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Report of foreign issuer [Rules 13a-16 and 15d-16]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-34271

CHANGYOU.COM LIMITED

(Exact name of registrant as specified in its charter)

Changyou Creative Industrial Park

65 Bajiao East Road, Shijingshan District

Beijing 100043

Peoples Republic of China

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T

Rule 101(b)(1): ¨ No þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T

Rule 101(b)(7): ¨ No þ

Press Releases

On April 25, 2016, the registrant announced its unaudited financial results for the first quarter ended March 31, 2016. A copy of the press release issued by the registrant regarding the foregoing is filed herewith as Exhibit 99.1 and is incorporated herein by reference.

Safe Harbor Statement

This report on 6-K contains forward-looking statements. Statements that are not historical facts, including statements about the registrants beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them.

Forward-looking statements involve inherent risks and uncertainties. The registrant cautions you that 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, continuing volatility in global financial and credit markets and its potential impact on the Chinese economy, exchange rate fluctuations in general and possible continued valuation of the RMB in particular, including their potential impact on the Chinese economy and on the registrants reported US dollar results; slowing growth in the Chinese economy, the uncertain regulatory landscape in the Peoples Republic of China, fluctuations in the registrants quarterly operating results, the possibility that the registrant will be unable to develop a series of successful games for mobile platforms or successfully monetize mobile games it develops or acquires, the possibility that the registrants margins will decline as a result of the need for revenue-sharing with mobile game platform operators, and the registrants reliance on TLBB as its major revenue source. Further information regarding these and other risks is included in the registrants Annual Report on Form 20-F filed on February 26, 2016, and other filings with the Securities and Exchange Commission.

Exhibits.

99.1 Press release regarding financial results for the first quarter ended March 31, 2016.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CHANGYOU.COM LIMITED

By:

/s/ Jasmine Zhou

Jasmine Zhou,
Chief Financial Officer

Date: April 26, 2016

EXHIBIT INDEX

Exhibit
No.

Description

99.1 Press release regarding financial results for the first quarter ended March 31, 2016.

Exhibit 99.1

Changyou Reports First Quarter 2016 Unaudited Financial Results

Beijing, China, April 25, 2016 Changyou.com Limited (Changyou or the Company) (NASDAQ: CYOU), a leading online game developer and operator in China, today announced its unaudited financial results for the first quarter ended March 31, 2016.

First Quarter 2016 Highlights

Total revenues were US$130 million (1) , representing a decrease of 38% year-over-year and 20% quarter-over-quarter, in line with the Companys guidance.
Online game revenues were US$103 million, representing a decrease of 45% year-over-year and 19% quarter-over-quarter, in line with the Companys guidance.
Non-GAAP (2) net income attributable to Changyou.com Limited was US$31 million, in line with the Companys guidance. This compares with US$52 million in the first quarter of 2015 and US$46 million in the fourth quarter of 2015.
Non-GAAP net income attributable to Changyou.com Limited per fully-diluted ADS (3) was US$0.58. This compares with US$0.97 in the first quarter of 2015 and US$0.85 in the fourth quarter of 2015.

Mr. Dewen Chen, Co-CEO, commented The core value of PC games lies in the enormous user base accumulated over the years of operation. To fully unlock this vast and untapped value, we are recreating the PC game experience on mobile by adapting our two most successful games TLBB and Blade Online in mobile format. For TLBB 3D, the new expansion pack issued in the first quarter improved the overall playing experience in the game and we will be adding more social functionalities to the game in the upcoming expansion packs. We will continue to execute our mobile game strategy of Top Games, Big IP and Mass Marketing, allocating our best IP and marketing resources to our finest games. In terms of our pipeline, we have around ten new mobile games up for review in the second quarter, and their launch dates will be subject to final testing results.

Mr. Qing Wei, Chief Games Development Officer added, Our Legacy TLBB mobile game builds on the essence of TLBB PC. By creating an environment that supports a huge community with various interactive gameplays and social functions, we hope to re-attract the large group of users that were once loyal to our PC game and achieve a similar scale of success and popularity that we had with our PC game. We are also excited to be working with Tencent in publishing this game.

Ms. Jasmine Zhou, CFO of Changyou added, We expect our second quarter results to be on par with the first quarter, and with the planned launches of the new games in the second half of the year, we expect our revenue to pick up in the third and the fourth quarters.

