Renren Announces Unaudited First Quarter 2012 Financial Results

Renren

announced Monday its unaudited financial results for the first quarter ended March 31, 2012. First Quarter 2012 Highlights Total net revenues were US$32.1 million, a 56.1% increase from the corresponding period in 2011. Online advertising revenues were US$9.3 million, a 14.8% increase from the corresponding period in 2011. Gaming revenues were US$17.5 million, a 90.7% increase from the corresponding period in 2011. Gross profit was US$19.6 million, an 18.9% increase from the corresponding period in 2011. Operating loss was US$20.6 million, compared to an operating loss of US$4.7 million in the corresponding period in 2011. Net loss attributable to Renren was US$13.6 million, compared to a net loss of US$2.6 million in the corresponding period in 2011. Adjusted net loss (1) (non-GAAP) was US$11.3 million, compared to an adjusted net loss of US$1.1 million in the corresponding period in 2011. "We are pleased that our total net revenues this quarter came in above our guidance, with 56% year-on-year growth. Our brand advertising business experienced a challenging quarter due to seasonality and Chinese economy slow-down, resulting in a more cautious approach by new advertisers on our social networking platform. However, our gaming revenue, driven by the popularity of our recently launched games and mobile gaming efforts, outperformed our expectation, offsetting the weakness in advertising. This highlights the benefit of having multiple revenue models on our social networking platform, particularly during the transition to a mobile-centric era,'' commented Joseph Chen, Chairman and Chief Executive Officer.