SHANGHAI, Nov. 21, 2016 /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, 2016.
Third Quarter 2016 Highlights
- Net revenues increased 21% year over year to $274.9 million. Non-GAAP net revenues increased
22% year over year to $272.3
million.
- Advertising revenues grew 21% year over year to $233.6 million.
- Income from operations increased 147% year over year to
$36.3 million. Operating margin was
13%, up from 6% for the same period last year. Non-GAAP income from
operations increased 99% year over year to $56.5 million. Non-GAAP operating margin was 21%,
up from 13% for the same period last year.
- Net income attributable to SINA was $146.5 million, or $1.90 diluted net income per share. Non-GAAP net
income attributable to SINA was $43.7
million, or $0.56 diluted net
income per share.
- Weibo's monthly active users ("MAUs") in September 2016 grew 34% year over year to 297
million, 89% of which were mobile users. Average daily active users
("DAUs") in September 2016 grew 32%
year over year to 132 million.
"We are delighted to have another solid quarter." said
Charles Chao, Chairman and CEO of
SINA. "SINA portal has further implemented its mobile strategy,
with significant growth of mobile traffic from SINA News
Application. Mobile monetization for portal has further enhanced,
with 50% of the portal advertising revenues coming from mobile
devices." Mr. Chao added.
"With strong growth in user base, revenues and profitability,
Weibo has demonstrated its platform value with the network effect
of the content ecosystem and strong monetization capability." said
Mr. Chao. "We take great pride that Weibo is returning to the
center stage of Chinese Internet market."
Third Quarter 2016 Financial Results
For the third quarter of 2016, SINA reported net revenues of
$274.9 million, compared to
$226.3 million for the same period
last year. Non-GAAP net revenues for the third quarter of 2016
totaled $272.3 million, compared to
$223.7 million for the same period
last year.
Online advertising revenues for the third quarter of 2016 were
$233.6 million, compared to
$193.5 million for the same period
last year. The year-over-year growth in online advertising revenues
resulted from an increase of $47.8
million in Weibo advertising and marketing revenues,
partially offset by a decline of $7.7
million in portal advertising revenues.
Non-advertising revenues for the third quarter of 2016 were
$41.2 million, compared to
$32.8 million for the same period
last year. The year-over-year growth in non-advertising revenues
was mainly resulted from an increase of $7.1
million in portal non-advertising revenues. Non-GAAP
non-advertising revenues for the third quarter of 2016 were
$38.6 million, compared to
$30.2 million for the same period
last year.
Gross margin for the third quarter of 2016 was 67%, compared to
63% for the same period last year. Advertising gross margin for the
third quarter of 2016 was 70%, compared to 64% for the same period
last year. The increasing advertising revenue proportion
contributed by small and medium enterprises customers in both
portal and Weibo business is the key driver that resulted in a
higher gross margin for our advertising business. Non-advertising
gross margin for the third quarter of 2016 was 54%, compared to 60%
for the same period last year. The decrease in non-advertising
gross margin was primarily due to increasing proportion of portal
non-advertising revenues, which contributed lower gross margin.
Operating expenses for the third quarter of 2016 totaled
$148.2 million, compared to
$128.6 million for the same period
last year. Non-GAAP operating expenses for the third quarter of
2016 totaled $127.9 million, compared
to $113.9 million for the same period
last year. The year-over-year growth of non-GAAP operating expenses
was mainly resulted from an increase of sales and marketing
expenditure for portal and Weibo.
Income from operations for the third quarter of 2016 was
$36.3 million, compared to
$14.7 million for the same period
last year. Operating margin was 13%, up from 6% for the same period
last year. Non-GAAP income from operations for the third quarter of
2016 was $56.5 million, compared to
$28.4 million for the same period
last year. Non-GAAP operating margin was 21%, up from 13% for the
same period last year.
Non-operating income for the third quarter of 2016 was
$143.1 million, compared to a
non-operating income of $4.9 million
for the same period last year. Non-operating income for the third
quarter of 2016 mainly included: (i) a $133.5 million net gain on sale of and impairment
on investments, which is excluded under 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.
