BEIJING, Aug. 8, 2018 /PRNewswire/ -- SINA
Corporation (the "Company" or "SINA") (NASDAQ: SINA), a leading
online media company serving China
and the global Chinese communities, today announced its unaudited
financial results for the second quarter ended June 30, 2018.
"We had another good quarter." said Charles Chao, Chairman and CEO of SINA. "Weibo
continued to record healthy growth in both user base and
monetization despite more intensified competition." said Mr. Chao.
"For SINA businesses, we continued to see robust growth in user
scale of SINA mobile apps, which bodes well for improved mobile
monetization of SINA media." Mr. Chao added.
Second Quarter 2018 Highlights
- Both net revenues and non-GAAP net revenues increased 50%
year-over-year to $537.4 million and
$534.8 million, respectively.
- Advertising revenues increased 54% year-over-year to
$454.1 million.
- Non-advertising revenues increased 31% year-over-year to
$83.3 million. Non-GAAP
non-advertising revenues increased 32% year-over-year to
$80.7 million.
- Income from operations increased 44% year-over-year to
$136.2 million. Non-GAAP income from
operations increased 38% year-over-year to $159.1 million.
- Net income attributable to SINA was $35.1 million, or $0.47 for diluted net income per share
attributable to SINA's ordinary shareholders. Non-GAAP net income
attributable to SINA was $66.5
million, or $0.89 for non-GAAP
diluted net income per share attributable to SINA's ordinary
shareholders.
Second Quarter 2018 Financial Results
For the second quarter of 2018, SINA reported net revenues of
$537.4 million, an increase of 50%
compared to $358.9 million for the
same period last year. Non-GAAP net revenues for the second quarter
of 2018 were $534.8 million, an
increase of 50% compared to $356.3
million for the same period last year.
Advertising revenues for the second quarter of 2018 were
$454.1 million, an increase of 54%
compared to $295.2 million for the
same period last year, primarily driven by an increase of
$151.6 million, or 69% growth in
Weibo advertising and marketing revenues.
Non-advertising revenues for the second quarter of 2018 were
$83.3 million, an increase of 31%
compared to $63.8 million for the
same period last year. Non-GAAP non-advertising revenues for the
second quarter of 2018 were $80.7
million, an increase of 32% compared to $61.2 million for the same period last year,
benefiting from increased Weibo membership fees, revenue share from
live broadcasting business, and revenues derived from SINA fin-tech
businesses.
Gross margin for the second quarter of 2018 was 80%, compared to
74% for the same period last year. Advertising gross margin for the
second quarter of 2018 was 82%, compared to 76% for the same period
last year. The increase in advertising gross margin was mainly
resulted from our revenue reporting changed from gross basis to net
basis under the new accounting standard adopted. Non-advertising
gross margin for the second quarter of 2018 was 69%, compared to
68% for the same period last year.
Operating expenses for the second quarter of 2018 totaled
$294.7 million, compared to
$171.9 million for the same period
last year. Apart from the inclusion of marketing expense related to
barter transactions recorded under the new accounting standard as
illustrated below, the increase in operating expenses was primarily
attributable to the increase in sales and marketing expenses for
user acquisition of Weibo and SINA mobile apps, as well as the
increase in personal costs for product development. Non-GAAP
operating expenses for the second quarter of 2018 totaled
$272.1 million, compared to
$150.6 million for the same period
last year.
Income from operations for the second quarter of 2018 was
$136.2 million, an increase of 44%
compared to $94.7 million for the
same period last year. Operating margin was 25%, slightly down from
26% for the same period last year. Non-GAAP income from operations
for the second quarter of 2018 was $159.1
million, an increase of 38% compared to $115.5 million for the same period last year.
Non-GAAP operating margin was 30%, down from 32% for the same
period last year.
Non-operating income for the second quarter of 2018 was
$1.2 million, compared to a
non-operating loss of $13.4 million
for the same period last year. Non-operating income for the second
quarter of 2018 included (i) a $20.1
million net interest and other income; (ii) a $16.4 million net loss on sale of investments,
fair value changes and impairment on investments, which is excluded
under non-GAAP measure; and (iii) a $2.5
million loss pick-up from equity-method investments, which
is reported one quarter in arrears and is mainly resulted from the
loss pick-up related to the Company's investment in Leju Holding
Limited ("Leju"). Non-operating loss for the second quarter of 2017
included (i) a $101.0 million gains
from disposing of certain marketable securities and other gains,
which are excluded under non-GAAP measure; (ii) a $113.1 million of investment impairment write
down of the Company's investment in Leju, which is excluded under
non-GAAP measure; and (iii) a $5.3
million loss pick-up from equity-method
investments.
