58.com Reports Third Quarter 2018 Unaudited Financial Results

BEIJING,Nov. 15,2018 -- 58.com Inc. (NYSE: WUBA) ("58.com" or the "Company"),China's largest online market place for classifieds,today reported its unaudited financial results for the third quarter ended September 30,2018.

Third Quarter 2018 Financial Highlights

Total revenues were RMB3,626.8 million (US$527.2 million[1]),a 33.2% increase from RMB2,722.5 million in the same quarter of 2017,exceeding the high end of the Company's guidance of RMB3,550 million.

Gross margin was 89.5% compared with 91.6% in the same quarter of 2017.

Income from operations was RMB670.6 million (US$97.5 million),a 28.4% increase from RMB522.4 million in the same quarter of 2017.

Non-GAAP income from operations[2] was RMB856.5 million (US$124.5 million),a 29.1% increase from RMB663.4 million in the same quarter of 2017.

Net income attributable to 58.com Inc. was RMB726.2 million (US$105.6 million),a 105.6% increase from RMB353.3 million in the same quarter of 2017.

Non-GAAP net income attributable to 58.com Inc.[3] was RMB843.5 million (US$122.6 million),a 76.2% increase from RMB478.7 million in the same quarter of 2017.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB4.92 (US$0.72) and RMB4.84 (US$0.70),respectively,representing 103.3% and 103.2% increases from RMB2.42 and RMB2.38,in the same quarter of 2017. One ADS represents two Class A ordinary shares.

Non-GAAP basic and diluted earnings per ADS[4] attributable to ordinary shareholders were RMB5.72 (US$0.83) and RMB 5.63 (US$0.82),representing 74.3% and 74.2% increases from RMB3.28 and RMB3.23,in the same quarter of 2017.

Management Comments

"We delivered solid financial and operational results for the third quarter with revenues exceeding the high end of our guidance," commented Mr. Michael Yao,Chairman and Chief Executive Officer of 58.com. "We continued to see improvement in user growth and engagement on our mobile apps. Our two early-stage businesses,Zhuan Zhuan and 58 Town,continue to enjoy rapid user growth. Excluding Zhuan Zhuan and 58 Town,our core businesses maintained revenue,profit and profit margin growth momentum on a year-over-year basis. Despite an uncertain macro-economic environment,the China market remains massive and we continue to see enormous opportunities in lower-tier cities and towns where product innovation and technological advances are driving offline-to-online user conversion and substantially improving the services we can offer."

Third Quarter 2018 Financial Results

Revenues

Total revenues were RMB3,626.8 million (US$527.2 million),representing an increase of 33.2% fromRMB2,722.5 millionin the same quarter of 2017.

Membership revenues were RMB1,181.1 million (US$171.7 million),an increase of 18.8% from RMB994.1 million in the same quarter of 2017. The increase in membership revenues was primarily driven by an increase in the number of subscription-based paying membership accounts. The total number of subscription-based paying membership accounts on the Company's platforms,which include 58.com,Ganji.com and Anjuke.com,was approximately 2,968,000 during the third quarter of 2018,a 13.7% increase from approximately 2,611,000 in the same quarter of 2017. The Company defines subscription-based paying membership accounts as registered accounts through which users have purchased the Company's subscription-based membership services and whose membership subscriptions are active at any point during a given period. Some paying merchant members purchase membership services from more than one Company platform which contributes separately to the revenues of each platform.

Online marketing services revenues were RMB2,328.9 million (US$338.5 million),an increase of 40.3% from RMB1,660.5 million in the same quarter of 2017. The increase was primarily driven by the increasing adoption and effectiveness of the Company's various online marketing services such as real-time bidding,priority listing and various other online marketing services.

Cost of Revenues

Cost of revenues was RMB380.6 million (US$55.3 million),an increase of 67.1% from RMB227.8 million in the same quarter of 2017. The year-over-year increase was primarily driven by increases in the costs of used goods and services sold on the Zhuan Zhuan platform,traffic acquisition costs ("TAC") paid to 58.com's advertising union partners,and salaries and benefits primarily for information quality control teams.

Gross Profit and Gross Margin

Gross profit was RMB3,246.2 million (US$471.9 million),an increase of 30.1% from RMB2,494.8 million during the same quarter of 2017.

Gross margin was 89.5%,compared with 91.6% during the same quarter of 2017.

