BEIJING, May 24, 2017 /PRNewswire/ -- 58.com Inc. (NYSE:
WUBA) ("58.com" or the "Company"), China's largest online market place serving
local merchants and consumers, today reported its unaudited
financial results for the first quarter ended March 31, 2017.
First Quarter 2017 Financial Highlights
- Total revenues were RMB1,988.3
million (US$288.2
million[1]), a
31.7% increase from the same quarter of 2016 in Renminbi amounts,
exceeding the higher end of the Company's guidance of RMB1,855 million.
- Gross margin was 90.0% compared with 89.5% in the same quarter
of 2016.
- Income from operations was RMB77.9
million (US$11.3 million),
compared with loss from operations of RMB333.8 million in the same quarter of
2016.
- Non-GAAP income from operations[2] was RMB217.2 million (US$31.5
million), compared with non-GAAP loss from operations of
RMB214.0 million in the same quarter
of 2016.
- Net loss attributable to 58.com Inc. was RMB21.5 million (US$3.1
million), compared with net loss attributable to 58.com Inc.
of RMB536.5 million in the same
quarter of 2016.
- Non-GAAP net income attributable to 58.com Inc.[3] was RMB105.7 million (US$15.3
million), compared with non-GAAP net loss attributable to
58.com Inc. of RMB346.5 million in
the same quarter of 2016.
- Basic and diluted loss per ADS attributable to ordinary
shareholders was RMB0.15 (US$0.02). One ADS represents two Class A
ordinary shares.
- Non-GAAP basic and diluted earnings per ADS[4] attributable to ordinary
shareholders were RMB0.73
(US$0.11) and RMB0.72 (US$0.10),
respectively.
Management Comments
"We're pleased to report strong first quarter 2017 results,"
commented Michael Yao, Chairman and
Chief Executive Officer of 58.com, "Our job category in particular
continues to grow faster than other major categories, delivering
very strong year-over-year revenue growth as it increasingly
accounts for a larger proportion of our revenues. I'm happy to say
that revenue from our job category exceeded each of our online
recruitment peers in China for the
first time during the quarter. We also continue to see encouraging
year-over-year growth across numerous operational metrics including
traffic and user-engagement, particularly on our mobile apps. In
April 2017, Tencent made a US$200
million investment into our used goods trading platform
"Zhuan Zhuan", which became our third incubated unicorn after 58
Home and Guazi upon completing its Series A financing. We are
confident in the future business prospects of our multi-category
platform and look forward to working with our partners and
affiliated companies to expand our local services eco-system."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "We are
pleased that first quarter revenues exceeded the higher end of our
guidance. The sequential decline in revenue was primarily due to
typical seasonality caused by the Chinese
New Year holiday. We are also pleased to see the continued
year-over-year expansion of our operating and net margins. Cash
flow also improved significantly on a year-over-year basis. We
continue to see opportunities to improve our operational efficiency
as traffic and revenues continued to grow."
First Quarter 2017 Financial Results
Revenues
Total revenues were RMB1,988.3
million (US$288.2 million),
representing an increase of 31.7% from RMB1,509.6
million in the same quarter of 2016.
Membership revenues were RMB792.9
million (US$114.9 million), an
increase of 31.5% from RMB602.9
million in the same quarter of 2016. The increase in
membership revenues was primarily driven by an increase in the
number of paying membership accounts. The total number of paying
membership accounts on the Company's platforms, which include
58.com, Ganji.com and Anjuke.com, was approximately 2,212,000
during the first quarter of 2017, a 21.7% increase from
approximately 1,818,000 in the same quarter of 2016. Paying
membership accounts 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. Some paying members purchase membership services from more
than one Company platform which contributes separately to the
revenues of each platform.
Online marketing services revenues were RMB1,137.0 million (US$164.8 million), an increase of 34.3% from
RMB846.4 million in the same quarter
of 2016. The increase was primarily driven by increases in traffic
and effectiveness of real time bidding and various other online
marketing services.
Cost of Revenues
Cost of revenues was RMB199.6
million (US$28.9 million), an
increase of 25.5% from RMB159.1
million during the same quarter of 2016. The year-over-year
increase in the 58.com's cost of revenues was primarily driven by
increased traffic acquisition costs ("TAC") paid to 58.com's
advertising union partners as well as other types of website
maintenance-related costs such as bandwidth fees and depreciation
expenses.
