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To: zax who wrote (195)2/2/2012 2:09:01 PM
From: ChinuSFO
   of 309
 
I am not so sure about Renren now that the Chinese economy is in a period of soft landing.

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From: zax2/9/2012 11:06:40 PM
   of 309
 
China's Facebook basks in the glow
February 7, 2012: 1:54 PM ET

tech.fortune.cnn.com

In the week prior to Facebook's IPO announcement, Renren's stock leapt by more than 60%, which comes as welcome relief to Joseph Chen, the social networking site's CEO. Here's how he plans to keep things rosy. By Bill Powell, editor-at-large


Joseph Chen, founder, CEO, and chairman of Renren


FORTUNE -- Joseph Chen chuckles a bit when asked what the hype surrounding Facebook's announced plans for an initial public offering means for the company he founded and runs, Renren Inc., the so called "Facebook of China." He chuckles because the question is more complicated than it seems.

In the week prior to Facebook's confirmation that it was, in fact, going public later this year, Renren's ( RENN) stock (its ADRs trade on the NYSE) leapt by more than 60%. That had to come as a relief to Chen, because ever since it went public last May -- when the stock hit a peak of $24 just after it's IPO -- it s been on an escalator ride straight down, hitting a 52-week low of just $3.20 last month.

The stock price plunge was the result of a perfect storm. There was, let's face it, a bit of hype surrounding its own IPO. When you put the words "Facebook" and "China" together in the same sentence, separated by the word "of," at least a percentage of the investing universe is going to buy first and ask questions later. After all, there are more Internet users in China than anywhere else, and social networking sites are still in their infancy. According to comScore Media Metrix, 38.4% of Internet users in China engage in social networking, compared to 69.8% globally and 81.4% in the United States. Clearly, there is huge room for growth here.

But small cap China stocks were savaged in U.S. markets last year, mainly because of growing concerns about the credibility of their public financial disclosures. Just days before Renren's IPO, Citron Research, whose work is widely read by short sellers, issued a report questioning the numbers of a company whose CFO was also serving on Renren's board as head of its audit committee. The executive, Derek Palaschuk, resigned from Renren's board, a move that several venture capitalist Renren investors welcomed.

Nonetheless, the intensifying focus among short sellers on Chinese small caps has basically led to a rout in the market for them, whether their numbers are legitimately questionable or not. They've been beaten down indiscriminately, Renren among them.

Still, there was more to the beat-down than just widespread nervousness over Chinese stocks. A misunderstanding of the Chinese Internet space in general, and social networking in particular, certainly played a part. Chen, 42, used the Facebook moment last week to try to explain his company and his business. The first thing outsiders need to understand, he and CFO Hui Huang stress, is that even though Facebook is famously blocked in China by the government, that doesn't mean the "Facebook of China" lacks competition.

It's quite the opposite, in fact. China's market for social networking sites is much more fragmented than it is in the United States, with any number of companies not normally identified as "Facebook clones" trying to ease into the space.

Sina.com ( SINA), which runs China's pre-eminent micro-blogging site -- typically described as the "Twitter of China" -- is there. So too is Tencent, best known for its instant messaging service, QQ. It already operates a site called Qzone, which, it claims, has 481 million "active users" -- though analysts question what Tencent's definition of "active" is. Last fall, the company invested an undisclosed sum in another social networking site called Kaixin001, with which it intends to create a so-called "real name" site (which means, as with Renren, users are required to register using their real names, not some fake Internet handle). Kaixin's users, like Renren's, tend to be young, urban, and well educated. So when Chen says China's social networking market is "more competitive than the U.S.," he's right.

In China's tech world, everyone is pretty much in each other's kitchen. In addition to dominating the short messaging market, Tencent is the biggest online gaming company. But online games account for a large part of Renren's revenue stream. And last year, Chen spent $80 million buying a Chinese video and photo sharing site, 56.com, which moved Renren closer to the space dominated by Youku ( YOKU) and Tudou ( TUDO), two companies that are often dubbed as the "YouTube of China." The company also launched a group-buying site last year called Nuomi. The three principal platforms -- social network, gaming, and group buying -- drive traffic to each other, and the hope is that the added services (like 56.com) will make the social networking site stickier, and thus more attractive to advertisers.

Chen says that Renren's phase of tacking on new assets is -- for now, anyway -- finished. The focus now is to make the platforms the company controls profitable. In its third quarter 2011 earnings report (the company's most recent report), Renren reported a loss of $1.2 million, even though revenue jumped by 57% to $34.2 million.

The social networking site clearly has some traction. The site counted 38 million active monthly users at the end of September last year, up from 24 million in the comparable quarter in 2010. Advertising revenue, as a result, comprised 57% of overall revenue in the third quarter last year, up from 42% in 2010.

Chen's aware that in the current, guilty-until-proven-innocent environment for China stocks, the attitude among nervous U.S. investors for the foreseeable future will be, simply, "show me." Generate good numbers -- and make sure they are credible. The euphoria that prevailed over everything China prior to last year was ridiculous. So, arguably, is the suspicion that now trails virtually every China play.

