BEIJING, February 23, 2012 /PRNewswire-Asia/ -- Qihoo 360 Technology Co. Ltd. ("Qihoo 360" or the "Company") (NYSE: QIHU), a leading Internet company in China as measured by active user base, today reported its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2011.
Fourth Quarter 2011 Highlights(1)
Fiscal Year 2011 Highlights(1)
"We are very pleased to report robust growth and expanding margins in our first full year operating results since becoming a public company," commented Hongyi Zhou, Chairman and Chief Executive Officer of Qihoo 360. "We have set a number of new records in financial and operating metrics, significantly exceeding our expectations. Our success was driven by our continued focus on product and technology innovation and customer satisfaction. Despite global economic uncertainty and capital markets volatility, growth in China's Internet sector remains healthy and we continue to outgrow the market by a wide margin."
"Our business fundamentals are strong as ever. We continue to experience robust growth in all major areas throughout 2011, particularly in the second half. As we maintain our dominant market position in China's Internet security industry, we continued to expand our market share in other key product areas. Our browsers' user penetration hit another record high of 59.5% at the end of 2011, compared to 41% at the end of 2010, further strengthening our leading market position. Total monthly active users of Qihoo 360's products and services surpassed 400 million for the first time ever in our company's history, a significant leap from 290 million at the end of 2010. This is particularly encouraging as it demonstrates the level of trust that our users have in us and the strong brand recognition we carry in the market. We are well positioned for the many opportunities ahead of us as we effectively execute our open platform strategy to drive long-term sustainable growth," Mr. Zhou concluded.
Xiangdong Qi, President of Qihoo 360, added, "With a relatively healthy market environment in China and our history of solid execution, we achieved stronger than expected revenue growth and profitability in the fourth quarter and the full year. Our online advertising business is clearly gaining market share. The 217% year-over-year growth in online advertising in 2011 was supported by robust user activity growth on our Personal Start-up Page and new customer contributions. Although web game operations is still relatively small at Qihoo 360, it is gaining momentum as we see accelerated user growth in the second half of 2011 that eventually drove an over 170% year-over-year revenue growth. As we continue to execute our business plan, we are confident that we can consistently deliver strong operating results in the near term. We also believe our proactive investments in product innovation and technology on both PC and mobile platforms will support long-term sustainable growth for our company."
Fourth Quarter 2011 Operating Metrics
(1) Non-GAAP measures and related reconciliations to GAAP measures are described in the accompanying sections titled "About Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures" at the end of the press release. | |
(2) American Depositary Shares, which are traded on the NYSE. Every two ADSs represent three Class A ordinary shares of the Company. | |
(3) User and market penetration data is based on data from iResearch as of December 2011. | |
Fourth Quarter 2011 Results
Revenues
Revenues were $62.3 million, representing an increase of 214.5% from $19.8 million in the fourth quarter of 2010 and an increase of 31.2% from $47.5 million the third quarter of 2011. The significant year-over-year and sequential increases in revenues were mainly due to continued robust growth in both online advertising and Internet value-added services.
Online advertising revenues were $44.8 million, up 217.2% from the same period last year and 27.8% from the prior quarter. The robust growth was primarily driven by further market penetration of the Company's key products, such as the 360 browsers and the 360 Personalized Start-up Pages and increased user activity.
Internet value-added service revenues, which are mainly derived from web game operations, were $17.2 million, up 227.7% from the same period last year and 41.8% from the prior quarter. The year-over-year and sequential growth was mainly driven by solid growth of the game user base.
Cost of Revenues
Cost of revenues was $7.1 million, compared with $2.2 million in the fourth quarter of 2010 and $5.3 million in the third quarter of 2011, representing increases of 215.2% and 32.4%, respectively.
Operating Expenses
Operating expenses were $40.4 million, compared with $13.3 million in the fourth quarter of 2010 and $31.4 million in the third quarter of 2011. Operating expenses excluding share-based compensation (non-GAAP) were $31.2 million, compared with $12.1 million in the fourth quarter of 2010 and $22.7 million in the prior quarter.
