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Youku Tudou Announces First Quarter 2014 Unaudited Financial Results
Mobile Daily Video Views Reached 400 Million; Mobile Monetization Surpassed 30% to Date

BEIJING, May 22, 2014 /PRNewswire/ -- Youku Tudou Inc. (NYSE: YOKU), China's leading Internet television company ("Youku Tudou" or the "Company"), today announced its unaudited financial results for first quarter 2014.

First Quarter 2014 Highlights[1]

  • Net revenues were RMB700.4 million (US$112.7 million),a 36% increase from the corresponding period in 2013.
  • Gross profit was RMB85.6 million (US$13.8 million), a 501% increase from the corresponding period in 2013. Non-GAAP[2] gross profit was RMB100.3 million (US$16.1 million) in the first quarter of 2014, an increase of 255% from the corresponding period in 2013.  
  • Net loss was RMB224.7 million (US$36.1 million), a 3% decrease from the corresponding period in 2013. Non-GAAP net loss was RMB148.3 million (US$23.8 million) in the first quarter of 2014, a 19% decrease from the corresponding period in 2013.
  • Basic and diluted loss per ADS, each representing 18 Class A ordinary shares of the Company, for the first quarter of 2014 amounted to RMB1.34 (US$0.22) and RMB1.34 (US$0.22), respectively. Non-GAAP basic and diluted loss per ADS for the first quarter of 2014 amounted to RMB0.88 (US$0.14) and RMB0.88 (US$0.14), respectively.
  • Cash, cash equivalents, restricted cash and short-term investments totaled RMB3.3 billion (US$525.4 million) as of March 31, 2014.
  • Acquisition of property and equipment for the first quarter of 2014 was RMB28.2 million (US$4.5 million).
  • Acquisition of intangible assets for the first quarter of 2014 was RMB165.9 million (US$26.7 million).

"Mobile has already become the #1 screen for Youku Tudou. We are the undisputed leader in all of the important mobile video traffic metrics with mobile daily video views reaching 400 million. Our continued investment in product and content development has enabled us to diversify our revenue mix, with mobile monetization surpassing 30% of total revenue to date," said Victor Koo, Chairman and Chief Executive Officer of Youku Tudou. "Online video is a key growth area for the Internet industry and we plan on further transforming Youku Tudou's business model. The transformation requires us to make additional investment in the areas of multi-screen development, diversified revenue models and content ecosystem. The strategic investment from Alibaba will boost our balance sheet and enable us to accelerate our expansion in new business opportunities."

Dele Liu, President of Youku Tudou, added, "Our growing content ecosystem represents a tremendous opportunity for Youku Tudou. We will continue to build up our content portfolio by strengthening original, partner generated and user generated content. We will also continue to invest in human resources to improve our content creation capabilities and to build out our consumer businesses. We are well-positioned to realize the full potential of the online video ecosystem and more investment will see us become an immersive culture entertainment platform."

First Quarter 2014 Results

Net revenues were RMB700.4 million (US$112.7 million) in the first quarter of 2014, a 36% increase from the corresponding period in 2013 and meeting net revenues guidance previously announced by the Company. Advertising net revenues were RMB623.3 million (US$100.3 million), meeting the advertising net revenues guidance previously announced by the Company. The growth was primarily attributable to the increased use by brand advertisers of our advertising services as evidenced by an increase in the number of advertisers and the rising average spend per advertiser.

Bandwidth costs as a component of cost of revenues were RMB201.9 million (US$32.5 million)in the first quarter of 2014, representing 29% of net revenues, as compared to 31% of net revenues for the corresponding period in 2013.

Content costs as a component of cost of revenues were RMB325.7 million (US$52.4 million) in the first quarter of 2014, representing 46% of net revenues. Non-GAAP content costs were RMB310.9 million (US$50.0 million) in the first quarter of 2014, representing 44% of net revenues, as compared to 49% of net revenues for the corresponding period in 2013.

