SINA Reports Fourth Quarter and Fiscal Year 2015 Financial Results

Mar 02, 2016, 16:30 ET from SINA Corporation

SHANGHAI, March 2, 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 fourth quarter and the fiscal year ended December 31, 2015.

Fourth Quarter 2015 Highlights

  • Net revenues increased 21% year over year to $256.2 million. Non-GAAP net revenues increased 22% year over year to $253.6 million.
  • Advertising revenues grew 23% year over year to $223.2 million. Non-advertising revenues were $33.0 million. Non-GAAP non-advertising revenues were $30.4 million.
  • Net income attributable to SINA was $14.6 million, or $0.21 diluted net income per share attributable to SINA. Non-GAAP net income attributable to SINA was $24.8 million, or $0.35 non-GAAP diluted net income per share attributable to SINA.

Fiscal Year 2015 Highlights

  • Net revenues increased 15% year over year to $880.7 million. Non-GAAP net revenues increased 15% year over year to $870.2 million, within the Company's annual guidance between $800 million and $900 million.
  • Advertising revenues grew 16% year over year to $743.2 million. Non-advertising revenues were $137.4 million. Non-GAAP non-advertising revenues were $127.0 million.
  • Net income attributable to SINA was $25.7 million, or $0.40 diluted net income per share attributable to SINA. Non-GAAP net income attributable to SINA was $56.2 million, or $0.89 non-GAAP diluted net income per share attributable to SINA.

"We are delighted that SINA closed the year 2015 with a solid quarter on both Weibo and portal." said Charles Chao, Chairman and CEO of SINA. "2015 was a remarkable year for Weibo. Our user community continues to grow at a rapid pace, our user engagements are improving, our operations are optimized and Weibo monetization is showing strong momentum. We are particularly encouraged by Weibo's strong performance in the mobile and social landscape. Heading into 2016, we believe that Weibo will continue to execute core strategies to grow user base and enhance user engagement, capitalize mobile traffic and capture opportunities on new horizons, such as short video. We will continue to build our businesses through diversifying mobile ad offerings, improving ad effectiveness and expanding our customer base to bring our platform into full potential." said Charles Chao, Chairman and CEO of SINA.

"On the portal side, we have prioritized mobile strategy and have witnessed meaningful increase in share of mobile traffic and consistent improvement in mobile monetization. To further leverage our brand equity and achieve long-term growth, we restructured the organization to better execute vertical strategy internally and formed strategic alliance with partners in the related vertical areas. As we enter into 2016, we will embrace opportunities as well as challenges ahead of us. Other than our persistent efforts in generating and monetization of mobile traffic, we will continue to focus on what SINA does the best and invest in opportunities to solidify our core business, scale up our customer base and enable more vertical transactions on our platform." Mr. Chao added.

Fourth Quarter 2015 Financial Results

For the fourth quarter of 2015, SINA reported net revenues of $256.2 million, compared to $211.1 million for the same period last year. Non-GAAP net revenues for the fourth quarter of 2015 totaled $253.6 million, compared to $208.5 million for the same period last year.

Online advertising revenues for the fourth quarter of 2015 were $223.2 million, compared to $181.9 million for the same period last year. The year-over-year growth in online advertising revenues resulted from an increase of $41.6 million in Weibo advertising revenues. Portal advertising revenues remained flat compared with the same period last year.

Non-advertising revenues for the fourth quarter of 2015 were $33.0 million. Non-GAAP non-advertising revenues for the fourth quarter of 2015 were $30.4 million, compared to $26.6 million for the same period last year. The year-over-year growth in non-GAAP non-advertising revenues was mainly due to an increase of $2.3 million in Weibo value added services revenues and an increase of $1.5 million in portal non-advertising revenues.

Gross margin for the fourth quarter of 2015 was 65%. Non-GAAP gross margin for the fourth quarter of 2015 was 65%, at similar level for the same period last year. Advertising gross margin for the fourth quarter of 2015 was 65%, at similar level for the same period last year. Non-advertising gross margin for the fourth quarter of 2015 was 66%.

