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SINA Reports Third Quarter 2015 Financial Results
Third Quarter 2015 Highlights
- Net revenues increased 14% year over year to
$226.3 million . Non-GAAP net revenues increased 14% year over year to$223.7 million . - Advertising revenues grew 16% year over year to
$193.5 million . Non-advertising revenues were$32.8 million . Non-GAAP non-advertising revenues were$30.2 million . - Net income attributable to
SINA was$9.8 million , or$0.16 diluted net income per share attributable toSINA . Non-GAAP net income attributable toSINA was$24.4 million , or$0.39 non-GAAP diluted net income per share attributable toSINA .
"We are pleased with
"For SINA's portal business, taking macro factors into account, our performance was largely in line with our expectation. We are encouraged by the progresses we made on monetizing mobile traffic and expanding our customer community. In addition, we will persist with our business endeavor to diversify our business models and implement the vertical strategy." Mr. Chao added.
Third Quarter 2015 Financial Results
For the third quarter of 2015,
Online advertising revenues for the third quarter of 2015 were
Non-advertising revenues for the third quarter of 2015 were
Gross margin for the third quarter of 2015 was 63%, at similar level for the same period last year. Advertising gross margin for the third quarter of 2015 was 64%, compared to 62% for the same period last year. Non-advertising gross margin for the third quarter of 2015 was 60%, compared to 67% for the same period last year. The decline in non-advertising margin was primarily due to the decrease in higher margin data licensing revenue and increase in lower margin contribution of portal's early stage new business.
Operating expenses for the third quarter of 2015 totaled
Income from operations for the third quarter of 2015 was
Non-operating income for the third quarter of 2015 was
Net income attributable to
As of
Other Developments
On
On
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 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: |
73460018 |
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: +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 |
Nine months ended |
||||||||
September 30, |
June 30, |
September 30, |
|||||||
2015 |
2014 |
2015 |
2015 |
2014 |
|||||
Net revenues: |
|||||||||
Advertising |
$ 193,459 |
$ 166,790 |
$ 176,258 |
$ 520,070 |
$ 458,351 |
||||
Non-advertising |
32,835 |
31,823 |
37,340 |
104,409 |
98,753 |
||||
226,294 |
198,613 |
213,598 |
624,479 |
557,104 |
|||||
Cost of revenues: |
|||||||||
Advertising * |
69,741 |
63,142 |
68,978 |
202,668 |
181,382 |
||||
Non-advertising |
13,276 |
10,642 |
17,014 |
43,658 |
34,575 |
||||
83,017 |
73,784 |
85,992 |
246,326 |
215,957 |
|||||
Gross profit |
143,277 |
124,829 |
127,606 |
378,153 |
341,147 |
||||
Operating expenses: |
|||||||||
Sales and marketing * |
53,342 |
60,954 |
53,984 |
167,577 |
167,858 |
||||
Product development * |
54,417 |
49,372 |
51,788 |
157,818 |
141,603 |
||||
General and administrative * |
20,830 |
25,355 |
28,659 |
70,123 |
61,937 |
||||
Impairment on goodwill |
- |
- |
- |
- |
14,526 |
||||
128,589 |
135,681 |
134,431 |
395,518 |
385,924 |
|||||
Income (Loss) from operations |
14,688 |
(10,852) |
(6,825) |
(17,365) |
(44,777) |
||||
Non-operating income: |
|||||||||
Earning (Loss) from equity method investments, net |
93 |
4,670 |
(2,729) |
1,016 |
16,304 |
||||
Gain (Loss) on sale of and impairment on investments, net |
(1,066) |
128,599 |
19,032 |
16,881 |
155,150 |
||||