Operating Income
Operating income was $14.8 million, compared with $4.4 million in the fourth quarter of 2010 and $10.8 million in the prior quarter.
Operating income excluding share-based compensation (non-GAAP) was $24.1 million, compared with $5.6 million in the fourth quarter 2010 and $19.4 million in the prior quarter.
Operating margin was 23.8%, compared with 22.2% in the fourth quarter of 2010 and 22.7% in the prior quarter.
Operating margin excluding share-based compensation (non-GAAP) was 38.6%, compared with 28.2% in the fourth quarter of 2010 and 40.9% in the prior quarter. The significant year-over-year improvements in non-GAAP operating margin were primarily driven by leverage from robust revenue growth.
Net Income
Net income attributable to Qihoo 360 was $15.0 million, compared with $4.0million in the fourth quarter of 2010 and $10.9 million in the prior quarter.
Net income attributable to Qihoo 360 excluding share-based compensation (non-GAAP) was $24.3 million, compared with $5.2 million in the fourth quarter of 2010 and $19.5 million in the prior quarter, representing increases of 365.9% and 24.1%, respectively.
Net Margin
Net margin was 24.1%, compared with 20.3% in the same period last year, and 23.0% in the prior quarter.
Net margin excluding share-based compensation (non-GAAP) was 38.9%, compared with 26.3% in the same period last year and 41.2% in the prior quarter. The substantial year-over-year improvements in non-GAAP net margin were driven by leverage from robust revenue growth, as well as foreign currency exchange gains.
Diluted Earnings per ADS
Diluted EPADS for the fourth quarter of 2011 were $0.13, and diluted EPADS for the fourth quarter of 2011 excluding share-based compensation (non-GAAP) were $0.20. Weighted average ADS used in computing diluted EPADS were 120.1 million.
Cash Flows and Balance Sheet
Net cash flow generated from operations in the fourth quarter of 2011 was $40.2 million. Capital expenditures were $7.8 million during the quarter. As of December 31, 2011, the Company had cash and cash equivalents of $343.7 million.
Fiscal Year 2011 Results
Revenues
Revenues were $167.9 million, representing an increase of 191.1% from $57.7 million in 2010. The significant year-over-year increases in revenues were mainly due to accelerated growth in both online advertising and Internet value-added services.
Online advertising revenues were $123.0 million, representing an increase of 216.9% from $38.8 million in 2010. The robust growth was primarily driven by further market penetration of the Company's key products, such as the 360 browsers and the 360 Personalized Start-up Pages, increased user activity, as well as the support of a healthy market environment.
Internet value-added service revenues, which are mainly derived from web game operations, were $43.6 million, representing an increase of 194.9% from $14.8 million in 2010. The strong growth was mainly driven by expanding of the Company's game platform and the accelerated growth of the game user base.
Cost of Revenues
Cost of revenues was $18.9 million, compared with $6.8 million in 2010, representing an increase of 180.2%.
Operating Expenses
Operating expenses were $130.9 million, compared with $42.2 million in 2010. Operating expenses excluding share-based compensation (non-GAAP) were $83.0 million, compared with $38.2 million in 2010.
Operating Income
Operating income was $18.1 million, compared with $9.0 million in 2010.
Operating income excluding share-based compensation (non-GAAP) was $66.1 million, representing an increase of 407.7% from $13.0 million in 2010.
Operating margin was 10.8%, compared with 15.6% in 2010.
Operating margin excluding share-based compensation (non-GAAP) was 39.4%, compared with 22.6% in 2010. The significant year-over-year improvements in non-GAAP operating margin were primarily driven by leverage from robust revenue growth.
Net Income
Net income attributable to Qihoo 360 was $15.6 million, compared with $8.5 million in 2010.
Net income attributable to Qihoo 360 excluding share-based compensation (non-GAAP) was $63.6 million, representing an increase of 408.2% from $12.5 million in 2010.
Net Margin
Net margin was 9.3%, compared with 14.8% in 2010.
