BEIJING, Feb. 27, 2017 /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 fourth quarter and fiscal year ended
December 31, 2016.
Fourth Quarter 2016 Financial Highlights
- Total revenues were US$306.6
million (RMB2,094.8 million),
a 28.5% increase from the same quarter last year in Renminbi
amounts, exceeding the higher end of the Company's guidance of
RMB2,080.0 million.
- Gross margin was 89.9%, compared with 91.9% in the same quarter
of 2015.
- Income from operations was US$28.5
million, compared with loss from operations of US$73.0 million in the same quarter of 2015.
- Non-GAAP income from operations1 was US$46.7 million, compared with non-GAAP loss from
operations of US$40.1 million in the
same quarter of 2015.
- Net loss attributable to 58.com Inc. was US$19.7 million, compared with net income
attributable to 58.com Inc. of US$34.4
million in the same quarter of 2015.
- Non-GAAP net loss attributable to 58.com Inc.2 was
US$0.7 million, compared with
non-GAAP net loss attributable to 58.com Inc. of US$48.5 million in the same quarter of 2015.
- Basic and diluted losses per ADS attributable to ordinary
shareholders were US$0.136. One ADS
represents two Class A ordinary shares.
- Non-GAAP basic and diluted losses per ADS3
attributable to ordinary shareholders were US$0.005.
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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.
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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.
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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.
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Fiscal Year 2016 Financial Highlights
- Total revenues were US$1,142.2
million (RMB7,592.1 million)
in fiscal year 2016, a 69.5% increase from fiscal year 2015 in
Renminbi amounts.
- Gross margin was 90.7%, compared with 92.8% in fiscal year
2015.
- Income from operations was US$34.4
million, compared with loss from operations of US$251.9 million in fiscal year 2015.
- Non-GAAP income from operations was US$109.2 million, compared with non-GAAP loss
from operations of US$193.3 million
in fiscal year 2015.
- Net loss attributable to 58.com Inc. was US$117.8 million, compared with net loss
attributable to 58.com Inc. of US$250.9
million in fiscal year 2015.
- Non-GAAP net loss attributable to 58.com Inc. was US$30.4 million, compared with non-GAAP net loss
attributable to 58.com Inc. of US$181.9
million in fiscal year 2015.
- Basic and diluted losses per ADS attributable to ordinary
shareholders were US$0.821. One ADS
represents two Class A ordinary shares.
- Non-GAAP basic and diluted losses per ADS attributable to
ordinary shareholders were US$0.212.
Management Comments
"I'm excited to announce that our revenues exceeded the higher
end of our fourth quarter 2016
RMB-denominated guidance as we finish the year on a strong
footing," commented Mr. Michael Yao,
Chairman and Chief Executive Officer of 58.com. "Growth in revenues
from our job category accelerated on a year-over-year basis. We are
making solid progress in product development, operational
efficiency increase across various categories. As the leading
classifieds platform in China, we
remain confident in our ability to create more value for our users
and merchant customers by focusing on our core content categories
and innovating new products and services."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "Our
revenue mix is becoming more balanced now that our job and other
categories are growing at a faster rate than housing. While
revenues during the fourth quarter of 2016 were largely flat
sequentially, we managed to further cut costs and reduce expenses
to expand our margin. As a result, non-GAAP operating margin
increased to 15.2%. Our net cash flow from operating activities
also hit a record high of US$93.5
million. We will continue to find new areas to invest in to
further grow our business and improve our operational
efficiency."
Fourth Quarter 2016 Financial Results
Revenues
All percentage increases within Revenues are
calculated using Chinese renminbi.
Total revenues were US$306.6
million (RMB2,094.8 million),
representing an increase of 28.5% from US$255.3 million
(RMB1,630.8 million) in the same
quarter of 2015.
Membership revenues were US$118.9
million (RMB812.0 million), an
increase of 26.0% from US$100.9
million (RMB644.4 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 total number of paying membership accounts on the
Company's platforms, which include 58.com, Ganji.com and Anjuke.com
was approximately 2,070,000 during the fourth quarter of 2016, a
17.9% increase from 1,755,000 in the same quarter of 2015. 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. Some paying members purchase membership services from more
than one Company platform which contributes separately to the
revenues of each platform.