Income tax expenses for the second quarter of 2018 were
$27.9 million, compared to
$19.1 million for the same period
last year, primarily owing to higher profitability with a
relatively stable tax rates in our PRC operation.
Net income attributable to SINA's ordinary shareholders for the
second quarter of 2018 was $35.1
million, compared to $23.4
million for the same period last year. Diluted net income
per share attributable to SINA's ordinary shareholders for the
second quarter of 2018 was $0.47,
compared to $0.31 for the same period
last year. Non-GAAP net income attributable to SINA's ordinary
shareholders for the second quarter of 2018 was $66.5 million, compared to $52.7 million for the same period last year.
Non-GAAP diluted net income per share attributable to SINA's
ordinary shareholders for the second quarter of 2018 was
$0.89, compared to $0.70 for the same period last year.
As of June 30, 2018, SINA's cash,
cash equivalents and short-term investments totaled $2.7 billion, compared to $3.4 billion as of December 31, 2017. The decrease of SINA's cash,
cash equivalents and short-term investments was mainly resulted
from continued investment activities and the execution of the
Company's share repurchase program. For the second quarter of 2018,
net cash provided by operating activities was $16.4 million, capital expenditures totaled
$162.1 million, and depreciation and
amortization expenses amounted to $10.0
million.
Share Repurchase Program
On June 30, 2018, the Company has
completed its $500 million share
repurchase program which was approved in February 2016 by the Company's board of
directors. As of June 30, 2018, the
Company has repurchased approximately 3.4 million shares for
approximately $302.6 million under
the program.
SINA's board of directors has approved a new share repurchase
plan whereby SINA is authorized to repurchase its own ordinary
shares with an aggregate value of up to $500
million for a period through the end of December 2019. SINA expects to fund the
repurchase out of its existing cash balance. The share repurchase
may be effected on the open market at prevailing market prices
and/or in negotiated transactions off the market from time to time
as market conditions warrant and will be implemented in accordance
with applicable rules under the U.S. Securities Exchange Act of
1934, as amended.
Financial Impact from New Revenue Guidance
As the Company adopted new revenue guidance ASC Topic 606 on
January 1, 2018, results for
reporting periods beginning after January 1,
2018 are presented under Topic 606 ('New Basis'), while
prior period amounts are not adjusted and continue to be reported
under Topic 605 ('Old Basis') , which is the Company's historic
accounting method.
The Company's current period reported results which reflected
the impact from the adoption of the new revenue guidance are as
follows:
|
Three months ended
June 30, 2018
|
|
Adjustments
|
|
Old
Basis ASC
605
|
VAT
|
|
Barter
Transaction
|
|
New
Basis ASC
606
|
|
($ In thousands,
except for percentage)
|
Net
revenues
|
540,106
|
|
(30,159)
|
|
27,413
|
|
537,360
|
-
Portal
|
120,788
|
|
(6,656)
|
|
672
|
|
114,804
|
-
Weibo
|
423,593
|
|
(23,745)
|
|
26,741
|
|
426,589
|
Cost of
revenues
|
136,632
|
|
(30,159)
|
|
-
|
|
106,473
|
Operating
expenses
|
268,639
|
|
-
|
|
26,069
|
|
294,708
|
- Sales
and marketing
|
157,520
|
|
-
|
|
26,069
|
|
183,589
|
Income from
operations
|
134,835
|
|
-
|
|
1,344
|
|
136,179
|
Gross
margin
|
74.7%
|
|
|
|
|
|
80.2%
|
Operating
margin
|
25.0%
|
|
|
|
|
|
25.3%
|
Non-GAAP Measures
This release contains the following non-GAAP financial measures:
non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP
advertising and non-advertising gross margin, non-GAAP operating
expenses, non-GAAP income from operations, non-GAAP operating
margin, non-GAAP net income attributable to SINA's ordinary
shareholders and non-GAAP diluted net income per share attributable
to SINA's ordinary shareholders. These non-GAAP financial measures
should be considered in addition to, not as a substitute for,
measures of the Company's financial performance prepared in
accordance with U.S. GAAP. The Company's non-GAAP financial
measures may be defined differently than similar terms used by
other companies. Accordingly, care should be exercised in
understanding how the Company defines its non-GAAP financial
measures.
