EX-99.1 2 v370146_ex99-1.htm EXHIBIT 99.1

 

58.com Reports Fourth Quarter And Fiscal Year 2013 Unaudited Financial Results

 

BEIJING, February 28, 2014 -- 58.com Inc. (NYSE: WUBA) (“58.com” or the “Company”), China’s largest online marketplace serving local merchants and consumers, today reported its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2013.

 

Fourth Quarter 2013 Financial Highlights

 

·Total revenues were US$45.3 million in the fourth quarter of 2013, an 83.2% increase from the same period last year; exceeding guidance of US$41 to US$43 million.

 

·Gross margin was 95.4% compared with 89.1% in the same quarter of 2012.

 

·Net income was US$10.8 million, compared with a net loss of US$4.8 million in the same quarter of 2012.

 

·Basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.14 and US$0.13. One ADS represents two Class A ordinary shares.

 

·Non-GAAP net income was US$11.7 million, compared with non-GAAP net loss of US$4.5 million in the same quarter of 2012.

 

Fiscal Year 2013 Financial Highlights

 

·Total revenues were US$145.7 million in fiscal year 2013, a 67.3% increase from the fiscal year 2012.

 

·Gross margin was 94.2% compared with 88.1% in fiscal year 2012.

 

·Net income was US$19.6 million, compared with a net loss of US$30.4 million in fiscal year 2012.

 

·Basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.29 and US$0.27.

 

·Non-GAAP net income was US$22.4 million, compared with non-GAAP net loss of US$28.7 million in fiscal year 2012.

 

Shares Outstanding

 

As of December 31, 2013, the Company had a total of 158,876,693 ordinary shares, equivalent to 79,438,347 ADSs. One ADS represents two ordinary shares. The Company used weighted average ADS or ordinary shares to calculate earnings per ADS and earnings per share.

 

Management Comments

 

“I am pleased to report a record setting quarter as we finished 2013 on a strong footing,” commented Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com. “Traffic continued to grow during the quarter, particularly mobile. We continued to grow our revenues as we approach approximately 400,000 paying merchant members. We will continue to invest in R&D, marketing, and our mobile offerings to further penetrate into China’s large local services market and reinforce our leadership position.”

 

 
 

 

“Our financial results continued to improve as we set a new record for quarterly revenues that exceeded the high end of our earlier guidance for the quarter,” said Mr. Hao Zhou, Chief Financial Officer of 58.com. “Revenues increased 83.2% from the same quarter last year to US$45.3 million. Excluding revenues generated from other services which are non-core services that we have been scaling back since mid-2012, revenues from our core businesses continue to grow at around 90% throughout the four quarters of 2013 as compared with the same period of 2012. Revenues from our online marketing services continued to grow at a faster pace than our membership revenues. This demonstrates the effectiveness of our solid monetization strategy where efficiency increases as our business further scales up.”

 

Fourth Quarter 2013 Financial Results

 

Revenues

 

Total revenues were US$45.3 million, representing an increase of 83.2% from US$24.7 million in the same quarter of 2012.

 

Membership revenues were US$26.0 million, an increase of 71.4% from US$15.2 million in the same quarter of 2012. The increase was primarily driven by the increase in the number of paying merchant members. The number of paying merchant members during the fourth quarter of 2013 was approximately 393,000, an increase of 72.4% from 228,000 in the same quarter of 2012.

 

Online marketing services revenues were US$18.9 million, an increase of 115.6% from US$8.8 million in the same quarter of 2012. The increase in online marketing services revenues was primarily attributable to the bidding services and priority listings.

 

Revenues from other services, which were primarily related to group buying services, were US$0.3 million, a decrease of 55.6% from US$0.8 million in the same quarter of 2012. The Company began significantly scaling back its group buying services in mid-2012.

 

Cost of Revenues

 

Cost of revenues was US$2.1 million, a decrease of 23.0% from US$2.7 million during the same quarter of 2012. The year-over-year decline in cost of revenues was primarily driven by the decrease in business tax. Effective on January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation launched the Value Added Tax (‘‘VAT’’) Pilot Program for certain industries in certain regions. Subsidiaries in different regions were affected at different times as the program was rolled out. Most of the Company’s entities were subject to the VAT Pilot Program as of December 31, 2013. The Company’s revenues from these cities became subject to the VAT instead of business tax following the implementation of the Pilot Program. Business tax is included in cost of revenues and revenues, while VAT is netted against revenues.

