BEIJING, Aug. 15, 2018 /PRNewswire/ -- 58.com Inc. (NYSE:
WUBA) ("58.com" or the "Company"), China's largest online marketplace for
classifieds, today reported its unaudited financial results for the
second quarter ended June 30,
2018.
Second Quarter 2018 Financial Highlights
- Total revenues were RMB3,430.5
million (US$518.5
million[1]), a 32.3% increase from RMB2,593.3 million in the same quarter of 2017,
exceeding the high end of the Company's guidance of RMB3,200 million.
- Gross margin was 90.0% compared with 90.9% in the same quarter
of 2017.
- Income from operations was RMB742.9
million (US$112.3 million), a
27.6% increase from RMB582.4 million
in the same quarter of 2017.
- Non-GAAP income from operations[2] was RMB888.7 million (US$134.3
million), a 24.1% increase from RMB716.1 million in the same quarter of
2017.
- Net income attributable to 58.com Inc. was RMB685.3 million (US$103.6
million), a 27.1% increase from RMB539.3 million in the same quarter of
2017.
- Non-GAAP net income attributable to 58.com Inc.[3]
was RMB817.5 million (US$123.6 million), a 23.6% increase from
RMB661.6 million in the same quarter
of 2017.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB4.65
(US$0.70) and RMB4.57 (US$0.69),
respectively, representing 25.3% and 24.6% increases from
RMB3.71 and RMB3.67, respectively, in the same quarter of
2017. One ADS represents two Class A ordinary shares.
- Non-GAAP basic and diluted earnings per ADS[4]
attributable to ordinary shareholders were RMB5.55 (US$0.84)
and RMB5.45 (US$0.82), respectively, representing 21.9% and
21.2% increases from RMB4.55 and
RMB4.50, respectively, in the same
quarter of 2017.
First Half 2018 Financial Highlights
- Total revenues were RMB5,901.7
million (US$892.0 million), a
28.8% increase from RMB4,581.6
million in the same period of last year.
- Gross margin was 89.8% compared with 90.5% during the same
period of last year.
- Income from operations was RMB1,009.7
million (US$152.6 million), a
52.9% increase from RMB660.3 million
during the same period of last year.
- Non-GAAP income from operations was RMB1,300.2 million (US$196.5 million), a 39.3% increase from
RMB933.3 million during the same
period of last year.
- Net income attributable to 58.com Inc. was RMB859.9 million (US$130.0
million), a 66.1% increase from RMB517.8 million during the same period of last
year.
- Non-GAAP net income attributable to 58.com Inc. was
RMB1,123.3 million (US$169.8 million), a 46.4% increase from
RMB767.3 million during the same
period of last year.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB5.85
(US$0.88) and RMB5.75 (US$0.87),
respectively, representing 63.9% and 63.1% increases from
RMB3.57 and RMB3.53, respectively in the same quarter of
2017. One ADS represents two Class A ordinary shares.
- Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB7.64
(US$1.15) and RMB7.51 (US$1.14),
respectively, representing 44.5% and 43.8% increases from
RMB5.28 and RMB5.23, respectively in the same quarter of
2017.
Management Comments
"We delivered solid financial and operational results for the
second quarter with revenues exceeding the high end of our
guidance," commented Mr. Michael
Yao, Chairman and Chief Executive Officer of 58.com,
"Traffic from our apps continued to grow rapidly. We continued to
be the biggest online recruitment platform in China as defined by revenues. Job category
revenues continue to grow faster than most other major online
recruitment companies in China.
Revenue from our housing category remained resilient by delivering
better-than-expected growth despite tightened government policies
and low transaction volumes, especially in tier one and two cities.
Our two early-stage businesses continue to generate record high
traffic. Zhuan Zhuan, our C2C used goods transaction platform, has
gained significant growth momentum from its branding campaign and
Wechat Wallet access. 58 Town, a version of 58 specifically
designed for rural areas, continues to expand the number of towns
it covers and increase user engagement. We will continue to invest
in both our new and core classifieds businesses in order to best
position ourselves over the long term."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "We are
pleased to see revenues increase by 32.3% year-over-year. Having
increased our investments in Zhuan Zhuan and 58 Town sequentially,
non-GAAP net and operating profit during the second quarter still
grew a solid 24% year-over-year. We continue to see a lot of
opportunities for us to generate long-term revenues growth and
higher margins as our business further grows and operational
efficiency improves."
