BEIJING, June 21, 2017 /PRNewswire/ -- Renren Inc.
(NYSE: RENN) ("Renren" or the "Company"), which operates a social
networking service and internet finance business in China, today announced its unaudited financial
results for the first quarter ended March
31, 2017.
First Quarter 2017 Highlights
- Total net revenues were US$20.9
million, a 94.3% increase from the corresponding period in
2016.
-
- Advertising and IVAS net revenues were US$11.6 million, a 90.2% increase from the
corresponding period in 2016.
- Financing income was US$9.3
million, a 99.7% increase from the corresponding period of
2016.
- Gross profit was US$6.4
million, a 172.6% increase from the corresponding period in
2016.
- Operating loss was US$17.6
million, compared to an operating loss of US$19.2 million in the corresponding period in
2016.
- Net loss attributable to the Company was US$16.2 million, compared to a net loss of
US$23.2 million in the corresponding
period in 2016.
- Adjusted net loss(1) (non-GAAP) was
US$11.0 million, compared to an
adjusted net loss of US$15.9 million
in the corresponding period in 2016.
(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.
|
First Quarter 2017 Results
Total net revenues for the first quarter of 2017 were
US$20.9 million, representing a 94.3%
increase from the corresponding period in 2016.
Advertising and IVAS net revenues were US$11.6 million, representing a 90.2% increase
from the corresponding period of 2016. Advertising revenues
were US$0.1 million for the first
quarter of 2017. Internet Value-Added Services (IVAS)
revenues were US$11.5 million,
representing a 110.4% increase from the corresponding period in
2016. The increase was mainly due to the revenue from our Renren
mobile live streaming service. Monthly unique log-in users
decreased from approximately 37 million in March 2016 to
approximately 34 million in March
2017. Login users' monthly average time spent increased
22.5% year-over-year.
Financing income was US$9.3
million for the first quarter of 2017, compared to
US$4.7 million in the corresponding
period of 2016. The increase was in line with the increase of
financing receivable from US$170.6
million as of March 31, 2016
to US$270.1 million as of
March 31, 2017.
Cost of revenues was US$14.5
million, a 72.3% increase from the corresponding period of
2016.
Operating expenses were US$24.0
million, an 11.6% increase from the corresponding period of
2016.
Selling and marketing expenses were US$6.1 million, a 33.1% increase from the
corresponding period of 2016. The increase was primarily due to the
increase in advertising and promotion expenses.
Research and development expenses were US$5.8 million, an 8.3% increase from the
corresponding period in 2016. The increase was primarily due to the
increase in headcount and personnel related expenses.
General and administrative expenses were US$12.1 million, a 4.6% increase from the
corresponding period in 2016. The increase was primarily due to the
increase in related professional fees for a proposed
transaction.
Share-based compensation expenses, which were all
included in operating expenses, were US$5.1
million, compared to US$7.2
million in the corresponding period in 2016.
Operating loss was US$17.6
million, compared to an operating loss of US$19.2 million in the corresponding period in
2016.
Realized gain on short-term investments was US$0.1 million, compared to a loss of
US$0.1 million in the corresponding
period in 2016.
Income in equity method investments was US$4.1 million, compared to loss of US$11.9 million in the corresponding period in
2016.
Net loss attributable to the Company was US$16.2 million, compared to a net loss of
US$23.2 million in the corresponding
period in 2016.
