BEIJING, Nov. 24, 2013 /PRNewswire/ -- Qihoo 360
Technology Co. Ltd. ("Qihoo 360" or the "Company") (NYSE:
QIHU), a leading Internet company in China, today reported its
unaudited financial results for the quarter ended September 30, 2013.
Third Quarter Financial Highlights1
- Revenues were $187.9 million, a
124% increase from $84.0
million in the third quarter of 2012.
- Net income attributable to Qihoo 360 was $44.5 million, compared to $12.9 million in the third quarter of 2012.
- Non-GAAP net income attributable to Qihoo 360 (1)
was $61.5 million, compared to
$24.2 million in the third quarter of
2012.
- Diluted earnings per ADS(2) ("EPADS")
attributable to Qihoo 360 was $0.35,
compared to $0.11 in the same period
last year.
- Non-GAAP diluted EPADS attributable to Qihoo 360 (1)
was $0.47, compared to $0.20 in the same period last year.
Third Quarter Operating Metrics
- Total monthly active users of Qihoo 360's PC-based products and
services reached a record 465 million in September 2013, compared to 442 million in
September 2012(3).
- User penetration of Qihoo 360's PC-based products was 94% in
September 2013, compared to 95% in
September 2012 (3).
- Total smartphone users of 360 Mobile Safe, Qihoo 360's primary
mobile security product, reached a record 408 million in
September 2013, compared to 149
million in September 2012.
- Monthly active users of Qihoo 360's browsers reached a record
342 million in September 2013,
compared to 303 million in September
2012 (3).
- User penetration of Qihoo 360's browsers was 69% in
September 2013, compared to 65% in
September 2012 (3).
- Average daily unique visitors to the 360 Personal Start-up Page
and its sub-pages were 126 million in the third quarter of 2013,
compared to 89 million in the third quarter of 2012.
- Average daily clicks on Qihoo 360's Personal Start-up Page and
its sub-pages were approximately 681 million in the third quarter
of 2013, compared to 451 million in the third quarter of 2012.
"We are very excited to report another quarter of success in all
key areas of our business," said Mr. Hongyi
Zhou, Chairman and Chief Executive Officer of Qihoo 360. "In
addition to achieving record revenue and profitability, we
strengthened our leadership position in key product categories and
made significant inroads into new markets. With our PC security
products covering nearly 95% of Chinese PC Internet users, and our
mobile security solutions covering approximately 70% of Chinese
smartphone users, Qihoo 360 remains the indisputable leader in
Internet security in China. In
addition, monthly active users of our PC browsers represented
almost 70% of the Chinese PC Internet population. As we further
established our leadership position in the PC Internet market, we
have been making significant progress in the fast growing mobile
Internet space. Our Android app store – 360 Mobile Assistant,
maintained its position at the forefront of the industry and is
increasingly becoming the most effective launch platform for
Android app developers, despite the dynamic landscape and fierce
competition."
"During the quarter, we continued to gain notable search traffic
market share and, based on a third party report, we have already
achieved our year-end search traffic share goal several months
ahead of schedule. Looking ahead, we will continue to invest in
product development and technology innovation, setting the stage
for Qihoo 360 to capture a significant portion of the search market
in both PC and mobile Internet and eventually reshape this vast
industry in China. While our
search monetization is still in its early stages, we have made
significant progress. We believe that search and mobile
monetization will drive substantial long-term growth for our
business," concluded Mr. Zhou.
Mr. Xiangdong Qi, President of
Qihoo 360, added, "We saw accelerated growth in key business lines
in the third quarter. Online advertising revenue grew 107%
year-over-year, bolstered by further development of our
monetization process and incremental contributions from both search
and mobile monetization. Internet value-added services once again
outpaced the market and achieved revenue growth of 163%
year-over-year with strong momentum in mobile games. While search
and mobile monetization are still in their nascent stages, they
ramped up faster than expected, and will become major catalysts for
future growth. As the competitive environment rapidly changes
in China, we will continue to make
proactive investments in product and technology development to
drive our leadership positions forward and expand our footprint,
particularly in mobile Internet and search technology, where we see
tremendous opportunities for expansion. Meanwhile, we are gradually
building our sales and marketing infrastructure to support our
monetization efforts. We believe these investments will fortify our
foundation, support sustainable growth and drive long-term
shareholder value."
