Segments and Geographic Information

12 Months Ended

Dec. 31, 2014

Segments and Geographic Information [Abstract]

Segments and Geographic Information

21. SEGMENT AND GEOGRAPHIC INFORMATION

The Group’s chief operating decision maker is the Chief Executive Officer and the President, who review consolidated results of operations prepared in accordance with U.S. GAAP when making decisions about allocating resources and assessing performance of the Group. The Group has operating segments: internet services and others. Others are insignificant.

The Group does not allocate any assets to its operating segments as management does not believe that allocating these assets is useful in evaluating these segments' performance. Accordingly, the Group has not made disclosure of total assets by reportable segment.

	For the years ended December 31,
	2012			2013			2014
Revenues:
Internet services	$	328,882		$	671,088		$	1,370,695
Others		150			-			19,965
		329,032			671,088			1,390,660
Cost of revenues:
Internet services		(32,762	)		(87,838	)		(297,645	)
Others		(40	)		-			(7,817	)
		(32,802	)		(87,838	)		(305,462	)
Gross profit:
Internet services		296,120			583,250			1,073,050
Others		110			-			12,148
		296,230			583,250			1,085,198
Operating expenses:
Product development		(156,269	)		(255,248	)		(406,250	)
Selling and marketing		(58,178	)		(110,104	)		(333,701	)
General and administrative		(35,643	)		(117,148	)		(94,260	)
Total operating expenses		(250,090	)		(482,500	)		(834,211	)
Subsidy income		2,570			2,349			8,506
Income from operations	$	48,710		$	103,099		$	259,493

Substantially all of the Group’s revenues for the three years ended December 31, 2012, 2013 and 2014 were generated from the PRC. Similarly, substantial all of the identifiable assets of the Group are located in the PRC. Accordingly, no geographical information is presented.