BEIJING, Nov. 12, 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
third quarter ended September 30,
2017.
Third Quarter 2017 Financial Highlights
- Total revenues were RMB2,722.5
million (US$410.2
million1), a 33.3% increase from the same quarter
of 2016 in Renminbi amounts, exceeding the higher end of the
Company's guidance of RMB2,650
million.
- Gross margin was 91.6% compared with 91.4% in the same quarter
of 2016.
- Income from operations was RMB522.4
million (US$78.7 million),
compared with income from operations of RMB143.2 million in the same quarter of
2016.
- Non-GAAP income from operations2 was RMB663.4 million (US$99.9
million), compared with non-GAAP income from operations of
RMB266.3 million in the same quarter
of 2016.
- Net income attributable to 58.com Inc. was RMB353.3 million (US$53.2
million), compared with net loss attributable to 58.com Inc.
of RMB199.4 million in the same
quarter of 2016.
- Non-GAAP net income attributable to 58.com Inc.3 was
RMB478.7 million (US$72.1 million), compared with non-GAAP net loss
attributable to 58.com Inc. of RMB18.2
million in the same quarter of 2016.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB2.42
(US$0.36) and RMB2.38 (US$0.36),
respectively. One ADS represents two Class A ordinary shares.
- Non-GAAP basic and diluted earnings per ADS4
attributable to ordinary shareholders were RMB3.28 (US$0.49)
and RMB3.23 (US$0.49), respectively.
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1
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This press release
contains translations of certain Renminbi amounts into U.S. dollars
(US$) 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 RMB6.6369 to US$1.00,
which was the U.S. dollars middle rate announced by the PRC State
Administration of Foreign Exchange on September 29, 2017. The
percentages stated in this press release are calculated based on
the Renminbi amounts. On November 10, 2017, such exchange rate was
RMB6.6282 to US$1.00.
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2
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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.
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3
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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.
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4
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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.
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Management Comments
"We have had another great quarter in which revenue again
exceeded the high end of our guidance," commented Mr. Michael Yao, Chairman and Chief Executive
Officer of 58.com. "We continued to drive traffic growth and expand
user engagement by deploying new and innovative technologies,
particularly on our mobile applications. We are the clear market
leader in major categories such as jobs, rental and secondary
housing in China in terms of
traffic and revenues. We continue to see enormous market
opportunities and will invest further to grow our platforms while
improving operational efficiency."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "Our
operating and net margins and cash flow all improved
significantly when compared to a year ago as we continue to focus
on improving operational and marketing efficiencies and develop
more synergies from further consolidation of 58 and Ganji."
Third Quarter 2017 Financial Results
Revenues
Total revenues were RMB2,722.5
million (US$410.2 million),
representing an increase of 33.3% from RMB2,042.6
million in the same quarter of 2016.
Membership revenues were RMB994.1
million (US$149.8 million), an
increase of 26.7% from RMB784.4
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 2,611,000 during the third quarter of
2017, a 26.3% increase from approximately 2,067,000 in the same
quarter of 2016. The Company 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 RMB1,660.5 million (US$250.2 million), an increase of 38.0% from
RMB1,203.1 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, priority
listing and various other online marketing services.
Cost of Revenues
Cost of revenues was RMB227.8
million (US$34.3 million), an
increase of 29.0% from RMB176.6
million in the same quarter of 2016. The year-over-year
increase in the Company's cost of revenues was primarily driven by
increases in the cost of used goods sold on the Company's Zhuan
Zhuan platform.
Gross Profit and Gross Margin
Gross profit was RMB2,494.8
million (US$375.9 million), an
increase of 33.7% from RMB1,866.1
million during the same quarter of 2016.
Gross margin was 91.6%, compared with 91.4% during the same
quarter of 2016.
Operating Expenses
Operating expenses were RMB1,972.3
million (US$297.2 million), an
increase of 14.5% from RMB1,722.8
million in the same quarter of 2016.
Sales and marketing expenses in the third quarter of 2017 were
RMB1,346.2 million (US$202.8 million), an increase of 7.3% from
RMB1,254.2 million in the same
quarter in 2016.
