NQ Mobile (NQ) Tops Q2 EPS by 3c; Guides FY15 Revenue Above Expectations

NQ Mobile (NYSE: NQ) reported Q2 EPS of $0.08, $0.03 better than the analyst estimate of $0.05. Revenue for the quarter came in at $102.1 million versus the consensus estimate of $102 million.

Operating Metrics as of June 30, 2015

As a reminder, beginning in the third quarter of 2014, the Company began presenting the operating metrics of average monthly active user accounts ("MAUs") as redefined to include many emerging businesses previously not included in the Company's user account metrics. The MAUs presented herein include the user accounts in all the related business segments. As such, the MAUs presented herein should only be compared to operating metrics in the third quarter of 2014 and thereafter and not be compared to operating metrics in earlier historical periods, because there is not a way to accurately compare such results. The MAUs for the period presented herein and going forward are expected to be better aligned with the key underlying trends of a mobile internet platform company focused on driving mobile consumer traffic and engagement that can be monetized. The MAU statistics do not include the users addressed by the installation of the Company's advertising SDK into third-party applications. These indirect users generate impressions and search traffic that the Company can monetize outside of the user accounts generated directly by the Company's own portfolio of products and applications.

Average Monthly Active User Accounts as of June 30, 2015: 188.2 million.

Guidance:

NQ Mobile sees FY2015 revenue of $455 - $460 million, versus the consensus of $449.7 million.

Assets Sales:

NQ also announced it has entered into legally binding share purchase agreements (the "NationSky Agreements"), which provide for the sale of all of NQ Mobile's interest in the NationSky business ("NationSky Divestment"), including the entire interest in Beijing NationSky Network Technology Co., Ltd., to Mr. Hou Shuli, a founder and senior management member of Beijing NationSky, for an aggregate consideration of US $80 million cash.

NQ also announced it has entered into a legally binding framework agreement (the "FL Framework Agreement") with Beijing Jinxing Rongda Investment Management Co. Ltd., a subsidiary of Tsinghua Holdings Co., Ltd and an independent third party, to sell the Company's entire stake in FL Mobile Inc., NQ Mobile's majority owned Cayman Islands subsidiary.

For earnings history and earnings-related data on NQ Mobile (NQ) click here.

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