EX-99.1 2 a20-31900_1ex99d1.htm EX-99.1

Exhibit 99.1

 

SINA Reports Second Quarter 2020 Unaudited Financial Results

 

BEIJING, China—September 28, 2020—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 second quarter ended June 30, 2020.

 

Second Quarter 2020 Highlights

 

·          Net revenues decreased 5% year-over-year to $507.7 million. Non-GAAP net revenues decreased 5% year-over-year to $505.1 million, representing a decrease of 1% on a constant currency basis [1].

 

·          Advertising revenues decreased 10% year-over-year to $392.2 million.

 

·          Non-advertising revenues increased 16% year-over-year to $115.5 million. Non-GAAP non-advertising revenues increased 17% year-over-year to $112.9 million.

 

·          Net loss attributable to SINA was $25.4 million, or $0.42 for diluted net loss per share attributable to SINA’s ordinary shareholders. Non-GAAP net income attributable to SINA was $34.4 million, or $0.54 for non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders.

 

[1] On a constant currency (non-GAAP) basis, we assume that the exchange rate in the second quarter of 2020 had been the same as it was in the second quarter of 2019, or RMB6.81=US$1.00.

 

Second Quarter 2020 Financial Results

 

For the second quarter of 2020, SINA reported net revenues of $507.7 million, a decrease of 5% compared to $533.1 million for the same period last year. Non-GAAP net revenues for the second quarter of 2020 were $505.1 million, a decrease of 5% compared to $530.4 million for the same period last year.

 

Advertising revenues for the second quarter of 2020 were $392.2 million, a decrease of 10% compared to $433.6 million for the same period last year, primarily due to continued weak advertising demand from certain industries in the aftermath of the domestic coronavirus outbreak, as well as negative currency translation impact.

 

Non-advertising revenues for the second quarter of 2020 were $115.5 million, an increase of 16% compared to $99.4 million for the same period last year. Non-GAAP non-advertising revenues for the second quarter of 2020 were $112.9 million, an increase of 17% compared to $96.8 million for the same period last year. The year-over-year growth in non-advertising revenues was mainly attributable to increased revenues generated from SINA Fintech businesses, due to growth in loan facilitation volume as well as gross reporting of certain Fintech revenues as required by ASU 2016-13, “Financial InstrumentsCredit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”.

 


 

Gross margin for the second quarter of 2020 was 74%, compared to 77% for the same period last year. Advertising gross margin for the second quarter of 2020 was 82%, compared to 80% for the same period last year, mainly due to the decrease of cost of revenues as a result of the exemption and refund of cultural business construction fee during the period. Non-advertising gross margin for the second quarter of 2020 was 45%, compared to 61% for the same period last year, primarily attributable to the adoption of the current expected credit losses methodology in estimating allowances for credit losses for Fintech businesses and reporting revenue and cost on a gross basis for certain Fintech businesses in accordance with ASU 2016-13.

 

Operating expenses for the second quarter of 2020 totaled $296.1 million, compared to $282.7 million for the same period last year. Non-GAAP operating expenses for the second quarter of 2020 totaled $270.0 million, compared to $256.0 million for the same period last year.

 

Income from operations for the second quarter of 2020 was $78.8 million, compared to $126.0 million for the same period last year. Operating margin was 16%, compared to 24% for the same period last year. Non-GAAP income from operations for the second quarter of 2020 was $104.9 million, compared to $152.8 million for the same period last year. Non-GAAP operating margin was 21%, compared to 29% for the same period last year.

 

Non-operating loss for the second quarter of 2020 was $20.5 million, compared to a non-operating income of $19.7 million for the same period last year. Non-operating loss for the second quarter of 2020 mainly included (i) a $97.4 million impairment on the Company’s investments, which is excluded under non-GAAP measures; (ii) a $61.9 million net gain from fair value changes of investments, which is excluded under non-GAAP measures; (iii) an $18.4 million net interest and other income; and (iv) a $2.3 million net loss from equity method investments, which is reported one quarter in arrears. Non-operating income for the second quarter of 2019 included (i) a $15.7 million net interest and other income; (ii) a $4.3 million net earning from equity method investments, which is reported one quarter in arrears; and (iii) a $0.3 million net loss on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measures.