 

 
 

 

Gross Profit and Gross Margin

 

Gross profit was US$43.2 million, an increase of 96.2% from US$22.0 million during the same quarter of 2012.

 

Gross margin was 95.4%, compared with 89.1% during the same quarter of 2012.

 

Operating Expenses

 

Operating expenses were US$35.2 million, representing an increase of 30.8% from US$26.9 million in the same quarter of 2012.

 

Sales and marketing expenses in the fourth quarter of 2013 were US$24.2 million, an increase of 34.7% from US$18.0 million in the same quarter of 2012. Within Sales and marketing expenses, the advertising expenses were US$6.6 million and US$4.4 million in the fourth quarter of 2013 and 2012, respectively. The increase in other sales and marketing expenses was primarily driven by increased salaries, benefits and commissions for the Company’s sales and customer service teams.

 

Research and development expenses during the fourth quarter of 2013 were US$6.9 million, an increase of 17.1% year-over-year from US$5.9 million in the same quarter of 2012. The increase was primarily due to increased personnel costs as a result of hiring additional research and development personnel for the development of new features and services.

 

General and administrative expenses in the fourth quarter of 2013 were US$4.1 million, an increase of 33.9% from US$3.1 million in the same quarter of 2012. The increase was primarily driven by share-based compensation cost as well as other various administrative related expenses.

 

Operating Income

 

Operating income was US$8.0 million in the fourth quarter of 2013 compared with an operating loss of US$4.9 million in the same quarter of 2012. Operating margin was 17.6% in the fourth quarter of 2013, compared with negative 19.9% in the same quarter of 2012.

 

Non-GAAP operating income was US$8.9 million in the fourth quarter of 2013 compared with non-GAAP operating loss of US$4.6 million in the same quarter of 2012. Non-GAAP operating margin was 19.7% in the fourth quarter of 2013 compared with non-GAAP operating margin of negative 18.7% in the same quarter of 2012.

 

Net Income

 

Net income was US$10.8 million in the fourth quarter of 2013, compared with a net loss of US$4.8 million in the same quarter of 2012. Net margin was 23.8% in the fourth quarter of 2013, compared with negative 19.4% in the same quarter of 2012.

 

Non-GAAP net income was US$11.7 million in the fourth quarter of 2013, compared with non-GAAP net loss of US$4.5 million in the same quarter of 2012. Non-GAAP net margin was 25.9% in the fourth quarter of 2013, compared with non-GAAP net margin of negative 18.2% in the same quarter of 2012.

 

 
 

 

Basic and Diluted Earnings per ADS

 

Basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.14 and US$0.13 respectively, compared with basic and diluted loss per ADS attributable to ordinary shareholders of US$0.34 during the same quarter of 2012.

 

Fiscal Year 2013 Financial Results

 

Revenues

 

Total revenues were US$145.7 million in fiscal year 2013, representing an increase of 67.3% from US$87.1 million in fiscal year 2012.

 

Membership revenues were US$85.7 million in fiscal year 2013, an increase of 78.9% from US$47.9 million in fiscal year 2012. The increase was primarily driven by the increase in the number of paying merchant members. The average quarterly paying merchant members during fiscal year 2013 was approximately 323,000, an increase of 72.7% from 187,000 in fiscal year 2012.

 

Online marketing services revenues were US$58.5 million in fiscal year 2013, an increase of 105.0% from US$28.5 million in fiscal year 2012. The increase in online marketing services revenues was primarily attributable to the bidding services and priority listings.

 

Revenues from other services, which were primarily related to group buying services were US$1.6 million in fiscal year 2013, a decrease of 85.4% from US$10.7 million in fiscal year 2012. The Company began significantly scaling back its group buying services in mid-2012.

 

Cost of Revenues

 

Cost of revenues was US$8.5 million in fiscal year 2013, a decrease of 18.6% from US$10.4 million during fiscal year 2012. The year-over-year decline in cost of revenues was primarily driven by the decrease in business tax. Effective on January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation launched the VAT Pilot Program for certain industries in certain regions. Subsidiaries in different regions were affected at different times as the program was rolled out. Most of the Company’s entities were subject to the VAT as of December 31, 2013. The Company’s revenues from these cities became subject to the VAT instead of business tax following the implementation of the Pilot Program. Business tax is included in cost of revenues and revenues, while VAT is netted against revenues.

 

 
 

 

Gross Profit and Gross Margin

 

Gross profit was US$137.3 million in fiscal year 2013, an increase of 78.9% from US$76.7 million during fiscal year 2012.

