BEIJING, February 26, 2016 /PRNewswire/ -- 58.com Inc. (NYSE: WUBA) ("58.com" or the "Company"), China's largest online marketplace serving local merchants and consumers, today reported its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2015.
Fourth Quarter 2015 Financial Highlights
Fiscal Year 2015 Financial Highlights
Management Comments
"We are pleased to have finished the year with a strong fourth quarter in which we beat our topline guidance," commented Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com. "Twelve months ago we only had the 58.com platform, but have since strengthened and consolidated our platform to include Ganji, Anjuke and China HR. These platforms have together generated increased traffic, merchants and revenues and have further strengthened the competitive positions of our core content categories such as jobs, housing, auto and local services. We are now focusing on nurturing further innovation, enhancing the user experience and increasing operational efficiency. 58 Home continues to grow very rapidly and its operational efficiency is improving. We successfully spun off the consumer-to-consumer ("C2C") used car platform Guazi during the quarter and it is off to a fantastic start under Mark Yang's visionary leadership."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "Total revenues and paying customer numbers continued to reach new records during the fourth quarter. Non-GAAP operating loss was reduced to US$50.9 million from US$69.9 in the third quarter. While 58 Home and Guazi continued to generate losses as they are still in the early stages of expansion, our core listings business already turned profitable. Operating cash flow became positive in the fourth quarter. Our net loss for the quarter was impacted by gains associated with the Guazi spin-off, which was a one off transaction."
Fourth Quarter 2015 Financial Results
58.com's financial results for the fourth quarter of 2015 include the results from Anjuke and Ganji, which the Company started to consolidate in March 2015 and early August 2015, respectively.
Revenues
Total revenues were US$255.3 million, representing an increase of 218.3% from US$80.2 million in the same quarter of 2014. The increase in total revenues was primarily driven by the addition of revenues from Ganji and Anjuke, as well as the organic growth of the 58.com platform.
Membership revenues were US$100.9 million, an increase of 153.3% from US$39.8 million in the same quarter of 2014. The increase in membership revenues was primarily driven by an increase in the number of paying merchant members. The number of paying merchant members on the 58.com platform during the fourth quarter of 2015 was approximately 964,000, an increase of 59.3% from 605,000 in the same quarter of 2014. In addition, Ganji and Anjuke jointly had approximately 791,000 paying merchant members in the fourth quarter of 2015. Paying merchant members refer to the merchants who have purchased the Company's subscription-based membership services and whose membership subscriptions are active at any point during a given period. It is important to note that some paying members purchase membership services from more than one 58.com platform, which contributes separately to the revenues from these platforms.
Online marketing services revenues were US$135.9 million, an increase of 237.1% from US$40.3 million in the same quarter of 2014. The increase was primarily driven by increased revenue from Ganji and Anjuke, as well as organic growth of the 58.com platform. Online marketing services revenues generated from the 58.com platform continued to grow and were primarily driven by the effectiveness of real time bidding services and increased traffic.
Cost of Revenues
Cost of revenues was US$20.8 million, an increase of 352.8% from US$4.6 million during the same quarter of 2014. The increase was primarily driven by increased costs associated with the addition of Ganji and Anjuke, as well as the Company's organic growth. The year-over-year increase in the 58.com platform's cost of revenues was primarily driven by increased Traffic Acquisition Costs ("TAC") paid to the Company's advertising union partners as well as other types of website maintenance related costs such as Short Message Service ("SMS") costs, bandwidth fees and depreciation expenses.
Gross Profit and Gross Margin
Gross profit was US$234.5 million, an increase of 210.1% from US$75.6 million during the same quarter of 2014.
Gross margin was 91.8%, compared with 94.3% during the same quarter of 2014. The decrease in gross margin was primarily driven by growth in 58.com's advertising union business, which has lower gross margin than the core classifieds business.
