EX-99.1 2 v403955_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

58.com Reports Fourth Quarter And Fiscal Year 2014 Unaudited Financial Results

 

BEIJING, March 8, 2015 -- 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, 2014.

 

Fourth Quarter 2014 Financial Highlights

 

·Total revenues were US$80.2 million, a 77.2% increase from the same period last year; exceeding guidance of US$74.5 to US$77.0 million.

 

·Gross margin was 94.3%, compared with 95.4% during the same quarter of 2013.

 

·Net income was US$3.2 million, a 70.2% decrease compared with US$10.8 million in the same period of last year.

 

·Non-GAAP net income1 was US$5.2 million, compared with non-GAAP net income of US$11.7 million in the same quarter of 2013.

 

·Basic and diluted earnings per ADS2 attributable to ordinary shareholders were US$0.04. One ADS represents two Class A ordinary shares.

 

·Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.06.

 

Fiscal Year 2014 Financial Highlights

 

·Total revenues were US$265.0 million in fiscal year 2014, an 81.8% increase from fiscal year 2013.

 

·Gross margin was 94.8% compared with 94.2% in fiscal year 2013.

 

·Net income was US$22.6 million, a 15.8% increase compared with a net income of US$19.6 million in fiscal year 2013.

 

·Non-GAAP net income was US$28.8 million, a 28.5% increase compared with non-GAAP net income of US$22.4 million in fiscal year 2013.

 

·Basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.27 and US$0.26, respectively.

 

·Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders were US$0.34 and US$0.33, respectively.

 

________________________ 

1 Non-GAAP net income is defined as net income excluding share-based compensation expenses. For more information on these non-GAAP financial measures, please see the section captioned “Non-GAAP Financial Measures” and the tables captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this release.

 

2 Non-GAAP basic and diluted earnings per ADS is defined as non-GAAP net income divided by weighted average number of basic and diluted ADS.

 

-1-
 

 

Shares Outstanding

 

As of December 31, 2014, the Company had a total of 176,375,211 ordinary shares (including 101,574,732 Class A and 74,800,479 Class B ordinary shares) issued and outstanding. One ADS represents two Class A ordinary shares. The Company used weighted average ADSs and ordinary shares to calculate earnings per ADS and earnings per share.

 

Management Comments

 

“I am pleased to report another strong quarter as we successfully closed out our first full year as a public company,” commented Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com. “Mobile traffic continued to grow at a much faster pace than PC traffic, with 66% of our traffic coming from our mobile platforms. We continued to roll out 58 Home, our innovative mobile-based, closed loop services app, into more cities and categories. We also extended the reach of our content and services through our partner’s platforms including Tencent’s Mobile QQ. The acquisition of Anjuke provides further support to our housing category which will allow us to generate new growth drivers by expanding into primary real estate services. Looking forward, we will continue to invest aggressively in R&D and marketing to extend our lead in China’s local services market.”

 

Mr. Hao Zhou, Chief Financial Officer of 58.com added, “Revenues exceeded the high end of our guidance during each quarter in the year 2014. The number of subscription-based paying merchant members during the fourth quarter of 2014 exceeded the 600,000 milestone. Our online marketing services revenues also surpassed membership revenues for the first time, demonstrating the willingness of our large SME customer base to pay for increased traffic to our platform.”

 

Fourth Quarter 2014 Financial Results

 

Revenues

 

Total revenues were US$80.2 million, representing an increase of 77.2% from US$45.3 million in the same quarter of 2013.

 

Membership revenues were US$39.8 million, an increase of 53.0% from US$26.0 million in the same quarter of 2013. 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 2014 was approximately 605,000, an increase of 53.9% from 393,000 in the same quarter of 2013. Paying merchant members refer to the merchants who have purchased the Company’s subscription based membership services and whose membership subscriptions are active at any point during a given period.

 

Online marketing services revenues were US$40.3 million, an increase of 113.2% from US$18.9 million in the same quarter of 2013. The increase in online marketing services revenues was primarily attributable to an increase in user traffic and effectiveness of the Company’s online marketing services, particularly growth in the Company’s bidding services.

 

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Cost of Revenues

 

Cost of revenues was US$4.6 million, an increase of 122.0% from US$2.1 million during the same quarter of 2013. The year-over-year increase in cost of revenues was primarily driven by the increase in bandwidth fees, SMS costs and depreciation expenses.

