BEIJING, August 28, 2014 /PRNewswire/ -- Jiayuan.com International Ltd. ("Jiayuan" or the "Company") (NASDAQ: DATE), operator of the largest online dating platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2014.
Second Quarter 2014 Highlights[1]
"Our business continued to gain momentum during the quarter with revenues increasing 21.8% from the same period last year," commented Mr. Linguang Wu, Chief Executive Officer of Jiayuan. "In particular, personalized matchmaking services grew 239.3% year-over-year in the quarter as we continue to leverage our massive data base of over 110 million users for our online-to-offline strategy. Traditional matchmaking is a multi-billion RMB business in China and we are uniquely positioned to consolidate and expand this market. We plan to scale this business to 80 locations by the end of the year from its current 59 locations in 48 cities. Personalized matchmaking services are increasingly becoming an important part of our business accounting for 22.5% of net revenues this quarter."
Mr. Wu added, "Average monthly active users continued to grow steadily as we increasingly shift our business towards mobile platforms, which now account for 64% of all logins to Jiayuan.com. As of June 30, 2014, activated installments of Jiayuan's app totaled 31.3 million. iZhenxin.com also saw significant user growth in the quarter, supported by the launch of its Android app in May 2014. With access to such a large database of singles in China, I am confident in our strategy and management's ability to consolidate this growing market."
Mr. Shang Koo, Chief Financial Officer of Jiayuan commented, "Our business continued its steady growth this quarter as we rapidly migrate our online users to mobile platforms and expand our online-to-offline business. As anticipated, our focus on mobile resulted in higher active and paying users this quarter, but caused ARPU to decrease slightly as mobile users tend to spend less initially. However, we expect to see ARPU increase in 2015 as we retune and improve our online offerings in order to increase the monetization of our mobile users. We also expect our personalized matchmaking business to continue its phenomenal triple digit growth for the rest of the year and well into 2015 as we further consolidate this market."
Second Quarter 2014 Operational Results
The number of average monthly active user accounts for the second quarter 2014 was 5,701,360, representing an increase of 7.1% compared to 5,321,383 for the corresponding period of 2013, and a sequential increase of 5.6% from 5,399,646 for the previous quarter.
The number of average monthly paying user accounts for the second quarter 2014 was 1,542,062, representing an increase of 16.3% compared to 1,326,370 for the corresponding period of 2013, and a sequential increase of 6.2% from 1,452,377 for the previous quarter.
Average monthly revenue per paying user ("ARPU") for online services for the second quarter 2014 was RMB22.5, compared to RMB26.6 for the corresponding period in 2013 and RMB23.9 for the previous quarter.
Second Quarter 2014 Financial Results
Jiayuan reported net revenues of RMB145.2 million (US$23.4 million) for the second quarter of 2014, representing a year-over-year increase of 21.8% from RMB119.3 million and an increase of 8.1% from RMB134.3 million in the previous quarter. This was primarily due to strong growth in the personalized matchmaking business.
Cost of revenues for the second quarter of 2014 was RMB63.3 million (US$10.2 million), representing a year-over-year increase of 42.6% from RMB44.4 million and an increase of 18.9% from RMB53.2 million for the previous quarter. The year-over-year and sequential increases were in line with the significant growth seen in the Company's personalized matchmaking business.
Gross profit for the second quarter of 2014 was RMB81.9 million (US$13.2 million), representing a year-over-year increase of 9.4% from RMB74.9 million and an increase of 1.0% from RMB81.1 million for the previous quarter.
Selling and marketing expenses were RMB55.5 million (US$8.9 million) for the second quarter of 2014, representing a year-over-year increase of 24.6% from RMB44.5 million and a decrease of 33.1% from RMB83.0 million for the previous quarter. The year-over-year increase was primarily related to the rising cost per advertisement while the sequential decrease was due in part to a TV brand advertising campaign launched during the February 2014 Chinese New Year holiday.
General and administrative expenses were RMB13.4 million (US$2.2 million) for the second quarter of 2014, representing a year-over-year increase of 7.5% from RMB12.4 million and flat from RMB13.3 million for the previous quarter. The year-over-year increase was mainly attributable to the increase in the human resource costs.
Research and development expenses were RMB5.0 million (US$801,000) for the second quarter of 2014, representing a year-over-year decrease of 8.4% from RMB5.4 million, and a sequential decrease of 9.3% from RMB5.5 million for the previous quarter. The year-over-year and sequential decreases were primarily due to the decrease in the provision of employees' bonuses.