 

Income tax expenses for the second quarter of 2020 were $36.4 million, compared to $46.7 million for the same period last year, largely attributable to reduced profitability compared with the same period last year.

 

Net loss attributable to SINA’s ordinary shareholders for the second quarter of 2020 was $25.4 million, compared to a net income attributable to SINA’s ordinary shareholders of $51.4 million. Diluted net loss per share attributable to SINA’s ordinary shareholders for the second quarter of 2020 was $0.42, compared to a diluted net income per share attributable to SINA’s ordinary shareholders of $0.73 for the same period last year. Non-GAAP net income attributable to SINA’s ordinary shareholders for the second quarter of 2020 was $34.4 million, compared to $54.0 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders for the second quarter of 2020 was $0.54, compared to $0.76 for the same period last year.

 


 

As of June 30, 2020, SINA’s cash, cash equivalents and short-term investments totaled $2.6 billion, compared to $2.9 billion as of December 31, 2019. For the second quarter of 2020, net cash provided by operating activities was $115.3 million, capital expenditures totaled $10.0 million, and depreciation and amortization expenses amounted to $11.6 million.

 

Other Development

 

As of June 30, 2020, the Company has repurchased approximately 9.1 million shares at an average cost of $32.33 under the 2020 New Program. There were 59,754,024 ordinary shares outstanding as of June 30, 2020.

 

Non-GAAP Measures

 

This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP advertising 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 (loss) attributable to SINA’s ordinary shareholders and non-GAAP diluted net income (loss) per share. 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 (net of share of amortization of intangibles not on their books), gain (loss) on sale of investment, gain on deemed disposal, fair value changes and impairment on investment, adjustment for non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests, amortization of convertible debt and senior notes issuance cost, and income tax effects of above non-GAAP to GAAP reconciling items. 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.”

 

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 its 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 Fintech 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 adverse impacts on our financial results from equity pick-up, fair value changes 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 2019 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

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2020

 

2019

 

2020

 

2020

 

2019

 

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

392,212

 

$

433,633

 

$

309,995

 

$

702,207

 

$

821,658

 

Non-advertising

 

115,532

 

99,421

 

125,056

 

240,588

 

186,535

 

 

 

507,744

 

533,054

 

435,051

 

942,795

 

1,008,193

 

Cost of revenues (1):

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

68,956

 

85,589

 

76,855

 

145,811

 

169,968

 

Non-advertising

 

63,917

 

38,722

 

69,534

 

133,451

 

69,866

 

 

 

132,873

 

124,311

 

146,389

 

279,262

 

239,834

 

Gross profit

 

374,871

 

408,743

 

288,662

 

663,533

 

768,359

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing (1)

 

148,941

 

147,721

 

127,156

 

276,097

 

293,199

 

Product development (1)

 

93,602

 

91,981

 

91,977

 

185,579

 

186,030

 

General and administrative (1)

 

53,567

 

43,016

 

38,726

 

92,293

 

76,176

 

 

 

296,110

 

282,718

 

257,859

 

553,969

 

555,405

 

Income from operations

 

78,761

 

126,025

 

30,803

 

109,564

 

212,954

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating income (loss) :

 

 

 

 

 

 

 

 

 

 

 

Earning (loss) from equity method investments, net

 

(2,324

)

4,316

 

15,048

 

12,724

 

(11,937

)

Gain (loss) on sale of investments, fair value changes and impairment on investments, net

 

(36,609

)

(315

)

106,444

 

69,835

 

80,491

 

Interest and other income, net

 

18,414

 

15,744

 

5,189

 

23,603

 

28,846

 

 

 

(20,519

)

19,745

 

126,681

 

106,162

 

97,400

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

58,242

 

145,770

 

157,484

 

215,726

 

310,354

 

Income tax expenses

 

(36,409

)

(46,720

)

(25,787

)

(62,196

)

(111,955

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

21,833

 

99,050

 

131,697

 

153,530

 

198,399

 

Less: Net income attributable to non-controlling interests

 

47,199

 

47,626

 

49,257

 

96,456

 

113,892

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to SINA’s ordinary shareholders

 

$

(25,366

)

$

51,424

 

$

82,440

 

$

57,074

 

$

84,507

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$

(0.40

)

$

0.74

 

$

1.21

 

$

0.87

 

$

1.21

 