 

Gross Profit and Gross Margin

 

Gross profit was US$75.6 million, an increase of 75.0% from US$43.2 million during the same quarter of 2013.

 

Gross margin was 94.3%, compared with 95.4% during the same quarter of 2013.

 

Operating Expenses

 

Operating expenses were US$81.0 million, representing an increase of 129.9% from US$35.2 million in the same quarter of 2013.

 

Sales and marketing expenses in the fourth quarter of 2014 were US$60.4 million, an increase of 149.3% from US$24.2 million during the same quarter in 2013. Within sales and marketing expenses, advertising expenses accounted for US$24.8 million and US$6.6 million during the fourth quarter of 2014 and 2013, respectively. The increase in advertising expenses was primarily due to expenses associated with the marketing of the Company’s mobile platforms and 58 Home services as well as the acquisition of PC traffic. Other sales and marketing expenses increased 101.6% from the same period last year to US$35.6 million. The increase in other sales and marketing expenses was primarily driven by increased salaries and commissions associated with the hiring of additional sales and customer service personnel.

 

Research and development expenses during the fourth quarter of 2014 were US$13.5 million, an increase of 96.5% year-over-year from US$6.9 million in the same quarter of 2013. The increase was primarily due to increased costs associated with the hiring of additional research and development personnel for the development of new features and services and increased rental expenses.

 

General and administrative expenses in the fourth quarter of 2014 were US$7.0 million, an increase of 71.0% from US$4.1 million in the same quarter of 2013. The increase was primarily driven by increased payroll expenses.

 

Income/(loss) from Operations

 

Loss from operations was US$5.3 million in the fourth quarter of 2014 compared with an income from operations of US$8.0 million in the same quarter of 2013. Operating margin was negative 6.6% in the fourth quarter of 2014, compared with positive 17.6% in the same quarter of 2013.

 

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Non-GAAP loss from operations3 was US$3.3 million in the fourth quarter of 2014 compared with non-GAAP income from operations of US$8.9 million in the same quarter of 2013. Non-GAAP operating margin was negative 4.1% in the fourth quarter of 2014 compared with non-GAAP operating margin of 19.7% in the same quarter of 2013.

 

Other Income

 

Other income in the fourth quarter of 2014 was US$8.2 million, a significant increase from US$2.8 million in the same quarter of 2013. The increase was primarily due to US$4.9 million increase in interest income and investment income resulting from higher balance of term deposits and short-term investments, and US$0.8 million increase in government grants.

 

Net Income

 

Net income was US$3.2 million in the fourth quarter of 2014, compared with a net income of US$10.8 million in the same quarter of 2013. Net margin was 4.0% in the fourth quarter of 2014, compared with 23.8% in the same quarter of 2013.

 

Non-GAAP net income was US$5.2 million in the fourth quarter of 2014, compared with non-GAAP net income of US$11.7 million in the same quarter of 2013. Non-GAAP net margin was 6.5% in the fourth quarter of 2014, compared with non-GAAP net margin of 25.9% in the same quarter of 2013.

 

Basic and Diluted Earnings per ADS

 

Basic and diluted earnings per ADS attributable to ordinary shareholders in the fourth quarter of 2014 were US$0.04 compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.14 and US$0.13, respectively during the same quarter of 2013.

 

Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders in the fourth quarter of 2014 were US$0.06, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.15 and US$0.14, respectively during the same quarter of 2013.

 

Cash, Cash Equivalents, Term Deposits and Short-term Investments

 

As of December 31, 2014, the Company had cash and cash equivalents, term deposits and short-term investments of US$609.0 million.

 

Cash Flow

 

Net cash provided by operating activities was US$27.5 million in the fourth quarter of 2014, compared with US$25.6 million in the same quarter of 2013.

 

_____________________

3 Non-GAAP income/(loss) from operations is defined as income/(loss) from operations excluding share-based compensation expenses.

 

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Fiscal Year 2014 Financial Results

 

Revenues

 

Total revenues were US$265.0 million in fiscal year 2014, representing an increase of 81.8% from US$145.7 million in fiscal year 2013.

 

Membership revenues were US$139.5 million in fiscal year 2014, an increase of 62.7% from US$85.7 million in fiscal year 2013. The increase was primarily driven by the increase in the number of paying merchant members. The number of quarterly average paying merchant members during fiscal year 2014 was approximately 529,000, an increase of 63.8% from 323,000 in fiscal year 2013.