The Company's non-GAAP financial measures exclude recognition of
deferred revenues related to the license granted to Leju,
stock-based compensation, amortization of intangible assets,
adjustment for non-GAAP to GAAP reconciling items on the share of
equity method investments, gain (loss) on sale of investment,
deemed disposal, fair value changes and impairment on investment,
and income tax effects of above non-GAAP to GAAP reconciling items
and adjustment for non-GAAP to GAAP reconciling items for the
income attributable to non-controlling interests and amortization
of convertible debt issuance cost. The Company's management uses
these non-GAAP financial measures in their financial and operating
decision-making, because management believes these measures reflect
the Company's ongoing business operations in a manner that allows
more meaningful period-to-period comparisons. The Company believes
that these non-GAAP financial measures provide useful information
to investors and others in the following ways: (i) in comparing the
Company's current financial results with the Company's past
financial results in a consistent manner, and (ii) in understanding
and evaluating the Company's current operating performance and
future prospects in the same manner as management does, if they so
choose. The Company also believes that the non-GAAP financial
measures provide useful information to both management and
investors by excluding certain expenses, gain/loss and other items
(i) that are not expected to result in future cash payments or (ii)
that are non-recurring in nature or may not be indicative of the
Company's core operating results and business outlook.
Use of non-GAAP financial measures has limitations. The
Company's non-GAAP financial measures do not include all income and
expense items that affect the Company's operations. They may
not be comparable to non-GAAP financial measures used by other
companies. Management compensates for these limitations by also
considering the Company's financial results prepared in accordance
with U.S. GAAP. Reconciliations of the Company's non-GAAP measures
to the nearest comparable GAAP measures are set forth in the
section below titled "Unaudited Reconciliation of Non-GAAP to GAAP
Results."
Conference Call
SINA will host a conference call from 8:10 a.m. – 8:40 a.m.
Eastern Time on August
8, 2018 (or 8:10 p.m. –
8:40 p.m. Beijing Time on
August 8, 2018) to present an
overview of the Company's financial performance and business
operations. A live webcast of the call will be available through
the Company's corporate website at http://ir.sina.com. The
conference call can be accessed as follows:
US:
|
+1 845 675
0438
|
Hong Kong:
|
+852 3018
6776
|
China:
|
400 120
0654
|
International:
|
+65 6713
5440
|
Passcode for all
regions:
|
3381946
|
A replay of the conference call will be available through
morning Eastern Time August 16, 2018.
The dial-in number is +61 2 9003 4211. The passcode for the replay
is 3381946.
About SINA
SINA is a leading online media company serving China and the global Chinese communities. Its
digital media network of SINA.com (portal), SINA mobile (mobile
portal and mobile apps) and Weibo (social media) enables internet
users to access professional media and user generated content in
multi-media formats from personal computers and mobile devices and
share their interests with friends and acquaintances.
SINA.com offers distinct and targeted professional content on
each of its region-specific websites and a full range of
complementary offerings. SINA mobile provides news information,
professional and entertainment content customized for mobile users
through mobile applications and mobile portal site SINA.cn.
Weibo is a leading social media platform for people to create,
distribute and discover content. Based on an open platform
architecture, Weibo provides unprecedented and simple way for
people and organizations to publicly express themselves in real
time, interact with others on a massive global platform and stay
connected with the world.
Through these properties and other product lines, SINA offer an
array of online media and social media services to its users to
create a rich canvas for businesses and advertisers to effectively
connect and engage with their targeted audiences.
Safe Harbor Statement
This press release contains forward-looking statements that
relate to, among other things, SINA's expected financial
performance and SINA's strategic and operational plans (as
described, without limitation, in quotations from management in
this press release). SINA may also make forward-looking statements
in the Company's periodic reports 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. Statements
that are not historical facts, including statements about the
Company's beliefs and expectations, are forward-looking statements.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "confidence," "estimates" and similar
statements. SINA assumes no obligation to update the
forward-looking statements in this press release and elsewhere.
Forward-looking statements involve inherent risks and
uncertainties. 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 failure to meet internal or
external expectations of future performance given the rapidly
evolving markets; condition of the global financial and credit
market; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly
operating results; the Company's reliance on online advertising
sales and value-added services for a majority of its revenues;
failure to successfully develop, introduce, drive adoption of or
monetize new features and products, including portal, Weibo and
fin-tech products; failure to enter and develop the small and
medium enterprise market by the Company or through cooperation with
other parties, such as Alibaba; failure to successfully integrate
acquired businesses; risks associated with the Company's
investments, including equity pick-up and impairment; and failure
to compete successfully against new entrants and established
industry competitors. Further information regarding these and other
risks is included in SINA's 2017 annual reports on Form 20-F and
other filings with the Securities and Exchange Commission.
