4Q13 Net Revenues Up 129.5% YOY to RMB612.3
Million
4Q13 Net Income Up 477.9% YOY to RMB192.0
Million
4Q13 Non-GAAP Net Income Up 268.7% YOY to
RMB216.9 Million
YY Inc. (Nasdaq:YY) ("YY" or the "Company"), a revolutionary
real-time interactive social platform, today announced its
unaudited financial results for the fourth quarter and full year
ended December 31, 2013.
Fourth Quarter 2013
Highlights
- Net revenues increased by 129.5% to RMB612.3 million (US$101.1
million) from RMB266.8 million in the corresponding period of 2012,
primarily driven by a 144.1% increase in revenues from internet
value-added services, or IVAS revenues.
- Net income attributable to YY Inc. increased by 477.9% to
RMB192.0 million (US$31.7 million) from RMB33.2 million in the
corresponding period of 2012.
- Non-GAAP net income attributable to YY Inc.1 increased by
268.7% to RMB216.9 million (US$35.8 million) from RMB58.8 million
in the corresponding period of 2012.
Full Year 2013 Highlights
- Net revenues increased by 122.4% to RMB1.8 billion (US$301.2
million) in 2013 from RMB820.0 million in 2012, primarily driven by
a 136.4% increase in revenues from internet value-added services,
or IVAS revenues.
- Net income attributable to YY Inc. increased by 435.7% to
RMB477.7 million (US$78.9 million) in 2013 from RMB89.2 million in
2012.
- Non-GAAP net income attributable to YY Inc. increased by 213.8%
to RMB594.8 million (US$98.3 million) in 2013 from RMB189.5 million
in 2012.
Mr. David Xueling Li, Chief Executive Officer of YY, stated,
"We're very pleased to end our first full fiscal year as a public
company with a solid fourth quarter, building upon the strong
momentum we saw throughout 2013. Online music and entertainment2,
in particular, again outperformed our expectations, with revenues
growing by 217.1% year over year. Resulting from the powerful
real-time interactive and social capabilities of our unique
platform, we have seen increasingly diversified and interactive
online activities among our expanding base of active users, with
our average monthly active users reaching 92.3 million in the
fourth quarter of 2013. Through a series of engaging and
diversified group entertainment events and activities, such as our
2013 Annual Entertainment Awards Ceremony, we were able to not only
stimulate user engagement and spending, but also enhance user
attachment to our platform. Heading into 2014, we're excited to
build upon the robust foundation we have established and continue
to broaden our ability to engage our users and monetize our user
traffic by further penetrating into online entertainment, live
broadcasting, education and other verticals. We are proud of our
evolution into a large, live and sticky online entertainment
platform and aim to further enable services which cater to Chinese
users' dynamic and ever-changing demands."
Mr. Eric He, Chief Financial Officer of YY, commented, "In the
fourth quarter, not only we were able to exceed our expectations on
both the top and bottom line growth, but we also further increased
our profitability with non-GAAP net margin expanding to 35.4% from
22.0% a year ago. These results were driven by the greater
operating leverage of our platform, which has increasingly been
able to attract and engage massive audiences in a cost-effective
manner through viral online marketing as well as self-promotions by
performers and channel owners within our platform. We believe that
YY has significant potential to become an even more powerful,
pervasive and profitable platform through the ongoing
diversification and expansion of our entertainment and education
services."
Fourth Quarter 2013 Financial Results
NET REVENUES
Net revenues increased by 129.5% to RMB612.3 million (US$101.1
million) in the fourth quarter of 2013 from RMB266.8 million in the
corresponding period of 2012, primarily driven by an increase in
IVAS revenues and, to a lesser extent, an increase in the Company's
online advertising revenues.
IVAS revenues, which consisted of revenues from online music and
entertainment, online games, as well as other sources including the
Company's membership program and live game broadcasting, increased
by 144.1% to RMB568.9 million (US$94.0 million) in the fourth
quarter of 2013 from RMB233.0 million in the corresponding period
of 2012. The overall increase primarily reflected an increase in
the number of paying users and an increase in average revenue per
user ("ARPU").
Revenues from online music and entertainment, increased by
217.1% to RMB336.6 million (US$55.6 million) in the fourth quarter
of 2013 from RMB106.1 million in the corresponding period of 2012.
