SINA Reports Fourth Quarter and Fiscal Year 2018 Unaudited Financial Results

BEIJING,March 5,2019 -- SINA Corporation (the "Company" or "SINA") (NASDAQ: SINA),a leading online media company serving China and the global Chinese communities,today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31,2018.

Fourth Quarter 2018 Highlights

Both net revenues and non-GAAP net revenues increased 14% year-over-year to $573.0 million and $570.4 million,respectively.

Advertising revenues increased 14% year-over-year to $484.3 million.

Non-advertising revenues increased 12% year-over-year to $88.7 million. Non-GAAP non-advertising revenues increased 13% year-over-year to $86.1 million.

Net income attributable to SINA was $16.4 million,or $0.22 for diluted net income per share attributable to SINA's ordinary shareholders. Non-GAAP net income attributable to SINA was $57.7 million,or $0.80 for non-GAAP diluted net income per share attributable to SINA's ordinary shareholders.

Weibo's monthly active users ("MAUs") were 462 million in December 2018,a net addition of approximately 70 million users on a year-over-year basis. Weibo's mobile MAUs represented 93% of Weibo's MAUs.

Weibo's average daily active users ("DAUs") were 200 million in December 2018,a net addition of approximately 28 million users on a year-over-year basis.

Fiscal Year 2018 Highlights

Both net revenues and non-GAAP net revenues increased 33% year-over-year to $2.11 billion and $2.10 billion,respectively.

Advertising revenues increased 36% year-over-year to $1.79 billion.

Non-advertising revenues increased 17% year-over-year to $319.0 million. Non-GAAP non-advertising revenues increased 18% year-over-year to $308.6 million.

Net income attributable to SINA was $125.6 million,or $1.70 for diluted net income per share attributable to SINA's ordinary shareholders. Non-GAAP net income attributable to SINA was $227.1 million,or $3.07 for non-GAAP diluted net income per share attributable to SINA's ordinary shareholders.

FourthQuarter 2018 Financial Results

For the fourth quarter of 2018,SINA reported net revenues of $573.0 million,an increase of 14% compared to $503.7 million for the same period last year. Non-GAAP net revenues for the fourth quarter of 2018 were $570.4 million,an increase of 14% compared to $501.1 million for the same period last year.

Advertising revenues for the fourth quarter of 2018 were $484.3 million,an increase of 14% compared to $424.8 million for the same period last year,primarily driven by an increase of $84.7 million,or 25% growth in Weibo advertising and marketing revenues.

Non-advertising revenues for the fourth quarter of 2018 were $88.7 million,an increase of 12% compared to $79.0 million for the same period last year. Non-GAAP non-advertising revenues for the fourth quarter of 2018 were $86.1 million,an increase of 13% compared to $76.4 million for the same period last year. The year-over-year growth in non-advertising revenues was mainly attributable to the newly acquired live broadcasting business by Weibo in the fourth quarter of 2018.

Gross margin for the fourth quarter of 2018 was 79%,compared to 75% for the same period last year. Advertising gross margin for the fourth quarter of 2018 was 82%,compared to 76% for the same period last year. The increase in advertising gross margin was due to our revenue reporting changed from gross basis to net basis under the new revenue guidance adopted. Non-advertising gross margin for the fourth quarter of 2018 was 57%,down from 66% for the same period last year,mainly resulted from the relatively lower margin of the acquired live broadcasting business of Weibo.

Operating expenses for the fourth quarter of 2018 totaled $319.9 million,compared to $248.4 million for the same period last year. The increase primarily resulted from the inclusion of marketing expense related to barter transactions recorded under the new revenue guidance as illustrated below as well as goodwill and acquired intangibles impairment charge for non-core business line. Non-GAAP operating expenses for the fourth quarter of 2018 totaled $288.6 million,compared to $226.8 million for the same period last year.