Last September, Chen announced a $150 million stock buyback program at Renren, professing his faith in "our position as the real name market leader" among social networking sites in China. As competitive as the space is, the growth potential remains undeniable. If Chen and Renren can deliver, it's possible that its stock troubles will prove to have been excessive -- something that Facebook's plans has apparently reminded some investors.

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From: Savant2/14/2012 7:15:10 PM
   of 309
 
Renren Inc. Provides Update on Preliminary Unaudited Fourth Quarter 2011 Results
and Fourth Quarter 2011 Earnings Date Announcement

BEIJING, Feb. 14, 2012 /PRNewswire via COMTEX/ -- Renren Inc. (RENN) ("Renren" or
the "Company"), China's leading real-name social networking internet platform,
today announced preliminary selected unaudited financial results for the fourth
fiscal quarter ended December 31, 2011. These preliminary results are subject to
change as the Company is in the process of finalizing the financial statements
for the fourth quarter. The Company expects to issue the earnings release for the
fourth fiscal quarter and full year ended December 31, 2011 on March 8, 2012,
after market hours.

Revenues in the fourth quarter of 2011 are estimated to be within the previously
forecasted range of US$31 million to US$33 million.

Operating losses on a non-GAAP basis in the fourth quarter, which excludes
share-based compensation expenses, impairment and amortization of intangible
assets, are estimated to be between US$15 million to US$17 million. The losses
were primarily due to increased investments across the Company's business lines
as well as the consolidation of 56.com, the UGC video-sharing website that the
Company acquired in October 2011.

The Company expects to incur a one-off US$2 million to US$3 million non-cash
expense due to impairment charges of certain intangible assets, mainly including
Xiaonei.com, the internet domain name acquired by the Company in 2006 which is no
longer in use.

Meanwhile, the Company expects to record approximately US$51 million of one-off
realized capital gain from its sales of e-Long securities in the fourth quarter.

"As previously discussed in our third quarter earnings release, given the
competitive environment and growth opportunities of our sectors, we have decided
to step up our investment in various areas of our businesses, particularly in
mobile technology and products. In addition, we are also upgrading the bandwidth
and servers for 56.com, the video assets we recently acquired, in order to
improve our user experience. As a result, we have budgeted an incremental amount
of US$60 million to US$70 million for investments this year compared to previous
projections made a year ago," commented Joseph Chen, Chief Executive Officer of
Renren.

"Based on our current visibility, we expect our full year revenue in 2012 to grow
50-55%, similar to the pace we achieved in 2011," added Mr. Chen. "While we will
not be profitable in 2012, our business is fundamentally sound and staged for
growth in China's social networking sector. We are confident that we are
following the right course in creating long-term value for our shareholders and
building a truly sustainable business."

Conference Call Information

Renren's management will host an earnings conference call at 8:00 p.m. U.S.
Eastern Time on Thursday, March 8, 2012 (beijing/hong kong time:9)(beijing/hong
kong time:Friday)(beijing/hong kong time:March 9)(beijing/hong kong time:2012).

Interested parties may participate in the conference call by dialing the numbers
below and entering passcode 10-15 minutes prior to the initiation of the call.

Dial-in Information:
US:+1 718-354-1231
Hong Kong:+852-2475-0994
China:+86 800-819-0121
International: + 65-6723-9381
Passcode:Renren


A replay of the call will be available for one week and dial-in information is as
follows:
International: + 61 2-8235-5000
Passcode:52730835


This call will be webcast live and the replay will be available on Renren's
corporate web site at ir.renren-inc.com for twelve months.

About Renren Inc.

Renren Inc. (RENN) operates the leading real name social networking internet
platform in China. It enables users to connect and communicate with each other,
share information and user generated content, play online games, listen to music,
shop for deals and enjoy a wide range of other features and services. Renren's
platform includes the main social networking website Renren.com, the online games
center game.Renren.com, the social commerce website Nuomi.com, and the
video-sharing website 56.com. Renren had approximately 137 million activated
users as of September 30, 2011.

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 and financial outlook and quotations from Renren's management in this
announcement, contain forward-looking statements. 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. These risks,
uncertainties and other factors that may affect the Company's results of
operations are summarized in the Company filings or submission the Company made
and available on the website of the United States Securities and Exchange
Commission at sec.gov.
For more information, please contact:
Sam Lawn
Investor Relations Director
Renren Inc.
Tel: (+86 10) 8448 1818 ext 1300
Email: ir@renren-inc.com
Caroline Straathof
IR Inside
Tel: (The Netherlands) +31 6 5462 4301
Tel: (China): +86 136 9310 5055
Email: info@irinside.com

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From: zax2/22/2012 10:11:59 AM
   of 309
 
Renren Inc Earnings Conference Call and Webcast (Q4 2011)
Scheduled to start Thu, Mar 8, 2012, 8:00 pm Eastern

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From: zax2/28/2012 1:12:35 PM
   of 309
 
On a real tear today (+8.5% as I speak) on no news.

Any ideas or speculation as to the impetus?

