BEIJING, May 20, 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 first quarter
2015.
First Quarter 2015 Highlights[1]
- Net revenues were RMB1.14 billion
(US$183.8 million), a 47% increase
from the corresponding period in 2014[2]. Non-GAAP[3] net revenues
were RMB1.06 billion (US$170.4 million) in the first quarter of 2015, a
51% increase from the corresponding period in 2014.
- Gross profit was RMB1.5 million
(US$0.2 million), as compared
to RMB132.1 million (US$21.3 million) from the corresponding period in
2014. Non-GAAP gross loss was RMB32.9
million (US$5.3 million) in
the first quarter of 2015, as compared to non-GAAP gross profit of
RMB90.4 million (US$14.6 million) from the corresponding period in
2014.
- Net loss was RMB517.4 million
(US$83.5 million), as compared to
RMB176.0 million (US$28.4 million) from the corresponding period in
2014. Non-GAAP net loss was RMB481.8
million (US$77.7 million) in
the first quarter of 2015, as compared to RMB157.1 million (US$25.3
million) from the corresponding period in 2014.
- Basic and diluted loss per ADS, each representing 18 Class A
ordinary shares of the Company, for the first quarter of 2015
amounted to RMB2.67 (US$0.43) and RMB2.67 (US$0.43),
respectively. Non-GAAP basic and diluted loss per ADS for the first
quarter of 2015 amounted to RMB2.49
(US$0.40) and RMB2.49 (US$0.40),
respectively.
- Cash, cash equivalents, restricted cash and short-term
investments totaled RMB8.52 billion
(US$1.37 billion) as of March 31, 2015.
- Acquisition of property and equipment for the first quarter of
2015 was RMB73.0 million
(US$11.8 million).
- Acquisition of licensed copyright for the first quarter of 2015
was RMB495.2 million (US$79.9 million).
"The first quarter was marked by solid progress in the three key
growth pillars that drive our business development for this year:
accelerated topline growth, revenue diversification, and
significant ramp up of web-native content. We believe this clear
growth strategy will improve our business economics going forward,"
said Victor Koo, Chairman and Chief
Executive Officer of Youku Tudou. "From a more strategic
perspective we note that multi-screen video has converged with
neighboring industries, notably the pan-entertainment and media
sectors, making us a strategic property and partner and positioning
us amidst a much bigger growth opportunity going forward."
Dele Liu, President of Youku Tudou, added, "We have aggressively
stepped up our investments in content this year across all
categories, especially in original content, PGC and UGC, to enhance
our web-based content eco-system. Leveraging synergy among our
various business units, we are working towards a more balanced and
sustainable content mix in which proprietary web-native content
will be the foremost category driving our revenue and traffic
growth over time."
First Quarter 2015 Results
Net revenues were RMB1.14
billion (US$183.8 million) in
the first quarter of 2015, a 47% increase from the corresponding
period in 2014. Non-GAAP net revenues, which is
herein defined as net revenues excluding barter sublicensing
revenues, were RMB1.06 billion
(US$170.4 million) in the first
quarter of 2015, a 51% increase from the corresponding period in
2014, exceeded the high end of the non-GAAP net revenues guidance
previously announced by the Company.
Advertising net revenues were RMB892.7 million (US$144.0
million) in the first quarter of 2015, a 43% increase from
the corresponding period in 2014, 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 service, mobile game joint operation and
interactive live entertainment, were RMB120.8 million (US$19.5
million) in the first quarter of 2015, a 706% increase from
the corresponding period in 2014. The growth was primarily
attributable to the increasing user adoption of our consumer
services as evidenced by expansion of subscriber base, growing
paying users and average spend per user of our interactive live
entertainment service, and increasing number of mobile game
distributions.
