BEIJING, July 31, 2017 /PRNewswire/ -- Changyou.com
Limited ("Changyou" or the "Company") (NASDAQ: CYOU), a leading
online game developer and operator in China, today announced its unaudited financial
results for the second quarter 2017.
Second Quarter 2017 Highlights
- Total revenue was US$150
million1, representing an increase of 16%
year-over-year and 25% quarter-over-quarter, meeting the top end of
the Company's updated guidance.
- Online game revenue was US$122
million, representing an increase of 23% year-over-year and
43% quarter-over-quarter, exceeding the Company's updated
guidance.
- GAAP net income attributable to Changyou.com Limited was
US$52 million, representing an
increase of 57% year-over-year and 73% quarter-over-quarter, in
line with the Company's updated guidance.
- Non-GAAP2 net income attributable to
Changyou.com Limited was US$61
million, representing an increase of 68% year-over-year and
72% quarter-over-quarter, in line with the Company's updated
guidance.
Mr. Dewen Chen, CEO,
commented, "I'm pleased with the solid growth this quarter in both
revenue and non-GAAP net income, which was mainly driven by the
recent success of Legacy TLBB. In terms of our new games, we
continue to direct our strategic focus on MMORPG games, advanced
casual games and SLG games. We remain committed to delivering the
highest quality games possible as we work hard to develop our next
blockbuster."
Mr. Qing Wei, Chief Games Development
Officer added, "Our Legacy TLBB mobile game has consistently ranked
among the top three grossing games in the Apple App Store since its
launch in May. The success of Legacy TLBB was built on the enormous
user base of our TLBB PC game and is a testament to our commitment
to producing high quality games. The game took us a year and half
to develop, and the team was given the Company's full support and
the best available resources. We made sure that we delivered the
highest possible quality for the game through continuous testing
and modification."
Ms. Jasmine
Zhou, CFO of Changyou added, "After the last couple of
years' hard work, a few more new titles are scheduled for launch at
the end of this year or early next year. Until these games are
officially launched, we will continue our testing and adjustments
on them, and start the marketing process for them from the third
quarter."
1 For the second
quarter of 2017, on a yearly basis, the depreciation of the RMB
against the U.S. dollar impacted our reported financial results. On
a constant currency (non-GAAP) basis, if the exchange rate in the
second quarter of 2017 had been the same as it was in the second
quarter of 2016, or RMB6.53=US$1.00, total revenue in the second
quarter of 2017 would have been US$158 million, or US$8 million
higher than GAAP total revenue, and up 22% year-over-year, rather
than up 16% year-over-year.
|
2 Non-GAAP results
exclude share-based compensation expense. Explanation of the
Company's non-GAAP financial measures and related reconciliations
to GAAP financial measures are included in the accompanying
"Non-GAAP Disclosure" and "Reconciliations of Non-GAAP Results of
Operations Measures to the Nearest Comparable GAAP
Measures".
|
Second Quarter 2017 Operational Results
- Total average monthly active accounts3 of the
Company's PC games were 2.4 million, representing a decrease of 17%
year-over-year and flat quarter-over-quarter.
- Total average monthly active accounts of the Company's mobile
games were 7.4 million, representing an increase of 208%
year-over-year and 573% quarter-over-quarter.
- Total quarterly aggregate active paying
accounts4 of the Company's PC games were 0.9
million, representing a decrease of 10% year-over-year and flat
quarter-over-quarter.
- Total quarterly aggregate active paying accounts of the
Company's mobile games were 2.5 million, representing an increase
of 317% year-over-year and 733% quarter-over-quarter.
The year-over-year decrease for the Company's PC games reflected
the natural declining life cycles of the Company's older games.
The year-over-year and quarter-over-quarter increases for the
Company's mobile games reflected the successful launch of the
Company's new mobile game, Legacy TLBB, in the second quarter.