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From: zax3/2/2012 10:50:31 AM
   of 309
 
+7% @ 5.87 Runrunrun :)

Renren Inc. Announces the First SNS Application in Microsoft Windows 8 Store

finance.yahoo.com

BEIJING, March 2, 2012 /PRNewswire-Asia/ -- Renren Inc. (NYSE: RENN - News) ("Renren" or the "Company"), China's leading real-name social networking internet platform, today announced the release of its customized high-definition client application ("Renren HD") for Microsoft's Windows 8 application store. Released at the Windows 8 Consumer Preview Conference held recently during the Mobile World Congress 2012 in Barcelona, Spain, Renren HD is the first social networking application selected by Microsoft.

Renren HD is designed to be fully-integrated with Windows 8, a generational change on Microsoft's flagship operating system. Through "share contract", a range of content from different applications can be shared at a single click, including web pages, pictures and videos. Customized for Windows 8, which focuses on integration with social networks and optimized for tablet usage, Renren HD has adopted features such as tiled Metro-style user interfaces and creative content delivery, resulting in a significantly enhanced user experience.

"We are very proud to be selected as the first SNS partner for Microsoft's new Windows store," said Joseph Chen, CEO of Renren. "Renren shares the vision of Windows 8 in its aspiration to revolutionize how content is delivered and shared between the next generation of digital devices. Renren HD was designed with the same philosophy."

About Renren Inc.

Renren Inc. (NYSE: RENN - News) operates the leading real name social networking internet platform in China. It enables users to connect and communicate with each other, share information and user generated content, play online games, listen to music, shop for deals and enjoy a wide range of other features and services. Renren's platform includes the main social networking website Renren.com, the online games center game.Renren.com, the social commerce website Nuomi.com, and the video-sharing website 56.com. Renren had approximately 137 million activated users as of September 30, 2011.

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 and financial outlook and quotations from Renren's management in this announcement, contain forward-looking statements. 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. These risks, uncertainties and other factors that may affect the Company's results of operations are summarized in the Company filings or submission the Company made and available on the website of the United States Securities and Exchange Commission at www.sec.com.

For more information, please contact:

Sam Lawn
Investor Relations Director
Renren Inc.
Tel: (+86 10) 8448 1818 ext 1300
Email: ir@renren-inc.com

Caroline Straathof
IR Inside
Tel: (The Netherlands) +31 6 5462 4301
Tel: (China): +86 136 9310 5055
Email: info@irinside.com

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From: zax3/4/2012 10:58:09 AM
   of 309
 
Renren 4Q11 Earnings Preview: Monthly User Growth In Focus, Nuomi Could Disappoint
March 4, 2012


Jiang Zhang

seekingalpha.com

Renren ( RENN) will report 4Q11 results on March 8th. The Street expects the company to earn $0.02 per share on $32 million in revenue, and guide $31 million for 1Q12. Heading into Q4, investors can expect continued momentum in topline growth and strong monthly unique log-in user growth as Renren strengthens its leadership in China's SNS space. However, Renren's group-buy unit, Nuomi, could once again be a drag to the company's profitability, as it invests heavily in sales and marketing to maintain its standing in China's competitive group-buy industry.

In Q3, Renren reported

  • Net revenue: $34.2 million, +57% y/y
  • Online advertising revenue: $19.6 million, +92% y/y
  • Gross margin: 80.4%, down 50bps from 2Q11
  • GAAP income: $1.2 million net loss, compared to net profit of $7.3 million in 2Q10
  • Non-GAAP income: $0.3 million, compared to $6.3 million a year ago
  • Activated users: 137 million, +37% y/y
  • Monthly unique log-in users: 38 million, +58% y/y
During the quarter we saw Renren continues to focus on improving user stickiness and expanding its product offering with Renren HTC Daren, the first Android-based smart phone that features Renren's applications. Priced at RMB 2,000, the handset could improve Renren's user stickiness and expand its mobile initiative. HTC Daren is also an ideal platform for Nuomi to advertise and promote local deals using the phone's LBS feature. Renren's introduction of HTC Daren came well before Facebook's introduction of its own mobile handset, codenamed "Buffy". I view this as a validation of Renren's strategy. For a closer look at HTC Daren, please see my December 29th article " Renren's HTC Daren: Setting The Bar For Mobile Social Networking".

Renren also introduced "Renren Shopping", a new vertical that focuses on fashion social networking and idea sharing. Please see " Renren Shopping: Expanding Monetization Verticals And Delivering Superior Advertising Platform". The addition of Renren Shopping greatly expands the platform's appeal to a wide range of users and enhances its monetization prospect.



The investment that Renren places on improving its user experience should bode well for monthly unique log-in user growth. I note that Renren's monthly unique log-in user has grown at a faster rate than Facebook in the U.S. over the past three quarters. This implies significantly more valuation upside for Renren than Facebook, in my view.



Lastly, Nuomi could continue to put pressure on the company's margins and profitability as Renren invests heavily to maintain leadership in China's competitive group-buy industry.