 

Online marketing services revenues were US$125.0 million in fiscal year 2014, an increase of 113.9% from US$58.5 million in fiscal year 2013. The increase in online marketing services revenues was primarily attributable to an increase in user traffic and the effectiveness of the Company’s online marketing services, particularly growth in the Company’s bidding services.

 

Cost of Revenues

 

Cost of revenues was US$13.8 million in fiscal year 2014, an increase of 63.4% from US$8.5 million during fiscal year 2013. The year-over-year increase in cost of revenues was primarily driven by the increase in bandwidth fees, SMS costs and depreciation expenses.

 

Gross Profit and Gross Margin

 

Gross profit was US$251.1 million in fiscal year 2014, an increase of 82.9% from US$137.3 million during fiscal year 2013.

 

Gross margin was 94.8% in fiscal year 2014, as compared to 94.2% during fiscal year 2013.

 

Operating Expenses

 

Operating expenses were US$244.5 million in fiscal year 2014, representing an increase of 99.3% from US$122.7 million in fiscal year 2013.

 

Sales and marketing expenses in fiscal year 2014 were US$180.1 million, an increase of 113.1% from US$84.5 million in fiscal year 2013. Advertising expenses were US$73.4 million and US$22.7 in fiscal year 2014 and 2013, respectively. The increase in advertising expenses was primarily due to expenses associated with the marketing of the Company’s mobile platforms and the acquisition of PC traffic. Other sales and marketing expenses increased 72.6% from the same period last year to US$106.7 million. The increase was largely due to an increase in salaries and commissions associated with the hiring of additional sales and customer service personnel.

 

Research and development expenses during fiscal year 2014 were US$43.7 million, an increase of 73.7% year-over-year from US$25.1 million in fiscal year 2013. The increase was primarily due to increased salaries and employee benefits associated with the hiring of additional research and development personnel for the development of new features and services and increased rental expenses.

 

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General and administrative expenses in fiscal year 2014 were US$20.6 million, an increase of 58.9% compared with US$13.0 million in fiscal year 2013. The increase was primarily driven by increased payroll expenses and professional fees.

 

Income from Operations

Income from operations was US$6.7 million in fiscal year 2014 compared with an income from operations of US$14.6 million in fiscal year 2013. Operating margin was 2.5% in fiscal year 2014, compared with 10.0% in fiscal year 2013.

 

Non-GAAP income from operations was US$12.9 million in fiscal year 2014 compared with non-GAAP income from operations of US$17.5 million in fiscal year 2013. Non-GAAP operating margin was 4.8% in fiscal year 2014 compared with non-GAAP operating margin of 12.0% in fiscal year 2013.

 

Other Income

 

Other income in fiscal year 2014 was US$22.2 million, a significant increase from US$4.9 million in fiscal year 2013. The increase was primarily due to US$15.4 million increase in interest income and investment income due to higher balance of term deposits and short-term investments and US$4.7 million increase in government grants, which were partially offset by US$3.1 million increase in exchange loss.

 

Net Income

 

Net income was US$22.6 million in fiscal year 2014, compared with a net income of US$19.6 million in fiscal year 2013. Net margin was 8.5% in fiscal year 2014, compared with 13.4% in fiscal year 2013.

 

Non-GAAP net income was US$28.8 million in fiscal year 2014, compared with non-GAAP net income of US$22.4 million in fiscal year 2013. Non-GAAP net margin was 10.8% in fiscal year 2014, compared with non-GAAP net margin of 15.4% in fiscal year 2013.

 

Basic and Diluted Earnings per ADS

 

Basic and diluted earnings per ADS attributable to ordinary shareholders in fiscal year 2014 were US$0.27 and US$0.26, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.29 and US$0.27, respectively during fiscal year 2013.

 

Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders in fiscal year 2014 were US$0.34 and US$0.33, compared with basic and diluted earnings per ADS attributable to ordinary shareholders of US$0.38 and US$0.35, respectively during fiscal year 2013.

 

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Cash Flow

 

Net cash provided by operating activities was US$98.6 million in fiscal year 2014, compared with US$66.3 million during fiscal year 2013.

 

Acquisition of Anjuke

 

In March 2015, 58.com acquired Anjuke, a major online real estate listing platform in China. 58.com paid approximately US$267.0 million, including approximately 5,087,585 new ordinary shares of 58.com (one ADS represents two Class A ordinary shares) and approximately US$160.2 million in cash for 100% equity stake. Anjuke provides potential home buyers and renters an efficient and user-friendly experience to search for primary and secondary real estate. It also enables developers and real estate agents to effectively market their properties online. Following the acquisition, Anjuke will continue to operate its website and mobile app under the Anjuke brand.

