BEIJING, May 9, 2018 /PRNewswire/ -- SINA Corporation
(the "Company" or "SINA") (NASDAQ: SINA), a leading online media
company serving China and the
global Chinese communities, today announced its unaudited financial
results for the first quarter ended March
31, 2018.
"We had a good start to the year 2018." said Charles Chao, Chairman and CEO of SINA. "Weibo
delivered robust growth of revenues and profit on the back of
greater user scale, stronger platform effect and improved
monetization efficiency. Weibo continue to benefit from ad budget
shift toward social, mobile and video features which the platform
combines." said Mr. Chao. "SINA portal business demonstrated its
recovery trend with progress achieved in mobile monetization of
SINA media properties." Mr. Chao added.
Adoption of New Revenue Guidance
On January 1, 2018, the Company
adopted new revenue guidance ASC Topic 606, "Revenue from
Contracts with Customers", using the modified retrospective method
applied to those contracts which were not completed as of
January 1, 2018. Results for
reporting periods beginning after January 1,
2018 are presented under Topic 606 ('New Basis'), while
prior period amounts are not adjusted and continue to be reported
in accordance with the Company's historic accounting method under
Topic 605 ('Old Basis'). The New Basis requires the presentation of
value added tax ('VAT') recognized in revenues from "gross" to
"net", which results in equal decrease in revenues and cost of
revenues, and recognition of revenues and expenses at fair value
for advertising barter transactions ('Barter Transaction').
The Company recorded a net reduction to opening retained
earnings of $0.3 million resulting
from Barter Transaction as of January 1, 2018 due to the
cumulative impact of adopting ASC 606.
Adoption of the standards related to revenue recognition which
impacted the Company's current period reported results are as
follows:
|
Three months ended
March 31, 2018
|
|
Adjustments
|
|
Old
Basis
ASC 605
1
|
VAT
|
|
Barter
Transaction
|
|
New
Basis ASC 606
2
|
|
($ In thousands,
except for percentage)
|
Net
revenues
|
456,101
|
|
(25,161)
|
|
9,812
|
|
440,752
|
-
Portal
|
96,091
|
|
(5,267)
|
|
82
|
|
90,906
|
-
Weibo
|
360,047
|
|
(19,894)
|
|
9,730
|
|
349,883
|
Cost of
revenues
|
133,868
|
|
(25,161)
|
|
-
|
|
108,707
|
Operating
expenses
|
246,006
|
|
-
|
|
12,750
|
|
258,756
|
- Sales
and marketing
|
126,937
|
|
-
|
|
12,750
|
|
139,687
|
Income from
operations
|
76,227
|
|
-
|
|
(2,938)
|
|
73,289
|
Gross
margin
|
70.6%
|
|
|
|
|
|
75.3%
|
Operating
margin
|
16.7%
|
|
|
|
|
|
16.6%
|
|
|
|
|
|
|
|
|
Note 1. This
financial information for the three months ended March 31, 2018 is
presented under ASC Topic 605.
|
Note 2. This
financial information for the three months ended March 31, 2018 is
presented under ASC Topic 606.
|
First Quarter 2018 Highlights
- Both net revenues and non-GAAP net revenues increased 59%
year-over-year to $440.8 million and
$438.1 million, respectively.
- Advertising revenues increased 61% year-over-year to
$367.1 million.
- Non-advertising revenues increased 47% year-over-year to
$73.7 million. Non-GAAP
non-advertising revenues increased 50% year-over-year to
$71.1 million.
- Income from operations increased 63% year-over-year to
$73.3 million. Non-GAAP income from
operations increased 49% year-over-year to $94.6 million.
- Net income attributable to SINA was $28.7 million, or $0.38 for diluted net income per share
attributable to SINA's ordinary shareholders. Non-GAAP net income
attributable to SINA was $35.2
million, or $0.47 for non-GAAP
diluted net income per share attributable to SINA's ordinary
shareholders.
First Quarter 2018 Financial Results
For the first quarter of 2018, SINA reported net revenues of
$440.8 million, an increase of 59%
compared to $278.1 million for the
same period last year. Non-GAAP net revenues for the first quarter
of 2018 were $438.1 million, an
increase of 59% compared to $275.5
million for the same period last year.
Advertising revenues for the first quarter of 2018 were
$367.1 million, an increase of 61%
compared to $228.0 million for the
same period last year. The year-over-year growth in advertising
revenues was mainly resulted from an increase of $133.7 million, or 79% growth in Weibo
advertising and marketing revenues.
