BEIJING, Aug. 17, 2016 /PRNewswire/ -- 58.com Inc. (NYSE:
WUBA) ("58.com" or the "Company"), China's largest online market place serving
local merchants and consumers, today reported its unaudited
financial results for the second quarter ended June 30, 2016.
Second Quarter 2016 Financial Highlights
- Total revenues were US$297.8
million, an 86.7% increase from the same quarter last year,
in line with the Company's guidance of US$296.0 million to US$303.0 million.
- Gross margin was 91.8%, compared with 93.7% in the same quarter
of 2015.
- Income from operations was US$35.5
million, compared with loss from operations of US$35.8 million in the same quarter of 2015.
- Non-GAAP income from operations1 was US$55.3 million, compared with non-GAAP loss from
operations of US$30.3 million in the
same quarter of 2015.
- Net income attributable to 58.com Inc. was US$13.9 million, compared with net loss
attributable to 58.com Inc. of US$26.9
million in the same quarter of 2015.
- Non-GAAP net income attributable to 58.com Inc.2 was
US$21.7 million, compared with
non-GAAP net loss attributable to 58.com Inc. of US$20.8 million in the same quarter of 2015.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were US$0.10. One ADS
represents two Class A ordinary shares.
- Non-GAAP basic and diluted earnings per ADS3
attributable to ordinary shareholders were US$0.15.
1 Non-GAAP
income/(loss) from operations is defined as income/(loss) from
operations excluding (i) share-based compensation expenses and (ii)
amortization of intangible assets resulting from business
acquisitions.
|
2 Non-GAAP
net income/(loss) attributable to 58.com Inc. is defined as net
income/(loss) attributable to 58.com Inc. excluding (i) share-based
compensation expenses of the group, net of the amount allocated to
noncontrolling interests, (ii) amortization of intangible assets
resulting from business acquisitions, (iii) loss resulting from the
revaluation of previously held interest in Ganji, (iv) share-based
compensation expenses included in the equity pick-up of net loss of
58 Home and Ganji, (v) gain on deconsolidation and disposal of
businesses, net of income tax expense, (vi) compensation to
noncontrolling shareholders resulting from waiver of receivables
from 58 Home and (vii) loss on conversion of Guazi Convertible
Note.
|
3 Non-GAAP
basic and diluted earnings/(losses) per ADS is defined as non-GAAP
net income/(loss) attributable to 58.com Inc. divided by weighted
average number of basic and diluted ADS.
|
First Half 2016 Financial Highlights
- Total revenues were US$529.1
million, a 114.5% increase from the same period last
year.
- Gross margin was 90.8%, compared with 93.5% during the same
period of last year.
- Loss from operations was US$15.6
million, compared with loss from operations of US$93.7 million during the same period of last
year.
- Non-GAAP income from operations was US$22.5 million, compared with non-GAAP loss from
operations of US$83.4 million during
the same period of last year.
- Net loss attributable to 58.com Inc. was US$68.2 million, compared with net loss
attributable to 58.com Inc. of US$79.3
million during the same period of last year.
- Non-GAAP net loss attributable to 58.com Inc. was US$29.2 million, compared with non-GAAP net loss
attributable to 58.com Inc. of US$68.7
million during the same period of last year.
- Basic and diluted losses per ADS attributable to ordinary
shareholders were US$0.48. One ADS
represents two Class A ordinary shares.
- Non-GAAP basic and diluted losses per ADS attributable to
ordinary shareholders were US$0.20.
Management Comments
"I am pleased to report another quarter of strong financial
results," commented Mr. Michael Yao,
Chairman and Chief Executive Officer of 58.com. "With Ganji and
Anjuke now fully consolidated following years of intense
competition, we regained profitability for the first time since the
fourth quarter of 2014. Ganji's integration continues to make solid
progress as we find new and meaningful ways to create synergies
between the two businesses. Despite the slowdown in China's economy, we continue to see overall
growth in user and merchant numbers as well as revenues. We believe
there is still significant room for growth as businesses shift from
offline to online, whether it be consumers searching for
information or merchants using the internet to market their
services and attract potential customers. Our ability to innovate
new products and efficiently connect consumers and merchants is as
strong as ever. We are particularly excited about the potential our
platforms have to create greater value for our users and
shareholders."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "Total
revenues and paying customer numbers continued to hit new record
highs during the quarter. Revenues continue to grow faster than
costs demonstrating the scalability of our business. Our operating
and net margins also continue to expand as does our cash flow. Just
as we were able to generate profit in 2013, our operating margin
expansion this year again reflects our ability to deliver profits
once revenue growth exceeds the increase in expenses."
