BEIJING, Aug. 8, 2011 /PRNewswire-Asia/ --
Youku.com Inc. (NYSE: YOKU), China's leading Internet television company
("Youku" or the "Company"), today announced its unaudited financial
results for the second quarter ended June
30, 2011.
Second Quarter 2011
Highlights (1)
- Net revenues were RMB197.8
million (US$30.6 million), a
178% increase from the corresponding period in 2010.(2)
- Gross profit was RMB52.9 million
(US$8.2 million), compared to a gross
loss of RMB11.5 million (US$1.8 million) for the corresponding period in
2010.
- Net loss was RMB28.1 million
(US$4.3 million), a 55% decrease
relative to the corresponding period in 2010.
- Adjusted EBITDA loss (non-GAAP financial measure) was
RMB10.1 million (US$1.6 million), compared to an adjusted EBITDA
loss of RMB44.3 million (US$6.9 million) for the corresponding period in
2010, or a 77% improvement relative to the corresponding period in
2010.
(1) The reporting currency of
the Company is Renminbi ("RMB"), but for the convenience of the
reader, the amounts presented throughout the release are in US
dollars ("US$"). Unless otherwise noted, all conversions from RMB
to US$ are made at a rate of RMB6.4635 to US$1.00, the effective
noon buying rate as of June 30, 2011 in the City of New York for
cable transfers of RMB as certified for customs purposes by the
Federal Reserve Bank of New York. No representation is made that
the RMB amounts could have been, or could be, converted into US$ at
such rate.
|
|
(2) The Company's net revenues
are presented net of commissions earned by third-party advertising
agencies, which amounted to RMB43.4 million (US$6.7 million) in the
second quarter of 2011 and RMB15.6 million (US$2.4 million) in the
corresponding period in 2010.
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|
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"Strong traffic growth, heightened brand preference and strong
execution by the team resulted in another solid quarter of revenue
growth for Youku," said Victor Koo,
Chairman and Chief Executive Officer of Youku. "We remain focused
on enhancing user experience and, as a result, we are driving a
virtuous cycle of self-reinforcing growth where factors such as
higher revenue, more aggressive investment in content and
technology, and growing user traffic strengthen each other. This
virtuous cycle continues to expand our leadership position in the
Internet television space in China. We have never been more confident about
our long term potential," Mr. Koo added.
Dele Liu, Senior Vice President and Chief Financial Officer of
Youku, commented, "We are excited to see continued top line growth
and improved economics. Comprehensive content library, high
streaming speed, and economies of scale are driving our growth. The
recent follow-on offering gives us a stronger balance sheet to help
the Company invest more in our future growth."
Second Quarter 2011 Results
Net revenues were RMB197.8
million (US$30.6 million) in
the second quarter of 2011, representing a 178% increase from the
corresponding period in 2010 and exceeding the high end of the
revenue guidance previously announced by the Company by 18%. The
significant increase in net revenues was mainly due to the strong
performance of brand advertising revenues, which amounted to
RMB190.0 million (US$29.4 million) in the second quarter of 2011,
representing a 181% increase from the corresponding period in 2010.
This growth was primarily attributable to the increased average
revenue per advertiser and increased number of advertisers.
Bandwidth costs as a component of cost of revenues were
RMB66.3 million (US$10.3 million) in the second quarter of 2011,
representing 33% of net revenues, down from 65% in the
corresponding period in 2010.
Content costs as a component of cost of revenues were
RMB49.5 million (US$7.7 million) in the second quarter of 2011,
representing 25% of net revenues in the same period, compared to
26% in the corresponding period in 2010. Based on a new quarter of
traffic data of TV serial dramas, we have adjusted our accounting
estimates regarding the pattern of the benefits that we derive from
our licensed TV serial dramas, resulting in a larger extent of
amortization of costs on an accelerated basis. Of the RMB49.5 million (US$7.7
million) content costs, RMB43.2
million (US$6.7 million), or
22% of net revenues, was incurred in the second quarter of 2011
using the newly adjusted amortization estimates and RMB6.3 million (US$1.0
million), or 3% of net revenues, relates to the adjustment
to the accumulated amortization of TV serial dramas acquired prior
to second quarter 2011 using the new amortization estimates of TV
serial dramas. If the Company had continued using the accounting
estimates adopted in the first quarter of 2011 for amortizing
content costs, RMB40.2 million
(US$6.2 million), or 20% of net
revenues, would have been recorded in the second quarter of
2011.
