EX-99.1 2 a17-20025_1ex99d1.htm EX-99.1

Exhibit 99.1

 

SINA Reports Second Quarter 2017 Financial Results

 

BEIJING, China—August 9, 2017—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, 2017.

 

Second Quarter 2017 Highlights

 

·          Net revenues increased 47% year over year to $358.9 million. Non-GAAP net revenues increased 48% year over year to $356.3 million.

 

·          Advertising revenues increased 44% year over year to $295.2 million.

 

·          Non-advertising revenues increased 64% year over year to $63.8 million. Non-GAAP non-advertising revenues increased 68% year over year to $61.2 million.

 

·          Income from operations increased 355% year over year to $94.7 million. Non-GAAP income from operations increased 235% year over year to $115.5 million. Non-GAAP operating margin was 32%, up from 14% for the same period last year.

 

·          Net income attributable to SINA was $23.4 million, or $0.31 diluted net income per share attributable to SINA. Non-GAAP net income attributable to SINA was $52.7 million, or $0.70 non-GAAP diluted net income per share attributable to SINA.

 

·          Weibo’s monthly active users (“MAUs”) increased from 282 million in June 2016 to 361 million in June 2017, an increase of 28% year over year. Weibo’s mobile MAUs represented 92% of Weibo’s MAUs.

 

·          Weibo’s average daily active users (“DAUs”) had a net addition of approximately 33 million users year over year and reached 159 million in June 2017.

 

“We are delighted with the financial results for the second quarter of 2017.” said Charles Chao, Chairman and CEO of SINA. “Weibo has further strengthened its social platform network effect and delivered solid user base expansion, accelerated revenue growth and continuing operational leverage.” said Mr. Chao. “For SINA business, we have continued to witness healthy growth of mobile traffic from SINA media properties and improved mobile monetization. We are also pleased to see the progression we made in our online finance business.” Mr. Chao concluded.

 

Second Quarter 2017 Financial Results

 

For the second quarter of 2017, SINA reported net revenues of $358.9 million, compared to $244.0 million for the same period last year. Non-GAAP net revenues for the second quarter of 2017 totaled $356.3 million, compared to $241.4 million for the same period last year.

 

Online advertising revenues for the second quarter of 2017 were $295.2 million, compared to $205.0 million for the same period last year. The year-over-year growth in online advertising revenues was mainly resulted from an increase of $91.2 million, or 72% growth in Weibo advertising and marketing revenues.

 



 

Non-advertising revenues for the second quarter of 2017 were $63.8 million. Non-GAAP non-advertising revenues for the second quarter of 2017 were $61.2 million, compared to $36.3 million for the same period last year. The year-over-year growth in non-advertising revenues was mainly resulted from the increase of Sina online finance business and Weibo membership fees.

 

Gross margin for the second quarter of 2017 was 74%, compared to 64% for the same period last year. Advertising gross margin for the second quarter of 2017 was 76%, compared to 64% for the same period last year. The increase in advertising gross margin was primarily due to stronger advertising demand from Weibo advertisers, further operating leverage of Weibo business due to its relatively fixed cost nature and the streamline of costs structure for portal business. Non-advertising gross margin for the second quarter of 2017 was 68%, compared to 59% for the same period last year. The increase in non-advertising margin was primarily due to increase in revenues contributed by higher margin business, such as Weibo’s membership services, and margin improvement of portal’s non-advertising business.

 

Operating expenses for the second quarter of 2017 totaled $171.9 million, compared to $134.2 million for the same period last year. The increase in operating expenses was primarily due to an increase in sales and marketing expenses. Non-GAAP operating expenses for the second quarter of 2017 totaled $150.6 million, compared to $119.7 million for the same period last year.

 

Income from operations for the second quarter of 2017 was $94.7 million, compared to $20.8 million for the same period last year. Operating margin was 26%, up from 9% for the same period last year. Non-GAAP income from operations for the second quarter of 2017 was $115.5 million, compared to $34.5 million for the same period last year. Non-GAAP operating margin was 32%, up from 14% for the same period last year.