Operating Expenses
Operating expenses were US$306.2 million, representing an increase of 278.2% from US$81.0 million in the same quarter of 2014. The increase was primarily a result of increased operating expenses associated with the consolidation of Ganji's and Anjuke's financials. Operating expenses associated with 58.com's core classifieds business also grew rapidly to support increased traffic and revenues. In addition, operating expenses associated with new transactional model businesses, such as 58 Home and Guazi, also increased significantly in the fourth quarter of 2015 from an immaterial amount in the fourth quarter of 2014.
Sales and marketing expenses in the fourth quarter of 2015 were US$238.4 million, an increase of 294.4% from US$60.4 million during the same quarter in 2014.
Within sales and marketing expenses, advertising expenses accounted for US$98.1 million and US$24.8 million during the fourth quarter of 2015 and 2014, respectively. The increase primarily resulted from the consolidation of Ganji's and Anjuke's financials. Within Ganji's financials, Guazi accounted for the majority of the increase in advertising expenses.
Other sales and marketing expenses in the fourth quarter of 2015 were US$140.3 million, an increase of 293.1% from US$35.6 million during the same period last year. Other sales and marketing expenses mainly include compensation, benefits and commissions of sales, customer services and marketing teams as well as office overhead associated with these teams. The increase was driven by the consolidation of Ganji's and Anjuke's financials and organic growth in 58.com's businesses. The increase in 58.com's business was attributable to subsidies paid to service providers on the 58 Home platform, as well as increased salaries, benefits and commissions as a result of the increased headcount of sales and marketing personnel since competition with Ganji began increasing in the summer of 2014.
Research and development expenses during the fourth quarter of 2015 were US$43.6 million, an increase of 223.6% year-over-year from US$13.5 million in the same quarter of 2014. The increase was driven by an increase in research and development expenses associated with the 58.com platform, as well as those from Ganji and Anjuke platforms. The increase associated with the 58.com platform was primarily due to increased costs associated with the hiring of additional research and development personnel for the development of new features and services.
General and administrative expenses in the fourth quarter of 2015 were US$24.2 million, an increase from US$7.0 million in the same quarter of 2014. The increase was driven by the consolidation of Ganji's and Anjuke's financials, organic growth in 58.com's businesses, increased share-based compensation expenses and an increase in the number of support staff hired to support the expansion of the Company's sales team.
Income/(loss) from Operations
Loss from operations was US$71.7 million in the fourth quarter of 2015, compared with loss from operations of US$5.3 million in the same quarter of 2014. Operating margin was negative 28.1% in the fourth quarter of 2015, compared with negative 6.6% in the same quarter of 2014.
Non-GAAP loss from operations was US$50.9 million in the fourth quarter of 2015, compared with non-GAAP loss from operations of US$3.3 million in the same quarter of 2014. Non-GAAP operating margin was negative 19.9% in the fourth quarter of 2015, compared with non-GAAP operating margin of negative 4.1% in the same quarter of 2014.
Other Income/(expenses)
Other income in the fourth quarter of 2015 was US$64.3 million, compared with other income of US$8.2 million in the same quarter of 2014. The Company recorded a US$69.1 million gain on the disposal of a 54% equity interest in Guazi. On November 25, 2015, the Company announced its plan to spin off Guazi, and the spin off was completed in December 2015. The gain was recognized as the difference between a third-party valuation of Guazi and the sum of its respective goodwill and net assets at the time of the spin-off. Prior to the spin-off, Guazi's losses were consolidated in the Company's financial statements.
Income Tax Benefits/(expenses)
Income tax expenses in the fourth quarter of 2015 were US$0.3 million, compared with income tax benefits of US$0.3 million in the same quarter of 2014.
Net Income/(loss) attributable to 58.com Inc.
Net loss attributable to 58.com Inc. was US$3.6 million in the fourth quarter of 2015, compared with net income attributable to 58.com Inc. of US$3.2 million in the same quarter of 2014. Net margin, defined as net income/(loss) attributable to 58.com Inc. divided by total revenues, was negative 1.4% in the fourth quarter of 2015, compared with 4.0% in the same quarter of 2014.