Net margin excluding share-based compensation (non-GAAP) was at a record high of 37.9%, compared with 21.7% in 2010. The substantial year-over-year improvements in non-GAAP net margin were attributable to leverage from robust revenue growth, as well as foreign currency exchange gains.
Diluted Earnings per ADS
Diluted EPADS for the year 2011 were $0.14, and diluted EPADS for the year 2011 excluding share-based compensation (non-GAAP) were $0.55. Weighted average ADS used in computing diluted EPADS was 115.3 million.
Cash Flows and Balance Sheet
Net cash flow generated from operations in 2011 was $82.3 million, compared to $20.1 million in 2010. Capital expenditures were $17.8 million. As of December 31, 2011, the Company had cash and cash equivalents of $343.7 million.
Business Outlook
For the first quarter of 2012, the Company expects revenues to be between $63 million and $65 million, representing a year-over-year increase of 175% - 183% and a sequential increase of 1% - 5%. These estimates reflect the Company's current and preliminary view, which is subject to possible material changes.
Other Events
To help investors better understand Qihoo 360's operations, the Company will provide quarterly Cash Flow Statement in its earnings release from the fourth quarter 2011 onwards.
Conference Call
Qihoo 360's management will host a conference call to discuss the results at 8:00 p.m. Eastern Standard Time on February 22, 2012 (9:00 a.m. Beijing time on February 23, 2012).
The dial-in details for the live conference call are:
US Toll Free Dial In: | +1 866-519-4004 | |
US Toll / International Dial In: | +1 718-354-1231 | |
UK Toll Free Dial In: | +44 (0)808-234-6646 | |
Hong Kong Dial In: | +852-2475-0994 | |
Passcode: | QIHU | |
A telephone replay of the call will be available after the conclusion of the conference call at 11:00 p.m. Eastern Standard Time on February 22, 2012 through 11:00 p.m. Eastern Standard Time on February 29, 2012. The dial-in details for the replay are:
US Toll Free Dial In: | +1 718-354-1232 | |
International Dial In: | +1 866-214-5335 | |
Passcode: | 50482084 | |
A live webcast of the conference call will be available on the investor relations section of Qihoo 360's website at: http://corp.360.cn.
About Qihoo 360
Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) is a leading internet company in China as measured by its active user base. The Company is also the number one provider of internet and mobile security solutions in China as measured by its active smartphone user base, according to iResearch. Qihoo 360 also provides users with secure access points to the internet via its market leading web browsers and application stores. The Company has built one of the largest open internet platforms in China. Qihoo 360 monetizes its massive user base primarily through online advertising and through internet value-added services on its open platforms.
Forward-looking Statements
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward- looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. Among other things, the management's quotations contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Qihoo 360 and the industry. Potential risks and uncertainties include, but are not limited to: the Company's ability to continue to innovate and provide attractive products and services to attract and retain users; the Company's ability to keep up with rapid changes in technologies and Internet-enabled devices; the Company's ability to leverage its user base to attract customers for our revenue-generating services; and the Company's dependence on online advertising for a substantial portion of our revenues; and the Company's ability to compete effectively. All information provided in this press release is as of the date of the press release, and Qihoo 360 undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Qihoo 360 believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by Qihoo 360 is included in Qihoo 360's filings with the U.S. Securities and Exchange Commission, including its final prospectus dated March 29, 2011.
About Non-GAAP Financial Measures
To supplement our financial results presented in accordance with U.S. GAAP, we use non-GAAP financial measure, which is adjusted from results based on U.S. GAAP to exclude share-based compensation expenses. Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are set forth in tables at the end of this earnings release, which provide more details on the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help our investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP results. In addition, our calculation of this non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.
