Youku Tudou Announces First Quarter 2014 Unaudited Financial Results

Mobile Daily Video Views Reached 400 Million; Mobile Monetization Surpassed 30% to Date

May 22, 2014, 18:00 ET from Youku Tudou Inc.

BEIJING, May 22, 2014 /PRNewswire/ -- Youku Tudou Inc. (NYSE: YOKU), China's leading Internet television company ("Youku Tudou" or the "Company"), today announced its unaudited financial results for first quarter 2014.

First Quarter 2014 Highlights[1]

  • Net revenues were RMB700.4 million (US$112.7 million),a 36% increase from the corresponding period in 2013.
  • Gross profit was RMB85.6 million (US$13.8 million), a 501% increase from the corresponding period in 2013. Non-GAAP[2] gross profit was RMB100.3 million (US$16.1 million) in the first quarter of 2014, an increase of 255% from the corresponding period in 2013.  
  • Net loss was RMB224.7 million (US$36.1 million), a 3% decrease from the corresponding period in 2013. Non-GAAP net loss was RMB148.3 million (US$23.8 million) in the first quarter of 2014, a 19% decrease from the corresponding period in 2013.
  • Basic and diluted loss per ADS, each representing 18 Class A ordinary shares of the Company, for the first quarter of 2014 amounted to RMB1.34 (US$0.22) and RMB1.34 (US$0.22), respectively. Non-GAAP basic and diluted loss per ADS for the first quarter of 2014 amounted to RMB0.88 (US$0.14) and RMB0.88 (US$0.14), respectively.
  • Cash, cash equivalents, restricted cash and short-term investments totaled RMB3.3 billion (US$525.4 million) as of March 31, 2014.
  • Acquisition of property and equipment for the first quarter of 2014 was RMB28.2 million (US$4.5 million).
  • Acquisition of intangible assets for the first quarter of 2014 was RMB165.9 million (US$26.7 million).

"Mobile has already become the #1 screen for Youku Tudou. We are the undisputed leader in all of the important mobile video traffic metrics with mobile daily video views reaching 400 million. Our continued investment in product and content development has enabled us to diversify our revenue mix, with mobile monetization surpassing 30% of total revenue to date," said Victor Koo, Chairman and Chief Executive Officer of Youku Tudou. "Online video is a key growth area for the Internet industry and we plan on further transforming Youku Tudou's business model. The transformation requires us to make additional investment in the areas of multi-screen development, diversified revenue models and content ecosystem. The strategic investment from Alibaba will boost our balance sheet and enable us to accelerate our expansion in new business opportunities."

Dele Liu, President of Youku Tudou, added, "Our growing content ecosystem represents a tremendous opportunity for Youku Tudou. We will continue to build up our content portfolio by strengthening original, partner generated and user generated content. We will also continue to invest in human resources to improve our content creation capabilities and to build out our consumer businesses. We are well-positioned to realize the full potential of the online video ecosystem and more investment will see us become an immersive culture entertainment platform."

First Quarter 2014 Results

Net revenues were RMB700.4 million (US$112.7 million) in the first quarter of 2014, a 36% increase from the corresponding period in 2013 and meeting net revenues guidance previously announced by the Company. Advertising net revenues were RMB623.3 million (US$100.3 million), meeting the advertising net revenues guidance previously announced by the Company. The growth was primarily attributable to the increased use by brand advertisers of our advertising services as evidenced by an increase in the number of advertisers and the rising average spend per advertiser.

Bandwidth costs as a component of cost of revenues were RMB201.9 million (US$32.5 million)in the first quarter of 2014, representing 29% of net revenues, as compared to 31% of net revenues for the corresponding period in 2013.

Content costs as a component of cost of revenues were RMB325.7 million (US$52.4 million) in the first quarter of 2014, representing 46% of net revenues. Non-GAAP content costs were RMB310.9 million (US$50.0 million) in the first quarter of 2014, representing 44% of net revenues, as compared to 49% of net revenues for the corresponding period in 2013.

