SINA Reports Third Quarter 2019 Unaudited Financial Results

BEIJING, Nov. 14, 2019 /PRNewswire/ -- SINA Corporation (the "Company" or "SINA") (NASDAQ: SINA), a leading online media company serving China and the global Chinese communities, today announced its unaudited financial results for the third quarter ended September 30, 2019.

Third Quarter 2019 Highlights

    --  Net revenues increased 1% year-over-year to $561.4 million. Non-GAAP net
        revenues increased 1% year-over-year to $558.8 million, representing an
        increase of 5% on a constant currency basis( [1]).
    --  Advertising revenues decreased 5% year-over-year to $461.1 million.
    --  Non-advertising revenues increased 37% year-over-year to $100.4 million.
        Non-GAAP non-advertising revenues increased 38% year-over-year to $97.7
        million.
    --  Net income attributable to SINA was $20.4 million, or $0.28 for diluted
        net income per share attributable to SINA's ordinary shareholders.
        Non-GAAP net income attributable to SINA was $67.0 million, or $0.94 for
        non-GAAP diluted net income per share attributable to SINA's ordinary
        shareholders.

([1]) On a constant currency (non-GAAP) basis, we assume that the exchange rate in the third quarter of 2019 had been the same as it was in the third quarter of 2018, or RMB6.80=US$1.00.

Third Quarter 2019 Financial Results

For the third quarter of 2019, SINA reported net revenues of $561.4 million, an increase of 1% compared to $557.2 million for the same period last year. Non-GAAP net revenues for the third quarter of 2019 were $558.8 million, an increase of 1% compared to $554.6 million for the same period last year.

Advertising revenues for the third quarter of 2019 were $461.1 million, a decrease of 5% compared to $483.8 million for the same period last year, primarily due to a decline in portal advertising revenues and negative currency translation impact.

Non-advertising revenues for the third quarter of 2019 were $100.4 million, an increase of 37% compared to $73.4 million for the same period last year. Non-GAAP non-advertising revenues for the third quarter of 2019 were $97.7 million, an increase of 38% compared to $70.8 million for the same period last year. The year-over-year growth in non-advertising revenues was mainly attributable to increased revenues generated from SINA fin-tech businesses and revenues derived from Weibo's live streaming business acquired in the fourth quarter of 2018.

Gross margin for the third quarter of 2019 was 79%, compared to 80% for the same period last year. Advertising gross margin for the third quarter of 2019 was 83%, compared to 81% for the same period last year. Non-advertising gross margin for the third quarter of 2019 was 63%, down from 71% for the same period last year, resulted from the relatively lower gross margin of the acquired live streaming business of Weibo.

Operating expenses for the third quarter of 2019 totaled $305.4 million, compared to $316.0 million for the same period last year. Non-GAAP operating expenses for the third quarter of 2019 totaled $274.9 million, compared to $276.4 million for the same period last year.

Income from operations for the third quarter of 2019 was $138.7 million, compared to $127.4 million for the same period last year. Operating margin was 25%, compared to 23% for the same period last year. Non-GAAP income from operations for the third quarter of 2019 was $170.0 million, compared to $168.1 million for the same period last year. Non-GAAP operating margin was 30%, flat year over year.

Non-operating loss for the third quarter of 2019 was $4.0 million, compared to a non-operating income of $77.3 million for the same period last year. Non-operating loss for the third quarter of 2019 included (i) a $25.5 million net loss on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measures; (ii) a $19.9 million net interest and other income; and (iii) a $1.6 million net earning from equity method investments, which is reported one quarter in arrears. Non-operating income for the third quarter of 2018 included (i) a $50.1 million net gain on sale of investments, fair value changes and impairment on investments, which is excluded under non-GAAP measures; (ii) a $17.1 million net interest and other income; and (iii) a $10.2 million net earning from equity method investments, which is reported one quarter in arrears and is mainly resulted from the earnings pick-up related to the Company's investment in Tian Ge Interactive Holding Limited.

