BEIJING, March 7, 2018 /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
fourth quarter and fiscal year ended December 31, 2017.
Fourth Quarter 2017 Financial Highlights
- Total revenues were RMB2,764.7
million (US$423.1 million[1]),
a 32.0% increase from the same quarter of 2016, exceeding the high
end of the Company's guidance of RMB2,725
million.
- Gross margin was 90.5% compared with 89.9% in the same quarter
of 2016.
- Income from operations was RMB613.7
million (US$93.9 million),
compared with income from operations of RMB193.5 million in the same quarter of
2016.
- Non-GAAP income from operations[2] was RMB762.5 million (US$116.7
million), compared with non-GAAP income from operations of
RMB317.7 million in the same quarter
of 2016.
- Net income attributable to 58.com Inc. was RMB414.1 million (US$63.4
million), compared with net loss attributable to 58.com Inc.
of RMB138.0 million in the same
quarter of 2016.
- Non-GAAP net income attributable to 58.com Inc.[3] was
RMB549.0 million (US$84.0 million), compared with non-GAAP net loss
attributable to 58.com Inc. of RMB22.7
million in the same quarter of 2016.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB2.82
(US$0.43) and RMB2.78 (US$0.43),
respectively. One ADS represents two Class A ordinary shares.
- Non-GAAP basic and diluted earnings per ADS[4] attributable to
ordinary shareholders were RMB3.74
(US$0.57) and RMB3.69 (US$0.56),
respectively.
Fiscal Year 2017 Financial Highlights
- Total revenues were RMB10,068.8
million (US$1,540.9 million),
a 32.6% increase from fiscal year 2016.
- Gross margin was 90.8% compared with 90.7% in fiscal year
2016.
- Income from operations was RMB1,796.5
million (US$274.9 million),
compared with income from operations of RMB233.7 million in fiscal year 2016.
- Non-GAAP income from operations was RMB2,359.2 million (US$361.1 million), compared with non-GAAP income
from operations of RMB730.0 million
in fiscal year 2016.
- Net income attributable to 58.com Inc. was RMB1,285.1 million (US$196.7 million), compared with net loss
attributable to 58.com Inc. of RMB783.8
million in fiscal year 2016.
- Non-GAAP net income attributable to 58.com Inc. was
RMB1,795.0 million (US$274.7 million), compared with non-GAAP net
loss attributable to 58.com Inc. of RMB253.6
million in fiscal year 2016.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB8.82
(US$1.35) and RMB8.70 (US$1.33),
respectively.
- Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB12.32
(US$1.89) and RMB12.16 (US$1.86),
respectively.
Management Comments
"We finished the year with another quarter of strong financial
and operational results," commented Mr. Michael Yao, Chairman and Chief Executive
Officer of 58.com. "Traffic on our mobile applications continued to
grow strongly, largely as a result of our continued focus on
product innovation and user experience improvement. Our core
categories, such as jobs, secondary housing and rentals, used
automobiles, and used goods all continue to create significant
opportunities for us driven by their respective industries' rapid
growth trajectory. The growth in traffic and revenues is
particularly strong in lower tier cities and towns. We will
continue to reinvest our increasing cash flow generated from our
core businesses into these high-growth and low-penetration
businesses and products to maximize the long-term value of our
platform."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "We
continued to see strong growth in revenue, traffic and margins
during the quarter. Our revenues exceeded guidance once again. Free
cash flow for year 2017 was approximately US$400 million, up 63.3% from 2016. As revenues
continue to grow and the margins of our core businesses expand
further, we will invest more in technology and areas that will
further strengthen our leadership position in our core
categories."
Fourth Quarter 2017 Financial Results
Revenues
Total revenues were RMB2,764.7
million (US$423.1 million),
representing an increase of 32.0% from RMB2,094.8
million in the same quarter of 2016.