Non-advertising revenues for the first quarter of 2018 were
$73.7 million, an increase of 47%
compared to $50.1 million for the
same period last year. Non-GAAP non-advertising revenues for the
first quarter of 2018 were $71.1
million, an increase of 50% compared to $47.5 million for the same period last year. The
year-over-year growth in non-advertising revenues was mainly driven
by the increase of revenues from Weibo gaming and membership
service, and revenues derived from SINA fin-tech businesses.
Gross margin for the first quarter of 2018 was 75%, compared to
69% for the same period last year. Advertising gross margin for the
first quarter of 2018 was 77%, compared to 70% for the same period
last year. Non-advertising gross margin for the first quarter of
2018 was 65%, compared to 62% for the same period last year. The
increases in both advertising and non-advertising gross margin were
a direct result of the adoption of ASC 606.
Operating expenses for the first quarter of 2018 totaled
$258.8 million, compared to
$146.5 million for the same period
last year. Other than the inclusion of marketing expense related to
Barter Transactions under ASC Topic 606 as illustrated above, the
increase in operating expenses was primarily due to the increase in
sales and marketing expenses incurred for marketing campaigns and
step-up of user acquisition costs for Weibo and SINA News
application, as well as the increase in product and development
expenses in relations to personnel-related costs. Non-GAAP
operating expenses for the first quarter of 2018 totaled
$237.3 million, compared to
$127.4 million for the same period
last year.
Income from operations for the first quarter of 2018 was
$73.3 million, an increase of 63%
compared to $45.0 million for the
same period last year. Operating margin was 17%, up from 16% for
the same period last year. Non-GAAP income from operations for the
first quarter of 2018 was $94.6
million, an increase of 49% compared to $63.7 million for the same period last year.
Non-GAAP operating margin was 22%, slightly down from 23% for the
same period last year.
Non-operating income for the first quarter of 2018 was
$22.6 million, compared to a
non-operating income of $30.3 million
for the same period last year. Non-operating income for the first
quarter of 2018 included (i) a $17.1
million net interest and other income; (ii) a $7.2 million net gain on sale of investments,
fair value changes and impairment on investments, which is excluded
under non-GAAP measure; and (iii) a $1.8
million loss pick-up from equity-method investments, which
is reported one quarter in arrears and is mainly resulted from the
loss pick-up related to the Company's investment in Leju Holding
Limited ("Leju"). Non-operating income for the first quarter of
2017 included (i) a $15.9 million net
gain on sale of and impairment on investments, which is excluded
under non-GAAP measure; (ii) a $5.0
million of dividend income from certain investments and an
interest income of $6.2 million; and
(iii) a $3.1 million earnings pick-up
from equity-method investments, which are accounted for under the
equity-method and reported one quarter in arrears, and mainly
resulted from earnings pick-up from the Company's investment in
Tian Ge Interactive Holdings Limited.
Income tax expenses for the first quarter of 2018 were
$18.8 million, compared to
$13.8 million for the same period
last year. The increase was primarily attributable to higher
profitability with a relatively stable tax rates in our PRC
operation.
Net income attributable to SINA's ordinary shareholders for the
first quarter of 2018 was $28.7
million, compared to $38.5
million for the same period last year. Diluted net income
per share attributable to SINA's ordinary shareholders for the
first quarter of 2018 was $0.38,
compared to $0.52 for the same period
last year. Non-GAAP net income attributable to SINA's ordinary
shareholders for the first quarter of 2018 was $35.2 million, compared to $37.6 million for the same period last year.
Non-GAAP diluted net income per share attributable to SINA's
ordinary shareholders for the first quarter of 2018 was
$0.47, compared to $0.50 for the same period last year.
As of March 31, 2018, SINA's cash,
cash equivalents and short-term investments totaled $3.4 billion, at similar level compared to the
cash balance as of December 31, 2017.
For the first quarter of 2018, net cash provided by operating
activities was $54.9 million, capital
expenditures totaled $36.2 million,
and depreciation and amortization expenses amounted to $9.5 million.
