SINA Reports Second Quarter 2019 Unaudited Financial Results
BEIJING, Aug. 19, 2019 /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 second quarter ended June 30, 2019.
Second Quarter 2019 Highlights
- Net revenues decreased 1% year-over-year to $533.1 million. Non-GAAP net revenues decreased 1% year-over-year to $530.4 million, representing an increase of 5% on a constant currency basis [1].
- Advertising revenues decreased 5% year-over-year to $433.6 million.
- Non-advertising revenues increased 19% year-over-year to $99.4 million. Non-GAAP non-advertising revenues increased 20% year-over-year to $96.8 million.
- Net income attributable to SINA was $51.4 million, or $0.73 for diluted net income per share attributable to SINA's ordinary shareholders. Non-GAAP net income attributable to SINA was $54.0 million, or $0.76 for non-GAAP diluted net income per share attributable to SINA's ordinary shareholders.
[1] On a constant currency (non-GAAP) basis, we assume that the exchange rate in the second quarter of 2019 had been the same as it was in the second quarter of 2018, or RMB6.40=US$1.00. |
Second Quarter 2019 Financial Results
For the second quarter of 2019, SINA reported net revenues of $533.1 million, a decrease of 1% compared to $537.4 million for the same period last year. Non-GAAP net revenues for the second quarter of 2019 were $530.4 million, a decrease of 1% compared to $534.8 million for the same period last year.
Advertising revenues for the second quarter of 2019 were $433.6 million, a decrease of 5% compared to $454.1 million for the same period last year, primarily due to a decline in portal advertising revenues and negative currency translation impact.
Non-advertising revenues for the second quarter of 2019 were $99.4 million, an increase of 19% compared to $83.3 million for the same period last year. Non-GAAP non-advertising revenues for the second quarter of 2019 were $96.8 million, an increase of 20% compared to $80.7 million for the same period last year. The year-over-year growth in non-advertising revenues was mainly attributable to the revenues derived from Weibo's live streaming business acquired in the fourth quarter of 2018 and increased revenues generated from SINA fin-tech businesses.
Gross margin for the second quarter of 2019 was 77%, compared to 80% for the same period last year. Advertising gross margin for the second quarter of 2019 was 80%, compared to 82% for the same period last year. Non-advertising gross margin for the second quarter of 2019 was 61%, down from 69% for the same period last year, resulted from the relatively lower gross margin of the acquired live streaming business of Weibo.
Operating expenses for the second quarter of 2019 totaled $282.7 million, compared to $294.7 million for the same period last year. Non-GAAP operating expenses for the second quarter of 2019 totaled $256.0 million, compared to $272.1 million for the same period last year. The year-over-year decrease in operating expenses was primarily attributable to a reduction in sales and marketing expenses through cost efficiency achieved in channel marketing campaigns.
Income from operations for the second quarter of 2019 was $126.0 million, compared to $136.2 million for the same period last year. Operating margin was 24%, compared to 25% for the same period last year. Non-GAAP income from operations for the second quarter of 2019 was $152.8 million, compared to $159.1 million for the same period last year. Non-GAAP operating margin was 29%, compared to 30% for the same period last year.
Non-operating income for the second quarter of 2019 was $19.7 million, compared to $1.2 million for the same period last year. Non-operating income for the second quarter of 2019 included (i) a $15.7 million net interest and other income; (ii) a $4.3 million net earning from equity method investments, which is reported one quarter in arrears; and (iii) a $0.3 million net loss on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measures. Non-operating income for the second quarter of 2018 included (i) a $20.1 million net interest and other income; (ii) a $16.4 million net loss on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measures; and (iii) a $2.5 million net loss from equity method investments, which is reported one quarter in arrears.
Income tax expenses for the second quarter of 2019 were $46.7 million, compared to $27.9 million for the same period last year, largely attributable to the deferred tax charges recognized from the fair value changes of investments.