Second Quarter 2016 Financial Results
58.com's financial results for the second quarter of 2016
include results from Anjuke and Ganji, which have been consolidated
into the Company's financials since March and August 2015, respectively.
Revenues
Total revenues were US$297.8
million, representing an increase of 86.7%
from US$159.5 million in the same quarter of 2015. The
increase in total revenues was primarily driven by the addition of
revenues from Ganji and Anjuke as well as the organic growth of the
58.com platform.
Membership revenues were US$115.1
million, an increase of 75.8% from US$65.5 million in the same quarter of 2015. The
increase in membership revenues was primarily driven by an increase
in the number of paying membership accounts. The number of paying
membership accounts on the 58.com platform during the second
quarter of 2016 was approximately 1,170,000, an increase of 49.2%
from 784,000 in the same quarter of 2015. In addition, Ganji and
Anjuke together had approximately 804,000 paying membership
accounts in the second quarter of 2016. Paying membership accounts
refer to the merchants who have purchased the Company's
subscription-based membership services and whose membership
subscriptions are active at any point during a given period. It is
important to note that some paying members purchase membership
services from more than one platform of the Company, which
contributes separately to the revenues of each platform.
Online marketing services revenues were US$172.2 million, an increase of 93.0% from
US$89.2 million in the same quarter
of 2015. The increase was primarily driven by increased revenues
from Ganji and Anjuke, as well as the organic growth of the 58.com
platform. Online marketing services revenues generated from the
58.com platform continued to grow and were primarily driven by the
effectiveness of real time bidding services and increased
traffic.
Cost of Revenues
Cost of revenues was US$24.4
million, an increase of 141.9% from US$10.1 million during the same quarter of 2015.
The increase was primarily driven by costs associated with the
addition of Ganji and Anjuke as well as the organic growth of
58.com platform. The year-over-year increase in the 58.com
platform's cost of revenues was primarily driven by increased
Traffic Acquisition Costs ("TAC") paid to 58.com platform's
advertising union partners as well as other types of website
maintenance-related costs such as Short Message Service ("SMS")
costs, bandwidth fees and depreciation expenses.
Gross Profit and Gross Margin
Gross profit was US$273.4 million,
an increase of 83.0% from US$149.4
million during the same quarter of 2015.
Gross margin was 91.8%, compared with 93.7% during the same
quarter of 2015. The decrease in gross margin was primarily driven
by the increase in TAC paid to 58.com's advertising union
partners.
Operating Expenses
Operating expenses were US$238.0
million, representing an increase of 28.4% from US$185.3 million in the same quarter of 2015. The
increase was primarily a result of increased operating expenses
associated with the consolidation of Ganji's and Anjuke's
financials. Operating expenses associated with 58.com's core
classified business also grew rapidly to support increased traffic
and revenues. Operating expenses no longer include expenses from
the 58 Home business, which was deconsolidated in November 2015.
Sales and marketing expenses in the second quarter of 2016 were
US$175.2 million, an increase of
29.8% from US$135.1 million in the
same quarter in 2015.
Within sales and marketing expenses, advertising expenses
accounted for US$64.3 million and
US$46.4 million during the second
quarter of 2016 and 2015, respectively. The increase primarily
resulted from the consolidation of Ganji's and Anjuke's
financials.
Other sales and marketing expenses in the second quarter of 2016
were US$110.9 million, an increase of
25.1% from US$88.7 million in the
same quarter in 2015. Other sales and marketing expenses
mainly include compensation, benefits and commissions of sales,
customer services and marketing teams as well as office overhead
associated with these teams. The increase was driven by the
consolidation of Ganji's and Anjuke's financials and the organic
growth in 58.com's businesses.
Research and development expenses during the second quarter of
2016 were US$39.3 million, an
increase of 58.5% year-over-year from US$24.8 million in the same quarter of 2015. The
increase was driven by an increase in research and development
expenses associated with the 58.com platform, as well as those from
the Ganji and Anjuke platforms. The increase associated with the
58.com platform was primarily due to increased costs associated
with the hiring of additional research and development personnel
for the development of new features and services.
General and administrative expenses in the second quarter of
2016 were US$23.4 million, a decrease
from US$25.4 million in the same
quarter of 2015. The decrease was a result of the US$14.9 million expenses incurred in connection
with the strategic investment in Ganji during the second quarter of
2015, which was partially offset by an increase in other general
and administrative expenses during the second quarter of 2016.
Income/(Loss) from Operations
Income from operations was US$35.5
million in the second quarter of 2016, compared with loss
from operations of US$35.8 million in
the same quarter of 2015. Operating margin, defined as
income/(loss) from operations divided by total revenues, was
positive 11.9% in the second quarter of 2016, compared with
negative 22.5% in the same quarter of 2015.
