feng-ex991_15.htm

Phoenix New Media Reports Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results

BEIJING, China, March 16, 2021 – Phoenix New Media Limited (NYSE: FENG) (“Phoenix New Media”, “ifeng” or the “Company”), a leading new media company in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020.

Mr. Shuang Liu, CEO of Phoenix New Media, commented, “We delivered encouraging results in the fourth quarter while remaining committed to the sustained growth and evolution of our business. Despite the industry-wide challenges caused by COVID-19, we continued to bolster our news leadership during the quarter and distinctively combined our editorial expertise and cutting-edge AI algorithms to provide our users with a consistent supply of up-to-date coverage. Meanwhile, we also organized several high-profile offline events in the period to further enhance our brand influence and multifaceted value propositions for advertisers and users. For our flagship news app, iFeng, we continued to fuel the development of a more video-focused content ecosystem through a number of initiatives. Going forward, this should help us to garner more PUGC creation, expand the depth and breadth of our short-form video offerings, and stimulate the social nature of iFeng’s community to further boost user interactions and engagement on the platform.”

Mr. Liu continued, “Beyond improving our core business lines, we also continued to focus on the cultivation of our new product development capabilities. During the quarter, for example, we leveraged our leadership in content production to launch our online e-commerce brand Phoenix Premium Products for our established massive user base. Going forward, we will continue to focus on the development of our content ecosystem, optimization of our current product offerings, and exploration of new business growth drivers. By advancing our competitive advantages in these key strategic areas, we will also improve our ability to capitalize on those new opportunities which may emerge as the economy continues to recover and people return to their normal ways of life.”

Mr. Edward Lu, CFO of Phoenix New Media, further stated, “Our total revenues reached RMB362.2 million in the fourth quarter of 2020, which was in line with our previous guidance. More importantly, due to our strict cost control measures, we achieved a 33.7% year-over-year reduction in total operating expenses during the quarter. Meanwhile, we plan to continue focusing on new business models in the market while also actively exploring the development of and investment in new products to capture additional growth opportunities. We expect the combination of our growing brand influence and deep insights into new product categories will help us not only navigate the current macro uncertainties, but also seize more business opportunities with strong potential in 2021.”

As disclosed in the second quarter 2020 unaudited financial results announcement made on August 17, 2020, the Company sold all of its investment in Beijing Yitian Xindong Network Technology Co., Ltd. (“Yitian Xindong” or “Tadu”) in the second quarter of 2020 and the disposal of Tadu was qualified for reporting as a “discontinued operation” in the Company’s financial statements. Accordingly, Tadu’s results of operations have been excluded from the Company’s results from continuing operations in the condensed consolidated statements of comprehensive income/(loss) and are presented in separate line items as discontinued operations for all prior periods. The related assets and liabilities associated with the discontinued operations in the prior year consolidated balance sheets were classified as assets/liabilities held for sale to provide the comparable financial information, and the financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.

Total revenues in the fourth quarter of 2020 decreased by 9.5% to RMB362.2 million (US$55.5 million) from RMB400.4 million in the same period of 2019, which was primarily due to the negative impact of the COVID-19 outbreak.

Net advertising revenues in the fourth quarter of 2020 decreased by 7.3% to RMB336.7 million (US$51.6 million) from RMB363.1 million in the same period of 2019. The decrease was primarily attributable to the negative impact of the COVID-19 outbreak.

Paid services revenues¹ in the fourth quarter of 2020 decreased by 31.4% to RMB25.5 million (US$3.9 million) from RMB37.3 million in the same period of 2019. Revenues from paid contents in the fourth quarter of 2020 decreased by 46.6% to RMB11.2 million (US$1.7 million) from RMB20.9 million in the same period of 2019, which was mainly due to the tightening of rules and regulations on digital reading in China and in line with the broader market conditions reflecting the trend towards free online reading. Revenues from MVAS and games were small and had been declining for the past years. Revenues from others in the fourth quarter of 2020 increased by 31.2% to RMB10.9 million (US$1.7 million) from RMB8.3 million in the same period of 2019, which was mainly caused by the increase in revenues from E-commerce and online real estate related services.

Cost of revenues in the fourth quarter of 2020 decreased by 5.1% to RMB179.2 million (US$27.5 million) from RMB188.8 million in the same period of 2019. The decrease in cost of revenues was mainly due to the following:

Bandwidth costs in the fourth quarter of 2020 decreased to RMB13.9 million (US$2.1 million) from RMB14.9 million in the same period of 2019, mainly due to the adoption of more efficient cloud-based servers to replace local severs in 2020.

