BEIJING, Aug. 16, 2016 /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 second quarter ended June
30, 2016.
Second Quarter 2016 Highlights
- Total net revenues were US$14.4
million, a 38.5% increase from the corresponding period in
2015.
- Advertising and IVAS net revenues were US$7.6 million, a 14.6% decrease from the
corresponding period in 2015.
- Financing income was US$6.8
million, compared to US$1.5
million in the corresponding period of 2015.
- Gross profit was US$1.3
million.
- Operating loss was US$18.8
million, compared to an operating loss of US$25.3 million in the corresponding period in
2015.
- Net loss attributable to the Company was US$46.1 million, compared to a net loss of
US$70.3 million in the corresponding
period in 2015.
- Adjusted net loss(1) (non-GAAP) was
US$40.6 million, compared to an
adjusted net loss of US$64.3 million
in the corresponding period in 2015.
(1) Adjusted net
income (loss) is a non-GAAP measure, which is defined as net income
(loss) excluding share-based compensation expenses and amortization
of intangible assets. See "About Non-GAAP Financial Measures"
below.
|
Second Quarter 2016 Results
Total net revenues for the second quarter of 2016 were
US$14.4 million, representing a 38.5%
increase from the corresponding period in 2015.
Advertising and IVAS net revenues were US$7.6 million, representing a 14.6% decrease
from the corresponding period of 2015. Advertising revenues
were US$0.8 million for the second
quarter of 2016, a 78.7% decrease from the corresponding period of
2015. The decrease was due to increasing competition and the
continuing migration of our traffic to mobile. Internet
Value-Added Services (IVAS) revenues were US$6.8 million, representing a 34.7% increase
from the corresponding period in 2015. The increase was mainly due
to the revenue from woxiu and the new Renren mobile live streaming
revenue started this quarter. Monthly unique log-in users decreased
from approximately 45 million in June 2015 to
approximately 35 million in June
2016.
Financing income was US$6.8
million for the second quarter of 2016, compared to
US$1.5 million in the corresponding
period of 2015. The increase was in line with the increase of
financing receivable from US$62.4
million as of June 30, 2015 to
US$207.2 million as of June 30, 2016.
Cost of revenues was US$13.1
million, a 75.4% increase from the corresponding period of
2015.
Operating expenses were US$20.1
million, a 28.7% decrease from the corresponding period of
2015.
Selling and marketing expenses were US$5.2 million, a 40.5% decrease from the
corresponding period of 2015. The decrease was primarily due to a
decrease in advertising expenses, headcount reductions, and a
decrease in personnel related expense.
Research and development expenses were US$4.6 million, a 46.5% decrease from the
corresponding period in 2015. The decrease was primarily due to
headcount reductions and a decrease in personnel related
expense.
General and administrative expenses were US$10.2 million, a 4.9% decrease from the
corresponding period in 2015.
Share-based compensation expenses, which were all
included in operating expenses, were US$5.5
million, compared to US$6.2
million in the corresponding period in 2015.
Operating loss was US$18.8
million, compared to an operating loss of US$25.3 million in the corresponding period in
2015.
Realized gain on short-term investments was US$0.7 million, compared to a loss of
US$48.8 million in the corresponding
period in 2015.
Earnings in equity method investments were US$1.4 million, compared to earnings of
US$3.3 million in the corresponding
period in 2015.
Net loss attributable to the Company was US$46.1 million, compared to a net loss of
US$70.3 million in the corresponding
period in 2015.
Adjusted net loss (non-GAAP) was US$40.6 million, compared to an adjusted net loss
of US$64.3 million in the
corresponding period in 2015. Adjusted net loss is defined as loss
excluding share-based compensation expenses and amortization of
intangible assets.
Business Outlook
The Company expects to generate revenues in an amount ranging
from US$17.5 million to US$19.5
million in the third quarter of 2016, representing a 98.4%
to 121.1% year-over-year increase, driven by the new Renren mobile
live streaming and financing business. This forecast reflects
Renren's current and preliminary view, which is subject to
change.