Gross profit was RMB85.6 million (US$13.8 million)in the first quarter of 2014, an increase of 501% from the corresponding period in 2013. Non-GAAP gross profit was RMB100.3 million (US$16.1 million) in the first quarter of 2014, an increase of 255% from the corresponding period in 2013 due to strong operating leverage.

Operating expenses were RMB314.1 million (US$50.5 million) in the first quarter of 2014, as compared to RMB267.8 million (US$43.1 million) for the corresponding period in 2013. Non-GAAP operating expenses were RMB252.3 million (US$40.6 million) in the first quarter of 2014, an increase of 9% from the corresponding period in 2013. Detailed discussion of each component of operating expenses is as follows:

Sales and marketing expenses were RMB186.5 million (US$30.0 million) in the first quarter of 2014, as compared to RMB127.6 million (US$20.5 million) for the corresponding period in 2013. Non-GAAP sales and marketing expenses were RMB163.5 million (US$26.3 million) in the first quarter of 2014, an increase of 42% from the corresponding period in 2013. This increase was due to higher commission expenses paid to our sales force in line with our revenue growth and marketing expenditures on our mobile products.

Product development expenses were RMB80.7 million (US$13.0 million) in the first quarter of 2014, as compared to RMB56.8 million (US$9.1 million) for the corresponding period in 2013. Non-GAAP product development expenses were RMB62.2 million (US$10.0 million) in the first quarter of 2014, an increase of 28% from the corresponding period in 2013. This increase was primarily due to an increase in personnel related expenses for our product development in mobile, search, social, paid and live broadcasting services.

General and administrative expenses were RMB46.8 million (US$7.5 million) in the first quarter of 2014, as compared to RMB83.4 million (US$13.4 million) for the corresponding period in 2013. Non-GAAP general and administrative expenses were RMB26.6 million (US$4.3 million) in the first quarter of 2014, a decrease of 61% from the corresponding period in 2013.

Net loss was RMB224.7 million (US$36.1 million)in the first quarter of 2014, a decrease of 3% compared to RMB232.5 million (US$37.4 million) for the corresponding period in 2013. Non-GAAP net loss was RMB148.3 million (US$23.8 million) in the first quarter of 2014, a decrease of 19% from the corresponding period in 2013.

Non-GAAP adjusted EBITDA Loss was RMB120.2 million (US$19.3 million) in the first quarter of 2014, a decrease of 32% from the corresponding period in 2013.

Business Outlook

For the second quarter of 2014, the Company expects net revenues will be between RMB940 million and RMB1 billion, with advertising net revenues contributing between RMB910 million and RMB950 million. This forecast reflects the Company's current and preliminary view, which is subject to change.

Conference Call Information

Youku Tudou's management will host an earnings conference call at 9:00 p.m. U.S. Eastern Time on May 22, 2014 (9:00 a.m. Beijing/Hong Kong Time on May 23, 2014).

Interested parties may participate in the conference call by dialing one of the following numbers below and entering passcode Youku# (i.e., 96858#) starting 10-15 minutes prior to the beginning of the call.

US Toll Free Dial In: 1-866-519-4004 
 International Dial In: +65-6723-9381 Mainland China Toll Free Dial In: +86-400-620-8038 / +86-800-819-0121
 Hong Kong Dial In: +852-2475-0994

A replay of the call will be available by dialing +61 2 8199 0299 and entering passcode 47256659#. The replay will be available through May 30, 2014.

This call will be webcast live and the replay will be available for 12 months. Both will be available on the Investor Relations section of Youku Tudou's corporate website at http://ir.youku.com.

About Youku Tudou Inc.

