BEIJING, Nov. 28, 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 third quarter ended September 30, 2018.
"We are pleased with SINA's third
quarter results. Despite intensified competition and macro
headwinds, we delivered healthy growth in both revenues and
profitability driven by the continued momentum of Weibo business."
said Charles Chao, Chairman and CEO
of SINA.
Third Quarter 2018 Highlights
- Both net revenues and non-GAAP net revenues increased 26%
year-over-year to $557.2 million and
$554.6 million, respectively.
- Advertising revenues increased 33% year-over-year to
$483.8 million.
- Non-advertising revenues were $73.4
million. Non-GAAP non-advertising revenues were $70.8 million.
- Income from operations increased 6% year-over-year to
$127.4 million. Non-GAAP income from
operations increased 16% year-over-year to $168.1 million.
- Net income attributable to SINA was $45.4 million, or $0.62 for diluted net income per share
attributable to SINA's ordinary shareholders. Non-GAAP net income
attributable to SINA was $67.7
million, or $0.93 for non-GAAP
diluted net income per share attributable to SINA's ordinary
shareholders.
Third Quarter 2018 Financial Results
For the third quarter of 2018, SINA reported net revenues of
$557.2 million, an increase of 26%
compared to $443.1 million for the
same period last year. Non-GAAP net revenues for the third quarter
of 2018 were $554.6 million, an
increase of 26% compared to $440.5
million for the same period last year.
Advertising revenues for the third quarter of 2018 were
$483.8 million, an increase of 33%
compared to $364.0 million for the
same period last year, primarily driven by an increase of
$132.5 million, or 48% growth in
Weibo advertising and marketing revenues.
Non-advertising revenues for the third quarter of 2018 were
$73.4 million, compared to
$79.2 million for the same period
last year. Non-GAAP non-advertising revenues for the third quarter
of 2018 were $70.8 million, compared
to $76.6 million for the same period
last year. The year over year decline in non-advertising revenues
was attributable to our revenue reporting changed from gross basis
to net basis, negative currency translation impact as well as
lackluster SINA fin-tech businesses due to regulatory headwind. The
decrease was partially offset by increase in Weibo value-added
service ("VAS") revenues.
Gross margin for the third quarter of 2018 was 80%, compared to
76% for the same period last year. Advertising gross margin for the
third quarter of 2018 was 81%, 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 third quarter of 2018 was 71%, flat year over
year.
Operating expenses for the third quarter of 2018 totaled
$316.0 million, compared to
$214.3 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 step up of sales and marketing expenses for
Weibo's user acquisition, the increase in personnel related costs,
as well as goodwill and acquired intangibles impairment charge for
non-core business line. Non-GAAP operating expenses for the third
quarter of 2018 totaled $276.4
million, compared to $189.7
million for the same period last year.
Income from operations for the third quarter of 2018 was
$127.4 million, compared to
$120.3 million for the same period
last year. Operating margin was 23%, down from 27% for the same
period last year. Non-GAAP income from operations for the third
quarter of 2018 was $168.1 million,
compared to $145.0 million for the
same period last year. Non-GAAP operating margin was 30%, down from
33% for the same period last year.
Non-operating income for the third quarter of 2018 was
$77.3 million, compared to
$11.1 million for the same period
last year. Non-operating income for the third quarter of 2018
included (i) a $50.1 million net gain
on sale of investments, fair value changes and impairment on
investments, which is excluded under non-GAAP measure; (ii) a
$17.1 million net interest and other
income; and (iii) a $10.2 million net
earnings from equity-method investments, which is reported one
quarter in arrears and is mainly resulted from the earnings pick-up
related to the Company's investment in Tian Ge Interactive Holding
Limited. Non-operating income for the third quarter of 2017
included (i) a $10.2 million net gain
on sale of and impairment on investments, which is excluded under
our non-GAAP measure; (ii) a $11.1
million loss pick-up from equity-method investments, which
is accounted for under the equity-method and reported one quarter
in arrears, mainly resulting from the loss pick-up from the
Company's investment in Leju Holding Limited; and (iii) a
$12.0 million net interest and other
income.