3 Average Monthly
Active Accounts for a given period refers to the number of
registered accounts that were logged in to these games at least
once during the period.
|
4 Quarterly
Aggregate Active Paying Accounts for a given period refers to the
number of accounts from which game points are utilized at least
once during the quarter.
|
Second Quarter 2017 Unaudited Financial Results
Revenue
Total revenue was US$150 million,
representing an increase of 16% year-over-year and 25%
quarter-over-quarter.
Online game revenue was US$122
million, representing an increase of 23% year-over-year and
43% quarter-over-quarter. The year-over-year and the
quarter-over-quarter increases were mainly due to the successful
launch of the Company's new mobile game, Legacy TLBB, in the second
quarter.
Online advertising revenue was US$7
million, representing a decrease of 39% year-over-year and
an increase of 21% quarter-over-quarter. The year-over-year
decrease was mainly due to fewer games being marketed on the 17173
website. The quarter-over-quarter increase was mainly due to a
seasonal trend in online game advertising typical of the second
quarter.
Cinema advertising revenue was US$17
million, representing an increase of 28% year-over-year and
a decrease of 29% quarter-over-quarter. The year-over-year increase
was because the Company took an active approach in acquiring more
advertising resources. The quarter-over-quarter decrease was a
result of a seasonal trend in cinema advertising typical of the
second quarter.
Internet value-added services ("IVAS") revenue was US$4 million, representing a decrease of 27%
year-over-year and 14% quarter-over-quarter. The year-over-year and
the quarter-over-quarter decreases were a result of lower revenue
from PC internet products in the second quarter of 2017.
Gross profit
GAAP and non-GAAP gross profit were both US$115 million, representing an increase of 32%
year-over-year and 43% quarter-over-quarter. GAAP and non-GAAP
gross margin were both 77%, compared with 68% in the second quarter
of 2016, and 67% in the first quarter of 2017.
GAAP and non-GAAP gross profit of the online games business were
both US$111 million, representing an
increase of 50% year-over-year and 61% quarter-over-quarter. GAAP
and non-GAAP gross margin of the online games business were both
91%, compared with 74% in the second quarter of 2016 and 81% in the
first quarter of 2017. The year-over-year and quarter-over-quarter
increases in gross margin were due to the successful launch of
Legacy TLBB in the second quarter, which has a high gross margin as
revenue is recognized on a net basis after revenue-sharing with the
third-party licensee operator.
GAAP and non-GAAP gross profit of the online advertising
business were both US$5 million,
representing a decrease of 41% year-over-year and an increase of
27% quarter-over-quarter. GAAP and non-GAAP gross margin of the
online advertising business were both 76%, compared with 79% in the
second quarter of 2016 and 72% in the first quarter of 2017. The
year-over-year decrease and quarter-over-quarter increase in gross
margin reflected changes in revenue generated by the online
advertising business each quarter while costs remained relatively
flat.
GAAP and non-GAAP gross loss of the cinema advertising business
were both US$2 million, compared with
gross profit of US$3 million in the
second quarter of 2016 and gross profit of US$6 million in the first quarter of 2017. GAAP
and non-GAAP gross margin of the cinema advertising business were
both negative 13%, compared with 19% in the second quarter of 2016
and 26% in the first quarter of 2017. The year-over-year decrease
in gross margin was mainly due to an increase in costs related to
acquiring advertising resources in the second quarter of 2017. The
quarter-over-quarter decrease in gross margin was mainly due to
lower cinema advertising revenue in the second quarter of 2017,
while costs remained stable compared with the first quarter of
2017.
GAAP and non-GAAP gross profit of the IVAS business were both
US$1 million, compared with gross
profit of US$2 million in the second
quarter of 2016 and gross profit of US$1
million in the first quarter of 2017.
Operating expense
Total operating expense was US$62
million, representing an increase of 6% year-over-year and
26% quarter-over-quarter.
Product development expense was US$36
million, representing an increase of 15% year-over-year and
35% quarter-over-quarter. The year-over-year and
quarter-over-quarter increases were mainly due to an increase in
expenses associated with new games.
