BEIJING, Nov. 7, 2017 /PRNewswire/ -- 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 third quarter ended September 30, 2017.
Third Quarter 2017 Highlights
- Net revenues increased 61% year over year to $443.1 million. Non-GAAP net revenues increased
62% year over year to $440.5
million.
- Advertising revenues increased 56% year over year to
$364.0 million.
- Non-advertising revenues increased 92% year over year to
$79.2 million. Non-GAAP
non-advertising revenues increased 98% year over year to
$76.6 million.
- Income from operations increased 231% year over year to
$120.3 million. Non-GAAP income from
operations increased 157% year over year to $145.0 million. Non-GAAP operating margin was
33%, up from 21% for the same period last year.
- Net income attributable to SINA was $49.3 million, or $0.66 diluted net income per share attributable
to SINA. Non-GAAP net income attributable to SINA was $57.7 million, or $0.77 non-GAAP diluted net income per share
attributable to SINA.
- Weibo's monthly active users ("MAUs") had a net addition of
approximately 79 million users year over year and reached 376
million in September 2017. 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 165
million in September 2017.
"We are very pleased to deliver another strong quarter of
financial results with record revenues and operating profit." said
Charles Chao, Chairman and CEO of
SINA. "Weibo continued its strong momentum with substantial user
base expansion and improved user engagement. Leveraging platform
effect, Weibo has achieved further operating leverage and a record
high level of net income." said Mr. Chao. "Portal advertising
resumed in the growth trajectory this quarter as we continue to
ramp up mobile traffic of SINA media properties and improve mobile
monetization. We are also pleased to see the encouraging progresses
we have made in the online finance business." Mr. Chao
concluded.
Third Quarter 2017 Financial Results
For the third quarter of 2017, SINA reported net revenues of
$443.1 million, an increase of 61%
compared to $274.9 million for the
same period last year. Non-GAAP net revenues for the third quarter
of 2017 totaled $440.5 million, an
increase of 62% compared to $272.3
million for the same period last year.
Online advertising revenues for the third quarter of 2017 were
$364.0 million, an increase of 56%
compared to $233.6 million for the
same period last year. The year-over-year growth in online
advertising revenues was mainly resulted from an increase of
$120.1 million, or 77% growth in
Weibo advertising and marketing revenues and a modest increase of
portal advertising revenues in the third quarter.
Non-advertising revenues for the third quarter of 2017 were
$79.2 million, an increase of 92%
compared to $41.2 million for the
same period last year. Non-GAAP non-advertising revenues for the
third quarter of 2017 were $76.6
million, an increase of 98% compared to $38.6 million for the same period last year. The
year-over-year growth in non-advertising revenues was driven by the
new revenue stream derived from SINA online finance business,
increased Weibo membership fees and revenue share from live
broadcasting business.
Gross margin for the third quarter of 2017 was 76%, compared to
67% for the same period last year. Advertising gross margin for the
third quarter of 2017 was 76%, compared to 70% for the same period
last year. The increase in advertising gross margin was primarily
due to stronger advertising demand from Weibo advertisers and the
further operating leverage of Weibo business. Non-advertising gross
margin for the third quarter of 2017 was 71%, compared to 54% for
the same period last year. The increase in non-advertising margin
was the result of higher revenue contribution from businesses with
better margin profile compared with the same period last year, such
as Weibo's membership services and SINA's online finance
business.
Operating expenses for the third quarter of 2017 totaled
$214.3 million, compared to
$148.2 million for the same period
last year. The increase in operating expenses was primarily
attributable to an increase in sales and marketing expenses for
user acquisition for both Weibo and SINA News APPs. Non-GAAP
operating expenses for the third quarter of 2017 totaled
$189.7 million, compared to
$127.9 million for the same period
last year.
Income from operations for the third quarter of 2017 was
$120.3 million, an increase of 231%
compared to $36.3 million for the
same period last year. Operating margin was 27%, up from 13% for
the same period last year. The increase in operating margin was a
result of further operating leverage of Weibo business and step-up
of margin profile from non-Weibo business. Non-GAAP income from
operations for the third quarter of 2017 was $145.0 million, an increase of 157% compared to
$56.5 million for the same period
last year. Non-GAAP operating margin was 33%, up from 21% for the
same period last year.
