QIHU Evening Sulphur, just got online outside and did a cursory review of the Q. Looks great- more than the +$5.50 in AH, I'd say.
I'm going to get in the weeds now and report later.
But at this point it definitely looks an overnight hold at least to achieve full measure.
MG
http://stockcharts.com/h-sc/ui?s=QIHU
Qihoo 360 Tech 1Q Net $47.9M >QIHU
BY Dow Jones &; Company, Inc. — 6:00 PM ET 05/27/2014
Qihoo 360 Reports First Quarter 2014 Unaudited Financial Results
PR Newswire
BEIJING, May 27, 2014
Qihoo 360 Technology Co. Ltd. (QIHU) ("Qihoo 360" or the "Company") , a leading Internet company in China, today reported its unaudited financial results for the first quarter ended March 31, 2014.
First Quarter Financial Highlights[1]
-- Revenues were $265.1 million, a 141.3% increase from $109.9 million in
the first quarter of 2013.
-- Net income attributable to Qihoo 360 (QIHU Loading... Loading... ) was $49.1 million, compared to $5.6
million in the first quarter of 2013.
-- Non-GAAP net income attributable to Qihoo 360 (QIHU Loading... Loading... ) [1] was $73.3 million,
compared to $17.5 million in the first quarter of 2013.
-- Diluted earnings per ADS[2] ("EPADS") attributable to Qihoo 360 (QIHU QIHU QIHOO 360 TECHNOLOGY CO LTD 89.98Change +0.90 (+1.01%) AS OF 4:01 PM ET 05/27/14.Chart for QIHU Research ) was
$0.37, compared to $0.04 in the same period last year.
-- Non-GAAP diluted EPADS attributable to Qihoo 360 (QIHU Loading... Loading... ) [1] was $0.54, compared
to $0.14 in the same period last year.
First Quarter Operating Metrics
-- Total monthly active users of Qihoo 360's (QIHU Loading... Loading... ) PC-based products and services
reached a record 479 million in March 2014, compared to 457 million in
March 2013[3].
-- User penetration of Qihoo 360's (QIHU Loading... Loading... ) PC-based products was 93.3% in March
2014, compared to 95.8% in March 2013[3].
-- Total smartphone users of Qihoo 360's (QIHU Loading... Loading... ) primary mobile security product [4]
reached a record 538 million in March 2014, compared to 275 million in
March 2013[5].
-- Monthly active users of Qihoo 360's (QIHU Loading... Loading... ) PC browsers were 339 million in March
2014, compared to 332 million in March 2013[3].
-- User penetration of Qihoo 360's (QIHU Loading... Loading... ) PC browsers was 66.1% in March 2014,
compared to 69.6% in March 2013[3].
-- Average daily unique visitors to the 360 Personal Start-up Page and its
sub-pages were 122 million in the first quarter of 2014, compared to 94
million in the first quarter of 2013[5].
-- Average daily clicks on Qihoo 360's (QIHU Loading... Loading... ) Personal Start-up Page and its
sub-pages were approximately 772 million in the first quarter of 2014,
compared to 489 million in the first quarter of 2013[5].
"We are pleased to report another quarter of strong growth and solid operational metrics," said Mr. Hongyi Zhou, Chairman and Chief Executive Officer of Qihoo 360 (QIHU). "While we maintained our leadership position in key PC-related product categories, we continued to make significant progress in the ever more-important mobile Internet market. The number of Chinese smartphone users of our key mobile security product, 360 Mobile Safe, reached 538 million in the first quarter, making Qihoo 360 (QIHU) the indisputable leader in Internet security in China. In addition, our Android-based app store, 360 Mobile Assistant, has already registered over 400 million users, further reinforcing its industry-leading position. We intend to continue to allocate significant resources to the fast-growing mobile Internet market for the foreseeable future."
"During the quarter, our share of Internet search traffic reached approximately 25% according to third-party data. Through continued product improvement and technological innovation, we believe we are in an excellent position to further grow our share of China's search market in terms of both traffic and revenue. Since we began monetizing our search and mobile products at the beginning of 2013 we have made significant progress, and we are highly encouraged by the early results. As we continue to execute our business plan and strategy, we believe that search and mobile monetization represent a substantial long-term growth opportunity for our business," concluded Mr. Zhou.