Bandwidth costs as a component of cost of revenues were
RMB306.8 million (US$49.5 million)in the first quarter of 2015,
representing 29% of non-GAAP net revenues, as compared to 29% of
non-GAAP net revenues for the corresponding period in 2014. 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
RMB669.0 million (US$107.9 million) in the first quarter of 2015,
representing 59% of net revenues as compared to 46% of net revenues
for the corresponding period in 2014. Non-GAAP content costs
were RMB620.1 million (US$100.0 million) in the first quarter of 2015,
representing 59% of non-GAAP net revenues, as compared to 46% of
non-GAAP net revenues for the corresponding period in 2014. This
increase was primarily due to expansion of our video content
portfolio to support our new business growth initiatives.
Gross profit was RMB1.5
million (US$0.2 million)in the
first quarter of 2015, as compared to RMB132.1 million (US$21.3
million) from the corresponding period in 2014. Non-GAAP
gross loss was RMB32.9 million
(US$5.3 million) in the first quarter
of 2015, as compared to non-GAAP gross profit of RMB90.4 million (US$14.6
million) from the corresponding period in 2014.
Operating expenses were RMB544.1
million (US$87.8 million) in
the first quarter of 2015, as compared to RMB312.0 million (US$50.3
million) for the corresponding period in 2014. Non-GAAP
operating expenses were RMB474.0
million (US$76.5 million) in
the first quarter of 2015, as compared to RMB251.3 million (US$40.5
million) for the corresponding period in 2014. Detailed
discussion of each component of operating expenses is as
follows:
Sales and marketing expenses were RMB320.4 million (US$51.7
million) in the first quarter of 2015, as compared to
RMB185.7 million (US$30.0 million) for the corresponding period in
2014. Non-GAAP sales and marketing expenses were
RMB286.7 million (US$46.3 million) in the first quarter of 2015, as
compared to RMB163.2 million
(US$26.3 million) for the
corresponding period in 2014. 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 RMB139.6 million (US$22.5
million) in the first quarter of 2015, as compared to
RMB80.1 million (US$12.9 million) for the corresponding period in
2014. Non-GAAP product development expenses were
RMB120.0 million (US$19.4 million) in the first quarter of 2015, as
compared to RMB62.0 million
(US$10.0 million) for the
corresponding period in 2014. This increase was primarily due to an
increase in personnel related expenses for our product development
in mobile, search, social, subscription and interactive live
entertainment services.
General and administrative expenses were RMB84.1 million (US$13.6
million) in the first quarter of 2015, as compared to
RMB46.1 million (US$7.4 million) from the corresponding period in
2014. Non-GAAP general and administrative expenses were
RMB67.3 million (US$10.9 million) in the first quarter of 2015, as
compared to RMB26.1 million
(US$4.2 million) from the
corresponding period in 2014. This increase was primarily due to
increases in the personnel related expense and professional service
fees.
Net loss was RMB517.4
million (US$83.5 million)in
the first quarter of 2015, as compared to RMB176.0 million (US$28.4
million) for the corresponding period in 2014. Non-GAAP
net loss was RMB481.8 million
(US$77.7 million) in the first
quarter of 2015, as compared to RMB157.1
million (US$25.3 million) from
the corresponding period in 2014.
Business Outlook
For the second quarter of 2015, the Company expects non-GAAP net
revenues will be between RMB1.47 billion and
RMB1.52 billion, which with advertising net revenues
contributing between RMB1.25 billion and
RMB1.30 billion. This forecast reflects the Company's
current and preliminary view, which is subject to change.