Net income attributable to SINA's ordinary shareholders for the second quarter of 2019 was $51.4 million, compared to $35.1 million for the same period last year. Diluted net income per share attributable to SINA's ordinary shareholders for the second quarter of 2019 was $0.73, compared to $0.47 for the same period last year. Non-GAAP net income attributable to SINA's ordinary shareholders for the second quarter of 2019 was $54.0 million, compared to $66.5 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA's ordinary shareholders for the second quarter of 2019 was $0.76, compared to $0.89 for the same period last year.
As of June 30, 2019, SINA's cash, cash equivalents and short-term investments totaled $2.0 billion, compared to $2.3 billion as of December 31, 2018. For the second quarter of 2019, net cash provided by operating activities was $128.6 million, capital expenditures totaled $5.0 million, and depreciation and amortization expenses amounted to $11.6 million.
Non-GAAP Measures
This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP advertising revenues, non-GAAP non-advertising revenues, non-GAAP advertising and non-advertising gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income attributable to SINA's ordinary shareholders and non-GAAP diluted net income per share attributable to SINA's ordinary shareholders. 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 related to the license granted to Leju, stock-based compensation, amortization of intangible assets, adjustment for non-GAAP to GAAP reconciling items on the share of equity method investments, gain (loss) on sale of investment, deemed disposal, fair value changes and impairment on investment, adjustment for non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests, amortization of convertible debt issuance cost, and income tax effects of above non-GAAP to GAAP reconciling items. 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 8:10 a.m. – 8:40 a.m. Eastern Time on August 19, 2019 (or 8:10 p.m. – 8:40 p.m. Beijing Time on August 19, 2019) 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://ir.sina.com. The conference call can be accessed as follows:
US: | +1 845 675 0437 |
Hong Kong: | +852 3018 6771 |
China: | 400 620 8038 |
International: | +65 6713 5090 |
Passcode for all regions: | 8595969 |
A replay of the conference call will be available through morning Eastern Time August 27, 2019. The dial-in number is +61 2 8199 0299. The passcode for the replay is 8595969.
About SINA
SINA is a leading online media company serving China and the global Chinese communities. Its 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 personal computers and mobile devices and share their interests with friends and acquaintances.
SINA.com offers distinct and targeted professional content on each of its region-specific websites and a full range of complementary offerings. SINA mobile provides news information, professional and entertainment content customized for mobile users through mobile applications and mobile portal site SINA.cn.
Weibo is a leading social media platform for people to create, distribute and discover content. Based on an open platform architecture, Weibo provides unprecedented and simple way for people and organizations to publicly express themselves in real time, interact with others on a massive global platform and stay connected with the world.
Through these properties and other product lines, SINA offer an array of online media and social media services to its users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences.
Safe Harbor Statement
This press release contains forward-looking statements that relate to, among other things, SINA's expected financial performance and SINA's strategic and operational plans (as described, without limitation, in quotations from management in this press release). SINA may also make forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. SINA assumes no obligation to update the forward-looking statements in this press release and elsewhere. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to failure to meet internal or external expectations of future performance given the rapidly evolving markets; condition of the global financial and credit market; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on online advertising sales and value-added services for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products, including portal, Weibo and fin-tech products; failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties, such as Alibaba; failure to successfully integrate acquired businesses; risks associated with the Company's investments, including adverse impacts on our financial results from equity pick-up, fair value changes and impairment; and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA's 2018 annual reports on Form 20-F and other filings with the Securities and Exchange Commission.