Operating income for the second quarter of 2014 was RMB8.1 million (US$1.3 million), compared to RMB12.5 million for the corresponding quarter of 2013 and an operating loss of RMB20.7 million for the previous quarter. Excluding share-based compensation expenses, non-GAAP operating income for the second quarter of 2014 was RMB9.6 million (US$1.5 million), compared to non-GAAP operating income of RMB16.0 million for the corresponding quarter of 2013 and non-GAAP operating loss of RMB19.0 million for the previous quarter. The year-over-year decrease was due to higher selling and marketing expenses. The sequential increase was a result of the decline in selling and marketing expenses.
Foreign currency exchange net loss for the second quarter of 2014 was RMB156,000 (US$25,000), compared to a foreign currency exchange net gain of RMB675,000 for the corresponding quarter of 2013 and a foreign currency exchange net loss of RMB1.3 million for the previous quarter. The foreign currency exchange net loss for the second quarter of 2014 was mainly attributable to the depreciation of the RMB against the U.S. dollar during the period. Part of the proceeds from Jiayuan's IPO were converted into RMB and are being held by its overseas entities whose functional currency is the U.S. dollar.
Net income for the second quarter of 2014 was RMB11.9 million (US$1.9 million), compared to RMB13.1 million for the corresponding quarter of 2013 and net loss of RMB13.9 million for the previous quarter. Excluding share-based compensation expenses, non-GAAP net income for the second quarter of 2014 was RMB13.4 million (US$2.2 million), compared to RMB16.5 million for the corresponding quarter of 2013 and non-GAAP net loss of RMB12.3 million for the previous quarter.
Basic and diluted net income per ADS[5] for the second quarter of 2014 were RMB0.40 (US$0.06) and RMB0.39 (US$0.06), respectively, compared to basic and diluted net income per ADS of RMB0.44 and RMB0.43 for the corresponding quarter of 2013 and basic and diluted net loss per ADS of RMB0.47 and RMB0.47, respectively, for the first quarter of 2014.
Excluding share-based compensation expenses, non-GAAP basic and diluted net income per ADS for the second quarter of 2014 were RMB0.45 (US$0.07) and RMB0.44 (US$0.07), respectively, compared to non-GAAP basic and diluted net income per ADS of RMB0.55 and RMB0.54 for the corresponding quarter of 2013 and non-GAAP basic and diluted net loss per ADS of RMB0.41 and RMB0.41, respectively, for the first quarter of 2014.
As of June 30, 2014, Jiayuan had cash and cash equivalents and short-term deposits of RMB541.1 million (US$87.2 million). Cash flows from operating activities for the second quarter of 2014 were RMB38.2 million (US$6.2 million).
The weighted average number of ADSs outstanding used in calculating diluted net income per ADS and non-GAAP diluted net income per ADS in the second quarter of 2014 was 30.2 million. As of June 30, 2014, the Company had 33.3 million ADSs outstanding, including 0.5 million ADSs issued to the depository for future exercise of options.
Third Quarter 2014 Outlook
Jiayuan currently expects to generate net revenues in the range of RMB155 million to RMB157 million for the third quarter of 2014. This forecast reflects Jiayuan's current and preliminary view, which is subject to change.
[1] This announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollar ("US$") amounts at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB amounts into US$ amounts as of and for the quarter ended June 30, 2014, were made at an exchange rate of RMB6.2036 to US$1.00, representing the rate as certified by the H.10 weekly statistical release of the Federal Reserve Board on June 30, 2014. Jiayuan's functional currency is U.S. dollar and reporting currency is RMB.
[2] Explanation of Jiayuan's non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying "Non-GAAP Financial Measures'' and "Reconciliations to Unaudited Condensed Consolidated Statements of Comprehensive Income".
[3] Active user accounts are registered user accounts through which registered users have logged in to the Jiayuan platforms at least once within a calendar month, in the case of user accounts registered in prior months, or on at least two separate days within a calendar month, including the day of completion of the registration process, in the case of user accounts newly registered in the calendar month. In the second quarter of 2014, average monthly active user accounts include active user accounts with Jiayuan.com, izhenxin.com, juedui100.com and qiuai.com.
[4] In the second quarter of 2014, average monthly paying user accounts include paying user accounts with Jiayuan.com, izhenxin.com, juedui100.com and qiuai.com.
[5] Basic and diluted net income per ADS are calculated based on net income attributable to ordinary shareholders and the corresponding basic and diluted number of ADSs, assuming that, during each period presented, every two ADSs represent three ordinary shares of Jiayuan. |
Conference Call Information
The Company's management team will hold an earnings conference call at 8:00 a.m. on August 28, 2014, U.S. Eastern Daylight Time (8:00 p.m. Beijing / Hong Kong Time on the same day).