Conference Call Information
Youku Tudou's management will host an earnings conference call
at 9:00 p.m. U.S. Eastern Time on
May 20, 2015 (9:00 a.m. Beijing/Hong Kong Time on May 21, 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 42452065. The replay will be available
through May 28, 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 net revenues, 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 net revenues as net
revenues excluding barter sublicensing revenues. We define non-GAAP
content costs as content costs excluding amortization of licensed
copyrights from nonmonetary content exchanges, 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 barter sublicensing
revenues, amortization of licensed copyrights from nonmonetary
content exchanges, 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 barter
sublicensing revenues, amortization of licensed copyrights from
nonmonetary content exchanges , 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 barter sublicensing revenues,
amortization of licensed copyrights from nonmonetary content
exchanges , 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 barter
sublicensing revenues, amortization of licensed copyrights from
nonmonetary content exchanges, 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 RMB6.1990 to
US$1.00, the effective noon buying rate as of March 31, 2015 in the
City of New York for cable transfers of RMB as certified for
customs purposes by the Federal Reserve Bank of New York. No
representation is made that the RMB amounts could have been, or
could be, converted into US$ at such rate.
|
|
|
[2]
|
As noted in the
Company's annual report for fiscal year 2014 on Form 20-F (the
"2014 Annual Report"), certain adjustments were made to the
Company's historical consolidated financial statements reflecting
certain revisions to its accounting treatment for (i) licensed
copyrights and (ii) nonmonetary exchanges of licensed copyrights,
as further described in the 2014 Annual Report. Accordingly,
unaudited financial information in this release in relation to the
first and fourth quarters of 2014 has been amended, where
applicable, principally as a result of, and to reflect the
adjustment caused by such revisions of the Company's accounting
treatment.
|
|
|
[3]
|
All non-GAAP measures
exclude, as applicable, barter sublicensing revenues, amortization
of licensed copyrights from nonmonetary content exchanges,
share-based compensation expenses and amortization of intangible
assets from business combination. The Company enters into
nonmonetary exchanges of licensed copyrights, and generated
nonmonetary barter sublicensing revenues from such transactions. As
such, the company treats barter sublicensing revenues as non-GAAP
net revenues item starting the first quarter of 2015. The business
outlook guidance provided in the release of fourth quarter and
fiscal year 2014 unaudited financial reports dated March 19, 2015
was also presented on non-GAAP net revenues basis. 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,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
(Audited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
3,820,742
|
|
2,886,812
|
|
465,690
|
|
Restricted
cash
|
|
617,586
|
|
1,293,094
|
|
208,597
|
|
Short-term
investments
|
|
4,021,199
|
|
4,338,524
|
|
699,875
|
|
Accounts
receivable
|
|
1,719,760
|
|
1,931,492
|
|
311,581
