BEIJING, March 11, 2020
/PRNewswire/ -- 58.com Inc. (NYSE: WUBA) ("58.com" or the
"Company"), China's largest online
classifieds marketplace, today reported its unaudited
financial results for the fourth quarter and fiscal year ended
December 31, 2019.
Fourth Quarter 2019 Financial Highlights
- Total revenues were RMB4,155.5
million (US$595.7 million[1]),
a 15.1% increase from RMB3,609.3
million in the same quarter of 2018, exceeding the high end
of the Company's guidance of RMB4,150
million.
- Total number of paying business users[2] was approximately 3.3
million in the fourth quarter of 2019, a 4.2% increase from the
same quarter of 2018.
- Gross margin was 86.4% compared with 87.3% in the same quarter
of 2018.
- Income from operations was RMB741.1
million (US$106.2 million), a
4.9% increase from RMB706.4 million
in the same quarter of 2018.
- Non-GAAP income from operations[3] was RMB950.5 million (US$136.2
million), a 6.3% increase from RMB894.6 million in the same quarter of
2018.
- The Company recorded RMB2,082.7
million investment income and RMB118.3 million associated current and deferred
income tax expenses from the sale of a portion of equity interest
in Che Hao Duo in the fourth quarter of 2019.
- Net income attributable to 58.com Inc. ordinary shareholders
was RMB2,609.8 million (US$374.1 million), a 535.1% increase from
RMB410.9 million in the same quarter
of 2018.
- Non-GAAP net income attributable to 58.com Inc. ordinary
shareholders [4] was RMB4,877.6
million (US$699.2 million), a
544.9% increase from RMB756.3 million
in the same quarter of 2018.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB17.45
(US$2.50) and RMB17.28 (US$2.48),
respectively, representing increases of 527.4% and 528.1% from
RMB2.78 and RMB2.75, respectively, in the same quarter of
2018. One ADS represents two Class A ordinary shares.
- Non-GAAP basic and diluted earnings per ADS[5] attributable to
ordinary shareholders were RMB32.61
(US$4.67) and RMB32.30 (US$4.63),
respectively, representing increases of 537.2% and 537.9% from
RMB5.12 and RMB5.06, respectively, in the same quarter of
2018.
Fiscal Year 2019 Financial Highlights
- Total revenues were RMB15,576.5
million (US$2,232.8 million),
an 18.6% increase from RMB13,137.8
million in fiscal year 2018.
- Gross margin was 88.5% compared with 89.1% in fiscal year
2018.
- Income from operations was RMB2,852.5
million (US$408.9 million), a
19.5% increase from RMB2,386.7
million in fiscal year 2018.
- Non-GAAP income from operations was RMB3,600.4 million (US$516.1 million), an 18.0% increase from
RMB3,051.3 million in fiscal year
2018.
- The Company recorded RMB6,141.6
million investment income and RMB524.2 million associated current and deferred
income tax expenses for the sale of a portion of equity interest in
Che Hao Duo in fiscal year 2019.
- Net income attributable to 58.com Inc. ordinary shareholders
was RMB8,278.2 million (US$1,186.6 million), a 314.5% increase from
RMB1,997.0 million in fiscal year
2018.
- Non-GAAP net income attributable to 58.com Inc. ordinary
shareholders was RMB7,977.9 million
(US$1,143.6 million), a 193.0%
increase from RMB2,723.1 million in
fiscal year 2018.
- Basic and diluted earnings per ADS attributable to ordinary
shareholders were RMB55.59
(US$7.97) and RMB54.92 (US$7.87),
respectively, representing increases of 310.5% and 312.1% from
RMB13.54 and RMB13.33, respectively in fiscal year 2018.
- Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders were RMB53.57
(US$7.68) and RMB52.93 (US$7.59),
respectively, representing increases of 190.1% and 191.3% from
RMB18.47 and RMB18.17, respectively in fiscal year 2018.
Management Comments
"I am pleased to report another quarter of strong financial and
operational results to close out 2019 on a solid footing,"
commented Mr. Michael Yao, Chairman
and Chief Executive Officer of 58.com. "Despite the challenging
macroeconomic environment, we delivered RMB4.16 billion revenue for the quarter, above
the high end of our guidance. Revenue for the year reached
RMB15.6 billion, a solid 18.6%
increase from last year. Traffic for our main app continued to grow
steadily and at a faster pace than revenue. We maintained a healthy
non-GAAP operating margin of 23.1% for 2019 as we continued to
invest in new businesses and technologies to further strengthen the
user experiences and solidify our market leading position."
Fourth Quarter 2019 Financial Results
Revenues
Total revenues were RMB4,155.5
million (US$595.7 million),
representing an increase of 15.1% from RMB3,609.3
million in the same quarter of 2018.
Membership revenues were RMB1,112.4
million (US$159.5 million),
relatively flat compared with RMB1,122.2
million in the same quarter of 2018.
Online marketing services revenues were RMB2,713.8 million (US$389.0 million), an increase of 19.3% from
RMB2,275.0 million in the same
quarter of 2018.
The increases were primarily driven by the increasing adoption
and effectiveness of the Company's various online marketing
services such as real-time bidding.
Cost of Revenues
Cost of revenues was RMB566.0
million (US$81.1 million), an
increase of 23.7% from RMB457.7
million in the same quarter of 2018.