 

Non-operating loss for the second quarter of 2017 was $13.4 million, compared to a non-operating income of $35.0 million for the same period last year. Non-operating loss for the second quarter of 2017 mainly included: (i) a $101.0 million gains from disposing of certain marketable securities and other gains, which are excluded under non-GAAP measure; (ii) a $113.1 million of investment impairment write down of the Company’s investment in Leju Holding Limited (“Leju”), which is excluded under non-GAAP measure; and (iii) a $5.3 million loss pick-up from equity-method investments, which are accounted for under the equity-method and reported one quarter in arrears, mainly resulting from the loss pick-up from the Company’s investment in Leju. Non-operating income for the second quarter of 2016 included: (i) a $34.9 million net gain on sale of and impairment on investments, which is excluded under non-GAAP measure; and (ii) a $6.2 million loss from equity method investment in a number of our equity investees which was reported one-quarter in arrears.

 

Net income attributable to SINA for the second quarter of 2017 was $23.4 million, compared to $43.3 million for the same period last year. Diluted net income per share attributable to SINA for the second quarter of 2017 was $0.31, compared to $0.59 for the same period last year. Non-GAAP net income attributable to SINA for the second quarter of 2017 was $52.7 million, compared to $19.9 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA for the second quarter of 2017 was $0.70, compared to $0.27 for the same period last year.

 



 

As of June 30, 2017, SINA’s cash, cash equivalents and short-term investments totaled $2.1 billion, compared to $1.8 billion as of December 31, 2016. For the second quarter of 2017, net cash provided by operating activities was $238.3 million, capital expenditures totaled $2.8 million, and depreciation and amortization expenses amounted to $8.1 million.

 

In-Kind Distribution

 

On May 26, 2017, the Company announced its planned distribution of shares of Weibo to SINA shareholders as of the record date of June 7, 2017 on a pro rata basis, or one Weibo Share for each ten outstanding SINA ordinary shares. As of the distribution date on July 10, 2017, the Company distributed 7,142,148 Class A ordinary shares of Weibo, based on 71,421,480 ordinary shares of SINA outstanding as of the record date. Following the distribution of the Weibo Shares, SINA’s equity stake in Weibo decreased from approximately 49% (or approximately 74% by voting power) to approximately 46% (or approximately 72% by voting power), which resulted in an increase in the percentage of the non-controlling interests related to Weibo.

 

Share Repurchase Plan

 

SINA’s board of directors has approved an extension of share repurchase plan, which was originally announced in March 2016. The extended share repurchase plan will be effective until June 30, 2018. Under the share repurchase plan, SINA is authorized to repurchase its own ordinary shares with an aggregate value of up to US$500 million. SINA expects to fund the repurchase out of its existing cash balance. The share repurchase may be effected on the open market at prevailing market prices and/or in negotiated transactions off the market from time to time as market conditions warrant and will be implemented in accordance with applicable rules under the U.S. Securities Exchange Act of 1934, as amended.

 

Non-GAAP Measures

 

This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP advertising and non-advertising gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss) attributable to SINA and non-GAAP diluted net income (loss) per share attributable to SINA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company’s financial performance prepared in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may be defined differently than similar terms used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures.

 



 

The Company’s non-GAAP financial measures exclude recognition of deferred revenues related to the license granted to Leju, stock-based compensation, amortization of intangible assets,  adjustment for non-GAAP to GAAP reconciling items on the share of equity method investments, gain/loss on sale of investment/business, deemed disposal and impairment on investment, income tax effects of above non-GAAP to GAAP reconciling items and adjustment for non-GAAP to GAAP reconciling items for the income (loss) attributable to non-controlling interests and amortization of convertible debt issuance cost. The Company’s management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company’s current financial results with the Company’s past financial results in a consistent manner, and (ii) in understanding and evaluating the Company’s current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company’s core operating results and business outlook.

 

Use of non-GAAP financial measures has limitations. The Company’s non-GAAP financial measures do not include all income and expense items that affect the Company’s operations.  They may not be comparable to non-GAAP financial measures used by other companies. Management compensates for these limitations by also considering the Company’s financial results prepared in accordance with U.S. GAAP. Reconciliations of the Company’s non-GAAP measures to the nearest comparable GAAP measures are set forth in the section below titled “Unaudited Reconciliation of Non-GAAP to GAAP Results”.