Non-GAAP income from operations1 was US$55.3 million in the second quarter of 2016,
compared with non-GAAP loss from operations of US$30.3 million in the same quarter of 2015.
Non-GAAP operating margin, defined as non-GAAP income/(loss) from
operations divided by total revenues, was positive 18.6% in the
second quarter of 2016, compared with negative 19.0% in the same
quarter of 2015.
Other Income/(Expenses)
Other expenses in the second quarter of 2016 were US$19.2 million, compared with other expenses of
US$1.1 million in the same quarter of
2015. Other expenses in the second quarter of 2016 mainly included
a US$31.8 million pick-up of the net
loss attributable to 58 Home's ordinary shareholders that was
calculated based on the Company's common shareholding of 87.9% in
58 Home, and was included in investment loss, net in the
consolidated statements of operations. This investment loss was
partially offset by a non-cash gain of US$12.1 million on the disposal of Mayi, which
formed a very small part of 58.com's business and was swapped for
equity in the merged Tujia-Mayi entity.
Net
Income/(Loss)
attributable to 58.com Inc.
Net income attributable to 58.com Inc. was US$13.9 million
in the second quarter of 2016, compared with net loss attributable
to 58.com Inc. of US$26.9 million in
the same quarter of 2015. Net margin, defined as net income/(loss)
attributable to 58.com Inc. divided by total revenues, was positive
4.7% in the second quarter of 2016, compared with negative 16.9% in
the same quarter of 2015.
Non-GAAP net income attributable to 58.com Inc.2 was
US$21.7 million in the second quarter
of 2016, compared with non-GAAP net loss attributable to 58.com
Inc. of US$20.8 million in the same
quarter of 2015. Non-GAAP net margin, defined as non-GAAP
income/(loss) attributable to 58.com Inc. divided by total
revenues, was positive 7.3% in the second quarter of 2016, compared
with negative 13.1% in the same quarter of 2015.
Basic and Diluted Earnings/(Losses) per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in the second quarter of 2016 were US$0.10, compared with basic and diluted losses
per ADS attributable to ordinary shareholders of US$0.24 in the same quarter of 2015.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders3 in the second quarter of 2016
were US$0.15, compared with basic and
diluted losses per ADS attributable to ordinary shareholders of
US$0.19 in the same quarter of
2015.
Cash Flow
Net cash provided by operating activities was US$51.4 million in the second quarter of 2016,
compared with net cash provided by operating activities of
US$7.9 million in the same quarter of
2015.
First Half 2016 Financial Results
Revenues
Total revenues were US$529.1
million in the first half of 2016, representing an increase
of 114.5% from US$246.6 million during the same period of
2015.
Membership revenues were US$207.5
million in the first half of 2016, an increase of 92.8% from
US$107.6 million during the same
period of 2015. The increase was primarily driven by the increase
in the number of paying membership accounts. The average quarterly
paying membership accounts on the 58.com platform during the first
half of 2016 was approximately 1,102,000, an increase of 51.8% from
726,000 in the same period of 2015. In addition, Ganji and Anjuke
together had approximately 794,000 average quarterly paying
membership accounts during the first half of 2016. Paying
membership accounts refer to the merchants who have purchased the
Company's subscription-based membership services and whose
membership subscriptions are active at any point during a given
period. It is important to note that some paying members purchase
membership services from more than one platform of the Company,
which contributes separately to the revenues of these
platforms.
Online marketing services revenues were US$301.9 million in the first half of 2016, an
increase of 126.1% from US$133.5
million during the same period of 2015. The increase was
primarily driven by increased revenues from Anjuke and the
acquisition of Ganji, as well as organic growth of the 58.com
platform. Online marketing services revenues generated from the
58.com platform continued to grow and were primarily driven by the
effectiveness of real time bidding services and increased traffic.
Cost of Revenues
Cost of revenues was US$48.8
million in the first half of 2016, an increase of 203.5%
from US$16.1 million during the same
period of 2015. The increase was primarily driven by increased
costs associated with the addition of Ganji and Anjuke as well as
the organic growth of the 58.com platform. The year-over-year
increase in the 58.com platform's cost of revenues was primarily
driven by increased TAC paid to the 58.com platform's advertising
union partners as well as other types of website
maintenance-related costs such as SMS costs, bandwidth fees and
depreciation expenses.
Gross Profit and Gross Margin
Gross profit was US$480.3 million
in the first half of 2016, an increase of 108.3% from US$230.5 million during the same period of
2015.