Income tax expenses for the third quarter of 2019 were $27.9 million, compared to $68.1 million for the same period last year, largely attributable to reversal of deferred tax charges recognized from the fair value changes of investments.

Net income attributable to SINA's ordinary shareholders for the third quarter of 2019 was $20.4 million, compared to $45.4 million for the same period last year. Diluted net income per share attributable to SINA's ordinary shareholders for the third quarter of 2019 was $0.28, compared to $0.62 for the same period last year. Non-GAAP net income attributable to SINA's ordinary shareholders for the third quarter of 2019 was $67.0 million, compared to $67.7 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA's ordinary shareholders for the third quarter of 2019 was $0.94, compared to $0.93 for the same period last year.

As of September 30, 2019, SINA's cash, cash equivalents and short-term investments totaled $2.9 billion, compared to $2.3 billion as of December 31, 2018, mainly due to net proceeds received from Weibo's senior notes offering. For the third quarter of 2019, net cash provided by operating activities was $220.2 million, capital expenditures totaled $6.0 million, and depreciation and amortization expenses amounted to $10.9 million.

Non-GAAP Measures

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

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

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

Conference Call

SINA will host a conference call from 7:10 a.m. - 7:40 a.m. Eastern Time on November 14, 2019 (or 8:10 p.m. - 8:40 p.m. Beijing Time on November 14, 2019) to present an overview of the Company's financial performance and business operations. A live webcast of the call will be available through the Company's corporate website at http://ir.sina.com. The conference call can be accessed as follows:



            US:                          
            +1 845 675 0437



            Hong Kong:                    
            +852 3018 6771



            Mainland China:                 
            400 620 8038



            International:                 
            +65 6713 5090



            Passcode for all regions:                     9785475

A replay of the conference call will be available through morning Eastern Time November 22, 2019. The dial-in number is +61 2 8199 0299. The passcode for the replay is 9785475.

About SINA

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

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

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

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

Safe Harbor Statement

This press release contains forward-looking statements that relate to, among other things, SINA's expected financial performance and SINA's strategic and operational plans (as described, without limitation, in quotations from management in this press release). SINA may also make forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. SINA assumes no obligation to update the forward-looking statements in this press release and elsewhere. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to failure to meet internal or external expectations of future performance given the rapidly evolving markets; condition of the global financial and credit market; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on online advertising sales and value-added services for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products, including portal, Weibo and fin-tech products; failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties, such as Alibaba; failure to successfully integrate acquired businesses; risks associated with the Company's investments, including adverse impacts on our financial results from equity pick-up, fair value changes and impairment; and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA's 2018 annual reports on Form 20-F and other filings with the Securities and Exchange Commission.

Contact:

Investor Relations
SINA Corporation
Phone: +86 10 5898 3336
Email: ir@staff.sina.com.cn


                                                                                                                                                                                                        
            
                SINA CORPORATION


                                                                                                                                                                                            
           
         UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


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




                                                                                                                                                                          
      
      Three months ended                                                                  Nine months ended



                                                                                                                                                                         
      
      September 30,                                    
              
                June 30,                               
       
     September 30,



                                                                                                                                                                                             2019                                            2018                                           2019                           2019            2018




         
                Net revenues:



         
                    Advertising                                                                                                                                                   $461,095                                        $483,806                                       $433,633                     $1,282,753      $1,304,978



         
                    Non-advertising                                                                                                                                                100,353                                          73,395                                         99,421                        286,888         230,335



                                                                                                                                                                                          561,448                                         557,201                                        533,054                      1,569,641       1,535,313




         
                Cost of revenues(1):



         
                    Advertising                                                                                                                                                     80,297                                          92,407                                         85,589                        250,265         256,105



         
                    Non-advertising                                                                                                                                                 37,055                                          21,408                                         38,722                        106,921          72,890



