Renren announced its unaudited financial results for the first quarter ended March 31, 2018.
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Total net revenues for the first quarter of 2018 were 4140.5 million, representing a 570% increase from the corresponding period in 2017, due to the launch of the used car retail business in the second quarter of 2017.
IVAS and others net revenues were 414.7 million, representing a 26.5% increase from the corresponding period of 2017. The increase was mainly due to the revenue from our Renren mobile live streaming service. Monthly unique log-in users of the Renren SNS platform were approximately 31 million in March 2018.
Financing income was 42.2 million for the first quarter of 2018, compared to 49.3 million in the corresponding period of 2017. The decrease was in line with the decrease of financing receivable from 4270.1 million as of March 31, 2017 to 446.0 million as of March 31 2018.
Used car sales revenue of 4123.6 million was generated through one of our subsidiaries conducting used car sales business, which is a new business that we initiated in the second quarter of 2017.
Cost of revenues was 4128.6 million, compared to 414.5 million from the corresponding period of 2017. The increase was primarily due to the cost of used car sales.
Operating expenses were 437.4 million, a 55.7% increase from the corresponding period of 2017.
Selling and marketing expenses were 411.9 million, a 92.9% increase from the corresponding period of 2017. The increase was primarily due to the increase in in headcount and personnel related expenses for the used car sales business.
Research and development expenses were 47.3 million, a 26.9% increase from the corresponding period in 2017. The increase was primarily due to the increase in headcount and personnel related expenses.
General and administrative expenses were 418.2 million, a 50.6% increase from the corresponding period in 2017. The increase was primarily due to the increase in share-based compensation expenses.
Share-based compensation expenses, which were all included in operating expenses, were 412.3 million, compared to 45.1 million in the corresponding period in 2017. The increase was primarily due to stock options granted during the first quarter of 2018 by our subsidiary conducting our used car business.
Loss from operations was 425.5 million, compared to a loss from operations of 417.6 million in the corresponding period in 2017.
Loss in equity method investments was 42.8 million, compared to income of 44.1 million in the corresponding period in 2017.
Net loss attributable to the Company was 441.6 million, compared to a net loss of 416.2 million in the corresponding period in 2017.
Adjusted loss from operations (non-GAAP) was 413.1 million, compared with an adjusted loss from operations of 412.5 million in the corresponding period in 2017 and an adjusted loss from operations of 421.9 million in the fourth quarter of 2017. Adjusted loss from operations is defined as loss from operations excluding share-based compensation expenses and amortization of intangible assets.
Adjusted net loss (non-GAAP) was 418.8 million, compared to an adjusted net loss of 411.0 million in the corresponding period in 2017. Adjusted net loss is defined as net loss excluding share-based compensation expenses, fair value change of contingent consideration and amortization of intangible assets. ■