Non-GAAP Measures
This release contains the following non-GAAP financial measures:
non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP
advertising and non-advertising gross margin, non-GAAP operating
expenses, non-GAAP income from operations, non-GAAP operating
margin, non-GAAP net income attributable to SINA's ordinary
shareholders and non-GAAP diluted net income per share attributable
to SINA's ordinary shareholders. These non-GAAP financial measures
should be considered in addition to, not as a substitute for,
measures of the Company's financial performance prepared in
accordance with U.S. GAAP. The Company's non-GAAP financial
measures may be defined differently than similar terms used by
other companies. Accordingly, care should be exercised in
understanding how the Company defines its non-GAAP financial
measures.
The Company's non-GAAP financial measures exclude recognition of
deferred revenues related to the license granted to Leju,
stock-based compensation, amortization of intangible assets,
adjustment for non-GAAP to GAAP reconciling items on the
share of equity method investments, gain (loss) on sale of
investment, deemed disposal, fair value changes and impairment on
investment, and income tax effects of above non-GAAP to GAAP
reconciling items and adjustment for non-GAAP to GAAP reconciling
items for the income attributable to non-controlling interests and
amortization of convertible debt issuance cost. The Company's
management uses these non-GAAP financial measures in their
financial and operating decision-making, because management
believes these measures reflect the Company's ongoing business
operations in a manner that allows more meaningful period-to-period
comparisons. The Company believes that these non-GAAP financial
measures provide useful information to investors and others in the
following ways: (i) in comparing the Company's current financial
results with the Company's past financial results in a consistent
manner, and (ii) in understanding and evaluating the Company's
current operating performance and future prospects in the same
manner as management does, if they so choose. The Company also
believes that the non-GAAP financial measures provide useful
information to both management and investors by excluding certain
expenses, gain/loss and other items (i) that are not expected to
result in future cash payments or (ii) that are non-recurring in
nature or may not be indicative of the Company's core operating
results and business outlook.
Use of non-GAAP financial measures has limitations. The
Company's non-GAAP financial measures do not include all income and
expense items that affect the Company's operations. They may
not be comparable to non-GAAP financial measures used by other
companies. Management compensates for these limitations by also
considering the Company's financial results prepared in accordance
with U.S. GAAP. Reconciliations of the Company's non-GAAP measures
to the nearest comparable GAAP measures are set forth in the
section below titled "Unaudited Reconciliation of Non-GAAP to GAAP
Results."
Conference Call
SINA will host a conference call from 8:10 a.m. – 8:40 a.m.
Eastern Time on May 9,
2018 (or 8:10 p.m. – 8:40 p.m. Beijing Time on May 9, 2018) to present an overview of the
Company's financial performance and business operations. A live
webcast of the call will be available through the Company's
corporate website at http://ir.sina.com. The conference call can be
accessed as follows:
US:
|
+1 845 675
0438
|
Hong Kong:
|
+852 3018
6776
|
China:
|
400 120
0654
|
International:
|
+65 6713
5440
|
Passcode for all
regions: 4788917
|
|
A replay of the conference call will be available through
morning Eastern Time May 17, 2018.
The dial-in number is +61 2 9003 4211. The passcode for the replay
is 4788917.
About SINA
SINA is a leading online media company serving China and the global Chinese communities. Its
digital media network of SINA.com (portal), SINA mobile (mobile
portal and mobile apps) and Weibo (social media) enables internet
users to access professional media and user generated content in
multi-media formats from personal computers and mobile devices and
share their interests with friends and acquaintances.
SINA.com offers distinct and targeted professional content on
each of its region-specific websites and a full range of
complementary offerings. SINA mobile provides news information,
professional and entertainment content customized for mobile users
through mobile applications and mobile portal site SINA.cn.
Weibo is a leading social media platform for people to create,
distribute and discover content. Based on an open platform
architecture, Weibo provides unprecedented and simple way for
people and organizations to publicly express themselves in real
time, interact with others on a massive global platform and stay
connected with the world.
Through these properties and other product lines, SINA offer an
array of online media and social media services to our users to
create a rich canvas for businesses and advertisers to effectively
connect and engage with their targeted audiences.
Safe Harbor Statement
This press release contains forward-looking statements that
relate to, among other things, SINA's expected financial
performance and SINA's strategic and operational plans (as
described, without limitation, in quotations from management in
this press release). SINA may also make forward-looking statements
in the Company's periodic reports to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about the
Company's beliefs and expectations, are forward-looking statements.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "confidence," "estimates" and similar
statements. SINA assumes no obligation to update the
forward-looking statements in this press release and elsewhere.