                                                                                                                                                                                          117,352                                         113,815                                        124,311                        357,186         328,995




         
                Gross profit                                                                                                                                                       444,096                                         443,386                                        408,743                      1,212,455       1,206,318






         
                Operating expenses:



         
                    Sales and marketing (1)                                                                                                                                        169,423                                         185,478                                        147,721                        462,622         508,754



         
                    Product development (1)                                                                                                                                         91,150                                          91,545                                         91,981                        277,180         260,559



         
                    General and administrative (1)                                                                                                                                  44,854                                          28,377                                         43,016                        121,030          89,551



         
                    Goodwill and acquired intangibles impairment                                                                                                                         -                                         10,554                                                                                      10,554

                                                                                                                                                                                                                                                                                                                                        ---

                                                                                                                                                                                          305,427                                         315,954                                        282,718                        860,832         869,418




         
                Income from operations                                                                                                                                             138,669                                         127,432                                        126,025                        351,623         336,900






         
                Non-operating income (loss):



         
                    Earning (loss) from equity method investments, net                                                                                                               1,608                                          10,150                                          4,316                       (10,329)          5,851



         
                    Gain (loss) on sale of investments, fair value changes and impairment                                                                                         (25,549)                                         50,111                                          (315)                        54,942          40,941
      on investments, net



         
                    Interest and other income, net                                                                                                                                  19,895                                          17,051                                         15,744                         48,741          54,265



                                                                                                                                                                                          (4,046)                                         77,312                                         19,745                         93,354         101,057





         
                Income before income taxes                                                                                                                                         134,623                                         204,744                                        145,770                        444,977         437,957



         
                  Income tax expenses                                                                                                                                             (27,930)                                       (68,129)                                      (46,720)                     (139,885)      (114,737)






         
                Net income                                                                                                                                                         106,693                                         136,615                                         99,050                        305,092         323,220



         
                     Less: Net income attributable to non-controlling interests                                                                                                     86,296                                          91,176                                         47,626                        200,188         214,035






         
                Net income attributable to SINA's ordinary shareholders                                                                                                            $20,397                                         $45,439                                        $51,424                       $104,904        $109,185

                                                                                                                                                                                                                                                                                                                                        ===






         
                Basic net income per share                                                                                                                                           $0.29                                           $0.66                                          $0.74                          $1.50           $1.55

                                                                                                                                                                                                                                                                                                                                        ===


         
                Diluted net income per share (2)                                                                                                                                     $0.28                                           $0.62                                          $0.73                          $1.49           $1.48

                                                                                                                                                                                                                                                                                                                                        ===




         
                Shares used in computing basic net income per share                                                                                                                 69,936                                          69,332                                         69,709                         69,704          70,653





         
                Shares used in computing diluted net income per share                                                                                                               70,019                                          71,322                                         69,944                         69,909          72,962









         
                (1)Stock-based compensation in each category:


                        
              Cost of revenues                                                                                                                                          $3,448                                          $3,775                                         $2,620                         $8,604          $9,206


                        
              Sales and marketing                                                                                                                                        6,426                                           7,414                                          6,031                         18,077          18,768


                        
              Product development                                                                                                                                       10,655                                          11,205                                          8,415                         28,724          26,427


                        
              General and administrative                                                                                                                                12,342                                           9,012                                         11,200                         34,520          23,335





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


                                                                                                           
              
                SINA CORPORATION


                                                                                           
              
                UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


                                                                                                     
              
                (U.S. Dollars in thousands)




                                                                                                                                                             
         
     September 30,         
     
     December 31,


                                                                                                                                                                                      2019                       2018



                                                       
              
                Assets


     
              
                Current assets:


     
              
                 Cash and cash equivalents                                                                                                                         $2,272,871                 $1,545,800


     
              
                 Short-term investments                                                                                                                               593,272                    799,534


     
              
                 Restricted cash                                                                                                                                      137,629                     97,032


     
              