The year-over-year increase was primarily due to increases in
the costs of goods and services provided on Anjuke, Zhuan Zhuan and
other platforms, costs associated with the operations of all the
Company's platforms, and salaries and benefits relating to web
operation and information quality control teams.
Gross Profit and Gross Margin
Gross profit was RMB3,589.5 million (US$514.5 million), an increase of 13.9% from
RMB3,151.6 million during the same
quarter of 2018.
Gross margin was 86.4% in the fourth quarter of 2019, compared
with 87.3% during the same quarter of 2018.
Operating Expenses
Operating expenses were RMB2,848.4
million (US$408.3 million), an
increase of 16.5% from RMB2,445.2
million in the same quarter of 2018.
Sales and marketing expenses in the fourth quarter of 2019 were
RMB2,023.5 million (US$290.1 million), an increase of 17.7% from
RMB1,719.9 million in the same
quarter in 2018.
Within sales and marketing expenses, advertising expenses in the
fourth quarter of 2019 were RMB865.1
million (US$124.0 million), an
increase of 8.6% from RMB796.5
million in the fourth quarter of 2018.
The increase in advertising expenses was primarily due to an
increase in mobile traffic acquisition expenses, particularly for
mobile apps such as 58.com and Anjuke, which are part of the
Company's core business.
Non-advertising sales and marketing expenses in the fourth
quarter of 2019 were RMB1,158.4
million (US$166.0 million), an
increase of 25.4% from RMB923.4
million in the same quarter in 2018.
Non-advertising sales and marketing expenses include salaries,
benefits, commissions and share-based compensation expenses for the
Company's sales, sales support, customer service, and marketing
dealer management personnel, online and offline promotional
expenses, and other operating expenses that are associated with
sales and marketing activities.
The increase in non-advertising sales and marketing expenses was
mainly due to an increase in marketing and promotional expenses for
58.com and newer platforms such as 58 Town and Zhuan Zhuan.
Research and development expenses in the fourth quarter of 2019
were RMB560.7 million (US$80.4 million), an increase of 13.6% from
RMB493.5 million in the same quarter
of 2018. The increase was primarily due to increases in salaries
and benefits and share-based compensation expenses for the
Company's research and development personnel for the development of
new features and services.
General and administrative expenses in the fourth quarter of
2019 were RMB264.2 million
(US$37.9 million), an increase of
14.0% from RMB231.8 million in the
same quarter of 2018. The increase was primarily due to the
increase in salaries, benefits and share-based compensation
expenses related to administrative personnel.
Income from Operations
Income from operations was RMB741.1
million (US$106.2 million) in
the fourth quarter of 2019, an increase of 4.9% from RMB706.4 million in the same quarter of 2018.
Operating margin, defined as income from operations divided by
total revenues, was 17.8% in the fourth quarter of 2019,
compared with 19.6% in the same quarter of 2018.
Non-GAAP income from operations was RMB950.5 million (US$136.2
million) in the fourth quarter of 2019, an increase of 6.3%
from RMB894.6 million in the same
quarter of 2018.
Non-GAAP operating margin, defined as non-GAAP income from
operations divided by total revenues, was 22.9% in the fourth
quarter of 2019, compared with 24.8% in the same quarter of
2018.
Other Income/(Expenses), net
Net other income in the fourth quarter of 2019 was RMB2,088.1 million (US$299.3 million), compared with net other
expenses of RMB164.5 million in the
same quarter of 2018.
Net other income in the fourth quarter of 2019 was primarily
composed of RMB1,920.5 million in net
investment income and RMB126.9
million tax refunds and other government subsidies in net
others.
Net investment income mainly included RMB2,082.7 million income generated from the sale
of a portion of equity stake and the revaluation of the remaining
equity stake in Che Hao Duo in the fourth quarter of 2019, and
RMB70.1 million income from
short-term commercial bank investment products the Company
purchased with its surplus cash, which was partially offset by
RMB222.9 million loss in fair value
of certain long-term investments.
Net other income in the fourth quarter of 2019 would have been
RMB5.4 million (US$0.8 million) if the gain from the sale of a
portion of equity stake and the revaluation of the remaining equity
stake in Che Hao Duo was excluded.
Net Income Attributable to
58.com Inc. Ordinary
Shareholders
Net income attributable to 58.com Inc. ordinary
shareholders was RMB2,609.8 million (US$374.1 million) in the fourth quarter of 2019,
an increase of 535.1% from RMB410.9 million in the same
quarter of 2018. Net income attributable to 58.com Inc.
ordinary shareholders in the fourth quarter of 2019 would have been
RMB645.4 million (US$92.5 million), an increase of 57.1% from the
same quarter of 2018, if the RMB2,082.7
million gain from the sale of a portion of equity stake and
revaluation of the remaining equity stake in Che Hao Duo and
related income tax expenses were excluded.
Net margin, defined as net income attributable to 58.com Inc.
ordinary shareholders divided by total revenues, was 62.8% in the
fourth quarter of 2019, compared with 11.4% in the same quarter of
2018. Net margin in the fourth quarter of 2019 would have been
15.5% if the gain from the sale of a portion of equity stake and
revaluation of the remaining equity stake in Che Hao Duo and
related income tax expenses were excluded.
