BEIJING, Aug. 24, 2014 /PRNewswire/ -- Qihoo 360
Technology Co. Ltd. ("Qihoo 360" or the "Company") (NYSE:
QIHU), a leading Internet company in China, today reported its
unaudited financial results for the second quarter ended
June 30, 2014.
Second Quarter Financial
Highlights1
- Revenues were $317.9 million, a
109.6% increase from $151.7
million in the second quarter of 2013.
- Net income attributable to Qihoo 360 was $39.1 million, compared to $33.0 million in the second quarter of 2013.
- Non-GAAP net income attributable to Qihoo 360 (1)
was $69.2 million, compared to
$51.0 million in the second quarter
of 2013.
- Diluted earnings per ADS(2) ("EPADS") attributable
to Qihoo 360 was $0.30, compared to
$0.26 in the same period last
year.
- Non-GAAP diluted EPADS attributable to Qihoo 360 (1)
was $0.50, compared to $0.40 in the same period last year.
Second Quarter Operating Metrics
- Total monthly active users of Qihoo 360's PC-based products and
services reached a record of 496 million in June 2014, compared to 461 million in
June 2013(3).
- User penetration of Qihoo 360's PC-based products was 93.9% in
June 2014, compared to 96% in
June 2013(3).
- Total smartphone users of Qihoo 360's primary mobile security
product (4) reached a record of 641 million in
June 2014, compared to 338 million in
June 2013(5).
- Monthly active users of Qihoo 360's PC browsers were 345
million in June 2014, compared to 330
million in June 2013(3).
- User penetration of Qihoo 360's PC browsers was 65.2% in
June 2014, compared to 69% in
June 2013(3).
- Average daily unique visitors to the 360 Personal Start-up Page
and its sub-pages were 128 million in the second quarter of 2014,
compared to 114 million in the second quarter of
2013(5).
- Average daily clicks on Qihoo 360's Personal Start-up Page and
its sub-pages were approximately 749 million in the second quarter
of 2014, compared to 590 million in the second quarter of
2013(5).
"We delivered another quarter of strong growth and solid
operational metrics," said Mr. Hongyi
Zhou, Chairman and Chief Executive Officer of Qihoo
360. "As we maintain our leadership position in key
PC-related product categories, we are making a significant
transition to the ever more-important mobile Internet market. The
number of Chinese smartphone users of our key mobile security
product, 360 Mobile Safe, reached 641 million in the second
quarter, further strengthening our indisputable leadership position
in Internet security in China. In
addition, our Android-based app store, 360 Mobile Assistant,
continues to lead the market with the largest Android app
distribution market share. We intend to continue to invest
significant resources in the fast-growing mobile Internet
market for the foreseeable future."
"A few days ago, our share of Internet search traffic reached
over 30% according to third-party data, achieving our year-end
target four months ahead of schedule. As we continue to claim
higher market share in PC search, we intend to allocate
significantly more resources to support product development and
market penetration of our mobile search. Through continued product
improvement and technological innovation, we believe we are in an
excellent position to further grow our share of China's search market in both PC and mobile
traffic and revenue.
Mr. Xiangdong Qi, President of
Qihoo 360, added, "We are excited to see robust growth in key areas
of our business. Online advertising grew 89% year-over-year,
supported by strong contributions from both search and mobile
monetization and deepening monetization of our user traffic.
Internet value-added services continue to show strong momentum with
revenue growth of 140%, driven by strength in PC games and a
continued ramp-up in mobile games. Since we began monetizing our
search and mobile products at the beginning of 2013 we have made
significant progress, and are encouraged by the results. While
search and mobile monetization are still in their early stages, we
believe they represent a substantial long-term growth opportunity
for our company. We will continue to make significant investments
in the coming quarters to strengthen our brand and market position,
and to improve our products and technology, particularly in mobile
Internet-related areas. At the same time, we also intend to
strengthen and expand our ecosystem through strategic partnerships
and investments in the rapidly evolving industry landscape."