                 Accounts receivable, net                                                                                                                             639,994                    527,897


     
              
                 Financing receivables, net (1)                                                                                                                       222,175


     
              
                 Prepaid expenses and other current assets                                                                                                            592,287                    362,435



     
              
                      Subtotal                                                                                                                                      4,458,228                  3,332,698





     
              
                Property and equipment, net                                                                                                                           246,023                    262,846


                             Operating lease right-of-use assets, net (2)                                                                                                           27,231                          -


                             Goodwill and intangible assets, net                                                                                                                   301,381                    319,575


     
              
                Long-term investments                                                                                                                               2,288,849                  1,889,843


     
              
                Other assets                                                                                                                                           97,089                     81,127



     
              
                Total assets                                                                                                                                       $7,418,801                 $5,886,089





                                        
              
                Liabilities and Shareholders' Equity


     
              
                Current liabilities:


     
              
                Accounts payable                                                                                                                                     $177,261                   $172,562


     
              
                Amount due to customers                                                                                                                               107,198                     97,032


     
              
                Accrued expenses and other current liabilities                                                                                                        678,728                    540,807


     
              
                Short-term bank loan                                                                                                                                   79,096                     78,229


     
              
                Deferred revenues                                                                                                                                     169,501                    139,306


     
              
                Short-term operating lease liabilities (2)                                                                                                             11,967


     
              
                Funding debts  (1)                                                                                                                                    179,080


     
              
                Income taxes payable                                                                                                                                  126,012                    115,725


     
              
                      Subtotal                                                                                                                                      1,528,843                  1,143,661





     
              
                Convertible debt                                                                                                                                      887,230                    884,123


     
              
                Senior notes                                                                                                                                          793,682                          -


     
              
                Long-term deferred revenues                                                                                                                            35,826                     43,652


                             Long-term operating lease liabilities(2)                                                                                                               16,255                          -


     
              
                Other long-term liabilities                                                                                                                           103,643                     51,781



     
              
                      Total liabilities                                                                                                                             3,365,479                  2,123,217




     
              
                Shareholders' equity


     
              
                SINA shareholders' equity                                                                                                                           2,806,686                  2,717,791


     
              
                Non-controlling interests                                                                                                                           1,246,636                  1,045,081



     
              
                      Total shareholders' equity                                                                                                                    4,053,322                  3,762,872




                             Total liabilities and shareholders' equity                                                                                                         $7,418,801                 $5,886,089





                             (1)In 2019, the Company set up trusts, which were administered by third-party trust company to invest in
                              consumer loans to
      the individual borrowers recommended by the Company. The trusts are considered as variable interest
      entities under ASC 810.
      Accordingly, the financing receivables due from the borrowers and the loan payables to the third party
      investors of the trust
      units are recorded on the Company's consolidated balance sheet as financing receivables and funding debts,
      respectively.




                             (2)The Company adopted the new leasing guidance (ASU 2016-2) started from January 1, 2019, which requires
                              that a lessee
      recognize the assets and liabilities that arise from operating leases. The Company recognized a right-of-
      use asset and a liability
      relating to lease payments (the Lease Liability) in the statements of financial position for lease
      contracts having terms beyond
     12 months period.


                                                         
             
                SINA CORPORATION


                                                   
            
               UNAUDITED ADDITIONAL INFORMATION


                                                     
             
               (U.S. Dollars in thousands)




                                                       
             
                Three months ended                              
     
             Nine months ended

                                                                                                                                     ---

                                                 
           
               September 30,                       
     
               June 30,                
              
     September 30,

                                                                                                                                                        ---

                                                            2019                             2018                 2019                   2019                                    2018

                                                                                                                                                                              ---




     
               Net revenues



     
               Portal:



     
                   Portal Advertising                 $50,105                          $74,533              $62,973               $159,974                                $222,838



     
                   Other                               50,365                           26,707               43,740                129,021                                  84,112