Mr. Xiangdong Qi, President of Qihoo 360 (QIHU), added "We are excited to see continued robust growth in key areas of our business. Online advertising grew 121% year-over-year, supported by strong contributions from both search and mobile monetization and further deepening of our monetization process for Personal Start-up Pages. Internet value-added services once again outpaced the market with revenue growth of 172%, driven by strength in PC games and a strong ramp-up in mobile games. While search and mobile monetization are still in their early stages, they are ramping up faster than expected, and are poised to become key drivers of our future growth. We have made significant investments over the last few quarters to strengthen our brand and market position, and to improve our product and technology, particularly in mobile Internet-related areas. Given the rapidly-evolving industry landscape, we will maintain the intensity of our investments in these areas to build a sustainable foundation for future growth."
First Quarter 2014 Results
Revenues
Revenues were $265.1 million, representing an increase of 141.3% from $109.9 million in the first quarter of 2013 and an increase of 19.6% from $221.6 million in the fourth quarter of 2013. The robust year-over-year growth was due to strong performance in both online advertising and Internet value-added services, driven by solid ramp in search and mobile monetization, as well as strong user traffic growth and further penetration of performance based advertising on 360 Personal Startup Page.
Online advertising revenues were $140.0 million, up 120.9% from the same period last year and relatively flat comparing to the prior quarter. The strong year-over-year increase was primarily driven by incremental contribution from search and mobile advertising and increased monetization of user activities on 360 Personalized Start-up Pages. The flattish sequential trend reflected the normal effects of seasonality.
Internet value-added service revenues, which are mainly derived from game platform operations, were $124.8 million, up 172.2% from the same period last year and 58.2% from the prior quarter. The robust year-over-year and sequential growth was driven by the strong ramp-up in game operations.
Cost of Revenues
Cost of revenues were $50.4 million, compared to $13.9 million in the first quarter of 2013 and $30.2 million in the fourth quarter of 2013, representing increases of 262.4% and 67.0%, respectively.
Operating Expenses
Operating expenses were $175.1 million, compared to $89.2 million in the first quarter of 2013 and $184.9 million in the fourth quarter of 2013. Non-GAAP operating expenses([1]) were $155.2 million, compared to $77.2 million in the first quarter of 2013 and $109.6 million in the prior quarter.
The year-over-year and sequential increases in non-GAAP operating expenses([1]) were mainly driven by increased marketing and promotional expenses, personnel-related costs, and bandwidth and equipment depreciation expenses, as the Company continued to strengthen its brand and market position, and enhance its technology and product development capabilities.
Operating Income
Operating income was $39.6 million, compared to $6.8 million in the first quarter of 2013 and operating income of $8.9 million in the prior quarter.
Non-GAAP operating income([1]) was $59.5 million, compared to $18.8 million in the first quarter of 2013 and $84.2 million in the prior quarter.
Operating margin was 14.9%, compared to 6.2% in the first quarter of 2013 and 4.0% in the prior quarter.
Non-GAAP operating margin([1]) was 22.5%, compared to 17.1% in the first quarter of 2013 and 38.0% in the prior quarter.
The year-over-year increase in non-GAAP operating margin([1]) was mainly due to leverage from strong revenue growth while the Company continues to invest in new product and business initiatives. The sequential decline in non-GAAP operating margin([1]) reflected normal seasonal spending patterns.
Net Income attributable to Qihoo 360 (QIHU)
Net income attributable to Qihoo 360 (QIHU) was $49.1 million, compared to $5.6 million in the first quarter of 2013 and $ 16.7 million in the prior quarter.
Non-GAAP net income([1]) attributable to Qihoo 360 (QIHU) was $73.3 million, compared to $17.5 million in the first quarter of 2013 and $96.3 million in the prior quarter.
Net Margin
Net margin was 18.5%, compared to 5.1% in the same period last year, and 7.5% in the prior quarter.
Non-GAAP net margin([1]) was 27.7%, compared to 15.9% in the same period last year and 43.5% in the prior quarter.
Diluted Earnings per ADS
Diluted EPADS for the first quarter of 2014 was $0.37, and non-GAAP diluted EPADS([1]) for the first quarter of 2014 was $0.54. The GAAP weighted average ADS([1]) used in computing diluted EPADS was 131.5 million.
Cash Flows and Balance Sheet
Net cash generated from operations in the first quarter of 2014 was $100.5 million, compared to net cash outflow of $ 27.9 million in the same period last year and net operating cash inflow of $76.8 million in the prior quarter. Cash capital expenditures were $69.5 million. As of March 31, 2014, the Company had cash and cash equivalents of $901.6 million.
Business Outlook
For the second quarter of 2014, the Company expects revenues to be between $300 million and $305 million, representing a year-over-year increase of 98% to 101% and quarter-over-quarter increase of 13% to 15%. These estimates reflect the Company's current and preliminary view, which is subject to possible material changes.