Income from operations for the fourth quarter of 2018 was $130.1 million,compared to $128.7 million for the same period last year. Operating margin was 23%,down from 26% for the same period last year. Non-GAAP income from operations for the fourth quarter of 2018 was $159.6 million,compared to $149.8 million for the same period last year. Non-GAAP operating margin was 28%,slightly down from 30% for the same period last year.

Non-operating loss for the fourth quarter of 2018 was $12.6 million,compared to a non-operating income of $7.7 million for the same period last year. Non-operating loss for the fourth quarter of 2018 included (i) a $23.0 million net loss on sale of investments,fair value changes and impairment on investments,which is excluded under non-GAAP measure; (ii) a $15.1 million net interest and other income; and (iii) a $4.7 million net loss from equity-method investments,which is reported one quarter in arrears. Non-operating income for the fourth quarter of 2017 composed of an $11.2 million net interest and other income and a $2.8 million loss pick-up from equity-method investments,which is reported one quarter in arrears.

Income tax expenses for the fourth quarter of 2018 were $14.3 million,compared to $17.2 million for the same period last year.

Net income attributable to SINA's ordinary shareholders for the fourth quarter of 2018 was $16.4 million,compared to $45.4 million for the same period last year. Diluted net income per share attributable to SINA's ordinary shareholders for the fourth quarter of 2018 was $0.22,compared to $0.60 for the same period last year. Non-GAAP net income attributable to SINA's ordinary shareholders for the fourth quarter of 2018 was $57.7 million,compared to $60.0 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA's ordinary shareholders for the fourth quarter of 2018 was $0.80,compared to $0.79 for the same period last year.

As of December 31,2018,SINA's cash,cash equivalents and short-term investments totaled $2.3 billion,compared to $3.4 billion as of December 31,2017. The decrease of SINA's cash,cash equivalents and short-term investments mainly resulted from continued investment activities,the execution of the Company's share repurchase program and repayment of SINA's convertible senior notes. For the fourth quarter of 2018,net cash provided by operating activities was $138.9 million,capital expenditures totaled $17.1 million,and depreciation and amortization expenses amounted to $11.9 million.

Fiscal Year 2018 Financial Results

For fiscal year 2018,SINA reported net revenues of $2.11 billion,an increase of 33% compared to $1.58 billion in 2017. Non-GAAP net revenues for 2018 were $2.10 billion,an increase of 33% compared to $1.57 billion in 2017.

Advertising revenues in 2018 were $1.79 billion,an increase of 36% compared to $1.31 billion in 2017,primarily driven by an increase of $502.4 million,or 50% growth in Weibo advertising and marketing revenues.

Non-advertising revenues in 2018 were $319.0 million,an increase of 17% compared to $272.0 million in 2017. Non-GAAP non-advertising revenues in 2018 were $308.6 million,an increase of 18% compared to $261.6 million in 2017,benefiting from increased Weibo membership fees and incremental revenue contributed from the live broadcasting business of Weibo.

Gross margin in 2018 was 79%,compared to 74% in 2017. Advertising gross margin in 2018 was 81%,compared to 75% in 2017. The increase in advertising gross margin mainly resulted from our revenue reporting changed from gross basis to net basis under the new accounting standard adopted. Non-advertising gross margin in 2018 was 65%,slightly down from 67% in 2017.

Operating expenses in 2018 totaled $1.19 billion,compared to $781.2 million in 2017. Apart from the inclusion of marketing expense related to barter transactions recorded under the new revenue guidance as illustrated below,the increase in operating expenses was also attributable to the increase in sales and marketing expenses for Weibo's user acquisition and the increase in personnel related expenses. Non-GAAP operating expenses in 2018 totaled $1.07 billion,compared to $694.6 million in 2017.

Income from operations in 2018 was $467.0 million,compared to $388.6 million in 2017. Operating margin was 22%,down from 25% in 2017. Non-GAAP income from operations in 2018 was $581.5 million,compared to $474.0 million in 2017. Non-GAAP operating margin was 28%,slightly down from 30% in 2017.