Net income attributable to SINA for the third quarter of 2016
was $146.5 million, compared to
$9.8 million for the same period last
year. Diluted net income per share attributable to SINA for the
third quarter of 2016 was $1.90,
compared to $0.16 for the same period
last year. Non-GAAP net income attributable to SINA for the third
quarter of 2016 was $43.7 million,
compared to $24.4 million for the
same period last year. Non-GAAP diluted net income per share
attributable to SINA for the third quarter of 2016 was $0.56, compared to $0.39 for the same period last year.
As of September 30, 2016, SINA's
cash, cash equivalents and short-term investments totaled
$2.2 billion, at similar level
compared with the balance as of December 31,
2015. For the third quarter of 2016, net cash provided by
operating activities was $256.1
million, capital expenditures totaled $2.3 million, and depreciation and amortization
expenses amounted to $7.3
million.
Other Developments
Completion of E-House Merger
As previously announced on June 19,
2015, SINA joined a consortium along with Mr. Xin Zhou, co-chairman of the board of directors
and chief executive officer of E-House (China) Holdings Limited ("E-House"), a leading
real estate services company in China, and Mr. Neil Nanpeng Shen, a board
member of E-House, to acquire all the outstanding ordinary shares
of E-House not already owned by SINA, Mr. Xin Zhou, Mr. Neil Nanpeng Shen or their
respective affiliates. Pursuant to a definitive agreement and plan
of merger (the "Merger Agreement") with E-House Holdings Ltd.
("Parent"), on August 12, 2016 (the
"Closing Date"), E-House completed its merger and became a
wholly-owned subsidiary of Parent. Sina contributed
approximately $140.0 million to
subscribe newly issued shares of Parent. Immediately following the
Closing Date, the Company held 43% of total outstanding shares of
Parent and continued to apply equity-method to account for the
investment in Parent.
On the Closing Date, SINA, Parent and certain other shareholders
of Parent entered into a shareholders agreement, pursuant to which
(a) Parent undertakes, among other things, that it shall not,
directly or indirectly, dispose any ordinary shares of Leju
Holdings Limited ("Leju"), an NYSE-listed company, owned by E-House
without the prior written approval of each of Mr. Xin Zhou and SINA; and (b) during the 18-month
period following the Closing Date, Parent has an option to
repurchase all the equity interest held by SINA in Parent for a
consideration consisting of (i) 30% of the total outstanding
ordinary shares of Leju at the time of the repurchase, and (ii)
certain cash payment. The option was recognized as a liability on
the basis of its fair value, and its subsequent changes in fair
value was reflected in the fair value change in option
liability.
In-Kind Distribution
On August 31, 2016, the Company
announced its planned distribution of shares of Weibo to SINA
shareholders as of the record date of September 12, 2016 on a pro rata basis, or one
Weibo Share for each ten outstanding
SINA ordinary shares. As of the distribution date of October 14, 2016, the Company has distributed
7,088,116 Class A ordinary shares of Weibo, based on 70,881,168
ordinary shares of SINA outstanding as of the record date.
Following the distribution of the Weibo Shares, SINA's equity stake
in Weibo decreased from approximately 53.5% (or approximately 78%
by voting power) to approximately 50.2% (or approximately 75% by
voting power), which resulted in an increase in the percentage of
the non-controlling interests related to Weibo.
Annual General Meeting
On November 4, 2016, the Company
held its annual general meeting of shareholders, where the
shareholders re-elected Mr. Ter Fung
Tsao as director of SINA. The shareholders also approved and
ratified the appointment of PricewaterhouseCoopers Zhong Tian LLP
as the Company's independent auditors for the fiscal year ending
December 31, 2016.
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 in relation to the equity investment in E-House,
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,
impairment on goodwill, change in fair value in option liability,
amortization of convertible debt issuance cost, income tax effects
of above non-GAAP to GAAP reconciling items and adjustments for
non-GAAP to GAAP reconciling items for the income (loss)
attributable to non-controlling interests. 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 9:10 p.m. – 9:50 p.m.
Eastern Time on November 21,
2016 (or 10:10 a.m. –
10:50 a.m. Beijing Time on
November 22, 2016) 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:
|
15998968
|
A replay of the conference call will be available through
morning Eastern Time November 29,
2016. The dial-in number is +61 2 9003 4211. The passcode
for the replay is 15998968.
