SINA Reports Third Quarter 2016 Financial Results

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SINA Reports Third Quarter 2016 Financial Results

SHANGHAI, Nov. 21, 2016 /PRNewswire/ -- SINA Corporation (the "Company" or "SINA") (NASDAQ: SINA), a leading online media company serving China and the global Chinese communities, today announced its unaudited financial results for the third quarter ended September 30, 2016.

Third Quarter 2016 Highlights

  • Net revenues increased 21% year over year to $274.9 million. Non-GAAP net revenues increased 22% year over year to $272.3 million.
  • Advertising revenues grew 21% year over year to $233.6 million.
  • Income from operations increased 147% year over year to $36.3 million. Operating margin was 13%, up from 6% for the same period last year. Non-GAAP income from operations increased 99% year over year to $56.5 million. Non-GAAP operating margin was 21%, up from 13% for the same period last year.
  • Net income attributable to SINA was $146.5 million, or $1.90 diluted net income per share. Non-GAAP net income attributable to SINA was $43.7 million, or $0.56 diluted net income per share.
  • Weibo's monthly active users ("MAUs") in September 2016 grew 34% year over year to 297 million, 89% of which were mobile users. Average daily active users ("DAUs") in September 2016 grew 32% year over year to 132 million.

"We are delighted to have another solid quarter." said Charles Chao, Chairman and CEO of SINA. "SINA portal has further implemented its mobile strategy, with significant growth of mobile traffic from SINA News Application. Mobile monetization for portal has further enhanced, with 50% of the portal advertising revenues coming from mobile devices." Mr. Chao added.

"With strong growth in user base, revenues and profitability, Weibo has demonstrated its platform value with the network effect of the content ecosystem and strong monetization capability." said Mr. Chao. "We take great pride that Weibo is returning to the center stage of Chinese Internet market."

Third Quarter 2016 Financial Results

For the third quarter of 2016, SINA reported net revenues of $274.9 million, compared to $226.3 million for the same period last year. Non-GAAP net revenues for the third quarter of 2016 totaled $272.3 million, compared to $223.7 million for the same period last year.

Online advertising revenues for the third quarter of 2016 were $233.6 million, compared to $193.5 million for the same period last year. The year-over-year growth in online advertising revenues resulted from an increase of $47.8 million in Weibo advertising and marketing revenues, partially offset by a decline of $7.7 million in portal advertising revenues.

Non-advertising revenues for the third quarter of 2016 were $41.2 million, compared to $32.8 million for the same period last year. The year-over-year growth in non-advertising revenues was mainly resulted from an increase of $7.1 million in portal non-advertising revenues. Non-GAAP non-advertising revenues for the third quarter of 2016 were $38.6 million, compared to $30.2 million for the same period last year.

Gross margin for the third quarter of 2016 was 67%, compared to 63% for the same period last year. Advertising gross margin for the third quarter of 2016 was 70%, compared to 64% for the same period last year. The increasing advertising revenue proportion contributed by small and medium enterprises customers in both portal and Weibo business is the key driver that resulted in a higher gross margin for our advertising business. Non-advertising gross margin for the third quarter of 2016 was 54%, compared to 60% for the same period last year. The decrease in non-advertising gross margin was primarily due to increasing proportion of portal non-advertising revenues, which contributed lower gross margin.

Operating expenses for the third quarter of 2016 totaled $148.2 million, compared to $128.6 million for the same period last year. Non-GAAP operating expenses for the third quarter of 2016 totaled $127.9 million, compared to $113.9 million for the same period last year. The year-over-year growth of non-GAAP operating expenses was mainly resulted from an increase of sales and marketing expenditure for portal and Weibo. 

Income from operations for the third quarter of 2016 was $36.3 million, compared to $14.7 million for the same period last year. Operating margin was 13%, up from 6% for the same period last year. Non-GAAP income from operations for the third quarter of 2016 was $56.5 million, compared to $28.4 million for the same period last year. Non-GAAP operating margin was 21%, up from 13% for the same period last year.

