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SINA Reports Third Quarter 2014 Financial Results
Third Quarter 2014 Highlights
- Net revenues increased 8% year over year to
$198.6 million . Non-GAAP net revenues increased 9% year over year to$196.0 million , within the Company's guidance of between$193 million and $199 million . - Advertising revenues grew 10% year over year to
$166.8 million . Non-advertising revenues were$31.8 million . Non-GAAP non-advertising revenues grew 3% year over year to$29.2 million . - Net income attributable to
SINA was$133.6 million , or$1.91 diluted net income per share attributable toSINA . Non-GAAP net income attributable toSINA was$13.1 million , or$0.19 non-GAAP diluted net income per share attributable toSINA .
"In the third quarter of 2014,
Third Quarter 2014 Financial Results
For the third quarter of 2014,
Online advertising revenues for the third quarter of 2014 were
Non-advertising revenues for the third quarter of 2014 were
Gross margin for the third quarter of 2014 was 63%, compared to 64% for the same period last year. Advertising gross margin for the third quarter of 2014 was 62%, compared to 64% for the same period last year. Non-advertising gross margin for the third quarter of 2014 was 67%. Non-GAAP non-advertising gross margin for the third quarter of 2014 was 64%, compared to 58% for the same period last year, resulting from a shift in revenue mix from low-margin MVAS to higher margin Weibo VAS.
Operating expenses for the third quarter of 2014 totaled
Loss from operations for the third quarter of 2014 was
Non-operating income for the third quarter of 2014 was
Net income attributable to
As of
Other Developments
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 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 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 |
Passcode for all regions: |
31268045 |
A replay of the conference call will be available through morning Eastern Time
About
We are an 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. Our mobile portal, SINA.cn, provides news information 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: 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, |
|||||||
2014 |
2013 |
2014 |
2014 |
2013 |
|||||
Net revenues: |
|||||||||
Advertising |
$ 166,790 |
$ 151,556 |
$ 155,835 |
$ 458,351 |
$ 366,424 |
||||
Non-advertising |
31,823 |
33,074 |
31,178 |
98,753 |
101,664 |
||||
198,613 |
184,630 |
187,013 |
557,104 |
468,088 |
|||||
Cost of revenues: |
|||||||||
Advertising * |
63,142 |
54,585 |
63,384 |
181,382 |
159,015 |
||||
Non-advertising |
10,642 |
11,929 |
10,258 |
34,575 |
41,996 |
||||
73,784 |
66,514 |
73,642 |
215,957 |
201,011 |
|||||
Gross profit |
124,829 |
118,116 |
113,371 |
341,147 |
267,077 |
||||
Operating expenses: |
|||||||||
Sales and marketing * |
60,954 |
43,803 |
56,944 |
167,858 |
113,946 |
||||
Product development * |
49,372 |
36,851 |
47,696 |
141,603 |
108,926 |