Second Quarter 2018 Financial Results
Revenues
Total revenues were RMB3,430.5
million (US$518.5 million),
representing an increase of 32.3% from RMB2,593.3 million in the same quarter of
2017.
Membership revenues were RMB1,166.9
million (US$176.4 million), an
increase of 21.1% from RMB963.7
million in the same quarter of 2017. The increase in
membership revenues was primarily driven by an increase in the
number of subscription-based paying membership accounts. The total
number of paying membership accounts on the Company's platforms,
which include 58.com, Ganji.com and Anjuke.com, was approximately
2,932,000 during the second quarter of 2018, a 19.0% increase from
approximately 2,464,000 in the same quarter of 2017.
Subscription-based paying membership accounts refer to the users
who have purchased the Company's subscription-based membership
services and whose membership subscriptions are active at any point
during a given period. Some paying members purchase membership
services from more than one of the Company's platforms which
contributes separately to the revenues of each platform.
Online marketing services revenues were RMB2,186.7 million (US$330.5 million), an increase of 42.3% from
RMB1,536.5 million in the same
quarter of 2017. 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 RMB341.5
million (US$51.6 million), an
increase of 45.2% from RMB235.3
million during the same quarter of 2017. The year-over-year
increase was primarily driven by increases in the costs of used
good sold on Zhuan Zhuan platform, costs of marketing services for
primary home business, traffic acquisition costs ("TAC") paid to
58.com's advertising union partners, salaries and benefits, and
short message service ("SMS") costs.
Gross Profit and Gross Margin
Gross profit was RMB3,089.0
million (US$466.9 million), an
increase of 31.0% from RMB2,358.0
million during the same quarter of 2017.
Gross margin was 90.0%, compared with 90.9% during the same
quarter of 2017.
Operating Expenses
Operating expenses were RMB2,346.1
million (US$354.6 million),
representing an increase of 32.1% from RMB1,775.6 million in the same quarter of
2017.
Sales and marketing expenses in the second quarter of 2018 were
RMB1,782.6 million (US$269.4 million), an increase of 39.1% from
RMB1,281.6 million in the same
quarter in 2017.
Within sales and marketing expenses, advertising expenses
accounted for RMB852.8 million
(US$128.9 million) during the second
quarter of 2018, an increase of 63.5% from RMB521.7 million during the same quarter in 2017.
The increase was primarily due to an increase in advertising
expenses associated with the brand campaign of Zhuan Zhuan and to a
lesser degree the increases for 58.com and other brands.
Non-advertising sales and marketing expenses in the second
quarter of 2018 were RMB929.8 million
(US$140.5 million), an increase of
22.4% from RMB759.9 million in the
same quarter in 2017. Non-advertising sales and marketing expenses
include salaries, benefits, commissions and share-based
compensation for the Company's sales, sales support, customer
service, and marketing dealer management personnel, online and
offline promotional expenses, and other operating expenses that are
associated with sales and marketing activities. The increase was
primarily driven by increased marketing expenses to business users,
as well as commissions, salaries and benefits for the Company's
sales and customer service teams.
Research and development expenses during the second quarter of
2018 were RMB394.0 million
(US$59.6 million), an increase of
21.9% from RMB323.2 million in the
same quarter of 2017. The increase was primarily due to increases
in salaries and benefits and share-based compensation expenses for
the Company's research and development personnel for the
development of new features and services.
General and administrative expenses in the second quarter of
2018 were RMB169.4 million
(US$25.6 million), essentially flat
when compared with RMB170.9 million
in the same quarter of 2017.
Income from Operations
Income from operations was RMB742.9
million (US$112.3 million) in
the second quarter of 2018, an increase of 27.6% from RMB582.4 million in the same quarter of 2017.
Operating margin, defined as income from operations divided by
total revenues, was 21.7% in the second quarter of 2018, compared
with 22.5% in the same quarter of 2017.
Non-GAAP income from operations was RMB888.7 million (US$134.3
million) in the second quarter of 2018, an increase of 24.1%
from RMB716.1 million in the same
quarter of 2017. Non-GAAP operating margin, defined as non-GAAP
income from operations divided by total revenues, was 26.0% in the
second quarter of 2018, compared with 27.6% in the same quarter of
2017.
Other Income/(Expenses), net
Other income in the second quarter of 2018 was RMB94.1 million (US$14.2
million), compared with other income of RMB41.5 million in the same quarter of 2017.