Membership revenues were RMB1,038.8
million (US$159.0 million), an
increase of 27.9% from RMB812.0
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 2,654,000 during the fourth quarter
of 2017, a 28.2% increase from approximately 2,070,000 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 RMB1,644.5 million (US$251.7 million), an increase of 38.3% from
RMB1,189.4 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 RMB262.9
million (US$40.2 million), an
increase of 23.8% from RMB212.2
million in the same quarter of 2016. The year-over-year
increase in the 58.com's cost of revenues was primarily driven by
increases in salaries and benefits for customer service staff and
costs of used goods sold.
Gross Profit and Gross Margin
Gross profit was RMB2,501.8
million (US$382.9 million), an
increase of 32.9% from RMB1,882.5
million during the same quarter of 2016.
Gross margin was 90.5%, compared with 89.9% during the same
quarter of 2016.
Operating Expenses
Operating expenses were RMB1,888.1
million (US$289.0 million), an
increase of 11.8% from RMB1,689.0
million in the same quarter of
2016.
Sales and marketing expenses in the fourth quarter of 2017 were
RMB1,338.6 million (US$204.9 million), an increase of 9.3% from
RMB1,224.7 million in the same
quarter in 2016.
Within sales and marketing expenses, advertising expenses
accounted for RMB511.9 million
(US$78.3 million) and RMB454.4 million in the fourth 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.
Other sales and marketing expenses in the fourth quarter of 2017
were RMB826.7 million (US$126.6 million), an increase of 7.3% from
RMB770.3 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 fourth quarter of 2017
were RMB357.9 million (US$54.8 million), an increase of 14.2% from
RMB313.4 million in the same quarter
of 2016. The increase was primarily due to increased salaries
and benefits as well as share-based compensation expenses for the
research and development of new features and services.
General and administrative expenses in the fourth quarter of
2017 were RMB191.6 million
(US$29.3 million), an increase of
27.0% from RMB150.9 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 RMB613.7
million (US$93.9 million) in
the fourth quarter of 2017, compared with income from operations of
RMB193.5 million in the same quarter
of 2016. Operating margin, defined as income from operations
divided by total revenues, was 22.2% in the fourth quarter of 2017,
compared with 9.2% in the same quarter of 2016.
Non-GAAP income from operations was RMB762.5 million (US$116.7
million) in the fourth quarter of 2017, compared with
non-GAAP income from operations of RMB317.7
million in the same quarter of 2016. Non-GAAP operating
margin, defined as non-GAAP income from operations divided by total
revenues, was 27.6% in the fourth quarter of 2017, compared with
15.1% in the same quarter of 2016.
Other Expenses
Other expenses in the fourth quarter of 2017 were RMB123.8 million (US$19.0
million), compared with other expenses of RMB365.5 million in the same quarter of 2016.
Other expenses in the fourth quarter of 2017 mainly included a
RMB198.3 million share of results of
equity investees, which primarily consisted of a RMB186.4 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 RMB27.5
million and government subsidies of RMB25.7 million.
Net Income/(Loss)
Attributable to 58.com Inc.
Net income attributable to 58.com Inc. was RMB414.1 million
(US$63.4 million) in the fourth
quarter of 2017, compared with net loss attributable to 58.com Inc.
of RMB138.0 million in the same
quarter of 2016. Net margin, defined as net income /(loss)
attributable to 58.com Inc. divided by total revenues, was 15.0% in
the fourth quarter of 2017, compared with negative 6.6% in the same
quarter of 2016.
Non-GAAP net income attributable to 58.com Inc. was RMB549.0 million (US$84.0
million) in the fourth quarter of 2017, compared with
non-GAAP net loss attributable to 58.com Inc. of RMB22.7 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 19.9% in
the fourth quarter of 2017, compared with negative 1.1% in the same
quarter of 2016.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in the fourth quarter of 2017 were RMB2.82 (US$0.43)
and RMB2.78 (US$0.43), compared with basic and diluted losses
per ADS attributable to ordinary shareholders of RMB0.95, in the same quarter of 2016.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in the fourth quarter of 2017 were
RMB3.74 (US$0.57) and RMB3.69 (US$0.56),
respectively, compared with non-GAAP basic and diluted losses per
ADS attributable to ordinary shareholders of RMB0.16 in the same quarter of 2016.