|
|
Licensed
copyrights, net
|
|
220,152
|
|
241,680
|
|
38,987
|
|
Amounts due
from related parties
|
|
125,204
|
|
53,417
|
|
8,617
|
|
Deferred tax
assets, net
|
|
2,283
|
|
2,283
|
|
368
|
|
Prepayments and
other assets
|
|
117,716
|
|
321,536
|
|
51,869
|
Total current
assets
|
|
10,644,642
|
|
11,068,838
|
|
1,785,584
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
293,027
|
|
329,961
|
|
53,229
|
|
Long-term
investments
|
|
67,293
|
|
97,046
|
|
15,655
|
|
Available-for-sale financial
assets
|
|
-
|
|
21,267
|
|
3,431
|
|
Licensed
copyrights, net
|
|
505,173
|
|
626,619
|
|
101,084
|
|
Intangible
assets, net
|
|
875,502
|
|
872,397
|
|
140,732
|
|
Capitalized
content production costs
|
|
1,678
|
|
1,647
|
|
266
|
|
Prepayments and
other assets
|
|
431,377
|
|
418,053
|
|
67,439
|
|
Goodwill
|
|
4,262,569
|
|
4,262,569
|
|
687,622
|
Total
non-current assets
|
|
6,436,619
|
|
6,629,559
|
|
1,069,458
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
17,081,261
|
|
17,698,397
|
|
2,855,042
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
563,009
|
|
735,863
|
|
118,707
|
|
Advances from
customers and deferred revenue
|
|
36,232
|
|
84,264
|
|
13,593
|
|
Amounts due to
related parties
|
|
4
|
|
1
|
|
-
|
|
Accrued
expenses and other liabilities
|
|
1,668,122
|
|
1,782,215
|
|
287,502
|
|
Short-term bank
loans
|
|
500,000
|
|
1,170,253
|
|
188,781
|
Total current
liabilities
|
|
2,767,367
|
|
3,772,596
|
|
608,583
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
213,608
|
|
213,608
|
|
34,458
|
|
Other
liabilities
|
|
6,570
|
|
15,030
|
|
2,425
|
Total non-current
liabilities
|
|
220,178
|
|
228,638
|
|
36,883
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
2,987,545
|
|
4,001,234
|
|
645,466
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
Class A Ordinary
Shares (US$0.00001 par value, 9,340,238,793 authorized,
3,123,742,699 and 3,135,586,285 issued as of December 31, 2014 and
March 31, 2015, respectively, 2,834,270,299 and 2,846,113,885
outstanding as of December 31, 2014 and March 31, 2015,
respectively)
|
|
201
|
|
202
|
|
33
|
|
Class B Ordinary
Shares (US$0.00001 par value, 659,761,207 authorized, 645,691,903
and 645,691,903 issued and outstanding as of December 31,
2014 and March 31, 2015, respectively)
|
|
48
|
|
48
|
|
8
|
|
Additional paid-in
capital
|
|
18,878,497
|
|
18,962,797
|
|
3,059,009
|
|
Treasury stock (at
cost, 289,472,400 and 289,472,400
as of December 31, 2014 and March 31, 2015,
respectively)
|
|
(1,845,892)
|
|
(1,845,892)
|
|
(297,773)
|
|
Statutory
reserves
|
|
13,146
|
|
13,146
|
|
2,121
|
|
Accumulated
deficit
|
|
(2,681,658)
|
|
(3,199,099)
|
|
(516,068)
|
|
Accumulated other
comprehensive loss
|
|
(270,626)
|
|
(234,039)
|
|
(37,754)
|
Total
shareholders' equity
|
|
14,093,716
|
|
13,697,163
|
|
2,209,576
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
17,081,261
|
|
17,698,397
|
|
2,855,042
|
YOUKU TUDOU
INC.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(Amounts in
thousands, except for number of shares and ADS and per share
and per ADS data)
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited-As
revised)
|
|
(Unaudited-As
revised)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Net
revenues(including advertising net revenues from related
parties amounting to RMB110,201 and RMB48,010 for the three months
ended December 31, 2014 and March 31, 2015,