Gross profit was RMB52.9
million (US$8.2 million) in
the second quarter of 2011, compared to a gross loss of
RMB11.5 million (US$1.8 million) for the corresponding period in
2010. The significant increase in gross profit was mainly due to
increased revenues from brand advertising services and was
partially offset by an increased cost of revenues as described in
the preceding paragraphs pertaining to bandwidth and content
costs.
Operating expenses were RMB80.7
million (US$12.5 million) in
the second quarter of 2011, an increase of 76% compared to
RMB45.9 million (US$7.1 million) in the corresponding period in
2010. The increase was primarily due to increases in all of the
operating expense line items as a result of the substantial growth
of our business.
Operating loss was RMB27.8
million (US$4.3 million) in
the second quarter of 2011, representing a 52% decrease relative to
the corresponding period in 2010. The improvement was mainly due to
the significant increase in gross profit as noted above.
Net loss was RMB28.1
million (US$4.3 million) in
the second quarter of 2011, representing a 55% decrease relative to
the corresponding period in 2010. Basic and diluted loss per ADS,
each ADS representing 18 of our Class A ordinary shares, for the
second quarter of 2011 amounted to RMB0.26 (US$0.04)
and RMB0.26 (US$0.04), respectively.
Adjusted net loss (non-GAAP financial measure), which is
herein defined as net loss excluding share-based compensation
expenses and change in fair value of warrant liability, was
RMB20.8 million (US$3.2 million) in the second quarter of 2011, or
a decrease of 63% relative to corresponding period in 2010.
Adjusted EBITDA loss (non-GAAP financial measure), which
is herein defined as net loss before income taxes, interest
expenses, interest income, depreciation and amortization (excluding
amortization of acquired content), further adjusted for change in
fair value of warrant liability, share-based compensation expenses
and other non-operating items, was RMB10.1
million (US$1.6 million) for
the second quarter of 2011, or a decrease of 77% relative to the
corresponding period in 2010. Excluding the current quarter true-up
charge relating to the estimations in content amortization, the
adjusted EBITDA loss would be RMB0.8
million (US$0.12 million).
Business Outlook
For the third quarter of 2011, the Company expects year-on-year
growth in net revenues of 110% to 120%. This forecast reflects the
Company's current and preliminary view, which is subject to
change.
Conference Call Information
Youku's management will host an earnings conference call at
9:00 p.m. U.S. Eastern Time on
August 8, 2011 (9:00 a.m. Beijing/Hong Kong Time on August 9, 2011).
Interested parties may participate in the conference call by
dialing one of the following numbers below and entering passcode
Youku# (i.e., 96858#) starting 10-15 minutes prior to the beginning
of the call.
US Toll Free Dial In:
|
1-866-700-6293
|
|
US Toll / International Dial
In:
|
1-617-213-8835
|
|
China Toll:
|
86-400-881-1629/30
|
|
China (Telecom) Toll
Free:
|
10-800-130-0399/120-2655
|
|
Hong Kong Toll / International
Dial In:
|
852-3002-1672
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|
A replay of the call will be available by dialing 1-888-286-8010
(international 1-617-801-6888), and entering passcode 41011255#.
The replay will be available through August
19, 2011.
This call will be webcast live and the replay will be available
for 12 months. Both will be available on the Investor Relations
section of Youku's corporate website at http://ir.youku.com.
Filing of Annual Report on Form 20-F
On June 10, 2011, the Company
filed its annual report on Form 20-F that includes its audited
financial statements for three years ended December 31, 2010 with the Securities and
Exchange Commission. The annual report is available on the
Company's website at http://ir.youku.com. Holders of the Company's
securities may request a hard copy of the Company's annual report
free of charge.
About Youku
Youku.com Inc. is China's
leading Internet television company. Our Internet television
platform enables users to search, view and share high-quality video
content quickly and easily across multiple devices. Youku, which
stands for "what's best and what's cool" in Chinese, is the most
recognized online video brand in China. Youku's American
depositary shares, each representing 18 of our Class A ordinary
shares, are traded on NYSE under the symbol "YOKU".
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are 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" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Youku's strategic and operational plans,
contain forward-looking statements. Youku may also make written or
oral forward-looking statements in its filings with the U.S.