Change in fair value of investor option liability |
- |
- |
- |
- |
(46,972) |
||||
Interest and other income, net |
5,892 |
11,019 |
6,455 |
18,130 |
21,090 |
||||
4,919 |
144,288 |
22,758 |
36,027 |
145,572 |
|||||
Income before income taxes |
19,607 |
133,436 |
15,933 |
18,662 |
100,795 |
||||
Income tax benefits (expenses) |
(4,756) |
(2,656) |
(3,022) |
(4,793) |
34 |
||||
Net income |
14,851 |
130,780 |
12,911 |
13,869 |
100,829 |
||||
Less: Net income (loss) attributable to non-controlling interests |
5,085 |
(2,815) |
1,243 |
2,744 |
(16,222) |
||||
Net income attributable to SINA |
$ 9,766 |
$ 133,595 |
$ 11,668 |
$ 11,125 |
$ 117,051 |
||||
Basic net income per share attributable to SINA |
$ 0.17 |
$ 2.06 |
$ 0.20 |
$ 0.19 |
$ 1.78 |
||||
Diluted net income per share attributable to SINA ** |
$ 0.16 |
$ 1.91 |
$ 0.19 |
$ 0.18 |
$ 1.74 |
||||
Shares used in computing basic |
|||||||||
net income per share attributable to SINA |
58,512 |
64,963 |
58,417 |
58,559 |
65,601 |
||||
Shares used in computing diluted |
|||||||||
net income per share attributable to SINA |
58,799 |
71,509 |
58,910 |
58,854 |
72,218 |
||||
* Stock-based compensation in each category: |
|||||||||
Cost of revenues - advertising |
$ 1,569 |
$ 923 |
$ 1,139 |
$ 4,131 |
$ 2,422 |
||||
Sales and marketing |
3,121 |
1,465 |
2,594 |
8,337 |
3,715 |
||||
Product development |
4,264 |
2,090 |
3,104 |
10,863 |
4,975 |
||||
General and administrative |
6,437 |
4,164 |
7,689 |
19,960 |
11,846 |
||||
** 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) |
||||||
September 30, |
December 31, |
|||||
2015 |
2014 |
|||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ 904,973 |
$ 1,223,682 |
||||
Short-term investments |
1,030,556 |
942,856 |
||||
Accounts receivable, net |
230,286 |
259,764 |
||||
Prepaid expenses and other current assets |
132,478 |
109,214 |
||||
Subtotal |
2,298,293 |
2,535,516 |
||||
Property and equipment, net |
50,441 |
63,729 |
||||
Goodwill and intangible assets, net |
61,732 |
64,489 |
||||
Long-term investments, net |
1,068,639 |
860,003 |
||||
Other assets |
312,049 |
179,591 |
||||
Total assets |
$ 3,791,154 |
$ 3,703,328 |
||||
Liabilities and Shareholders' Equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ 4,102 |
$ 3,853 |
||||
Accrued liabilities |
447,759 |
320,268 |
||||
Short-term loan |
55,062 |
- |
||||
Deferred revenues |
66,274 |
50,557 |
||||
Income taxes payable |
12,877 |
17,979 |
||||
Subtotal |
586,074 |
392,657 |
||||
Convertible debt |
800,000 |
800,000 |
||||
Long-term deferred revenue |
77,565 |
85,391 |
||||
Other long-term liabilities |
3,138 |
4,010 |
||||
Total liabilities |
1,466,777 |
1,282,058 |
||||
Shareholders' equity |
||||||
SINA shareholders' equity |
2,020,338 |
2,145,772 |
||||
Non-controlling interests |
304,039 |
275,498 |
||||
Total shareholders' equity |
2,324,377 |
2,421,270 |
||||
Total liabilities and shareholders' equity |
$ 3,791,154 |
$ 3,703,328 |
SINA CORPORATION |
|||||||||
UNAUDITED ADDITIONAL INFORMATION |
|||||||||
(U.S. Dollars in thousands) |
|||||||||
Three months ended |
Nine months ended |
||||||||
September 30, |
June 30, |
September 30, |
|||||||
2015 |
2014 |
2015 |
2015 |
2014 |
|||||
Net revenues |
|||||||||
Portal: |
|||||||||
Portal Advertising |
$ 87,598 |
$ 101,417 |
$ 88,391 |
$ 247,182 |
$ 281,542 |
||||
Other |
13,962 |
13,066 |
17,365 |
48,431 |
46,602 |
||||
Subtotal |
101,560 |
114,483 |
105,756 |
295,613 |
328,144 |
||||
|
124,734 |
84,130 |
107,842 |
328,866 |
228,960 |
||||
$ 226,294 |
$ 198,613 |
$ 213,598 |
$ 624,479 |
$ 557,104 |
|||||
Cost of revenues |