Sales and marketing expense was US$13
million, representing a decrease of 6% year-over-year and an
increase of 14% quarter-over-quarter. The year-over-year decrease
was mainly due to a reduction in marketing and promotional spending
for online games in the second quarter of 2017. The
quarter-over-quarter increase was mainly due to an increase in
sales and marketing expense for the cinema advertising
business.
General and administrative expense was US$14 million, which was flat year-over-year and
an increase of 14% quarter-over-quarter. The quarter-over-quarter
increase was mainly due to an increase in share-based compensation
expense resulting from an increase in the market price for the
Company's ADSs in the second quarter of 2017 compared to the first
quarter of 2017.
Operating profit
Operating profit was US$54
million, compared with US$29
million in the second quarter of 2016 and US$32 million in the first quarter of 2017.
Non-GAAP operating profit was US$63
million, compared with US$33
million in the second quarter of 2016 and US$37 million in the first quarter of 2017.
Other Income, net
Other income was US$3 million,
compared with US$4 million in the
second quarter of 2016 and US$2 million in the first quarter
of 2017.
Income tax expense
Income tax expense was US$10
million, compared with US$5
million in the second quarter of 2016 and US$8 million in the first quarter of 2017.
Net income
Net income was US$52 million,
compared with US$33 million in the
second quarter of 2016 and US$30 million in the first quarter
of 2017.
Non-GAAP net income was US$61
million, compared with US$37
million in the second quarter of 2016 and US$35 million in the first quarter of 2017.
Net income attributable to non-controlling
interests
GAAP and non-GAAP net income attributable to non-controlling
interests was US$0.04 million. This
compares with GAAP and non-GAAP net income of US$0.4 million in the second quarter of 2016, and
GAAP and non-GAAP net income of US$0.1
million in the first quarter of 2017. Non-controlling
interests include the non-controlling interests in RaidCall, which
provides online music and entertainment services primarily in
Taiwan, and in MoboTap, the
developer of the Dolphin Browser.
Net income attributable to Changyou.com
Limited
Net income attributable to Changyou.com Limited was US$52 million, compared with US$33 million in the second quarter of 2016 and
US$30 million in the first quarter of
2017. Fully-diluted net income attributable to Changyou.com Limited
per ADS5 was US$0.96,
compared with US$0.62 in the second
quarter of 2016 and US$0.56 in the
first quarter of 2017.
Non-GAAP net income attributable to Changyou.com Limited was
US$61 million, compared with
US$36 million in the second quarter
of 2016 and US$35 million in the
first quarter of 2017. Non-GAAP fully-diluted net income
attributable to Changyou.com Limited per ADS was US$1.14, compared with US$0.68 in the second quarter of 2016 and
US$0.66 in the first quarter of
2017.
Liquidity
As of June 30, 2017, Changyou had
cash and cash equivalents and short-term investments of
US$820 million, compared with
US$831 million as of December 31, 2016.
Operating cash flow for the second quarter of 2017 was a net
inflow of US$33 million.
5 Each ADS
represents two Class A ordinary shares.
|
Business Outlook
For the third quarter of 2017, Changyou expects:
- Total revenue to be between US$160
million and US$170 million, including online game revenue of
US$120 million to US$130
million;
- Non-GAAP net income attributable to Chanyou.com
Limited to be between US$55 million and US$60 million, and non-GAAP income per
fully-diluted ADS to be between US$1.02 and US$1.12. Share based compensation to be
around US$2 million, assuming no new
grants of share-based awards and that the market price of
Changyou's ADSs is unchanged. Taking into account the elimination
of the impact of these share-based awards, GAAP net income
attributable to Changyou.com to be
between US$53 million and US$58
million, and GAAP income per fully-diluted ADS to be
between US$0.99 and US$1.08.
For the third quarter 2017 guidance, the Company has adopted a
presumed exchange rate of RMB7.00 =
US$1.00, as compared with the actual
exchange rate of approximately RMB6.66 = US$1.00
for the third quarter 2016, and RMB6.86=US$ 1.00
for the second quarter 2017.
