BEIJING, Aug. 20, 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 second quarter ended June
30, 2015.
Second Quarter 2015 Highlights
- Total net revenues were US$15.1
million, a 34.0% decrease from the corresponding period in
2014.
- Renren net revenues were US$10.3
million, a 21.1% decrease from the
corresponding period in 2014.
- Games net revenues were US$4.8
million, a 51.1% decrease from the
corresponding period in 2014.
- Gross profit was US$5.2
million, a 53.6% decrease from the corresponding period in
2014.
- Operating loss was US$24.3
million, compared to an operating loss of US$25.6 million in the corresponding period in
2014.
- Net loss attributable to the Company was US$78.1 million, compared to a net income of
US$31.3 million in the corresponding
period in 2014.
- Adjusted net loss (1) (non-GAAP) was
US$71.9 million, compared to an
adjusted net income (1) (non-GAAP) of US$37.4 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.
|
Second Quarter 2015 Results
Total net revenues for the second quarter of 2015 were
US$15.1 million, representing a 34.0%
decrease from the corresponding period in 2014.
Renren net revenues were US$10.3
million, representing a 21.1% decrease from the
corresponding period of 2014. Within Renren net revenues, online
advertising revenues were US$3.9
million for the second quarter of 2015, a 60.1% 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$6.4 million, representing a
90.8% 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 increased from approximately
44 million in June 2014 to
approximately 45 million in June
2015.
Games net revenues were US$4.8
million for the second quarter of 2015, a 51.1% 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$9.9
million, a 15.4% decrease from the corresponding period of
2014.
Operating expenses were US$29.5
million, a 20.0% decrease from the corresponding period of
2014.
Selling and marketing expenses were US$9.2 million, a 9.3% 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$8.8 million, a 31.8% 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$11.5 million, a 14.1% decrease from the
corresponding period in 2014. The decrease was primarily due to the
decrease in bad debt expenses.
Share-based compensation expenses, all of which were
included in operating expenses, were US$6.2
million, compared to US$5.3
million in the corresponding period in 2014.
Operating loss was US$24.3
million, compared to an operating loss of US$25.6 million in the corresponding period in
2014.
Net loss attributable to the Company was US$78.1 million, compared to a net income of
US$31.3 million in the corresponding
period in 2014. In the second quarter of 2014 the Company
recognized a US$86.0 million gain
from the disposal of available-for-sales marketable securities.
Adjusted net loss (non-GAAP) was US$71.9 million, compared to an adjusted net
income of US$37.4 million in the
corresponding period in 2014.
Share Repurchase Program
Renren repurchased approximately 16.8 million ADSs for an
aggregate amount of approximately US$52.2
million under the share repurchase program which expired on
June 27, 2015.
Business Outlook
The Company expects to generate revenues in an amount ranging
from US$11 million to US$13 million
in the third quarter of 2015, representing a 33.4% to 43.7%
year-over-year decline. This forecast reflects Renren's current and
preliminary view, which is subject to change.
Receipt of Non-Binding Proposal to Acquire the
Company
On June 10, 2015, the Company
announced that its Board of Directors (the "Board") has received a
non-binding proposal letter, dated June 10, 2015, from
Mr. Joseph Chen, Chairman of the Board and Chief Executive
Officer of the Company, and Mr. James Jian Liu, a member of
the Board and Chief Operating Officer of the Company, proposing a
"going-private" transaction (the "Transaction") to acquire all of
the outstanding ordinary shares of the Company not already owned by
Mr. Chen or Mr. Liu for US$4.20 in cash per American
depositary share ("ADS"), or US$1.40 per ordinary share, which represents
approximately 22% above the average closing price of the Company's
ADSs over the last 30 trading days up to and including June 9,
2015.
The Board intends to form a special committee consisting of
independent directors to consider this proposal. The Board cautions
the Company's shareholders and others considering trading in its
securities that the Board just received the non-binding proposal
letter from Mr. Chen and Mr. Liu and no decisions have been made
with respect to the Company's response to the proposed Transaction.
There can be no assurance that any definitive offer will be made,
that any agreement will be executed or that this or any other
transaction will be approved or consummated. The Company does
not undertake any obligation to provide any updates with respect to
this or any other transaction, except as required under applicable
law.
Conference Call Information
Due to the receipt of a non-binding proposal to acquire the
Company, the Company will not host a conference call. Please
contact our Investor Relations Department listed below if you have
any questions.