 

Gross margin was 94.2% in fiscal year 2013, as compared to 88.1% during fiscal year 2012.

 

Operating Expenses

 

Operating expenses were US$122.7 million in fiscal year 2013, representing an increase of 13.6% from US$108.0 million in fiscal year 2012.

 

Sales and marketing expenses in fiscal year 2013 were US$84.5 million, an increase of 10.6% from US$76.4 million in fiscal year 2012. The advertising expenses were US$22.7 million and US$25.1 million in fiscal year 2013 and 2012, respectively. The decrease in advertising expenses was a result of optimizing our advertising strategies as well as our increasing brand equity. The increase in other sales and marketing expenses was primarily driven by increased salaries, benefits and commissions for the Company’s sales and customer services teams.

 

Research and development expenses during fiscal year 2013 were US$25.1 million, an increase of 36.1% year-over-year from US$18.5 million in fiscal year 2012. The increase was primarily due to increased salaries and employee benefits as a result of hiring additional research and development personnel for the development of new features and services.

 

General and administrative expenses in fiscal year 2013 were US$13.0 million, a slight decrease compared with US$13.1 million in fiscal year 2012 due to a decrease in bad debt expense related to group buying business, offset by an increase in personnel costs, including share-based compensations expenses.

 

Operating Income

 

Operating income was US$14.6 million in fiscal year 2013 compared with an operating loss of US$31.3 million in fiscal year 2012. Operating margin was 10.0% in fiscal year 2013, as compared to negative 35.9% in fiscal year 2012.

 

Non-GAAP operating income was US$17.5 million in fiscal year 2013, compared with non-GAAP operating loss of US$29.6 million in fiscal year 2012. Non-GAAP operating margin was 12.0% in fiscal year 2013 compared with non-GAAP operating margin of negative 34.0% in fiscal year 2012.

 

Net Income

 

Net income was US$19.6 million in fiscal year 2013, as compared to a net loss of US$30.4 million in fiscal year 2012. Net margin was 13.4% in fiscal year 2013, compared with negative 34.9% in fiscal year 2012.

 

 
 

 

Non-GAAP net income was US$22.4 million in fiscal year 2013, compared with non-GAAP net loss of US$28.7 million in fiscal year 2012. Non-GAAP net margin was 15.4% in fiscal year 2013, compared with non-GAAP net margin of negative 33.0% in fiscal year 2012.

 

Basic and Diluted Earnings per ADS

 

Basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.29 and US$0.27 respectively in fiscal year 2013, compared with basic and diluted loss per ADS attributable to ordinary shareholders of US$1.84 during fiscal year 2012.

 

Cash, Cash Equivalents and short-term investments

 

As of December 31, 2013, the Company had cash, cash equivalents, term deposits and short-term investment of US$311.1 million.

 

Business Outlook

 

Based on the Company’s current operations, total revenues for the first quarter of 2014 are expected to be between US$43 million and US$45 million, representing a year-over-year increase of 81% to 90%. 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 operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP net income margin by excluding share-based compensation expenses from operating profit and net income attributable to the Company’s shareholders, respectively.  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 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 in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company’s performance.  These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP.  Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.

 

 
 

 

Conference Call

 

58.com’s management will host an earnings conference call on Friday, February 28, 2014 at 8:00 a.m. U.S. Eastern Standard Time (9:00 p.m. Beijing / Hong Kong the same day).

 

Dial-in details for the earnings conference call are as follows:

 

International:   +1-412-317-0790
     
U.S. Toll Free:   +1-877-870-4263
     
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 9:00 a.m. U.S. Eastern Standard Time, March 7, 2014. The dial-in details for the replay are as follows:

 

International:   +1-412-317-0088
     
U.S. Toll Free:   +1-877-344-7529
     
Passcode:   10041589

 

 
 

 

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. For more information on 58.com, please visit http://www.58.com.

 

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

 

(U.S. dollars in thousands, except share data and per share data, or otherwise noted)

 