Gross profit in the fourth quarter of 2020 decreased to RMB183.0 million (US$28.0 million) from RMB211.6 million in the same period of 2019. Gross margin in the fourth quarter of 2020 decreased to 50.5% as compared to 52.8% in the same period of 2019.

To supplement the financial measures presented in accordance with the United States Generally Accepted Accounting Principles (“GAAP”), the Company has presented certain non-GAAP financial measures in this press release, which excludes the impact of certain reconciling items as stated in the “Use of Non-GAAP Financial Measures” section below. The related reconciliations to GAAP financial measures are presented in the accompanying “Reconciliations of Non-GAAP Results of Operation Measures to the Nearest Comparable GAAP Measures.”

Non-GAAP gross margin in the fourth quarter of 2020, which excluded share-based compensation, decreased to 50.6% from 53.1% in the same period of 2019.

Total operating expenses in the fourth quarter of 2020 decreased by 33.7% to RMB211.8 million (US$32.5 million) from RMB319.6 million in the same period of 2019, primarily attributable to the decrease in the Company’s traffic acquisition expenses and the personnel-related expenses caused by the strict cost control measures taken to enhance its operating efficiency, which was partially offset by the impairment of goodwill for the reporting unit of Beijing Fenghuang Tianbo Network Technology Co., Ltd. (“Tianbo”) recognized in the fourth quarter of 2020. The Company recognized an impairment of goodwill of RMB22.8 million (US$3.5 million) for the Tianbo reporting unit in the fourth quarter of 2020, mainly caused by the negative impact on Tianbo from both the COVID-19 outbreak in 2020 and the tightening of rules and regulations on real estate market in China as well as intensified industry competition. The impairment loss of goodwill was determined by quantitatively comparing the fair value of the Tianbo reporting unit to its carrying amounts, with the fair value of the Tianbo reporting unit determined based on the discounted cash flows of Tianbo. Share-based compensation included in operating expenses in the fourth quarter of 2020 was RMB2.5 million (US$0.4 million), as compared to RMB2.8 million in the same period of 2019.

Loss from operations in the fourth quarter of 2020 was RMB28.8 million (US$4.4 million), improved from RMB108.1 million in the same period of 2019. Operating margin in the fourth quarter of 2020 was negative 8.0%, improved from negative 27.0% in the same period of 2019.

Non-GAAP loss from operations in the fourth quarter of 2020, which excluded share-based compensation and impairment of goodwill, was RMB3.3 million (US$0.5 million), improved from RMB104.2 million in the same period of 2019. Non-GAAP operating margin in the fourth quarter of 2020, which excluded share-based compensation and impairment of goodwill, was negative 0.9%, improved from negative 26.0% in the same period of 2019.

Other income or loss reflects net interest income, foreign currency exchange gain or loss, loss from equity method investments, changes in fair value of forward contract in relation to disposal of investments in Particle,

gain on disposal of available-for-sale debt investments and others, net². Total net other income in the fourth quarter of 2020 was RMB499.1 million (US$76.5 million), compared to RMB1,016.6 million in the same period of 2019.

NET INCOME OR LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED

Net income from continuing operations attributable to Phoenix New Media Limited in the fourth quarter of 2020 was RMB454.8 million (US$69.7 million), compared to net income from continuing operations attributable to Phoenix New Media Limited of RMB902.5 million in the same period of 2019. Net margin from continuing operations in the fourth quarter of 2020 was 125.6%, compared to 225.4% in the same period of 2019. Net income from continuing operations per ordinary share in the fourth quarter of 2020 was RMB0.78 (US$0.12), compared to net income from continuing operations per ordinary share of RMB1.55 in the same period of 2019.

Non-GAAP net loss from continuing operations attributable to Company in the fourth quarter of 2020, which excluded share-based compensation, changes in fair value of forward contract in relation to disposal of investments in Particle, loss from equity method investments, gain on disposal of available-for-sale debt investments and impairment of goodwill, was RMB8.2 million (US$1.3 million), compared to non-GAAP net loss from continuing operations attributable to the Company of RMB99.2 million in the same period of 2019. Non-GAAP net margin from continuing operations in the fourth quarter of 2020 was negative 2.3%, compared to negative 24.8% in the same period of 2019. Non-GAAP net loss from continuing operations per diluted ADS³ in the fourth quarter of 2020 was RMB0.11 (US$0.02), compared to non-GAAP net loss from continuing operations per diluted ADS of RMB1.36 in the same period of 2019.

