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(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.

Renren Inc. published this content on 16 August 2016 and is solely responsible for the information contained herein.
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