Contact:
Investor Relations
SINA Corporation
Phone: +86 10 5898 3336
Email: ir@staff.sina.com.cn
SINA
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(U.S. Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
Net
revenues(1):
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
$
454,091
|
|
$
295,153
|
|
$
367,081
|
|
$
821,172
|
|
$
523,152
|
|
Non-advertising
|
83,269
|
|
63,779
|
|
73,671
|
|
156,940
|
|
113,845
|
|
|
|
537,360
|
|
358,932
|
|
440,752
|
|
978,112
|
|
636,997
|
|
Cost of
revenues(1)(2):
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
80,583
|
|
72,211
|
|
83,115
|
|
163,698
|
|
139,879
|
|
Non-advertising
|
25,890
|
|
20,113
|
|
25,592
|
|
51,482
|
|
39,017
|
|
|
|
106,473
|
|
92,324
|
|
108,707
|
|
215,180
|
|
178,896
|
|
Gross
profit
|
430,887
|
|
266,608
|
|
332,045
|
|
762,932
|
|
458,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing (1)(2)
|
183,589
|
|
83,408
|
|
139,687
|
|
323,276
|
|
151,491
|
|
Product development (2)
|
83,877
|
|
63,486
|
|
85,137
|
|
169,014
|
|
117,906
|
|
General and administrative (2)
|
27,242
|
|
25,036
|
|
33,932
|
|
61,174
|
|
49,059
|
|
|
|
294,708
|
|
171,930
|
|
258,756
|
|
553,464
|
|
318,456
|
|
Income from
operations
|
136,179
|
|
94,678
|
|
73,289
|
|
209,468
|
|
139,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
Loss
from equity method investments, net
|
(2,527)
|
|
(5,265)
|
|
(1,772)
|
|
(4,299)
|
|
(2,122)
|
|
Gain
on sale of investments, fair value changes and impairment
on investments, net
(3)
|
(16,396)
|
|
(16,315)
|
|
7,226
|
|
(9,170)
|
|
(432)
|
|
Interest and other income, net
|
20,116
|
|
8,225
|
|
17,098
|
|
37,214
|
|
19,458
|
|
|
|
1,193
|
|
(13,355)
|
|
22,552
|
|
23,745
|
|
16,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
137,372
|
|
81,323
|
|
95,841
|
|
233,213
|
|
156,549
|
|
Income tax
expense
|
(27,858)
|
|
(19,135)
|
|
(18,750)
|
|
(46,608)
|
|
(32,961)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
109,514
|
|
62,188
|
|
77,091
|
|
186,605
|
|
123,588
|
|
Less:
Net income attributable to non-controlling interests
|
74,462
|
|
38,798
|
|
48,397
|
|
122,859
|
|
61,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to SINA's ordinary shareholders
|
$
35,052
|
|
$
23,390
|
|
$
28,694
|
|
$
63,746
|
|
$
61,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share
|
$
0.49
|
|
$
0.33
|
|
$
0.40
|
|
$
0.89
|
|
$
0.87
|
|
Diluted net income
per share (4)
|
$
0.47
|
|
$
0.31
|
|
$
0.38
|
|
$
0.85
|
|
$
0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income per share
|
71,210
|
|
71,197
|
|
71,440
|
|
71,324
|
|
71,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
73,553
|
|
73,890
|
|
74,036
|
|
73,793
|
|
73,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
On January 1, 2018, the Company adopted ASC 606 Revenue
from Contracts with Customers using the modified retrospective
method,which means that prior periods amount will be reported on
a
historical basis and amounts for 2018 are reported on the new
basis. Under the new accounting standard, the main impact to the
Company is that it now reports revenue net of value added tax
and
recognizes revenues and expenses at fair value for advertising
barter transactions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Stock-based compensation in each category:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
2,890
|
|
$
2,106
|
|
$
2,541
|
|
$
5,431
|
|
$
4,336
|
|
|
Sales and
marketing
|
6,474
|
|
5,269
|
|
4,880
|
|
11,354
|
|
9,852
|
|
|
Product
development
|
7,735
|
|
6,668
|
|
7,487
|
|
15,222
|
|
13,658
|
|
|
General and
administrative
|
6,915
|
|
8,143
|
|
7,408
|
|
14,323
|
|
15,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
The Company adopted ASU 2016-1, Classification and
Measurement of Financial Instruments beginning the first
quarter of fiscal year 2018. After the adoption of this new
accounting update, the
Company will measure long-term investments other than equity method
investments at fair value through earnings. The Company
recognized $8.7 million of loss from fair value changes in the
investments
for the three months ended June 30, 2018. For those
investments without readily determinable fair values, the Company
will elect to record these investments at cost, less impairment,
and plus or minus
subsequent adjustments for observable price changes. Changes in the
basis of these investments will be reported in current
earnings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
Net income attributable to SINA's ordinary shareholders is adjusted
for diluted shares issued by our subsidiary and equity method
investments.