Operating expenses for the fourth quarter of 2015 totaled $137.5 million, compared to $132.9 million for the same period last year. Non-GAAP operating expenses for the fourth quarter of 2015 totaled $125.0 million, compared to $123.3 million for the same period last year.

Income from operations for the fourth quarter of 2015 was $29.6 million, compared to $3.9 million for the same period last year. Non-GAAP income from operations for the fourth quarter of 2015 was $40.7 million, compared to $11.7 million for the same period last year. The significant improvement in income from operations attributes primarily to the operational leverage achieved by Weibo.  

Non-operating loss for the fourth quarter of 2015 was $2.1 million, compared to a non-operating income of $64.1 million for the same period last year. Non-operating loss for the fourth quarter 2015 mainly included (i) a $4.3 million interest and other income; and (ii) a $6.7 million other-than-temporary impairment of certain investments, which is excluded under non-GAAP measure. Non-operating income for the fourth quarter of 2014 mainly included a $49.2 million gain as a result of the initial public offering of Tian Ge and a $7.8 million dividend from an investee, which were excluded under non-GAAP measure.  

Net income attributable to SINA for the fourth quarter of 2015 was $14.6 million, compared to $59.8 million for the same period last year. Diluted net income per share attributable to SINA for the fourth quarter of 2015 was $0.21, compared to $0.90 for the same period last year. Non-GAAP net income attributable to SINA for the fourth quarter of 2015 was $24.8 million, compared to $15.9 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA for the fourth quarter of 2015 was $0.35, compared to $0.24 for the same period last year.

As of December 31, 2015, SINA's cash, cash equivalents and short-term investments totaled $2.4 billion, compared to $2.2 billion as of December 31, 2014. The increase in cash, cash equivalents, and short term investments was mainly due to $328.1 million cash generated from the operating activities and cash proceeds of $456.4 million from the issuance and sale of 11,000,000 shares to a special purpose vehicle controlled by Mr. Charles Chao, the Company's Chairman and CEO in the fourth quarter of 2015, partially offset by investments made in 2015. For the fourth quarter of 2015, net cash provided by operating activities was $98.9 million, capital expenditures totaled $15.0 million, and depreciation and amortization expenses amounted to $7.7 million.

Fiscal Year 2015 Financial Results

For fiscal year 2015, SINA reported net revenues of $880.7 million, compared to $768.2 million in 2014. Non-GAAP net revenues for 2015 totaled $870.2 million, compared to $756.3 million in 2014.

Online advertising revenues in 2015 were $743.2 million, compared to $640.3 million in 2014. The year-over-year growth in online advertising revenues resulted from an increase of $137.6 million in Weibo advertising revenues, partially offset by a decline of $34.7 million of portal advertising revenues.

Non-advertising revenues in 2015 were $137.4 million. Non-GAAP non-advertising revenues in 2015 were $127.0 million, compared to $116.0 million in 2014.

Gross margin in 2015 was 62%. Non-GAAP gross margin in 2015 was 62%, at similar level in 2014. Advertising gross margin in 2015 was 62%. Non-advertising gross margin in 2015 was 60%.

Operating expenses in 2015 totaled $533.1 million, compared to $518.8 million in 2014. Non-GAAP operating expenses in 2015 totaled $478.6 million, compared to $471.7 million in 2014.

Income from operations in 2015 was $12.2 million, compared to a loss of $40.9 million in 2014. Non-GAAP income from operations in 2015 was $61.5 million, compared to a loss of $2.5 million in 2014. The significant improvement in income from operations was mainly driven by the operation leverage achieved by Weibo.  

Non-operating income in 2015 was $33.9 million, compared to a non-operating income of $209.7 million in 2014. Non-operating income in 2015 mainly included (i) a $22.4 million interest and other income; and (ii) an $11.3 million net gain on sale of and impairment on investments, which is excluded under non-GAAP measure. Non-operating income in 2014 mainly included (i) a $109.2 million gain from the sale of a portion the Company's investment in Alibaba, (ii) a $49.2 million gain as a result of the initial public offering of Tian Ge; (iii) a deemed dilution gain of $29.1 million from Tencent's acquisition of a 15% equity interest in Leju; and (iv) a $19.2 million gain as a result of the initial public offering of Leju. These gains totaled $206.7 million were excluded under non-GAAP measure.