                                                                                                                                                                              ---

                                                         100,470                          101,240              106,713                288,995                                 306,950


     
                   Subtotal





     
               Weibo:



     
                   Advertising and marketing          412,489                          409,273              370,660              1,124,290                               1,082,164



     
                   Weibo VAS                           55,264                           50,898               61,176                174,476                                 154,479

                                                                                                                                                                              ---

                                                         467,753                          460,171              431,836              1,298,766                               1,236,643


     
                       Subtotal





     Elimination                                        (6,775)                         (4,210)             (5,495)              (18,120)                                (8,280)

                                                                                                                                                                              ---

                                                        $561,448                         $557,201             $533,054             $1,569,641                              $1,535,313






     
               Cost of revenues



     
               Portal:



     
                   Portal Advertising                 $22,996                          $30,501              $25,011                $69,667                                 $88,420



     
                   Other                               26,161                           17,508               22,823                 65,868                                  54,123

                                                                                                                                                                              ---


     
                   Subtotal                            49,157                           48,009               47,834                135,535                                 142,543





     
               Weibo                                   73,471                           70,016               81,972                238,260                                 194,708





     Elimination                                        (5,276)                         (4,210)             (5,495)              (16,609)                                (8,256)

                                                                                                                                                                              ---

                                                        $117,352                         $113,815             $124,311               $357,186                                $328,995






     
               Gross margin


                                                             51%                             53%                 55%                   53%                                    54%


     
               
                           Portal


                                                             84%                             85%                 81%                   82%                                    84%


     
               
                           Weibo


                                                             79%                             80%                 77%                   77%                                    79%


                                                                                                                                                                                                                                                                    
              
                SINA CORPORATION


                                                                                                                                                                                                                                                     
              
             UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS


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






                                                                                                                                                                                         
              
                Three months ended



                                                                                                                                          
              
                September 30, 2019                                               
     
               September 30, 2018                             
              
                June 30, 2019

                                                                                                                                                                                                                                                                                                                 ---

                                                                                                                                                                                                                                               
              
             Non-GAAP                                                                                        
       
       Non-GAAP                                                           
        
       Non-GAAP


                                                                                                                                          
              
                Actual               
          
                Adjustments                           
              
             Results                     
              
                Actual       
     
     Adjustments                
       
       Results        
     
     Actual         
     
     Adjustments                   
       
        Results

                                                                                                                                                                                                                                                                                                                                                                                                                                                                ---




            
                Advertising revenues                                                                                                                     $461,095                                                                                             $461,095                                             $483,806                                             $483,806           $433,633                                                   $433,633



            
                Non-advertising revenues                                                                                                                  100,353                                      (2,609)                   (a)                            97,744                                               73,395              (2,609)       (a)                70,786             99,421                 (2,609)          (a)                96,812




            
                Net revenues                                                                                                                             $561,448                                     $(2,609)                                                $558,839                                             $557,201             $(2,609)                        $554,592           $533,054                $(2,609)                           $530,445

                                                                                                                                                                                                                                                                                                                                                                                                                                                                ===



                                                                                                                                                                                                              (2,609)                   (a)                                                                                                   (2,609)       (a)                                                        (2,609)          (a)


                                                                                                                                                                                                                3,448                    (b)                                                                                                     3,775        (b)                                                          2,620           (b)




            
                Gross profit                                                                                                                             $444,096                                         $839                                                 $444,935                                             $443,386               $1,166                         $444,552           $408,743                     $11                            $408,754

                                                                                                                                                                                                                                                                                                                                                                                                                                                                ===



                                                                                                                                                                                                                                                                                                                                             (27,631)       (b)


                                                                                                                                                                                                             (29,423)                   (b)                                                                                                   (1,354)       (c)                                                       (25,646)          (b)


                                                                                                                                                                                                              (1,073)                   (c)                                                                                                  (10,554)       (d)                                                        (1,107)          (c)