Non-GAAP net loss was US$48.5 million in the fourth quarter of 2015, compared with non-GAAP net income of US$5.2 million in the same quarter of 2014. Non-GAAP net margin was negative 18.9% in the fourth quarter of 2015, compared with non-GAAP net margin of 6.5% in the same quarter of 2014.
Basic and Diluted Earnings/(Losses) per ADS
Basic and diluted losses per ADS attributable to ordinary shareholders in the fourth quarter of 2015 were US$0.03, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.04 during the same quarter of 2014.
Non-GAAP basic and diluted losses per ADS attributable to ordinary shareholders in the fourth quarter of 2015 were US$0.35, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.06 during the same quarter of 2014.
Cash, Cash Equivalents, Term Deposits, Short-term Investments and Long-term deposits
As of December 31, 2015, the Company had cash and cash equivalents, term deposits, short-term investments and long-term deposits of US$818.5 million.
Cash Flow
Net cash provided by operating activities was US$7.6 million in the fourth quarter of 2015, compared with net cash provided by operating activities of US$27.5 million in the same quarter of 2014.
Fiscal Year 2015 Financial Results
58.com's financial results for the fiscal year 2015 include results from Anjuke and Ganji, which the Company began consolidating in March 2015 and early August 2015, respectively.
Revenues
Total revenues were US$714.9 million in fiscal year 2015, representing an increase of 169.8% from US$265.0 million in fiscal year 2014. The increase in total revenues was driven by the addition of revenues from Ganji and Anjuke, as well as the organic growth of the 58.com platform.
Membership revenues were US$297.2 million in fiscal year 2015, an increase of 113.0% from US$139.5 million in fiscal year 2014. The increase in membership revenues was primarily driven by an increase in the number of paying merchant members. The number of quarterly average paying merchant members on the 58.com platform during fiscal year 2015 was approximately 827,000, an increase of 56.3% from 529,000 in fiscal year 2014.
Online marketing services revenues were US$385.5 million in fiscal year 2015, an increase of 208.4% from US$125.0 million in fiscal year 2014. The increase was primarily driven by the organic growth of the 58.com platform, as well as the effectiveness of real time bidding services, increased traffic, and the consolidation of new businesses such as Ganji and Anjuke.
Cost of Revenues
Cost of revenues was US$51.4 million in fiscal year 2015, an increase of 271.3% from US$13.8 million during fiscal year 2014. The increase was primarily driven by the consolidation of Ganji's and Anjuke's financials, the organic growth of the 58.com platform, an increase in TAC paid to 58.com's advertising union partners, as well as other types of PC and mobile platform maintenance related costs such as SMS costs, bandwidth fees and depreciation expenses.
Gross Profit and Gross Margin
Gross profit was US$663.5 million in fiscal year 2015, an increase of 164.2% from US$251.1 million during fiscal year 2014.
Gross margin was 92.8% in fiscal year 2015, compared with 94.8% during fiscal year 2014. The decrease in gross margin was primarily driven by the growth in 58.com's advertising union business, which has lower gross margin than the core classifieds business.
Operating Expenses
Operating expenses were US$914.1 million in fiscal year 2015, representing an increase of 273.9% from US$244.5 million in fiscal year 2014. The increase was primarily a result of increased operating expenses associated with the consolidation of Ganji's and Anjuke's financials. The operating expenses associated with 58.com's core classifieds business also grew rapidly to support increased traffic and revenues as competition escalated since the summer of 2014. In addition, operating expenses associated with new transactional model businesses such as 58 Home and Guazi C2C used car platforms also increased significantly during the year, especially during the second half of 2015 from an immaterial amount last year.
Sales and marketing expenses in fiscal year 2015 were US$697.5 million, an increase of 287.2% from US$180.1 million in fiscal year 2014.
Within sales and marketing expenses, advertising expenses accounted for US$289.2 million and US$73.4 million in fiscal year 2015 and 2014, respectively. The increase primarily resulted from the consolidation of Ganji's and Anjuke's financials. The Company sequentially increased Anjuke's advertising expenses from second quarter as China's real estate market began to recover. The year-over-year increase in advertising expenses for the 58.com platform in response to increasing competition was also very significant, especially during the first half of 2015, but following the consolidation of Ganji that took place in August 2015, the expenses have been scaled back.
