EX-99.1 2 a19-5877_1ex99d1.htm EX-99.1

Exhibit 99.1

SINA Reports Fourth Quarter and Fiscal Year 2018 Unaudited Financial Results

BEIJING, China—March 5, 2019—SINA Corporation (the “Company” or “SINA”) (NASDAQ: SINA), a leading online media company serving China and the global Chinese communities, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2018.

Fourth Quarter 2018 Highlights

· Both net revenues and non-GAAP net revenues increased 14% year-over-year to $573.0 million and $570.4 million, respectively.

· Advertising revenues increased 14% year-over-year to $484.3 million.

· Non-advertising revenues increased 12% year-over-year to $88.7 million. Non-GAAP non-advertising revenues increased 13% year-over-year to $86.1 million.

· Net income attributable to SINA was $16.4 million, or $0.22 for diluted net income per share attributable to SINA’s ordinary shareholders. Non-GAAP net income attributable to SINA was $57.7 million, or $0.80 for non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders.

· Weibo’s monthly active users (“MAUs”) were 462 million in December 2018, a net addition of approximately 70 million users on a year-over-year basis. Weibo’s mobile MAUs represented 93% of Weibo’s MAUs.

· Weibo’s average daily active users (“DAUs”) were 200 million in December 2018, a net addition of approximately 28 million users on a year-over-year basis.

Fiscal Year 2018 Highlights

· Both net revenues and non-GAAP net revenues increased 33% year-over-year to $2.11 billion and $2.10 billion, respectively.

· Advertising revenues increased 36% year-over-year to $1.79 billion.

· Non-advertising revenues increased 17% year-over-year to $319.0 million. Non-GAAP non-advertising revenues increased 18% year-over-year to $308.6 million.

· Net income attributable to SINA was $125.6 million, or $1.70 for diluted net income per share attributable to SINA’s ordinary shareholders. Non-GAAP net income attributable to SINA was $227.1 million, or $3.07 for non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders.

Fourth Quarter 2018 Financial Results

For the fourth quarter of 2018, SINA reported net revenues of $573.0 million, an increase of 14% compared to $503.7 million for the same period last year. Non-GAAP net revenues for the fourth quarter of 2018 were $570.4 million, an increase of 14% compared to $501.1 million for the same period last year.

Advertising revenues for the fourth quarter of 2018 were $484.3 million, an increase of 14% compared to $424.8 million for the same period last year, primarily driven by an increase of $84.7 million, or 25% growth in Weibo advertising and marketing revenues.

Non-advertising revenues for the fourth quarter of 2018 were $88.7 million, an increase of 12% compared to $79.0 million for the same period last year. Non-GAAP non-advertising revenues for the fourth quarter of 2018 were $86.1 million, an increase of 13% compared to $76.4 million for the same period last year. The year-over-year growth in non-advertising revenues was mainly attributable to the newly acquired live broadcasting business by Weibo in the fourth quarter of 2018.

Gross margin for the fourth quarter of 2018 was 79%, compared to 75% for the same period last year. Advertising gross margin for the fourth quarter of 2018 was 82%, compared to 76% for the same period last year. The increase in advertising gross margin was due to our revenue reporting changed from gross basis to net basis under the new revenue guidance adopted. Non-advertising gross margin for the fourth quarter of 2018 was 57%, down from 66% for the same period last year, mainly resulted from the relatively lower margin of the acquired live broadcasting business of Weibo.

Operating expenses for the fourth quarter of 2018 totaled $319.9 million, compared to $248.4 million for the same period last year. The increase primarily resulted from the inclusion of marketing expense related to barter transactions recorded under the new revenue guidance as illustrated below as well as goodwill and acquired intangibles impairment charge for non-core business line. Non-GAAP operating expenses for the fourth quarter of 2018 totaled $288.6 million, compared to $226.8 million for the same period last year.

Income from operations for the fourth quarter of 2018 was $130.1 million, compared to $128.7 million for the same period last year. Operating margin was 23%, down from 26% for the same period last year. Non-GAAP income from operations for the fourth quarter of 2018 was $159.6 million, compared to $149.8 million for the same period last year. Non-GAAP operating margin was 28%, slightly down from 30% for the same period last year.

