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  "documentTitle": "58.com Inc. (WUBA)",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-02-01 00:00:00",
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      "text": "In addition to the company’s declining gross margins, its reported non-GAAP operating margin seems to have reached its peak of 27.7% in Q2 2019.",
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      "text": "In addition to the company's declining gross margins, its reported non-GAAP operating margin seems to have reached its peak of 27.7% in Q2 2019. We illustrated in section 6 of this report why we believe the company's reported operating margins are inflated.",
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      "text": "It is obvious that the company's operating margin decreased dramatically in Q1 2015, before improving over the next several quarters. According to the company's earnings release, the reason for the drop in Q1 2015 was a dramatic increase in sales and marketing expenses.",
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      "text": "Sales and marketing expenses in the first quarter of 2015 were US$114.2 million, an increase of 255.9% from US$32.1 million during the same quarter in 2014...",
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      "text": "“Sales and marketing expenses in the first quarter of 2015 were US$114.2 million, an increase of 255.9% from US$32.1 million during the same quarter in 2014. Within sales and marketing expenses, advertising expenses accounted for US$61.9 million and US$12.6 million during the first quarter of 2015 and 2014, respectively.” — 58.com earnings release",
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      "text": "Source: company's 20Fs and quarterly earnings releases",
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