Non-GAAP net income attributable to 58.com Inc. ordinary
shareholders was RMB4,877.6 million
(US$699.2 million) in the fourth
quarter of 2019, an increase of 544.9% from RMB756.3 million in the same quarter of 2018.
Non-GAAP net income attributable to 58.com Inc. ordinary
shareholders in the fourth quarter of 2019 would have been
RMB1,081.1 million (US$155.0 million), an increase of 42.9% from the
same quarter of 2018, if the gain from the sale of a portion of
equity stake in Che Hao Duo and related income tax expenses were
excluded.
Non-GAAP net margin, defined as non-GAAP net income attributable
to 58.com Inc. ordinary shareholders divided by total revenues, was
117.4% in the fourth quarter of 2019, compared with 21.0% in the
same quarter of 2018. Non-GAAP net margin in the fourth quarter of
2019 would have been 26.0% if the gain from the sale of a portion
of equity stake in Che Hao Duo and related income tax expenses were
excluded.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in the fourth quarter of 2019 were RMB17.45 (US$2.50)
and RMB17.28 (US$2.48), respectively, representing increases
of 527.4% and 528.1% from RMB2.78 and
RMB2.75, respectively, in the same
quarter of 2018.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in the fourth quarter of 2019 were
RMB32.61 (US$4.67) and RMB32.30 (US$4.63),
respectively, representing increases of 537.2% and 537.9% from
RMB5.12 and RMB5.06, respectively, in the same quarter of
2018.
Cash Flow
Net cash provided by operating activities was RMB1,180.3 million (US$169.2 million) in the fourth quarter of
2019, an increase of 22.2% from RMB966.1 million in the same quarter of
2018.
Fiscal Year 2019 Financial Results
Revenues
Total revenues were RMB15,576.5
million (US$2,232.8 million)
in fiscal year 2019, representing an increase of 18.6%
from RMB13,137.8 million during fiscal
year 2018.
Membership revenues were RMB4,470.9
million (US$640.9 million) in
fiscal year 2019, a slight increase from RMB4,399.1 million during fiscal
year 2018.
Online marketing services revenues were RMB10,158.4 million (US$1,456.2 million) in fiscal year 2019, an
increase of 22.6% from RMB8,282.6
million during fiscal year 2018.
The increases were primarily driven by the increasing adoption
and effectiveness of the Company's various online marketing
services such as real time bidding and priority listings.
Cost of Revenues
Cost of revenues was RMB1,798.4
million (US$257.8 million) in
fiscal year 2019, an increase of 25.1% from RMB1,437.8 million during fiscal year 2018.
The year-over-year increase was primarily due to increases in
the costs of goods and services provided on Anjuke, Zhuan Zhuan and
other platforms, salaries and benefits primarily for information
quality control teams, traffic acquisition costs paid to 58.com's
advertising union partners and other costs related to web
operations.
Gross Profit and Gross Margin
Gross profit was RMB13,778.1 million (US$1,975.0 million) in fiscal year 2019, an
increase of 17.8% from RMB11,700.0
million during fiscal year 2018.
Gross margin was 88.5% in fiscal year 2019, compared with 89.1%
during fiscal year 2018.
Operating Expenses
Operating expenses were RMB10,925.6
million (US$1,566.1 million)
in fiscal year 2019, representing an increase of 17.3% from
RMB9,313.4 million during fiscal year
2018.
Sales and marketing expenses were RMB8,049.7 million (US$1,153.9 million) in fiscal year 2019, an
increase of 17.3% from RMB6,861.8
million during fiscal year 2018.
Within sales and marketing expenses, advertising expenses were
RMB3,717.5 million (US$532.9 million) in fiscal year 2019, an
increase of 12.3% from RMB3,309.5
million during fiscal year 2018.
The increase in advertising expenses was primarily due to an
increase in mobile traffic acquisition expenses, particularly for
mobile apps such as 58.com and Anjuke, which are part of the
Company's core business.
Non-advertising sales and marketing expenses were RMB4,332.2 million (US$621.0 million) in fiscal year 2019, an
increase of 22.0% from RMB3,552.3
million during fiscal year 2018.
Non-advertising sales and marketing expenses include salaries,
benefits, commissions and share-based compensation expenses for the
Company's sales, sales support, customer service, and marketing
dealer management personnel, online and offline promotional
expenses, and other operating expenses that are associated with
sales and marketing activities.
The increase in non-advertising sales and marketing expenses was
mainly due to an increase in marketing and promotional expenses for
58.com and newer platforms such as 58 Town and Zhuan Zhuan.
Research and development expenses were RMB2,058.7 million (US$295.1 million) in fiscal year 2019, an
increase of 20.9% from RMB1,702.7
million during fiscal year 2018. The increase was primarily
due to increases in salaries and benefits and share-based
compensation expenses for the Company's research and development
personnel for the development of new features and services.
General and administrative expenses were RMB817.3 million (US$117.2
million) in fiscal year 2019, an increase of 9.2% from
RMB748.8 million during fiscal year
2018. The increase was primarily driven by increases in share-based
compensation expenses and salaries and benefits for administrative
personnel.
Income from Operations
Income from operations was RMB2,852.5
million (US$408.9 million) in
fiscal year 2019, an increase of 19.5% from RMB2,386.7 million during fiscal year 2018.
Operating margin was 18.3% in fiscal year 2019, compared with
18.2% during fiscal year 2018.