Non-operating loss for the fourth quarter of 2018 was $12.6 million, compared to a non-operating income of $7.7 million for the same period last year. Non-operating loss for the fourth quarter of 2018 included (i) a $23.0 million net loss on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measure; (ii) a $15.1 million net interest and other income; and (iii) a $4.7 million net loss from equity-method investments, which is reported one quarter in arrears. Non-operating income for the fourth quarter of 2017 composed of an $11.2 million net interest and other income and a $2.8 million loss pick-up from equity-method investments, which is reported one quarter in arrears.

Income tax expenses for the fourth quarter of 2018 were $14.3 million, compared to $17.2 million for the same period last year.

Net income attributable to SINA’s ordinary shareholders for the fourth quarter of 2018 was $16.4 million, compared to $45.4 million for the same period last year. Diluted net income per share attributable to SINA’s ordinary shareholders for the fourth quarter of 2018 was $0.22, compared to $0.60 for the same period last year. Non-GAAP net income attributable to SINA’s ordinary shareholders for the fourth quarter of 2018 was $57.7 million, compared to $60.0 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders for the fourth quarter of 2018 was $0.80, compared to $0.79 for the same period last year.

As of December 31, 2018, SINA’s cash, cash equivalents and short-term investments totaled $2.3 billion, compared to $3.4 billion as of December 31, 2017. The decrease of SINA’s cash, cash equivalents and short-term investments mainly resulted from continued investment activities, the execution of the Company’s share repurchase program and repayment of SINA’s convertible senior notes. For the fourth quarter of 2018, net cash provided by operating activities was $138.9 million, capital expenditures totaled $17.1 million, and depreciation and amortization expenses amounted to $11.9 million.

Fiscal Year 2018 Financial Results

For fiscal year 2018, SINA reported net revenues of $2.11 billion, an increase of 33% compared to $1.58 billion in 2017. Non-GAAP net revenues for 2018 were $2.10 billion, an increase of 33% compared to $1.57 billion in 2017.

Advertising revenues in 2018 were $1.79 billion, an increase of 36% compared to $1.31 billion in 2017, primarily driven by an increase of $502.4 million, or 50% growth in Weibo advertising and marketing revenues.

Non-advertising revenues in 2018 were $319.0 million, an increase of 17% compared to $272.0 million in 2017. Non-GAAP non-advertising revenues in 2018 were $308.6 million, an increase of 18% compared to $261.6 million in 2017, benefiting from increased Weibo membership fees and incremental revenue contributed from the live broadcasting business of Weibo.

Gross margin in 2018 was 79%, compared to 74% in 2017. Advertising gross margin in 2018 was 81%, compared to 75% in 2017. The increase in advertising gross margin mainly resulted from our revenue reporting changed from gross basis to net basis under the new accounting standard adopted. Non-advertising gross margin in 2018 was 65%, slightly down from 67% in 2017.

Operating expenses in 2018 totaled $1.19 billion, compared to $781.2 million in 2017. Apart from the inclusion of marketing expense related to barter transactions recorded under the new revenue guidance as illustrated below, the increase in operating expenses was also attributable to the increase in sales and marketing expenses for Weibo’s user acquisition and the increase in personnel related expenses. Non-GAAP operating expenses in 2018 totaled $1.07 billion, compared to $694.6 million in 2017.

Income from operations in 2018 was $467.0 million, compared to $388.6 million in 2017. Operating margin was 22%, down from 25% in 2017. Non-GAAP income from operations in 2018 was $581.5 million, compared to $474.0 million in 2017. Non-GAAP operating margin was 28%, slightly down from 30% in 2017.

Non-operating income in 2018 was $88.5 million, compared to $35.7 million in 2017. Non-operating income in 2018 included (i) a $69.4 million net interest and other income; (ii) an $18.0 million net gain on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measure; and (iii) a $1.1 million net income from equity-method investments, which is reported one quarter in arrears. Non-operating income in 2017 mainly included (i) a $42.7 million net interest and other income; (ii) a $16.1 million net loss from equity-method investments, which is reported one quarter in arrears; and (iii) a $9.0 million net gain on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measure.

Income tax expenses in 2018 were $129.1 million, compared to $74.7 million in 2017. The increase was primarily due to higher profits generated in 2018 and the deferred tax provision recognized in respect of the fair value changes of investments. Non-GAAP income tax expenses in 2018 were $91.0 million, compared to $73.9 million in 2017.