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, 2015 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,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
$
233,633
|
|
$
193,459
|
|
$
205,031
|
|
$
601,631
|
|
$
520,070
|
|
Non-advertising
|
41,242
|
|
32,835
|
|
38,931
|
|
115,881
|
|
104,409
|
|
|
|
274,875
|
|
226,294
|
|
243,962
|
|
717,512
|
|
624,479
|
|
Cost of revenues
*:
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
71,194
|
|
69,741
|
|
73,083
|
|
212,466
|
|
202,668
|
|
Non-advertising
|
19,133
|
|
13,276
|
|
15,834
|
|
47,672
|
|
43,658
|
|
|
|
90,327
|
|
83,017
|
|
88,917
|
|
260,138
|
|
246,326
|
|
Gross
profit
|
184,548
|
|
143,277
|
|
155,045
|
|
457,374
|
|
378,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing *
|
64,176
|
|
53,342
|
|
56,895
|
|
172,773
|
|
167,577
|
|
Product development *
|
55,674
|
|
54,417
|
|
53,522
|
|
161,690
|
|
157,818
|
|
General and administrative *
|
28,366
|
|
20,830
|
|
23,808
|
|
74,308
|
|
70,123
|
|
|
|
148,216
|
|
128,589
|
|
134,225
|
|
408,771
|
|
395,518
|
|
Income (Loss) from
operations
|
36,332
|
|
14,688
|
|
20,820
|
|
48,603
|
|
(17,365)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income:
|
|
|
|
|
|
|
|
|
|
|
Earning (Loss) from equity method investments, net
|
5,534
|
|
93
|
|
(6,190)
|
|
(11,220)
|
|
1,016
|
|
Gain
on sale of investments/business and impairment on investments,
net
|
133,505
|
|
(1,066)
|
|
34,925
|
|
196,657
|
|
16,881
|
|
Fair
value change in option liability
|
(2,653)
|
|
-
|
|
-
|
|
(2,653)
|
|
-
|
|
Interest and other income, net
|
6,703
|
|
5,892
|
|
6,308
|
|
19,619
|
|
18,130
|
|
|
|
143,089
|
|
4,919
|
|
35,043
|
|
202,403
|
|
36,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
179,421
|
|
19,607
|
|
55,863
|
|
251,006
|
|
18,662
|
|
Income tax
expenses
|
(19,050)
|
|
(4,756)
|
|
(2,747)
|
|
(21,781)
|
|
(4,793)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
160,371
|
|
14,851
|
|
53,116
|
|
229,225
|
|
13,869
|
|
Less:
Net income attributable to non-controlling interests
|
13,853
|
|
5,085
|
|
9,789
|
|
24,060
|
|
2,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to SINA
|
$
146,518
|
|
$
9,766
|
|
$
43,327
|
|
$
205,165
|
|
$
11,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share attributable to SINA
|
$
2.08
|
|
$
0.17
|
|
$
0.62
|
|
$
2.93
|
|
$
0.19
|
|
Diluted net income
per share attributable to SINA **
|
$
1.90
|
|
$
0.16
|
|
$
0.59
|
|
$
2.74
|
|
$
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to SINA
|
70,420
|
|
58,512
|
|
70,047
|
|
70,108
|
|
58,559
|
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to SINA
|
78,303
|
|
58,799
|
|
77,202
|
|
77,486
|
|
58,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Stock-based
compensation in each category:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues -
advertising
|
$
2,380
|
|
$
1,569
|
|
$
1,775
|
|
$
5,721
|
|
$
4,131
|
|
|
Sales and
marketing
|
4,791
|
|
3,121
|
|
3,303
|
|
10,937
|
|
8,337
|
|
|
Product
development
|
7,261
|
|
4,264
|
|
3,592
|
|
15,775
|
|
10,863
|
|
|
General and
administrative
|
7,853
|
|
6,437
|
|
7,165
|
|
21,929
|
|
19,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
|
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,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Assets
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,158,970
|
|
|
$
763,439