respectively)
|
|
774,685
|
|
1,282,369
|
|
1,139,458
|
|
183,814
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(Note 1)
|
|
(642,560)
|
|
(1,047,736)
|
|
(1,137,987)
|
|
(183,576)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
132,125
|
|
234,633
|
|
1,471
|
|
238
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Product
development
|
|
(80,138)
|
|
(123,271)
|
|
(139,573)
|
|
(22,515)
|
Sales and
marketing
|
|
(185,696)
|
|
(343,647)
|
|
(320,433)
|
|
(51,691)
|
General and
administrative
|
|
(46,129)
|
|
(78,721)
|
|
(84,058)
|
|
(13,560)
|
Total operating
expenses
|
|
(311,963)
|
|
(545,639)
|
|
(544,064)
|
|
(87,766)
|
|
|
|
|
|
|
|
|
|
Government grant
income
|
|
-
|
|
20,641
|
|
123
|
|
20
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(179,838)
|
|
(290,365)
|
|
(542,470)
|
|
(87,508)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
6,053
|
|
22,660
|
|
29,811
|
|
4,809
|
Interest
expenses
|
|
-
|
|
-
|
|
(10,743)
|
|
(1,733)
|
Share of net loss of
equity investee
|
|
-
|
|
(840)
|
|
(1,247)
|
|
(201)
|
Other income (loss),
net
|
|
(2,259)
|
|
(1,195)
|
|
7,352
|
|
1,186
|
Total other
income, net
|
|
3,794
|
|
20,625
|
|
25,173
|
|
4,061
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(176,044)
|
|
(269,740)
|
|
(517,297)
|
|
(83,447)
|
Income tax
expense
|
|
-
|
|
(51,815)
|
|
(144)
|
|
(23)
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(176,044)
|
|
(321,555)
|
|
(517,441)
|
|
(83,470)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income, before tax
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
20,959
|
|
(35,370)
|
|
36,587
|
|
5,902
|
Other comprehensive
(loss) income, before tax
|
|
20,959
|
|
(35,370)
|
|
36,587
|
|
5,902
|
Income tax expense
related to components of other comprehensive (loss)
income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Other
comprehensive (loss) income, net of tax
|
|
20,959
|
|
(35,370)
|
|
36,587
|
|
5,902
|
|
|
|
|
|
|
|
|
0
|
Net loss per share,
basic and diluted
|
|
(0.06)
|
|
(0.09)
|
|
(0.15)
|
|
(0.02)
|
Net loss per ADS
(each ADS represents 18 class A ordinary shares),
basic and
diluted
|
|
(1.05)
|
|
(1.66)
|
|
(2.67)
|
|
(0.43)
|
Shares used in
computation, basic and diluted
|
|
3,021,981,224
|
|
3,483,140,763
|
|
3,485,681,620
|
|
3,485,681,620
|
ADSs used in
computation, basic and diluted
|
|
167,887,845
|
|
193,507,820
|
|
193,648,978
|
|
193,648,978
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of the press release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1. Cost of
Revenues
|
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
(Amounts in
thousands)
|
|
(Unaudited-As
revised)
|
|
(Unaudited-As
revised)
|
|
(Unaudited)
|
|
(Unaudited)
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Value added,
business taxes and surcharges
|
|
62,958
|
|
115,494
|
|
98,388
|
|
15,872
|
Bandwidth
costs
|
|
201,889
|
|
272,196
|
|
306,835
|
|
49,497
|
Depreciation of
servers and other equipment
|
|
20,165
|
|
28,935
|
|
34,349
|
|
5,542
|
Interactive
broadcasting revenue sharing fees
|
|
988
|
|
20,101
|
|
24,087
|
|
3,886
|
Cost of goods
sold
|
|
-
|
|
-
|
|
5,337
|
|
862
|
Content
costs
|
|
356,560
|
|
611,010
|
|
668,991
|
|
107,917
|
Total Cost
of Revenues
|
|
642,560
|
|
1,047,736
|
|
1,137,987
|
|
183,576
|
YOUKU TUDOU
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(Amounts in
thousands)