Contact:
Investor Relations
SINA Corporation
Phone: +86 10 5898 3336
Email: [email protected]
SINA CORPORATION | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(U.S. Dollars in thousands, except per share data) | ||||||||||
Three months ended | Six months ended | |||||||||
June 30, | March 31, | June 30, | ||||||||
2019 | 2018 | 2019 | 2019 | 2018 | ||||||
Net revenues: | ||||||||||
Advertising | $ 433,633 | $ 454,091 | $ 388,025 | $ 821,658 | $ 821,172 | |||||
Non-advertising | 99,421 | 83,269 | 87,114 | 186,535 | 156,940 | |||||
533,054 | 537,360 | 475,139 | 1,008,193 | 978,112 | ||||||
Cost of revenues(1): | ||||||||||
Advertising | 85,589 | 80,583 | 84,379 | 169,968 | 163,698 | |||||
Non-advertising | 38,722 | 25,890 | 31,144 | 69,866 | 51,482 | |||||
124,311 | 106,473 | 115,523 | 239,834 | 215,180 | ||||||
Gross profit | 408,743 | 430,887 | 359,616 | 768,359 | 762,932 | |||||
Operating expenses: | ||||||||||
Sales and marketing(1) | 147,721 | 183,589 | 145,478 | 293,199 | 323,276 | |||||
Product development(1) | 91,981 | 83,877 | 94,049 | 186,030 | 169,014 | |||||
General and administrative(1) | 43,016 | 27,242 | 33,160 | 76,176 | 61,174 | |||||
282,718 | 294,708 | 272,687 | 555,405 | 553,464 | ||||||
Income from operations | 126,025 | 136,179 | 86,929 | 212,954 | 209,468 | |||||
Non-operating income: | ||||||||||
Earning (loss) from equity method investments, net | 4,316 | (2,527) | (16,253) | (11,937) | (4,299) | |||||
Gain (loss) on sale of investments, fair value changes and impairment | (315) | (16,396) | 80,806 | 80,491 | (9,170) | |||||
Interest and other income, net | 15,744 | 20,116 | 13,102 | 28,846 | 37,214 | |||||
19,745 | 1,193 | 77,655 | 97,400 | 23,745 | ||||||
Income before income taxes | 145,770 | 137,372 | 164,584 | 310,354 | 233,213 | |||||
Income tax expenses | (46,720) | (27,858) | (65,235) | (111,955) | (46,608) | |||||
Net income | 99,050 | 109,514 | 99,349 | 198,399 | 186,605 | |||||
Less: Net income attributable to non-controlling interests | 47,626 | 74,462 | 66,266 | 113,892 | 122,859 | |||||
Net income attributable to SINA's ordinary shareholders | $ 51,424 | $ 35,052 | $ 33,083 | $ 84,507 | $ 63,746 | |||||
Basic net income per share | $ 0.74 | $ 0.49 | $ 0.48 | $ 1.21 | $ 0.89 | |||||
Diluted net income per share(2) | $ 0.73 | $ 0.47 | $ 0.46 | $ 1.20 | $ 0.85 | |||||
Shares used in computing basic net income per share | 69,709 | 71,210 | 69,461 | 69,586 | 71,324 | |||||
Shares used in computing diluted net income per share | 69,944 | 73,553 | 69,759 | 69,852 | 73,793 | |||||
(1) Stock-based compensation in each category: | ||||||||||
Cost of revenues | $ 2,620 | $ 2,890 | $ 2,536 | $ 5,156 | $ 5,431 | |||||
Sales and marketing | 6,031 | 6,474 | 5,620 | 11,651 | 11,354 | |||||
Product development | 8,415 | 7,735 | 9,654 | 18,069 | 15,222 | |||||
General and administrative | 11,200 | 6,915 | 10,978 | 22,178 | 14,323 | |||||
(2) Net income attributable to SINA's ordinary shareholders 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) | ||||||
June 30, | December 31, | |||||
2019 | 2018 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 1,432,065 | $ 1,545,800 | ||||
