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 2019

 

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

 

 

 


 

EXHIBIT INDEX

 

99.1 - Press Release

 

2


 

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 20, 2019

By:

/s/ Bonnie Yi Zhang

 

 

Bonnie Yi Zhang

 

 

Chief Financial Officer

 

3


Exhibit 99.1

 

SINA Reports Second Quarter 2019 Unaudited Financial Results

 

BEIJING, China—August 19, 2019—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, 2019.

 

Second Quarter 2019 Highlights

 

·          Net revenues decreased 1% year-over-year to $533.1 million. Non-GAAP net revenues decreased 1% year-over-year to $530.4 million, representing an increase of 5% on a constant currency basis [1].

·          Advertising revenues decreased 5% year-over-year to $433.6 million.

·          Non-advertising revenues increased 19% year-over-year to $99.4 million. Non-GAAP non-advertising revenues increased 20% year-over-year to $96.8 million.

·          Net income attributable to SINA was $51.4 million, or $0.73 for diluted net income per share attributable to SINA’s ordinary shareholders. Non-GAAP net income attributable to SINA was $54.0 million, or $0.76 for non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders.

 


[1] On a constant currency (non-GAAP) basis, we assume that the exchange rate in the second quarter of 2019 had been the same as it was in the second quarter of 2018, or RMB6.40=US$1.00.

 

Second Quarter 2019 Financial Results

 

For the second quarter of 2019, SINA reported net revenues of $533.1 million, a decrease of 1% compared to $537.4 million for the same period last year. Non-GAAP net revenues for the second quarter of 2019 were $530.4 million, a decrease of 1% compared to $534.8 million for the same period last year.

 

Advertising revenues for the second quarter of 2019 were $433.6 million, a decrease of 5% compared to $454.1 million for the same period last year, primarily due to a decline in portal advertising revenues and negative currency translation impact.

 

Non-advertising revenues for the second quarter of 2019 were $99.4 million, an increase of 19% compared to $83.3 million for the same period last year. Non-GAAP non-advertising revenues for the second quarter of 2019 were $96.8 million, an increase of 20% compared to $80.7 million for the same period last year. The year-over-year growth in non-advertising revenues was mainly attributable to the revenues derived from Weibo’s live streaming business acquired in the fourth quarter of 2018 and increased revenues generated from SINA fin-tech businesses.

 

Gross margin for the second quarter of 2019 was 77%, compared to 80% for the same period last year. Advertising gross margin for the second quarter of 2019 was 80%, compared to 82% for the same period last year. Non-advertising gross margin for the second quarter of 2019 was 61%, down from 69% for the same period last year, resulted from the relatively lower gross margin of the acquired live streaming business of Weibo.

 


 

Operating expenses for the second quarter of 2019 totaled $282.7 million, compared to $294.7 million for the same period last year. Non-GAAP operating expenses for the second quarter of 2019 totaled $256.0 million, compared to $272.1 million for the same period last year. The year-over-year decrease in operating expenses was primarily attributable to a reduction in sales and marketing expenses through cost efficiency achieved in channel marketing campaigns.

 

Income from operations for the second quarter of 2019 was $126.0 million, compared to $136.2 million for the same period last year. Operating margin was 24%, compared to 25% for the same period last year. Non-GAAP income from operations for the second quarter of 2019 was $152.8 million, compared to $159.1 million for the same period last year. Non-GAAP operating margin was 29%, compared to 30% for the same period last year.

 

Non-operating income for the second quarter of 2019 was $19.7 million, compared to $1.2 million for the same period last year. Non-operating income for the second quarter of 2019 included (i) a $15.7 million net interest and other income; (ii) a $4.3 million net earning from equity method investments, which is reported one quarter in arrears; and (iii) a $0.3 million net loss on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measures. 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 measures; and (iii) a $2.5 million net loss from equity method investments, which is reported one quarter in arrears.

 

Income tax expenses for the second quarter of 2019 were $46.7 million, compared to $27.9 million for the same period last year, largely attributable to the deferred tax charges recognized from the fair value changes of investments.

 

Net income attributable to SINA’s ordinary shareholders for the second quarter of 2019 was $51.4 million, compared to $35.1 million for the same period last year. Diluted net income per share attributable to SINA’s ordinary shareholders for the second quarter of 2019 was $0.73, compared to $0.47 for the same period last year. Non-GAAP net income attributable to SINA’s ordinary shareholders for the second quarter of 2019 was $54.0 million, compared to $66.5 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 2019 was $0.76, compared to $0.89 for the same period last year.