For the fourth quarter of 2020 , the Company’s weighted average number of ADSs used in the computation of diluted net loss per ADS was 72,790,541. As of December 31, 2020, the Company had a total of 582,324,325 ordinary shares outstanding, or the equivalent of 72,790,541 ADSs.

Total revenues in 2020 decreased by 9.0% to RMB1.21 billion (US$185.3 million) from RMB1.33 billion in 2019, primarily attributable to the negative impact of the COVID-19 outbreak.

Net advertising revenues in 2020 decreased by 6.8% to RMB1.11 billion (US$170.6 million) from RMB1.20 billion in 2019, primarily due to the negative impact of the COVID-19 outbreak.

Paid services revenues in 2020 decreased by 28.0% to RMB95.8 million (US$14.7 million) from RMB133.0 million in 2019, primarily attributable to the tightening of rules and regulations on digital reading in China and in line with the broader market conditions reflecting the trend towards free online reading.

Cost of revenues in 2020 decreased by 18.2% to RMB559.3 million (US$85.7 million) from RMB683.3 million in 2019, primarily attributable to the Company’s strict cost control measures taken to enhance its operating efficiency in 2020. Share-based compensation included in cost of revenues in 2020 was RMB2.6 million (US$0.4 million) as compared to RMB5.2 million in 2019.

Gross profit in 2020 increased slightly to RMB649.6 million (US$99.5 million) from RMB644.5 million in 2019. Gross margin in 2020 increased to 53.7% from 48.5% in 2019, mainly attributable to the Company’s strict cost control measures taken to enhance its operating efficiency in 2020, as explained above.

Total operating expense in 2020 decreased to RMB752.1million (US$115.3million) from RMB1,000.5 million in 2019, primarily attributable to the decreases in both the Company’s traffic acquisition expenses and the personnel-related expenses as a result of the strict cost control measures taken by the Company to enhance its operating efficiency in 2020. Share-based compensation included in operating expenses was RMB6.8 million (US$1.0 million) in 2020, compared to RMB6.7 million in 2019.

Loss from operations in 2020 was RMB102.6 million (US$15.7 million), improved from RMB356.1 million in 2019. Operating margin in 2020 was negative 8.5%, improved from negative 26.8% in 2019.

Non-GAAP loss from operations in 2020, which excluded share-based compensation and impairment of goodwill, was RMB70.4 million (US$10.8 million), improved from RMB344.3 million in 2019. Non-GAAP operating margin in 2020, which excluded share-based compensation and impairment of goodwill, was negative 5.8%, improved from negative 25.9% in 2019.

NET INCOME OR LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED

Net income from continuing operations attributable to the Company in 2020 was RMB418.0 million (US$64.1 million), compared to net income from continuing operations attributable to the Company of RMB664.2 million in 2019. Net margin from continuing operations in 2020 was 34.6%, compared to 50.0% in 2019. Net income from continuing operations per diluted ordinary share in 2020 was RMB0.72 (US$0.11), compared to a net income from continuing operations per diluted ordinary share of RMB1.14 in 2019.

Non-GAAP net loss from continuing operations attributable to the Company in the fiscal year of 2020, which excluded share-based compensation, loss/(income) from equity method investments, changes in fair value of forward contract in relation to disposal of investments in Particle, changes in fair value of loan related to co-sale of Particle shares, gain on disposal of available-for-sale debt investments, impairment of available-for-sale debt investment and impairment of goodwill, was RMB33.7 million (US$5.2 million), compared to non-GAAP net loss from continuing operations attributable to the Company of RMB326.1 million in 2019. Non-GAAP net margin from continuing operations in the fiscal year of 2020 was negative 2.8%, improved from negative 24.6% in 2019. Non-GAAP net loss from continuing operations per diluted ADS in 2020 was RMB0.46 (US$0.07), improved from non-GAAP net loss from continuing operations per diluted ADS of RMB4.48 in 2019.

As of December 31, 2020, the Company's cash and cash equivalents, term deposits and short term investments and restricted cash were RMB1.67 billion (US$255.8 million).