Short-term investments | 599,048 | 799,534 | ||||
Restricted cash | 117,065 | 97,032 | ||||
Accounts receivable, net | 613,796 | 527,897 | ||||
Financing receivables, net(1) | 216,090 | - | ||||
Prepaid expenses and other current assets | 570,784 | 362,435 | ||||
Subtotal | 3,548,848 | 3,332,698 | ||||
Property and equipment, net | 256,837 | 262,846 | ||||
Operating lease right-of-use assets, net(2) | 32,820 | - | ||||
Goodwill and intangible assets, net | 315,867 | 319,575 | ||||
Long-term investments | 2,300,967 | 1,889,843 | ||||
Other assets | 67,708 | 81,127 | ||||
Total assets | $ 6,523,047 | $ 5,886,089 | ||||
Liabilities and Shareholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ 180,150 | $ 172,562 | ||||
Amount due to customers | 89,445 | 97,032 | ||||
Accrued expenses and other current liabilities | 665,302 | 540,807 | ||||
Short-term bank loan | 70,838 | 78,229 | ||||
Deferred revenues | 153,609 | 139,306 | ||||
Short-term operating lease liabilities(2) | 14,675 | - | ||||
Funding debts(1) | 137,056 | - | ||||
Income taxes payable | 96,289 | 115,725 | ||||
Subtotal | 1,407,364 | 1,143,661 | ||||
Convertible debt | 886,195 | 884,123 | ||||
Long-term funding debts(1) | 43,688 | - | ||||
Long-term deferred revenues | 38,435 | 43,652 | ||||
Long-term operating lease liabilities(2) | 20,026 | - | ||||
Other long-term liabilities | 109,741 | 51,781 | ||||
Total liabilities | 2,505,449 | 2,123,217 | ||||
Shareholders' equity | ||||||
SINA shareholders' equity | 2,835,718 | 2,717,791 | ||||
Non-controlling interests | 1,181,880 | 1,045,081 | ||||
Total shareholders' equity | 4,017,598 | 3,762,872 | ||||
Total liabilities and shareholders' equity | $ 6,523,047 | $ 5,886,089 | ||||
(1) In 2019, the Company set up few trusts, which were administered by third-party trust company to invest in consumer | ||||||
(2) The Company adopted the new leasing guidance (ASU 2016-2) started from January 1, 2019, which requires that a | ||||||
SINA CORPORATION | |||||||||||
UNAUDITED ADDITIONAL INFORMATION | |||||||||||
(U.S. Dollars in thousands) | |||||||||||
Three months ended | Six months ended | ||||||||||
June 30, | March 31, | June 30, | |||||||||
2019 | 2018 | 2019 | 2019 | 2018 | |||||||
Net revenues | |||||||||||
Portal: | |||||||||||
Portal Advertising | $ 62,973 | $ 84,173 | $ 46,896 | $ 109,869 | $ 148,305 | ||||||
Other | 43,740 | 30,631 | 34,916 | 78,656 | 57,405 | ||||||
Subtotal | 106,713 | 114,804 | 81,812 | 188,525 | 205,710 | ||||||
Weibo: | |||||||||||
Advertising and marketing | 370,660 | 369,942 | 341,141 | 711,801 | 672,891 | ||||||
Weibo VAS | 61,176 | 56,647 | 58,036 | 119,212 | 103,581 | ||||||
Subtotal | 431,836 | 426,589 | 399,177 | 831,013 | 776,472 | ||||||
Elimination | (5,495) | (4,033) | (5,850) | (11,345) | (4,070) | ||||||
$ 533,054 | $ 537,360 | $ 475,139 | $ 1,008,193 | $ 978,112 | |||||||
Cost of revenues | |||||||||||
Portal: | |||||||||||
Portal Advertising | $ 25,011 | $ 28,546 | $ 21,660 | $ 46,671 | $ 57,919 | ||||||
Other | 22,823 | 20,146 | 16,884 | 39,707 | 36,615 | ||||||
Subtotal | 47,834 | 48,692 | 38,544 | 86,378 | 94,534 | ||||||