Non-operating income for the third quarter of 2016 was $143.1 million, compared to a non-operating income of $4.9 million for the same period last year. Non-operating income for the third quarter of 2016 mainly included: (i) a $133.5 million net gain on sale of and impairment on investments, which is excluded under non-GAAP measure; and (ii) a $5.5 million earnings pick-up from equity-method investments, which are accounted for under the equity-method and reported one quarter in arrears, mainly resulted from earnings pick-up from the Company's investment in E-House.

Net income attributable to SINA for the third quarter of 2016 was $146.5 million, compared to $9.8 million for the same period last year. Diluted net income per share attributable to SINA for the third quarter of 2016 was $1.90, compared to $0.16 for the same period last year. Non-GAAP net income attributable to SINA for the third quarter of 2016 was $43.7 million, compared to $24.4 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA for the third quarter of 2016 was $0.56, compared to $0.39 for the same period last year.

As of September 30, 2016, SINA's cash, cash equivalents and short-term investments totaled $2.2 billion, at similar level compared with the balance as of December 31, 2015. For the third quarter of 2016, net cash provided by operating activities was $256.1 million, capital expenditures totaled $2.3 million, and depreciation and amortization expenses amounted to $7.3 million.

Other Developments

Completion of E-House Merger

As previously announced on June 19, 2015, SINA joined a consortium along with Mr. Xin Zhou, co-chairman of the board of directors and chief executive officer of E-House (China) Holdings Limited ("E-House"), a leading real estate services company in China, and Mr. Neil Nanpeng Shen, a board member of E-House, to acquire all the outstanding ordinary shares of E-House not already owned by SINA, Mr. Xin Zhou, Mr. Neil Nanpeng Shen or their respective affiliates. Pursuant to a definitive agreement and plan of merger (the "Merger Agreement") with E-House Holdings Ltd. ("Parent"), on August 12, 2016 (the "Closing Date"), E-House completed its merger and became a wholly-owned subsidiary of Parent.  Sina contributed approximately $140.0 million to subscribe newly issued shares of Parent. Immediately following the Closing Date, the Company held 43% of total outstanding shares of Parent and continued to apply equity-method to account for the investment in Parent.

On the Closing Date, SINA, Parent and certain other shareholders of Parent entered into a shareholders agreement, pursuant to which (a) Parent undertakes, among other things, that it shall not, directly or indirectly, dispose any ordinary shares of Leju Holdings Limited ("Leju"), an NYSE-listed company, owned by E-House without the prior written approval of each of Mr. Xin Zhou and SINA; and (b) during the 18-month period following the Closing Date, Parent has an option to repurchase all the equity interest held by SINA in Parent for a consideration consisting of (i) 30% of the total outstanding ordinary shares of Leju at the time of the repurchase, and (ii) certain cash payment. The option was recognized as a liability on the basis of its fair value, and its subsequent changes in fair value was reflected in the fair value change in option liability.

In-Kind Distribution

On August 31, 2016, the Company announced its planned distribution of shares of Weibo to SINA shareholders as of the record date of September 12, 2016 on a pro rata basis, or one Weibo Share for each ten outstanding SINA ordinary shares. As of the distribution date of October 14, 2016, the Company has distributed 7,088,116 Class A ordinary shares of Weibo, based on 70,881,168 ordinary shares of SINA outstanding as of the record date. Following the distribution of the Weibo Shares, SINA's equity stake in Weibo decreased from approximately 53.5% (or approximately 78% by voting power) to approximately 50.2% (or approximately 75% by voting power), which resulted in an increase in the percentage of the non-controlling interests related to Weibo.

Annual General Meeting

On November 4, 2016, the Company held its annual general meeting of shareholders, where the shareholders re-elected Mr. Ter Fung Tsao as director of SINA. The shareholders also approved and ratified the appointment of PricewaterhouseCoopers Zhong Tian LLP as the Company's independent auditors for the fiscal year ending December 31, 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 SINA and non-GAAP diluted net income (loss) per share attributable to SINA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company's financial performance prepared in accordance with U.S. GAAP. The Company's non-GAAP financial measures may be defined differently than similar terms used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures.  

