BEIJING, March 19, 2015 /PRNewswire/ -- Youku Tudou Inc.
(NYSE: YOKU), China's leading
Internet television company ("Youku Tudou" or the "Company"), today
announced its unaudited financial results for the fourth quarter
and fiscal year ended December 31,
2014.
Fourth Quarter 2014
Highlights[1]
- Net revenues were RMB1.26 billion
(US$203.8 million), a 40% increase
from the corresponding period in 2013.
- Gross profit was RMB240.0 million
(US$38.7 million), as compared to
RMB254.3 million (US$41.0 million) from the corresponding period in
2013. Non-GAAP[2] gross profit was RMB253.3
million (US$40.8 million) in
the fourth quarter of 2014, as compared to RMB268.3 million (US$43.2
million) from the corresponding period in 2013.
- Net loss was RMB318.1 million
(US$51.3 million), as compared to
RMB24.6 million (US$4.0 million) from the corresponding period in
2013. Non-GAAP net loss was RMB228.8
million (US$36.9 million) in
the fourth quarter of 2014, as compared to non-GAAP net profit of
RMB44.2 million (US$7.1 million) from the corresponding period in
2013.
- Basic and diluted loss per ADS, each representing 18 Class A
ordinary shares of the Company, for the fourth quarter of 2014
amounted to RMB1.64 (US$0.26) and RMB1.64 (US$0.26),
respectively. Non-GAAP basic and diluted loss per ADS for the
fourth quarter of 2014 amounted to RMB1.18 (US$0.19)
and RMB1.18 (US$0.19), respectively.
- Cash, cash equivalents, restricted cash and short-term
investments totaled RMB8.5 billion
(US$1.4 billion) as of December 31, 2014.
- Acquisition of property and equipment for the fourth quarter of
2014 was RMB52.2 million
(US$8.4 million).
- Acquisition of intangible assets for the fourth quarter of 2014
was RMB478.3 million (US$77.1 million).
Fiscal Year 2014 Highlights
- Net revenues were RMB4.0 billion
(US$649.5 million), a 33% increase
from 2013.
- Gross profit was RMB781.0 million
(US$125.9 million), a 44% increase
from 2013. Non-GAAP gross profit was RMB838.0 million (US$135.1
million), a 39% increase from 2013.
- Net loss was RMB888.6 million
(US$143.2 million), as compared to
RMB580.7 million (US$93.6 million) in 2013. Non-GAAP net loss was
RMB555.7 million (US$89.6 million), as compared to RMB342.1 million (US$55.1
million) in 2013.
- Basic and diluted loss per ADS, each representing 18 Class A
ordinary shares, for 2014 amounted to RMB4.71 (US$0.76)
and RMB4.71 (US$0.76), respectively, as compared to
RMB3.50 (US$0.56) and RMB3.50 (US$0.56),
respectively, for 2013.
- Acquisition of property and equipment in 2014 was RMB206.6 million (US$33.3
million), as compared to RMB144.1
million (US$23.2 million) in
2013.
- Acquisition of intangible assets in 2014 was RMB1.2 billion (US$199.0
million), as compared to RMB740.6
million (US$119.4 million) in
2013.
"With our large and growing multi-screen video user base
underpinning our innovation efforts and growth strategy, we began
to diversify and improve the monetization of our leading brand,
traffic and content offerings in addition to advertising. As a
result, consumer revenues achieved outstanding 473%
year-on-year growth in 2014," said Victor Koo, Chairman and Chief Executive Officer
of Youku Tudou. "We have put in place a multi-business unit and
content center structure, supported by new hires that add
complementary skill-sets to our talent pool, creating an agile and
innovation-driven organization. For 2015, we expect to see further
growth of our platform as we continue to invest to strengthen our
leadership in China's online video
industry."
Dele Liu, President of Youku Tudou, added, "We continued to make
solid progress in original content and PGC. As our in-house
production business scaled, content marketing solutions also gained
strong momentum and achieved 178% year-on-year revenue growth in
2014. Our long-term goal is to build a content eco-system in which
over half of the revenue and video traffic is derived from our
web-native content, i.e. original content, PGC, and UGC."
Fourth Quarter 2014 Results
Net revenues were RMB1.26
billion (US$203.8 million) in
the fourth quarter of 2014, a 40% increase from the corresponding
period in 2013, exceeded the high end of the net revenues guidance
previously announced by the Company.
Advertising net revenues were RMB1.10 billion (US$177.1
million) in the fourth quarter of 2014, a 37% increase from
the corresponding period in 2013, exceeded the high end of the
advertising net revenues guidance previously announced by the
Company. The growth was primarily attributable to the increased use
by brand advertisers of our advertising services as evidenced by an
increase in the number of advertisers and the rising average spend
per advertiser.
Consumer revenues, which are mainly derived from our
subscription-based and pay-per-view services, were RMB69.7 million (US$11.2
million) in the fourth quarter of 2014, a 649% increase from
the corresponding period in 2013. The growth was primarily
attributable to the expansion of our subscriber base and
pay-per-view orders.
Bandwidth costs as a component of cost of revenues were
RMB272.2 million (US$43.9 million)in the fourth quarter of 2014,
representing 22% of net revenues, as compared to 20% of net
revenues for the corresponding period in 2013. This increase was
primarily attributable to the increase in traffic and higher
resolution quality of our video content.
Content costs as a component of cost of revenues were
RMB602.9 million (US$97.2 million) in the fourth quarter of
2014, representing 48% of net revenues as compared to 39% of net
revenues for the corresponding period in 2013. Non-GAAP content
costs were RMB589.6 million
(US$95.0 million) in the fourth
quarter of 2014, representing 47% of net revenues, as compared to
38% of net revenues for the corresponding period in 2013. This
increase was primarily due to expansion of our video content
portfolio to support our new business growth initiatives.
Gross profit was RMB240.0
million (US$38.7 million)in
the fourth quarter of 2014, as compared to RMB254.3 million (US$41.0
million) from the corresponding period in 2013. Non-GAAP
gross profit was RMB253.3 million
(US$40.8 million) in the fourth
quarter of 2014, as compared to RMB268.3
million (US$43.2 million) from
the corresponding period in 2013.