The Company’s investments in Particle were recorded as available-for sale debt investments in the balance sheet. The fair value of the Company’s available-for-sale debt investments in Particle decreased from RMB1,061.3 million as of September 30, 2020 to RMB30.7 million (US$4.7 million) as of December 31, 2020, as the share transfer transaction between the Company and the Buyers was closed on October 19, 2020 and the available-for-sale debt investments as of December 31, 2020 only included the 4,584,209 series D1 preferred shares of Particle still held by the Company. The fair value of the investments in Particle as of December 31, 2020 was determined based on a valuation technique under the market approach, known as the guideline company method.

For the first quarter of 2021, the Company expects its total revenues to be between RMB210.2 million and RMB230.2 million; net advertising revenues are expected to be between RMB192.0 million and RMB207.0 million; and paid services revenues are expected to be between RMB18.2 million and RMB23.2 million.

All of the above forecasts reflect the Company’s management’s current and preliminary view, which is subject to change and substantial uncertainty, particularly in view of the potential impact of the COVID-19, the effects of which are difficult to analyse and predict.

The Company will hold a conference call at 9:00 p.m. U.S. Eastern Time on March 15, 2021, (March 16, 2021 at 9:00 a.m. Beijing/Hong Kong time) to discuss its fourth quarter and fiscal year 2020 unaudited financial results and operating performance.

To participate in the call, please use the dial-in numbers and conference ID below:

A replay of the call will be available through March 23, 2021, by using the dial-in numbers and conference ID below:

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.ifeng.com.

To supplement the consolidated financial statements presented in accordance with the United States Generally Accepted Accounting Principles (“GAAP”), Phoenix New Media Limited uses non-GAAP gross profit, non-GAAP gross margin, non-GAAP income or loss from operations, non-GAAP operating margin, non-GAAP net income or loss attributable to Phoenix New Media Limited, non-GAAP net margin and non-GAAP net income or loss per diluted ADS, each of which is a non-GAAP financial measure. Non-GAAP gross profit is gross profit excluding share-based compensation. Non-GAAP gross margin is non-GAAP gross profit divided by total revenues. Non-GAAP income or loss from operations is income or loss from operations excluding share-based compensation and impairment of goodwill. Non-GAAP operating margin is non-GAAP income or loss from operations divided by total revenues. Non-GAAP net income or loss attributable to Phoenix New Media Limited is net income or loss attributable to Phoenix New Media Limited excluding share-based compensation, income or loss from equity method investments, net of impairments, gain on disposal of available-for-sale debt investments, changes in fair value of forward contract in relation to disposal of investments in Particle, impairment of goodwill, impairment of available-for-sale debt investments and changes in fair value of loan related to co-sale of Particle shares. Non-GAAP net margin is non-GAAP net income or loss attributable to Phoenix New Media Limited divided by total revenues. Non-GAAP net income or loss per diluted ADS is non-GAAP net income or loss attributable to Phoenix New Media Limited divided by weighted average number of diluted ADSs. The Company believes that separate analysis and exclusion of the aforementioned non-GAAP to GAAP reconciling items add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with the related GAAP financial measures to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that using these non-GAAP financial measures to evaluate its business allows both management and investors to assess the Company’s performance against its competitors and ultimately monitor its capacity to generate returns for investors. The Company also believes that these non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of items like share-based compensation, income or loss from equity method investments, net of impairments, which have been and will continue to be significant recurring items, and without the effect of gain on disposal of available-for-sale debt investments, changes in fair value of forward contract in relation to disposal of investments in Particle, impairment of goodwill, impairment of available-for-sale debt investments and changes in fair value of loan related to co-sale of Particle shares, which have been significant and one-time items. However, the use of these non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using these non-GAAP financial measures is that they do not include all items that impact the Company’s gross profit, income or loss from operations and net income or loss attributable to Phoenix New Media Limited for the period. In addition, because these non-GAAP financial measures are not calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider these non-GAAP financial measures in isolation from, or as an alternative to, the financial measures prepared in accordance with GAAP.

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.5250 to US$1.00, the noon buying rate in effect on December 31, 2020, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Phoenix New Media Limited (NYSE: FENG) is a leading new media company providing premium content on an integrated Internet platform, including PC and mobile, in China. Having originated from a leading global Chinese language TV network based in Hong Kong, Phoenix TV, the Company enables consumers to access professional news and other quality information and share user-generated content on the Internet through their PCs and mobile devices. Phoenix New Media's platform includes its PC channel, consisting of ifeng.com website, which comprises interest-based verticals and interactive services; its mobile channel, consisting of mobile news applications, mobile video application, digital reading applications and mobile Internet website; and its operations with the telecom operators that provides mobile value-added services.