 

Conference Call

 

SINA will host a conference call from 8:10 a.m. — 9:00 a.m. Eastern Time on August 9, 2017 (or 8:10 p.m. — 9:00 p.m. Beijing Time on August 9, 2017) to present an overview of the Company’s financial performance and business operations. A live webcast of the call will be available through the Company’s corporate website at http://corp.sina.com.cn. The conference call can be accessed as follows:

 

US:

 

+1 845 675 0438

Hong Kong:

 

+852 3018 6776

China:

 

400 120 0654

International:

 

+65 6713 5440

Passcode for all regions:

 

64862037

 



 

A replay of the conference call will be available through morning Eastern Time August 17, 2017. The dial-in number is +61 2 9003 4211. The passcode for the replay is 64862037.

 

About SINA

 

We are a leading online media company serving China and the global Chinese communities. Our digital media network of SINA.com (portal), SINA.cn (mobile portal), SINA Mobile Apps and Weibo.com (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.cn and SINA Mobile Apps provide news information, professional and entertainment content from SINA.com customized for mobile users in WAP (mobile browser) and mobile application format. Weibo is a leading social media platform for people to create, distribute and discover Chinese-language content. Based on an open platform architecture, Weibo allows users to create and post feeds and attach multi-media content, as well as access a wide range of organically and third-party developed applications, such as online games.

 

Through these properties and other product lines, we offer an array of online media and social media services to our users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences.

 

Safe Harbor Statement

 

This press release contains forward-looking statements that relate to, among other things, SINA’s expected financial performance and SINA’s strategic and operational plans (as described, without limitation, in quotations from management in this press release). SINA may also make forward-looking statements in the Company’s periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “confidence,” “estimates” and similar statements. SINA assumes no obligation to update the forward-looking statements in this press release and elsewhere. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to failure to meet internal or external expectations of future performance given the rapidly evolving markets; condition of the global financial and credit market; the uncertain regulatory landscape in China; fluctuations in the Company’s quarterly operating results; the Company’s reliance on online advertising sales and value-added services for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products, including portal, Weibo and MVAS products; failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties, such as Alibaba; failure to successfully integrate acquired businesses; risks associated with the Company’s investments, including equity pick-up and impairment; and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA’s annual report on Form 20-F for the year ended December 31, 2016 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,

 

 

 

2017

 

2016

 

2017

 

2017

 

2016

 

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

295,153

 

$

205,031

 

$

227,999

 

$

523,152

 

$

367,998

 

Non-advertising

 

63,779

 

38,931

 

50,066

 

113,845

 

74,639

 

 

 

358,932

 

243,962

 

278,065

 

636,997

 

442,637

 

Cost of revenues *:

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

72,211

 

73,083

 

67,668

 

139,879

 

141,272

 

Non-advertising

 

20,113

 

15,834

 

18,904

 

39,017

 

28,539

 

 

 

92,324

 

88,917

 

86,572

 

178,896

 

169,811

 

Gross profit

 

266,608

 

155,045

 

191,493

 

458,101

 

272,826

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing *

 

83,408

 

56,895

 

68,083

 

151,491

 

108,597

 

Product development *

 

63,486

 

53,522

 

54,420

 

117,906

 

106,016

 

General and administrative *

 

25,036

 

23,808

 

24,023

 

49,059

 

45,942

 

 

 

171,930

 

134,225

 

146,526

 

318,456

 

260,555

 

Income from operations

 

94,678

 

20,820

 

44,967

 

139,645

 

12,271

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

Earning (Loss) from equity method investments, net

 

(5,265

)

(6,190

)

3,143

 

(2,122

)

(16,754

)

Gain on sale of investments/business and impairment on investments, net

 

(16,315

)

34,925

 

15,883

 

(432

)

63,152

 

Interest and other income, net

 

8,225

 

6,308

 

11,233

 

19,458

 

12,916

 