Non-GAAP income from operations was RMB3,600.4 million (US$516.1 million) in fiscal year 2019, an
increase of 18.0% from RMB3,051.3
million during fiscal year 2018.
Non-GAAP operating margin was 23.1% in fiscal year 2019,
compared with 23.2% during fiscal year 2018.
Other Income/(Expenses), net
Net other income was RMB6,427.1
million (US$921.3 million) in
fiscal year 2019, compared with RMB42.1
million during fiscal year 2018.
Net other income in fiscal year 2019 mainly consisted of
RMB6,135.1 million in net investment
income and RMB217.9 million in tax
refunds and other government subsidies in net others.
Within net investment income was a RMB6,141.6 million gain recognized from the sale
of a portion of equity stake in Che Hao Duo, of which RMB4,760.5 million was realized gains for the
portion sold and RMB1,381.1 million
was unrealized gains arising from remeasuring the fair value of the
remaining equity stake in Che Hao Duo. The Company accounted for
this investment using the measurement alternative method. The
change in fair value of this investment is recognized because the
sale of a portion of equity stake in Che Hao Duo is considered to
be an observable price change event.
Net other income in fiscal year 2019 would have been
RMB285.5 million (US$40.9 million) if the RMB6,141.6 million gain from the sale of a
portion of equity stake and the revaluation of the remaining equity
stake in Che Hao Duo was excluded.
Net Income Attributable to
58.com Inc. Ordinary Shareholders
Net income attributable to 58.com Inc. ordinary
shareholders was RMB8,278.2 million (US$1,186.6 million) in fiscal year 2019, an
increase of 314.5% from RMB1,997.0
million during fiscal year 2018. Net income
attributable to 58.com Inc. ordinary shareholders in fiscal year
2019 would have been RMB2,660.8
million (US$381.4 million), an
increase of 33.3% from fiscal year 2018, if the gain from the sale
of a portion of equity stake and revaluation of the remaining
equity stake in Che Hao Duo and related income tax expenses were
excluded.
Net margin was 53.1% in fiscal year 2019, compared with 15.2%
during fiscal year 2018. Net margin in fiscal year 2019 would have
been 17.1% if the gain from the sale of a portion of equity stake
and revaluation of the remaining equity stake in Che Hao Duo and
related income tax expenses were excluded.
Non-GAAP net income attributable to 58.com Inc. ordinary
shareholders was RMB7,977.9 million
(US$1,143.6 million) in fiscal year
2019, an increase of 193.0% from RMB2,723.1
million during fiscal year 2018. Non-GAAP net income
attributable to 58.com Inc. ordinary shareholders in fiscal year
2019 would have been RMB3,603.5
million (US$516.5 million), an
increase of 32.4% from fiscal year 2018, if the gain from the sale
of a portion of equity stake in Che Hao Duo and related income tax
expenses were excluded.
Non-GAAP net margin was 51.2% in fiscal year 2019, compared with
20.7% during fiscal year 2018. Non-GAAP net margin in fiscal year
2019 would have been 23.1% if the gain from the sale of a portion
of equity stake in Che Hao Duo and related income tax expenses were
excluded.
Basic and Diluted Earnings per ADS
Basic and diluted earnings per ADS attributable to ordinary
shareholders in fiscal year 2019 were RMB55.59 (US$7.97)
and RMB54.92 (US$7.87), respectively, representing increases
of 310.5% and 312.1% from basic and diluted earnings per ADS
attributable to ordinary shareholders of RMB13.54 and RMB13.33, respectively, during fiscal year
2018.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders in fiscal year 2019 were RMB53.57 (US$7.68)
and RMB52.93 (US$7.59), respectively, representing increases
of 190.1% and 191.3% from non-GAAP basic and diluted earnings per
ADS attributable to ordinary shareholders of RMB18.47 and RMB18.17, respectively, during fiscal year
2018.
Cash Flow
Net cash provided by operating activities was RMB4,354.4 million (US$624.2 million) in fiscal year 2019, an
increase of 14.6% from net cash provided by operating activities of
RMB3,799.6 million during fiscal
year 2018.
Cash and Cash Equivalents, Term deposits, Restricted Cash
and Short-term Investments
As of December 31, 2019, the
Company had cash and cash equivalents, term deposits, restricted
cash and short-term investments of RMB14,254.7 million (US$2,043.3 million).
Shares Outstanding
As of December 31, 2019, the
Company had a total of 299,277,413 ordinary shares (including
254,045,293 Class A and 45,232,120 Class B ordinary shares) issued
and outstanding. One ADS represents two Class A ordinary
shares.
Business Outlook
For the first quarter of 2020, 58.com's business has been
significantly impacted by the outbreak of COVID-19. As the
situation continues to evolve, the Company has limited business
visibility brought upon by the high uncertainty. The Company
anticipates its total revenues for the first quarter of 2020 to be
between RMB2.16 billion and
RMB2.26 billion. This represents a
year-over-year decrease of approximately 25% to 29% in Renminbi
amounts. 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. ordinary shareholders, non-GAAP net
margin and non-GAAP basic and diluted earnings/(loss) per
share and per ADS by excluding share-based compensation
expenses, amortization of intangible assets resulting from business
acquisitions, change in fair value of long-term investments and
investment in convertible note, share-based compensation expenses
included in share of results of equity investees, income tax
effects of above GAAP to non-GAAP reconciling items. 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, non-cash gain or loss and income tax
effects resulting from GAAP to non-GAAP reconciling items 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 share-based compensation
expenses, amortization of intangible assets resulting from business
acquisitions, change in fair value of long-term investments
and investment in convertible note, share-based compensation
expenses included in share of results of equity investees, income
tax effects of above GAAP to non-GAAP reconciling items, all of
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 March 12, 2020 at 8:00 a.m. U.S. Eastern
Time (8:00 p.m.