Operating Expenses

Operating expenses were RMB2,575.6 million (US$374.4 million),an increase of 30.6% from RMB1,972.3 million in the same quarter of 2017.

Sales and marketing expenses in the third quarter of 2018 were RMB1,920.1 million (US$279.1 million),an increase of 42.6% from RMB1,346.2 million in the same quarter in 2017.

Within sales and marketing expenses,advertising expenses in the third quarter of 2018 were RMB978.2 million (US$142.2 million),an increase of 80.7% from RMB541.2 million in the third quarter of 2017. The increase was primarily due to promotional campaigns launched during the quarter for the Company's apps. Advertising expenses associated with the Company's core businesses including 58.com and Anjuke accounted for the majority of the increase,while advertising expenses for Zhuan Zhuan grew at a faster rate from a smaller base in 2017.

Non-advertising sales and marketing expenses in the third quarter of 2018 were RMB941.9 million (US$136.9 million),an increase of 17.0% from RMB805.0 million in the same quarter in 2017. Non-advertising sales and marketing expenses include salaries,benefits,commissions and share-based compensation for the Company's sales,sales support,customer service,and marketing dealer management personnel,online and offline promotional expenses,and other operating expenses that are associated with sales and marketing activities.

The Company's sales and marketing headcount as of September 30,2018 was approximately 16,000,a 2.0% decrease from September 30,2017. The increase in non-advertising sales and marketing expenses was mainly related to marketing and promotional expenses for the Company's core businesses as well as the expansion of Zhuan Zhuan and 58 Town.

Research and development expenses in the third quarter of 2018 were RMB468.8 million (US$68.1 million),an increase of 25.7% from RMB372.9 million in the same quarter of 2017. The increase was primarily due to increases in salaries and benefits and share-based compensation expenses for the Company's research and development personnel for the development of new features and services.

General and administrative expenses in the third quarter of 2018 were RMB186.7 million (US$27.1 million),a decrease of 26.3% from RMB253.3 million in the same quarter of 2017. The decrease in general and administrative expenses was due to the decreases in professional expenses,depreciation and amortization expenses and other administrative expenses,which were partially offset by the increase in salaries,benefits and share-based compensation expenses related to administrative personnel.

Income from Operations

Income from operations was RMB670.6 million (US$97.5 million) in the third quarter of 2018,an increase of 28.4% from RMB522.4 million in the same quarter of 2017.

Operating margin,defined as income from operations divided by total revenues,was 18.5% in the third quarter of 2018,compared with 19.2% in the same quarter of 2017.

Non-GAAP income from operations was RMB856.5 million (US$124.5 million) in the third quarter of 2018,an increase of 29.1% from RMB663.4 million in the same quarter of 2017.

Non-GAAP operating margin,defined as non-GAAP income from operations divided by total revenues,was 23.6% in the third quarter of 2018,compared with 24.3% in the same quarter of 2017.

Other Income/(Expenses),net

Other income in the third quarter of 2018 was RMB103.7 million (US$15.1 million),compared with other expenses of RMB81.4 million in the same quarter of 2017. Other income in the third quarter of 2018 mainly included RMB51.1 million investment income associated with the purchase of short-term investments,RMB67.5 million in change in fair value of long-term investments,and RMB6.0 million in tax refunds and other government subsidies,which were offset by RMB22.1 million share of net loss of equity investees. The year-over-year improvement was largely due to less equity pick-up from 58 Home,58.com's non-consolidated affiliate.

Net Income Attributable to 58.com Inc.

Net income attributable to 58.com Inc. wasRMB726.2 million (US$105.6 million) in the third quarter of 2018,an increase of 105.6% from RMB353.3 million in the same quarter of 2017.

Net margin,defined as net income attributable to 58.com Inc. divided by total revenues,was 20.0% in the third quarter of 2018,compared with 13.0% in the same quarter of 2017.

Non-GAAP net income attributable to 58.com Inc. was RMB843.5 million (US$122.6 million) in the third quarter of 2018,an increase of 76.2% from RMB478.7 million in the same quarter of 2017.

Non-GAAP net margin,defined as non-GAAP net income attributable to 58.com Inc. divided by total revenues,was 23.3% in the third quarter of 2018,compared with 17.5% in the same quarter of 2017.