This increase primarily reflected a 165.3% increase in the number
of paying users to 902,000 with a 19.6% increase in ARPU to RMB373
during the fourth quarter of 2013.
Revenues from online games increased by 66.1% to RMB162.8
million (US$26.9 million) in the fourth quarter of 2013 from
RMB98.0 million in the corresponding period of 2012. This increase
primarily reflected a year-over-year increase in ARPU of 41.4% to
RMB376 and a 17.7% increase in the number of paying users to
433,000. The number of online games operated by the Company
increased to 126 as of December 31, 2013 from 73 as of December 31,
2012.
Revenues from others, which primarily consist of the Company's
membership program and live game broadcasting, increased by 140.9%
to RMB69.5 million (US$11.5 million) in the fourth quarter of 2013
from RMB28.8 million in the corresponding period of 2012. Revenues
from the membership program increased by 72.4% to RMB44.5 million
(US$7.4 million) in the fourth quarter of 2013 from RMB25.8 million
in the corresponding period of 2012. This increase primarily
reflected a 64.8% increase in the number of members to 837,000 as
of December 31, 2013 from 508,000 as of December 31, 2012. Revenues
from live game broadcasting increased significantly to RMB20.6
million (US$3.4 million) in the fourth quarter of 2013 from RMB0.7
million in the corresponding period of 2012.
Online advertising revenues increased by 28.5% to RMB43.4
million (US$7.2 million) in the fourth quarter of 2013 from RMB33.8
million in the corresponding period of 2012. This increase
reflected an increase in the total number of advertisers of 50.8%
to 92 with an average revenue per advertiser ("ARPA") of
approximately RMB472,000.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 113.6% to RMB296.8 million
(US$49.0 million) in the fourth quarter of 2013 from RMB138.9
million in the corresponding period of 2012. This increase was
primarily attributable to an increase in revenue-sharing fees and
content costs to RMB165.1 million (US$27.3 million) in the fourth
quarter of 2013 from RMB47.1 million in the corresponding period of
2012. This increase in revenue-sharing fees and content costs paid
to performers, channel owners and content providers was primarily
due to higher levels of user engagement and spending. In addition,
bandwidth costs increased to RMB59.7 million (US$9.9 million) in
the fourth quarter of 2013 from RMB42.4 million in the
corresponding period of 2012.
Gross profit increased by 146.7% to RMB315.5 million (US$52.1
million) in the fourth quarter of 2013 from RMB127.9 million in the
corresponding period of 2012. Gross margin increased to 51.5% in
the fourth quarter of 2013 from 47.9% in the corresponding period
of 2012. The increase in gross margin was mainly attributable to
the improved cost efficiency due to the scale effect of the
Company's growth as well as the Company's ability to control
bandwidth costs.
OPERATING INCOME
Operating expenses for the fourth quarter of 2013 increased by
37.0% to RMB128.5 million (US$21.2 million) from RMB93.8 million in
the corresponding period of 2012. This increase was primarily
attributable to higher research and development expenses and
general and administrative expenses which were associated with the
general growth of the Company's overall business.
Operating income in the fourth quarter of 2013 increased by
453.4% to RMB194.9 million (US$32.2 million) from RMB35.2 million
in the corresponding period of 2012. Operating margin increased to
31.8% in the fourth quarter of 2013 from 13.2% in the corresponding
period of 2012. The increase in operating margin was primarily due
to increased operating leverage associated with the Company's
expansion.
Non-GAAP operating income3 increased by 261.4% to RMB219.8
million (US$36.3 million) in the fourth quarter of 2013 from
RMB60.8 million in the corresponding period of 2012. Non-GAAP
operating margin4 increased to 35.9% in the fourth quarter of 2013
from 22.8% in the corresponding period of 2012.
NET INCOME
Net income attributable to YY Inc. increased by 477.9% to
RMB192.0 million (US$31.7 million) in the fourth quarter of 2013,
from RMB33.2 million in the corresponding period of 2012. Net
margin in the fourth quarter of 2013 increased to 31.4% from 12.5%
in the corresponding period of 2012. Non-GAAP net income
attributable to YY Inc.5 increased by 268.7% to RMB216.9 million
(US$35.8 million) from RMB58.8 million in the corresponding period
of 2012. Non-GAAP net margin6 increased to 35.4% in the fourth
quarter of 2013 from 22.0% in the corresponding period of 2012.