Second Quarter 2014 Results
Revenues
Revenues were $317.9 million,
representing an increase of 109.6% from $151.7 million in
the second quarter of 2013 and an increase of 19.9% from
$265.1 million in the first quarter
of 2014. The robust year-over-year growth was due to strong
performance in both online advertising and Internet value-added
services, driven by continued ramp in search and mobile
monetization, as well as strong user traffic growth and
monetization.
Online advertising revenues were $171.3
million, up 89.0% from the same period last year and 22.3%
from the prior quarter. The strong year-over-year increase was
primarily driven by incremental contribution from search and mobile
advertising and increased monetization of user activities on 360
Personalized Start-up Pages. Strong momentum in search and seasonal
strength in advertising supported solid sequential growth.
Internet value-added service revenues, which are mainly derived
from game platform operations, were $146.2
million, up 140.0% from the same period last year and 17.2%
from the prior quarter. The robust year-over-year growth was mainly
driven by the strong growth in both PC and mobile games. Other IVAS
and game operations also drove healthy sequential growth.
Cost of Revenues
Cost of revenues were $66.6
million, compared to $17.8
million in the second quarter of 2013 and $50.4 million in the first quarter of 2014,
representing increases of 273.3% and 32.2%, respectively.
Operating Expenses
Operating expenses were $208.3
million, compared to $97.2
million in the second quarter of 2013 and $175.1 million in the first quarter of 2014.
Non-GAAP operating expenses(1) were $182.6 million, compared to $79.3 million in the second quarter of 2013 and
$155.2 million in the prior
quarter.
The year-over-year and sequential increases in non-GAAP
operating expenses(1) were mainly driven by increased
marketing and promotional expenses, personnel-related costs, and
bandwidth and equipment depreciation expenses, as the Company
continued to strengthen its brand and market position, and enhance
its technology and product development capabilities in an
increasingly competitive industry.
Operating Income
Operating income was $43.9
million, compared to $36.6
million in the second quarter of 2013 and $39.6 million in the prior quarter.
Non-GAAP operating income(1) was $69.7 million, compared to $54.5 million in the second quarter of 2013 and
$59.5 million in the prior
quarter.
Operating margin was 13.8%, compared to 24.1% in the second
quarter of 2013 and 14.9% in the prior quarter.
Non-GAAP operating margin(1) was 21.9%, compared to
36.0% in the second quarter of 2013 and 22.5% in the prior
quarter.
The year-over-year and sequential decline in non-GAAP operating
margin(1) was mainly due to increased marketing and
promotional expenses, personnel-related costs, and bandwidth and
equipment depreciation expenses.
Net Income
attributable to Qihoo 360
Net income attributable to Qihoo 360 was $39.1 million,
compared to $33.0 million in the
second quarter of 2013 and $49.1
million in the prior quarter.
Non-GAAP net income(1) attributable to Qihoo 360 was
$69.2 million, compared to
$51.0 million in the second quarter
of 2013 and $73.3 million in the
prior quarter.
Net Margin
Net margin was 12.3%, compared to 21.8% in the same period last
year, and 18.5% in the prior quarter.
Non-GAAP net margin(1) was 21.8%, compared to 33.6%
in the same period last year and 27.7% in the prior quarter.
Diluted Earnings per ADS
Diluted EPADS for the second quarter of 2014 was $0.30, and non-GAAP diluted EPADS(1)
for the second quarter of 2014 was $0.50. The GAAP weighted average
ADS(1) used in computing diluted EPADS was 131.9
million.
Cash Flows and Balance Sheet
Net cash generated from operations in the second quarter of 2014
was $57.7 million, compared to
$86.4 million in the same period
last year and $100.5 million in the
prior quarter. Cash capital expenditures were $41.4 million. As of June 30, 2014, the Company had cash and cash
equivalents of $786.8 million.
Business Outlook
For the third quarter of 2014, the Company expects revenues to
be between $360 million and $365
million, representing a year-over-year increase of 92% to
94% and quarter-over-quarter increase of 13% to 15%. These
estimates reflect the Company's current and preliminary view, which
is subject to possible material changes.
Conference Call
Qihoo 360's management will host a conference call to discuss
the results at 7:30 a.m. Eastern Time
on August 25, 2014 (7:30 p.m. Beijing time on August
25, 2014).