Pending Management Change
Changyou also announced that Ms. Jasmine
Zhou has submitted to the Company's Board of Directors (the
"Board") her resignation as the Company's Chief Financial Officer,
for personal reasons. Ms. Zhou has agreed, at the Board's
request, that she will remain in her current position for a
suitable period, in order to allow the Company's management and the
Board to identify a suitable replacement for Ms. Zhou.
Dewen Chen, Changyou's Chief
Executive Officer, commented: "We wish to thank Jasmine for her
extraordinary leadership and contributions to Changyou. Jasmine has
been an integral part of our management team and has led a strong
financial team, during an important period of strategic change and
re-organization, that helped rationalize operations and drove up
efficiencies, which were instrumental in our improved margins.
Jasmine will be missed, but we do respect her decision and wish her
continued success in her future endeavors."
Jasmine Zhou, Changyou's Chief
Financial Officer, said: "It is with very mixed feelings that I
have decided to leave Changyou, which has been a very rewarding
experience for me. I am comforted to know that I will be
leaving a company that is in sound financial condition, well-poised
to move forward, and wish the Changyou's talented business and
financial management teams, and all of the Company's wonderful
employees, great success in the mobile game era."
Non-GAAP Disclosure
To supplement the unaudited consolidated financial information
prepared in accordance with generally accepted accounting
principles in the United States of
America ("GAAP"), Changyou's management uses non-GAAP
measures of gross profit, operating profit, net income, net income
attributable to Changyou.com Limited and diluted net income
attributable to Changyou.com Limited per ADS, which are adjusted
from results based on GAAP to exclude the compensation cost of
share-based awards granted, non-cash tax benefits from excess tax
deductions related to share-based awards and income/expense from
the adjustment of contingent consideration previously recorded for
acquisitions. These measures should be considered in addition to
results prepared in accordance with GAAP, but should not be
considered a substitute for, or superior to, GAAP results.
Changyou's management believes that excluding share-based
compensation expense, non-cash tax benefits from excess tax
deductions related to share-based awards and income/expense from
the adjustment of contingent consideration previously recorded for
acquisitions from its non-GAAP financial measures is useful for
itself and investors. Further, the amount of share-based
compensation expense, non-cash tax benefits from excess tax
deductions related to share-based awards and income/expense from
the adjustment of contingent consideration previously recorded for
acquisitions cannot be anticipated by management, and these
expenses are not built into the Company's annual budgets and
quarterly forecasts, which generally will be the basis for
information Changyou provides to analysts and investors as guidance
for future operating performance. As share-based compensation
expense, non-cash tax benefits from excess tax deductions related
to share-based awards and income/expense from the adjustment of
contingent consideration previously recorded for acquisitions does
not involve subsequent cash outflow, Changyou does not factor this
in when evaluating and approving expenditures or when determining
the allocation of its resources to its business operations. As a
result, in general, the monthly financial results for internal
reporting and any performance measure for commissions and bonuses
are based on non-GAAP financial measures that exclude share-based
compensation expense, non-cash tax benefits from excess tax
deductions related to share-based awards and income/expense from
the adjustment of contingent consideration previously recorded for
acquisitions.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of Changyou's current financial
performance and prospects for the future. A limitation of using
non-GAAP gross profit, operating profit, net income, net income
attributable to Changyou.com Limited and diluted net income
attributable to Changyou.com Limited per ADS, excluding share-based
compensation expense, non-cash tax benefits from excess tax
deductions related to share-based awards and income/expense from
the adjustment of contingent consideration previously recorded for
acquisitions, is that the share-based compensation charge has been
and will continue to be a significant recurring expense in the
Company's business for the foreseeable future, non-cash tax
benefits from excess tax deductions related to share-based awards
and income/expense from the adjustment of contingent consideration
previously recorded for acquisitions may recur in the future. In
order to mitigate these limitations the Company has provided
specific information regarding the GAAP amounts excluded from each
non-GAAP measure. The accompanying tables include details on the
reconciliation between GAAP financial measures that are most
directly comparable to the non-GAAP financial measures the Company
has presented.
