Market Overview

YOU On Demand Reports Q2 2016 Results


- Q2 2016 revenues increased 16.6% vs Q1 2016

- Third consecutive quarter of gross profit

- Investor Update Call Scheduled Today at 8:00 a.m. ET

NEW YORK, Aug. 15, 2016 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company" or "YOD"), "), a premium content Video On Demand service provider in China evolving into a global, mobile-driven, consumer data management platform for both enterprises and consumers, announced today its Q2 2016 operating results for the period ended June 30, 2016 (a full copy of the Company's quarterly report on Form 10-Q is also being posted at  

Conference Call: CEO Mingcheng Tao and CFO Mei Chen will host a conference call at 8:00 a.m. ET today.

To join the webcast, please visit the 'Webcasts and Events' section of the YOD corporate website, Otherwise, the toll-free dial-in is: 877/407-3107; international callers should dial: 201/493-6796.

YOD Q2 2016 Operating Results

Revenue for Q2 2016, which was mostly comprised of pre- Sun Seven Stars, legacy model revenue, was approximately $1.480 million as compared to $1.269 million in Q1 2016, an increase of 16.6% quarter over quarter. The change was attributable to increased revenue from OTT and Mobile platforms.

Cost of revenue was approximately $800,000 for Q2 2016, as compared to $829,000 for the Q2 2015.  The decrease of approximately $29,000, or 3%, was primarily due to delays in expected revenue from specific content titles, which impacted our content license cost amortization pattern. Cost of revenues is primarily comprised of content licensing fees. Our content licensing agreements with production companies incorporate minimum guarantee payment levels. As of June 30, 2016 and 2015, revenues did not exceed the level of minimum guarantees to cause additional costs to be incurred.

Gross profit for Q2 2016 was approximately $680,000 as compared to gross profit of $651,000 during the same period in 2015. The increase in gross profit was primarily due to the decrease of cost recognized per expected revenue, which is expected to increase -from specific IP contents.

SG&A expenses for Q2 2016, increased approximately $150,000, to $1.809 million, as compared to $1.659 million in Q2 2015.

Salaries and personnel costs are the primary components of SG&A expenses, accounting for 56% and 50% of our SG&A expenses for the Q2 2016 and 2015, respectively.  For the second quarter of 2016, salaries and personnel costs totaled $1.015 million, an increase of $178,000, or 21%, as compared to $837,000 for the same period of 2015. The increase was primarily attributed to the business transformation and re-alignment strategy to expand the Company's business, which will be our primary focus for the 2016 fiscal year.

The other major components of our SG&A expenses include marketing and promotion expenses, outsourced technology costs, rent and severance.  For Q2 2016, these costs totaled $794,000, a net decrease of $28,000, or 3%, as compared to $822,000 for the same period in 2015. The decrease was primarily attributed to decrease in technology outsourcing costs, stock-based compensation expenses, and other staff-related costs, which was to some extent offset by minor increases in regulatory and entertainment expenses.

Net loss was $1.588 million for Q2 2016 compared to $1.317 million in the comparable 2015 period. Basic and diluted loss per share for Q2 2016 was $0.05 as compared to a $0.06 cents loss per share in the same period in 2015. 

As of June 30, 2016 the Company had cash of approximately $2.4 million and total current assets of approximately $6.9 million.  The cash standing as of June 30, 2016 does not include the two recently announced stock purchase agreements with: 1. Seven Stars Works Co., Ltd. which closed post Q2, or July 20, and netted proceeds of $4 million to YOU On Demand and; 2. Harvest Alternative Investment Opportunities SPC that closed post Q2, or August 11, and also netted proceeds of $4 million to YOU On Demand. 

CEO Mingcheng Tao stated, "YOU On Demand is in the midst of both a very intriguing and burgeoning period in this Company's long and arduous journey towards success and profitability.  In the next coming days, weeks and months, YOU On Demand will be announcing several strategic partnerships, asset injections, acquisitions and corporate restructurings.  All of these maneuvers will be driven by the vision that Mr. Bruno Wu laid out on prior earnings calls and public announcements.  In the meantime, YOU On Demand's original and legacy business, on its own, is starting to take form and show some positive revenue results.   As evidenced from our Q2 revenues, which are still for the most part legacy, pre-Sun Seven Stars revenues, it is clear YOU On Demand is still in the process of evolving towards its future as a B2B2C ecosystem.  However, speaking to the legacy VOD business solely, we are forecasting both quarter-over-quarter and year-over-year revenue growth in both Q3 and Q4, as we complete the second half of 2016."

About YOU On Demand Holdings, Inc. (

YOU On Demand (NASDAQ: YOD) is leveraging and optimizing its current operations as a premium content Video On Demand service provider in China to evolve into a global, B2B2C, mobile-driven, consumer management platform for both enterprises and consumers.  By aiming to establish the world's premier multimedia, social networking and e-commerce-enabled network with the largest global effective connected user base, YOU On Demand, through this expanded, cloud-based, ecosystem of connected screens combined with strong partnerships with leading global providers, will be capable of delivering a vast array of YOD–branded products and services to enterprise customers and end-use consumers - anytime and anywhere, across multiple platforms and devices. 

YOU On Demand has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal and Twentieth Century Fox Television Distribution, Miramax, as well as a broad selection of the best content from Chinese filmmakers.  In addition, the Company has governmental partnerships and licenses as well as numerous JV partnerships and strategic cooperation agreements with an array of distribution and content partners in the global new media space. YOU On Demand is headquartered in both New York, NY and Beijing, China.

Safe Harbor Statement

This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Jason Finkelstein                                 
YOU On Demand                                 

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YOU On Demand Holdings, Inc. and Its Subsidiaries and Variable Interest Entity



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