Renren announced its unaudited financial results for the second quarter ended June 30, 2017.
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Total net revenues for the second quarter of 2017 were $22.3 million, representing a 55.4% increase from the corresponding period in 2016.
Advertising and IVAS net revenues were $12.7 million, representing a 67.9% increase from the corresponding period of 2016. Advertising revenues were $0.1 million for the second quarter of 2017.
IVAS revenues were $12.6 million, representing an 86.7% increase from the corresponding period in 2016. The increase was mainly due to the revenue from our Renren mobile live streaming service.
onthly unique log-in users of the Renren SNS platform decreased from approximately 35 million in June 2016 to approximately 34 million in June 2017. Login users' monthly average time spent increased 23.9% year-over-year.
Financing income was $8.6 million for the second quarter of 2017, compared to $6.8 million in the corresponding period of 2016. The increase was in line with the increase of financing receivable from $207.2 million as of June 30, 2016 to $238.6 million as of June 30, 2017.
Used car sales revenue of $1.0 million was generated through one of our subsidiaries conducting a used car trading business, which is a new business that we initiated in the second quarter of 2017.
Cost of revenues was $17.4 million, a 32.5% increase from the corresponding period of 2016.
Operating expenses were $20.4 million, a 1.7% increase from the corresponding period of 2016.
Selling and marketing expenses were $6.0 million, a 15.2% increase from the corresponding period of 2016. The increase was primarily due to an increase in advertising and promotion expenses.
Research and development expenses were $4.6 million, compared to $4.6 million in the corresponding period in 2016.
General and administrative expenses were $9.8 million, a 4.4% decrease from the corresponding period in 2016.
Share-based compensation expenses, which were all included in operating expenses, were $5.2 million, compared to $5.5 million in the corresponding period in 2016.
Operating loss was $15.5 million, compared to an operating loss of $18.8 million in the corresponding period in 2016.
Non-operating loss was $62.8 million, compared to a loss of $28.3 million in the corresponding period in 2016. Non-operating loss for the second quarter of 2017 was mainly due to a $61.0 million impairment on long-term investments.
Earnings in equity method investments were $61.7 million, compared to earnings of $1.4 million in the corresponding period in 2016. Earnings in equity method investment for the second quarter of 2017 mainly included a $58.3 million gain on disposal of certain shares of Social Finance Inc.
Net loss attributable to the Company was $17.2 million, compared to a net loss of $46.1 million in the corresponding period in 2016.
Adjusted net loss (non-GAAP) was $12.0 million, compared to an adjusted net loss of $40.6 million in the corresponding period in 2016. Adjusted net loss is defined as loss excluding share-based compensation expenses and amortization of intangible assets. ■