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(Unaudited-As
revised)
|
|
(Unaudited-As
revised)
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
(176,044)
|
|
(321,555)
|
|
(517,441)
|
|
(83,470)
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities
|
|
|
|
|
|
|
|
|
|
Depreciation of fixed
assets
|
|
26,517
|
|
35,398
|
|
40,676
|
|
6,562
|
|
Bad debt
expense
|
|
(6,473)
|
|
5,616
|
|
14,800
|
|
2,387
|
|
Amortization of
licensed copyrights
|
|
206,863
|
|
404,461
|
|
450,865
|
|
72,732
|
|
Amortisation and
impairment of intangible assets and capitalized content production
costs
|
|
5,930
|
|
16,148
|
|
13,930
|
|
2,247
|
|
Barter sublicensing
revenues
|
|
(74,311)
|
|
(18,009)
|
|
(83,239)
|
|
(13,428)
|
|
Loss (gain) on
disposal of property and equipment
|
|
90
|
|
146
|
|
(47)
|
|
(8)
|
|
Foreign exchange loss
(gain)
|
|
2,164
|
|
4,262
|
|
(20,070)
|
|
(3,238)
|
|
Share-based
compensation
|
|
70,220
|
|
85,614
|
|
79,772
|
|
12,868
|
|
Deferred income tax
benefits
|
|
-
|
|
(10)
|
|
-
|
|
-
|
|
Share of net loss of
equity investee
|
|
-
|
|
840
|
|
1,247
|
|
201
|
|
Changes in operating
assets and liabilities, net of acquisition:
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
(2)
|
|
552,632
|
|
(5,507)
|
|
(888)
|
|
Accounts
receivable
|
|
179,153
|
|
(99,230)
|
|
(101,326)
|
|
(16,346)
|
|
Amounts
due from related parties
|
|
-
|
|
(53,164)
|
|
(53,417)
|
|
(8,617)
|
|
Prepayments and other assets
|
|
(10,615)
|
|
(25,241)
|
|
(103,103)
|
|
(16,632)
|
|
Capitalized content production costs
|
|
(2,972)
|
|
(22,588)
|
|
(21,974)
|
|
(3,545)
|
|
Accounts
payable
|
|
4,574
|
|
20,564
|
|
71,836
|
|
11,588
|
|
Advances
from customers and deferred revenue
|
|
1,816
|
|
10,644
|
|
36,933
|
|
5,958
|
|
Accrued
expenses and other liabilities
|
|
29,591
|
|
290,176
|
|
88,424
|
|
14,263
|
|
Amount due
to related parties
|
|
-
|
|
(114)
|
|
1
|
|
-
|
Net cash provided by
operating activities
|
|
256,501
|
|
886,590
|
|
(107,640)
|
|
(17,366)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Acquisition of
property and equipment
|
|
(28,191)
|
|
(52,172)
|
|
(72,990)
|
|
(11,774)
|
|
Purchase of
available-for-sale financial assets
|
|
-
|
|
-
|
|
(21,267)
|
|
(3,431)
|
|
Proceeds received
from maturity of short-term investments
|
|
1,132,459
|
|
265,580
|
|
-
|
|
-
|
|
Short-term
investments placed with financial institutions
|
|
(1,391,239)
|
|
(1,156,085)
|
|
(280,308)
|
|
(45,218)
|
|
Proceeds from
disposal of property and equipment
|
|
180
|
|
7
|
|
47
|
|
8
|
|
Collection of loans
to third parties
|
|
-
|
|
5,600
|
|
-
|
|
-
|
|
Loans to third
parties
|
|
-
|
|
(5,000)
|
|
(3,000)
|
|
(484)
|
|
Acquisition of shares
of investees
|
|
-
|
|
(18,133)
|
|
-
|
|
-
|
|
Acquisition of
licensed copyrights
|
|
(165,891)
|
|
(477,310)
|
|
(495,247)
|
|
(79,891)
|
|
Acquisition of
intangible assets
|
|
-
|
|
(981)
|
|
-
|
|
-
|
Net cash used in
investing activities
|
|
(452,682)
|
|
(1,438,494)
|
|
(872,765)
|
|
(140,790)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Exercise of employee
stock options
|
|
11,809
|
|
3,176
|
|
4,529
|
|
731
|
|
Increase in
restricted cash
|
|
-
|
|
(611,900)
|
|
(670,000)
|
|
(108,082)
|
|
Proceeds from
short-term bank loans
|
|
-
|
|
500,000
|
|
670,253
|
|
108,123
|
|
Repurchase of
ADS
|
|
-
|
|
(552,248)
|
|
-
|
|
-
|
|
Proceeds from Ali
investment, net of issuance costs
|
|
-
|