For investor and media inquiries, please contact: | |
Qihoo 360 Technology Co. Ltd. | |
Tel: +86 10-5878-1574 | |
E-mail: ir@360.cn | |
Christensen | |
Mr. Tip Fleming | |
Tel: +852 9212 0684 | |
E-mail: tfleming@ChristensenIR.com | |
Qihoo 360 Technology Co. Ltd. | |||
Condensed Consolidated Balance Sheets | |||
(U.S. dollars in thousands, except for shares and per share data) | |||
(Unaudited) | |||
December 31, | December 31, | ||
2010 | 2011 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | 60,505 | 343,731 | |
Trading securities | - | 231 | |
Accounts receivable (net of allowance for doubtful accounts of | |||
$14 and $68 as of December 31, 2010 and December 31, 2011, respectively) | 8,160 | 16,741 | |
Prepaid expenses and other current assets | 3,140 | 12,806 | |
Inventory | 3 | 2 | |
Deferred tax assets - current | 796 | 858 | |
Total current assets | 72,604 | 374,369 | |
Property and equipment, net | 3,306 | 16,665 | |
Acquired intangible assets, net | 5,546 | 7,854 | |
Goodwill | 3,918 | 4,580 | |
Long-term investments | 1,981 | 15,561 | |
Other noncurrent assets | 200 | 4,415 | |
Deferred tax assets - noncurrent | 253 | 514 | |
TOTAL ASSETS | 87,808 | 423,958 | |
LIABILITIES | |||
Current liabilities: | |||
Accounts payable (including accounts payable of the consolidated | |||
VIEs without recourse to Qihoo 360 Technology Co. Ltd. of | |||
$1,383 and $5,872 as of December 31, 2010 and December 31, 2011, respectively) | 1,387 | 5,872 | |
Accrued expenses and other current liabilities (including accrued | |||
expenses and other current liabilities of the consolidated VIEs | |||
without recourse to Qihoo 360 Technology Co. Ltd. of | |||
$8,048 and $17,815 as of December 31, 2010 and December 31, 2011, respectively) | 10,885 | 31,891 | |
Amount due to related parties (including amount due to related parties of the consolidated VIEs without recourse to Qihoo 360 Technology Co. Ltd of nil | |||
and $1,025 as of December 31, 2010 and December 31, 2011, respectively | - | 1,025 | |
Income tax payable (including income tax payable of the consolidated VIEs | |||
without recourse to Qihoo 360 Technology Co. Ltd. of $92 and $3,635 | |||
as of December 31, 2010 and December 31, 2011, respectively) | 127 | 7,312 | |
Current portion of long-term payable (including current portion of | |||
long-term payable of the consolidated VIEs without recourse to | |||
Qihoo 360 Technology Co. Ltd. of $1,525 and $460 as | |||
of December 31, 2010 and December 31, 2011, respectively) | 1,525 | 460 | |
Total current liabilities | 13,924 | 46,560 | |
Deferred tax liabilities - noncurrent | 512 | 507 | |
Long-term payable (including long-term payable of the consolidated | |||
VIEs without recourse to Qihoo 360 Technology Co. Ltd. of | |||
$450 and $286 as of December 31, 2010 and December 31, 2011, respectively) | 450 | 286 | |
Deferred income-noncurrent (including deferred income-noncurrent of the | |||
consolidated VIEs without recourse to Qihoo Technology Co., Ltd of | |||
$nil and $1,589 as of December 31, 2010 and December 31, respectively | - | 5,113 | |
TOTAL LIABILITIES | 14,886 | 52,466 | |
Series A convertible participating redeemable preferred shares | |||
($0.001 par value; 32,603,760 shares authorized; 32,603,760 | |||
shares issued and outstanding as of December 31, 2010 ; | |||
liquidations value $16,300 as of December 31, 2010) | 20,107 | - | |
Series B convertible participating redeemable preferred shares | |||
($0.001 par value; 37,878,789 shares authorized; 37,878,789 | |||
shares issued and outstanding as of December 31, 2010; | |||
liquidations value $25,000 as of December 31, 2010) | 29,193 | - | |