|
|
|
Short-term
investments
|
|
1,050,206
|
|
|
1,446,414
|
|
|
Restricted
cash
|
|
304,375
|
|
|
140,652
|
|
|
Accounts
receivable, net
|
|
221,132
|
|
|
228,732
|
|
|
Prepaid expenses
and other current assets *
|
|
288,088
|
|
|
135,416
|
|
|
Subtotal
|
|
3,022,771
|
|
|
2,714,653
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
248,657
|
|
|
47,495
|
|
Goodwill and
intangible assets, net
|
|
57,616
|
|
|
61,954
|
|
Long-term
investments
|
|
1,324,017
|
|
|
1,212,640
|
|
Other
assets
|
|
192,175
|
|
|
320,205
|
|
Total
assets
|
|
$
4,845,236
|
|
|
$
4,356,947
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable
**
|
|
$
117,467
|
|
|
$
81,351
|
|
|
Amount due to
customers
|
|
304,375
|
|
|
140,652
|
|
|
Accrued
liabilities **
|
|
310,449
|
|
|
265,490
|
|
|
Short-term
loan
|
|
82,081
|
|
|
-
|
|
|
Convertible debt
*
|
|
799,301
|
|
|
795,108
|
|
|
Deferred
revenues
|
|
96,862
|
|
|
79,528
|
|
|
Income taxes
payable
|
|
30,086
|
|
|
16,426
|
|
|
Option
liability
|
|
2,653
|
|
|
-
|
|
|
Subtotal
|
|
1,743,274
|
|
|
1,378,555
|
|
|
|
|
|
|
|
|
|
Long-term deferred
revenues
|
|
67,892
|
|
|
76,003
|
|
Other long-term
liabilities
|
|
25,050
|
|
|
25,721
|
|
|
Total
liabilities
|
|
1,836,216
|
|
|
1,480,279
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
SINA shareholders'
equity
|
|
2,624,124
|
|
|
2,565,272
|
|
|
Non-controlling
interests
|
|
384,896
|
|
|
311,396
|
|
|
Total shareholders'
equity
|
|
3,009,020
|
|
|
2,876,668
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
4,845,236
|
|
|
$
4,356,947
|
|
|
|
|
|
|
|
|
|
* Effectively
January 2016, ASU 2015-3 issued by FASB requires entities to
present the issuance
costs of debt in the balance sheet as a direct deduction from the
related debt rather than assets.
Accordingly, the Company retrospectively reclassified $4.9 million
of issuance cost of debt from
prepaid expenses and other current assets into convertible debt as
of December 31, 2015.
|
|
|
|
|
|
|
|
|
|
** Commencing on
January 1, 2016, in order to enhance comparability with industry
peers,
payables that have been invoiced or formally agreed with the
suppliers were recorded in
accounts payable. To conform to current period presentations, the
relevant amounts in prior
periods have been reclassified from accrued liabilities
accordingly. Such reclassification
amounted to $77.8 million as of December 31,
2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SINA
CORPORATION
|
UNAUDITED
ADDITIONAL INFORMATION
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
|
|
|
|
Portal
Advertising
|
$
79,855
|
|
$
87,598
|
|
$
78,694
|
|
$
222,270
|
|
$
247,182
|
|
Other
|
21,058
|
|
13,962
|
|
19,219
|
|
55,941
|
|
48,431
|
|
|
Subtotal
|
100,913
|
|
101,560
|
|
97,913
|
|
278,211
|
|
295,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weibo:
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing
|
156,693
|
|
105,861
|
|
127,173
|
|
383,112
|
|
272,888
|
|
|
Weibo
VAS
|
20,184
|
|
18,873
|
|
19,712
|
|
59,940
|
|
55,978
|
|
|
Subtotal
|
176,877
|
|
124,734
|
|
146,885
|
|
443,052
|
|
328,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination
|
(2,915)
|
|
-
|
|
(836)
|
|
(3,751)
|
|
-
|
|
|
|
$
274,875
|
|
$
226,294
|
|
$
243,962
|
|
$
717,512
|
|
$
624,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
Portal:
|
|
|
|
|
|
|
|
|
|
|
Portal
Advertising
|
$
32,540
|
|
$
37,240
|
|