 

 

(13,355

)

35,043

 

30,259

 

16,904

 

59,314

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

81,323

 

55,863

 

75,226

 

156,549

 

71,585

 

Income tax expense

 

(19,135

)

(2,747

)

(13,826

)

(32,961

)

(2,731

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

62,188

 

53,116

 

61,400

 

123,588

 

68,854

 

Less: Net income attributable to non-controlling interests

 

38,798

 

9,789

 

22,876

 

61,674

 

10,207

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to SINA

 

$

23,390

 

$

43,327

 

$

38,524

 

$

61,914

 

$

58,647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share attributable to SINA

 

$

0.33

 

$

0.62

 

$

0.54

 

$

0.87

 

$

0.84

 

Diluted net income per share attributable to SINA **

 

$

0.31

 

$

0.59

 

$

0.52

 

$

0.83

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing basic net income per share attributable to SINA

 

71,197

 

70,047

 

70,959

 

71,078

 

69,952

 

Shares used in computing diluted net income per share attributable to SINA

 

73,890

 

77,202

 

73,409

 

73,667

 

76,982

 

 


* Stock-based compensation in each category:

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

$

2,106

 

$

1,775

 

$

2,230

 

$

4,336

 

$

3,341

 

Sales and marketing

 

5,269

 

3,303

 

4,583

 

9,852

 

6,146

 

Product development

 

6,668

 

3,592

 

6,990

 

13,658

 

8,514

 

General and administrative

 

8,143

 

7,165

 

7,387

 

15,530

 

14,076

 

 

 

 

 

 

 

 

 

 

 

 

 

**               Net income attributable to SINA is adjusted for diluted shares issued by our subsidiary and equity method investments.

 

 



 

SINA CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2017

 

2016

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

1,502,512

 

$

1,407,625

 

Short-term investments

 

589,095

 

389,440

 

Restricted cash

 

324,180

 

241,306

 

Accounts receivable, net

 

229,850

 

210,328

 

Prepaid expenses and other current assets

 

388,702

 

407,373

 

Subtotal

 

3,034,339

 

2,656,072

 

 

 

 

 

 

 

Property and equipment, net

 

245,208

 

241,680

 

Goodwill and intangible assets, net

 

73,175

 

12,108

 

Long-term investments

 

1,153,861

 

1,318,207

 

Other assets

 

67,288

 

56,807

 

Total assets

 

$

4,573,871

 

$

4,284,874

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

126,564

 

$

108,381

 

Amount due to customers

 

324,180

 

241,306

 

Accrued expenses and other current liabilities

 

514,521

 

452,751

 

Short-term bank loan

 

7,376

 

33,152

 

Deferred revenues

 

101,748

 

95,566

 

Income taxes payable

 

55,580

 

40,127

 

Subtotal

 

1,129,969

 

971,283

 

 

 

 

 

 

 

Convertible debt

 

153,092

 

153,092

 

Long-term deferred revenues

 

59,780

 

65,188

 

Other long-term liabilities

 

7,025

 

4,332

 

Total liabilities

 

1,349,866

 

1,193,895

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

SINA shareholders’ equity

 

2,679,693

 

2,679,590

 

Non-controlling interests

 

544,312

 

411,389

 

Total shareholders’ equity

 

3,224,005

 

3,090,979

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

4,573,871

 

$

4,284,874

 

 



 

SINA CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(U.S. Dollars in thousands)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2017

 

2016

 

2017

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

Portal:

 

 

 

 

 

 

 

 

 

 

 

Portal Advertising

 

$

77,931

 

$

78,694

 

$

59,791

 

$

137,722

 

$

142,415

 

Other

 

28,746

 

19,219

 

20,162

 

48,908

 

34,883

 

Subtotal

 

106,677

 

97,913

 

79,953

 

186,630

 

177,298

 

 

 

 

 

 

 

 

 

 

 

 

 

Weibo:

 

 

 

 

 

 

 

 

 

 

 

Advertising and marketing

 

218,340

 

127,173

 

169,297

 

387,637

 

226,419

 

Weibo non-advertising

 

35,033

 