Within sales and marketing expenses, advertising expenses
accounted for RMB541.2 million
(US$81.5 million) and RMB481.1 million in the third 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 third quarter of 2017
were RMB805.0 million (US$121.3 million), an increase of 4.1% from
RMB773.1 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 for the Company's sales, customer service and marketing
teams.
Research and development expenses in the third quarter of 2017
were RMB372.9 million (US$56.2 million), an increase of 22.0% from
RMB305.5 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 third quarter of 2017
were RMB253.3 million (US$38.2 million), an increase of 55.2% from
RMB163.2 million in the same quarter
of 2016. The increase was primarily driven by an increase in
salaries, share-based compensation expenses and other
administrative related expenses.
Income from Operations
Income from operations was RMB522.4
million (US$78.7 million) in
the third quarter of 2017, compared with income from operations of
RMB143.2 million in the same quarter
of 2016. Operating margin, defined as income from operations
divided by total revenues, was 19.2% in the third quarter of 2017,
compared with 7.0% in the same quarter of 2016.
Non-GAAP income from operations was RMB663.4 million (US$99.9
million) in the third quarter of 2017, compared with
non-GAAP income from operations of RMB266.3
million in the same quarter of 2016. Non-GAAP operating
margin, defined as non-GAAP income from operations divided by total
revenues, was 24.3% in the third quarter of 2017, compared with
13.0% in the same quarter of 2016.
Other Expenses
Other expenses in the third quarter of 2017 were RMB81.4 million (US$12.3
million), compared with other expenses of RMB350.2 million in the same quarter of 2016.
Other expenses in the third quarter of 2017 mainly included a
RMB182.1 million share of results of
equity investees, which primarily consisted of a RMB175.1 million share of the net loss
attributable to 58 Home's ordinary shareholders calculated based on
the Company's ordinary shareholding in 58 Home, which was partially
offset by investment income of RMB56.0
million and government subsidies of RMB49.8 million.
Net Income/(Loss)
Attributable to 58.com Inc.
Net income attributable to 58.com Inc. was RMB353.3 million
(US$53.2 million) in the third
quarter of 2017, compared with net loss attributable to 58.com Inc.
of RMB199.4 million in the same
quarter of 2016. Net margin, defined as net income /(loss)
attributable to 58.com Inc. divided by total revenues, was positive
13.0% in the third quarter of 2017, compared with negative 9.8% in
the same quarter of 2016.
Non-GAAP net income attributable to 58.com Inc. was RMB478.7 million (US$72.1
million) in the third quarter of 2017, compared with net
loss attributable to 58.com Inc. of RMB18.2
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 positive 17.5% in the third quarter
of 2017, compared with negative 0.9% in the same quarter of
2016.
Basic and Diluted Earnings/(Losses) per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in the third quarter of 2017 were RMB2.42 (US$0.36)
and RMB2.38 (US$0.36), respectively, compared with
RMB1.38 for both the basic and
diluted losses per ADS attributable to ordinary shareholders in the
same quarter of 2016.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in the third quarter of 2017 were
RMB3.28 (US$0.49) and RMB3.23 (US$0.49),
respectively, compared with RMB0.13
for both the non-GAAP basic and diluted losses per ADS attributable
to ordinary shareholders in the same quarter of 2016.
Cash Flow
Net cash provided by operating activities was RMB699.1 million (US$105.3
million) in the third quarter of 2017, compared with net
cash provided by operating activities of RMB546.8 million in the same quarter of 2016.
Cash and Cash Equivalents, Term Deposits and Short-term
Investments
As of September 30, 2017, the
Company had cash and cash equivalents, term deposits and short-term
investments of RMB4,347.0 million
(US$655.0 million).
Shares Outstanding
As of September 30, 2017, the
Company had a total of 293,020,285 ordinary shares (including
244,980,025 Class A and 48,040,260 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 fourth quarter of 2017 are expected to be between RMB2,625 million and RMB2,725 million. This
represents a year-over-year increase of 25.3% to 30.1% 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 November 13, 2017 at 8:00 a.m. U.S. Eastern
Time (9:00 p.m.
Beijing / Hong Kong time on the same day).
