Renren (RENN) CEO Chen Speaks on CNBC About Q1 Performance, Outlook
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Chairman and CEO, Joseph Chen, of Renren (Nasdaq: RENN), nicknamed the “Facebook of China,” spoke with CNBC today, following its earnings release. Chen notes that he does not call the company “The Facebook of China,” but that is the nick name that it was given.
Renren reported its first-quarter results on after the market yesterday with a net loss of $2.6 million, down from a loss of $12.1 million in the first quarter of 2010. Revenue for the quarter was $20.6 million which was up from $14 million in the first quarter of 2010. Online revenues for the quarter almost doubled from 2010 to $8.1 million from $4.1 million.
Looking ahead, Renren expects second-quarter revenues to fall between $29 and $30 million. Chen comments that first-quarter revenue is typically low as a majority of company release and advertises their new products during its second and third quarters. The company’s user base has grown by two million in the past two months.
Chen does not debate that social networking companies like Facebook will come to China, but believes that Renren will have a solid platform and that the Chinese people will stick with domestic companies.
Renren has been following the United States GAAP rules since 2006 and plans on continuing the practice.
Chen stated that he expects 35 to 40 percent traffic growth this year. The company really cares about being sustaining long term invests much of its earnings back into the company for future growth.
Video Link to CNBC Interview
Renren reported its first-quarter results on after the market yesterday with a net loss of $2.6 million, down from a loss of $12.1 million in the first quarter of 2010. Revenue for the quarter was $20.6 million which was up from $14 million in the first quarter of 2010. Online revenues for the quarter almost doubled from 2010 to $8.1 million from $4.1 million.
Looking ahead, Renren expects second-quarter revenues to fall between $29 and $30 million. Chen comments that first-quarter revenue is typically low as a majority of company release and advertises their new products during its second and third quarters. The company’s user base has grown by two million in the past two months.
Chen does not debate that social networking companies like Facebook will come to China, but believes that Renren will have a solid platform and that the Chinese people will stick with domestic companies.
Renren has been following the United States GAAP rules since 2006 and plans on continuing the practice.
Chen stated that he expects 35 to 40 percent traffic growth this year. The company really cares about being sustaining long term invests much of its earnings back into the company for future growth.
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