Third Quarter 2013 Results
Revenues
Revenues were $187.9 million,
representing an increase of 124% from $84.0 million in
the third quarter of 2012 and an increase of 24% from $151.7 million in the second quarter of 2013. The
strong year-over-year growth in revenues was mainly due to
continued momentum in both online advertising and Internet
value-added services.
Online advertising revenues were $120.7
million, representing an increase of 107% from the same
period last year and an increase of 33% from the prior quarter. The
strong year-over-year increase was primarily driven by increased
monetization of user activities on 360 Search and Personalized
Start-up Pages. The robust quarter-over-quarter growth was also
due, in part, to a strong ramp-up in search monetization.
Internet value-added service revenues, which are mainly derived
from game platform operations, were $67.0
million, up 163% from the same period last year and 10% from
the prior quarter. The strong year-over-year increase was mainly
driven by solid growth in the Company's paying game user base and
expanded games portfolio.
Cost of Revenues
Cost of revenues were $25.9
million, compared to $7.9
million in the third quarter of 2012 and $17.8 million in the second quarter of 2013,
representing increases of 228% and 45%, respectively.
Operating Expenses
Operating expenses were $111.2
million, compared to $63.9
million in the third quarter of 2012 and $97.2 million in the prior quarter. Non-GAAP
operating expenses were $95.3
million, compared to $52.6
million in the third quarter of 2012 and $79.3 million in the prior quarter.
The year-over-year and sequential increases in non-GAAP
operating expenses were mainly driven by increased sales and
marketing expenses, personnel-related costs, and bandwidth and
equipment depreciation expenses, as the Company continued to
enhance its technology and product development capabilities and
strengthen its brand in mobile Internet and search.
Operating Income
Operating income was $50.8
million, compared to $12.2
million in the third quarter of 2012 and $36.6 million in the prior quarter.
Non-GAAP operating income was $66.7
million, compared to $23.5
million in the third quarter of 2012 and $54.5 million in the prior quarter.
Operating margin was 27.0%, compared to 14.5% in the third
quarter of 2012 and 24.1% in the prior quarter.
Non-GAAP operating margin was 35.5%, compared to 28.0% in the
third quarter of 2012 and 36.0% in the prior quarter.
The year-over-year increase in non-GAAP operating margin was
mainly due to strong revenue growth while the Company continued to
invest in new products and business initiatives.
Net Income
attributable to Qihoo 360
Net income attributable to Qihoo 360 was $44.5 million,
compared to $12.9 million in the
third quarter of 2012 and $33.0
million in the prior quarter.
Non-GAAP Net income attributable to Qihoo 360 was $61.5 million, compared to $24.2 million in the third quarter of 2012 and
$51.0 million in the prior
quarter.
Net Margin
Net margin was 23.7%, compared to 15.4% in the same period last
year and 21.8% in the prior quarter.
Non-GAAP net margin was 32.7%, compared to 28.8% in the same
period last year and 33.6% in the prior quarter. The year-over-year
improvement in non-GAAP net margin was mainly due to strong
revenue growth.
Diluted Earnings per ADS
Diluted EPADS for the third quarter of 2013 was $0.35, compared to $0.11 in the third quarter of 2012 and
$0.26 in the prior quarter.
Non-GAAP diluted EPADS for the third quarter of 2013 was
$0.47, compared to $0.20 in the same period last year and
$0.40 in the prior quarter.
Both GAAP and non-GAAP weighted average ADS used in computing
diluted EPADS was 131.3 million.
Cash Flows and Balance Sheet
Net cash generated from operations in the third quarter of 2013
was $75.0 million, compared to
$20.7 million in the same period last
year and $86.4 million in the prior
quarter. Cash capital expenditures were $32.2 million. As of September 30, 2013, the Company had cash and cash
equivalents of $1,003.6 million.
Business Outlook
For the fourth quarter of 2013, the Company expects revenues to
be between $206 million and $208
million, representing a year-over-year increase of 100% to
102%. For the full year 2013, the Company expects revenues to be
between $655 million and $657
million, representing a year-over-year increase of
approximately 100%. These estimates reflect the Company's current
and preliminary view, which is subject to possible material
changes.