$
36,804
|
|
$
104,881
|
|
$
117,261
|
|
Other
|
13,458
|
|
8,536
|
|
11,502
|
|
33,691
|
|
29,210
|
|
|
Subtotal
|
45,998
|
|
45,776
|
|
48,306
|
|
138,572
|
|
146,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weibo
|
44,494
|
|
37,241
|
|
40,657
|
|
121,777
|
|
99,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination
|
(165)
|
|
-
|
|
(46)
|
|
(211)
|
|
-
|
|
|
|
$
90,327
|
|
$
83,017
|
|
$
88,917
|
|
$
260,138
|
|
$
246,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
Portal
|
54%
|
|
55%
|
|
51%
|
|
50%
|
|
50%
|
|
|
Weibo
|
75%
|
|
70%
|
|
72%
|
|
73%
|
|
70%
|
|
|
|
67%
|
|
63%
|
|
64%
|
|
64%
|
|
61%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SINA
CORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
(U.S. Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
June 30,
2016
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenues
|
$
233,633
|
|
|
|
$
233,633
|
|
$
193,459
|
|
|
|
$
193,459
|
|
$
205,031
|
|
|
|
$
205,031
|
Non-advertising
revenues
|
41,242
|
|
(2,609)
|
(a)
|
38,633
|
|
32,835
|
|
(2,609)
|
(a)
|
30,226
|
|
38,931
|
|
(2,609)
|
(a)
|
36,322
|
Net
revenues
|
$
274,875
|
|
$
(2,609)
|
|
$
272,266
|
|
$
226,294
|
|
$
(2,609)
|
|
$
223,685
|
|
$
243,962
|
|
$
(2,609)
|
|
$
241,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
2,380
|
(b)
|
|
|
|
|
1,569
|
(b)
|
|
|
|
|
1,775
|
(b)
|
|
Gross
profit
|
$
184,548
|
|
$
(229)
|
|
$
184,319
|
|
$
143,277
|
|
$
(1,040)
|
|
$
142,237
|
|
$
155,045
|
|
$
(834)
|
|
$
154,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,905)
|
(b)
|
|
|
|
|
(13,822)
|
(b)
|
|
|
|
|
(14,060)
|
(b)
|
|
|
|
|
|
(457)
|
(c)
|
|
|
|
|
(883)
|
(c)
|
|
|
|
|
(461)
|
(c)
|
|
Operating
expenses
|
$
148,216
|
|
$
(20,362)
|
|
$
127,854
|
|
$
128,589
|
|
$
(14,705)
|
|
$
113,884
|
|
$
134,225
|
|
$
(14,521)
|
|
$
119,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
22,285
|
(b)
|
|
|
|
|
15,391
|
(b)
|
|
|
|
|
15,835
|
(b)
|
|
|
|
|
|
457
|
(c)
|
|
|
|
|
883
|
(c)
|
|
|
|
|
461
|
(c)
|
|
Income from
operations
|
$
36,332
|
|
$
20,133
|
|
$
56,465
|
|
$
14,688
|
|
$
13,665
|
|
$
28,353
|
|
$
20,820
|
|
$
13,687
|
|
$
34,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,285
|
(b)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
(2,609)
|
(a)
|
|
|
|
|
|
457
|
(c)
|
|
|
|
|
15,391
|
(b)
|
|
|
|
|
15,835
|
(b)
|
|
|
|
|
|
2,032
|
(d)
|
|
|
|
|
883
|
(c)
|
|
|
|
|
461
|
(c)
|
|
|
|
|
|
(133,505)
|
(e)
|
|
|
|
|
2,882
|
(d)
|
|
|
|
|
2,427
|
(d)
|
|
|
|
|
|
2,653
|
(f)
|
|
|
|
|
1,066
|
(e)
|
|
|
|
|
(34,925)
|
(e)
|
|
|
|
|
|
(10,650)
|
(g)
|
|
|
|
|
(3,850)
|
(g)
|
|
|
|
|
(5,646)
|
(g)
|
|
|
|
|
|
1,398
|
(h)
|
|
|
|
|
1,094
|
(h)
|
|
|
|
|
1,085
|
(h)
|
|
|
|
|
|
15,133
|
(i)
|
|
|
|
|
(206)
|
(i)
|
|
|
|
|
(102)
|
(i)
|
|
Net income
attributable to SINA
|
$
146,518
|
|
$
(102,806)
|
|
$
43,712
|
|
$
9,766
|
|
$
14,651
|
|
$
24,417
|
|
$
43,327
|
|
$
(23,474)
|
|
$
19,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to SINA *
|
$
1.90
|
|
|
|
$
0.56
|
|
$
0.16
|
|
|
|
$
0.39
|
|
$
0.59
|
|
|
|
$
0.27
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to SINA
|
78,303
|
|
-
|
|
78,303
|
|
58,799
|
|
6,467
|
(j)
|
65,266
|
|
77,202
|
|
-
|
|
77,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin -
advertising
|
70%
|
|
1%
|
|
71%
|
|
64%
|
|
1%
|
|
65%
|
|
64%
|
|
1%
|
|
65%
|
Gross margin -
non-advertising
|
54%
|
|
-4%