|
(272)
|
|
-
|
|
-
|
Net cash
provided by (used in) financing activities
|
|
11,809
|
|
(661,244)
|
|
4,782
|
|
772
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
18,795
|
|
(39,632)
|
|
41,693
|
|
6,726
|
Net (decrease)
increase in cash and cash equivalents
|
|
(165,577)
|
|
(1,252,780)
|
|
(933,930)
|
|
(150,658)
|
Cash and cash
equivalents at the beginning of the period
|
|
1,764,221
|
|
5,073,522
|
|
3,820,742
|
|
616,348
|
Cash and cash
equivalents at the end of the period
|
|
1,598,644
|
|
3,820,742
|
|
2,886,812
|
|
465,690
|
|
|
|
|
|
|
|
|
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$"), unaudited)
|
|
|
|
|
|
|
|
|
1. Non-GAAP
Net Revenues
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Net
Revenues
|
774,685
|
|
1,282,369
|
|
1,139,458
|
|
183,814
|
Deduct: barter
sublicensing revenues
|
74,311
|
|
18,009
|
|
83,239
|
|
13,428
|
Non-GAAP Net
Revenues
|
700,374
|
|
1,264,360
|
|
1,056,219
|
|
170,386
|
|
|
|
|
|
|
|
|
2. Non-GAAP
Content Costs
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Content
costs
|
356,560
|
|
611,010
|
|
668,991
|
|
107,917
|
Deduct:
amortization of licensed copyrights from nonmonetary content
exchanges
|
18,512
|
|
31,416
|
|
36,445
|
|
5,879
|
Deduct:
share-based compensation
|
12,223
|
|
13,297
|
|
12,407
|
|
2,001
|
Deduct:
amortization of intangible assets from business
combination
|
1,860
|
|
-
|
|
-
|
|
-
|
Non-GAAP content
costs
|
323,965
|
|
566,297
|
|
620,139
|
|
100,037
|
|
|
|
|
|
|
|
|
3. Non-GAAP Gross
Profit (Loss)
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Gross
profit
|
132,125
|
|
234,633
|
|
1,471
|
|
238
|
Deduct: barter
sublicensing revenues
|
74,311
|
|
18,009
|
|
83,239
|
|
13,428
|
Add back:
amortization of licensed copyrights from nonmonetary content
exchanges
|
18,512
|
|
31,416
|
|
36,445
|
|
5,879
|
Add back:
share-based compensation
|
12,223
|
|
13,297
|
|
12,407
|
|
2,001
|
Add back:
amortization of intangible assets from business
combination
|
1,860
|
|
-
|
|
-
|
|
-
|
Non-GAAP gross
profit (loss)
|
90,409
|
|
261,337
|
|
(32,916)
|
|
(5,310)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. Non-GAAP
Operating Expenses
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Operating
expenses
|
311,963
|
|
545,639
|
|
544,064
|
|
87,766
|
Deduct:
share-based compensation
|
57,997
|
|
72,317
|
|
67,365
|
|
10,867
|
Deduct:
amortization of intangible assets from business
combination
|
2,691
|
|
2,691
|
|
2,691
|
|
434
|
Non-GAAP
operating expenses
|
251,275
|
|
470,631
|
|
474,008
|
|
76,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. Non-GAAP Sales
and Marketing Expenses
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Sales and marketing
expenses
|
185,696
|
|
343,647
|
|
320,433
|
|
51,691
|
Deduct:
share-based compensation
|
21,172
|
|
31,832
|
|
32,351
|
|
5,219
|
Deduct:
amortization of intangible assets from business
combination
|
1,344
|
|
1,344
|
|
1,344
|
|
217
|
Non-GAAP
sales and marketing expenses
|
163,180
|
|
310,471
|
|
286,738
|
|
46,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Non-GAAP
Product Development Expenses
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Product development
expenses
|
80,138
|
|
123,271
|
|
139,573
|
|
22,515
|
Deduct:
share-based compensation
|
17,206
|
|
17,877
|
|
18,708
|
|
3,018
|
Deduct:
amortization of intangible assets from business
combination
|
905
|