||||
General and administrative * |
25,355 |
14,271 |
19,406 |
61,937 |
49,059 |
||||
Impairment on goodwill |
- |
- |
14,526 |
14,526 |
- |
||||
135,681 |
94,925 |
138,572 |
385,924 |
271,931 |
|||||
Income (Loss) from operations |
(10,852) |
23,191 |
(25,201) |
(44,777) |
(4,854) |
||||
Non-operating income: |
|||||||||
Earning from equity method investments, net |
4,670 |
3,201 |
2,912 |
16,304 |
6,016 |
||||
Gain (loss) on sale of and impairment on investments, net |
128,599 |
(1,607) |
26,932 |
155,150 |
(10,609) |
||||
Change in fair value of investor option liability |
- |
665 |
(6,784) |
(46,972) |
1,529 |
||||
Interest and other income, net |
11,019 |
5,396 |
8,116 |
21,090 |
14,375 |
||||
144,288 |
7,655 |
31,176 |
145,572 |
11,311 |
|||||
Income before income taxes |
133,436 |
30,846 |
5,975 |
100,795 |
6,457 |
||||
Income tax benefits (expenses) |
(2,656) |
(5,297) |
1,474 |
34 |
(8,507) |
||||
Net income (loss) |
130,780 |
25,549 |
7,449 |
100,829 |
(2,050) |
||||
Less: Net income (loss) attributable to non-controlling interests |
(2,815) |
163 |
(9,173) |
(16,222) |
(2,732) |
||||
Net income attributable to SINA |
$ 133,595 |
$ 25,386 |
$ 16,622 |
$ 117,051 |
$ 682 |
||||
Basic net income per share attributable to SINA |
$ 2.06 |
$ 0.38 |
$ 0.25 |
$ 1.78 |
$ 0.01 |
||||
Diluted net income (loss) per share attributable to SINA ** |
$ 1.91 |
$ 0.37 |
$ 0.25 |
$ 1.74 |
$ (0.00) |
||||
Shares used in computing basic |
|||||||||
net income per share attributable to SINA |
64,963 |
66,918 |
65,806 |
65,601 |
66,806 |
||||
Shares used in computing diluted |
|||||||||
net income (loss) per share attributable to SINA |
71,509 |
67,330 |
65,918 |
72,218 |
66,806 |
||||
* Stock-based compensation in each category: |
|||||||||
Cost of revenues - advertising |
$ 923 |
$ 565 |
$ 724 |
$ 2,422 |
$ 5,593 |
||||
Sales and marketing |
1,465 |
789 |
1,103 |
3,715 |
7,802 |
||||
Product development |
2,090 |
864 |
1,530 |
4,975 |
10,449 |
||||
General and administrative |
4,164 |
2,437 |
4,072 |
11,846 |
17,710 |
||||
** Net income (loss) 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) |
|||||
September 30, |
December 31, |
||||
2014 |
2013 |
||||
Assets |
|||||
Current assets: |
|||||
Cash and cash equivalents |
$ 1,328,989 |
$ 916,276 |
|||
Short-term investments |
992,564 |
951,963 |
|||
Accounts receivable, net |
214,749 |
193,381 |
|||
Prepaid expenses and other current assets |
231,791 |
57,182 |
|||
Subtotal |
2,768,093 |
2,118,802 |
|||
Property and equipment, net |
70,091 |
80,920 |
|||
Goodwill and intangible assets, net |
59,882 |
58,189 |
|||
Long-term investments, net |
716,192 |
526,587 |
|||
Other assets |
164,831 |
113,345 |
|||
Total assets |
$ 3,779,089 |
$ 2,897,843 |
|||
Liabilities and Shareholders' Equity |
|||||
Current liabilities: |
|||||
Accounts payable |
$ 3,080 |
$ 6,988 |
|||
Accrued liabilities |
296,089 |
220,837 |
|||
Deferred revenues |
47,668 |
49,200 |
|||