            
                Operating expenses                                                                                                                       $305,427                                    $(30,496)                                                $274,931                                             $315,954            $(39,539)                        $276,415           $282,718               $(26,753)                           $255,965

                                                                                                                                                                                                                                                                                                                                                                                                                                                                ===



                                                                                                                                                                                                                                                                                                                                              (2,609)       (a)


                                                                                                                                                                                                              (2,609)                   (a)                                                                                                    31,406        (b)                                                        (2,609)          (a)


                                                                                                                                                                                                               32,871                    (b)                                                                                                     1,354        (c)                                                         28,266           (b)


                                                                                                                                                                                                                1,073                    (c)                                                                                                    10,554        (d)                                                          1,107           (c)



            
                Income from operations                                                                                                                   $138,669                                      $31,335                                                 $170,004                                             $127,432              $40,705                         $168,137           $126,025                 $26,764                            $152,789

                                                                                                                                                                                                                                                                                                                                                                                                                                                                ===



                                                                                                                                                                                                                                                                                                                                              (2,609)       (a)


                                                                                                                                                                                                              (2,609)                   (a)                                                                                                    31,406        (b)                                                        (2,609)         (a)


                                                                                                                                                                                                               32,871                    (b)                                                                                                     1,354        (c)                                                         28,266           (b)


                                                                                                                                                                                                                1,073                    (c)                                                                                                    10,554        (d)                                                          1,107           (c)


                                                                                                                                                                                                                4,279                    (e)                                                                                                   (6,879)       (e)                                                        (4,881)          (e)


                                                                                                                                                                                                               25,549                    (f)                                                                                                  (50,111)       (f)                                                            315          (f)


                                                                                                                                                                                                             (12,047)                  (g)                                                                                                    (2,845)       (g)                                                       (39,281)          (g)


                                                                                                                                                                                                                1,360                    (h)                                                                                                     1,035       (h)                                                           1,037           (h)


                                                                                                                                                                                                              (3,832)                   (i)                                                                                                    40,311        (i)                                                         18,605           (i)



            
                Net income attributable to SINA's ordinary shareholders                                                                                   $20,397                                      $46,644                                                  $67,041                                              $45,439              $22,216                          $67,655            $51,424                  $2,559                             $53,983

                                                                                                                                                                                                                                                                                                                                                                                                                                                                ===






            
                Diluted net income per share *                                                                                                              $0.28                                                                                                $0.94                                                $0.62                                                $0.93              $0.73                                                      $0.76

                                                                                                                                                                                                                                                                                                                                                                                                                                                                ===




            
                Shares used in computing diluted net income  per share                                                                                     70,019                                                                                               70,019                                               71,322                                               71,322             69,944                                                     69,944







            
                Gross margin - advertising                                                                                                                    83%                                          0%                                                     83%                                                 81%                  1%                             82%               80%                     1%                                81%




            
                Gross margin - non-advertising                                                                                                                63%                                         -1%                                                     62%                                                 71%                 -1%                             70%               61%                    -1%                                60%




            
                Operating margin                                                                                                                              25%                                          5%                                                     30%                                                 23%                  7%                             30%               24%                     5%                                29%





                                                                                                                                                                            
            
         Nine months ended



                                                                                                                                          
              
                September 30, 2019                                               
     
               September 30, 2018



                                                                                                                                                                                                                                               
              
             Non-GAAP                                                                                        
       
       Non-GAAP


                                                                                                                                          
              
                Actual               
          
                Adjustments                           
              
             Results                     
              
                Actual       
     
     Adjustments                
       
       Results






            
                Advertising revenues                                                                                                                   $1,282,753                                                                                           $1,282,753                                           $1,304,978                                           $1,304,978



            
                Non-advertising revenues                                                                                                                  286,888                                      (7,827)                   (a)                           279,061                                              230,335              (7,827)       (a)               222,508