Cash Flow
Net cash provided by operating activities was RMB875.8 million (US$134.0
million) in the fourth quarter of 2017, compared with net
cash provided by operating activities of RMB842.2 million in the same quarter of 2016.
Fiscal Year 2017 Financial Results
Revenues
Total revenues were RMB10,068.8
million (US$1,540.9 million),
representing an increase of 32.6% from RMB7,592.1
million during fiscal year 2016.
Membership revenues were RMB3,789.5
million (US$580.0 million), an
increase of 28.4% from RMB2,951.1
million during fiscal year 2016. The increase in membership
revenues was primarily driven by an increase in the number of
subscription-based paying membership accounts. The number of
quarterly average paying membership accounts on the Company's
platforms, which include 58.com, Ganji.com and Anjuke.com, was
approximately 2,485,000 during fiscal year 2017.
Online marketing services revenues were RMB5,978.5 million (US$915.0 million), an increase of 37.0% from
RMB4,363.8 million during fiscal year
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 RMB925.5
million (US$141.6 million), an
increase of 30.9% from RMB707.2
million during fiscal year 2016. The year-over-year increase
was primarily driven by increases in salaries and benefits for
customer service staff, costs of used goods sold, and other types
of website maintenance-related costs such as depreciation
expenses.
Gross Profit and Gross Margin
Gross profit was RMB9,143.3
million (US$1,399.3 million),
an increase of 32.8% from RMB6,884.9
million during fiscal year 2016.
Gross margin was 90.8%, compared with 90.7% during fiscal year
2016.
Operating Expenses
Operating expenses were RMB7,346.8
million (US$1,124.4 million),
representing an increase of 10.5% from RMB6,651.2 million during fiscal year 2016.
Sales and marketing expenses in fiscal year 2017 were
RMB5,212.4 million (US$797.7 million), an increase of 5.5% from
RMB4,941.4 million during fiscal year
2016.
Within sales and marketing expenses, advertising expenses
accounted for RMB2,087.1 million
(US$319.4 million) and RMB2,040.0 million during fiscal year 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.
Other sales and marketing expenses in fiscal year 2017 were
RMB3,125.3 million (US$478.3 million), an increase of 7.7% from
RMB2,901.4 million during fiscal year
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
and share-based compensation expenses for the Company's sales,
customer service and marketing teams.
Research and development expenses in fiscal year 2017 were
RMB1,368.4 million (US$209.4 million), an increase of 23.5% from
RMB1,107.9 million during fiscal year
2016. The increase was primarily due to increased salaries and
benefits as well as share-based compensation expenses associated
with the hiring of additional employees for research and
development of new features and services.
General and administrative expenses in fiscal year 2017 were
RMB766.0 million (US$117.2 million), an increase of 27.3% from
RMB601.9 million during fiscal year
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 RMB1,796.5
million (US$274.9 million) in
fiscal year 2017, compared with income from operations of
RMB233.7 million during fiscal year
2016. Operating margin was 17.8% in fiscal year of 2017, compared
with 3.1% during fiscal year 2016.
Non-GAAP income from operations was RMB2,359.2 million (US$361.1 million) in fiscal year 2017, compared
with non-GAAP income from operations of RMB730.0 million during fiscal year 2016.
Non-GAAP operating margin was 23.4% during fiscal year 2017,
compared with 9.6% during fiscal year 2016.
Other Expenses
Other expenses in fiscal year 2017 were RMB260.5 million (US$39.9
million), compared with other expenses of RMB1,057.7 million during fiscal year 2016. Other
expenses in fiscal year 2017 mainly included a RMB687.4 million share of results of equity
investees, which primarily consisted of a RMB663.2 million share of the net loss
attributable to 58 Home's ordinary shareholders calculated based on
the Company's ordinary shareholding in 58 Home, which was partially
offset by investment income of RMB342.2
million and government subsidies of RMB81.4 million.