Net income attributable to SINA’s ordinary shareholders in 2018 was $125.6 million, compared to $156.6 million in 2017. Diluted net income per share attributable to SINA’s ordinary shareholders in 2018 was $1.70, compared to $2.09 in 2017. Non-GAAP net income attributable to SINA’s ordinary shareholders in 2018 was $227.1 million, compared to $207.9 million in 2017. Non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders in 2018 was $3.07, compared to $2.77 in 2017.

For the fiscal year of 2018, net cash provided by operating activities was $311.0 million, capital expenditures totaled $262.2 million, and depreciation and amortization expenses amounted to $41.2 million.

Financial Impact from New Revenue Guidance

As the Company adopted new revenue guidance ASC Topic 606 on January 1, 2018, results for reporting periods beginning after January 1, 2018 are presented under Topic 606 (‘New Basis’), while prior period amounts are not adjusted and continue to be reported under Topic 605 (‘Old Basis’) , which is the Company’s historic accounting method.

The Company’s current period reported results which reflected the impact from the adoption of the new revenue guidance are as follows:

	Three months ended December 31, 2018
	Adjustments
	Old Basis ASC 605		VAT		Barter Transaction	New Basis ASC 606
	($ In thousands, except for percentage)
Net revenues	556,519		(31,196	)	47,691	573,014
- Portal	99,497		(5,463	)	643	94,677
- Weibo	460,772		(25,945	)	47,048	481,875
Cost of revenues	154,241		(31,196	)	—	123,045
Operating expenses	276,081		—		43,834	319,915
- Sales and marketing	147,374		—		43,834	191,208
Income from operations	126,197		—		3,857	130,054
Gross margin	72.3	%				78.5	%
Operating margin	22.7	%				22.7	%

	Year ended December 31, 2018
	Adjustments
	Old Basis ASC 605		VAT		Barter Transaction		New Basis ASC 606
	($ In thousands, except for percentage)
Net revenues	2,113,954		(118,006	)	112,379		2,108,327
- Portal	422,835		(23,243	)	2,035		401,627
- Weibo	1,703,644		(95,470	)	110,344		1,718,518
Cost of revenues	570,046		(118,006	)	—		452,040
Operating expenses	1,076,520		—		112,813		1,189,333
- Sales and marketing	587,149		—		112,813		699,962
Income from operations	467,388		—		(434	)	466,954
Gross margin	73.0	%					78.6	%
Operating margin	22.1	%					22.1	%

Business Outlook

For the fiscal year 2019, SINA estimates that its net revenues are between RMB16.5 billion and RMB17.5 billion, or US$2.44 billion and US$2.59 billion, assuming US dollar and RMB exchange rate of 6.75. It represents an annual growth rate of 18% to 25% on a constant currency basis. Such revenue forecast includes the recognition of $10.4 million in deferred license revenues related to the license granted to Leju. This forecast reflects SINA’s current and preliminary view, which is subject to change.

Non-GAAP Measures

This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP advertising and non-advertising gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income attributable to SINA’s ordinary shareholders and non-GAAP diluted net income per share attributable to SINA’s ordinary shareholders. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company’s financial performance prepared in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may be defined differently than similar terms used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures.

The Company’s non-GAAP financial measures exclude recognition of deferred revenues related to the license granted to Leju, stock-based compensation, amortization of intangible assets, goodwill and acquired intangibles impairment, adjustment for non-GAAP to GAAP reconciling items on the share of equity method investments, gain (loss) on sale of investment, deemed disposal, fair value changes and impairment on investment, and income tax effects of above non-GAAP to GAAP reconciling items and adjustment for non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests and amortization of convertible debt issuance cost. The Company’s management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company’s current financial results with the Company’s past financial results in a consistent manner, and (ii) in understanding and evaluating the Company’s current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company’s core operating results and business outlook.

Use of non-GAAP financial measures has limitations. The Company’s non-GAAP financial measures do not include all income and expense items that affect the Company’s operations. They may not be comparable to non-GAAP financial measures used by other companies. Management compensates for these limitations by also considering the Company’s financial results prepared in accordance with U.S. GAAP. Reconciliations of the Company’s non-GAAP measures to the nearest comparable GAAP measures are set forth in the section below titled “Unaudited Reconciliation of Non-GAAP to GAAP Results.”