Forward-looking statements involve inherent risks and
uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to failure to meet internal or
external expectations of future performance given the rapidly
evolving markets; condition of the global financial and credit
market; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly
operating results; the Company's reliance on online advertising
sales and value-added services for a majority of its revenues;
failure to successfully develop, introduce, drive adoption of or
monetize new features and products, including portal, Weibo and
fin-tech products; failure to enter and develop the small and
medium enterprise market by the Company or through cooperation with
other parties, such as Alibaba; failure to successfully integrate
acquired businesses; risks associated with the Company's
investments, including equity pick-up and impairment; and failure
to compete successfully against new entrants and established
industry competitors. Further information regarding these and other
risks is included in SINA's 2017 annual reports on Form 20-F and
other filings with the Securities and Exchange Commission.
Contact:
Investor Relations
SINA Corporation
Phone: +86 10 5898 3336
Email: ir@staff.sina.com.cn
SINA
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(U.S. Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
|
2017
|
|
Net
revenues(1):
|
|
|
|
|
|
|
Advertising
|
$
367,081
|
|
$
227,999
|
|
$
424,756
|
|
Non-advertising
|
73,671
|
|
50,066
|
|
78,982
|
|
|
|
440,752
|
|
278,065
|
|
503,738
|
|
Cost of
revenues(1)(2):
|
|
|
|
|
|
|
Advertising
|
83,115
|
|
67,668
|
|
99,858
|
|
Non-advertising
|
25,592
|
|
18,904
|
|
26,812
|
|
|
|
108,707
|
|
86,572
|
|
126,670
|
|
Gross
profit
|
332,045
|
|
191,493
|
|
377,068
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Sales and marketing (1)(2)
|
139,687
|
|
68,083
|
|
143,020
|
|
Product development (2)
|
85,137
|
|
54,420
|
|
78,977
|
|
General and administrative (2)
|
33,932
|
|
24,023
|
|
26,421
|
|
|
|
258,756
|
|
146,526
|
|
248,418
|
|
Income from
operations
|
73,289
|
|
44,967
|
|
128,650
|
|
|
|
|
|
|
|
|
|
Non-operating
income:
|
|
|
|
|
|
|
Earning (Loss) from equity method investments, net
|
(1,772)
|
|
3,143
|
|
(2,843)
|
|
Gain
on sale of investments, fair value changes and
impairment on investments, net
(3)
|
7,226
|
|
15,883
|
|
(740)
|
|
Interest and other income, net
|
17,098
|
|
11,233
|
|
11,244
|
|
|
|
22,552
|
|
30,259
|
|
7,661
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
95,841
|
|
75,226
|
|
136,311
|
|
Income tax
expense
|
(18,750)
|
|
(13,826)
|
|
(17,160)
|
|
|
|
|
|
|
|
|
|
Net
income
|
77,091
|
|
61,400
|
|
119,151
|
|
Less:
Net income attributable to non-controlling interests
|
48,397
|
|
22,876
|
|
73,787
|
|
|
|
|
|
|
|
|
|
Net income
attributable to SINA's ordinary shareholders
|
$
28,694
|
|
$
38,524
|
|
$
45,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share
|
$
0.40
|
|
$
0.54
|
|
$
0.63
|
|
Diluted net income
per share (4)
|
$
0.38
|
|
$
0.52
|
|
$
0.60
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income per share
|
71,440
|
|
70,959
|
|
71,516
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
74,036
|
|
73,409
|
|
74,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
On January 1, 2018, the Company adopted ASC 606 Revenue
from Contracts with Customers using the modified retrospective
method,which means
that prior periods amount will be reported on a historical basis
and amounts for 2018 are reported on the new basis. Under the new
accounting standard,
the main impact to the Company is that it now reports revenue net
of value added tax and recognizes revenues and expenses at fair
value for advertising
barter transactions.
|
|
|
|
|
|
|
|
|
|
(2)
Stock-based compensation in each category:
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
2,541
|
|
$
2,230
|
|
$
2,145
|
|
|
Sales and
marketing
|
4,880
|
|
4,583
|
|
5,370
|
|
|
Product
development
|
7,487
|
|
6,990
|
|
6,432
|
|
|
General and
administrative
|
7,408
|
|
7,387
|
|
8,237
|
|
|
|
|
|
|
|
|
|
(3)
The Company adopted ASU 2016-1, Classification and
Measurement of Financial Instrumentsbeginning the first quarter
of fiscal year 2018. After
the adoption of this new accounting update, the Company will
measure long-term investments other than equity method investments
at fair value through
earnings. For those investments without readily determinable
fair values, the Company will elect to record these investments at
cost, less impairment, and
plus or minus subsequent adjustments for observable price changes.
