BEIJING, Nov. 29, 2015 /PRNewswire/ -- 58.com Inc. (NYSE:
WUBA) ("58.com" or the "Company"), China's largest online marketplace serving
local merchants and consumers, today reported its unaudited
financial results for the third quarter ended September 30, 2015.
Third Quarter 2015 Financial Highlights
- Total revenues were US$212.9
million, a 195.9% increase from the same quarter last year;
exceeding guidance of US$195.0 to US$200.0
million.
- Gross margin was 93.2%, compared with 95.3% during the same
quarter of 2014.
- Loss from operations was US$85.3
million, compared with income from operations of
US$3.0 million in the same quarter of
2014.
- Non-GAAP loss from operations1 was US$69.9 million, compared with non-GAAP income
from operations of US$4.9 million in
the same quarter of 2014.
- Net loss attributable to 58.com Inc. was US$206.0 million, compared with net income
attributable to 58.com Inc. of US$5.9
million in the same quarter of 2014.
- Non-GAAP net loss attributable to 58.com Inc.2 was
US$64.8 million, compared with
non-GAAP net income attributable to 58.com Inc. of US$7.8 million in the same quarter of 2014.
- Basic and diluted losses per ADS attributable to ordinary
shareholders were US$1.59. One ADS
represents two Class A ordinary shares.
- Non-GAAP basic and diluted losses per ADS3
attributable to ordinary shareholders were US$0.50.
Management Comments
"We are pleased to report strong third quarter results with our
topline growing faster than expected," commented Mr. Michael
Yao, Co-chairman and Chief Executive Officer of 58.com. "Our
core classifieds business continued to grow rapidly as it acquired
more traffic and merchants and increased in size and
scale. Since our acquisition in March
2015, Anjuke's traffic and topline growth accelerated,
validating our vision and demonstrating our ability to efficiently
integrate and grow other platforms within our ecosystem. 58 Home
recently closed US$300 million fund
raising from Alibaba, KKR and PingAn and is now in a better
position to take advantage of the massive market opportunities that
are emerging. Last week we announced the spin-off of our
consumer-to-consumer used car platform Guazi, which is off to a
great start with Mark Yang and his
management team. Finally, we will continue to deepen the
integration of Ganji as we work to provide our users with a
superior experience."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "Our
total revenues exceeded the high end of our guidance again this
quarter as our paying merchant members and online marketing
services set new operational records. Net income for the quarter
was impacted by one-off non-cash transactions such as a write-down
associated with our investment in Ganji and share based
compensation expenses related to Ganji prior to the August 2015 transaction. Most of our operating
losses are related to new business initiatives such as 58 Home and
Guazi. Our core classifieds businesses, which includes Anjuke,
however, incurred very minor losses during the third quarter of
2015. The integration of Ganji is progressing well and we are
optimistic that profitability for our core classifieds business
will improve over the next few quarters."
Third Quarter 2015 Financial Results
58.com's financial results for the third quarter of 2015 include
the results from Anjuke and Ganji which the Company started to
consolidate since March 2015 and
early August of 2015, respectively.
Revenues
Total revenues were US$212.9
million, representing an increase of 195.9%
from US$72.0 million in the same quarter of 2014. The
increase in total revenues was primarily driven by the addition of
revenues from Ganji and Anjuke as well as the organic growth on the
58.com platform.
Membership revenues were US$88.6
million, an increase of 139.5% from US$37.0 million in the same quarter of 2014.The
increase in membership revenues was primarily driven by an increase
in the number of paying merchant members. The number of paying
merchant members on the original 58.com platform during the third
quarter of 2015 was approximately 893,000, an increase of 59.5%
from 560,000 in the same quarter of 2014.In addition, Ganji and
Anjuke jointly had more than 700,000 paying merchant members in the
third quarter of 2015. Paying merchant members refer to the
merchants who have purchased the Company's subscription based
membership services and whose membership subscriptions are active
at any point during a given period.
Online marketing services revenues were US$116.1 million, an increase of 232.9% from
US$34.9 million in the same quarter
of 2014. The increase was primarily driven by increased revenue
from Ganji and Anjuke as well as organic growth of the original
58.com platform. Online marketing services revenues generated from
the original 58.com platform continued to grow very rapidly and was
primarily attributable to an increase in user traffic and the
effectiveness of the Company's online marketing services,
particularly with respect to growth in the Company's bidding
services.