Gross margin was 90.8% in the first half of 2016, compared with
93.5% during the same period of 2015.
Operating Expenses
Operating expenses were US$496.0
million, representing an increase of 53.0% from US$324.2 million during the same period of
2015.
Sales and marketing expenses in the first half of 2016 were
US$377.1 million, an increase of
51.3% from US$249.2 million during
the same period in 2015.
Within sales and marketing expenses, advertising expenses
accounted for US$169.1 million and
US$108.2 million during the first
half of 2016 and 2015, respectively. The increase primarily
resulted from the consolidation of Ganji's and Anjuke's
financials.
Other sales and marketing expenses in the first half of 2016
were US$208.0 million, an increase of
47.5% from US$141.0 million during
the same period last year. Other sales and marketing expenses
mainly include compensation, benefits and commissions of sales,
customer services and marketing teams as well as office overhead
associated with these teams. The increase was driven by the
consolidation of Ganji's and Anjuke's financials and the organic
growth in 58.com's businesses.
Research and development expenses during the first half of 2016
were US$74.9 million, an increase of
82.5% year-over-year from US$41.0
million during the same period of 2015. The increase was
driven by an increase in research and development expenses
associated with the 58.com platform, as well as those from the
Ganji and Anjuke platforms. The increase associated with the 58.com
platform was primarily due to increased costs associated with the
hiring of additional research and development personnel for the
development of new features and services.
General and administrative expenses in the first half of 2016
were US$44.0 million, an increase of
29.7% from US$34.0 million during the
same period of 2015. The increase primarily resulted from the
consolidation of Ganji's and Anjuke's financials.
Income/(Loss) from Operations
Loss from operations was US$15.6
million in the first half of 2016, compared with loss from
operations of US$93.7 million during
the same period of 2015. Operating margin was negative 3.0% in the
first half of 2016, compared with negative 38.0% during the same
period of 2015.
Non-GAAP income from operations was US$22.5 million in the first half of 2016,
compared with non-GAAP loss from operations of US$83.4 million during the same period of 2015.
Non-GAAP operating margin was positive 4.2% in the first half of
2016, compared with negative 33.8% during the same period of
2015.
Other Income/(Expenses)
Other expense in the first half of 2016 was US$52.5 million, compared with other income of
US$3.4 million during the same period
of 2015. Other expenses in the first half of 2016 mainly included a
US$52.9 million pick-up of the net
loss attributable to 58 Home's ordinary shareholders that was
calculated based on the Company's common shareholding of 87.9% in
58 Home, and a US$12.9 million
non-cash loss on the Company's conversion of Guazi Convertible
Notes into Guazi Series B-1 preference shares when Guazi completed
its Series B financing in March 2016,
which were partially offset by a non-cash gain of US$12.1 million on the disposal of Mayi.
Net Loss attributable to
58.com Inc.
Net loss attributable to 58.com Inc. was US$68.2 million in
the first half of 2016, compared with net loss attributable to
58.com Inc. of US$79.3 million during
the same period of 2015. Net margin was negative 12.9% in the first
half of 2016, compared with negative 32.1% during the same period
of 2015.
Non-GAAP net loss attributable to 58.com Inc.2 was
US$29.2 million in the first half of
2016, compared with non-GAAP net loss attributable to 58.com Inc.
of US$68.7 million during the same
period of 2015. Non-GAAP net margin was negative 5.6% in the first
half of 2016, compared with negative 27.8% during the same period
of 2015.
Basic and Diluted Earnings/(Losses) per ADS
Basic and diluted losses per ADS attributable to ordinary
shareholders in the first half of 2016 were US$0.48, compared with basic and diluted losses
per ADS attributable to ordinary shareholders of US$0.79 during the same period of 2015.
Non-GAAP basic and diluted losses per ADS attributable to
ordinary shareholders3 in the first half of 2016 were
US$0.20, compared with basic and
diluted losses per ADS attributable to ordinary shareholders of
US$0.69 during the same period of
2015.
Cash Flow
Net cash provided by operating activities was US$74.1 million in the first half of 2016,
compared with net cash provided by operating activities of
US$6.1 million in the same period of
2015.
Cash and Cash Equivalents, Term Deposits and Short-term
Investments
As of June 30, 2016, the Company
had cash and cash equivalents, term deposits and short-term
investments of US$315.0 million.
Shares Outstanding
As of June 30, 2016, the Company
had a total of 288,251,935 ordinary shares (including 232,511,675
Class A and 55,740,260 Class B ordinary shares) issued and
outstanding. One ADS is equal to two ordinary shares.