|
|
|
|
|
|
SINA
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
Assets
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,049,225
|
|
|
$
1,990,552
|
|
|
Short-term
investments
|
|
1,647,969
|
|
|
1,381,991
|
|
|
Restricted
cash
|
|
137,806
|
|
|
216,151
|
|
|
Accounts
receivable, net
|
|
398,654
|
|
|
285,681
|
|
|
Prepaid expenses
and other current assets
|
|
458,402
|
|
|
228,238
|
|
|
Subtotal
|
|
3,692,056
|
|
|
4,102,613
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
259,627
|
|
|
262,676
|
|
Goodwill and
intangible assets, net
|
|
270,366
|
|
|
104,207
|
|
Long-term
investments (1)
|
|
1,458,380
|
|
|
1,288,816
|
|
Other
assets
|
|
94,307
|
|
|
57,082
|
|
Total
assets
|
|
$
5,774,736
|
|
|
$
5,815,394
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
138,680
|
|
|
$
130,431
|
|
|
Amount due to
customers
|
|
137,806
|
|
|
216,151
|
|
|
Accrued expenses
and other current liabilities
|
|
478,363
|
|
|
446,779
|
|
|
Short-term bank
loan
|
|
87,278
|
|
|
89,309
|
|
|
Convertible
debt
|
|
153,085
|
|
|
153,092
|
|
|
Deferred
revenues
|
|
144,520
|
|
|
134,580
|
|
|
Income taxes
payable
|
|
80,948
|
|
|
102,458
|
|
|
Subtotal
|
|
1,220,680
|
|
|
1,272,800
|
|
|
|
|
|
|
|
|
|
Convertible
debt
|
|
882,054
|
|
|
879,983
|
|
Long-term deferred
revenues
|
|
48,965
|
|
|
54,372
|
|
Other long-term
liabilities
|
|
8,279
|
|
|
8,510
|
|
|
Total
liabilities
|
|
2,159,978
|
|
|
2,215,665
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
SINA shareholders'
equity (1)
|
|
2,738,678
|
|
|
2,846,842
|
|
|
Non-controlling
interests
|
|
876,080
|
|
|
752,887
|
|
|
Total shareholders'
equity
|
|
3,614,758
|
|
|
3,599,729
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
5,774,736
|
|
|
$
5,815,394
|
|
|
|
|
|
|
|
|
|
(1)The
Company adopted ASU 2016-1, Classification and Measurement of
Financial Instruments beginning the first quarter of
fiscal year 2018. After the adoption of this new accounting update,
the Company will measure long-term investments other than
equity method investments at fair value through earnings. For
those investments without readily determinable fair values, the
Company will elect to record these investments at cost, less
impairment, and plus or minus subsequent adjustments for
observable
price changes. Changes in the basis of these investments will be
reported in current earnings. The cumulative impact arising
from
the adoption was a credit to retained earnings as of January 1,
2018 of $49.0 million.
|
SINA
CORPORATION
|
UNAUDITED
ADDITIONAL INFORMATION
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
|
|
|
|
Portal
Advertising
|
$
84,173
|
|
$
77,931
|
|
$
64,132
|
|
$
148,305
|
|
$
137,722
|
|
Other
|
30,631
|
|
28,746
|
|
26,774
|
|
57,405
|
|
48,908
|
|
Subtotal
|
114,804
|
|
106,677
|
|
90,906
|
|
205,710
|
|
186,630
|
|
|
|
|
|
|
|
|
|
|
|
|
Weibo:
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing
|
369,942
|
|
218,340
|
|
302,949
|
|
672,891
|
|
387,637
|
|
Weibo
VAS
|
56,647
|
|
35,033
|
|
46,934
|
|
103,581
|
|
64,937
|
|
Subtotal
|
426,589
|
|
253,373
|
|
349,883
|
|
776,472
|
|
452,574
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination
|
(4,033)
|
|
(1,118)
|
|
(37)
|
|
(4,070)
|
|
(2,207)
|
|
|
$
537,360
|
|
$
358,932
|
|
$
440,752
|
|
$
978,112
|
|
$
636,997
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
|
|
|
|
Portal
Advertising
