Renren Announces Unaudited Fourth Quarter and Fiscal Year 2012 Financial Results
- Total net revenues were
US$48.8 million , a 48.8% increase from the corresponding period in 2011. - Online game revenues were
US$25.9 million , a 116.5% increase from the corresponding period in 2011. - Gross profit was
US$31.0 million , a 34.2% increase from the corresponding period in 2011. - Operating loss was
US$28.3 million , compared to an operating loss ofUS$19.7 million in the corresponding period in 2011. - Net loss attributable to
Renren wasUS$21.1 million , compared to a net income ofUS$44.3 million in the corresponding period in 2011. - Adjusted net loss (1) (non-GAAP) was
US$16.7 million , compared to an adjusted net income ofUS$48.2 million in the corresponding period in 2011.
Fiscal Year 2012 Highlights
- Total net revenues were
US$176.1 million , a 49.3% increase from 2011. - Online game revenues were
US$90.2 million , a 113.2% increase from 2011. - Gross profit was
US$109.5 million , a 19.3% increase from 2011. - Operating loss was
US$91.7 million , compared to an operating loss ofUS$30.2 million in 2011. - Net loss attributable to
Renren wasUS$75.0 million , compared to a net income ofUS$41.3 million in 2011. - Adjusted net loss (1) (non-GAAP) was
US$61.9 million , compared to an adjusted net income ofUS$49.7 million in 2011.
"2012 was a year of investment and transition for
"Heading into 2013, our priorities are clear.
"Our net revenues in the fourth quarter came in above the top-end of our guidance. Among our business lines, games and Nuomi continue to show encouraging trends while brand advertising still faces challenges. Our investments in 2012 helped us go through the transition needed to capture the mobile opportunities in front of us. Going into the new year with a healthy balance sheet and more clarity in strategy and focus, we will continue to further transform
(1) |
Adjusted net income (loss) is a non-GAAP measure, which is defined as income (loss) from continuing operations excluding share-based compensation expenses, amortization of intangible assets and impairment of intangible assets. |
Total net revenues for the fourth quarter of 2012 were
Internet Value-Added Services (IVAS) revenues were
Online advertising revenues were
Cost of revenues was
Operating expenses were
Selling and marketing expenses were
Research and development expenses were
General and administrative expenses were
Share-based compensation expense, which were all included in the operating expenses, were
Operating loss was
Net loss attributable to
Adjusted net loss (non-GAAP) was
Fiscal Year 2012 Results
Total net revenues in 2012 were
Internet Value-Added Services (IVAS) revenues in 2012 were
Online advertising revenues in 2012 were
Cost of revenues in 2012 was
Gross profit in 2012 was
Operating expenses in 2012 were
Selling and marketing expenses in 2012 were
Research and development expenses in 2012 were
General and administrative expenses in 2012 were
Share-based compensation expenses in 2012, which were all included in the operating expenses, were
Operating loss in 2012 was
Net loss attributable to
Adjusted net loss (non-GAAP) in 2012 was
Business Outlook
The Company expects to generate revenues in an amount ranging from
Conference Call Information
Management will host an earnings conference call at
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: +1 718-354-1231
International: + 65-6723-9381
Passcode:
A replay of the call will be available for one week and dial-in information is as follows:
International: + 61 2-8199-0299
Passcode: 14671441
This call will be webcast live and the replay will be available on
About
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 first quarter of 2013 and quotations from management in this announcement, as well as
About Non-GAAP Financial Measures
To supplement
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 Director
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, |
December 31, |
||||
per shares, ADS, and per ADS data) |