Gross profit was RMB85.6 million (US$13.8 million)in the first quarter of 2014, an increase of 501% from the corresponding period in 2013. Non-GAAP gross profit was RMB100.3 million (US$16.1 million) in the first quarter of 2014, an increase of 255% from the corresponding period in 2013 due to strong operating leverage.

Operating expenses were RMB314.1 million (US$50.5 million) in the first quarter of 2014, as compared to RMB267.8 million (US$43.1 million) for the corresponding period in 2013. Non-GAAP operating expenses were RMB252.3 million (US$40.6 million) in the first quarter of 2014, an increase of 9% from the corresponding period in 2013. Detailed discussion of each component of operating expenses is as follows:

Sales and marketing expenses were RMB186.5 million (US$30.0 million) in the first quarter of 2014, as compared to RMB127.6 million (US$20.5 million) for the corresponding period in 2013. Non-GAAP sales and marketing expenses were RMB163.5 million (US$26.3 million) in the first quarter of 2014, an increase of 42% from the corresponding period in 2013. This increase was due to higher commission expenses paid to our sales force in line with our revenue growth and marketing expenditures on our mobile products.

Product development expenses were RMB80.7 million (US$13.0 million) in the first quarter of 2014, as compared to RMB56.8 million (US$9.1 million) for the corresponding period in 2013. Non-GAAP product development expenses were RMB62.2 million (US$10.0 million) in the first quarter of 2014, an increase of 28% from the corresponding period in 2013. This increase was primarily due to an increase in personnel related expenses for our product development in mobile, search, social, paid and live broadcasting services.

General and administrative expenses were RMB46.8 million (US$7.5 million) in the first quarter of 2014, as compared to RMB83.4 million (US$13.4 million) for the corresponding period in 2013. Non-GAAP general and administrative expenses were RMB26.6 million (US$4.3 million) in the first quarter of 2014, a decrease of 61% from the corresponding period in 2013.

Net loss was RMB224.7 million (US$36.1 million)in the first quarter of 2014, a decrease of 3% compared to RMB232.5 million (US$37.4 million) for the corresponding period in 2013. Non-GAAP net loss was RMB148.3 million (US$23.8 million) in the first quarter of 2014, a decrease of 19% from the corresponding period in 2013.

Non-GAAP adjusted EBITDA Loss was RMB120.2 million (US$19.3 million) in the first quarter of 2014, a decrease of 32% from the corresponding period in 2013.

Business Outlook

For the second quarter of 2014, the Company expects net revenues will be between RMB940 million and RMB1 billion, with advertising net revenues contributing between RMB910 million and RMB950 million. This forecast reflects the Company's current and preliminary view, which is subject to change.

Conference Call Information

Youku Tudou's management will host an earnings conference call at 9:00 p.m. U.S. Eastern Time on May 22, 2014 (9:00 a.m. Beijing/Hong Kong Time on May 23, 2014).

Interested parties may participate in the conference call by dialing one of the following numbers below and entering passcode Youku# (i.e., 96858#) starting 10-15 minutes prior to the beginning of the call.

US Toll Free Dial In: 1-866-519-4004
International Dial In: +65-6723-9381
Mainland China Toll Free Dial In: +86-400-620-8038 / +86-800-819-0121
Hong Kong Dial In: +852-2475-0994

A replay of the call will be available by dialing +61 2 8199 0299 and entering passcode 47256659#. The replay will be available through May 30, 2014.

This call will be webcast live and the replay will be available for 12 months. Both will be available on the Investor Relations section of Youku Tudou's corporate website at http://ir.youku.com.

About Youku Tudou Inc.

Youku Tudou Inc. (NYSE: YOKU) is China's leading Internet television company. Its Youku and Tudou Internet television platforms enable users to search, view and share high-quality video content quickly and easily across multiple devices. Its Youku brand and Tudou brand are the most recognized online video brands in China. Youku Tudou's American depositary shares, each representing 18 of Youku Tudou's Class A ordinary shares, are traded on the NYSE under the symbol "YOKU."  