81,972 | 61,790 | 82,817 | 164,789 | 124,692 | |||||||
Elimination | (5,495) | (4,009) | (5,838) | (11,333) | (4,046) | ||||||
$ 124,311 | $ 106,473 | $ 115,523 | $ 239,834 | $ 215,180 | |||||||
Gross margin | |||||||||||
Portal | 55% | 58% | 53% | 54% | 54% | ||||||
81% | 86% | 79% | 80% | 84% | |||||||
77% | 80% | 76% | 76% | 78% | |||||||
SINA CORPORATION | ||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS | ||||||||||||||||||
(U.S. Dollars in thousands, except per share data) | ||||||||||||||||||
Three months ended | ||||||||||||||||||
June 30, 2019 | June 30, 2018 | March 31, 2019 | ||||||||||||||||
Non-GAAP | Non-GAAP | Non-GAAP | ||||||||||||||||
Actual | Adjustments | Results | Actual | Adjustments | Results | Actual | Adjustments | Results | ||||||||||
Advertising revenues | $ 433,633 | $ 433,633 | $ 454,091 | $ 454,091 | $ 388,025 | $ 388,025 | ||||||||||||
Non-advertising revenues | 99,421 | (2,609) | (a) | 96,812 | 83,269 | (2,609) | (a) | 80,660 | 87,114 | (2,609) | (a) | 84,505 | ||||||
Net revenues | $ 533,054 | $ (2,609) | $ 530,445 | $ 537,360 | $ (2,609) | $ 534,751 | $ 475,139 | $ (2,609) | $ 472,530 | |||||||||
(2,609) | (a) | (2,609) | (a) | (2,609) | (a) | |||||||||||||
2,620 | (b) | 2,890 | (b) | 2,536 | (b) | |||||||||||||
Gross profit | $ 408,743 | $ 11 | $ 408,754 | $ 430,887 | $ 281 | $ 431,168 | $ 359,616 | $ (73) | $ 359,543 | |||||||||
(25,646) | (b) | (21,124) | (b) | (26,252) | (b) | |||||||||||||
(1,107) | (c) | (1,523) | (c) | (1,124) | (c) | |||||||||||||
Operating expenses | $ 282,718 | $ (26,753) | $ 255,965 | $ 294,708 | $ (22,647) | $ 272,061 | $ 272,687 | $ (27,376) | $ 245,311 | |||||||||
(2,609) | (a) | (2,609) | (a) | (2,609) | (a) | |||||||||||||
28,266 | (b) | 24,014 | (b) | 28,788 | (b) | |||||||||||||
1,107 | (c) | 1,523 | (c) | 1,124 | (c) | |||||||||||||
Income from operations | $ 126,025 | $ 26,764 | $ 152,789 | $ 136,179 | $ 22,928 | $ 159,107 | $ 86,929 | $ 27,303 | $ 114,232 | |||||||||
(2,609) | (a) | (2,609) | (a) | (2,609) | (a) | |||||||||||||
28,266 | (b) | 24,014 | (b) | 28,788 | (b) | |||||||||||||
1,107 | (c) | 1,523 | (c) | 1,124 | (c) | |||||||||||||
(4,881) | (d) | 40 | (d) | 15,307 | (d) | |||||||||||||
315 | (e) | 16,396 | (e) | (80,806) | (e) | |||||||||||||
(39,281) | (f) | (8,849) | (f) | (7,436) | (f) | |||||||||||||
1,037 | (g) | 1,035 | (g) | 1,035 | (g) | |||||||||||||
18,605 | (h) | (85) | (h) | 40,367 | (h) | |||||||||||||
Net income attributable to SINA's ordinary shareholders | $ 51,424 | $ 2,559 | $ 53,983 | $ 35,052 | $ 31,465 | $ 66,517 | $ 33,083 | $ (4,230) | $ 28,853 | |||||||||
Diluted net income per share * | $ 0.73 | $ 0.76 | $ 0.47 | $ 0.89 | $ 0.46 | $ 0.40 | ||||||||||||
Shares used in computing diluted net income per share | 69,944 | - | 69,944 | 73,553 | - | 73,553 | 69,759 | - | 69,759 | |||||||||
Gross margin - advertising | 80% | 1% | 81% | 82% | 1% | 83% | 78% | 1% | 79% | |||||||||
Gross margin - non-advertising | 61% | -1% | 60% | 69% | -1% | 68% | 64% | -1% | 63% | |||||||||
Operating margin | 24% | 5% | 29% | 25% | 5% | 30% | 18% | 6% | 24% | |||||||||
Six months ended | ||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||