Dial-in details for the earnings conference call are as follows:
United States: | +1-845-675-0438 |
United States (Toll-free): | +1-855-500-8701 |
Hong Kong: | +852-3051-2745 |
Mainland China: | 400-1200-654 |
International/All other regions: | +65-6723-9385 |
Passcode: | 88540178 |
A replay of the conference call may be accessed by phone at the following number until September 5, 2014:
International: | +61-2-9003-4211 |
Passcode: | 88540178 |
A live and archived webcast of the conference call will be available at http://ir.jiayuan.com.
About Jiayuan
Jiayuan.com International Ltd. ("Jiayuan") (NASDAQ: DATE) operates the largest online dating platform in China. Jiayuan is committed to providing a trusted, effective, and user-focused online dating platform that addresses the dating and marriage needs of China's rapidly growing urban singles population. As a pioneer in China's online dating market, Jiayuan ranks first in terms of number of unique visitors, average time spent per user and average page views per user among all online dating websites in China in 2013, according to iResearch. Jiayuan recorded an average of 5.7 million monthly active user accounts in the second quarter of 2014. Every two of Jiayuan's American Depositary Shares represent three ordinary shares.
For more information, please visit http://ir.jiayuan.com.
Forward-Looking Statements
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Jiayuan may also make written or verbal forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in verbal statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, including development of new products and services; our ability to attract and retain users; competition in the Chinese online dating markets; changes in our revenues and certain cost or expense items as a percentage of our revenues; the outcome of any litigation or arbitration; the expected growth of the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and online dating websites and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in our documents filed with the U.S. Securities and Exchange Commission. Jiayuan does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date of the press release, and Jiayuan undertakes no duty to update such information, except as required under applicable law.
Non-GAAP Financial Measures
We disclose non-GAAP financial measures of operating income, net income and net income per ADS, each of which is adjusted to exclude share-based compensation expense. We review non-GAAP financial measures to obtain an additional understanding of our operating performance. We also believe it is useful supplemental information for investors and analysts to assess our operating performance without the effect of non-cash share-based compensation expense, which have been and will continue to be significant recurring expenses in our business. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see "Reconciliation To Unaudited Condensed Consolidated Statement of Comprehensive Income" included in this press release.
However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that it does not include all items that impact our non-GAAP financial measures during the period. In addition, because non-GAAP financial measures are not calculated in the same manner by all companies, it may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures in isolation from or as an alternative to GAAP financial measures. Management compensates for this limitation by providing specific information regarding the GAAP amount excluded from the non-GAAP measure.
For investor and media inquiries, please contact: |
China |
Shirley Zhang |
Jiayuan.com International Ltd. |
+86 (10) 6442-2321 |
ir@jiayuan.com |
Mr. Christian Arnell |
Christensen Investor Relations Group |
+86-10-5900-1548 |
US |
Ms. Linda Bergkamp Christensen Investor Relations Group +1-480-614-3004 |
JIAYUAN.COM INTERNATIONAL LTD. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) | ||||||||
June 30, | March 31, | June 30, | ||||||
2013 | 2014 | 2014 | 2014 | |||||
RMB | RMB | RMB | US$ | |||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 434,583 | 345,952 | 373,131 | 60,147 | ||||
Short-term deposits | 76,443 | 232,000 | 168,000 | 27,081 | ||||
Term deposits, current portion | 10,000 | - | - | - | ||||