Cost of Revenues
Cost of revenues was US$14.5
million, an increase of 325.1% from US$3.4 million during the same quarter of
2014.The increase was primarily driven by in creased costs
associated with the addition of Ganji and Anjuke as well as the
Company's organic growth. The year-over-year increase in the
original 58.com platform's cost of revenues was primarily driven by
the increase in Short Message Service ("SMS") costs, bandwidth fees
and depreciation expenses.
Gross Profit and Gross Margin
Gross profit was US$198.5 million,
an increase of 189.5% from US$68.6
million during the same quarter of 2014.
Gross margin was 93.2%, compared with 95.3% during the same
quarter of 2014.
Operating Expenses
Operating expenses were US$283.7
million, representing an increase of 333.1% from
US$65.5 million in the same quarter
of 2014. The increase was a result of increased operating expenses
associated with the addition of Ganji and Anjuke. Operating
expenses associated with new transaction businesses such as 58 Home
and Guazi used car platforms also increased significantly in the
third quarter of 2015 from an immaterial amount in the third
quarter of 2014.
Sales and marketing expenses in the third quarter of 2015 were
US$209.9 million, an increase of
343.7% from US$47.3 million during
the same quarter in 2014.
Within sales and marketing expenses, advertising expenses
accounted for US$82.9 million and
US$19.6 million during the third
quarter of 2015 and 2014, respectively. The increase was primarily
driven by advertising expenses associated with Ganji's core
classifieds businesses and Guazi used car platform. The Company
also increased advertising expenses associated with Anjuke during
the third quarter of 2015. The increase in advertising expenses of
the 58.com platform was primarily due to expenses associated with
the marketing of the Company's mobile platforms as well as offline
brand campaign, offset by a decrease in expenses associated with
acquisition of PC traffic.
Other sales and marketing expenses in the third quarter of 2015
were US$127.0 million, an increase of
358.7% from US$27.7 million during
the same period last year. Other sales and marketing expenses
mainly include compensation, benefits and commissions of sales,
customer services and marketing teams as well as office overhead
associated with these teams. The increase was largely attributable
to subsidies to services providers in 58 Home business. The
consolidation of Ganji's and Anjuke's sales and marketing expenses
also contributed to the increase. The increase in other sales and
marketing expenses associated with the original 58.com platform was
primarily driven by increased salaries, benefits and commissions as
a result of the increased headcount of sales and marketing
personnel since competition with Ganji began heating up in the
summer of 2014.
Research and development expenses during the third quarter of
2015 were US$38.5 million, an
increase of 197.8% year-over-year from US$12.9 million in the same quarter of 2014.The
increase was driven by an increase in research and development
expenses associated with the 58.com platform as well as those from
Ganji and Anjuke platforms. The increase associated with the 58.com
platform was primarily due to increased costs associated with the
hiring of additional research and development personnel for the
development of new features and services.
General and administrative expenses in the third quarter of 2015
were US$35.3 million, a substantial
increase from US$5.3 million in the
same quarter of 2014.The increase was primarily due to professional
fees of approximately US$18.2 million
associated with the strategic investment in Ganji. The increase was
also partially due to an increase in the number of support staff
hired to support the expansion of the Company's sales
team.
Income/(loss) from Operations
Loss from operations was US$85.3
million in the third quarter of 2015, compared with income
from operations of US$3.0 million in
the same quarter of 2014. Operating margin, defined as
income/(loss) from operations divided by total revenues, was
negative 40.1% in the third quarter of 2015, compared with positive
4.2% in the same quarter of 2014.
Non-GAAP loss from operations was US$69.9
million in the third quarter of 2015, compared with non-GAAP
income from operations of US$4.9
million in the same quarter of 2014. Non-GAAP operating
margin was negative 32.9% in the third quarter of 2015, compared
with non-GAAP operating margin of 6.8% in the same quarter of
2014.
Other Income/(expenses)
Other expenses in the third quarter of 2015 were US$127.2 million, compared with other income of
US$7.4 million in the same quarter of
2014. Other expenses in the third quarter of 2015 were mainly
composed of US$130.9 million
investment loss associated with investment in Ganji, which was
partially offset by short-term investment income of US$1.9 million.