 

As of June 30, 2019, SINA’s cash, cash equivalents and short-term investments totaled $2.0 billion, compared to $2.3 billion as of December 31, 2018. For the second quarter of 2019, net cash provided by operating activities was $128.6 million, capital expenditures totaled $5.0 million, and depreciation and amortization expenses amounted to $11.6 million.

 


 

Non-GAAP Measures

 

This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP advertising 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, adjustment for non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests, amortization of convertible debt issuance cost, and income tax effects of above non-GAAP to GAAP reconciling items. 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 19, 2019 (or 8:10 p.m. — 8:40 p.m. Beijing Time on August 19, 2019) 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 0437

Hong Kong:

+852 3018 6771

China:

400 620 8038

International:

+65 6713 5090

Passcode for all regions:

8595969

 

A replay of the conference call will be available through morning Eastern Time August 27, 2019. The dial-in number is +61 2 8199 0299. The passcode for the replay is 8595969.

 

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 adverse impacts on our financial results from equity pick-up, fair value changes 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 2018 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,

 

 

 

2019

 

2018

 

2019

 

2019

 

2018

 

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

433,633

 

$

454,091

 

$

388,025

 

$

821,658

 

$

821,172

 

Non-advertising

 

99,421

 

83,269

 

87,114

 

186,535

 

156,940

 

 

 

533,054

 

537,360

 

475,139

 

1,008,193

 

978,112

 

Cost of revenues (1):

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

85,589

 

80,583

 

84,379

 

169,968

 

163,698

 

Non-advertising

 

38,722

 

25,890

 

31,144

 

69,866

 

51,482

 

 

 

124,311

 

106,473

 

115,523

 

239,834

 

215,180

 

Gross profit

 

408,743

 

430,887

 

359,616

 

768,359

 

762,932

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing (1)

 

147,721

 

183,589

 

145,478

 

293,199

 

323,276

 

Product development (1)

 

91,981

 

83,877

 

94,049

 

186,030

 

169,014

 

General and administrative (1)

 

43,016

 

27,242

 

33,160

 

76,176

 

61,174

 

 

 

282,718

 

294,708

 

272,687

 

555,405

 

553,464

 

Income from operations

 

126,025

 

136,179

 

86,929

 

212,954

 

209,468

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating income:

 

 

 

 

 

 

 

 

 

 

 

Earning (loss) from equity method investments, net

 

4,316

 

(2,527

)

(16,253

)

(11,937

)

(4,299

)

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

 

(315

)

(16,396

)

80,806

 

80,491

 

(9,170

)

Interest and other income, net

 

15,744

 

20,116

 

13,102

 

28,846

 

37,214

 

 

 

19,745

 

1,193

 

77,655

 

97,400

 

23,745

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

145,770

 

137,372

 

164,584

 

310,354

 

233,213

 

Income tax expenses

 

(46,720

)

(27,858

)

(65,235

)

(111,955

)

(46,608

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

99,050

 

109,514

 

99,349

 

198,399

 

186,605

 

Less: Net income attributable to non-controlling interests

 

47,626

 

74,462

 

66,266

 

113,892

 

122,859

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to SINA’s ordinary shareholders

 

$

51,424

 

$

35,052

 

$

33,083

 

$

84,507

 

$

63,746

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.74

 

$

0.49

 

$

0.48

 

$

1.21

 

$

0.89

 

Diluted net income per share (2)

 

$

0.73

 

$

0.47

 

$

0.46

 

$

1.20

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing basic net income per share

 

69,709

 

71,210

 

69,461

 

69,586

 

71,324

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing diluted net income per share

 

69,944

 

73,553

 

69,759

 

69,852

 

73,793

 

 


(1) Stock-based compensation in each category:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

$

2,620

 

$

2,890

 

$

2,536

 

$

5,156

 

$

5,431

 

Sales and marketing

 

6,031

 

6,474

 

5,620

 

11,651

 

11,354

 

Product development

 

8,415

 

7,735

 

9,654

 

18,069

 

15,222

 

General and administrative

 

11,200

 

6,915

 

10,978

 

22,178

 

14,323

 

 

 

(2) Net income attributable to SINA’s ordinary shareholders is adjusted for diluted shares issued by our subsidiary and equity method investments.