Basic and Diluted Earnings per ADS

Basic and diluted earnings per ADS attributable to ordinary shareholders in the third quarter of 2018 were RMB4.92 (US$0.72) and RMB4.84 (US$0.70),in the same quarter of 2017.

Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders in the third quarter of 2018 were RMB5.72 (US$0.83) and RMB5.63 (US$0.82),in the same quarter of 2017.

Cash Flow

Net cash provided by operating activities was RMB863.4 million (US$125.5 million) in the third quarter of 2018,an increase of 22.8% from RMB702.9 million in the same quarter of 2017.

Cash and Cash Equivalents,Restricted Cash and Short-term Investments

As of September 30,2018,the Company had cash and cash equivalents,restricted cash and short-term investments of RMB7,162.5 million (US$1,041.2 million).

Shares Outstanding

As of September 30,the Company had a total of 296,277,533 ordinary shares (including 250,691,369 Class A and 45,586,164 Class B ordinary shares) issued and outstanding. One ADS represents two Class A ordinary shares.

Business Outlook

Based on the Company's current operations,total revenues for the fourth quarter of 2018 are expected to be between RMB3.5 billion and RMB3.6 billion. This represents a year-over-year increase of 26.6% to 30.2% in Renminbi amounts. These estimates reflect the Company's current and preliminary view,which is subject to change.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States,or GAAP,this press release presents non-GAAP income/(loss) from operations,non-GAAP operating margin,non-GAAP net income/(loss) attributable to 58.com Inc.,non-GAAP net margin and non-GAAP basic and diluted earnings/(loss) per share and per ADS by excluding share-based compensation expenses,amortization of intangible assets resulting from business acquisitions,change in fair value of long-term investments,share-based compensation expenses included in share of results of equity investees,income tax effects of above GAAP to non-GAAP reconciling items. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance,compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results,as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses,non-cash gain or loss and income tax effects resulting from GAAP to non-GAAP reconciling items have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures,but should be considered in the overall evaluation of the Company's results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses,income tax effects of above GAAP to non-GAAP reconciling items,all of which should be considered when evaluating the Company's performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP,but should not be considered a substitute for,or superior to,financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.

Conference Call

58.com's management will host an earnings conference call onNovember 15,2018at8:00 a.m.U.S. Eastern Time (9:00 p.m. Beijing/Hong Kong time onthe same day).

Dial-in details for the earnings conference call are as follows:

International:

+1-412-317-6061

U.S. Toll Free:

+1-888-317-6003

Hong Kong Toll Free:

800-963976

Hong Kong

852-58081995

China Toll Free:

4001-206115

Passcode:

0603639

Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call.

A telephone replay of the call will be available after the conclusion of the conference call through8:00 a.m.U.S. Eastern Time,November 22,2018. The dial-in details for the replay are as follows:

International:

+1-412-317-0088

U.S. Toll Free:

+1-877-344-7529

Passcode:

10126317

Additionally,a live and archived webcast of the conference call will be available on the Investor Relations section of 58.com's website athttp://ir.58.com.

About 58.com Inc.

58.com Inc. (NYSE: WUBA) operates China's largest online market place for classifieds,as measured by monthly unique visitors on both its www.58.com website and mobile applications. The Company's online marketplace enables local business users and consumer users to connect,share information and conduct business. 58.com's broad,in-depth and high quality local information,combined with its easy-to-use website and mobile applications,has made it a trusted marketplace for consumers. 58.com's strong brand recognition,large and growing user base,merchant network and massive database of local information create a powerful network effect. For more information on 58.com,please visit http://www.58.com.

Safe Harbor Statements

This press release contains forward-looking statements 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," "confident" and similar statements. 58.com may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission,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. Any statements that are not historical facts,including statements about 58.com's beliefs and expectations,are forward-looking statements that involve factors,risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include,but not limited to the following: 58.com's goals and strategies; its future business development,financial condition and results of operations; its ability to retain and grow its user base and network of local merchants for its online marketplace; the growth of,and trends in,the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; its ability to maintain the network infrastructure necessary to operate its website and mobile applications; relevant government policies and regulations relating to the corporate structure,business and industry; and its ability to protect its users' information and adequately address privacy concerns. Further information regarding these and other risks,uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release,and 58.com does not undertake any obligation to update such information,except as required under applicable law.