Out of the US$130.9 million loss,
US$95.7 million was related to the
pick-up of net loss attributable to Ganji's ordinary shareholders
calculated based on the Company's common shareholding of 31.6% in
Ganji during the period between July 1 and
August 6, 2015 as a result of the investment which was
closed on April 20, 2015.Since
August 6, 2015, the Company has
consolidated Ganji and therefore the financial results of Ganji
will no longer be reflected in the financial statement line item of
"investment income/(loss), net."
The remaining US$35.2 million loss
resulted from the revaluation of the strategic investment in Ganji
made on April 20, 2015, which is the
difference between the fair value and carrying value on
August 6, 2015 of the investment in
Ganji made in April 2015.The closing price of 58.com ADSs on
April 20, 2015 was approximately of
US$70 per ADS, and was taken into
account in the measurement of the initial carrying amount of the
investment in Ganji. Subsequent to the initial measurement, the
investment balance was adjusted for the 31.6% equity loss pick-up
for the period until Ganji started to be consolidated by the
Company on August 6, 2015 when the
Company completed its investment in several private equity funds,
which together with other group of investors acquired all the
remaining stake in Ganji. Upon completion of such subsequent
investment on August 6, 2015, the
Company started to consolidate Ganji. The closing price of 58.com
ADSs on August 6, 2015, was
approximately US$57 per ADS, and was
taken into account in the remeasurement of the fair value of the
previously held equity interests in Ganji. The difference between
the fair value and carrying value on August
6, 2015 of the strategic investment in Ganji made in
April 2015 resulted in the
US$35.2 million revaluation loss.
Income Tax Benefits/(expenses)
Income tax benefits in the third quarter of 2015 were
US$1.6 million, compared with income
tax expenses of US$4.5 million in the
same quarter of 2014.
Net
Income/(loss)attributable to
58.com Inc.
Net loss attributable to 58.com Inc. was US$206.0 million
in the third quarter of 2015, compared with a net income
attributable to 58.com Inc. of US$5.9
million in the same quarter of 2014.Net margin, defined as
net income/(loss) attributable to 58.com Inc. divided by total
revenues, was negative 96.8% in the third quarter of 2015, compared
with positive 8.3% in the same quarter of 2014.
Non-GAAP net loss attributable to 58.com Inc. was US$64.8 million in the third quarter of 2015,
compared with non-GAAP net income of US$7.8
million in the same quarter of 2014. Non-GAAP net margin was
negative 30.5% in the third quarter of 2015, compared with non-GAAP
net margin of positive 10.9% in the same quarter of 2014.
Basic and Diluted Earnings/(Losses)per ADS
Basic and diluted losses per ADS attributable to ordinary
shareholders in the third quarter of 2015 were US$1.59, compared with basic and diluted earnings
per ADS attributable to ordinary shareholders of US$0.07 during the same quarter of 2014.
Non-GAAP basic and diluted losses per ADS attributable to
ordinary shareholders in the third quarter of 2015 were
US$0.50, compared with basic and
diluted earnings per ADS attributable to ordinary shareholders of
US$0.09 during the same quarter of
2014.
Cash, Cash Equivalents, Term Deposits and Short-term
Investments
As of September 30, 2015, the
Company had cash and cash equivalents, term deposits and short-term
investments of US$604.5 million.
Cash Flow
Net cash used in operating activities was US$12.0 million in the third quarter of 2015,
compared with net cash provided by operating activities of
US$30.9 million in the same quarter
of 2014.
Shares Outstanding
As of September 30, 2015, the
Company had a total of 278,441,733 ordinary shares (including
210,762,977 Class A and 67,678,756 Class B ordinary shares) issued
and outstanding.