Securities and Exchange Commission ("SEC"), 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 Youku's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: our goals and strategies; our future business
development, financial condition and results of operations; the
expected growth of the online video market in China; our expectations regarding demand for
and market acceptance of our services; our expectations regarding
the retention and strengthening of our relationships with key
advertisers and customers; our plans to enhance user experience,
infrastructure and service offerings; competition in our industry
in China; and relevant government
policies and regulations relating to our industry. Further
information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with the SEC.
All information provided in this press release and in the
attachments is as of the date of this press release, and Youku does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Youku's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Youku uses the following measures defined as
non-GAAP financial measures by the SEC in evaluating its business:
adjusted net loss and adjusted EBITDA loss. We define
adjusted net loss as net loss excluding share-based compensation
expenses and change in fair value of warrant liability. We define
adjusted EBITDA loss as net income or loss before income taxes,
interest expenses, interest income, depreciation and amortization
(excluding amortization of acquired content), further adjusted for
change in fair value of warrant liability, share-based compensation
expenses and other non-operating items. We present non-GAAP
financial measures because they are used by our management to
evaluate our operating performance. We also believe that these
non-GAAP financial measures provide useful information to investors
and others in understanding and evaluating our consolidated results
of operations in the same manner as our management and in comparing
financial results across accounting periods and to those of our
peer companies.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from, or as a substitute
for, the financial information prepared and presented in accordance
with GAAP. For more information on these non-GAAP financial
measures, please see the table captioned "Reconciliations of
non-GAAP results of operations measures to the nearest comparable
GAAP financial measures" at the end of this release.
For more information, please
contact:
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Investor
Relations:
|
|
|
|
Ryan Cheung
|
|
Corporate Finance
Director
|
|
Youku.com Inc.
|
|
Tel: (+8610) 5885-1881
x6090
|
|
Email: ryan.cheung@youku.com
|
|
|
|
Caroline Straathof
|
|
IR Inside
|
|
Tel: (+31) 6-54624301
|
|
Email: caroline.straathof@irinside.com
|
|
|
YOUKU.COM INC.
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(Amounts in thousands, except for number of shares and ADS and per share and per ADS data)
|
|
|
|
December 31,
|
|
June 30
|
|
June 30
|
|
|
|
|
2010
|
|
2011
|
|
2011
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
ASSETS
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,811,423
|
|
2,806,562
|
|
434,217
|
|
|
Short-term
investments
|
|
-
|
|
1,231,620
|
|
190,550
|
|
|
Accounts receivable,
net
|
|
216,245
|
|
278,644
|
|
43,110
|
|
|
Intangible assets
|
|
10,230
|
|
14,171
|
|
2,192
|
|
|
Prepayments and other
assets
|
|
25,187
|
|
10,226
|
|
1,583
|
|
Total current
assets
|
|
2,063,085
|
|
4,341,223
|
|
671,652
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
64,177
|
|
74,216
|
|
11,482
|
|
|
Intangible assets
|
|
57,550
|
|
84,067
|
|
13,006
|
|
|
Capitalized content production
costs
|
|
-
|
|
1,349
|
|
209
|
|
|
Prepayments and other
assets
|
|
5,356
|
|
117,229
|
|
18,137
|
|
Total non-current
assets
|
|
127,083
|
|
276,861
|
|
42,834
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
2,190,168
|
|
4,618,084
|
|
714,486
|
|
|
|
|
|
|
|
|
|
|
LIABIILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
35,641
|
|
44,824
|
|
6,935
|
|
|
Advances from
customers
|
|
1,304
|
|
724
|
|
112
|
|
|
Accrued expenses and other
liabilities
|
|
201,100
|
|
224,890
|
|
34,793
|
|
|
Current portion of long-term
debt
|
|
22,180
|
|
12,502
|
|
1,934
|
|
Total current
liabilities
|
|
260,225
|
|
282,940
|
|
43,774
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
18,455
|
|
13,133
|
|
2,032
|
|
Total non-current
liabilities
|
|
18,455
|
|
13,133
|
|
2,032
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
278,680
|
|
296,073
|
|
45,806
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Class A Ordinary Shares
(US$0.00001 par value, 9,340,238,793
authorized, 1,235,761,996 and
1,390,732,569 issued and
outstanding as of December 31,
2010 and June 30, 2011,
respectively)
|
|
82
|
|
92
|
|
14
|
|
|
Class B Ordinary Shares
(US$0.00001 par value, 659,761,207
authorized, 659,761,207 issued
and outstanding as of
December 31, 2010 and June 30,
2011)
|
|
49
|
|
49
|
|
8
|
|
|
Additional paid-in
capital
|
|
2,625,250
|
|
5,147,317
|
|
796,367
|
|
|
Accumulated deficit
|
|
(699,540)
|
|
(774,556)
|
|
(119,835)
|
|
|
Accumulated other comprehensive
loss
|
|
(14,353)
|
|
(50,891)
|
|
(7,874)
|
|
Total shareholders'
equity
|
|
1,911,488
|
|
4,322,011
|
|
668,680
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
2,190,168
|
|
4,618,084
|
|
714,486
|
|
|
|
|
|
|
|
|
|
YOUKU.COM INC.