Conference Call Information
The Company will not host a conference call. Please contact our
Investor Relations Department if you have any questions.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates a leading real name social
networking service (SNS) and an internet finance business in
China. Our SNS enables users to
connect and communicate with each other, share photos and access
mobile live streaming. Our internet finance business includes
primarily consumer financing and auto financing. Renren.com and our
renren mobile application had approximately 236 million activated
users as of June 30,
2016.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 third quarter of 2016 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 and
amortization of intangible assets. 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,
|
|
June
30,
|
per share, ADS, and
per ADS data)
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
56,226
|
|
$
|
78,224
|
Restricted
Cash
|
|
|
122,316
|
|
|
23,355
|
Short-term
investments
|
|
|
2,619
|
|
|
568
|
Accounts and
notes receivable, net
|
|
|
4,044
|
|
|
3,238
|
Financing
receivable, net
|
|
|
144,457
|
|
|
201,321
|
Prepaid
expenses and other current assets
|
|
|
50,321
|
|
|
31,668
|
Amounts due
from related parties
|
|
|
16,484
|
|
|
13,801
|
Current assets
held for sale
|
|
|
7,471
|
|
|
-
|
Total
current assets
|
|
|
403,938
|
|
|
352,175
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Long-term
financing receivable, net
|
|
|
15,273
|
|
|
5,857
|
Property and
equipment, net
|
|
|
33,289
|
|
|
31,039
|
Long-term
investments
|
|
|
810,990
|
|
|
749,526
|
Other
non-current assets
|
|
|
2,313
|
|
|
1,837
|
Non-current
assets held for sale
|
|
|
2,030
|
|
|
-
|
|
|
|
|
|
|
|
Total
non-current assets
|
|
|
863,895
|
|
|
788,259
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
1,267,833
|
|
$
|
1,140,434
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
5,031
|
|
$
|
3,575
|
Short-term
debt
|
|
|
106,919
|
|
|
8,040
|
Accrued
expenses and other current liabilities
|
|
|
29,731
|
|
|
21,839
|
Payable to
investors
|
|
|
48,893
|
|
|
148,904
|
Amounts due to
related parties
|
|
|
36
|
|
|
10,736
|
Deferred
revenue and advance from customers
|
|
|
3,885
|
|
|
7,573
|
Income tax
payable
|
|
|
6,118
|
|
|
6,672
|
Current
liabilities held for sale
|
|
|
8,138
|
|
|
-
|
Total
current liabilities
|
|
|
208,751
|
|
|
207,339
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
|
122,072
|
|
|
97,304
|
Other
non-current liabilities
|
|
|
7,622
|
|
|
9,751
|
Total
non-current liabilities
|
|
|
129,694
|
|
|
107,055
|
|
|
|
|
|
|
|
TOTAL
LIABILITES
|
|
|
338,445
|
|
|
314,394
|
|
|
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
Class A
ordinary shares
|
|
|
714
|
|
|
718
|
Class B
ordinary shares
|
|
|
305
|
|
|
305
|
Additional
paid-in capital
|
|
|
1,243,083
|
|
|
1,256,818
|
Statutory
reserves
|
|
|
6,712
|
|
|
6,712
|
Accumulated
deficit
|
|
|
(357,394)
|
|
|
(426,642)
|
Accumulated
other comprehensive income
|
|
|
37,124
|
|
|
(11,871)
|
|
|
|
|
|
|
|
Total Renren
Inc. shareholders' equity
|
|
|
930,544
|
|
|
826,040
|
|
|
|
|
|
|
|
Noncontrolling
Interests
|
|
|
(1,156)
|
|
|
-
|
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
|
929,388
|
|
|
826,040
|
|
|
|
|
|
|
|
TOAL