Dial-in details for the earnings conference call are as
follows:
International:
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+1-412-317-5225
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U.S. Toll
Free:
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+1-866-235-9918
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Hong Kong:
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800-905945
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China:
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4001-201203
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Passcode:
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WUBA
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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, November 20, 2017. The dial-in details for the
replay are as follows:
International:
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+1-412-317-0088
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U.S. Toll
Free:
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+1-877-344-7529
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Passcode:
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10114221
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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.
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UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except share and per share data, unless otherwise
noted)
|
|
|
As
of
|
|
December
31,
2016
|
September
30,
2017
|
September
30,
2017
|
|
RMB
|
RMB
|
US$
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,200,457
|
1,834,196
|
276,363
|
Restricted
cash-current
|
1,151,940
|
668,014
|
100,652
|
Term
deposits
|
26,361
|
_
|
_
|
Short-term
investments
|
833,480
|
2,512,792
|
378,609
|
Accounts receivable,
net
|
424,892
|
569,243
|
85,769
|
Prepayments and other
current assets
|
426,056
|
747,988
|
112,701
|
Total current
assets
|
4,063,186
|
6,332,233
|
954,094
|
Non-current
assets:
|
|
|
|
Restricted
cash-non-current
|
_
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792,000
|
119,333
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Property and
equipment, net
|
1,480,921
|
1,376,412
|
207,388
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Intangible assets,
net
|
1,532,228
|
1,365,301
|
205,714
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Land use rights,
net
|
3,766
|
3,708
|
559
|
Goodwill
|
15,903,677
|
15,903,677
|
2,396,251
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Long-term
investments
|
2,118,461
|
2,003,761
|
301,912
|
Long-term prepayments
and other non-current assets
|
223,767
|
308,810
|
46,529
|
Total non-current
assets
|
21,262,820
|
21,753,669
|
3,277,686
|
Total
assets
|
25,326,006
|
28,085,902
|
4,231,780
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LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
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|
Current
liabilities:
|
|
|
|
Short-term
loans
|
1,842,720
|
581,311
|
87,588
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Accounts
payable
|
611,947
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604,849
|
91,134
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Deferred
revenues
|
1,845,846
|
2,136,745
|
321,949
|
Customer
advances
|
1,236,076
|
1,406,119
|
211,864
|
Taxes
payable
|
62,084
|
143,117
|
21,564
|
Salary and welfare
payable
|
553,506
|
540,730
|
81,473
|
Accrued expenses and
other current liabilities
|
727,904
|
562,863
|
84,808
|
Total current
liabilities
|
6,880,083
|
5,975,734
|
900,380
|
Non-current
liabilities:
|
|
|
|
Long-term
loan
|
150,000
|
863,467
|
130,101
|
Deferred tax
liabilities
|
373,810
|
332,774
|
50,140
|
Other non-current
liabilities
|
69,937
|
23,970
|
3,612
|
Total non-current
liabilities
|
593,747
|
1,220,211
|
183,853
|
Total
liabilities
|
7,473,830
|
7,195,945
|
1,084,233
|
Mezzanine
equity:
|
|
|
|
Mezzanine classified
noncontrolling interests
|
86,457
|
1,714,490
|
258,327
|
Total mezzanine
equity
|
86,457
|
1,714,490
|
258,327
|
Shareholders'
equity:
|
|
|
|
Ordinary shares
(US$0.00001 par value, 4,800,000,000 Class A and 200,000,000 Class
B shares authorized, 240,930,737 Class A and 48,740,260 Class B
shares issued and outstanding as of December 31, 2016 and
244,980,025 Class A and 48,040,260 Class B shares issued and
outstanding as of September 30, 2017, respectively)
|
18
|
18
|
3
|
Additional paid-in
capital
|
20,907,599
|
21,289,598
|
3,207,762
|
Accumulated
deficit
|
(3,070,735)
|
(2,136,662)
|
(321,937)
|
Accumulated other
comprehensive loss
|
(138,597)
|
(63,825)
|
(9,617)
|
Total 58.com Inc.
shareholders' equity
|
17,698,285
|
19,089,129
|
2,876,211
|
Noncontrolling
interests
|
67,434
|
86,338
|
13,009
|
Total shareholders'
equity
|
17,765,719
|
19,175,467
|
2,889,220
|
Total liabilities,
mezzanine equity and shareholders' equity
|
25,326,006
|
28,085,902
|
4,231,780
|
58.com Inc.