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
(Amounts in thousands, except
for number of shares and ADS and per share and per ADS
data)
|
|
|
|
For the Three Months Ended,
|
|
For the Six Months Ended,
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
2011
|
|
2011
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
71,203
|
|
127,991
|
|
197,853
|
|
30,611
|
|
119,816
|
|
325,844
|
|
50,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (Note 1)
|
|
(82,738)
|
|
(113,971)
|
|
(144,945)
|
|
(22,425)
|
|
(149,665)
|
|
(258,916)
|
|
(40,058)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross (loss) profit
|
|
(11,535)
|
|
14,020
|
|
52,908
|
|
8,186
|
|
(29,849)
|
|
66,928
|
|
10,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
|
|
(6,702)
|
|
(10,594)
|
|
(14,192)
|
|
(2,196)
|
|
(12,436)
|
|
(24,786)
|
|
(3,835)
|
|
Sales and marketing
|
|
(32,786)
|
|
(36,669)
|
|
(52,732)
|
|
(8,158)
|
|
(52,988)
|
|
(89,401)
|
|
(13,832)
|
|
General and administrative
|
|
(6,378)
|
|
(12,574)
|
|
(13,759)
|
|
(2,129)
|
|
(11,474)
|
|
(26,333)
|
|
(4,074)
|
|
Total operating expenses
|
|
(45,866)
|
|
(59,837)
|
|
(80,683)
|
|
(12,483)
|
|
(76,898)
|
|
(140,520)
|
|
(21,741)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
(57,401)
|
|
(45,817)
|
|
(27,775)
|
|
(4,297)
|
|
(106,747)
|
|
(73,592)
|
|
(11,387)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
584
|
|
1,056
|
|
3,190
|
|
494
|
|
803
|
|
4,246
|
|
657
|
|
Interest expenses
|
|
(1,043)
|
|
(2,155)
|
|
(1,801)
|
|
(279)
|
|
(2,446)
|
|
(3,956)
|
|
(612)
|
|
Change in fair value of warrant liability
|
|
(4,808)
|
|
-
|
|
-
|
|
-
|
|
(5,556)
|
|
-
|
|
-
|
|
Other, net
|
|
30
|
|
-
|
|
(1,714)
|
|
(265)
|
|
107
|
|
(1,714)
|
|
(265)
|
|
Total other income (expenses), net
|
|
(5,237)
|
|
(1,099)
|
|
(325)
|
|
(50)
|
|
(7,092)
|
|
(1,424)
|
|
(220)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
(62,638)
|
|
(46,916)
|
|
(28,100)
|
|
(4,347)
|
|
(113,839)
|
|
(75,016)
|
|
(11,607)
|
|
Income taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(62,638)
|
|
(46,916)
|
|
(28,100)
|
|
(4,347)
|
|
(113,839)
|
|
(75,016)
|
|
(11,607)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted
|
|
(0.17)
|
|
(0.02)
|
|
(0.01)
|
|
*
|
|
(0.31)
|
|
(0.04)
|
|
(0.01)
|
|
Net loss per ADS, basic and diluted
|
|
(3.08)
|
|
(0.45)
|
|
(0.26)
|
|
(0.04)
|
|
(5.60)
|
|
(0.70)
|
|
(0.11)
|
|
Shares used in computation, basic and diluted
|
|
365,664,581
|
|
1,896,366,490
|
|
1,966,651,063
|
|
1,966,651,063
|
|
365,648,331
|
|
1,931,702,933
|
|
1,931,702,933
|
|
ADS used in computation, basic and diluted
|
|
20,314,698
|
|
105,353,694
|
|
109,258,392
|
|
109,258,392
|
|
20,313,796
|
|
107,316,829
|
|
107,316,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an
integral part of the press release
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1. Cost of Revenues
|
For the Three Months Ended,
|
|
For the Six Months Ended,
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
2010
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
2011
|
|
2011
|
|
(Amounts in thousands)
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cost of revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business tax and surcharges
|
(8,375)
|
|
(12,392)
|
|
(20,241)
|