Beijing / Hong Kong time on the same day).
Dial-in details for the earnings conference call are as
follows:
International:
|
+1-412-317-6061
|
U.S. Toll
Free:
|
+1-888-317-6003
|
Hong Kong Toll
Free:
|
800-963976
|
Hong Kong
|
852-58081995
|
Mainland China Toll
Free:
|
4001-206115
|
Passcode:
|
7652435
|
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, March 19, 2020. The dial-in details for the
replay are as follows:
International:
|
+1-412-317-0088
|
U.S. Toll
Free:
|
+1-877-344-7529
|
Passcode:
|
10140025
|
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://ir.58.com.
[1] This press release contains
translations of certain Renminbi (RMB) amounts into U.S. dollars
(US$) solely for the convenience of the readers. Unless otherwise
specified, all translations of Renminbi amounts into US$ amounts in
this press release are made at RMB6.9762 to US$1.00, which was the
U.S. dollars middle rate announced by the PRC State Administration
of Foreign Exchange on December 31, 2019. The percentages stated in
this press release are calculated based on the Renminbi amounts. On
March 11, 2020, such exchange rate was RMB6.9612 to
US$1.00.
|
[2] Paying business users refer to
users who are identified as business users with unique identity
information such as business licenses or personal identification
information and who used the Company's subscription-based
membership services or purchased at least one type of online
marketing services in a given period. One paying business user can
open up several paying user accounts on one or multiple online
platforms. The number and the percentage calculation does not
include paying business users on Ganji as the Company stopped
selling stand-alone Ganji subscription-based membership services in
2018 or earlier in all of its content categories.
|
[3] Non-GAAP income from operations
is defined as income from operations excluding share-based
compensation expenses and amortization of intangible assets
resulting from business acquisitions. See "Reconciliation of GAAP
and Non-GAAP Results" at the end of this press release.
|
[4] Non-GAAP net income attributable
to 58.com Inc. ordinary shareholders is defined as net income
attributable to 58.com Inc. ordinary shareholders excluding
share-based compensation expenses, amortization of intangible
assets resulting from business acquisitions, change in fair value
of long-term investments and investment in convertible note,
share-based compensation expenses included in share of results of
equity investees, and income tax effects of GAAP to non-GAAP
reconciling items. See "Reconciliation of GAAP and Non-GAAP
Results" at the end of this press release.
|
[5] Non-GAAP basic and diluted
earnings per ADS is defined as non-GAAP net income attributable to
58.com Inc. ordinary shareholders divided by weighted average
number of basic and diluted ADSs.
|
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online
classifieds marketplace, as measured by monthly unique
visitors on both its www.58.com website and mobile applications.
The Company's online marketplace enables local business users and
consumer users 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. For more information on 58.com, please visit
http://www.58.com.
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 outbreak of COVID-19 or other
health epidemics in China or
globally; 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
|
(in thousands,
except share and per share data, unless otherwise
noted)
|
|
As
of
|
|
December
31,2018
|
December
31,2019
|
December
31,2019
|
|
RMB
|
RMB
|
US$
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
2,387,478
|
5,293,206
|
758,752
|
Restricted
cash-current
|
812,000
|
477,099
|
68,390
|
Term
deposits
|
-
|
70,000
|
10,034
|
Short-term
investments
|
4,587,610
|
8,414,348
|
1,206,151
|
Accounts receivable,
net
|
917,443
|
1,209,251
|
173,339
|
Prepayments and other
current assets
|
813,403
|
2,326,920
|
333,551
|
Total current
assets
|
9,517,934
|
17,790,824
|
2,550,217
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
1,329,752
|
1,305,793
|
187,178
|
Intangible assets,
net
|
1,099,945
|
886,565
|
127,084
|
Right-of-use assets,
net
|
-
|
275,459
|
39,486
|
Land use rights,
net
|
3,610
|
3,532
|
506
|
Goodwill
|
15,874,220
|
15,874,220
|
2,275,482
|
Long-term
investments
|
3,365,906
|
6,086,511
|
872,468
|
Investment in
convertible note
|
-
|
669,715
|
96,000
|
Long-term prepayments
and other non-current assets
|
639,478
|
469,592
|
67,314
|
Total non-current
assets
|
22,312,911
|
25,571,387
|
3,665,518
|
Total
assets
|
31,830,845
|
43,362,211
|
6,215,735
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
loans
|
812,794
|
-
|
-
|
Accounts
payable.
