BEIJING, Aug. 20, 2017 /PRNewswire/ -- 58.com Inc.
(NYSE: WUBA) ("58.com" or the "Company"), China's largest online market place for
classifieds, today reported its unaudited financial results for the
second quarter ended June 30,
2017.
Second Quarter 2017 Financial Highlights
- Total revenues were RMB2,593.3
million (US$382.8
million1), a 33.3% increase from the same quarter
of 2016 in Renminbi amounts, exceeding the higher end of the
Company's guidance of RMB2,350
million.
- Gross margin was 90.9% compared with 91.8% in the same quarter
of 2016.
- Income from operations was RMB582.4
million (US$86.0 million),
compared with income from operations of RMB230.7 million in the same quarter of
2016.
- Non-GAAP income from operations2 was RMB716.1 million (US$105.7
million), compared with non-GAAP income from operations of
RMB360.1 million in the same quarter
of 2016.
- Net income attributable to 58.com Inc. was RMB539.3 million (US$79.6
million), compared with net income attributable to 58.com
Inc. of RMB90.1 million in the same
quarter of 2016.
- Non-GAAP net income attributable to 58.com Inc.3 was
RMB661.6 million (US$97.7 million), compared with non-GAAP net
income attributable to 58.com Inc. of RMB133.8 million in the same quarter of
2016.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB3.71
(US$0.55) and RMB3.67 (US$0.54),
respectively. One ADS represents two Class A ordinary shares.
- Non-GAAP basic and diluted earnings per ADS4
attributable to ordinary shareholders were RMB4.55 (US$0.67)
and RMB4.50 (US$0.66), respectively.
First Half 2017 Financial Highlights
- Total revenues were RMB4,581.6
million (US$676.3 million), a
32.6% increase from the same period of last year.
- Gross margin was 90.5% compared with 90.8% during the same
period of last year.
- Income from operations was RMB660.3
million (US$97.5 million),
compared with loss from operations of RMB103.1 million during the same period of last
year.
- Non-GAAP income from operations was RMB933.3 million (US$137.8
million), compared with non-GAAP income from operations of
RMB146.0 million during the same
period of last year.
- Net income attributable to 58.com Inc. was RMB517.8 million (US$76.4
million), compared with net loss attributable to 58.com Inc.
of RMB446.4 million during the same
period of last year.
- Non-GAAP net income attributable to 58.com Inc. was
RMB767.3 million (US$113.3 million), compared with non-GAAP net
loss attributable to 58.com Inc. of RMB212.8
million during the same period of last year.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB3.57
(US$0.53) and RMB3.53 (US$0.52),
respectively. One ADS represents two Class A ordinary shares.
- Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB5.28
(US$0.78) and RMB5.23 (US$0.77),
respectively.
Management Comments
"We are excited to report that revenues significantly exceeded
the higher end of our guidance during the quarter," commented Mr.
Michael Yao, Chairman and Chief
Executive Officer of 58.com. "Among all our categories, jobs
continued to deliver the fastest year-over-year growth and
increasingly accounts for a larger proportion of total revenues.
While the housing market in tier one and two cities remains
relatively soft, revenues from our housing category continue to
show resilience by performing better than expected. We are making
solid progress in developing new and innovative products across
various categories. Our mobile app traffic continues to grow
rapidly and is accounting for a larger portion of our total
traffic."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "We
continued to see strong growth in revenue, traffic and margins
during the quarter. We also recorded our highest ever quarterly
operating margin, net margin and cash flow. This is directly
attributable to our continuing focus on improving operational and
marketing efficiencies. We continue to create new synergies as
Ganji is further integrated and expect to see further opportunities
to improve efficiency emerge as these synergies take hold."
Second Quarter 2017 Financial Results
Revenues
Total revenues were RMB2,593.3
million (US$382.8 million),
representing an increase of 33.3% from RMB1,945.1
million in the same quarter of 2016.
Membership revenues were RMB963.7
million (US$142.3 million), an
increase of 28.2% from RMB751.8
million in the same quarter of 2016. The increase in
membership revenues was primarily driven by an increase in the
number of subscription-based paying membership accounts. The total
number of subscription-based paying membership accounts on the
Company's platforms, which include 58.com, Ganji.com and
Anjuke.com, was approximately 2,464,000 during the second quarter
of 2017, a 24.8% increase from approximately 1,974,000 in the same
quarter of 2016. 58.com defines subscription-based paying
membership accounts as the registered accounts through which users
have purchased the Company's membership subscriptions. The number
of subscription-based paying membership accounts in a given period
represents the paying merchant members whose membership
subscriptions are in their service period at any point during the
given period. Some paying merchant members purchase membership
services from more than one Company platform which contributes
separately to the revenues of each platform.
Online marketing services revenues were RMB1,536.5 million (US$226.8 million), an increase of 36.6% from
RMB1,124.8 million in the same
quarter of 2016. The increase was primarily driven by the
increasing adoption and effectiveness of the Company's various
online marketing services such as real time bidding and priority
listings.