Operating expenses were RMB547.9
million (US$88.3 million) in
the fourth quarter of 2014, as compared to RMB333.4 million (US$53.7
million) for the corresponding period in 2013. Non-GAAP
operating expenses were RMB471.8
million (US$76.0 million) in
the fourth quarter of 2014, as compared to RMB278.5 million (US$44.9
million) for the corresponding period in 2013. Detailed
discussion of each component of operating expenses is as
follows:
Sales and marketing expenses were RMB344.5 million (US$55.5
million) in the fourth quarter of 2014, as compared to
RMB216.4 million (US$34.9 million) for the corresponding period in
2013. Non-GAAP sales and marketing expenses were
RMB310.8 million (US$50.1 million) in the fourth quarter of 2014,
as compared to RMB195.8 million
(US$31.6 million) for the
corresponding period in 2013. This increase was primarily due to
increases in marketing expenses and commission expenses paid to our
sales force in line with our revenue growth.
Product development expenses were RMB123.9 million (US$20.0
million) in the fourth quarter of 2014, as compared to
RMB76.5 million (US$12.3 million) for the corresponding period in
2013. Non-GAAP product development expenses were
RMB104.7 million (US$16.9 million) in the fourth quarter of 2014,
as compared to RMB61.3 million
(US$9.9 million) for the
corresponding period in 2013. This increase was primarily due to an
increase in personnel related expenses for our product development
in mobile, search, social, paid and live broadcasting services.
General and administrative expenses were RMB79.5 million (US$12.8
million) in the fourth quarter of 2014, as compared to
RMB40.4 million (US$6.5 million) from the corresponding period in
2013. Non-GAAP general and administrative expenses were
RMB56.3 million (US$9.1 million) in the fourth quarter of 2014, as
compared to RMB21.4 million
(US$3.4 million) from the
corresponding period in 2013. This increase was primarily due to
the recognition of tax benefit in the fourth quarter of 2013.
Net loss was RMB318.1
million (US$51.3 million)in
the fourth quarter of 2014, as compared to RMB24.6 million (US$4.0
million) for the corresponding period in 2013. Non-GAAP
net loss was RMB228.8 million
(US$36.9 million) in the fourth
quarter of 2014, as compared to non-GAAP net profit RMB44.2 million (US$7.1
million) from the corresponding period in 2013.
Non-GAAP adjusted EBITDA loss was RMB177.7 million (US$28.6
million) in the fourth quarter of 2014, as compared to
non-GAAP adjusted EBITDA profit of RMB36.8
million (US$5.9 million) from
the corresponding period in 2013.
Fiscal Year 2014 Results
Net revenues were RMB4.0
billion (US$649.5 million) in
2014, a 33% increase from 2013.
Advertising net revenues were RMB3.6 billion (US$583.8
million) in 2014, a 34% increase from 2013.
Consumer revenues were RMB151.6
million (US$24.4 million) in
2014, a 473% increase from 2013.
Bandwidth costs as a component of cost of revenues were
RMB917.3 million (US$147.8 million) in 2014, representing 23% of
net revenues, as compared to 23% of net revenues in 2013.
Content costs as a component of cost of revenues were
RMB1.8 billion (US$298.0 million) in 2014, representing 46%
of net revenues, as compared to 47% of net revenues in 2013.
Non-GAAP content costs were RMB1.8
billion (US$288.8 million) in
2014, representing 44% of net revenues, as compared to 45% of net
revenues in 2013.
Gross profit was RMB781.0
million (US$125.9 million) in
2014. Non-GAAP gross profit was RMB838.0 million (US$135.1
million) in 2014, a 39% increase from 2013.
Operating expenses were RMB1.7
billion (US$274.1 million) in
2014, as compared to RMB1.2 billion
(US$193.4 million) in 2013.
Non-GAAP operating expenses were RMB1.4 billion (US$229.6
million) in 2014, as compared to RMB1.0 billion (US$161.2
million) in 2013. Detailed discussion of each component of
operating expenses is as follows:
Sales and marketing expenses were RMB1.0 billion (US$166.2
million) in 2014, as compared to RMB681.0 million (US$109.8
million) in 2013. Non-GAAP sales and marketing
expenses were RMB923.3 million
(US$148.8 million) in 2014, as
compared to RMB619.0 million
(US$99.8 million) in 2013.
Product development expenses were RMB416.1 million (US$67.1
million) in 2014, as compared to RMB278.0 million (US$44.8
million) in 2013. Non-GAAP product development
expenses were RMB339.4 million
(US$54.7 million) in 2014, as
compared to RMB232.0 (US$37.4 million) in 2013.
General and administrative expenses were RMB253.8 million (US$40.9
million) in 2014, decreased 3% from 2013. Non-GAAP
general and administrative expenses were RMB162.1 million (US$26.1
million) in 2014, decreased 15% from 2013.
Net loss was RMB888.6
million (US$143.2 million) in
2014, as compared to RMB580.7 million
(US$93.6 million) in 2013.
Non-GAAP net loss was RMB555.7
million (US$89.6 million) in
2014, as compared to RMB342.1 million
(US$55.1 million) in 2013.
Non-GAAP adjusted EBITDA loss was RMB439.7 million (US$70.9
million) in 2014, as compared to RMB309.5 million (US$49.9
million) in 2013.
Business Outlook
For the first quarter of 2015, the Company expects net revenues
will be between RMB1.01 billion and RMB1.03
billion, with advertising net revenues contributing between
RMB870 million and RMB890 million.
This forecast reflects the Company's current and preliminary view,
which is subject to change.
Recent Development
As a result of the routine review by the Securities and Exchange
Commission (the "Commission") of the Company's annual report on
Form 20-F for the fiscal year ended December
31, 2013 ("2013 20-F"), the Company received, and responded
to, comments and queries from the staff of the Commission regarding
certain accounting treatment adopted by the Company in its
historical financial statements. The financial information for all
periods presented in this release is prepared on the same basis as
the financial statements included in the Company's annual reports
and public disclosure documents since its initial public offering,
and has not been revised to reflect adjustments, if any, that may
result from the resolution of the comments and queries from the
staff of the Commission (the "Staff").