Disclosure:I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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From: zax3/8/2012 1:59:15 PM
   of 309
 
Renren Inc Earnings Conference Call and Webcast (Q4 2011)
Scheduled to start Thu, Mar 8, 2012, 8:00 pm Eastern

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From: zax3/8/2012 7:36:29 PM
   of 309
 
Renren Announces Unaudited Fourth Quarter and Fiscal Year 2011 Financial Results

finance.yahoo.com

BEIJING, March 8, 2012 /PRNewswire-Asia/ -- Renren Inc. (NYSE: RENN - News) ("Renren" or the "Company"), the leading real-name social networking internet platform in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2011.

Fourth Quarter 2011 Highlights

  • Total net revenues in the fourth quarter of 2011 were US$32.8million, a 57.0% increase from the corresponding period in 2010.
  • Online advertising revenues in the fourth quarter were US$15.0 million, a 66.3% increase from the corresponding period in 2010.
  • Gross profit in the fourth quarter of 2011was US$23.1 million, a 38.6% increase from the corresponding period in 2010.
  • Operating loss in the fourth quarter of 2011was US$19.7 million, compared to US$2.3 million operating income in the corresponding period in 2010.
  • Net income attributable to Renren in the fourth quarter was US$44.3 million, compared to a net loss of US$33.9 million in the corresponding period 2010.
  • Adjusted net income(1) (non-GAAP) was US$48.2 million, compared to US$5.2 million in the corresponding period in 2010.
      Fiscal Year 2011 Highlights

    • Total net revenues in 2011 were US$118.0 million, a 54.1% increase from 2010.
    • Online advertising revenues in 2011 were US$59.6 million, an 86.3% increase from 2010.
    • Gross profit in 2011was US$91.7 million, a 53.1% increase from 2010.
    • Operating loss in 2011 was US$30.2 million, compared to US$7.7 million operating income in the corresponding period in 2010.
    • Net income attributable to Renren in 2011 was US$41.3 million, compared to a net loss of US$64.2 million for 2010.
    • Adjusted net income(1) (non-GAAP) in 2011 was US$49.7 million, compared to US$17.4 million in 2010.
        "2011 was an exciting year for Renren with progress in multiple directions, most notably our solid user metrics, strong growth of core advertising revenues and successful launches of new products such as our mobile applications and light blogging service,'' commented Joseph Chen, Chairman and Chief Executive Officer. "Renren's initial public offering in May 2011 was an important event that further raised our brand recognition and financial resources to new levels. The IPO proceeds have subsequently allowed us to execute our strategic acquisition of online video website 56.com, invest in location-based technology through Mapbar.com as well as maintain our social commerce leadership through Nuomi.

        "Our monthly mobile penetration rate of 38% remains encouraging as we head into the mobile-centric era," Mr. Chen continued. "With over 60% of our mobile users now accessing their Renren accounts through smartphones, we continue to witness the convergence of social networks, mobile utilization and local merchants as a key theme of our mobile growth. Equipped with Renren's user base, location-based platform and Nuomi's merchant network, we will further integrate our products and services to capture monetization opportunities.

        "Looking forward, 2012 will be a year of investments for Renren as we further deploy effectively the funds we raised from our IPO. Mobile will continue to represent a large portion of our investment focus along with solidifying Nuomi's leadership and increasing traffic on 56.com by improving user experience. Our long-term strategy will remain to focus on product innovation and further evolution of Renren's social networking services into a technology-driven communication platform," Mr. Chen concluded.

        "We are pleased that revenues in the fourth quarter came in at the high end range of our guidance. We closed 2011 with 54% revenue growth, based on a healthy contribution mix from our diversified revenue streams. While 2012 was off to a seasonally slow start due to the early Chinese New Year in the first quarter, we continue to expect our full year revenue in 2012 to grow 50-55% year-over-year, based on our current visibility," Hui Huang, Renren's Chief Financial Officer, added. "As we previously mentioned in our pre-earnings announcement, management is prepared to increase the level of investments across our business lines. With the incremental amount of US$60 million to US$70 million for investments this year compared to previous projections made a year ago, 2012 will be a year of dedicated but sensible investment in enhancing technology, driving innovation and optimizing efficiency to increase user engagement and long-term sustainable growth."


        (1) Adjusted net income (loss) is a non-GAAP measure, which is defined as income (loss) from continuing operations excluding share-based compensation expenses, change in fair value of our then outstanding series D warrants (which had been fully exercised by the end of 2010), amortization of intangible assets and impairment of intangible assets.


        Fourth Quarter 2011 Results

        Net revenues for the fourth quarter of 2011 were US$32.8 million, representing a 57.0% increase from the corresponding period in 2010.

        Online advertising revenues were US$15.0 million, representing an increase of 66.3% from the corresponding period in 2010. The increase stems from Renren's continued steady growth of its user base and engagement level coupled with the increasing adoption of our SNS platform as an advertising solution by advertisers. The number of Renren's activated users increased from approximately 110 million as of December 31, 2010 to approximately 147 million as of December 31, 2011. Monthly unique log-in users increased from approximately 26 million in December 2010 to approximately 38 million in December 2011.

