BEIJING, Nov. 19, 2012 /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 third quarter ended
September 30, 2012.
Third Quarter Financial Highlights[1]
- Revenues were $84.0 million, a
77% increase from $47.5
million in the third quarter of 2011.
- Net income attributable to Qihoo 360 was $12.9 million, an 18% increase from $10.9 million in the third quarter of 2011.
- Net income attributable to Qihoo 360 excluding share-based
compensation (non-GAAP)[1] was $24.2
million, a 24% increase from $19.5
million in the third quarter of 2011.
- Diluted earnings per ADS[2] ("EPADS") attributable to Qihoo 360
was $0.11 compared to $0.09 in the same period last year.
- Diluted EPADS attributable to Qihoo 360 excluding share-based
compensation (non-GAAP)[1] was $0.20
compared to $0.16 in the same year
ago period.
Third Quarter Operating Metrics
- Total monthly active users of Qihoo 360's products and services
reached a record 442 million in September
2012, compared to 370 million in September 2011[3].
- User penetration of Qihoo 360's products was 95% in
September 2012, compared to 89% in
September 2011[3].
- Total smartphone users of Qihoo 360's mobile security
products[4] reached approximately 149 million in September 2012.
- Monthly active users of Qihoo 360's browsers reached a record
303 million in September 2012,
compared to 235 million in September 2011[3].
- User penetration of Qihoo 360's browsers was a record 65% in
September 2012, compared to 57% in
September 2011[3].
- Average daily unique visitors to the 360 Personal Start-up Page
and its sub-pages were 89 million in the third quarter of 2012,
compared to 55 million in the third quarter of 2011.
- Average daily clicks on Qihoo 360's Personal Start-up Page and
its sub-pages were approximately 451 million in the third quarter
of 2012, compared to 185 million in the third quarter of 2011.
- Paying users of Qihoo 360's game platform were approximately
182,000 in September 2012, compared
to 148,000 in June 2012.
|
[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
2012.
|
|
|
[4] Referring to 360
Mobile Safe, the company's main mobile security product.
|
"The third quarter of 2012 marks
our seventh straight quarter of robust revenue growth since the
Company's IPO last year. We continue to outperform the growth rate
of the industry, despite the macro economic challenges that persist
in the market," said Mr. Hongyi
Zhou, Chairman and Chief Executive Officer of Qihoo
360. "Monthly active users of our PC-based products and
services, which cover approximately 95% of the Chinese PC Internet
population, increased to 442 million as of September 2012. Additionally, the number of
smartphone users of our key mobile security product – 360 Mobile
Safe reached 149 million and we further strengthened our
established leadership in this field."
"We believe our success is largely driven by our company-wide
focus on innovation in product and technology, attention to
customer satisfaction, as well as superior execution capabilities.
A major milestone during the third quarter was our launch of 360
search services. We recently began to publicly test our search
engine monetization system and we believe that our search services
will capture a meaningful share of the market and have a long-term
transformative effect on our business model."
"We also believe that the products and services we launched
earlier this year will continue to enhance our monetization
capabilities in the coming quarters despite the macro headwinds in
the Chinese economy," concluded Mr. Zhou.
Mr. Xiangdong Qi, President of
Qihoo 360, added, "We are thrilled to have surpassed our revenue
guidance and internal profitability targets this quarter even
though the overall industry experienced slower growth. Our online
advertising business continued to deliver solid growth, supported
by a robust increase in our user activity on Qihoo's Personal
Start-up Page. Internet value-added services also outpaced the
market with a 111% year-over-year increase in revenue driven by
strong momentum in paying user growth. As we previously stated, we
have made proactive investments in product and technology
development to continue our innovation and expand our footprint,
particularly in mobile Internet and search technology. We believe
that the investment will support sustainable growth for our company
and drive long-term shareholder value."
Third Quarter 2012 Results
Revenues
Revenues were $84.0 million,
representing an increase of 77.0% from $47.5 million in
the third quarter of 2011 and an increase of 15.5% from
$72.8 million in the second quarter
of 2012. The year-over-year and quarter-over-quarter increases in
revenues were mainly due to continued robust growth in both online
advertising and Internet value-added services.
Online advertising revenues were $58.4
million, up 66.5% from the same period last year and 14.8%
from the prior quarter. The robust year-over-year growth was
primarily driven by further market penetration of the Company's key
products, such as the 360 browsers and Personalized Start-up Pages,
and increased user activity, somewhat offset by a subdued macro
economy.
