BEIJING, Feb. 28, 2019 /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, 2018.
Fourth Quarter 2018 Financial Highlights
- Total revenues were RMB3,609.3
million (US$525.9
million[1]), a 30.6% increase from RMB2,764.7 million in the same quarter of 2017,
exceeding the high end of the Company's guidance of RMB3,600 million.
- Gross margin was 87.3% compared with 90.5% in the same quarter
of 2017.
- Income from operations was RMB706.4
million (US$102.9 million), a
15.1% increase from RMB613.7 million
in the same quarter of 2017.
- Non-GAAP income from operations[2] was RMB894.6 million (US$130.3
million), a 17.3% increase from RMB762.5 million in the same quarter of
2017.
- Net income attributable to 58.com Inc. ordinary shareholders
was RMB410.9 million (US$59.9 million), a 0.8% decrease from
RMB414.1 million in the same quarter
of 2017.
- Non-GAAP net income attributable to 58.com Inc. ordinary
shareholders[3] was RMB756.3
million (US$110.2 million), a
37.8% increase from RMB549.0 million
in the same quarter of 2017.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB2.78
(US$0.41) and RMB2.75 (US$0.40),
respectively, representing 1.4% and 1.0% decreases from
RMB2.82 and RMB2.78, 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 RMB5.12 (US$0.75)
and RMB5.06 (US$0.74), respectively, representing 36.7% and
37.3% increases from RMB3.74 and
RMB3.69, respectively, in the same
quarter of 2017.
Fiscal Year 2018 Financial Highlights
- Total revenues were RMB13,137.8
million (US$1,914.2 million),
a 30.5% increase from RMB10,068.8
million in fiscal year 2017.
- Gross margin was 89.1% compared with 90.8% in fiscal year
2017.
- Income from operations was RMB2,386.7
million (US$347.7 million), a
32.9% increase from RMB1,796.5
million in fiscal year 2017.
- Non-GAAP income from operations was RMB3,051.3 million (US$444.6 million), a 29.3% increase from
RMB2,359.2 million in fiscal year
2017.
- Net income attributable to 58.com Inc. ordinary shareholders
was RMB1,997.0 million (US$291.0 million), a 55.4% increase from
RMB1,285.1 million in fiscal year
2017.
- Non-GAAP net income attributable to 58.com Inc. ordinary
shareholders was RMB2,723.1 million
(US$396.8 million), a 51.7% increase
from RMB1,795.0 million in fiscal
year 2017.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB13.54
(US$1.97) and RMB13.33 (US$1.94),
respectively, representing 53.6% and 53.2% increases from
RMB8.82 and RMB8.70, respectively in 2017.
- Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB18.47
(US$2.69) and RMB18.17 (US$2.65),
respectively, representing 49.9% and 49.4% increases from
RMB12.32 and RMB12.16, respectively in 2017.
Management Comments
"We are pleased to close 2018 with a strong fourth quarter,"
commented Mr. Michael Yao, Chairman
and Chief Executive Officer of 58.com. "Throughout 2018, our
portfolio of apps including mainly 58.com, Anjuke, and Zhuan Zhuan
generated strong growth and now cover over 500 million users as
traffic continues to grow in a healthy and sustainable manner.
Revenues for fiscal year 2018 also grew 30.5% when compared to last
year despite a softening macroeconomic environment in China."
"Our core housing and jobs businesses continue to lead the
market while newer businesses like Zhuan Zhuan and 58 Town have
expanded our addressable market, particularly in lower tier cities.
While these newer businesses generated larger losses when compared
with a year ago, our operating profit continued its rapid growth
and operating margins for fiscal year 2018 were roughly the same
when compared to last year due to improved operational efficiency
in our core business."
"I'm pleased with the progress we have made throughout the year.
As a horizontal multi-category platform, we have demonstrated our
ability to acquire users at relatively low cost and retain them
through innovation and improvement of the user experience. We will
continue to invest in our platform to better serve our growing
number of users while working to increase operational
efficiency."
Fourth Quarter 2018 Financial Results
Revenues
Total revenues were RMB3,609.3
million (US$525.9 million),
representing an increase of 30.6% from RMB2,764.7 million in the same quarter of
2017.