The dial-in details for the live conference call are:
|
US Toll Free Dial
In:
|
+1
866-519-4004
|
|
International Dial
In:
|
+65 6723 9381
|
|
Hong Kong Dial
In:
|
+852-2475-0994
|
|
Passcode:
|
87291151
|
A telephone replay of the call will be available after the
conclusion of the conference call at 10:30
a.m. Eastern Time on August 25,
2014 through 09:30 a.m. Eastern
Time on September 2, 2014. The
dial-in details for the replay are:
|
International Dial
In:
|
+61 2 8199 0299
|
|
US Dial
In:
|
+1
646-254-3697
|
|
Passcode:
|
87291151
|
A live webcast of the conference call will be available on the
investor relations section of Qihoo 360's website at:
http://corp.360.cn.
About Qihoo 360
Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) is a leading Internet
company in China. The Company is
also the number one provider of Internet and mobile security
products in China as measured by
its user base, according to iResearch. Qihoo 360 also provides
users with secure access points to the Internet via its market
leading web browsers and application stores. The Company has built
one of the largest open Internet platforms in China and monetizes its massive user base
primarily through online advertising and through Internet
value-added services on its open platform.
Forward-looking Statements
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward- looking statements by
terminology such as "will," "expects," "believes," "anticipates,"
"intends," "estimates" and similar statements. Among other things,
the management's quotations and the "Business Outlook" section
contain forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and
projections about Qihoo 360 and the industry. Potential risks and
uncertainties include, but are not limited to: the Company's
ability to continue to innovate and provide attractive products and
services to attract and retain users; the Company's ability to keep
up with rapid changes in technologies and Internet-enabled devices;
the Company's ability to leverage its user base to attract
customers for our revenue-generating services; and the Company's
dependence on online advertising for a substantial portion of our
revenues; and the Company's ability to compete effectively. All
information provided in this press release is as of the date of the
press release, and Qihoo 360 undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although Qihoo 360 believes that the expectations
expressed in these forward-looking statements are reasonable, it
cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ
materially from the anticipated results. Further information
regarding risks and uncertainties faced by Qihoo 360 is included in
Qihoo 360's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F dated
April 25, 2014.
About Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
U.S. GAAP, we use non-GAAP financial measure, which is adjusted
from results based on U.S. GAAP to exclude share-based compensation
expenses and interest expense of Convertible Senior Notes.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP
financial measures are set forth in tables at the end of this
earnings release, which provide more details on the non-GAAP
financial measures.
Our non-GAAP financial information is provided as additional
information to help our investors compare business trends among
different reporting periods on a consistent basis and to enhance
investors' overall understanding of the historical and current
financial performance of our continuing operations and our
prospects for the future. Our non-GAAP financial information should
be considered in addition to results prepared in accordance with
U.S. GAAP, but should not be considered a substitute for or
superior to U.S. GAAP results. In addition, our calculation of this
non-GAAP financial information may be different from the
calculation used by other companies, and therefore comparability
may be limited.
1 Non-GAAP measures and related reconciliations to
GAAP measures are described in the accompanying sections titled
"About Non-GAAP Financial Measures" and "Reconciliations of
Non-GAAP Financial Measures to Comparable GAAP Measures" at the end
of the press release.
2 American Depositary Shares, which are traded on the
NYSE. Every two ADSs represent three Class A ordinary shares of the
Company.
3 User and market penetration data is based on data
from iResearch as of June 2014 and
June 2013.
4 360 Mobile Safe is the Company's primary mobile
security product.
5 Company data as of June
2014 and June 2013.
For investor and media inquiries, please contact:
Qihoo 360 Technology Co. Ltd.
In
China:
Tel:
+86 10-5878-1574
E-mail:
ir@360.cn
In the U.S.:
The Piacente Group, Inc.
Don Markley or Glenn Garmont
Tel: (212) 481-2050
E-mail: qihu@tpg-ir.com
|
Qihoo 360
Technology Co. Ltd.