Diluted net income (loss) per share (2)

 

$

(0.42

)

$

0.73

 

$

1.21

 

$

0.87

 

$

1.20

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing basic net income (loss) per share

 

62,785

 

69,709

 

68,116

 

65,451

 

69,586

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing diluted net income (loss) per share

 

62,785

 

69,944

 

68,207

 

65,536

 

69,852

 

 


(1) Stock-based compensation in each category:

 

Cost of revenues

 

$

2,603

 

$

2,620

 

$

2,745

 

$

5,348

 

$

5,156

 

Sales and marketing

 

5,230

 

6,031

 

5,292

 

10,522

 

11,651

 

Product development

 

9,510

 

8,415

 

8,073

 

17,583

 

18,069

 

General and administrative

 

10,313

 

11,200

 

11,749

 

22,062

 

22,178

 

 

(2) Net income (loss) attributable to SINA’s ordinary shareholders is adjusted for diluted shares issued by our subsidiary and equity method investments.

 

1


 

SINA CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2020

 

2019

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

1,772,733

 

$

1,951,886

 

Short-term investments

 

858,342

 

951,953

 

Restricted cash

 

151,308

 

184,143

 

Accounts receivable, net

 

573,598

 

601,876

 

Financing receivables, net

 

114,721

 

226,098

 

Prepaid expenses and other current assets

 

818,501

 

695,888

 

Subtotal

 

4,289,203

 

4,611,844

 

 

 

 

 

 

 

Property and equipment, net

 

252,361

 

253,179

 

Operating lease right-of-use assets, net

 

18,888

 

24,872

 

Goodwill and intangible assets, net

 

300,722

 

307,300

 

Long-term investments

 

2,300,358

 

2,200,548

 

Other assets

 

68,088

 

71,085

 

Total assets

 

$

7,229,620

 

$

7,468,828

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

155,648

 

$

170,647

 

Amount due to customers

 

106,908

 

121,558

 

Accrued expenses and other current liabilities

 

906,480

 

886,713

 

Short-term bank loan

 

63,847

 

81,649

 

Deferred revenues

 

239,298

 

143,073

 

Short-term operating lease liabilities

 

12,134

 

12,151

 

Short-term funding debts

 

26,184

 

173,821

 

Income taxes payable

 

106,378

 

129,591

 

Subtotal

 

1,616,877

 

1,719,203

 

 

 

 

 

 

 

Convertible debt

 

890,337

 

888,266

 

Senior notes

 

794,653

 

793,985

 

Long-term funding debts

 

81,523

 

22,260

 

Long-term deferred revenues

 

28,000

 

33,217

 

Long-term operating lease liabilities

 

6,740

 

13,081

 

Other long-term liabilities

 

115,317

 

100,903

 

Total liabilities

 

3,533,447

 

3,570,915

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

SINA shareholders’ equity (1)

 

2,349,824

 

2,638,481

 

Non-controlling interests

 

1,346,349

 

1,259,432

 

Total shareholders’ equity

 

3,696,173

 

3,897,913

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

7,229,620

 

$

7,468,828

 

 


(1) Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Measurement of Credit Loss on Financial Instruments”. ASU 2016-13 replaces the current incurred loss impairment methodology with the expected credit loss impairment model (“CECL”), which requires consideration of a broader range of reasonable and supportable information to estimate expected credit losses over the life of the instrument instead of only when losses are incurred. This standard applies to financial assets measured at amortized cost basis and off-balance-sheet credit exposures not accounted for as insurance. The cumulative impact arising from the adoption was a debit to retained earnings as of January 1, 2020 of $62.1 million.

 

2


 

SINA CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(U.S. Dollars in thousands)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2020

 

2019

 

2020

 

2020

 

2019

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

Weibo:

 

 

 

 

 

 

 

 

 

 

 

Advertising and marketing

 

$

340,584

 

$

370,660

 

$

275,422

 

$

616,006

 

$

711,801

 

Weibo VAS

 

46,809

 

61,176

 

47,967

 

94,776

 

119,212

 

Subtotal

 

387,393

 

431,836

 

323,389

 

710,782

 

831,013

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Weibo:

 

 

 

 

 

 

 

 

 

 

 

Media Advertising

 

53,326

 

62,973

 

36,679

 

90,005

 

109,869

 