|||||||||
Portal: |
|||||||||
Portal Advertising |
$ 37,240 |
$ 44,811 |
$ 41,047 |
$ 117,261 |
$ 130,779 |
||||
Other |
8,536 |
8,303 |
11,256 |
29,210 |
27,365 |
||||
Subtotal |
45,776 |
53,114 |
52,303 |
146,471 |
158,144 |
||||
|
37,241 |
20,670 |
33,689 |
99,855 |
57,813 |
||||
$ 83,017 |
$ 73,784 |
$ 85,992 |
$ 246,326 |
$ 215,957 |
SINA CORPORATION |
|||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
|||||||||||||||||
(U.S. dollars in thousands, except per share data) |
|||||||||||||||||
Three months ended |
|||||||||||||||||
September 30, 2015 |
September 30, 2014 |
June 30, 2015 |
|||||||||||||||
Non-GAAP |
Non-GAAP |
Non-GAAP |
|||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
|||||||||
Advertising revenues |
$ 193,459 |
$ 193,459 |
$ 166,790 |
$ 166,790 |
$ 176,258 |
$ 176,258 |
|||||||||||
Non-advertising revenues |
32,835 |
(2,609) |
(a) |
30,226 |
31,823 |
(2,609) |
(a) |
29,214 |
37,340 |
(2,609) |
(a) |
34,731 |
|||||
Net revenues |
$ 226,294 |
$ (2,609) |
$ 223,685 |
$ 198,613 |
$ (2,609) |
$ 196,004 |
$ 213,598 |
$ (2,609) |
$ 210,989 |
||||||||
(2,609) |
(a) |
(2,609) |
(a) |
(2,609) |
(a) |
||||||||||||
1,569 |
(b) |
923 |
(b) |
1,139 |
(b) |
||||||||||||
Gross profit |
$ 143,277 |
$ (1,040) |
$ 142,237 |
$ 124,829 |
$ (1,686) |
$ 123,143 |
$ 127,606 |
$ (1,470) |
$ 126,136 |
||||||||
(13,822) |
(b) |
(7,719) |
(b) |
(13,387) |
(b) |
||||||||||||
(883) |
(c) |
(815) |
(c) |
(906) |
(c) |
||||||||||||
Operating expenses |
$ 128,589 |
$ (14,705) |
$ 113,884 |
$ 135,681 |
$ (8,534) |
$ 127,147 |
$ 134,431 |
$ (14,293) |
$ 120,138 |
||||||||
(2,609) |
(a) |
(2,609) |
(a) |
(2,609) |
(a) |
||||||||||||
15,391 |
(b) |
8,642 |
(b) |
14,526 |
(b) |
||||||||||||
883 |
(c) |
815 |
(c) |
906 |
(c) |
||||||||||||
Income (loss) from operations |
$ 14,688 |
$ 13,665 |
$ 28,353 |
$ (10,852) |
$ 6,848 |
$ (4,004) |
$ (6,825) |
$ 12,823 |
$ 5,998 |
||||||||
(2,609) |
(a) |
(2,609) |
(a) |
(2,609) |
(a) |
||||||||||||
15,391 |
(b) |
8,642 |
(b) |
14,526 |
(b) |
||||||||||||
677 |
(c) |
630 |
(c) |
697 |
(c) |
||||||||||||
2,882 |
(e) |
2,463 |
(e) |
883 |
(e) |
||||||||||||
1,066 |
(f) |
(128,599) |
(f) |
(19,032) |
(f) |
||||||||||||
(3,850) |
(h) |
(2,373) |
(h) |
(3,236) |
(h) |
||||||||||||
1,094 |
(i) |
1,398 |
(i) |
1,099 |
(i) |
||||||||||||
Net income attributable to SINA |
$ 9,766 |
$ 14,651 |
$ 24,417 |
$ 133,595 |
$ (120,448) |
$ 13,147 |
$ 11,668 |
$ (7,672) |
$ 3,996 |
||||||||
Diluted net income per share attributable to SINA * |
$ 0.16 |
$ 0.39 |
$ 1.91 |
$ 0.19 |
$ 0.19 |
$ 0.06 |
|||||||||||
Shares used in computing diluted |
|||||||||||||||||
net income per share attributable to SINA |
58,799 |
6,467 |
(j) |
65,266 |
71,509 |
(6,468) |
(j) |
65,041 |
58,910 |
- |
58,910 |
||||||
Gross margin - advertising |
64% |
1% |
65% |
62% |
1% |
63% |
61% |
1% |
62% |
||||||||
Gross margin - non-advertising |
60% |
-4% |
56% |
67% |
-3% |
64% |
54% |
-3% |
51% |
||||||||
Nine months ended |
|||||||||||||||||
September 30, 2015 |
September 30, 2014 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||||
Advertising revenues |
$ 520,070 |
$ 520,070 |
$ 458,351 |
$ 458,351 |
|||||||||||||
Non-advertising revenues |
104,409 |
(7,827) |
(a) |
96,582 |
98,753 |
(9,350) |
(a) |
89,403 |
|||||||||
Net revenues |
$ 624,479 |
$ (7,827) |
$ 616,652 |
$ 557,104 |
$ (9,350) |
$ 547,754 |
|||||||||||
(7,827) |
(a) |
(9,350) |
(a) |
||||||||||||||
4,131 |
(b) |
2,422 |
(b) |
||||||||||||||
Gross profit |
$ 378,153 |
$ (3,696) |
$ 374,457 |
$ 341,147 |
$ (6,928) |
$ 334,219 |
|||||||||||
(20,536) |
(b) |
||||||||||||||||
(39,160) |