Membership revenues were RMB1,122.2
million (US$163.5 million), an
increase of 8.0% from RMB1,038.8
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 subscription-based paying membership
accounts on the Company's platforms, which include 58.com,
Anjuke.com, and Ganji.com, was approximately 2,770,000 during the
fourth quarter of 2018, a 4.4% increase from approximately
2,654,000 in the same quarter of 2017. The Company defines
subscription-based paying membership accounts as registered
accounts through which users have purchased the Company's
subscription-based membership services and whose membership
subscriptions are active at any point during a 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 RMB2,275.0 million (US$331.5 million), an increase of 38.3% from
RMB1,644.5 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 RMB457.7
million (US$66.7 million), an
increase of 74.1% from RMB262.9
million in the same quarter of 2017. The year-over-year
increase was primarily driven by increases in the costs of goods
and services sold on Zhuan Zhuan, Anjuke, and ChinaHR platforms as
well as traffic acquisition costs paid to 58.com's advertising
union partners, and salaries and benefits primarily for information
quality control teams.
Gross Profit and Gross Margin
Gross profit was RMB3,151.6
million (US$459.2 million), an
increase of 26.0% from RMB2,501.8
million during the same quarter of 2017.
Gross margin was 87.3%, compared with 90.5% during the same
quarter of 2017.
Operating Expenses
Operating expenses were RMB2,445.2
million (US$356.3 million), an
increase of 29.5% from RMB1,888.1
million in the same quarter of 2017.
Sales and marketing expenses in the fourth quarter of 2018 were
RMB1,719.9 million (US$250.6 million), an increase of 28.5% from
RMB1,338.6 million in the same
quarter in 2017.
Within sales and marketing expenses, advertising expenses in the
fourth quarter of 2018 were RMB796.5
million (US$116.1 million), an
increase of 55.6% from RMB511.9
million in the fourth quarter of 2017.
The increase was primarily due to an increase in mobile traffic
acquisition expenses, particularly for mobile applications such as
58.com, Anjuke, and Zhuan Zhuan. Advertising expenses associated
with the Company's core businesses including 58.com and Anjuke
accounted for the majority of the increase. The Company scaled back
advertising expenses associated with Zhuan Zhuan following the
conclusion of a major brand campaign during the second and third
quarters of 2018.
Non-advertising sales and marketing expenses in the fourth
quarter of 2018 were RMB923.4 million
(US$134.5 million), an increase of
11.7% from RMB826.7 million in the
same quarter in 2017.
Non-advertising sales and marketing expenses include salaries,
benefits, commissions and share-based compensation expenses 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 in non-advertising sales and marketing expenses was
mainly related to an increase in field sales teams and customer
services personnel commissions and salaries and marketing and
promotional expenses for 58.com and newer platforms such as 58 Town
and Zhuan Zhuan. The average number of employees in the Company's
field sales, customer service and other sales and marketing nature
teams were roughly the same during the quarter when compared to
same period in 2017.
Research and development expenses in the fourth quarter of 2018
were RMB493.5 million (US$71.9 million), an increase of 37.9% from
RMB357.9 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 fourth quarter of
2018 were RMB231.8 million
(US$33.8 million), an increase of
21.0% from RMB191.6 million in the
same quarter of 2017. The increase was primarily due to the
increase in salaries, benefits and share-based compensation
expenses related to administrative personnel.
Income from Operations
Income from operations was RMB706.4
million (US$102.9 million) in
the fourth quarter of 2018, an increase of 15.1% from RMB613.7 million in the same quarter of 2017.
Operating margin, defined as income from operations divided by
total revenues, was 19.6% in the fourth quarter of 2018, compared
with 22.2% in the same quarter of 2017.
Non-GAAP income from operations was RMB894.6 million (US$130.3
million) in the fourth quarter of 2018, an increase of 17.3%
from RMB762.5 million in the same
quarter of 2017.
Non-GAAP operating margin, defined as non-GAAP income from
operations divided by total revenues, was 24.8% in the fourth
quarter of 2018, compared with 27.6% in the same quarter of
2017.
Other Expenses, net
Other expenses in the fourth quarter of 2018 were RMB164.5 million (US$24.0
million), compared with other expenses of RMB123.8 million in the same quarter of 2017.
Net investment loss was RMB190.9
million. Within the net investment loss was a loss in change
in fair value of long-term investments of RMB206.7 million, which was primarily due to a
decrease in share price of a publicly traded company in which the
Group holds a minority stake.
Share of results of equity investees was a loss of RMB15.8 million which was primarily related to
equity pick-up from 58 Home, 58.com's non-consolidated
affiliate.