Business Outlook
Based on the Company's current operations, total revenues for
the third quarter of 2016 are expected to be between
RMB2,030 million and RMB2,080
million, or US$304 million and US$311
million assuming an exchange rate of RMB6.68 to US$1.00,
the average exchange rate in July
2016. This represents a year-over-year increase of 52%
to 56% in RMB. These estimates reflect the Company's current and
preliminary view, which is subject to change.
Non-GAAP Financial
Measures
To supplement the financial measures prepared in accordance with
generally accepted accounting principles in the United States, or GAAP, this press release
presents non-GAAP income/(loss) from operations, non-GAAP operating
margin, non-GAAP net income/(loss) attributable to 58.com Inc.,
non-GAAP net margin and non-GAAP basic and diluted
earnings/(losses) per share and per ADS by excluding (i)
share-based compensation expenses of the group, net of the amount
allocated to noncontrolling interests, (ii) amortization of
intangible assets resulting from business acquisitions, (iii) loss
resulted from revaluation of previously held interest in Ganji,
(iv) share-based compensation expenses included in the equity
pick-up of net loss of 58 Home and Ganji, (v) gain on
deconsolidation and disposal of businesses, net of income tax
expense, (vi) compensation to noncontrolling shareholders resulting
from waiver of receivables from 58 Home and (vii) loss on
conversion of Guazi Convertible Note. The Company believes these
non-GAAP financial measures are important to help investors
understand the Company's operating and financial performance,
compare business trends among different reporting periods on a
consistent basis and assess the Company's core operating results,
as they exclude certain expenses that are not expected to result in
cash payments. The use of the above non-GAAP financial
measures has certain limitations. Share-based compensation
expenses, amortization of intangible assets resulting from business
acquisitions and their impact on share-based compensation
attributable to noncontrolling interests have been and will
continue to be incurred in the future and are not reflected in the
presentation of the non-GAAP financial measures, but should be
considered in the overall evaluation of the Company's results. The
Company compensates for these limitations by providing the relevant
disclosure of its (i) share-based compensation expenses of the
group, net of the amount allocated to noncontrolling interests,
(ii) amortization of intangible assets resulting from business
acquisitions, (iii) loss resulting from the revaluation of
previously held interest in Ganji, (iv) share-based compensation
expenses included in the equity pick-up of net loss of 58 Home and
Ganji, (v) gain on deconsolidation and disposal of businesses, net
of income tax expense, (vi) compensation to noncontrolling
shareholders resulting from waiver of receivables from 58 Home and
(vii) loss on conversion of Guazi Convertible Note, all of which
should be considered when evaluating the Company's performance.
These non-GAAP financial measures should be considered in addition
to financial measures prepared in accordance with GAAP, but should
not be considered a substitute for, or superior to, financial
measures prepared in accordance with GAAP. Reconciliation of each
of these non-GAAP financial measures to the most directly
comparable GAAP financial measure is set forth at the end of this
release.
Conference Call
58.com's management will host an earnings conference call
on Thursday, August 18, 2016 at 8:00 a.m. U.S.
Eastern Time (8:00 p.m.
Beijing / Hong Kong time on the same day).
Dial-in details for the earnings conference call are as
follows:
International:
|
+1-412-902-4272
|
U.S. Toll
Free:
|
+1-888-346-8982
|
Hong Kong:
|
800-905945
|
China:
|
4001-201203
|
Passcode:
|
WUBA
|
Please dial in 15 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available after the
conclusion of the conference call through 8:00 a.m. U.S.
Eastern Time, August 25, 2016. The dial-in details for the
replay are as follows:
International:
|
+1-412-317-0088
|
U.S. Toll
Free:
|
+1-877-344-7529
|
Passcode:
|
10091491
|
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of 58.com's
website at http://www.58.com.
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online marketplace serving
local merchants and consumers, as measured by monthly unique
visitors on both its www.58.com website and mobile applications.
The Company's online marketplace enables local merchants and
consumers to connect, share information and conduct business.
58.com's broad, in-depth and high quality local information,
combined with its easy-to-use website and mobile applications, has
made it a trusted marketplace for consumers. 58.com's strong brand
recognition, large and growing user base, merchant network and
massive database of local information create a powerful network
effect.
Safe Harbor Statements
This press release contains forward-looking statements 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," "confident" and similar statements. 58.com may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including statements about 58.com's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: 58.com's goals and strategies; its future business
development, financial condition and results of operations; its
ability to retain and grow its user base and network of local
merchants for its online marketplace; the growth of, and trends in,
the markets for its services in China; the demand for and market acceptance of
its brand and services; competition in its industry in China; its ability to maintain the network
infrastructure necessary to operate its website and mobile
applications; relevant government policies and regulations relating
to the corporate structure, business and industry; and its ability
to protect its users' information and adequately address privacy
concerns. Further information regarding these and other risks,
uncertainties or factors is included in the Company's filings with
the U.S. Securities and Exchange Commission. All information
provided in this press release is current as of the date of the
press release, and 58.com does not undertake any obligation to
update such information, except as required under applicable
law.