For more information,please contact:

58.com Inc.

ir@58.com

Christensen

In China

Mr. Christian Arnell

Phone: +86-10-5900-1548

E-mail: carnell@christensenir.com

In US

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: lbergkamp@ChristensenIR.com

58.com Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands,except share and per share data,unless otherwise noted)

As of

December 31,

2017

September 30,

2018

September 30,

2018

RMB

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

1,524,982

1,428,996

207,727

Restricted cash-current

93,350

812,047

118,044

Short-term investments

3,437,707

4,921,441

715,409

Accounts receivable,net

667,750

906,403

131,760

Prepayments and other current assets

657,272

981,581

142,688

Total current assets

6,381,061

9,050,468

1,315,628

Non-current assets:

Restricted cash-non-current

792,000

-

-

Property and equipment,net

1,351,681

1,324,142

192,485

Intangible assets,309,566

1,155,521

167,973

Land use rights,net

3,688

3,630

528

Goodwill

15,864,655

15,655

2,306,177

Long-term investments

1,808,601

3,298,113

479,433

Long-term prepayments and other non-current assets

755,260

545,536

79,302

Total non-current assets

21,885,451

22,191,597

3,225,898

Total assets

28,266,512

31,242,065

4,541,526

LIABILITIES,MEZZANINE EQUITY AND

SHAREHOLDERS' EQUITY

Current liabilities:

Short-term loans

75,000

814,514

118,402

Accounts payable

624,300

990,496

143,984

Deferred revenues

2,123,755

2,419,859

351,765

Customer advances

1,365,437

1,505,259

218,813

Taxes payable

186,491

263,762

38,342

Salary and welfare payable

536,831

574,234

83,474

Accrued expenses and other current liabilities

689,134

735,241

106,879

Total current liabilities

5,600,948

7,303,365

1,061,659

Non-current liabilities:

Long-term loans

777,427

37,500

5,451

Deferred tax liabilities

319,219

294,087

42,750

Other non-current liabilities

17,376

1,675

243

Total non-current liabilities

1,114,022

333,262

48,444

Total liabilities

6,714,970

7,636,627

1,110,103

Mezzanine equity:

Mezzanine classified noncontrolling interests

1,736,405

1,914,560

278,311

Total mezzanine equity

1,311

Shareholders' equity:

58.com Inc. shareholders' equity:

Ordinary shares (US$0.00001 par value,4,800,000 Class A and

200,000 Class B shares authorized,245,924,871 Class A and

48,040,260 Class B shares issued and outstanding as of December

31,2017 and 250,164 Class B shares

issued and outstanding as of September 30,respectively)

18

19

3

Additional paid-in capital

21,338,787

21,526,285

3,129,184

Accumulated deficit

(1,689,683)

(5,971)

(867)

Accumulated other comprehensive loss

(55,671)

(43,798)

(6,366)

Total 58.com Inc. shareholders' equity

19,593,451

21,476,535

3,121,954

Noncontrolling interests

221,686

214,343

31,158

Total shareholders' equity

19,815,137

21,690,878

3,153,112

Total liabilities,mezzanine equity and shareholders' equity

28,526

58.com Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands,except share,per share and per ADS data,unless otherwise noted)

For the Three Months Ended

For the Nine Months Ended

September 30,

2017

September 30,

2018

September 30,

2018

RMB

RMB

US$

RMB

RMB

US$

Revenues:

Membership

994,107

1,181,105

171,692

2,750,712

3,276,850

476,342

Online marketing services

1,660,502

2,328,921

338,545

4,334,005

6,007,559

873,293

E-commerce services

14,664

15,627

2,272

56,491

46,642

6,780

Other services

53,247

101,148

14,703

162,890

197,453

28,703

Total revenues

2,722,520

3,626,801

527,212

7,304,098

9,528,504

1,385,118

Cost of revenues(1)

(227,761)

(380,623)

(55,330)

(662,644)

(980,104)

(142,474)

Gross profit

2,494,759

3,246,178

471,882

6,641,454

8,548,400

1,644

Operating expenses(1):

Sales and marketing expenses(2)

(1,346,202)

(1,920,131)

(279,121)

(3,873,773)

(5,141,943)

(747,462)

Research and development expenses

(372,873)

(468,782)

(68,145)

(1,010,543)

(1,209,224)

(175,780)

General and administrative expenses

(253,255)

(186,713)

(27,142)

(574,386)

(516,947)

(75,146)