|
(3,131)
|
|
(13,441)
|
|
(32,633)
|
|
(5,049)
|
|
Bandwidth costs
|
(45,985)
|
|
(56,325)
|
|
(66,251)
|
|
(10,250)
|
|
(89,783)
|
|
(122,576)
|
|
(18,964)
|
|
Depreciation of servers and other equipment
|
(9,950)
|
|
(9,112)
|
|
(8,919)
|
|
(1,380)
|
|
(19,692)
|
|
(18,031)
|
|
(2,790)
|
|
Content costs
|
(18,428)
|
|
(36,142)
|
|
(49,534)
|
|
(7,664)
|
|
(26,749)
|
|
(85,676)
|
|
(13,255)
|
|
Total Cost of Revenues
|
(82,738)
|
|
(113,971)
|
|
(144,945)
|
|
(22,425)
|
|
(149,665)
|
|
(258,916)
|
|
(40,058)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YOUKU.COM INC.
|
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
(Amounts in thousands, except
for number of shares and ADS and per share and per ADS
data)
|
|
|
|
|
|
For the Three Months Ended,
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
2010
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(62,638)
|
|
(46,916)
|
|
(28,100)
|
|
(4,347)
|
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
11,034
|
|
10,525
|
|
10,358
|
|
1,603
|
|
|
Bad debt expense
|
|
|
379
|
|
732
|
|
(279)
|
|
(43)
|
|
|
Amortization of intangible
assets and self produced contents
|
|
|
10,229
|
|
26,523
|
|
35,390
|
|
5,475
|
|
|
Accretion of long-term debt
discounts
|
|
|
176
|
|
1,017
|
|
923
|
|
143
|
|
|
Gain on disposal of
property and equipment
|
|
|
-
|
|
-
|
|
(7)
|
|
(1)
|
|
|
Foreign exchange loss
|
|
|
-
|
|
-
|
|
1,644
|
|
254
|
|
|
Share-based
compensation
|
|
|
2,095
|
|
5,374
|
|
7,278
|
|
1,126
|
|
|
Change in fair value of warrant
liability
|
|
|
4,808
|
|
-
|
|
-
|
|
-
|
|
|
Change in operating assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(41,986)
|
|
23,261
|
|
(86,113)
|
|
(13,323)
|
|
|
Prepayments and other assets
|
|
|
(3,862)
|
|
(2,965)
|
|
(4,776)
|
|
(739)
|
|
|
Capitalized content production costs
|
|
|
-
|
|
(123)
|
|
(1,745)
|
|
(270)
|
|
|
Accounts payable
|
|
|
4,403
|
|
250
|
|
(502)
|
|
(78)
|
|
|
Advances from customers
|
|
|
854
|
|
875
|
|
(1,455)
|
|
(225)
|
|
|
Accrued expenses and other liabilities
|
|
|
27,771
|
|
(29,935)
|
|
62,204
|
|
9,624
|
|
Net cash used in operating activities
|
|
|
(46,737)
|
|
(11,382)
|
|
(5,180)
|
|
(801)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and
equipment
|
|
|
(5,457)
|
|
(13,474)
|
|
(18,878)
|
|
(2,921)
|
|
|
Deposit for acquisition of
equity interest
|
|
|
(1,707)
|
|
-
|
|
-
|
|
-
|
|
|
Purchase of short-term
investments
|
|
|
-
|
|
(65,059)
|
|
(1,164,888)
|
|
(180,226)
|
|
|
Proceeds from disposal of
property and equipment
|
|
|
-
|
|
-
|
|
8
|
|
1
|
|
|
Acquisition of intangible
assets
|
|
|
(26,387)
|
|
(41,678)
|
|
(144,156)
|
|
(22,303)
|
|
Net cash used in investing activities
|
|
|
(33,551)
|
|
(120,211)
|
|
(1,327,914)
|
|
(205,449)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of employee stock
options
|
|
|
31
|
|
-
|
|
1,025
|
|
159
|
|
|
Principal repayments on
long-term debt
|
|
|
(6,106)
|
|
(9,366)
|
|
(7,406)
|
|
(1,146)
|
|
|
Debt commitment fee
paid
|
|
|
(272)
|
|
-
|
|
-
|
|
-
|
|
|
Reimbursement of issuance costs
from third parties, net
|
|
|
-
|
|
4,781
|
|
-
|
|
-
|
|
|
Proceeds from follow-on
offering, net of issuance costs
|
|
|
-
|
|
-
|
|
2,508,974
|
|
388,176
|
|
Net cash (used in) provided by financing activities
|
|
|
(6,347)
|
|
