Renren released its Q2 finance report on Aug 15, reporting a net loss of USD 9.3 million and its total net revenue was USD 49.6 million.
By the end of June 2013, its net loss was lower than that of last year, which was USD 24.9 million. And its total net revenue grew 10.7% more than last year.
Renren.com net revenue was USD 43.4 million in Q2, with a YoY increase of 5.5%. Online games net revenue was USD 22.8 million, growing 1.4% more than last year. Value-added internet service net revenue reached USD 5.2 million, with a 43.5% YoY increase. The main reason for the growth of Renren was from the virtual talent show on 56.com. Online advertising revenue was USD 15.4 million, with a 2.4% YoY increase.
The number of activated accounts on Renren rose to 194 million from 164 million in last year. And monthly independent login in accounts grew to 54 million from 45 million in last June.
And nuomi.com net revenue was USD 6.2 million in Q2, 69.4% more than that of last year. In Q2, the activated paying accounts in nuomi reached 3.8 million, with a YoY increase of 44.2%.
Cost of Revenue
The cost of revenue was USD 17.9 million in Q2, 5.8% more than last year. It was due to the increasing cost of 56.com.
The operating expenses in Q2 was USD 66.4 million, increasing 32.6% more than last year.
Sales and marketing expenses were USD 30.2 million, with a 40% increase from last year. Because the online games advertising cost grew largely and the personnel cost of 56.com increased.
Research and development expenses were USD 22.2 million, 24.6% more than last year. Most money went to the online games and mobile platform development.
The operating loss in Q2 reached USD 34.7 million, much higher than last year’s USD 22.2 million.