Income tax expenses for the third quarter of 2018 were
$68.1 million, compared to
$24.6 million for the same period
last year, largely attributable to the deferred tax liability
recognized from the fair value changes of investments. Non-GAAP
income tax expenses for the third quarter of 2018 were $27.8 million, compared to $24.8 million for the same period last year.
Net income attributable to SINA's ordinary shareholders for the
third quarter of 2018 was $45.4
million, compared to $49.3
million for the same period last year. Diluted net income
per share attributable to SINA's ordinary shareholders for the
third quarter of 2018 was $0.62,
compared to $0.66 for the same period
last year. Non-GAAP net income attributable to SINA's ordinary
shareholders for the third quarter of 2018 was $67.7 million, compared to $57.7 million for the same period last year.
Non-GAAP diluted net income per share attributable to SINA's
ordinary shareholders for the third quarter of 2018 was
$0.93, compared to $0.77 for the same period last year.
As of September 30, 2018, SINA's
cash, cash equivalents and short-term investments totaled
$2.5 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 third quarter of 2018,
net cash provided by operating activities was $100.8 million, capital expenditures totaled
$46.8 million, and depreciation and
amortization expenses amounted to $9.9
million.
Financial Impact from New Revenue Guidance
As the Company adopted new revenue guidance ASC Topic 606 on
January 1, 2018, results for
reporting periods beginning after January 1,
2018 are presented under Topic 606 ('New Basis'), while
prior period amounts are not adjusted and continue to be reported
under Topic 605 ('Old Basis') , which is the Company's historic
accounting method.
The Company's current period reported results which reflected
the impact from the adoption of the new revenue guidance are as
follows:
|
Three months ended
September 30, 2018
|
|
Adjustments
|
|
Old
Basis
ASC
605
|
VAT
|
|
Barter
Transaction
|
|
New Basis
ASC
606
|
|
($ In thousands,
except for percentage)
|
Net
revenues
|
561,228
|
|
(31,490)
|
|
27,463
|
|
557,201
|
-
Portal
|
106,459
|
|
(5,857)
|
|
638
|
|
101,240
|
-
Weibo
|
459,232
|
|
(25,886)
|
|
26,825
|
|
460,171
|
Cost of
revenues
|
145,305
|
|
(31,490)
|
|
-
|
|
113,815
|
Operating
expenses
|
285,794
|
|
-
|
|
30,160
|
|
315,954
|
- Sales
and marketing
|
155,318
|
|
-
|
|
30,160
|
|
185,478
|
Income from
operations
|
130,129
|
|
-
|
|
(2,697)
|
|
127,432
|
Gross
margin
|
74.1%
|
|
|
|
|
|
79.6%
|
Operating
margin
|
23.2%
|
|
|
|
|
|
22.9%
|
Annual General Meeting
On November 23, 2018, the Company
held its annual general meeting of shareholders, where the
shareholders re-elected Mr. Yan Wang
and Mr. James Jianzhang Liang as directors of the Company and
ratified the appointment of PricewaterhouseCoopers Zhong Tian LLP
as the Company's independent auditors for the fiscal year ending
December 31, 2018. The shareholders
also approved the adoption of the amended and restated memorandum
and articles of association ("MAA") in substitution for and to the
exclusion of the currently effective MAA of the Company.
Business Outlook
In light of macro-economic conditions and regulatory factors, we
are revising our fiscal year 2018 net revenue guidance to a range
of RMB 14.0 billion to RMB 14.2 billion, or $2.09
billion to $2.12 billion,
assuming US dollar and RMB exchange rate of 6.70. It represents a
year over year growth rate of 32% to 34% and reflects a 5% to 7%
adjustment to the midpoint of the original revenue guidance.
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,
goodwill impairment, 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 7:10 a.m. -
7:40 a.m. Eastern Time on
November 28, 2018 (or 8:10
p.m. - 8:40 p.m. Beijing Time on
November 28, 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:
|
7479215
|
A replay of the conference call will be available through
morning Eastern Time December 6, 2018. The dial-in
number is +61 2 9003 4211. The passcode for the replay is
7479215.