The substance of the Staff's comments and the accounting
implications with respect to these comments is summarized
below:
1. Revenue recognition for multi-element arrangements –
As disclosed in the Company's 2013 20-F, the Company's advertising
arrangements generally contain multiple deliverables, and revenue
is recognized at commencement of delivery of the last deliverable
in a typical advertising arrangement, as revenue is considered
contingent upon the delivery of undelivered items and the Company's
right to receive consideration from the customer for delivered
items is dependent on the successful delivery of the remaining
undelivered items. The Staff has inquired as to the appropriateness
of the Company's accounting policy for deferring revenue
recognition until the commencement of delivery of the last
deliverable and the Company's underlying analysis. The Company has
responded to the Staff's comments and continues to believe that its
current accounting policy is appropriate and conservative. To date,
the Staff has not indicated it would take a different view as to
the Company's current accounting. The Company undertakes to expand
its disclosure regarding revenue recognition in future filings on
Form 20-F in response to the Staff's comments.
2. Accounting for nonmonetary exchanges of licensed content
(known as "barter transaction") – As disclosed in the Company's
2013 20-F, the Company enters into nonmonetary transactions to
exchange online broadcasting rights of video content with other
online video broadcasting companies from time to time. The Company
records these nonmonetary exchanges at the carrying values of the
broadcasting rights given up, which is nil, with no resulting gain
or loss being recognized. The Staff was of the view that the
Company should have accounted for these barter transactions at fair
value, rather than at carrying value.
While the volume of these barter transactions has not been
significant historically, the adoption of fair value accounting for
these nonmonetary exchanges may result in net gains or losses on
the barter exchange, as well as addition or reduction of
amortization expense related to content that is swapped from these
transactions, all of which were not previously reflected in the
Company's historical financial statements.
3. Application of ASC 920, Entertainment – Broadcasters ("ASC
920") – The Company currently accounts for its licensed content
similar to long-lived assets, as described in its 2013 20-F. The
Staff has inquired whether the Company is within the scope of
incremental industry accounting guidance of broadcasters as set
forth in ASC 920, the key provisions of which relate to the
accounting and presentation of programming materials ("licensed
content").
The Company agrees that fundamentally, similar to a traditional
broadcaster, its business as an Internet television company is
dependent on the acquisition and use of content to drive viewership
and monetization of that content through advertising placements.
The Company understands that the Staff shares the view that the
Company is a broadcaster and should account for its licensed
content pursuant to ASC 920. This would result in differences as to
how the Company's licensed content would be presented on its
balance sheet and the methodology in which the Company evaluates
recoverability of its licensed content.
The Company is currently evaluating the impact to its 2014 and
historical financial statements that may result from the resolution
of the issues summarized above. Upon conclusion of the review and
assessment process, the Company undertakes to reflect all necessary
adjustments based on the appropriate accounting treatment in the
Company's annual report on Form 20-F for the fiscal year ended
December 31, 2014 (the "2014 Form
20-F") and/or a report on Form 6-K to be furnished to the
Commission, as appropriate. Accordingly, the financial information
presented herein is subject to change. The Company currently
expects to resolve the Staff's comments and file its 2014 Form 20-F
by the end of April 2015.
Conference Call Information
Youku Tudou's management will host an earnings conference call
at 9:00 p.m. U.S. Eastern Time on
March 19, 2015 (9:00 a.m. Beijing/Hong Kong Time on March 20, 2015).
Interested parties may participate in the conference call by
dialing one of the following numbers below and entering passcode
Youku# (i.e., 96858#) starting 10-15 minutes prior to the beginning
of the call.
US Toll Free Dial
In:
|
+1-866-519-4004
|
International Dial
In:
|
+65-6723-9381
|
Mainland China Dial
In:
|
+86-800-819-0121 /
+86-400-620-8038
|
Hong Kong Dial
In:
|
+852-3018-6771
|
A replay of the call will be available by dialing +61 2 8199
0299 and entering passcode 3674494. The replay will be available
through March 26, 2015.
This call will be webcast live and the replay will be available
for 12 months. Both will be available on the Investor Relations
section of Youku Tudou's corporate website at
http://ir.youku.com.
About Youku Tudou Inc.
Youku Tudou Inc. (NYSE: YOKU) is China's leading Internet television company.
Its Youku and Tudou Internet television platforms enable users to
search, view and share high-quality video content quickly and
easily across multiple devices. Its Youku brand and Tudou brand are
among the most recognized online video brands in China. Youku Tudou's American depositary
shares, each representing 18 of Youku Tudou's Class A ordinary
shares, are traded on the NYSE under the symbol
"YOKU."