19,712

 

29,904

 

64,937

 

39,756

 

Subtotal

 

253,373

 

146,885

 

199,201

 

452,574

 

266,175

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination

 

(1,118

)

(836

)

(1,089

)

(2,207

)

(836

)

 

 

$

358,932

 

$

243,962

 

$

278,065

 

$

636,997

 

$

442,637

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

Portal:

 

 

 

 

 

 

 

 

 

 

 

Portal Advertising

 

$

27,647

 

$

36,804

 

$

27,482

 

$

55,129

 

$

72,341

 

Other

 

14,368

 

11,502

 

12,702

 

27,070

 

20,233

 

Subtotal

 

42,015

 

48,306

 

40,184

 

82,199

 

92,574

 

 

 

 

 

 

 

 

 

 

 

 

 

Weibo

 

50,372

 

40,657

 

46,450

 

96,822

 

77,283

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination

 

(63

)

(46

)

(62

)

(125

)

(46

)

 

 

$

92,324

 

$

88,917

 

$

86,572

 

$

178,896

 

$

169,811

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

Portal

 

61

%

51

%

50

%

56

%

48

%

Weibo

 

80

%

72

%

77

%

79

%

71

%

 

 

74

%

64

%

69

%

72

%

62

%

 



 

SINA CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

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

 

 

 

Three months ended

 

 

 

June 30, 2017

 

June 30, 2016

 

March 31, 2017

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

Non-GAAP

 

 

 

Actual

 

Adjustments

 

 

Results

 

Actual

 

Adjustments

 

 

Results

 

Actual

 

Adjustments

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising revenues

 

$

295,153

 

 

 

 

$

295,153

 

$

205,031

 

 

 

 

$

205,031

 

$

227,999

 

 

 

 

$

227,999

 

Non-advertising revenues

 

63,779

 

(2,609

)

(a)

61,170

 

38,931

 

(2,609

)

(a)

36,322

 

50,066

 

(2,609

)

(a)

47,457

 

Net revenues

 

$

358,932

 

$

(2,609

)

 

$

356,323

 

$

243,962

 

$

(2,609

)

 

$

241,353

 

$

278,065

 

$

(2,609

)

 

$

275,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

 

 

2,106

 

(b)

 

 

 

 

1,775

 

(b)

 

 

 

 

2,230

 

(b)

 

 

Gross profit

 

$

266,608

 

$

(503

)

 

$

266,105

 

$

155,045

 

$

(834

)

 

$

154,211

 

$

191,493

 

$

(379

)

 

$

191,114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,080

)

(b)

 

 

 

 

(14,060

)

(b)

 

 

 

 

(18,960

)

(b)

 

 

 

 

 

 

(1,227

)

(c)

 

 

 

 

(461

)

(c)

 

 

 

 

(155

)

(c)

 

 

Operating expenses

 

$

171,930

 

$

(21,307

)

 

$

150,623

 

$

134,225

 

$

(14,521

)

 

$

119,704

 

$

146,526

 

$

(19,115

)

 

$

127,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

(2,609

)

(a)

 

 

 

 

 

 

22,186

 

(b)

 

 

 

 

15,835

 

(b)

 

 

 

 

21,190

 

(b)

 

 

 

 

 

 

1,227

 

(c)

 

 

 

 

461

 

(c)

 

 

 

 

155

 

(c)

 

 

Income from operations

 

$

94,678

 

$

20,804

 

 

$

115,482

 

$

20,820

 

$

13,687

 

 

$

34,507

 

$

44,967

 

$

18,736

 

 

$

63,703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,609

)

(a)

 

 

 

 

15,835

 

(b)

 

 

 

 

(2,609

)

(a)

 

 

 

 

 

 

22,186

 

(b)

 

 

 

 

461

 

(c)

 

 

 

 

21,190

 

(b)

 

 

 

 

 

 

1,227

 

(c)

 

 

 

 

2,427

 

(d)

 

 

 

 

155

 

(c)

 

 

 

 

 

 

75

 

(d)

 

 

 

 

(34,925

)

(e)

 

 

 

 

