Sina meets consensus and guides in-line; shows strong ad revenue growth; SMS and MMS weak; margins decline (SINA 2Q05 earnings results)

Aug. 3.05 | About: Sina Corporation (SINA)

Sina (ticker: SINA) reported Q2 2005 earnings results that met consensus estimates. Key stats from the quarter:


Q2 Results:
(all percentage changes and comparisons are year on year, unless stated otherwise)

  • Total revenue fell 6.2% to $46.1 million vs consensus estimate of $46.49 million.
  • Advertising revenue rose 31.1% to $20.4 million.
  • Non-advertising revenue fell 23.5% to $25.8 million.
  • SMS revenue fell 23% sequentially to $15.6 million.
  • MMS revenue fell 11% sequentially to $2.0 million.
  • IVR and other 2.5G services revenue rose 24% sequentially to $5.0 million.
  • Gross margin was 68.9% vs 70.9%.
  • Operating expenses rose 26.6% to $20.4 million.
  • Sales and marketing expenses rose 18.1% to $10.7 million.
  • Product development expenses rose 64.3% to $3.5 million.
  • G&A expenses rose 28.9% to $5.1 million.
  • Operating income fell 39.2% to $11.4 million.
  • Operating margin was 24.8% vs 38.2%.
  • US GAAP net income fell 44.8% to $10.0 million.
  • US GAAP diluted EPS of $0.17 vs $0.31.
  • Non-US GAAP net income fell 35% to $12.5 million.
  • Non-US GAAP diluted EPS of $0.21 vs $0.33, and vs consensus estimate of $0.21.

Q3 Guidance

  • Total revenue of $49.0 - $52.0 million vs consensus estimate of $51.1 million.
  • Advertising revenue of $22.5 - $23.5 million.
  • Non-advertising revenue of $26.5 - $28.5 million.
  • Non-GAAP net income of $13.0 - $14.0 million.

Balance Sheet

  • Cash and equivalents of $284.1 million as of June 30, 2005.