Internet value-added service revenues, which are mainly derived
from web game operations, were $25.5
million, up 110.8% from the same period last year and 17.8%
from the prior quarter. The strong year-over-year and sequential
growth was mainly driven by solid growth of the Company's paying
user base.
Cost of Revenues
Cost of revenues were $7.9
million, compared to $5.3
million in the third quarter of 2011 and $6.6 million in the second quarter of 2012,
representing increases of 47.8% and 19.1%, respectively.
Operating Expenses
Operating expenses were $63.9
million, compared to $31.4
million in the third quarter of 2011 and $56.4 million in the second quarter of 2012.
Operating expenses excluding share-based compensation (non-GAAP)
were $52.6 million, compared to
$22.7 million in the third quarter of
2011 and $42.7 million in the prior
quarter.
The year-over-year and sequential increases in non-GAAP
operating expenses were mainly driven by increased
personnel-related expenses, bandwidth expenses, equipment
depreciation expenses, as well as marketing expenses, as Qihoo 360
continued to strengthen its technology and product development
capabilities, and expanded into new business initiatives.
Operating Income
Operating income was $12.2
million, compared to $10.8
million in the third quarter of 2011 and operating income of
$9.9 million in the prior quarter.
Operating income excluding share-based compensation (non-GAAP)
was $23.5 million, compared to
$19.4 million in the third quarter of
2011 and $23.6 million in the prior
quarter.
Operating margin was 14.5%, compared to 22.7% in the third
quarter of 2011 and 13.6% in the prior quarter.
Operating margin excluding share-based compensation (non-GAAP)
was 28.0%, compared to 40.9% in the third quarter of 2011 and 32.4%
in the prior quarter.
The year-over-year and quarter-over-quarter decline in non-GAAP
operating margin was due to increased expenses related to new
business initiatives in search and mobile Internet.
Net Income
Net income attributable to Qihoo 360 was $12.9 million,
compared to $10.9 million in the
third quarter of 2011 and $7.0
million in the prior quarter.
Net income attributable to Qihoo 360 excluding share-based
compensation (non-GAAP) was $24.2
million, compared to $19.5
million in the third quarter of 2011 and $20.6 million in the prior quarter.
Net Margin
Net margin was 15.4%, compared to 23.0% in the same period last
year, and 9.6% in the prior quarter.
Net margin excluding share-based compensation (non-GAAP) was
28.8%, compared to 41.2% in the same period last year and 28.4% in
the prior quarter. The year-over-year decline in non-GAAP net
margin was due to increased expenses related to new business
initiatives in search and mobile Internet.
Diluted Earnings per ADS
Diluted EPADS for the third quarter of 2012 was $0.11, and diluted EPADS for the third quarter of
2012 excluding share-based compensation (non-GAAP) was $0.20. Both GAAP and non-GAAP weighted average
ADS used in computing diluted EPADS was 122.3 million.
Cash Flows and Balance Sheet
Net cash generated from operations in the third quarter of 2012
was $34.8 million. As of September 30, 2012, the Company had cash and cash
equivalents of $348.0 million.
Business Outlook
For the fourth quarter of 2012, the Company expects revenues to
be between $93 million and $94
million, representing a year-over-year increase of 49% -
51%. For the full year 2012, the Company expects revenues to be
between $319 million and $320
million, representing a year-over-year increase of
approximately 90%. 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 7:00 p.m. Eastern Time
on November 19, 2012 (8:00 a.m. Beijing time on November 20, 2012).
The dial-in details for the live conference call are:
|
US Toll Free Dial
In:
|
+1
866-519-4004
|
|
US Toll / International
Dial In:
|
+1
718-354-1231
|
|
Hong Kong Dial
In:
|
+852-2475-0994
|
|
Passcode:
|
QIHU
|
A telephone replay of the call will be available after the
conclusion of the conference call at 10:00
p.m. Eastern Time on November 19,
2012 through 07:00 a.m. Eastern
Time on November 27, 2012. The
dial-in details for the replay are:
|
International Dial
In:
|
+1
855-452-5696
|
|
US Dial In:
|
+1
646-254-3697
|
|
Passcode:
|
68469154
|
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, 2012.
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. 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.