Net Income/(Loss)
Attributable to 58.com Inc.
Net income attributable to 58.com Inc. was RMB1,285.1
million (US$196.7 million) in fiscal
year 2017, compared with net loss attributable to 58.com Inc. of
RMB783.8 million during fiscal year
2016. Net margin was positive 12.8% in fiscal year of 2017,
compared with negative 10.3% during fiscal year 2016.
Non-GAAP net income attributable to 58.com Inc. was RMB1,795.0 million (US$274.7 million) in fiscal year 2017, compared
with non-GAAP net loss attributable to 58.com Inc. of RMB253.6 million during fiscal year 2016.
Non-GAAP net margin was positive 17.9% in fiscal year 2017,
compared with negative 3.4% during fiscal year 2016.
Basic and Diluted Earnings/(Loss) per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in fiscal year 2017 were RMB8.82 (US$1.35)
and RMB8.70 (US$1.33), compared with basic and diluted losses
per ADS attributable to ordinary shareholders of RMB5.46, during fiscal year 2016.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in fiscal year 2017 were RMB12.32 (US$1.89)
and RMB12.16 (US$1.86), respectively, compared with non-GAAP
basic and diluted losses per ADS attributable to ordinary
shareholders of RMB1.77 during fiscal
year 2016.
Cash Flow
Net cash provided by operating activities was RMB2,697.3 million (US$412.8 million) in fiscal year 2017, compared
with net cash provided by operating activities of RMB1,887.8 million during fiscal year 2016.
Cash and Cash Equivalents and Short-term
Investments
As of December 31, 2017, the
Company had cash and cash equivalents and short-term investments of
RMB4,962.7 million (US$759.5 million).
Shares Outstanding
As of December 31, 2017, the
Company had a total of 293,965,131 ordinary shares
(including
245,924,871 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 first quarter of 2018 are expected to be between RMB2,290 million and RMB2,390 million. This represents a
year-over-year increase of 15.2% to 20.2% 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 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 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
Thursday, March 8, 2018 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:
|
+1-412-317-5225
|
U.S. Toll
Free:
|
+1-866-235-9918
|
Hong Kong:
|
800-905945
|
Mainland
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, March 15, 2018. The dial-in details for the
replay are as follows:
International:
|
+1-412-317-0088
|
U.S. Toll
Free:
|
+1-877-344-7529
|
Passcode:
|
10117724
|
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://ir.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
|
|
December
31,
2017
|
|
December
31,
2017
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,200,457
|
|
1,524,982
|
|
233,385
|
Restricted
cash-current
|
1,151,940
|
|
93,350
|
|
14,286
|
Term
deposits
|
26,361
|
|
_
|
|
_
|