Total operating expenses

(1,972,330)

(2,575,626)

(374,408)

(5,458,702)

(6,868,114)

(998,388)

Income from operations

522,429

670,552

97,474

1,182,752

1,680,286

244,256

Other income/(expenses):

Interest income,664

390

56

(9,138)

3,634

528

Investment income,net

55,956

115,378

16,772

314,703

226,226

32,886

Share of results of equity investees

(182,087)

(22,109)

(3,214)

(489,067)

(75,695)

(11,003)

Foreign currency exchange gain/(loss),net

313

790

115

497

(104)

(15)

Others,net

42,726

9,271

1,348

46,298

52,559

7,640

Income before tax

441,001

774,272

112,551

1,046,045

1,886,906

274,292

Income tax expenses

(51,150)

(16,798)

(2,442)

(104,545)

(206,266)

(29,984)

Net income

389,851

757,474

110,109

941,500

1,640

244,308

Net loss/(income) attributable to noncontrolling interests

(1,785)

2,649

385

(3,904)

3,070

446

Deemed dividend to mezzanine classified noncontrolling

interests

(34,809)

(33,959)

(4,936)

(66,585)

(97,651)

(14,195)

Net income attributable to 58.com Inc.

353,257

726,164

105,558

871,011

1,059

230,559

For the Three Months Ended

For the Nine Months Ended

September 30,

2018

RMB

RMB

US$

RMB

RMB

US$

Net earnings per ordinary share attributable to ordinary

shareholders‑ basic

1.21

2.46

0.36

2.99

5.38

0.78

Net earnings per ordinary share attributable to ordinary

shareholders‑ diluted

1.19

2.42

0.35

2.96

5.29

0.77

Net earnings per ADS attributable to ordinary shareholders

– basic (1 ADS represents 2 Class A ordinary shares)

2.42

4.92

0.72

5.99

10.76

1.56

Net earnings per ADS attributable to ordinary shareholders

– diluted (1 ADS represents 2 Class A ordinary shares)

2.38

4.84

0.70

5.92

10.59

1.54

Weighted average number of ordinary shares used in

computing basic earnings per share

291,777,760

295,068,924

295,924

290,853,040

294,681,288

294,288

Weighted average number of ordinary shares used in

computing diluted earnings per share

296,017

299,839,409

299,409

294,994

299,630,643

299,643

Note:

(1) Share based compensation expenses were allocated in cost of revenues and operating expenses as follows:

Cost of revenues

1,141

2,198

320

2,139

4,313

627

Sales and marketing expenses

19,383

30,427

4,423

51,986

63,761

9,269

Research and development expenses

30,050

55,785

8,109

91,260

126,501

18,389

General and administrative expenses

40,459

47,208

6,862

106,441

130,496

18,970

Amortization of intangible assets resulting from business acquisitions were allocated in operating expenses as follows:

Sales and marketing expenses

43,671

43,637

6,343

132,486

130,923

19,032

Research and development expenses

11,677

11,677

1,698

35,031

35,031

5,092

(2) Breakdown of sales and marketing expenses was as follows:

Advertising expenses

541,209

978,219

142,200

1,135

2,513,055

365,312

Non-advertising sales and marketing expenses

804,993

941,912

136,921

2,638

2,628,888

382,150

58.comInc.

Reconciliation of GAAP and Non-GAAP Results

(in thousands,ADS,

2018

RMB

RMB

US$

RMB

RMB

US$

GAAP income from operations

522,256

Share-based compensation expenses[5]

85,581

130,660

18,993

246,374

310,535

45,142

Amortization of intangible assets resulting from

business acquisitions

55,348

55,314

8,041

167,517

165,954

24,124

Non-GAAP income from operations

663,358

856,526

124,508

1,596,643

2,156,775

313,522

GAAP net income attributable to 58.com Inc.

353,559

Share-based compensation expenses

85,124

Change in fair value of long-term investments

-

(67,450)

(9,805)

-

(67,805)

Share-based compensation expenses included in

share of results of equity investees

(1,972)

8

1

2,386

1

Income tax effects of GAAP to non-GAAP

reconciling items[6]

(13,556)

(1,218)

(177)

(41,317)

(28,330)

(4,118)

Non-GAAP net income attributable to 58.com Inc.