Brandi Floberg or Lee Roth
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,
|
September
30,
|
|
2011
|
2012
|
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
343,731
|
348,023
|
|
Trading
securities
|
231
|
173
|
|
Accounts receivable (net of allowance for doubtful accounts of $68
and $120
as of December 31, 2011
and September 30, 2012, respectively)
|
16,741
|
20,512
|
|
Prepaid expenses and
other current assets
|
12,808
|
22,283
|
|
Deferred tax assets –
current
|
858
|
1,488
|
|
Total current
assets
|
374,369
|
392,479
|
|
Property and equipment,
net
|
16,665
|
52,880
|
|
Acquired intangible assets,
net
|
7,854
|
8,520
|
|
Goodwill
|
4,580
|
4,587
|
|
Long-term
investments
|
15,561
|
30,173
|
|
Other noncurrent
assets
|
4,415
|
26,386
|
|
Deferred tax assets –
noncurrent
|
514
|
517
|
|
TOTAL ASSETS
|
423,958
|
515,542
|
|
LIABILITIES
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
(including accounts payable of the consolidated VIEs
without
recourse to Qihoo 360
Technology Co. Ltd. of $5,872 and $5,860 as of
December 31, 2011 and
September 30, 2012, respectively)
|
5,872
|
5,860
|
|
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 $9,469 and $17,992 as of
December 31, 2011 and
September 30, 2012, respectively)
|
21,287
|
31,937
|
|
Deferred
revenue-current (including deferred revenue-current of the
consolidated
VIEs without recourse to
Qihoo 360 Technology Co. Ltd. of $9,831 and $14,135
as of December 31, 2011
and September 30, 2012, respectively)
|
12,089
|
17,020
|
|
Income tax payable
(including income tax payable of the consolidated VIEs
without
recourse to Qihoo 360
Technology Co. Ltd. of $3,635 and $3,740 as of
December 31, 2011 and
September 30, 2012, respectively)
|
7,312
|
7,238
|
|
Total current
liabilities
|
46,560
|
62,055
|
|
Deferred tax liabilities –
noncurrent
|
507
|
464
|
|
Other
noncurrent liabilities (including other noncurrent liabilities of
the consolidated VIEs
without recourse to Qihoo 360
Technology Co. Ltd. of $286 and $286 as of
December 31, 2011 and
September 30, 2012, respectively)
|
286
|
286
|
|
Deferred revenue-noncurrent
(including deferred revenue-noncurrent of the consolidated
VIEs without recourse to Qihoo
360 Technology Co. Ltd. of $1,589 and $3,033 as of
December 31, 2011 and
September 30, 2012, respectively)
|
5,113
|
5,842
|
|
TOTAL
LIABILITIES
|
52,466
|
68,647
|
|
EQUITY
|
|
|
|
Total Qihoo 360 Technology Co.
Ltd. Shareholders' equity
|
370,853
|
445,273
|
|
Noncontrolling
interest
|
639
|
1,622
|
|
Total equity
|
371,492
|
446,895
|
|
TOTAL LIABILITIES AND
EQUITY
|
423,958
|
515,542
|
|
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,
2011
|
June 30,
2012
|
September 30,
2012
|
|
September 30,
2011
|
September 30,
2012
|
|
Revenues:
|
|
|
|
|
|
|
|
Internet
services
|
47,289
|
72,751
|
84,028
|
|
104,792
|
225,931
|
|
Sales of third
party anti-virus software
|
201
|
19
|
7
|
|
738
|
150
|
|
Total
revenues
|
47,490
|
72,770
|
84,035
|
|
105,530
|
226,081
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Internet
services
|
5,296
|
6,629
|
7,901
|
|
11,638
|
22,113
|
|
Sales of third
party anti-virus software
|
53
|
8
|
3
|
|
200
|
40
|
|
Total cost of
revenues
|
5,349
|
6,637
|
7,904
|
|
11,838
|
22,153
|
|
Subsidy
income
|
9
|
135
|
-
|
|
143
|
142
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling and
marketing
|
8,943
|
13,799
|
13,909
|
|
36,585
|
39,562
|
|
General and
administrative
|
5,551
|
7,681
|
8,535
|
|
12,282
|
23,845
|
|
Product
development(a)
|
16,888
|
34,883
|
41,475
|
|
41,657
|
104,100
|
|
Total operating
expenses
|
31,382
|
56,363
|
63,919
|
|
90,524
|
167,507
|
|
|
|
|
|
|
|
|
Income from
operations
|
10,768
|
9,905
|
12,212
|
|
3,311
|
36,563
|
|
Interest income,
net
|
834
|
1,846
|
1,699
|
|
1,356
|
5,057
|
|
Other (expense)
income
|
(62)
|
82
|
54
|
|
(3)
|
470
|
|
Exchange gain
(loss)
|
2,946
|
(1,920)
|
1,102
|
|
3,575
|
(917)
|
|
Impairment loss on
long-term investment
|
-
|
-
|
(157)
|
|
-
|
(157)
|
|
Change on fair value of
trading securities
|
(218)
|
(68)
|
(44)
|
|
(157)
|
(58)
|
|
Gain on disposal of
subsidiaries and long-term investments
|
-
|
1,460
|
1,282
|
|
-
|
6,308
|
|
Income before income tax
expense and loss from equity method investments
|
14,268
|
11,305
|
16,148
|
|
8,082
|
47,266
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(3,460)
|
(3,400)
|
(1,497)
|
|
(7,846)
|
(9,940)
|
|
Loss from equity method
investments
|
(271)
|
(878)
|
(1,932)
|
|
(45)
|
(3,490)
|
|
|
|
|
|
|
|
|
Net income
|
10,537
|
7,027
|
12,719
|
|
191
|
33,836
|
|
|
|
|
|
|
|
|
Less: Net loss (income)
attributable to noncontrolling interest
|
367
|
(30)
|
212
|
|
378
|
158
|
|
Net income attributable
to
Qihoo 360
Technology Co. Ltd.