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Youku Tudou's strategic and operational plans, contain forward-looking statements. Youku Tudou may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission ("SEC"), 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 Youku Tudou's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; the expected growth of the online video market in China; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with key advertisers and customers; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Youku Tudou does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Youku Tudou's financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Youku Tudou uses the following measures defined as non-GAAP financial measures by the SEC in evaluating its business:  non-GAAP content costs, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP sales and marketing expenses, non-GAAP product development expenses, non-GAAP general and administrative expenses, non-GAAP profit or loss from operations, non-GAAP net profit or loss and non-GAAP EBITDA profit or loss. We define non-GAAP content costs as content costs excluding share-based compensation expenses and amortization of intangible assets from business combination in relation to user generated content. We define non-GAAP gross profit or loss as the respective nearest comparable GAAP financial measure to exclude share-based compensation expenses and amortization of intangible assets from business combination in relation to user generated content. We define non-GAAP operating expenses as operating expenses excluding share-based compensation expenses, business combination related expenses and amortization of intangible assets from business combination in relation to customer relationship, technology and non-compete provisions. We define non-GAAP sales and marketing expenses as sales and marketing expenses excluding share-based compensation expenses and amortization of intangible assets from business combination in relation to customer relationship. We define non-GAAP product development expense as product development expenses excluding share-based compensation expenses and amortization of intangible assets from business combination in relation to technology. We define non-GAAP general and administrative expenses as general and administrative expenses excluding share-based compensation expenses, business combination related expenses and amortization of intangible assets from business combination in relation to non-compete provisions. We define non-GAAP profit or loss from operations as profit or loss from operations excluding share-based compensation expenses, amortization of intangible assets from business combination and business combination related expenses. We define non-GAAP net profit or loss as net loss excluding share-based compensation expenses, amortization of intangible assets from business combination and business combination related expenses. We define non-GAAP EBITDA profit or loss as net profit or loss before income taxes, interest expenses, interest income, depreciation and amortization (excluding amortization of acquired content), further adjusted for share-based compensation expenses, amortization of intangible assets from business combination, business combination related expenses and other non-operating items.

We present non-GAAP financial measures because they are used by our management to evaluate our operating performance. We also believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and in comparing financial results across accounting periods and to those of our peer companies. A limitation of using non-GAAP financial measures is that non-GAAP measures exclude share-based compensation charges that have been and will continue to be significant recurring expenses in Youku Tudou's business for the foreseeable future.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP financial measures" at the end of this release.

For more information, please contact:

Ryan Cheung
Corporate Finance Senior Director
Youku Tudou Inc.
Tel: (+8610) 5885-1881 x6090
Email: ryan.cheung@youku.com

 

[1]

The reporting currency of the Company is Renminbi ("RMB"), but for the convenience of the reader, the amounts presented throughout the release are in US dollars ("US$"). Unless otherwise noted, all conversions from RMB to US$ are made at a rate of RMB6.2164 to US$1.00, the effective noon buying rate as of March 31, 2014 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

[2]

All non-GAAP measures exclude, as applicable, share-based compensation expenses and amortization of intangible assets from business combination. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company's use of non-GAAP information set forth elsewhere in this press release.

 









 YOUKU TUDOU INC. 

 CONSOLIDATED BALANCE SHEETS 










(Amounts in thousands, except for number of shares)



For the Three Months Ended



December 31, 2013


March 31, 2014


March 31, 2014





RMB


RMB


US$

ASSETS





(Unaudited)


(Unaudited)










Current assets:









 Cash and cash equivalents 



1,764,221


1,598,644


257,166


 Restricted cash 



2,679


2,681


431


 Short-term investments 



1,409,439


1,664,833


267,813


 Accounts receivable, net 



1,370,031


1,197,350


192,611


 Intangible assets, net 



51,942


39,459


6,348


 Deferred tax assets 



7,843


7,843


1,262


 Prepayments and other assets 



82,300


85,309


13,724

Total current assets



4,688,455


4,596,119


739,355










Non-current assets:









