Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 6-K

 


 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2018

 

Commission File Number: 001-37361

 


 

Sina Corporation

(Registrant’s Name)

 


 

SINA Plaza, No. 8 Courtyard 10

the West Xibeiwang E. Road

Haidian District, Beijing 100193

People’s Republic of China

(Address of Principal Executive Offices)

 


 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F x      Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

 



Table of Contents

 

TABLE OF CONTENTS

 

Signatures

 

99.1 - Press Release regarding Financial Results for the Second Quarter Ended June 30, 2018 issued by Sina Corporation on August 8, 2018

 

2



Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

SINA CORPORATION

 

 

 

 

 

 

Date: August 9, 2018

By:

/s/ Bonnie Yi Zhang

 

 

Bonnie Yi Zhang

 

 

Chief Financial Officer

 

3


Exhibit 99.1

 

SINA Reports Second Quarter 2018 Unaudited Financial Results

 

BEIJING, China—August 8, 2018—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 second quarter ended June 30, 2018.

 

“We had another good quarter.” said Charles Chao, Chairman and CEO of SINA. “Weibo continued to record healthy growth in both user base and monetization despite more intensified competition.” said Mr. Chao. “For SINA businesses, we continued to see robust growth in user scale of SINA mobile apps, which bodes well for improved mobile monetization of SINA media.” Mr. Chao added.

 

Second Quarter 2018 Highlights

 

·          Both net revenues and non-GAAP net revenues increased 50% year-over-year to $537.4 million and $534.8 million, respectively.

·          Advertising revenues increased 54% year-over-year to $454.1 million.

·          Non-advertising revenues increased 31% year-over-year to $83.3 million. Non-GAAP non-advertising revenues increased 32% year-over-year to $80.7 million.

·          Income from operations increased 44% year-over-year to $136.2 million. Non-GAAP income from operations increased 38% year-over-year to $159.1 million.

·          Net income attributable to SINA was $35.1 million, or $0.47 for diluted net income per share attributable to SINA’s ordinary shareholders. Non-GAAP net income attributable to SINA was $66.5 million, or $0.89 for non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders.

 

Second Quarter 2018 Financial Results

 

For the second quarter of 2018, SINA reported net revenues of $537.4 million, an increase of 50% compared to $358.9 million for the same period last year. Non-GAAP net revenues for the second quarter of 2018 were $534.8 million, an increase of 50% compared to $356.3 million for the same period last year.

 

Advertising revenues for the second quarter of 2018 were $454.1 million, an increase of 54% compared to $295.2 million for the same period last year, primarily driven by an increase of $151.6 million, or 69% growth in Weibo advertising and marketing revenues.

 

Non-advertising revenues for the second quarter of 2018 were $83.3 million, an increase of 31% compared to $63.8 million for the same period last year. Non-GAAP non-advertising revenues for the second quarter of 2018 were $80.7 million, an increase of 32% compared to $61.2 million for the same period last year, benefiting from increased Weibo membership fees, revenue share from live broadcasting business, and revenues derived from SINA fin-tech businesses.

 



 

Gross margin for the second quarter of 2018 was 80%, compared to 74% for the same period last year. Advertising gross margin for the second quarter of 2018 was 82%, compared to 76% for the same period last year. The increase in advertising gross margin was mainly resulted from our revenue reporting changed from gross basis to net basis under the new accounting standard adopted. Non-advertising gross margin for the second quarter of 2018 was 69%, compared to 68% for the same period last year.

 

Operating expenses for the second quarter of 2018 totaled $294.7 million, compared to $171.9 million for the same period last year. Apart from the inclusion of marketing expense related to barter transactions recorded under the new accounting standard as illustrated below, the increase in operating expenses was primarily attributable to the increase in sales and marketing expenses for user acquisition of Weibo and SINA mobile apps, as well as the increase in personal costs for product development. Non-GAAP operating expenses for the second quarter of 2018 totaled $272.1 million, compared to $150.6 million for the same period last year.