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(U.S. dollars in
thousands, except for shares and per share data)
|
|
|
(Unaudited)
|
|
|
|
|
December
31,
|
June
30,
|
|
2013
|
2014
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
1,013,465
|
786,821
|
|
Restricted
cash
|
2,368
|
3,705
|
|
Short-term
investments
|
748
|
16,868
|
|
Accounts
receivable (net of allowance for doubtful accounts of $145 and $160
as
of December 31, 2013 and June 30, 2014,
respectively)
|
54,598
|
93,142
|
|
Prepaid
expenses and other current assets
|
83,409
|
154,591
|
|
Deferred tax
assets – current
|
3,129
|
3,804
|
|
Total current
assets
|
1,157,717
|
1,058,931
|
|
Property and
equipment, net
|
163,864
|
197,987
|
|
Land use rights,
net
|
75,698
|
73,010
|
|
Acquired intangible
assets, net
|
17,248
|
41,889
|
|
Goodwill
|
29,509
|
211,931
|
|
Long-term
investments
|
84,293
|
256,185
|
|
Other noncurrent
assets
|
39,621
|
136,561
|
|
Deferred tax assets –
noncurrent
|
946
|
975
|
|
TOTAL
ASSETS
|
1,568,896
|
1,977,469
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term loan
(including short-term loan of the consolidated
|
|
|
|
|
VIEs without recourse
to Qihoo 360 Technology Co. Ltd of
|
|
|
|
|
$1,322 and $4,514 as
of December 31, 2013 and June 30, 2014, respectively)
|
|
1,322
|
4,514
|
|
Accounts
payable (including accounts payable of the consolidated
|
|
|
|
|
VIEs without recourse
to Qihoo 360 Technology Co. Ltd. of
|
|
|
|
|
$22,856 and
$72,182 as of December 31, 2013 and June 30, 2014,
respectively)
|
25,030
|
84,398
|
|
Accrued
expenses and other current liabilities (including
accrued
|
|
|
|
|
expenses and other
current liabilities of the consolidated VIEs
|
|
|
|
|
without recourse
to Qihoo 360 Technology Co. Ltd. of
|
|
|
|
|
$77,170 and
$113,635 as of December 31, 2013 and June 30, 2014,
respectively)
|
120,935
|
219,126
|
|
Deferred
revenue-current (including deferred revenue-current of
the
|
|
|
|
|
consolidated VIEs
without recourse to Qihoo 360 Technology Co. Ltd. of
$30,717 and $63,327 as of December 31, 2013 and June 30, 2014,
respectively)
|
|
46,632
|
84,639
|
|
Income tax payable
(including income tax payable of the consolidated VIEs
without recourse to Qihoo 360 Technology Co. Ltd. of $5,546 and
$(485) as of
December 31, 2013 and June 30, 2014, respectively)
|
|
14,679
|
13,486
|
|
Total current
liabilities
|
208,598
|
406,163
|
|
Deferred tax
liabilities – noncurrent
|
2,676
|
5,701
|
|
Deferred
revenue-noncurrent (including deferred revenue-noncurrent of
the
consolidated VIEs without recourse to Qihoo 360 Technology
Co. Ltd. of $664
and $648 as of December 31, 2013 and June 30, 2014,
respectively)
|
|
3,544
|
2,847
|
|
Long-term
debt
|
|
600,000
|
600,000
|
|
|
|
|
|
TOTAL
LIABILITIES
|
814,818
|
1,014,711
|
|
EQUITY
|
|
|
|
|
Total Qihoo 360
Technology Co. Ltd. Shareholders' equity
|
736,893
|
882,261
|
|
Noncontrolling
interest
|
17,185
|
80,497
|
|
Total
equity
|
754,078
|
962,758
|
|
TOTAL LIABILITIES AND
EQUITY
|
1,568,896
|
1,977,469
|
|
|
|
|
|
|
|
|
|
Qihoo 360
Technology Co. Ltd.