Conference Call

SINA will host a conference call from 7:10 a.m. — 7:40 a.m. Eastern Time on March 5, 2019 (or 8:10 p.m. — 8:40 p.m. Beijing Time on March 5, 2019) to present an overview of the Company’s financial performance and business operations. A live webcast of the call will be available through the Company’s corporate website at http://ir.sina.com. The conference call can be accessed as follows:

US:		+1 845 675 0438
Hong Kong:		+852 3018 6776
China:		400 120 0654
International:		+65 6713 5440
Passcode for all regions:		4677406

A replay of the conference call will be available through morning Eastern Time March 13, 2019. The dial-in number is +61 2 9003 4211. The passcode for the replay is 4677406.

About SINA

SINA is a leading online media company serving China and the global Chinese communities. Its digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile apps) and Weibo (social media) enables internet users to access professional media and user generated content in multi-media formats from personal computers and mobile devices and share their interests with friends and acquaintances.

SINA.com offers distinct and targeted professional content on each of its region-specific websites and a full range of complementary offerings. SINA mobile provides news information, professional and entertainment content customized for mobile users through mobile applications and mobile portal site SINA.cn.

Weibo is a leading social media platform for people to create, distribute and discover content. Based on an open platform architecture, Weibo provides unprecedented and simple way for people and organizations to publicly express themselves in real time, interact with others on a massive global platform and stay connected with the world.

Through these properties and other product lines, SINA offer an array of online media and social media services to its users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences.

Safe Harbor Statement

This press release contains forward-looking statements that relate to, among other things, SINA’s expected financial performance and SINA’s strategic and operational plans (as described, without limitation, in quotations from management in this press release). SINA may also make forward-looking statements in the Company’s periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “confidence,” “estimates” and similar statements. SINA assumes no obligation to update the forward-looking statements in this press release and elsewhere. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to failure to meet internal or external expectations of future performance given the rapidly evolving markets; condition of the global financial and credit market; the uncertain regulatory landscape in China; fluctuations in the Company’s quarterly operating results; the Company’s reliance on online advertising sales and value-added services for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products, including portal, Weibo and fin-tech products; failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties, such as Alibaba; failure to successfully integrate acquired businesses; risks associated with the Company’s investments, including equity pick-up and impairment; and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA’s 2017 annual reports on Form 20-F and other filings with the Securities and Exchange Commission.

Contact:

Investor Relations

SINA Corporation

Phone: +86 10 5898 3336

Email: ir@staff.sina.com.cn

SINA CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. Dollars in thousands, except per share data)

Three months ended

Year ended

December 31,

September 30,

December 31,

2018

2017

2018

2017

Net revenues (1):

Advertising

484,307

424,756

483,806

1,789,285

1,311,866

Non-advertising

88,707

78,982

73,395

319,042

272,018

573,014

503,738

557,201

2,108,327

1,583,884

Cost of revenues (1)(2):

Advertising

85,048

99,858

92,407

341,153

325,494

Non-advertising

37,997

26,812

21,408

110,887

88,643

123,045

126,670

113,815

452,040

414,137

Gross profit

449,969

377,068

443,386

1,656,287

1,169,747

Operating expenses:

Sales and marketing (1)(2)

191,208

143,020

185,478

699,962

408,856

Product development (2)

85,383

78,977

91,545

345,942

267,392

General and administrative (2)

30,633

26,421

28,377

120,184

104,923

Goodwill and acquired intangibles impairment

12,691

—

10,554

23,245

—

319,915

248,418

315,954

1,189,333

781,171

Income from operations

130,054

128,650

127,432

466,954

388,576

Non-operating income (loss):

Earning (Loss) from equity method investments, net

(4,731

)

(2,843

)

10,150

1,120

(16,070

)

Gain (Loss) on sale of investments, fair value changes and impairment on investments, net (3)

(22,960

)

(740

)

50,111

17,981

9,037

Interest and other income, net

15,090

11,244

17,051

69,355

42,696

(12,601

)

7,661

77,312

88,456

35,663

Income before income taxes

117,453

136,311

204,744

555,410

424,239

Income tax expense

(14,347

)

(17,160

)

(68,129

)

(129,084

)

(74,676

)

Net income

103,106

119,151

136,615

426,326

349,563

Less: Net income attributable to non-controlling interests

86,729

73,787

91,176

300,764

192,994

Net income attributable to SINA’s ordinary shareholders

16,377

45,364

45,439

125,562

156,569

Basic net income per share

0.24

0.63

0.66

1.79

2.20

Diluted net income per share (4)