Business Outlook
Based on the Company's current operations, total revenues for
the fourth quarter of 2015 are expected to be between
US$240 million and
US$245million, representing a year-over-year increase
of 199% to 205%. These estimates reflect the Company's current and
preliminary view, which is subject to change.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with
generally accepted accounting principles in the United States, or GAAP, this press release
presents non-GAAP income/(loss) from operations, non-GAAP operating
margin, non-GAAP net income/(loss) attributable to 58.com Inc.,
non-GAAP net margin and non-GAAP basic and diluted
earnings/(losses) per share and per ADS by excluding (i)
share-based compensation expenses of the group, net off the amount
allocated to non-controlling interests, (ii) amortization of
intangible assets resulting from business acquisitions, (iii) loss
resulted from revaluation of previously held interest in Ganji and
(iv) share-based compensation expenses included in the equity
pick-up of net loss of Ganji. The Company believes these non-GAAP
financial measures are important to help investors understand the
Company's operating and financial performance, compare business
trends among different reporting periods on a consistent basis and
assess the Company's core operating results, as they exclude
certain expenses that are not expected to result in cash
payments. The use of the above non-GAAP financial measures has
certain limitations. Share-based compensation expenses,
amortization of intangible assets resulting from business
acquisitions and their impact on share-based compensation
attributable to non controlling interests have been and will
continue to be incurred in the future and are not reflected in the
presentation of the non-GAAP financial measures, but should be
considered in the overall evaluation of the Company's results. The
Company compensates for these limitations by providing the relevant
disclosure of its (i) share-based compensation expenses of the
group, net off the amount allocated to non-controlling interests,
(ii) amortization of intangible assets resulting from business
acquisitions, (iii) loss resulted from revaluation of previously
held interest in Ganji and (iv) share-based compensation expenses
included in the equity pick-up of net loss of Ganji, which should
be considered when evaluating the Company's performance. These
non-GAAP financial measures should be considered in addition to
financial measures prepared in accordance with GAAP, but should not
be considered a substitute for, or superior to, financial measures
prepared in accordance with GAAP. Reconciliation of each of these
non-GAAP financial measures to the most directly comparable GAAP
financial measure is set forth at the end of this release.
Conference Call
58.com's management will host an earnings conference call on
Monday, November 30,
2015 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong the
same day).
Dial-in details for the earnings conference call are as
follows:
International:
|
+1-412-902-4272
|
|
|
U.S. Toll
Free:
|
+1-888-346-8982
|
|
|
Hong Kong:
|
800-905945
|
|
|
China:
|
4001-201203
|
|
|
Passcode:
|
WUBA
|
Please dial in 15 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available after the
conclusion of the conference call through 8:00 a.m. U.S.
Eastern Time, December 7, 2015. The dial-in details for the
replay are as follows:
International:
|
+1-412-317-0088
|
|
|
U.S. Toll
Free:
|
+1-877-344-7529
|
|
|
Passcode:
|
10076499
|
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of 58.com's
website at http://www.58.com.
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online marketplace serving
local merchants and consumers, as measured by monthly unique
visitors on both its www.58.com website and mobile applications.
The Company's online marketplace enables local merchants and
consumers to connect, share information and conduct business.
58.com's broad, in-depth and high quality local information,
combined with its easy-to-use website and mobile applications, has
made it a trusted marketplace for consumers. 58.com's strong brand
recognition, large and growing user base, merchant network and
massive database of local information create a powerful network
effect.
Safe Harbor Statements
This press release contains forward-looking statements made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. 58.com may also
make written or oral forward-looking statements in its reports
filed with or furnished 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. Any statements
that are not historical facts, including statements about 58.com's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: 58.com's goals and strategies; its future business
development, financial condition and results of operations; its
ability to retain and grow its user base and network of local
merchants for its online marketplace; the growth of, and trends in,
the markets for its services in China; the demand for and market acceptance of
its brand and services; competition in its industry in China; its ability to maintain the network
infrastructure necessary to operate its website and mobile
applications; relevant government policies and regulations relating
to the corporate structure, business and industry; and its ability
to protect its users' information and adequately address privacy
concerns. Further information regarding these and other risks,
uncertainties or factors is included in the Company's filings with
the U.S. Securities and Exchange Commission. All information
provided in this press release is current as of the date of the
press release, and 58.com does not undertake any obligation to
update such information, except as required under applicable
law.
For more information, please contact:
58.com Inc.