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
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
Net
revenues(1):
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
$
483,806
|
|
$
363,958
|
|
$
454,091
|
|
$
1,304,978
|
|
$
887,110
|
|
Non-advertising
|
73,395
|
|
79,191
|
|
83,269
|
|
230,335
|
|
193,036
|
|
|
|
557,201
|
|
443,149
|
|
537,360
|
|
1,535,313
|
|
1,080,146
|
|
Cost of
revenues(1)(2):
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
92,407
|
|
85,757
|
|
80,583
|
|
256,105
|
|
225,636
|
|
Non-advertising
|
21,408
|
|
22,814
|
|
25,890
|
|
72,890
|
|
61,831
|
|
|
|
113,815
|
|
108,571
|
|
106,473
|
|
328,995
|
|
287,467
|
|
Gross
profit
|
443,386
|
|
334,578
|
|
430,887
|
|
1,206,318
|
|
792,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing (1)(2)
|
185,478
|
|
114,345
|
|
183,589
|
|
508,754
|
|
265,836
|
|
Product development (2)
|
91,545
|
|
70,509
|
|
83,877
|
|
260,559
|
|
188,415
|
|
General and administrative (2)
|
28,377
|
|
29,443
|
|
27,242
|
|
89,551
|
|
78,502
|
|
Goodwill and acquired intangibles impairment
|
10,554
|
|
-
|
|
-
|
|
10,554
|
|
-
|
|
|
|
315,954
|
|
214,297
|
|
294,708
|
|
869,418
|
|
532,753
|
|
Income from
operations
|
127,432
|
|
120,281
|
|
136,179
|
|
336,900
|
|
259,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income:
|
|
|
|
|
|
|
|
|
|
|
Earning (Loss) from equity method investments, net
|
10,150
|
|
(11,105)
|
|
(2,527)
|
|
5,851
|
|
(13,227)
|
|
Gain
(Loss) on sale of investments, fair value changes and
impairment
on investments, net (3)
|
50,111
|
|
10,209
|
|
(16,396)
|
|
40,941
|
|
9,777
|
|
Interest and other income, net
|
17,051
|
|
11,994
|
|
20,116
|
|
54,265
|
|
31,452
|
|
|
|
77,312
|
|
11,098
|
|
1,193
|
|
101,057
|
|
28,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
204,744
|
|
131,379
|
|
137,372
|
|
437,957
|
|
287,928
|
|
Income tax
expense
|
(68,129)
|
|
(24,555)
|
|
(27,858)
|
|
(114,737)
|
|
(57,516)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
136,615
|
|
106,824
|
|
109,514
|
|
323,220
|
|
230,412
|
|
Less:
Net income attributable to non-controlling interests
|
91,176
|
|
57,533
|
|
74,462
|
|
214,035
|
|
119,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to SINA's ordinary shareholders
|
$
45,439
|
|
$
49,291
|
|
$
35,052
|
|
$
109,185
|
|
$
111,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share
|
$
0.66
|
|
$
0.69
|
|
$
0.49
|
|
$
1.55
|
|
$
1.56
|
|
Diluted net income
per share (4)
|
$
0.62
|
|
$
0.66
|
|
$
0.47
|
|
$
1.48
|
|
$
1.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income per share
|
69,332
|
|
71,468
|
|
71,210
|
|
70,653
|
|
71,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
71,322
|
|
74,213
|
|
73,553
|
|
72,962
|
|
73,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
$
3,775
|
|
$
2,776
|
|
$
2,890
|
|
$
9,206
|
|
$
7,112
|
|
|
Sales and
marketing
|
7,414
|
|
5,568
|
|
6,474
|
|
18,768
|
|
15,420
|
|
|
Product
development
|
11,205
|
|
9,073
|
|
7,735
|
|
26,427
|
|
22,731
|
|
|
General and
administrative
|
9,012
|
|
8,410
|
|
6,915
|
|
23,335
|
|
23,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
The Company adopted ASU 2016-1, Classification and
Measurement of Financial Instrumentsbeginning the first quarter
of fiscal year 2018. After the adoption of this new accounting