Notes to Financial Information
Financial information in this press release other than the
information indicated as being non-GAAP is derived from Changyou's
unaudited financial statements prepared in accordance with
GAAP.
Safe Harbor Statement
It is currently expected that the Business Outlook will not be
updated until the release of Changyou's next quarterly earnings
announcement; however, Changyou reserves the right to update its
Business Outlook at any time for any reason.
This announcement contains forward-looking statements.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. These statements are based on current plans, estimates
and projections, and therefore you should not place undue reliance
on them. Forward-looking statements involve inherent risks and
uncertainties. The Company cautions that a number of important
factors could cause actual results to differ materially from those
contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, continuing
volatility in global financial and credit markets and its potential
impact on the Chinese economy; exchange rate fluctuations in
general and possible continued valuation of the RMB in particular,
including their potential impact on the Chinese economy and on the
Company's reported U.S. dollar results; slowing growth in the
Chinese economy; the uncertain regulatory landscape in the People's Republic of China; fluctuations
in Changyou's quarterly operating results; the possibility that
Changyou will be unable to develop a series of successful games for
mobile platforms or successfully monetize mobile games it develops
or acquires; the possibility that the Company's margins will
decline as a result of the need for revenue-sharing with mobile
game platform operators; and the Company's reliance on TLBB as its
major revenue source. Further information regarding these and other
risks is included in Changyou's Annual Report on Form 20-F filed on
February 27, 2017, and other filings
with the Securities and Exchange Commission.
Conference Call Information
Changyou's management team will host an earnings conference call
today at 7 a.m. U.S. Eastern Time,
July 31, 2017 (7 p.m. Beijing/Hong
Kong, July 31, 2017).
The dial-in details for the live conference call are:
US:
|
888-394-8218
|
Hong Kong:
|
800-961-105
|
China
Mainland:
|
400-1209-101
|
International:
|
+1-323-794-2130
|
Passcode:
|
CYOU
|
Please dial in 10 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 at 10: 00 a.m. Eastern Time on
July 31, 2017 through August 6, 2017. The dial-in details for the
telephone replay are:
International:
|
+1-719-457-0820
|
Passcode:
|
1546920
|
The live Webcast and archive of the conference call will be
available on the Investor Relations section of Changyou's Website
at http://ir.changyou.com/.
About Changyou
Changyou.com Limited (NASDAQ: CYOU) is a leading developer and
operator of online games in China
with a diverse portfolio of popular online games , such as
Tian Long Ba Bu ("TLBB"), one of the
most popular PC games in China, as
well as a number of mobile games. Changyou also owns and operates
the 17173.com Website, a leading game information portal in
China. Changyou began operations
as a business unit within Sohu.com Inc. (NASDAQ: SOHU) in 2003, and
was carved out as a separate, stand-alone company in December 2007. It completed an initial public
offering on April 7, 2009. Changyou
has an advanced technology platform that includes advanced 2.5D and
3D graphics engines, a uniform game development platform, effective
anti-cheating and anti-hacking technologies, proprietary
cross-networking technology and advanced data protection
technology. For more information, please visit
http://ir.changyou.com.