Cost of Revenues
Cost of revenues was RMB235.3
million (US$34.7 million), an
increase of 47.6% from RMB159.4
million in the same quarter of 2016. The year-over-year
increase in the Company's cost of revenues was primarily driven by
increased traffic acquisition costs ("TAC") paid to the Company's
advertising union partners as well as cost of used goods sold on
the Zhuan Zhuan platform, which was partially offset by a reduction
in other types of website maintenance-related costs such as SMS
costs and bandwidth fees.
Gross Profit and Gross Margin
Gross profit was RMB2,358.0
million (US$348.1 million), an
increase of 32.0% from RMB1,785.8
million during the same quarter of 2016.
Gross margin was 90.9%, compared with 91.8% during the same
quarter of 2016.
Operating Expenses
Operating expenses were RMB1,775.6
million (US$262.1 million), an
increase of 14.2% from RMB1,555.0
million in the same quarter of 2016.
Sales and marketing expenses in the second quarter of 2017 were
RMB1,281.6 million (US$189.2 million), an increase of 11.9% from
RMB1,145.1 million in the same
quarter in 2016.
Within sales and marketing expenses, advertising expenses
accounted for RMB521.7 million
(US$77.0 million) and RMB420.1 million in the second quarter of 2017
and 2016, respectively. The increase was primarily due to an
increase in advertising expenses associated with the promotion of
the 58.com and Zhuan Zhuan brands, which were partially offset by a
decrease in advertising spending on Ganji.
Other sales and marketing expenses in the second quarter of 2017
were RMB759.9 million (US$112.2 million), an increase of 4.8% from
RMB725.0 million in the same quarter
in 2016. Other sales and marketing expenses primarily include
salaries, benefits and sales commissions, as well as office
overhead expenses associated with sales, customer service and
marketing teams. The increase was primarily driven by increased
commissions, salaries and benefits for the Company's sales,
customer service and marketing teams.
Research and development expenses in the second quarter of 2017
were RMB323.2 million (US$47.7 million), an increase of 25.8% from
RMB256.9 million in the same quarter
of 2016. The increase was primarily due to increased salary costs
associated with the hiring of additional employees for the research
and development of new features and services.
General and administrative expenses in the second quarter of
2017 were RMB170.9 million
(US$25.2 million), an increase of
11.7% from RMB153.0 million in the
same quarter of 2016. The increase was primarily driven by an
increase in depreciation expenses and other administrative related
expenses.
Income/(Loss) from Operations
Income from operations was RMB582.4
million (US$86.0 million) in
the second quarter of 2017, compared with income from operations of
RMB230.7 million in the same quarter
of 2016. Operating margin, defined as income /(loss) from
operations divided by total revenues, was 22.5% in the second
quarter of 2017, compared with 11.9% in the same quarter of
2016.
Non-GAAP income from operations was RMB716.1 million (US$105.7
million) in the second quarter of 2017, compared with
non-GAAP income from operations of RMB360.1
million in the same quarter of 2016. Non-GAAP operating
margin, defined as non-GAAP income/(loss) from operations divided
by total revenues, was 27.6% in the second quarter of 2017,
compared with 18.6% in the same quarter of 2016.
Other Income/(Expenses)
Other income in the second quarter of 2017 were RMB41.5 million (US$6.1
million), compared with other expenses of RMB125.1 million in the same quarter of 2016.
Other income in the second quarter of 2017 mainly included
investment income of RMB265.7 million
generated from the disposal of long-term investments, which was
partially offset by a RMB207.9
million share of results of equity investees, which
primarily consisted of a RMB205.2
million share of the net loss attributable to 58 Home's
ordinary shareholders calculated based on the Company's ordinary
shareholding in 58 Home.
Net Income/(Loss)
Attributable to 58.com Inc.
Net income attributable to 58.com Inc. was RMB539.3 million
(US$79.6 million) in the second
quarter of 2017, compared with RMB90.1
million in the same quarter of 2016. Net margin, defined as
net income /(loss) attributable to 58.com Inc. divided by total
revenues, was 20.8% in the second quarter of 2017, compared with
4.6% in the same quarter of 2016.
Non-GAAP net income attributable to 58.com Inc. was RMB661.6 million (US$97.7
million) in the second quarter of 2017, compared with
RMB133.8 million in the same quarter
of 2016. Non-GAAP net margin, defined as non-GAAP net income
/(loss) attributable to 58.com Inc. divided by total revenues, was
25.5% in the second quarter of 2017, compared with 6.9% in the same
quarter of 2016.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in the second quarter of 2017 were RMB3.71 (US$0.55)
and RMB3.67 (US$0.54), compared with basic and diluted
earnings per ADS attributable to ordinary shareholders of
RMB0.63 and RMB0.62, in the same quarter of 2016.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in the second quarter of 2017 were
RMB4.55 (US$0.67) and RMB4.50 (US$0.66),
respectively, compared with non-GAAP basic and diluted earnings per
ADS attributable to ordinary shareholders of RMB0.93 and RMB0.91
in the same quarter of 2016.