|
887,558
|
1,042,697
|
149,465
|
Deferred
revenues
|
2,348,333
|
2,154,920
|
308,896
|
Customer
advances
|
1,465,169
|
1,986,108
|
284,698
|
Taxes
payable
|
250,231
|
698,104
|
100,069
|
Salary and welfare
payable
|
642,445
|
753,267
|
107,977
|
Operating lease
liabilities, current
|
-
|
137,310
|
19,683
|
Accrued expenses and
other current liabilities
|
878,368
|
1,053,007
|
150,943
|
Total current
liabilities
|
7,284,898
|
7,825,413
|
1,121,731
|
Non-current
liabilities:
|
|
|
|
Deferred tax
liabilities
|
283,112
|
389,719
|
55,864
|
Operating lease
liabilities, non-current.
|
-
|
138,554
|
19,861
|
Other non-current
liabilities
|
1,675
|
-
|
-
|
Total non-current
liabilities
|
284,787
|
528,273
|
75,725
|
Total
liabilities
|
7,569,685
|
8,353,686
|
1,197,456
|
Mezzanine
equity:
|
|
|
|
Mezzanine classified
noncontrolling interests
|
1,944,397
|
3,668,876
|
525,913
|
Total mezzanine
equity
|
1,944,397
|
3,668,876
|
525,913
|
Shareholders'
equity:
|
|
|
|
58.com Inc.
shareholders' equity:
|
|
|
|
Ordinary shares
(US$0.00001 par value, 4,800,000,000 Class A and
200,000,000 Class B shares authorized, 250,858,415
Class A and
45,586,164 Class B shares issued and outstanding as of
December 31,
2018 and 254,045,293 Class A and 45,232,120 Class B
shares issued
and outstanding as of
December 31, 2019, respectively)
|
19
|
19
|
3
|
Additional paid-in
capital
|
21,621,665
|
21,942,829
|
3,145,384
|
Retained
earnings
|
439,514
|
8,892,773
|
1,274,730
|
Accumulated other
comprehensive income/(loss)
|
(40,622)
|
95,903
|
13,747
|
Total 58.com Inc.
shareholders' equity
|
22,020,576
|
30,931,524
|
4,433,864
|
Noncontrolling
interests
|
296,187
|
408,125
|
58,502
|
Total shareholders'
equity
|
22,316,763
|
31,339,649
|
4,492,366
|
Total liabilities,
mezzanine equity and shareholders' equity
|
31,830,845
|
43,362,211
|
6,215,735
|
58.com Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except share, per share and per ADS data, unless otherwise
noted)
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Year Ended
|
|
December
31,
2018
|
December
31,
2019
|
December
31,
2019
|
|
December
31,
2018
|
December
31,
2019
|
December
31,
2019
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
Revenues:
|
|
|
|
|
|
|
|
Membership
|
1,122,208
|
1,112,362
|
159,451
|
|
4,399,058
|
4,470,916
|
640,881
|
Online marketing
services
|
2,275,034
|
2,713,807
|
389,009
|
|
8,282,593
|
10,158,442
|
1,456,157
|
E-commerce
services
|
25,954
|
53,722
|
7,701
|
|
72,596
|
266,848
|
38,251
|
Other
revenues
|
186,115
|
275,643
|
39,512
|
|
383,568
|
680,317
|
97,520
|
Total
revenues
|
3,609,311
|
4,155,534
|
595,673
|
|
13,137,815
|
15,576,523
|
2,232,809
|
Cost of
revenues(1)
|
(457,691)
|
(565,985)
|
(81,131)
|
|
(1,437,795)
|
(1,798,407)
|
(257,792)
|
Gross
profit
|
3,151,620
|
3,589,549
|
514,542
|
|
11,700,020
|
13,778,116
|
1,975,017
|
Operating
expenses(1):
|
|
|
|
|
|
|
|
Sales and marketing
expenses(2)
|
(1,719,902)
|
(2,023,502)
|
(290,058)
|
|
(6,861,845)
|
(8,049,662)
|
(1,153,875)
|
Research and
development expenses
|
(493,524)
|
(560,746)
|
(80,380)
|
|
(1,702,748)
|
(2,058,663)
|
(295,098)
|
General and
administrative expenses
|
(231,819)
|
(264,172)
|
(37,868)
|
|
(748,766)
|
(817,302)
|
(117,156)
|
Total operating
expenses
|
(2,445,245)
|
(2,848,420)
|
(408,306)
|
|
(9,313,359)
|
(10,925,627)
|
(1,566,129)
|
Income from
operations
|
706,375
|
741,129
|
106,236
|
|
2,386,661
|
2,852,489
|
408,888
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
Interest income,
net
|
11,895
|
27,841
|
3,991
|
|
15,529
|
55,937
|
8,019
|
Investment
income/(loss), net
|
(190,866)
|
1,924,195
|
275,823
|
|
35,360
|
6,138,742
|
879,955
|
Share of results of
equity investees
|
(15,802)
|
9,806
|
1,406
|
|
(91,497)
|
(9,423)
|
(1,351)
|
Foreign currency
exchange gain/(loss), net
|
701
|
(8,601)
|
(1,233)
|
|
597
|
(17,592)
|
(2,522)
|
Others, net
|
29,554
|
134,871
|
19,333
|
|
82,113
|
259,407
|
37,185
|
Income before
tax
|
541,857
|
2,829,241
|
405,556
|
|
2,428,763
|
9,279,560
|
1,330,174
|
Income tax
expenses
|
(93,439)
|
(158,122)
|
(22,666)
|
|
(299,705)
|
(834,334)
|
(119,597)
|
Net
income
|
448,418
|
2,671,119
|
382,890
|
|
2,129,058
|
8,445,226
|
1,210,577
|
Net loss/(income)
attributable to noncontrolling interests
|
(2,931)
|
4,075
|
584
|
|
139
|
8,033
|
1,151
|
Net income
attributable to 58.com Inc.