 Property and equipment, net 



222,229


225,391


36,257


 Intangible assets, net 



1,197,671


1,241,202


199,666


 Capitalized content production costs 



1,176


936


151


 Prepayments and other assets 



197,856


187,667


30,189


 Goodwill 



4,262,569


4,262,569


685,697

 Total non-current assets 



5,881,501


5,917,765


951,960










TOTAL ASSETS



10,569,956


10,513,884


1,691,315










LIABILITIES AND SHAREHOLDERS' EQUITY

















Current liabilities:









 Accounts payable 



213,825


249,032


40,060


 Advances from customers 



25,081


26,897


4,327


 Accrued expenses and other liabilities 



1,124,342


1,152,595


185,412

Total current liabilities



1,363,248


1,428,524


229,799










Non-current liabilities:









 Deferred tax liability 



219,519


219,519


35,313


 Other liabilities 



4,070


4,070


655

Total non-current liabilities



223,589


223,589


35,968










Total liabilities



1,586,837


1,652,113


265,767










Commitments and contingencies

















Shareholders' equity:









Class A Ordinary Shares (US$0.00001 par value, 9,340,238,793

authorized,  2,356,529,401 and  2,371,376,719 issued and

outstanding as of  December 31, 2013 and March 31, 2014,

respectively)



154


155


25


Class B Ordinary Shares (US$0.00001 par value, 659,761,207

authorized, 659,561,893 and 659,561,893 issued and

outstanding as of  December 31, 2013 and March 31, 2014,

respectively)



49


49


8


 Additional paid-in capital 



11,058,360


11,140,757


1,792,156


 Statutory reserves 



2,063


2,063


332


 Accumulated deficit 



(1,878,454)


(2,103,159)


(338,324)


 Accumulated other comprehensive loss 



(199,053)


(178,094)


(28,649)

Total shareholders' equity



8,983,119


8,861,771


1,425,548










TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY



10,569,956


10,513,884


1,691,315

 











 YOUKU TUDOU INC. 

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS 














 For the Three Months Ended 

(Amounts in thousands, except for  number of shares and ADS and per share and per

ADS data)








March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$




(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)











Net revenues



515,997


901,287


700,374


112,666











Cost of revenues (Note 1)



(501,766)


(646,938)


(614,808)


(98,901)











Gross profit



14,231


254,349


85,566


13,765











Operating expenses:










       Product development



(56,828)


(76,514)


(80,700)


(12,982)

       Sales and marketing



(127,600)


(216,444)


(186,542)


(30,008)

       General and administrative



(83,350)


(40,393)


(46,823)


(7,532)

Total operating expenses



(267,778)


(333,351)


(314,065)


(50,522)











Loss from operations



(253,547)


(79,002)


(228,499)


(36,757)











Interest income



7,179


8,419


6,053


974

Interest expenses



(387)


-


-


-

Other, net



14,281


46,878


(2,259)


(363)

Total other income, net



21,073


55,297


3,794


611











Loss before income taxes



(232,474)


(23,705)


(224,705)


(36,146)

Income taxes



-


(876)


-


-











Net loss



(232,474)


(24,581)


(224,705)


(36,146)











Other comprehensive loss, before tax










            Foreign currency translation adjustments



(5,966)


(33,201)


20,959


3,372

Other comprehensive loss, before tax



(5,966)


(33,201)


20,959


3,372

Income tax expense related to components of other comprehensive loss


-


-


-


-











Other comprehensive loss, net of tax



(5,966)


(33,201)


20,959


3,372










0

Net loss per share, basic and diluted



(0.08)


(0.01)


(0.07)


(0.01)

Net loss per ADS (each ADS represents 18 class A ordinary shares),
        basic and diluted



(1.42)


(0.15)


(1.34)


(0.22)

Shares used in computation, basic and diluted



2,953,267,696


3,010,627,513


3,021,981,224


3,021,981,224

ADSs used in computation, basic and diluted



164,070,427


167,257,084


167,887,845


167,887,845

 

The accompanying notes are an integral part of the press release.



