Series C convertible participating redeemable preferred shares | |||
($0.001 par value; 7,831,467 shares authorized, 7,831,467 | |||
issued and outstanding as of December 31, 2010 ; | |||
liquidation value $20,000 as of December 31, 2010) | 20,900 | - | |
EQUITY | |||
Total Qihoo 360 Technology Co. Ltd. Shareholders' equity | 2,215 | 370,853 | |
Noncontrolling interest | 507 | 639 | |
Total equity | 2,722 | 371,492 | |
TOTAL LIABILITIES, CONVERTIBLE PARTICIPATING | |||
REDEEMABLE PREFERRED SHARES AND EQUITY | 87,808 | 423,958 | |
Qihoo 360 Technology Co. Ltd. | |||||||
Condensed Consolidated Statements of operations | |||||||
(U.S. dollars in thousands, except for shares and per share data) | |||||||
(Unaudited) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2010 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||
Revenues: | |||||||
Internet services | 19,398 | 47,289 | 62,169 | 53,790 | 166,961 | ||
Sales of third party anti-virus software | 420 | 201 | 152 | 3,875 | 890 | ||
Total revenues | 19,818 | 47,490 | 62,321 | 57,665 | 167,851 | ||
Cost of revenues: | |||||||
Internet services | 2,117 | 5,296 | 7,042 | 5,566 | 18,680 | ||
Sales of third party anti-virus software | 129 | 53 | 38 | 1,185 | 238 | ||
Total cost of revenues | 2,246 | 5,349 | 7,080 | 6,751 | 18,918 | ||
Subsidy income | 89 | 9 | 8 | 266 | 151 | ||
Operating expenses: | |||||||
Selling and marketing | 2,803 | 8,943 | 10,251 | 12,603 | 46,836 | ||
General and administrative | 2,246 | 5,551 | 6,772 | 5,051 | 19,054 | ||
Product development(a) | 8,208 | 16,888 | 23,392 | 24,505 | 65,049 | ||
Total operating expenses | 13,257 | 31,382 | 40,415 | 42,159 | 130,939 | ||
Income from operations | 4,404 | 10,768 | 14,834 | 9,021 | 18,145 | ||
Interest income | 107 | 846 | 1,194 | 415 | 2,594 | ||
Interest expense | (22) | (12) | (9) | (98) | (53) | ||
Other income (expense) | (8) | (62) | - | (60) | (3) | ||
Exchange gain (loss) | (107) | 2,946 | 2,719 | (267) | 6,294 | ||
Impairment ( loss) on long-term investment | - | - | (902) | - | (902) | ||
Change on fair value of trading securities | - | (218) | (63) | - | (220) | ||
Income before income tax expense | |||||||
and income (loss) from equity method investment | 4,374 | 14,268 | 17,773 | 9,011 | 25,855 | ||
Income tax expense | (315) | (3,460) | (3,028) | (463) | (10,874) | ||
Income (loss) from equity method investment | (57) | (271) | (392) | (57) | (437) | ||
Net income | 4,002 | 10,537 | 14,353 | 8,491 | 14,544 | ||
Less: Net loss attributable to noncontrolling interest | 17 | 367 | 681 | 17 | 1,059 | ||
Net income attributable to | |||||||
Qihoo 360 Technology Co. Ltd. | 4,019 | 10,904 | 15,034 | 8,508 | 15,603 | ||
(a): From Q3 2011, the Company changed the "Research and development expenses" to "Product development expenses" in the statements of operations. This is mainly because the business has been growing rapidly and along with the development of new products, the Company has devoted more resources in enhancing its existing products, by which the Company believes using "Product development expenses" will better reflect the nature of such expenses. The Product development expenses include costs associated with new product development and enhancement for existing products, such as salaries and benefits, including share-based compensation expenses, costs of bandwidth and utilities, license and technical service fees, and depreciation of equipment and amortization of acquired intangible assets. | |||||||
Qihoo 360 Technology Co. Ltd. | |||||
Condensed Consolidated Statements of Cash Flows | |||||
(U.S. dollars in thousands) | |||||
(Unaudited) | |||||