For investor and media inquiries, please contact:
In China:
Ms. Margaret Shi
Investor Relations
Tel: +86 (10) 6192-0800
E-mail: ir@cyou-inc.com
In the United
States:
Ms. Linda Bergkamp
Christensen
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
CHANGYOU.COM
LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(UNAUDITED, IN
THOUSANDS EXCEPT PER ADS AMOUNTS)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Jun. 30,
2017
|
|
Mar. 31,
2017
|
|
Jun. 30,
2016
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Online
game
|
$
|
122,398
|
$
|
85,325
|
$
|
99,226
|
|
Online
advertising
|
|
7,076
|
|
5,854
|
|
11,541
|
|
Cinema
advertising
|
|
17,360
|
|
24,600
|
|
13,549
|
|
IVAS
|
|
3,527
|
|
4,091
|
|
4,844
|
|
Total revenue
|
|
150,361
|
|
119,870
|
|
129,160
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Online
game (includes share-based compensation expense
of
$44, $24, and $17 respectively)
|
|
11,612
|
|
16,505
|
|
25,383
|
|
Online
advertising
|
|
1,705
|
|
1,620
|
|
2,370
|
|
Cinema
advertising
|
|
19,627
|
|
18,203
|
|
11,017
|
|
IVAS
|
|
2,078
|
|
2,784
|
|
3,114
|
|
Total cost of
revenue
|
|
35,022
|
|
39,112
|
|
41,884
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
115,339
|
|
80,758
|
|
87,276
|
|
|
|
|
|
|
|
|
|
Operating
expense:
|
|
|
|
|
|
|
|
Product development
(includes share-based
compensation expense of $3,500,
$2,004, and $1,334 respectively)
|
|
35,726
|
|
26,408
|
|
31,112
|
|
Sales and marketing
(includes share-based
compensation expense of $719,
$401, and
$299 respectively)
|
|
12,501
|
|
10,937
|
|
13,353
|
|
General and
administrative (includes share-based
compensation expense of
$5,219, $3,104, and
$1,762
respectively)
|
|
13,606
|
|
11,895
|
|
13,668
|
|
Total
operating expense
|
|
61,833
|
|
49,240
|
|
58,133
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
53,506
|
|
31,518
|
|
29,143
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
7,106
|
|
5,343
|
|
3,233
|
|
Foreign currency
exchange (loss)/gain
|
|
(1,558)
|
|
(742)
|
|
2,450
|
|
Other income,
net
|
|
2,586
|
|
2,267
|
|
3,522
|
|
Income before
income tax expense
|
|
61,640
|
|
38,386
|
|
38,348
|
|
Income tax
expense
|
|
(10,060)
|
|
(8,425)
|
|
(5,012)
|
|
Net
income
|
|
51,580
|
|
29,961
|
|
33,336
|
|
Less: Net income
attributable to non-controlling interests
|
|
36
|
|
103
|
|
402
|
|
Net income
attributable to Changyou.com Limited
|
$
|
51,544
|
$
|
29,858
|
$
|
32,934
|
|
|
|
|
|
|
|
|
|
Basic net income
attributable to Changyou.com Limited per ADS
|
$
|
0.98
|
$
|
0.57
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
ADSs used in
computing basic net income attributable to
Changyou.com Limited per ADS
|
|
52,607
|
|
52,380
|
|
52,254
|
|
|
|
|
|
|
|
|
|
Diluted net income
attributable to Changyou.com Limited per
ADS
|
$
|
0.96
|
$
|
0.56
|
$
|
0.62
|
|
|
|
|
|
|
|
|
|
ADSs used in
computing diluted net income attributable to
Changyou.com Limited per ADS
|
|
53,480
|
|
53,435
|
|
53,113
|
|
|
|
|
|
|
|
|
|
CHANGYOU.COM
LIMITED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED, IN
THOUSANDS)
|
|
|
|
|
|
|
|
As of Jun. 30,
2017
|
|
As of Dec. 31,