Net income attributable to SINA in 2015 was $25.7 million, compared to $176.8 million in 2014. Diluted net income per share attributable to SINA in 2015 was $0.40, compared to $2.63 in 2014. Non-GAAP net income attributable to SINA in 2015 was $56.2 million, compared to $52.3 million in 2014. Non-GAAP diluted net income per share attributable to SINA in 2015 was $0.89, compared to $0.76 for 2014.

Business Outlook

For the year 2016, SINA estimates that its non-GAAP net revenues are between $850 million and $950 million, which assumes that RMB depreciates to US dollar at an average rate of 8.5% in 2016 and excludes the recognition of $10.4 million in deferred license revenues from E-House. This forecast reflects SINA's current and preliminary view, which is subject to change.

Share Repurchase Plan

SINA's board of directors has approved a new share repurchase plan whereby SINA is authorized to repurchase its own ordinary shares with an aggregate value of up to US$500 million for a period through the end of June 2017. SINA expects to fund the repurchase out of its existing cash balance.‎ The share repurchase may be effected on the open market at prevailing market prices and/or in negotiated transactions off the market from time to time as market conditions warrant and will be implemented in accordance with applicable rules under the U.S. Securities Exchange Act of 1934, as amended.

Non-GAAP Measures

This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP non-advertising gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income attributable to SINA and non-GAAP diluted net income 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 net of tax, adjustment for non-GAAP to GAAP reconciling items on the share of equity method investments, gain/loss on sale of investment, deemed disposal and impairment on investment, impairment on goodwill, change in fair value of investor option liability, adjustment for non-GAAP to GAAP reconciling items for the gain/loss attributable to non-controlling interests and amortization of convertible debt issuance cost. The Company's management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company's ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company's current financial results with the Company's past financial results in a consistent manner, and (ii) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook.

Use of non-GAAP financial measures has limitations. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations.  They may not be comparable to non-GAAP financial measures used by other companies. Management compensates for these limitations by also considering the Company's financial results prepared in accordance with U.S. GAAP. Reconciliations of the Company's non-GAAP measures to the nearest comparable GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results."

Conference Call

SINA will host a conference call from 9:10 p.m.9:50 p.m. Eastern Time on March 2, 2016 (or 10:10 a.m.10:50 a.m. Beijing Time on March 3, 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:

55704801

A replay of the conference call will be available through morning Eastern Time March 11, 2016. The dial-in number is +61 2 9003 4211. The passcode for the replay is 55704801.

About SINA

We are an online media company serving China and the global Chinese communities. Our digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile apps) and Weibo (social media) enables Internet users to access professional media and user generated content in multi-media formats from desktop 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. Our mobile portal, SINA.cn, provides news information 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 the "Business Outlook" section and 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 SINA's limited operating history in certain new businesses; 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; the Company's reliance on mobile operators in China to provide MVAS and changes in mobile operators' policies for MVAS in China; failure to successfully integrate acquired businesses; risks associated with the Company's investments, including equity pick-up and impairment; changes in the macro-economic environment, including the depreciation of the Renminbi; 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, 2014 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)

For the three months ended

For the year ended

December 31,

September 30,

December 31,

2015

2014

2015

2015

2014

Net revenues:

    Advertising

$              223,159

$                181,935

$              193,459

$              743,229

$              640,286

    Non-advertising

33,031

29,202

32,835

137,440

127,955

256,190

211,137

226,294

880,669

768,241

Cost of revenues:

    Advertising  *

77,787

63,315

69,741

280,455

244,697

    Non-advertising

11,267

11,069

13,276

54,925

45,644

89,054

74,384

83,017

335,380

290,341

Gross profit

167,136

136,753

143,277

545,289

477,900

Operating expenses:

    Sales and marketing *

62,851

61,069

53,342

230,428

228,927

    Product development *

51,953

50,719

54,417

209,771

192,322

    General and administrative *

22,745

21,102

20,830

92,868

83,039

    Impairment on goodwill

-

-

-

-

14,526

137,549

132,890

128,589

533,067

518,814

Income (Loss) from operations

29,587

3,863

14,688

12,222

(40,914)

Non-operating income (loss):

   Earning (Loss) from equity method investments, net

(798)

3,167

93

218

19,471

   Gain (Loss) on sale of and impairment on investments, net

(5,570)

53,081

(1,066)

11,311

208,231

   Change in fair value of investor option liability

-

-

-

-

(46,972)

   Interest and other income, net

4,262

7,835

5,892

22,392

28,925

(2,106)

64,083

4,919

33,921

209,655

Income  before income taxes

27,481

67,946

19,607

46,143

168,741

Income tax expenses

(5,627)

(7,004)

(4,756)

(10,420)

(6,970)

Net income

21,854

60,942

14,851

35,723

161,771

   Less: Net income (loss) attributable to non-controlling interests

7,301

1,191

5,085

10,045

(15,031)

Net income attributable to SINA

$                14,553

$                   59,751

$                   9,766

$                 25,678

$              176,802

Basic net income per share attributable to SINA

$                    0.22

$                       0.95

$                     0.17

$                     0.43

$                     2.72

Diluted net income per share attributable to SINA **

$                    0.21

$                       0.90

$                     0.16

$                     0.40

$                     2.63

Shares used in computing basic

   net income per share attributable to SINA

65,272

63,017

58,512

60,237

64,950

Shares used in computing diluted

   net income per share attributable to SINA

65,927

69,524

58,799

60,648

71,565

* Stock-based compensation in each category:

Cost of revenues - advertising

$                  1,141

$                        809

$                   1,569

$                   5,272

$                   3,231

Sales and marketing

2,456

1,377

3,121

10,793

5,092

Product development

3,371

2,242

4,264

14,234

7,217

General and administrative

5,881

5,107

6,437

25,840

16,953

** 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)

December 31,

December 31,

2015

2014

Assets

Current assets:

Cash and cash equivalents

$               904,091

$            1,223,682

Short-term investments

1,446,414

942,856

Accounts receivable, net

228,732

259,764

Prepaid expenses and other current assets*

140,308

105,347

      Subtotal

2,719,545

2,531,649

Property and equipment, net

47,495

63,729

Goodwill and intangible assets, net

61,954

64,489

Long-term investments, net

1,212,640

860,003

Other assets*

320,205

183,458

Total assets

$            4,361,839

$            3,703,328

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable

$                    3,550

$                    3,853

Accrued liabilities*

483,943

319,126

Convertible debt

800,000

-

Deferred revenues

79,528

50,557

Income taxes payable

16,426

17,979

     Subtotal

1,383,447

391,515

Convertible debt

-

800,000

Long-term deferred revenue

76,003

85,391

Other long-term liabilities*

25,721

5,152

     Total liabilities

1,485,171

1,282,058

Shareholders' equity

SINA shareholders' equity

2,565,272

2,145,772

Non-controlling interests

311,396

275,498

     Total shareholders' equity 

2,876,668

2,421,270

Total liabilities and shareholders' equity

$            4,361,839

$            3,703,328

* In 2015, the Company early adopted the guidance of ASU 2015-17 issued by FASB in November 2015, which requires entities to present deferred tax assets (''DTA'') and deferred tax liabilities (''DTL'') as non-current in the balance sheets.  Pursuant to the guidance, the Company retrospectively reclassified $3.9 million of current DTA from prepaid expenses and other current assets into other assets, and reclassified $1.1 million of current DTL from accrued liabilities to other long-term liabilities in the consolidated balance sheet as of December 31, 2014.