Other income in the second quarter of 2018 mainly included
RMB54.4 million in investment income
associated with the purchase of short-term investments,
RMB35.8 million in tax refunds and
other government subsidies, and RMB15.4
million in investment income generated from the disposal of
long-term investments, which were partially offset by RMB16.3 million share of net loss of equity
investees.
Net Income Attributable to
58.com Inc.
Net income attributable to 58.com Inc. was RMB685.3 million (US$103.6
million) in the second quarter of 2018, an increase of 27.1%
from RMB539.3 million in the same
quarter of 2017. Net margin, defined as net income attributable to
58.com Inc. divided by total revenues, was 20.0% in the second
quarter of 2018, compared with 20.8% in the same quarter of
2017.
Non-GAAP net income attributable to 58.com Inc. was
RMB817.5 million (US$123.6 million) in the second quarter of 2018,
an increase of 23.6% from RMB661.6
million in the same quarter of 2017. Non-GAAP net margin,
defined as non-GAAP net income attributable to 58.com Inc. divided
by total revenues, was 23.9% in the second quarter of 2018,
compared with 25.5% in the same quarter of 2017.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in the second quarter of 2018 were RMB4.65 (US$0.70)
and RMB4.57 (US$0.69), respectively, representing increases
of 25.3% and 24.6% from basic and diluted earnings per ADS
attributable to ordinary shareholders of RMB3.71 and RMB3.67, respectively, in the same quarter of
2017.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in the second quarter of 2018 were
RMB5.55 (US$0.84) and RMB5.45 (US$0.82),
respectively, representing increases of 21.9% and 21.2% from
non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders of RMB4.55 and
RMB4.50, respectively, in the same
quarter of 2017.
Cash Flow
Net cash provided by operating activities was RMB1,260.0 million (US$190.4 million) in the second quarter of 2018,
an increase of 79.5% from net cash provided by operating activities
of RMB702.1 million in the same
quarter of 2017.
First Half 2018 Financial Results
Revenues
Total revenues were RMB5,901.7
million (US$892.0 million) in
the first half of 2018, representing an increase of 28.8% from
RMB4,581.6 million during the same
period of 2017.
Membership revenues were RMB2,095.7
million (US$316.7 million) in
the first half of 2018, an increase of 19.3% from RMB1,756.6 million during the same period of
2017. The increase in membership revenues was primarily driven by
an increase in the number of subscription-based paying membership
accounts. The total number of average quarterly subscription-based
paying membership accounts on the Company's platforms, which
include 58.com, Ganji.com and Anjuke.com, was approximately
2,799,000 during the first half of 2018, a 19.7% increase from
approximately 2,338,000 in the same period of 2017.
Online marketing services revenues were RMB3,678.6 million (US$556.0 million) in the first half of 2018, an
increase of 37.6% from RMB2,673.5
million during the same period of 2017. The increase was
primarily driven by the increasing adoption and effectiveness of
the Company's various online marketing services such as real time
bidding and priority listings.
Cost of Revenues
Cost of revenues was RMB599.5
million (US$90.6 million) in
the first half of 2018, an increase of 37.8% from RMB434.9 million during the same period of 2017.
The year-over-year increase was primarily driven by increases in
the costs of used good sold on Zhuan Zhuan platform, costs of
marketing services for primary home business, TAC paid to 58.com's
advertising union partners, salaries and benefits, and SMS
costs.
Gross Profit and Gross Margin
Gross profit was RMB5,302.2
million (US$801.4 million) in
the first half of 2018, an increase of 27.9% from RMB4,146.7 million during the same period of
2017.
Gross margin was 89.8%, compared with 90.5% during the same
period of 2017.
Operating Expenses
Operating expenses were RMB4,292.5
million (US$648.7 million),
representing an increase of 23.1% from RMB3,486.4 million during the same period of
2017.
Sales and marketing expenses in the first half of 2018 were
RMB3,221.8 million (US$486.9 million), an increase of 27.5% from
RMB2,527.6 million during the same
period in 2017.
Within sales and marketing expenses, advertising expenses in the
first half of 2018 were RMB1,534.8
million (US$232.0 million), an
increase of 48.4% from RMB1,033.9
million during the same period in 2017. The increase was
primarily due to an increase in advertising expenses associated
with the brand campaign of Zhuan Zhuan and increases for 58.com and
other brands.