|
|
Condensed
Consolidated Statements of Income
|
|
(U.S. dollars in
thousands, except for shares and per share data)
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,2013
|
March 31,
2014
|
June 30,
2014
|
|
June
30,2013
|
June 30,
2014
|
|
Revenues:
|
151,666
|
265,142
|
317,914
|
|
261,543
|
583,056
|
|
Cost of
revenues:
|
17,846
|
50,390
|
66,626
|
|
31,752
|
117,016
|
|
Subsidy
income
|
-
|
-
|
920
|
|
3
|
920
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling and
marketing
|
23,997
|
68,733
|
84,907
|
|
51,059
|
153,640
|
|
General and
administrative
|
12,918
|
21,766
|
22,511
|
|
24,813
|
44,277
|
|
Product and
development
|
60,331
|
84,643
|
100,931
|
|
110,542
|
185,574
|
|
Total operating
expenses
|
97,246
|
175,142
|
208,349
|
|
186,414
|
383,491
|
|
|
|
|
|
|
|
|
Income from
operations
|
36,574
|
39,610
|
43,859
|
|
43,380
|
83,469
|
|
Interest
income
|
1,778
|
4,920
|
4,999
|
|
3,215
|
9,919
|
|
Interest
expenses
|
-
|
(4,315)
|
(4,462)
|
|
-
|
(8,777)
|
|
Other (expense)
income
|
(79)
|
251
|
247
|
|
117
|
498
|
|
Exchange gain
(loss)
|
1,424
|
(12,289)
|
564
|
|
1,785
|
(11,725)
|
|
Impairment loss on
long-term investments
|
(1,301)
|
-
|
(1,956)
|
|
(1,301)
|
(1,956)
|
|
Gain on sales of
short-term and long-term
investments
|
-
|
27,652
|
8,445
|
|
-
|
36,097
|
|
Income before income
tax expense and loss from
equity method investments
|
38,396
|
55,829
|
51,696
|
|
47,196
|
107,525
|
|
Income tax
expense
|
(4,278)
|
(5,889)
|
(10,991)
|
|
(6,495)
|
(16,880)
|
|
Loss on equity method
investments
|
(905)
|
(2,018)
|
(3,730)
|
|
(1,926)
|
(5,748)
|
|
Net income
|
33,213
|
47,922
|
36,975
|
|
38,775
|
84,897
|
|
|
|
|
|
|
|
|
Less: Net (gain) loss
attributable to noncontrolling interest
|
(216)
|
1,199
|
2,149
|
|
(227)
|
3,348
|
|
|
|
|
|
|
|
|
Net income
attributable to Qihoo 360 Technology Co. Ltd
|
32,997
|
49,121
|
39,124
|
|
38,548
|
88,245
|
|
|
|
|
|
|
|
|
Net income per
ordinary share-basic
|
0.18
|
0.27
|
0.21
|
|
0.22
|
0.48
|
|
Net income per
ordinary share-diluted
|
0.17
|
0.25
|
0.20
|
|
0.20
|
0.45
|
|
|
|
|
|
|
|
|
Weighted average
shares used in calculating net
income per ordinary share- basic (in millions)
|
179
|
184
|
185
|
|
179
|
184
|
|
Weighted average
shares used in calculating net
income per ordinary share-diluted (in millions)
|
191
|
197
|
198
|
|
190
|
198
|
|
|
|
|
|
|
|
|
Qihoo 360
Technology Co. Ltd.