 

SINA CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(U.S. Dollars in thousands)

For the three months ended

For the year ended

December 31,

September 30,

December 31,

2015

2014

2015

2015

2014

Net revenues

Portal:

Portal Advertising

$                 93,632

$                 93,962

$                 87,598

$              340,814

$              375,504

Other

13,533

11,963

13,962

61,964

58,565

Subtotal

107,165

105,925

101,560

402,778

434,069

Weibo

149,025

105,212

124,734

477,891

334,172

$              256,190

$              211,137

$              226,294

$              880,669

$              768,241

Cost of revenues

Portal:

Portal Advertising

$                 40,601

$                 41,299

$                 37,240

$              157,862

$              172,078

Other

6,348

7,299

8,536

35,558

34,664

Subtotal

46,949

48,598

45,776

193,420

206,742

Weibo

42,105

25,786

37,241

141,960

83,599

$                 89,054

$                 74,384

$                 83,017

$              335,380

$              290,341

 

SINA CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(U.S. dollars in thousands, except per share data)

For the three months ended

December 31, 2015

December 31, 2014

September 30, 2015

Non-GAAP

Non-GAAP

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

Actual

Adjustments

Results

Advertising revenues

$   223,159

$   223,159

$     181,935

$   181,935

$   193,459

$   193,459

Non-advertising revenues

33,031

(2,609)

 (a) 

30,422

29,202

(2,609)

 (a) 

26,593

32,835

(2,609)

 (a) 

30,226

Net revenues

$   256,190

$            (2,609)

$   253,581

$     211,137

$            (2,609)

$   208,528

$   226,294

$            (2,609)

$   223,685

(2,609)

 (a) 

(2,609)

 (a) 

(2,609)

 (a) 

1,141

 (b) 

809

 (b) 

1,569

 (b) 

Gross profit

$   167,136

$            (1,468)

$   165,668

$     136,753

$            (1,800)

$   134,953

$   143,277

$            (1,040)

$   142,237

(11,708)

 (b) 

(8,726)

 (b) 

(13,822)

 (b) 

(873)

 (c) 

(904)

 (c) 

(883)

 (c) 

Operating expenses

$   137,549

$          (12,581)

$   124,968

$     132,890

$            (9,630)

$   123,260

$   128,589

$          (14,705)

$   113,884

(2,609)

 (a) 

(2,609)

 (a) 

(2,609)

 (a) 

12,849

 (b) 

9,535

 (b) 

15,391

 (b) 

873

 (c) 

904

 (c) 

883

 (c) 

Income from operations

$     29,587

$            11,113

$     40,700

$          3,863

$              7,830

$     11,693

$     14,688

$            13,665

$     28,353

(2,609)

 (a) 

(2,609)

 (a) 

(2,609)

 (a) 

12,849

 (b) 

9,535

 (b) 

15,391

 (b) 

671

 (c) 

694

 (c) 

677

 (c) 

(719)

 (e) 

2,411

 (e) 

2,882

 (e) 

5,570

(f)

(53,081)

(f)

1,066

(f)

(6,592)

(h)

(2,160)

(h)

(3,850)

(h)

1,089

(i)

1,398

(i)

1,094

(i)

Net income attributable to SINA

$     14,553

$            10,259

$     24,812

$       59,751

$          (43,812)

$     15,939

$        9,766

$            14,651

$     24,417

Diluted net income per share attributable to SINA *

$          0.21

$          0.35

$            0.90

$          0.24

$          0.16

$          0.39

Shares used in computing diluted

   net income per share attributable to SINA

65,927

6,468

(j)

72,395

69,524

(6,468)

(j)

63,056

58,799

6,467

(j)

65,266

Gross margin - advertising

65%

1%

66%

65%

1%

66%

64%

1%

65%

Gross margin - non-advertising

66%

-3%

63%

62%

-4%

58%

60%

-4%

56%

 For the year ended 

December 31, 2015

December 31, 2014

Non-GAAP

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

Advertising revenues

$   743,229

$   743,229

$     640,286

$   640,286

Non-advertising revenues

137,440

(10,436)

 (a) 

127,004

127,955

(11,959)

 (a) 

115,996

Net revenues

$   880,669

$          (10,436)

$   870,233

$     768,241

$          (11,959)

$   756,282

(10,436)

 (a) 

(11,959)

 (a) 

5,272

 (b) 

3,231

 (b) 

Gross profit

$   545,289

$            (5,164)

$   540,125

$     477,900

$            (8,728)