ir@58.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
58.com Inc
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in
thousands, except share and per share data, unless otherwise
noted)
|
|
|
As
of
|
|
December
31,
2014
|
September
30,
2015
|
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
111,376
|
443,018
|
Restricted
cash
|
1,314
|
1,828
|
Term
deposits
|
281,513
|
3,690
|
Short-term
investments
|
216,146
|
157,814
|
Accounts receivable,
net
|
6,282
|
48,230
|
Prepayments and other
current assets
|
24,131
|
88,242
|
Total current
assets
|
640,762
|
742,822
|
Non-current
assets:
|
|
|
Property and
equipment, net
|
17,899
|
41,666
|
Intangible assets,
net
|
460
|
299,059
|
Construction in
progress
|
—
|
21,998
|
Land use rights,
net
|
—
|
2,214
|
Goodwill
|
—
|
2,857,218
|
Long-term
investments
|
23,784
|
91,071
|
Long-term prepayments
and other non-current assets
|
21,027
|
102,366
|
Total non-current
assets
|
63,170
|
3,415,592
|
Total
assets
|
703,932
|
4,158,414
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
Short-term
loan
|
—
|
400,000
|
Accounts
payable
|
16,029
|
86,760
|
Deferred
revenues
|
95,336
|
205,943
|
Customer advances and
deposits
|
35,983
|
133,085
|
Taxes
payable
|
7,392
|
5,420
|
Salary and welfare
payable
|
28,804
|
73,113
|
Accrued expenses and
other current liabilities
|
13,071
|
366,539
|
Total current
liabilities
|
196,615
|
1,270,860
|
Non-current
liabilities:
|
|
|
Deferred tax
liabilities
|
—
|
73,001
|
Other non-current
liabilities
|
—
|
3,919
|
Total non-current
liabilities
|
—
|
76,920
|
Total
liabilities
|
196,615
|
1,347,780
|
Commitments and
contingencies
|
|
|
Mezzanine
equity:
|
|
|
Mezzanine equity -non
controlling interests
|
—
|
14,498
|
Total mezzanine
equity
|
—
|
14,498
|
Shareholders'
equity:
|
|
|
Ordinary shares
(US$0.00001 par value, 4,800,000,000 Class A and
200,000,000 Class B shares authorized, 101,574,732 Class A and
74,800,479
Class B shares issued and outstanding as of December 31, 2014
and 210,762,977 Class A and 67,678,756 Class B shares issued
and
outstanding as of September 30, 2015, respectively)
|
2
|
3
|
Additional paid-in
capital
|
624,381
|
3,209,211
|
Accumulated
deficit
|
(115,775)
|
(400,702)
|
Accumulated other
comprehensive income/(loss)
|
(1,291)
|
(3,653)
|
Total shareholders'
equity
|
507,317
|
2,804,859
|
Non controlling
interests
|
—
|
(8,723)
|
Total
equity
|
507,317
|
2,796,136
|
Total liabilities,
mezzanine equity and equity
|
703,932
|
4,158,414
|
58.com Inc
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
|
(U.S. dollars in
thousands, except share, per share and per ADS data, unless
otherwise noted)
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September
30,
2014
|
June
30,
2015
|
September
30,
2015
|
|
September
30,
2014
|
September
30,
2015
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Membership
|
37,011
|
65,491
|
88,649
|
|
99,651
|
196,249
|
Online marketing
services
|
34,868
|
89,233
|
116,071
|
|
84,709
|
249,616
|
E-commerce
services
|
—
|
4,653
|
6,614
|
|
—
|
11,536
|
Other
services
|
80
|
154
|
1,610
|
|
398
|
2,155
|
Total
revenues
|
71,959
|
159,531
|
212,944
|
|
184,758
|
459,556
|
Cost of
revenues(1)
|
3,408
|
10,084
|
14,488
|
|
9,240
|
30,557
|
Gross
profit
|
68,551
|
149,447
|
198,456
|
|
175,518
|
428,999
|
Operating
expenses(1):
|
|
|
|
|
|
|
Sales and marketing
expenses
|
47,302
|
135,060
|
209,885
|
|
119,702
|
459,110
|
Research and
development expenses
|
12,943
|
24,810
|
38,544
|
|
30,199
|
79,560
|
General and
administrative expenses
|
5,262
|
25,401