Other sales and marketing expenses in fiscal year 2015 were US$408.3 million, an increase of 282.6% from US$106.7 million in fiscal year 2014. Other sales and marketing expenses mainly include compensation, benefits and commissions of sales, customer services and marketing teams as well as office overhead associated with these teams. The increase was driven by increased expenses associated with consolidation of Ganji and Anjuke's financials, and the organic growth in 58.com's businesses. The increase in 58.com's businesses was attributable to subsidies paid to service providers on the 58 Home platform, as well as increased salaries, benefits and commissions as a result of the increased headcount of sales and marketing personnel in response to increased competition with Ganji.
Research and development expenses in fiscal year 2015 were US$123.2 million, an increase of 182.0% from US$43.7 million in fiscal year 2014. The increase was driven by an increase in research and development expenses associated with the 58.com platform, as well as those from the Ganji and Anjuke platforms. The increase associated with the 58.com platform was primarily due to increased costs associated with the hiring of additional research and development personnel for the development of new features and services.
General and administrative expenses in fiscal year 2015 were US$93.4 million, an increase from US$20.6 million in fiscal year 2014. The increase was primarily attributable to share-based compensation expenses and approximately US$34.7 million in professional fees associated with the strategic investment in Ganji. The increase was also partially due to an increase in the number of support staff hired to support the expansion of the Company's sales team.
Income /(loss) from Operations
Loss from operations was US$250.6 million in fiscal year 2015, compared with an income from operations of US$6.7 million in fiscal year 2014. Operating margin, defined as income/(loss) from operations divided by total revenues, was negative 35.1% in fiscal year 2015, compared with 2.5% in fiscal year 2014.
Non-GAAP loss from operations was US$204.2 million in fiscal year 2015, compared with non-GAAP income from operations of US$12.9 million in fiscal year 2014. Non-GAAP operating margin was negative 28.6% in fiscal year 2015, compared with non-GAAP operating margin of 4.8% in fiscal year 2014.
Other Income/(expenses)
Other expenses in fiscal year 2015 were US$59.5 million, compared with other income of US$22.2 million in fiscal year 2014. Other expenses were mainly composed of a US$138.7 million investment loss associated with the investment in Ganji, which was partially offset by a US$69.1 million gain on the disposal of Guazi.
Income Tax Benefits/(expenses)
Income tax benefits in fiscal year of 2015 were US$8.0 million, compared with income tax expenses of US$6.2 million in fiscal year 2014.
Net Income/(loss) attributable to 58.com Inc.
Net loss attributable to 58.com Inc. was US$288.9 million in fiscal year 2015, compared with net income attributable to 58.com Inc. of US$22.6 million in fiscal year 2014. Net margin, defined as net income/(loss) attributable to 58.com Inc. divided by total revenues, was negative 40.4% in fiscal year 2015, compared with 8.5% in fiscal year 2014.
Non-GAAP net loss attributable to 58.com Inc. was US$181.9 million in fiscal year 2015, compared with non-GAAP net income of US$28.8 million in fiscal year 2014. Non-GAAP net margin was negative 25.4% in fiscal year 2015, compared with non-GAAP net margin of 10.8% in fiscal year 2014.
Basic and Diluted Earnings/(Losses) per ADS
Basic and diluted losses per ADS attributable to ordinary shareholders in fiscal year 2015 were US$2.46, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.27 and US$0.26, respectively, during fiscal year 2014.
Non-GAAP basic and diluted losses per ADS attributable to ordinary shareholders in fiscal year 2015 were US$1.55, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.34 and US$0.33, respectively, during fiscal year 2014.
Cash Flow
Net cash provided by operating activities was US$1.6 million in fiscal year 2015, compared with net cash provided by operating activities of US$98.6 million in fiscal year 2014.
Shares Outstanding
As of December 31, 2015, the Company had a total of 283,068,677 ordinary shares (including 219,413,764 Class A and 63,654,913 Class B ordinary shares) issued and outstanding. One ADS equals to two ordinary shares.