Short-term
investments
|
833,480
|
|
3,437,707
|
|
526,110
|
Accounts receivable,
net
|
424,892
|
|
667,750
|
|
102,193
|
Prepayments and other
current assets
|
426,056
|
|
657,272
|
|
100,590
|
Total current
assets
|
4,063,186
|
|
6,381,061
|
|
976,564
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash-non-current
|
_
|
|
792,000
|
|
121,208
|
Property and
equipment, net
|
1,480,921
|
|
1,351,681
|
|
206,863
|
Intangible assets,
net
|
1,532,228
|
|
1,309,566
|
|
200,417
|
Land use rights,
net
|
3,766
|
|
3,688
|
|
564
|
Goodwill
|
15,903,677
|
|
15,864,655
|
|
2,427,941
|
Long-term
investments
|
2,118,461
|
|
1,808,601
|
|
276,790
|
Long-term prepayments
and other non-current assets
|
223,767
|
|
755,260
|
|
115,586
|
Total non-current
assets
|
21,262,820
|
|
21,885,451
|
|
3,349,369
|
Total
assets
|
25,326,006
|
|
28,266,512
|
|
4,325,933
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
1,842,720
|
|
75,000
|
|
11,478
|
Accounts
payable
|
611,947
|
|
624,300
|
|
95,543
|
Deferred
revenues
|
1,845,846
|
|
2,123,755
|
|
325,021
|
Customer
advances
|
1,236,076
|
|
1,365,437
|
|
208,968
|
Taxes
payable
|
62,084
|
|
186,491
|
|
28,541
|
Salary and welfare
payable
|
553,506
|
|
536,831
|
|
82,157
|
Accrued expenses and
other current liabilities
|
727,904
|
|
689,134
|
|
105,466
|
Total current
liabilities
|
6,880,083
|
|
5,600,948
|
|
857,174
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
loans
|
150,000
|
|
777,427
|
|
118,978
|
Deferred tax
liabilities
|
373,810
|
|
319,219
|
|
48,854
|
Other non-current
liabilities
|
69,937
|
|
17,376
|
|
2,659
|
Total non-current
liabilities
|
593,747
|
|
1,114,022
|
|
170,491
|
Total
liabilities
|
7,473,830
|
|
6,714,970
|
|
1,027,665
|
Mezzanine
equity:
|
|
|
|
|
|
Mezzanine classified
noncontrolling interests
|
86,457
|
|
1,736,405
|
|
265,741
|
Total mezzanine
equity
|
86,457
|
|
1,736,405
|
|
265,741
|
Shareholders'
equity:
|
|
|
|
|
|
58.com Inc.
shareholders' equity:
|
|
|
|
|
|
Ordinary shares
(US$0.00001 par value, 4,800,000,000 Class A and 200,000,000 Class
B shares authorized, 240,930,737 Class A and 48,740,260 Class B
shares issued and outstanding as of December 31, 2016 and
245,924,871 Class A and 48,040,260 Class B shares issued and
outstanding as of December 31, 2017, respectively)
|
18
|
|
18
|
|
3
|
Additional paid-in
capital
|
20,907,599
|
|
21,488,376
|
|
3,288,600
|
Accumulated
deficit
|
(3,070,735)
|
|
(1,689,683)
|
|
(258,590)
|
Accumulated other
comprehensive loss
|
(138,597)
|
|
(55,671)
|
|
(8,520)
|
Total 58.com Inc.
shareholders' equity
|
17,698,285
|
|
19,743,040
|
|
3,021,493
|
Noncontrolling
interests
|
67,434
|
|
72,097
|
|
11,034
|
Total shareholders'
equity
|
17,765,719
|
|
19,815,137
|
|
3,032,527
|
Total liabilities,
mezzanine equity and shareholders' equity
|
25,326,006
|
|
28,266,512
|
|
4,325,933
|