   As of 
   December 31,
2012		   December 31,
2013		 
         
ASSETS          
Current assets:          
Cash and cash equivalents    10,669    60,494 
Term deposits    —    152,190 
Short-term investments   24,978    98,411 
Accounts receivable    3,196    4,292 
Amounts due from related parties    2,158    127 
Prepayment and other current assets    6,296    8,983 
Total current assets    47,297    324,497 
Non-current assets:          
Property and equipment, net    7,938    6,427 
Intangible asset, net   75    65 
Long-term prepaid expenses    1,146    2,352 
Total non-current assets    9,159    8,844 
Total assets    56,456    333,341 
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY/(DEFICIT)          
Current liabilities:          
Accounts payable    11,139    8,309 
Deferred revenues    28,955    55,099 
Customer advances and deposits    11,040    21,369 
Taxes payable    1,877    2,264 
Salary and welfare payable    12,413    17,962 
Amounts due to related parties    —    6 
Accrued expenses and other current liabilities    3,579    8,049 
Total current liabilities    69,003    113,058 
Total liabilities    69,003    113,058 
Commitments and contingencies          
Mezzanine equity          
Series A Preference Shares    9,866    — 
Series A-1 Preference Shares    12,435    — 
Series B Preference Shares    55,509    — 
Series B-1 Preference Shares    61,707    — 
Total mezzanine equity    139,517    — 
Shareholders’ equity/(deficit):          
Ordinary shares   1    2 
Additional paid-in capital    —    359,276 
Accumulated (deficit)    (152,059)   (138,419)
Accumulated other comprehensive loss    (6)   (576)
Total shareholders’ equity/(deficit)    (152,064)   220,283 
Total liabilities, mezzanine equity and shareholders’ equity    56,456    333,341 

 

 
 

 

58.com Inc.

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(U.S. dollars in thousands, except share data and per share data, or otherwise noted)

 

   For the Three Months Ended   For the Fiscal Year Ended 
   December 31,
2012		   September 30,
2013		   December 31,
2013		   December 31,
2012		  

December 31,

2013

 
                     
Revenues:                         
Membership    15,185    24,231    26,033    47,919    85,725 
Online Marketing Services    8,773    17,114    18,913    28,509    58,457 
Other Services    752    279    334    10,694    1,565 
Total revenues    24,710    41,624    45,280    87,122    145,747 
Cost of revenues(1)    2,693    2,303    2,074    10,406    8,471 
Gross profit    22,017    39,321    43,206    76,716    137,276 
Operating expenses(1):                         
Sales and marketing expenses    18,001    22,198    24,248    76,422    84,534 
Research and development expenses    5,856    6,427    6,859    18,464    25,138 
General and administrative expenses    3,070    3,411    4,110    13,088    12,983 
Total operating expenses    26,927    32,036    35,217    107,974    122,655 
(Loss)/ Income from operations    (4,910)   7,285    7,989    (31,258)   14,621 
Other (expenses)/income:                         
Interest income    32    5    552    233    603 
Investment and other (loss)/income, net    (1,138)   617    1,462    (355)   2,728 
Foreign currency exchange income/(loss), net    145    63    327    (62)   548 
Others, net    1,088    520    452    1,041    1,057 
(Loss)/Income before tax    (4,783)   8,490    10,782    (30,401)   19,557 
Income taxes benefits/(expenses)    —    —    —    —    — 
Net (loss)/income    (4,783)   8,490    10,782    (30,401)   19,557 
Accretions and income attributable to preference shareholders    (2,653)   (6,031)   (2,402)   (10,233)   (10,364)
Net (loss)/income attributable to ordinary shareholders    (7,436)   2,459    8,380    (40,634)   9,193 
Net(loss)/income    (4,783)   8,490    10,782    (30,401)   19,557 
Foreign currency translation adjustment, net of nil tax    (221)   73    (132)   (48)   (570)
Comprehensive (loss)/income    (5,004)   8,563    10,650    (30,449)   18,987 
Net (loss)/income per ordinary share attributable to ordinary shareholders - basic    (0.17)   0.06    0.07    (0.92)   0.14 
Net (loss)/income per ordinary share attributable to ordinary shareholders - diluted    (0.17)   0.05    0.06    (0.92)   0.13 
Net (loss)/income per ADS attributable to ordinary shareholders - basic    (0.34)   0.11    0.14    (1.84)   0.29 
Net (loss)/income per ADS attributable to ordinary shareholders - diluted    (0.34)   0.10    0.13    (1.84)   0.27 
Weighted average number of ordinary shares used in computing basic earnings per share    44,245,388    44,245,388    121,496,920    44,245,388    63,717,007 
Weighted average number of ordinary shares used in computing diluted earnings per share    44,245,388    49,516,222    129,709,221    44,245,388    69,159,524 

Note:

(1)Share-based compensation expense was allocated in cost of revenues and operating expenses as follows:

 

Cost of revenues    5    10    2    30    36 
Sales and marketing expenses    35    152    75    270    445 
Research and development expenses    80    318    252    489    996 
General and administrative expenses    169    323    601    882    1,388 
 
 

 

58.com Inc.