Online marketing services revenues were US$174.1 million (RMB1,189.4 million), an increase of 37.0% from
US$135.9 million (RMB868.4 million) in the same quarter of 2015.
The increase was primarily driven by increases in traffic and
effectiveness of real time bidding and various other online
marketing services.
Cost of Revenues
Cost of revenues was US$31.0
million, an increase of 49.8% from US$20.7 million during the same quarter of 2015.
The year-over-year increase in the 58.com's cost of revenues was
primarily driven by increased traffic acquisition costs ("TAC")
paid to 58.com'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$275.6 million,
an increase of 17.5% from US$234.6
million during the same quarter of 2015.
Gross margin was 89.9%, compared with 91.9% 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$247.1
million, representing a decrease of 19.7% from US$307.5 million in the same quarter of 2015.
Sales and marketing expenses in the fourth quarter of 2016 were
US$179.2 million, a decrease of 22.1%
from US$229.9 million in the same
quarter in 2015.
Within sales and marketing expenses, advertising expenses
accounted for US$66.6 million and
US$97.9 million during the fourth
quarter of 2016 and 2015, respectively. The decrease primarily
resulted from the deconsolidation of Guazi on December 31, 2015, which incurred significant
advertising expenses during the fourth quarter of 2015.
Other sales and marketing expenses in the fourth quarter of 2016
were US$112.6 million, a decrease of
14.6% from US$132.0 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 decrease mainly resulted from the
deconsolidation of 58 Home on November 27,
2015, which incurred significant other sales and marketing
expenses in the fourth quarter of 2015.
Research and development expenses during the fourth quarter of
2016 were US$45.8 million, an
increase of 9.6% from US$41.8 million
in the same quarter of 2015. The increase 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 fourth quarter of
2016 were US$22.1 million, a 38.4%
decrease from US$35.8 million in the
same quarter of 2015 which included US$12.1
million in compensation to noncontrolling shareholders
resulting from a waiver of receivables from 58 Home in the fourth
quarter of 2015.
Income/(Loss) from Operations
Income from operations was US$28.5
million in the fourth quarter of 2016, compared with loss
from operations of US$73.0 million in
the same quarter of 2015. Operating margin, defined as
income/(loss) from operations divided by total revenues, was
positive 9.3% in the fourth quarter of 2016, compared with negative
28.6% in the same quarter of 2015.
Non-GAAP income from operations1 was US$46.7 million in the fourth quarter of 2016,
compared with non-GAAP loss from operations of US$40.1 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 15.2% in the
fourth quarter of 2016, compared with negative 15.6% in the same
quarter of 2015.
Other Income/(Expenses)
Other expenses in the fourth quarter of 2016 were US$53.1 million, compared with other income of
US$104.8 million in the same quarter
of 2015. Other expenses in the fourth quarter of 2016 mainly
included a US$32.6 million pick-up of
the net loss attributable to 58 Home's ordinary shareholders that
was calculated based on the Company's common shareholding in 58
Home, and was included in share of results of equity investees in
the consolidated statements of operations.
Net
Income/(Loss)
attributable to 58.com Inc.
Net loss attributable to 58.com Inc. was US$19.7 million in
the fourth quarter of 2016, compared with net income attributable
to 58.com Inc. of US$34.4 million in
the same quarter of 2015. Net margin, defined as net income/(loss)
attributable to 58.com Inc. divided by total revenues, was negative
6.4% in the fourth quarter of 2016, compared with positive 13.5% in
the same quarter of 2015.
Non-GAAP net loss attributable to 58.com Inc.2 was
US$0.7 million in the fourth quarter
of 2016, compared with non-GAAP net loss attributable to 58.com
Inc. of US$48.5 million in the same
quarter of 2015. Non-GAAP net margin, defined as non-GAAP net
income/(loss) attributable to 58.com Inc. divided by total
revenues, was negative 0.2% in the fourth quarter of 2016, compared
with negative 18.8% in the same quarter of 2015.
Basic and Diluted Earnings/(Losses) per ADS
Basic and diluted losses per ADS attributable to ordinary
shareholders in the fourth quarter of 2016 were US$0.136, compared with basic and diluted
earnings per ADS attributable to ordinary shareholders of
US$0.246 and US$0.241, respectively, in the same quarter of
2015.