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Youku Tudou's strategic and operational
plans, contain forward-looking statements. Youku Tudou may also
make written or oral forward-looking statements in its filings with
the U.S. Securities and Exchange Commission ("SEC"), 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 Youku Tudou's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: our goals and strategies; our future
business development, financial condition and results of
operations; the expected growth of the online video market in
China; our expectations regarding
demand for and market acceptance of our services; our expectations
regarding the retention and strengthening of our relationships with
key advertisers and customers; our plans to enhance user
experience, infrastructure and service offerings; competition in
our industry in China; and
relevant government policies and regulations relating to our
industry. Further information regarding these and other risks is
included in our annual report on Form 20-F and other documents
filed with the SEC. All information provided in this press release
and in the attachments is as of the date of this press release, and
Youku Tudou does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
About Non-GAAP Financial Measures
To supplement Youku Tudou's financial results presented in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Youku Tudou uses the following measures
defined as non-GAAP financial measures by the SEC in evaluating its
business: non-GAAP content costs, non-GAAP gross profit,
non-GAAP operating expenses, non-GAAP sales and marketing expenses,
non-GAAP product development expenses, non-GAAP general and
administrative expenses, non-GAAP profit or loss from operations
and non-GAAP net profit or loss and non-GAAP adjusted
EBITDA profit or loss. We define non-GAAP content costs as content
costs excluding share-based compensation expenses and amortization
of intangible assets from business combination in relation to user
generated content. We define non-GAAP gross profit or loss as the
respective nearest comparable GAAP financial measure to exclude
share-based compensation expenses and amortization of intangible
assets from business combination in relation to user generated
content. We define non-GAAP operating expenses as operating
expenses excluding share-based compensation expenses, business
combination related expenses and amortization of intangible assets
from business combination in relation to customer relationship,
technology and non-compete provisions. We define non-GAAP sales and
marketing expenses as sales and marketing expenses excluding
share-based compensation expenses and amortization of intangible
assets from business combination in relation to customer
relationship. We define non-GAAP product development expense as
product development expenses excluding share-based compensation
expenses and amortization of intangible assets from business
combination in relation to technology. We define non-GAAP general
and administrative expenses as general and administrative expenses
excluding share-based compensation expenses, business combination
related expenses and amortization of intangible assets from
business combination in relation to non-compete provisions. We
define non-GAAP profit or loss from operations as profit or loss
from operations excluding share-based compensation expenses,
amortization of intangible assets from business combination and
business combination related expenses. We define non-GAAP net
profit or loss as net loss excluding share-based compensation
expenses, amortization of intangible assets from business
combination and business combination related expenses. We define
non-GAAP adjusted EBITDA profit or loss as net profit or loss
before income taxes, interest expenses, interest income,
depreciation and amortization (excluding amortization of acquired
content), further adjusted for share-based compensation expenses,
amortization of intangible assets from business combination,
business combination related expenses and other non-operating
items.
We present non-GAAP financial measures because they are used by
our management to evaluate our operating performance. We also
believe that these non-GAAP financial measures provide useful
information to investors and others in understanding and evaluating
our results of operations in the same manner as our management and
in comparing financial results across accounting periods and to
those of our peer companies. A limitation of using non-GAAP
financial measures is that non-GAAP measures exclude share-based
compensation charges that have been and will continue to be
significant recurring expenses in Youku Tudou's business for the
foreseeable future.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from, or as a substitute
for, the financial information prepared and presented in accordance
with GAAP. For more information on these non-GAAP financial
measures, please see the table captioned "Reconciliations of
non-GAAP results of operations measures to the nearest comparable
GAAP financial measures" at the end of this release.
For more information, please contact:
Chang You
Youku Tudou Inc.
Tel: (+8610) 5885-1881 x 8066
Email: changyou@youku.com
[1]
|
The reporting
currency of the Company is Renminbi ("RMB"), but for the
convenience of the reader, the amounts presented throughout the
release are in US dollars ("US$"). Unless otherwise noted, all
conversions from RMB to US$ are made at a rate of RMB6.2046 to
US$1.00, the effective noon buying rate as of December 31, 2014 in
the City of New York for cable transfers of RMB as certified for
customs purposes by the Federal Reserve Bank of New York. No
representation is made that the RMB amounts could have been, or
could be, converted into US$ at such rate.
|
|
|
[2]
|
All non-GAAP measures
exclude, as applicable, share-based compensation expenses and
amortization of intangible assets from business combination. For
further details on non-GAAP measures, please refer to the
reconciliation table and a detailed discussion of the Company's use
of non-GAAP information set forth elsewhere in this press
release.
|
YOUKU TUDOU
INC.
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands, except for number of shares)
|
|
|
As of
|
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
1,764,221
|
|
3,820,742
|
|
615,792
|
|
Restricted
cash
|
|
|
2,679
|
|
617,586
|
|
99,537
|
|
Short-term
investments
|
|
|
1,409,439
|
|
4,021,199
|
|
648,100
|
|
Accounts
receivable, net
|
|
|
1,370,031
|
|
1,719,760
|
|
277,175
|
|
Intangible
assets, net
|
|
|
51,942
|
|
165,839
|
|
26,728
|
|
Amounts due
from related party
|
|
|
-
|
|
125,204
|
|
20,179
|
|
Deferred tax
assets
|
|
|
7,843
|
|
3,023
|
|
487
|
|
Prepayments and
other assets
|
|
|
82,300
|
|
90,254
|
|
14,546
|
Total current
assets
|
|
|
4,688,455
|
|
10,563,607
|
|
1,702,544