Business Outlook
Based on the Company's current operations, total revenues for the first quarter of 2016 are expected to be between RMB1,400 million and RMB1,450 million, or US$215 million to US$223 million assuming RMB6.50 to US$1.00 exchange rate. This represents a year-over-year increase of 162% to 171%. These estimates reflect the Company's current and preliminary view, which is subject to change.
Notes to Unaudited Financial Information
The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2015 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2015.
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., non-GAAP net margin and non-GAAP basic and diluted earnings/(losses) per share and per ADS by excluding (i) share-based compensation expenses of the group, net off the amount allocated to noncontrolling interests, (ii) amortization of intangible assets resulting from business acquisitions, (iii) loss resulted from revaluation of previously held interest in Ganji, (iv) share-based compensation expenses included in the equity pick-up of net loss of Ganji and (v) gain on disposal of a business, net off income tax expense. 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 and their impact on share-based compensation attributable to noncontrolling interests 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 (i) share-based compensation expenses of the group, net off the amount allocated to noncontrolling interests, (ii) amortization of intangible assets resulting from business acquisitions, (iii) loss resulted from revaluation of previously held interest in Ganji, (iv) share-based compensation expenses included in the equity pick-up of net loss of Ganji and (v) gain on disposal of a business, net off income tax expense, 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 Friday, February 26, 2016 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong the same day).
Dial-in details for the earnings conference call are as follows:
International: |
+1-412-902-4272 |
U.S. Toll Free: |
+1-888-346-8982 |
Hong Kong: |
800-905945 |
China: |
4001-201203 |
Passcode: |
WUBA |
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 4, 2016. The dial-in details for the replay are as follows:
International: |
+1-412-317-0088 |
||
U.S. Toll Free: |
+1-877-344-7529 |
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Passcode: |
10081502 |
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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://www.58.com.
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online marketplace serving local merchants and consumers, as measured by monthly unique visitors on both its www.58.com website and mobile applications. The Company's online marketplace enables local merchants and consumers 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.
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 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. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(U.S. dollars in thousands, except share and per share data, unless otherwise noted) |
|||
As of |
|||
December 31, 2014 |
December 31, 2015 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents................................................................................................. |
111,376 |
528,166 |
|
Restricted cash................................................................................................................... |
1,314 |
4,841 |
|
Term deposits..................................................................................................................... |
281,513 |
150,000 |
|
Short-term investments....................................................................................................... |
216,146 |
73,600 |
|
Accounts receivable, net.................................................................................................... |
6,283 |
55,403 |
|
Prepayments and other current assets.............................................................................. |
24,130 |
81,485 |
|
Total current assets...................................................................................................... |
640,762 |
893,495 |
|
Non-current assets: |
|||
Long-term deposits............................................................................................................. |
———— |
66,698 |
|
Property and equipment, net............................................................................................... |
17,899 |
124,497 |
|
Intangible assets, net.......................................................................................................... |
460 |
271,624 |
|
Land use rights, net............................................................................................................ |
———— |
592 |
|
Goodwill.............................................................................................................................. |
———— |
2,661,809 |
|