Non-GAAP basic and diluted losses per ADS attributable to
ordinary shareholders3 in the fourth quarter of 2016
were US$0.005, compared with non-GAAP
basic and diluted losses per ADS attributable to ordinary
shareholders of US$0.347 in the same
quarter of 2015.
Cash Flow
Net cash provided by operating activities was US$93.5 million in the fourth quarter of 2016,
compared with net cash provided by operating activities of
US$16.8 million in the same quarter
of 2015.
Cash and Cash Equivalents, Term Deposits and Short-term
Investments
As of December 31, 2016, the
Company had cash and cash equivalents, term deposits and short-term
investments of US$297.0 million.
Fiscal Year 2016 Financial Results
Revenues
All percentage increases within Revenues are
calculated using Chinese renminbi.
Total revenues were US$1,142.2
million (RMB7,592.1 million),
representing an increase of 69.5% from US$714.8 million
(RMB4,478.1 million) during
fiscal year 2015.
Membership revenues were US$444.0
million (RMB2,951.1 million),
an increase of 58.7% from US$297.2
million (RMB1,860.0 million)
during fiscal year 2015. The increase in membership revenues was
primarily driven by an increase in the number of paying membership
accounts. The number of quarterly average paying membership
accounts on the Company's platforms, which include 58.com,
Ganji.com and Anjuke.com, was approximately 1,982,000 during fiscal
year 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. Some paying members purchase membership services from
more than one Company platform which contributes separately to the
revenues of each platform.
Online marketing services revenues were US$656.5 million (RMB4,363.8 million), an increase of 80.7% from
US$385.5 million (RMB2,415.2 million) during fiscal year 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 increases
in traffic and effectiveness of real time bidding and various other
online marketing services.
Cost of Revenues
Cost of revenues was US$106.3
million, an increase of 107.3% from US$51.3 million during fiscal year 2015. The
year-over-year increase in the 58.com's cost of revenues was
primarily driven by increased TAC paid to 58.com'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$1,035.9
million, an increase of 56.1% from US$663.6 million during fiscal year 2015.
Gross margin was 90.7%, compared with 92.8% during fiscal year
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$1,001.5
million, representing an increase of 9.4% from US$915.5 million during fiscal year 2015.
Sales and marketing expenses in fiscal year of 2016 were
US$744.4 million, an increase of 8.0%
from US$689.0 million during fiscal
year 2015.
Within sales and marketing expenses, advertising expenses
accounted for US$307.8 million and
US$289.1 million during fiscal year
of 2016 and 2015, respectively.
Other sales and marketing expenses in fiscal year of 2016 were
US$436.6 million, an increase of 9.2%
from US$399.9 million during fiscal
year 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.
Research and development expenses in fiscal year 2016 were
US$166.5 million, an increase of
37.2% from US$121.4 million in fiscal
year 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 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 fiscal year of 2016 were
US$90.6 million, a 13.8% decrease
from US$105.0 million during fiscal
year 2015. The decrease was primarily due to financial advisory and
professional service fees incurred in connection with the strategic
investment in Ganji and US$12.1
million in compensation to noncontrolling shareholders
resulting from a waiver of receivables from 58 Home in 2015, which
was partially offset by increases in share-based compensation
expenses, administrative staff salary and benefits and depreciation
and amortization expenses.
Income/(Loss) from Operations
Income from operations was US$34.4
million in fiscal year 2016, compared with loss from
operations of US$251.9 million during
fiscal year 2015. Operating margin was positive 3.0% in fiscal year
of 2016, compared with negative 35.2% during fiscal year 2015.
Non-GAAP income from operations1 was US$109.2 million in fiscal year of 2016, compared
with non-GAAP loss from operations of US$193.3 million during fiscal year 2015.
Non-GAAP operating margin was positive 9.5% during fiscal year
2016, compared with negative 27.0% during fiscal year 2015.
Other Income/(Expenses)
Other expenses in fiscal year 2016 were US$158.1 million, compared with other expenses of
US$19.0 million during fiscal year
2015. Other expenses in fiscal year 2016 mainly included a
US$138.6 million pick-up of the net
loss attributable to 58 Home's ordinary shareholders that was
calculated based on the Company's common shareholding in 58 Home,
and was included in share of results of equity investees in the
consolidated statements of operations.