Cash Flow
Net cash provided by operating activities was RMB700.0 million (US$103.3
million) in the second quarter of 2017, compared with net
cash provided by operating activities of RMB356.1 million in the same quarter of 2016.
First Half 2017 Financial Results
Revenues
Total revenues were RMB4,581.6
million (US$676.3 million) in
the first half of 2017, representing an increase of 32.6%
from RMB3,454.7 million during the same period of
2016.
Membership revenues were RMB1,756.6
million (US$259.3 million) in
the first half of 2017, an increase of 29.7% from RMB1,354.7 million during the same period of
2016. The increase in membership revenues was primarily driven by
an increase in the number of subscription-based paying membership
accounts. The total number of average quarterly subscription-based
paying membership accounts on the Company's platforms, which
include 58.com, Ganji.com and Anjuke.com, was approximately
2,338,000 during the first half of 2017, a 23.3% increase from
approximately 1,896,000 in the same period of 2016.
Online marketing services revenues were RMB2,673.5 million (US$394.6 million) in the first half of 2017, an
increase of 35.6% from RMB1,971.3
million during the same period of 2016. The increase was
primarily driven by the increasing adoption and effectiveness of
the Company's various online marketing services such as real time
bidding and priority listings.
Cost of Revenues
Cost of revenues was RMB434.9
million (US$64.2 million) in
the first half of 2017, an increase of 36.6% from RMB318.4 million during the same period of 2016.
The year-over-year increase in the Company's cost of revenues was
primarily driven by increased TAC paid to the Company's advertising
union partners as well as cost of used goods sold on the Zhuan
Zhuan platform, which was partially offset by a reduction in other
types of website maintenance-related costs such as SMS costs and
bandwidth fees.
Gross Profit and Gross Margin
Gross profit was RMB4,146.7
million (US$612.1 million) in
the first half of 2017, an increase of 32.2% from RMB3,136.3 million during the same period of
2016.
Gross margin was 90.5%, compared with 90.8% during the same
period of 2016.
Operating Expenses
Operating expenses were RMB3,486.4
million (US$514.6 million),
representing an increase of 7.6% from RMB3,239.3 million during the same period of
2016.
Sales and marketing expenses in the first half of 2017 were
RMB2,527.6 million (US$373.1 million), an increase of 2.6% from
RMB2,462.5 million during the same
period in 2016.
Within sales and marketing expenses, advertising expenses
accounted for RMB1,033.9 million
(US$152.6 million) and RMB1,104.4 million during the first half of 2017
and 2016, respectively. The decrease was primarily due to improved
advertising expense control following the acquisitions of Anjuke
and Ganji.
Other sales and marketing expenses in the first half of 2017
were RMB1,493.7 million (US$220.5 million), an increase of 10.0% from
RMB1,358.1 million during the same
period in 2016. Other sales and marketing expenses primarily
include salaries, benefits and sales commissions as well as office
overhead expenses associated with sales, customer service and
marketing teams. The increase was primarily driven by increased
commissions, salaries and benefits for the Company's sales,
customer service and marketing teams.
Research and development expenses in the first half of 2017 were
RMB637.7 million (US$94.1 million), an increase of 30.4% from
RMB489.0 million during the same
period of 2016. The increase was primarily due to increased salary
costs associated with the hiring of additional employees for
research and development of new features and services.
General and administrative expenses in the first half of 2017
were RMB321.1 million (US$47.4 million), an increase of 11.6% from
RMB287.8 million during the same
period of 2016. The increase was primarily driven by an increase in
depreciation expenses and other administrative related
expenses.
Income/(Loss) from Operations
Income from operations was RMB660.3
million (US$97.5 million) in
the first half of 2017, compared with loss from operations of
RMB103.1 million during the same
period of 2016. Operating margin, was positive 14.4% in the first
half of 2017, compared with negative 3.0% during the same period of
2016.
Non-GAAP income from operations was RMB933.3 million (US$137.8
million) in the first half of 2017, compared with non-GAAP
income from operations of RMB146.0
million during the same period of 2016. Non-GAAP operating
margin was 20.3% in the first half of 2017, compared with 4.2%
during the same period of 2016.
Other Income/(Expenses)
Other expenses in the first half of 2017 were RMB55.3 million (US$8.2
million), compared with other expenses of RMB342.0 million during the same period of 2016.
Other expenses in the first half of 2017 mainly included a share of
the net loss of equity investees of RMB307.0
million, which primarily consisted of a share of a net loss
attributable to 58 Home's ordinary shareholders of RMB301.6 million calculated based on the
Company's ordinary shareholding in 58 Home, which was partially
offset by investment income of RMB265.7
million generated from the disposal of certain long-term
investments which are accounted for under cost method.