LIABILITIES AND EQUITY
|
|
$
|
1,267,833
|
|
$
|
1,140,434
|
RENREN
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
(Amounts in US
dollars, in thousands, except shares,
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
per shares, ADS, and
per ADS data)
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and
IVAS
|
$
|
8,878
|
|
$
|
6,098
|
|
$
|
7,583
|
|
$
|
16,987
|
|
$
|
13,681
|
Financing
income
|
|
1,502
|
|
|
4,681
|
|
|
6,792
|
|
|
1,734
|
|
|
11,473
|
Total net
revenues
|
|
10,380
|
|
|
10,779
|
|
|
14,375
|
|
|
18,721
|
|
|
25,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
(7,477)
|
|
|
(8,414)
|
|
|
(13,118)
|
|
|
(15,293)
|
|
|
(21,532)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
2,903
|
|
|
2,365
|
|
|
1,257
|
|
|
3,428
|
|
|
3,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
(8,771)
|
|
|
(4,619)
|
|
|
(5,222)
|
|
|
(16,353)
|
|
|
(9,841)
|
Research and
development
|
|
(8,616)
|
|
|
(5,339)
|
|
|
(4,610)
|
|
|
(17,374)
|
|
|
(9,949)
|
General and
administrative
|
|
(10,770)
|
|
|
(11,584)
|
|
|
(10,238)
|
|
|
(22,743)
|
|
|
(21,822)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses
|
|
(28,157)
|
|
|
(21,542)
|
|
|
(20,070)
|
|
|
(56,470)
|
|
|
(41,612)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(25,254)
|
|
|
(19,177)
|
|
|
(18,813)
|
|
|
(53,042)
|
|
|
(37,990)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
522
|
|
|
2,932
|
|
|
8,404
|
|
|
737
|
|
|
11,336
|
Exchange loss
on offshore bank accounts
|
|
(18)
|
|
|
-
|
|
|
(3)
|
|
|
(62)
|
|
|
(3)
|
Interest
income
|
|
35
|
|
|
238
|
|
|
252
|
|
|
1,531
|
|
|
490
|
Interest
expense
|
|
-
|
|
|
(3,279)
|
|
|
(2,681)
|
|
|
-
|
|
|
(5,960)
|
Realized (loss)
gain on short-term investments
|
|
(48,809)
|
|
|
(117)
|
|
|
698
|
|
|
(47,693)
|
|
|
581
|
Impairment of
long term investment
|
|
-
|
|
|
-
|
|
|
(35,000)
|
|
|
-
|
|
|
(35,000)
|
Loss before
provision of income tax, earnings (loss)
in equity method investments and noncontrolling
interest, net of income tax
|
|
(73,524)
|
|
|
(19,403)
|
|
|
(47,143)
|
|
|
(98,529)
|
|
|
(66,546)
|
Income tax
expenses
|
|
(2,150)
|
|
|
(582)
|
|
|
(364)
|
|
|
(2,859)
|
|
|
(946)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
earnings (loss) in equity method
investments and noncontrolling interest, net of
income tax
|
|
(75,674)
|
|
|
(19,985)
|
|
|
(47,507)
|
|
|
(101,388)
|
|
|
(67,492)
|
Earnings (loss)
in equity method investments, net of
income tax
|
|
3,333
|
|
|
(11,866)
|
|
|
1,409
|
|
|
3,850
|
|
|
(10,457)
|
Loss from
continuing operations
|
|
(72,341)
|
|
|
(31,851)
|
|
|
(46,098)
|
|
|
(97,538)
|
|
|
(77,949)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations of discontinued operations, net of
income tax
|
|
1,856
|
|
|
391
|
|
|
-
|
|
|
3,227
|
|
|
391
|
Gain on
deconsolidation of the subsidiaries, net of
income tax
|
|
-
|
|
|
8,310
|
|
|
-
|
|
|
-
|
|
|
8,310
|
Income from
discontinued operations, net of income
tax
|
|
1,856
|
|
|
8,701
|
|
|
-
|
|
|
3,227
|
|
|
8,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(70,485)
|
|
|
(23,150)
|
|
|
(46,098)
|
|
|
(94,311)
|
|
|
(69,248)
|
Net loss
attributable to noncontrolling interests
|
|
191
|
|
|
-
|
|
|
-
|
|
|
266
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss attributable to Renren Inc.