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
222,229
|
|
307,425
|
|
49,548
|
|
Long-term
investments
|
|
|
-
|
|
67,293
|
|
10,846
|
|
Intangible
assets, net
|
|
|
1,197,671
|
|
1,396,902
|
|
225,140
|
|
Capitalized
content production costs
|
|
|
1,176
|
|
1,678
|
|
270
|
|
Prepayments and
other assets
|
|
|
197,856
|
|
429,597
|
|
69,238
|
|
Goodwill
|
|
|
4,262,569
|
|
4,262,569
|
|
687,001
|
Total
non-current assets
|
|
|
5,881,501
|
|
6,465,464
|
|
1,042,043
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
10,569,956
|
|
17,029,071
|
|
2,744,587
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
213,825
|
|
563,009
|
|
90,741
|
|
Advances from
customers
|
|
|
25,081
|
|
36,095
|
|
5,817
|
|
Amounts due to
related party
|
|
|
-
|
|
4
|
|
1
|
|
Accrued
expenses and other liabilities
|
|
|
1,124,342
|
|
1,668,122
|
|
268,853
|
|
Short-term bank
loan
|
|
|
-
|
|
500,000
|
|
80,585
|
Total current
liabilities
|
|
|
1,363,248
|
|
2,767,230
|
|
445,997
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
Deferred tax
liability
|
|
|
219,519
|
|
214,348
|
|
34,547
|
|
Other
liabilities
|
|
|
4,070
|
|
6,570
|
|
1,059
|
Total non-current
liabilities
|
|
|
223,589
|
|
220,918
|
|
35,606
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
1,586,837
|
|
2,988,148
|
|
481,603
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Class A Ordinary
Shares (US$0.00001 par value, 9,340,238,793
authorized, 2,356,529,401 and 3,123,742,699 issued as of
December
31, 2013 and December 31, 2014, respectively, 2,356,529,401
and
2,834,270,299 outstanding as of December 31, 2013 and
December
31, 2014, respectively)
|
|
|
154
|
|
201
|
|
32
|
|
Class B Ordinary
Shares (US$0.00001 par value, 659,761,207 authorized, 659,561,893
and 645,691,903 issued and outstanding as of December 31,
2013 and December 31, 2014, respectively)
|
|
|
49
|
|
48
|
|
8
|
|
Additional
paid-in capital
|
|
|
11,058,360
|
|
18,878,497
|
|
3,042,661
|
|
Treasury stock
(at cost, nil and 289,472,400
as of December 31, 2013 and December 31, 2014,
respectively)
|
|
|
-
|
|
(1,845,892)
|
|
(297,504)
|
|
Statutory
reserves
|
|
|
2,063
|
|
13,146
|
|
2,119
|
|
Accumulated
deficit
|
|
|
(1,878,454)
|
|
(2,778,182)
|
|
(447,763)
|
|
Accumulated
other comprehensive loss
|
|
|
(199,053)
|
|
(226,895)
|
|
(36,569)
|
Total
shareholders' equity
|
|
|
8,983,119
|
|
14,040,923
|
|
2,262,984
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
10,569,956
|
|
17,029,071
|
|
2,744,587
|
YOUKU TUDOU
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
(Amounts in
thousands, except for number of shares and ADS and per share
and per
ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
(including advertising net revenues from related party amounting to
RMB69,763 and RMB110,201 for the three months ended September 30,
2014 and December 31, 2014, respectively, and RMB206,702 for the
year ended December 31, 2014 )
|
|
|
901,287
|
|
1,106,641
|
|
1,264,360
|
|
203,778
|
|
3,028,484
|
|
4,030,094
|
|
649,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(Note 1)
|
|
|
(646,938)
|
|
(859,774)
|
|
(1,024,396)
|
|
(165,103)
|
|
(2,487,421)
|
|
(3,249,085)
|
|
(523,657)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
254,349
|
|
246,867
|
|
239,964
|
|
38,675
|
|
541,063
|
|
781,009
|
|
125,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
development
|
|
|
(76,514)
|
|
(112,434)
|
|
(123,861)
|
|
(19,963)
|
|
(278,015)
|
|
(416,111)
|
|
(67,065)
|
Sales and
marketing
|
|
|
(216,444)
|
|
(287,038)
|
|
(344,493)
|
|
(55,522)
|
|
(681,008)
|
|
(1,030,899)
|
|
(166,150)
|
General and
administrative
|
|
|
(40,393)
|
|
(53,009)
|
|
(79,528)
|
|
(12,818)
|
|
(261,770)
|
|
(253,817)
|
|
(40,908)
|
Total operating
expenses
|
|
|
(333,351)
|
|
(452,481)
|
|
(547,882)
|
|
(88,303)
|
|
(1,220,793)
|
|
(1,700,827)
|
|
(274,123)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(79,002)
|
|
(205,614)
|
|
(307,918)
|
|
(49,628)
|
|
(679,730)
|
|
(919,818)
|
|
(148,247)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
8,419
|
|
22,694
|
|
22,660
|
|
3,652
|
|
29,972
|
|
61,330
|
|
9,884
|
Interest
expenses
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(545)
|
|
-
|
|
-
|
Share of net loss of
equity investee
|
|
|
-
|
|
-
|
|
(840)
|
|
(135)
|
|
-
|
|
(840)
|
|
(135)
|
Other, net
|
|
|
46,878
|
|
1,542
|
|
19,445
|
|
3,134
|
|
70,573
|
|
22,169
|
|
3,573
|
Total other
income, net
|
|
|
55,297
|
|
24,236
|
|
41,265
|
|
6,651
|
|
100,000
|
|
82,659
|
|
13,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(23,705)
|
|
(181,378)
|
|
(266,653)
|
|
(42,977)
|
|
(579,730)
|
|
(837,159)
|
|
(134,925)
|
Income
taxes
|
|
|
(876)
|
|
-
|
|
(51,474)
|
|
(8,296)
|
|
(1,014)
|
|
(51,486)
|
|
(8,298)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
(24,581)
|
|
(181,378)
|
|
(318,127)
|
|
(51,273)
|
|
(580,744)
|
|
(888,645)
|
|
(143,223)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income, before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
(33,201)
|
|
214
|
|
(35,370)
|
|
(5,701)
|
|
(83,171)
|
|
(27,842)
|
|
(4,487)
|
Other comprehensive
(loss) income, before tax
|
|
|
(33,201)
|
|
214
|
|
(35,370)
|
|
(5,701)
|
|
(83,171)
|
|
(27,842)
|
|
(4,487)
|
Income tax expense
related to components of other comprehensive (loss)
income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive (loss) income, net of tax
|
|
|
(33,201)
|
|
214
|
|
(35,370)
|
|
(5,701)
|
|
(83,171)
|
|
(27,842)
|
|
(4,487)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
|
|
(0.01)
|
|
(0.05)
|
|
(0.09)
|
|
(0.01)
|
|
(0.19)
|
|
(0.26)
|
|
(0.04)
|
Net loss per ADS
(each ADS represents 18 class A ordinary shares),
basic and
diluted
|
|
|
(0.15)
|
|
(0.88)
|
|
(1.64)
|
|
(0.26)
|
|
(3.50)
|
|
(4.71)
|
|
(0.76)
|
Shares used in
computation, basic and diluted
|
|
|
3,010,627,513
|
|
3,724,534,275
|
|
3,483,140,763
|
|
3,483,140,763
|
|
2,986,223,088
|
|
3,398,404,551
|
|
3,398,404,551
|
ADSs used in
computation, basic and diluted
|
|
|
167,257,084
|
|
206,918,571
|
|
193,507,820
|
|
193,507,820
|
|
165,901,282
|
|
188,800,252
|
|
188,800,252
|
The accompanying
notes are an integral part of the press release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1. Cost of
Revenues
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
(Amounts in
thousands)
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value added,
business taxes and surcharges
|
|
|
77,758
|
|
97,760
|
|
115,494
|
|
18,614
|
|
276,497
|
|
365,762
|
|
58,950
|
Bandwidth
costs
|
|
|
178,824
|
|
229,714
|
|
272,196
|
|
43,870
|
|
685,650
|
|
917,337
|
|
147,848
|
Depreciation of
servers and other equipment
|
|
|
36,686
|
|
30,472
|
|
33,762
|
|
5,442
|
|
102,367
|
|
117,296
|
|
18,904
|
Content
costs
|
|
|
353,670
|
|
501,828
|
|
602,944
|
|
97,177
|
|
1,422,907
|
|
1,848,690
|
|
297,955
|
Total Cost
of Revenues
|
|
|
646,938
|
|
859,774
|
|
1,024,396
|
|
165,103
|
|
2,487,421
|
|
3,249,085
|
|
523,657
|
YOUKU TUDOU
INC.