2011 |
2012 |
||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
284,643 |
$ |
207,438 |
||
Term deposits |
702,680 |
550,000 |
||||
Short-term investments |
53,393 |
148,018 |
||||
Trade and notes receivable, net |
14,911 |
18,402 |
||||
Prepaid expenses and other current assets |
59,389 |
29,591 |
||||
Amounts due from related parties |
573 |
258 |
||||
Deferred tax assets-current |
1,381 |
— |
||||
Total current assets |
1,116,970 |
953,707 |
||||
Non-current assets: |
||||||
Equipment, net |
22,301 |
32,355 |
||||
Intangible assets, net |
28,086 |
26,820 |
||||
Goodwill |
58,998 |
59,673 |
||||
Long-term investments |
50,300 |
107,597 |
||||
Amounts due from related parties - noncurrent |
— |
1,605 |
||||
Other non-current assets |
1,353 |
22,634 |
||||
Total non-current assets |
161,038 |
250,684 |
||||
TOTAL ASSETS |
$ |
1,278,008 |
$ |
1,204,391 |
||
LIABILITIES AND EQUITY |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
20,381 |
$ |
36,743 |
||
Accrued expenses and other payables |
31,108 |
41,608 |
||||
Amounts due to a related party |
51 |
77 |
||||
Deferred revenue and advance from customers |
7,441 |
10,668 |
||||
Income tax payable |
1,506 |
1,023 |
||||
Total current liabilities |
60,487 |
90,119 |
||||
Non-current liabilities: |
||||||
Deferred tax liabilities-noncurrent |
6,976 |
6,564 |
||||
Total non-current liabilities |
6,976 |
6,564 |
||||
TOTAL LIABILITIES |
67,463 |
96,683 |
||||
Commitments |
||||||
Shareholders' Equity: |
||||||
Class A ordinary shares (US$0.001 par value, 3,000,000,000 shares authorized, |
771 |
730 |
||||
Class B ordinary shares (US$0.001 par value, 500,000,000 shares authorized, |
399 |
403 |
||||
Treasury stocks, at cost |
(25,597) |
— |
||||
Additional paid-in capital |
1,407,059 |
1,320,649 |
||||
Subscription receivable |
— |
(229) |
||||
Statutory reserves |
3,507 |
6,712 |
||||
Accumulated deficit |
(183,228) |
(261,459) |
||||
Accumulated other comprehensive income |
7,334 |
40,687 |
||||
Total shareholders' equity |
1,210,245 |
1,107,493 |
||||
Noncontrolling Interests |
300 |
215 |
||||
Total equity |
1,210,545 |
1,107,708 |
||||
LIABILITIES AND EQUITY |
$ |
1,278,008 |
$ |
1,204,391 |
||
RENREN INC. |
|||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended |
For the Twelve Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in US dollars, in thousands, except shares, |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
||||||||||||||||||||||||||||||||||||||||||||
per shares, ADS, and per ADS data) |
2011 |
2012 |
2012 |
2011 |
2012 |
||||||||||||||||||||||||||||||||||||||||||||
Net revenues |
|||||||||||||||||||||||||||||||||||||||||||||||||
Online advertising |
$ |
14,974 |
$ |
16,938 |
$ |
12,478 |
$ |
59,613 |
$ |
53,842 |
|||||||||||||||||||||||||||||||||||||||
IVAS |
17,832 |
33,428 |
36,339 |
58,354 |
122,244 |
||||||||||||||||||||||||||||||||||||||||||||
Total net revenues |
32,806 |
50,366 |
48,817 |
117,967 |
176,086 |
||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues |
(9,688) |
(19,444) |
(17,801) |
(26,233) |
(66,619) |
||||||||||||||||||||||||||||||||||||||||||||
Gross profit |
23,118 |
30,922 |
31,016 |
91,734 |
109,467 |
||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: |
|||||||||||||||||||||||||||||||||||||||||||||||||
Selling and marketing |
(20,189) |
(21,371) |
(22,422) |
(62,050) |
(82,789) |
||||||||||||||||||||||||||||||||||||||||||||
Research and development |
(13,867) |
(20,844) |
(25,539) |
(40,310) |
(79,541) |
||||||||||||||||||||||||||||||||||||||||||||
General and administrative |
(6,458) |
(9,341) |
(11,380) |
(17,215) |
(38,860) |
||||||||||||||||||||||||||||||||||||||||||||
Impairment of intangible assets |
(2,351) |
— |
— |
(2,351) |
— |
||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses |
(42,865) |
(51,556) |
(59,341) |
(121,926) |
(201,190) |
||||||||||||||||||||||||||||||||||||||||||||
Loss from operations |
(19,747) |
(20,634) |
(28,325) |
(30,192) |
(91,723) |
||||||||||||||||||||||||||||||||||||||||||||