Net Income/(Loss)
Attributable to 58.com Inc.
Net income attributable to 58.com Inc. was RMB517.8 million
(US$76.4 million) in the first half
of 2017, compared with net loss attributable to 58.com Inc. of
RMB446.4 million in the same period
of 2016. Net margin was positive 11.3% in the first half of 2017,
compared with negative 12.9% during the same period of 2016.
Non-GAAP net income attributable to 58.com Inc. was RMB767.3 million (US$113.3
million) in the first half of 2017, compared with non-GAAP
net loss attributable to 58.com Inc. of RMB212.8 million during the same period of 2016.
Non-GAAP net margin was positive 16.7% in the first half of 2017,
compared with negative 6.2% during the same period of 2016.
Basic and Diluted Earnings/(Loss) per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in the first half of 2017 were RMB3.57 (US$0.53)
and RMB3.53 (US$0.52), compared with basic and diluted loss
per ADS attributable to ordinary shareholders of RMB3.13, during the same period of 2016.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in the first half of 2017 were RMB5.28 (US$0.78)
and RMB5.23 (US$0.77), respectively, compared with non-GAAP
basic and diluted loss per ADS attributable to ordinary
shareholders of RMB1.49 during the
same period of 2016.
Cash Flow
Net cash provided by operating activities was RMB1,122.4 million (US$165.7 million) in the first half of 2017,
compared with net cash provided by operating activities of
RMB498.9 million during the same
period of 2016.
Cash and Cash Equivalents, Term Deposits and Short-term
Investments
As of June 30, 2017, the Company
had cash and cash equivalents, term deposits and short-term
investments of RMB3,728.3 million
(US$550.4 million).
Shares Outstanding
As of June 30, 2017, the Company
had a total of 291,148,949 ordinary shares (including 242,708,689
Class A and 48,440,260 Class B ordinary shares) issued and
outstanding. One ADS represents two Class A ordinary shares.
Business Outlook
Based on the Company's current operations, total revenues for
the third quarter of 2017 are expected to be between
RMB2,550 million and RMB2,650
million. This represents a year-over-year increase of
24.8% to 29.7% in Renminbi amounts. These estimates reflect the
Company's current and preliminary view, which is subject to
change.
Non-GAAP Financial
Measures
To supplement the financial measures prepared in accordance with
generally accepted accounting principles in the United States, or GAAP, this press release
presents non-GAAP income/(loss) from operations, non-GAAP operating
margin, non-GAAP net income/(loss) attributable to 58.com Inc.,
non-GAAP net margin and non-GAAP basic and diluted earnings/(loss)
per share and per ADS by excluding share-based compensation
expenses of the Company (net of the amount allocated to
noncontrolling interests), amortization of intangible assets
resulting from business acquisitions, share-based compensation
expenses included in share of results of equity investees, loss on
conversion of Guazi Convertible Note, gain on deconsolidation and
disposal of business and income tax effects of above GAAP to
non-GAAP reconciling items. The Company believes these non-GAAP
financial measures are important to help investors understand the
Company's operating and financial performance, compare business
trends among different reporting periods on a consistent basis and
assess the Company's core operating results, as they exclude
certain expenses that are not expected to result in cash
payments. The use of the above non-GAAP financial measures
has certain limitations. Share-based compensation expenses,
amortization of intangible assets resulting from business
acquisitions, non-cash gain or loss and income tax effects
resulting from GAAP to non-GAAP reconciling items have been and
will continue to be incurred in the future and are not reflected in
the presentation of the non-GAAP financial measures, but should be
considered in the overall evaluation of the Company's results. The
Company compensates for these limitations by providing the relevant
disclosure of its share-based compensation expenses of the Company
(net of the amount allocated to noncontrolling interests),
amortization of intangible assets resulting from business
acquisitions, share-based compensation expenses included in share
of results of equity investees, loss on conversion of Guazi
Convertible Note, gain on deconsolidation and disposal of business
and income tax effects of above GAAP to non-GAAP reconciling items,
all of which should be considered when evaluating the Company's
performance. These non-GAAP financial measures should be considered
in addition to financial measures prepared in accordance with GAAP,
but should not be considered a substitute for, or superior to,
financial measures prepared in accordance with GAAP. Reconciliation
of each of these non-GAAP financial measures to the most directly
comparable GAAP financial measure is set forth at the end of this
release.
Conference Call
58.com's management will host an earnings conference call
on August 21, 2017 at 8:00 a.m. U.S. Eastern
Time (8:00 p.m.
Beijing / Hong Kong time on the same day).