Net
Income/(Loss)
attributable to 58.com Inc.
Net loss attributable to 58.com Inc. was US$117.8 million
in fiscal year 2016, compared with net loss attributable to 58.com
Inc. of US$250.9 million during
fiscal year 2015. Net margin was negative 10.3% in fiscal year
2016, compared with negative 35.1% during fiscal year 2015.
Non-GAAP net loss attributable to 58.com Inc.2 was
US$30.4 million in fiscal year 2016,
compared with non-GAAP net loss attributable to 58.com Inc. of
US$181.9 million during fiscal year
2015. Non-GAAP net margin was negative 2.8% in fiscal year 2016,
compared with negative 25.4% during fiscal year 2015.
Basic and Diluted Earnings/(Losses) per ADS
Basic and diluted losses per ADS attributable to ordinary
shareholders in fiscal year 2016 were US$0.821, compared with basic and diluted losses
per ADS attributable to ordinary shareholders of US$2.137 during fiscal year 2015.
Non-GAAP basic and diluted losses per ADS attributable to
ordinary shareholders3 in fiscal year 2016 were
US$0.212, compared with non-GAAP
basic and diluted losses per ADS attributable to ordinary
shareholders of US$1.550 during
fiscal year 2015.
Cash Flow
Net cash provided by operating activities was US$248.2 million in fiscal year 2016, compared
with net cash provided by operating activities of US$10.8 million during fiscal year 2015.
Shares Outstanding
As of December 31, 2016, the
Company had a total of 289,670,997 ordinary shares (including
240,930,737 Class A and 48,740,260 Class B ordinary shares) issued
and outstanding. One ADS represents two Class A ordinary
shares.
Business Outlook
Based on the Company's current operations, total revenues for
the first quarter of 2017 are expected to be between
RMB1,785 million and RMB1,855
million, or US$255.0 million and
US$265.0 million assuming an average exchange rate of
RMB7.00 to US$1.00 in the first quarter of 2017.
This represents a year-over-year increase of 18.0% to 23.0% in
Renminbi amounts. 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 Tuesday, February 28, 2017 at 8:00 a.m. U.S.
Eastern Time (9:00 p.m.
Beijing / Hong Kong time on the same day).
Dial-in details for the earnings conference call are as
follows:
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International:
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+1-412-902-4272
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U.S. Toll
Free:
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+1-888-346-8982
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Hong Kong:
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800-905945
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China:
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4001-201203
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Passcode:
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WUBA
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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, March 7, 2017. The dial-in details for the
replay are as follows:
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International:
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+1-412-317-0088
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U.S. Toll
Free:
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+1-877-344-7529
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Passcode:
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10101956
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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
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58.com Inc.
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UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(U.S. dollars in
thousands, except share and per share data, unless otherwise
noted)
|
|
|
As
of
|
|
December
31,
2015
|
December
31,
2016
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
483,305
|
173,051
|
|
Restricted
cash
|
4,841
|
166,057
|
|
Term
deposits
|
—
|
3,800
|
|
Short-term
investments
|
41,218
|
120,150
|
|
Accounts receivable,
net
|
54,031
|
61,250
|
|
Prepayments and other
current assets
|
76,878
|
61,418
|
|
Total current
assets
|
660,273
|
585,726
|
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
123,093
|
213,481
|
|
Intangible assets,
net
|
271,457
|
220,878
|
|
Land use rights,
net
|
592
|
543
|
|
Goodwill
|
2,461,193
|
2,292,587
|
|
Long-term
investments
|
391,261
|
324,203
|
|
Long-term prepayments
and other non-current assets
|
159,324
|
32,257
|
|
Total non-current
assets
|
3,406,920
|
3,083,949
|
|
Total
assets
|
4,067,193
|
3,669,675
|
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
loans
|
275,000
|
265,636
|
|
Accounts
payable
|
101,635
|
88,215
|
|
Deferred
revenues
|
207,059
|
266,087
|
|
Customer
advances
|
151,138
|
178,186
|
|
Taxes
payable
|
10,216
|
8,950
|
|
Salary and welfare
payable
|
79,115
|
79,790
|
|
Accrued expenses and
other current liabilities
|
335,901
|
104,931
|
|
Total current
liabilities
|
1,160,064
|
991,795
|
|
Non-current
liabilities:
|
|
|
|
Long-term
loan
|
—
|
21,623
|
|
Deferred tax
liabilities
|
66,238
|
53,886
|
|
Other non-current
liabilities
|
3,992
|
10,082
|
|
Total non-current
liabilities
|
70,230
|
85,591
|
|
Total
liabilities
|
1,230,294
|
1,077,386
|
|
Mezzanine
equity:
|
|
|
|
Mezzanine classified
noncontrolling interests
|
15,038
|
12,463
|
|
Total mezzanine
equity
|
15,038
|
12,463
|
|
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 240,930,737 Class A
and 48,740,260 Class B
shares issued and outstanding as of December 31, 2016,
respectively)
|
3
|
3
|
|
Additional paid-in
capital
|
3,353,411
|
3,399,470
|
|
Accumulated
deficit
|
(365,811)
|
(481,289)
|
|
Accumulated other
comprehensive loss
|
(172,828)
|
(348,426)
|
|
Total 58.com Inc.