Changes in the basis of these investments will be reported in
current earnings.
|
|
|
|
|
|
|
|
|
|
(4)
Net income attributable to SINA's ordinary shareholders is adjusted
for diluted shares issued by our subsidiary and equity method
investments.
|
|
SINA
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
Assets
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,186,509
|
|
|
$
1,990,552
|
|
|
Short-term
investments
|
|
2,251,930
|
|
|
1,381,991
|
|
|
Restricted
cash
|
|
197,819
|
|
|
216,151
|
|
|
Accounts
receivable, net
|
|
321,864
|
|
|
285,681
|
|
|
Prepaid expenses
and other current assets
|
|
240,915
|
|
|
228,238
|
|
|
Subtotal
|
|
4,199,037
|
|
|
4,102,613
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
273,460
|
|
|
262,676
|
|
Goodwill and
intangible assets, net
|
|
105,426
|
|
|
104,207
|
|
Long-term
investments (1)
|
|
1,370,652
|
|
|
1,288,816
|
|
Other
assets
|
|
70,892
|
|
|
57,082
|
|
Total
assets
|
|
$
6,019,467
|
|
|
$
5,815,394
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
153,884
|
|
|
$
130,431
|
|
|
Amount due to
customers
|
|
197,819
|
|
|
216,151
|
|
|
Accrued expenses
and other current liabilities
|
|
438,358
|
|
|
446,779
|
|
|
Short-term bank
loan
|
|
93,382
|
|
|
89,309
|
|
|
Convertible
debt
|
|
153,085
|
|
|
153,092
|
|
|
Deferred
revenues
|
|
151,857
|
|
|
134,580
|
|
|
Income taxes
payable
|
|
123,727
|
|
|
102,458
|
|
|
Subtotal
|
|
1,312,112
|
|
|
1,272,800
|
|
|
|
|
|
|
|
|
|
Convertible
debt
|
|
881,018
|
|
|
879,983
|
|
Long-term deferred
revenues
|
|
51,668
|
|
|
54,372
|
|
Other long-term
liabilities
|
|
8,811
|
|
|
8,510
|
|
|
Total
liabilities
|
|
2,253,609
|
|
|
2,215,665
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
SINA shareholders'
equity (1)
|
|
2,937,920
|
|
|
2,846,842
|
|
|
Non-controlling
interests
|
|
827,938
|
|
|
752,887
|
|
|
Total shareholders'
equity
|
|
3,765,858
|
|
|
3,599,729
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
6,019,467
|
|
|
$
5,815,394
|
|
|
|
|
|
|
|
|
|
(1)The
Company adopted ASU 2016-1, Classification and Measurement of
Financial Instruments beginning the first quarter of
fiscal year 2018. After the adoption of this new accounting update,
the Company will measure long-term investments other than
equity method investments at fair value through earnings. For
those investments without readily determinable fair values, the
Company will elect to record these investments at cost, less
impairment, and plus or minus subsequent adjustments for
observable
price changes. Changes in the basis of these investments will be
reported in current earnings. The cumulative impact arising
from
the adoption was a credit to retained earnings as of January 1,
2018 of $49.0 million.