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
(24,581)
|
|
(181,378)
|
|
(318,127)
|
|
(51,273)
|
|
(580,744)
|
|
(888,645)
|
|
(143,223)
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
impairment of fixed assets
|
|
|
|
26,459
|
|
38,054
|
|
41,653
|
|
6,713
|
|
111,098
|
|
147,918
|
|
23,840
|
|
Bad debt
expense
|
|
|
|
25,547
|
|
(12,546)
|
|
5,616
|
|
905
|
|
62,603
|
|
(8,156)
|
|
(1,315)
|
|
Amortisation and
impairment of intangible assets and capitalized content production
costs
|
|
|
|
145,451
|
|
306,460
|
|
393,256
|
|
63,381
|
|
788,299
|
|
1,111,054
|
|
179,069
|
|
Impairment of
long-lived assets
|
|
|
|
96,071
|
|
-
|
|
-
|
|
-
|
|
96,071
|
|
-
|
|
-
|
|
Amortization of
long-term debt discounts
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
313
|
|
-
|
|
-
|
|
Loss on disposal
of property and equipment
|
|
|
|
(353)
|
|
10
|
|
146
|
|
24
|
|
485
|
|
374
|
|
60
|
|
Foreign exchange loss
(gain)
|
|
|
|
(15,336)
|
|
(58)
|
|
4,262
|
|
687
|
|
(13,318)
|
|
7,214
|
|
1,163
|
|
Share-based
compensation
|
|
|
|
53,061
|
|
72,372
|
|
85,614
|
|
13,798
|
|
188,358
|
|
310,337
|
|
50,017
|
|
Deferred income tax
benefits
|
|
|
|
(313)
|
|
-
|
|
(350)
|
|
(56)
|
|
(313)
|
|
(350)
|
|
(56)
|
|
Share of net loss of
equity investee
|
|
|
|
-
|
|
-
|
|
840
|
|
135
|
|
-
|
|
840
|
|
135
|
|
Gain from
de-recognition of off-market liabilities
|
|
|
|
(16,540)
|
|
-
|
|
-
|
|
-
|
|
(16,540)
|
|
-
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
|
(1,129)
|
|
(555,636)
|
|
(59,268)
|
|
(9,552)
|
|
6,324
|
|
(614,907)
|
|
(99,105)
|
|
Accounts
receivable
|
|
|
|
(10,312)
|
|
(171,241)
|
|
(99,230)
|
|
(15,993)
|
|
(499,838)
|
|
(335,374)
|
|
(54,052)
|
|
Amounts
due from related party
|
|
|
|
-
|
|
(9,420)
|
|
(53,164)
|
|
(8,568)
|
|
-
|
|
(125,204)
|
|
(20,179)
|
|
Prepayments and other assets
|
|
|
|
(58,751)
|
|
21,958
|
|
(25,241)
|
|
(4,068)
|
|
1,441
|
|
(35,018)
|
|
(5,644)
|
|
Capitalized content production costs
|
|
|
|
22,687
|
|
(17,511)
|
|
(22,588)
|
|
(3,641)
|
|
(6,738)
|
|
(49,442)
|
|
(7,969)
|
|
Accounts
payable
|
|
|
|
(15,572)
|
|
17,079
|
|
20,564
|
|
3,314
|
|
(13,555)
|
|
50,848
|
|
8,195
|
|
Advances
from customers
|
|
|
|
(40,717)
|
|
1,783
|
|
10,644
|
|
1,716
|
|
3,478
|
|
11,014
|
|
1,775
|
|
Accrued
expenses and other liabilities
|
|
|
|
21,518
|
|
236,276
|
|
290,177
|
|
46,770
|
|
142,059
|
|
539,778
|
|
86,997
|
|
Amounts
due to related party
|
|
|
|
-
|
|
48
|
|
(114)
|
|
(18)
|
|
-
|
|
4
|
|
1
|
Net cash (used in)
provided by operating activities
|
|
|
|
207,190
|
|
(253,750)
|
|
274,690
|
|
44,274
|
|
269,483
|
|
122,285
|
|
19,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
property and equipment
|
|
|
|
(14,955)
|
|
(41,295)
|
|
(52,172)
|
|
(8,409)
|
|
(144,120)
|
|
(206,626)
|
|
(33,302)
|
|
Proceeds received
from maturity of short-term investments
|
|
|
|
1,018,628
|
|
1,363,276
|
|
265,580
|
|
42,804
|
|
2,989,628
|
|
2,827,352
|
|
455,686
|
|
Short-term
investments placed with financial institutions
|
|
|
|
-
|
|
(2,859,798)
|
|
(1,156,085)
|
|
(186,327)
|
|
(2,283,410)
|
|
(5,411,820)
|
|
(872,227)
|
|
Proceeds from
disposal of property and equipment
|
|
|
|
(824)
|
|
88
|
|
7
|
|
1
|
|
458
|
|
285
|
|
46
|
|
Cash acquired, net of
cash paid for acquired subsidiaries
|
|
|
|
(6,999)
|
|
-
|
|
-
|
|
-
|
|
(6,999)
|
|
-
|
|
-
|
|
Cash receipts from
returns on loans of other entities
|
|
|
|
-
|
|
-
|
|
5,600
|
|
903
|
|
-
|
|
5,600
|
|
903
|
|
Cash payments on
loans of other entities
|
|
|
|
-
|
|
-
|
|
(5,000)
|
|
(806)
|
|
-
|
|
(5,000)
|
|
(806)
|
|
Acquisition of shares
of investees
|
|
|
|
-
|
|
(50,000)
|
|
(18,133)
|
|
(2,923)
|
|
-
|
|
(68,133)
|
|
(10,981)
|
|
Acquisition of
intangible assets
|
|
|
|
(227,540)
|
|
(344,142)
|
|
(478,291)
|
|
(77,087)
|
|
(740,581)
|
|
(1,234,644)
|
|
(198,988)
|
Net cash used in
investing activities
|
|
|
|
768,310
|
|
(1,931,871)
|
|
(1,438,494)
|
|
(231,844)
|
|
(185,024)
|
|
(4,092,986)
|
|
(659,669)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of employee
stock options
|
|
|
|
9,084
|
|
6,086
|
|
3,176
|
|
512
|
|
101,435
|
|
28,426
|
|
4,581
|
|
Principal repayments
on long-term debt
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7,677)