This announcement contains forward−looking statements. These statements are 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” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Phoenix New Media’s strategic and operational plans, contain forward−looking statements. Phoenix New Media may also make written or oral forward−looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, 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 Phoenix New Media’s beliefs and expectations, are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, financial condition and results of operations; the expected growth of online and mobile advertising, online video and mobile paid services markets in China; the Company’s reliance on online and mobile advertising and MVAS for a majority of its total revenues; the Company’s expectations regarding demand for and market acceptance of its services; the Company’s expectations regarding maintaining and strengthening its relationships with advertisers, partners and customers; the Company’s investment plans and strategies, fluctuations in the Company’s quarterly operating results; the Company’s plans to enhance its user experience, infrastructure and services offerings; the Company’s reliance on mobile operators in China to provide most of its MVAS; changes by mobile operators in China to their policies for MVAS; competition in its industry in China; relevant government policies and regulations relating to the Company; and the effects of the COVID-19 on the economy in China in general and on the Company’s business in particular. Further information regarding these and other risks is included in the Company’s filings with the SEC, including its registration statement on Form F−1, as amended, and its annual reports on Form 20−F. All information provided in this press release and in the attachments is as of the date of this press release, and Phoenix New Media does not undertake any obligation to update any forward−looking statement, except as required under applicable law.

	December 31,		December 31,			December 31,
	2019		2020			2020
	RMB		RMB			US$
	Audited		Unaudited			Unaudited
ASSETS
Current assets:
Cash and cash equivalents		310,876		357,796			54,835
Term deposits and short term investments		1,271,889		1,280,033			196,174
Restricted cash		66,234		31,039			4,757
Accounts receivable, net		609,627		675,616			103,543
Amounts due from related parties		56,653		32,587			4,994
Prepayment and other current assets		57,391		42,846			6,565
Assets held for sale		184,032		-			-
Total current assets		2,556,702		2,419,917			370,868
Non-current assets:
Property and equipment, net		97,357		62,649			9,601
Intangible assets, net		13,633		12,396			1,900
Goodwill		22,786		-			-
Available-for-sale debt investments		2,014,537		36,662			5,619
Equity investments, net		13,237		94,821			14,532
Deferred tax assets		73,688		86,867			13,313
Operating lease right-of- use assets, net		84,550		49,487			7,584
Other non-current assets		19,859		9,753			1,495
Assets held for sale		429,468		-			-
Total non-current assets		2,769,115		352,635			54,044
Total assets		5,325,817		2,772,552			424,912
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		249,018		221,203			33,901
Amounts due to related parties		34,155		34,420			5,275
Advances from customers		46,172		38,835			5,952
Taxes payable		287,765		402,610			61,703
Salary and welfare payable		157,784		156,599			24,000
Deposits in relation to future disposal of investment in Particle		355,212		-			-
Accrued expenses and other current liabilities		274,122		172,376			26,417
Operating lease liabilities		37,874		36,370			5,574
Liabilities held for sale		63,341		-			-
Total current liabilities		1,505,443		1,062,413			162,822
Non-current liabilities:
Deferred tax liabilities		192,142		1,312			201
Long-term liabilities		27,612		28,182			4,319
Operating lease liabilities		49,929		16,672			2,555
Liabilities held for sale		5,676		-			-
Total non-current liabilities		275,359		46,166			7,075
Total liabilities		1,780,802		1,108,579			169,897
Shareholders’ equity:
Phoenix New Media Limited shareholders' equity:
Class A ordinary shares		17,499		17,499			2,682
Class B ordinary shares		22,053		22,053			3,380
Additional paid-in capital		1,611,484		1,620,580			248,365
Statutory reserves		88,583		92,017			14,102
Retained earnings		186,324		(88,191	)		(13,516	)
Accumulated other comprehensive income		1,405,808		(28,214	)		(4,324	)
Total Phoenix New Media Limited shareholders’ equity		3,331,751		1,635,744			250,689
Noncontrolling interests		213,264		28,229			4,326
Total shareholders' equity		3,545,015		1,663,973			255,015
Total liabilities and shareholders’ equity		5,325,817		2,772,552			424,912