Non-advertising sales and marketing expenses in the first half
of 2018 were RMB1,687.0 million
(US$255.0 million), an increase of
12.9% from RMB1,493.6 million during
the same period in 2017. Non-advertising sales and marketing
expenses include salaries, benefits, commissions and share-based
compensation for the Company's sales, sales support, customer
service, and marketing dealer management personnel, online and
offline promotional expenses, and other operating expenses that are
associated with sales and marketing activities. The increase was
primarily driven by increased marketing expenses to business users,
as well as commissions, salaries and benefits for the Company's
sales and customer service teams.
Research and development expenses in the first half of 2018 were
RMB740.4 million (US$111.9 million), an increase of 16.1% from
RMB637.7 million during the same
period of 2017. The increase was primarily due to increases in
salaries and benefits and share-based compensation expenses for the
Company's research and development personnel for the development of
new features and services.
General and administrative expenses in the first half of 2018
were RMB330.2 million (US$49.9 million), a slight increase of 2.8% from
RMB321.1 million during the same
period of 2017.
Income from Operations
Income from operations was RMB1,009.7
million (US$152.6 million) in
the first half of 2018, an increase of 52.9% from RMB660.3 million during the same period of 2017.
Operating margin was 17.1% in the first half of 2018, compared with
14.4% during the same period of 2017.
Non-GAAP income from operations was RMB1,300.2 million (US$196.5 million) in the first half of 2018, an
increase of 39.3% from RMB933.3
million during the same period of 2017. Non-GAAP operating
margin was 22.0% in the first half of 2018, compared with 20.3%
during the same period of 2017.
Other Income/(expenses), net
Other income in the first half of 2018 were RMB102.9 million (US$15.6
million), compared with other expenses of RMB55.3 million during the same period of 2017.
Other income in the first half of 2018 mainly included RMB95.5 million in investment income resulting
from the purchase of short-term investments, RMB35.4 million in tax refunds and other
government subsidies, and RMB15.4
million in investment income generated from the disposal of
long-term investments, which were partially offset by RMB53.6 million share of the net loss of equity
investees.
Net Income Attributable to
58.com Inc.
Net income attributable to 58.com Inc. was RMB859.9 million (US$130.0
million) in the first half of 2018, an increase of 66.1%
from RMB517.8 million in the same
period of 2017. Net margin was 14.6% in the first half of 2018,
compared with 11.3% during the same period of 2017.
Non-GAAP net income attributable to 58.com Inc. was RMB1,123.3 million (US$169.8 million) in the first half of 2018, an
increase of 46.4% from RMB767.3
million during the same period of 2017. Non-GAAP net margin
was 19.0% in the first half of 2018, compared with 16.7% during the
same period of 2017.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in the first half of 2018 were RMB5.85 (US$0.88)
and RMB5.75 (US$0.87), representing increases of 63.9% and
63.1% from basic and diluted earnings per ADS attributable to
ordinary shareholders of RMB3.57 and
RMB3.53, respectively, during the
same period of 2017.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in the first half of 2018 were RMB7.64 (US$1.15)
and RMB7.51 (US$1.14), respectively, representing increases
of 44.5% and 43.8% from non-GAAP basic and diluted earnings per ADS
attributable to ordinary shareholders of RMB5.28 and RMB5.23, respectively, during the same period of
2017.
Cash Flow
Net cash provided by operating activities was RMB1,970.0 million (US$297.7 million) in the first half of 2018, an
increase of 74.2% from net cash provided by operating activities of
RMB1,130.7 million during the same
period of 2017.
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments
As of June 30, 2018, the Company
had cash and cash equivalents, restricted cash and short-term
investments of RMB7,484.8 million
(US$1,131.2 million).
Shares Outstanding
As of June 30, 2018, the Company
had a total of 294,978,961 ordinary shares (including 249,192,797
Class A ordinary shares and 45,786,164 Class B ordinary shares)
issued and outstanding. One ADS represents two Class A ordinary
shares.
Business Outlook
Based on the Company's current operations, total revenues for
the third quarter of 2018 are expected to be between RMB3,450 million and RMB3,550 million. This represents a
year-over-year increase of 26.7% to 30.4% 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 group (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, 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 group (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 and income tax effects of
above GAAP to non-GAAP reconciling items, all of which should be
considered when evaluating the Company's performance. These
non-GAAP financial measures should be considered in addition to
financial measures prepared in accordance with GAAP, but should not
be considered a substitute for, or superior to, financial measures
prepared in accordance with GAAP. Reconciliation of each of these
non-GAAP financial measures to the most directly comparable GAAP
financial measure is set forth at the end of this release.