58.com Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except share, per share and per ADS data, unless otherwise
noted)
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Year Ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2017
|
|
2017
|
2016
|
|
2017
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Membership
|
812,021
|
|
1,038,812
|
|
158,981
|
|
2,951,135
|
|
3,789,524
|
|
579,952
|
|
Online marketing
services
|
1,189,380
|
|
1,644,486
|
|
251,674
|
|
4,363,777
|
|
5,978,491
|
|
914,954
|
|
E-commerce
services
|
44,520
|
|
17,450
|
|
2,671
|
|
166,753
|
|
73,941
|
|
11,316
|
|
Other
services
|
48,852
|
|
63,934
|
|
9,785
|
|
110,462
|
|
226,824
|
|
34,713
|
Total
revenues
|
2,094,773
|
|
2,764,682
|
|
423,111
|
|
7,592,127
|
|
10,068,780
|
|
1,540,935
|
Cost of
revenues(1)
|
(212,238)
|
|
(262,853)
|
|
(40,227)
|
|
(707,237)
|
|
(925,497)
|
|
(141,639)
|
Gross
profit
|
1,882,535
|
|
2,501,829
|
|
382,884
|
|
6,884,890
|
|
9,143,283
|
|
1,399,296
|
Operating
expenses(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(1,224,702)
|
|
(1,338,587)
|
|
(204,859)
|
|
(4,941,380)
|
|
(5,212,360)
|
|
(797,704)
|
|
Research and
development expenses
|
(313,389)
|
|
(357,898)
|
|
(54,773)
|
|
(1,107,897)
|
|
(1,368,441)
|
|
(209,427)
|
|
General and
administrative expenses
|
(150,915)
|
|
(191,631)
|
|
(29,327)
|
|
(601,906)
|
|
(766,017)
|
|
(117,232)
|
Total operating
expenses
|
(1,689,006)
|
|
(1,888,116)
|
|
(288,959)
|
|
(6,651,183)
|
|
(7,346,818)
|
|
(1,124,363)
|
Income from
operations
|
193,529
|
|
613,713
|
|
93,925
|
|
233,707
|
|
1,796,465
|
|
274,933
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income/(expenses), net
|
(9,401)
|
|
7,515
|
|
1,150
|
|
(48,640)
|
|
(1,623)
|
|
(248)
|
|
Investment
income/(loss), net
|
(131,994)
|
|
27,538
|
|
4,214
|
|
(145,411)
|
|
342,241
|
|
52,377
|
|
Share of results of
equity investees
|
(225,178)
|
|
(198,333)
|
|
(30,353)
|
|
(926,740)
|
|
(687,400)
|
|
(105,200)
|
|
Gain on
deconsolidation and disposal of businesses
|
_
|
|
_
|
|
_
|
|
79,581
|
|
_
|
|
_
|
|
Foreign currency
exchange gain/(loss), net
|
229
|
|
296
|
|
45
|
|
(3,727)
|
|
793
|
|
121
|
|
Others,
net
|
849
|
|
39,157
|
|
5,993
|
|
(12,713)
|
|
85,455
|
|
13,078
|
Income/(loss)
before tax
|
(171,966)
|
|
489,886
|
|
74,974
|
|
(823,943)
|
|
1,535,931
|
|
235,061
|
|
Income tax
benefits/(expenses)
|
37,639
|
|
(42,144)
|
|
(6,450)
|
|
50,980
|
|
(146,689)
|
|
(22,449)
|
Net
income/(loss)
|
(134,327)
|
|
447,742
|
|
68,524
|
|
(772,963)
|
|
1,389,242
|
|
212,612
|
|
Add: Net
loss/(income) attributable to noncontrolling interests
|
958
|
|
(763)
|
|
(117)
|
|
4,916
|
|
(4,667)
|
|
(714)
|
|
Less: Deemed
dividend to mezzanine classified noncontrolling
interests
|
(4,604)
|
|
(32,922)
|
|
(5,038)
|
|
(15,717)
|
|
(99,507)
|
|
(15,228)
|
Net income/(loss)
attributable to 58.com Inc.