Non-GAAP | Non-GAAP | |||||||||||||||||
Actual | Adjustments | Results | Actual | Adjustments | Results | |||||||||||||
Advertising revenues | $ 821,658 | $ 821,658 | $ 821,172 | $ 821,172 | ||||||||||||||
Non-advertising revenues | 186,535 | (5,218) | (a) | 181,317 | 156,940 | (5,218) | (a) | 151,722 | ||||||||||
Net revenues | $1,008,193 | $ (5,218) | $1,002,975 | $ 978,112 | $ (5,218) | $ 972,894 | ||||||||||||
(5,218) | (a) | (5,218) | (a) | |||||||||||||||
5,156 | (b) | 5,431 | (b) | |||||||||||||||
Gross profit | $ 768,359 | $ (62) | $ 768,297 | $ 762,932 | $ 213 | $ 763,145 | ||||||||||||
(51,898) | (b) | (40,899) | (b) | |||||||||||||||
(2,231) | (c) | (3,158) | (c) | |||||||||||||||
Operating expenses | $ 555,405 | $ (54,129) | $ 501,276 | $ 553,464 | $ (44,057) | $ 509,407 | ||||||||||||
(5,218) | (a) | (5,218) | (a) | |||||||||||||||
57,054 | (b) | 46,330 | (b) | |||||||||||||||
2,231 | (c) | 3,158 | (c) | |||||||||||||||
Income from operations | $ 212,954 | $ 54,067 | $ 267,021 | $ 209,468 | $ 44,270 | $ 253,738 | ||||||||||||
(5,218) | (a) | (5,218) | (a) | |||||||||||||||
57,054 | (b) | 46,330 | (b) | |||||||||||||||
2,231 | (c) | 3,158 | (c) | |||||||||||||||
10,426 | (d) | (411) | (d) | |||||||||||||||
(80,491) | (e) | 9,170 | (e) | |||||||||||||||
(46,717) | (f) | (17,032) | (f) | |||||||||||||||
2,072 | (g) | 2,070 | (g) | |||||||||||||||
58,972 | (h) | (64) | (h) | |||||||||||||||
Net income attributable to SINA's ordinary shareholders | $ 84,507 | $ (1,671) | $ 82,836 | $ 63,746 | $ 38,003 | $ 101,749 | ||||||||||||
Diluted net income per share * | $ 1.20 | $ 1.16 | $ 0.85 | $ 1.35 | ||||||||||||||
Shares used in computing diluted net income per share | 69,852 | - | 69,852 | 73,793 | - | 73,793 | ||||||||||||
Gross margin - advertising | 79% | 1% | 80% | 80% | 1% | 81% | ||||||||||||
Gross margin - non-advertising | 63% | -2% | 61% | 67% | -1% | 66% | ||||||||||||
Operating margin | 21% | 6% | 27% | 21% | 5% | 26% | ||||||||||||
(a) To exclude the recognition of deferred revenue related to the license granted to Leju. | ||||||||||||||||||
(b) To exclude stock-based compensation. | ||||||||||||||||||
(c) To adjust amortization of intangible assets. | ||||||||||||||||||
(d) To exclude non-GAAP to GAAP reconciling items on the share of equity method investments, net of share of amortization of intangibles not on their books. | ||||||||||||||||||
(e) To exclude (gain) loss on sale of investments, (gain) loss on deemed disposal, fair value changes and impairment on investments, net. | ||||||||||||||||||
(f) To exclude non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests. | ||||||||||||||||||
(g) To exclude the amortization of convertible debt issuance cost. | ||||||||||||||||||
(h) To exclude the provision (benefit) for income tax related to item (c) and (e). Other non-GAAP to GAAP reconciling items have no income tax effect.** | ||||||||||||||||||
* | Net income attributable to SINA's ordinary shareholders is adjusted for diluted shares issued by our subsidiary and equity method investments. | |||||||||||||||||