Long-term investments....................................................................................................... |
23,784 |
148,173 |
|
Long-term prepayments and other non-current assets..................................................... |
21,027 |
160,669 |
|
Total non-current assets.............................................................................................. |
63,170 |
3,434,062 |
|
Total assets..................................................................................................................... |
703,932 |
4,327,557 |
|
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Short-term loan................................................................................................................... |
———— |
276,540 |
|
Accounts payable.............................................................................................................. |
16,029 |
101,932 |
|
Deferred revenues............................................................................................................. |
95,336 |
207,059 |
|
Customer advances and deposits...................................................................................... |
35,983 |
151,251 |
|
Taxes payable.................................................................................................................... |
7,392 |
10,721 |
|
Salary and welfare payable............................................................................................... |
28,804 |
82,495 |
|
Accrued expenses and other current liabilities................................................................. |
13,071 |
355,076 |
|
Total current liabilities.................................................................................................. |
196,615 |
1,185,074 |
|
Non-current liabilities: |
|||
Deferred tax liabilities......................................................................................................... |
———— |
66,238 |
|
Other non-current liabilities................................................................................................ |
———— |
3,992 |
|
Total non-current liabilities.......................................................................................... |
———— |
70,230 |
|
Total liabilities................................................................................................................. |
196,615 |
1,255,304 |
|
Commitments and contingencies |
|||
Mezzanine equity: |
|||
Mezzanine equity - noncontrolling interests...................................................................... |
———— |
305,038 |
|
Total mezzanine equity................................................................................................ |
———— |
305,038 |
|
Shareholders' equity: |
|||
Ordinary shares (US$0.00001 par value, 4,800,000,000 Class A and |
2 |
3 |
|
Statutory reserve............................................................................................................. |
———— |
29 |
|
Additional paid-in capital................................................................................................... |
624,381 |
3,341,319 |
|
Accumulated deficit.......................................................................................................... |
(115,775) |
(403,790) |
|
Accumulated other comprehensive loss.......................................................................... |
(1,291) |
(176,782) |
|
Total shareholders' equity......................................................................................... |
507,317 |
2,760,779 |
|
Noncontrolling interests............................................................................................ |
———— |
6,436 |
|
Total equity................................................................................................................... |
507,317 |
2,767,215 |
|
Total liabilities, mezzanine equity and equity........................................................ |
703,932 |
4,327,557 |
|
58.com Inc. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
|||||||
(U.S. dollars 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, 2014 |
September 30, 2015 |
December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
|||
Revenues: |
|||||||
Membership................................................................................................................. |
39,839 |
88,649 |
100,901 |
139,490 |
297,150 |
||
Online marketing services........................................................................................... |
40,324 |
116,071 |
135,927 |
125,033 |
385,543 |
||
E-commerce services................................................................................................. |
———— |
6,614 |
11,510 |
———— |
23,046 |
||
Other services............................................................................................................ |
57 |
1,610 |
6,993 |
455 |
9,148 |
||
Total revenues.............................................................................................................. |
80,220 |
212,944 |
255,331 |