|
(137,973)
|
|
414,057
|
|
63,369
|
|
(783,764)
|
|
1,285,068
|
|
196,670
|
Net earnings/(loss)
per ordinary share attributable to ordinary shareholders ‑
basic
|
(0.48)
|
|
1.41
|
|
0.22
|
|
(2.73)
|
|
4.41
|
|
0.67
|
Net earnings/(loss)
per ordinary share attributable to ordinary shareholders ‑
diluted
|
(0.48)
|
|
1.39
|
|
0.21
|
|
(2.73)
|
|
4.35
|
|
0.67
|
Net earnings/(loss)
per ADS attributable to ordinary shareholders – basic (1 ADS
represents 2 Class A ordinary shares)
|
(0.95)
|
|
2.82
|
|
0.43
|
|
(5.46)
|
|
8.82
|
|
1.35
|
Net earnings/(loss)
per ADS attributable to ordinary shareholders – diluted (1 ADS
represents 2 Class A ordinary shares)
|
(0.95)
|
|
2.78
|
|
0.43
|
|
(5.46)
|
|
8.70
|
|
1.33
|
Weighted average
number of ordinary shares used in computing basic earnings/(loss)
per share
|
289,523,186
|
|
293,323,477
|
|
293,323,477
|
|
286,975,068
|
|
291,475,725
|
|
291,475,725
|
Weighted average
number of ordinary shares used in computing diluted earnings/(loss)
per share
|
289,523,186
|
|
297,680,844
|
|
297,680,844
|
|
286,975,068
|
|
295,304,995
|
|
295,304,995
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share‑based
compensation expenses were allocated in cost of revenues and
operating expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
387
|
|
1,139
|
|
174
|
|
490
|
|
3,278
|
|
502
|
Sales and marketing
expenses
|
17,773
|
|
17,940
|
|
2,746
|
|
59,017
|
|
69,926
|
|
10,702
|
Research and
development expenses
|
29,439
|
|
34,856
|
|
5,334
|
|
98,515
|
|
126,116
|
|
19,301
|
General and
administrative expenses
|
19,152
|
|
44,808
|
|
6,857
|
|
108,553
|
|
151,249
|
|
23,147
|
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 Fiscal
Year Ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
GAAP income from
operations
|
193,529
|
|
613,713
|
|
93,925
|
|
233,707
|
|
1,796,465
|
|
274,933
|
|
Share-based
compensation expenses[5]
|
66,751
|
|
93,463
|
|
14,303
|
|
266,575
|
|
339,837
|
|
52,010
|
|
Amortization of
intangible assets resulting from business acquisitions
|
57,432
|
|
55,348
|
|
8,471
|
|
229,728
|
|
222,865
|
|
34,107
|
Non-GAAP income
from operations
|
317,712
|
|
762,524
|
|
116,699
|
|
730,010
|
|
2,359,167
|
|
361,050
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss) attributable to 58.com Inc.
|
(137,973)
|
|
414,057
|
|
63,369
|
|
(783,764)
|
|
1,285,068
|
|
196,670
|
|
Share-based
compensation expenses
|
66,751
|
|
93,463
|
|
14,303
|
|
266,575
|
|
339,837
|
|
52,010
|
|
Share-based
compensation attributable to noncontrolling interests
|
_
|
|
_
|
|
_
|
|
(151)
|
|
_
|
|
_
|
|
Amortization of
intangible assets resulting from business acquisitions
|
57,432
|
|
55,348
|
|
8,471
|
|
229,728
|
|
222,865
|
|
34,107
|
|
Share-based
compensation expenses included in share of results of equity
investees
|
5,455
|
|
(292)
|
|
(45)
|
|
78,826
|
|
2,094
|
|
320
|
|
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 items[6]
|
(14,358)
|
|
(13,555)
|
|
(2,074)
|
|
(49,444)
|
|
(54,872)
|
|
(8,398)
|
Non-GAAP net
income/(loss) attributable to 58.com Inc.
|
(22,693)
|
|
549,021
|
|
84,024
|
|
(253,634)
|
|
1,794,992
|
|
274,709
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
9.2%
|
|
22.2%
|
|
22.2%
|
|
3.1%
|
|
17.8%
|
|
17.8%
|
|
Share-based
compensation expenses
|
3.2%
|
|
3.4%
|
|
3.4%
|
|
3.5%
|
|
3.4%
|
|
3.4%
|
|
Amortization of
intangible assets resulting from business acquisitions
|
2.7%
|
|
2.0%
|
|
2.0%
|
|
3.0%
|
|
2.2%
|
|
2.2%
|
Non-GAAP operating
margin
|