Dial-in details for the earnings conference call are as
follows:
International:
|
+1-412-902-4272
|
|
|
U.S. Toll
Free:
|
+1-888-346-8982
|
|
|
Hong Kong:
|
800-905945
|
|
|
China:
|
4001-201203
|
|
|
Passcode:
|
WUBA
|
|
|
|
|
|
Please dial in 15 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available after the
conclusion of the conference call through 8:00 a.m. U.S.
Eastern Time, August 28, 2017. The dial-in details for the
replay are as follows:
International:
|
+1-412-317-0088
|
|
U.S. Toll
Free:
|
+1-877-344-7529
|
|
Passcode:
|
10111517
|
|
|
|
|
|
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of 58.com's
website at http://www.58.com.
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online marketplace for
classifieds, as measured by monthly unique visitors on both its
www.58.com website and mobile applications. The Company's online
marketplace enables local merchants and consumers to connect, share
information and conduct business. 58.com's broad, in-depth and high
quality local information, combined with its easy-to-use website
and mobile applications, has made it a trusted marketplace for
consumers. 58.com's strong brand recognition, large and growing
user base, merchant network and massive database of local
information create a powerful network effect.
Safe Harbor Statements
This press release contains forward-looking statements made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. 58.com may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including statements about 58.com's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: 58.com's goals and strategies; its future business
development, financial condition and results of operations; its
ability to retain and grow its user base and network of local
merchants for its online marketplace; the growth of, and trends in,
the markets for its services in China; the demand for and market acceptance of
its brand and services; competition in its industry in China; its ability to maintain the network
infrastructure necessary to operate its website and mobile
applications; relevant government policies and regulations relating
to the corporate structure, business and industry; and its ability
to protect its users' information and adequately address privacy
concerns. Further information regarding these and other risks,
uncertainties or factors is included in the Company's filings with
the U.S. Securities and Exchange Commission. All information
provided in this press release is current as of the date of the
press release, and 58.com does not undertake any obligation to
update such information, except as required under applicable
law.
For more information, please contact:
58.com Inc.
ir@58.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
58.com Inc. UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands, except share
and per share data, unless otherwise noted)
|
|
|
As
of
|
|
December
31,
2016
|
June
30,
2017
|
June
30,
2017
|
|
RMB
|
RMB
|
US$
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,200,457
|
2,594,009
|
382,913
|
Restricted
cash-current
|
1,151,940
|
1,164,337
|
171,873
|
Term
deposits
|
26,361
|
5,420
|
800
|
Short-term
investments
|
833,480
|
1,128,900
|
166,642
|
Accounts receivable,
net
|
424,892
|
530,969
|
78,379
|
Prepayments and other
current assets
|
426,056
|
652,876
|
96,374
|
Total current
assets
|
4,063,186
|
6,076,511
|
896,981
|
Non-current
assets:
|
|
|
|
Restricted
cash-non-current
|
_
|
792,000
|
116,911
|
Property and
equipment, net
|
1,480,921
|
1,413,090
|
208,593
|
Intangible assets,
net
|
1,532,228
|
1,419,950
|
209,605
|
Land use rights,
net
|
3,766
|
3,727
|
550
|
Goodwill
|
15,903,677
|
15,903,677
|
2,347,614
|
Long-term
investments
|
2,118,461
|
2,142,885
|
316,321
|
Long-term prepayments
and other non-current assets
|
223,767
|
350,916
|
51,800
|
Total non-current
assets
|
21,262,820
|
22,026,245
|
3,251,394
|
Total
assets
|
25,326,006
|
28,102,756
|
4,148,375
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
loans
|
1,842,720
|
1,068,047
|
157,659
|
Accounts
payable
|
611,947
|
675,849
|
99,765
|
Deferred
revenues
|
1,845,846
|
2,056,959
|
303,637
|
Customer
advances
|
1,236,076
|
1,309,213
|
193,259
|
Taxes
payable
|
62,084
|
136,376
|
20,131
|
Salary and welfare
payable
|
553,506
|
480,734
|
70,963
|
Accrued expenses and
other current liabilities
|
727,904
|
654,594
|
96,627
|
Total current
liabilities
|
6,880,083
|
6,381,772
|
942,041
|
Non-current
liabilities:
|
|
|
|
Long-term
loan
|
150,000
|
878,248
|
129,642
|
Deferred tax
liabilities
|
373,810
|
346,330
|
51,123
|
Other non-current
liabilities
|
69,937
|
30,564
|
4,512
|
Total non-current
liabilities
|
593,747
|
1,255,142
|
185,277
|
Total
liabilities
|
7,473,830
|
7,636,914
|
1,127,318
|
Mezzanine
equity:
|
|
|
|
Mezzanine classified
noncontrolling interests
|
86,457
|
1,809,470
|
267,105
|
Total mezzanine
equity
|
86,457
|
1,809,470
|
267,105
|
Shareholders'
equity:
|
|
|
|
Ordinary shares
(US$0.00001 par value, 4,800,000,000 Class A and
200,000,000 Class B shares authorized, 240,930,737 Class A and
48,740,260 Class B shares issued and outstanding as of December
31, 2016 and 242,708,689 Class A and 48,440,260 Class B shares
issued and outstanding as of June 30, 2017,
respectively)
|
18
|
18
|
3
|
Additional paid-in
capital
|
20,907,599
|
21,209,557
|
3,130,839
|
Accumulated
deficit
|
(3,070,735)
|
(2,521,205)
|
(372,167)
|
Accumulated other
comprehensive loss
|
(138,597)
|
(101,551)
|
(14,990)
|
Total 58.com Inc.