Non-operating income for the third quarter of 2017 was
$11.1 million, compared to a
non-operating income of $143.1
million for the same period last year. Non-operating income
for the third quarter of 2017 mainly included: (i) a $10.2 million net gain on sale of and impairment
on investments, net, which is excluded under our non-GAAP measure;
(ii) a $11.1 million loss pick-up
from equity-method investments, which is 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; and
(iii) a $12.0 million net interest
and other income. Non-operating income for the third quarter of
2016 included: (i) a $133.5 million
net gain on sale of and impairment on investments, which is
excluded under our non-GAAP measure; and (ii) a $5.5 million earnings pick-up from equity-method
investments, which are accounted for under the equity-method and
reported one quarter in arrears, mainly resulted from earnings
pick-up from the Company's investment in E-House.
Income tax expenses for the third quarter of 2017 were
$24.6 million, compared to
$19.1 million for the same period
last year. The increase was primarily due to higher profitability
and the change in tax status of the Weibo's PRC subsidiary in 2017
from being fully tax exempted to being subject to a reduced
enterprise income tax rate of 12.5%.
Net income attributable to SINA for the third quarter of 2017
was $49.3 million, compared to
$146.5 million for the same period
last year. Diluted net income per share attributable to SINA for
the third quarter of 2017 was $0.66,
compared to $1.90 for the same period
last year. Non-GAAP net income attributable to SINA for the third
quarter of 2017 was $57.7 million,
compared to $43.7 million for the
same period last year. Non-GAAP diluted net income per share
attributable to SINA for the third quarter of 2017 was $0.77, compared to $0.56 for the same period last year.
As of September 30, 2017, SINA's
cash, cash equivalents and short-term investments totaled
$2.2 billion, compared to
$1.8 billion as of December 31, 2016. For the third quarter of 2017,
net cash provided by operating activities was $188.1 million, capital expenditures totaled
$7.3 million, and depreciation and
amortization expenses amounted to $8.7
million.
Weibo Completed Offering of US$900
Million Convertible Senior Notes
On October 30, 2017, Weibo
completed the offering of $900
million in aggregate principal amount of convertible senior
notes due 2022, including a fully-exercised over-allotment option
of $100 million principal amount of
notes that Weibo granted to the initial purchasers (the "Notes").
The Notes will bear annual interest at a rate of 1.25% per year,
payable semiannually in arrears on May
15 and November 15 of each
year, beginning on May 15, 2018. The
Notes will be convertible into Weibo's American Depositary Shares
("ADS") based on an initial conversion price of approximately
US$133.27 per ADS, which represents
an approximately 47.5% conversion premium over the closing trading
price of Weibo's ADSs on October 25,
2017. The Notes will mature on November 15, 2022, unless previously repurchased,
redeemed or converted in accordance with their terms prior to such
date.
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 7:10 a.m. – 8:00 a.m.
Eastern Time on November
7, 2017 (or 8:10 p.m. –
9:00 p.m. Beijing Time on
November 7, 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:
|
4292828
|
A replay of the conference call will be available through
morning Eastern Time November 15,
2017. The dial-in number is +61 2 9003 4211. The passcode
for the replay is 4292828.
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
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
$
363,958
|
|
$
233,633
|
|
$
295,153
|
|
$
887,110
|
|
$
601,631
|
|
Non-advertising
|
79,191