	Three Months Ended												Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,			December 31,			December 31,
	2019			2020			2020			2020			2019			2020			2020
	RMB			RMB			RMB			US$			RMB			RMB			US$
Revenues:
Net advertising revenues		363,114			281,308			336,653			51,594			1,194,761			1,113,017			170,577
Paid service revenues		37,259			21,681			25,546			3,915			133,020			95,828			14,686
Total revenues		400,373			302,989			362,199			55,509			1,327,781			1,208,845			185,263
Cost of revenues		(188,819	)		(150,036	)		(179,224	)		(27,467	)		(683,330	)		(559,286	)		(85,714	)
Gross profit		211,554			152,953			182,975			28,042			644,451			649,559			99,549
Operating expenses:
Sales and marketing expenses		(160,581	)		(64,899	)		(75,660	)		(11,595	)		(541,772	)		(279,429	)		(42,824	)
General and administrative expenses		(103,241	)		(74,782	)		(70,716	)		(10,838	)		(242,047	)		(277,931	)		(42,595	)
Technology and product development expenses		(55,816	)		(41,706	)		(42,617	)		(6,531	)		(216,741	)		(171,989	)		(26,358	)
Impairment of goodwill		-			-			(22,786	)		(3,492	)		-			(22,786	)		(3,492	)
Total operating expenses		(319,638	)		(181,387	)		(211,779	)		(32,456	)		(1,000,560	)		(752,135	)		(115,269	)
Loss from operations		(108,084	)		(28,434	)		(28,804	)		(4,414	)		(356,109	)		(102,576	)		(15,720	)
Other income/(loss):
Interest income, net		6,673			14,792			9,309			1,427			22,721			35,421			5,429
Foreign currency exchange gain		1,003			3,218			3,921			601			7,892			5,494			842
Income/(loss) from equity method investments		-			6,013			(179	)		(27	)		(3,447	)		5,598			858
Impairment of available-for-sale debt investments		-			(2,000	)		-			-			-			(2,000	)		(307	)
Gain on disposal of available-for-sale debt investments*		1,001,181			-			477,254			73,142			1,001,181			477,254			73,142
Changes in fair value of loan related to co-sale of Particle shares		-			(4,486	)		-			-			-			(24,535	)		(3,760	)
Changes in fair value of forward contract in relation to disposal of investments in Particle		4,441			-			-			-			4,441			16,085			2,465
Others, net		3,351			13,360			8,770			1,343			15,031			35,881			5,499
Income from continuing operations before income taxes		908,565			2,463			470,271			72,072			691,710			446,622			68,448
Income tax expense		(3,349	)		(1,725	)		(14,793	)		(2,267	)		(21,950	)		(18,977	)		(2,909	)
Net income from continuing operations		905,216			738			455,478			69,805			669,760			427,645			65,539
Net income/(loss) from discontinued operations, net of income taxes		15,360			-			-			-			54,242			(62,366	)		(9,558	)
Net income		920,576			738			455,478			69,805			724,002			365,279			55,981
Net (income)/loss attributable to noncontrolling interests:
Net (income) from continuing operations attributable to noncontrolling interests		(2,692	)		(1,687	)		(700	)		(107	)		(5,564	)		(9,669	)		(1,482	)
Net (income)/loss from discontinued operations attributable to noncontrolling interests		(6,130	)		-			-			-			9,391			24,759			3,795
Net (income)/loss attributable to noncontrolling interests		(8,822	)		(1,687	)		(700	)		(107	)		3,827			15,090			2,313
Net income/(loss) attributable to Phoenix New Media Limited:
Net income/(loss) from continuing operations attributable to Phoenix New Media Limited		902,524			(949	)		454,778			69,698			664,196			417,976			64,058
Net income/(loss) from discontinued operations attributable to Phoenix New Media Limited		9,230			-			-			-			63,633			(37,607	)		(5,764	)
Net income/(loss) attributable to Phoenix New Media Limited		911,754			(949	)		454,778			69,698			727,829			380,369			58,294
Net income		920,576			738			455,478			69,805			724,002			365,279			55,981
Other comprehensive income/(loss), net of tax: fair value remeasurement for available-for-sale investments		191,511			1,598			(2,736	)		(419	)		1,188,762			(887,248	)		(135,977	)
Other comprehensive loss, net of tax: reclassification adjustment for disposal of available-for-sale debt investments		(1,008,795	)		-			(491,197	)		(75,279	)		(1,008,795	)		(491,197	)		(75,279	)
Other comprehensive (loss)/income, net of tax: foreign currency translation adjustment		(31,312	)		(43,077	)		(41,326	)		(6,333	)		37,483			(55,577	)		(8,517	)
Comprehensive income/(loss)		71,980			(40,741	)		(79,781	)		(12,226	)		941,452			(1,068,743	)		(163,792	)
Comprehensive (income)/loss attributable to noncontrolling interests		(8,822	)		(1,687	)		(700	)		(107	)		3,827			15,090			2,313