Youku Tudou Inc. (NYSE: YOKU) is China's leading Internet television company. Its Youku and Tudou Internet television platforms enable users to search, view and share high-quality video content quickly and easily across multiple devices. Its Youku brand and Tudou brand are the most recognized online video brands in China. Youku Tudou's American depositary shares, each representing 18 of Youku Tudou's Class A ordinary shares, are traded on the NYSE under the symbol "YOKU."  

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Youku Tudou's strategic and operational plans, contain forward-looking statements. Youku Tudou may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Youku Tudou's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; the expected growth of the online video market in China; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with key advertisers and customers; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Youku Tudou does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Youku Tudou's financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Youku Tudou uses the following measures defined as non-GAAP financial measures by the SEC in evaluating its business:  non-GAAP content costs, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP sales and marketing expenses, non-GAAP product development expenses, non-GAAP general and administrative expenses, non-GAAP profit or loss from operations, non-GAAP net profit or loss and non-GAAP EBITDA profit or loss. We define non-GAAP content costs as content costs excluding share-based compensation expenses and amortization of intangible assets from business combination in relation to user generated content. We define non-GAAP gross profit or loss as the respective nearest comparable GAAP financial measure to exclude share-based compensation expenses and amortization of intangible assets from business combination in relation to user generated content. We define non-GAAP operating expenses as operating expenses excluding share-based compensation expenses, business combination related expenses and amortization of intangible assets from business combination in relation to customer relationship, technology and non-compete provisions. We define non-GAAP sales and marketing expenses as sales and marketing expenses excluding share-based compensation expenses and amortization of intangible assets from business combination in relation to customer relationship. We define non-GAAP product development expense as product development expenses excluding share-based compensation expenses and amortization of intangible assets from business combination in relation to technology. We define non-GAAP general and administrative expenses as general and administrative expenses excluding share-based compensation expenses, business combination related expenses and amortization of intangible assets from business combination in relation to non-compete provisions. We define non-GAAP profit or loss from operations as profit or loss from operations excluding share-based compensation expenses, amortization of intangible assets from business combination and business combination related expenses. We define non-GAAP net profit or loss as net loss excluding share-based compensation expenses, amortization of intangible assets from business combination and business combination related expenses. We define non-GAAP EBITDA profit or loss as net profit or loss before income taxes, interest expenses, interest income, depreciation and amortization (excluding amortization of acquired content), further adjusted for share-based compensation expenses, amortization of intangible assets from business combination, business combination related expenses and other non-operating items.

We present non-GAAP financial measures because they are used by our management to evaluate our operating performance. We also believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and in comparing financial results across accounting periods and to those of our peer companies. A limitation of using non-GAAP financial measures is that non-GAAP measures exclude share-based compensation charges that have been and will continue to be significant recurring expenses in Youku Tudou's business for the foreseeable future.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP financial measures" at the end of this release.

For more information, please contact:

Ryan Cheung Corporate Finance Senior Director Youku Tudou Inc. Tel: (+8610) 5885-1881 x6090 Email: ryan.cheung@youku.com

 

[1]

The reporting currency of the Company is Renminbi ("RMB"), but for the convenience of the reader, the amounts presented throughout the release are in US dollars ("US$"). Unless otherwise noted, all conversions from RMB to US$ are made at a rate of RMB6.2164 to US$1.00, the effective noon buying rate as of March 31, 2014 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

[2]

All non-GAAP measures exclude, as applicable, share-based compensation expenses and amortization of intangible assets from business combination. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company's use of non-GAAP information set forth elsewhere in this press release.

 

 YOUKU TUDOU INC. 