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UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(in thousands,
except share, per share and per ADS data, unless otherwise
noted)
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September
30,
2016
|
September
30,
2017
|
September
30,
2017
|
|
September
30,
2016
|
September
30,
2017
|
September
30,
2017
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
Revenues:
|
|
|
|
|
|
|
|
Membership
|
784,369
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994,107
|
149,785
|
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2,139,114
|
2,750,712
|
414,457
|
Online marketing
services
|
1,203,112
|
1,660,502
|
250,192
|
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3,174,397
|
4,334,005
|
653,016
|
E-commerce
services
|
36,371
|
14,664
|
2,209
|
|
122,233
|
56,491
|
8,512
|
Other
services
|
18,797
|
53,247
|
8,023
|
|
61,610
|
162,890
|
24,543
|
Total
revenues
|
2,042,649
|
2,722,520
|
410,209
|
|
5,497,354
|
7,304,098
|
1,100,528
|
Cost of
revenues(1)
|
(176,559)
|
(227,761)
|
(34,317)
|
|
(494,999)
|
(662,644)
|
(99,842)
|
Gross
profit
|
1,866,090
|
2,494,759
|
375,892
|
|
5,002,355
|
6,641,454
|
1,000,686
|
Operating
expenses(1):
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(1,254,181)
|
(1,346,202)
|
(202,836)
|
|
(3,716,678)
|
(3,873,773)
|
(583,672)
|
Research and
development expenses
|
(305,510)
|
(372,873)
|
(56,182)
|
|
(794,508)
|
(1,010,543)
|
(152,261)
|
General and
administrative expenses
|
(163,152)
|
(253,255)
|
(38,159)
|
|
(450,991)
|
(574,386)
|
(86,544)
|
Total operating
expenses
|
(1,722,843)
|
(1,972,330)
|
(297,177)
|
|
(4,962,177)
|
(5,458,702)
|
(822,477)
|
Income from
operations
|
143,247
|
522,429
|
78,715
|
|
40,178
|
1,182,752
|
178,209
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
Interest
income/(expenses), net
|
(17,222)
|
1,664
|
251
|
|
(39,239)
|
(9,138)
|
(1,377)
|
Investment
income/(loss), net
|
(1,632)
|
55,956
|
8,431
|
|
(13,417)
|
314,703
|
47,417
|
Share of results of
equity investees
|
(354,332)
|
(182,087)
|
(27,436)
|
|
(701,562)
|
(489,067)
|
(73,689)
|
Gain on
deconsolidation and disposal of businesses
|
_
|
_
|
_
|
|
79,581
|
_
|
_
|
Foreign currency
exchange income/(loss), net
|
(2,533)
|
313
|
47
|
|
(3,956)
|
497
|
75
|
Others, net
|
25,554
|
42,726
|
6,438
|
|
(13,562)
|
46,298
|
6,976
|
Income/(loss)
before tax
|
(206,918)
|
441,001
|
66,446
|
|
(651,977)
|
1,046,045
|
157,611
|
Income tax
benefits/(expenses)
|
12,169
|
(51,150)
|
(7,707)
|
|
13,341
|
(104,545)
|
(15,752)
|
Net
income/(loss)
|
(194,749)
|
389,851
|
58,739
|
|
(638,636)
|
941,500
|
141,859
|
Add: Net loss/(income)
attributable to noncontrolling
interests
|
(556)
|
(1,785)
|
(269)
|
|
3,958
|
(3,904)
|
(588)
|
Less: Deemed dividend
to mezzanine classified noncontrolling
interests
|
(4,119)
|
(34,809)
|
(5,245)
|
|
(11,113)
|
(66,585)
|
(10,033)
|
Net income/(loss)
attributable to 58.com Inc
|
(199,424)
|
353,257
|
53,225
|
|
(645,791)
|
871,011
|
131,238
|
Net earnings/(loss)
per ordinary share attributable to