Non-operating income in 2018 was $88.5 million,compared to $35.7 million in 2017. Non-operating income in 2018 included (i) a $69.4 million net interest and other income; (ii) an $18.0 million net gain on sale of investments,which is excluded under non-GAAP measure; and (iii) a $1.1 million net income from equity-method investments,which is reported one quarter in arrears. Non-operating income in 2017 mainly included (i) a $42.7 million net interest and other income; (ii) a $16.1 million net loss from equity-method investments,which is reported one quarter in arrears; and (iii) a $9.0 million net gain on sale of investments,which is excluded under non-GAAP measure.

Income tax expenses in 2018 were $129.1 million,compared to $74.7 million in 2017. The increase was primarily due to higher profits generated in 2018 and the deferred tax provision recognized in respect of the fair value changes of investments. Non-GAAP income tax expenses in 2018 were $91.0 million,compared to $73.9 million in 2017.

Net income attributable to SINA's ordinary shareholders in 2018 was $125.6 million,compared to $156.6 million in 2017. Diluted net income per share attributable to SINA's ordinary shareholders in 2018 was $1.70,compared to $2.09 in 2017. Non-GAAP net income attributable to SINA's ordinary shareholders in 2018 was $227.1 million,compared to $207.9 million in 2017. Non-GAAP diluted net income per share attributable to SINA's ordinary shareholders in 2018 was $3.07,compared to $2.77 in 2017.

For the fiscal year of 2018,net cash provided by operating activities was $311.0 million,capital expenditures totaled $262.2 million,and depreciation and amortization expenses amounted to $41.2 million.

Financial Impact from New Revenue Guidance

As the Company adopted new revenue guidance ASC Topic 606 on January 1,2018,results for reporting periods beginning after January 1,2018 are presented under Topic 606 ('New Basis'),while prior period amounts are not adjusted and continue to be reported under Topic 605 ('Old Basis'),which is the Company's historic accounting method.

The Company's current period reported results which reflected the impact from the adoption of the new revenue guidance are as follows:

Three months ended December 31,2018

Adjustments

Old Basis

ASC 605

VAT

Barter

Transaction

New Basis

ASC 606

($ In thousands,except for percentage)

Net revenues

556,519

(31,196)

47,691

573,014

- Portal

99,497

(5,463)

643

94,677

- Weibo

460,772

(25,945)

47,048

481,875

Cost of revenues

154,241

(31,196)

-

123,045

Operating expenses

276,081

-

43,834

319,915

- Sales and marketing

147,374

-

43,834

191,208

Income from operations

126,197

-

3,857

130,054

Gross margin

72.3%

78.5%

Operating margin

22.7%

22.7%

Year ended December 31,2018

Adjustments

Old Basis

ASC 605

VAT

Barter

Transaction

New Basis

ASC 606

($ In thousands,except for percentage)

Net revenues

2,113,954

(118,006)

112,379

2,108,327

- Portal

422,835

(23,243)

2,035

401,627

- Weibo

1,703,644

(95,470)

110,344

1,718,518

Cost of revenues

570,046

(118,006)

-

452,040

Operating expenses

1,076,520

-

112,813

1,189,333

- Sales and marketing

587,149

-

112,813

699,962

Income from operations

467,388

-

(434)

466,954

Gross margin

73.0%

78.6%

Operating margin

22.1%

22.1%

Business Outlook

For the fiscal year 2019,SINA estimates that its net revenues are between RMB16.5 billion and RMB17.5 billion,or US$2.44 billion and US$2.59 billion,assuming US dollar and RMB exchange rate of 6.75. It represents an annual growth rate of 18% to 25% on a constant currency basis. Such revenue forecast includes the recognition of $10.4 million in deferred license revenues related to the license granted to Leju. This forecast reflects SINA's current and preliminary view,which is subject to change.