 

Income from operations for the second quarter of 2018 was $136.2 million, an increase of 44% compared to $94.7 million for the same period last year. Operating margin was 25%, slightly down from 26% for the same period last year. Non-GAAP income from operations for the second quarter of 2018 was $159.1 million, an increase of 38% compared to $115.5 million for the same period last year. Non-GAAP operating margin was 30%, down from 32% for the same period last year.

 

Non-operating income for the second quarter of 2018 was $1.2 million, compared to a non-operating loss of $13.4 million for the same period last year. Non-operating income for the second quarter of 2018 included (i) a $20.1 million net interest and other income; (ii) a $16.4 million net loss on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measure; and (iii) a $2.5 million loss pick-up from equity-method investments, which is reported one quarter in arrears and is mainly resulted from the loss pick-up related to the Company’s investment in Leju Holding Limited (“Leju”). Non-operating loss for the second quarter of 2017 included (i) a $101.0 million gains from disposing of certain marketable securities and other gains, which are excluded under non-GAAP measure; (ii) a $113.1 million of investment impairment write down of the Company’s investment in Leju, which is excluded under non-GAAP measure; and (iii) a $5.3 million loss pick-up from equity-method investments.

 

Income tax expenses for the second quarter of 2018 were $27.9 million, compared to $19.1 million for the same period last year, primarily owing to higher profitability with a relatively stable tax rates in our PRC operation.

 



 

Net income attributable to SINA’s ordinary shareholders for the second quarter of 2018 was $35.1 million, compared to $23.4 million for the same period last year. Diluted net income per share attributable to SINA’s ordinary shareholders for the second quarter of 2018 was $0.47, compared to $0.31 for the same period last year. Non-GAAP net income attributable to SINA’s ordinary shareholders for the second quarter of 2018 was $66.5 million, compared to $52.7 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders for the second quarter of 2018 was $0.89, compared to $0.70 for the same period last year.

 

As of June 30, 2018, SINA’s cash, cash equivalents and short-term investments totaled $2.7 billion, compared to $3.4 billion as of December 31, 2017. The decrease of SINA’s cash, cash equivalents and short-term investments was mainly resulted from continued investment activities and the execution of the Company’s share repurchase program. For the second quarter of 2018, net cash provided by operating activities was $16.4 million, capital expenditures totaled $162.1 million, and depreciation and amortization expenses amounted to $10.0 million.

 

Share Repurchase Program

 

On June 30, 2018, the Company has completed its $500 million share repurchase program which was approved in February 2016 by the Company’s board of directors. As of June 30, 2018, the Company has repurchased approximately 3.4 million shares for approximately $302.6 million under the program.

 

SINA’s board of directors has approved a new share repurchase plan whereby SINA is authorized to repurchase its own ordinary shares with an aggregate value of up to $500 million for a period through the end of December 2019. SINA expects to fund the repurchase out of its existing cash balance. The share repurchase may be effected on the open market at prevailing market prices and/or in negotiated transactions off the market from time to time as market conditions warrant and will be implemented in accordance with applicable rules under the U.S. Securities Exchange Act of 1934, as amended.

 

Financial Impact from New Revenue Guidance

 

As the Company adopted new revenue guidance ASC Topic 606 on January 1, 2018, results for reporting periods beginning after January 1, 2018 are presented under Topic 606 (‘New Basis’), while prior period amounts are not adjusted and continue to be reported under Topic 605 (‘Old Basis’) , which is the Company’s historic accounting method.

 

The Company’s current period reported results which reflected the impact from the adoption of the new revenue guidance are as follows:

 



 

 

 

Three months ended June 30, 2018

 

 

 

Adjustments

 

 

 

Old Basis
ASC 605

 

VAT

 

Barter
Transaction

 

New Basis
ASC 606

 

 

 

($ In thousands, except for percentage)

 

Net revenues

 

540,106

 

(30,159

)

27,413

 

537,360

 

– Portal

 

120,788

 

(6,656

)

672

 

114,804

 

– Weibo

 

423,593

 

(23,745

)

26,741

 

426,589

 

Cost of revenues

 

136,632

 

(30,159

)

 

106,473

 

Operating expenses

 