NET INCOME PER ADS
Diluted net income per ADS7 in the fourth quarter of 2013
increased by 409.5% to RMB3.21 (US$0.53), from RMB0.63 in the
corresponding period of 2012.
Non-GAAP diluted net income per ADS8 in the fourth quarter of
2013 increased by 224.1% to RMB3.63 (US$0.60), from RMB1.12 in the
corresponding period of 2012.
BALANCE SHEET AND CASH FLOWS
As of December 31, 2013, the Company had cash and cash
equivalents of RMB729.6 million (US$120.5 million) and short-term
deposits of RMB1.4 billion (US$236.7 million). For the fourth
quarter of 2013, net cash from operating activities was RMB358.4
million (US$59.2 million).
SHARES OUTSTANDING
As of December 31, 2013, the Company had a total of 1.1 billion
common shares outstanding, or the equivalent of 55.4 million ADSs
outstanding.
Full Year 2013 Financial Results
For the full year of 2013, net revenues increased by 122.4% to
RMB1.8 billion (US$301.2 million) from RMB820.0 million in 2012,
primarily driven by a 136.4% increase in revenues from IVAS
revenues.
Net income attributable to YY Inc. for the full year of 2013
increased by 435.7% to RMB477.7 million (US$78.9 million) from
RMB89.2 million in 2012. Net margin for the full year of 2013
increased to 26.2% from 10.9% in 2012.
Non-GAAP net income attributable to YY Inc. for the full year of
2013 increased by 213.8% to RMB594.8 million (US$98.3 million) from
RMB189.5 million in 2012. Non-GAAP net margin increased to 32.6%
for the full year of 2013 from 23.1% in 2012.
Diluted net income per ADS for the full year 2013 increased to
RMB8.09 (US$1.34) from RMB1.80 in the prior year. Non-GAAP diluted
net income per ADS increased to RMB10.07 (US$1.66) from RMB3.82 in
the prior year.
For the full year 2013, net cash from operating activities was
RMB891.2 million (US$147.2 million).
Business Outlook
For the first quarter of 2014, the Company expects its net
revenues to be between RMB625 million and RMB635 million,
representing a year-over-year growth of approximately 98% to 102%.
These forecasts reflect the Company's current and preliminary view
on the market and operational conditions, which are subject to
change.
Conference Call Information
The Company will hold a conference call on Tuesday, March 4,
2014 at 8:00 pm Eastern Time or Wednesday, March 5, 2014 at 9:00 am
Beijing Time to discuss the financial results. Participants may
access the call by dialing the following numbers:
United States: +1-845-675-0438 |
International Toll Free: +1-855-500-8701 |
China Domestic: 400-1200654 |
Hong Kong: +852-3051-2745 |
Conference ID: #59548573 |
|
The replay will be accessible through March
11, 2014 by dialing the following numbers: |
United States Toll Free: +1-855-452-5696 |
International: +61-2-8199-0299 |
Conference ID: #59548573 |
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://investors.yy.com/.
Exchange Rate
This press release contains translations of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars, in this press release, were made at
a rate of RMB6.0537 to US$1.00, the noon buying rate in effect on
December 31, 2013 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
About YY Inc.