Non-GAAP Measures

This release contains the following non-GAAP financial measures: non-GAAP net revenues,non-GAAP non-advertising revenues,non-GAAP advertising and non-advertising gross margin,non-GAAP operating expenses,non-GAAP income from operations,non-GAAP operating margin,non-GAAP net income attributable to SINA's ordinary shareholders and non-GAAP diluted net income per share attributable to SINA's ordinary shareholders. These non-GAAP financial measures should be considered in addition to,not as a substitute for,measures of the Company's financial performance prepared in accordance with U.S. GAAP. The Company's non-GAAP financial measures may be defined differently than similar terms used by other companies. Accordingly,care should be exercised in understanding how the Company defines its non-GAAP financial measures.

The Company's non-GAAP financial measures exclude recognition of deferred revenues related to the license granted to Leju,stock-based compensation,amortization of intangible assets,goodwill and acquired intangibles impairment,adjustment for non-GAAP to GAAP reconciling items on the share of equity method investments,gain (loss) on sale of investment,deemed disposal,fair value changes and impairment on investment,and income tax effects of above non-GAAP to GAAP reconciling items and adjustment for non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests and amortization of convertible debt issuance cost. The Company's management uses these non-GAAP financial measures in their financial and operating decision-making,because management believes these measures reflect the Company's ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company's current financial results with the Company's past financial results in a consistent manner,and (ii) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does,if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses,gain/loss and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook.

Use of non-GAAP financial measures has limitations. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to non-GAAP financial measures used by other companies. Management compensates for these limitations by also considering the Company's financial results prepared in accordance with U.S. GAAP. Reconciliations of the Company's non-GAAP measures to the nearest comparable GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results."

Conference Call

SINA will host a conference call from 7:10 a.m. – 7:40 a.m. Eastern Time on March 5,2019 (or 8:10 p.m. – 8:40 p.m. Beijing Time on March 5,2019) to present an overview of the Company's financial performance and business operations. A live webcast of the call will be available through the Company's corporate website at http://ir.sina.com.The conference call can be accessed as follows:

US:

+1 845 675 0438

Hong Kong:

+852 3018 6776

China:

400 120 0654

International:

+65 6713 5440

Passcode for all regions:

4677406

A replay of the conference call will be available through morning Eastern Time March 13,2019. The dial-in number is +61 2 9003 4211. The passcode for the replay is 4677406.

About SINA

SINA is a leading online media company serving China and the global Chinese communities. Its digital media network of SINA.com (portal),SINA mobile (mobile portal and mobile apps) and Weibo (social media) enables internet users to access professional media and user generated content in multi-media formats from personal computers and mobile devices and share their interests with friends and acquaintances.

SINA.com offers distinct and targeted professional content on each of its region-specific websites and a full range of complementary offerings. SINA mobile provides news information,professional and entertainment content customized for mobile users through mobile applications and mobile portal site SINA.cn.

Weibo is a leading social media platform for people to create,distribute and discover content. Based on an open platform architecture,Weibo provides unprecedented and simple way for people and organizations to publicly express themselves in real time,interact with others on a massive global platform and stay connected with the world.

Through these properties and other product lines,SINA offer an array of online media and social media services to its users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences.

Safe Harbor Statement

This press release contains forward-looking statements that relate to,among other things,SINA's expected financial performance and SINA's strategic and operational plans (as described,without limitation,in quotations from management in this press release). SINA may also make forward-looking statements in the Company's periodic reports 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. Statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. SINA assumes no obligation to update the forward-looking statements in this press release and elsewhere. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include,but are not limited to failure to meet internal or external expectations of future performance given the rapidly evolving markets; condition of the global financial and credit market; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on online advertising sales and value-added services for a majority of its revenues; failure to successfully develop,introduce,drive adoption of or monetize new features and products,including portal,Weibo and fin-tech products; failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties,such as Alibaba; failure to successfully integrate acquired businesses; risks associated with the Company's investments,including equity pick-up and impairment; and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA's 2017 annual reports on Form 20-F and other filings with the Securities and Exchange Commission.