shareholders' equity
|
17,698,285
|
18,586,819
|
2,743,685
|
Noncontrolling
interests
|
67,434
|
69,553
|
10,267
|
Total shareholders'
equity
|
17,765,719
|
18,656,372
|
2,753,952
|
Total liabilities,
mezzanine equity and shareholders' equity
|
25,326,006
|
28,102,756
|
4,148,375
|
58.com Inc. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in
thousands, except share, per share and per ADS data, unless
otherwise noted)
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June
30,
2016
|
June
30,
2017
|
June
30,
2017
|
|
June
30,
2016
|
June
30,
2017
|
June
30,
2017
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
Revenues:
|
|
|
|
|
|
|
|
Membership
|
751,797
|
963,677
|
142,253
|
|
1,354,745
|
1,756,605
|
259,300
|
Online marketing
services
|
1,124,848
|
1,536,461
|
226,804
|
|
1,971,285
|
2,673,503
|
394,648
|
E-commerce
services
|
49,015
|
26,416
|
3,899
|
|
85,862
|
41,827
|
6,174
|
Other
services
|
19,470
|
66,753
|
9,854
|
|
42,813
|
109,643
|
16,185
|
Total
revenues
|
1,945,130
|
2,593,307
|
382,810
|
|
3,454,705
|
4,581,578
|
676,307
|
Cost of
revenues(1)
|
(159,378)
|
(235,291)
|
(34,732)
|
|
(318,440)
|
(434,883)
|
(64,195)
|
Gross
profit
|
1,785,752
|
2,358,016
|
348,078
|
|
3,136,265
|
4,146,695
|
612,112
|
Operating
expenses(1):
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(1,145,105)
|
(1,281,553)
|
(189,176)
|
|
(2,462,497)
|
(2,527,571)
|
(373,106)
|
Research and
development expenses
|
(256,949)
|
(323,192)
|
(47,708)
|
|
(488,998)
|
(637,670)
|
(94,129)
|
General and
administrative expenses
|
(152,993)
|
(170,859)
|
(25,221)
|
|
(287,839)
|
(321,131)
|
(47,404)
|
Total operating
expenses
|
(1,555,047)
|
(1,775,604)
|
(262,105)
|
|
(3,239,334)
|
(3,486,372)
|
(514,639)
|
Income/(loss) from
operations
|
230,705
|
582,412
|
85,973
|
|
(103,069)
|
660,323
|
97,473
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
Interest expenses,
net
|
(15,647)
|
(5,022)
|
(741)
|
|
(22,017)
|
(10,802)
|
(1,595)
|
Investment
income/(loss), net
|
(14,639)
|
251,122
|
37,069
|
|
(11,785)
|
258,747
|
38,195
|
Share of results of
equity investees
|
(208,685)
|
(207,909)
|
(30,690)
|
|
(347,230)
|
(306,980)
|
(45,315)
|
Gain on
deconsolidation and disposal of businesses
|
79,581
|
_
|
_
|
|
79,581
|
_
|
_
|
Foreign currency
exchange gain/(loss), net
|
(6,719)
|
223
|
33
|
|
(1,423)
|
184
|
27
|
Others, net
|
40,992
|
3,100
|
458
|
|
(39,116)
|
3,572
|
527
|
Income/(loss)
before tax
|
105,588
|
623,926
|
92,102
|
|
(445,059)
|
605,044
|
89,312
|
Income tax
benefits/(expenses)
|
(14,139)
|
(55,358)
|
(8,172)
|
|
1,172
|
(53,395)
|
(7,882)
|
Net
income/(loss)
|
91,449
|
568,568
|
83,930
|
|
(443,887)
|
551,649
|
81,430
|
Add: Net loss/(income)
attributable to noncontrolling interests
|
2,173
|
(2,009)
|
(297)
|
|
4,514
|
(2,119)
|
(313)
|
Less: Deemed dividend
to mezzanine classified noncontrolling
interests
|
(3,519)
|
(27,288)
|
(4,028)
|
|
(6,994)
|
(31,776)
|
(4,691)
|
Net income/(loss)
attributable to 58.com Inc
|
90,103
|
539,271
|
79,605
|
|
(446,367)
|
517,754
|
76,426
|
Net earnings/(loss)
per ordinary share attributable to ordinary
shareholders ‑ basic
|
0.31
|
1.85
|
0.27
|
|
(1.57)
|
1.78
|
0.26
|
Net earnings/(loss)
per ordinary share attributable to ordinary
shareholders ‑ diluted
|
0.31
|
1.83
|
0.27
|
|
(1.57)
|
1.76
|
0.26
|
Net earnings/(loss)
per ADS attributable to ordinary shareholders –
basic (1 ADS represents 2 Class A ordinary shares)
|
0.63
|
3.71
|
0.55
|
|
(3.13)
|
3.57
|
0.53
|
Net earnings/(loss)
per ADS attributable to ordinary shareholders –
diluted (1 ADS represents 2 Class A ordinary shares)
|
0.62
|
3.67
|
0.54
|
|