Conference Call
Qihoo 360's (QIHU) management will host a conference call to discuss the results at 7:30 a.m. Eastern Time on May 28, 2014 (7:30 p.m. Beijing time on May 28, 2014).
The dial-in details for the live conference call are:
US Toll Free Dial In: +1 866-519-4004
International Dial In: +65 6723 9381
Hong Kong Dial In: +852-2475-0994
Passcode: 45783630
A telephone replay of the call will be available after the conclusion of the conference call at 10:30 a.m. Eastern Time on May 28, 2014 through 09:30 a.m. Eastern Time on June 5, 2014. The dial-in details for the replay are:
International Dial In: +61 2 8199 0299
US Dial In: +1 646-254-3697
Passcode: 45783630
A live webcast of the conference call will be available on the investor relations section of Qihoo 360's (QIHU) website at: http://corp.360.cn.
About Qihoo 360 (QIHU)
Qihoo 360 Technology Co. Ltd. (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 (QIHU) 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........................
For investor and media inquiries, please contact:
Qihoo 360 Technology Co. Ltd. (QIHU)
In China:
Tel: +86 10-5878-1574
E-mail: ir@360.cn
In the U.S.:
The Piacente Group, Inc.
Don Markley or Glenn Garmont
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, March 31,
2013 2014
------------ ---------
ASSETS
Current assets:
Cash and cash equivalents 1,013,465 901,567
Restricted Cash 2,368 705
Short-term Investments 748 779
Accounts receivable (net of allowance for doubtful
accounts of $145 and $141 as of December 31, 2013
and March 31, 2014, respectively) 54,598 74,489
Prepaid expenses and other current assets 83,409 138,762
Deferred tax assets -- current 3,129 4,156
Total current assets 1,157,717 1,120,458
------------ ---------
Property and equipment, net 163,864 178,240
Land use rights, net 75,698 73,288
Acquired intangible assets, net 17,248 30,057
Goodwill 29,509 85,750
Long-term investments 84,293 139,767
Other noncurrent assets 39,621 131,413
Deferred tax assets -- noncurrent 946 1,004
------------ ---------
TOTAL ASSETS 1,568,896 1,759,977
============ =========
LIABILITIES
Current liabilities:
Short-term loan (including accounts payable of the
consolidated
VIEs without recourse to Qihoo Technology Company
Limited of
$1,322 and $8,571 as of December 31, 2013 and March
31, 2014, respectively) 1,322 8,571
Accounts payable (including accounts payable of the
consolidated
VIEs without recourse to Qihoo 360 Technology Co.
Ltd. (QIHU Loading... Loading... ) of
$22,856 and $53,275 as of December 31, 2013 and
March 31, 2014, respectively) 25,030 59,078
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. (QIHU Loading... Loading... )
of
$77,170 and $99,809 as of December 31, 2013 and
March 31, 2014, respectively) 120,935 177,597
Deferred revenue-current (including deferred
revenue-current of the
consolidated VIEs without recourse to Qihoo 360
Technology Co. Ltd. (QIHU Loading... Loading... ) of $30,717 and $58,095 as of
December 31, 2013 and March 31, 2014,
respectively) 46,632 77,034
Income tax payable (including income tax payable of
the consolidated VIEs without recourse to Qihoo
360 Technology Co. Ltd. (QIHU Loading... Loading... ) of $5,546 and $7,416 as of
December 31, 2013 and March 31, 2014,
respectively) 14,679 17,480
------------ ---------
Total current liabilities 208,598 339,760
------------ ---------
Deferred tax liabilities -- noncurrent 2,676 3,851
Deferred revenue-noncurrent (including deferred
revenue-noncurrent of the consolidated VIEs
without recourse to Qihoo 360 Technology Co. Ltd. (QIHU Loading... Loading... )
of $664 and $646 as of December 31, 2013 and March
31, 2014, respectively) 3,544 3,183
Long-term debt 600,000 600,000
TOTAL LIABILITIES 814,818 946,794
============ =========
EQUITY
Total Qihoo 360 Technology Co. Ltd. (QIHU Loading... Loading... ) Shareholders'
equity 736,893 796,407
------------ ---------
Noncontrolling interest 17,185 16,776
Total equity 754,078 813,183
------------ ---------
TOTAL LIABILITIES AND EQUITY 1,568,896 1,759,977
============ =========
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
---------------------------------------------------
March 31, 2013 December 31, 2013 March 31, 2014
-------------- ----------------- ----------------
Revenues: 109,877 221,617 265,142
Cost of revenues 13,906 30,180 50,390
Subsidy income 3 2,344 -
Operating expenses:
Selling and marketing 27,062 30,988 68,733
General and
administrative 11,895 76,680 21,766