Income taxes payable |
12,705 |
21,577 |
|||
Investor option liability |
- |
29,504 |
|||
Subtotal |
359,542 |
328,106 |
|||
Convertible debt |
800,000 |
800,000 |
|||
Long-term deferred revenue |
87,999 |
89,039 |
|||
Other long-term liabilities |
3,963 |
5,080 |
|||
Total liabilities |
1,251,504 |
1,222,225 |
|||
Shareholders' equity |
|||||
SINA shareholders' equity |
2,257,805 |
1,191,210 |
|||
Non-controlling interests |
269,780 |
484,408 |
|||
Total shareholders' equity |
2,527,585 |
1,675,618 |
|||
Total liabilities and shareholders' equity |
$ 3,779,089 |
$ 2,897,843 |
SINA CORPORATION |
||||||||||
UNAUDITED ADDITIONAL INFORMATION |
||||||||||
(U.S. Dollars in thousands) |
||||||||||
Three months ended |
Nine months ended |
|||||||||
September 30, |
June 30, |
September 30, |
||||||||
2014 |
2013 |
2014 |
2014 |
2013 |
||||||
Net revenues |
||||||||||
Portal: |
||||||||||
Portal Advertising |
$ 101,417 |
$ 107,894 |
$ 96,252 |
$ 281,542 |
$ 274,043 |
|||||
Other |
13,066 |
23,370 |
13,441 |
46,602 |
77,156 |
|||||
Subtotal |
114,483 |
131,264 |
109,693 |
328,144 |
351,199 |
|||||
|
84,130 |
53,366 |
77,320 |
228,960 |
116,889 |
|||||
$ 198,613 |
$ 184,630 |
$ 187,013 |
$ 557,104 |
$ 468,088 |
||||||
Cost of revenues |
||||||||||
Portal: |
||||||||||
Portal Advertising |
$ 44,811 |
$ 41,458 |
$ 46,512 |
$ 130,779 |
$ 117,999 |
|||||
Other |
8,303 |
10,532 |
7,430 |
27,365 |
39,363 |
|||||
Subtotal |
53,114 |
51,990 |
53,942 |
158,144 |
157,362 |
|||||
|
20,670 |
14,524 |
19,700 |
57,813 |
43,649 |
|||||
$ 73,784 |
$ 66,514 |
$ 73,642 |
$ 215,957 |
$ 201,011 |
SINA CORPORATION |
|||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
|||||||||||||||||
(U.S. Dollars in thousands, except per share data) |
|||||||||||||||||
Three months ended |
|||||||||||||||||
September 30, 2014 |
September 30, 2013 |
June 30, 2014 |
|||||||||||||||
Non-GAAP |
Non-GAAP |
Non-GAAP |
|||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
|||||||||
Advertising revenues |
$ 166,790 |
$ 166,790 |
$ 151,556 |
$ 151,556 |
$ 155,835 |
$ 155,835 |
|||||||||||
Non-advertising revenues |
31,823 |
(2,609) |
(a) |
29,214 |
33,074 |
(4,687) |
(a) |
28,387 |
31,178 |
(2,609) |
(a) |
28,569 |
|||||
Net revenues |
$ 198,613 |
$ (2,609) |
$ 196,004 |
$ 184,630 |
$ (4,687) |
$ 179,943 |
$ 187,013 |
$ (2,609) |
$ 184,404 |
||||||||
(2,609) |
(a) |
(4,687) |
(a) |
(2,609) |
(a) |
||||||||||||
923 |
(b) |
565 |
(b) |
724 |
(b) |
||||||||||||
Gross profit |
$ 124,829 |
$ (1,686) |
$ 123,143 |
$ 118,116 |
$ (4,122) |
$ 113,994 |
$ 113,371 |
$ (1,885) |
$ 111,486 |
||||||||
(6,705) |
(b) |
||||||||||||||||
(7,719) |
(b) |
(4,090) |
(b) |
(474) |
(c) |
||||||||||||
(815) |
(c) |
(288) |
(c) |
(14,526) |
(i) |
||||||||||||
Operating expenses |
$ 135,681 |
$ (8,534) |
$ 127,147 |
$ 94,925 |
$ (4,378) |
$ 90,547 |
$ 138,572 |
$ (21,705) |
$ 116,867 |
||||||||
(2,609) |
(a) |
||||||||||||||||
(2,609) |
(a) |
(4,687) |
(a) |
7,429 |
(b) |
||||||||||||