** | The Company considered the tax implication arising from the reconciliation items, and those items recorded in entities in tax free jurisdictions were without relevant tax | |||||||||||||||||
UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' NON-GAAP TO GAAP RESULTS* | ||||||||||||||||||
Three months ended | ||||||||||||||||||
June 30, 2019 | June 30, 2018 | March 31, 2019 | ||||||||||||||||
Actual | Adjustments | Non-GAAP Results | Actual | Adjustments | Non-GAAP Results | Actual | Adjustments | Non-GAAP Results | ||||||||||
To exclude stock-based compensation | $ 178 | $ 833 | $ 287 | |||||||||||||||
To exclude amortization of intangible assets resulting | ||||||||||||||||||
from business acquisitions | 1,048 | 1,115 | 1,062 | |||||||||||||||
To exclude loss on disposal and impairment on investments | 90 | 75 | 6,713 | |||||||||||||||
To exclude (gain) loss resulting from the fair value changes in | ||||||||||||||||||
investments, net | (5,525) | (1,313) | 7,915 | |||||||||||||||
To exclude tax impacts related to amortization of intangible assets | (244) | (253) | (248) | |||||||||||||||
Earning (loss) from equity method investments, net | $ 3,888 | $ (4,453) | $ (565) | $ (2,944) | $ 457 | $ (2,487) | $ (16,675) | $ 15,729 | $ (946) | |||||||||
Share of amortization of equity investments' intangibles | ||||||||||||||||||
not on their books | 365 | (365) | - | 351 | (351) | - | 358 | (358) | - | |||||||||
Share of tax impacts related to amortization of | ||||||||||||||||||
equity investments' intangibles not on their books | 63 | (63) | - | 66 | (66) | - | 64 | (64) | - | |||||||||
$ 4,316 | $ (4,881) | $ (565) | $ (2,527) | $ 40 | $ (2,487) | $ (16,253) | $ 15,307 | $ (946) | ||||||||||
Six months ended | ||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||
Non-GAAP | Non-GAAP | |||||||||||||||||
Actual | Adjustments | Results | Actual | Adjustments | Results | |||||||||||||
To exclude stock-based compensation | $ 465 | $ 1,417 | ||||||||||||||||
To exclude amortization of intangible assets resulting | ||||||||||||||||||
from business acquisitions | 2,110 | 2,238 | ||||||||||||||||
To exclude loss on disposal and impairment on investments, net | 6,803 | 1,744 | ||||||||||||||||
To exclude (gain) loss resulting from the fair value changes in | ||||||||||||||||||
investments, net | 2,390 | (4,652) | ||||||||||||||||
To exclude tax impacts related to amortization of intangible assets | (492) | (431) | ||||||||||||||||
Loss from equity method investments, net | $ (12,787) | $ 11,276 | $ (1,511) | $ (5,026) | $ 316 | $ (4,710) | ||||||||||||
Share of amortization of equity investments' intangibles | ||||||||||||||||||
not on their books | 723 | (723) | - | 575 | (575) | - | ||||||||||||
Share of tax impacts related to amortization of | ||||||||||||||||||
equity investments' intangibles not on their books | 127 | (127) | - | 152 | (152) | - | ||||||||||||
$ (11,937) | $ 10,426 | $ (1,511) | $ (4,299) | $ (411) | $ (4,710) | |||||||||||||
* Earning (loss) from equity method investments is recorded one quarter in arrears. | ||||||||||||||||||
SOURCE SINA Corporation
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