|
|
41,242
|
|
63,779
|
|
193,036
|
|
115,881
|
|
|
|
443,149
|
|
274,875
|
|
358,932
|
|
1,080,146
|
|
717,512
|
|
Cost of revenues
*:
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
85,757
|
|
71,194
|
|
72,211
|
|
225,636
|
|
212,466
|
|
Non-advertising
|
22,814
|
|
19,133
|
|
20,113
|
|
61,831
|
|
47,672
|
|
|
|
108,571
|
|
90,327
|
|
92,324
|
|
287,467
|
|
260,138
|
|
Gross
profit
|
334,578
|
|
184,548
|
|
266,608
|
|
792,679
|
|
457,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing *
|
114,345
|
|
64,176
|
|
83,408
|
|
265,836
|
|
172,773
|
|
Product development *
|
70,509
|
|
55,674
|
|
63,486
|
|
188,415
|
|
161,690
|
|
General and administrative *
|
29,443
|
|
28,366
|
|
25,036
|
|
78,502
|
|
74,308
|
|
|
|
214,297
|
|
148,216
|
|
171,930
|
|
532,753
|
|
408,771
|
|
Income from
operations
|
120,281
|
|
36,332
|
|
94,678
|
|
259,926
|
|
48,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
Earning (Loss) from equity method investments, net
|
(11,105)
|
|
5,534
|
|
(5,265)
|
|
(13,227)
|
|
(11,220)
|
|
Gain
on sale of investments/business and impairment on investments,
net
|
10,209
|
|
133,505
|
|
(16,315)
|
|
9,777
|
|
196,657
|
|
Fair
value change in option liability
|
-
|
|
(2,653)
|
|
-
|
|
-
|
|
(2,653)
|
|
Interest and other income, net
|
11,994
|
|
6,703
|
|
8,225
|
|
31,452
|
|
19,619
|
|
|
|
11,098
|
|
143,089
|
|
(13,355)
|
|
28,002
|
|
202,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
131,379
|
|
179,421
|
|
81,323
|
|
287,928
|
|
251,006
|
|
Income tax
expense
|
(24,555)
|
|
(19,050)
|
|
(19,135)
|
|
(57,516)
|
|
(21,781)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
106,824
|
|
160,371
|
|
62,188
|
|
230,412
|
|
229,225
|
|
Less:
Net income attributable to non-controlling interests
|
57,533
|
|
13,853
|
|
38,798
|
|
119,207
|
|
24,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to SINA
|
$
49,291
|
|
$
146,518
|
|
$
23,390
|
|
$
111,205
|
|
$
205,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share attributable to SINA
|
$
0.69
|
|
$
2.08
|
|
$
0.33
|
|
$
1.56
|
|
$
2.93
|
|
Diluted net income
per share attributable to SINA **
|
$
0.66
|
|
$
1.90
|
|
$
0.31
|
|
$
1.48
|
|
$
2.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to SINA
|
71,468
|
|
70,420
|
|
71,197
|
|
71,208
|
|
70,108
|
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to SINA
|
74,213
|
|
78,303
|
|
73,890
|
|
73,924
|
|
77,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Stock-based
compensation in each category:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
2,776
|
|
$
2,380
|
|
$
2,106
|
|
$
7,112
|
|
$
5,721
|
|
|
Sales and
marketing
|
5,568
|
|
4,791
|
|
5,269
|
|
15,420
|
|
10,937
|
|
|
Product
development
|
9,073
|
|
7,261
|
|
6,668
|
|
22,731
|
|
15,775
|
|
|
General and
administrative
|
8,410
|
|
7,853
|
|
8,143
|
|
23,940
|
|
21,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
Assets
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,093,900
|
|
|
$
1,407,625
|
|
|
Short-term
investments
|
|
1,138,236
|
|
|
389,440
|
|
|
Restricted
cash
|
|
382,238
|
|
|
241,306
|
|
|
Accounts
receivable, net
|
|
279,062
|
|
|
210,328
|
|
|
Prepaid expenses
and other current assets
|
|
313,934
|
|
|
407,373
|
|
|
Subtotal
|
|
3,207,370
|
|
|
2,656,072
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
253,414
|
|
|
241,680
|
|
Goodwill and
intangible assets, net
|
|
101,807
|
|
|
12,108
|
|
Long-term
investments
|
|
1,235,134
|
|
|
1,318,207
|
|
Other
assets
|
|
55,547
|
|
|
56,807
|
|
Total
assets
|
|
$
4,853,272
|
|
|
$
4,284,874
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
153,112
|
|
|
$
108,381
|
|
|
Amount due to
customers
|
|
382,238
|
|
|
241,306
|
|
|
Accrued expenses
and other current liabilities
|
|
415,566
|
|
|
452,751
|
|
|
Short-term bank