Gross Profit and Gross Margin
Gross profit was RMB1,788.7
million (US$259.3 million), an
increase of 32.4% from RMB1,350.5
million during the same quarter of 2016.
Gross margin was 90.0%, compared with 89.5% during the same
quarter of 2016. The increase in gross margin was primarily due to
higher growth in total revenue and effective cost control
measures.
Operating Expenses
Operating expenses were RMB1,710.8
million (US$248.0 million),
representing an increase of 1.6% from RMB1,684.3 million in the same quarter of
2016.
Sales and marketing expenses in the first quarter of 2017 were
RMB1,246.0 million (US$180.6 million), a decrease of 5.4% from
RMB1,317.4 million in the same
quarter in 2016.
Within sales and marketing expenses, advertising expenses
accounted for RMB512.2 million
(US$74.2 million) and RMB684.3 million during the first quarter of 2017
and 2016, respectively. The decrease was primarily due to improved
advertising cost control measures following the acquisitions of
Anjuke and Ganji.
Other sales and marketing expenses in the first quarter of 2017
were RMB733.8 million (US$106.4 million), an increase of 15.9% from
RMB633.1 million in the same quarter
in 2016. Other sales and marketing expenses primarily include
compensation, benefits and sales commissions, customer service and
marketing teams as well as office overhead expenses associated with
these teams. The increase was primarily driven by increased
commissions, salaries and benefits for the Company's sales and
customer service teams.
Research and development expenses during the first quarter of
2017 were RMB314.5 million
(US$45.6 million), an increase of
35.5% from RMB232.0 million in the
same quarter of 2016. The increase 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 first quarter of 2017
were RMB150.3 million (US$21.8 million), an 11.4% increase from
RMB134.8 million in the same quarter
of 2016. The increase was primarily driven by increased share-based
compensation expenses and other administrative related
expenses.
Income/(Loss) from Operations
Income from operations was RMB77.9
million (US$11.3 million) in
the first quarter of 2017, compared with loss from operations of
RMB333.8 million in the same quarter
of 2016. Operating margin, defined as income/(loss) from operations
divided by total revenues, was positive 3.9% in the first quarter
of 2017, compared with negative 22.1% in the same quarter of
2016.
Non-GAAP income from operations was RMB217.2 million (US$31.5
million) in the first quarter of 2017, compared with
non-GAAP loss from operations of RMB214.0
million in the same quarter of 2016. Non-GAAP operating
margin, defined as non-GAAP income/(loss) from operations divided
by total revenues, was positive 10.9% in the first quarter of 2017,
compared with negative 14.2% in the same quarter of 2016.
Other Income/(Expenses)
Other expenses in the first quarter of 2017 were RMB96.8 million (US$14.0
million), compared with other expenses of RMB216.9 million in the same quarter of 2016.
Other expenses in the first quarter of 2017 mainly included an
RMB96.4 million pick-up of the net
loss attributable to 58 Home's ordinary shareholders that was
calculated based on the Company's common shareholding in 58 Home,
and was included in share of results of equity investees in the
consolidated statements of operations.
Net Loss
Attributable to 58.com Inc.
Net loss attributable to 58.com Inc. was RMB21.5 million
(US$3.1 million) in the first quarter
of 2017, compared with net loss attributable to 58.com Inc. of
RMB536.5 million in the same quarter
of 2016. Net margin, defined as net income/(loss) attributable to
58.com Inc. divided by total revenues, was negative 1.1% in the
first quarter of 2017, compared with negative 35.5% in the same
quarter of 2016.
Non-GAAP net income attributable to 58.com Inc.[3] was RMB105.7 million (US$15.3
million) in the first quarter of 2017, compared with
non-GAAP net loss attributable to 58.com Inc. of RMB346.5 million in the same quarter of 2016.
Non-GAAP net margin, defined as non-GAAP net income/(loss)
attributable to 58.com Inc. divided by total revenues, was positive
5.3% in the first quarter of 2017, compared with negative 23.0% in
the same quarter of 2016.
Basic and Diluted Earnings/(Loss) per ADS
Basic and diluted loss per ADS attributable to ordinary
shareholders in the first quarter of 2017 were RMB0.15 (US$0.02),
compared with basic and diluted loss per ADS attributable to
ordinary shareholders of RMB3.80, in
the same quarter of 2016.