0.22

0.60

0.62

1.70

2.09

Shares used in computing basic net income per share

69,235

71,516

69,332

70,296

71,284

Shares used in computing diluted net income per share

69,666

74,213

71,322

72,375

73,931

(1) On January 1, 2018, the Company adopted ASC 606 Revenue from Contracts with Customers using the modified retrospective method,which means that prior periods amount will be reported on a historical basis and amounts for 2018 are reported on the new basis. Under the new accounting standard, the main impact to the Company is that it now reports revenue net of value added tax and recognizes revenues and expenses at fair value for advertising barter transactions.

(2) Stock-based compensation in each category:

Cost of revenues	$	922	$	2,145	$	3,775	$	10,128	$	9,257
Sales and marketing	3,174		5,370		7,414		21,942		20,790
Product development	4,403		6,432		11,205		30,830		29,163
General and administrative	8,834		8,237		9,012		32,169		32,177

(3) The Company adopted ASU 2016-1, Classification and Measurement of Financial Instruments beginning the first quarter of fiscal year 2018. After the adoption of this new accounting update, the Company measures long-term investments other than those accounted for under the equity method, at fair value through earnings. For those investments without readily determinable fair values, the Company elected to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Changes in the basis of these investments are reported in current earnings. The Company recognized net loss of $20.3 million and net gain of $96.5 million from fair value changes in the investments for the three months and the year ended December 31, 2018, respectively.

(4) Net income attributable to SINA’s ordinary shareholders is adjusted for diluted shares issued by our subsidiary and equity method investments.

SINA CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

	December 31,		December 31,
	2018		2017
Assets
Current assets:
Cash and cash equivalents	$	1,545,800	$	1,990,552
Short-term investments	799,534		1,381,991
Restricted cash	97,032		216,151
Accounts receivable, net	527,897		285,681
Prepaid expenses and other current assets	362,435		228,238
Subtotal	3,332,698		4,102,613

Property and equipment, net	262,846		262,676
Goodwill and intangible assets, net	319,575		104,207
Long-term investments (1)	1,889,843		1,288,816
Other assets	81,127		57,082
Total assets	$	5,886,089	$	5,815,394

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	172,562	$	130,431
Amount due to customers	97,032		216,151
Accrued expenses and other current liabilities	540,807		446,779
Short-term bank loan	78,229		89,309
Convertible debt (2)	—		153,092
Deferred revenues	139,306		134,580
Income taxes payable	115,725		102,458
Subtotal	1,143,661		1,272,800

Convertible debt	884,123		879,983
Long-term deferred revenues	43,652		54,372
Other long-term liabilities	51,781		8,510
Total liabilities	2,123,217		2,215,665

Shareholders’ equity
SINA shareholders’ equity (1)	2,717,791		2,846,842
Non-controlling interests	1,045,081		752,887
Total shareholders’ equity	3,762,872		3,599,729

Total liabilities and shareholders’ equity	$	5,886,089	$	5,815,394

(1) The Company adopted ASU 2016-1, Classification and Measurement of Financial Instruments beginning the first quarter of fiscal year 2018. After the adoption of this new accounting update, the Company measures long-term investments other than those investments accounted for under the equity method, at fair value through earnings. For those investments without readily determinable fair values, the Company elected to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Changes in the basis of these investments are reported in current earnings. The cumulative impact arising from the adoption was a credit to retained earnings as of January 1, 2018 of $49.0 million.

(2) In December 2018, the Company repaid $153.1 million in aggregate principal amount of 1.00% coupon interest convertible senior notes on its maturity date.

SINA CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(U.S. Dollars in thousands)

	Three months ended									Year ended
	December 31,						September 30,			December 31,
	2018			2017			2018			2018			2017

Net revenues
Portal:
Portal Advertising	$	67,377		$	95,319		$	74,533		$	290,215		$	320,473
Other	27,300			33,842			26,707			111,412			122,535
Subtotal	94,677			129,161			101,240			401,627			443,008

Weibo:
Advertising and marketing	417,016			332,305			409,273			1,499,180			996,745
Weibo VAS	64,859			45,140			50,898			219,338			153,309
Subtotal	481,875			377,445			460,171			1,718,518			1,150,054