loan
|
|
28,634
|
|
|
33,152
|
|
|
Deferred
revenues
|
|
134,872
|
|
|
95,566
|
|
|
Income taxes
payable
|
|
81,138
|
|
|
40,127
|
|
|
Subtotal
|
|
1,195,560
|
|
|
971,283
|
|
|
|
|
|
|
|
|
|
Convertible
debt
|
|
153,092
|
|
|
153,092
|
|
Long-term deferred
revenues
|
|
57,076
|
|
|
65,188
|
|
Other long-term
liabilities
|
|
8,384
|
|
|
4,332
|
|
|
Total
liabilities
|
|
1,414,112
|
|
|
1,193,895
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
SINA shareholders'
equity
|
|
2,793,189
|
|
|
2,679,590
|
|
|
Non-controlling
interests
|
|
645,971
|
|
|
411,389
|
|
|
Total shareholders'
equity
|
|
3,439,160
|
|
|
3,090,979
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
4,853,272
|
|
|
$
4,284,874
|
|
|
|
|
|
|
|
|
SINA
CORPORATION
|
UNAUDITED
ADDITIONAL INFORMATION
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
|
|
|
|
Portal
Advertising
|
$
87,432
|
|
$
79,855
|
|
$
77,931
|
|
$
225,154
|
|
$
222,270
|
|
Other
|
39,785
|
|
21,058
|
|
28,746
|
|
88,693
|
|
55,941
|
|
|
Subtotal
|
127,217
|
|
100,913
|
|
106,677
|
|
313,847
|
|
278,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weibo:
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing
|
276,803
|
|
156,693
|
|
218,340
|
|
664,440
|
|
383,112
|
|
|
Weibo
non-advertising
|
43,232
|
|
20,184
|
|
35,033
|
|
108,169
|
|
59,940
|
|
|
Subtotal
|
320,035
|
|
176,877
|
|
253,373
|
|
772,609
|
|
443,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination
|
(4,103)
|
|
(2,915)
|
|
(1,118)
|
|
(6,310)
|
|
(3,751)
|
|
|
|
$
443,149
|
|
$
274,875
|
|
$
358,932
|
|
$
1,080,146
|
|
$
717,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
|
|
|
|
Portal
Advertising
|
$
30,502
|
|
$
32,540
|
|
$
27,647
|
|
$
85,631
|
|
$
104,881
|
|
Other
|
19,483
|
|
13,458
|
|
14,368
|
|
46,553
|
|
33,691
|
|
|
Subtotal
|
49,985
|
|
45,998
|
|
42,015
|
|
132,184
|
|
138,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weibo
|
62,428
|
|
44,494
|
|
50,372
|
|
159,250
|
|
121,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination
|
(3,842)
|
|
(165)
|
|
(63)
|
|
(3,967)
|
|
(211)
|
|
|
|
$
108,571
|
|
$
90,327
|
|
$
92,324
|
|
$
287,467
|
|
$
260,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
Portal
|
61%
|
|
54%
|
|
61%
|
|
58%
|
|
50%
|
|
|
Weibo
|
80%
|
|
75%
|
|
80%
|
|
79%
|
|
73%
|
|
|
|
76%
|
|
67%
|
|
74%
|
|
73%
|
|
64%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SINA
CORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
(U.S. Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
June 30,
2017
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenues
|
$
363,958
|
|
|
|
$
363,958
|
|
$
233,633
|
|
|
|
$
233,633
|
|
$
295,153
|
|
|
|
$
295,153
|
Non-advertising
revenues
|
79,191
|
|
(2,609)
|
(a)
|
76,582
|
|
41,242
|
|
(2,609)
|
(a)
|
38,633
|
|
63,779
|
|
(2,609)
|
(a)
|
61,170
|
Net
revenues
|
$
443,149
|
|
$
(2,609)
|
|
$
440,540
|
|
$
274,875
|
|
$
(2,609)
|
|
$
272,266
|
|
$
358,932
|
|
$
(2,609)
|
|
$
356,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
2,776
|
(b)
|
|
|
|
|
2,380
|
(b)
|
|
|
|
|
2,106
|
(b)
|
|
Gross
profit
|
$
334,578
|
|
$
167
|
|
$
334,745
|
|
$
184,548
|
|
$
(229)
|
|
$
184,319
|
|
$
266,608
|
|
$
(503)
|
|
$
266,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23,051)
|
(b)
|
|
|
|
|
(19,905)
|
(b)
|
|
|
|
|
(20,080)
|
(b)
|
|
|
|
|
|
(1,538)
|
(c)
|
|
|
|
|
(457)
|
(c)
|
|
|
|
|
(1,227)
|
(c)
|
|
Operating
expenses
|
$
214,297
|
|
$
(24,589)
|
|
$
189,708
|
|
$
148,216
|
|
$
(20,362)
|
|
$
127,854
|
|
$
171,930
|
|
$
(21,307)
|
|
$
150,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
25,827
|
(b)
|
|
|
|
|
22,285
|
(b)
|
|
|
|
|
22,186
|
(b)
|
|
|
|
|
|
1,538
|
(c)
|
|
|
|
|
457
|
(c)
|
|
|
|
|
1,227
|
(c)
|
|
Income from
operations
|
$
120,281
|
|
$
24,756
|
|
$
145,037
|
|
$
36,332
|
|
$