|
$
28,546
|
|
$
27,647
|
|
$
29,373
|
|
$
57,919
|
|
$
55,129
|
|
Other
|
20,146
|
|
14,368
|
|
16,469
|
|
36,615
|
|
27,070
|
|
Subtotal
|
48,692
|
|
42,015
|
|
45,842
|
|
94,534
|
|
82,199
|
|
|
|
|
|
|
|
|
|
|
|
|
Weibo
|
61,790
|
|
50,372
|
|
62,902
|
|
124,692
|
|
96,822
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination
|
(4,009)
|
|
(63)
|
|
(37)
|
|
(4,046)
|
|
(125)
|
|
|
$
106,473
|
|
$
92,324
|
|
$
108,707
|
|
$
215,180
|
|
$
178,896
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
Portal
|
58%
|
|
61%
|
|
50%
|
|
54%
|
|
56%
|
|
Weibo
|
86%
|
|
80%
|
|
82%
|
|
84%
|
|
79%
|
|
|
80%
|
|
74%
|
|
75%
|
|
78%
|
|
72%
|
|
|
|
|
|
|
|
|
|
|
|
|
SINA
CORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
(U.S. Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
June 30,
2018
|
|
June 30,
2017
|
|
March 31,
2018
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenues
|
$
454,091
|
|
|
|
$
454,091
|
|
$
295,153
|
|
|
|
$
295,153
|
|
$
367,081
|
|
|
|
$
367,081
|
Non-advertising
revenues
|
83,269
|
|
(2,609)
|
(a)
|
80,660
|
|
63,779
|
|
(2,609)
|
(a)
|
61,170
|
|
73,671
|
|
(2,609)
|
(a)
|
71,062
|
Net
revenues
|
$
537,360
|
|
$
(2,609)
|
|
$
534,751
|
|
$
358,932
|
|
$
(2,609)
|
|
$
356,323
|
|
$
440,752
|
|
$
(2,609)
|
|
$
438,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
2,890
|
(b)
|
|
|
|
|
2,106
|
(b)
|
|
|
|
|
2,541
|
(b)
|
|
Gross
profit
|
$
430,887
|
|
$
281
|
|
$
431,168
|
|
$
266,608
|
|
$
(503)
|
|
$
266,105
|
|
$
332,045
|
|
$
(68)
|
|
$
331,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21,124)
|
(b)
|
|
|
|
|
(20,080)
|
(b)
|
|
|
|
|
(19,775)
|
(b)
|
|
|
|
|
|
(1,523)
|
(c)
|
|
|
|
|
(1,227)
|
(c)
|
|
|
|
|
(1,635)
|
(c)
|
|
Operating
expenses
|
$
294,708
|
|
$
(22,647)
|
|
$
272,061
|
|
$
171,930
|
|
$
(21,307)
|
|
$
150,623
|
|
$
258,756
|
|
$
(21,410)
|
|
$
237,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
24,014
|
(b)
|
|
|
|
|
22,186
|
(b)
|
|
|
|
|
22,316
|
(b)
|
|
|
|
|
|
1,523
|
(c)
|
|
|
|
|
1,227
|
(c)
|
|
|
|
|
1,635
|
(c)
|
|
Income from
operations
|
$
136,179
|
|
$
22,928
|
|
$
159,107
|
|
$
94,678
|
|
$
20,804
|
|
$
115,482
|
|
$
73,289
|
|
$
21,342
|
|
$
94,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
24,014
|
(b)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
22,316
|
(b)
|
|
|
|
|
|
1,523
|
(c)
|
|
|
|
|
22,186
|
(b)
|
|
|
|
|
1,635
|
(c)
|
|
|
|
|
|
40
|
(d)
|
|
|
|
|
1,227
|
(c)
|
|
|
|
|
(451)
|
(d)
|
|
|
|
|
|
16,396
|
(e)
|
|
|
|
|
75
|
(d)
|
|
|
|
|
(7,226)
|
(e)
|
|
|
|
|
|
(8,849)
|
(f)
|
|
|
|
|
16,315
|
(e)
|
|
|
|
|
(8,183)
|
(f)
|
|
|
|
|
|
1,035
|
(g)
|
|
|
|
|
(7,745)
|
(f)
|
|
|
|
|
1,035
|
(g)
|
|
|
|
|
|
(85)
|
(h)
|
|
|
|
|
(180)
|
(h)
|
|
|
|
|
21
|
(h)
|
|
Net income
attributable to SINA's ordinary shareholders
|
$
35,052
|
|
$
31,465
|
|
$
66,517
|
|
$
23,390
|
|
$
29,269
|
|
$
52,659
|
|
$
28,694
|
|
$
6,538
|
|
$
35,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share *
|
$
0.47
|
|
|
|
$
0.89
|
|
$
0.31
|
|
|
|
$
0.70
|
|
$
0.38
|
|
|
|
$
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
73,553
|
|
-
|
|
73,553
|
|
73,890
|
|
-
|
|
73,890
|
|
74,036
|
|
-
|
|
74,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin -
advertising
|
82%
|
|
1%
|
|
83%
|
|
76%
|
|
-
|
|
76%
|
|
77%
|
|
1%
|
|
78%
|
Gross margin -
non-advertising
|
69%
|
|
-1%
|
|
68%
|
|
68%
|
|
-1%
|
|
67%
|
|
65%
|