Contact:

Investor Relations

SINA Corporation

Phone: +86 10 5898 3336

Email: ir@staff.sina.com.cn

SINA CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. Dollars in thousands,except per share data)

Three months ended

Year ended

December 31,

September 30,

December 31,

2018

2017

2018

2018

2017

Net revenues(1):

Advertising

$ 484,307

$ 424,756

$ 483,806

$ 1,789,285

$ 1,311,866

Non-advertising

88,707

78,982

73,395

319,042

272,018

573,014

503,738

557,201

2,327

1,583,884

Cost of revenues(1)(2):

Advertising

85,048

99,858

92,407

341,153

325,494

Non-advertising

37,997

26,812

21,408

110,887

88,643

123,045

126,670

113,815

452,040

414,137

Gross profit

449,969

377,068

443,386

1,656,287

1,169,747

Operating expenses:

Sales and marketing (1)(2)

191,208

143,020

185,478

699,962

408,856

Product development (2)

85,383

78,977

91,545

345,942

267,392

General and administrative (2)

30,633

26,421

28,377

120,184

104,923

Goodwill and acquired intangibles impairment

12,691

-

10,554

23,245

-

319,915

248,418

315,954

1,333

781,171

Income from operations

130,054

128,650

127,432

466,954

388,576

Non-operating income (loss):

Earning (Loss) from equity method investments,net

(4,731)

(2,843)

10,150

1,120

(16,070)

Gain (Loss) on sale of investments,fair value changes and impairment

on investments,net (3)

(22,960)

(740)

50,111

17,981

9,037

Interest and other income,net

15,090

11,244

17,051

69,355

42,696

(12,601)

7,661

77,312

88,456

35,663

Income before income taxes

117,453

136,311

204,744

555,410

424,239

Income tax expense

(14,347)

(17,160)

(68,129)

(129,084)

(74,676)

Net income

103,106

119,151

136,615

426,326

349,563

Less: Net income attributable to non-controlling interests

86,729

73,787

91,176

300,764

192,994

Net income attributable to SINA's ordinary shareholders

$ 16,377

$ 45,364

$ 45,439

$ 125,562

$ 156,569

Basic net income per share

$ 0.24

$ 0.63

$ 0.66

$ 1.79

$ 2.20

Diluted net income per share (4)

$ 0.22

$ 0.60

$ 0.62

$ 1.70

$ 2.09

Shares used in computing basic net income per share

69,235

71,516

69,332

70,296

71,284

Shares used in computing diluted net income per share

69,666

74,213

71,322

72,375

73,931

(1) On January 1,the Company adopted ASC 606 Revenue from Contracts with Customers using the modified retrospective method,which means that prior periods amount will be

reported on a historical basis and amounts for 2018 are reported on the new basis. Under the new accounting standard,the main impact to the Company is that it now reports revenue net of

value added tax and recognizes revenues and expenses at fair value for advertising barter transactions.

(2) Stock-based compensation in each category:

Cost of revenues

$ 922

$ 2,145

$ 3,775

$ 10,128

$ 9,257

Sales and marketing

3,174

5,370

7,414

21,942

20,790

Product development

4,403

6,432

11,205

30,830

29,163

General and administrative

8,834

8,237

9,012

32,169

32,177

(3) The Company adopted ASU 2016-1,Classification and Measurement of Financial Instruments beginning the first quarter of fiscal year 2018. After the adoption of this new accounting

update,the Company measures long-term investments other than those accounted for under the equity method,at fair value through earnings. For those investments without readily

determinable fair values,the Company elected to record these investments at cost,less impairment,and plus or minus subsequent adjustments for observable price changes. Changes in the

basis of these investments are reported in current earnings. The Company recognized net loss of $20.3 million and net gain of $96.5 million from fair value changes in the investments for the

three months and the year ended December 31,respectively.