20,133
|
|
$
56,465
|
|
$
94,678
|
|
$
20,804
|
|
$
115,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,285
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
457
|
(c)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
25,827
|
(b)
|
|
|
|
|
2,032
|
(d)
|
|
|
|
|
22,186
|
(b)
|
|
|
|
|
|
1,538
|
(c)
|
|
|
|
|
(133,505)
|
(e)
|
|
|
|
|
1,227
|
(c)
|
|
|
|
|
|
1,474
|
(d)
|
|
|
|
|
2,653
|
(f)
|
|
|
|
|
75
|
(d)
|
|
|
|
|
|
(10,209)
|
(e)
|
|
|
|
|
(10,650)
|
(g)
|
|
|
|
|
16,315
|
(e)
|
|
|
|
|
|
(7,391)
|
(g)
|
|
|
|
|
1,398
|
(h)
|
|
|
|
|
(7,745)
|
(g)
|
|
|
|
|
|
(254)
|
(i)
|
|
|
|
|
15,133
|
(i)
|
|
|
|
|
(180)
|
(i)
|
|
Net income
attributable to SINA
|
$
49,291
|
|
$
8,376
|
|
$
57,667
|
|
$
146,518
|
|
$
(102,806)
|
|
$
43,712
|
|
$
23,390
|
|
$
29,269
|
|
$
52,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to SINA *
|
$
0.66
|
|
|
|
$
0.77
|
|
$
1.90
|
|
|
|
$
0.56
|
|
$
0.31
|
|
|
|
$
0.70
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to SINA
|
74,213
|
|
-
|
|
74,213
|
|
78,303
|
|
-
|
|
78,303
|
|
73,890
|
|
-
|
|
73,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin -
advertising
|
76%
|
|
1%
|
|
77%
|
|
70%
|
|
1%
|
|
71%
|
|
76%
|
|
-
|
|
76%
|
Gross margin -
non-advertising
|
71%
|
|
-1%
|
|
70%
|
|
54%
|
|
-4%
|
|
50%
|
|
68%
|
|
-1%
|
|
67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenues
|
$
887,110
|
|
|
|
$
887,110
|
|
$
601,631
|
|
|
|
$
601,631
|
|
|
|
|
|
|
Non-advertising
revenues
|
193,036
|
|
(7,827)
|
(a)
|
185,209
|
|
115,881
|
|
(7,827)
|
(a)
|
108,054
|
|
|
|
|
|
|
Net
revenues
|
$1,080,146
|
|
$
(7,827)
|
|
$1,072,319
|
|
$
717,512
|
|
$
(7,827)
|
|
$
709,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
7,112
|
(b)
|
|
|
|
|
5,721
|
(b)
|
|
|
|
|
|
|
|
Gross
profit
|
$
792,679
|
|
$
(715)
|
|
$
791,964
|
|
$
457,374
|
|
$
(2,106)
|
|
$
455,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(62,091)
|
(b)
|
|
|
|
|
(48,641)
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
(2,920)
|
(c)
|
|
|
|
|
(1,475)
|
(c)
|
|
|
|
|
|
|
|
Operating
expenses
|
$
532,753
|
|
$
(65,011)
|
|
$
467,742
|
|
$
408,771
|
|
$
(50,116)
|
|
$
358,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
69,203
|
(b)
|
|
|
|
|
54,362
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
2,920
|
(c)
|
|
|
|
|
1,475
|
(c)
|
|
|
|
|
|
|
|
Income from
operations
|
$
259,926
|
|
$
64,296
|
|
$
324,222
|
|
$
48,603
|
|
$
48,010
|
|
$
96,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54,362
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
1,475
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
69,203
|
(b)
|
|
|
|
|
3,978
|
(d)
|
|
|
|
|
|
|
|
|
|
|
|
2,920
|
(c)
|
|
|
|
|
(196,657)
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
1,773
|
(d)
|
|
|
|
|
2,653
|
(f)
|
|
|
|
|
|
|
|
|
|
|
|
(9,777)
|
(e)
|
|
|
|
|
(20,815)
|
(g)
|
|
|
|
|
|
|
|
|
|
|
|
(20,630)
|
(g)
|
|
|
|
|
3,567
|
(h)
|
|
|
|
|
|
|
|
|
|
|
|
1,038
|
(i)
|
|
|
|
|
14,908
|
(i)
|
|
|
|
|
|
|
|
Net income
attributable to SINA
|
$
111,205
|
|
$
36,700
|
|
$
147,905
|
|
$
205,165
|
|
$
(144,356)
|
|
$
60,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to SINA *
|
$
1.48
|
|
|
|
$
1.97
|
|
$
2.74
|
|
|
|
$
0.82
|
|
|
|
|
|
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to SINA
|
73,924
|
|
-
|
|
73,924
|
|
77,486
|
|
-
|
|
77,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin -
advertising
|
75%
|
|
-
|
|
75%
|
|
65%
|
|
1%
|
|
66%
|
|
|
|
|
|
|
Gross margin -
non-advertising
|
68%
|
|
-1%
|
|
67%
|
|
59%
|
|
-3%
|
|
56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 the change in fair value of option
liability.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g) To
exclude Non-GAAP to GAAP reconciling items for the income
attributable to non-controlling interests.