(3.13)
|
3.53
|
0.52
|
Weighted average
number of ordinary shares used in computing basic
earnings/(loss) per share
|
286,918,787
|
290,768,816
|
290,768,816
|
|
284,797,507
|
290,383,016
|
290,383,016
|
Weighted average
number of ordinary shares used in computing
diluted earnings/(loss) per share
|
292,381,030
|
293,996,868
|
293,996,868
|
|
284,797,507
|
293,645,948
|
293,645,948
|
|
Note:
|
(1)
Share‑based compensation expenses were allocated in cost of
revenues and operating expenses as follows:
|
|
Cost of
revenues
|
321
|
424
|
63
|
|
612
|
998
|
147
|
Sales and marketing
expenses
|
13,525
|
14,909
|
2,201
|
|
26,488
|
32,603
|
4,813
|
Research and
development expenses
|
22,177
|
31,379
|
4,632
|
|
45,565
|
61,210
|
9,035
|
General and
administrative expenses
|
35,908
|
31,637
|
4,670
|
|
61,577
|
65,982
|
9,740
|
58.com Inc. Reconciliation of GAAP
and Non-GAAP Results (in thousands, except share, ADS,
per share and per ADS data, unless otherwise noted)
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June
30,
2016
|
June
30,
2017
|
June
30,
2017
|
|
June
30,
2016
|
June
30,
2017
|
June
30,
2017
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
GAAP income/(loss)
from operations
|
230,705
|
582,412
|
85,973
|
|
(103,069)
|
660,323
|
97,473
|
Share-based
compensation expenses
|
71,931
|
78,349
|
11,566
|
|
134,242
|
160,793
|
23,735
|
Amortization of intangible
assets resulting from business
acquisitions
|
57,432
|
55,348
|
8,170
|
|
114,864
|
112,169
|
16,558
|
Non-GAAP income
from operations
|
360,068
|
716,109
|
105,709
|
|
146,037
|
933,285
|
137,766
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss) attributable to 58.com Inc
|
90,103
|
539,271
|
79,605
|
|
(446,367)
|
517,754
|
76,426
|
Share-based
compensation expenses
|
71,931
|
78,349
|
11,566
|
|
134,242
|
160,793
|
23,735
|
Share-based
compensation attributable to noncontrolling interests
|
(147)
|
_
|
_
|
|
(151)
|
_
|
_
|
Amortization of intangible
assets resulting from business
acquisitions
|
57,432
|
55,348
|
8,170
|
|
114,864
|
112,169
|
16,558
|
Share-based compensation expenses included in share of results
of
equity
investees
|
385
|
2,166
|
320
|
|
777
|
4,358
|
643
|
Loss on conversion of
Guazi Convertible Note
|
_
|
_
|
_
|
|
84,177
|
_
|
_
|
Gain on
deconsolidation and disposal of business
|
(79,581)
|
_
|
_
|
|
(79,581)
|
_
|
_
|
Income tax effects of
GAAP to non-GAAP reconciling items5
|
(6,370)
|
(13,556)
|
(2,001)
|
|
(20,728)
|
(27,761)
|
(4,098)
|
Non-GAAP net
income/(loss) attributable to 58.com Inc
|
133,753
|
661,578
|
97,660
|
|
(212,767)
|
767,313
|
113,264
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
11.9%
|
22.5%
|
22.5%
|
|
(3.0)%
|
14.4%
|
14.4%
|
Share-based compensation
expenses
|
3.7%
|
3.0%
|
3.0%
|
|
3.9%
|
3.5%
|
3.5%
|
Amortization of
intangible assets resulting from business
acquisitions
|
3.0%
|
2.1%
|
2.1%
|
|
3.3%
|
2.4%
|
2.4%
|
Non-GAAP operating
margin
|
18.6%
|
27.6%
|
27.6%
|
|
4.2%
|
20.3%
|
20.3%
|
|
|
|
|
|
|
|
|
GAAP net
margin
|
4.6%
|
20.8%
|
20.8%
|
|
(12.9)%
|
11.3%
|
11.3%
|
Share-based compensation
expenses
|
3.7%
|
3.0%
|
3.0%
|
|
3.9%
|
3.5%
|
3.5%
|
Share-based
compensation attributable to noncontrolling interests
|
0.0%
|
_
|
_
|
|
0.0%
|
_
|
_
|
Amortization of intangible assets resulting from business
acquisitions
|
3.0%
|
2.1%
|
2.1%
|
|
3.3%
|
2.4%
|
2.4%
|
Share-based compensation expenses included in share of results
of
equity
investees
|
0.0%
|
0.1%
|
0.1%
|
|
0.0%
|
0.1%
|
0.1%
|
Loss on conversion of
Guazi Convertible Note
|
_
|
_
|
_
|
|
2.4%
|
_
|
_
|
Gain on
deconsolidation and disposal of business
|
(4.1)%