224

 

(d)

 

 

 

 

 

 

16,315

 

(e)

 

 

 

 

(5,646

)

(f)

 

 

 

 

(15,883

)

(e)

 

 

 

 

 

 

(7,745

)

(f)

 

 

 

 

1,085

 

(g)

 

 

 

 

(5,494

)

(f)

 

 

 

 

 

 

(180

)

(h)

 

 

 

 

(102

)

(h)

 

 

 

 

1,472

 

(h)

 

 

Net income attributable to SINA

 

$

23,390

 

$

29,269

 

 

$

52,659

 

$

43,327

 

$

(23,474

)

 

$

19,853

 

$

38,524

 

$

(945

)

 

$

37,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share attributable to SINA *

 

$

0.31

 

 

 

 

$

0.70

 

$

0.59

 

 

 

 

$

0.27

 

$

0.52

 

 

 

 

$

0.50

 

Shares used in computing diluted net income per share attributable to SINA

 

73,890

 

 

 

73,890

 

77,202

 

 

 

77,202

 

73,409

 

 

 

73,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

76

%

 

 

76

%

64

%

1

%

 

65

%

70

%

1

%

 

71

%

Gross margin - non-advertising

 

68

%

-1

%

 

67

%

59

%

-3

%

 

56

%

62

%

-2

%

 

60

%

 



 

 

 

Six months ended

 

 

 

June 30, 2017

 

June 30, 2016

 

 

 

Actual

 

Adjustments

 

 

Non-GAAP
Results

 

Actual

 

Adjustments

 

 

Non-GAAP
Results

 

Advertising revenues

 

$

523,152

 

 

 

 

$

523,152

 

$

367,998

 

 

 

 

$

367,998

 

Non-advertising revenues

 

113,845

 

(5,218

)

(a)

108,627

 

74,639

 

(5,218

)

(a)

69,421

 

Net revenues

 

$

636,997

 

$

(5,218

)

 

$

631,779

 

$

442,637

 

$

(5,218

)

 

$

437,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)

(a)

 

 

 

 

(5,218

)

(a)

 

 

 

 

 

 

4,336

 

(b)

 

 

 

 

3,341

 

(b)

 

 

Gross profit

 

$

458,101

 

$

(882

)

 

$

457,219

 

$

272,826

 

$

(1,877

)

 

$

270,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39,040

)

(b)

 

 

 

 

(28,736

)

(b)

 

 

 

 

 

 

(1,382

)

(c)

 

 

 

 

(1,018

)

(c)

 

 

Operating expenses

 

$

318,456

 

$

(40,422

)

 

$

278,034

 

$

260,555

 

$

(29,754

)

 

$

230,801

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)

(a)

 

 

 

 

(5,218

)

(a)

 

 

 

 

 

 

43,376

 

(b)

 

 

 

 

32,077

 

(b)

 

 

 

 

 

 

1,382

 

(c)

 

 

 

 

1,018

 

(c)

 

 

Income from operations

 

$

139,645

 

$

39,540

 

 

$

179,185

 

$

12,271

 

$

27,877

 

 

$

40,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,218

)

(a)

 

 

 

 

 

 

(5,218

)

(a)

 

 

 

 

32,077

 

(b)

 

 

 

 

 

 

43,376

 

(b)

 

 

 

 

1,018

 

(c)

 

 

 

 

 

 

1,382

 

(c)

 

 

 

 

1,946

 

(d)

 

 

 

 

 

 

299

 

(d)

 

 

 

 

(63,152

)

(e)

 

 

 

 

 

 

432

 

(e)

 

 

 

 

(10,165

)

(f)

 

 

 

 

 

 

(13,239

)

(f)

 

 

 

 

2,169

 

(g)

 

 

 

 

 

 

1,292

 

(h)

 

 

 

 

(225

)

(h)

 

 

Net income attributable to SINA

 

$

61,914

 

$

28,324

 

 

$

90,238

 

$

58,647

 

$

(41,550

)

 

$

17,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share attributable to SINA *

 

$

0.83

 

 

 

 

$

1.21

 

$

0.82

 

 

 

 

$

0.23

 

Shares used in computing diluted net income per share attributable to SINA

 

73,667

 

 

 

73,667

 

76,982

 

(6,467

)

(i)

70,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

73

%

1

%

 

74

%

62

%

1

%

 

63

%

Gross margin - non-advertising

 

66

%

-2

%

 

64

%

62

%

-3

%

 

59

%

 


(a)         To exclude the recognition of deferred revenue related to the license granted to Leju.