|
|
|
|
|
|
|
|
|
|
|
|
|
(h) To exclude the
amortization of convertible debt issuance cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) 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.**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
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
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
June 30,
2017
|
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To exclude
stock-based compensation
|
|
|
$
1,822
|
|
|
|
|
|
$
1,409
|
|
|
|
|
|
$
736
|
|
|
|
To exclude
amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
resulting from business acquisitions
|
|
|
1,127
|
|
|
|
|
|
618
|
|
|
|
|
|
1,035
|
|
|
|
To exclude (gain)
loss on disposal and impairment on
investments
|
|
327
|
|
|
|
|
|
(12)
|
|
|
|
|
|
(1,319)
|
|
|
|
To exclude (gain)
loss resulting from the fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
changes in
investments
|
|
|
(1,745)
|
|
|
|
|
|
41
|
|
|
|
|
|
(637)
|
|
|
|
To exclude tax
impacts related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to
amortization of intangible assets
|
|
|
(166)
|
|
|
|
|
|
(179)
|
|
|
|
|
|
(143)
|
|
|
|
Earning (Loss)
from equity method investments, net
|
$
(10,996)
|
|
$
1,365
|
|
$
(9,631)
|
|
$
5,689
|
|
$
1,877
|
|
$
7,566
|
|
$
(4,862)
|
|
$
(328)
|
|
$
(5,190)
|
|
Share of
amortization of equity investments'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangibles
not on their books
|
(130)
|
|
130
|
|
-
|
|
(173)
|
|
173
|
|
-
|
|
(523)
|
|
523
|
|
-
|
|
Share of tax
impacts related to amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
investments' intangibles not on their books
|
21
|
|
(21)
|
|
-
|
|
18
|
|
(18)
|
|
-
|
|
120
|
|
(120)
|
|
-
|
|
|
$
(11,105)
|
|
$
1,474
|
|
$
(9,631)
|
|
$
5,534
|
|
$
2,032
|
|
$
7,566
|
|
$
(5,265)
|
|
$
75
|
|
$
(5,190)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To exclude
stock-based compensation
|
|
|
$
2,878
|
|
|
|
|
|
$
4,320
|
|
|
|
|
|
|
|
|
|
To exclude
amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
resulting from business acquisitions
|
|
|
2,264
|
|
|
|
|
|
1,996
|
|
|
|
|
|
|
|
|
|
To exclude gain on disposal
and impairment on investments
|
|
|
(1,313)
|
|
|
|
|
|
(1,559)
|
|
|
|
|
|
|
|
|
|
To exclude gain
resulting from the fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
changes in
investments
|
|
|
(2,343)
|
|
|
|
|
|
(849)
|
|
|
|
|
|
|
|
|
|
To exclude tax
impacts related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to
amortization of intangible assets
|
|
|
(330)
|
|
|
|
|
|
(546)
|
|
|
|
|
|
|
|
|
|
Loss from equity
method investments, net
|
$
(12,610)
|
|
$
1,156
|
|
$
(11,454)
|
|
$
(10,604)
|
|
$
3,362
|
|
$
(7,242)
|
|
|
|
|
|
|
|
Share of
amortization of equity investments'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangibles
not on their books
|
(778)
|
|
778
|
|
-
|
|
(788)
|
|
788
|
|
-
|
|
|
|
|
|
|
|
Share of tax
impacts related to amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
investments' intangibles not on their books
|
161
|
|
(161)
|
|
-
|
|
172
|
|
(172)
|
|
-
|
|
|
|
|
|
|
|
|
$
(13,227)
|
|
$
1,773
|
|
$
(11,454)
|
|
$
(11,220)
|
|
$
3,978
|
|
$
(7,242)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Earning (Loss)
from equity method investments is recorded one quarter in
arrears.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/sina-reports-third-quarter-2017-financial-results-300550767.html
SOURCE SINA Corporation