Segments and Geographic Information

12 Months Ended

Dec. 31, 2015

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, smart hardware and IOT devices. The Group started to generate revenue from smart hardware and IOT devices since the second quarter of 2015.

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,
	2013			2014			2015
Revenues:
Internet services	$	669,817		$	1,367,618		$	1,680,355
Smart hardware and IOT devices		-			-			58,423
Others		1,271			23,042			65,805
		671,088			1,390,660			1,804,583
Cost of revenues:
Internet services		(87,334	)		(290,076	)		(332,858	)
Smart hardware and IOT devices		-			-			(51,498	)
Others		(504	)		(15,386	)		(39,401	)
		(87,838	)		(305,462	)		(423,757	)
Gross profit:
Internet services		582,483			1,077,542			1,347,497
Smart hardware and IOT devices		-			-			6,925
Others		767			7,656			26,404
		583,250			1,085,198			1,380,826
Operating expenses:
Product development		(255,248	)		(406,250	)		(495,964	)
Selling and marketing		(110,104	)		(333,701	)		(483,615	)
General and administrative		(117,148	)		(94,260	)		(161,363	)
Total operating expenses		(482,500	)		(834,211	)		(1,140,942	)
Subsidy income		2,349			8,506			20,647
Income from operations	$	103,099		$	259,493		$	260,531

Substantially all of the Group’s revenues for the three years ended December 31, 2013, 2014 and 2015 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.