Conference Call
58.com's management will host an earnings conference call on
August 16, 2018 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong
Kong time on the same day).
Dial-in details for the earnings conference call are as
follows:
International:
|
+1-412-317-5225
|
U.S. Toll
Free:
|
+1-866-235-9918
|
Hong Kong:
|
852-301-84992
|
China:
|
4001-201203
|
Passcode:
|
6889220
|
Please dial in 15 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available after the
conclusion of the conference call through 8:00 a.m. U.S. Eastern Time, August 23, 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:
|
10123215
|
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 market place 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 business users and consumer users 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,
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,524,982
|
|
1,887,091
|
|
285,206
|
Restricted
cash-current
|
93,350
|
|
811,282
|
|
122,613
|
Short-term
investments
|
3,437,707
|
|
4,786,427
|
|
723,397
|
Accounts receivable,
net
|
667,750
|
|
700,212
|
|
105,827
|
Prepayments and other
current assets
|
657,272
|
|
1,014,024
|
|
153,255
|
Total current
assets
|
6,381,061
|
|
9,199,036
|
|
1,390,298
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash-non-current
|
792,000
|
|
-
|
|
-
|
Property and
equipment, net
|
1,351,681
|
|
1,308,868
|
|
197,816
|
Intangible assets,
net
|
1,309,566
|
|
1,198,265
|
|
181,100
|
Land use rights,
net
|
3,688
|
|
3,649
|
|
551
|
Goodwill
|
15,864,655
|
|
15,864,655
|
|
2,397,705
|
Long-term
investments
|
1,808,601
|
|
1,908,743
|
|
288,478
|
Long-term prepayments
and other non-current assets
|
755,260
|
|
692,717
|
|
104,694
|
Total non-current
assets
|
21,885,451
|
|
20,976,897
|
|
3,170,344
|
Total
assets
|
28,266,512
|
|
30,175,933
|
|
4,560,642
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
75,000
|
|
786,285
|
|
118,835
|
Accounts
payable
|
624,300
|
|
944,454
|
|
142,740
|
Deferred
revenues
|
2,123,755
|
|
2,375,255
|
|
358,984
|
Customer
advances
|
1,365,437
|
|
1,494,116
|
|
225,814
|
Taxes
payable
|
186,491
|
|
253,937
|
|
38,379
|
Salary and welfare
payable
|
536,831
|
|
490,416
|
|
74,119
|
Accrued expenses and
other current liabilities
|
689,134
|
|
842,865
|
|
127,386
|
Total current
liabilities
|
5,600,948
|
|
7,187,328
|
|
1,086,257
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
loans
|
777,427
|
|
37,500
|
|
5,668
|
Deferred tax
liabilities
|
319,219
|
|
292,107
|
|
44,148
|
Other
non-current liabilities
|
17,376
|
|
4,187
|
|
633
|
Total
non-current liabilities
|
1,114,022
|
|
333,794
|
|
50,449
|
Total
liabilities
|
6,714,970
|
|
7,521,122
|
|
1,136,706
|
Mezzanine
equity:
|
|
|
|
|
|
Mezzanine classified
noncontrolling interests
|
1,736,405
|
|
1,808,418
|
|
273,315
|
Total mezzanine
equity
|
1,736,405
|
|
1,808,418
|
|
273,315
|
Shareholders'
equity:
|
|
|
|
|
|
58.com Inc.
shareholders' equity:
|
|
|
|
|
|
Ordinary shares
(US$0.00001 par value, 4,800,000,000 Class A and 200,000,000 Class
B shares authorized, 245,924,871 Class A and 48,040,260 Class B
shares issued and outstanding as of December 31, 2017 and
249,192,797 Class A and 45,786,164 Class B shares issued and
outstanding as of June 30, 2018, respectively)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
18
|
|
3
|
Additional paid-in
capital
|
21,338,787
|
|
21,429,164
|
|
3,238,697
|
Accumulated
deficit
|
(1,689,683)
|
|
(766,095)
|
|
(115,784)
|
Accumulated other
comprehensive loss
|
(55,671)
|
|
(24,028)
|
|
(3,631)
|
Total 58.com Inc.