(1) For the first quarter of 2016, on yearly basis, the depreciation of RMB against the U.S. dollar impacted our reported financial results. On a constant exchange rate basis, total revenues in the first quarter of 2016 would have been US$8 million higher, down 34% instead of 38% year-over-year.
(2) Non-GAAP results exclude share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions. Explanation of the Companys non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying Non-GAAP Disclosure and Reconciliations of Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures.

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First Quarter 2016 Operational Results

Total average monthly active accounts (4) of the Companys PC games were 3.0 million, representing a decrease of 39% year-over-year and 17% quarter-over-quarter. The year-over-year and quarter-over-quarter decreases reflected the natural declining life cycles of older games.
Total average monthly active accounts of the Companys mobile games were 3.2 million, representing a decrease of 27% year-over-year and 14% quarter-over-quarter. The year-over-year and quarter-over-quarter decreases were due to the natural declining life cycles of the Companys older games, which were partially offset by increases for the Legend of Sword and Fairy.
Total quarterly aggregate active paying accounts (5) of the Companys PC games were 1.1 million, flat year-over-year and representing a decrease of 8% quarter-over-quarter. The launch of Warframe and Steel Ocean during the past year partially offset the year-over-year decline in older games, and the quarter-over-quarter decrease reflected the decline in these games as a natural part of their life cycles.
Total quarterly aggregate active paying accounts of the Companys mobile games were 0.8 million, representing a decrease of 11% both year-over-year and quarter-over-quarter. The year-over-year and quarter-over-quarter decreases were due to the natural declining life cycles of the Companys older games, which were partially offset by increases for the Legend of Sword and Fairy.

First Quarter 2016 Unaudited Financial Results

Revenues

Total revenues were US$130 million, representing a decrease of 38% year-over-year and 20% quarter-over-quarter.

Online game revenues were US$103 million, representing a decrease of 45% year-over-year and 19% quarter-over-quarter. The year-over-year decrease was mainly due to the natural decline in revenues of older games, such as TLBB and TLBB 3D, and a decrease in Web game revenue upon the completion of the sale of the 7Road business during the third quarter of 2015. The quarter-over-quarter decrease was mainly due to the natural decline in revenues of TLBB, which is an older game.

Online advertising revenues were US$8 million, representing a decrease of 18% year-over-year and 47% quarter-over-quarter. The year-over-year decrease was mainly due to fewer PC and mobile games being marketed on the 17173 Website. The quarter-over-quarter decrease was mainly due to a seasonal trend in advertising typical of the first quarter.

Internet value-added services (IVAS) revenues were flat year-over-year and decreased 14% quarter-over-quarter to US$6 million. The quarter-over-quarter decrease was a result of lower revenues from RaidCall in the first quarter of 2016.

Other revenues, which consist of cinema advertising revenues, were US$14 million, representing an increase of 66% year-over-year and flat quarter-over-quarter. The year-over-year increase reflected the strong growth of Chinas movie and cinema industry in general.

(4) Average Monthly Active Accounts for a given period refers to the number of registered accounts that were logged in to these games at least once during the period.
(5) Quarterly Aggregate Active Paying Accounts for a given period refers to the number of accounts from which game points are utilized at least once during the quarter.

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Gross profit

GAAP and non-GAAP gross profit were both US$88 million, representing a decrease of 39% year-over-year and 26% quarter-over-quarter. GAAP and non-GAAP gross margins were both 68%, compared with 69% in the first quarter of 2015 and 74% in the fourth quarter of 2015.

GAAP and non-GAAP gross profit of the online games business were both US$76 million, representing a decrease of 44% year-over-year and 23% quarter-over-quarter. GAAP and non-GAAP gross margin of the online games business were both 75%, compared with 73% in the first quarter of 2015 and 78% in the fourth quarter of 2015. The changes in gross margins were mainly a result of a change in the revenue contribution from mobile games compared with PC games, as mobile games typically require larger revenue-sharing payments to others, which drive down gross margin. The year-over-year increase in gross margin was due to a smaller percentage revenue contribution from mobile games, while the quarter-over-quarter decrease in gross margins was due to a larger percentage revenue contribution from mobile games.

GAAP and non-GAAP gross profit of the online advertising business were both US$6 million, representing a decrease of 8% year-over-year and 54% quarter-over-quarter. GAAP and non-GAAP gross margin of the online advertising business were both 72%, compared with 64% in the first quarter of 2015 and 84% in the fourth quarter of 2015. The year-over-year increase in gross margins was due to a reduction in salary and benefits expense, which reflected a reduction in headcount during the past year. The quarter-over-quarter decrease in gross margins was due to a decrease in online advertising revenues which reflected a seasonal trend in advertising typical of the first quarter.