The Company's non-GAAP financial measures exclude recognition of deferred revenues in relation to the equity investment in E-House, stock-based compensation, amortization of intangible assets, adjustment for non-GAAP to GAAP reconciling items on the share of equity method investments, gain/loss on sale of investment/business, deemed disposal and impairment on investment, impairment on goodwill, change in fair value in option liability, amortization of convertible debt issuance cost, income tax effects of above non-GAAP to GAAP reconciling items and adjustments for non-GAAP to GAAP reconciling items for the income (loss) attributable to non-controlling interests. 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, gain/loss 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. 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

SINA will host a conference call from 9:10 p.m.9:50 p.m. Eastern Time on November 21, 2016 (or 10:10 a.m.10:50 a.m. Beijing Time on November 22, 2016) to present an overview of the Company's financial performance and business operations. A live webcast of the call will be available through the Company's corporate website at http://corp.sina.com.cn. The conference call can be accessed as follows:

US:                                

+1 845 675 0438

Hong Kong:                   

+852 3018 6776

China:                           

400 120 0654

International:                 

+65 6713 5440

Passcode for all regions:

15998968

A replay of the conference call will be available through morning Eastern Time November 29, 2016. The dial-in number is +61 2 9003 4211. The passcode for the replay is 15998968.

About SINA

We are a leading online media company serving China and the global Chinese communities. Our digital media network of SINA.com (portal), SINA.cn (mobile portal), SINA Mobile Apps and Weibo.com (social media) enables Internet users to access professional media and user generated content in multi-media formats from personal computers and mobile devices and share their interests with friends and acquaintances.

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. Weibo is a leading social media platform for people to create, distribute and discover Chinese-language content. Based on an open platform architecture, Weibo allows users to create and post feeds and attach multi-media content, as well as access a wide range of organically and third-party developed applications, such as online games.

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, SINA's expected financial performance and SINA's strategic and operational plans (as described, without limitation, in quotations from management in this press release). SINA may also make forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. SINA assumes no obligation to update the forward-looking statements in this press release and elsewhere. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to failure to meet internal or external expectations of future performance given the rapidly evolving markets; condition of the global financial and credit market; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on online advertising sales and value-added services for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products, including portal, Weibo and MVAS products; failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties, such as Alibaba; failure to successfully integrate acquired businesses; risks associated with the Company's investments, including equity pick-up and impairment; and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA's annual report on Form 20-F for the year ended December 31, 2015 and other filings with the Securities and Exchange Commission.

Contact:

Investor Relations
SINA Corporation
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,




2016


2015


2016


2016


2015


Net revenues:











    Advertising

$              233,633


$                 193,459


$               205,031


$               601,631


$               520,070


    Non-advertising

41,242


32,835


38,931


115,881


104,409




274,875


226,294


243,962


717,512


624,479


Cost of revenues *:











    Advertising  

71,194


69,741


73,083


212,466


202,668


    Non-advertising

19,133


13,276


15,834


47,672


43,658




90,327


83,017


88,917


260,138


246,326


Gross profit

184,548


143,277


155,045


457,374


378,153














Operating expenses:











    Sales and marketing *

64,176


53,342


56,895


172,773


167,577


    Product development *

55,674


54,417


53,522


161,690


157,818


    General and administrative *

28,366


20,830


23,808


74,308


70,123




148,216


128,589


134,225


408,771


395,518


Income (Loss) from operations

36,332


14,688


20,820


48,603


(17,365)














Non-operating income:











   Earning (Loss) from equity method investments, net

5,534


93


(6,190)


(11,220)


1,016


   Gain on sale of investments/business and impairment on investments, net

133,505


(1,066)


34,925


196,657


16,881


   Fair value change in option liability

(2,653)


-


-


(2,653)


-


   Interest and other income, net

6,703


5,892


6,308


19,619


18,130




143,089


4,919


35,043


202,403


36,027














Income before income taxes

179,421


19,607


55,863


251,006


18,662


Income tax expenses 

(19,050)


(4,756)


(2,747)


(21,781)


(4,793)