For more information, please contact:
58.com Inc.
ir@58.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
58.com
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in
thousands, except share and per share data, unless otherwise
noted)
|
|
|
As
of
|
|
December
31,
|
June
30,
|
2015
|
2016
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
483,305
|
154,828
|
Restricted
cash
|
4,841
|
2,114
|
Term
deposits
|
-
|
3,000
|
Short-term
investments
|
41,218
|
157,195
|
Accounts receivable,
net
|
54,031
|
68,473
|
Prepayments and other
current assets
|
76,878
|
87,248
|
Total current
assets
|
660,273
|
472,858
|
Non-current
assets:
|
|
|
Property and
equipment, net
|
123,093
|
122,081
|
Intangible assets,
net
|
271,457
|
248,494
|
Land use rights,
net
|
592
|
574
|
Goodwill
|
2,461,193
|
2,398,311
|
Long-term
investments
|
391,261
|
427,272
|
Long-term prepayments
and other non-current assets
|
159,324
|
110,868
|
Total non-current
assets
|
3,406,920
|
3,307,600
|
Total
assets
|
4,067,193
|
3,780,458
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
|
Current
liabilities:
|
|
|
Short-term
loan
|
275,000
|
265,000
|
Accounts
payable
|
101,635
|
100,666
|
Deferred
revenues
|
207,059
|
243,213
|
Customer advances and
deposits
|
151,138
|
173,852
|
Taxes
payable
|
10,216
|
9,119
|
Salary and welfare
payable
|
79,115
|
71,644
|
Accrued expenses and
other current liabilities
|
335,901
|
118,767
|
Total current
liabilities
|
1,160,064
|
982,261
|
Non-current
liabilities:
|
|
|
Deferred tax
liabilities
|
66,238
|
60,617
|
Other non-current
liabilities
|
3,992
|
283
|
Total non-current
liabilities
|
70,230
|
60,900
|
Total
liabilities
|
1,230,294
|
1,043,161
|
Mezzanine
equity:
|
|
|
Mezzanine
classified noncontrolling interests
|
15,038
|
11,180
|
Total mezzanine
equity
|
15,038
|
11,180
|
Shareholders'
equity:
|
|
|
Ordinary shares
(US$0.00001 par value, 4,800,000,000 Class A and 200,000,000 Class
B
shares authorized, 219,413,764 Class A and 63,654,913 Class B
shares issued and outstanding
as of December 31, 2015 and 232,511,675 Class A and 55,740,260
Class B shares issued and
outstanding as of June 30, 2016,
respectively)
|
3
|
3
|
Additional paid-in
capital
|
3,353,411
|
3,379,148
|
Accumulated
deficit
|
(365,811)
|
(432,992)
|
Accumulated other
comprehensive loss
|
(172,828)
|
(230,248)
|
Total
shareholders' equity
|
2,814,775
|
2,715,911
|
Noncontrolling
interests
|
7,086
|
10,206
|
Total
equity
|
2,821,861
|
2,726,117
|
Total liabilities,
mezzanine equity and equity
|
4,067,193
|
3,780,458
|
58.com
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(U.S. dollars in
thousands, except share, per share and per ADS data, unless
otherwise noted)
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June
30,
|
March
31,
|
June
30,
|
|
June
30,
|
June
30,
|
2015
|
2016
|
2016
|
2015
|
2016
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Membership
|
65,491
|
92,338
|
115,130
|
|
107,600
|
207,468
|
Online marketing services
|
89,233
|
129,725
|
172,180
|
|
133,545
|
301,905
|
E-commerce services
|
4,653
|
5,636
|
7,515
|
|
4,922
|
13,151
|
Other services
|
154
|
3,577
|
2,993
|
|
545
|
6,570
|
Total
revenues
|
159,531
|
231,276
|
297,818
|
|
246,612
|
529,094
|
Cost of
revenues(1)
|
(10,084)
|
(24,372)
|
(24,397)
|
|
(16,069)
|
(48,769)
|
Gross
profit
|
149,447
|
206,904
|
273,421
|
|
230,543
|
480,325
|
Operating
expenses(1):
