Print Page     Close Window     

Press Release


Renren Announces Unaudited First Quarter 2017 Financial Results

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.