8,642 |
(b) |
4,655 |
(b) |
474 |
(c) |
||||||||||||
815 |
(c) |
288 |
(c) |
14,526 |
(i) |
||||||||||||
Income (loss) from operations |
$ (10,852) |
$ 6,848 |
$ (4,004) |
$ 23,191 |
$ 256 |
$ 23,447 |
$ (25,201) |
$ 19,820 |
$ (5,381) |
||||||||
(2,609) |
(a) |
||||||||||||||||
7,429 |
(b) |
||||||||||||||||
(2,609) |
(a) |
(4,687) |
(a) |
369 |
(c) |
||||||||||||
8,642 |
(b) |
4,655 |
(b) |
2,279 |
(d) |
||||||||||||
630 |
(c) |
219 |
(c) |
(26,932) |
(e) |
||||||||||||
2,463 |
(d) |
2,496 |
(d) |
6,784 |
(f) |
||||||||||||
(128,599) |
(e) |
1,607 |
(e) |
(7,791) |
(g) |
||||||||||||
(2,373) |
(g) |
(665) |
(f) |
1,398 |
(h) |
||||||||||||
1,398 |
(h) |
(515) |
(g) |
14,526 |
(i) |
||||||||||||
Net income attributable to SINA |
$ 133,595 |
$ (120,448) |
$ 13,147 |
$ 25,386 |
$ 3,110 |
$ 28,496 |
$ 16,622 |
$ (4,547) |
$ 12,075 |
||||||||
Diluted net income per share attributable to SINA * |
$ 1.91 |
$ 0.19 |
$ 0.37 |
$ 0.42 |
$ 0.25 |
$ 0.17 |
|||||||||||
Shares used in computing diluted |
|||||||||||||||||
net income per share attributable to SINA |
71,509 |
(6,468) |
(j) |
65,041 |
67,330 |
- |
67,330 |
65,918 |
- |
65,918 |
|||||||
Gross margin - advertising |
62% |
1% |
63% |
64% |
0% |
64% |
59% |
1% |
60% |
||||||||
Gross margin - non-advertising |
67% |
-3% |
64% |
64% |
-6% |
58% |
67% |
-3% |
64% |
||||||||
Nine months ended |
|||||||||||||||||
September 30, 2014 |
September 30, 2013 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||||
Advertising revenues |
$ 458,351 |
$ 458,351 |
$ 366,424 |
$ 366,424 |
|||||||||||||
Non-advertising revenues |
98,753 |
(9,350) |
(a) |
89,403 |
101,664 |
(14,059) |
(a) |
87,605 |
|||||||||
Net revenues |
$ 557,104 |
$ (9,350) |
$ 547,754 |
$ 468,088 |
$ (14,059) |
$ 454,029 |
|||||||||||
(9,350) |
(a) |
(14,059) |
(a) |
||||||||||||||
2,422 |
(b) |
5,593 |
(b) |
||||||||||||||
Gross profit |
$ 341,147 |
$ (6,928) |
$ 334,219 |
$ 267,077 |
$ (8,466) |
$ 258,611 |
|||||||||||
(20,536) |
(b) |
||||||||||||||||
(2,460) |
(c) |
(35,961) |
(b) |
||||||||||||||
(14,526) |
(i) |
(312) |
(c) |
||||||||||||||
Operating expenses |
$ 385,924 |
$ (37,522) |
$ 348,402 |
$ 271,931 |
$ (36,273) |
$ 235,658 |
|||||||||||
(9,350) |
(a) |
||||||||||||||||
22,958 |
(b) |
(14,059) |
(a) |
||||||||||||||
2,460 |
(c) |
41,554 |
(b) |
||||||||||||||
14,526 |
(i) |
312 |
(c) |
||||||||||||||
Income (loss) from operations |
$ (44,777) |
$ 30,594 |
$ (14,183) |
$ (4,854) |
$ 27,807 |
$ 22,953 |
|||||||||||
(9,350) |
(a) |
||||||||||||||||
22,958 |
(b) |
||||||||||||||||
1,898 |
(c) |
(14,059) |
(a) |
||||||||||||||
6,684 |
(d) |
41,554 |
(b) |
||||||||||||||
(155,150) |
(e) |
243 |
(c) |
||||||||||||||
46,972 |
(f) |
8,645 |
(d) |
||||||||||||||
(13,453) |
(g) |
10,609 |
(e) |
||||||||||||||
4,194 |
(h) |
(1,529) |
(f) |
||||||||||||||
14,526 |
(i) |
(1,876) |
(g) |
||||||||||||||
Net income attributable to SINA |
$ 117,051 |
$ (80,721) |
$ 36,330 |
$ 682 |
$ 43,587 |
$ 44,269 |