shareholders' equity
|
19,593,451
|
|
20,639,059
|
|
3,119,285
|
Noncontrolling
interests
|
221,686
|
|
207,334
|
|
31,336
|
Total
shareholders' equity
|
19,815,137
|
|
20,846,393
|
|
3,150,621
|
Total liabilities,
mezzanine equity and shareholders' equity
|
28,266,512
|
|
30,175,933
|
|
4,560,642
|
58.com Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION
|
(in thousands,
except share, per share and per ADS data, unless otherwise
noted)
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Membership
|
963,677
|
|
1,166,859
|
|
176,353
|
|
1,756,605
|
|
2,095,745
|
|
316,740
|
|
Online marketing
services
|
1,536,461
|
|
2,186,660
|
|
330,481
|
|
2,673,503
|
|
3,678,638
|
|
555,971
|
|
E-commerce
services
|
26,416
|
|
23,120
|
|
3,494
|
|
41,827
|
|
31,015
|
|
4,687
|
|
Other
services
|
66,753
|
|
53,891
|
|
8,145
|
|
109,643
|
|
96,305
|
|
14,555
|
Total
revenues
|
2,593,307
|
|
3,430,530
|
|
518,473
|
|
4,581,578
|
|
5,901,703
|
|
891,953
|
Cost of
revenues(1)
|
(235,291)
|
|
(341,535)
|
|
(51,618)
|
|
(434,883)
|
|
(599,481)
|
|
(90,603)
|
Gross
profit
|
2,358,016
|
|
3,088,995
|
|
466,855
|
|
4,146,695
|
|
5,302,222
|
|
801,350
|
Operating
expenses(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses(2)
|
(1,281,553)
|
|
(1,782,590)
|
|
(269,412)
|
|
(2,527,571)
|
|
(3,221,812)
|
|
(486,929)
|
|
Research and
development expenses
|
(323,192)
|
|
(394,046)
|
|
(59,554)
|
|
(637,670)
|
|
(740,442)
|
|
(111,907)
|
|
General and
administrative expenses
|
(170,859)
|
|
(169,430)
|
|
(25,607)
|
|
(321,131)
|
|
(330,234)
|
|
(49,910)
|
Total operating
expenses
|
(1,775,604)
|
|
(2,346,066)
|
|
(354,573)
|
|
(3,486,372)
|
|
(4,292,488)
|
|
(648,746)
|
Income from
operations
|
582,412
|
|
742,929
|
|
112,282
|
|
660,323
|
|
1,009,734
|
|
152,604
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income/(expenses), net
|
(5,022)
|
|
2,070
|
|
313
|
|
(10,802)
|
|
3,244
|
|
490
|
|
Investment income,
net
|
251,122
|
|
69,763
|
|
10,544
|
|
258,747
|
|
110,848
|
|
16,753
|
|
Share of results of
equity investees
|
(207,909)
|
|
(16,251)
|
|
(2,456)
|
|
(306,980)
|
|
(53,586)
|
|
(8,099)
|
|
Foreign currency
exchange gain/(loss), net
|
223
|
|
(1,796)
|
|
(271)
|
|
184
|
|
(894)
|
|
(135)
|
|
Others,
net
|
3,100
|
|
40,291
|
|
6,089
|
|
3,572
|
|
43,288
|
|
6,542
|
Income before
tax
|
623,926
|
|
837,006
|
|
126,501
|
|
605,044
|
|
1,112,634
|
|
168,155
|
|
Income tax
expenses
|
(55,358)
|
|
(119,360)
|
|
(18,039)
|
|
(53,395)
|
|
(189,468)
|
|
(28,635)
|
Net
income
|
568,568
|
|
717,646
|
|
108,462
|
|
551,649
|
|
923,166
|
|
139,520
|
|
Net loss/(income)
attributable to noncontrolling interests
|
(2,009)
|
|
(400)
|
|
(60)
|
|
(2,119)
|
|
421
|
|
64
|
|
Deemed dividend to
mezzanine classified noncontrolling interests
|
(27,288)
|
|
(31,926)
|
|
(4,825)
|
|
(31,776)
|
|
(63,692)
|
|
(9,626)
|
Net income
attributable to 58.com Inc.