Note 1. Cost of Revenues



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

(Amounts in thousands)



(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)

 Cost of revenues: 










 Value added, business taxes and surcharges 



48,925


77,758


62,958


10,128

 Bandwidth costs 



161,045


178,824


201,889


32,477

 Depreciation of servers and other equipment 



22,470


36,686


24,306


3,910

 Content costs 



269,326


353,670


325,655


52,386

 Total Cost of Revenues 



501,766


646,938


614,808


98,901

 

 YOUKU TUDOU INC. 

 CONSOLIDATED STATEMENTS OF CASH FLOWS 













 For the Three Months Ended 

(Amounts in thousands)









March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014






RMB


RMB


RMB


US$






(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)

Cash flows from operating activities:











Net loss




(232,474)


(24,581)


(224,705)


(36,146)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:












Depreciation and impairment of fixed assets




26,795


46,972


31,883


5,129


Bad debt expense




7,076


25,547


(6,473)


(1,041)


Amortisation and impairment of intangible assets and capitalized content production costs




138,991


225,109


181,777


29,242


Amortization of long-term debt discounts




221


-


-


-


Gain on disposal of  property and equipment




695


(353)


90


14


Foreign exchange loss (gain)




325


(15,336)


2,164


348


Share-based compensation




37,850


53,061


70,220


11,296


Deferred income tax benefits




-


(4,414)


-


-


Gain from de-recognition of off-market liabilities




-


(16,540)


-


-


Changes in operating assets and liabilities:












         Restricted cash




(10)


(1,129)


(2)


-


        Accounts receivable




(33,644)


(10,312)


179,153


28,819


        Prepayments and other assets




1,347


(58,751)


(10,615)


(1,708)


        Capitalized content production costs




15,961


22,687


(2,972)


(478)


        Accounts payable




(9,864)


(15,572)


4,574


736


        Advances from customers




38,457


(40,717)


1,816


292


        Accrued expenses and other liabilities




12,468


21,519


29,591


4,759

Net cash provided by  operating activities




4,194


207,190


256,501


41,262













Cash flows from investing activities:












Acquisition of property and equipment




(27,364)


(14,955)


(28,191)


(4,535)


Proceeds received from maturity of short-term investments




36,703


1,018,628


1,132,459


182,173


Short-term investments placed with financial institutions




(185,590)


-


(1,391,239)


(223,801)


Proceeds from disposal of property and equipment




-


(824)


180


29


Cash acquired, net of cash paid for acquired subsidiaries




-


(6,999)


-


-


Acquisition of intangible assets




(238,921)


(227,540)


(165,891)


(26,686)

Net cash (used in) provided by investing activities




(415,172)


768,310


(452,682)


(72,820)













Cash flows from financing activities:












Exercise of employee stock options




28,740


9,084


11,809


1,900


Principal repayments on long-term debt




(3,236)


-


-


-

Net cash  provided by financing activities




25,504


9,084


11,809


1,900

Effect of exchange rate changes on cash and cash equivalents




(6,293)


(17,865)


18,795


3,023

Net (decrease) increase in cash and cash equivalents




(391,767)


966,719


(165,577)


(26,635)

Cash and cash equivalents at the beginning of the period




1,655,857


797,502


1,764,221


283,801

Cash and cash equivalents at the end of the period




1,264,090


1,764,221


1,598,644


257,166

 











Reconciliations of Non-GAAP results of operations measures to the nearest comparable GAAP financial measures (1)(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), unaudited)











