Nov. 20, 2014, 7:07 PM
- Renren (NYSE:RENN) expects Q4 revenue of $15M-$17M, down 44.6%-51.1% Y/Y and well below a $21.3M consensus.
- Q3 online ad revenue -40.3% Y/Y to $8.8M; value-added services -19.6% to $4.7M; games -60.5% to $8.1M.
- Sales/marketing spend -22.5% to $12M; R&D -36.3% to $12.7M; G&A +3.5% to $13.8M.
- Renren ended Q3 with $740M in cash and term deposits, and no debt. Due to the company's recent performance, its market cap is currently $743M.
- Q3 results, PR
Nov. 20, 2014, 6:03 PM
Nov. 19, 2014, 5:35 PM
Aug. 26, 2014, 3:54 PM
- With investors having already digested a lot of bad news over the last year, Renren's (RENN +2.4%) Q2 revenue beat is overshadowing its light Q3 guidance: Revenue of $19M-$21M vs. a $22.9M consensus.
- Gaming revenue fell 56.6% Y/Y in Q2 to $9.9M, ad revenue 23.9% to $11.7M, and Internet value-added service revenue 35% to $3.4M. Monthly unique logins fell to 44M in June from 51M in March and 54M a year ago.
- Cost-cutting has been aggressive: Sales/marketing spend -37.3% Y/Y to $11.6M, and R&D -33.9% to $13.4M. G&A +7.6% to $14M.
- Operating loss was $30.4M. An $86M gain on the sale of short-term investments allowed Renren to report a profit. A new $100M buyback has been authorized, following the expiration of a program that was used to repurchase $69.4M worth of shares.
- Q2 results, PR
Aug. 25, 2014, 7:12 PM
Aug. 24, 2014, 5:35 PM
May. 21, 2014, 7:21 PM
May. 20, 2014, 5:35 PM
Mar. 19, 2014, 12:13 PM
- Renren (RENN -11.3%) expects Q1 revenue of $23M-$25M, soundly below a $30.4M consensus and good for a 40%-45% Y/Y drop.
- Online game revenue fell 39.6% in Q4 to $15.6M after dropping 17% in Q3. Ad revenue, pressured by share losses to social media rivals such as Tencent and Sina, fell 17.9% to $10.2M after falling 11% in Q3. Monthly unique logins fell to 45M in December from 50M in September and 56M a year earlier.
- A 24.9% Y/Y drop in R&D spend to $17.8M helped EPS beat estimates. Sales/marketing spend rose 38.8% to $19.6M, and G&A spend 35.3% to $14.4M.
- 4.9M shares were repurchased during the quarter.
- Renren also fell hard (I, II) following its Q2 and Q3 reports.
- Q4 results, PR
Mar. 19, 2014, 12:45 AM
Mar. 18, 2014, 12:10 AM
Mar. 17, 2014, 5:35 PM
Feb. 28, 2014, 2:16 PM
- Over the last 48 hours, Baidu, Dangdang, Youku, and 58.com have all posted Q4 beats and provided strong Q1 guidance. The numbers are giving a lift to a slew of Chinese Internet stocks.
- Notable gainers: SOHU +6.5%. PWRD +13.2%. VIPS +4.3%. YY +2.2%. RENN +3.8%. GOMO +5.5%.
- In Sohu's case, the rumor mill might also be helping out. A source tells Marbridge Consulting Sohu CEO Charles Zhang and Tencent (TCEHY +1.2%) CEO Pony Ma have talked about merging their companies' online video units. Both Sohu and Tencent trail market leaders Youku and Baidu in China's burgeoning online video market.
- Dangdang (DANG +8.6%) is adding to yesterday's big post-earnings gains after Oppenheimer hiked its PT to $15. The firm likes Dangdang's improved efficiency and partnerships with e-commerce rivals (inc. Alibaba's Tmall), and the fact mobile accounted for 13% of Q4 orders.
Nov. 29, 2013, 11:18 AM
- Jefferies' Cynthia Meng has cut Renren (RENN -10.4%) to Underperform after the company provided dispiriting Q4 guidance to go with mixed Q3 results.
- Meng doesn't see Renren's gaming ops (saw a 16.9% rev. drop in Q3, and will likely witness a bigger drop in Q4) rebounding in the near-term, given intense competition from Tencent and other firms with strong mobile game distribution. Renren has said it plans to focus on a smaller number of "high-quality" games" going forward.
- Meng also questions Renren's ability to transition from being a social networking platform to a social messaging platform (the company just launched a mobile messaging app), given the popularity of incumbents such as Tencent's WeChat, and notes iResearch estimates Renren has respectively seen 55% and 38% Y/Y drops in monthly time spent and daily active users.
- On the CC (transcript), Renren stated its ad sales (-11% Y/Y in Q3) were pressured by both the mobile transition and social networking competition, and that it plans to launch "a series of marketing campaigns" to promote its messaging app. The company also noted only ~10% of its Q4 ad revenue is expected to come from mobile.
Nov. 27, 2013, 6:27 PM
- Renren (RENN) is guiding for Q4 revenue of $29M-$31M. That's far below a consensus of $48.9M, and also down sharply from Q3 and year-ago levels of $47.6M and $48.8M, respectively.
- Renren's Q3 numbers make some likely culprits for the guidance apparent. After rising 1% in Q2, online game revenue fell 17% Y/Y to $20.1M due to the maturing of existing titles (and the failure of new titles to make up for it). Online ad revenue, up 2% in Q2, fell 11% Y/Y to $14.9M as Renren continues to bleed Chinese social networking share to Tencent and Sina.
- Two bright spots: Other Internet value-added service revenue rose 32% to $6.1M thanks to Renren's Woxiu virtual talent show service, and the Nuomi daily deals unit (now 59%-owned by Baidu) saw revenue rise 36% to $6.5M.
- In spite of Renren's revenue pressures, opex rose 27% Y/Y. Sales/marketing spend +34% to $28.5M, R&D +7% to $22.4M, G&A +57% to $14.6M. Given the Q4 guidance, job cuts might soon be on the way.
- Confirming a Marbridge Consulting report, Renren says it's restructuring its gaming ops to focus on "high-quality games."
- CC at 8PM ET. Q3 results, PR.
Nov. 27, 2013, 6:06 PM
RENN vs. ETF Alternatives
Renren Inc is engaged in the operation of social networking internet platform, as well as provision of online advertising services and internet value-added services, including online gaming operations, online talent show and other IVAS, among others.
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