Renren Inc. (NYSE: RENN), operator of a real name social networking Internet platform in China, after-market close on Tuesday reported its second-quarter financial results. The company reported a net loss for the second quarter, sending the shares down in pre-market trading today.
Renren reported a net loss of $24.9 million, or $0.06 per share for the second quarter, compared to net income of $0.8 million, or $0.00 per share reported for the same period in the previous year. Excluding results of operations related to Nuomi in both quarters, the company reported net loss of $17.7 million, compared to net income of $5 million reported for the same period in the previous year.
RENNâ€™s adjusted net loss for the second quarter was $21.8 million, compared to adjusted net income of $2.3 million reported for the same period in the previous year. Excluding results of operations related to Nuomi, adjusted net loss in the second quarter was $14.5 million, compared to adjusted net income of $6.5 million reported in the second quarter of 2011.
Renrenâ€™s total revenue for the second quarter of 2012 rose 47.5% to $44.82 million.
Analysts were expecting RENN to report a loss of $0.04 per share and revenue of $42.23 million for the second quarter.
Looking ahead to the third quarter, Renren expects revenue to be between $49 million and $51 million, which represents an increase of between 43% and 49% on a year-over-year basis. The companyâ€™s third-quarter revenue forecast for the third quarter is below Street estimates of $52.19 million.
Joseph Chen, Chairman and CEO of Renren, said that RENN is pleased that its total net revenues in the third quarter came in above its guidance, supported by strong gaming growth and a better-than-expected performance by Nuomi. Chen said that on the other hand, brand advertising remained challenging, due to macro conditions, increased competition and the continued migration of the companyâ€™s user traffic from PC to mobile.
Chen added that RENNâ€™s user base continues to show healthy growth, as total activated users in the second quarter reached over 162 million compared to 124 million at the end of the second quarter of 2011.
RENN shares fell more than 4% in pre-market trading today following the release of second-quarter results.