YY Inc. ("YY" or the "Company") is a revolutionary real-time
interactive social platform that engages users in real-time online
group activities through voice, text and video. Launched in July
2008, YY Client, the Company's core product, empowers users to
create and organize groups of varying sizes to discover and
participate in a wide range of online activities, including online
games, karaoke, music concerts, education, live shows and
conference calls.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as YY's strategic and operational plans,
contain forward-looking statements. YY may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission ("SEC"), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about YY's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: YY's goals
and strategies; YY's future business development, results of
operations and financial condition; the expected growth of the
online communication social platform market in China; the
expectation regarding the rate at which to gain registered user
accounts, active users, especially paying users; YY's ability to
monetize the user base; YY's ability to continue attracting
advertisers and offering popular online games; fluctuations in
general economic and business conditions in China and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in YY's filings with
the SEC. All information provided in this press release and in the
attachments is as of the date of this press release, and YY does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is
prepared in conformity with accounting principles generally
accepted in the United States of America ("U.S. GAAP"), except that
the consolidated statement of changes in shareholders' equity
(deficits), consolidated statements of cash flows, and the detailed
notes have not been presented. YY uses non-GAAP operating income,
non-GAAP operating margin, non-GAAP net income attributable to YY
Inc., non-GAAP net margin, non-GAAP net income
(loss) attributable to common shareholders, and basic and diluted
non-GAAP net income(loss) per ADS, which are non-GAAP financial
measures. Non-GAAP operating income is operating income excluding
share-based compensation expenses. Non-GAAP operating margin is
non-GAAP operating income as a percentage of net revenues. Non-GAAP
net income (loss) attributable to YY Inc. is net income (loss)
attributable to YY Inc. excluding share-based compensation
expenses. Non-GAAP net margin is non-GAAP net income attributable
to YY Inc. as a percentage of net revenues. Non-GAAP net income
(loss) attributable to common shareholders is net income (loss)
attributable to common shareholders excluding share-based
compensation expenses. Basic and diluted non-GAAP net income (loss)
per ADS is non-GAAP net income (loss) attributable to common
shareholders divided by weighted average number of basic and
diluted ADS. The Company believes that separate analysis and
exclusion of the non-cash impact of share-based compensation adds
clarity to the constituent parts of its performance. The Company
reviews these non-GAAP financial measures together with GAAP
financial measures to obtain a better understanding of its
operating performance. It uses the non-GAAP financial measure for
planning, forecasting and measuring results against the forecast.
The Company believes that non-GAAP financial measure is useful
supplemental information for investors and analysts to assess its
operating performance without the effect of non-cash share-based
compensation expenses, which have been and will continue to be
significant recurring expenses in its business. However, the use of
non-GAAP financial measures has material limitations as an
analytical tool. One of the limitations of using non-GAAP financial
measures is that they do not include all items that impact the
Company's net income (loss) for the period. In addition, because
non-GAAP financial measures are not measured in the same manner by
all companies, they may not be comparable to other similar titled
measures used by other companies. In light of the foregoing
limitations, you should not consider non-GAAP financial measure in
isolation from or as an alternative to the financial measure
prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from, or as a substitute
for, the financial information prepared and presented in accordance
with U.S. GAAP. For more information on these non-GAAP financial
measures, please see the table captioned "YY Inc. Reconciliations
of GAAP and Non-GAAP Results" at the end of this release.
1 Non-GAAP net income attributable to YY Inc. is a
non-GAAP financial measure, which is defined as net income
attributable to YY Inc. excluding share-based compensation
expenses.
2 The Company renamed the YY Music segment 'online
music and entertainment' in order to better reflect users'
increasingly diverse online entertainment activities on the
Company's platform.
3 Non-GAAP operating income is a non-GAAP financial
measure, which is defined as operating income excluding share-based
compensation expenses.
4 Non-GAAP operating margin is a non-GAAP financial
measure, which is defined as non-GAAP operating income as a
percentage of net revenues.
5 Non-GAAP net income attributable to YY Inc. is a
non-GAAP financial measure, which is defined as net income
attributable to YY Inc. excluding share-based compensation
expenses.
6 Non-GAAP net margin is a non-GAAP financial measure,
which is defined as non-GAAP net income attributable to YY Inc. as
a percentage of net revenues.
7 ADS is American Depositary Share. Each ADS
represents twenty Class A common shares of the Company. Diluted net
income (loss) per ADS is net income (loss) attributable to common
shareholders divided by weighted average number of diluted ADS.
8 Non-GAAP diluted net income (loss) per ADS is a
non-GAAP financial measure, which is defined as non-GAAP net income
(loss) attributable to common shareholders divided by weighted
average number of diluted ADS.