264,978 |
714,887 |
||
Cost of revenues(1)...................................................................................................... |
4,604 |
14,488 |
20,848 |
13,844 |
51,405 |
||
Gross profit................................................................................................................... |
75,616 |
198,456 |
234,483 |
251,134 |
663,482 |
||
Operating expenses(1): |
|||||||
Sales and marketing expenses.................................................................................... |
60,446 |
209,885 |
238,399 |
180,148 |
697,509 |
||
Research and development expenses........................................................................ |
13,477 |
38,544 |
43,611 |
43,676 |
123,171 |
||
General and administrative expenses......................................................................... |
7,027 |
35,314 |
24,156 |
20,633 |
93,431 |
||
Total operating expenses.......................................................................................... |
80,950 |
283,743 |
306,166 |
244,457 |
914,111 |
||
Income/(loss) from operations................................................................................. |
(5,334) |
(85,287) |
(71,683) |
6,677 |
(250,629) |
||
Other income/(expenses): |
|||||||
Interest income/(expense), net.................................................................................... |
2,528 |
(1,982) |
(3,847) |
8,527 |
(3,762) |
||
Investment income/(loss), net...................................................................................... |
4,342 |
(129,082) |
1,150 |
10,245 |
(130,447) |
||
Gain on disposal of a business.................................................................................... |
———— |
———— |
69,141 |
———— |
69,141 |
||
Foreign currency exchange loss, net.......................................................................... |
(49) |
(769) |
(1,293) |
(2,510) |
(1,742) |
||
Others, net.................................................................................................................... |
1,396 |
4,616 |
(819) |
5,891 |
7,306 |
||
Income/(loss) before tax............................................................................................. |
2,883 |
(212,504) |
(7,351) |
28,830 |
(310,133) |
||
Income tax benefits/(expenses)................................................................................... |
325 |
1,604 |
(275) |
(6,186) |
7,952 |
||
Net income/(loss).......................................................................................................... |
3,208 |
(210,900) |
(7,626) |
22,644 |
(302,181) |
||
Add: Net loss attributable to noncontrolling interests ................................................... |
———— |
5,233 |
4,567 |
———— |
14,195 |
||
Accretions to mezzanine equity shareholders ............................................................. |
———— |
(358) |
(540) |
———— |
(898) |
||
Net income/(loss) attributable to 58.com Inc............................................................ |
3,208 |
(206,025) |
(3,599) |
22,644 |
(288,884) |
||
Net income/(loss).......................................................................................................... |
3,208 |
(210,900) |
(7,626) |
22,644 |
(302,181) |
||
Foreign currency translation adjustment, net of nil tax................................................. |
486 |
(1,428) |
(176,021) |
396 |
(177,544) |
||
Unrealized gain/(loss) on available-for-sale securities ................................................ |
(1,111) |
(3,676) |
2,844 |
(1,111) |
2,205 |
||
Total comprehensive income/(loss) ........................................................................ |
2,583 |
(216,004) |
(180,803) |
21,929 |
(477,520) |
||
Net income/(loss) per ordinary share attributable to ordinary |
0.02 |
(0.79) |
(0.01) |
0.13 |
(1.23) |
||
Net income/(loss) per ordinary share attributable to ordinary |
0.02 |
(0.79) |
(0.01) |
0.13 |
(1.23) |
||
Net income/(loss) per ADS - basic (1 ADS represents 2 Class |
0.04 |
(1.59) |
(0.03) |
0.27 |
(2.46) |
||
Net income/(loss) per ADS - diluted (1 ADS represents 2 Class |
0.04 |
(1.59) |
(0.03) |
0.26 |
(2.46) |
||
Weighted average number of ordinary shares used in |
175,935,570 |
259,763,592 |
279,096,719 |
168,589,273 |
234,811,986 |
||
Weighted average number of ordinary shares used in |
181,122,008 |
259,763,592 |
279,096,719 |
174,024,997 |
234,811,986 |
||
Note: |
|||||||
(1) Sharea？？based compensation expenses were allocated in cost of revenues and operating expenses as follows: |
|||||||
Cost of revenues............................................................................................................. |
8 |
42 |
35 |
18 |
121 |
||
Sales and marketing expenses....................................................................................... |
581 |
2,444 |
2,660 |
1,395 |
6,998 |
||
Research and development expenses............................................................................ |
708 |
2,990 |
3,944 |
2,403 |
9,447 |
||