|
35,314
|
|
13,606
|
69,275
|
Total operating
expenses
|
65,507
|
185,271
|
283,743
|
|
163,507
|
607,945
|
Income/(loss) from
operations
|
3,044
|
(35,824)
|
(85,287)
|
|
12,011
|
(178,946)
|
Other
income/(expenses):
|
|
|
|
|
|
|
Interest
income
|
2,671
|
680
|
(1,982)
|
|
5,999
|
85
|
Investment
income/(loss), net
|
3,111
|
(5,283)
|
(129,082)
|
|
5,903
|
(131,597)
|
Foreign currency
exchange income/(loss), net
|
680
|
332
|
(769)
|
|
(2,461)
|
(449)
|
Others, net
|
930
|
3,161
|
4,616
|
|
4,495
|
8,125
|
Income/(loss)
before tax
|
10,436
|
(36,934)
|
(212,504)
|
|
25,947
|
(302,782)
|
Income tax
benefits/(expenses)
|
(4,495)
|
6,623
|
1,604
|
|
(6,511)
|
8,227
|
Net
income/(loss)
|
5,941
|
(30,311)
|
(210,900)
|
|
19,436
|
(294,555)
|
Add: Net loss
attributable to non controlling interests
|
—
|
3,417
|
5,233
|
|
—
|
9,628
|
Accretions to mezzanine equity shareholders
|
—
|
—
|
(358)
|
|
—
|
(358)
|
Net income/(loss)
attributable to 58.com Inc
|
5,941
|
(26,894)
|
(206,025)
|
|
19,436
|
(285,285)
|
Net
income/(loss)
|
5,941
|
(30,311)
|
(210,900)
|
|
19,436
|
(294,555)
|
Foreign currency
translation adjustment, net of nil tax
|
35
|
421
|
(1,428)
|
|
(90)
|
(1,523)
|
Unrealized
gain/(loss) on available-for-sale securities
|
—
|
4,074
|
(3,676)
|
|
—
|
(639)
|
Total comprehensive
income/(loss)
|
5,976
|
(25,816)
|
(216,004)
|
|
19,346
|
(296,717)
|
Net income/(loss) per
ordinary share attributable to ordinary
shareholders ‑ basic
|
0.03
|
(0.12)
|
(0.79)
|
|
0.12
|
(1.42)
|
Net income/(loss) per
ordinary share attributable to ordinary
shareholders ‑ diluted
|
0.03
|
(0.12)
|
(0.79)
|
|
0.11
|
(1.42)
|
Net income/(loss) per
ADS – basic (1 ADS represents 2 Class A
ordinary shares)
|
0.07
|
(0.24)
|
(1.59)
|
|
0.23
|
(2.83)
|
Net income/(loss) per
ADS – diluted (1 ADS represents 2 Class A
ordinary shares)
|
0.07
|
(0.24)
|
(1.59)
|
|
0.23
|
(2.83)
|
Weighted average
number of ordinary shares used in computing
basic earnings/(losses) per share
|
175,436,892
|
220,896,728
|
259,763,592
|
|
166,113,598
|
201,270,404
|
Weighted average
number of ordinary shares used in computing
diluted earnings/(losses) per share
|
181,329,119
|
220,896,728
|
259,763,592
|
|
172,089,061
|
201,270,404
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
(1) Share‑based
compensation expenses were allocated in cost of revenues and
operating expenses as follows:
|
|
|
|
|
|
|
|
Cost of
revenues
|
(1)
|
21
|
42
|
|
10
|
86
|
Sales and marketing
expenses
|
481
|
1,101
|
2,444
|
|
814
|
4,338
|
Research and
development expenses
|
828
|
1,497
|
2,990
|
|
1,695
|
5,503
|
General and
administrative expenses
|
569
|
1,276
|
3,102
|
|
1,647
|
6,763
|
58.com Inc
|
Reconciliation of
GAAP and Non-GAAP Results
|
(U.S. dollars in
thousands, except share, ADS, per share and per ADS data,unless
otherwise noted)
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September
30,
2014
|
June
30,
2015
|
September
30,
2015
|
|
September
30,
2014
|
September
30,
2015
|
|
|
|
|
|
|
|
GAAP income/(loss)
from operations
|
3,044
|
(35,824)
|
(85,287)
|
|
12,011
|
(178,946)
|
Share-based
compensation expenses
|
1,877
|
3,895
|
8,578
|
|
4,166
|
16,690
|
Amortization of
intangible assets resulting from business acquisitions
|
—
|
1,656
|
6,813
|
|
—
|
8,969
|
Non-GAAP
income/(loss) from operations
|
4,921
|
(30,273)
|
(69,896)
|
|
16,177
|
(153,287)
|
|
|
|
|
|
|
|
GAAP net
income/(loss) attributable to 58.com Inc
|
5,941
|
(26,894)
|
(206,025)
|
|
19,436
|
(285,285)
|
Share-based
compensation expenses
|
1,877
|
3,895
|
8,578
|
|
4,166
