Renren announced its unaudited financial results for the first quarter ended March 31, 2016. Total net revenues were $10.8 million, representing a 29.2% increase from the corresponding period in 2015.
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Advertising and IVAS net revenues were $6.1 million, representing a 24.8% decrease from the corresponding period of 2015. Advertising revenues were $0.7 million for the first quarter of 2016, a 72.2% decrease from the corresponding period of 2015. The decrease was due to increasing competition and the continuing migration of our traffic to mobile.
Internet Value-Added Services (IVAS) revenues were $5.4 million, representing a 5.6% decrease from the corresponding period in 2015. The decrease was mainly due to decreased revenue from VIP memberships and third party application developer revenues on the Renren platform. Monthly unique log-in users decreased from approximately 46 million in March 2015 to approximately 37 million in March 2016.
Financing income was $4.7 million for the first quarter of 2016, compared to $0.2 million in the corresponding period of 2015. The increase was in line with the increase of financing receivable from $12.7 million as of March 31, 2015 to $170.6 million as of March 31, 2016.
Cost of revenues was $8.4 million, a 7.7% increase from the corresponding period of 2015.
Operating expenses were $21.5 million, a 23.9% decrease from the corresponding period of 2015.
Selling and marketing expenses were $4.6 million, a 39.1% decrease from the corresponding period of 2015. The decrease was primarily due to a decrease in advertising expenses, headcount reductions, and a decrease in personnel related expense.
Research and development expenses were $5.3 million, a 39.0% decrease from the corresponding period in 2015. The decrease was primarily due to headcount reductions and a decrease in personnel related expense.
General and administrative expenses were $11.6 million, a 3.2% decrease from the corresponding period in 2015.
Share-based compensation expenses, which were all included in operating expenses, were $7.2 million, compared to $6.2 million in the corresponding period in 2015.
Operating loss was $19.2 million, compared to an operating loss of $27.8 million in the corresponding period in 2015.
Realized loss on short-term investments was $0.1 million, compared to a gain of $1.1 million in the corresponding period in 2015.
Loss in equity method investments was $11.9 million, compared to earnings of $0.5 million in the corresponding period in 2015.
Net loss attributable to the company was $23.2 million, compared to a net loss of $23.8 million in the corresponding period in 2015.
Adjusted net loss (non-GAAP) was $15.9 million, compared to an adjusted net loss of $17.6 million in the corresponding period in 2015. Adjusted net loss is defined as loss excluding share-based compensation expenses and amortization of intangible assets. ■