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(U.S. dollars in
thousands)
|
|
(Unaudited)
|
|
|
|
Three-months
period ended
|
|
|
June 30,
2013
|
June 30,
2014
|
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
33,213
|
36,975
|
|
Share-based
compensation
|
17,962
|
25,798
|
|
Depreciation and
amortization
|
9,694
|
19,705
|
|
Amortization of land
use right
|
422
|
427
|
|
Loss on disposal of
fixed assets
|
-
|
90
|
|
Loss on equity method
investments
|
905
|
3,730
|
|
Impairment loss on
long-term investments
|
1,301
|
1,956
|
|
Gain on sales of
short-term and long-term investments
|
-
|
(8,445)
|
|
(Gain) loss resulting
from nonoperating activities
|
(31)
|
48
|
|
Provision of
allowance for doubtful accounts
|
36
|
125
|
|
Changes in operating
assets and liabilities
|
22,870
|
(22,754)
|
|
Net cash provided
by operating activities
|
86,372
|
57,655
|
|
Cash flows from
investing activities:
|
|
|
|
Decrease
(increase) in restricted cash
|
1,625
|
(3,370)
|
|
Purchase of property
and equipment and intangible assets
|
(13,383)
|
(41,443)
|
|
Proceeds from
disposal of property and equipment and intangible assets
|
-
|
19
|
|
Payment for
short-term and long-term investments
|
(5,061)
|
(81,627)
|
|
Proceeds from sales
of short-term and long-term investments
|
-
|
31,317
|
|
Dividend proceeds
received by company
|
174
|
-
|
|
Net cash paid in
connection with business acquisition
|
(483)
|
(74,989)
|
|
Net cash used in
investing activities
|
(17,128)
|
(170,093)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Capital contribution
from noncontrolling interest
|
3
|
-
|
|
Proceeds from
exercise of share option
|
5,933
|
1,565
|
|
Payment for
short-term loans
|
-
|
(4,075)
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
5,936
|
(2,510)
|
|
|
|
|
|
|
Effect of exchange
rate changes
|
1,866
|
202
|
|
INCREASE (DECREASE)
IN CASH
|
77,046
|
(114,746)
|
|
CASH, BEGINNING OF
PERIOD
|
300,935
|
901,567
|
|
CASH, END OF
PERIOD
|
377,981
|
786,821
|
|
Reconciliations of
Non-GAAP Financial Measures to Comparable GAAP
Measures
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2013
|
|
|
Three Months Ended
March 31, 2014
|
|
Three Months Ended
June 30, 2014
|
|
|
GAAP
|
Adjustment(a)
|
Non-GAAP
|
|
GAAP
|
Adjustment(a)
|
Adjustment
(b)
|
Non-GAAP
|
|
GAAP
|
Adjustment(a)
|
Adjustment
(b)
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$97,246
|
($17,962)
|
$79,284
|
|
$175,142
|
($19,932)
|
|
$155,210
|
|
$208,349
|
($25,798)
|
|
$182,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$36,574
|
$17,962
|
$54,536
|
|
$39,610
|
$19,932
|
|
$59,542
|
|
$43,859
|
$25,798
|
|
$69,657
|
|
|
Operating
margin
|
24.1%
|
|
36.0%
|
|
14.9%
|
|
|
22.5%
|
|
13.8%
|
|
|
21.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Qihoo 360 Technology Co. Ltd.
|
$32,997
|
$17,962
|
$50,959
|
|
$49,121
|
$19,932
|
$4,279
|
$73,332
|
|
$39,124
|
$25,798
|
$4,325
|
$69,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net margin
|
21.8%
|
|
33.6%
|
|
18.5%
|
|
|
27.7%
|
|
12.3%
|
|
|
21.8%
|
|
|
Diluted earnings per
ADS
|
$0.26
|
|
$0.40
|
|
$0.37
|
|
|
$0.54
|
|
$0.30
|
|
|
$0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June
30, 2013
|
|
Six Months Ended June
30, 2014
|
|
|
GAAP
|
Adjustment(a)
|
Non-GAAP
|
|
GAAP
|
Adjustment(a)
|
Adjustment
(b)
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$186,414
|
($29,929)
|
$156,485
|
|
$383,491
|
($45,730)
|
|
$337,761
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$43,380
|
$29,929
|
$73,309
|
|
$83,469
|
$45,730
|
|
$129,199
|
|
Operating
margin
|
16.6%
|
|
28.0%
|
|
14.3%
|
|
|
22.2%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Qihoo 360 Technology Co. Ltd.
|
$38,548
|
$29,929
|
$68,477
|
|
$88,245
|
$45,730
|
$8,604
|
$142,579
|
|
Net margin
|
14.7%
|
|
26.2%
|
|
15.1%
|
|
|
24.5%
|
|
Diluted earnings per
ADS
|
$0.30
|
|
$0.54
|
|
$0.67
|
|
|
$1.04
|
|
|
|
|
|
|
|
|
|
|
(a): Adjustment to
exclude the share-based compensation expense of each
period.
|
|
|
(b): Adjustment to
exclude the interest expense of Convertible Senior Notes of each
period.
|
SOURCE Qihoo 360 Technology Co. Ltd.