Fintech (1)

 

71,646

 

43,740

 

81,647

 

153,293

 

78,656

 

Subtotal

 

124,972

 

106,713

 

118,326

 

243,298

 

188,525

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination

 

(4,621

)

(5,495

)

(6,664

)

(11,285

)

(11,345

)

 

 

$

507,744

 

$

533,054

 

$

435,051

 

$

942,795

 

$

1,008,193

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

Weibo

 

$

63,584

 

$

81,972

 

$

74,110

 

$

137,694

 

$

164,789

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Weibo

 

 

 

 

 

 

 

 

 

 

 

Media Advertising

 

20,011

 

25,011

 

17,642

 

37,653

 

46,671

 

Fintech (1)

 

52,201

 

22,823

 

59,195

 

111,396

 

39,707

 

Subtotal

 

72,212

 

47,834

 

76,837

 

149,049

 

86,378

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination

 

(2,923

)

(5,495

)

(4,558

)

(7,481

)

(11,333

)

 

 

$

132,873

 

$

124,311

 

$

146,389

 

$

279,262

 

$

239,834

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

Weibo

 

84

%

81

%

77

%

81

%

80

%

Non-Weibo

 

42

%

55

%

35

%

39

%

54

%

Total gross margin

 

74

%

77

%

66

%

70

%

76

%

 


(1) Fintech includes Fintech services and SINA Media other businesses. For the second quarter of 2020, SINA Media other revenue was $4.0 million, compared to $4.9 million for the same period last year.

 

3


 

SINA CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(U.S. Dollars in thousands, except per share data)

 

 

 

Three months ended

 

 

 

June 30, 2020

 

June 30, 2019

 

March 31, 2020

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

Non-GAAP

 

 

 

Actual

 

Adjustments

 

 

Results

 

Actual

 

Adjustments

 

 

Results

 

Actual

 

Adjustments

 

 

Results

 

Advertising revenues

 

$

392,212

 

 

 

 

$

392,212

 

$

433,633

 

 

 

 

$

433,633

 

$

309,995

 

 

 

 

$

309,995

 

Non-advertising revenues

 

115,532

 

(2,609

)

(a)

112,923

 

99,421

 

(2,609

)

(a)

96,812

 

125,056

 

(2,609

)

(a)

122,447

 

Net revenues

 

$

507,744

 

$

(2,609

)

 

$

505,135

 

$

533,054

 

$

(2,609

)

 

$

530,445

 

$

435,051

 

$

(2,609

)

 

$

432,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

 

 

2,603

 

(b)

 

 

 

 

2,620

 

(b)

 

 

 

 

2,745

 

(b)

 

 

Gross profit

 

$

374,871

 

$

(6

)

 

$

374,865

 

$

408,743

 

$

11

 

 

$

408,754

 

$

288,662

 

$

136

 

 

$

288,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25,053

)

(b)

 

 

 

 

(25,646

)

(b)

 

 

 

 

(25,114

)

(b)

 

 

 

 

 

 

(1,066

)

(c)

 

 

 

 

(1,107

)

(c)

 

 

 

 

(1,080

)

(c)

 

 

Operating expenses

 

$

296,110

 

$

(26,119

)

 

$

269,991

 

$

282,718

 

$

(26,753

)

 

$

255,965

 

$

257,859

 

$

(26,194

)

 

$

231,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

 

 

27,656

 

(b)

 

 

 

 

28,266

 

(b)

 

 

 

 

27,859

 

(b)

 

 

 

 

 

 

1,066

 

(c)

 

 

 

 

1,107

 

(c)

 

 

 

 

1,080

 

(c)

 

 

Income from operations

 

$

78,761

 

$

26,113

 

 

$

104,874

 

$

126,025

 

$

26,764

 

 

$

152,789

 

$

30,803

 

$

26,330

 

 

$

57,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

 

 

27,656

 

(b)

 

 

 

 

28,266

 

(b)

 

 

 

 

27,859

 

(b)

 

 

 

 

 

 

1,066

 

(c)

 

 

 

 

1,107

 

(c)

 

 

 

 

1,080

 

(c)

 

 

 

 

 

 

7,279

 

(d)

 

 

 

 

(4,881

)

(d)

 

 

 

 

(5,873

)

(d)

 

 

 