General and administrative expenses.............................................................................. |
710 |
3,102 |
4,756 |
2,357 |
11,519 |
||
58.com Inc. |
||||||
Reconciliation of GAAP and Non-GAAP Results |
||||||
(U.S. dollars 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, 2014 |
September 30, 2015 |
December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
||
GAAP income/(loss) from operations.................................. |
(5,334) |
(85,287) |
(71,683) |
6,677 |
(250,629) |
|
Share-based compensation expenses.................................... |
2,007 |
8,578 |
11,395 |
6,173 |
28,085 |
|
Amortization of intangible assets resulting from business |
———— |
6,813 |
9,385 |
———— |
18,354 |
|
Non-GAAP income/(loss) from operations......................... |
(3,327) |
(69,896) |
(50,903) |
12,850 |
(204,190) |
|
GAAP net income/(loss) attributable to 58.com Inc.......... |
3,208 |
(206,025) |
(3,599) |
22,644 |
(288,884) |
|
Share-based compensation expenses................................... |
2,007 |
8,578 |
11,395 |
6,173 |
28,085 |
|
Share-based compensation attributable to noncontrolling |
———— |
(9) |
(10) |
———— |
(239) |
|
Amortization of intangible assets resulting from business |
———— |
6,813 |
9,385 |
———— |
18,354 |
|
Revaluation loss of strategic investment in Ganji.................... |
———— |
35,217 |
———— |
———— |
35,217 |
|
Pick-up of net loss attributable to share-based compensation |
———— |
90,621 |
———— |
———— |
91,172 |
|
Gain on disposal of a business, net off income tax expense |
———— |
———— |
(65,641) |
———— |
(65,641) |
|
Non-GAAP net income/(loss) attributable to 58.com Inc. |
5,215 |
(64,805) |
(48,470) |
28,817 |
(181,936) |
|
GAAP operating margin............................................................... |
(6.6)% |
(40.1)% |
(28.1)% |
2.5% |
(35.1)% |
|
Share-based compensation expenses................................... |
2.5% |
4.0% |
4.5% |
2.3% |
3.9% |
|
Amortization of intangible assets resulting from business |
———— |
3.2% |
3.7% |
———— |
2.6% |
|
Non-GAAP operating margin....................................................... |
(4.1)% |
(32.9)% |
(19.9)% |
4.8% |
(28.6)% |
|
GAAP net margin......................................................................... |
4.0% |
(96.8)% |
(1.4)% |
8.5% |
(40.4)% |
|
Share-based compensation expenses................................... |
2.5% |
4.0% |
4.5% |
2.3% |
3.9% |
|
Share-based compensation attributable to noncontrolling |
———— |
0.0% |
0.0% |
———— |
0.0% |
|
Amortization of intangible assets resulting from business |
———— |
3.2% |
3.7% |
———— |
2.6% |
|
Revaluation loss of strategic investment in Ganji................... |
———— |
16.5% |
———— |
———— |
4.9% |
|
Pick-up of net loss attributable to share-based compensation |
———— |
42.6% |
———— |
———— |
12.8% |
|
Gain on disposal of a business, net off income tax expense |
———— |
———— |
(25.7) % |
———— |
(9.2)% |
|
Non-GAAP net margin.................................................................. |
6.5% |
(30.5)% |
(18.9)% |
10.8% |
(25.4)% |
|
Weighted average number of ordinary shares used in |
175,935,570 |
259,763,592 |
279,096,719 |
168,589,273 |
234,811,986 |
|
Weighted average number of ordinary shares used in |
181,122,008 |
259,763,592 |
279,096,719 |
174,024,997 |
234,811,986 |
|
Weighted average number of ADS used in computing non- |
87,967,785 |
129,881,796 |
139,548,359 |
84,294,637 |
117,405,993 |
|
Weighted average number of ADS used in computing non- |
90,561,004 |
129,881,796 |
139,548,359 |
87,012,499 |
117,405,993 |
|
Non-GAAP net income/(loss) per ordinary share a？？ basic.......... |
0.03 |
(0.25) |
(0.17) |
0.17 |
(0.77) |
|
Non-GAAP net income/(loss) per ordinary share a？？ diluted........ |
0.03 |
(0.25) |
(0.17) |
0.17 |
(0.77) |
|
Non-GAAP net income/(loss) per ADS a？？ basic........................... |
0.06 |
(0.50) |
(0.35) |
0.34 |
(1.55) |
|
Non-GAAP net income/(loss) per ADS a？？ diluted......................... |
0.06 |
(0.50) |
(0.35) |
0.33 |
(1.55) |
|
1 |
Non-GAAP income/(loss) from operations is defined as income/(loss) from operations excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisitions. |
2 |
Non-GAAP net income/(loss) attributable to 58.com Inc. is defined as net income/(loss) attributable to 58.com Inc. excluding (i) share-based compensation expenses of the group, net off the amount allocated to noncontrolling interests, (ii) amortization of intangible assets resulting from business acquisitions, (iii) loss resulted from revaluation of previously held interest in Ganji, (iv) share-based compensation expenses included in the equity pick-up of net loss of Ganji and (v) gain on disposal of a business, net off income tax expense. |
3 |
Non-GAAP basic and diluted earnings/(losses) per ADS is defined as non-GAAP net income/(loss) attributable to 58.com Inc. divided by weighted average number of basic and diluted ADS. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/58com-reports-fourth-quarter-and-fiscal-year-2015-unaudited-financial-results-300226549.html