Non-GAAP basic and diluted earnings per ADS attributable to
ordinary shareholders[4]
in the first quarter of 2017 were RMB0.73 (US$0.11)
and RMB0.72 (US$0.10), respectively, compared with non-GAAP
basic and diluted loss per ADS attributable to ordinary
shareholders of RMB2.45 in the same
quarter of 2016.
Cash Flow
Net cash provided by operating activities was RMB422.4 million (US$61.2
million) in the first quarter of 2017, compared with net
cash provided by operating activities of RMB142.7 million in the same quarter of 2016.
Cash and Cash Equivalents, Term Deposits and Short-term
Investments
As of March 31, 2017, the Company
had cash and cash equivalents, term deposits and short-term
investments of RMB2,355.5 million
(US$341.4 million).
Shares Outstanding
As of March 31, 2017, the Company
had a total of 290,570,395 ordinary shares (including 241,930,135
Class A and 48,640,260 Class B ordinary shares) issued and
outstanding. One ADS represents two Class A ordinary shares.
Business Outlook
Based on the Company's current operations, total revenues for
the second quarter of 2017 are expected to be between
RMB2,250 million and RMB2,350
million. This represents a year-over-year increase of
15.7% to 20.8% in Renminbi amounts. These estimates reflect the
Company's current and preliminary view, which is subject to
change.
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/(loss)
per share and per ADS by excluding share-based compensation
expenses of the group, net of the amount allocated to
noncontrolling interests, amortization of intangible assets
resulting from business acquisitions, pick-up of net loss
attributable to share-based compensation expenses of equity
investees, loss on conversion of Guazi Convertible Note and income
tax effects of above GAAP to non-GAAP reconciling items. 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 share-based compensation expenses of the group,
net of the amount allocated to noncontrolling interests,
amortization of intangible assets resulting from business
acquisitions, pick-up of net loss attributable to share-based
compensation expenses of equity investees, loss on conversion of
Guazi Convertible Note and income tax effects of above GAAP to
non-GAAP reconciling items, all of 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 Thursday, May 25, 2017 at 8:00 a.m. U.S.
Eastern Time (8:00 p.m.
Beijing / Hong Kong time on 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, June 1, 2017. The dial-in details for the replay
are as follows:
International:
|
+1-412-317-0088
|
|
U.S. Toll
Free:
|
+1-877-344-7529
|
|
Passcode:
|
10107732
|
|
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.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands, except share and per share data, unless otherwise
noted)
|
|
As
of
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,200,457
|
|
1,192,865
|
|
172,897
|
Restricted
cash
|
1,151,940
|
|
1,158,160
|
|
167,866
|
Term
deposits
|
26,361
|
|
15,868
|
|
2,300
|
Short-term
investments
|
833,480
|
|
1,146,792
|
|
166,219
|
Accounts receivable,
net
|
424,892
|
|
493,912
|
|
71,588
|
Prepayments and other
current assets
|
426,056
|
|
472,665
|
|
68,509
|
Total current
assets
|
4,063,186
|
|
4,480,262
|
|
649,379
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
1,480,921
|
|
1,434,818
|
|
207,966
|
Intangible assets,
net
|
1,532,228
|
|
1,475,664
|
|
213,886
|
Land use rights,
net
|
3,766
|
|
3,747
|
|
543
|
Goodwill
|
15,903,677
|
|
15,903,677
|
|
2,305,115
|
Long-term
investments
|
2,118,461
|
|
2,117,333
|
|
306,891
|
Long-term prepayments
and other non-current assets
|
223,767
|
|
120,396
|
|
17,450
|
Total non-current
assets
|
21,262,820
|
|
21,055,635
|
|
3,051,851
|
Total
assets
|
25,326,006
|
|
25,535,897
|
|
3,701,230
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
1,842,720
|
|
1,829,304
|
|
265,143
|
Accounts
payable
|