 

 

 

36,609

 

(e)

 

 

 

 

315

 

(e)

 

 

 

 

(106,444

)

(e)

 

 

 

 

 

 

(18,457

)

(f)

 

 

 

 

(39,281

)

(f)

 

 

 

 

10,259

 

(f)

 

 

 

 

 

 

1,369

 

(g)

 

 

 

 

1,037

 

(g)

 

 

 

 

1,369

 

(g)

 

 

 

 

 

 

6,868

 

(h)

 

 

 

 

18,605

 

(h)

 

 

 

 

8,955

 

(h)

 

 

Net income (loss) attributable to SINA’s ordinary shareholders

 

$

(25,366

)

$

59,781

 

 

$

34,415

 

$

51,424

 

$

2,559

 

 

$

53,983

 

$

82,440

 

$

(65,404

)

 

$

17,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share *

 

$

(0.42

)

 

 

 

$

0.54

 

$

0.73

 

 

 

 

$

0.76

 

$

1.21

 

 

 

 

$

0.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing diluted net income (loss) per share

 

62,785

 

79

 

(i)

62,864

 

69,944

 

 

 

69,944

 

68,207

 

 

 

68,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

82

%

1

%

 

83

%

80

%

1

%

 

81

%

75

%

1

%

 

76

%

Gross margin - non-advertising

 

45

%

-2

%

 

43

%

61

%

-1

%

 

60

%

44

%

-1

%

 

43

%

Operating margin

 

16

%

5

%

 

21

%

24

%

5

%

 

29

%

7

%

6

%

 

13

%

 


 

 

 

Six months ended

 

 

 

June 30, 2020

 

June 30, 2019

 

 

 

Actual

 

Adjustments

 

 

Non-GAAP 
Results

 

Actual

 

Adjustments

 

 

Non-GAAP 
Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising revenues

 

$

702,207

 

 

 

 

$

702,207

 

$

821,658

 

 

 

 

$

821,658

 

Non-advertising revenues

 

240,588

 

(5,218

)

(a)

235,370

 

186,535

 

(5,218

)

(a)

181,317

 

Net revenues

 

$

942,795

 

$

(5,218

)

 

$

937,577

 

$

1,008,193

 

$

(5,218

)

 

$

1,002,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)

(a)

 

 

 

 

(5,218

)

(a)

 

 

 

 

 

 

5,348

 

(b)

 

 

 

 

5,156

 

(b)

 

 

Gross profit

 

$

663,533

 

$

130

 

 

$

663,663

 

$

768,359

 

$

(62

)

 

$

768,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(50,167

)

(b)

 

 

 

 

(51,898

)

(b)

 

 

 

 

 

 

(2,146

)

(c)

 

 

 

 

(2,231

)

(c)

 

 

Operating expenses

 

$

553,969

 

$

(52,313

)

 

$

501,656

 

$

555,405

 

$

(54,129

)

 

$

501,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)

(a)

 

 

 

 

(5,218

)

(a)

 

 

 

 

 

 

55,515

 

(b)

 

 

 

 

57,054

 

(b)

 

 

 

 

 

 

2,146

 

(c)

 

 

 

 

2,231

 

(c)

 

 

Income from operations

 

$

109,564

 

$

52,443

 

 

$

162,007

 

$

212,954

 

$

54,067

 

 

$

267,021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)

(a)

 

 

 

 

(5,218

)

(a)

 

 

 

 

 

 

55,515

 

(b)

 

 

 

 

57,054

 

(b)

 

 

 

 

 

 

2,146

 

(c)

 

 

 

 

2,231

 

(c)

 

 

 

 

 

 

1,406

 

(d)

 

 

 

 

10,426

 

(d)

 

 

 

 

 

 

(69,835

)

(e)

 

 

 

 

(80,491

)

(e)

 

 

 

 

 

 

(8,198

)

(f)

 

 

 

 

(46,717

)

(f)

 

 

 

 

 

 

2,738

 

(g)

 

 

 

 

2,072

 

(g)

 

 

 

 

 

 

15,823

 

(h)

 

 

 

 

58,972

 

(h)

 

 

Net income attributable to SINA’s ordinary shareholders

 

$

57,074

 

$

(5,623

)

 

$

51,451

 

$

84,507

 

$

(1,671

)

 

$

82,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share *

 

$

0.87

 

 

 

 

$

0.78

 

$

1.20

 

 

 

 

$

1.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing diluted net income per share

 

65,536

 

 

 

65,536

 

69,852

 

 

 

69,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

79

%

1

%

 

80

%

79

%

1

%

 

80

%

Gross margin - non-advertising

 

45

%

-2

%

 

43

%

63

%

-2

%

 

61

%

Operating margin

 

12

%

5

%

 

17

%

21

%

6

%

 

27

%

 


(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 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 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 and senior notes issuance cost.