 CONSOLIDATED BALANCE SHEETS 

(Amounts in thousands, except for number of shares)

For the Three Months Ended

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

US$

ASSETS

(Unaudited)

(Unaudited)

Current assets:

 Cash and cash equivalents 

1,764,221

1,598,644

257,166

 Restricted cash 

2,679

2,681

431

 Short-term investments 

1,409,439

1,664,833

267,813

 Accounts receivable, net 

1,370,031

1,197,350

192,611

 Intangible assets, net 

51,942

39,459

6,348

 Deferred tax assets 

7,843

7,843

1,262

 Prepayments and other assets 

82,300

85,309

13,724

Total current assets

4,688,455

4,596,119

739,355

Non-current assets:

 Property and equipment, net 

222,229

225,391

36,257

 Intangible assets, net 

1,197,671

1,241,202

199,666

 Capitalized content production costs 

1,176

936

151

 Prepayments and other assets 

197,856

187,667

30,189

 Goodwill 

4,262,569

4,262,569

685,697

 Total non-current assets 

5,881,501

5,917,765

951,960

TOTAL ASSETS

10,569,956

10,513,884

1,691,315

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

 Accounts payable 

213,825

249,032

40,060

 Advances from customers 

25,081

26,897

4,327

 Accrued expenses and other liabilities 

1,124,342

1,152,595

185,412

Total current liabilities

1,363,248

1,428,524

229,799

Non-current liabilities:

 Deferred tax liability 

219,519

219,519

35,313

 Other liabilities 

4,070

4,070

655

Total non-current liabilities

223,589

223,589

35,968

Total liabilities

1,586,837

1,652,113

265,767

Commitments and contingencies

Shareholders' equity:

Class A Ordinary Shares (US$0.00001 par value, 9,340,238,793

authorized,  2,356,529,401 and  2,371,376,719 issued and

outstanding as of  December 31, 2013 and March 31, 2014,

respectively)

154

155

25

Class B Ordinary Shares (US$0.00001 par value, 659,761,207

authorized, 659,561,893 and 659,561,893 issued and

outstanding as of  December 31, 2013 and March 31, 2014,

respectively)

49

49

8

 Additional paid-in capital 

11,058,360

11,140,757

1,792,156

 Statutory reserves 

2,063

2,063

332

 Accumulated deficit 

(1,878,454)

(2,103,159)

(338,324)

 Accumulated other comprehensive loss 

(199,053)

(178,094)

(28,649)

Total shareholders' equity

8,983,119

8,861,771

1,425,548

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

10,569,956

10,513,884

1,691,315

 

 YOUKU TUDOU INC. 

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS 

 For the Three Months Ended 

(Amounts in thousands, except for  number of shares and ADS and per share and per

ADS data)

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net revenues

515,997

901,287

700,374

112,666

Cost of revenues (Note 1)

(501,766)

(646,938)

(614,808)

(98,901)

Gross profit

14,231

254,349

85,566

13,765

Operating expenses:

       Product development

(56,828)

(76,514)

(80,700)

(12,982)

       Sales and marketing

(127,600)

(216,444)

(186,542)

(30,008)

       General and administrative

(83,350)

(40,393)

(46,823)

(7,532)

Total operating expenses

(267,778)

(333,351)

(314,065)

(50,522)

Loss from operations

(253,547)

(79,002)

(228,499)

(36,757)

Interest income

7,179

8,419

6,053

974

Interest expenses

(387)

-

-

-

Other, net

14,281

46,878

(2,259)

(363)

Total other income, net

21,073

55,297

3,794

611

Loss before income taxes

(232,474)

(23,705)

(224,705)

(36,146)

Income taxes

-

(876)

-

-

Net loss

(232,474)

(24,581)

(224,705)

(36,146)

Other comprehensive loss, before tax

            Foreign currency translation adjustments

(5,966)

(33,201)

20,959

3,372

Other comprehensive loss, before tax

(5,966)

(33,201)

20,959

3,372

Income tax expense related to components of other comprehensive loss

-

-

-

-

Other comprehensive loss, net of tax

(5,966)

(33,201)

20,959

3,372

0

Net loss per share, basic and diluted

(0.08)

(0.01)

(0.07)

(0.01)

Net loss per ADS (each ADS represents 18 class A ordinary shares),         basic and diluted

(1.42)

(0.15)

(1.34)

(0.22)

Shares used in computation, basic and diluted

2,953,267,696

3,010,627,513

3,021,981,224

3,021,981,224

ADSs used in computation, basic and diluted

164,070,427

167,257,084

167,887,845

167,887,845

 

The accompanying notes are an integral part of the press release.