shareholders' equity
|
2,814,775
|
2,569,758
|
|
Noncontrolling
interests
|
7,086
|
10,068
|
|
Total shareholders'
equity
|
2,821,861
|
2,579,826
|
|
Total liabilities,
mezzanine equity and shareholders' equity
|
4,067,193
|
3,669,675
|
|
|
|
|
|
58.com Inc.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(U.S. dollars in
thousands, except share, per share and per ADS data, unless
otherwise noted)
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Year Ended
|
|
December
31,
2015
|
September
30,
2016
|
December
31,
2016
|
|
December
31,
2015
|
December
31,
2016
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Membership
|
100,901
|
117,677
|
118,891
|
|
297,150
|
444,036
|
|
Online marketing
services
|
135,927
|
180,500
|
174,131
|
|
385,543
|
656,536
|
|
E-commerce
services
|
11,510
|
5,454
|
6,507
|
|
23,046
|
25,112
|
|
Other
services
|
6,942
|
2,821
|
7,100
|
|
9,097
|
16,491
|
|
Total
revenues
|
255,280
|
306,452
|
306,629
|
|
714,836
|
1,142,175
|
|
Cost of
revenues(1)
|
(20,711)
|
(26,489)
|
(31,028)
|
|
(51,268)
|
(106,286)
|
|
Gross
profit
|
234,569
|
279,963
|
275,601
|
|
663,568
|
1,035,889
|
|
Operating
expenses(1):
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(229,904)
|
(188,154)
|
(179,196)
|
|
(689,014)
|
(744,400)
|
|
Research and
development expenses
|
(41,844)
|
(45,836)
|
(45,842)
|
|
(121,404)
|
(166,545)
|
|
General and
administrative expenses
|
(35,774)
|
(24,473)
|
(22,054)
|
|
(105,049)
|
(90,574)
|
|
Total operating
expenses
|
(307,522)
|
(258,463)
|
(247,092)
|
|
(915,467)
|
(1,001,519)
|
|
Income/(loss) from
operations
|
(72,953)
|
21,500
|
28,509
|
|
(251,899)
|
34,370
|
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
Interest expenses,
net
|
(4,096)
|
(2,583)
|
(1,369)
|
|
(4,011)
|
(7,309)
|
|
Investment
income/(loss), net
|
1,160
|
(243)
|
(19,065)
|
|
(26,887)
|
(21,090)
|
|
Share of results of
equity investees
|
(9,342)
|
(53,142)
|
(32,852)
|
|
(112,892)
|
(139,136)
|
|
Gain on
deconsolidation and disposal of businesses
|
119,238
|
—
|
—
|
|
119,238
|
12,081
|
|
Foreign currency
exchange gain/(loss), net
|
(1,294)
|
(381)
|
37
|
|
(1,743)
|
(553)
|
|
Others, net
|
(839)
|
3,830
|
133
|
|
7,286
|
(2,085)
|
|
Income/(loss)
before tax
|
31,874
|
(31,019)
|
(24,607)
|
|
(270,908)
|
(123,722)
|
|
Income tax
benefits/(expenses)
|
(275)
|
1,825
|
5,450
|
|
7,952
|
7,500
|
|
Net
income/(loss)
|
31,599
|
(29,194)
|
(19,157)
|
|
(262,956)
|
(116,222)
|
|
Net loss/(income)
attributable to noncontrolling interests
|
3,292
|
(83)
|
137
|
|
12,920
|
744
|
|
Deemed dividend to
mezzanine classified noncontrolling interests
|
(540)
|
(617)
|
(666)
|
|
(898)
|
(2,351)
|
|
Net income/(loss)
attributable to 58.com Inc.