Elimination	(3,538		)	(2,868		)	(4,210		)	(11,818		)	(9,178		)
	$	573,014		$	503,738		$	557,201		$	2,108,327		$	1,583,884

Cost of revenues
Portal:
Portal Advertising	$	29,180		$	35,647		$	30,501		$	117,600		$	121,278
Other	14,377			19,180			17,508			68,500			65,733
Subtotal	43,557			54,827			48,009			186,100			187,011

Weibo	82,940			72,005			70,016			277,648			231,255

Elimination	(3,452		)	(162		)	(4,210		)	(11,708		)	(4,129		)
	$	123,045		$	126,670		$	113,815		$	452,040		$	414,137

Gross margin
*Portal*	54		%	58		%	53		%	54		%	58		%
*Weibo*	83		%	81		%	85		%	84		%	80		%
	79		%	75		%	80		%	79		%	74		%

SINA CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(U.S. Dollars in thousands, except per share data)

Three months ended

December 31, 2018

December 31, 2017

September 30, 2018

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

Actual

Adjustments

Results

Advertising revenues

484,307

424,756

483,806

Non-advertising revenues

88,707

(2,609

)(a)

86,098

78,982

(2,609

)(a)

76,373

73,395

(2,609

)(a)

70,786

Net revenues

573,014

(2,609

)

570,405

503,738

(2,609

)

501,129

557,201

(2,609

)

554,592

(2,609

)(a)

(2,609

)(a)

(2,609

)(a)

922

(b)

2,145

(b)

3,775

(b)

Gross profit

449,969

(1,687

)

448,282

377,068

(464

)

376,604

443,386

1,166

444,552

(16,411

)(b)

(27,631

)(b)

(2,177

)(c)

(20,039

)(b)

(1,354

)(c)

(12,691

)(d)

(1,535

)(c)

(10,554

)(d)

Operating expenses

319,915

(31,279

)

288,636

248,418

(21,574

)

226,844

315,954

(39,539

)

276,415

(2,609

)(a)

(2,609

)(a)

17,333

(b)

(2,609

)(a)

31,406

(b)

2,177

(c)

22,184

(b)

1,354

(c)

12,691

(d)

1,535

(c)

10,554

(d)

Income from operations

130,054

29,592

159,646

128,650

21,110

149,760

127,432

40,705

168,137

(2,609

)(a)

(2,609

)(a)

17,333

(b)

(2,609

)(a)

31,406

(b)

2,177

(c)

22,184

(b)

1,354

(c)

12,691

(d)

1,535

(c)

10,554

(d)

4,797

(e)

1,503

(e)

(6,879

)(e)

22,960

(f)

740

(f)

(50,111

)(f)

(14,929

)(g)

(9,197

)(g)

(2,845

)(g)

1,035

(h)

690

(h)

1,035

(h)

(2,138

)(i)

(253

)(i)

40,311

(i)

Net income attributable to SINA’s ordinary shareholders

16,377

41,317

57,694

45,364

14,593

59,957

45,439

22,216

67,655

Diluted net income per share *

0.22

0.80

0.60

0.79

0.62

0.93

Shares used in computing diluted net income per share

69,666

960

(j)

70,626

74,213

—

74,213

71,322

—

71,322

Gross margin - advertising

Gross margin - non-advertising

-1

Operating margin

Year ended

December 31, 2018

December 31, 2017

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

Advertising revenues

1,789,285

1,311,866

Non-advertising revenues

319,042

(10,436

)(a)

308,606

272,018

(10,436

)(a)

261,582

Net revenues

2,108,327

(10,436

)

2,097,891

1,583,884

(10,436

)

1,573,448

(10,436

)(a)

(10,436

)(a)

10,128

(b)

9,257

(b)

Gross profit

1,656,287

(308

)

1,655,979

1,169,747

(1,179

)

1,168,568

(84,941

)(b)

(6,689

)(c)

(82,130

)(b)

(23,245

)(d)

(4,455

)(c)

Operating expenses

1,189,333

(114,875

)

1,074,458

781,171

(86,585

)

694,586

(10,436

)(a)

95,069

(b)

(10,436

)(a)

6,689

(c)

91,387

(b)

23,245

(d)

4,455

(c)

Income from operations

466,954

114,567

581,521

388,576

85,406

473,982

(10,436

)(a)

95,069

(b)

(10,436

)(a)

6,689

(c)

91,387

(b)

23,245

(d)

4,455

(c)