|||||||||||
Diluted net income (loss) per share attributable to SINA * |
$ 1.74 |
$ 0.52 |
$ (0.00) |
$ 0.65 |
|||||||||||||
Shares used in computing diluted |
|||||||||||||||||
net income (loss) per share attributable to SINA |
72,218 |
(6,467) |
(j) |
65,751 |
66,806 |
316 |
(j) |
67,122 |
|||||||||
Gross margin - advertising |
60% |
1% |
61% |
57% |
1% |
58% |
|||||||||||
Gross margin - non-advertising |
65% |
-4% |
61% |
59% |
-7% |
52% |
|||||||||||
(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 and tax provision on amortization of intangible assets. |
|||||||||||||||||
(d) To adjust the GAAP to Non-GAAP reconciling items on the share of equity method investments, net of share of amortization of intangibles not on their books. |
|||||||||||||||||
(e) To adjust gain (loss) on sale of investments, gain (loss) on deemed disposal and (impairment) on investments, net. |
|||||||||||||||||
(f) To adjust the change in fair value of investor option liability. |
|||||||||||||||||
(g) To adjust GAAP to Non-GAAP reconciling items for the gain (loss) attributable to non-controlling interests. |
|||||||||||||||||
(h) To adjust convertible debt issuance cost. |
|||||||||||||||||
(i) To adjust impairment on goodwill. |
|||||||||||||||||
(j) 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' GAAP TO NON-GAAP RESULTS* |
|||||||||||||||||
Three months ended |
|||||||||||||||||
September 30, 2014 |
September 30, 2013 |
June 30, 2014 |
|||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
|||||||||
To adjust stock-based compensation |
$ 1,657 |
$ 1,118 |
$ 1,183 |
||||||||||||||
To adjust amortization of intangible |
|||||||||||||||||
assets resulting from business acquisitions |
497 |
941 |
778 |
||||||||||||||
Earning from equity method investments, net |
$ 4,979 |
$ 2,154 |
$ 7,133 |
$ 3,638 |
$ 2,059 |
$ 5,697 |
$ 3,230 |
$ 1,961 |
$ 5,191 |
||||||||
Share of amortization of equity investments' |
|||||||||||||||||
intangibles not on their books |
$ (309) |
$ 309 |
$ - |
$ (437) |
$ 437 |
$ - |
$ (318) |
$ 318 |
$ - |
||||||||
$ 4,670 |
$ 2,463 |
$ 7,133 |
$ 3,201 |
$ 2,496 |
$ 5,697 |
$ 2,912 |
$ 2,279 |
$ 5,191 |
|||||||||
Nine months ended |
|||||||||||||||||
September 30, 2014 |
September 30, 2013 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||||
To adjust stock-based compensation |
$ 3,883 |
$ 4,158 |
|||||||||||||||
To adjust amortization of intangible |
|||||||||||||||||
assets resulting from business acquisitions |
1,851 |
3,193 |
|||||||||||||||
Earning from equity method investments, net |
$ 17,254 |
$ 5,734 |
$ 22,988 |
$ 7,310 |
$ 7,351 |
$ 14,661 |
|||||||||||
Share of amortization of equity investments' |
|||||||||||||||||
intangibles not on their books |
$ (950) |
$ 950 |
$ - |
$ (1,294) |
$ 1,294 |
$ - |
|||||||||||
$ 16,304 |
$ 6,684 |
$ 22,988 |
$ 6,016 |
$ 8,645 |
$ 14,661 |
||||||||||||
* Earning from equity method investments is recorded one quarter in arrears. |
SOURCE