            
                Net revenues                                                                                                                           $1,569,641                                     $(7,827)                                              $1,561,814                                           $1,535,313             $(7,827)                      $1,527,486





                                                                                                                                                                                                              (7,827)                   (a)                                                                                                   (7,827)       (a)


                                                                                                                                                                                                                8,604                    (b)                                                                                                     9,206        (b)




            
                Gross profit                                                                                                                           $1,212,455                                         $777                                               $1,213,232                                           $1,206,318               $1,379                       $1,207,697





                                                                                                                                                                                                                                                                                                                                             (68,530)       (b)


                                                                                                                                                                                                             (81,321)                   (b)                                                                                                   (4,512)       (c)


                                                                                                                                                                                                              (3,304)                   (c)                                                                                                  (10,554)       (d)



            
                Operating expenses                                                                                                                       $860,832                                    $(84,625)                                                $776,207                                             $869,418            $(83,596)                        $785,822





                                                                                                                                                                                                                                                                                                                                              (7,827)       (a)


                                                                                                                                                                                                              (7,827)                   (a)                                                                                                    77,736        (b)


                                                                                                                                                                                                               89,925                    (b)                                                                                                     4,512        (c)


                                                                                                                                                                                                                3,304                    (c)                                                                                                    10,554        (d)



            
                Income from operations                                                                                                                   $351,623                                      $85,402                                                 $437,025                                             $336,900              $84,975                         $421,875





                                                                                                                                                                                                                                                                                                                                              (7,827)       (a)


                                                                                                                                                                                                              (7,827)                   (a)                                                                                                    77,736        (b)


                                                                                                                                                                                                               89,925                    (b)                                                                                                     4,512        (c)


                                                                                                                                                                                                                3,304                    (c)                                                                                                    10,554        (d)


                                                                                                                                                                                                               14,705                   (e)                                                                                                    (7,290)       (e)


                                                                                                                                                                                                             (54,942)                   (f)                                                                                                  (40,941)       (f)


                                                                                                                                                                                                             (58,764)                   (g)                                                                                                  (19,877)       (g)


                                                                                                                                                                                                                3,432                    (h)                                                                                                     3,105        (h)


                                                                                                                                                                                                               55,140                    (i)                                                                                                    40,247        (i)



            
                Net income attributable to SINA's ordinary shareholders                                                                                  $104,904                                      $44,973                                                 $149,877                                             $109,185              $60,219                         $169,404








            
                Diluted net income per share *                                                                                                              $1.49                                                                                                $2.10                                                $1.48                                                $2.28






            
                Shares used in computing diluted net income per share                                                                                      69,909                                                                                               69,909                                               72,962                                               72,962







            
                Gross margin - advertising                                                                                                                    80%                                          1%                                                     81%                                                 80%                  1%                             81%




            
                Gross margin - non-advertising                                                                                                                63%                                         -1%                                                     62%                                                 68%                 -1%                             67%




            
                Operating margin                                                                                                                              22%                                          6%                                                     28%                                                 22%                  6%                             28%






            
                (a)  To exclude the recognition of deferred revenue related to the license granted to Leju.



            
                (b)  To exclude stock-based compensation.



            
                (c)  To adjust amortization of intangible assets.



            
                (d)  To exclude goodwill and acquired intangibles impairment.



            
                (e)  To exclude non-GAAP to GAAP reconciling items on the share of equity method investments, net of share of amortization
         of intangibles not on their books.



            
                (f)   To exclude (gain) loss on sale of investments, (gain) loss on deemed disposal, fair value changes and impairment on investments, net.



            
                (g)  To exclude non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests.



            
                (h)  To exclude the amortization of convertible debt and senior notes issuance cost.



            
                (i)   To exclude the provision (benefit) for income tax related to item (c), (d) and (f). Other non-GAAP to GAAP reconciling items have no
         income tax effect.**





            *   
              Net income attributable to SINA's ordinary shareholders is adjusted for diluted shares issued by our subsidiary and
      equity method investments.