        Internet Value-Added Services (IVAS) revenues were US$17.8 million, representing a 49.9% increase from the corresponding period in 2010. Within IVAS revenues, online game revenues were US$12.0 million for the fourth quarter of 2011, a 39.0% increase from the corresponding period in 2010. Gaming revenue increase in this quarter was primarily due to the increasing popularity of several new games Renren launched. Other IVAS revenues were US$5.8 million for the fourth quarter of 2011, a 78.7% increase from the corresponding period in 2010. Within other IVAS revenues, Renren's social commerce service, Nuomi, recorded US$2.7 million of net revenues for the fourth quarter of 2011.

        Cost of revenues was US$9.7 million, a 129.5% increase from the corresponding period in 2010. Cost of revenues for the fourth quarter of 2011 included US$430 thousand for Nuomi. The increase in cost of revenues for the fourth quarter was largely due to the increased bandwidth investment and the consolidation of 56.com, an on-line video sharing company we acquired in October 2011.

        Gross profit was US$23.1 million, a 38.6% increase from US$16.7 million in the corresponding period in 2010. Gross margin was 70.5%, compared to 79.8% in the corresponding period in 2010.

        Operating expenses were US$42.9 million, a 198.7% increase from the corresponding period in 2010. Operating expenses in the fourth quarter of 2011 included US$11.9 million expenses incurred on Nuomi. Excluding Nuomi, the operating expenses in the fourth quarter of 2011 would be US$31.0 million, a 125.8% increase from the corresponding period in 2010.

        Selling and marketing expenses were US$20.2 million, a 322.6% increase from the corresponding period in 2010, primarily due to the increased investments in Nuomi's sales force and advertising campaigns, along with increased personnel related expenses and sales commissions associated with increased advertising sales.

        Research and development expenses were US$13.9 million, a 95.5% increase from the corresponding period in 2010, primarily due to headcount and personnel related expense increases.

        General and administrative expenses were US$6.5 million, a 271.4% increase from the corresponding period in 2010, primarily due to the growth of the company size and business operations.

        Share-based compensation expenses, which are all included in the operating expenses, were US$1.3 million, compared to US$0.8million in the corresponding period in 2010.

        Operating loss was US$19.7 million, compared to US$2.3 million operating income from the corresponding period in 2010. Operating losses in the fourth quarter included a one-time impairment of intangible assets in the amount of US$2.3 million, primarily related to Xiaonei.com, a domain name we acquired in 2006 but no longer in use.

        Net income attributable to Renren Inc. was US$44.3 million, which included a one-time gain of US$50.9 million from the sale of eLong securities, compared to a net loss of US$33.9 million in the corresponding period of 2010. Excluding results of operations attributable to Nuomi, net income in the fourth quarter of 2011 would be US$53.4 million compared to a net loss of US$33.9 million in the corresponding period of 2010.

        Adjusted net income (non-GAAP) was US$48.2 million in the fourth quarter of 2011, compared to US$5.2 million in the fourth quarter of 2010. Excluding results of operations attributable to Nuomi, adjusted net income in the fourth quarter of 2011 would be US$57.3 million, a 1,018.7% increase from the fourth quarter of 2010. Adjusted net income (loss) is defined as income (loss) from continuing operations excluding share-based compensation expenses, change in fair value of our then outstanding series D warrants (which had been fully exercised by the end of 2010), and amortization of intangible assets and impairment of intangible assets.

        Fiscal Year 2011 Results

        Total net revenues in 2011 were US$118.0 million, a 54.1% increase from 2010.

        Online advertising revenues in 2011 were US$59.6 million, representing an increase of 86.3% from 2010. The significant increase was an overall result of the increasing adoption of Renren's social network platform as an advertising solution for advertisers, driven by our user base growth.

        Internet Value-Added Services (IVAS) revenues in 2011 were US$58.4 million, representing a 31.0% increase from 2010. Within IVAS revenues, online game revenues were US$42.3 million in 2011, a 22.9% increase from 2010. Other IVAS revenues were US$16.1 million for 2011, a 58.8% increase from 2010. Within other IVAS revenues, Renren's social commerce service, Nuomi, which was launched on June 23, 2010, recorded US$6.5 million of net revenues for 2011.

        Cost of revenues in 2011 was US$26.2 million, a 57.8% increase from 2010. Cost of revenues in 2011 included US$622 thousand for Nuomi. The increase was majority due to bandwidth investment for Renren.com and also consolidation and bandwidth investment for 56.com.

        Gross profit in 2011 was US$91.7 million, a 53.1% increase from US$59.9 million in 2010. Gross margin was 77.8%, compared to 78.3% in 2010.

        Operating expenses in 2011 were US$121.9 million, a 133.4% increase from 2010. Operating expenses in 2011 included US$30.2 million expenses incurred on Nuomi. Excluding Nuomi, operating expenses in 2011 would be US$91.7 million, a 79.2% increase from 2010.

        Selling and marketing expenses in 2011 were US$62.1 million, a 206.0% increase from 2010, primarily due to increased investments in Nuomi's sales force and advertising campaigns, which attributed to approximately US$23.7 million in selling and marketing expenses, along with increased personnel related expenses and sales commissions associated with increased advertising sales on Renren.com.

        Research and development expenses in 2011 were US$40.3 million, a 70.1% increase from 2010, primarily due to headcount and personnel related expense increases. Our mobile business unit was a particular driver of our R&D investment increase for 2011.