Net Income Attributable to
58.com Inc. Ordinary
Shareholders
Net income attributable to 58.com Inc. ordinary shareholders was
RMB410.9 million (US$59.9 million) in the fourth quarter of 2018, a
decrease of 0.8% from RMB414.1
million in the same quarter of 2017.
Net margin, defined as net income attributable to 58.com Inc.
ordinary shareholders divided by total revenues, was 11.4% in the
fourth quarter of 2018, compared with 15.0% in the same quarter of
2017.
Non-GAAP net income attributable to 58.com Inc. ordinary
shareholders was RMB756.3 million
(US$110.2 million) in the fourth
quarter of 2018, an increase of 37.8% from RMB549.0 million in the same quarter of 2017.
Non-GAAP net margin, defined as non-GAAP net income attributable
to 58.com Inc. ordinary shareholders divided by total revenues, was
21.0% in the fourth quarter of 2018, compared with 19.9% in the
same quarter of 2017.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in the fourth quarter of 2018 were RMB2.78 (US$0.41)
and RMB2.75 (US$0.40), respectively, representing 1.4% and
1.0% decreases from RMB2.82 and
RMB2.78, respectively, in the same
quarter of 2017.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in the fourth quarter of 2018 were
RMB5.12 (US$0.75) and RMB5.06 (US$0.74),
respectively, representing 36.7% and 37.3% increases from
RMB3.74 and RMB3.69, respectively, in the same quarter of
2017.
Cash Flow
Net cash provided by operating activities was RMB966.1 million (US$140.8
million) in the fourth quarter of 2018, an increase of 2.1%
from RMB946.3 million in the same
quarter of 2017.
Fiscal Year 2018 Financial Results
Revenues
Total revenues were RMB13,137.8
million (US$1,914.2 million)
in 2018, representing an increase of 30.5% from RMB10,068.8 million during fiscal year 2017.
Membership revenues were RMB4,399.1
million (US$641.0 million) in
2018, an increase of 16.1% from RMB3,789.5
million during fiscal year 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, Anjuke.com and Ganji.com, was approximately
2,834,000 during 2018, a 14.0% increase from approximately
2,485,000 during 2017.
Online marketing services revenues were RMB8,282.6 million (US$1,206.8 million) in 2018, an increase of 38.5%
from RMB5,978.5 million during fiscal
year 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 RMB1,437.8
million (US$209.5 million) in
2018, an increase of 55.4% from RMB925.5
million during fiscal year 2017.
The year-over-year increase was primarily driven by increases in
the costs of goods and services sold on Zhuan Zhuan, Anjuke, and
ChinaHR platforms, traffic acquisition costs paid to 58.com's
advertising union partners, and salaries and benefits primarily for
information quality control teams.
Gross Profit and Gross Margin
Gross profit was RMB11,700.0
million (US$1,704.7 million)
in 2018, an increase of 28.0% from RMB9,143.3 million during fiscal year
2017.
Gross margin was 89.1%, compared with 90.8% during fiscal year
2017.
Operating Expenses
Operating expenses were RMB9,313.4
million (US$1,357.0 million),
representing an increase of 26.8% from RMB7,346.8 million during fiscal year 2017.
Sales and marketing expenses in 2018 were RMB6,861.8 million (US$999.8 million), an increase of 31.6% from
RMB5,212.4 million during fiscal year
2017.
Within sales and marketing expenses, advertising expenses in
2018 were RMB3,309.6 million
(US$482.2 million), an increase of
58.6% from RMB2,087.1 million during
fiscal year 2017.
The increase was primarily due to mobile traffic acquisition
expenses, particularly for mobile applications such as 58.com,
Anjuke and Zhuan Zhuan. Advertising expenses associated with the
Company's core businesses including 58.com and Anjuke accounted for
the majority of the increase, while advertising expenses for Zhuan
Zhuan grew at a faster rate from a smaller base in 2017.
Non-advertising sales and marketing expenses in 2018 were
RMB3,552.3 million (US$517.6 million), an increase of 13.7% from
RMB3,125.3 million during fiscal year
2017.
Non-advertising sales and marketing expenses include salaries,
benefits, commissions and share-based compensation expenses 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 in non-advertising sales and marketing expenses was
mainly related to the increase in field sales and customer service
personnel commissions and salaries, marketing and promotional
expenses for 58.com, and relatively new platforms such as 58 Town
and Zhuan Zhuan.
Research and development expenses in 2018 were RMB1,702.7 million (US$248.1 million), an increase of 24.4% from
RMB1,368.4 million during fiscal year
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 2018 were RMB748.8 million (US$109.1
million), which was generally stable compared with
RMB766.0 million during fiscal year
2017.