|
SINA
CORPORATION
|
UNAUDITED
ADDITIONAL INFORMATION
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
Portal
Advertising
|
$
64,132
|
|
$
59,791
|
|
$
95,319
|
|
Other
|
26,774
|
|
20,162
|
|
33,842
|
|
Subtotal
|
|
90,906
|
|
79,953
|
|
129,161
|
|
|
|
|
|
|
|
|
|
Weibo:
|
|
|
|
|
|
|
Advertising and
marketing
|
302,949
|
|
169,297
|
|
332,305
|
|
Weibo
VAS
|
46,934
|
|
29,904
|
|
45,140
|
|
Subtotal
|
|
349,883
|
|
199,201
|
|
377,445
|
|
|
|
|
|
|
|
|
|
Elimination
|
(37)
|
|
(1,089)
|
|
(2,868)
|
|
|
|
$
440,752
|
|
$
278,065
|
|
$
503,738
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
Portal
Advertising
|
$
29,373
|
|
$
27,482
|
|
$
35,647
|
|
Other
|
16,469
|
|
12,702
|
|
19,180
|
|
Subtotal
|
|
45,842
|
|
40,184
|
|
54,827
|
|
|
|
|
|
|
|
|
|
Weibo
|
62,902
|
|
46,450
|
|
72,005
|
|
|
|
|
|
|
|
|
|
Elimination
|
(37)
|
|
(62)
|
|
(162)
|
|
|
|
$
108,707
|
|
$
86,572
|
|
$
126,670
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
Portal
|
|
50%
|
|
50%
|
|
58%
|
|
Weibo
|
|
82%
|
|
77%
|
|
81%
|
|
|
|
75%
|
|
69%
|
|
75%
|
|
|
|
|
|
|
|
|
|
SINA
CORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
(U.S. Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March 31,
2018
|
|
March 31,
2017
|
|
December 31,
2017
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenues
|
$
367,081
|
|
|
|
$
367,081
|
|
$
227,999
|
|
|
|
$
227,999
|
|
$
424,756
|
|
|
|
$
424,756
|
Non-advertising
revenues
|
73,671
|
|
(2,609)
|
(a)
|
71,062
|
|
50,066
|
|
(2,609)
|
(a)
|
47,457
|
|
78,982
|
|
(2,609)
|
(a)
|
76,373
|
Net
revenues
|
$
440,752
|
|
$
(2,609)
|
|
$
438,143
|
|
$
278,065
|
|
$
(2,609)
|
|
$
275,456
|
|
$
503,738
|
|
$
(2,609)
|
|
$
501,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
2,541
|
(b)
|
|
|
|
|
2,230
|
(b)
|
|
|
|
|
2,145
|
(b)
|
|
Gross
profit
|
$
332,045
|
|
$
(68)
|
|
$
331,977
|
|
$
191,493
|
|
$
(379)
|
|
$
191,114
|
|
$
377,068
|
|
$
(464)
|
|
$
376,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,775)
|
(b)
|
|
|
|
|
(18,960)
|
(b)
|
|
|
|
|
(20,039)
|
(b)
|
|
|
|
|
|
(1,635)
|
(c)
|
|
|
|
|
(155)
|
(c)
|
|
|
|
|
(1,535)
|
(c)
|
|
Operating
expenses
|
$
258,756
|
|
$
(21,410)
|
|
$
237,346
|
|
$
146,526
|
|
$
(19,115)
|
|
$
127,411
|
|
$
248,418
|
|
$
(21,574)
|
|
$
226,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
22,316
|
(b)
|
|
|
|
|
21,190
|
(b)
|
|
|
|
|
22,184
|
(b)
|
|
|
|
|
|
1,635
|
(c)
|
|
|
|
|
155
|
(c)
|
|
|
|
|
1,535
|
(c)
|
|
Income from
operations
|
$
73,289
|
|
$
21,342
|
|
$
94,631
|
|
$
44,967
|
|
$
18,736
|
|
$
63,703
|
|
$
128,650
|
|
$
21,110
|
|
$
149,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
22,316
|
(b)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
22,184
|
(b)
|
|
|
|
|
|
1,635
|
(c)
|
|
|
|
|
21,190
|
(b)
|
|
|
|
|
1,535
|
(c)
|
|
|
|
|
|
(451)
|
(d)
|
|
|
|
|
155
|
(c)
|
|
|
|
|
1,503
|
(d)
|
|
|
|
|
|
(7,226)
|
(e)
|
|
|
|
|
224
|
(d)
|
|
|
|
|
740
|
(e)
|
|
|
|
|
|
(8,183)
|
(f)
|
|
|
|
|
(15,883)
|
(e)
|
|
|
|
|
(9,197)
|
(f)
|
|
|
|
|
|
1,035
|
(g)
|
|
|
|
|
(5,494)
|
(f)
|
|
|
|
|
690
|
(g)
|
|
|
|
|
|
21
|
(h)
|
|
|
|
|
1,472
|
(h)
|
|
|
|
|
(253)
|
(h)
|
|
Net income
attributable to SINA's ordinary shareholders
|
$
28,694
|
|
$
6,538
|
|
$
35,232
|
|
$
38,524
|
|
$
(945)
|
|
$
37,579
|
|
$
45,364
|
|
$
14,593
|
|
$
59,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share *
|
$
0.38
|
|
|
|
$
0.47
|
|
$
0.52
|
|
|
|
$
0.50
|
|
$
0.60
|
|
|
|
$
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
74,036
|
|
-
|
|
74,036
|
|
73,409
|
|
-
|
|
73,409
|
|
74,213
|
|
-
|
|
74,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin -
advertising
|
77%
|
|
1%
|
|
78%
|
|
70%
|
|
1%
|
|
71%
|
|
76%
|
|
1%
|
|
77%
|
Gross margin -
non-advertising
|
65%
|
|
-1%
|
|
64%
|
|
62%
|
|
-2%
|
|
60%
|
|
66%
|
|
-1%
|
|
65%
|
Operating
margin
|
17%
|
|
5%
|
|
22%
|
|
16%
|
|
7%
|
|
23%
|
|
26%
|
|
4%
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To
exclude the recognition of deferred revenue related to the license
granted to Leju.