|
34,351
|
(29,894)
|
(19,686)
|
|
(250,934)
|
(117,829)
|
|
Net income/(loss) per
ordinary share attributable to ordinary
shareholders ‑ basic
|
0.123
|
(0.104)
|
(0.068)
|
|
(1.069)
|
(0.411)
|
|
Net income/(loss) per
ordinary share attributable to ordinary
shareholders ‑ diluted
|
0.120
|
(0.104)
|
(0.068)
|
|
(1.069)
|
(0.411)
|
|
Net income/(loss) per
ADS attributable to ordinary shareholders –
basic (1 ADS represents 2 Class A ordinary shares)
|
0.246
|
(0.208)
|
(0.136)
|
|
(2.137)
|
(0.821)
|
|
Net income/(loss) per
ADS attributable to ordinary shareholders –
diluted (1 ADS represents 2 Class A ordinary shares)
|
0.241
|
(0.208)
|
(0.136)
|
|
(2.137)
|
(0.821)
|
|
Weighted average
number of ordinary shares used in computing
basic earnings/(losses) per share
|
279,096,719
|
288,734,733
|
289,523,186
|
|
234,811,986
|
286,975,068
|
|
Weighted average
number of ordinary shares used in computing
diluted earnings/(losses) per share
|
285,382,080
|
288,734,733
|
289,523,186
|
|
234,811,986
|
286,975,068
|
|
Note:
|
|
(1) Share‑based
compensation expenses were allocated in cost of revenues and
operating expenses as follows:
|
|
Cost of
revenues
|
35
|
(76)
|
57
|
|
121
|
75
|
|
Sales and marketing
expenses
|
2,659
|
2,214
|
2,604
|
|
6,997
|
8,873
|
|
Research and
development expenses
|
3,929
|
3,527
|
4,315
|
|
9,432
|
14,822
|
|
General and
administrative expenses
|
4,747
|
4,174
|
2,836
|
|
11,510
|
16,426
|
|
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 Fiscal
Year Ended
|
|
December
31,
2015
|
September
30,
2016
|
December
31,
2016
|
|
December
31,
2015
|
December
31,
2016
|
|
|
|
|
|
|
|
|
GAAP income/(loss)
from operations
|
(72,953)
|
21,500
|
28,509
|
|
(251,899)
|
34,370
|
|
Share-based
compensation expenses
|
11,370
|
9,839
|
9,812
|
|
28,060
|
40,196
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
9,385
|
8,616
|
8,406
|
|
18,354
|
34,610
|
|
Compensation to
noncontrolling shareholders
resulting from waiver of receivables from 58
Home
|
12,147
|
—
|
—
|
|
12,147
|
—
|
|
Non-GAAP
income/(loss) from operations
|
(40,051)
|
39,955
|
46,727
|
|
(193,338)
|
109,176
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss) attributable to 58.com Inc.
|
34,351
|
(29,894)
|
(19,686)
|
|
(250,934)
|
(117,829)
|
|
Share-based
compensation expenses
|
11,370
|
9,839
|
9,812
|
|
28,060
|
40,196
|
|
Share-based
compensation attributable to noncontrolling
interests
|
(7)
|
—
|
—
|
|
(236)
|
(23)
|
|
Amortization of intangible
assets resulting from business
acquisitions
|
9,385
|
8,616
|
8,406
|
|
18,354
|
34,610
|
|
Compensation to
noncontrolling shareholders
resulting from waiver of receivables from 58
Home
|
12,147
|
—
|
—
|
|
12,147
|
—
|
|
Revaluation loss of
strategic investment in Ganji
|
—
|
—
|
—
|
|
35,217
|
—
|
|
Pick-up of net loss attributable to share-based compensation
expense of 58 Home and
Ganji
|
21
|
10,881
|
790
|
|
91,193
|
11,790
|
|
Gain on
deconsolidation and disposal of businesses, net of
income tax expense
|
(115,738)
|
—
|
—
|
|
(115,738)
|
(12,081)
|
|
Loss on conversion of Guazi Convertible Note
|
—
|
—
|
—
|
|
—
|
12,938
|
|
Non-GAAP net loss
attributable to 58.com Inc.