268,639

 

 

26,069

 

294,708

 

– Sales and marketing

 

157,520

 

 

26,069

 

183,589

 

Income from operations

 

134,835

 

 

1,344

 

136,179

 

Gross margin

 

74.7

%

 

 

 

 

80.2

%

Operating margin

 

25.0

%

 

 

 

 

25.3

%

 

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 from operations, non-GAAP operating margin, non-GAAP net income attributable to SINA’s ordinary shareholders and non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders. 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 related to the license granted to Leju, 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, deemed disposal, fair value changes and impairment on investment, and income tax effects of above non-GAAP to GAAP reconciling items and adjustment for non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests and amortization of convertible debt issuance cost. 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 8:10 a.m. — 8:40 a.m. Eastern Time on August 8, 2018 (or 8:10 p.m. — 8:40 p.m. Beijing Time on August 8, 2018) 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://ir.sina.com. 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:

3381946

 

A replay of the conference call will be available through morning Eastern Time August 16, 2018. The dial-in number is +61 2 9003 4211. The passcode for the replay is 3381946.

 

About SINA

 

SINA is a leading online media company serving China and the global Chinese communities. Its digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile apps) and Weibo (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 mobile provides news information, professional and entertainment content customized for mobile users through mobile applications and mobile portal site SINA.cn.

 

Weibo is a leading social media platform for people to create, distribute and discover content. Based on an open platform architecture, Weibo provides unprecedented and simple way for people and organizations to publicly express themselves in real time, interact with others on a massive global platform and stay connected with the world.

 



 

Through these properties and other product lines, SINA offer an array of online media and social media services to its 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 fin-tech 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 2017 annual reports on Form 20-F 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

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2018

 

2017

 

2018

 

2018

 

2017

 

Net revenues (1):

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

454,091

 

$

295,153

 

$

367,081

 

$

821,172

 

$

523,152

 

Non-advertising

 

83,269

 

63,779

 

73,671

 

156,940

 

113,845

 

 

 

537,360

 

358,932

 

440,752

 

978,112

 

636,997

 

Cost of revenues (1)(2):

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

80,583

 

72,211

 

83,115

 

163,698

 

139,879

 

Non-advertising

 

25,890

 

20,113

 

25,592

 

51,482

 

39,017

 

 

 

106,473

 

92,324

 

108,707

 

215,180

 

178,896

 

Gross profit

 

430,887

 

266,608

 

332,045

 

762,932

 

458,101

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing (1)(2)

 

183,589

 

83,408

 

139,687

 

323,276

 

151,491

 

Product development (2)

 

83,877

 

63,486

 

85,137

 

169,014

 

117,906

 

General and administrative (2)

 

27,242

 

25,036

 

33,932

 

61,174

 

49,059

 

 

 

294,708

 

171,930

 

258,756

 

553,464

 

318,456

 

Income from operations

 

136,179

 

94,678

 

73,289

 

209,468

 

139,645

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

Loss from equity method investments, net

 

(2,527

)

(5,265

)

(1,772

)

(4,299

)

(2,122

)

Gain on sale of investments, fair value changes and impairment on investments, net (3)

 

(16,396

)

(16,315

)

7,226

 

(9,170

)

(432

)

Interest and other income, net

 

20,116

 

8,225

 

17,098

 

37,214

 

19,458

 

 

 

1,193

 

(13,355

)

22,552

 

23,745

 

16,904

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

137,372

 

81,323

 

95,841

 

233,213

 

156,549

 

Income tax expense

 

(27,858

)

(19,135

)

(18,750

)

(46,608

)

(32,961

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

109,514

 

62,188

 

77,091

 

186,605

 

123,588

 

Less: Net income attributable to non-controlling interests

 

74,462

 

38,798

 

48,397

 

122,859

 

61,674

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to SINA’s ordinary shareholders

 

$

35,052

 

$

23,390

 

$

28,694

 

$

63,746

 

$

61,914

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.49

 

$

0.33

 

$

0.40

 

$

0.89

 

$

0.87

 

Diluted net income per share (4)