|
|
50%
|
|
60%
|
|
-4%
|
|
56%
|
|
59%
|
|
-3%
|
|
56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
revenues
|
$
601,631
|
|
|
|
$
601,631
|
|
$
520,070
|
|
|
|
$
520,070
|
|
|
|
|
|
|
Non-advertising
revenues
|
115,881
|
|
(7,827)
|
(a)
|
108,054
|
|
104,409
|
|
(7,827)
|
(a)
|
96,582
|
|
|
|
|
|
|
Net
revenues
|
$
717,512
|
|
$
(7,827)
|
|
$
709,685
|
|
$
624,479
|
|
$
(7,827)
|
|
$
616,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
5,721
|
(b)
|
|
|
|
|
4,131
|
(b)
|
|
|
|
|
|
|
|
Gross
profit
|
$
457,374
|
|
$
(2,106)
|
|
$
455,268
|
|
$
378,153
|
|
$
(3,696)
|
|
$
374,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(48,641)
|
(b)
|
|
|
|
|
(39,160)
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
(1,475)
|
(c)
|
|
|
|
|
(2,691)
|
(c)
|
|
|
|
|
|
|
|
Operating
expenses
|
$
408,771
|
|
$
(50,116)
|
|
$
358,655
|
|
$
395,518
|
|
$
(41,851)
|
|
$
353,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
54,362
|
(b)
|
|
|
|
|
43,291
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
1,475
|
(c)
|
|
|
|
|
2,691
|
(c)
|
|
|
|
|
|
|
|
Income (Loss) from
operations
|
$
48,603
|
|
$
48,010
|
|
$
96,613
|
|
$
(17,365)
|
|
$
38,155
|
|
$
20,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54,362
|
(b)
|
|
|
|
|
(7,827)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
1,475
|
(c)
|
|
|
|
|
43,291
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
3,978
|
(d)
|
|
|
|
|
2,691
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
(196,657)
|
(e)
|
|
|
|
|
6,051
|
(d)
|
|
|
|
|
|
|
|
|
|
|
|
2,653
|
(f)
|
|
|
|
|
(16,881)
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
(20,815)
|
(g)
|
|
|
|
|
(9,730)
|
(g)
|
|
|
|
|
|
|
|
|
|
|
|
3,567
|
(h)
|
|
|
|
|
3,304
|
(h)
|
|
|
|
|
|
|
|
|
|
|
|
14,908
|
(i)
|
|
|
|
|
(623)
|
(i)
|
|
|
|
|
|
|
|
Net income
attributable to SINA
|
$
205,165
|
|
$
(144,356)
|
|
$
60,809
|
|
$
11,125
|
|
$
20,276
|
|
$
31,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to SINA *
|
$
2.74
|
|
|
|
$
0.82
|
|
$
0.18
|
|
|
|
$
0.50
|
|
|
|
|
|
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to SINA
|
77,486
|
|
-
|
|
77,486
|
|
58,854
|
|
-
|
|
58,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin -
advertising
|
65%
|
|
1%
|
|
66%
|
|
61%
|
|
1%
|
|
62%
|
|
|
|
|
|
|
Gross margin -
non-advertising
|
59%
|
|
-3%
|
|
56%
|
|
58%
|
|
-3%
|
|
55%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To
adjust the recognition of deferred revenue related to the license
agreements granted to E-House.
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) To
adjust stock-based compensation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) To
adjust amortization of intangible assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) To
adjust 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
adjust (gain) loss on sale of investments/business, (gain) loss on
deemed disposal and impairment on investments, net.
|
|
|
|
|
|
|
|
|
|
|
(f) To
adjust the change in fair value of option liability.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g) To
adjust Non-GAAP to GAAP reconciling items for the income
attributable to non-controlling interests.
|
|
|
|
|
|
|
|
|
|
|
|
|
(h) To
adjust the amortization of convertible debt issuance
cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) To
adjust the provision for income tax related to item (c) and (e).