|
16,690
|
Share-based
compensation attributable to non-controlling interests
|
—
|
(53)
|
(9)
|
|
—
|
(229)
|
Amortization of
intangible assets resulting from business acquisitions
|
—
|
1,656
|
6,813
|
|
—
|
8,969
|
Revaluation loss of
strategic investment in Ganji
|
—
|
—
|
35,217
|
|
—
|
35,217
|
Pick-up of net loss
attributable to share-based compensation expense of
Ganji
|
—
|
551
|
90,621
|
|
—
|
91,172
|
Non-GAAP net
income/(loss) attributable to 58.com Inc
|
7,818
|
(20,845)
|
(64,805)
|
|
23,602
|
(133,466)
|
|
|
|
|
|
|
|
GAAP operating
margin
|
4.2%
|
(22.5)%
|
(40.1)%
|
|
6.5%
|
(38.9)%
|
Share-based
compensation expenses
|
2.6%
|
2.5%
|
4.0%
|
|
2.3%
|
3.6%
|
Amortization of
intangible assets resulting from business acquisitions
|
—
|
1.0%
|
3.2%
|
|
—
|
2.0%
|
Non-GAAP operating
margin
|
6.8%
|
(19.0)%
|
(32.9)%
|
|
8.8%
|
(33.3)%
|
|
|
|
|
|
|
|
GAAP net
margin
|
8.3%
|
(16.9)%
|
(96.8)%
|
|
10.5%
|
(62.1)%
|
Share-based
compensation expenses
|
2.6%
|
2.5%
|
4.0%
|
|
2.3%
|
3.6%
|
Share-based
compensation attributable to non-controlling interests
|
—
|
0.0%
|
0.0%
|
|
—
|
0.0%
|
Amortization of
intangible assets resulting from business acquisitions
|
—
|
1.0%
|
3.2%
|
|
—
|
2.0%
|
Revaluation loss of
strategic investment in Ganji
|
—
|
—
|
16.5%
|
|
—
|
7.7%
|
Pick-up of net loss
attributable to share-based compensation expense of
Ganji
|
—
|
0.3%
|
42.6%
|
|
—
|
19.8%
|
Non-GAAP net
margin
|
10.9%
|
(13.1)%
|
(30.5)%
|
|
12.8%
|
(29.0)%
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing non-GAAP basic earnings
per share
|
175,436,892
|
220,896,728
|
259,763,592
|
|
166,113,598
|
201,270,404
|
Weighted average
number of ordinary shares used in computing non-GAAP diluted
earnings per share
|
181,329,119
|
220,896,728
|
259,763,592
|
|
172,089,061
|
201,270,404
|
|
|
|
|
|
|
|
Weighted average
number of ADS used in computing non-GAAP basic earnings per
ADS
|
87,718,446
|
110,448,364
|
129,881,796
|
|
83,056,799
|
100,635,202
|
Weighted average
number of ADS used in computing non-GAAP diluted earnings per
ADS
|
90,664,560
|
110,448,364
|
129,881,796
|
|
86,044,531
|
100,635,202
|
|
|
|
|
|
|
|
Non-GAAP net
income/(loss) per ordinary share ‑ basic
|
0.04
|
(0.09)
|
(0.25)
|
|
0.14
|
(0.66)
|
Non-GAAP net
income/(loss) per ordinary share ‑ diluted
|
0.04
|
(0.09)
|
(0.25)
|
|
0.14
|
(0.66)
|
|
|
|
|
|
|
|
Non-GAAP net
income/(loss) per ADS ‑ basic
|
0.09
|
(0.19)
|
(0.50)
|
|
0.28
|
(1.33)
|
Non-GAAP net
income/(loss) per ADS ‑ diluted
|
0.09
|
(0.19)
|
(0.50)
|
|
0.27
|
(1.33)
|
1Non-GAAP income/(loss) from operations is defined as
income/(loss) from operations excluding share-based compensation
expenses and amortization of intangible assets resulting from
business acquisitions.
2Non-GAAP net income/(loss) attributable to 58.com
Inc. is defined as net income/(loss) attributable to 58.com Inc.
excluding (i) share-based compensation expenses of the group, net
off the amount allocated to non-controlling interests, (ii)
amortization of intangible assets resulting from business
acquisitions, (iii) loss resulted from revaluation of previously
held interest in Ganji and (iv) share-based compensation expenses
included in the equity pick-up of net loss of Ganji.
3Non-GAAP basic and diluted earnings/(losses) per ADS
is defined as non-GAAP net income/(loss) attributable to 58.com
Inc.divided by weighted average number of basic and diluted
ADS.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/58com-reports-third-quarter-2015-unaudited-financial-results-300185062.html
SOURCE 58.com