(4) Net income attributable to SINA's ordinary shareholders is adjusted for diluted shares issued by our subsidiary and equity method investments.

SINA CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

December 31,

2018

2017

Assets

Current assets:

Cash and cash equivalents

$ 1,545,800

$ 1,990,552

Short-term investments

799,534

1,381,991

Restricted cash

97,032

216,151

Accounts receivable,net

527,897

285,681

Prepaid expenses and other current assets

362,435

228,238

Subtotal

3,332,698

4,102,613

Property and equipment,net

262,846

262,676

Goodwill and intangible assets,net

319,575

104,207

Long-term investments (1)

1,889,843

1,288,816

Other assets

81,127

57,082

Total assets

$ 5,886,089

$ 5,815,394

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable

$ 172,562

$ 130,431

Amount due to customers

97,151

Accrued expenses and other current liabilities

540,807

446,779

Short-term bank loan

78,229

89,309

Convertible debt (2)

-

153,092

Deferred revenues

139,306

134,580

Income taxes payable

115,725

102,458

Subtotal

1,143,661

1,272,800

Convertible debt

884,123

879,983

Long-term deferred revenues

43,652

54,372

Other long-term liabilities

51,781

8,510

Total liabilities

2,123,217

2,215,665

Shareholders' equity

SINA shareholders' equity (1)

2,717,791

2,846,842

Non-controlling interests

1,045,081

752,887

Total shareholders' equity

3,762,872

3,599,729

Total liabilities and shareholders' equity

$ 5,394

1)The Company adopted ASU 2016-1,Classification and Measurement of Financial Instruments beginning the first quarter

of fiscal year 2018. After the adoption of this new accounting update,the Company measures long-term investments other

than those investments accounted for under the equity method,at fair value through earnings. For those investments

without readily determinable fair values,and plus

or minus subsequent adjustments for observable price changes. Changes in the basis of these investments are reported in

current earnings. The cumulative impact arising from the adoption was a credit to retained earnings as of January 1,2018 of

$49.0 million.

(2)In December 2018,the Company repaid $153.1 million in aggregate principal amount of 1.00% coupon interest

convertible senior notes on its maturity date.

SINA CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(U.S. Dollars in thousands)

Three months ended

Year ended

December 31,

2018

2017

2018

2018

2017

Net revenues

Portal:

Portal Advertising

$ 67,377

$ 95,319

$ 74,533

$ 290,215

$ 320,473

Other

27,300

33,842

26,707

111,412

122,535

Subtotal

94,677

129,161

101,240

401,627

443,008

Weibo:

Advertising and marketing

417,016

332,305

409,273

1,499,180

996,745

Weibo VAS

64,859

45,140

50,898

219,338

153,309

Subtotal

481,875

377,445

460,171

1,518

1,150,054

Elimination

(3,538)

(2,868)

(4,210)

(11,818)

(9,178)

$ 573,014

$ 503,738

$ 557,201

$ 2,327

$ 1,884

Cost of revenues

Portal:

Portal Advertising

$ 29,180

$ 35,647

$ 30,501

$ 117,600

$ 121,278

Other

14,377

19,180

17,508

68,500

65,733

Subtotal

43,557

54,827

48,009

186,100

187,011

Weibo

82,940

72,005

70,016

277,648

231,255

Elimination

(3,452)

(162)

(4,708)

(4,129)

$ 123,045

$ 126,670

$ 113,815

$ 452,040

$ 414,137

Gross margin

Portal

54%

58%

53%

54%

58%

Weibo

83%

81%

85%

84%

80%

79%

75%

80%

79%

74%

SINA CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(U.S. Dollars in thousands,except per share data)

Three months ended

December 31,2018

December 31,2017

September 30,2018

Non-GAAP

Non-GAAP

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

Actual

Adjustments

Results

Advertising revenues

$ 484,307

$ 484,307

$ 424,756

$ 424,756

$ 483,806

$ 483,806

Non-advertising revenues

88,707

(2,609)