|
|
-
|
|
-
|
|
Proceeds from
short-term bank loan
|
|
|
|
-
|
|
-
|
|
500,000
|
|
80,585
|
|
-
|
|
500,000
|
|
80,585
|
|
Repurchase of
ADSs
|
|
|
|
-
|
|
(1,293,644)
|
|
(552,248)
|
|
(89,006)
|
|
-
|
|
(1,845,892)
|
|
(297,504)
|
|
Proceeds from Ali
investment, net of issuance costs
|
|
|
|
-
|
|
(7,504)
|
|
(272)
|
|
(44)
|
|
-
|
|
7,379,744
|
|
1,189,399
|
|
Payment of
convertible redeemable preferred shares issuance costs
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Net cash
provided by (used in) financing activities
|
|
|
|
9,084
|
|
(1,295,062)
|
|
(49,344)
|
|
(7,953)
|
|
93,758
|
|
6,062,278
|
|
977,061
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
|
(17,865)
|
|
272
|
|
(39,632)
|
|
(6,388)
|
|
(69,853)
|
|
(35,056)
|
|
(5,650)
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
|
966,719
|
|
(3,480,411)
|
|
(1,252,780)
|
|
(201,911)
|
|
108,364
|
|
2,056,521
|
|
331,451
|
Cash and cash
equivalents at the beginning of the period
|
|
|
|
797,502
|
|
8,553,933
|
|
5,073,522
|
|
817,703
|
|
1,655,857
|
|
1,764,221
|
|
284,341
|
Cash and cash
equivalents at the end of the period
|
|
|
|
1,764,221
|
|
5,073,522
|
|
3,820,742
|
|
615,792
|
|
1,764,221
|
|
3,820,742
|
|
615,792
|
Reconciliations of
Non-GAAP results of operations measures to the nearest comparable
GAAP financial measures (1)(Amounts in thousands of
Renminbi ("RMB") and U.S. dollars ("US$"), unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Non-GAAP
Content Costs
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Content
costs
|
|
|
353,670
|
|
501,828
|
|
602,944
|
|
97,177
|
|
1,422,907
|
|
1,848,690
|
|
297,955
|
Deduct:
share-based compensation
|
|
|
7,846
|
|
11,077
|
|
13,297
|
|
2,143
|
|
32,110
|
|
49,291
|
|
7,944
|
Deduct:
amortization of intangible assets from business
combination
|
|
|
6,100
|
|
2,557
|
|
-
|
|
-
|
|
28,156
|
|
7,671
|
|
1,236
|
Non-GAAP content
costs
|
|
|
339,724
|
|
488,194
|
|
589,647
|
|
95,034
|
|
1,362,641
|
|
1,791,728
|
|
288,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. Non-GAAP Gross
Profit
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Gross
profit
|
|
|
254,349
|
|
246,867
|
|
239,964
|
|
38,675
|
|
541,063
|
|
781,009
|
|
125,876
|
Add back:
share-based compensation
|
|
|
7,846
|
|
11,077
|
|
13,297
|
|
2,143
|
|
32,110
|
|
49,291
|
|
7,944
|
Add back:
amortization of intangible assets from business
combination
|
|
6,100
|
|
2,557
|
|
-
|
|
-
|
|
28,156
|
|
7,671
|
|
1,236
|
Non-GAAP gross
profit
|
|
|
268,295
|
|
260,501
|
|
253,261
|
|
40,818
|
|
601,329
|
|
837,971
|
|
135,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. Non-GAAP
Operating Expenses
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Operating
expenses
|
|
|
333,351
|
|
452,481
|
|
547,882
|
|
88,303
|
|
1,220,793
|
|
1,700,827
|
|
274,123
|
Deduct:
share-based compensation
|
|
|
45,215
|
|
61,295
|
|
72,317
|
|
11,655
|
|
156,248
|
|
261,046
|
|
42,073
|
Deduct:
amortization of intangible assets from business
combination
|
|
|
9,623
|
|
3,743
|
|
3,743
|
|
604
|
|
22,088
|
|
14,972
|
|
2,412
|
Non-GAAP
operating expenses
|
|
|
278,513
|
|
387,443
|
|
471,822
|
|
76,044
|
|
1,042,457
|
|
1,424,809
|
|
229,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. Non-GAAP Sales
and Marketing Expenses
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Sales and marketing
expenses
|
|
|
216,444
|
|
287,038
|
|
344,493
|
|
55,522
|
|
681,008
|
|
1,030,899
|
|
166,150
|
Deduct:
share-based compensation
|
|
|
15,577
|
|
22,256
|
|
31,832
|
|
5,130
|
|
50,712
|
|
100,084
|
|
16,131
|
Deduct:
amortization of intangible assets from business
combination
|
|
|
5,077
|
|
1,871
|
|
1,871
|
|
302
|
|
11,308
|
|
7,484
|
|
1,205
|
Non-GAAP
sales and marketing expenses
|
|
|
195,790
|
|
262,911
|
|
310,790
|
|
50,090
|
|
618,988
|
|
923,331
|
|
148,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. Non-GAAP
Product Development Expenses
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Product development
expenses
|
|
|
76,514
|
|
112,434
|
|
123,861
|
|
19,963
|
|
278,015
|
|
416,111
|
|
67,065
|
Deduct:
share-based compensation
|
|
|
11,795
|
|
17,624
|
|
17,877
|
|
2,881
|
|
38,400
|
|
71,713
|
|
11,558
|
Deduct:
amortization of intangible assets from business