Net income

160,371


14,851


53,116


229,225


13,869


   Less: Net income attributable to non-controlling interests

13,853


5,085


9,789


24,060


2,744














Net income attributable to SINA

$              146,518


$                      9,766


$                  43,327


$               205,165


$                  11,125


























Basic net income per share attributable to SINA

$                     2.08


$                        0.17


$                      0.62


$                      2.93


$                      0.19


Diluted net income per share attributable to SINA **

$                     1.90


$                        0.16


$                      0.59


$                      2.74


$                      0.18














Shares used in computing basic











   net income per share attributable to SINA

70,420


58,512


70,047


70,108


58,559


Shares used in computing diluted











   net income per share attributable to SINA

78,303


58,799


77,202


77,486


58,854


























* Stock-based compensation in each category:












Cost of revenues - advertising

$                   2,380


$                      1,569


$                    1,775


$                    5,721


$                    4,131



Sales and marketing

4,791


3,121


3,303


10,937


8,337



Product development

7,261


4,264


3,592


15,775


10,863



General and administrative

7,853


6,437


7,165


21,929


19,960














**

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,





2016



2015



Assets



Current assets:








Cash and cash equivalents


$             1,158,970



$                763,439



Short-term investments


1,050,206



1,446,414



Restricted cash


304,375



140,652



Accounts receivable, net


221,132



228,732



Prepaid expenses and other current assets *


288,088



135,416



      Subtotal


3,022,771



2,714,653










Property and equipment, net


248,657



47,495


Goodwill and intangible assets, net


57,616



61,954


Long-term investments


1,324,017



1,212,640


Other assets


192,175



320,205


Total assets


$             4,845,236



$             4,356,947











Liabilities and Shareholders' Equity



Current liabilities:








Accounts payable **


$                117,467



$                  81,351



Amount due to customers


304,375



140,652



Accrued liabilities **


310,449



265,490



Short-term loan


82,081



-



Convertible debt *


799,301



795,108



Deferred revenues


96,862



79,528



Income taxes payable


30,086



16,426



Option liability


2,653



-



     Subtotal


1,743,274



1,378,555










Long-term deferred revenues


67,892



76,003


Other long-term liabilities


25,050



25,721



     Total liabilities


1,836,216



1,480,279










Shareholders' equity








SINA shareholders' equity


2,624,124



2,565,272



Non-controlling interests


384,896



311,396



     Total shareholders' equity 


3,009,020



2,876,668










Total liabilities and shareholders' equity


$             4,845,236



$             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


Nine months ended




September 30,


June 30,


September 30,




2016


2015


2016


2016


2015














Net revenues











Portal:











Portal Advertising

$                  79,855


$                  87,598


$                  78,694


$               222,270


$               247,182


Other

21,058


13,962


19,219


55,941


48,431



Subtotal

100,913


101,560


97,913


278,211


295,613














Weibo:












Advertising and marketing

156,693


105,861


127,173


383,112


272,888



Weibo VAS

20,184


18,873


19,712


59,940


55,978



Subtotal

176,877


124,734


146,885


443,052


328,866














Elimination

(2,915)


-


(836)


(3,751)


-




$               274,875


$               226,294


$               243,962


$               717,512


$               624,479














Cost of revenues











Portal:











Portal Advertising

$                  32,540


$                  37,240


$                  36,804


$               104,881


$               117,261


Other

13,458


8,536


11,502


33,691


29,210



Subtotal

45,998


45,776


48,306


138,572


146,471














Weibo

44,494


37,241


40,657


121,777


99,855














Elimination

(165)


-


(46)


(211)


-




$                  90,327


$                  83,017


$                  88,917


$               260,138


$               246,326














Gross margin












Portal

54%


55%


51%


50%


50%



Weibo

75%


70%


72%


73%


70%




67%


63%


64%


64%


61%














 

SINA CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(U.S. Dollars in thousands, except per share data)









