GAAP and non-GAAP gross profit for the IVAS business were both US$2 million, compared with a gross loss of US$0.2 million in the first quarter of 2015 and a gross profit of US$3 million in the fourth quarter of 2015.

GAAP and non-GAAP gross profit of the other business were both US$4 million, compared with US$2 million in the first quarter of 2015 and US$5 million in the fourth quarter of 2015.

Operating expenses

Total operating expenses were US$54 million, representing a decrease of 41% year-over-year and 32% quarter-over-quarter.

Product development expenses were US$30 million, representing a decrease of 34% year-over-year and 31% quarter-over-quarter. The year-over-year decrease was due to a reduction in salary and benefits expense, which reflected a reduction in headcount during the past year and a reduction in severance payments. The quarter-over-quarter decrease was mainly due to a reduction in salary and benefits expense as a result of a reduction in bonus expense, as well as a decrease in the market price for the Companys ADSs, which triggered a decrease in share-based compensation.

Sales and marketing expenses were US$12 million, representing a decrease of 43% year-over-year and 19% quarter-over-quarter. The year-over-year decrease was mainly due to a reduction in salary and benefits expense, which reflected a reduction in headcount during the past year, as well as a more targeted marketing approach for mobile games. The quarter-over-quarter decrease was mainly due to fewer games and expansion packs being launched this quarter.

General and administrative expenses were US$11 million, representing a decrease of 53% year-over-year and 44% quarter-over-quarter. The year-over-year decrease was mainly due to a reduction in salary and benefits expense, which reflected a reduction in headcount during the past year and a decrease in the market price for the Companys ADSs, which triggered a decrease in share-based compensation. The quarter-over-quarter decrease was mainly due to a decrease in the market price for the Companys ADSs, which triggered a decrease in share-based compensation, and a reduction in bonus expense.

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Operating profit

Operating profit was US$34 million, compared with US$53 million in the first quarter of 2015 and US$40 million in the fourth quarter of 2015.

Non-GAAP operating profit was US$33 million, compared with US$56 million in the first quarter of 2015 and US$48 million in the fourth quarter of 2015.

Other Income

Other income was US$4 million, compared with US$3 million in the first quarter of 2015 and US$1 million in the fourth quarter of 2015.

Income tax expense

The Companys main operating entity in China is a High and New Technology Enterprise, and as a result, the entity is entitled to a preferential corporate income tax rate of 15% for the 2015 and 2016 tax years.

Income tax expense was US$8 million, compared with US$12 million in the first quarter of 2015 and US$8 million in the fourth quarter of 2015.

Net income

Net income was US$33 million, which compares with US$47 million in the first quarter of 2015 and US$38 million in the fourth quarter of 2015.

Non-GAAP net income was US$32 million, which compares with US$51 million in the first quarter of 2015 and US$46 million in the fourth quarter of 2015.

Net income/ (loss) attributable to non-controlling interests

GAAP and non-GAAP net income attributable to non-controlling interests were both US$0.5 million. This compares with both a GAAP and non-GAAP net loss of US$1 million in the first quarter of 2015, and a GAAP and non-GAAP net loss of US$0.2 million and US$0.3 million, respectively, in the fourth quarter of 2015. Non-controlling interests include the non-controlling interests in RaidCall, which provides online music and entertainment services primarily in Taiwan, and in MoboTap Inc., the developer of the Dolphin Browser.

Net income attributable to Changyou.com Limited

Net income attributable to Changyou.com Limited was US$32 million, compared with US$48 million in the first quarter of 2015 and US$38 million in the fourth quarter of 2015. Fully-diluted net income attributable to Changyou.com Limited per ADS was US$0.61. This compares with US$0.91 in the first quarter of 2015 and US$0.73 in the fourth quarter of 2015.

Non-GAAP net income attributable to Changyou.com Limited was US$31 million. This compares with US$52 million in the first quarter of 2015 and US$46 million in the fourth quarter of 2015. Non-GAAP fully-diluted net income attributable to Changyou.com Limited per ADS was US$0.58. This compares with US$0.97 in the first quarter of 2015 and US$0.85 in the fourth quarter of 2015.

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Liquidity

As of March 31, 2016, Changyou had net cash (6) of US$790 million, compared with US$755 million as of December 31, 2015.

Operating cash flow for the first quarter of 2016 was a net inflow of US$35 million.