|
_
|
_
|
|
(2.3)%
|
_
|
_
|
Income tax effects of GAAP to non-GAAP reconciling items
|
(0.3)%
|
(0.5)%
|
(0.5)%
|
|
(0.6)%
|
(0.6)%
|
(0.6)%
|
Non-GAAP net
margin
|
6.9%
|
25.5%
|
25.5%
|
|
(6.2)%
|
16.7%
|
16.7%
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing
non-GAAP basic earnings/(loss) per share
|
286,918,787
|
290,768,816
|
290,768,816
|
|
284,797,507
|
290,383,016
|
290,383,016
|
Weighted average
number of ordinary shares used in computing
non-GAAP diluted earnings/(loss) per share
|
292,381,030
|
293,996,868
|
293,996,868
|
|
284,797,507
|
293,645,948
|
293,645,948
|
Weighted average
number of ADS used in computing non-GAAP
basic earnings/(loss) per ADS
|
143,459,394
|
145,384,408
|
145,384,408
|
|
142,398,753
|
145,191,508
|
145,191,508
|
Weighted average
number of ADS used in computing non-GAAP
diluted earnings/(loss) per ADS
|
146,190,515
|
146,998,434
|
146,998,434
|
|
142,398,753
|
146,822,974
|
146,822,974
|
|
|
|
|
|
|
|
|
Non-GAAP net
earnings/(loss) per ordinary share attributable to
ordinary shareholders ‑ basic
|
0.47
|
2.28
|
0.34
|
|
(0.75)
|
2.64
|
0.39
|
Non-GAAP net earnings
/(loss) per ordinary share attributable to
ordinary shareholders ‑ diluted
|
0.46
|
2.25
|
0.33
|
|
(0.75)
|
2.61
|
0.39
|
Non-GAAP net earnings
/(loss) per ADS attributable to ordinary
shareholders ‑ basic
|
0.93
|
4.55
|
0.67
|
|
(1.49)
|
5.28
|
0.78
|
Non-GAAP net earnings
/(loss) per ADS attributable to ordinary
shareholders ‑ diluted
|
0.91
|
4.50
|
0.66
|
|
(1.49)
|
5.23
|
0.77
|
1 This press release contains translations of certain
Renminbi amounts into U.S. dollars (US$) solely for the convenience
of the reader. Unless otherwise specified, all translations of
Renminbi (RMB) amounts into US$ amounts in this press release are
made at RMB6.7744 to US$1.00, which was the U.S. dollars middle rate
announced by the PRC State Administration of Foreign Exchange on
June 30, 2017. The percentages stated
in this press release are calculated based on the Renminbi amounts.
On August 18, 2017, such exchange
rate was RMB6.6744 to US$1.00.
2 Non-GAAP income/(loss) from operations is defined
as income/(loss) from operations excluding share-based compensation
expenses and amortization of intangible assets resulting from
business acquisitions. See "Reconciliation of GAAP and Non-GAAP
Results" at the end of this press release.
3 Non-GAAP net income/(loss) attributable to 58.com
Inc. is defined as net income/(loss) attributable to 58.com Inc.
excluding share-based compensation expenses of the Company (net of
the amount allocated to noncontrolling interests), amortization of
intangible assets resulting from business acquisitions, share-based
compensation expenses included in share of results of equity
investees, loss on conversion of Guazi Convertible Note, gain
on deconsolidation and disposal of business and income tax effects
of GAAP to non-GAAP reconciling items. See "Reconciliation of GAAP
and Non-GAAP Results" at the end of this press release.
4 Non-GAAP basic and diluted earnings/(loss) per ADS
is defined as non-GAAP net income/(loss) attributable to 58.com
Inc. divided by weighted average number of basic and diluted
ADS.
5 This is to exclude the income tax benefits related
to amortization of intangible assets resulting from business
acquisitions calculated at PRC statutory income tax rate of 25% and
income tax expense related to dispose of business. Other GAAP to
non-GAAP reconciling items have no income tax effect.
View original
content:http://www.prnewswire.com/news-releases/58com-reports-second-quarter-2017-unaudited-financial-results-300506841.html
SOURCE 58.com