ordinary shareholders ‑ basic
|
(0.69)
|
1.21
|
0.18
|
|
(2.26)
|
2.99
|
0.45
|
Net earnings/(loss)
per ordinary share attributable to
ordinary shareholders ‑ diluted
|
(0.69)
|
1.19
|
0.18
|
|
(2.26)
|
2.96
|
0.45
|
Net earnings/(loss)
per ADS attributable to ordinary
shareholders – basic (1 ADS represents 2 Class A
ordinary shares)
|
(1.38)
|
2.42
|
0.36
|
|
(4.51)
|
5.99
|
0.90
|
Net earnings/(loss)
per ADS attributable to ordinary
shareholders – diluted (1 ADS represents 2 Class A
ordinary shares)
|
(1.38)
|
2.38
|
0.36
|
|
(4.51)
|
5.92
|
0.89
|
Weighted average
number of ordinary shares used in
computing basic earnings/(loss) per share
|
288,734,733
|
291,777,760
|
291,777,760
|
|
286,119,495
|
290,853,040
|
290,853,040
|
Weighted average
number of ordinary shares used in
computing diluted earnings/(loss) per share
|
288,734,733
|
296,419,017
|
296,419,017
|
|
286,119,495
|
294,437,994
|
294,437,994
|
|
|
|
Note:
|
|
|
|
(1)
|
Share‑based
compensation expenses were allocated in cost of revenues and
operating expenses as follows:
|
|
|
|
Cost of
revenues
|
(509)
|
1,141
|
172
|
|
103
|
2,139
|
322
|
Sales and marketing
expenses
|
14,756
|
19,383
|
2,920
|
|
41,244
|
51,986
|
7,833
|
Research and
development expenses
|
23,511
|
30,050
|
4,528
|
|
69,076
|
91,260
|
13,750
|
General and
administrative expenses
|
27,824
|
40,459
|
6,096
|
|
89,401
|
106,441
|
16,038
|
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 Nine
Months Ended
|
|
September
30,
2016
|
September
30,
2017
|
September
30,
2017
|
|
September
30,
2016
|
September
30,
2017
|
September
30,
2017
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
GAAP income from
operations
|
143,247
|
522,429
|
78,715
|
|
40,178
|
1,182,752
|
178,209
|
Share-based
compensation expenses5
|
65,582
|
85,581
|
12,895
|
|
199,824
|
246,374
|
37,122
|
Amortization
of intangible assets resulting from
business
acquisitions
|
57,432
|
55,348
|
8,339
|
|
172,296
|
167,517
|
25,240
|
Non-GAAP income
from operations
|
266,261
|
663,358
|
99,949
|
|
412,298
|
1,596,643
|
240,571
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss) attributable to 58.com Inc
|
(199,424)
|
353,257
|
53,225
|
|
(645,791)
|
871,011
|
131,238
|
Share-based
compensation expenses
|
65,582
|
85,581
|
12,895
|
|
199,824
|
246,374
|
37,122
|
Share-based
compensation attributable to noncontrolling interests
|
_
|
_
|
_
|
|
(151)
|
_
|
_
|
Amortization of intangible
assets resulting from
business
acquisitions
|
57,432
|
55,348
|
8,339
|
|
172,296
|
167,517
|
25,240
|
Share-based compensation expenses included in
share of results of
equity investees
|
72,594
|
(1,972)
|
(297)
|
|
73,371
|
2,386
|
359
|
Loss on conversion of
Guazi Convertible Note
|
_
|
_
|
_
|
|
84,177
|
_
|
_
|
Gain on
deconsolidation and disposal of business
|
_
|
_
|
_
|
|
(79,581)
|
_
|
_
|
Income tax effects of
GAAP to non-GAAP reconciling items6
|
(14,358)
|
(13,556)
|
(2,043)
|
|
(35,086)
|
(41,317)
|
(6,225)
|
Non-GAAP net
income/(loss) attributable to 58.com Inc
|
(18,174)
|
478,658
|
72,119
|
|
(230,941)
|
1,245,971
|