            ** 
              The Company considered the tax implication arising from the reconciliation items, and those items recorded in entities
      in tax free jurisdictions were without relevant tax implications. For impairment on investments, valuation allowances
      were made for those differences the Company does not expect they can be realized in the foreseeable future.



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




                                                                                                                                                                                                                   
              
         Three months ended

                                                                                                                                                                                                                                                                                                    ---

                                                                                                                                                                               
     
        September 30, 2019                          
        
                September 30, 2018                                  
       
       June 30, 2019



                                                                                                                                                                                      Actual             
       
          Adjustments                                        
        
        Non-GAAP Results         
       
        Actual            
     
     Adjustments      
        
        Non-GAAP Results         Actual             
     
     Adjustments        
     
     Non-GAAP Results





        
             
                To exclude stock-based compensation                                                                                                                                                          $259                                                                                                                  $674                                                                        $178


        
             
                To exclude amortization of intangible assets resulting

        
             
                   from business acquisitions                                                                                                                                                               1,048                                                                                                                 1,079                                                                       1,048


                               To exclude loss on disposal and impairment on investments, net                                                                                            815                                                                                                                                   1,245                                                                         90


        
             
                
                  To exclude (gain) loss resulting from the fair value changes in                                                                                                              2,837                                                                                                               (9,187)                                                                    (5,525)
          investments, net


                               To exclude tax impacts related to amortization of intangible assets                                                                                     (245)                                                                                                                                  (263)                                                                     (244)


        
             
                Earning (loss) from equity method investments, net                                                                                                     $1,173                               $4,714                                                                $5,887               $9,723                     $(6,452)                             $3,271      $3,888                      $(4,453)                      $(565)


        
             
                Share of amortization of equity investments' intangibles      not on their books                                                                          375                                (375)                                                                                      364                        (364)                                           365                         (365)


                                                                          Share of tax impacts related to amortization of 
     
               
              
         
     equity investments'
                                                                           intangibles not on their books                                                                                 60                                 (60)                                                                                       63                         (63)                                            63                          (63)


                                                                                                                                                                                      $1,608                               $4,279                                                                $5,887              $10,150                     $(6,879)                             $3,271      $4,316                      $(4,881)                      $(565)







                                                                                                                                                                                                      
        
       Nine months ended



                                                                                                                                                                               
     
        September 30, 2019                          
        
                September 30, 2018



                                                                                                                                                                                                                                                                         
        
          Non-GAAP                                                               
        
          Non-GAAP


                                                                                                                                                                                      Actual             
       
          Adjustments                                           
        
          Results             
       
        Actual            
     
     Adjustments         
        
          Results





        
             
                To exclude stock-based compensation                                                                                                                                                          $724                                                                                                                $2,091


                               To exclude amortization of intangible assets resulting  
              
              
                
       from business acquisitions                                                                   3,158                                                                                                                 3,317


                               To exclude loss on disposal and impairment on investments, net                                                                                          7,618                                                                                                                                   2,989


        
             
                To exclude (gain) loss resulting from the fair value changes in                                                                                                                             5,227                                                                                                              (13,839)

        
                investments, net


                               To exclude tax impacts related to amortization of intangible assets                                                                                     (737)                                                                                                                                  (694)


        
             
                Earning (loss) from equity method investments, net                                                                                                  $(11,614)                             $15,990                                                                $4,376               $4,697                     $(6,136)                           $(1,439)


        
             
                Share of amortization of equity investments' intangibles                                                                                                1,098                              (1,098)                                                                                      939                        (939)

        
                not on their books


        
             
                Share of tax impacts related to amortization of                                                                                                           187                                (187)                                                                                      215                        (215)

        
                equity investments' intangibles not on their books


                                                                                                                                                                                   $(10,329)                             $14,705                                                                $4,376               $5,851                     $(7,290)                           $(1,439)







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

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SOURCE SINA Corporation