YY INC. |
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS |
(All amounts in thousands,
except share, ADS and per ADS data) |
|
|
|
|
|
December 31, |
December 31, |
December 31, |
|
2012 |
2013 |
2013 |
|
RMB |
RMB |
US$ |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
504,702 |
729,598 |
120,521 |
Short-term deposits |
897,698 |
1,432,863 |
236,692 |
Accounts receivable, net |
117,616 |
100,101 |
16,536 |
Amount due from a related
party |
1,073 |
73 |
12 |
Prepayments and other current
assets |
25,149 |
67,533 |
11,156 |
Deferred tax assets |
31,549 |
66,921 |
11,055 |
|
|
|
|
Total current assets |
1,577,787 |
2,397,089 |
395,972 |
|
|
|
|
Non-current assets |
|
|
|
Deferred tax assets |
583 |
625 |
103 |
Investments |
2,950 |
62,029 |
10,246 |
Property and equipment,
net |
90,299 |
102,636 |
16,954 |
Intangible assets, net |
19,481 |
29,127 |
4,811 |
Goodwill |
1,604 |
1,577 |
261 |
Other non-current assets |
3,485 |
4,864 |
803 |
|
|
|
|
Total non-current
assets |
118,402 |
200,858 |
33,178 |
|
|
|
|
Total assets |
1,696,189 |
2,597,947 |
429,150 |
|
|
|
|
Liabilities and shareholders'
equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
28,149 |
56,391 |
9,315 |
Deferred revenue |
159,859 |
293,866 |
48,543 |
Advances from customers |
7,515 |
19,549 |
3,229 |
Income taxes payable |
48,001 |
78,107 |
12,902 |
Accrued liabilities and other
current liabilities |
120,289 |
250,760 |
41,423 |
Amounts due to related
parties |
2,604 |
2,640 |
436 |
|
|
|
|
Total current
liabilities |
366,417 |
701,313 |
115,848 |
|
|
|
|
Non-current liabilities |
|
|
|
Deferred revenue |
6,487 |
9,425 |
1,557 |
|
|
|
|
Total liabilities |
372,904 |
710,738 |
117,405 |
|
|
|
|
|
|
|
|
YY INC. |
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (CONTINUED) |
(All amounts in thousands,
except share, ADS and per ADS data) |
|
|
|
|
|
December 31, |
December 31, |
December 31, |
|
2012 |
2013 |
2013 |
|
RMB |
RMB |
US$ |
Shareholders' equity |
|
|
|
Class A common shares (US$0.00001 par value;
10,000,000,000 shares authorized, 179,400,000 shares issued and
outstanding as of December 31, 2012 and 622,658,738 shares
issued and outstanding as of December 31, 2013) |
11 |
38 |
6 |
Class B common shares (US$0.00001 par value;
1,000,000,000shares authorized, 907,833,224 shares issued and
outstanding as of December 31, 2012 and 485,831,386 shares
issued and outstanding as of December 31, 2013) |
60 |
34 |
6 |
Additional paid-in capital |
2,648,404 |
2,765,614 |
456,847 |
Statutory reserves |
— |
40,657 |
6,716 |
Accumulated deficits |
(1,311,767) |
(874,697) |
(144,490) |
Accumulated other comprehensive losses |
(13,423) |
(44,437) |
(7,340) |
|
|
|
|
Total shareholders'
equity |
1,323,285 |
1,887,209 |
311,745 |
|
|
|
|
Total liabilities and shareholders'
equity |
1,696,189 |
2,597,947 |
429,150 |
|
|
|
|
|
|
|
|
YY INC. |
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME |
(All amounts in thousands,
except share, ADS and per ADS data) |
|
|
|
|
|
|
|
|
|
Three
Months Ended |
Twelve Months Ended |
|
December |
September |
December |
December |
December |
December |
December |
|
31, |
30, |
31, |
31, |
31, |
31, |
31, |
|
2012 |
2013 |
2013 |
2013 |
2012 |
2013 |
2013 |
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
Internet value-added service |
|
|
|
|
|
|
|
—Online music and
entertainment |
106,145 |
228,906 |
336,590 |