|
905
|
|
905
|
|
146
|
Non-GAAP
product development expenses
|
62,027
|
|
104,489
|
|
119,960
|
|
19,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7. Non-GAAP
General and Administrative Expenses
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
General and
administrative expenses
|
46,129
|
|
78,721
|
|
84,058
|
|
13,560
|
Deduct:
share-based compensation
|
19,619
|
|
22,608
|
|
16,306
|
|
2,630
|
Deduct:
amortization of intangible assets from business
combination
|
442
|
|
442
|
|
442
|
|
71
|
Non-GAAP
general and administrative expenses
|
26,068
|
|
55,671
|
|
67,310
|
|
10,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8. Non-GAAP Loss
from Operations
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Loss from
operations
|
(179,838)
|
|
(290,365)
|
|
(542,470)
|
|
(87,508)
|
Deduct: barter
sublicensing revenues
|
74,311
|
|
18,009
|
|
83,239
|
|
13,428
|
Add back:
amortization of licensed copyrights from nonmonetary content
exchanges
|
18,512
|
|
31,416
|
|
36,445
|
|
5,879
|
Add back:
share-based compensation
|
70,220
|
|
85,614
|
|
79,772
|
|
12,868
|
Add back:
amortization of intangible assets from business
combination
|
4,551
|
|
2,691
|
|
2,691
|
|
434
|
Non-GAAP
loss from operations
|
(160,866)
|
|
(188,653)
|
|
(506,801)
|
|
(81,755)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9. Non-GAAP Net
Loss
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Net
loss
|
(176,044)
|
|
(321,555)
|
|
(517,441)
|
|
(83,470)
|
Deduct: barter
sublicensing revenues
|
74,311
|
|
18,009
|
|
83,239
|
|
13,428
|
Add back:
amortization of licensed copyrights from nonmonetary content
exchanges
|
18,512
|
|
31,416
|
|
36,445
|
|
5,879
|
Add back:
share-based compensation
|
70,220
|
|
85,614
|
|
79,772
|
|
12,868
|
Add back:
amortization of intangible assets from business
combination
|
4,551
|
|
2,691
|
|
2,691
|
|
434
|
Non-GAAP net
loss
|
(157,072)
|
|
(219,843)
|
|
(481,772)
|
|
(77,717)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10. Non-GAAP
adjusted EBITDA Loss
|
For the Three
Months Ended
|
|
|
|
|
|
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2015
|
|
March 31,
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Net
loss
|
(176,044)
|
|
(321,555)
|
|
(517,441)
|
|
(83,470)
|
Add
back:
|
|
|
|
|
|
|
|
Depreciation
and amortization (excluding amortization
|
|
|
|
|
|
|
|
of acquired content )
(2)
|
26,527
|
|
35,408
|
|
40,686
|
|
6,563
|
Interest
income
|
(6,053)
|
|
(22,660)
|
|
(29,811)
|
|
(4,809)
|
Interest
expenses
|
-
|
|
-
|
|
10,743
|
|
1,733
|
Income
taxes
|
-
|
|
51,815
|
|
144
|
|
23
|
EBITDA
loss
|
(155,570)
|
|
(256,992)
|
|
(495,679)
|
|
(79,960)
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Barter
sublicensing revenues
|
(74,311)
|
|
(18,009)
|
|
(83,239)
|
|
(13,428)
|
Amortization of
licensed copyrights from nonmonetary content exchanges
|
18,512
|
|
31,416
|
|
36,445
|
|
5,879
|
Share-based
compensation
|
70,220
|
|
85,614
|
|
79,772
|
|
12,868
|
Amortization of
intangible assets from business combination
|
4,551
|
|
2,691
|
|
2,691
|
|
434
|
Others,
net
|
2,259
|
|
1,195
|
|
(7,352)
|
|
(1,186)
|
Non-GAAP adjusted
EBITDA loss
|
(134,339)
|
|
(154,085)
|
|
(467,362)
|
|
(75,393)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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-first-quarter-2015-unaudited-financial-results-300086686.html
SOURCE Youku Tudou Inc.