Conference Call
Qihoo 360's management will host a conference call to
discuss the results at 7:30 a.m. Eastern
Time on November 25, 2013 (8:30
p.m. Beijing time on November 25, 2013).
The dial-in details for the live conference call are:
US Toll Free Dial
In:
|
+1
866-590-5622
|
International Dial
In:
|
+65 6723
9382
|
Hong Kong Dial
In:
|
+852-2521-4709
|
Passcode:
|
98160358
|
A telephone replay of the call will be available after the
conclusion of the conference call at 10:30 a.m. Eastern
Time on November 25,
2013 through 7:00 a.m. Eastern Time on December
3, 2013. The dial-in details for the replay are:
US Dial
In:
|
+1
646-254-3697
|
International Dial
In:
|
+61 2 8199
0299
|
Passcode:
|
98160358
|
A live webcast of the conference call will be available on the
investor relations section of Qihoo 360's website at:
http://corp.360.cn.
About Qihoo 360
Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) is a leading Internet
company in China. The Company is
also the number one provider of Internet and mobile security
products in China as measured by
its user base, according to iResearch. Qihoo 360 also provides
users with secure access points to the Internet via its market
leading web browsers and application stores. The Company has built
one of the largest open Internet platforms in China and monetizes its massive user base
primarily through online advertising and through Internet
value-added services on its open platform.
Forward-looking Statements
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward- looking statements by
terminology such as "will," "expects," "believes," "anticipates,"
"intends," "estimates" and similar statements. Among other things,
the management's quotations and the "Business Outlook" section
contain forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and
projections about Qihoo 360 and the industry. Potential risks and
uncertainties include, but are not limited to: the Company's
ability to continue to innovate and provide attractive products and
services to attract and retain users; the Company's ability to keep
up with rapid changes in technologies and Internet-enabled devices;
the Company's ability to leverage its user base to attract
customers for our revenue-generating services; and the Company's
dependence on online advertising for a substantial portion of our
revenues; and the Company's ability to compete effectively. All
information provided in this press release is as of the date of the
press release, and Qihoo 360 undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although Qihoo 360 believes that the expectations
expressed in these forward-looking statements are reasonable, it
cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ
materially from the anticipated results. Further information
regarding risks and uncertainties faced by Qihoo 360 is included in
Qihoo 360's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F dated
April 19, 2013.
About Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
U.S. GAAP, we use non-GAAP financial measure, which is adjusted
from results based on U.S. GAAP to exclude share-based compensation
expenses and interest expense of Convertible Senior Notes.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP
financial measures are set forth in tables at the end of this
earnings release, which provide more details on the non-GAAP
financial measures.
Our non-GAAP financial information is provided as additional
information to help our investors compare business trends among
different reporting periods on a consistent basis and to enhance
investors' overall understanding of the historical and current
financial performance of our continuing operations and our
prospects for the future. Our non-GAAP financial information should
be considered in addition to results prepared in accordance with
U.S. GAAP, but should not be considered a substitute for or
superior to U.S. GAAP results. In addition, our calculation of this
non-GAAP financial information may be different from the
calculation used by other companies, and therefore comparability
may be limited.
For investor and
media inquiries, please contact:
|
|
Qihoo 360 Technology
Co. Ltd.
|
In China:
|
Tel: +86
10-5878-1574
|
E-mail:
ir@360.cn
|
|
In the
U.S.:
|
The Piacente Group,
Inc.
|
Kathy
Price
|
Tel: (212)
481-2050
|
E-mail:
qihu@tpg-ir.com
|
Qihoo 360
Technology Co. Ltd.