611,947
|
|
608,776
|
|
88,237
|
Deferred
revenues
|
1,845,846
|
|
1,986,661
|
|
287,951
|
Customer
advances
|
1,236,076
|
|
1,378,877
|
|
199,858
|
Taxes
payable
|
62,084
|
|
55,219
|
|
8,004
|
Salary and welfare
payable
|
553,506
|
|
467,431
|
|
67,750
|
Accrued expenses and
other current liabilities
|
727,904
|
|
723,413
|
|
104,853
|
Total current
liabilities
|
6,880,083
|
|
7,049,681
|
|
1,021,796
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
loan
|
150,000
|
|
150,000
|
|
21,741
|
Deferred tax
liabilities
|
373,810
|
|
359,886
|
|
52,163
|
Other non-current
liabilities
|
69,937
|
|
36,740
|
|
5,325
|
Total non-current
liabilities
|
593,747
|
|
546,626
|
|
79,229
|
Total
liabilities
|
7,473,830
|
|
7,596,307
|
|
1,101,025
|
Mezzanine
equity:
|
|
|
|
|
|
Mezzanine classified
noncontrolling interests
|
86,457
|
|
90,479
|
|
13,114
|
Total mezzanine
equity
|
86,457
|
|
90,479
|
|
13,114
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary shares
(US$0.00001 par value, 4,800,000,000 Class A and 200,000,000 Class
B shares authorized, 240,930,737 Class A and 48,740,260 Class B
shares issued and outstanding as of December 31, 2016 and
241,930,135 Class A and 48,640,260 Class B shares issued and
outstanding as of March31, 2017,
respectively)
|
18
|
|
18
|
|
3
|
Additional paid-in
capital
|
20,907,599
|
|
20,999,549
|
|
3,043,722
|
Accumulated
deficit
|
(3,070,735)
|
|
(3,087,764)
|
|
(447,547)
|
Accumulated other
comprehensive loss
|
(138,597)
|
|
(130,236)
|
|
(18,877)
|
Total 58.com Inc.
shareholders' equity
|
17,698,285
|
|
17,781,567
|
|
2,577,301
|
Noncontrolling
interests
|
67,434
|
|
67,544
|
|
9,790
|
Total
shareholders' equity
|
17,765,719
|
|
17,849,111
|
|
2,587,091
|
Total liabilities,
mezzanine equity and shareholders' equity
|
25,326,006
|
|
25,535,897
|
|
3,701,230
|
58.com Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except share, per share and per ADS data, unless otherwise
noted)
|
|
For the Three
Months Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2016
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues:
|
|
|
|
|
|
|
|
Membership
|
602,948
|
|
812,021
|
|
792,928
|
|
114,929
|
Online
marketing services
|
846,437
|
|
1,189,380
|
|
1,137,042
|
|
164,805
|
E-commerce services
|
36,847
|
|
44,520
|
|
15,411
|
|
2,234
|
Other
services
|
23,343
|
|
48,852
|
|
42,890
|
|
6,217
|
Total
revenues
|
1,509,575
|
|
2,094,773
|
|
1,988,271
|
|
288,185
|
Cost of
revenues(1)
|
(159,062)
|
|
(212,238)
|
|
(199,592)
|
|
(28,929)
|
Gross
profit
|
1,350,513
|
|
1,882,535
|
|
1,788,679
|
|
259,256
|
Operating
expenses(1):
|
|
|
|
|
|
|
|
Sales
and marketing expenses
|
(1,317,392)
|
|
(1,224,702)
|
|
(1,246,018)
|
|
(180,601)
|
Research
and development expenses
|
(232,049)
|
|
(313,389)
|
|
(314,478)
|
|
(45,581)
|
General
and administrative expenses
|
(134,846)
|
|
(150,915)
|
|
(150,272)
|
|
(21,781)
|
Total operating
expenses
|
(1,684,287)
|
|
(1,689,006)
|
|
(1,710,768)
|
|
(247,963)
|
Income/(loss) from
operations
|
(333,774)
|
|
193,529
|
|
77,911
|
|
11,293
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
Interest
expenses, net
|
(6,370)
|
|
(9,401)
|
|
(5,780)
|
|
(838)
|
Investment income/(loss), net
|
2,854
|
|
(131,994)
|
|
7,625
|
|
1,105
|
Share of
results of equity investees
|
(138,545)
|
|
(225,178)
|
|
(99,071)
|
|
(14,360)
|
Foreign
currency exchange gain/(loss), net
|
5,296
|
|
229
|
|
(39)
|
|
(6)
|
Others,
net
|
(80,108)
|
|
849
|
|
472
|
|
68
|
Loss before
tax
|
(550,647)
|
|
(171,966)
|
|
(18,882)
|
|
(2,738)
|
Income
tax benefits
|
15,311
|
|
37,639
|
|
1,963
|
|
285
|
Net
loss
|
(535,336)
|
|
(134,327)
|
|
(16,919)
|
|
(2,453)
|
Net
loss/(income) attributable to noncontrolling
interests
|
2,341
|
|
958
|
|
(110)
|
|
(16)
|
Deemed
dividend to mezzanine classified noncontrolling
interests
|
(3,475)
|
|
(4,604)
|
|
(4,488)
|
|
(651)
|
Net loss
attributable to 58.com Inc.
