First Quarter 2014 Highlights
- Net revenues increased 36% year over year to $171.5 million. Non-GAAP net revenues increased 38% year over year to $167.3 million, exceeding the Company's guidance between $162.0 million and $167.0 million.
- Advertising revenue grew 44% year over year to $135.7 million, reaching the high-end of the Company's guidance between $133.0 million and $136.0 million.
- Non-advertising revenue increased 13% year over year to $35.8 million. Non-GAAP non-advertising increased 17% year over year to $31.6 million, exceeding the Company's guidance between $29.0 million and $31.0 million.
- Net loss attributable to SINA was $33.2 million, or $0.52 diluted net loss per share attributable to SINA. Non-GAAP net income attributable to SINA grew 617% year over year to $11.1 million, or$0.15 non-GAAP diluted net income per share attributable to SINA.
"We are delighted to report strong revenue growth in the first quarter of 2014 driven by our continuing success in Weibo monetization," said Charles Chao, Chairman and CEO of SINA. "The successful separate listing of Weibo on the NASDAQ Global Select Market in April opened a new chapter for SINA. The more independent structure will help Weibo to better realize its long-term growth potential and create greater value for our shareholders. Looking forward, we hope to repeat our past successes of leveraging SINA's brand equity and market influence to build new businesses. We believe there is significant value creation potential by leveraging SINA's portal assets to build leading verticals and smartly deploying SINA's own cash pile of over $1.8 billion."
Loss from operations for the first quarter of 2014 was $8.7 million, compared to $9.9 million for the same period last year. Non-GAAP loss from operations for the first quarter of 2014 was $4.8 million, compared to $9.3 million for the same period last year.
Non-operating loss for the first quarter of 2014 was $29.9 million, compared to $4.5 million for the same period last year. Non-operating loss for the first quarter of 2014 included a $40.2 million loss from the change in fair value of investor option liability in connection with Alibaba's investment in Weibo. Non-operating loss for the first quarter of 2014 also included $8.7 million, or $10.7 million on a non-GAAP basis, in earnings from equity method investments, which were accounted for under the equity-method and reported on a one-quarter lagging basis. Non-operating loss in the first quarter of 2013 included$1.5 million, or $4.8 million on a non-GAAP basis, in earnings from equity method investments. Non-operating loss in the first quarter of 2013 also included a non-cash $10.2 million loss on the dilution of equity interest in E-House, as a result of E-House issuing new shares to its management.
Net loss attributable to SINA for the first quarter of 2014 was $33.2 million, compared to $13.2 millionfor the same period last year. Diluted net loss per share attributable to SINA for the first quarter of 2014 was $0.52, compared to $0.20 for the same period last year. Non-GAAP net income attributable to SINA for the first quarter of 2014 was $11.1 million, compared to $1.5 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA for the first quarter of 2014 was$0.15, compared to $0.02 for the same period last year.
As of March 31, 2014, SINA's cash, cash equivalents and short-term investments totaled $1,805.9 million, compared to $1,868.2 million as of December 31, 2013. For the first quarter of 2014, cash provided by operating activities was $4.9 million, capital expenditures totaled $23.8 million, and depreciation and amortization expenses amounted to $11.6 million