(b)         To exclude stock-based compensation.

(c)          To adjust amortization of intangible assets.

(d)         To exclude the Non-GAAP to GAAP reconciling items on the share of equity method investments, net of share of amortization of intangibles not on their books.

(e)          To exclude (gain) loss on sale of investments/business, (gain) loss on deemed disposal and impairment on investments, net.

(f)           To exclude Non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests.

(g)         To exclude the amortization of convertible debt issuance cost.

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

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

 

*               Net income attributable to SINA is adjusted for diluted shares issued by our subsidiary and equity method investments.

 

**          Most of the reconciliation items were recorded in entities in tax free jurisdictions hence no income tax implications. For impairment on investments, valuation allowances were made for those differences the Company does not expect they can be realized in the foreseeable future.

 



 

UNAUDITED RECONCILIATION OF SINA’S SHARE OF EQUITY INVESTMENTS’ NON-GAAP TO GAAP RESULTS*

 

 

 

Three months ended

 

 

 

June 30, 2017

 

June 30, 2016

 

March 31, 2017

 

 

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

Actual

 

Adjustments

 

Non-GAAP
Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To exclude stock-based compensation

 

 

 

$

736

 

 

 

 

 

$

1,356

 

 

 

 

 

$

320

 

 

 

To exclude amortization of intangible assets resulting from business acquisitions

 

 

 

1,035

 

 

 

 

 

587

 

 

 

 

 

102

 

 

 

To exclude gain on disposal and impairment on investments

 

 

 

(1,319

)

 

 

 

 

(739

)

 

 

 

 

(321

)

 

 

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

 

 

 

(637

)

 

 

 

 

1,236

 

 

 

 

 

39

 

 

 

To exclude tax impacts related to amortization of intangible assets

 

 

 

(143

)

 

 

 

 

(180

)

 

 

 

 

(21

)

 

 

Earning (Loss) from equity method investments, net

 

$

(4,862

)

$

(328

)

$

(5,190

)

$

(6,023

)

$

2,260

 

$

(3,763

)

$

3,248

 

$

119

 

$

3,367

 

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

 

(523

)

523

 

 

(223

)

223

 

 

(125

)

125

 

 

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

 

120

 

(120

)

 

56

 

(56

)

 

20

 

(20

)

 

 

 

$

(5,265

)

$

75

 

$

(5,190

)

$

(6,190

)

$

2,427

 

$

(3,763

)

$

3,143

 

$

224

 

$

3,367

 

 

 

 

Six months ended

 

 

 

June 30, 2017

 

June 30, 2016

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Non-GAAP

 

 

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To exclude stock-based compensation

 

 

 

$

1,056

 

 

 

 

 

$

2,911

 

 

 

To exclude amortization of intangible assets resulting from business acquisitions

 

 

 

1,137

 

 

 

 

 

1,377

 

 

 

To exclude gain on disposal and impairment on investments

 

 

 

(1,640

)

 

 

 

 

(1,547

)

 

 

To exclude gain resulting from the fair value changes in investments

 

 

 

(598

)

 

 

 

 

(890

)

 

 

To exclude tax impacts related to amortization of intangible assets

 

 

 

(164

)

 

 

 

 

(366

)

 

 

Loss from equity method investments, net

 

$

(1,614

)

$

(209

)

$

(1,823

)

$

(16,293

)

$

1,485

 

$

(14,808

)

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

 

(648

)

648

 

 

(615

)

615

 

 

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

 

140

 

(140

)

 

154

 

(154

)

 

 

 

$

(2,122

)

$

299

 

$

(1,823

)

$

(16,754

)

$

1,946

 

$

(14,808

)

 


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