Comprehensive income/(loss) attributable to Phoenix New Media Limited	63,158	(42,428	)	(80,481	)	(12,333	)	945,279	(1,053,653	)	(161,479	)
Basic net income/(loss) per Class A and Class B ordinary share:
-Continuing operations	1.55	-		0.78		0.12		1.14	0.72		0.11
-Discontinued operations	0.02	-		-		-		0.11	(0.07	)	(0.01	)
Basic net income/(loss) per Class A and Class B ordinary share	1.57	-		0.78		0.12		1.25	0.65		0.10
Diluted net income/(loss) per Class A and Class B ordinary share:
-Continuing operations	1.55	-		0.78		0.12		1.14	0.72		0.11
-Discontinued operations	0.02	-		-		-		0.11	(0.07	)	(0.01	)
Diluted net income/(loss) per Class A and Class B ordinary share	1.57	-		0.78		0.12		1.25	0.65		0.10
Basic income/(loss) per ADS (1 ADS represents 8 Class A ordinary shares):
-Continuing operations	12.40	(0.01	)	6.25		0.96		9.13	5.74		0.88
-Discontinued operations	0.13	-		-		-		0.87	(0.51	)	(0.08	)
Basic net income/(loss) per ADS (1 ADS represents 8 Class A ordinary shares)	12.53	(0.01	)	6.25		0.96		10.00	5.23		0.80
Diluted net income/(loss) per ADS (1 ADS represents 8 Class A ordinary shares)：
-Continuing operations	12.40	(0.01	)	6.25		0.96		9.13	5.74		0.88
-Discontinued operations	0.13	-		-		-		0.87	(0.51	)	(0.08	)
Diluted net income/(loss) per ADS (1 ADS represents 8 Class A ordinary shares)	12.53	(0.01	)	6.25		0.96		10.00	5.23		0.80
Weighted average number of Class A and Class B ordinary shares used in computing net income/(loss) per share:
Basic	582,324,325	582,324,325		582,324,325		582,324,325		582,275,800	582,324,325		582,324,325
Diluted	582,324,325	582,324,325		582,324,325		582,324,325		582,275,800	582,324,325		582,324,325

* The gain on disposal of available-for-sale debt investments had been net of accrued PRC withholding tax, which was calculated based on 10% of the gain recognized from the disposal of available-for-sale debt investments in Particle, with any relevant tax adjustments if applicable, as regulated by the Public Notice on Several Issues regarding Enterprise Income Tax for Indirect Property Transfer by Non-resident Enterprises, or SAT Circular 7, issued on February 3, 2015, and the Public Notice Regarding Issues Concerning the Withholding of Non-resident Enterprise Income Tax at Source, or SAT Public Notice 37, issued on October 17, 2017. The accrued withholding tax may vary with the actual withholding tax to be paid in the future. The difference between the currently calculated withholding tax and the actual withholding tax to be paid will be recognized as gain or loss on disposal of available-for-sale debt investments in the period when the Company actually settles the withholding tax with the tax authorities in PRC.

	Three Months Ended								Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,		December 31,		December 31,
	2019		2020		2020		2020		2019		2020		2020
	RMB		RMB		RMB		US$		RMB		RMB		US$
	Unaudited		Unaudited		Unaudited		Unaudited		Audited*		Unaudited		Unaudited
Revenues:
Net advertising service		363,114		281,308		336,653		51,594		1,194,761		1,113,017		170,577
Paid services		37,259		21,681		25,546		3,915		133,020		95,828		14,686
Total revenues		400,373		302,989		362,199		55,509		1,327,781		1,208,845		185,263
Cost of revenues
Net advertising service		181,057		143,463		165,581		25,376		623,787		523,813		80,278
Paid services		7,762		6,573		13,643		2,091		59,543		35,473		5,436
Total cost of revenues		188,819		150,036		179,224		27,467		683,330		559,286		85,714
Gross profit
Net advertising service		182,057		137,845		171,072		26,218		570,974		589,204		90,299
Paid services		29,497		15,108		11,903		1,824		73,477		60,355		9,250
Total gross profit		211,554		152,953		182,975		28,042		644,451		649,559		99,549