|
(48,471)
|
(558)
|
(678)
|
|
(181,937)
|
(30,399)
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
(28.6)%
|
7.0%
|
9.3%
|
|
(35.2)%
|
3.0%
|
|
Share-based compensation expenses
|
4.5%
|
3.2%
|
3.2%
|
|
3.9%
|
3.5%
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
3.7%
|
2.8%
|
2.7%
|
|
2.6%
|
3.0%
|
|
Compensation to
noncontrolling shareholders
resulting from waiver of receivables from 58
Home
|
4.8%
|
—
|
—
|
|
1.7%
|
—
|
|
Non-GAAP operating
margin
|
(15.6)%
|
13.0%
|
15.2%
|
|
(27.0)%
|
9.5%
|
|
|
|
|
|
|
|
|
GAAP net
margin
|
13.5%
|
(9.8)%
|
(6.4)%
|
|
(35.1)%
|
(10.3)%
|
|
Share-based compensation expenses
|
4.5%
|
3.2%
|
3.2%
|
|
3.9%
|
3.5%
|
|
Share-based
compensation attributable to noncontrolling
interests
|
0.0%
|
—
|
—
|
|
0.0%
|
0.0%
|
|
Amortization of intangible assets resulting
from business
acquisitions
|
3.7%
|
2.8%
|
2.7%
|
|
2.6%
|
3.0%
|
|
Compensation to
noncontrolling shareholders
resulting from waiver of receivables from 58
Home
|
4.8%
|
—
|
—
|
|
1.7%
|
—
|
|
Revaluation loss of
strategic investment in Ganji
|
—
|
—
|
—
|
|
4.9%
|
—
|
|
Pick-up of net loss attributable to share-based compensation
expense of 58 Home and
Ganji
|
0.0%
|
3.6%
|
0.3%
|
|
12.8%
|
1.0%
|
|
Gain on
deconsolidation and disposal of businesses, net of
income tax expense
|
(45.3)%
|
—
|
—
|
|
(16.2)%
|
(1.1)%
|
|
Loss on conversion of Guazi Convertible Note
|
—
|
—
|
—
|
|
—
|
1.1%
|
|
Non-GAAP net
margin
|
(18.8)%
|
(0.2)%
|
(0.2)%
|
|
(25.4)%
|
(2.8)%
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
computing non-GAAP basic losses per share
|
279,096,719
|
288,734,733
|
289,523,186
|
|
234,811,986
|
286,975,068
|
|
Weighted average
number of ordinary shares used in
computing non-GAAP diluted losses per share
|
279,096,719
|
288,734,733
|
289,523,186
|
|
234,811,986
|
286,975,068
|
|
Weighted average
number of ADS used in computing non-
GAAP basic losses per ADS
|
139,548,359
|
144,367,366
|
144,761,593
|
|
117,405,993
|
143,487,534
|
|
Weighted average
number of ADS used in computing non-
GAAP diluted losses per ADS
|
139,548,359
|
144,367,366
|
144,761,593
|
|
117,405,993
|
143,487,534
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
ordinary share attributable to
ordinary shareholders ‑ basic
|
(0.174)
|
(0.002)
|
(0.002)
|
|
(0.775)
|
(0.106)
|
|
Non-GAAP net loss per
ordinary share attributable to
ordinary shareholders ‑ diluted
|
(0.174)
|
(0.002)
|
(0.002)
|
|
(0.775)
|
(0.106)
|
|
Non-GAAP net loss per
ADS attributable to ordinary
shareholders ‑ basic
|
(0.347)
|
(0.004)
|
(0.005)
|
|
(1.550)
|
(0.212)
|
|
Non-GAAP net loss per
ADS attributable to ordinary
shareholders ‑ diluted
|
(0.347)
|
(0.004)
|
(0.005)
|
|
(1.550)
|
(0.212)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/58com-reports-fourth-quarter-and-fiscal-year-2016-unaudited-financial-results-300413818.html
SOURCE 58.com