        General and administrative expenses in 2011 were US$17.2 million, a 129.2% increase from 2010, primarily due to the growth of the company size, expanded business units, and expenses associated with becoming a publicly listed company.

        Share-based compensation expenses in 2011, which are all included in the operating expenses, were US$5.5 million, compared to US$2.8 million in 2010, primarily due to increased headcount and personnel related expense increases.

        Operating loss in 2011 was US$30.2 million, compared to US$7.7 million operating income in 2010.

        Net income attributable to Renren Inc. in 2011 was US$41.3 million, which included a one-time gain of US$50.9 million from the sale of eLong securities in the fourth quarter, compared to a net loss of US$64.2 million in 2010. Excluding results of operations attributable to Nuomi, net income in 2011 would be US$65.6 million compared to a net loss of US$64.3 million in 2010.

        Adjusted net income (non-GAAP) in 2011 was US$49.7 million, compared to US$17.4 million in 2010. Excluding results of operations attributable to Nuomi, adjusted net income in 2011 would be US$74.0 million, a 329.0% increase from 2010. Adjusted net income (loss) is defined as income (loss) from continuing operations excluding share-based compensation expenses, change in fair value of our then outstanding series D warrants (which had been fully exercised by the end of 2010), and amortization of intangible assets and impairment of intangible assets.

        Share Repurchase Program

        On September 29, 2011, the Company announced a share repurchase program to repurchase up to US$150 million of its ADSs and shares. As of December 31, 2011, Renren had repurchased 6,089,228 ADS's at a total cost of US$25.6 million.

        Business Outlook

        The Company expects to generate revenues in an amount ranging from US$28 million to US$30 million in the first quarter of 2012, representing 36% to 46% year-over-year growth. For the full year 2012, the Company expects its revenues to be between US$177 million to US$183 million, representing 50-55% year-over-year growth. This forecast reflects Renren's current and preliminary view, which is subject to change.

        Conference Call Information

        Renren's management will host an earnings conference call at 8:00 p.m. U.S. Eastern Time on Thursday, March 8, 2012 (Beijing/Hong Kong Time: 9:00 a.m., Friday, March 9, 2012).

        Interested parties may participate in the conference call by dialing the numbers below and entering passcode 10-15 minutes prior to the initiation of the call.

        Dial-in Information:


        US:

        +1 718-354-1231

        Hong Kong:

        +852-2475-0994

        China:

        +86 800-819-0121

        International:

        + 65-6723-9381

        Passcode:

        Renren


        A replay of the call will be available for one week and dial-in information is as follows:


        International:

        + 61 2-8235-5000

        Passcode:

        52730835


        This call will be webcast live and the replay will be available on Renren's corporate web site at http://ir.renren-inc.com for twelve months.

        About Renren Inc.

        Renren Inc. (NYSE: RENN - News) operates the leading real name social networking internet platform in China. It enables users to connect and communicate with each other, share information and user generated content, play online games, listen to music, shop for deals and enjoy a wide range of other features and services. Renren's platform includes the main social networking website Renren.com, the online games center game.Renren.com, the social commerce website Nuomi.com, and the video-sharing website 56.com. Renren had approximately 147 million activated users as of December 31, 2011.

        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 first quarter and full year 2012 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 filings 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 income (loss) from continuing operations excluding share-based compensation expenses, change in fair value of warrants, amortization of intangible assets and impairment 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 measure to the comparable GAAP financial measure" at the end of this release.

        For more information, please contact:

        Sam Lawn
        Investor Relations Director
        Renren Inc.
        Tel: (86 10) 8448 1818 ext 1300
        Email: ir@renren-inc.com

        Caroline Straathof
        IR Inside
        Tel: (the Netherlands) +31 6 5462 4301
        Tel: (China): +86 136 9310 5055
        Email: info@irinside.com




        RENREN INC.

        CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

        (Amounts in US dollars, in thousands, except shares,per shares, ADS, and per ADS data)



























        For the Three Months Ended



        For the Twelve Months Ended



        December 31,

        September 30,

        December 31,



        December 31,

        December 31,



        2010

        2011

        2011



        2010

        2011



















        Net revenues























        Online advertising

        $

        9,003

        $

        19,635

        $

        14,974



        $

        32,003

        $

        59,613

        IVAS



        11,894



        14,579



        17,832





        44,532



        58,354

        Total net revenues



        20,897



        34,214



        32,806





        76,535



        117,967

























        Cost of revenues



        (4,222)



        (6,701)



        (9,688)





        (16,624)



        (26,233)

























        Gross profit



        16,675



        27,513



        23,118





        59,911



        91,734

























        Operating expenses:























        Selling and marketing



        (4,777)



        (18,935)



        (20,189)





        (20,281)



        (62,050)

        Research and development



        (7,094)



        (10,314)



        (13,867)





        (23,699)



        (40,310)

        General and administrative



        (1,739)



        (4,708)



        (6,458)





        (7,511)



        (17,215)

        Impairment of intangible assets



        (739)







        (2,351)





        (739)