|
10,904
|
6,997
|
12,931
|
|
569
|
33,994
|
|
Accretion of Series A
convertible participating redeemable preferred shares
|
-
|
-
|
-
|
|
203
|
-
|
|
Accretion of Series B
convertible participating redeemable preferred shares
|
-
|
-
|
-
|
|
313
|
-
|
|
Accretion of Series C
convertible participating redeemable preferred shares
|
-
|
-
|
-
|
|
255
|
-
|
|
Net income (loss)
attributable to ordinary shareholders
|
10,904
|
6,997
|
12,931
|
|
(202)
|
33,994
|
|
Net income (loss) per
ordinary share-basic
|
0.06
|
0.04
|
0.07
|
|
(0.00)
|
0.19
|
|
Net income (loss) per
ordinary share-diluted
|
0.06
|
0.04
|
0.07
|
|
(0.00)
|
0.19
|
|
|
|
|
|
|
|
|
Weighted average shares
used in calculating net income per ordinary
share-basic (in millions)(b)
|
176
|
176
|
176
|
|
140
|
176
|
|
Weighted average shares
used in calculating net income per ordinary
share-diluted (in millions)(b)
|
181
|
183
|
183
|
|
171
|
183
|
|
|
|
|
|
|
|
|
(a): From Q3 2011, the
Company changed the "Research and development expenses" to "Product
development expenses" in the
statements of operations. This is mainly because the business has
been growing rapidly and along with the development of new
products, the Company has devoted more resources in enhancing its
existing products, by which the Company believes using
"Product development expenses" will better reflect the nature of
such expenses.
The Product development
expenses include costs associated with new product development and
enhancement for existing
products, such as salaries and benefits, including share-based
compensation expenses, costs of bandwidth and utilities,
license and technical service fees, and depreciation of equipment
and amortization of acquired intangible assets.
(b): 3 Ordinary Shares =
2 ADSs
|
|
Qihoo 360 Technology
Co. Ltd.