55,601 |
286,446 |
852,885 |
140,887 |
—Online games |
98,048 |
154,529 |
162,827 |
26,897 |
332,287 |
602,111 |
99,462 |
—Others |
28,830 |
58,383 |
69,458 |
11,474 |
83,655 |
205,212 |
33,899 |
Online advertising |
33,803 |
45,337 |
43,433 |
7,175 |
117,643 |
163,260 |
26,969 |
|
|
|
|
|
|
|
|
Total net revenue |
266,826 |
487,155 |
612,308 |
101,147 |
820,031 |
1,823,468 |
301,217 |
|
|
|
|
|
|
|
|
Cost of revenues(1) |
(138,939) |
(248,553) |
(296,811) |
(49,030) |
(416,133) |
(881,999) |
(145,696) |
|
|
|
|
|
|
|
|
Gross profit |
127,887 |
238,602 |
315,497 |
52,117 |
403,898 |
941,469 |
155,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses(1) |
|
|
|
|
|
|
|
Research and development expenses |
(54,122) |
(67,148) |
(75,139) |
(12,412) |
(176,725) |
(267,005) |
(44,106) |
Sales and marketing expenses |
(5,961) |
(7,502) |
(4,211) |
(696) |
(16,954) |
(24,955) |
(4,122) |
General and administrative expenses |
(33,741) |
(46,663) |
(49,197) |
(8,127) |
(109,788) |
(200,554) |
(33,129) |
|
|
|
|
|
|
|
|
Total operating
expenses |
(93,824) |
(121,313) |
(128,547) |
(21,235) |
(303,467) |
(492,514) |
(81,357) |
Other income |
1,161 |
16,766 |
7,971 |
1,317 |
2,465 |
27,078 |
4,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
35,224 |
134,055 |
194,921 |
32,199 |
102,896 |
476,033 |
78,637 |
|
|
|
|
|
|
|
|
Gain on disposal of an equity investment |
— |
— |
— |
— |
651 |
— |
— |
Gain on disposal of a cost investment |
2,351 |
— |
— |
— |
2,351 |
— |
— |
Foreign currency exchange (losses) gains,
net |
(1,164) |
5,500 |
7,806 |
1,289 |
(4,153) |
29,555 |
4,882 |
Interest income |
5,789 |
16,542 |
19,540 |
3,228 |
16,316 |
60,221 |
9,948 |
|
|
|
|
|
|
|
|
Income before income tax
expenses |
42,200 |
156,097 |
222,267 |
36,716 |
118,061 |
565,809 |
93,467 |
|
|
|
|
|
|
|
|
Income tax expenses |
(9,107) |
(27,719) |
(30,830) |
(5,093) |
(29,041) |
(89,951) |
(14,859) |
|
|
|
|
|
|
|
|
Income before share of income in
equity method investments, net of income taxes |
33,093 |
128,378 |
191,437 |
31,623 |
89,020 |
475,858 |
78,608 |
|
|
|
|
|
|
|
|
Share of income in equity method investments,
net of income taxes |
134 |
586 |
579 |
96 |
157 |
1,869 |
309 |
|
|
|
|
|
|
|
|
Net income attributable to YY
Inc. |
33,227 |
128,964 |
192,016 |
31,719 |
89,177 |
477,727 |
78,917 |
|
|
|
|
|
|
|
|
Decretion to convertible redeemable preferred
shares redemption value |
1,408,888 |
— |
— |
— |
1,293,875 |
— |
— |
|
|
|
|
|
|
|
|
Allocation of net income to participating
preferred shareholders |
(294,984) |
— |
— |
— |
(478,754) |
— |
— |
|
|
|
|
|
|
|
|
Net income attributable to common
shareholders |
1,147,131 |
128,964 |
192,016 |
31,719 |
904,298 |
477,727 |
78,917 |
|
|
|
|
|
|
|
|
Net income |
33,227 |
128,964 |
192,016 |
31,719 |
89,177 |
477,727 |
78,917 |
|
|
|
|
|
|
|
|
Other comprehensive loss: |
|
|
|
|
|
|
|
Foreign currency translation adjustments, net
of nil tax |
(4,374) |
(5,678) |
(8,197) |
(1,354) |
(1,204) |
(31,014) |
(5,123) |
|
|
|
|
|
|
|
|
Comprehensive income attributable to
YY Inc. |
28,853 |
123,286 |
183,819 |
30,365 |
87,973 |
446,713 |
73,794 |
|
|
|
|
|
|
|
|
Net income per ADS |
|
|
|
|
|
|
|
—Basic |
29.04 |
2.29 |
3.40 |
0.56 |
29.91 |
8.51 |
1.41 |
—Diluted |
0.63 |
2.17 |
3.21 |
0.53 |
1.80 |
8.09 |
1.34 |
Weighted average number of ADS used in
calculating net income per ADS |
|
|
|
|
|
|
|
—Basic |