 

$

0.47

 

$

0.31

 

$

0.38

 

$

0.85

 

$

0.83

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing basic net income per share

 

71,210

 

71,197

 

71,440

 

71,324

 

71,078

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing diluted net income per share

 

73,553

 

73,890

 

74,036

 

73,793

 

73,667

 

 


(1)  On January 1, 2018, the Company adopted ASC 606 Revenue from Contracts with Customers using the modified retrospective method,which means that prior periods amount will be reported on a historical basis and amounts for 2018 are reported on the new basis. Under the new accounting standard, the main impact to the Company is that it now reports revenue net of value added tax and recognizes revenues and expenses at fair value for advertising barter transactions.

 

(2)  Stock-based compensation in each category:

 

Cost of revenues

 

$

2,890

 

$

2,106

 

$

2,541

 

$

5,431

 

$

4,336

 

Sales and marketing

 

6,474

 

5,269

 

4,880

 

11,354

 

9,852

 

Product development

 

7,735

 

6,668

 

7,487

 

15,222

 

13,658

 

General and administrative

 

6,915

 

8,143

 

7,408

 

14,323

 

15,530

 

 

(3)  The Company adopted ASU 2016-1, Classification and Measurement of Financial Instruments beginning the first quarter of fiscal year 2018. After the adoption of this new accounting update, the Company will measure long-term investments other than equity method investments at fair value through earnings.  The Company recognized $8.7 million of loss from fair value changes in the investments for the three months ended June 30, 2018.  For those investments without readily determinable fair values, the Company will elect to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Changes in the basis of these investments will be reported in current earnings.

 

(4)  Net income attributable to SINA’s ordinary shareholders 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,

 

 

 

2018

 

2017

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

1,049,225

 

$

1,990,552

 

Short-term investments

 

1,647,969

 

1,381,991

 

Restricted cash

 

137,806

 

216,151

 

Accounts receivable, net

 

398,654

 

285,681

 

Prepaid expenses and other current assets

 

458,402

 

228,238

 

Subtotal

 

3,692,056

 

4,102,613

 

 

 

 

 

 

 

Property and equipment, net

 

259,627

 

262,676

 

Goodwill and intangible assets, net

 

270,366

 

104,207

 

Long-term investments (1)

 

1,458,380

 

1,288,816

 

Other assets

 

94,307

 

57,082

 

Total assets

 

$

5,774,736

 

$

5,815,394

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

138,680

 

$

130,431

 

Amount due to customers

 

137,806

 

216,151

 

Accrued expenses and other current liabilities

 

478,363

 

446,779

 

Short-term bank loan

 

87,278

 

89,309

 

Convertible debt

 

153,085

 

153,092

 

Deferred revenues

 

144,520

 

134,580

 

Income taxes payable

 

80,948

 

102,458

 

Subtotal

 

1,220,680

 

1,272,800

 

 

 

 

 

 

 

Convertible debt

 

882,054

 

879,983

 

Long-term deferred revenues

 

48,965

 

54,372

 

Other long-term liabilities

 

8,279

 

8,510

 

Total liabilities

 

2,159,978

 

2,215,665

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

SINA shareholders’ equity (1) 

 

2,738,678

 

2,846,842

 

Non-controlling interests

 

876,080

 

752,887

 

Total shareholders’ equity

 

3,614,758

 

3,599,729

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

5,774,736

 

$

5,815,394

 

 


(1) The Company adopted ASU 2016-1, Classification and Measurement of Financial Instruments beginning the first quarter of fiscal year 2018. After the adoption of this new accounting update, the Company will measure long-term investments other than equity method investments at fair value through earnings.  For those investments without readily determinable fair values, the Company will elect to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Changes in the basis of these investments will be reported in current earnings. The cumulative impact arising from the adoption was a credit to retained earnings as of January 1, 2018 of $49.0 million.