|
(536,470)
|
|
(137,973)
|
|
(21,517)
|
|
(3,120)
|
Net loss per ordinary
share attributable to ordinary shareholders ‑
basic
|
(1.90)
|
|
(0.48)
|
|
(0.07)
|
|
(0.01)
|
Net loss per ordinary
share attributable to ordinary shareholders ‑
diluted
|
(1.90)
|
|
(0.48)
|
|
(0.07)
|
|
(0.01)
|
Net loss per ADS
attributable to ordinary shareholders – basic (1 ADS represents 2
Class A ordinary shares)
|
(3.80)
|
|
(0.95)
|
|
(0.15)
|
|
(0.02)
|
Net loss per ADS
attributable to ordinary shareholders – diluted (1 ADS
represents 2 Class A ordinary shares)
|
(3.80)
|
|
(0.95)
|
|
(0.15)
|
|
(0.02)
|
Weighted average
number of ordinary shares used in computing basic loss per
share
|
282,676,226
|
|
289,523,186
|
|
289,992,930
|
|
289,992,930
|
Weighted average
number of ordinary shares used in computing diluted loss per
share
|
282,676,226
|
|
289,523,186
|
|
289,992,930
|
|
289,992,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(1) Share‑based
compensation expenses were allocated in cost of revenues and
operating expenses as follows:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
291
|
|
387
|
|
574
|
|
83
|
Sales and marketing
expenses
|
12,963
|
|
17,773
|
|
17,694
|
|
2,565
|
Research and
development expenses
|
23,388
|
|
29,439
|
|
29,831
|
|
4,324
|
General and
administrative expenses
|
25,669
|
|
19,152
|
|
34,345
|
|
4,978
|
|
|
|
|
|
|
|
|
|
58.com Inc.
|
Reconciliation of
GAAP and Non-GAAP Results
|
(in thousands,
except share, ADS, per share and per ADS data, unless otherwise
noted)
|
|
For the Three
Months Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2016
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
GAAP income/(loss)
from operations
|
(333,774)
|
|
193,529
|
|
77,911
|
|
11,293
|
Share-based compensation expenses
|
62,311
|
|
66,751
|
|
82,444
|
|
11,950
|
Amortization of intangible assets resulting from
business acquisitions
|
57,432
|
|
57,432
|
|
56,821
|
|
8,236
|
Non-GAAP
income/(loss) from operations
|
(214,031)
|
|
317,712
|
|
217,176
|
|
31,479
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to 58.com Inc.
|
(536,470)
|
|
(137,973)
|
|
(21,517)
|
|
(3,120)
|
Share-based compensation expenses
|
62,311
|
|
66,751
|
|
82,444
|
|
11,950
|
Share-based compensation attributable to
noncontrolling interests
|
(4)
|
|
_
|
|
_
|
|
_
|
Amortization of intangible assets resulting from
business acquisitions
|
57,432
|
|
57,432
|
|
56,821
|
|
8,236
|
Pick-up
of net loss attributable to share-based compensation expenses of
equity investees
|
392
|
|
5,455
|
|
2,191
|
|
318
|
Loss on
conversion of Guazi Convertible Note
|
84,177
|
|
_
|
|
_
|
|
_
|
Income
tax effects of GAAP to non-GAAP reconciling items[5]
|
(14,358)
|
|
(14,358)
|
|
(14,205)
|
|
(2,059)
|
Non-GAAP net
income/(loss) attributable to 58.com Inc.