update, the Company measures long-term investments other than those
accounted for under the equity method, at fair value through
earnings. The Company recognized $120.5 million of net
gain from fair value changes in the investments for the three
months ended September 30, 2018. For those investments
without readily determinable fair values, the Company elected 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 are 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
Assets
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,178,966
|
|
|
$
1,990,552
|
|
|
Short-term
investments
|
|
1,349,472
|
|
|
1,381,991
|
|
|
Restricted
cash
|
|
106,579
|
|
|
216,151
|
|
|
Accounts
receivable, net
|
|
458,504
|
|
|
285,681
|
|
|
Prepaid expenses
and other current assets
|
|
415,930
|
|
|
228,238
|
|
|
Subtotal
|
|
3,509,451
|
|
|
4,102,613
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
258,542
|
|
|
262,676
|
|
Goodwill and
intangible assets, net
|
|
248,593
|
|
|
104,207
|
|
Long-term
investments (1)
|
|
1,708,579
|
|
|
1,288,816
|
|
Other
assets
|
|
95,687
|
|
|
57,082
|
|
Total
assets
|
|
$
5,820,852
|
|
|
$
5,815,394
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
149,535
|
|
|
$
130,431
|
|
|
Amount due to
customers
|
|
106,579
|
|
|
216,151
|
|
|
Accrued expenses
and other current liabilities
|
|
459,823
|
|
|
446,779
|
|
|
Short-term bank
loan
|
|
51,306
|
|
|
89,309
|
|
|
Convertible
debt
|
|
153,085
|
|
|
153,092
|
|
|
Deferred
revenues
|
|
146,508
|
|
|
134,580
|
|
|
Income taxes
payable
|
|
106,475
|
|
|
102,458
|
|
|
Subtotal
|
|
1,173,311
|
|
|
1,272,800
|
|
|
|
|
|
|
|
|
|
Convertible
debt
|
|
883,089
|
|
|
879,983
|
|
Long-term deferred
revenues
|
|
46,261
|
|
|
54,372
|
|
Other long-term
liabilities
|
|
48,178
|
|
|
8,510
|
|
|
Total
liabilities
|
|
2,150,839
|
|
|
2,215,665
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
SINA shareholders'
equity (1)
|
|
2,701,822
|
|
|
2,846,842
|
|
|
Non-controlling
interests
|
|
968,191
|
|
|
752,887
|
|
|
Total shareholders'
equity
|
|
3,670,013
|
|
|
3,599,729
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
5,820,852
|
|
|
$
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 measures long-term investments other
than those investments accounted for under the equity method, at
fair value through earnings. For those investments
without readily determinable fair values, the Company elected 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 are 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
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
|
|
|
|
Portal
Advertising
|
$
74,533
|
|
$
87,432
|
|
$
84,173
|
|
$
222,838
|
|
$
225,154
|
|
Other
|
26,707
|
|
39,785
|
|
30,631
|
|
84,112
|
|
88,693
|
|
Subtotal
|
101,240
|
|
127,217
|
|
114,804
|
|
306,950
|
|
313,847
|
|
|
|
|
|
|
|
|
|
|
|
|
Weibo:
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing
|
409,273
|
|
276,803
|
|
369,942
|
|
1,082,164
|
|
664,440
|
|
Weibo
VAS
|
50,898
|
|
43,232
|
|
56,647
|
|
154,479
|
|
108,169
|
|
Subtotal
|
460,171
|
|
320,035
|
|
426,589
|
|
1,236,643
|
|
772,609
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination
|
(4,210)
|
|
(4,103)
|
|
(4,033)
|
|
(8,280)
|
|
(6,310)
|
|
|
|
$
557,201
|
|
$
443,149
|
|
$