Reconciliations of Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures

	Three Months Ended December 31, 2019											Three Months Ended September 30, 2020											Three Months Ended December 31, 2020
	GAAP			Non-GAAP Adjustments					Non- GAAP			GAAP			Non-GAAP Adjustments					Non- GAAP			GAAP			Non-GAAP Adjustments					Non- GAAP
	RMB			RMB					RMB			RMB			RMB					RMB			RMB			RMB					RMB
	Unaudited			Unaudited					Unaudited			Unaudited			Unaudited					Unaudited			Unaudited			Unaudited					Unaudited
Gross profit		211,554			1,074		(1	)		212,628			152,953			401		(1	)		153,354			182,975			229		(1	)		183,204
Gross margin		52.8	%							53.1	%		50.5	%							50.6	%		50.5	%							50.6	%
					3,928		(1	)								1,758		(1	)								2,734		(1	)
					-		(2	)								-		(2	)								22,786		(2	)
Loss from operations		(108,084	)		3,928					(104,156	)		(28,434	)		1,758					(26,676	)		(28,804	)		25,520					(3,284	)
Operating margin		(27.0	)%							(26.0	)%		(9.4	)%							(8.8	)%		(8.0	)%							(0.9	)%
					3,928		(1	)								1,758		(1	)								2,734		(1	)
					-		(2	)								-		(2	)								22,786		(2	)
					-		(3	)								(6,013	)	(3	)								179		(3	)
					(1,143,755	)	(4	)								-		(4	)								(573,860	)	(4	)
					(4,441	)	(5	)								-		(5	)								-		(5	)
					-		(6	)								4,486		(6	)								-		(6	)
					-		(7	)								2,000		(7	)								-		(7	)
					-		(8	)								-		(8	)								(11,393	)	(8	)
					142,574		(9	)								-		(9	)								96,606		(9	)
Net income/(loss) attributable to Phoenix New Media Limited		902,524			(1,001,694	)				(99,170	)		(949	)		2,231					1,282			454,778			(462,948	)				(8,170	)
Net margin		225.4	%							(24.8	)%		(0.3	)%							0.4	%		125.6	%							(2.3	)%
Net income/(loss) per ADS-diluted		12.40								(1.36	)		(0.01	)							0.02			6.25								(0.11	)
Weighted average number of ADSs used in computing diluted net income/(loss) per ADS		72,790,541								72,790,541			72,790,541								72,790,541			72,790,541								72,790,541

(5) Changes in fair value of forward contract in relation to disposal of investments in Particle

(9) Accrued withholding taxes of item (4). Other non-GAAP to GAAP reconciling items have no income tax effect.

Reconciliations of Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures
(Amounts in thousands, except for number of ADSs and per ADS data)

	Twelve Months Ended December 31, 2019											Twelve Months Ended December 31, 2020

	GAAP			Non-GAAP Adjustments					Non- GAAP			GAAP			Non-GAAP Adjustments					Non- GAAP
	RMB			RMB					RMB			RMB			RMB					RMB
	Unaudited			Unaudited					Unaudited			Unaudited			Unaudited					Unaudited
Gross profit		644,451			5,173		(1	)		649,624			649,559			2,613		(1	)		652,172
Gross margin		48.5	%							48.9	%		53.7	%							54.0	%
					11,859		(1	)								9,383		(1	)
					-		(2	)								22,786		(2	)
Loss from operations		(356,109	)		11,859					(344,250	)		(102,576	)		32,169					(70,407	)
Operating margin		(26.8	)%							(25.9	)%		(8.5	)%							(5.8	)%
					11,859		(1	)								9,383		(1	)
					-		(2	)								22,786		(2	)
					3,447		(3	)								(5,598	)	(3	)
					(1,143,755	)	(4	)								(573,860	)	(4	)
					(4,441	)	(5	)								(16,085	)	(5	)
					-		(6	)								24,535		(6	)
					-		(7	)								2,000		(7	)
					-		(8	)								(11,393	)	(8	)
					142,574		(9	)								96,606		(9	)
Net income/(loss) attributable to Phoenix New Media Limited		664,196			(990,316	)				(326,120	)		417,976			(451,626	)				(33,650	)
Net margin		50.0	%							(24.6	)%		34.6	%							(2.8	)%
Net income/(loss) per ADS-diluted		9.13								(4.48	)		5.74								(0.46	)
Weighted average number of ADSs used in computing diluted net income/(loss) per ADS		72,784,475								72,784,475			72,790,541								72,790,541

(5) Changes in fair value of forward contract in relation to disposal of investments in Particle

(9) Accrued withholding taxes of item (4). Other non-GAAP to GAAP reconciling items have no income tax effect.