BEIJING, May 12, 2015 /PRNewswire/ -- Renren Inc. (NYSE:
RENN) ("Renren" or the "Company"), a leading real-name social
networking internet platform in China, today announced its unaudited financial
results for the first quarter ended March
31, 2015.
First Quarter 2015 Highlights
- Total net revenues were US$13.7
million, a 41.1% decrease from the corresponding period in
2014.
- Renren net revenues were US$8.2
million, a 22.9% decrease from the corresponding period in
2014.
- Games net revenues were US$5.5
million, a 56.5% decrease from the corresponding period in
2014.
- Gross profit was US$3.2
million, a 72.9% decrease from the corresponding period in
2014.
- Operating loss was US$26.5
million, compared to an operating loss of US$23.9 million in the corresponding period in
2014.
- Net loss attributable to the Company was US$27.6 million, compared to a net income of
US$32.3 million in the corresponding
period in 2014.
- Adjusted net loss [1] (non-GAAP) was US$21.4 million, compared to an adjusted net
income of US$36.1 million in the
corresponding period in 2014.
[1]
|
Adjusted net income
(loss) is a non-GAAP measure, which is defined as net income (loss)
excluding share-based compensation expenses, amortization of
intangible assets and impairment of intangible assets and goodwill.
See "About Non-GAAP Financial Measures" below.
|
"The first quarter results reflected a bottoming-out of our
legacy business in online advertising and gaming. With a leaner
cost structure and a topline that is expected to improve going
forward, we are on the road to recovery from our recent business
transition," said Joseph Chen,
Chairman and Chief Executive Office. "We are optimistic about the
prospect of our internet finance business and plan to diversify
into more profitable areas in the future, leveraging our strength
with college students and young graduates from our core Renren
social network."
First Quarter 2015 Results
Total net revenues for the first quarter of 2015 were
US$13.7 million, representing a 41.1%
decrease from the corresponding period in 2014.
Renren net revenues were US$8.2
million, representing a 22.9% decrease from the
corresponding period of 2014. Within Renren net revenues, online
advertising revenues were US$2.3
million for the first quarter of 2015, a 62.9% decrease from
the corresponding period of 2014. The decrease was due to
increasing competition and the continuing migration of our traffic
to mobile. Internet Value-Added Services (IVAS) revenues
were US$5.9 million, representing a
35.0% increase from the corresponding period in 2014, primarily due
to the increase in revenue from the social video platform "Woxiu".
Monthly unique log-in users decreased from approximately 51 million
in March 2014 to approximately 46
million in March 2015.
Games net revenues were US$5.5
million for the first quarter of 2015, a 56.5% decrease from
the corresponding period of 2014. The decrease was due to the
previously launched games having reached their mature stages.
Cost of revenues was US$10.5
million, an 8.9% decrease from the corresponding period of
2014.
Operating expenses were US$29.7
million, a 16.6% decrease from the corresponding period of
2014.
Selling and marketing expenses were US$7.9 million, an 18.8% decrease from the
corresponding period of 2014. The decrease was primarily due to the
decrease in advertising and promotions for online games and Renren
branding campaigns.
Research and development expenses were US$8.9 million, a 40.6% decrease from the
corresponding period in 2014. The decrease was primarily due to
headcount reduction and the resulting decrease in personnel related
expense.
General and administrative expenses were US$12.9 million, a 19.3% increase from the
corresponding period in 2014. The increase was primarily due to the
increase in share-based compensation expenses.
Share-based compensation expenses, all of which were
included in operating expenses, were US$6.2
million, compared to US$3.4
million in the corresponding period in 2014.
Operating loss was US$26.5
million, compared to an operating loss of US$23.9 million in the corresponding period in
2014.
Realized gain on short-term investments was US$1.1 million, compared to US$27.1 million in the corresponding period in
2014. The gain in the first quarter of 2015 was primarily derived
from the marked-to-market value change of derivative financial
instruments.
Net loss attributable to the Company was US$27.6 million, compared to a net income of
US$32.3 million in the corresponding
period in 2014. In the first quarter of 2014 the Company recognized
a US$57.1 million gain from the
disposal of equity method investment, which was our remaining
equity interest in Nuomi.