Note 1. Cost of Revenues

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

(Amounts in thousands)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

 Cost of revenues: 

 Value added, business taxes and surcharges 

48,925

77,758

62,958

10,128

 Bandwidth costs 

161,045

178,824

201,889

32,477

 Depreciation of servers and other equipment 

22,470

36,686

24,306

3,910

 Content costs 

269,326

353,670

325,655

52,386

 Total Cost of Revenues 

501,766

646,938

614,808

98,901

 

 YOUKU TUDOU INC. 

 CONSOLIDATED STATEMENTS OF CASH FLOWS 

 For the Three Months Ended 

(Amounts in thousands)

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Cash flows from operating activities:

Net loss

(232,474)

(24,581)

(224,705)

(36,146)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and impairment of fixed assets

26,795

46,972

31,883

5,129

Bad debt expense

7,076

25,547

(6,473)

(1,041)

Amortisation and impairment of intangible assets and capitalized content production costs

138,991

225,109

181,777

29,242

Amortization of long-term debt discounts

221

-

-

-

Gain on disposal of  property and equipment

695

(353)

90

14

Foreign exchange loss (gain)

325

(15,336)

2,164

348

Share-based compensation

37,850

53,061

70,220

11,296

Deferred income tax benefits

-

(4,414)

-

-

Gain from de-recognition of off-market liabilities

-

(16,540)

-

-

Changes in operating assets and liabilities:

         Restricted cash

(10)

(1,129)

(2)

-

        Accounts receivable

(33,644)

(10,312)

179,153

28,819

        Prepayments and other assets

1,347

(58,751)

(10,615)

(1,708)

        Capitalized content production costs

15,961

22,687

(2,972)

(478)

        Accounts payable

(9,864)

(15,572)

4,574

736

        Advances from customers

38,457

(40,717)

1,816

292

        Accrued expenses and other liabilities

12,468

21,519

29,591

4,759

Net cash provided by  operating activities

4,194

207,190

256,501

41,262

Cash flows from investing activities:

Acquisition of property and equipment

(27,364)

(14,955)

(28,191)

(4,535)

Proceeds received from maturity of short-term investments

36,703

1,018,628

1,132,459

182,173

Short-term investments placed with financial institutions

(185,590)

-

(1,391,239)

(223,801)

Proceeds from disposal of property and equipment

-

(824)

180

29

Cash acquired, net of cash paid for acquired subsidiaries

-

(6,999)

-

-

Acquisition of intangible assets

(238,921)

(227,540)

(165,891)

(26,686)

Net cash (used in) provided by investing activities

(415,172)

768,310

(452,682)

(72,820)

Cash flows from financing activities:

Exercise of employee stock options

28,740

9,084

11,809

1,900

Principal repayments on long-term debt

(3,236)

-

-

-

Net cash  provided by financing activities

25,504

9,084

11,809

1,900

Effect of exchange rate changes on cash and cash equivalents

(6,293)

(17,865)

18,795

3,023

Net (decrease) increase in cash and cash equivalents

(391,767)

966,719

(165,577)

(26,635)

Cash and cash equivalents at the beginning of the period

1,655,857

797,502

1,764,221

283,801

Cash and cash equivalents at the end of the period

1,264,090

1,764,221

1,598,644

257,166

 

Reconciliations of Non-GAAP results of operations measures to the nearest comparable GAAP financial measures (1)(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), unaudited)