Income from Operations
Income from operations was RMB2,386.7
million (US$347.7 million) in
2018, an increase of 32.9% from RMB1,796.5
million during fiscal year 2017.
Operating margin was 18.2% in 2018, compared with 17.8% during
fiscal year 2017.
Non-GAAP income from operations was RMB3,051.3 million (US$444.6 million) in 2018, an increase of 29.3%
from RMB2,359.2 million during fiscal
year 2017.
Non-GAAP operating margin was 23.2% in 2018, compared with 23.4%
during fiscal year 2017.
Other Income/(Expenses), net
Other income in 2018 were RMB42.1
million (US$6.1 million),
compared with other expenses of RMB260.5
million during fiscal year 2017.
Net investment income was RMB35.4
million. Within the net investment income was income of
RMB194.1 million from commercial bank
short-term investment products the Company purchased with its
surplus cash, partially offset by loss in change in fair value of
long-term investments of RMB139.3
million, which was primarily due to a decrease in share
price of a publicly traded company in which the Group holds a
minority stake.
Share of results of equity investees was a loss of RMB91.5 million which was primarily related to
equity pick-up from 58 Home, 58.com's non-consolidated
affiliate.
Net Income Attributable to
58.com Inc. Ordinary Shareholders
Net income attributable to 58.com Inc. ordinary shareholders was
RMB1,997.0 million (US$291.0 million) in 2018, an increase of 55.4%
from RMB1,285.1 million during fiscal
year 2017.
Net margin was 15.2% in 2018, compared with 12.8% during fiscal
year 2017.
Non-GAAP net income attributable to 58.com Inc. ordinary
shareholders was RMB2,723.1 million
(US$396.8 million) in 2018, an
increase of 51.7% from RMB1,795.0
million during fiscal year 2017.
Non-GAAP net margin was 20.7% in 2018, compared with 17.9%
during fiscal year 2017.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in 2018 were RMB13.54
(US$1.97) and RMB13.33 (US$1.94),
respectively, representing 53.6% and 53.2% from basic and diluted
earnings per ADS attributable to ordinary shareholders of
RMB8.82 and RMB8.70, respectively, during fiscal year
2017.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in 2018 were RMB18.47 (US$2.69)
and RMB18.17 (US$2.65), respectively, representing 49.9% and
49.4% increases from non-GAAP basic and diluted earnings per ADS
attributable to ordinary shareholders of RMB12.32 and RMB12.16, respectively, during fiscal year
2017.
Cash Flow
Net cash provided by operating activities was RMB3,799.6 million (US$553.6 million) in 2018, an increase of 36.7%
from net cash provided by operating activities of RMB2,779.9 million during fiscal year 2017.
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments
As of December 31, 2018, the
Company had cash and cash equivalents, restricted cash and
short-term investments of RMB7,787.1
million (US$1,134.6
million).
Shares Outstanding
As of December 31, 2018, the
Company had a total of 296,444,579 ordinary shares (including
250,858,415 Class A and 45,586,164 Class B ordinary shares) issued
and outstanding. One ADS represents two Class A ordinary
shares.
Recent Developments
On February 28, 2019, the Company
entered into a definitive agreement to sell certain percentage of
its equity stake in Che Hao Duo group ("Che Hao Duo", previously
known as Guazi), an unconsolidated minority investment, to a
third-party investor for a total purchase price of US$713.6 million. The completion of the
transaction is subject to certain closing conditions. Following the
closing of the transaction, the Company will continue to hold a
minority equity interest in Che Hao Duo.
Business Outlook
Based on the Company's current operations, total revenues for
the first quarter of 2019 are expected to be between RMB2.86 billion and RMB2.96 billion. This represents a year-over-year
increase of 16% to 20% 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.
ordinary shareholders, non-GAAP net margin and non-GAAP basic and
diluted earnings/(loss) per share and per ADS by excluding
share-based compensation expenses, amortization of intangible
assets resulting from business acquisitions, change in fair value
of long-term investments, share-based compensation expenses
included in share of results of equity investees, 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,
amortization of intangible assets resulting from business
acquisitions, change in fair value of long-term investments,
share-based compensation expenses included in share of results of
equity investees, 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
March 1, 2019 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:
|
+1-412-317-6061
|
U.S. Toll
Free:
|
+1-888-317-6003
|
Hong Kong Toll
Free:
|
800-963976
|
Hong Kong
|
852-58081995
|
China Toll
Free:
|
4001-206115
|
Passcode:
|
7221929
|
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 8, 2019. The dial-in details for the replay
are as follows:
International:
|
+1-412-317-0088
|
U.S. Toll
Free:
|
+1-877-344-7529
|
Passcode:
|
10129144
|
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 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. For more
information on 58.com, please visit http://www.58.com.