Other non-GAAP to GAAP reconciling items have no income tax
effect.**
|
|
|
|
|
|
|
|
|
(j) To
adjust the number of shares for dilution resulted from convertible
debt and unvested equity granted.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Net income (loss)
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, full
valuation allowances were made due to as 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,
2016
|
|
September 30,
2015
|
|
June 30,
2016
|
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
Actual
|
|
Adjustments
|
|
Non-GAAP
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To adjust
stock-based compensation
|
|
|
$
1,409
|
|
|
|
|
|
$
1,620
|
|
|
|
|
|
$
1,356
|
|
|
|
To adjust
amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
resulting from business acquisitions
|
|
|
618
|
|
|
|
|
|
598
|
|
|
|
|
|
587
|
|
|
|
To adjust gain on sale of investments
|
|
|
(12)
|
|
|
|
|
|
-
|
|
|
|
|
|
(739)
|
|
|
|
To adjust the loss
resulting from the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
fair value
changes in investments
|
|
|
41
|
|
|
|
|
|
551
|
|
|
|
|
|
1,236
|
|
|
|
To adjust tax
impacts related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to
amortization of intangible assets
|
|
|
(179)
|
|
|
|
|
|
(182)
|
|
|
|
|
|
(180)
|
|
|
|
Earning (Loss)
from equity method investments, net
|
$
5,689
|
|
$
1,877
|
|
$
7,566
|
|
$
388
|
|
$
2,587
|
|
$
2,975
|
|
$
(6,023)
|
|
$
2,260
|
|
$
(3,763)
|
|
Share of
amortization of equity investments'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangibles
not on their books
|
$
(173)
|
|
$
173
|
|
$
-
|
|
$
(394)
|
|
$
394
|
|
$
-
|
|
$
(223)
|
|
$
223
|
|
$
-
|
|
Share of tax
impacts related to amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
investments' intangibles not on their books
|
18
|
|
(18)
|
|
-
|
|
99
|
|
(99)
|
|
-
|
|
56
|
|
(56)
|
|
-
|
|
|
$
5,534
|
|
$
2,032
|
|
$
7,566
|
|
$
93
|
|
$
2,882
|
|
$
2,975
|
|
$
(6,190)
|
|
$
2,427
|
|
$
(3,763)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To adjust
stock-based compensation
|
|
|
$
4,320
|
|
|
|
|
|
$
4,396
|
|
|
|
|
|
|
|
|
|
To adjust
amortization of intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
resulting from business acquisitions
|
|
|
1,996
|
|
|
|
|
|
1,735
|
|
|
|
|
|
|
|
|
|
To adjust gain on sale of investments
|
|
|
(1,559)
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
To adjust the gain
resulting from the fair
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
value
changes in investments
|
|
|
(849)
|
|
|
|
|
|
(673)
|
|
|
|
|
|
|
|
|
|
To adjust tax
impacts related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to
amortization of intangible assets
|
|
|
(546)
|
|
|
|
|
|
(296)
|
|
|
|
|
|
|
|
|
|
Earning (Loss)
from equity method investments, net
|
$
(10,604)
|
|
$
3,362
|
|
$
(7,242)
|
|
$
1,905
|
|
$
5,162
|
|
$
7,067
|
|
|
|
|
|
|
|
Share of
amortization of equity investments'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangibles
not on their books
|
$
(788)
|
|
$
788
|
|
$
-
|
|
$
(1,186)
|
|
$
1,186
|
|
$
-
|
|
|
|
|
|
|
|
Share of tax
impacts related to amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
investments' intangibles not on their books
|
172
|
|
(172)
|
|
-
|
|
297
|
|
(297)
|
|
-
|
|
|
|
|
|
|
|
|
$
(11,220)
|
|
$
3,978
|
|
$
(7,242)
|
|
$
1,016
|
|
$
6,051
|
|
$
7,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Earning (Loss)
from equity method investments is recorded one quarter in
arrears.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sina-reports-third-quarter-2016-financial-results-300366756.html
SOURCE SINA Corporation