 1. Non-GAAP Content Costs

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

Content costs

269,326

353,670

325,655

52,386

 Deduct: share-based compensation  

5,663

7,846

12,223

1,966

 Deduct: amortization of intangible assets from business combination 

8,331

6,100

2,483

399

Non-GAAP content costs

255,332

339,724

310,949

50,021

2. Non-GAAP Gross Profit

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

Gross profit

14,231

254,349

85,566

13,765

 Add back: share-based compensation  

5,663

7,846

12,223

1,966

 Add back: amortization of intangible assets from business combination 

8,331

6,100

2,483

399

Non-GAAP gross profit

28,225

268,295

100,272

16,130

 3. Non-GAAP Operating Expenses

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

Operating expenses

267,778

333,351

314,065

50,522

 Deduct: share-based compensation  

32,187

45,215

57,997

9,330

 Deduct: amortization of intangible assets from business combination 

4,155

9,623

3,743

602

Non-GAAP  operating expenses

231,436

278,513

252,325

40,590

4. Non-GAAP Sales and Marketing Expenses

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

Sales and marketing expenses

127,600

216,444

186,542

30,008

 Deduct: share-based compensation  

10,061

15,577

21,172

3,406

 Deduct: amortization of intangible assets from business combination 

2,077

5,077

1,871

301

Non-GAAP  sales and marketing expenses

115,462

195,790

163,499

26,301

5. Non-GAAP Product Development Expenses

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

Product development expenses

56,828

76,514

80,700

12,982

 Deduct: share-based compensation  

6,967

11,795

17,206

2,768

 Deduct: amortization of intangible assets from business combination 

1,395

3,411

1,257

202

Non-GAAP  product development expenses

48,466

61,308

62,237

10,012

6. Non-GAAP General and Administrative Expenses

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

General and administrative expenses

83,350

40,393

46,823

7,532

 Deduct: share-based compensation  

15,159

17,843

19,619

3,156

 Deduct: amortization of intangible assets from business combination 

683

1,135

615

99

Non-GAAP  general and administrative expenses

67,508

21,415

26,589

4,277

7. Non-GAAP Loss from Operations

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

Loss from operations

(253,547)

(79,002)

(228,499)

(36,757)

 Add back: share-based compensation  

37,850

53,061

70,220

11,296

 Add back: amortization of intangible assets from business combination 

12,486

15,723

6,226

-

1,001

Non-GAAP  loss from operations

(203,211)

(10,218)

(152,053)

(24,460)

8. Non-GAAP  Net (Loss) Profit 

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

 Net loss 

(232,474)

(24,581)

(224,705)

(36,146)

 Add back: share-based compensation  

37,850

53,061

70,220

11,296

 Add back: amortization of intangible assets from business combination 

12,486

15,723

6,226

1,001

 Non-GAAP net (loss) profit 

(182,138)

44,203

(148,259)

(23,849)

9.  Non-GAAP EBITDA (Loss) Profit

 For the Three Months Ended 

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

RMB

RMB

RMB

US$

 Net loss 

(232,474)

(24,581)

(224,705)

(36,146)

 Add back: 

 Depreciation and amortization (excluding amortization 

      of acquired content ) (2)

26,810

46,986

31,897

5,131

 Interest income 

(7,179)

(8,419)

(6,053)

(974)

 Interest expenses 

387

-

-

-

 Income taxes 

-

876

-

-

 EBITDA (loss) profit 

(212,456)

14,862

(198,861)

(31,989)

 Adjustments: 

 Share-based compensation  

37,850

53,061

70,220

11,296

 Amortization of intangible assets from business combination 

12,486

15,723

6,226

1,001

 Others, net 

(14,281)

(46,878)

2,259

363

Non-GAAP EBITDA (loss) profit 

(176,401)

36,768

(120,156)

(19,329)

(1)     For more information on the Non-GAAP financial measures, please see the section captioned "About Non-GAAP Financial Measures" in this earnings release.

(2)    The amortization expense was related to an advertising license acquired in April 2010. The amortization of acquired content was not treated as a Non-GAAP adjustment.

 

SOURCE Youku Tudou Inc.



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