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 227
million activated users as of June 30,
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 third 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,
per shares, ADS, and
per ADS data)
|
|
|
|
|
March
31,
|
|
|
June
30,
|
|
|
2015
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
158,493
|
|
$
|
141,908
|
Term
deposits
|
|
|
|
|
188,316
|
|
|
44,715
|
Restricted
Cash
|
|
|
|
|
-
|
|
|
15,370
|
Short-term
investments
|
|
|
|
|
66,181
|
|
|
56,869
|
Accounts and
notes receivable, net
|
|
|
|
|
19,501
|
|
|
69,627
|
Prepaid
expenses and other current assets
|
|
|
|
|
52,021
|
|
|
64,332
|
Amounts due
from related parties
|
|
|
|
|
1,086
|
|
|
5,289
|
Total
current assets
|
|
|
|
|
485,598
|
|
|
398,110
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
|
|
41,000
|
|
|
38,572
|
Intangible
assets, net
|
|
|
|
|
2
|
|
|
360
|
Long-term
investments
|
|
|
|
|
578,682
|
|
|
611,510
|
Other
non-current assets
|
|
|
|
|
21,474
|
|
|
21,231
|
Total
non-current assets
|
|
|
|
|
641,158
|
|
|
671,673
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
|
$
|
1,126,756
|
|
$
|
1,069,783
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
$
|
5,053
|
|
$
|
6,038
|
Short-term
loan
|
|
|
|
|
-
|
|
|
263
|
Accrued
expenses and other payables
|
|
|
|
|
22,138
|
|
|
44,360
|
Amounts due to
related parties
|
|
|
|
|
318
|
|
|
261
|
Deferred
revenue and advance from customers
|
|
|
|
|
8,548
|
|
|
10,955
|
Income tax
payable
|
|
|
|
|
9,926
|
|
|
6,046
|
Total
current liabilities
|
|
|
|
|
45,983
|
|
|
67,923
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
Other
non-current liabilities
|
|
|
|
|
730
|
|
|
730
|
Total
non-current liabilities
|
|
|
|
|
730
|
|
|
730
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITES
|
|
|
|
|
46,713
|
|
|
68,653
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
Class A
ordinary shares
|
|
|
|
|
714
|
|
|
712
|
Class B
ordinary shares
|
|
|
|
|
305
|
|
|
305
|
Additional
paid-in capital
|
|
|
|
|
1,224,622
|
|
|
1,227,354
|
Statutory
reserves
|
|
|
|
|
6,712
|
|
|
6,712
|
Accumulated
deficit
|
|
|
|
|
(164,769)
|
|
|
(242,675)
|
Accumulated
other comprehensive income
|
|
|
|
|
12,912
|
|
|
9,206
|
|
|
|
|
|
|
|
|
|
Total Renren
Inc. shareholders' equity
|
|
|
|
|
1,080,496
|
|
|
1,001,614
|
|
|
|
|
|
|
|
|
|
Noncontrolling
Interests
|
|
|
|
|
(453)
|
|
|
(484)
|
|
|
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
|
|
|
1,080,043
|
|
|
1,001,130
|
|
|
|
|
|
|
|
|
|
TOAL
LIABILITIES AND EQUITY
|
|
|
|
$
|
1,126,756
|
|
$
|
1,069,783
|
|
|
|
|
|
|
|
|
|
RENREN
INC.