(h)         To exclude the provision for income tax related to item (c) and (e). Other non-GAAP to GAAP reconciling items have no income tax effect.**

(i)            To adjust the number of shares for dilution resulted from unvested equity granted.

 

*               Net income (loss) attributable to SINA’s ordinary shareholders is adjusted for diluted shares issued by our subsidiary and equity method investments.

 

**          The Company considered the tax implication arising from the reconciliation items, and those items recorded in entities in tax free jurisdictions were without relevant 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

 

 

 

June 30, 2020

 

June 30, 2019

 

March 31, 2020

 

 

 

Actual

 

Adjustments

 

Non-GAAP 
Results

 

Actual

 

Adjustments

 

Non-GAAP 
Results

 

Actual

 

Adjustments

 

Non-GAAP 
Results

 

To exclude stock-based compensation

 

 

 

$

310

 

 

 

 

 

$

178

 

 

 

 

 

$

484

 

 

 

To exclude amortization of intangible assets resulting from business acquisitions

 

 

 

1,026

 

 

 

 

 

1,048

 

 

 

 

 

1,045

 

 

 

To exclude loss on disposal and impairment on investments, net

 

 

 

 

 

 

 

 

90

 

 

 

 

 

1,009

 

 

 

To exclude (gain) loss resulting from the fair value changes in investments, net

 

 

 

6,789

 

 

 

 

 

(5,525

)

 

 

 

 

(7,735

)

 

 

To exclude tax impacts related to amortization of intangible assets

 

 

 

(241

)

 

 

 

 

(244

)

 

 

 

 

(244

)

 

 

Earning (loss) from equity method investments, net

 

$

(2,929

)

$

7,884

 

$

4,955

 

$

3,888

 

$

(4,453

)

$

(565

)

$

14,616

 

$

(5,441

)

$

9,175

 

Share of amortization of equity investments’ intangibles not on their books

 

601

 

(601

)

 

365

 

(365

)

 

371

 

(371

)

 

Share of tax impacts related to amortization of equity investments’ intangibles not on their books

 

4

 

(4

)

 

63

 

(63

)

 

61

 

(61

)

 

 

 

$

(2,324

)

$

7,279

 

$

4,955

 

$

4,316

 

$

(4,881

)

$

(565

)

$

15,048

 

$

(5,873

)

$

9,175

 

 

 

 

Six months ended

 

 

 

June 30, 2020

 

June 30, 2019

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Non-GAAP

 

 

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To exclude stock-based compensation

 

 

 

$

 794

 

 

 

 

 

$

 465

 

 

 

To exclude amortization of intangible assets resulting from business acquisitions

 

 

 

2,071

 

 

 

 

 

2,110

 

 

 

To exclude loss on disposal and impairment on investments, net

 

 

 

1,009

 

 

 

 

 

6,803

 

 

 

To exclude (gain) loss resulting from the fair value changes in investments, net

 

 

 

(946

)

 

 

 

 

2,390

 

 

 

To exclude tax impacts related to amortization of intangible assets

 

 

 

(485

)

 

 

 

 

(492

)

 

 

Earning (loss) from equity method investments, net

 

$

11,687

 

$

2,443

 

$

14,130

 

$

(12,787

)

$

11,276

 

$

(1,511

)

Share of amortization of equity investments’ intangibles not on their books

 

972

 

(972

)

 

723

 

(723

)

 

Share of tax impacts related to amortization of equity investments’ intangibles not on their books

 

65

 

(65

)

 

127

 

(127

)

 

 

 

$

12,724

 

$

1,406

 

$

14,130

 

$

(11,937

)

$

10,426

 

$

(1,511

)

 

*** Earning (loss) from equity method investments is recorded one quarter in arrears.