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,
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,524,982
|
|
2,387,478
|
|
347,867
|
Restricted
cash-current
|
93,350
|
|
812,000
|
|
118,312
|
Short-term
investments
|
3,437,707
|
|
4,587,610
|
|
668,436
|
Accounts receivable,
net
|
667,750
|
|
917,443
|
|
133,676
|
Prepayments and other
current assets
|
657,272
|
|
813,403
|
|
118,517
|
Total current
assets
|
6,381,061
|
|
9,517,934
|
|
1,386,808
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash-non-current
|
792,000
|
|
-
|
|
-
|
Property and
equipment, net
|
1,351,681
|
|
1,329,752
|
|
193,751
|
Intangible assets,
net
|
1,309,566
|
|
1,099,945
|
|
160,267
|
Land use rights,
net
|
3,688
|
|
3,610
|
|
526
|
Goodwill
|
15,864,655
|
|
15,874,220
|
|
2,312,947
|
Long-term
investments
|
1,808,601
|
|
3,365,906
|
|
490,429
|
Long-term prepayments
and other non-current assets
|
755,260
|
|
639,478
|
|
93,174
|
Total non-current
assets
|
21,885,451
|
|
22,312,911
|
|
3,251,094
|
Total
assets
|
28,266,512
|
|
31,830,845
|
|
4,637,902
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
75,000
|
|
812,794
|
|
118,428
|
Accounts
payable
|
624,300
|
|
887,558
|
|
129,321
|
Deferred
revenues
|
2,123,755
|
|
2,348,333
|
|
342,163
|
Customer
advances
|
1,365,437
|
|
1,465,169
|
|
213,482
|
Taxes
payable
|
186,491
|
|
250,231
|
|
36,460
|
Salary and welfare
payable
|
536,831
|
|
642,445
|
|
93,607
|
Accrued expenses and
other current liabilities
|
689,134
|
|
878,368
|
|
127,982
|
Total current
liabilities
|
5,600,948
|
|
7,284,898
|
|
1,061,443
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
loans
|
777,427
|
|
-
|
|
-
|
Deferred tax
liabilities
|
319,219
|
|
283,112
|
|
41,251
|
Other non-current
liabilities
|
17,376
|
|
1,675
|
|
244
|
Total non-current
liabilities
|
1,114,022
|
|
284,787
|
|
41,495
|
Total
liabilities
|
6,714,970
|
|
7,569,685
|
|
1,102,938
|
Mezzanine
equity:
|
|
|
|
|
|
Mezzanine classified
noncontrolling interests
|
1,736,405
|
|
1,944,397
|
|
283,308
|
Total mezzanine
equity
|
1,736,405
|
|
1,944,397
|
|
283,308
|
Shareholders'
equity:
|
|
|
|
|
|
58.com Inc.
shareholders' equity:
|
|
|
|
|
|
Ordinary shares
(US$0.00001 par value, 4,800,000,000 Class A and 200,000,000 Class
B shares authorized, 245,924,871 Class A and 48,040,260 Class B
shares issued and outstanding as of December 31, 2017 and
250,858,415 Class A and 45,586,164 Class B shares issued and
outstanding as of December 31, 2018, respectively)
|
18
|
|
19
|
|
3
|
Additional paid-in
capital
|
21,338,787
|
|
21,621,665
|
|
3,150,377
|
Retained
earnings/(accumulated deficit)
|
(1,689,683)
|
|
439,514
|
|
64,039
|
Accumulated other
comprehensive loss
|
(55,671)
|
|
(40,622)
|
|
(5,919)
|
Total 58.com Inc.