 



 

SINA CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(U.S. Dollars in thousands)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2018

 

2017

 

2018

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

Portal:

 

 

 

 

 

 

 

 

 

 

 

Portal Advertising

 

$

84,173

 

$

77,931

 

$

64,132

 

$

148,305

 

$

137,722

 

Other

 

30,631

 

28,746

 

26,774

 

57,405

 

48,908

 

Subtotal

 

114,804

 

106,677

 

90,906

 

205,710

 

186,630

 

 

 

 

 

 

 

 

 

 

 

 

 

Weibo:

 

 

 

 

 

 

 

 

 

 

 

Advertising and marketing

 

369,942

 

218,340

 

302,949

 

672,891

 

387,637

 

Weibo VAS

 

56,647

 

35,033

 

46,934

 

103,581

 

64,937

 

Subtotal

 

426,589

 

253,373

 

349,883

 

776,472

 

452,574

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination

 

(4,033

)

(1,118

)

(37

)

(4,070

)

(2,207

)

 

 

$

537,360

 

$

358,932

 

$

440,752

 

$

978,112

 

$

636,997

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

Portal:

 

 

 

 

 

 

 

 

 

 

 

Portal Advertising

 

$

28,546

 

$

27,647

 

$

29,373

 

$

57,919

 

$

55,129

 

Other

 

20,146

 

14,368

 

16,469

 

36,615

 

27,070

 

Subtotal

 

48,692

 

42,015

 

45,842

 

94,534

 

82,199

 

 

 

 

 

 

 

 

 

 

 

 

 

Weibo

 

61,790

 

50,372

 

62,902

 

124,692

 

96,822

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination

 

(4,009

)

(63

)

(37

)

(4,046

)

(125

)

 

 

$

106,473

 

$

92,324

 

$

108,707

 

$

215,180

 

$

178,896

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

Portal

 

58

%

61

%

50

%

54

%

56

%

Weibo

 

86

%

80

%

82

%

84

%

79

%

 

 

80

%

74

%

75

%

78

%

72

%

 



 

SINA CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

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

 

 

 

Three months ended

 

 

 

June 30, 2018

 

June 30, 2017

 

March 31, 2018

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Non-GAAP

 

 

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising revenues

 

$

454,091

 

 

 

$

454,091

 

$

295,153

 

 

 

$

295,153

 

$

367,081

 

 

 

$

367,081

 

Non-advertising revenues

 

83,269

 

(2,609

)(a)

80,660

 

63,779

 

(2,609

)(a)

61,170

 

73,671

 

(2,609

)(a)

71,062

 

Net revenues

 

$

537,360

 

$

(2,609

)

$

534,751

 

$

358,932

 

$

(2,609

)

$

356,323

 

$

440,752

 

$

(2,609

)

$

438,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

 

 

2,890

(b)

 

 

 

 

2,106

(b)

 

 

 

 

2,541

(b)

 

 

Gross profit

 

$

430,887

 

$

281

 

$

431,168

 

$

266,608

 

$

(503

)

$

266,105

 

$

332,045

 

$

(68

)

$

331,977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,124

)(b)

 

 

 

 

(20,080

)(b)

 

 

 

 

(19,775

)(b)

 

 

 

 

 

 

(1,523

)(c)

 

 

 

 

(1,227

)(c)

 

 

 

 

(1,635

)(c)

 

 

Operating expenses

 

$

294,708

 

$

(22,647

)

$

272,061

 

$

171,930

 

$

(21,307

)

$

150,623

 

$

258,756

 

$

(21,410

)

$

237,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

 

 

24,014

(b)

 

 

 

 

22,186

(b)

 

 

 

 

22,316

(b)

 

 

 

 

 

 

1,523

(c)

 

 

 

 

1,227

(c)

 

 

 

 

1,635

(c)

 

 

Income from operations

 

$

136,179

 

$

22,928

 

$

159,107

 

$

94,678

 

$

20,804

 

$

115,482

 

$

73,289

 

$

21,342

 

$

94,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)(a)

 

 

 

 

 

 

 

 

 

 

(2,609

)(a)

 

 

 

 

 

 

24,014

(b)

 

 

 

 

(2,609

)(a)

 

 

 

 

22,316

(b)

 

 

 

 

 

 

1,523

(c)