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
518,439
|
$
|
597,188
|
Accounts receivable,
net
|
|
94,119
|
|
47,150
|
Short-term
investments
|
|
301,442
|
|
233,491
|
Prepaid and other
current assets
|
|
604,437
|
|
484,995
|
Assets held for
sale6
|
|
-
|
|
103,079
|
Total current
assets
|
|
1,518,437
|
|
1,465,903
|
Non-current
assets:
|
|
|
|
|
Fixed assets,
net
|
|
188,937
|
|
189,770
|
Goodwill6
|
|
110,363
|
|
26,502
|
Intangible assets,
net
|
|
14,200
|
|
12,335
|
Deferred tax
assets
|
|
7,724
|
|
7,952
|
Other assets,
net
|
|
6,694
|
|
5,575
|
Total non-current
assets
|
|
327,918
|
|
242,134
|
TOTAL
ASSETS
|
$
|
1,846,355
|
$
|
1,708,037
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Receipts in advance
and deferred revenue
|
$
|
42,461
|
$
|
43,541
|
Accounts payable and
accrued liabilities
|
|
472,777
|
|
460,674
|
Tax
payables
|
|
14,904
|
|
8,381
|
Liabilities held for
sale6
|
|
-
|
|
3,902
|
Total current
Liabilities
|
|
530,142
|
|
516,498
|
Long-term
liabilities:
|
|
|
|
|
Long-term deferred tax
liabilities
|
|
31,556
|
|
29,336
|
Long-term tax
payable
|
|
13,613
|
|
13,295
|
Other long-term
liabilities
|
|
1,060
|
|
744
|
Total
long-term liabilities
|
|
46,229
|
|
43,375
|
Total
liabilities
|
|
576,371
|
|
559,873
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Changyou.com Limited
shareholders' equity
|
|
1,239,517
|
|
1,117,767
|
Non-controlling
interests
|
|
30,467
|
|
30,397
|
Total
shareholders' equity
|
|
1,269,984
|
|
1,148,164
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
|
1,846,355
|
$
|
1,708,037
|
|
|
|
|
|
6 In the
third quarter of 2016, the Company's management had an intention to
divest the Company's interest in MoboTap. Therefore, the assets and
liabilities of MoboTap were recognized as assets-held-for-sale and
liabilities-held-for-sale, respectively, in the Company's financial
statements for the third and fourth quarters of 2016. In the
first quarter of 2017, due to the suspension of negotiations with
the potential buyers of MoboTap, the Company's management
determined that the disposal is unlikely to be completed within one
year. As a result, the assets-held-for-sale and
liabilities-held-for-sale related to MoboTap have been reclassified
as assets and liabilities, in the Company's balance sheet as of
June 30, 2017.
|
CHANGYOU.COM
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
|
(UNAUDITED, IN
THOUSANDS, EXCEPT PER ADS AMOUNTS)
|
|
|
|
|
|
Three Months Ended
Jun. 30, 2017
|
|
|
|
|
Non-GAAP
adjustments
|
|
|
|
|
GAAP
|
|
Share-based
compensation expense (a)
|
|
Non-GAAP
|
Online game gross
profit
|
$
|
110,786
|
|
44
|
|
110,830
|
Online advertising
gross profit
|
|
5,371
|
|
0
|
|
5,371
|
Cinema advertising
gross loss
|
|
(2,267)
|
|
0
|
|
(2,267)
|
IVAS gross
profit
|
|
1,449
|
|
0
|
|
1,449
|
Gross
profit
|
$
|
115,339
|
|
44
|
|
115,383
|
Gross
margin
|
|
77%
|
|
|
|
77%
|
Operating
expense
|
|
61,833
|
|
(9,438)
|
|
52,395
|
Operating
profit
|
$
|
53,506
|
|
9,482
|
|
62,988
|
Operating
margin
|
|
36%
|
|
|
|
42%
|
|
|
|
|
|
|
|
Income tax
expense
|
|
10,060
|
|
0
|
|
10,060
|
Net income
|
$
|
51,580
|
|
9,482
|
|
61,062
|