shareholders' equity
|
19,593,451
|
|
22,020,576
|
|
3,208,500
|
Noncontrolling
interests
|
221,686
|
|
296,187
|
|
43,156
|
Total
shareholders' equity
|
19,815,137
|
|
22,316,763
|
|
3,251,656
|
Total liabilities,
mezzanine equity and shareholders' equity
|
28,266,512
|
|
31,830,845
|
|
4,637,902
|
58.com Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except share, per share and per ADS data, unless otherwise
noted)
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Year Ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Membership
|
1,038,812
|
|
1,122,208
|
|
163,511
|
|
3,789,524
|
|
4,399,058
|
|
640,963
|
Online
marketing services
|
1,644,486
|
|
2,275,034
|
|
331,483
|
|
5,978,491
|
|
8,282,593
|
|
1,206,812
|
E-commerce services
|
17,450
|
|
25,954
|
|
3,782
|
|
73,941
|
|
72,596
|
|
10,578
|
Other
services
|
63,934
|
|
186,115
|
|
27,118
|
|
226,824
|
|
383,568
|
|
55,888
|
Total
revenues
|
2,764,682
|
|
3,609,311
|
|
525,894
|
|
10,068,780
|
|
13,137,815
|
|
1,914,241
|
Cost of
revenues(1)
|
(262,853)
|
|
(457,691)
|
|
(66,688)
|
|
(925,497)
|
|
(1,437,795)
|
|
(209,493)
|
Gross
profit
|
2,501,829
|
|
3,151,620
|
|
459,206
|
|
9,143,283
|
|
11,700,020
|
|
1,704,748
|
Operating
expenses(1):
|
|
|
|
|
|
|
|
|
|
|
|
Sales
and marketing expenses(2)
|
(1,338,587)
|
|
(1,719,902)
|
|
(250,598)
|
|
(5,212,360)
|
|
(6,861,845)
|
|
(999,803)
|
Research
and development expenses
|
(357,898)
|
|
(493,524)
|
|
(71,909)
|
|
(1,368,441)
|
|
(1,702,748)
|
|
(248,098)
|
General
and administrative expenses
|
(191,631)
|
|
(231,819)
|
|
(33,777)
|
|
(766,017)
|
|
(748,766)
|
|
(109,099)
|
Total operating
expenses
|
(1,888,116)
|
|
(2,445,245)
|
|
(356,284)
|
|
(7,346,818)
|
|
(9,313,359)
|
|
(1,357,000)
|
Income from
operations
|
613,713
|
|
706,375
|
|
102,922
|
|
1,796,465
|
|
2,386,661
|
|
347,748
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income/(expense), net
|
7,515
|
|
11,895
|
|
1,733
|
|
(1,623)
|
|
15,529
|
|
2,263
|
Investment income/(loss), net
|
27,538
|
|
(190,866)
|
|
(27,810)
|
|
342,241
|
|
35,360
|
|
5,152
|
Share of
results of equity investees
|
(198,333)
|
|
(15,802)
|
|
(2,302)
|
|
(687,400)
|
|
(91,497)
|
|
(13,332)
|
Foreign
currency exchange gain, net
|
296
|
|
701
|
|
102
|
|
793
|
|
597
|
|
87
|
Others,
net
|
39,157
|
|
29,554
|
|
4,306
|
|
85,455
|
|
82,113
|
|
11,964
|
Income before
tax
|
489,886
|
|
541,857
|
|
78,951
|
|
1,535,931
|
|
2,428,763
|
|
353,882
|
Income
tax expenses
|
(42,144)
|
|
(93,439)
|
|
(13,614)
|
|
(146,689)
|
|
(299,705)
|
|
(43,668)
|
Net
income
|
447,742
|
|
448,418
|
|
65,337
|
|
1,389,242
|
|
2,129,058
|
|
310,214
|
Net
loss/(income) attributable to noncontrolling
interests
|
(763)
|
|
(2,931)
|
|
(427)
|
|
(4,667)
|
|
139
|
|
20
|
Deemed
dividend to mezzanine classified noncontrolling
interests
|
(32,922)
|
|
(34,551)
|
|
(5,034)
|
|
(99,507)
|
|
(132,202)
|
|
(19,262)
|
Net income
attributable to 58.com Inc. ordinary
shareholders
|
414,057
|
|
410,936
|
|
59,876
|
|
1,285,068
|
|
1,996,995
|
|
290,972
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Year Ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net earnings per
ordinary share attributable to ordinary shareholders ‑
basic
|
1.41
|
|
1.39
|
|
0.20
|
|
4.41
|
|
6.77
|
|
0.99
|
Net earnings per
ordinary share attributable to ordinary shareholders ‑
diluted
|
1.39
|
|
1.38
|
|
0.20
|
|
4.35
|
|
6.66
|
|
0.97
|
Net earnings per ADS
attributable to ordinary shareholders – basic (1 ADS represents 2
Class A ordinary shares)
|
2.82
|
|
2.78
|
|
0.41
|
|
8.82
|
|
13.54
|
|
1.97
|
Net earnings per ADS
attributable to ordinary shareholders – diluted (1 ADS represents 2