|
|
|
|
|
|
|
|
|
|
(b) To
exclude stock-based compensation.
|
|
|
|
|
|
|
|
|
|
|
(c) To
adjust amortization of intangible assets.
|
|
|
|
|
|
|
|
|
(d) To
exclude the non-GAAP to GAAP reconciling items on the share of
equity method investments, net of share of amortization of
intangibles not on their books.
|
|
|
|
|
|
|
|
|
(e) To
exclude (gain) loss on sale of investments, (gain) loss on deemed
disposal, fair value changes and impairment on investments,
net.
|
|
|
|
|
|
|
|
|
|
|
|
(f) To
exclude Non-GAAP to GAAP reconciling items for the income
attributable to non-controlling interests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g) To
exclude the amortization of convertible debt issuance
cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h) To
exclude the provision (benefit) for income tax related to item (c)
and (e). Other non-GAAP to GAAP reconciling items have no income
tax effect.**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Net income
attributable to SINA's ordinary shareholders is adjusted for
diluted shares issued by our subsidiary and equity method
investments.
|
|
|
|
|
|
|
|
|
**
|
Most of the
reconciliation items were recorded in entities in tax free
jurisdictions hence no income tax implications. For impairment on
investments, valuation allowances were
made for those differences the Company does not expect they can be
realized in the foreseeable future.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' NON-GAAP TO
GAAP RESULTS*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March 31,
2018
|
|
March 31,
2017
|
|
December 31,
2017
|
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To exclude
stock-based compensation
|
|
|
$
584
|
|
|
|
|
|
$
320
|
|
|
|
|
|
$
881
|
|
|
|
To exclude
amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
resulting from business acquisitions
|
|
|
1,123
|
|
|
|
|
|
102
|
|
|
|
|
|
1,177
|
|
|
|
To exclude (gain)
loss on disposal and impairment on investments,
net
|
|
|
1,669
|
|
|
|
|
|
(321)
|
|
|
|
|
|
848
|
|
|
|
To exclude (gain)
loss resulting from the fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
changes in
investments, net
|
|
|
(3,339)
|
|
|
|
|
|
39
|
|
|
|
|
|
(1,426)
|
|
|
|
To exclude tax
impacts related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to
amortization of intangible assets
|
|
|
(178)
|
|
|
|
|
|
(21)
|
|
|
|
|
|
(178)
|
|
|
|
Earning (Loss)
from equity method investments, net
|
$
(2,082)
|
|
$
(141)
|
|
$
(2,223)
|
|
$
3,248
|
|
$
119
|
|
$
3,367
|
|
$
(2,642)
|
|
$
1,302
|
|
$
(1,340)
|
|
Share of
amortization of equity investments'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangibles
not on their books
|
224
|
|
(224)
|
|
-
|
|
(125)
|
|
125
|
|
-
|
|
(253)
|
|
253
|
|
-
|
|
Share of tax
impacts related to amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
investments' intangibles not on their books
|
86
|
|
(86)
|
|
-
|
|
20
|
|
(20)
|
|
-
|
|
52
|
|
(52)
|
|
-
|
|
|
$
(1,772)
|
|
$
(451)
|
|
$
(2,223)
|
|
$
3,143
|
|
$
224
|
|
$
3,367
|
|
$
(2,843)
|
|
$
1,503
|
|
$
(1,340)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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* Earning (Loss)
from equity method investments is recorded one quarter in
arrears.
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View original
content:http://www.prnewswire.com/news-releases/sina-reports-first-quarter-2018-unaudited-financial-results-300645252.html
SOURCE SINA Corporation