
2,496 |
(d) |
6,330 |
(a) |
(4,686) |
(c) |
||||||||||||
1,607 |
(e) |
12 |
(b) |
2,874 |
(d) |
||||||||||||
(665) |
(f) |
(4,687) |
(c) |
(1,850) |
(e) |
||||||||||||
(515) |
(g) |
3,138 |
(d) |
(864) |
(f) |
||||||||||||
(69) |
(h) |
(3,004) |
(e) |
(1,361) |
(g) |
||||||||||||
Net income/(loss) attributable to SINA |
$ 25,386 |
$ 3,110 |
$ 28,496 |
$ 9,878 |
$ 1,789 |
$ 11,667 |
$ (11,533) |
$ 25,757 |
$ 14,224 |
||||||||
Diluted net income/(loss) per share attributable to SINA |
$ 0.37 |
$ 0.42 |
$ 0.14 |
$ 0.17 |
$ (0.17) |
$ 0.21 |
|||||||||||
Shares used in computing diluted |
|||||||||||||||||
net income/(loss) per share attributable to SINA |
67,330 |
- |
67,330 |
66,874 |
- |
66,874 |
66,814 |
270 |
(i) |
67,084 |
|||||||
Gross margin - advertising |
64% |
0% |
64% |
55% |
1% |
56% |
53% |
4% |
57% |
||||||||
Gross margin - non-advertising |
64% |
-6% |
58% |
51% |
-8% |
43% |
55% |
-6% |
* |
49% |
|||||||
Nine months ended |
|||||||||||||||||
September 30, 2013 |
September 30, 2012 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||||
Advertising revenues |
$ 366,424 |
$ 366,424 |
$ 302,262 |
$ 302,262 |
|||||||||||||
Non-advertising revenues |
101,664 |
(14,059) |
(c) |
87,605 |
87,941 |
(14,059) |
(c) |
73,882 |
|||||||||
Net revenues |
$ 468,088 |
$ (14,059) |
$ 454,029 |
$ 390,203 |
$ (14,059) |
$ 376,144 |
|||||||||||
5,593 |
(a) |
2,423 |
(a) |
||||||||||||||
(14,059) |
(c) |
(14,059) |
(c) |
||||||||||||||
Gross profit |
$ 267,077 |
$ (8,466) |
$ 258,611 |
$ 202,032 |
$ (11,636) |
$ 190,396 |
|||||||||||
(35,961) |
(a) |
(11,399) |
(a) |
||||||||||||||
(312) |
(b) |
(132) |
(b) |
||||||||||||||
Operating expenses |
$ 271,931 |
$ (36,273) |
$ 235,658 |
$ 216,157 |
$ (11,531) |
$ 204,626 |
|||||||||||
41,554 |
(a) |
13,822 |
(a) |
||||||||||||||
312 |
(b) |
132 |
(b) |
||||||||||||||
(14,059) |
(c) |
(14,059) |
(c) |
||||||||||||||
Income/(loss) from operations |
$ (4,854) |
$ 27,807 |
$ 22,953 |
$ (14,125) |
$ (105) |
$ (14,230) |
|||||||||||
41,554 |
(a) |
||||||||||||||||
312 |
(b) |
||||||||||||||||
(14,059) |
(c) |
||||||||||||||||
8,645 |
(d) |
13,822 |
(a) |
||||||||||||||
10,609 |
(e) |
132 |
(b) |
||||||||||||||
(1,529) |
(f) |
(14,059) |
(c) |
||||||||||||||
(1,876) |
(g) |
10,933 |
(d) |
||||||||||||||
(69) |
(h) |
(38,835) |
(e) |
||||||||||||||
Net income attributable to SINA |
$ 682 |
$ 43,587 |
$ 44,269 |
$ 29,383 |
$ (28,007) |
$ 1,376 |
|||||||||||
Diluted net income/(loss) per share attributable to SINA |
$ (0.00) |
$ 0.65 |
$ 0.43 |
$ 0.01 |
|||||||||||||
Shares used in computing diluted |
|||||||||||||||||
net income/(loss) per share attributable to SINA |
66,806 |
316 |
(i) |
67,122 |
66,822 |
- |
66,822 |
||||||||||
Gross margin - advertising |
57% |
1% |
* |
58% |
52% |
0% |
* |
52% |
|||||||||
Gross margin - non-advertising |
59% |
-7% |
52% |
53% |
-9% |
44% |
|||||||||||
(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 liability |
|||||||||||||||||
(g) To adjust GAAP to Non-GAAP reconciling items for the gain/(loss) attributable to noncontrolling interest |
|||||||||||||||||
(h) To adjust tax provision on amortization of intangible assets |
|||||||||||||||||
(i) 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 |
|||||||||||||||||
September 30, 2013 |
September 30, 2012 |
June 30, 2013 |
|||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
|||||||||
To adjust stock-based compensation |
$ 1,118 |
$ 2,046 |
$ 1,408 |
||||||||||||||
To adjust amortization expenses of intangible |
|||||||||||||||||
assets resulting from business acquisitions |
941 |
749 |
1,050 |
||||||||||||||
Earning from equity investments, net |
$ 3,638 |
$ 2,059 |
$ 5,697 |
$ 1,226 |
$ 2,795 |
$ 4,021 |
$ 1,705 |
$ 2,458 |
$ 4,163 |
||||||||
Share of amortization of equity investments' |
|||||||||||||||||
intangibles not on their books |
$ (437) |
$ 437 |
$ - |
$ (343) |
$ 343 |
$ - |
$ (416) |
$ 416 |
$ - |
||||||||
$ 3,201 |
$ 2,496 |
$ 5,697 |
$ 883 |
$ 3,138 |
$ 4,021 |
$ 1,289 |
$ 2,874 |
$ 4,163 |
|||||||||
Nine months ended |
|||||||||||||||||
September 30, 2013 |
September 30, 2012 |
||||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
||||||||||||
To adjust stock-based compensation |
$ 4,158 |
$ 5,161 |
|||||||||||||||
To adjust amortization expenses of intangible |
|||||||||||||||||
assets resulting from business acquisitions |
3,193 |
4,100 |
|||||||||||||||
Earning/(loss) from equity investments, net |
$ 7,310 |
$ 7,351 |
$ 14,661 |
$ (4,681) |
$ 9,261 |
$ 4,580 |
|||||||||||
Share of amortization of equity investments' |
|||||||||||||||||
intangibles not on their books |
$ (1,294) |
$ 1,294 |
$ - |
$ (1,672) |
$ 1,672 |
$ - |
|||||||||||
$ 6,016 |
$ 8,645 |
$ 14,661 |
$ (6,353) |
$ 10,933 |
$ 4,580 |
||||||||||||
* Earning/(loss) from equity investments is recorded one quarter in arrears. |
* Earning/(loss) from equity investments is recorded one quarter in arrears. |
SOURCE