Class A ordinary shares)
|
2.78
|
|
2.75
|
|
0.40
|
|
8.70
|
|
13.33
|
|
1.94
|
Weighted average
number of ordinary shares used in computing basic earnings per
share
|
293,323,477
|
|
|
|
|
|
291,475,725
|
|
|
|
|
|
|
|
295,558,994
|
|
295,558,994
|
|
|
|
294,902,518
|
|
294,902,518
|
Weighted average
number of ordinary shares used in computing diluted earnings per
share
|
297,680,844
|
|
|
|
|
|
295,304,995
|
|
|
|
|
|
|
|
298,705,512
|
|
298,705,512
|
|
|
|
299,711,258
|
|
299,711,258
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share‑based compensation
expenses were allocated in cost of revenues and operating expenses
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
1,139
|
|
2,041
|
|
297
|
|
3,278
|
|
6,354
|
|
926
|
Sales and marketing
expenses
|
17,940
|
|
27,158
|
|
3,957
|
|
69,926
|
|
90,919
|
|
13,247
|
Research and
development expenses
|
34,856
|
|
55,909
|
|
8,146
|
|
126,116
|
|
182,410
|
|
26,578
|
General and
administrative expenses
|
44,808
|
|
52,695
|
|
7,678
|
|
151,249
|
|
183,191
|
|
26,692
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of intangible assets resulting from business acquisitions were
allocated in operating expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
43,671
|
|
43,410
|
|
6,325
|
|
176,157
|
|
174,333
|
|
25,401
|
Research and
development expenses
|
11,677
|
|
11,997
|
|
1,748
|
|
46,708
|
|
47,028
|
|
6,852
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Breakdown of sales and
marketing expenses was as follows:
|
Advertising
expenses
|
511,931
|
|
796,505
|
|
116,054
|
|
2,087,066
|
|
3,309,560
|
|
482,218
|
Non-advertising sales
and marketing expenses
|
826,656
|
|
923,397
|
|
134,544
|
|
3,125,294
|
|
3,552,285
|
|
517,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from
operations
|
613,713
|
|
706,375
|
|
102,922
|
|
1,796,465
|
|
2,386,661
|
|
347,748
|
Share-based compensation
expenses[5]
|
93,463
|
|
132,777
|
|
19,346
|
|
339,837
|
|
443,312
|
|
64,592
|
Amortization of intangible assets resulting from
business acquisitions
|
55,348
|
|
55,407
|
|
8,073
|
|
222,865
|
|
221,361
|
|
32,253
|
Non-GAAP income
from operations
|
762,524
|
|
894,559
|
|
130,341
|
|
2,359,167
|
|
3,051,334
|
|
444,593
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to 58.com Inc. ordinary
shareholders
|
414,057
|
|
410,936
|
|
59,876
|
|
1,285,068
|
|
1,996,995
|
|
290,972
|
Share-based compensation expenses
|
93,463
|
|
132,777
|
|
19,346
|
|
339,837
|
|
443,312
|
|
64,592
|
Amortization of intangible assets resulting from
business acquisitions
|
55,348
|
|
55,407
|
|
8,073
|
|
222,865
|
|
221,361
|
|
32,253
|
Change
in fair value of long-term investments
|
-
|
|
206,700
|
|
30,117
|
|
-
|
|
139,250
|
|
20,289
|
Share-based compensation expenses included in share
of results of equity investees
|
(292)
|
|
14
|
|
2
|
|
2,094
|
|
15
|
|
2
|
Income
tax effects of GAAP to non-GAAP reconciling
items[6]
|
(13,555)
|
|
(49,519)
|
|
(7,216)
|
|
(54,872)
|
|
(77,849)
|
|
(11,343)
|
Non-GAAP net
income attributable to 58.com Inc. ordinary
shareholders
|
549,021
|
|
756,315
|
|
110,198
|
|
1,794,992
|
|
2,723,084
|
|
396,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Year Ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
GAAP operating
margin
|
22.2%
|
|
19.6%
|
|
19.6%
|
|
17.8%
|
|
18.2%
|
|
18.2%
|
Share-based compensation expenses
|
3.4%
|
|
3.7%
|
|
3.7%
|
|
3.4%
|
|
3.4%
|
|
3.4%
|
Amortization of intangible assets resulting from
business acquisitions
|
2.0%
|
|
1.5%
|
|
1.5%
|
|
2.2%
|
|
1.6%
|
|
1.6%
|
Non-GAAP operating
margin
|
27.6%
|
|
24.8%
|
|
24.8%
|
|
23.4%
|