|
Condensed
Consolidated Balance Sheets
|
(U.S. dollars in
thousands, except for shares and per share data)
|
(Unaudited)
|
|
December
31,
2012
|
September
30,
|
|
2013
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
380,664
|
1,003,583
|
Restricted
Cash
|
1,905
|
300
|
Trading
securities
|
179
|
790
|
Accounts
receivable (net of allowance for doubtful accounts of $213 and $30
as
of December 31, 2012 and
September 30, 2013, respectively)
|
23,591
|
40,710
|
Prepaid
expenses and other current assets
|
26,802
|
43,163
|
Amount due
from related party
|
-
|
2,695
|
Deferred tax
assets – current
|
2,131
|
2,807
|
Total current
assets
|
435,272
|
1,094,048
|
Property and
equipment, net
|
126,035
|
150,092
|
Land use rights,
net
|
73,645
|
75,313
|
Acquired intangible
assets, net
|
12,310
|
18,297
|
Goodwill
|
4,628
|
22,865
|
Long-term
investments
|
27,559
|
30,437
|
Other noncurrent
assets
|
9,335
|
37,641
|
Deferred tax assets –
noncurrent
|
745
|
890
|
TOTAL
ASSETS
|
689,529
|
1,429,583
|
LIABILITIES
|
|
|
Current
liabilities:
|
|
|
Accounts
payable (including accounts payable of the consolidated
|
|
|
VIEs without recourse
to Qihoo 360 Technology Co. Ltd. of
|
|
|
$7,109 and
$21,085 as of December 31, 2012 and September 30, 2013,
respectively)
|
7,109
|
22,606
|
Accrued
expenses and other current liabilities (including
accrued
|
|
|
expenses and other
current liabilities of the consolidated VIEs
|
|
|
without
recourse to Qihoo 360 Technology Co. Ltd. of
|
|
|
$41,636 and
$59,683 as of December 31, 2012 and September 30, 2013,
respectively)
|
168,694
|
99,545
|
Deferred
revenue-current (including deferred revenue-current of
the
|
|
|
consolidated VIEs
without recourse to Qihoo 360 Technology Co. Ltd. of
$17,520 and
$29,065 as of December 31, 2012 and September 30, 2013,
respectively)
|
|
21,049
|
42,153
|
Income tax payable
(including income tax payable of the consolidated VIEs
without recourse to Qihoo 360
Technology Co. Ltd. of $2,710 and $646 as of
December 31, 2012 and September 30,
2013, respectively)
|
|
6,862
|
10,727
|
|
|
|
|
Total current
liabilities
|
203,714
|
175,031
|
Deferred tax
liabilities – noncurrent
|
790
|
2,784
|
Deferred
revenue-noncurrent (including deferred revenue-noncurrent of
the
consolidated VIEs without recourse to Qihoo 360
Technology Co. Ltd. of
$3,242 and $1,403 as of December 31, 2012 and
September 30, 2013,
respectively)
|
|
6,762
|
4,281
|
|
|
|
|
Long-term
debt
|
|
-
|
600,000
|
TOTAL
LIABILITIES
|
211,266
|
782,096
|
EQUITY
|
|
|
|
Total Qihoo 360
Technology Co. Ltd. Shareholders' equity
|
478,096
|
635,234
|
Noncontrolling
interest
|
167
|
12,253
|
Total
equity
|
478,263
|
647,487
|
TOTAL LIABILITIES AND
EQUITY
|
689,529
|
1,429,583
|
Qihoo 360
Technology Co. Ltd.
|
Condensed
Consolidated Statements of operations
|
(U.S. dollars in
thousands, except for shares and per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
Nine Months
Ended
|
|
September 30,
2012
|
June 30,
2013
|
September 30,
2013
|
|
September 30,
2012
|
September 30,
2013
|
Revenues:
|
|
|
|
|
|
|
Internet
services
|
84,028
|
151,666
|
187,928
|
|
225,931
|
449,471
|
Sales of third
party anti-virus software
|
7
|
-
|
-
|
|
150
|
-
|
Total
revenues
|
84,035
|
151,666
|
187,928
|
|
226,081
|
449,471
|
Cost of
revenues:
|
|
|
|
|
|
|
Internet
services
|
7,901
|
17,846
|
25,906
|
|
22,113
|
57,658
|
Sales of third
party anti-virus software
|
3