Adjusted net loss (non-GAAP) was US$21.4 million, compared to an adjusted net
income of US$36.1 million in the
corresponding period in 2014.
Share Repurchase Program
As of May 12,
2015, Renren has
repurchased approximately 15.9 million ADSs under the current
repurchase program for an aggregate amount of approximately
US$49.0 million. The current share
repurchase program will expire on June 27,
2015.
Business Outlook
The Company expects to generate revenues in an amount ranging
from US$15 million to US$17 million
in the second quarter of 2015, representing 25.8% to 34.5%
year-over-year decline. This forecast reflects Renren's current and
preliminary view, which is subject to change.
Conference Call Information
Management will host an earnings conference call at 9:00 p.m. Eastern Time on Tuesday, May
12, 2015 (Beijing/Hong Kong Time: 9:00 a.m., Wednesday, May
13, 2015).
Interested parties may participate in the conference call by
dialing the numbers below and entering passcode 10-15 minutes prior
to the initiation of the call.
Dial-in Information:
US: +1 845-675-0437
Hong Kong: +852-3018-6771
China: +86 800-819-0121
International: + 65-6723-9381
Passcode: Renren
A replay of the call will be available for one week and dial-in
information is as follows:
International: + 61 2-8199-0299
Passcode: 41604347
This call will be webcast live and the replay will be available
on Renren's corporate web site at http://ir.renren-inc.com for 12
months.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates a leading real name social
networking internet platform in China. It enables users to connect and
communicate with each other, share information and user generated
content, play online games, watch videos and enjoy a wide range of
other features and services. Renren's businesses primarily include
the main social networking website renren.com and the game
operating platform Renren Games. Renren.com had approximately 225
million activated users as of March 31,
2015. Renren's American depositary shares, each of which
represents three Class A ordinary shares, trade on NYSE under the
symbol "RENN".
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook for the second quarter of 2015 and quotations
from management in this announcement, as well as Renren's strategic
and operational plans, contain forward-looking statements. Renren
may also make written or oral forward-looking statements in its
filings with the U.S. Securities and Exchange Commission ("SEC"),
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 Renren's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: our goals and strategies; our future
business development, financial condition and results of
operations; the expected growth of the social networking site
market in China; our expectations
regarding demand for and market acceptance of our services; our
expectations regarding the retention and strengthening of our
relationships with key advertisers and customers; our plans to
enhance user experience, infrastructure and service offerings;
competition in our industry in China; and relevant government policies and
regulations relating to our industry. Further information regarding
these and other risks is included in our annual report on Form 20-F
and other documents filed with the SEC. All information provided in
this press release and in the attachments is as of the date of this
press release, and Renren does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
About Non-GAAP Financial Measures
To supplement Renren's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Renren uses "adjusted net income (loss)" which
is defined as "a non-GAAP financial measure" by the SEC, in
evaluating its business. We define adjusted net income (loss) as
net income (loss) excluding share-based compensation expenses,
amortization of intangible assets and impairment of intangible
assets and goodwill. We present adjusted net income (loss) because
it is used by our management to evaluate our operating performance.
We also believe that this non-GAAP financial measure provide useful
information to investors and others in understanding and evaluating
our consolidated results of operations in the same manner as our
management and in comparing financial results across accounting
periods and to those of our peer companies.
The presentation of this non-GAAP financial measure is not
intended to be considered in isolation from, or as a substitute
for, the financial information prepared and presented in accordance
with GAAP. For more information on these non-GAAP financial
measures, please see the table captioned "Reconciliation of
non-GAAP results of operations measures to the comparable GAAP
financial measures" at the end of this release.
For more information, please contact:
Cynthia Liu
Investor Relations Department
Renren Inc.