|
(346,520)
|
|
(22,693)
|
|
105,734
|
|
15,325
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
(22.1)%
|
|
9.2%
|
|
3.9%
|
|
3.9%
|
Share-based compensation expenses
|
4.1%
|
|
3.2%
|
|
4.1%
|
|
4.1%
|
Amortization of intangible assets resulting from
business acquisitions
|
3.8%
|
|
2.7%
|
|
2.9%
|
|
2.9%
|
Non-GAAP operating
margin
|
(14.2)%
|
|
15.1%
|
|
10.9%
|
|
10.9%
|
|
|
|
|
|
|
|
|
GAAP net
margin
|
(35.5)%
|
|
(6.6)%
|
|
(1.1)%
|
|
(1.1)%
|
Share-based compensation expenses
|
4.1%
|
|
3.2%
|
|
4.1%
|
|
4.1%
|
Share-based compensation attributable to
noncontrolling interests
|
0.0%
|
|
_
|
|
_
|
|
_
|
Amortization of intangible assets resulting from
business acquisitions
|
3.8%
|
|
2.7%
|
|
2.9%
|
|
2.9%
|
Pick-up
of net loss attributable to share-based compensation expenses of
equity investees
|
0.0%
|
|
0.3%
|
|
0.1%
|
|
0.1%
|
Loss on
conversion of Guazi Convertible Note
|
5.6%
|
|
_
|
|
_
|
|
_
|
Income
tax effects of GAAP to non-GAAP reconciling items
|
(1.0)%
|
|
(0.7)%
|
|
(0.7)%
|
|
(0.7)%
|
Non-GAAP net
margin
|
(23.0)%
|
|
(1.1)%
|
|
5.3%
|
|
5.3%
|
Weighted
average number of ordinary shares used in computing non-GAAP basic
earnings/(loss) per share
|
282,676,226
|
|
289,523,186
|
|
289,992,930
|
|
289,992,930
|
Weighted
average number of ordinary shares used in computing non-GAAP
diluted earnings/(loss) per share
|
282,676,226
|
|
289,523,186
|
|
292,912,009
|
|
292,912,009
|
Weighted
average number of ADS used in computing non-GAAP basic
earnings/(loss) per ADS
|
141,338,113
|
|
144,761,593
|
|
144,996,465
|
|
144,996,465
|
Weighted
average number of ADS used in computing non-GAAP diluted
earnings/(loss) per ADS
|
141,338,113
|
|
144,761,593
|
|
146,456,004
|
|
146,456,004
|
|
|
|
|
|
|
|
|
Non-GAAP
net earnings/(loss) per ordinary share attributable to ordinary
shareholders ‑ basic
|
(1.23)
|
|
(0.08)
|
|
0.36
|
|
0.05
|
Non-GAAP
net earnings /(loss) per ordinary share attributable to ordinary
shareholders ‑ diluted
|
(1.23)
|
|
(0.08)
|
|
0.36
|
|
0.05
|
Non-GAAP
net earnings /(loss) per ADS attributable to ordinary shareholders
‑ basic
|
(2.45)
|
|
(0.16)
|
|
0.73
|
|
0.11
|
Non-GAAP
net earnings /(loss) per ADS attributable to ordinary
shareholders ‑ diluted
|
(2.45)
|
|
(0.16)
|
|
0.72
|
|
0.10
|
[1] This press release contains translations of certain Renminbi
amounts into U.S. dollars (US$) solely for the convenience of the
reader. Unless otherwise specified, all translations of Renminbi
(RMB) amounts into US$ amounts in this press release are made at
RMB6.8993 to US$1.00, which was the U.S. dollars middle rate
announced by the PRC State Administration of Foreign Exchange on
March 31, 2017. The percentages
stated in this press release are calculated based on the Renminbi
amounts. On May 23, 2017, such
exchange rate was RMB 6.8661 to
US$1.00.
[2] 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. See "Reconciliation of GAAP and Non-GAAP
Results" at the end of this press release.
[3] Non-GAAP net income/(loss) attributable to 58.com Inc. is
defined as net income/(loss) attributable to 58.com Inc. excluding
share-based compensation expenses of the group, net of the amount
allocated to noncontrolling interests, amortization of intangible
assets resulting from business acquisitions, pick-up of net loss
attributable to share-based compensation expenses of equity
investees, loss on conversion of Guazi Convertible Note and income
tax effects of GAAP to non-GAAP reconciling items. See
"Reconciliation of GAAP and Non-GAAP Results" at the end of this
press release.
[4] Non-GAAP basic and diluted earnings/(loss) 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.
[5] This is to exclude the income tax benefits related to
amortization of intangible assets resulting from business
acquisitions calculated at PRC statutory income tax rate of 25%.
Other GAAP to non-GAAP reconciling items have no income tax effect.
The Company included the income tax impacts in the reconciliation
of GAAP to non-GAAP results for the quarter ended March 31, 2017 and updated the prior period
comparative figures accordingly in this earnings release.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/58com-reports-first-quarter-2017-unaudited-financial-results-300463422.html
SOURCE 58.com