(2,493

)(e)

3,276

(e)

(17,981

)(f)

(9,037

)(f)

(34,806

)(g)

(29,827

)(g)

4,140

(h)

690

(h)

38,109

(i)

785

(i)

Net income attributable to SINA’s ordinary shareholders

125,562

101,536

227,098

156,569

51,293

207,862

Diluted net income per share *

1.70

3.07

2.09

2.77

Shares used in computing diluted net income per share

72,375

—

72,375

73,931

—

73,931

Gross margin - advertising

—

Gross margin - non-advertising

-1

Operating margin

(a)	To exclude the recognition of deferred revenue related to the license granted to Leju.
(b)	To exclude stock-based compensation.
(c)	To adjust amortization of intangible assets.
(d)	To exclude goodwill and acquired intangibles impairment
(e)	To exclude the non-GAAP to GAAP reconciling items on the share of equity method investments, net of share of amortization of intangibles not on their books.
(f)	To exclude (gain) loss on sale of investments, (gain) loss on deemed disposal, fair value changes and impairment on investments, net.
(g)	To exclude Non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests.
(h)	To exclude the amortization of convertible debt issuance cost.
(i)	To exclude the provision (benefit) for income tax related to item (c), (d) and (f). Other non-GAAP to GAAP reconciling items have no income tax effect.**
(j)	To adjust the number of shares for dilution resulted from convertible debt and unvested equity granted.

*	Net income attributable to SINA’s ordinary shareholders is adjusted for diluted shares issued by our subsidiary and equity method investments.
**	The Company considered the tax implication arising from the reconciliation items, and those items recorded in entities in tax free jurisdictions were without relevant tax implications. For impairment on investments, valuation allowances were made for those differences the Company does not expect they can be realized in the foreseeable future.

UNAUDITED RECONCILIATION OF SINA’S SHARE OF EQUITY INVESTMENTS’ NON-GAAP TO GAAP RESULTS*

	Three months ended
	December 31, 2018									December 31, 2017									September 30, 2018
	Actual			Adjustments			Non-GAAP Results			Actual			Adjustments			Non-GAAP Results			Actual		Adjustments			Non-GAAP Results
To exclude stock-based compensation				$	350								$	881							$	674
To exclude amortization of intangible assets resulting from business acquisitions				1,062									1,177								1,079
To exclude loss on disposal and impairment on investments, net				—									848								1,245
To exclude (gain) loss resulting from the fair value changes in investments, net				4,062									(1,426		)						(9,187		)
To exclude tax impacts related to amortization of intangible assets				(248		)							(178		)						(263		)
Earning (Loss) from equity method investments, net	$	(5,160	)	$	5,226		$	66		$	(2,642	)	$	1,302		$	(1,340	)	$	9,723	$	(6,452	)	$	3,271
Share of amortization of equity investments’ intangibles not on their books	367			(367		)	—			(253		)	253			—			364		(364		)	—
Share of tax impacts related to amortization of equity investments’ intangibles not on their books	62			(62		)	—			52			(52		)	—			63		(63		)	—
	$	(4,731	)	$	4,797		$	66		$	(2,843	)	$	1,503		$	(1,340	)	$	10,150	$	(6,879	)	$	3,271

	Year ended
	December 31, 2018									December 31, 2017
							Non-GAAP									Non-GAAP
	Actual			Adjustments			Results			Actual			Adjustments			Results
To exclude stock-based compensation				$	2,441								$	3,759
To exclude amortization of intangible assets resulting from business acquisitions				4,379									3,441
To exclude (gain) loss on disposal and impairment on investments, net				2,989									(465		)
To exclude gain resulting from the fair value changes in investments, net				(9,777		)							(3,769		)
To exclude tax impacts related to amortization of intangible assets				(942		)							(508		)
Loss from equity method investments, net	$	(463	)	$	(910	)	$	(1,373	)	$	(15,252	)	$	2,458		$	(12,794	)
Share of amortization of equity investments’ intangibles not on their books	1,306			(1,306		)	—			(1,031		)	1,031			—
Share of tax impacts related to amortization of equity investments’ intangibles not on their books	277			(277		)	—			213			(213		)	—
	$	1,120		$	(2,493	)	$	(1,373	)	$	(16,070	)	$	3,276		$	(12,794	)

* Earning (Loss) from equity method investments is recorded one quarter in arrears.