|
-
|
-
|
|
40
|
-
|
Total cost of
revenues
|
7,904
|
17,846
|
25,906
|
|
22,153
|
57,658
|
Subsidy
income
|
-
|
-
|
2
|
|
142
|
5
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
marketing
|
13,909
|
23,997
|
28,057
|
|
39,562
|
79,116
|
General and
administrative
|
8,535
|
12,918
|
14,707
|
|
23,845
|
39,520
|
Product
development(a)
|
41,475
|
60,331
|
68,458
|
|
104,100
|
179,000
|
Total operating
expenses
|
63,919
|
97,246
|
111,222
|
|
167,507
|
297,636
|
|
|
|
|
|
|
|
Income from
operations
|
12,212
|
36,574
|
50,802
|
|
36,563
|
94,182
|
Interest
income
|
1,699
|
1,778
|
2,155
|
|
5,057
|
5,370
|
Interest
expenses
|
-
|
-
|
(1,186)
|
|
-
|
(1,186)
|
Other income
(expense)
|
54
|
(110)
|
266
|
|
470
|
155
|
Exchange gain
(loss)
|
1,102
|
1,424
|
418
|
|
(917)
|
2,203
|
Impairment loss
on long-term investments
|
(157)
|
(1,301)
|
-
|
|
(157)
|
(1,301)
|
Change on fair value
of trading securities
|
(44)
|
31
|
68
|
|
(58)
|
122
|
Dividend income from
a cost method
investee
|
-
|
-
|
-
|
|
-
|
174
|
Gain on disposal of
Long-term
investments
|
1,282
|
-
|
999
|
|
2,742
|
999
|
(Loss) Gain on
disposal of a subsidiary
|
-
|
-
|
(1,144)
|
|
3,566
|
(1,144)
|
Income before income
tax expense and
loss from equity method investments
|
16,148
|
38,396
|
52,378
|
|
47,266
|
99,574
|
|
|
|
|
|
|
|
Income tax
expense
|
(1,497)
|
(4,278)
|
(7,798)
|
|
(9,940)
|
(14,293)
|
Loss from equity
method investments
|
(1,932)
|
(905)
|
(656)
|
|
(3,490)
|
(2,582)
|
|
|
|
|
|
|
|
Net income
|
12,719
|
33,213
|
43,924
|
|
33,836
|
82,699
|
|
|
|
|
|
|
|
Add: Net income
(loss) attributable to
noncontrolling interest
|
212
|
(216)
|
532
|
|
158
|
305
|
Net income
attributable to
|
|
|
|
|
|
|
Qihoo 360
Technology Co. Ltd.
|
12,931
|
32,997
|
44,456
|
|
33,994
|
83,004
|
|
|
|
|
|
|
|
Net income per
ordinary share-basic
|
0.07
|
0.18
|
0.25
|
|
0.19
|
0.46
|
Net income per
ordinary share-diluted
|
0.07
|
0.17
|
0.23
|
|
0.19
|
0.44
|
|
|
|
|
|
|
|
Weighted average
shares used in
calculating net income per ordinary
share- basic (in millions)(b)
|
176
|
179
|
181
|
|
176
|
180
|
Weighted average
shares used in
calculating net income per ordinary
share-diluted (in millions)(b)
|
183
|
191
|
197
|
|
183
|
192
|
|
(a): 3 Ordinary
Shares = 2 ADSs
|
Qihoo 360
Technology Co. Ltd.
|
Condensed
Consolidated Statements of Cash Flows
|
(U.S. dollars in
thousands)
|
(Unaudited)
|
|
|
|
|
|
Three-month period
ended
|
|
|
September
30, 2012
|
September
30, 2013
|
Cash flows from
operating activities:
|
|
|
Net income
|
12,719
|
43,924
|
Share-based
compensation
|
11,299
|
15,874
|
Depreciation and
amortization
|
4,443
|
11,349
|
Amortization of land
use rights
|
-
|
435
|
Loss on disposal of
fixed assets
|
-
|
1
|
Loss on equity method
investments
|
1,932
|
656
|
Loss on disposal of a
subsidiary
|
-
|
1,144
|
Gain on disposal of
long-term investments
|
(1,282)
|
(999)
|
Impairment on
long-term investment
|
157
|
-
|
Unrealized holding
gain on trading securities
|
44
|
(68)
|
Provision of
allowance for doubtful accounts
|
201
|
-
|
Changes in operating
assets and liabilities
|
(8,805)
|
2,657
|
Net cash provided
by operating activities
|
20,708
|
74,973
|
Cash flows from
investing activities:
|
|
|
Purchase of property
and equipment and intangible assets
|
(31,983)
|
(32,195)
|
Net cash acquired
(Consideration paid) in connection
with business acquisition
|
443
|
(8,591)
|