|
445,487
|
2,675,194
|
383,474
|
|
2,129,197
|
8,453,259
|
1,211,728
|
Deemed dividend to
mezzanine classified noncontrolling
interests
|
(34,551)
|
(65,428)
|
(9,379)
|
|
(132,202)
|
(175,045)
|
(25,092)
|
Net income
attributable to 58.com Inc. ordinary shareholders
|
410,936
|
2,609,766
|
374,095
|
|
1,996,995
|
8,278,214
|
1,186,636
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Year Ended
|
|
December
31,
2018
|
December
31,
2019
|
December
31,
2019
|
|
December
31,
2018
|
December
31,
2019
|
December
31,
2019
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
|
|
|
|
|
|
|
|
Net earnings per
ordinary share attributable to ordinary
shareholders ‑ basic
|
1.39
|
8.72
|
1.25
|
|
6.77
|
27.79
|
3.98
|
Net earnings per
ordinary share attributable to ordinary
shareholders ‑ diluted
|
1.38
|
8.64
|
1.24
|
|
6.66
|
27.46
|
3.94
|
Net earnings per ADS
attributable to ordinary shareholders – basic
(1 ADS represents 2 Class A ordinary
shares)
|
2.78
|
17.45
|
2.50
|
|
13.54
|
55.59
|
7.97
|
Net earnings per ADS
attributable to ordinary shareholders – diluted
(1 ADS represents 2 Class A ordinary
shares)
|
2.75
|
17.28
|
2.48
|
|
13.33
|
54.92
|
7.87
|
Weighted average
number of ordinary shares used in computing
basic earnings per share
|
295,558,994
|
299,155,358
|
299,155,358
|
|
294,902,518
|
297,836,268
|
297,836,268
|
Weighted average
number of ordinary shares used in computing
diluted earnings per share
|
298,705,512
|
302,001,274
|
302,001,274
|
|
299,711,258
|
301,449,100
|
301,449,100
|
Note:
|
(1) Share‑based
compensation expenses were allocated in cost of revenues and
operating expenses as follows:
|
|
Cost of
revenues
|
2,041
|
2,895
|
415
|
|
6,354
|
7,743
|
1,110
|
Sales and marketing
expenses
|
27,158
|
31,612
|
4,531
|
|
90,919
|
109,011
|
15,626
|
Research and
development expenses
|
55,909
|
62,520
|
8,962
|
|
182,410
|
208,273
|
29,855
|
General and
administrative expenses
|
52,695
|
61,935
|
8,878
|
|
183,191
|
219,675
|
31,489
|
Amortization of
intangible assets resulting from business acquisitions were
allocated in operating expenses as follows:
|
|
Sales and marketing
expenses
|
43,410
|
43,087
|
6,176
|
|
174,333
|
172,882
|
24,782
|
Research and
development expenses
|
11,997
|
12,015
|
1,723
|
|
47,028
|
48,048
|
6,887
|
(2) Breakdown of
sales and marketing expenses was as follows:
|
|
Advertising
expenses
|
796,505
|
865,144
|
124,014
|
|
3,309,560
|
3,717,505
|
532,884
|
Non-advertising sales
and marketing expenses
|
923,397
|
1,158,358
|
166,044
|
|
3,552,285
|
4,332,157
|
620,991
|
58.com Inc.
|
Reconciliation of
GAAP and Non-GAAP Results
|
(in thousands,
except share, ADS, per share and per ADS data, unless otherwise
noted)
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Year Ended
|
|
December
31,
2018
|
December
31,
2019
|
December
31,
2019
|
|
December
31,
2018
|
December
31,
2019
|
December
31,
2019
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
|
|
|
|
|
|
|
|
GAAP income from
operations
|
706,375
|
741,129
|
106,236
|
|
2,386,661
|
2,852,489
|
408,888
|
Share-based
compensation expenses[6]
|
132,777
|
154,244
|
22,110
|
|
443,312
|
526,994
|
75,541
|
Amortization of intangible
assets resulting from business
acquisitions
|
55,407
|
55,102
|
7,899
|
|
221,361
|
220,930
|
31,669
|
Non-GAAP income
from operations
|
894,559
|
950,475
|
136,245
|
|
3,051,334
|
3,600,413
|
516,098
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to 58.com Inc. ordinary
shareholders
|
410,936
|
2,609,766
|
374,095
|
|
1,996,995
|
8,278,214
|
1,186,636
|
Share-based
compensation expenses
|
132,777
|
154,244
|
22,110
|
|
443,312
|
526,994
|
75,541
|
Amortization of intangible
assets resulting from business
acquisitions
|
55,407
|
55,102
|
7,899
|
|
221,361
|
220,930
|
31,669
|
Change in fair value
of long-term investments and
investment in convertible
note[7]
|
206,700
|
2,258,544
|
323,750
|
|
139,250
|
(1,139,844)
|
(163,390)
|
Share-based compensation expenses included in share of
results of equity investees
|
14
|
-
|
-
|
|
15
|
9
|
1
|
Income tax effects of
GAAP to non-GAAP reconciling
items[8]
|
(49,519)
|
(200,057)
|
(28,677)
|
|
(77,849)
|
91,614
|
13,132
|
Non-GAAP net income
attributable to 58.com Inc. ordinary shareholders
|
756,315
|
4,877,599
|
699,177
|
|
2,723,084
|
7,977,917
|
1,143,589
|
|
|
|
|
|
|
|
|
[6] Since the third quarter of 2017,
certain share-based awards with redemption features granted to the
Company's employees were expected to be settled in cash and were
classified as liabilities. The share-
based compensation expenses recognized for this type of awards
amounted to RMB5.0 million and RMB19.6 million for the three months
and the year ended December 31, 2018, respectively, and RMB4.7
million and RMB17.7 million for the three months and the year ended
December 31, 2019, respectively, which were excluded from the GAAP
to non-GAAP reconciliation accordingly.