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
(Amounts in US
dollars, in thousands, except shares,
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
June
30,
|
per shares, ADS, and
per ADS data)
|
|
|
2014
|
|
|
2015
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
Renren
|
|
|
$
|
13,025
|
|
$
|
8,219
|
|
$
|
10,281
|
Games
|
|
|
|
9,904
|
|
|
5,509
|
|
|
4,847
|
Total net
revenues
|
|
|
|
22,929
|
|
|
13,728
|
|
|
15,128
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
(11,740)
|
|
|
(10,545)
|
|
|
(9,934)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
11,189
|
|
|
3,183
|
|
|
5,194
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
|
|
(10,132)
|
|
|
(7,910)
|
|
|
(9,189)
|
Research and
development
|
|
|
|
(12,865)
|
|
|
(8,949)
|
|
|
(8,776)
|
General and
administrative
|
|
|
|
(13,395)
|
|
|
(12,848)
|
|
|
(11,511)
|
Impairment of
intangible assets
|
|
|
|
(445)
|
|
|
-
|
|
|
-
|
Restructuring
cost
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses
|
|
|
|
(36,837)
|
|
|
(29,707)
|
|
|
(29,476)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
|
(25,648)
|
|
|
(26,524)
|
|
|
(24,282)
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
|
272
|
|
|
272
|
|
|
1,398
|
Other
expense
|
|
|
|
-
|
|
|
-
|
|
|
-
|
Exchange gain
(loss) on offshore bank accounts
|
|
|
|
301
|
|
|
(44)
|
|
|
(18)
|
Interest
income
|
|
|
|
2,895
|
|
|
1,554
|
|
|
61
|
Realized
gain(loss) on short-term investments
|
|
|
|
85,994
|
|
|
1,116
|
|
|
(48,809)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
provision of income tax, earnings in equity method
investments and noncontrolling interest,
net of income taxes
|
|
|
|
63,814
|
|
|
(23,626)
|
|
|
(71,650)
|
Income tax
expenses
|
|
|
|
(625)
|
|
|
(709)
|
|
|
(2,150)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before
earnings in equity method investments and
noncontrolling interest, net of income
taxes
|
|
|
|
63,189
|
|
|
(24,335)
|
|
|
(73,800)
|
Losses in
equity method investments, net of income taxes
|
|
|
|
(27,170)
|
|
|
(3,243)
|
|
|
(4,297)
|
Income
(loss) from continuing operations
|
|
|
|
36,019
|
|
|
(27,578)
|
|
|
(78,097)
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operation
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations of discontinued operations, net of income
taxes
|
|
|
|
(4,712)
|
|
|
-
|
|
|
-
|
Gain on
deconsolidation of the subsidiaries
|
|
|
|
-
|
|
|
-
|
|
|
-
|
Gain (loss) on
disposal of equity method investment, net of income
tax
|
|
|
|
-
|
|
|
-
|
|
|
-
|
Gain (loss)
from discontinued operations, net of income
taxes
|
|
|
|
(4,712)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
|
31,307
|
|
|
(27,578)
|
|
|
(78,097)
|
Net loss
attributable to noncontrolling interests
|
|
|
|
-
|
|
|
75
|
|
|
191
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to Renren Inc.
|
|
|
$
|
31,307
|
|
$
|
(27,503)
|
|
$
|
(77,906)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per share from continuing operations attributable to
Renren Inc.shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.03
|
|
$
|
(0.03)
|
|
$
|
(0.08)
|
Diluted
|
|
|
$
|
0.03
|
|
$
|
(0.03)
|
|
$
|
(0.08)
|
Net (loss)
income per share from discontinued operations attributable to
Renren Inc.shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.00)
|
|
$
|
-
|
|
$
|
-
|
Diluted
|
|
|
$
|
(0.00)
|
|
$
|
-
|
|
$
|
-
|
Net (loss)
income per share attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.03
|
|
$
|
(0.03)
|
|
$
|
(0.08)
|
Diluted
|
|
|
$
|
0.03
|
|
$
|
(0.03)
|
|
$
|
(0.08)
|
Net (loss)
income attributable to Renren Inc. shareholders per
ADS:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.09
|
|
$
|
(0.08)
|
|
$
|
(0.23)
|
Diluted
|
|
|
$
|
0.09
|
|
$
|
(0.08)
|
|
$
|
(0.23)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in calculating net (loss) income
per ordinary share from continuing operations
attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
1,062,632,013
|
|
|
1,022,342,445
|
|
|
1,018,522,306
|
Diluted
|
|
|
|
1,072,951,501
|
|
|
1,022,342,445
|
|
|
1,018,522,306
|
Weighted
average number of shares used in calculating net (loss) income
per ordinary share from discontinued operations
attributable to
Renren Inc. shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
1,062,632,013
|
|
|
1,022,342,445
|
|
|
1,018,522,306
|
Diluted
|
|
|
|
1,062,632,013
|
|
|
1,022,342,445
|
|
|
1,018,522,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
June
30,
|
|
|
2014
|
|
|
2015
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
$
|
31,307
|
|
$
|
(27,578)
|
|
$
|
(78,097)
|
Add back:
Shared-based compensation expenses
|
|
|
|
5,313
|
|
|
6,194
|
|
|
6,169
|
Add back:
Amortization of intangible assets
|
|
|
|
308
|
|
|
-
|
|
|
33
|
Add back:
Impairment of goodwill
|
|
|
|
-
|
|
|
-
|
|
|
-
|
Add back:
Impairment of intangible assets
|
|
|
|
445
|
|
|
-
|
|
|
-
|
Adjusted net
(loss) income
|
|
|
$
|
37,373
|
|
$
|
(21,384)
|
|
$
|
(71,895)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/renren-announces-unaudited-second-quarter-2015-financial-results-300131196.html
SOURCE Renren Inc.