 

Business Outlook

 

Based on the Company’s current operations, total revenues for the first quarter of 2015 are expected to be between US$82.0 million and US$84.0 million, representing a year-over-year increase of 70.0% to 74.1%. These estimates reflect the Company’s current and preliminary view, which is subject to change.

 

Non-GAAP Financial Measures

 

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per share and per ADS by excluding share-based compensation expenses from income/(loss) from operations 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.

 

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Conference Call

 

58.com’s management will host an earnings conference call on Monday, March 9, 2015 at 8:00 a.m. U.S. Eastern Daylight Time (8:00 p.m. Beijing / Hong Kong the same day).

 

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

 

International: +1-412-902-4272    
U.S. Toll Free: +1-888-346-8982    
Hong Kong: 800-905945    
China: 4001-201203    
Passcode: WUBA    
     

Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call.

 

A telephone replay of the call will be available after the conclusion of the conference call through 8:00 a.m. U.S. Eastern Daylight Time, March 16, 2015. The dial-in details for the replay are as follows:

 

International: +1-412-317-0088  
U.S. Toll Free: +1-877-344-7529  
Passcode: 10061641  
       

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.

 

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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

 

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58.com Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   As of 
   December 31,
2013		   December 31,
2014		 
         
ASSETS          
Current assets:          
Cash and cash equivalents    60,494    111,376 
Restricted cash    —    1,314 
Term deposits    152,190    281,513 
Short-term investments    98,411    216,146 
Accounts receivable, net    4,292    6,282 
Amounts due from related parties    127    1 
Prepayments and other current assets    8,983    24,130 
Total current assets    324,497    640,762 
Non-current assets:          
Property and equipment, net    6,427    17,899 
Intangible assets, net    65    460 
Long-term investments    —    23,784 
Long-term prepayments    2,352    21,027 
Total non-current assets    8,844    63,170 
Total assets    333,341    703,932 
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable    8,309    16,029 
Deferred revenues    55,099    95,336 
Customer advances and deposits    21,369    35,983 
Taxes payable    2,264    7,392 
Salary and welfare payable    17,962    28,804 
Accrued expenses and other current liabilities    8,055    13,071 
Total current liabilities    113,058    196,615 
Total liabilities    113,058    196,615 
Commitments and contingencies          
Shareholders’ equity:          
Ordinary shares (US$0.00001 par value, 4,800,000,000 Class A and 200,000,000 Class B shares authorized, 27,064,706 Class A and 131,811,987 Class B shares issued and outstanding as of December 31, 2013 and 101,574,732 Class A and 74,800,479 Class B shares issued and outstanding as of December 31, 2014, respectively)    2    2 
Additional paid-in capital    359,276    624,381 
Accumulated deficit    (138,419)   (115,775)
Accumulated other comprehensive loss    (576)   (1,291)
Total shareholders’ equity    220,283    507,317 
Total liabilities and shareholders’ equity    333,341    703,932 
           
           

 

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58.com Inc. 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

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

 

   For the Three Months Ended   For the Fiscal Year Ended 
   December 31,
2013		   September 30,
2014		   December 31,
2014		   December 31,
2013		   December 31,
2014		 
                     