|
-1%
|
|
64%
|
Operating
margin
|
25%
|
|
5%
|
|
30%
|
|
26%
|
|
6%
|
|
32%
|
|
17%
|
|
5%
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
|
|
|
|
|
|
June 30,
2018
|
|
June 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenues
|
$
821,172
|
|
|
|
$
821,172
|
|
$
523,152
|
|
|
|
$
523,152
|
|
|
|
|
|
|
Non-advertising
revenues
|
156,940
|
|
(5,218)
|
(a)
|
151,722
|
|
113,845
|
|
(5,218)
|
(a)
|
108,627
|
|
|
|
|
|
|
Net
revenues
|
$
978,112
|
|
$
(5,218)
|
|
$
972,894
|
|
$
636,997
|
|
$
(5,218)
|
|
$
631,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,218)
|
(a)
|
|
|
|
|
(5,218)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
5,431
|
(b)
|
|
|
|
|
4,336
|
(b)
|
|
|
|
|
|
|
|
Gross
profit
|
$
762,932
|
|
$
213
|
|
$
763,145
|
|
$
458,101
|
|
$
(882)
|
|
$
457,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(40,899)
|
(b)
|
|
|
|
|
(39,040)
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
(3,158)
|
(c)
|
|
|
|
|
(1,382)
|
(c)
|
|
|
|
|
|
|
|
Operating
expenses
|
$
553,464
|
|
$
(44,057)
|
|
$
509,407
|
|
$
318,456
|
|
$
(40,422)
|
|
$
278,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,218)
|
(a)
|
|
|
|
|
(5,218)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
46,330
|
(b)
|
|
|
|
|
43,376
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
3,158
|
(c)
|
|
|
|
|
1,382
|
(c)
|
|
|
|
|
|
|
|
Income from
operations
|
$
209,468
|
|
$
44,270
|
|
$
253,738
|
|
$
139,645
|
|
$
39,540
|
|
$
179,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,218)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,330
|
(b)
|
|
|
|
|
(5,218)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
3,158
|
(c)
|
|
|
|
|
43,376
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
(411)
|
(d)
|
|
|
|
|
1,382
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
9,170
|
(e)
|
|
|
|
|
299
|
(d)
|
|
|
|
|
|
|
|
|
|
|
|
(17,032)
|
(f)
|
|
|
|
|
432
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
2,070
|
(g)
|
|
|
|
|
(13,239)
|
(f)
|
|
|
|
|
|
|
|
|
|
|
|
(64)
|
(h)
|
|
|
|
|
1,292
|
(h)
|
|
|
|
|
|
|
|
Net income
attributable to SINA's ordinary shareholders
|
$
63,746
|
|
$
38,003
|
|
$
101,749
|
|
$
61,914
|
|
$
28,324
|
|
$
90,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share *
|
$
0.85
|
|
|
|
$
1.35
|
|
$
0.83
|
|
|
|
$
1.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
73,793
|
|
-
|
|
73,793
|
|
73,667
|
|
-
|
|
73,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin -
advertising
|
80%
|
|
1%
|
|
81%
|
|
73%
|
|
1%
|
|
74%
|
|
|
|
|
|
|
Gross margin -
non-advertising
|
67%
|
|
-1%
|
|
66%
|
|
66%
|
|
-2%
|
|
64%
|
|
|
|
|
|
|
Operating
margin
|
21%
|
|
5%
|
|
26%
|
|
22%
|
|
6%
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To
exclude the recognition of deferred revenue related to the license
granted to Leju.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) To
exclude stock-based compensation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) To
adjust amortization of intangible assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) To
exclude the non-GAAP to GAAP reconciling items on the share of
equity method investments, net of share of amortization of
intangibles not on their books.
|
|
|
|
|
|
|
|
|
(e) To
exclude (gain) loss on sale of investments, (gain) loss on deemed
disposal, fair value changes and impairment on investments,
net.