(a)

86,098

78,982

(2,609)

(a)

76,373

73,395

(2,609)

(a)

70,786

Net revenues

$ 573,014

$ (2,609)

$ 570,405

$ 503,738

$ (2,609)

$ 501,129

$ 557,201

$ (2,609)

$ 554,592

(2,609)

(a)

(2,609)

(a)

922

(b)

2,145

(b)

3,775

(b)

Gross profit

$ 449,969

$ (1,687)

$ 448,282

$ 377,068

$ (464)

$ 376,604

$ 443,386

$ 1,166

$ 444,552

(16,411)

(b)

(27,631)

(b)

(2,177)

(c)

(20,039)

(b)

(1,354)

(c)

(12,691)

(d)

(1,535)

(c)

(10,554)

(d)

Operating expenses

$ 319,915

$ (31,279)

$ 288,636

$ 248,418

$ (21,574)

$ 226,844

$ 315,954

$ (39,539)

$ 276,415

(2,609)

(a)

17,333

(b)

(2,609)

(a)

31,406

(b)

2,177

(c)

22,184

(b)

1,354

(c)

12,691

(d)

1,535

(c)

10,554

(d)

Income from operations

$ 130,054

$ 29,592

$ 159,646

$ 128,650

$ 21,110

$ 149,760

$ 127,432

$ 40,705

$ 168,137

(2,554

(d)

4,797

(e)

1,503

(e)

(6,879)

(e)

22,960

(f)

740

(f)

(50,111)

(f)

(14,929)

(g)

(9,197)

(g)

(2,845)

(g)

1,035

(h)

690

(h)

1,035

(h)

(2,138)

(i)

(253)

(i)

40,311

(i)

Net income attributable to SINA's ordinary shareholders

$ 16,377

$ 41,317

$ 57,694

$ 45,364

$ 14,593

$ 59,957

$ 45,439

$ 22,216

$ 67,655

Diluted net income per share *

$ 0.22

$ 0.80

$ 0.60

$ 0.79

$ 0.62

$ 0.93

Shares used in computing diluted net incomeper share

69,666

960

(j)

70,626

74,213

-

74,322

-

71,322

Gross margin - advertising

82%

1%

83%

76%

1%

77%

81%

1%

82%

Gross margin - non-advertising

57%

-1%

56%

66%

-1%

65%

71%

-1%

70%

Operating margin

23%

5%

28%

26%

4%

30%

23%

7%

30%

Year ended

December 31,2017

Non-GAAP

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

Advertising revenues

$1,285

$1,285

$ 1,866

$1,866

Non-advertising revenues

319,042

(10,436)

(a)

308,606

272,018

(10,436)

(a)

261,582

Net revenues

$2,327

$ (10,436)

$2,097,891

$ 1,884

$ (10,436)

$1,573,448

(10,436)

(a)

(10,436)

(a)

10,128

(b)

9,257

(b)

Gross profit

$1,287

$ (308)

$1,655,979

$ 1,747

$ (1,179)

$1,168,568

(84,941)

(b)

(6,689)

(c)

(82,130)

(b)

(23,245)

(d)

(4,455)

(c)

Operating expenses

$1,333

$ (114,875)

$1,074,458

$ 781,171

$ (86,585)

$ 694,586

(10,436)

(a)

95,069

(b)

(10,436)

(a)

6,689

(c)

91,387

(b)

23,245

(d)

4,455

(c)

Income from operations

$ 466,954

$ 114,567

$ 581,521

$ 388,576

$ 85,406

$ 473,982

(10,455

(c)

(2,493)

(e)

3,276

(e)

(17,981)

(f)

(9,037)

(f)

(34,806)

(g)

(29,827)

(g)

4,140

(h)

690

(h)

38,109

(i)

785

(i)

Net income attributable to SINA's ordinary shareholders

$ 125,562

$ 101,536

$ 227,098

$ 156,569

$ 51,293

$ 207,862

Diluted net income per share *

$ 1.70

$ 3.07

$ 2.09

$ 2.77

Shares used in computing diluted net income per share

72,375

-

72,931

-

73,931

Gross margin - advertising

81%

-

81%

75%

1%

76%

Gross margin - non-advertising

65%

-1%

64%

67%

-1%

66%

Operating margin

22%

6%

28%

25%

5%

30%

(a) To exclude the recognition of deferred revenue related to the license granted to Leju.