Three-months period ended | Twelve-month periods ended | ||||
| December 31, 2010 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |
Cash flows from operating activities: |
|
| |||
Net income | 4,002 | 14,353 | 8,491 | 14,544 | |
Share-based compensation | 1,188 | 9,226 | 4,006 | 47,989 | |
Depreciation and amortization | 490 | 1,635 | 1,344 | 4,227 | |
Loss on equity method investment | 57 | 392 | 57 | 437 | |
Loss from impairment of intangible assets | - | 87 | - | 87 | |
Impairment on long-term investment | - | 902 | - | 902 | |
Loss from short-term investment | - | 63 | - | 220 | |
Provision of allowance for doubtful accounts | - | - | (32) | 51 | |
Changes in operating assets and liabilities | 3,969 | 13,504 | 6,259 | 13,846 | |
Net cash provided by operating activities | 9,706 | 40,162 | 20,125 | 82,303 | |
Cash flows from investing activities: | - | - | - | - | |
Purchase of property and equipment and intangible assets | (1,467) | (7,770) | (4,029) | (17,777) | |
Payment for the purchase of other assets | (352) | (463) | (1,039) | (1,571) | |
Consideration paid in connection with business acquisition | (23) | (815) | (2,619) | (487) | |
Capital contribution for investment | (448) | (5,971) | (1,366) | (14,976) | |
Net cash used in investing activities | (2,290) | (15,019) | (9,053) | (34,811) | |
|
|
|
| ||
Proceeds from issuance of Series C convertible participating | - | - | 20,000 | - | |
Payment of issuance costs of Series C convertible participating | - | - | (78) | - | |
Proceeds from initial public offering (net of cost) | (44) | (1,320) | (44) | 231,701 | |
Proceeds from exercise of stock option | - | 20 | 375 | 20 | |
Capital contribution from noncontrolling interest | - | - | - | 1,559 | |
Net cash (used in)/provided by financing activities | (44) | (1,300) | 20,253 | 233,280 | |
|
|
|
| ||
Effect of exchange rate changes | 546 | 871 | 1,036 | 2,454 | |
INCREASE IN CASH | 7,918 | 24,714 | 32,361 | 283,226 | |
CASH, BEGINNING OF PERIOD | 52,587 | 319,017 | 28,144 | 60,505 | |
CASH, END OF PERIOD | 60,505 | 343,731 | 60,505 | 343,731 | |
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures | ||||||||||||
Three Months Ended December 31, 2010 | Three Months Ended September 30, 2011 | Three Months Ended December 31, 2011 | ||||||||||
GAAP | Adjustment(b) | Non-GAAP | GAAP | Adjustment(b) | Non-GAAP | GAAP | Adjustment(b) | Non-GAAP | ||||
Operating expenses | $13,257 | ($1,188) | $12,069 | $31,382 | ($8,641) | $22,741 | $40,415 | ($9,219) | $31,196 | |||
Income from operations | $4,404 | $1,188 | $5,592 | $10,768 | $8,645 | $19,413 | $14,834 | $9,226 | $24,060 | |||
Operating margin | 22.2% | 28.2% | 22.7% | 40.9% | 23.8% | 38.6% | ||||||
Net income attributable to Qihoo 360 Technology Co. Ltd. | $4,019 | $1,188 | $5,207 | $10,904 | $8,645 | $19,549 | $15,034 | $9,226 | $24,260 | |||
Net margin | 20.3% | 26.3% | 23.0% | 41.2% | 24.1% | 38.9% | ||||||
Diluted earnings per ADS | N/A | N/A | $0.09 | $0.16 | $0.13 | $0.20 | ||||||
Twelve-month periods ended December 31, 2010 | Twelve-month periods ended December 31, 2011 | |||||||
GAAP | Adjustment(b) | Non-GAAP | GAAP | Adjustment(b) | Non-GAAP | |||
Operating expenses | $42,159 | ($4,006) | $38,153 | $130,939 | ($47,973) | $82,966 | ||
Income from operations | $9,021 | $4,006 | $13,027 | $18,145 | $47,989 | $66,134 | ||
Operation margin | 15.6% | 22.6% | 10.8% | 39.4% | ||||
Net income attributable to Qihoo 360 Technology Co. Ltd. | $8,508 | $4,006 | $12,514 | $15,603 | $47,989 | $63,592 | ||
Net margin | 14.8% | 21.7% | 9.3% | 37.9% | ||||
(b): Adjustment to exclude the share-based compensation expense of each period. | ||||||||