|
|
|
|
|
|
|
|
|
|
|
|
(f) To
exclude Non-GAAP to GAAP reconciling items for the income
attributable to non-controlling interests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g) To
exclude the amortization of convertible debt issuance
cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h) To
exclude the provision (benefit) for income tax related to item (c)
and (e). Other non-GAAP to GAAP reconciling items have no income
tax effect.**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Net income
attributable to SINA's ordinary shareholders is adjusted for
diluted shares issued by our subsidiary and equity method
investments.
|
|
|
|
|
|
|
|
|
**
|
Most of the
reconciliation items were recorded in entities in tax free
jurisdictions hence no income tax implications. For impairment on
investments, valuation allowances were
made for those differences the Company does not expect they can be
realized in the foreseeable future.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' NON-GAAP TO
GAAP RESULTS*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
June 30,
2018
|
|
June 30,
2017
|
|
March 31,
2018
|
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To exclude
stock-based compensation
|
|
|
$
833
|
|
|
|
|
|
$
736
|
|
|
|
|
|
$
584
|
|
|
|
To exclude
amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
resulting from business acquisitions
|
|
|
1,115
|
|
|
|
|
|
1,035
|
|
|
|
|
|
1,123
|
|
|
|
To exclude (gain)
loss on disposal and impairment on investments,
net
|
|
|
75
|
|
|
|
|
|
(1,319)
|
|
|
|
|
|
1,669
|
|
|
|
To exclude gain
resulting from the fair value changes in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments, net
|
|
|
(1,313)
|
|
|
|
|
|
(637)
|
|
|
|
|
|
(3,339)
|
|
|
|
To exclude tax
impacts related to amortization of intangible assets
|
|
|
(253)
|
|
|
|
|
|
(143)
|
|
|
|
|
|
(178)
|
|
|
|
Loss from equity
method investments, net
|
$
(2,944)
|
|
$
457
|
|
$
(2,487)
|
|
$
(4,862)
|
|
$
(328)
|
|
$
(5,190)
|
|
$
(2,082)
|
|
$
(141)
|
|
$
(2,223)
|
|
Share of
amortization of equity investments'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangibles
not on their books
|
351
|
|
(351)
|
|
-
|
|
(523)
|
|
523
|
|
-
|
|
224
|
|
(224)
|
|
-
|
|
Share of tax
impacts related to amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
investments' intangibles not on their books
|
66
|
|
(66)
|
|
-
|
|
120
|
|
(120)
|
|
-
|
|
86
|
|
(86)
|
|
-
|
|
|
$
(2,527)
|
|
$
40
|
|
$
(2,487)
|
|
$
(5,265)
|
|
$
75
|
|
$
(5,190)
|
|
$
(1,772)
|
|
$
(451)
|
|
$
(2,223)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
|
|
|
|
|
|
June 30,
2018
|
|
June 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To exclude
stock-based compensation
|
|
|
$
1,417
|
|
|
|
|
|
$
1,056
|
|
|
|
|
|
|
|
|
|
To exclude
amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
resulting from business acquisitions
|
|
|
2,238
|
|
|
|
|
|
1,137
|
|
|
|
|
|
|
|
|
|
To exclude (gain)
loss on disposal and impairment on investments,
net
|
|
|
1,744
|
|
|
|
|
|
(1,640)
|
|
|
|
|
|
|
|
|
|
To exclude gain
resulting from the fair value changes in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments, net
|
|
|
(4,652)
|
|
|
|
|
|
(598)
|
|
|
|
|
|
|
|
|
|
To exclude tax
impacts related to amortization of intangible assets
|
|
|
(431)
|
|
|
|
|
|
(164)
|
|
|
|
|
|
|
|
|
|
Loss from equity
method investments, net
|
$
(5,026)
|
|
$
316
|
|
$
(4,710)
|
|
$
(1,614)
|
|
$
(209)
|
|
$
(1,823)
|
|
|
|
|
|
|
|
Share of
amortization of equity investments'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangibles
not on their books
|
575
|
|
(575)
|
|
-
|
|
(648)
|
|
648
|
|
-
|
|
|
|
|
|
|
|
Share of tax
impacts related to amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
investments' intangibles not on their books
|
152
|
|
(152)
|
|
-
|
|
140
|
|
(140)
|
|
-
|
|
|
|
|
|
|
|
|
$
(4,299)
|
|
$
(411)
|
|
$
(4,710)
|
|
$
(2,122)
|
|
$
299
|
|
$
(1,823)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Earning (Loss)
from equity method investments is recorded one quarter in
arrears.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/sina-reports-second-quarter-2018-unaudited-financial-results-300693896.html
SOURCE SINA Corporation