Tel: (86 10) 8448 1818 ext 1300
Email: ir@renren-inc.com
RENREN
INC.
|
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in US
dollars, in thousands, except shares,
|
|
|
|
December
31,
|
|
|
March
31,
|
per shares, ADS, and
per ADS data)
|
|
2014
|
|
|
2015
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
183,025
|
|
$
|
158,493
|
Term
deposits
|
|
|
|
494,065
|
|
|
188,316
|
Short-term
investments
|
|
|
|
29,384
|
|
|
66,181
|
Accounts and
notes receivable, net
|
|
|
|
18,044
|
|
|
19,501
|
Prepaid
expenses and other current assets
|
|
|
|
37,638
|
|
|
52,021
|
Amounts due
from related parties
|
|
|
|
1,047
|
|
|
1,086
|
Total
current assets
|
|
|
|
763,203
|
|
|
485,598
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
|
43,690
|
|
|
41,000
|
Intangible
assets, net
|
|
|
|
2
|
|
|
2
|
Long-term
investments
|
|
|
|
320,414
|
|
|
578,682
|
Other
non-current assets
|
|
|
|
21,844
|
|
|
21,474
|
Total
non-current assets
|
|
|
|
385,950
|
|
|
641,158
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
$
|
1,149,153
|
|
$
|
1,126,756
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
|
5,501
|
|
$
|
5,053
|
Accrued
expenses and other payables
|
|
|
|
24,094
|
|
|
22,138
|
Amounts due to
related parties
|
|
|
|
303
|
|
|
318
|
Deferred
revenue and advance from customers
|
|
|
|
6,917
|
|
|
8,548
|
Income tax
payable
|
|
|
|
9,229
|
|
|
9,926
|
Total
current liabilities
|
|
|
|
46,044
|
|
|
45,983
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Other
non-current liabilities
|
|
|
|
730
|
|
|
730
|
Total
non-current liabilities
|
|
|
|
730
|
|
|
730
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITES
|
|
|
|
46,774
|
|
|
46,713
|
|
|
|
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
|
Class A
ordinary shares
|
|
|
|
720
|
|
|
714
|
Class B
ordinary shares
|
|
|
|
305
|
|
|
305
|
Additional
paid-in capital
|
|
|
|
1,224,393
|
|
|
1,224,622
|
Statutory
reserves
|
|
|
|
6,712
|
|
|
6,712
|
Accumulated
deficit
|
|
|
|
(137,266)
|
|
|
(164,769)
|
Accumulated
other comprehensive income
|
|
|
|
7,774
|
|
|
12,912
|
|
|
|
|
|
|
|
|
Total Renren
Inc. shareholders' equity
|
|
|
|
1,102,638
|
|
|
1,080,496
|
|
|
|
|
|
|
|
|
Noncontrolling
Interests
|
|
|
|
(259)
|
|
|
(453)
|
|
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
|
|
1,102,379
|
|
|
1,080,043
|
|
|
|
|
|
|
|
|
TOAL
LIABILITIES AND EQUITY
|
|
|
$
|
1,149,153
|
|
$
|
1,126,756
|
RENREN
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(Amounts in US
dollars, in thousands, except shares,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
March
31,
|
per shares, ADS, and
per ADS data)
|
|
2014
|
|
|
2014
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
Renren
|
|
$
|
10,657
|
|
$
|
10,713
|
|
$
|
8,219
|
Games
|
|
|
12,660
|
|
|
6,466
|
|
|
5,509
|
Total net
revenues
|
|
|
23,317
|
|
|
17,179
|
|
|
13,728
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(11,580)
|
|
|
(12,250)
|
|
|
(10,545)
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
11,737
|
|
|
4,929
|
|
|
3,183
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
|
(9,744)
|
|
|
(8,490)
|
|
|
(7,910)
|
Research and
development
|
|
|
(15,054)
|
|
|
(10,609)
|
|
|
(8,949)
|
General and
administrative
|
|
|
(10,770)
|
|
|
(14,018)
|
|
|
(12,848)
|
Impairment of
intangible assets
|
|
|
(66)
|
|
|
—
|
|
|
—
|
Restructuring
cost
|
|
|
—
|
|
|
(4,244)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses
|
|
|
(35,634)
|
|
|
(37,361)
|
|
|
(29,707)
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(23,897)
|
|
|
(32,432)
|
|
|
(26,524)
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
265
|
|
|
697
|
|
|
272
|
Other
expense
|
|
|
—
|
|
|
(1,812)
|
|
|
—
|
Exchange gain
(loss) on offshore bank accounts
|
|
|
(2,527)
|
|
|
(981)
|
|
|
(44)
|
Interest
income
|
|
|
2,730