 

1


 

SINA CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2019

 

2018

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

1,432,065

 

$

1,545,800

 

Short-term investments

 

599,048

 

799,534

 

Restricted cash

 

117,065

 

97,032

 

Accounts receivable, net

 

613,796

 

527,897

 

Financing receivables, net (1)

 

216,090

 

 

Prepaid expenses and other current assets

 

570,784

 

362,435

 

Subtotal

 

3,548,848

 

3,332,698

 

 

 

 

 

 

 

Property and equipment, net

 

256,837

 

262,846

 

Operating lease right-of-use assets, net (2)

 

32,820

 

 

Goodwill and intangible assets, net

 

315,867

 

319,575

 

Long-term investments

 

2,300,967

 

1,889,843

 

Other assets

 

67,708

 

81,127

 

Total assets

 

$

6,523,047

 

$

5,886,089

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

180,150

 

$

172,562

 

Amount due to customers

 

89,445

 

97,032

 

Accrued expenses and other current liabilities

 

665,302

 

540,807

 

Short-term bank loan

 

70,838

 

78,229

 

Deferred revenues

 

153,609

 

139,306

 

Short-term operating lease liabilities (2)

 

14,675

 

 

Funding debts (1)

 

137,056

 

 

Income taxes payable

 

96,289

 

115,725

 

Subtotal

 

1,407,364

 

1,143,661

 

 

 

 

 

 

 

Convertible debt

 

886,195

 

884,123

 

Long-term funding debts(1)

 

43,688

 

 

Long-term deferred revenues

 

38,435

 

43,652

 

Long-term operating lease liabilities(2)

 

20,026

 

 

Other long-term liabilities

 

109,741

 

51,781

 

Total liabilities

 

2,505,449

 

2,123,217

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

SINA shareholders’ equity

 

2,835,718

 

2,717,791

 

Non-controlling interests

 

1,181,880

 

1,045,081

 

Total shareholders’ equity

 

4,017,598

 

3,762,872

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

6,523,047

 

$

5,886,089

 

 


(1) In 2019, the Company set up few trusts, which were administered by third-party trust company to invest in consumer loans to the individual borrowers recommended by the Company. The trusts are considered as variable interest entities under ASC 810. Accordingly, the financing receivables due from the borrowers and the loan payables to the third party investors of the trust units are recorded on the Company’s consolidated balance sheet as financing receivables and funding debts, respectively.

 

(2) The Company adopted the new leasing guidance (ASU 2016-2) started from January 1, 2019, which requires that a lessee recognize the assets and liabilities that arise from operating leases. The Company recognized a right-of-use asset and a liability relating to lease payments (the Lease Liability) in the statements of financial position for lease contracts having terms beyond 12 months period.

 

2


 

SINA CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(U.S. Dollars in thousands)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2019

 

2018

 

2019

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

Portal:

 

 

 

 

 

 

 

 

 

 

 

Portal Advertising

 

$

62,973

 

$

84,173

 

$

46,896

 

$

109,869

 

$

148,305

 

Other

 

43,740

 

30,631

 

34,916

 

78,656

 

57,405

 

Subtotal

 

106,713

 

114,804

 

81,812

 

188,525

 

205,710

 

 

 

 

 

 

 

 

 

 

 

 

 

Weibo:

 

 

 

 

 

 

 

 

 

 

 

Advertising and marketing

 

370,660

 

369,942

 

341,141

 

711,801

 

672,891

 

Weibo VAS

 

61,176

 

56,647

 

58,036

 

119,212

 

103,581

 

Subtotal

 

431,836

 

426,589

 

399,177

 

831,013

 

776,472

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination

 

(5,495

)

(4,033

)

(5,850

)

(11,345

)

(4,070

)

 

 

$

533,054

 

$

537,360

 

$

475,139

 

$

1,008,193

 

$

978,112

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

Portal:

 

 

 

 

 

 

 

 

 

 

 

Portal Advertising

 

$

25,011

 

$

28,546

 

$

21,660

 

$

46,671

 

$

57,919

 

Other

 

22,823

 

20,146

 

16,884

 

39,707

 

36,615

 

Subtotal

 

47,834

 

48,692

 

38,544

 

86,378

 

94,534

 

 

 

 

 

 

 

 

 

 

 

 

 

Weibo

 

81,972

 

61,790

 

82,817

 

164,789

 

124,692

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination

 

(5,495

)

(4,009

)

(5,838

)

(11,333

)

(4,046

)

 

 

$

124,311

 

$

106,473

 

$

115,523

 

$

239,834

 

$

215,180

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

Portal

 

55

%

58

%

53

%

54

%

54

%

Weibo

 

81

%

86

%

79

%

80

%

84

%

 

 

77

%

80

%

76

%

76

%

78

%

 

3


 

SINA CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

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

 

 

 

Three months ended

 

 

 

June 30, 2019

 

June 30, 2018

 

March 31, 2019

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Non-GAAP

 

 

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising revenues

 

$

433,633

 