(b) To exclude stock-based compensation.

(c) To adjust amortization of intangible assets.

(d) To exclude goodwill and acquired intangibles impairment

(e) To exclude the non-GAAP to GAAP reconciling items on the share of equity method investments,net of share of amortization of intangibles not on their books.

(f) To exclude (gain) loss on sale of investments,(gain) loss on deemed disposal,net.

(g) To exclude Non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests.

(h) To exclude the amortization of convertible debt issuance cost.

(i) To exclude the provision (benefit) for income tax related to item (c),(d) and (f). Other non-GAAP to GAAP reconciling items have no income tax effect.**

(j) To adjust the number of shares for dilution resulted from convertible debt and unvested equity granted.

*

Net income attributable to SINA's ordinary shareholders is adjusted for diluted shares issued by our subsidiary and equity method investments.

**

The Company considered the tax implication arising from the reconciliation items,and those items recorded in entities in tax free jurisdictions were without relevant tax implications.

For impairment on investments,valuation allowances were made for those differences the Company does not expect they can be realized in the foreseeable future.

UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' NON-GAAP TO GAAP RESULTS*

Three months ended

December 31,2018

Actual

Adjustments

Non-GAAP

Results

Actual

Adjustments

Non-GAAP

Results

Actual

Adjustments

Non-GAAP

Results

To exclude stock-based compensation

$ 350

$ 881

$ 674

To exclude amortization of intangible

assets resulting from business acquisitions

1,062

1,177

1,079

Toexcludelossondisposal and impairment on investments,net

-

848

1,245

To exclude (gain) loss resulting from the fair value changes in investments,net

4,062

(1,426)

(9,187)

To exclude tax impacts related to amortization of intangible assets

(248)

(178)

(263)

Earning (Loss) from equity method investments,net

$ (5,160)

$ 5,226

$ 66

$ (2,642)

$ 1,302

$ (1,340)

$ 9,723

$ (6,452)

$ 3,271

Share of amortization of equity investments'

intangibles not on their books

367

(367)

-

(253)

253

-

364

(364)

-

Share of tax impacts related to amortization of

equity investments' intangibles not on their books

62

(62)

-

52

(52)

-

63

(63)

-

$ (4,731)

$ 4,797

$ 66

$ (2,843)

$ 1,503

$ (1,340)

$ 10,150

$ (6,879)

$ 3,271

Year ended

December 31,2017

Non-GAAP

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

To exclude stock-based compensation

$ 2,441

$ 3,759

To exclude amortization of intangible

assets resulting from business acquisitions

4,379

3,441

Toexclude(gain) lossondisposal and impairment on investments,net

2,989

(465)

To exclude gain resulting from the fair value changes in

investments,net

(9,777)

(3,769)

To exclude tax impacts related to amortization of intangible assets

(942)

(508)

Loss from equity method investments,net

$ (463)

$ (910)

$ (1,373)

$ (15,252)

$ 2,458

$ (12,794)

Share of amortization of equity investments'

intangibles not on their books

1,306

(1,306)

-

(1,031)

1,031

-

Share of tax impacts related to amortization of

equity investments' intangibles not on their books

277

(277)

-

213

(213)

-

$ 1,120

$ (2,493)

$ (1,373)

$ (16,070)

$ 3,276

$ (12,794)

* Earning (Loss) from equity method investments is recorded one quarter in arrears.

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