 1. Non-GAAP Content Costs



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

Content costs



269,326


353,670


325,655


52,386

 Deduct: share-based compensation  



5,663


7,846


12,223


1,966

 Deduct: amortization of intangible assets from business combination 



8,331


6,100


2,483


399

Non-GAAP content costs



255,332


339,724


310,949


50,021











2. Non-GAAP Gross Profit



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

Gross profit



14,231


254,349


85,566


13,765

 Add back: share-based compensation  



5,663


7,846


12,223


1,966

 Add back: amortization of intangible assets from business combination 



8,331


6,100


2,483


399

Non-GAAP gross profit



28,225


268,295


100,272


16,130





















 3. Non-GAAP Operating Expenses



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

Operating expenses



267,778


333,351


314,065


50,522

 Deduct: share-based compensation  



32,187


45,215


57,997


9,330

 Deduct: amortization of intangible assets from business combination 



4,155


9,623


3,743


602

Non-GAAP  operating expenses



231,436


278,513


252,325


40,590





















4. Non-GAAP Sales and Marketing Expenses



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

Sales and marketing expenses



127,600


216,444


186,542


30,008

 Deduct: share-based compensation  



10,061


15,577


21,172


3,406

 Deduct: amortization of intangible assets from business combination 



2,077


5,077


1,871


301

Non-GAAP  sales and marketing expenses



115,462


195,790


163,499


26,301





















5. Non-GAAP Product Development Expenses



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

Product development expenses



56,828


76,514


80,700


12,982

 Deduct: share-based compensation  



6,967


11,795


17,206


2,768

 Deduct: amortization of intangible assets from business combination 



1,395


3,411


1,257


202

Non-GAAP  product development expenses



48,466


61,308


62,237


10,012































6. Non-GAAP General and Administrative Expenses



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

General and administrative expenses



83,350


40,393


46,823


7,532

 Deduct: share-based compensation  



15,159


17,843


19,619


3,156

 Deduct: amortization of intangible assets from business combination 



683


1,135


615


99

Non-GAAP  general and administrative expenses



67,508


21,415


26,589


4,277





















7. Non-GAAP Loss from Operations



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

Loss from operations



(253,547)


(79,002)


(228,499)


(36,757)

 Add back: share-based compensation  



37,850


53,061


70,220


11,296

 Add back: amortization of intangible assets from business combination 



12,486


15,723


6,226

-

1,001

Non-GAAP  loss from operations



(203,211)


(10,218)


(152,053)


(24,460)





















8. Non-GAAP  Net (Loss) Profit 



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

 Net loss 



(232,474)


(24,581)


(224,705)


(36,146)

 Add back: share-based compensation  



37,850


53,061


70,220


11,296

 Add back: amortization of intangible assets from business combination 



12,486


15,723


6,226


1,001

 Non-GAAP net (loss) profit 



(182,138)


44,203


(148,259)


(23,849)





















9.  Non-GAAP EBITDA (Loss) Profit



 For the Three Months Ended 












March 31, 2013


December 31, 2013


March 31, 2014


March 31, 2014




RMB


RMB


RMB


US$

 Net loss 



(232,474)


(24,581)


(224,705)


(36,146)

 Add back: 










 Depreciation and amortization (excluding amortization 










      of acquired content ) (2)



26,810


46,986


31,897


5,131

 Interest income 



(7,179)


(8,419)


(6,053)


(974)

 Interest expenses 



387


-


-


-

 Income taxes 



-


876


-


-

 EBITDA (loss) profit 



(212,456)


14,862


(198,861)


(31,989)











 Adjustments: 










 Share-based compensation  



37,850


53,061


70,220


11,296

 Amortization of intangible assets from business combination 



12,486


15,723


6,226


1,001

 Others, net 



(14,281)


(46,878)


2,259


363

Non-GAAP EBITDA (loss) profit 



(176,401)


36,768


(120,156)


(19,329)





















(1)     For more information on the Non-GAAP financial measures, please see the section captioned "About Non-GAAP Financial Measures" in this earnings release.

(2)    The amortization expense was related to an advertising license acquired in April 2010. The amortization of acquired content was not treated as a Non-GAAP adjustment.

 

SOURCE Youku Tudou Inc.