Three months ended



September 30, 2016


September 30, 2015


June 30, 2016







Non-GAAP






Non-GAAP






Non-GAAP



Actual


Adjustments


Results


Actual


Adjustments


Results


Actual


Adjustments


Results




















Advertising revenues

$    233,633




$   233,633


$    193,459




$   193,459


$   205,031




$   205,031

Non-advertising revenues

41,242


(2,609)

 (a) 

38,633


32,835


(2,609)

 (a) 

30,226


38,931


(2,609)

 (a) 

36,322

Net revenues

$    274,875


$             (2,609)


$   272,266


$    226,294


$             (2,609)


$   223,685


$   243,962


$             (2,609)


$   241,353
























(2,609)

 (a) 





(2,609)

 (a) 





(2,609)

 (a) 






2,380

 (b) 





1,569

 (b) 





1,775

 (b) 


Gross profit

$    184,548


$                (229)


$   184,319


$    143,277


$             (1,040)


$   142,237


$   155,045


$                (834)


$   154,211
























(19,905)

 (b) 





(13,822)

 (b) 





(14,060)

 (b) 






(457)

 (c) 





(883)

 (c) 





(461)

 (c) 


Operating expenses

$    148,216


$          (20,362)


$    127,854


$    128,589


$           (14,705)


$   113,884


$   134,225


$           (14,521)


$   119,704
























(2,609)

 (a) 





(2,609)

 (a) 





(2,609)

 (a) 






22,285

 (b) 





15,391

 (b) 





15,835

 (b) 






457

 (c) 





883

 (c) 





461

 (c) 


Income from operations

$      36,332


$            20,133


$     56,465


$       14,688


$            13,665


$     28,353


$     20,820


$            13,687


$     34,507
























(2,609)

 (a) 


















22,285

 (b) 





(2,609)

 (a) 





(2,609)

 (a) 






457

 (c) 





15,391

 (b) 





15,835

 (b) 






2,032

 (d) 





883

 (c) 





461

 (c) 






(133,505)

 (e) 





2,882

 (d) 





2,427

 (d) 






2,653

 (f) 





1,066

 (e) 





(34,925)

 (e) 






(10,650)

(g)





(3,850)

(g)





(5,646)

(g)






1,398

(h)





1,094

(h)





1,085

(h)






15,133

 (i) 





(206)

 (i) 





(102)

 (i) 


Net income attributable to SINA

$    146,518


$         (102,806)


$      43,712


$         9,766


$            14,651


$      24,417


$      43,327


$           (23,474)


$     19,853







































Diluted net income per share attributable to SINA *

$          1.90




$          0.56


$           0.16




$          0.39


$          0.59




$          0.27

Shares used in computing diluted


















   net income per share attributable to SINA

78,303


-


78,303


58,799


6,467

 (j) 

65,266


77,202


-


77,202







































Gross margin - advertising

70%


1%


71%


64%


1%


65%


64%


1%


65%

Gross margin - non-advertising

54%


-4%


50%


60%


-4%


56%


59%


-3%


56%









































 Nine months ended 









September 30, 2016


September 30, 2015













Non-GAAP






Non-GAAP









Actual


Adjustments


Results


Actual


Adjustments


Results


























Advertising revenues

$    601,631




$    601,631


$     520,070




$    520,070







Non-advertising revenues

115,881


(7,827)

 (a) 

108,054


104,409


(7,827)

 (a) 

96,582







Net revenues

$    717,512


$             (7,827)


$    709,685


$     624,479


$             (7,827)


$    616,652






























(7,827)

 (a) 





(7,827)

 (a) 












5,721

 (b) 





4,131

 (b) 








Gross profit

$    457,374


$             (2,106)


$    455,268


$     378,153


$             (3,696)


$    374,457






























(48,641)

 (b) 





(39,160)

 (b) 












(1,475)

 (c) 





(2,691)

 (c) 








Operating expenses

$    408,771


$           (50,116)


$    358,655


$     395,518


$           (41,851)


$    353,667






























(7,827)

 (a) 





(7,827)

 (a) 












54,362

 (b) 





43,291

 (b) 












1,475

 (c) 





2,691

 (c) 








Income (Loss) from operations

$      48,603


$            48,010


$      96,613


$     (17,365)