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(135,060)
|
(201,809)
|
(175,241)
|
|
(249,225)
|
(377,050)
|
Research and
development expenses
|
(24,810)
|
(35,542)
|
(39,325)
|
|
(41,016)
|
(74,867)
|
General and
administrative expenses
|
(25,401)
|
(20,659)
|
(23,388)
|
|
(33,961)
|
(44,047)
|
Total operating
expenses
|
(185,271)
|
(258,010)
|
(237,954)
|
|
(324,202)
|
(495,964)
|
Income/(loss) from
operations
|
(35,824)
|
(51,106)
|
35,467
|
|
(93,659)
|
(15,639)
|
Other
income/(expenses):
|
|
|
|
|
|
|
Interest income/(expenses)
|
680
|
(964)
|
(2,393)
|
|
2,067
|
(3,357)
|
Investment loss, net
|
(5,283)
|
(20,786)
|
(34,138)
|
|
(2,515)
|
(54,924)
|
Gain on deconsolidation and disposal of
businesses
|
-
|
-
|
12,081
|
|
-
|
12,081
|
Foreign currency exchange income/(loss),
net
|
332
|
813
|
(1,022)
|
|
320
|
(209)
|
Others,
net
|
3,161
|
(12,312)
|
6,264
|
|
3,509
|
(6,048)
|
Income/(loss)
before tax
|
(36,934)
|
(84,355)
|
16,259
|
|
(90,278)
|
(68,096)
|
Income tax
benefits/(expenses)
|
6,623
|
2,345
|
(2,120)
|
|
6,623
|
225
|
Net
income/(loss)
|
(30,311)
|
(82,010)
|
14,139
|
|
(83,655)
|
(67,871)
|
Add: Net loss
attributable to noncontrolling interests
|
3,417
|
359
|
331
|
|
4,395
|
690
|
Less: Deemed
dividend to mezzanine classified noncontrolling
interests
|
-
|
(534)
|
(534)
|
|
-
|
(1,068)
|
Net income/(loss)
attributable to 58.com Inc.
|
(26,894)
|
(82,185)
|
13,936
|
|
(79,260)
|
(68,249)
|
Net income/(loss) per
ordinary share attributable to ordinary
shareholders ‑ basic
|
(0.12)
|
(0.29)
|
0.05
|
|
(0.40)
|
(0.24)
|
Net income/(loss) per
ordinary share attributable to ordinary
shareholders ‑ diluted
|
(0.12)
|
(0.29)
|
0.05
|
|
(0.40)
|
(0.24)
|
Net income/(loss) per
ADS – basic (1 ADS represents 2 Class A
ordinary shares)
|
(0.24)
|
(0.58)
|
0.10
|
|
(0.79)
|
(0.48)
|
Net income/(loss) per
ADS – diluted (1 ADS represents 2 Class A
ordinary shares)
|
(0.24)
|
(0.58)
|
0.10
|
|
(0.79)
|
(0.48)
|
Weighted average
number of ordinary shares used in computing
basic earnings/(losses) per share
|
220,896,728
|
282,676,226
|
286,918,787
|
|
199,620,036
|
284,797,507
|
Weighted average
number of ordinary shares used in computing
diluted earnings/(losses) per share
|
220,896,728
|
282,676,226
|
292,381,030
|
|
199,620,036
|
284,797,507
|
Note:
|
(1) Share‑based
compensation expenses were allocated in cost of revenues and
operating expenses as follows:
|
Cost of
revenues
|
21
|
45
|
49
|
|
44
|
94
|
Sales and marketing
expenses
|
1,101
|
1,984
|
2,071
|
|
1,894
|
4,055
|
Research and
development expenses
|
1,497
|
3,581
|
3,399
|
|
2,513
|
6,980
|
General and
administrative expenses
|
1,276
|
3,931
|
5,485
|
|
3,661
|
9,416
|
58.com
Inc.
|
Reconciliation of
GAAP and Non-GAAP Results
|
(U.S. dollars in
thousands, except share, ADS, per share and per ADS data, unless
otherwise noted)
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
Jun
30,
2015
|
March
31,
2016
|
Jun
30,
2016
|
|
Jun
30,
2015
|
Jun
30,
2016
|
|
|
|
|
|
|
|
GAAP income/(loss)
from operations
|
(35,824)
|
(51,106)
|
35,467
|
|
(93,659)
|
(15,639)
|
Share-based
compensation expenses
|
3,895
|
9,541
|
11,004
|
|
8,112
|
20,545
|
Amortization of intangible
assets resulting from business
acquisitions
|
1,656
|
8,795
|
8,793
|
|
2,156
|
17,588
|
Non-GAAP
income/(loss) from operations
|
(30,273)
|
(32,770)
|
55,264
|
|
(83,391)
|
22,494
|
|
|
|
|
|
|
|
GAAP net
income/(loss) attributable to 58.com Inc.