187,734
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
7.0%
|
19.2 %
|
19.2 %
|
|
0.7%
|
16.2%
|
16.2%
|
Share-based compensation expenses
|
3.2%
|
3.1%
|
3.1%
|
|
3.6%
|
3.3%
|
3.3%
|
Amortization of
intangible assets resulting from business acquisitions
|
2.8%
|
2.0%
|
2.0%
|
|
3.1%
|
2.3%
|
2.3%
|
Non-GAAP operating
margin
|
13.0%
|
24.3%
|
24.3%
|
|
7.4%
|
21.8%
|
21.8%
|
|
|
|
|
|
|
|
|
GAAP net
margin
|
(9.8)%
|
13.0%
|
13.0%
|
|
(11.7)%
|
11.9%
|
11.9%
|
Share-based
compensation expenses
|
3.2%
|
3.1%
|
3.1%
|
|
3.6%
|
3.3%
|
3.3%
|
Share-based
compensation attributable to noncontrolling interests
|
_
|
_
|
_
|
|
(0.0)%
|
_
|
_
|
Amortization of intangible
assets resulting from
business
acquisitions
|
2.8%
|
2.0%
|
2.0%
|
|
3.1%
|
2.3%
|
2.3%
|
Share-based compensation expenses included in
share of results of
equity investees
|
3.6%
|
(0.1)%
|
(0.1)%
|
|
1.3%
|
0.0%
|
0.0%
|
Loss on conversion of
Guazi Convertible Note
|
_
|
_
|
_
|
|
1.5%
|
_
|
_
|
Gain on
deconsolidation and disposal of business
|
_
|
_
|
_
|
|
(1.4)%
|
_
|
_
|
Income tax effects of
GAAP to non-GAAP reconciling items
|
(0.7)%
|
(0.5)%
|
(0.5)%
|
|
(0.7)%
|
(0.6)%
|
(0.6)%
|
Non-GAAP net
margin
|
(0.9)%
|
17.5%
|
17.5%
|
|
(4.3)%
|
16.9%
|
16.9%
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing non-GAAP basic
earnings/(loss) per share
|
288,734,733
|
291,777,760
|
291,777,760
|
|
286,119,495
|
290,853,040
|
290,853,040
|
Weighted average
number of ordinary shares used in computing non-GAAP diluted
earnings/(loss) per share
|
288,734,733
|
296,419,017
|
296,419,017
|
|
286,119,495
|
294,437,994
|
294,437,994
|
Weighted average
number of ADS used in computing non-GAAP basic earnings/(loss) per
ADS
|
144,367,366
|
145,888,880
|
145,888,880
|
|
143,059,747
|
145,426,520
|
145,426,520
|
Weighted average
number of ADS used in computing non-GAAP diluted earnings/(loss)
per ADS
|
144,367,366
|
148,209,508
|
148,209,508
|
|
143,059,747
|
147,218,997
|
147,218,997
|
|
|
|
|
|
|
|
|
Non-GAAP net
earnings/(loss) per ordinary share attributable to ordinary
shareholders ‑ basic
|
(0.06)
|
1.64
|
0.25
|
|
(0.81)
|
4.28
|
0.64
|
Non-GAAP net earnings
/(loss) per ordinary share attributable to ordinary shareholders ‑
diluted
|
(0.06)
|
1.61
|
0.24
|
|
(0.81)
|
4.23
|
0.64
|
Non-GAAP net earnings
/(loss) per ADS attributable to ordinary shareholders ‑
basic
|
(0.13)
|
3.28
|
0.49
|
|
(1.61)
|
8.57
|
1.29
|
Non-GAAP net earnings
/(loss) per ADS attributable to ordinary shareholders ‑
diluted
|
(0.13)
|
3.23
|
0.49
|
|
(1.61)
|
8.46
|
1.27
|
|
|
|
|
|
|
|
|
5
|
In the third quarter
of 2017, certain share-based awards with redemption features
granted to our employees were expected to be settled in cash and
were classified as liabilities. The share-based compensation
expenses recognized for this type of awards amounted to RMB5.5
million in this period were excluded from the GAAP to non-GAAP
reconciliation accordingly.
|
6
|
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-third-quarter-2017-unaudited-financial-results-300554280.html
SOURCE 58.com