        (2,351)

























        Total operating expenses



        (14,349)



        (33,957)



        (42,865)





        (52,230)



        (121,926)

























        Income (loss) from operations



        2,326



        (6,444)



        (19,747)





        7,681



        (30,192)

























        Other non-operating income







        216



        2,007









        2,367

        Change in fair value of warrants



        (37,722)













        (74,364)





        Foreign exchange gain



        272



        2,728



        3,012





        3,781



        7,753

        Interest income



        104



        2,899



        5,658





        335



        9,619

        Gain on sales of marketable securities











        50,884









        50,884

        Gain from equity method investments











        1,320









        1,320

        Impairment of cost method investment











        (79)









        (79)

        Gain on disposal of cost method investment



        40













        40





























        Income (loss) before provision of income tax, non-controlling interests and discontinued operations



        (34,980)



        (601)



        43,055





        (62,527)



        41,672

        Income tax (expense) benefit



        745



        (713)



        1,120





        1,332



        (668)

























        Income (loss) from continuing operations



        (34,235)



        (1,314)



        44,175





        (61,195)



        41,004

























        Discontinued operations:























        Loss from operation of discontinued operations, net of tax



        (966)













        (4,301)





        Gain on disposal of discontinued operations



        1,341













        1,341





























        Loss on discontinued operations, net of tax



        375













        (2,960)





























        Net income (loss)



        (33,860)



        (1,314)



        44,175





        (64,155)



        41,004

        Net loss attributable to noncontrolling interests







        129



        115





        -



        252

























        Net income (loss) attributable to Renren Inc.

        $

        (33,860)

        $

        (1,185)

        $

        44,290



        $

        (64,155)

        $

        41,256

























        Net income (loss) per share, basic

        $

        (0.15)

        $

        0.00

        $

        0.04



        $

        (0.31)

        $

        0.05

        Net income (loss) per ADS, basic

        $

        (0.46)

        $

        0.00

        $

        0.11



        $

        (0.94)

        $

        0.15

        Net income (loss) per share, diluted

        $

        (0.15)

        $

        0.00

        $

        0.04



        $

        (0.31)

        $

        0.05

        Net income (loss) per ADS, diluted

        $

        (0.46)

        $

        0.00

        $

        0.11



        $

        (0.94)

        $

        0.14

        Shares used in computation, basic



        220,729,250



        1,177,595,401



        1,180,272,256





        244,613,530



        850,670,583

        ADS used in computation, basic



        73,576,417



        392,531,800



        393,424,085





        81,537,843



        283,556,861

        Shares used in computation, diluted



        220,729,250



        1,177,595,401



        1,214,824,327





        244,613,530



        901,340,381

        ADS used in computation, diluted



        73,576,417



        392,531,800



        404,941,442





        81,537,843



        300,446,794


        Reconciliation of Non-GAAP results of operations measures to the comparable GAAP financial measure

        Adjusted net income (loss)

        (Amounts in US dollars, in thousands)



























        For the Three Months Ended



        For the Twelve Months Ended



        December 31,

        September 30,

        December 31,



        December 31,

        December 31,

        2010

        2011

        2011



        2010

        2011



















        Income (loss) from continuing operations

        $

        (34,235)

        $

        (1,314)

        $

        44,175



        $

        (61,195)

        $

        41,004

        Add back: Shared-based compensation expenses



        796



        1,524



        1,284





        2,798



        5,523

        Add back: Change in fair value of warrants



        37,722













        74,364





        Add back: Amortization of intangible assets



        176



        54



        388





        673



        797

        Add back: Impairment of intangible assets



        739







        2,351





        739



        2,351

























        Adjusted net income

        $

        5,198

        $

        264

        $

        48,198



        $

        17,379

        $

        49,675


        RENREN INC.

        CONSOLIDATED BALANCE SHEETS (UNAUDITED)

        (Amounts in US dollars, in thousands, except shares,per shares, ADS, and per ADS data)





















        December 31,

        December 31,



        2010

        2011











        ASSETS























        Current assets:













        Cash and cash equivalents





        $

        136,063

        $

        284,643

        Term deposit











        702,680

        Short-term investments







        62,318



        53,393

        Accounts receivable, net







        12,815



        14,911

        Prepaid expenses and other current assets







        7,274



        59,389

        Amounts due from related parties







        218,456



        573

        Deferred tax assets-current







        593



        1,381















        Total current assets







        437,519



        1,116,970











        Non-current assets:













        Equipment, net







        11,307



        22,301

        Intangible assets, net







        2,747



        28,086

        Goodwill







        4,420



        58,998

        Long-term investment











        50,300

        Deferred tax assets-noncurrent







        481





        Other non-current assets











        1,353















        Total non-current assets







        18,955



        161,038















        TOTAL ASSETS





        $

        456,474

        $

        1,278,008















        LIABIILITIES, CONVERTIBLE REDEEMABLE PREFERRED SHARES AND EQUITY (DEFICIT)























        Current liabilities:













        Accounts payable





        $

        6,443

        $

        20,381

        Accrued expenses and other payables







        14,408



        31,108

        Amount due to a related party











        51

        Deferred revenue







        4,476



        7,441

        Income tax payable







        64



        1,506















        Total current liabilities







        25,391



        60,487











        Non-current liabilities:













        Deferred tax liabilities-noncurrent







        516



        6,976















        Total non-current liabilities







        516



        6,976















        TOTAL LIABILITES







        25,907



        67,463











        Commitments













        Series C convertible redeemable preferred shares ($0.001 par value; 215,959,520 shares authorized, issuance price $0.223 per share; 128,048,440 and nil shares issued and outstanding as of December 31, 2010 and December 31, 2011, respectively, liquidation value of $26,713)







        28,520





        Series D convertible redeemable preferred shares ($0.001 par value; 434,204,890 shares authorized, redemption and issuance price $0.993 per share; 434,204,890 and nil shares issued and outstanding as of December 31, 2010 and December 31, 2011, respectively, liquidation value of $403,854)







        571,439















        Shareholders' Equity (Deficit):













        Series A convertible preferred share (US$0.001 par value, 100,000,000 shares authorized, 85,100,000 and nil issued and outstanding as of December 31, 2010 and December 31, 2011, respectively, liquidation value $85 as of December 31, 2010)







        85





        Series B convertible preferred share (US$0.001 par value, 100,000,000 shares authorized, 81,501,540 and nil issued and outstanding as of December 31, 2010 and December 31, 2011, respectively, liquidation value $82 as of December 31, 2010)







        82





        Ordinary Shares (US$0.001 par value, 2,000,000,000 shares authorized, 211,383,000 and 1,169,675,800 issued and outstanding as of December 31, 2010 and December 31, 2011, respectively)







        211



        1,170

        Treasury shares











        (25,597)

        Additional paid-in capital







        9,470



        1,407,059

        Subscription receivable







        (4,909)





        Accumulated deficit







        (223,572)



        (183,228)

        Statutory reserves







        2,595



        3,507

        Accumulated other comprehensive income







        46,646



        7,334















        Total Renren's shareholders' equity (deficit)







        (169,392)



        1,210,245















        Noncontrolling Interests











        300















        Total Equity (Deficit)







        (169,392)



        1,210,545















        LIABIILITIES, CONVERTIBLE REDEEMABLE PREFERRED SHARES AND EQUITY (DEFICIT)





        $

        456,474

        $

        1,278,008



















      • Share Recommend | Keep | Reply | Mark as Last Read


        From: zax3/9/2012 5:34:27 AM
        1 Recommendation   of 309
         
        Renren 4Q11 Recap: Investing For The 'Mobile-Centric' Era
        Jiang Zhang

        seekingalpha.com

        Renren ( RENN) reported earnings yesterday.

        For 4Q11

        • Net revenue: $32.8 million, +57% y/y
        • Online advertising revenue: $15 million, +66% y/y
        • Online game revenue: $12 million, +39% y/y
        • Nuomi revenue: $2.7 million
        • Gross margin: 70.4%
        • Operating loss: $19.7 million, compared to $2.3 million operating profit in 4Q10
        • Net income: $44.3 million, compared to net loss of $33.9 million in 4Q10. The positive net income was due to $50.9 million gain on sales of marketable securities
        • Non-GAAP income: $48.2 million, compared to $5.2 million in 4Q10
        For FY2011

        • Net revenue: $118 million, +54% y/y
        • Online advertising revenues: $59.6 million, +86% y/y
        • Gross margin: 78%
        • Operating loss: $30 million compared to $7.7 million operating income in 2010
        • Net income: $41.3 million
        • Non-GAAP income: $49.7 million
        What I liked: Stronger Growth Than Facebook; Mobile To Be The Next Catalyst

        Monthly active user growth still outshines Facebook ( FB) in the US on a year-over-year basis.



        Over the past quarter, Renren also saw stronger user engagement, which was 7.4 hours per user per month compared to 7 hours per user per month in Q3, and allowed advertising revenue to continue to exhibit robust growth as advertisers begin to realize the value behind social ad model. The top five advertising clients for Renren over the quarter were from IT, consumer goods, auto, apparel, and baby care.



        Finally, management indicated that the company will continue to invest in mobile as social networking enters the "mobile-centric era". Traffic to social networking sites is increasing in China due to rising penetration of smartphones. Over the quarter, Renren's mobile penetration was 38% and 60% of mobile users access Renren via smartphones, and the numbers will likely climb as LBS and mobile games continue to play vital roles to driving mobile traffic.

        What concerned me:Declining Nuomi margin and monthly unique log-in user growth

        Nuomi's gross margin continues to decline, which could indicate weakness in commission rate.



        However, encouraging signs began to emerge in China's group-buy industry in which 3,000 group-buy sites are currently operational compared to over 6,000 in the middle of last year, indicating industry consolidation is taking place. Nuomi is currently operating in 55 cities across China and will deepen its penetration by leveraging the synergy with Renren, HTC Daren mobile handset and Focus Media's ( FMCN) interactive LCD screens.

        Despite solid year-over-year growth in monthly unique log-in users, growth on a quarter-over-quarter basis was nil.



        Disclosure:I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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