Payment for long-term
investments
|
(7,304)
|
(3,028)
|
Cash collected from
sale of a subsidiary and long-term
investments
|
4,202
|
2,365
|
Proceeds from
disposal of property and equipment
|
1,023
|
-
|
Deconsolidation of a
subsidiary
|
-
|
(3,306)
|
Net cash used in
by investing activities
|
(33,619)
|
(44,755)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Capital contribution
from noncontrolling interest
|
35
|
653
|
Prepayment for share
repurchase
|
(139)
|
-
|
Proceeds from
exercise of stock option
|
1,063
|
6,234
|
Proceeds from
issuance of Convertible Bonds (net of
issuance cost of $12,150)
|
-
|
587,850
|
Net cash provided
by financing activities
|
959
|
594,737
|
|
|
|
Effect of exchange
rate changes
|
1,080
|
647
|
(DECREASE) INCREASE
IN CASH
|
(10,872)
|
625,602
|
CASH, BEGINNING OF
PERIOD
|
358,895
|
377,981
|
CASH, END OF
PERIOD
|
348,023
|
1,003,583
|
Reconciliations of
Non-GAAP Financial Measures to Comparable GAAP
Measures
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2012
|
|
Three Months Ended
June 30, 2013
|
|
|
Three Months Ended
September 30, 2013
|
|
GAAP
|
Adjustment(b)
|
Non-
GAAP
|
|
GAAP
|
Adjustment(b)
|
Non-
GAAP
|
|
GAAP
|
Adjustment(b)
|
Adjustment
(c)
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$63,919
|
($11,299)
|
$52,620
|
|
$97,246
|
($17,962)
|
$79,284
|
|
$111,222
|
($15,874)
|
-
|
$95,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$12,212
|
$11,299
|
$23,511
|
|
$36,574
|
$17,962
|
$54,536
|
|
$50,802
|
$15,874
|
-
|
$66,676
|
Operating
margin
|
14.5%
|
|
28.0%
|
|
24.1%
|
|
36.0%
|
|
27.0%
|
|
|
35.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
Qihoo 360
Technology
Co. Ltd.
|
$12,931
|
$11,299
|
$24,230
|
|
$32,997
|
$17,962
|
$50,959
|
|
$44,456
|
$15,874
|
$1,186
|
$61,516
|
Net margin
|
15.4%
|
|
28.8%
|
|
21.8%
|
|
33.6%
|
|
23.7%
|
|
|
32.7%
|
Diluted
earnings per
ADS
|
$0.11
|
|
$0.20
|
|
$0.26
|
|
$0.40
|
|
$0.35
|
|
|
$0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2012
|
|
Nine Months Ended
September 30, 2013
|
|
|
GAAP
|
Adjustment(b)
|
Non-GAAP
|
|
GAAP
|
Adjustment(b)
|
Adjustment
(c)
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$167,507
|
($36,625)
|
$130,882
|
|
$297,636
|
($45,803)
|
-
|
$251,833
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$36,563
|
$36,629
|
$73,192
|
|
$94,182
|
$45,803
|
-
|
$139,985
|
Operating
margin
|
16.2%
|
|
32.4%
|
|
21.0%
|
|
|
31.1%
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
attributable to Qihoo
360 Technology Co.
Ltd.
|
$33,994
|
$36,629
|
$70,623
|
|
$83,004
|
$45,803
|
$1,186
|
$129,993
|
Net margin
|
15.0%
|
|
31.2%
|
|
18.5%
|
|
|
28.9%
|
Diluted earnings
per
ADS
|
$0.28
|
|
$0.58
|
|
$0.66
|
|
|
$1.01
|
|
|
|
|
|
|
|
|
|
(b): Adjustment
to exclude the share-based compensation expense of each
period.
|
(c): Adjustment to
exclude the interest expense of Convertible Senior Notes of each
period.
|
[1] Non-GAAP measures and related reconciliations to GAAP
measures are described in the accompanying sections titled "About
Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP
Financial Measures to Comparable GAAP Measures" at the end of the
press release.
[2] American Depositary Shares, which are traded on the NYSE.
Every two ADSs represent three Class A ordinary shares of the
Company.
3 User and market penetration data is based on data from
iResearch as of September 2013.
SOURCE Qihoo 360 Technology Co. Ltd.