Other income |
2,007 |
1,362 |
161 |
2,367 |
2,446 |
||||||||||||||||||||||||||||||||||||||||||||
Exchange gain (loss) on dual currency deposit and offshore bank |
3,012 |
972 |
— |
7,753 |
(1,769) |
||||||||||||||||||||||||||||||||||||||||||||
Interest income |
5,658 |
5,733 |
3,379 |
9,619 |
20,067 |
||||||||||||||||||||||||||||||||||||||||||||
Realized gain on available-for-sale investments |
50,884 |
870 |
770 |
50,884 |
4,317 |
||||||||||||||||||||||||||||||||||||||||||||
Impairment of cost method investment |
(79) |
— |
— |
(79) |
— |
||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before provision of income tax, earnings (loss) in equity method investments and noncontrolling interests, net of income taxes |
41,735 |
(11,697) |
(24,015) |
40,352 |
(66,662) |
||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (expenses) |
1,120 |
(117) |
(494) |
(668) |
(920) |
||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before earnings (loss) in equity method investments and noncontrolling interests, net of income taxes |
42,855 |
(11,814) |
(24,509) |
39,684 |
(67,582) |
||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) in equity method investments, net of income taxes |
1,320 |
(3,586) |
3,411 |
1,320 |
(7,471) |
||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) |
44,175 |
(15,400) |
(21,098) |
41,004 |
(75,053) |
||||||||||||||||||||||||||||||||||||||||||||
Add: Net loss attributable to noncontrolling interests, net of income taxes |
115 |
— |
14 |
252 |
27 |
||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Renren Inc. |
$ |
44,290 |
$ |
(15,400) |
$ |
(21,084) |
$ |
41,256 |
$ |
(75,026) |
|||||||||||||||||||||||||||||||||||||||
Net income (loss) per share, basic |
$ |
0.04 |
$ |
(0.01) |
$ |
(0.02) |
$ |
0.05 |
$ |
(0.07) |
|||||||||||||||||||||||||||||||||||||||
Net income (loss) per ADS, basic |
$ |
0.11 |
$ |
(0.04) |
$ |
(0.06) |
$ |
0.15 |
$ |
(0.20) |
|||||||||||||||||||||||||||||||||||||||
Net income (loss) per share, diluted |
$ |
0.04 |
$ |
(0.01) |
$ |
(0.02) |
$ |
0.05 |
$ |
(0.07) |
|||||||||||||||||||||||||||||||||||||||
Net income (loss) per ADS, diluted |
$ |
0.11 |
$ |
(0.04) |
$ |
(0.06) |
$ |
0.14 |
$ |
(0.20) |
|||||||||||||||||||||||||||||||||||||||
Shares used in computation, basic |
1,180,272,256 |
1,141,783,844 |
1,130,402,052 |
850,670,583 |
1,151,659,545 |
||||||||||||||||||||||||||||||||||||||||||||
ADS used in computation, basic |
393,424,085 |
380,594,615 |
376,800,684 |
283,556,861 |
383,886,515 |
||||||||||||||||||||||||||||||||||||||||||||
Shares used in computation, diluted |
1,214,824,327 |
1,141,783,844 |
1,130,402,052 |
901,340,381 |
1,151,659,545 |
||||||||||||||||||||||||||||||||||||||||||||
ADS used in computation, diluted |
404,941,442 |
380,594,615 |
376,800,684 |
300,446,794 |
383,886,515 |
||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP results of operations measures to the comparable GAAP financial measures |
|||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net income (loss) |
|||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended |
For the Twelve Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in US dollars, in thousands) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
||||||||||||||||||||||||||||||||||||||||||||
2011 |
2012 |
2012 |
2011 |
2012 |
|||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
$ |
44,175 |
$ |
(15,400) |
$ |
(21,098) |
$ |
41,004 |
$ |
(75,053) |
|||||||||||||||||||||||||||||||||||||||
Add back: Shared-based compensation expenses |
1,284 |
2,585 |
4,005 |
5,523 |
10,897 |
||||||||||||||||||||||||||||||||||||||||||||
Add back: Amortization of intangible assets |
388 |
673 |
413 |
797 |
2,255 |
||||||||||||||||||||||||||||||||||||||||||||
Add back: Impairment of intangible assets |
2,351 |
— |
— |
2,351 |
— |
||||||||||||||||||||||||||||||||||||||||||||
Adjusted net income (loss) |
$ |
48,198 |
$ |
(12,142) |
$ |
(16,680) |
$ |
49,675 |
$ |
(61,901) |
|||||||||||||||||||||||||||||||||||||||
SOURCE