Adjusted net loss (non-GAAP) was US$11.0 million, compared to an adjusted net loss
of US$15.9 million in the
corresponding period in 2016. 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$21.5 million to US$23.5
million in the second quarter of 2017, representing a 49.6%
to 63.5% year-over-year increase. 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 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 auto
financing. Renren.com and our renren mobile application had
approximately 242 million activated users as of March 31, 2017. Renren's American depositary
shares, each of which represents fifteen 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 2017 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:
Investor Relations
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 share, ADS, and
per ADS data)
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
79,370
|
|
$
|
52,071
|
Restricted
Cash
|
|
|
|
|
30,390
|
|
|
30,781
|
Short-term
investments
|
|
|
|
|
410
|
|
|
416
|
Accounts and
notes receivable, net
|
|
|
|
|
4,702
|
|
|
4,621
|
Financing
receivable, net
|
|
|
|
|
301,773
|
|
|
269,988
|
Prepaid
expenses and other current assets
|
|
|
|
|
20,749
|
|
|
23,769
|
Amounts due
from related parties
|
|
|
|
|
13,419
|
|
|
18,613
|
Equity method
investment-current
|
|
|
|
|
-
|
|
|
33,591
|
Total current
assets
|
|
|
|
|
450,813
|
|
|
433,850
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Long-term
financing receivable, net
|
|
|
|
|
330
|
|
|
89
|
Property and
equipment, net
|
|
|
|
|
28,666
|
|
|
28,612
|
Long-term
investments
|
|
|
|
|
695,348
|
|
|
677,527
|
Other
non-current assets
|
|
|
|
|
1,687
|
|
|
1,685
|
Total
non-current assets
|
|
|
|
|
726,031
|
|
|
707,913
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
|
$
|
1,176,844
|
|
$
|
1,141,763
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
$
|
5,561
|
|
$
|
5,715
|
Short-term
debt
|
|
|
|
|
37,202
|
|
|
44,528
|
Accrued
expenses and other current liabilities
|
|
|
|
|
19,781
|
|
|
19,174
|
Payable to
investors
|
|
|
|
|
182,951
|
|
|
162,987
|
Amounts due to
related parties
|
|
|
|
|
10,914
|
|
|
10,903
|
Deferred
revenue and advance from customers
|
|
|
|
|
5,954
|
|
|
5,432
|
Income tax
payable
|
|
|
|
|
7,860
|
|
|
8,696
|
Total
current liabilities
|
|
|
|
|
270,223
|
|
|
257,435
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
|
95,390
|
|
|
80,934
|
Long-term
payable to investors
|
|
|
|
|
59,916
|
|
|
60,437
|
Other
non-current liabilities
|
|
|
|
|
12,849
|
|
|
14,085
|
Total
non-current liabilities
|
|
|
|
|
168,155
|
|
|
155,456
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITES
|
|
|
|
|
438,378
|
|
|
412,891
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
Class A
ordinary shares
|
|
|
|
|
720
|
|
|
722
|
Class B
ordinary shares
|
|
|
|
|
305
|
|
|
305
|
Additional
paid-in capital
|
|
|
|
|
1,266,592
|
|
|
1,271,733
|
Statutory
reserves
|
|
|
|
|
6,712
|
|
|
6,712
|
Accumulated
deficit
|
|
|
|
|
(542,746)
|
|
|
(558,924)
|
Accumulated
other comprehensive income
|
|
|
|
|
6,883
|
|
|
8,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
|
|
|
738,466
|
|
|
728,872
|
TOAL
LIABILITIES AND EQUITY
|
|
|
|
$
|
1,176,844
|
|
$
|
1,141,763
|
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)
|
|
2016
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
Advertising and
IVAS
|
|
$
|
6,098
|
|
$
|
10,788
|
|
$
|
11,599
|
Financing
income
|
|
|
4,681
|
|
|
9,536
|
|
|
9,347
|
Total net
revenues
|
|
|
10,779
|
|
|
20,324
|
|
|
20,946
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(8,414)
|
|
|
(15,883)
|
|
|
(14,499)
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
2,365
|
|
|
4,441
|
|
|
6,447
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
|
(4,619)
|
|
|
(5,464)
|
|
|
(6,148)
|
Research and
development
|
|
|
(5,339)
|
|
|
(5,323)
|
|
|
(5,784)
|
General and
administrative
