58.com Inc. (NYSE: Wuba), China’s largest online classifieds marketplace, announced a strong set of financial results for Q3 of FY2016.

In Q3, it generated total revenue of $307 million U.S., which was 44 percent more than in Q3 of FY2015, and in line with the company’s guidance of between $304 million and $311 million.

The gross margin was 91.4 percent, compared with 93.2 percent in the same quarter of 2015. Income from operations was $21.5 million, compared with a loss of $85.3 million made from operations in Q3 of FY2015.

The net loss attributable to 58.com Inc. was $30 million, compared with a net loss of $206 million in the same quarter of 2015. Basic and diluted losses per ADS attributable to ordinary shareholders were $0.21. (One ADS represents two Class A ordinary shares.)

 Michael, CEO of 58.com

Michael Yao Jinbo, CEO of 58.com (photo from his LinkedIn page with thanks) 

The integration of former competitor Ganji into 58.com continued to progress well in Q3, as more synergies were gradually unlocked, according to 58.com chairman and CEO Michael Yao Jinbo in his reaction to the results.

Ganji’s figures were consolidated with those of 58.com. Yao said the companies in which 58.com has interests, such as 58 Home and used-car site Guazi, have not yet been consolidated into the 58.com figures.

He said innovative products, such as the company’s used-goods app Zhuanzhuan and its merchant-end jobs app Zhaocaimao, continued to grow.

Based on the company’s current operations, total Q4 revenue is expected to come in at between RMB 2 billion and RMB 2.1 billion ($301 million U.S. and $309 million U.S.), assuming an exchange rate of RMB 6.74 per $1.00 U.S.. (This was also the average exchange rate in Oct. 2016.)

If that can be realized, revenue will have increased 24 percent in FY2016 from FY2015. These estimates reflect the company’s current and preliminary view, which is subject to change.

Go here for the original news release.

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