$            38,155


$      20,790






























(7,827)

 (a) 


















54,362

 (b) 





(7,827)

 (a) 












1,475

 (c) 





43,291

 (b) 












3,978

 (d) 





2,691

 (c) 












(196,657)

(e)





6,051

 (d) 












2,653

 (f) 





(16,881)

 (e) 












(20,815)

 (g) 





(9,730)

 (g) 












3,567

 (h) 





3,304

 (h) 












14,908

 (i) 





(623)

 (i) 








Net income attributable to SINA

$    205,165


$         (144,356)


$      60,809


$       11,125


$            20,276


$      31,401













































Diluted net income per share attributable to SINA *

$          2.74




$          0.82


$           0.18




$          0.50







Shares used in computing diluted


















   net income per share attributable to SINA

77,486


-


77,486


58,854


-


58,854













































Gross margin - advertising

65%


1%


66%


61%


1%


62%







Gross margin - non-advertising

59%


-3%


56%


58%


-3%


55%













































(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 Non-GAAP to 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/business, (gain) loss on deemed disposal and impairment on investments, net.











(f)  To adjust the change in fair value of option liability.


















(g)  To adjust Non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests.













(h)  To adjust the amortization of convertible debt issuance cost.


















(i)  To adjust the provision for income tax related to item (c) and (e). Other non-GAAP to GAAP reconciling items have no income tax effect.**









(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.









**

Most of the reconciliation items were recorded in entities in tax free jurisdictions hence no income tax implications. For impairment on investments, full
valuation allowances were made due to as the Company does not expect they can be realized in the foreseeable future.




























UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' NON-GAAP TO GAAP RESULTS*

































Three months ended



September 30, 2016


September 30, 2015


June 30, 2016



Actual


Adjustments


Non-GAAP Results


Actual


Adjustments


Non-GAAP Results


Actual


Adjustments


Non-GAAP Results





















To adjust stock-based compensation



$              1,409






$               1,620






$               1,356




To adjust amortization of intangible 



















  assets resulting from business acquisitions



618






598






587




To adjust gain on sale of investments



(12)






-






(739)




To adjust the loss resulting from the  



















  fair value changes in investments



41






551






1,236




To adjust tax impacts related 



















  to amortization of intangible assets



(179)






(182)






(180)




Earning (Loss) from equity method investments, net

$        5,689


$              1,877


$        7,566


$            388


$               2,587


$        2,975


$      (6,023)


$               2,260


$      (3,763)


Share of amortization of equity investments' 



















  intangibles not on their books

$         (173)


$                  173


$               -


$           (394)


$                  394


$               -


$         (223)


$                  223


$               -


Share of tax impacts related to amortization of 



















  equity investments' intangibles not on their books

18


(18)


-


99


(99)


-


56


(56)


-



$        5,534


$               2,032


$        7,566


$               93


$              2,882


$        2,975


$      (6,190)


$              2,427


$      (3,763)









































 Nine months ended 









September 30, 2016


September 30, 2015













Non-GAAP






Non-GAAP









Actual


Adjustments


Results


Actual


Adjustments


Results



























To adjust stock-based compensation



$               4,320






$               4,396










To adjust amortization of intangible 



















  assets resulting from business acquisitions



1,996






1,735










To adjust gain on sale of investments



(1,559)






-










To adjust the gain resulting from the  fair



















  value changes in investments



(849)






(673)










To adjust tax impacts related 



















  to amortization of intangible assets



(546)






(296)










Earning (Loss) from equity method investments, net

$    (10,604)


$               3,362


$      (7,242)


$          1,905


$               5,162


$        7,067








Share of amortization of equity investments' 



















  intangibles not on their books

$         (788)


$                  788


$               -


$        (1,186)


$               1,186


$               -








Share of tax impacts related to amortization of 



















  equity investments' intangibles not on their books

172


(172)


-


297


(297)


-









$    (11,220)


$               3,978


$      (7,242)


$          1,016


$               6,051


$        7,067














































* 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-2016-financial-results-300366756.html

SOURCE SINA Corporation