 

 

$

433,633

 

$

454,091

 

 

 

$

454,091

 

$

388,025

 

 

 

$

388,025

 

Non-advertising revenues

 

99,421

 

(2,609

)(a)

96,812

 

83,269

 

(2,609

)(a)

80,660

 

87,114

 

(2,609

)(a)

84,505

 

Net revenues

 

$

533,054

 

$

(2,609

)

$

530,445

 

$

537,360

 

$

(2,609

)

$

534,751

 

$

475,139

 

$

(2,609

)

$

472,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

 

 

2,620

(b)

 

 

 

 

2,890

(b)

 

 

 

 

2,536

(b)

 

 

Gross profit

 

$

408,743

 

$

11

 

$

408,754

 

$

430,887

 

$

281

 

$

431,168

 

$

359,616

 

$

(73

)

$

359,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25,646

)(b)

 

 

 

 

(21,124

)(b)

 

 

 

 

(26,252

)(b)

 

 

 

 

 

 

(1,107

)(c)

 

 

 

 

(1,523

)(c)

 

 

 

 

(1,124

)(c)

 

 

Operating expenses

 

$

282,718

 

$

(26,753

)

$

255,965

 

$

294,708

 

$

(22,647

)

$

272,061

 

$

272,687

 

$

(27,376

)

$

245,311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

 

 

28,266

(b)

 

 

 

 

24,014

(b)

 

 

 

 

28,788

(b)

 

 

 

 

 

 

1,107

(c)

 

 

 

 

1,523

(c)

 

 

 

 

1,124

(c)

 

 

Income from operations

 

$

126,025

 

$

26,764

 

$

152,789

 

$

136,179

 

$

22,928

 

$

159,107

 

$

86,929

 

$

27,303

 

$

114,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

(2,609

)(a)

 

 

 

 

 

 

28,266

(b)

 

 

 

 

24,014

(b)

 

 

 

 

28,788

(b)

 

 

 

 

 

 

1,107

(c)

 

 

 

 

1,523

(c)

 

 

 

 

1,124

(c)

 

 

 

 

 

 

(4,881

)(d)

 

 

 

 

40

(d)

 

 

 

 

15,307

(d)

 

 

 

 

 

 

315

(e)

 

 

 

 

16,396

(e)

 

 

 

 

(80,806

)(e)

 

 

 

 

 

 

(39,281

)(f)

 

 

 

 

(8,849

)(f)

 

 

 

 

(7,436

)(f)

 

 

 

 

 

 

1,037

(g)

 

 

 

 

1,035

(g)

 

 

 

 

1,035

(g)

 

 

 

 

 

 

18,605

(h)

 

 

 

 

(85

)(h)

 

 

 

 

40,367

(h)

 

 

Net income attributable to SINA’s ordinary shareholders

 

$

51,424

 

$

2,559

 

$

53,983

 

$

35,052

 

$

31,465

 

$

66,517

 

$

33,083

 

$

(4,230

)

$

28,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share *

 

$

0.73

 

 

 

$

0.76

 

$

0.47

 

 

 

$

0.89

 

$

0.46

 

 

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing diluted net income per share

 

69,944

 

 

69,944

 

73,553

 

 

73,553

 

69,759

 

 

69,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

80

%

1

%

81

%

82

%

1

%

83

%

78

%

1

%

79

%

Gross margin - non-advertising

 

61

%

-1

%

60

%

69

%

-1

%

68

%

64

%

-1

%

63

%

Operating margin

 

24

%

5

%

29

%

25

%

5

%

30

%

18

%

6

%

24

%

 

4


 

 

 

Six months ended

 

 

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Non-GAAP

 

 

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising revenues

 

$

821,658

 

 

 

$

821,658

 

$

821,172

 

 

 

$

821,172

 

Non-advertising revenues

 

186,535

 

(5,218

)(a)

181,317

 

156,940

 

(5,218

)(a)

151,722

 

Net revenues

 

$

1,008,193

 

$

(5,218

)

$

1,002,975

 

$

978,112

 

$

(5,218

)

$

972,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)(a)

 

 

 

 

(5,218

)(a)

 

 

 

 

 

 

5,156

(b)

 

 

 

 

5,431

(b)

 

 

Gross profit

 

$

768,359

 

$

(62

)

$

768,297

 

$

762,932

 

$

213

 

$

763,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(51,898

)(b)

 

 

 

 

(40,899

)(b)

 

 

 

 

 

 

(2,231

)(c)

 

 

 

 

(3,158

)(c)

 

 

Operating expenses

 

$

555,405

 

$

(54,129

)