(4,585)
|
|
2,502,593
|
|
387,189
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(76)
|
|
(15,380)
|
|
(22,802)
|
|
(3,528)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(86,711)
|
|
(151,558)
|
|
1,146,697
|
|
177,411
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
198,035
|
|
1,811,423
|
|
1,659,865
|
|
256,806
|
|
Cash and cash equivalents at the end of the period
|
|
|
111,324
|
|
1,659,865
|
|
2,806,562
|
|
434,217
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Non-GAAP
results of operations measures to the nearest comparable GAAP
financial measures (*) (Amounts in thousands of Renminbi ("RMB")
and U.S. dollars ("US$"),unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Adjusted Net Loss
|
|
|
For the Three Months Ended,
|
|
For the Six Months Ended,
|
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2010
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
2011
|
|
2011
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Net loss
|
|
|
(62,638)
|
|
(46,916)
|
|
(28,100)
|
|
(4,347)
|
|
(113,839)
|
|
(75,016)
|
|
(11,607)
|
|
Add back: share-based compensation
|
|
|
2,095
|
|
5,374
|
|
7,278
|
|
1,126
|
|
3,959
|
|
12,652
|
|
1,957
|
|
Add back: change in warrant liability
|
|
|
4,808
|
|
-
|
|
-
|
|
-
|
|
5,556
|
|
-
|
|
-
|
|
Adjusted net loss
|
|
|
(55,735)
|
|
(41,542)
|
|
(20,822)
|
|
(3,221)
|
|
(104,324)
|
|
(62,364)
|
|
(9,650)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. Adjusted EBITDA Loss
|
|
|
For the Three Months Ended,
|
|
For the Six Months Ended,
|
|
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2010
|
|
2011
|
|
2011
|
|
2011
|
|
2010
|
|
2011
|
|
2011
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Net loss
|
|
|
(62,638)
|
|
(46,916)
|
|
(28,100)
|
|
(4,347)
|
|
(113,839)
|
|
(75,016)
|
|
(11,607)
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization (excluding
amortization of purchased content)**
|
|
|
11,034
|
|
10,540
|
|
10,373
|
|
1,605
|
|
21,542
|
|
20,913
|
|
3,236
|
|
Interest income
|
|
|
(584)
|
|
(1,056)
|
|
(3,190)
|
|
(494)
|
|
(803)
|
|
(4,246)
|
|
(657)
|
|
Interest expenses
|
|
|
1,043
|
|
2,155
|
|
1,801
|
|
279
|
|
2,446
|
|
3,956
|
|
612
|
|
Income taxes
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
EBITDA Loss
|
|
|
(51,145)
|
|
(35,277)
|
|
(19,116)
|
|
(2,957)
|
|
(90,654)
|
|
(54,393)
|
|
(8,416)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
2,095
|
|
5,374
|
|
7,278
|
|
1,126
|
|
3,959
|
|
12,652
|
|
1,957
|
|
Change in fair value of warrant liability
|
|
|
4,808
|
|
-
|
|
-
|
|
-
|
|
5,556
|
|
-
|
|
-
|
|
Others, net
|
|
|
(30)
|
|
-
|
|
1,714
|
|
265
|
|
(107)
|
|
1,714
|
|
265
|
|
Adjusted EBITDA Loss
|
|
|
(44,272)
|
|
(29,903)
|
|
(10,124)
|
|
(1,566)
|
|
(81,246)
|
|
(40,027)
|
|
(6,194)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*For more information on the
Non-GAAP financial measures, please see the section captioned
“About Non-GAAP Financial Measures” in this earnings
release.
|
|
|
**The amortization expense was
related to advertising license acquired in April 2010. The
amortization of licensed content was not included in Non-GAAP
financial measures we disclose in our annual report Form 20-F we
filed on June 10, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Youku.com Inc.