combination
|
|
|
3,411
|
|
1,257
|
|
1,257
|
|
203
|
|
7,596
|
|
5,028
|
|
810
|
Non-GAAP
product development expenses
|
|
|
61,308
|
|
93,553
|
|
104,727
|
|
16,879
|
|
232,019
|
|
339,370
|
|
54,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Non-GAAP
General and Administrative Expenses
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
General and
administrative expenses
|
|
|
40,393
|
|
53,009
|
|
79,528
|
|
12,818
|
|
261,770
|
|
253,817
|
|
40,908
|
Deduct:
share-based compensation
|
|
|
17,843
|
|
21,415
|
|
22,608
|
|
3,644
|
|
67,136
|
|
89,249
|
|
14,384
|
Deduct:
amortization of intangible assets from business
combination
|
|
|
1,135
|
|
615
|
|
615
|
|
99
|
|
3,184
|
|
2,460
|
|
397
|
Non-GAAP
general and administrative expenses
|
|
|
21,415
|
|
30,979
|
|
56,305
|
|
9,075
|
|
191,450
|
|
162,108
|
|
26,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7. Non-GAAP Loss
from Operations
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Loss from
operations
|
|
|
(79,002)
|
|
(205,614)
|
|
(307,918)
|
|
(49,628)
|
|
(679,730)
|
|
(919,818)
|
|
(148,247)
|
Add back:
share-based compensation
|
|
|
53,061
|
|
72,372
|
|
85,614
|
|
13,798
|
|
188,358
|
|
310,337
|
|
50,017
|
Add back:
amortization of intangible assets from business
combination
|
|
15,723
|
|
6,300
|
|
3,743
|
|
604
|
|
50,244
|
|
22,643
|
|
3,648
|
Non-GAAP
loss from operations
|
|
|
(10,218)
|
|
(126,942)
|
|
(218,561)
|
|
(35,226)
|
|
(441,128)
|
|
(586,838)
|
|
(94,582)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8. Non-GAAP Net
Loss
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net
loss
|
|
|
(24,581)
|
|
(181,378)
|
|
(318,127)
|
|
(51,273)
|
|
(580,744)
|
|
(888,645)
|
|
(143,223)
|
Add back:
share-based compensation
|
|
|
53,061
|
|
72,372
|
|
85,614
|
|
13,798
|
|
188,358
|
|
310,337
|
|
50,017
|
Add back:
amortization of intangible assets from business
combination
|
|
15,723
|
|
6,300
|
|
3,743
|
|
604
|
|
50,244
|
|
22,643
|
|
3,648
|
Non-GAAP net
loss
|
|
|
44,203
|
|
(102,706)
|
|
(228,770)
|
|
(36,871)
|
|
(342,142)
|
|
(555,665)
|
|
(89,558)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9. Non-GAAP
adjusted EBITDA Loss
|
|
|
For the Three
Months Ended
|
|
For the Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
September 30,
2014
|
|
December 31,
2014
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2014
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net
loss
|
|
|
(24,581)
|
|
(181,378)
|
|
(318,127)
|
|
(51,273)
|
|
(580,744)
|
|
(888,645)
|
|
(143,223)
|
Add
back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization (excluding amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of acquired content )
(2)
|
|
|
46,986
|
|
38,068
|
|
41,667
|
|
6,716
|
|
131,668
|
|
147,973
|
|
23,849
|
Interest
income
|
|
|
(8,419)
|
|
(22,694)
|
|
(22,660)
|
|
(3,652)
|
|
(29,972)
|
|
(61,330)
|
|
(9,884)
|
Interest
expenses
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
545
|
|
-
|
|
-
|
Income
taxes
|
|
|
876
|
|
-
|
|
51,474
|
|
8,296
|
|
1,014
|
|
51,486
|
|
8,298
|
EBITDA
loss
|
|
|
14,862
|
|
(166,004)
|
|
(247,646)
|
|
(39,913)
|
|
(477,489)
|
|
(750,516)
|
|
(120,960)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
53,061
|
|
72,372
|
|
85,614
|
|
13,798
|
|
188,358
|
|
310,337
|
|
50,017
|
Amortization of
intangible assets from business combination
|
|
|
15,723
|
|
6,300
|
|
3,743
|
|
604
|
|
50,244
|
|
22,643
|
|
3,648
|
Others,
net
|
|
|
(46,878)
|
|
(1,542)
|
|
(19,445)
|
|
(3,134)
|
|
(70,573)
|
|
(22,169)
|
|
(3,573)
|
Non-GAAP adjusted
EBITDA loss
|
|
|
36,768
|
|
(88,874)
|
|
(177,734)
|
|
(28,645)
|
|
(309,460)
|
|
(439,705)
|
|
(70,868)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For more information on
the Non-GAAP financial measures, please see the section captioned
"About Non-GAAP Financial Measures" in this earnings
release.
|
|
|
|
|
|
|
(2)
The amortization expense was related to an advertising license
acquired in April 2010. The amortization of acquired content was
not treated as a Non-GAAP adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/youku-tudou-announces-fourth-quarter-and-fiscal-year-2014-unaudited-financial-results-300053341.html
SOURCE Youku Tudou Inc.