Revenues:                         
Membership   26,033    37,011    39,839    85,725    139,490 
Online marketing services   18,913    34,868    40,324    58,457    125,033 
Other services   334    80    57    1,565    455 
Total revenues    45,280    71,959    80,220    145,747    264,978 
Cost of revenues(1)    2,074    3,408    4,604    8,471    13,844 
Gross profit    43,206    68,551    75,616    137,276    251,134 
Operating expenses(1):                         
Sales and marketing expenses    24,248    47,302    60,446    84,534    180,148 
Research and development expenses    6,859    12,943    13,477    25,138    43,676 
General and administrative expenses    4,110    5,262    7,027    12,983    20,633 
Total operating expenses    35,217    65,507    80,950    122,655    244,457 
Income/(loss) from operations    7,989    3,044    (5,334)   14,621    6,677 
Other income/(expenses):                         
Interest income    552    2,671    2,528    603    8,527 
Investment income, net    1,462    3,111    4,342    2,728    10,245 
Foreign currency exchange income/(loss), net    327    680    (49)   548    (2,510)
Others, net    452    930    1,396    1,057    5,891 
Income before tax    10,782    10,436    2,883    19,557    28,830 
Income tax benefits/(expenses)    —    (4,495)   325    —    (6,186)
Net income    10,782    5,941    3,208    19,557    22,644 
Accretions to preference shares redemption values    (933)   —    —    (9,134)   — 
Income attributable to preference shareholders   (1,469)   —    —    (1,230)   — 
Net income attributable to ordinary shareholders    8,380    5,941    3,208    9,193    22,644 
Net income    10,782    5,941    3,208    19,557    22,644 
Foreign currency translation adjustment, net of nil tax    (132)   35    486    (570)   396 
Unrealized loss on available-for-sale securities    —    —    (1,111)   —    (1,111)
Comprehensive income    10,650    5,976    2,583    18,987    21,929 
Net income per ordinary share attributable to ordinary shareholders - basic    0.07    0.03    0.02    0.14    0.13 
Net income per ordinary share attributable to ordinary shareholders - diluted    0.06    0.03    0.02    0.13    0.13 
Net income per ADS – basic (1 ADS represents 2 Class A ordinary shares)    0.14    0.07    0.04    0.29    0.27 
Net income per ADS – diluted (1 ADS represents 2 Class A ordinary shares)    0.13    0.07    0.04    0.27    0.26 
Weighted average number of ordinary shares used in computing basic earnings per share    121,496,920    175,436,892    175,935,570    63,717,007    168,589,273 
Weighted average number of ordinary shares used in computing diluted earnings per share    129,709,221    181,329,119    181,122,008    69,159,524    174,024,997 

_____________________________________

Note:

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

 

Cost of revenues    2    (1)   8    36    18 
Sales and marketing expenses    75    481    581    445    1,395 
Research and development expenses    252    828    708    996    2,403 
General and administrative expenses    601    569    710    1,388    2,357 

 

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58.com Inc.

Reconciliation of GAAP and Non-GAAP Results

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

 

   For the Three Months Ended   For the Fiscal Year Ended 
   December 31,
2013		   September 30,
2014		   December 31,
2014		   December 31,
2013		   December 31,
2014		 
                     
GAAP income/(loss) from operations    7,989    3,044    (5,334)   14,621    6,677 
Share-based compensation expenses    930    1,877    2,007    2,865    6,173 
Non-GAAP income/(loss) from operations    8,919    4,921    (3,327)   17,486    12,850 
                          
GAAP net income    10,782    5,941    3,208    19,557    22,644 
Share-based compensation expenses    930    1,877    2,007    2,865    6,173 
Non-GAAP net income    11,712    7,818    5,215    22,422    28,817 
                          
GAAP operating margin    17.6%   4.2%   (6.6)%   10.0%   2.5%
    Share-based compensation expenses    2.1%   2.6%   2.5%   2.0%   2.3%
Non-GAAP operating margin    19.7%   6.8%   (4.1)%   12.0%   4.8%
                          
GAAP net margin    23.8%   8.3%   4.0%   13.4%   8.5%
    Share-based compensation expenses    2.1%   2.6%   2.5%   2.0%   2.3%
Non-GAAP net margin    25.9%   10.9%   6.5%   15.4%   10.8%
                          
Weighted average number of ordinary shares used in computing non-GAAP basic earnings per share    121,496,920    175,436,892    175,935,570    63,717,007    168,589,273 
Weighted average number of ordinary shares used in computing non-GAAP diluted earnings per share    129,709,221    181,329,119    181,122,008    69,159,524    174,024,997 
                          
Weighted average number of ADS used in computing non-GAAP basic earnings per ADS    60,748,460    87,718,446    87,967,785    31,858,504    84,294,637 
Weighted average number of ADS used in computing non-GAAP diluted earnings per ADS    64,854,611    90,664,560    90,561,004    34,579,762    87,012,499 
                          
Non-GAAP net income per ordinary share - basic    0.08    0.04    0.03    0.19    0.17 
Non-GAAP net income per ordinary share - diluted    0.07    0.04    0.03    0.17    0.17 
                          
Non-GAAP net income per ADS - basic    0.15    0.09    0.06    0.38    0.34 
Non-GAAP net income per ADS - diluted    0.14    0.09    0.06    0.35    0.33 

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