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(U.S. dollars in thousands, or otherwise noted)

 

   For the Three Months Ended   For the Fiscal Year Ended  
   December 31,
2012		   September 30,
2013		   December 31,
2013		   December 31,
2012		   December 31,
2013		 
                     
Cash flows from operating activities:                         
Net (loss)/income    (4,783)   8,490    10,782    (30,401)   19,557 
Adjustments to reconcile net (loss)/income to net cash (used in) provided by operating activities:                         
Share-based compensation expenses    289    803    930    1,671    2,865 
Depreciation and amortization expenses    1,216    1,194    1,157    3,879    4,657 
Investment loss    1,265    —    —    1,000    — 
Loss on disposal of property and equipment    1    —    —    67    — 
Foreign currency exchange loss/(income), net    (145)   (63)   (327)   62    (548)
Changes in operating assets and liabilities:                         
Accounts receivable    502    (748)   361    (521)   (1,097)
Prepayment and other assets    1,144    (4)   (4,027)   1,356    (4,349)
Amounts due from related parties    (74)   (19)   206    (432)   2,031 
Accounts payable    (1,787)   617    (1,124)   (9,129)   (2,647)
Deferred revenues    2,308    7,192    8,459    13,555    26,145 
Customer advances and deposits    2,550    2,749    4,485    7,227    10,329 
Salary and welfare payable    2,000    1,977    2,723    4,194    5,549 
Taxes payable    92    235    177    780    387 
Amounts due to related parties    1    —    (5)   (10)   5 
Accrued expenses and other current liabilities    1053    409    1,777    1,974    3,420 
Net cash (used in)/provided by operating activities    5,632    22,832    25,574    (4,728)   66,304 
                          
Cash flows from investing activities:                         
Purchase of property and equipment    (1,759)   (1,324)   (996)   (5,227)   (4,177)
Purchase of intangible assets    —    —    —    (28)   — 
Placements of term deposits    —    —    (152,190)   —    (152,190)
Purchase of short-term investment    (47,784)   (100,940)   (160,909)   (212,753)   (397,266)
Proceeds from maturity of short-term investment    43,949    78,873    127,695    190,855    323,587 
Net cash used in investing activities    (5,594)   (23,391)   (186,400)   (27,153)   (230,046)
                          
Cash flows from financing activities:                         
Proceeds from exercise of stock options    184    267    —    253    557 
Proceeds from shares issued in initial public offering    —    —    214,954    —    214,954 
Payment for listing expenses    —    —    (2,168)   —    (2,168)
Net cash provided by financing activities    184    267    212,786    253    213,343 
                          
Effect of exchange rate changes on cash and cash equivalents    72    29    60    (14)   224 
Net increase/(decrease) in cash and cash equivalents    294    (263)   52,020    (31,642)   49,825 
Cash and cash equivalents at the beginning of the period    10,375    8,737    8,474    42,311    10,669 
Cash and cash equivalents at the end of the period    10,669    8,474    60,494    10,669    60,494 

 

 
 

 

 

58.com Inc.

 

Reconciliation of GAAP and Non-GAAP Results

 

(U.S. dollars in thousands, or otherwise noted)

 

   For the Three Months Ended   For the Fiscal Year Ended 
   December 31,
2012		   September 30,
2013		   December 31,
2013		   December 31,
2012		   December 31,
2013		 
                     
GAAP operating (loss)/income    (4,910)   7,285    7,989    (31,258)   14,621 
Share based compensation expenses    289    803    930    1,671    2,865 
Non-GAAP operating (loss)/income    (4,621)   8,088    8,919    (29,587)   17,486 
                          
GAAP net (loss)/income    (4,783)   8,490    10,782    (30,401)   19,557 
Share based compensation expenses    289    803    930    1,671    2,865 
Non-GAAP net (loss)/income    (4,494)   9,293    11,712    (28,730)   22,422 
                          
GAAP operating margin    (19.9)%   17.5%   17.6%   (35.9)%   10.0%
Share based compensation expenses    1.2%   1.9%   2.1%   1.9%   2.0%
Non-GAAP operating margin    (18.7)%   19.4%   19.7%   (34.0)%   12.0%
                          
GAAP net margin    (19.4)%   20.4%   23.8%   (34.9)%   13.4%
Share based compensation expenses    1.2%   1.9%   2.1%   1.9%   2.0%
Non-GAAP net margin    (18.2)%   22.3%   25.9%   (33.0)%   15.4%