(b) |
(2,460) |
(c) |
||||||||||||||
(2,691) |
(c) |
(14,526) |
(d) |
||||||||||||||
Operating expenses |
$ 395,518 |
$ (41,851) |
$ 353,667 |
$ 385,924 |
$ (37,522) |
$ 348,402 |
|||||||||||
(9,350) |
(a) |
||||||||||||||||
(7,827) |
(a) |
22,958 |
(b) |
||||||||||||||
43,291 |
(b) |
2,460 |
(c) |
||||||||||||||
2,691 |
(c) |
14,526 |
(d) |
||||||||||||||
Income (Loss) from operations |
$ (17,365) |
$ 38,155 |
$ 20,790 |
$ (44,777) |
$ 30,594 |
$ (14,183) |
|||||||||||
(9,350) |
(a) |
||||||||||||||||
22,958 |
(b) |
||||||||||||||||
(7,827) |
(a) |
1,898 |
(c) |
||||||||||||||
43,291 |
(b) |
14,526 |
(d) |
||||||||||||||
2,068 |
(c) |
6,684 |
(e) |
||||||||||||||
6,051 |
(e) |
(155,150) |
(f) |
||||||||||||||
(16,881) |
(f) |
46,972 |
(g) |
||||||||||||||
(9,730) |
(h) |
(13,453) |
(h) |
||||||||||||||
3,304 |
(i) |
4,194 |
(i) |
||||||||||||||
Net income attributable to SINA |
$ 11,125 |
$ 20,276 |
$ 31,401 |
$ 117,051 |
$ (80,721) |
$ 36,330 |
|||||||||||
Diluted net income per share attributable to SINA * |
$ 0.18 |
$ 0.50 |
$ 1.74 |
$ 0.52 |
|||||||||||||
Shares used in computing diluted |
|||||||||||||||||
net income per share attributable to SINA |
58,854 |
- |
58,854 |
72,218 |
(6,467) |
(j) |
65,751 |
||||||||||
Gross margin - advertising |
61% |
1% |
62% |
60% |
1% |
61% |
|||||||||||
Gross margin - non-advertising |
58% |
-3% |
55% |
65% |
-4% |
61% |
|||||||||||
(a) To adjust the recognition of deferred revenue related to the license agreements granted to E-House. |
|||||||||||||||||
* Net income 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 |
|||||||||||||||||
September 30, 2015 |
September 30, 2014 |
June 30, 2015 |
|||||||||||||||
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
Actual |
Adjustments |
Non-GAAP Results |
|||||||||
To adjust stock-based compensation |
$ 1,620 |
$ 1,657 |
$ 1,395 |
||||||||||||||
To adjust amortization of intangible |
|||||||||||||||||
assets resulting from business acquisitions |
416 |
497 |
416 |
||||||||||||||
To adjust the (gain) loss resulting from |
|||||||||||||||||
the fair value changes in investments |
551 |
- |
(1,224) |
||||||||||||||
Earning(Loss) from equity method investments, net |
$ 388 |
$ 2,587 |
$ 2,975 |
$ 4,979 |
$ 2,154 |
$ 7,133 |
$ (2,433) |
$ 587 |
$ (1,846) |
||||||||
Share of amortization of equity investments' |
|||||||||||||||||
intangibles not on their books |
$ (295) |
$ 295 |
$ - |
$ (309) |
$ 309 |
$ - |
$ (296) |
$ 296 |
$ - |
||||||||
$ 93 |
$ 2,882 |
$ 2,975 |
$ 4,670 |
$ 2,463 |
$ 7,133 |
$ (2,729) |
$ 883 |
$ (1,846) |
|||||||||
Nine months ended |
|||||||||||||||||
September 30, 2015 |
September 30, 2014 |
||||||||||||||||
Non-GAAP |
Non-GAAP |
||||||||||||||||
Actual |
Adjustments |
Results |
Actual |
Adjustments |
Results |
||||||||||||
To adjust stock-based compensation |
$ 4,396 |
$ 3,883 |
|||||||||||||||
To adjust amortization of intangible |
|||||||||||||||||
assets resulting from business acquisitions |
$ 1,439 |
1,851 |
|||||||||||||||
To adjust the (gain) loss resulting from |
|||||||||||||||||
the fair value changes in investments |
$ (673) |
- |
|||||||||||||||
Earning from equity method investments, net |
$ 1,905 |
$ 5,162 |
$ 7,067 |
$ 17,254 |
$ 5,734 |
$ 22,988 |
|||||||||||
Share of amortization of equity investments' |
|||||||||||||||||
intangibles not on their books |
$ (889) |
$ 889 |
$ - |
$ (950) |
$ 950 |
$ - |
|||||||||||
$ 1,016 |
$ 6,051 |
$ 7,067 |
$ 16,304 |
$ 6,684 |
$ 22,988 |
||||||||||||
* 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-third-quarter-2015-financial-results-300181296.html
SOURCE