|
539,271
|
|
685,320
|
|
103,577
|
|
517,754
|
|
859,895
|
|
129,958
|
Net earnings per
ordinary share attributable to ordinary shareholders ‑
basic
|
1.85
|
|
2.32
|
|
0.35
|
|
1.78
|
|
2.92
|
|
0.44
|
Net earnings per
ordinary share attributable to ordinary shareholders ‑
diluted
|
1.83
|
|
2.29
|
|
0.35
|
|
1.76
|
|
2.88
|
|
0.43
|
Net earnings per ADS
attributable to ordinary shareholders – basic
(1 ADS represents 2 Class A ordinary shares)
|
3.71
|
|
4.65
|
|
0.70
|
|
3.57
|
|
5.85
|
|
0.88
|
Net earnings per ADS
attributable to ordinary shareholders – diluted
(1 ADS represents 2 Class A ordinary shares)
|
3.67
|
|
4.57
|
|
0.69
|
|
3.53
|
|
5.75
|
|
0.87
|
Weighted average
number of ordinary shares used in computing basic earnings per
share
|
290,768,816
|
|
294,800,587
|
|
294,800,587
|
|
290,383,016
|
|
294,222,506
|
|
294,222,506
|
Weighted average
number of ordinary shares used in computing diluted earnings per
share
|
293,996,868
|
|
299,860,203
|
|
299,860,203
|
|
293,645,948
|
|
298,962,360
|
|
298,962,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Share‑based
compensation expenses were allocated in cost of revenues and
operating expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
424
|
|
1,012
|
|
153
|
|
998
|
|
2,115
|
|
320
|
Sales and marketing
expenses
|
14,909
|
|
16,199
|
|
2,448
|
|
32,603
|
|
33,334
|
|
5,038
|
Research and
development expenses
|
31,379
|
|
35,119
|
|
5,308
|
|
61,210
|
|
70,716
|
|
10,688
|
General and
administrative expenses
|
31,637
|
|
42,539
|
|
6,429
|
|
65,982
|
|
83,288
|
|
12,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets resulting from business acquisitions were
allocated in operating expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
43,671
|
|
43,637
|
|
6,595
|
|
88,815
|
|
87,286
|
|
13,192
|
Research and
development expenses
|
11,677
|
|
11,677
|
|
1,765
|
|
23,354
|
|
23,354
|
|
3,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Breakdown of sales
and marketing expenses was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
expenses
|
521,699
|
|
852,817
|
|
128,891
|
|
1,033,926
|
|
1,534,836
|
|
231,967
|
Non-advertising sales
and marketing expenses
|
759,854
|
|
929,773
|
|
140,521
|
|
1,493,645
|
|
1,686,976
|
|
254,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58.com Inc.
|
Reconciliation of
GAAP and Non-GAAP Results
|
(in thousands,
except share, ADS, per share and per ADS data, unless otherwise
noted)
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
GAAP income from
operations
|
582,412
|
|
742,929
|
|
112,282
|
|
660,323
|
|
1,009,734
|
|
152,604
|
|
Share-based
compensation expenses[5]
|
78,349
|
|
90,454
|
|
13,671
|
|
160,793
|
|
179,875
|
|
27,186
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
55,348
|
|
55,314
|
|
8,360
|
|
112,169
|
|
110,640
|
|
16,722
|
Non-GAAP income
from operations
|
716,109
|
|
888,697
|
|
134,313
|
|
933,285
|
|
1,300,249
|
|
196,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to 58.com Inc.
|
539,271
|
|
685,320
|
|
103,577
|
|
517,754
|
|
859,895
|
|
129,958
|
|
Share-based
compensation expenses
|
78,349
|
|
90,454
|
|
13,671
|
|
160,793
|
|
179,875
|
|
27,186
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
55,348
|
|
55,314
|
|
8,360
|
|
112,169
|
|
110,640
|
|
16,722
|
|
Share-based
compensation expenses included in share of results of equity
investees
|
2,166
|
|
8
|
|
1
|
|
4,358
|
|
(8)
|
|
(1)
|
|
Income tax effects of
GAAP to non-GAAP reconciling items[6]
|
(13,556)
|
|
(13,556)
|
|
(2,049)
|
|
(27,761)
|
|
(27,112)
|
|
(4,098)
|
Non-GAAP net
income attributable to 58.com Inc.