Less: Net income
attributable to non-controlling interests
|
|
36
|
|
3
|
|
39
|
Net income
attributable to Changyou.com Limited
|
$
|
51,544
|
|
9,479
|
|
61,023
|
Net margin attributable
to Changyou.com Limited
|
|
34%
|
|
|
|
41%
|
Diluted net income
attributable to Changyou.com Limited per ADS
|
$
|
0.96
|
|
|
|
1.14
|
ADSs used in
computing diluted net income attributable to
Changyou.com Limited per ADS
|
|
53,480
|
|
|
|
53,749
|
CHANGYOU.COM
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
|
(UNAUDITED, IN
THOUSANDS, EXCEPT PER ADS AMOUNTS)
|
|
|
|
|
|
Three Months Ended
Mar. 31, 2017
|
|
|
|
|
Non-GAAP
adjustments
|
|
|
|
|
GAAP
|
|
Share-based
compensation expense (a)
|
|
Non-GAAP
|
Online game gross
profit
|
$
|
68,820
|
|
24
|
|
68,844
|
Online advertising
gross profit
|
|
4,234
|
|
0
|
|
4,234
|
Cinema advertising
gross profit
|
|
6,397
|
|
0
|
|
6,397
|
IVAS gross
profit
|
|
1,307
|
|
0
|
|
1,307
|
Gross
profit
|
$
|
80,758
|
|
24
|
|
80,782
|
Gross
margin
|
|
67%
|
|
|
|
67%
|
Operating
expense
|
|
49,240
|
|
(5,509)
|
|
43,731
|
Operating
profit
|
$
|
31,518
|
|
5,533
|
|
37,051
|
Operating
margin
|
|
26%
|
|
|
|
31%
|
|
|
|
|
|
|
|
Income tax
expense
|
|
8,425
|
|
0
|
|
8,425
|
Net income
|
$
|
29,961
|
|
5,533
|
|
35,494
|
Less: Net income
attributable to non-controlling interests
|
|
103
|
|
3
|
|
106
|
Net income
attributable to Changyou.com Limited
|
$
|
29,858
|
|
5,530
|
|
35,388
|
Net margin attributable
to Changyou.com Limited
|
|
25%
|
|
|
|
30%
|
Diluted net income
attributable to Changyou.com Limited per ADS
|
$
|
0.56
|
|
|
|
0.66
|
ADSs used in
computing diluted net income attributable to
Changyou.com Limited per ADS
|
|
53,435
|
|
|
|
53,771
|
CHANGYOU.COM
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
|
(UNAUDITED, IN
THOUSANDS, EXCEPT PER ADS AMOUNTS)
|
|
|
|
|
|
Three Months Ended
Jun. 30, 2016
|
|
|
|
|
Non-GAAP
adjustments
|
|
|
|
|
GAAP
|
|
Share-based
compensation expense (a)
|
|
Non-GAAP
|
Online game gross
profit
|
$
|
73,843
|
|
17
|
|
73,860
|
Online advertising
gross profit
|
|
9,171
|
|
0
|
|
9,171
|
Cinema advertising
gross profit
|
|
2,532
|
|
0
|
|
2,532
|
IVAS gross
profit
|
|
1,730
|
|
0
|
|
1,730
|
Gross
profit
|
$
|
87,276
|
|
17
|
|
87,293
|
Gross
margin
|
|
68%
|
|
|
|
68%
|
Operating
expense
|
|
58,133
|
|
(3,395)
|
|
54,738
|
Operating
profit
|
$
|
29,143
|
|
3,412
|
|
32,555
|
Operating
margin
|
|
23%
|
|
|
|
25%
|
|
|
|
|
|
|
|
Income tax
expense
|
|
5,012
|
|
0
|
|
5,012
|
Net income
|
$
|
33,336
|
|
3,412
|
|
36,748
|
Less: Net income
attributable to non-controlling interests
|
|
402
|
|
8
|
|
410
|
Net income
attributable to Changyou.com Limited
|
$
|
32,934
|
|
3,404
|
|
36,338
|
Net margin attributable
to Changyou.com Limited
|
|
25%
|
|
|
|
28%
|
Diluted net income
attributable to Changyou.com Limited per ADS
|
$
|
0.62
|
|
|
|
0.68
|
ADSs used in
computing diluted net income attributable to
Changyou.com Limited per ADS
|
|
53,113
|
|
|
|
53,759
|
View original
content:http://www.prnewswire.com/news-releases/changyou-reports-second-quarter-2017-unaudited-financial-results-300496407.html
SOURCE Changyou.com Limited