Business Outlook

For the second quarter of 2016, Changyou expects:

Non-GAAP net income attributable to Changyou.com Limited to be between US$30 million and US$35 million;
Assuming no new grants of share-based awards, share-based compensation expense to be between US$2.3 million and US$2.7 million.

For the second quarter 2016 guidance, the Company has adopted a presumed exchange rate of RMB6.6 = US$1.00, as compared with the actual exchange rate of approximately RMB6.12 = US$1.00 for the second quarter 2015, and RMB 6.53=US$ 1.00 for the first quarter 2016.

Non-GAAP Disclosure

To supplement the unaudited consolidated financial information prepared in accordance with generally accepted accounting principles in the United States of America (GAAP), Changyous management uses non-GAAP measures of gross profit, operating profit, net income, net income attributable to Changyou.com Limited and diluted net income attributable to Changyou.com Limited per ADS, which are adjusted from results based on GAAP to exclude the compensation cost of share-based awards granted, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

Changyous management believes that excluding share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions from its non-GAAP financial measures is useful for itself and investors. Further, the amount of share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions cannot be anticipated by management, and these expenses are not built into the Companys annual budgets and quarterly forecasts, which generally will be the basis for information Changyou provides to analysts and investors as guidance for future operating performance. As share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions does not involve subsequent cash outflow, Changyou does not factor this in when evaluating and approving expenditures or when determining the allocation of its resources to its business operations. As a result, in general, the monthly financial results for internal reporting and any performance measure for commissions and bonuses are based on non-GAAP financial measures that exclude share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions.

(6) Net cash is calculated as the sum of cash and cash equivalents, short-term investments, current and non-current restricted time deposits, and non-current time deposits, minus short-term bank loans.

The non-GAAP financial measures are provided to enhance investors overall understanding of Changyous current financial performance and prospects for the future. A limitation of using non-GAAP gross profit, operating profit, net income, net income attributable to Changyou.com Limited and diluted net income attributable to Changyou.com Limited per ADS, excluding share-based compensation expense, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions, is that the share-based compensation charge has been and will continue to be a significant recurring expense in the Companys business for the foreseeable future, non-cash tax benefits from excess tax deductions related to share-based awards and income/expense from the adjustment of contingent consideration previously recorded for acquisitions may recur in the future. In order to mitigate these limitations the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.

Notes to Financial Information

Financial information in this press release other than the information indicated as being non-GAAP is derived from Changyous unaudited financial statements prepared in accordance with GAAP.

Safe Harbor Statement

It is currently expected that the Business Outlook will not be updated until the release of Changyous next quarterly earnings announcement; however, Changyou reserves the right to update its Business Outlook at any time for any reason.

This announcement contains forward-looking statements. Statements that are not historical facts, including statements about the Companys beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. The Company cautions that 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, continuing volatility in global financial and credit markets and its potential impact on the Chinese economy; exchange rate fluctuations in general and possible continued valuation of the RMB in particular, including their potential impact on the Chinese economy and on the Companys reported U.S. dollar results; slowing growth in the Chinese economy; the uncertain regulatory landscape in the Peoples Republic of China; fluctuations in Changyous quarterly operating results; the possibility that Changyou will be unable to develop a series of successful games for mobile platforms or successfully monetize mobile games it develops or acquires; the possibility that the Companys margins will decline as a result of the need for revenue-sharing with mobile game platform operators; and the Companys reliance on TLBB as its major revenue source. Further information regarding these and other risks is included in Changyous Annual Report on Form 20-F filed on February 26, 2016, and other filings with the Securities and Exchange Commission.

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Conference Call Information

Changyous management team will host an earnings conference call today at 7 a.m. U.S. Eastern Time, April 25, 2016 (7 p.m. Beijing/Hong Kong, April 25, 2016).

The dial-in details for the live conference call are:

US:

+1-855-298-3404

Hong Kong:

+852-5808-3202

China Mainland:

+86-400-1200-539

International:

+1-631-514-2526

Passcode:

CYOU

Please dial in 10 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 at 10: 00 a.m. Eastern Time on April 25, 2016 through May 1, 2016. The dial-in details for the telephone replay are:

International:

+1- 866-846-0868

Passcode:

1700187

The live Webcast and archive of the conference call will be available on the Investor Relations section of Changyous Website at http://ir.changyou.com/.