39,500,941 |
56,261,659 |
56,449,190 |
56,449,190 |
30,235,191 |
56,123,784 |
56,123,784 |
—Diluted |
52,473,054 |
59,546,765 |
59,802,052 |
59,802,052 |
49,623,442 |
59,056,065 |
59,056,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY INC. |
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(CONTINUED) |
(All amounts in thousands,
except share, ADS and per ADS data) |
|
|
|
|
|
|
|
|
(1) Share-based
compensation was allocated in cost of revenues and operating
expenses as follows: |
|
|
|
|
|
|
|
|
|
Three
Months Ended |
Twelve Months Ended |
|
December |
September |
December |
December |
December |
December |
December |
|
31, |
30, |
31, |
31, |
31, |
31, |
31, |
|
2012 |
2013 |
2013 |
2013 |
2012 |
2013 |
2013 |
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Cost of revenues |
2,092 |
3,191 |
3,242 |
536 |
8,407 |
9,860 |
1,629 |
Research and development expenses |
9,129 |
12,357 |
11,873 |
1,961 |
35,441 |
39,587 |
6,539 |
Sales and marketing expenses |
216 |
432 |
445 |
74 |
884 |
1,318 |
218 |
General and administrative expenses |
14,165 |
25,859 |
9,335 |
1,542 |
55,619 |
66,331 |
10,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY INC. |
Reconciliations of GAAP
and Non-GAAP Results |
(All amounts in thousands,
except share, ADS and per ADS data) |
|
|
|
|
|
|
|
|
|
Three
Months Ended |
Twelve Months Ended |
|
December |
September |
December |
December |
December |
December |
December |
|
31, |
30, |
31, |
31, |
31, |
31, |
31, |
|
2012 |
2013 |
2013 |
2013 |
2012 |
2013 |
2013 |
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Operating income |
35,224 |
134,055 |
194,921 |
32,199 |
102,896 |
476,033 |
78,637 |
Share-based compensation expenses |
25,602 |
41,839 |
24,895 |
4,113 |
100,351 |
117,096 |
19,343 |
|
|
|
|
|
|
|
|
Non-GAAP operating
income |
60,826 |
175,894 |
219,816 |
36,312 |
203,247 |
593,129 |
97,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to YY Inc. |
33,227 |
128,964 |
192,016 |
31,719 |
89,177 |
477,727 |
78,917 |
Share-based compensation expenses |
25,602 |
41,839 |
24,895 |
4,113 |
100,351 |
117,096 |
19,343 |
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to
YY Inc. |
58,829 |
170,803 |
216,911 |
35,832 |
189,528 |
594,823 |
98,260 |
|
|
|
|
|
|
|
|
Decretion to convertible redeemable preferred
shares redemption value |
1,408,888 |
— |
— |
— |
1,293,875 |
— |
— |
Allocation of Non-GAAP net income to
particiating preferred shareholders |
(300,221) |
— |
— |
— |
(513,492) |
— |
— |
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to
common shareholders |
1,167,496 |
170,803 |
216,911 |
35,832 |
969,911 |
594,823 |
98,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per
ADS |
|
|
|
|
|
|
|
—Basic |
29.56 |
3.04 |
3.84 |
0.63 |
32.08 |
10.60 |
1.75 |
—Diluted |
1.12 |
2.87 |
3.63 |
0.60 |
3.82 |
10.07 |
1.66 |
|
|
|
|
|
|
|
|
Weighted average number of ADS used in
calculating Non-GAAP net income per ADS |
|
|
|
|
|
|
|
—Basic |
39,500,941 |
56,261,659 |
56,449,190 |
56,449,190 |
30,235,191 |
56,123,784 |
56,123,784 |
—Diluted |
52,473,054 |
59,546,765 |
59,802,052 |
59,802,052 |
49,623,442 |
59,056,065 |
59,056,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: Investor Relations Contact
YY Inc.
Anna Yu
Tel: (+86) 2029162000
Email:IR@YY.com
ICR, Inc.
Jeremy Peruski
Tel: +1 (646) 915-1611
Email: IR@YY.com
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