537,360
|
|
$
1,535,313
|
|
$
1,080,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
|
|
|
|
Portal
Advertising
|
$
30,501
|
|
$
30,502
|
|
$
28,546
|
|
$
88,420
|
|
$
85,631
|
|
Other
|
17,508
|
|
19,483
|
|
20,146
|
|
54,123
|
|
46,553
|
|
Subtotal
|
48,009
|
|
49,985
|
|
48,692
|
|
142,543
|
|
132,184
|
|
|
|
|
|
|
|
|
|
|
|
|
Weibo
|
70,016
|
|
62,428
|
|
61,790
|
|
194,708
|
|
159,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination
|
(4,210)
|
|
(3,842)
|
|
(4,009)
|
|
(8,256)
|
|
(3,967)
|
|
|
|
$
113,815
|
|
$
108,571
|
|
$
106,473
|
|
$
328,995
|
|
$
287,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
Portal
|
53%
|
|
61%
|
|
58%
|
|
54%
|
|
58%
|
|
Weibo
|
85%
|
|
80%
|
|
86%
|
|
84%
|
|
79%
|
|
|
|
80%
|
|
76%
|
|
80%
|
|
79%
|
|
73%
|
|
SINA
CORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
(U.S. Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
June 30,
2018
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenues
|
$
483,806
|
|
|
|
$
483,806
|
|
$
363,958
|
|
|
|
$
363,958
|
|
$
454,091
|
|
|
|
$
454,091
|
Non-advertising
revenues
|
73,395
|
|
(2,609)
|
(a)
|
70,786
|
|
79,191
|
|
(2,609)
|
(a)
|
76,582
|
|
83,269
|
|
(2,609)
|
(a)
|
80,660
|
Net
revenues
|
$
557,201
|
|
$
(2,609)
|
|
$
554,592
|
|
$
443,149
|
|
$
(2,609)
|
|
$
440,540
|
|
$
537,360
|
|
$
(2,609)
|
|
$
534,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
3,775
|
(b)
|
|
|
|
|
2,776
|
(b)
|
|
|
|
|
2,890
|
(b)
|
|
Gross
profit
|
$
443,386
|
|
$
1,166
|
|
$
444,552
|
|
$
334,578
|
|
$
167
|
|
$
334,745
|
|
$
430,887
|
|
$
281
|
|
$
431,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(27,631)
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,354)
|
(c)
|
|
|
|
|
(23,051)
|
(b)
|
|
|
|
|
(21,124)
|
(b)
|
|
|
|
|
|
(10,554)
|
(d)
|
|
|
|
|
(1,538)
|
(c)
|
|
|
|
|
(1,523)
|
(c)
|
|
Operating
expenses
|
$
315,954
|
|
$
(39,539)
|
|
$
276,415
|
|
$
214,297
|
|
$
(24,589)
|
|
$
189,708
|
|
$
294,708
|
|
$
(22,647)
|
|
$
272,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,406
|
(b)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
1,354
|
(c)
|
|
|
|
|
25,827
|
(b)
|
|
|
|
|
24,014
|
(b)
|
|
|
|
|
|
10,554
|
(d)
|
|
|
|
|
1,538
|
(c)
|
|
|
|
|
1,523
|
(c)
|
|
Income from
operations
|
$
127,432
|
|
$
40,705
|
|
$
168,137
|
|
$
120,281
|
|
$
24,756
|
|
$
145,037
|
|
$
136,179
|
|
$
22,928
|
|
$
159,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,406
|
(b)
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
1,354
|
(c)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
24,014
|
(b)
|
|
|
|
|
|
10,554
|
(d)
|
|
|
|
|
25,827
|
(b)
|
|
|
|
|
1,523
|
(c)
|
|
|
|
|
|
(6,879)
|
(e)
|
|
|
|
|
1,538
|
(c)
|
|
|
|
|
40
|
(e)
|
|
|
|
|
|
(50,111)
|
(f)
|
|
|
|
|
1,474
|
(e)
|
|
|
|
|
16,396
|
(f)
|
|
|
|
|
|
(2,845)
|
(g)
|
|
|
|
|
(10,209)
|
(f)
|
|
|
|
|
(8,849)
|
(g)
|
|
|
|
|
|
1,035
|
(h)
|
|
|
|
|
(7,391)
|
(g)
|
|
|
|
|
1,035
|
(h)
|
|
|
|
|
|
40,311
|
(i)
|
|
|
|
|
(254)
|
(i)
|
|
|
|
|
(85)
|
(i)
|
|
Net income
attributable to SINA's ordinary shareholders
|
$
45,439
|
|
$
22,216
|
|
$
67,655
|
|
$
49,291
|
|
$
8,376
|
|
$
57,667
|
|
$
35,052
|
|
$
31,465
|
|
$
66,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share *
|
$
0.62
|
|
|
|
$
0.93
|
|
$
0.66
|
|
|
|
$
0.77
|
|
$
0.47
|
|
|
|