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(U.S. dollars in
thousands)
|
|
(Unaudited)
|
|
Three-months period
ended
|
|
Nine months period ended
|
|
September 30,
2011
|
September 30,
2012
|
|
September 30,
2011
|
September 30,
2012
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
10,537
|
12,719
|
|
191
|
33,836
|
|
Share-based
compensation
|
8,645
|
11,299
|
|
38,763
|
36,629
|
|
Depreciation and
amortization
|
1,254
|
4,443
|
|
2,592
|
9,523
|
|
Loss on equity method
investment
|
271
|
1,932
|
|
45
|
3,490
|
|
Gain on disposal of
subsidiaries and long-term investments
|
-
|
(1,282)
|
|
-
|
(6,308)
|
|
Impairment on long-term
investment
|
-
|
157
|
|
-
|
157
|
|
Unrealized holding loss
on trading securities
|
218
|
44
|
|
157
|
58
|
|
Provision of allowance
for doubtful accounts
|
-
|
201
|
|
51
|
282
|
|
Changes in operating
assets and liabilities
|
(684)
|
5,297
|
|
342
|
1,096
|
|
Net cash provided by
operating activities
|
20,241
|
34,810
|
|
42,141
|
78,763
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchase of property and
equipment and intangible assets
|
(5,271)
|
(46,085)
|
|
(10,007)
|
(66,614)
|
|
Payment for the purchase
of other assets
|
(378)
|
-
|
|
(1,108)
|
(459)
|
|
Proceeds from disposal
of property and equipment
|
-
|
1,023
|
|
-
|
1,023
|
|
Net cash acquired from
business acquisitions
|
1,793
|
443
|
|
328
|
258
|
|
Payment for trading
securities and long-term investment
|
(8,555)
|
(7,304)
|
|
(9,005)
|
(20,887)
|
|
Dividends received from
an investee
|
-
|
-
|
|
-
|
313
|
|
Cash collected from sale
of a subsidiary and long-term investments
|
-
|
4,202
|
|
-
|
9,843
|
|
Net cash used in
investing activities
|
(12,411)
|
(47,721)
|
|
(19,792)
|
(76,523)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from initial
public offering ("IPO")
|
-
|
-
|
|
233,021
|
-
|
|
Capital contribution
from noncontrolling interest
|
1,559
|
35
|
|
1,559
|
35
|
|
Prepayment for share
repurchase
|
-
|
(139)
|
|
-
|
(139)
|
|
Proceeds from exercise
of stock option
|
-
|
1,063
|
|
-
|
2,089
|
|
Net cash provided by
financing activities
|
1,559
|
959
|
|
234,580
|
1,985
|
|
|
|
|
|
|
|
Effect of exchange rate
changes
|
706
|
1,080
|
|
1,583
|
67
|
|
INCREASE (DECREASE) IN
CASH
|
10,095
|
(10,872)
|
|
258,512
|
4,292
|
|
CASH, BEGINNING OF
PERIOD
|
308,922
|
358,895
|
|
60,505
|
343,731
|
|
CASH, END OF
PERIOD
|
319,017
|
348,023
|
|
319,017
|
348,023
|
|
Reconciliations of
Non-GAAP Financial Measures to Comparable GAAP
Measures
|
|
Three Months Ended
September 30, 2011
|
|
Three Months Ended June
30, 2012
|
|
Three Months Ended
September 30, 2012
|
|
GAAP
|
Adjustment(c)
|
Non-GAAP
|
|
GAAP
|
Adjustment(c)
|
Non-GAAP
|
|
GAAP
|
Adjustment(c)
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$31,382
|
($8,641)
|
$22,741
|
|
$56,363
|
($13,647)
|
$42,716
|
|
$63,919
|
($11,299)
|
$52,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$10,768
|
$8,645
|
$19,413
|
|
$9,905
|
$13,647
|
$23,552
|
|
$12,212
|
$11,299
|
$23,511
|
|
Operating
margin
|
22.7%
|
|
40.9%
|
|
13.6%
|
|
32.4%
|
|
14.5%
|
|
28.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
Qihoo 360 Technology Co. Ltd.
|
$10,904
|
$8,645
|
$19,549
|
|
$6,997
|
$13,647
|
$20,644
|
|
$12,931
|
$11,299
|
$24,230
|
|
Net margin
|
23.0%
|
|
41.2%
|
|
9.6%
|
|
28.4%
|
|
15.4%
|
|
28.8%
|
|
Diluted earnings per
ADS
|
$0.09
|
|
$0.16
|
|
$0.06
|
|
$0.17
|
|
$0.11
|
|
$0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2011
|
|
Nine Months Ended
September 30, 2012
|
|
|
|
|
|
GAAP
|
Adjustment(c)
|
Non-GAAP
|
|
GAAP
|
Adjustment(c)
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$90,524
|
($38,754)
|
$51,770
|
|
$167,507
|
($36,625)
|
$130,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$3,311
|
$38,763
|
$42,074
|
|
$36,563
|
$36,629
|
$73,192
|
|
|
|
|
|
Operating
margin
|
3.1%
|
|
39.9%
|
|
16.2%
|
|
32.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
Qihoo 360 Technology Co. Ltd.
|
($202)
|
$38,763
|
$38,561
|
|
$33,994
|
$36,629
|
$70,623
|
|
|
|
|
|
Net margin
|
(0.2%)
|
|
36.5%
|
|
15.0%
|
|
31.2%
|
|
|
|
|
|
Diluted earnings per
ADS
|
($0.00)
|
|
$0.34
|
|
$0.28
|
|
$0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c): Adjustment to
exclude the share-based compensation expense of each period.
|
|
|
|
SOURCE Qihoo 360 Technology Co. Ltd.