|
|
|
(11,584)
|
|
|
(10,069)
|
|
|
(12,112)
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses
|
|
|
(21,542)
|
|
|
(20,856)
|
|
|
(24,044)
|
Loss from
operations
|
|
|
(19,177)
|
|
|
(16,415)
|
|
|
(17,597)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
2,932
|
|
|
1,151
|
|
|
(6)
|
Interest
income
|
|
|
238
|
|
|
328
|
|
|
315
|
Interest
expenses
|
|
|
(3,279)
|
|
|
(3,793)
|
|
|
(2,305)
|
Realized (loss)
gain on short-term investments
|
|
|
(117)
|
|
|
42
|
|
|
100
|
Impairment of
long term investments
|
|
|
-
|
|
|
(67,307)
|
|
|
-
|
Total
non-operating loss
|
|
|
(226)
|
|
|
(69,579)
|
|
|
(1,896)
|
|
|
|
|
|
|
|
|
|
|
Loss before
provision of income tax and loss
(income) in equity method investments, net of
tax
|
|
|
(19,403)
|
|
|
(85,994)
|
|
|
(19,493)
|
Income tax
expenses
|
|
|
(582)
|
|
|
(898)
|
|
|
(780)
|
|
|
|
|
|
|
|
|
|
|
Loss before
loss in equity method investments, net
of tax
|
|
|
(19,985)
|
|
|
(86,892)
|
|
|
(20,273)
|
(Loss) income
in equity method investments, net of tax
|
|
|
(11,866)
|
|
|
(6,402)
|
|
|
4,095
|
Loss from
continuing operations
|
|
|
(31,851)
|
|
|
(93,294)
|
|
|
(16,178)
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operation
|
|
|
|
|
|
|
|
|
|
Income from
operations of discontinued operations, net
of income tax
|
|
|
391
|
|
|
-
|
|
|
-
|
Gain on
deconsolidation of the subsidiaries, net of
income tax
|
|
|
8,310
|
|
|
-
|
|
|
-
|
Income from
discontinued operations, net of tax
|
|
|
8,701
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Renren Inc.
|
|
$
|
(23,150)
|
|
$
|
(93,294)
|
|
$
|
(16,178)
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share from continuing operations
attributable to
Renren Inc.shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.03)
|
|
$
|
(0.09)
|
|
$
|
(0.02)
|
Diluted
|
|
$
|
(0.03)
|
|
$
|
(0.09)
|
|
$
|
(0.02)
|
Net income per
share from discontinued operations
attributable to
Renren Inc.shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.01
|
|
$
|
-
|
|
$
|
-
|
Diluted
|
|
$
|
0.01
|
|
$
|
-
|
|
$
|
-
|
Net loss per
share attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.02)
|
|
$
|
(0.09)
|
|
$
|
(0.02)
|
Diluted
|
|
$
|
(0.02)
|
|
$
|
(0.09)
|
|
$
|
(0.02)
|
Net loss
attributable to Renren Inc. shareholders per
ADS*:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.34)
|
|
$
|
(1.37)
|
|
$
|
(0.24)
|
Diluted
|
|
$
|
(0.34)
|
|
$
|
(1.37)
|
|
$
|
(0.24)
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in calculating
net loss per ordinary share from continuing operations
attributable to Renren Inc. shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,020,390,797
|
|
|
1,024,521,024
|
|
|
1,026,375,051
|
Diluted
|
|
|
1,020,390,797
|
|
|
1,024,521,024
|
|
|
1,026,375,051
|
Weighted
average number of shares used in calculating
net income per ordinary share from discontinued
operations attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,020,390,797
|
|
|
1,024,521,024
|
|
|
1,026,375,051
|
Diluted
|
|
|
1,032,344,050
|
|
|
1,024,521,024
|
|
|
1,026,375,051
|
|
|
|
|
|
|
|
|
|
|
* Each ADS
represents 15 Class A ordinary shares.
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP results of
operations measures to the comparable GAAP financial
measures
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
(Amounts in US
dollars, in thousands)
|
|
|
March
31,
|
|
|
December
31,
|
|
|
March
31,
|
|
2016
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(23,150)
|
|
$
|
(93,294)
|
|
$
|
(16,178)
|
Add back:
Shared-based compensation expenses
|
|
|
7,204
|
|
|
5,372
|
|
|
5,143
|
Add back:
Amortization of intangible assets
|
|
|
21
|
|
|
-
|
|
|
-
|
Adjusted net
loss
|
|
$
|
(15,925)
|
|
$
|
(87,922)
|
|
$
|
(11,035)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/renren-announces-unaudited-first-quarter-2017-financial-results-300477340.html
SOURCE Renren Inc.