$   469,172

(29,262)

 (b) 

(50,867)

 (b) 

(3,364)

 (c) 

(3,564)

 (c) 

(14,526)

 (d) 

Operating expenses

$   533,067

$          (54,431)

$   478,636

$     518,814

$          (47,152)

$   471,662

(11,959)

 (a) 

(10,436)

 (a) 

32,493

 (b) 

56,139

 (b) 

3,364

 (c) 

3,564

 (c) 

14,526

 (d) 

Income (Loss) from operations

$     12,222

$            49,267

$     61,489

$     (40,914)

$            38,424

$      (2,490)

(11,959)

 (a) 

32,493

 (b) 

(10,436)

 (a) 

2,592

 (c) 

56,139

 (b) 

14,526

 (d) 

2,739

 (c) 

9,095

 (e) 

5,332

 (e) 

(208,231)

 (f) 

(11,311)

(f)

46,972

 (g) 

(16,321)

(h)

(15,613)

 (h) 

4,393

(i)

5,592

 (i) 

Net income attributable to SINA

$     25,678

$            30,535

$     56,213

$     176,802

$        (124,533)

$     52,269

Diluted net income per share attributable to SINA *

$          0.40

$          0.89

$            2.63

$          0.76

Shares used in computing diluted

   net income per share attributable to SINA

60,648

-

60,648

71,565

(6,467)

 (j) 

65,098

Gross margin - advertising

62%

1%

63%

62%

-

62%

Gross margin - non-advertising

60%

-3%

57%

64%

-3%

61%

(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 and tax provision on amortization of intangible assets.

(d)  To adjust  the impairment on goodwill

(e)  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.

(f)  To adjust (gain) loss on sale of investments, (gain) loss on deemed disposal and impairment on investments, net.

(g)  To adjust the change in fair value of investor option liability.

(h)  To adjust Non-GAAP to GAAP reconciling items for the gain (loss) attributable to non-controlling interests.

(i)  To adjust the amortization of convertible debt issuance cost.

(j)  To adjust the number of shares for dilution resulted from convertible debt and unvested equity granted.

Net income attributable to SINA is adjusted for diluted shares issued by our subsidiary and equity method investments.

UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' NON-GAAP TO GAAP RESULTS*

For the three months ended

December 31, 2015

December 31, 2014

September 30, 2015

Actual

Adjustments

Non-GAAP Results

Actual

Adjustments

Non-GAAP Results

Actual

Adjustments

Non-GAAP Results

To adjust stock-based compensation

$              1,480

$              1,632

$              1,620

To adjust amortization of intangible 

  assets resulting from business acquisitions

422

473

416

To adjust gain on sale of investments

(4,752)

-

-

To adjust the (gain) loss resulting from 

  the  fair value changes in investments

1,836

-

551

Earning (Loss) from equity method investments, net

$         (503)

$              (1,014)

$      (1,517)

$          3,473

$              2,105

$        5,578

$           388

$              2,587

$        2,975

Share of amortization of equity investments' 

  intangibles not on their books

$         (295)

$                  295

$                -

$           (306)

$                  306

$                -

$         (295)

$                  295

$                -

$         (798)

$                (719)

$      (1,517)

$          3,167

$              2,411

$        5,578

$             93

$              2,882

$        2,975

 For the year ended 

December 31, 2015

December 31, 2014

Non-GAAP

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

To adjust stock-based compensation

$              5,876

$              5,515

To adjust amortization of intangible 

  assets resulting from business acquisitions

1,861

2,324

To adjust gain on sale of investments

(4,752)

-

To adjust the (gain) loss resulting from 

  the  fair value changes in investments

1,163

-

Earning from equity method investments, net

$        1,402

$              4,148

$        5,550

$       20,727

$              7,839

$     28,566

Share of amortization of equity investments' 

  intangibles not on their books

$      (1,184)

$              1,184

$                -

$        (1,256)

$              1,256

$               -

$           218

$              5,332

$        5,550

$       19,471

$              9,095

$     28,566

* Earning (Loss) from equity method investments is recorded one quarter in arrears.

SOURCE SINA Corporation



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