$
0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
71,322
|
|
-
|
|
71,322
|
|
74,213
|
|
-
|
|
74,213
|
|
73,553
|
|
-
|
|
73,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin -
advertising
|
81%
|
|
1%
|
|
82%
|
|
76%
|
|
1%
|
|
77%
|
|
82%
|
|
1%
|
|
83%
|
Gross margin -
non-advertising
|
71%
|
|
-1%
|
|
70%
|
|
71%
|
|
-1%
|
|
70%
|
|
69%
|
|
-1%
|
|
68%
|
Operating
margin
|
23%
|
|
7%
|
|
30%
|
|
27%
|
|
6%
|
|
33%
|
|
25%
|
|
5%
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenues
|
$1,304,978
|
|
|
|
$1,304,978
|
|
$
887,110
|
|
|
|
$
887,110
|
|
|
|
|
|
|
Non-advertising
revenues
|
230,335
|
|
(7,827)
|
(a)
|
222,508
|
|
193,036
|
|
(7,827)
|
(a)
|
185,209
|
|
|
|
|
|
|
Net
revenues
|
$1,535,313
|
|
$
(7,827)
|
|
$1,527,486
|
|
$
1,080,146
|
|
$
(7,827)
|
|
$1,072,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
9,206
|
(b)
|
|
|
|
|
7,112
|
(b)
|
|
|
|
|
|
|
|
Gross
profit
|
$1,206,318
|
|
$
1,379
|
|
$1,207,697
|
|
$
792,679
|
|
$
(715)
|
|
$
791,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(68,530)
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,512)
|
(c)
|
|
|
|
|
(62,091)
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
(10,554)
|
(d)
|
|
|
|
|
(2,920)
|
(c)
|
|
|
|
|
|
|
|
Operating
expenses
|
$
869,418
|
|
$
(83,596)
|
|
$
785,822
|
|
$
532,753
|
|
$
(65,011)
|
|
$
467,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77,736
|
(b)
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
4,512
|
(c)
|
|
|
|
|
69,203
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
10,554
|
(d)
|
|
|
|
|
2,920
|
(c)
|
|
|
|
|
|
|
|
Income from
operations
|
$
336,900
|
|
$
84,975
|
|
$
421,875
|
|
$
259,926
|
|
$
64,296
|
|
$
324,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77,736
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,512
|
(c)
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
10,554
|
(d)
|
|
|
|
|
69,203
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
(7,290)
|
(e)
|
|
|
|
|
2,920
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
(40,941)
|
(f)
|
|
|
|
|
1,773
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
(19,877)
|
(g)
|
|
|
|
|
(9,777)
|
(f)
|
|
|
|
|
|
|
|
|
|
|
|
3,105
|
(h)
|
|
|
|
|
(20,630)
|
(g)
|
|
|
|
|
|
|
|
|
|
|
|
40,247
|
(i)
|
|
|
|
|
1,038
|
(i)
|
|
|
|
|
|
|
|
Net income
attributable to SINA's ordinary shareholders
|
$
109,185
|
|
$
60,219
|
|
$
169,404
|
|
$
111,205
|
|
$
36,700
|
|
$
147,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share *
|
$
1.48
|
|
|
|
$
2.28
|
|
$
1.48
|
|
|
|
$
1.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
72,962
|
|
-
|
|
72,962
|
|
73,924
|
|
-
|
|
73,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin -
advertising
|
80%
|
|
1%
|
|
81%
|
|
75%
|
|
-
|
|
75%
|
|
|
|
|
|
|
Gross margin -
non-advertising
|
68%
|
|
-1%
|
|
67%
|
|
68%
|
|
-1%
|
|
67%
|
|
|
|
|
|
|
Operating
margin
|
22%
|
|
6%
|
|
28%
|
|
24%
|
|
6%
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
goodwill and acquired intangibles impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) 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.
|
|
|
|
|
|
|
|
|
(f) To
exclude (gain) loss on sale of investments, (gain) loss on deemed
disposal, fair value changes and impairment on investments,
net.