|
$
|
(70,294)
|
|
$
|
(23,150)
|
|
$
|
(46,098)
|
|
$
|
(94,045)
|
|
$
|
(69,248)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share from continuing operations
attributable to Renren Inc.shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.07)
|
|
$
|
(0.03)
|
|
$
|
(0.05)
|
|
$
|
(0.10)
|
|
$
|
(0.08)
|
Diluted
|
$
|
(0.07)
|
|
$
|
(0.03)
|
|
$
|
(0.05)
|
|
$
|
(0.10)
|
|
$
|
(0.08)
|
Net income per
share from discontinued operations
attributable to Renren Inc.shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.00
|
|
$
|
0.01
|
|
$
|
-
|
|
$
|
0.00
|
|
$
|
0.01
|
Diluted
|
$
|
0.00
|
|
$
|
0.01
|
|
$
|
-
|
|
$
|
0.00
|
|
$
|
0.01
|
Net loss per
share attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.07)
|
|
$
|
(0.02)
|
|
$
|
(0.05)
|
|
$
|
(0.09)
|
|
$
|
(0.07)
|
Diluted
|
$
|
(0.07)
|
|
$
|
(0.02)
|
|
$
|
(0.05)
|
|
$
|
(0.09)
|
|
$
|
(0.07)
|
Net loss
attributable to Renren Inc. shareholders per
ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.21)
|
|
$
|
(0.07)
|
|
$
|
(0.14)
|
|
$
|
(0.28)
|
|
$
|
(0.20)
|
Diluted
|
$
|
(0.21)
|
|
$
|
(0.07)
|
|
$
|
(0.14)
|
|
$
|
(0.28)
|
|
$
|
(0.20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in
calculating net loss per ordinary share from
continuing operations attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1,018,522,306
|
|
|
1,020,390,797
|
|
|
1,022,385,038
|
|
|
1,020,421,822
|
|
|
1,021,387,919
|
Diluted
|
|
1,018,522,306
|
|
|
1,020,390,797
|
|
|
1,022,385,038
|
|
|
1,020,421,822
|
|
|
1,021,387,919
|
Weighted
average number of shares used in
calculating net income per ordinary share from
discontinued operations attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1,018,522,306
|
|
|
1,020,390,797
|
|
|
1,022,385,038
|
|
|
1,020,421,822
|
|
|
1,021,387,919
|
Diluted
|
|
1,026,788,329
|
|
|
1,032,344,050
|
|
|
1,022,385,038
|
|
|
1,026,948,989
|
|
|
1,028,585,350
|
Reconciliation of Non-GAAP results of
operations measures to the comparable GAAP financial
measures
|
Adjusted net
loss
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
(Amounts in US
dollars, in thousands)
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(70,485)
|
|
$
|
(23,150)
|
|
|
(46,098)
|
|
|
(94,311)
|
|
|
(69,248)
|
Add back:
Shared-based compensation expenses
|
|
6,169
|
|
|
7,204
|
|
|
5,457
|
|
|
12,363
|
|
|
12,661
|
Add back:
Amortization of intangible assets
|
|
33
|
|
|
21
|
|
|
-
|
|
|
33
|
|
|
21
|
Adjusted net
loss
|
$
|
(64,283)
|
|
$
|
(15,925)
|
|
|
(40,641)
|
|
|
(81,915)
|
|
|
(56,566)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/renren-announces-unaudited-second-quarter-2016-financial-results-300314017.html
SOURCE Renren Inc.