|
661,578
|
|
817,540
|
|
123,560
|
|
767,313
|
|
1,123,290
|
|
169,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
22.5%
|
|
21.7%
|
|
21.7%
|
|
14.4%
|
|
17.1%
|
|
17.1%
|
|
Share-based
compensation expenses
|
3.0%
|
|
2.7%
|
|
2.7%
|
|
3.5%
|
|
3.0%
|
|
3.0%
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
2.1%
|
|
1.6%
|
|
1.6%
|
|
2.4%
|
|
1.9%
|
|
1.9%
|
Non-GAAP operating
margin
|
27.6%
|
|
26.0%
|
|
26.0%
|
|
20.3%
|
|
22.0%
|
|
22.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
margin
|
20.8%
|
|
20.0%
|
|
20.0%
|
|
11.3%
|
|
14.6%
|
|
14.6%
|
|
Share-based
compensation expenses
|
3.0%
|
|
2.7%
|
|
2.7%
|
|
3.5%
|
|
3.0%
|
|
3.0%
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
2.1%
|
|
1.6%
|
|
1.6%
|
|
2.4%
|
|
1.9%
|
|
1.9%
|
|
Share-based
compensation expenses included in share of results of equity
investees
|
0.1%
|
|
0.0%
|
|
0.0%
|
|
0.1%
|
|
(0.0)%
|
|
(0.0)%
|
|
Income tax effects of
GAAP to non-GAAP reconciling items
|
(0.5)%
|
|
(0.4)%
|
|
(0.4)%
|
|
(0.6)%
|
|
(0.5)%
|
|
(0.5)%
|
Non-GAAP net
margin
|
25.5%
|
|
23.9%
|
|
23.9%
|
|
16.7%
|
|
19.0%
|
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing non-GAAP basic earnings
per share
|
290,768,816
|
|
294,800,587
|
|
294,800,587
|
|
290,383,016
|
|
294,222,506
|
|
294,222,506
|
|
Weighted average
number of ordinary shares used in computing non-GAAP diluted
earnings per share
|
293,996,868
|
|
299,860,203
|
|
299,860,203
|
|
293,645,948
|
|
298,962,360
|
|
298,962,360
|
|
Weighted average
number of ADS used in computing non-GAAP basic earnings per
ADS
|
145,384,408
|
|
147,400,293
|
|
147,400,293
|
|
145,191,508
|
|
147,111,253
|
|
147,111,253
|
|
Weighted average
number of ADS used in computing non-GAAP diluted earnings per
ADS
|
146,998,434
|
|
149,930,101
|
|
149,930,101
|
|
146,822,974
|
|
149,481,180
|
|
149,481,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net earnings
per ordinary share attributable to ordinary shareholders ‑
basic
|
2.28
|
|
2.77
|
|
0.42
|
|
2.64
|
|
3.82
|
|
0.58
|
|
Non-GAAP net earnings
per ordinary share attributable to ordinary shareholders ‑
diluted
|
2.25
|
|
2.73
|
|
0.41
|
|
2.61
|
|
3.76
|
|
0.57
|
|
Non-GAAP net earnings
per ADS attributable to ordinary shareholders ‑
basic
|
4.55
|
|
5.55
|
|
0.84
|
|
5.28
|
|
7.64
|
|
1.15
|
|
Non-GAAP net earnings
per ADS attributable to ordinary shareholders ‑
diluted
|
4.50
|
|
5.45
|
|
0.82
|
|
5.23
|
|
7.51
|
|
1.14
|
[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. dollar amounts in this press release are
made at RMB6.6166 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 June 29, 2018. On
August 15, 2018, such exchange rate
was RMB6.8856 to US$1.00. The percentages stated in this press
release are calculated based on the Renminbi amounts.
[2] Non-GAAP income from operations is defined as income 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 attributable to 58.com Inc. is defined
as net income attributable to 58.com Inc. excluding share-based
compensation expenses of the group (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, 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 per ADS are defined as
non-GAAP net income attributable to 58.com Inc. divided by weighted
average number of basic and diluted ADSs.
[5] Since the third quarter of 2017, certain share-based awards
with redemption features granted to the Company's 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 RMB4.4 million and
RMB9.6 million for the three months
and six months ended June 30, 2018 ,
respectively, and 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 disposal of business. Other GAAP to
non-GAAP reconciling items have no income tax effect.
View original
content:http://www.prnewswire.com/news-releases/58com-reports-second-quarter-2018-unaudited-financial-results-300697718.html
SOURCE 58.com Inc