15.1%
|
|
27.6%
|
|
27.6%
|
|
9.6%
|
|
23.4%
|
|
23.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
margin
|
(6.6)%
|
|
15.0%
|
|
15.0%
|
|
(10.3)%
|
|
12.8%
|
|
12.8%
|
|
Share-based
compensation expenses
|
3.2%
|
|
3.4%
|
|
3.4%
|
|
3.5%
|
|
3.4%
|
|
3.4%
|
|
Share-based
compensation attributable to noncontrolling interests
|
_
|
|
_
|
|
_
|
|
0.0%
|
|
_
|
|
_
|
|
Amortization of
intangible assets resulting from business acquisitions
|
2.7%
|
|
2.0%
|
|
2.0%
|
|
3.0%
|
|
2.2%
|
|
2.2%
|
|
Share-based
compensation expenses included in share of results of equity
investees
|
0.3%
|
|
0.0%
|
|
0.0%
|
|
1.0%
|
|
0.0%
|
|
0.0%
|
|
Loss on conversion of
Guazi Convertible Note
|
_
|
|
_
|
|
_
|
|
1.1%
|
|
_
|
|
_
|
|
Gain on
deconsolidation and disposal of business
|
_
|
|
_
|
|
_
|
|
(1.0)%
|
|
_
|
|
_
|
|
Income tax effects of
GAAP to non-GAAP reconciling items
|
(0.7)%
|
|
(0.5)%
|
|
(0.5)%
|
|
(0.7)%
|
|
(0.5)%
|
|
(0.5)%
|
Non-GAAP net
margin
|
(1.1)%
|
|
19.9%
|
|
19.9%
|
|
(3.4)%
|
|
17.9%
|
|
17.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing non-GAAP basic
earnings/(loss) per share..
|
289,523,186
|
|
293,323,477
|
|
293,323,477
|
|
286,975,068
|
|
291,475,725
|
|
291,475,725
|
|
Weighted average
number of ordinary shares used in computing non-GAAP diluted
earnings/(loss) per share
|
289,523,186
|
|
297,680,844
|
|
297,680,844
|
|
286,975,068
|
|
295,304,995
|
|
295,304,995
|
|
Weighted average
number of ADS used in computing non-GAAP basic earnings/(loss) per
ADS
|
144,761,593
|
|
146,661,739
|
|
146,661,739
|
|
143,487,534
|
|
145,737,863
|
|
145,737,863
|
|
Weighted average
number of ADS used in computing non-GAAP diluted earnings/(loss)
per ADS
|
144,761,593
|
|
148,840,422
|
|
148,840,422
|
|
143,487,534
|
|
147,652,498
|
|
147,652,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
earnings/(loss) per ordinary share attributable to ordinary
shareholders ‑ basic
|
(0.08)
|
|
1.87
|
|
0.29
|
|
(0.88)
|
|
6.16
|
|
0.94
|
|
Non-GAAP net earnings
/(loss) per ordinary share attributable to ordinary shareholders ‑
diluted
|
(0.08)
|
|
1.84
|
|
0.28
|
|
(0.88)
|
|
6.08
|
|
0.93
|
|
Non-GAAP net earnings
/(loss) per ADS attributable to ordinary shareholders ‑
basic
|
(0.16)
|
|
3.74
|
|
0.57
|
|
(1.77)
|
|
12.32
|
|
1.89
|
|
Non-GAAP net earnings
/(loss) per ADS attributable to ordinary shareholders ‑
diluted
|
(0.16)
|
|
3.69
|
|
0.56
|
|
(1.77)
|
|
12.16
|
|
1.86
|
[1] This press release contains translations of certain Renminbi
(RMB) amounts into U.S. dollars (US$) solely for the convenience of
the reader. Unless otherwise specified, all translations of
Renminbi amounts into U.S. dollars amounts in this press release
are made at RMB6.5342 to US$1.00, which was the U.S. dollars middle rate
announced by the State Administration of Foreign Exchange of
the People's Republic of China
(PRC) on December 29, 2017. On
March 6, 2018, such exchange rate was
RMB6.3386 to US$1.00. The percentages stated in this press
release are calculated based on the Renminbi amounts.
[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] In 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
RMB5.3 million in the fourth quarter
of 2017 and RMB10.7 million in fiscal
year 2017 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.
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content:http://www.prnewswire.com/news-releases/58com-reports-fourth-quarter-and-fiscal-year-2017-unaudited-financial-results-300610179.html
SOURCE 58.com