478,658

843,478

122,611

1,971

1,966,769

285,902

For the Three Months Ended

For the Nine Months Ended

September 30,

2018

RMB

RMB

US$

RMB

RMB

US$

GAAP operating margin

19.2 %

18.5%

18.5%

16.2%

17.6%

17.6%

Share-based compensation expenses

3.1%

3.6%

3.6%

3.3%

3.3%

3.3%

Amortization of intangible assets resulting from

business acquisitions

2.0%

1.5%

1.5%

2.3%

1.7%

1.7%

Non-GAAP operating margin

24.3%

23.6%

23.6%

21.8%

22.6%

22.6%

GAAP net margin

13.0%

20.0%

20.0%

11.9%

16.6%

16.6%

Share-based compensation expenses

3.1%

3.6%

3.6%

3.3%

3.3%

3.3%

Amortization of intangible assets resulting from

business acquisitions

2.0%

1.5%

1.5%

2.3%

1.7%

1.7%

Change in fair value of long-term investments

-

(1.8)%

(1.8)%

-

(0.7)%

(0.7)%

Share-based compensation expenses included in

share of results of equity investees

(0.1)%

0.0%

0.0%

0.0%

0.0%

0.0%

Income tax effects of GAAP to non-GAAP

reconciling items

(0.5)%

(0.0)%

(0.0)%

(0.6)%

(0.3)%

(0.3)%

Non-GAAP net margin

17.5%

23.3%

23.3%

16.9%

20.6%

20.6%

Weighted average number of ordinary shares used

in computing non-GAAP basic earnings per share

291,288

Weighted average number of ordinary shares used

in computing non-GAAP diluted earnings per share

296,643

Weighted average number of ADS used in

computing non-GAAP basic earnings per ADS

145,888,880

147,534,462

147,462

145,426,520

147,340,644

147,644

Weighted average number of ADS used in

computing non-GAAP diluted earnings per ADS

148,508

149,919,704

149,704

147,218,997

149,321

149,321

Non-GAAP net earnings per ordinary share

attributable to ordinary shareholders ‑ basic

1.64

2.86

0.42

4.28

6.67

0.97

Non-GAAP net earnings per ordinary share

attributable to ordinary shareholders ‑ diluted

1.61

2.81

0.41

4.23

6.56

0.95

Non-GAAP net earnings per ADS attributable to

ordinary shareholders ‑ basic

3.28

5.72

0.83

8.57

13.35

1.94

Non-GAAP net earnings per ADSattributable to

ordinary shareholders ‑ diluted

3.23

5.63

0.82

8.46

13.13

1.91

[1] This press release contains translations of certain Renminbi amounts into U.S. dollars (US$) solely for the convenience of

the readers. Unless otherwise specified,all translations of Renminbi (RMB) amounts into US$ amounts in this press release

are made at RMB6.8792 to US$1.00,which was the U.S. dollars middle rate announced by the PRC State Administration of

Foreign Exchange on September 28,2018. The percentages stated in this press release are calculated based on the Renminbi

amounts. On November 14,such exchange rate was RMB6.9402 to US$1.00.

[2] Non-GAAP income from operations is defined as income from operations excluding share-based compensation expenses

and amortization of intangible assets resulting from business acquisitions. See "Reconciliation of GAAP and Non-GAAP

Results" at the end of this press release.

[3] Non-GAAP net income attributable to 58.com Inc. is defined as net income attributable to 58.com Inc. excluding share-

based compensation expenses,change in fair value of

long-term investments,and income tax

effects of GAAP to non-GAAP reconciling items. See "Reconciliation of GAAP and Non-GAAP Results" at the end of this

press release.

[4] Non-GAAP basic and diluted earnings per ADS is defined as non-GAAP net income attributable to 58.com Inc. divided by

weighted average number of basic and diluted ADSs.

[5] Since the third quarter of 2017,certain share-based awards with redemption features granted to the Company's employees

were expected to be settled in cash and were classified as liabilities. The share-based compensation expenses recognized for

this type of awards amounted to RMB5.0 million and RMB14.5 million for the three months and nine months ended September

30,and were excluded from the GAAP to non-GAAP reconciliation accordingly.

[6] This is to exclude the income tax benefits related to amortization of intangible assets resulting from business acquisitions

calculated at PRC statutory income tax rate of 25% and income tax expense resulting from change in fair value of long-term

investments. Other GAAP to non-GAAP reconciling items have no income tax effect.

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