|
|
|
3,792
|
|
|
1,554
|
Realized gain
on short-term investments
|
|
|
27,093
|
|
|
21,576
|
|
|
1,116
|
|
|
|
|
|
|
|
|
|
|
Loss before
provision of income tax, earnings in equity method
investments and noncontrolling interest,
net of income taxes
|
|
|
3,664
|
|
|
(9,160)
|
|
|
(23,626)
|
Income tax
(expenses) benefit
|
|
|
(16)
|
|
|
(5,870)
|
|
|
(709)
|
|
|
|
|
|
|
|
|
|
|
Loss before
earnings in equity method investments and
noncontrolling interest, net of income
taxes
|
|
|
3,648
|
|
|
(15,030)
|
|
|
(24,335)
|
Earnings in
equity method investments, net of income taxes
|
|
|
(23,145)
|
|
|
52,113
|
|
|
(3,243)
|
Income
(loss) from continuing operations
|
|
|
(19,497)
|
|
|
37,083
|
|
|
(27,578)
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operation
|
|
|
|
|
|
|
|
|
|
Loss from
operations of discontinued operations, net of income
taxes
|
|
|
(5,279)
|
|
|
(2,773)
|
|
|
—
|
Gain on
deconsolidation of the subsidiaries
|
|
|
—
|
|
|
489
|
|
|
—
|
Gain (loss) on
disposal of equity method investment, net of income tax
|
|
|
57,092
|
|
|
(99)
|
|
|
—
|
Gain (loss)
from discontinued operations, net of income taxes
|
|
|
51,813
|
|
|
(2,383)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
32,316
|
|
|
34,700
|
|
|
(27,578)
|
Net loss
attributable to noncontrolling interests
|
|
|
1
|
|
|
259
|
|
|
75
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to Renren Inc.
|
|
$
|
32,317
|
|
$
|
34,959
|
|
$
|
(27,503)
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per share from continuing operations attributable
to
Renren Inc.shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.02)
|
|
$
|
0.04
|
|
$
|
(0.03)
|
Diluted
|
|
$
|
(0.02)
|
|
$
|
0.04
|
|
$
|
(0.03)
|
Net (loss)
income per share from discontinued operations attributable
to
Renren Inc.shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.05
|
|
$
|
(0.00)
|
|
$
|
—
|
Diluted
|
|
$
|
0.05
|
|
$
|
(0.00)
|
|
$
|
—
|
Net (loss)
income per share attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.03
|
|
$
|
0.03
|
|
$
|
(0.03)
|
Diluted
|
|
$
|
0.03
|
|
$
|
0.03
|
|
$
|
(0.03)
|
Net (loss)
income attributable to Renren Inc. shareholders per ADS:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
$
|
0.10
|
|
$
|
(0.08)
|
Diluted
|
|
$
|
0.09
|
|
$
|
0.10
|
|
$
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in calculating net (loss) income
per ordinary share from continuing operations
attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,082,856,840
|
|
|
1,034,933,302
|
|
|
1,022,342,445
|
Diluted
|
|
|
1,082,856,840
|
|
|
1,040,849,227
|
|
|
1,022,342,445
|
Weighted
average number of shares used in calculating net (loss) income
per ordinary share from discontinued operations
attributable to
Renren Inc. shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,082,856,840
|
|
|
1,034,933,302
|
|
|
1,022,342,445
|
Diluted
|
|
|
1,092,355,990
|
|
|
1,034,933,302
|
|
|
1,022,342,445
|
Reconciliation of Non-GAAP results of
operations measures to the comparable GAAP financial
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
(Amounts in US
dollars, in thousands)
|
|
|
March
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
2014
|
|
|
2014
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
32,316
|
|
$
|
34,700
|
|
$
|
(27,578)
|
Add back: Shared-based compensation expenses
|
|
|
3,351
|
|
|
8,325
|
|
|
6,194
|
Add back: Amortization of
intangible assets
|
|
|
319
|
|
|
192
|
|
|
—
|
Add back: Impairment of goodwill
|
|
|
—
|
|
|
—
|
|
|
—
|
Add back: Impairment of intangible assets
|
|
|
66
|
|
|
—
|
|
|
—
|
Adjusted net
(loss) income
|
|
$
|
36,052
|
|
$
|
43,217
|
|
$
|
(21,384)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/renren-announces-unaudited-first-quarter-2015-financial-results-300081916.html
SOURCE Renren Inc.