|
|
|
|
|
|
|
|
|
|
|
|
|
(g) To
exclude Non-GAAP to GAAP reconciling items for the income
attributable to non-controlling interests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h) To
exclude the amortization of convertible debt issuance
cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) To
exclude the provision (benefit) for income tax related to item (c)
and (f). 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.
|
|
|
|
|
|
|
|
|
**
|
The Company
considered the tax implication arising from the reconciliation
items, and those items recorded in entities in tax free
jurisdictions were without relevant 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
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
June 30,
2018
|
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To exclude
stock-based compensation
|
|
|
$
674
|
|
|
|
|
|
$
1,822
|
|
|
|
|
|
$
833
|
|
|
|
To exclude
amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
resulting from business acquisitions
|
|
|
1,079
|
|
|
|
|
|
1,127
|
|
|
|
|
|
1,115
|
|
|
|
To exclude (gain)
loss on disposal and impairment on investments,
net
|
|
|
1,245
|
|
|
|
|
|
327
|
|
|
|
|
|
75
|
|
|
|
To exclude gain
resulting from the fair value changes in investments,
net
|
|
|
(9,187)
|
|
|
|
|
|
(1,745)
|
|
|
|
|
|
(1,313)
|
|
|
|
To exclude tax
impacts related to amortization of intangible assets
|
|
|
(263)
|
|
|
|
|
|
(166)
|
|
|
|
|
|
(253)
|
|
|
|
Earning (Loss)
from equity method investments, net
|
$
9,723
|
|
$
(6,452)
|
|
$
3,271
|
|
$
(10,996)
|
|
$
1,365
|
|
$
(9,631)
|
|
$
(2,944)
|
|
$
457
|
|
$
(2,487)
|
|
Share of
amortization of equity investments'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangibles
not on their books
|
364
|
|
(364)
|
|
-
|
|
(130)
|
|
130
|
|
-
|
|
351
|
|
(351)
|
|
-
|
|
Share of tax
impacts related to amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
investments' intangibles not on their books
|
63
|
|
(63)
|
|
-
|
|
21
|
|
(21)
|
|
-
|
|
66
|
|
(66)
|
|
-
|
|
|
$
10,150
|
|
$
(6,879)
|
|
$
3,271
|
|
$
(11,105)
|
|
$
1,474
|
|
$
(9,631)
|
|
$
(2,527)
|
|
$
40
|
|
$
(2,487)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To exclude
stock-based compensation
|
|
|
$
2,091
|
|
|
|
|
|
$
2,878
|
|
|
|
|
|
|
|
|
|
To exclude
amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
resulting from business acquisitions
|
|
|
3,317
|
|
|
|
|
|
2,264
|
|
|
|
|
|
|
|
|
|
To exclude (gain)
loss on disposal and impairment on investments,
net
|
|
|
2,989
|
|
|
|
|
|
(1,313)
|
|
|
|
|
|
|
|
|
|
To exclude gain
resulting from the fair value changes in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments, net
|
|
|
(13,839)
|
|
|
|
|
|
(2,343)
|
|
|
|
|
|
|
|
|
|
To exclude tax
impacts related to amortization of intangible assets
|
|
|
(694)
|
|
|
|
|
|
(330)
|
|
|
|
|
|
|
|
|
|
Earning (Loss)
from equity method investments, net
|
$
4,697
|
|
$
(6,136)
|
|
$
(1,439)
|
|
$
(12,610)
|
|
$
1,156
|
|
$
(11,454)
|
|
|
|
|
|
|
|
Share of
amortization of equity investments'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangibles
not on their books
|
939
|
|
(939)
|
|
-
|
|
(778)
|
|
778
|
|
-
|
|
|
|
|
|
|
|
Share of tax
impacts related to amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
investments' intangibles not on their books
|
215
|
|
(215)
|
|
-
|
|
161
|
|
(161)
|
|
-
|
|
|
|
|
|
|
|
|
$
5,851
|
|
$
(7,290)
|
|
$
(1,439)
|
|
$
(13,227)
|
|
$
1,773
|
|
$
(11,454)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Earning (Loss)
from equity method investments is recorded one quarter in
arrears.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/sina-reports-third-quarter-2018-unaudited-financial-results-300756701.html
SOURCE SINA Corporation