|
[7] The purpose of this
reconciliation is to exclude the unrealized gain or loss relating
to changes in fair value of long-term investments and investment in
convertible note. The amount of realization of any
previously recognized unrealized gain or loss in a given period is
also included in this line item so that the non-GAAP net income
would only include cumulative realized gain or loss.
|
[8] This is to exclude the income tax
effects related to amortization of intangible assets resulting from
business acquisitions and change in fair value of long-term
investments and investment in convertible note.
Other GAAP to non-GAAP reconciling items have no income tax
effect.
|
|
For the Three
Months Ended
|
|
For the Fiscal
Year Ended
|
|
December
31,
2018
|
December
31,
2019
|
December
31,
2019
|
|
December
31,
2018
|
December
31,
2019
|
December
31,
2019
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
GAAP operating
margin
|
19.6%
|
17.8%
|
17.8%
|
|
18.2%
|
18.3%
|
18.3%
|
Share-based compensation expenses
|
3.7%
|
3.7%
|
3.7%
|
|
3.4%
|
3.4%
|
3.4%
|
Amortization of
intangible assets resulting from business
acquisitions
|
1.5%
|
1.4%
|
1.4%
|
|
1.6%
|
1.4%
|
1.4%
|
Non-GAAP operating
margin
|
24.8%
|
22.9%
|
22.9%
|
|
23.2%
|
23.1%
|
23.1%
|
|
|
|
|
|
|
|
|
GAAP net
margin
|
11.4%
|
62.8%
|
62.8%
|
|
15.2%
|
53.1%
|
53.1%
|
Share-based
compensation expenses
|
3.7%
|
3.7%
|
3.7%
|
|
3.4%
|
3.4%
|
3.4%
|
Amortization of intangible
assets resulting from business
acquisitions
|
1.5%
|
1.4%
|
1.4%
|
|
1.6%
|
1.4%
|
1.4%
|
Change in fair value
of long-term investments and
investment in convertible note
|
5.7%
|
54.4%
|
54.4%
|
|
1.0%
|
(7.3)%
|
(7.3)%
|
Share-based compensation expenses included in share of
results of equity investees
|
0.0%
|
0.0%
|
0.0%
|
|
0.0%
|
0.0%
|
0.0%
|
Income tax effects of
GAAP to non-GAAP reconciling
items
|
(1.3)%
|
(4.9)%
|
(4.9)%
|
|
(0.5)%
|
0.6%
|
0.6%
|
Non-GAAP net
margin
|
21.0%
|
117.4%
|
117.4%
|
|
20.7%
|
51.2%
|
51.2%
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
computing non-GAAP basic earnings per
share
|
295,558,994
|
299,155,358
|
299,155,358
|
|
294,902,518
|
297,836,268
|
297,836,268
|
Weighted average
number of ordinary shares used in
computing non-GAAP diluted earnings per
share
|
298,705,512
|
302,001,274
|
302,001,274
|
|
299,711,258
|
301,449,100
|
301,449,100
|
Weighted average
number of ADS used in computing non-
GAAP basic earnings per ADS
|
147,779,497
|
149,577,679
|
149,577,679
|
|
147,451,259
|
148,918,134
|
148,918,134
|
Weighted average
number of ADS used in computing non-
GAAP diluted earnings per ADS
|
149,352,756
|
151,000,637
|
151,000,637
|
|
149,855,629
|
150,724,550
|
150,724,550
|
|
|
|
|
|
|
|
|
Non-GAAP net earnings
per ordinary share attributable to
ordinary shareholders ‑ basic
|
2.56
|
16.30
|
2.34
|
|
9.23
|
26.79
|
3.84
|
Non-GAAP net earnings
per ordinary share attributable to
ordinary shareholders ‑ diluted
|
2.53
|
16.15
|
2.32
|
|
9.09
|
26.47
|
3.79
|
Non-GAAP net earnings
per ADS attributable to ordinary
shareholders ‑ basic
|
5.12
|
32.61
|
4.67
|
|
18.47
|
53.57
|
7.68
|
Non-GAAP net earnings
per ADS attributable to ordinary
shareholders ‑ diluted
|
5.06
|
32.30
|
4.63
|
|
18.17
|
52.93
|
7.59
|
View original
content:http://www.prnewswire.com/news-releases/58com-reports-fourth-quarter-and-fiscal-year-2019-unaudited-financial-results-301021711.html
SOURCE 58.com Inc