Product development 50,211 76,248 84,643
Impairment loss on
intangible assets - 948 -
-------------- ----------------- ----------------
Total operating
expenses 89,168 184,864 175,142
-------------- ----------------- ----------------
Income from operations 6,806 8,917 39,610
-------------- ----------------- ----------------
Interest income 1,437 5,028 4,920
Interest expenses - (4,386) (4,315)
Other income 196 879 251
Exchange gain(loss) 361 2,902 (12,289)
Impairment loss on
long-term investment - (3,703) -
Gain on disposal of
long-term investments - 14,808 27,652
Income before income
tax expense and loss
from equity method
investments 8,800 24,445 55,829
-------------- ----------------- ----------------
Income tax expense (2,217) (9,130) (5,889)
Loss from equity method
investments (1,021) (165) (2,018)
Net income 5,562 15,150 47,922
-------------- ----------------- ----------------
Less: Net (gain) loss
attributable to
noncontrolling
interest (11) 1,498 1,199
Net income attributable
to
Qihoo 360 Technology
Co. Ltd. 5,551 16,648 49,121
============== ================= ================
Net income per ordinary
share-basic 0.03 0.09 0.27
Net income per ordinary
share-diluted 0.03 0.08 0.25
============== ================= ================
Weighted average shares
used in calculating
net income per
ordinary share- basic
(in millions)(a) 178 183 184
Weighted average shares
used in calculating
net income per
ordinary share-diluted
(in millions)(a) 189 197 197
============== ================= ================
(a): 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
March 31, 2014
March 31, 2013
Cash flows from operating
activities:
Net income 5,562 47,922
Share-based compensation 11,967 19,932
Depreciation and amortization 8,847 17,250
Amortization of land use
right 420 436
Loss on disposal of fixed
assets 212 30
Loss on equity method
investments 1,021 2,018
Gain on disposal of long-term
investments - (27,652)
Gains resulting from
nonoperating activities (197) (44)
Changes in operating assets
and liabilities (55,769) 40,567
----------------------------- ------------------------- ----------------
Net cash (used in) provided
by operating activities (27,937) 100,459
============================= ========================= ================
Cash flows from investing
activities:
Purchase of property and
equipment and intangible
assets (57,074) (69,547)
Consideration paid in
connection with business
acquisition (921) (38,941)
Payment for short-term
investment and long-term
investments (828) (103,350)
Decrease in restricted cash - 1,639
Proceeds from disposal of
property and equipment and
intangible assets 1 -
Net cash used in investing
activities (58,822) (210,199)
============================= ========================= ================
Cash flows from financing
activities:
Capital contribution from
noncontrolling interest - 7
Proceeds from exercise of
share option 6,624 5,057
Payment for short term loans - (773)
Net cash provided by
financing activities 6,624 4,291
============================= ========================= ================
Effect of exchange rate
changes 406 (6,449)
DECREASE IN CASH (79,729) (111,898)
CASH, BEGINNING OF PERIOD 380,664 1,013,465
CASH, END OF PERIOD 300,935 901,567
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Measures
Three Months Ended March 31,
2013 Three Months Ended December 31, 2013 Three Months Ended
March 31, 2014
-------------------------------- ------------------------------------------------ --------------------- --------------
Adjustment
GAAP Adjustment(b) Non-GAAP GAAP Adjustment(b) Adjustment(c) Non-GAAP GAAP Adjustment(b) (c) Non-GAAP
Operating expenses $89,168 ($11,967) $77,201 $184,864 ($75,284) - $109,580 $175,142 ($ 19,932) $155,210
Income from operations $6,806 $11,967 $18,773 $8,917 $75,284 - $84,201 $39,610 $ 19,932 $59,542 Operating margin 6.2% 17.1% 4.0% 38.0% 14.9%
22.5%
Net income
attributable
to Qihoo
360
Technology
Co. Ltd. $5,551 $11,967 $17,518 $16,648 $75,284 $4,365 $96,297 $49,121 $
19,932 $4,279 $73,332 Net margin 5.1% 15.9% 7.5% 43.5% 18.5%
27.7% Diluted earnings per ADS $0.04 $0.14 $0.13 $0.70 $0.37
$0.54
(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
March 2014.
[4] 360 Mobile Safe is the Company's primary mobile security product.
[5] Company data as of March 2014.
SOURCE Qihoo 360 (QIHU)
/Web site: http://corp.360.cn
(END) Dow Jones Newswires (212-416-2800)
05-27-14 1800ET
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