About Changyou

Changyou.com Limited (NASDAQ: CYOU) is a leading developer and operator of online games in China with a diverse portfolio of popular online games , such as Tian Long Ba Bu (TLBB), one of the most popular PC games in China, as well as a number of mobile games. Changyou also owns and operates the 17173.com Website, a leading game information portal in China. Changyou began operations as a business unit within Sohu.com Inc. (NASDAQ: SOHU) in 2003, and was carved out as a separate, stand-alone company in December 2007. It completed an initial public offering on April 7, 2009. Changyou has an advanced technology platform that includes advanced 2.5D and 3D graphics engines, a uniform game development platform, effective anti-cheating and anti-hacking technologies, proprietary cross-networking technology and advanced data protection technology. For more information, please visit http://ir.changyou.com.

For investor and media inquiries, please contact:

In China:

Ms. Margaret Shi

Investor Relations

Tel: +86 (10) 6192-0800

E-mail: ir@cyou-inc.com

In the United States:

Ms. Linda Bergkamp

Christensen

Phone: +1-480-614-3004

Email: lbergkamp@ChristensenIR.com

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CHANGYOU.COM LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED, IN THOUSANDS EXCEPT PER ADS AMOUNTS)

Three Months Ended
Mar. 31, 2016 Dec. 31, 2015 Mar. 31, 2015

Revenues:

Online game

$ 102,529 $ 127,001 $ 184,994

Online advertising

7,885 14,798 9,636

IVAS

5,862 6,796 5,919

Others

13,564 13,315 8,148

Total revenues

129,840 161,910 208,697

Cost of revenues:

Online game (includes share-based compensation expense of $(7), $47 and $44 respectively)

26,133 28,266 49,486

Online advertising (includes share-based compensation expense of $0, $0 and $0 respectively)

2,174 2,315 3,446

IVAS (includes share-based compensation expense of $0, $(2) and $0 respectively)

3,959 3,963 6,125

Others

9,584 8,203 6,554

Total cost of revenues

41,850 42,747 65,611

Gross profit

87,990 119,163 143,086

Operating expenses:

Product development (includes share-based compensation expense of $(540), $2,867 and $1,035 respectively)

30,057 43,841 45,255

Sales and marketing (includes share-based compensation expense of $(103), $487 and $(18) respectively)

12,453 15,456 21,889

General and administrative (includes share-based compensation expense of $(624), $4,095 and $2,843 respectively)

11,023 19,791 23,397

Total operating expenses

53,533 79,088 90,541

Operating profit

34,457 40,075 52,545

Interest income

2,840 4,432 3,638

Foreign currency exchange (loss) / gain

(607 ) 963 (184 )

Other income

3,847 1,064 3,438

Income before income tax expense

40,537 46,534 59,437

Income tax expense

(7,734 ) (8,317 ) (12,445 )

Net income

32,803 38,217 46,992

Less: Net income/ (loss) attributable to non-controlling interests

513 (248 ) (1,296 )

Net income attributable to Changyou.com Limited

$ 32,290 $ 38,465 $ 48,288

Basic net income per ADS attributable to Changyou.com Limited

$ 0.62 $ 0.74 $ 0.92

ADSs used in computing basic net income per ADS attributable to Changyou.com Limited

52,241 52,164 52,738

Diluted net income per ADS attributable to Changyou.com Limited

$ 0.61 $ 0.73 $ 0.91

ADSs used in computing diluted net income per ADS attributable to Changyou.com Limited

52,876 52,846 53,025

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CHANGYOU.COM LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

As of Mar. 31, 2016 As of Dec. 31, 2015

ASSETS

Current assets:

Cash and cash equivalents

$ 551,900 $ 569,917

Accounts receivable, net

53,358 67,959

Short-term investments

101,004 174,515

Restricted time deposits

227,285

Deferred tax assets

4,690 4,673

Prepaid and other current assets

300,250 227,719

Total current assets

1,011,202 1,272,068

Non-current assets:

Fixed assets, net

212,151 214,306

Goodwill

111,169 111,082

Intangible assets, net

22,694 25,139

Restricted time deposits

127,454

Deferred tax assets

9,740 12,729

Time deposits

137,506

Other assets, net

8,241 16,728

Total non-current assets

501,501 507,438

TOTAL ASSETS

$ 1,512,703 $ 1,779,506

LIABILITIES

Current liabilities:

Receipts in advance and deferred revenue

$ 46,908 $ 42,166

Accounts payable and accrued liabilities

329,034 275,926

Short-term bank loans

344,500

Tax payables

15,243 27,423

Deferred tax liabilities

25,518 24,884

Total current liabilities

416,703 714,899

Long-term liabilities:

Long-term deferred tax liabilities

3,646 3,616

Long-term accounts payable

641 1,004

Other long-term liabilities

741 738

Total long-term liabilities

5,028 5,358

Total liabilities

421,731 720,257

SHAREHOLDERS EQUITY

Changyou.com Limited shareholders equity

1,060,906 1,029,479

Non-controlling interests

30,066 29,770

Total shareholders equity

1,090,972 1,059,249

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY

$ 1,512,703 $ 1,779,506

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CHANGYOU.COM LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE

NEAREST COMPARABLE GAAP MEASURES

(UNAUDITED, IN THOUSANDS, EXCEPT PER ADS AMOUNTS)

Three Months Ended Mar. 31, 2016
Non-GAAP adjustments
GAAP Share-based
compensation expense (a)
Non-GAAP

Online game gross profit

$ 76,396 (7 ) 76,389

Online advertising gross profit

5,711 0 5,711

IVAS gross profit

1,903 0 1,903

Other gross profit

3,980 0 3,980

Gross profit

$ 87,990 (7 ) 87,983

Gross margin

68 % 68 %

Operating profit

$ 34,457 (1,274 ) 33,183

Operating margin

27 % 26 %

Net income

$ 32,803 (1,274 ) 31,529

Net income attributable to Changyou.com Limited

$ 32,290 (1,283 ) 31,007

Net margin attributable to Changyou.com Limited

25 % 24 %

Diluted net income attributable to Changyou.com Limited per ADS

$ 0.61 0.58

ADSs used in computing diluted net income attributable to Changyou.com Limited per ADS

52,876 53,870

Note:

(a) To eliminate share-based compensation expense measured using the fair value method. The downward adjustment of share-based compensation expense in the current period was a result of fluctuation in the market price for the Companys ADS, as certain share-based compensation expense needs to be re-measured based on the fair value of each period end until the grant date is established.

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CHANGYOU.COM LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE

NEAREST COMPARABLE GAAP MEASURES

(UNAUDITED, IN THOUSANDS, EXCEPT PER ADS AMOUNTS)

Three Months Ended Dec. 31, 2015
Non-GAAP adjustments
GAAP Share-based
compensation expense (a)
Non-GAAP

Online game gross profit

$ 98,735 47 98,782

Online advertising gross profit

12,483 0 12,483

IVAS gross profit

2,833 (2 ) 2,831

Other gross profit

5,112 0 5,112

Gross profit

$ 119,163 45 119,208

Gross margin

74 % 74 %

Operating profit

$ 40,075 7,494 47,569

Operating margin

25 % 29 %

Net income

$ 38,217 7,494 45,711

Net income attributable to Changyou.com Limited

$ 38,465 7,537 46,002

Net margin attributable to Changyou.com Limited

24 % 28 %

Diluted net income attributable to Changyou.com Limited per ADS

$ 0.73 0.85

ADSs used in computing diluted net income attributable to Changyou.com Limited per ADS

52,846 53,928

Note:

(a) To eliminate share-based compensation expense measured using the fair value method.

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CHANGYOU.COM LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE

NEAREST COMPARABLE GAAP MEASURES

(UNAUDITED, IN THOUSANDS, EXCEPT PER ADS AMOUNTS)

Three Months Ended Mar. 31, 2015
Non-GAAP adjustments
GAAP Share-based
compensation expense (a)
Non-GAAP

Online game gross profit

$ 135,508 44 135,552

Online advertising gross profit

6,190 0 6,190

IVAS gross loss

(206 ) 0 (206 )

Other gross profit

1,594 0 1,594

Gross profit

$ 143,086 44 143,130

Gross margin

69 % 69 %

Operating profit

$ 52,545 3,904 56,449

Operating margin

25 % 27 %

Net income

$ 46,992 3,904 50,896

Net income attributable to Changyou.com Limited

$ 48,288 3,885 52,173

Net margin attributable to Changyou.com Limited

23 % 25 %

Diluted net income attributable to Changyou.com Limited per ADS

$ 0.91 0.97

ADSs used in computing diluted net income attributable to Changyou.com Limited per ADS

53,025 54,046

Note:

(a) To eliminate share-based compensation expense measured using the fair value method.

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The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Neuberger Berman Investment Advisers LLC just provided an update on share ownership of Changyou.com Limited - April 12, 2016
Neuberger Berman Investment Advisers LLC just provided an update on share ownership of Changyou.com Limited - April 8, 2016