NQ Mobile Shares Surge After Q4 Results

Shares of

jumped over 8 percent in after-hours trading after the company reported financial results for the fourth quarter. Net loss attributable to NQ Mobile widened to $21.2 million in the fourth quarter, versus a year-ago net loss of $4.3 million. Non-GAAP net income attributable to NQ Mobile came in at $3.2 million, or $0.03 per ADS in the latest quarter. Its quarterly net revenue climbed 32.2 percent to $89.7 million from $67.9 million. However, analysts were expecting earnings of $0.02 per share on revenue of $83.00 million. Mobile value added service revenue slipped 9.9 percent y/y to $24.4 million from $27.1 million, while advertising revenue jumped 22.2 percent to $20.4 million from $16.7 million. Enterprise mobility revenue climbed 87.2 percent to $44.0 million in the latest quarter, versus $23.5 million in the year-ago quarter. As of December 31, 2014, average monthly active user accounts totaled 160.8 million. Gross profit for the fourth quarter slipped 19.9 percent to $26.5 million, versus $33.1 million, in the year-ago period. Gross margin came in at 29.6 percent in the quarter, while non-GAAP operating margin was 2.4 percent in the fourth quarter. In the fourth quarter, selling and marketing expenses slipped 14.8 percent y/y to $6.6 million from $7.8 million, while general and administrative expenses rose 31.1 percent to $31.4 million versus $24.0 million. Dr. Vincent Wenyong Shi, Chairman, Chief Operating Officer and Acting Chief Financial Officer of NQ Mobile said, "With the challenging year of 2014 now behind us, our transition is in full swing as we firmly further execute our various strategic initiatives. In addition to our top-line growth, we were also encouraged to see sequential improvement for our margins that indicates stabilization of profitability. We believe we are well-positioned to capture the growth opportunities in the mobile internet landscape." NQ Mobile expects Q1 sales of $85 million to $86 million and FY15 sales of $450 million to $455 million. NQ Mobile shares gained 8.61 percent to $4.29 in the after-hours trading session.