 

 

 

 

22,186

(b)

 

 

 

 

1,635

(c)

 

 

 

 

 

 

40

(d)

 

 

 

 

1,227

(c)

 

 

 

 

(451

)(d)

 

 

 

 

 

 

16,396

(e)

 

 

 

 

75

(d)

 

 

 

 

(7,226

)(e)

 

 

 

 

 

 

(8,849

)(f)

 

 

 

 

16,315

(e)

 

 

 

 

(8,183

)(f)

 

 

 

 

 

 

1,035

(g)

 

 

 

 

(7,745

)(f)

 

 

 

 

1,035

(g)

 

 

 

 

 

 

(85

)(h)

 

 

 

 

(180

)(h)

 

 

 

 

21

(h)

 

 

Net income attributable to SINA’s ordinary shareholders

 

$

35,052

 

$

31,465

 

$

66,517

 

$

23,390

 

$

29,269

 

$

52,659

 

$

28,694

 

$

6,538

 

$

35,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share *

 

$

0.47

 

 

 

$

0.89

 

$

0.31

 

 

 

$

0.70

 

$

0.38

 

 

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing diluted net income per share

 

73,553

 

 

73,553

 

73,890

 

 

73,890

 

74,036

 

 

74,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

82

%

1

%

83

%

76

%

 

76

%

77

%

1

%

78

%

Gross margin - non-advertising

 

69

%

-1

%

68

%

68

%

-1

%

67

%

65

%

-1

%

64

%

Operating margin

 

25

%

5

%

30

%

26

%

6

%

32

%

17

%

5

%

22

%

 



 

 

 

Six months ended

 

 

 

June 30, 2018

 

June 30, 2017

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Non-GAAP

 

 

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising revenues

 

$

821,172

 

 

 

$

821,172

 

$

523,152

 

 

 

$

523,152

 

Non-advertising revenues

 

156,940

 

(5,218

)(a)

151,722

 

113,845

 

(5,218

)(a)

108,627

 

Net revenues

 

$

978,112

 

$

(5,218

)

$

972,894

 

$

636,997

 

$

(5,218

)

$

631,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)(a)

 

 

 

 

(5,218

)(a)

 

 

 

 

 

 

5,431

(b)

 

 

 

 

4,336

(b)

 

 

Gross profit

 

$

762,932

 

$

213

 

$

763,145

 

$

458,101

 

$

(882

)

$

457,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(40,899

)(b)

 

 

 

 

(39,040

)(b)

 

 

 

 

 

 

(3,158

)(c)

 

 

 

 

(1,382

)(c)

 

 

Operating expenses

 

$

553,464

 

$

(44,057

)

$

509,407

 

$

318,456

 

$

(40,422

)

$

278,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)(a)

 

 

 

 

(5,218

)(a)

 

 

 

 

 

 

46,330

(b)

 

 

 

 

43,376

(b)

 

 

 

 

 

 

3,158

(c)

 

 

 

 

1,382

(c)

 

 

Income from operations

 

$

209,468

 

$

44,270

 

$

253,738

 

$

139,645

 

$

39,540

 

$

179,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

46,330

(b)

 

 

 

 

(5,218

)(a)

 

 

 

 

 

 

3,158

(c)

 

 

 

 

43,376

(b)

 

 

 

 

 

 

(411

)(d)

 

 

 

 

1,382

(c)

 

 

 

 

 

 

9,170

(e)

 

 

 

 

299

(d)

 

 

 

 

 

 

(17,032

)(f)

 

 

 

 

432

(e)

 

 

 

 

 

 

2,070

(g)

 

 

 

 

(13,239

)(f)

 

 

 

 

 

 

(64

)(h)

 

 

 

 

1,292

(h)

 

 

Net income attributable to SINA’s ordinary shareholders

 

$

63,746

 

$

38,003

 

$

101,749

 

$

61,914

 

$

28,324

 

$

90,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share *

 

$

0.85

 

 

 

$

1.35

 

$

0.83

 

 

 

$

1.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing diluted net income per share

 

73,793

 

 

73,793

 

73,667

 

 

73,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

80

%

1

%

81

%

73

%

1

%

74

%

Gross margin - non-advertising

 

67

%

-1

%

66

%

66

%

-2

%

64

%

Operating margin

 

21

%

5

%

26

%

22

%

6

%

28

%

 


(a)  To exclude the recognition of deferred revenue related to the license granted to Leju.

