Tencent Securities News 58.com (NYSE: WUBA) today released unaudited financial results for the first quarter of fiscal year 2018 ended March 31. According to the financial report, according to GAAP, 58.com 's total revenue in the first quarter was 2.4712 billion yuan ($393 million), up 24.3% from a year earlier, and analysts expected $371.1 million (range of $348.8 million to $385.4 million). 58.com 's net profit was 174.6 million yuan ($27.8 million), compared with a net loss of 21.5 million yuan a year earlier.

Highlights of the first quarter:

-- Total revenue was 2.4712 billion yuan ($393 million), up 24.3% from 1.9883 billion yuan in the same period last year, of which member revenue was 928.9 million yuan ($147.7 million), an increase of 17.1% over 792.9 million yuan in the same period last year; revenue from online marketing services was 1.492 billion yuan ($237.3 million), up 31.2% from 1,137 billion yuan in the same period last year.

-- the cost of revenue was 257.9 million yuan (US $41 million), an increase of 29.2% from 199.6 million yuan in the same period last year.

-- Gross profit was 2.2132 billion yuan (US $352 million), an increase of 23.7% over 1.7887 billion yuan in the same period last year, and a gross profit margin of 89.6%, compared with 90.0% in the same period last year

-- operating expenses were 1.9464 billion yuan (US $309.5 million), an increase of 13.8% over 1.7108 billion yuan in the same period last year, of which sales and marketing expenditure was 1.4392 billion yuan (US $228.9 million), an increase of 15.5% over 1,246 million yuan in the same period last year; research and development expenditure was 346.4 million yuan ($55.1 million), an increase of 10.1% over 314.5 million yuan in the same period last year General and administrative expenses were 160.8 million yuan ($25.6 million), up 7.0 percent from 150.3 million yuan in the same period last year.

-- operating profit of 266.8 million yuan (US $42.4 million), compared with 77.9 million yuan in the same period last year; operating profit margin of 10.8%, compared with 3.9% in the same period last year

-- according to non-Non-GAAP, operating profit was 411.6 million yuan ($65.4 million), compared with 217.2 million yuan in the same period last year; non-GAAP operating profit margin was 16.6%, compared with 10.9% in the same period last year.

-- other income was 8.8 million yuan ($1.4 million), compared with 96.8 million yuan for other expenses in the same period last year.

-- the net profit attributed to 58.com was 174.6 million yuan (US $27.8 million), while the net loss attributed to 58.com in the same period last year was 21.5 million yuan. The net interest rate was 7.1%, compared with minus 1.1% in the same period last year.

According to non-US GAAP, the net profit attributed to 58.com was 305.8 million yuan (US $48.6 million), compared with 105.7 million yuan in the same period last year, and the net interest rate was 12.14% under non-US GAAP, compared with 5.3% in the same period last year.

Basic and diluted earnings per American depositary share (ADS) belonging to common shareholders are 1.19 yuan (approximately $0.19) and 1.17 yuan ($0.19), respectively. In the same period last year, the basic and diluted losses per American depositary share (ADS) of common shareholders were both 0.15 yuan.

According to non-American general accounting standards, the basic and diluted earnings per share of ADS attributable to common shareholders were 2.08 yuan ($0.33) and 2.05 yuan ($0.33), respectively, while the basic and diluted earnings per ADS attributed to common shareholders in the same period last year were 0.73 yuan and 0.72 yuan, respectively.

As of March 31, 2018, 58.com held cash, cash equivalents, restricted cash and short-term investments totaling 6.5 billion yuan (US $1.0337 billion). Cash flow from operating activities was 710 million yuan ($112.9 million) in the first quarter, compared with 428.6 million yuan in the same period last year.

Performance outlook:

58.com estimates that according to the company's current operations, total revenue in the second quarter will be 3.1 billion yuan to 3.2 billion yuan, an increase of 19.6% to 23.4% over the same period last year.

Stock price response:

On the same day, 58.com closed up 1.62% at $84.55 in regular trading on the Nasdaq market. 58.com shares fell $1.80, or 2.13%, to $82.75 as of press time after the results were released.