|
23.2%
|
|
23.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
margin
|
15.0%
|
|
11.4%
|
|
11.4%
|
|
12.8%
|
|
15.2%
|
|
15.2%
|
Share-based compensation expenses
|
3.4%
|
|
3.7%
|
|
3.7%
|
|
3.4%
|
|
3.4%
|
|
3.4%
|
Amortization of intangible assets resulting from
business acquisitions
|
2.0%
|
|
1.5%
|
|
1.5%
|
|
2.2%
|
|
1.6%
|
|
1.6%
|
Change
in fair value of long-term investments
|
-
|
|
5.7%
|
|
5.7%
|
|
-
|
|
1.0%
|
|
1.0%
|
Share-based compensation expenses included in share
of results of equity investees
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Income
tax effects of GAAP to non-GAAP reconciling items
|
(0.5)%
|
|
(1.3)%
|
|
(1.3)%
|
|
(0.5)%
|
|
(0.5)%
|
|
(0.5)%
|
Non-GAAP net
margin
|
19.9%
|
|
21.0%
|
|
21.0%
|
|
17.9%
|
|
20.7%
|
|
20.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares used in computing non-GAAP basic
earnings per share
|
293,323,477
|
|
295,558,994
|
|
295,558,994
|
|
291,475,725
|
|
294,902,518
|
|
294,902,518
|
Weighted
average number of ordinary shares used in computing non-GAAP
diluted earnings per share
|
297,680,844
|
|
298,705,512
|
|
298,705,512
|
|
295,304,995
|
|
299,711,258
|
|
299,711,258
|
Weighted
average number of ADS used in computing non-GAAP basic earnings per
ADS
|
146,661,739
|
|
147,779,497
|
|
147,779,497
|
|
145,737,863
|
|
147,451,259
|
|
147,451,259
|
Weighted
average number of ADS used in computing non-GAAP diluted earnings
per ADS
|
148,840,422
|
|
149,352,756
|
|
149,352,756
|
|
147,652,498
|
|
149,855,629
|
|
149,855,629
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net earnings per ordinary share attributable to ordinary
shareholders ‑ basic
|
1.87
|
|
2.56
|
|
0.37
|
|
6.16
|
|
9.23
|
|
1.35
|
Non-GAAP
net earnings per ordinary share attributable to ordinary
shareholders ‑ diluted
|
1.84
|
|
2.53
|
|
0.37
|
|
6.08
|
|
9.09
|
|
1.32
|
Non-GAAP
net earnings per ADS attributable to ordinary shareholders ‑
basic
|
3.74
|
|
5.12
|
|
0.75
|
|
12.32
|
|
18.47
|
|
2.69
|
Non-GAAP
net earnings per ADS attributable to ordinary shareholders ‑
diluted
|
3.69
|
|
5.06
|
|
0.74
|
|
12.16
|
|
18.17
|
|
2.65
|
[1] This press release contains translations of certain
Renminbi (RMB) amounts into U.S. dollars (US$) solely for the
convenience of the readers. Unless otherwise specified, all
translations of Renminbi amounts into US$ amounts in this press
release are made at RMB6.8632 to
US$1.00, which was the U.S. dollars
middle rate announced by the PRC State Administration of Foreign
Exchange on December 28, 2018. The
percentages stated in this press release are calculated based on
the Renminbi amounts. On February 28,
2019, such exchange rate was RMB6.6901 to US$1.00.
[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. ordinary
shareholders is defined as net income attributable to 58.com Inc.
ordinary shareholders excluding share-based compensation expenses,
amortization of intangible assets resulting from business
acquisitions, change in fair value of long-term investments,
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 is defined as
non-GAAP net income attributable to 58.com Inc. ordinary
shareholders 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 RMB5.0 million and
RMB19.6 million for the three months
and the year ended December 31, 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 and change in fair value of long-term investments .
Other GAAP to non-GAAP reconciling items have no income tax
effect.
View original
content:http://www.prnewswire.com/news-releases/58com-reports-fourth-quarter-and-fiscal-year-2018-unaudited-financial-results-300804288.html
SOURCE 58.com Inc