(b)  To exclude stock-based compensation.

(c)  To adjust amortization of intangible assets.

(d)  To exclude 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 exclude (gain) loss on sale of investments, (gain) loss on deemed disposal, fair value changes and impairment on investments, net.

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

(g)  To exclude the amortization of convertible debt issuance cost.

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

 

*               Net income attributable to SINA’s ordinary shareholders 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, valuation allowances were made for those differences 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

 

 

 

June 30, 2018

 

June 30, 2017

 

March 31, 2018

 

 

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To exclude stock-based compensation

 

 

 

$

833

 

 

 

 

 

$

736

 

 

 

 

 

$

584

 

 

 

To exclude amortization of intangible assets resulting from business acquisitions

 

 

 

1,115

 

 

 

 

 

1,035

 

 

 

 

 

1,123

 

 

 

To exclude (gain) loss on disposal and impairment on investments, net

 

 

 

75

 

 

 

 

 

(1,319

)

 

 

 

 

1,669

 

 

 

To exclude gain resulting from the fair value changes in investments, net

 

 

 

(1,313

)

 

 

 

 

(637

)

 

 

 

 

(3,339

)

 

 

To exclude tax impacts related to amortization of intangible assets

 

 

 

(253

)

 

 

 

 

(143

)

 

 

 

 

(178

)

 

 

Loss from equity method investments, net

 

$

(2,944

)

$

457

 

$

(2,487

)

$

(4,862

)

$

(328

)

$

(5,190

)

$

(2,082

)

$

(141

)

$

(2,223

)

Share of amortization of equity investments’ intangibles not on their books

 

351

 

(351

)

 

(523

)

523

 

 

224

 

(224

)

 

Share of tax impacts related to amortization of equity investments’ intangibles not on their books

 

66

 

(66

)

 

120

 

(120

)

 

86

 

(86

)

 

 

 

$

(2,527

)

$

40

 

$

(2,487

)

$

(5,265

)

$

75

 

$

(5,190

)

$

(1,772

)

$

(451

)

$

(2,223

)

 

 

 

Six months ended

 

 

 

 

 

June 30, 2018

 

June 30, 2017

 

 

 

 

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To exclude stock-based compensation

 

 

 

$

1,417

 

 

 

 

 

$

1,056

 

 

 

 

 

 

 

 

 

To exclude amortization of intangible assets resulting from business acquisitions

 

 

 

2,238

 

 

 

 

 

1,137

 

 

 

 

 

 

 

 

 

To exclude (gain) loss on disposal and impairment on investments, net

 

 

 

1,744

 

 

 

 

 

(1,640

)

 

 

 

 

 

 

 

 

To exclude gain resulting from the fair value changes in investments, net

 

 

 

(4,652

)

 

 

 

 

(598

)

 

 

 

 

 

 

 

 

To exclude tax impacts related to amortization of intangible assets

 

 

 

(431

)

 

 

 

 

(164

)

 

 

 

 

 

 

 

 

Loss from equity method investments, net

 

$

(5,026

)

$

316

 

$

(4,710

)

$

(1,614

)

$

(209

)

$

(1,823

)

 

 

 

 

 

 

Share of amortization of equity investments’ intangibles not on their books

 

575

 

(575

)

 

(648

)

648

 

 

 

 

 

 

 

 

Share of tax impacts related to amortization of equity investments’ intangibles not on their books

 

152

 

(152

)

 

140

 

(140

)

 

 

 

 

 

 

 

 

 

$

(4,299

)

$

(411

)

$

(4,710

)

$

(2,122

)

$

299

 

$

(1,823

)

 

 

 

 

 

 

 


* Earning (Loss) from equity method investments is recorded one quarter in arrears.