|
(26,894)
|
(82,185)
|
13,936
|
|
(79,260)
|
(68,249)
|
Share-based
compensation expenses
|
3,895
|
9,541
|
11,004
|
|
8,112
|
20,545
|
Share-based
compensation attributable to noncontrolling
interests
|
(53)
|
(1)
|
(22)
|
|
(220)
|
(23)
|
Amortization of intangible
assets resulting from business
acquisitions
|
1,656
|
8,795
|
8,793
|
|
2,156
|
17,588
|
Pick-up of net loss attributable to share-based compensation
expense of 58 Home and Ganji
|
551
|
60
|
59
|
|
551
|
119
|
Gain on
deconsolidation and disposal of businesses, net of
income tax expense
|
-
|
-
|
(12,081)
|
|
-
|
(12,081)
|
Loss on conversion of Guazi Convertible Note
|
-
|
12,938
|
-
|
|
-
|
12,938
|
Non-GAAP net
income/(loss) attributable to 58.com Inc.
|
(20,845)
|
(50,852)
|
21,689
|
|
(68,661)
|
(29,163)
|
|
|
|
|
|
|
|
GAAP operating
margin
|
(22.5)%
|
(22.1)%
|
11.9%
|
|
(38.0)%
|
(3.0)%
|
Share-based compensation expenses
|
2.5%
|
4.1%
|
3.7%
|
|
3.3%
|
3.9%
|
Amortization of
intangible assets resulting from business
acquisitions
|
1.0%
|
3.8%
|
3.0%
|
|
0.9%
|
3.3%
|
Non-GAAP operating
margin
|
(19.0)%
|
(14.2)%
|
18.6%
|
|
(33.8)%
|
4.2%
|
|
|
|
|
|
|
|
GAAP net
margin
|
(16.9)%
|
(35.5)%
|
4.7%
|
|
(32.1)%
|
(12.9)%
|
Share-based compensation expenses
|
2.5%
|
4.1%
|
3.7%
|
|
3.3%
|
3.9%
|
Share-based
compensation attributable to noncontrolling
interests
|
0.0%
|
0.0%
|
0.0%
|
|
(0.1)%
|
0.0%
|
Amortization of intangible assets
resulting from business
acquisitions
|
1.0%
|
3.8%
|
3.0%
|
|
0.9%
|
3.3%
|
Pick-up of net loss attributable to share-based compensation
expense of 58 Home
and Ganji
|
0.3%
|
0.0%
|
0.0%
|
|
0.2%
|
0.0%
|
Gain on
deconsolidation and disposal of businesses, net of
income tax expense
|
-
|
-
|
(4.1)%
|
|
-
|
(2.3)%
|
Loss on conversion of Guazi Convertible Note
|
-
|
5.6%
|
-
|
|
-
|
2.4%
|
Non-GAAP net
margin
|
(13.1)%
|
(22.0)%
|
7.3%
|
|
(27.8)%
|
(5.6)%
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
computing non-GAAP basic earnings per share
|
220,896,728
|
282,676,226
|
286,918,787
|
|
199,620,036
|
284,797,507
|
Weighted average
number of ordinary shares used in
computing non-GAAP diluted earnings per share
|
220,896,728
|
282,676,226
|
292,381,030
|
|
199,620,036
|
284,797,507
|
Weighted average
number of ADS used in computing non-
GAAP basic earnings per ADS
|
110,448,364
|
141,338,113
|
143,459,394
|
|
99,810,018
|
142,398,753
|
Weighted average
number of ADS used in computing non-
GAAP diluted earnings per ADS
|
110,448,364
|
141,338,113
|
146,190,515
|
|
99,810,018
|
142,398,753
|
|
|
|
|
|
|
|
Non-GAAP net
income/(loss) per ordinary share ‑ basic
|
(0.09)
|
(0.18)
|
0.08
|
|
(0.34)
|
(0.10)
|
Non-GAAP net
income/(loss) per ordinary share ‑ diluted
|
(0.09)
|
(0.18)
|
0.07
|
|
(0.34)
|
(0.10)
|
Non-GAAP net
income/(loss) per ADS ‑ basic
|
(0.19)
|
(0.36)
|
0.15
|
|
(0.69)
|
(0.20)
|
Non-GAAP net
income/(loss) per ADS ‑ diluted
|
(0.19)
|
(0.36)
|
0.15
|
|
(0.69)
|
(0.20)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/58com-reports-second-quarter-2016-unaudited-financial-results-300314809.html
SOURCE 58.com