$

501,276

 

$

553,464

 

$

(44,057

)

$

509,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)(a)

 

 

 

 

(5,218

)(a)

 

 

 

 

 

 

57,054

(b)

 

 

 

 

46,330

(b)

 

 

 

 

 

 

2,231

(c)

 

 

 

 

3,158

(c)

 

 

Income from operations

 

$

212,954

 

$

54,067

 

$

267,021

 

$

209,468

 

$

44,270

 

$

253,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)(a)

 

 

 

 

(5,218

)(a)

 

 

 

 

 

 

57,054

(b)

 

 

 

 

46,330

(b)

 

 

 

 

 

 

2,231

(c)

 

 

 

 

3,158

(c)

 

 

 

 

 

 

10,426

(d)

 

 

 

 

(411

)(d)

 

 

 

 

 

 

(80,491

)(e)

 

 

 

 

9,170

(e)

 

 

 

 

 

 

(46,717

)(f)

 

 

 

 

(17,032

)(f)

 

 

 

 

 

 

2,072

(g)

 

 

 

 

2,070

(g)

 

 

 

 

 

 

58,972

(h)

 

 

 

 

(64

)(h)

 

 

Net income attributable to SINA’s ordinary shareholders

 

$

84,507

 

$

(1,671

)

$

82,836

 

$

63,746

 

$

38,003

 

$

101,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share *

 

$

1.20

 

 

 

$

1.16

 

$

0.85

 

 

 

$

1.35

 

Shares used in computing diluted net income per share

 

69,852

 

 

69,852

 

73,793

 

 

73,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

79

%

1

%

80

%

80

%

1

%

81

%

Gross margin - non-advertising

 

63

%

-2

%

61

%

67

%

-1

%

66

%

Operating margin

 

21

%

6

%

27

%

21

%

5

%

26

%

 


(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 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.

 

**          The Company considered the tax implication arising from the reconciliation items, and those items recorded in entities in tax free jurisdictions were without relevant 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.

 

5


 

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

 

 

 

Three months ended

 

 

 

June 30, 2019

 

June 30, 2018

 

March 31, 2019

 

 

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To exclude stock-based compensation

 

 

 

$

178

 

 

 

 

 

$

833

 

 

 

 

 

$

287

 

 

 

To exclude amortization of intangible assets resulting from business acquisitions

 

 

 

1,048

 

 

 

 

 

1,115

 

 

 

 

 

1,062

 

 

 

To exclude loss on disposal and impairment on investments

 

 

 

90

 

 

 

 

 

75

 

 

 

 

 

6,713

 

 

 

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

 

 

 

(5,525

)

 

 

 

 

(1,313

)

 

 

 

 

7,915

 

 

 

To exclude tax impacts related to amortization of intangible assets

 

 

 

(244

)

 

 

 

 

(253

)

 

 

 

 

(248

)

 

 

Earning (loss) from equity method investments, net

 

$

3,888

 

$

(4,453

)

$

(565

)

$

(2,944

)

$

457

 

$

(2,487

)

$

(16,675

)

$

15,729

 

$

(946

)

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

 

365

 

(365

)

 

351

 

(351

)

 

358

 

(358

)

 

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

 

63

 

(63

)

 

66

 

(66

)

 

64

 

(64

)

 

 

 

$

4,316

 

$

(4,881

)

$

(565

)

$

(2,527

)

$

40

 

$

(2,487

)

$

(16,253

)

$

15,307

 

$

(946

)

 

 

 

Six months ended

 

 

 

June 30, 2019

 

June 30, 2018

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Non-GAAP

 

 

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To exclude stock-based compensation

 

 

 

$

465

 

 

 

 

 

$

1,417

 

 

 

To exclude amortization of intangible assets resulting from business acquisitions

 

 

 

2,110

 

 

 

 

 

2,238

 

 

 

To exclude loss on disposal and impairment on investments, net

 

 

 

6,803

 

 

 

 

 

1,744

 

 

 

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

 

 

 

2,390

 

 

 

 

 

(4,652

)

 

 

To exclude tax impacts related to amortization of intangible assets

 

 

 

(492

)

 

 

 

 

(431

)

 

 

Loss from equity method investments, net

 

$

(12,787

)

$

11,276

 

$

(1,511

)

$

(5,026

)

$

316

 

$

(4,710

)

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

 

723

 

(723

)

 

575

 

(575

)

 

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

 

127

 

(127

)

 

152

 

(152

)

 

 

 

$

(11,937

)

$

10,426

 

$

(1,511

)

$

(4,299

)

$

(411

)

$

(4,710

)

 


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

 

6