Available-for-sale securities | 5,128 | 5,301 | 15,355 | 2,475 | ||||
Accounts receivable, net | 35,328 | 37,778 | 35,340 | 5,697 | ||||
Deferred tax assets | 4,613 | 8,122 | 8,104 | 1,306 | ||||
Prepaid expenses and other current | 18,066 | 36,768 | 54,505 | 8,786 | ||||
Total current assets | 584,161 | 665,921 | 654,435 | 105,492 | ||||
Non-current assets: | ||||||||
Property and equipment, net | 102,030 | 96,304 | 94,919 | 15,301 | ||||
Intangible assets, net | 4,288 | 4,109 | 3,943 | 636 | ||||
Goodwill | 789 | 789 | 789 | 127 | ||||
Other non-current assets | - | - | 762 | 123 | ||||
Total assets | 691,268 | 767,123 | 754,848 | 121,679 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Deferred revenue, current portion | 120,693 | 147,109 | 177,949 | 28,685 | ||||
Accounts payable | 785 | 9,267 | 18,308 | 2,951 | ||||
Accrued expenses and other current | 35,277 | 41,977 | 44,153 | 7,117 | ||||
Income tax payable | 20,544 | 23,678 | 17,365 | 2,799 | ||||
Dividend payable | - | 44,400 | - | - | ||||
Total current liabilities | 177,299 | 266,431 | 257,775 | 41,552 | ||||
Non-current liabilities: | ||||||||
Deferred revenue, non-current portion | 725 | 158 | 5 | 1 | ||||
Accrued expenses and other current | - | 4,680 | 5,550 | 895 | ||||
Deferred tax liabilities | 1,770 | 3,801 | 4,716 | 760 | ||||
Total liabilities | 179,794 | 275,070 | 268,046 | 43,208 | ||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares | 347 | 352 | 352 | 57 | ||||
Additional paid-in capital | 498,800 | 471,097 | 472,850 | 76,222 | ||||
Less: Treasury shares | (71,740) | (91,100) | (110,018) | (17,735) | ||||
Statutory reserves | 9,502 | 9,974 | 9,974 | 1,608 | ||||
Retained earnings | 84,179 | 112,450 | 124,342 | 20,043 | ||||
Accumulated other comprehensive loss | (9,614) | (10,720) | (10,698) | (1,724) | ||||
Total shareholders' equity | 511,474 | 492,053 | 486,802 | 78,471 | ||||
Total liabilities and shareholders' equity | 691,268 | 767,123 | 754,848 | 121,679 | ||||
JIAYUAN.COM INTERNATIONAL LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | ||||||||
Three months ended, | ||||||||
June 30, 2013 | March 31, 2014 | June 30, 2014 | ||||||
RMB | RMB | RMB | US$ | |||||
Net revenues | 119,270 | 134,322 | 145,246 | 23,413 | ||||
Cost of revenues | (44,384) | (53,224) | (63,308) | (10,205) | ||||
Gross profit | 74,886 | 81,098 | 81,938 | 13,208 | ||||
Operating expenses: | ||||||||
Selling and marketing expenses | (44,523) | (82,997) | (55,491) | (8,945) | ||||
General and administrative | (12,444) | (13,308) | (13,377) | (2,156) | ||||
Research and development | (5,425) | (5,479) | (4,968) | (801) | ||||
Total operating expenses | (62,392) | (101,784) | (73,836) | (11,902) | ||||
Operating income/(loss) | 12,494 | (20,686) | 8,102 | 1,306 | ||||
Interest income, net | 2,459 | 4,371 | 4,586 | 739 | ||||
Foreign currency exchange gain/(loss), net | 675 | (1,275) | (156) | (25) | ||||
Other income/(expenses), net | 1,501 | (86) | 2,494 | 402 | ||||
Income before income tax | 17,129 | (17,676) | 15,026 | 2,422 | ||||
Income tax expenses | (4,069) | 3,759 | (3,134) | (505) | ||||
Net income/(loss) | 13,060 | (13,917) | 11,892 | 1,917 | ||||
Net income/(loss) per ADS - Basic | 0.44 | (0.47) | 0.40 | 0.06 | ||||
Net income/(loss) per ADS - Diluted | 0.43 | (0.47) | 0.39 | 0.06 | ||||
ADSs used in computing basic net | 29,856,349 | 29,786,294 | 29,773,717 | 29,773,717 | ||||
ADSs used in computing diluted | 30,475,950 | 29,786,294 | 30,193,159 | 30,193,159 | ||||
JIAYUAN.COM INTERNATIONAL LTD. RECONCILIATIONS TO UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN RMB THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
| |||||||||||||||||||||
Three Months Ended June 30, 2013 | Three Months Ended March 31, 2014 | Three Months Ended June 30, 2014 | |||||||||||||||||||
GAAP | Non-GAAP Adjustments (a) | Non-GAAP | GAAP | Non-GAAP Adjustments (a) | Non-GAAP | GAAP | Non-GAAP Adjustments (a) | Non-GAAP | |||||||||||||
Operating income/(loss) | 12,494 | 3,473 | 15,967 | (20,686) | 1,666 | (19,020) | 8,102 | 1,475 | 9,577 | ||||||||||||
Net income/(loss) | 13,060 | 3,473 | 16,533 | (13,917) | 1,666 | (12,251) | 11,892 | 1,475 | 13,367 | ||||||||||||
Basic net income/(loss) per ADS | 0.44 | 0.55 | (0.47) | (0.41) | 0.40 | 0.45 | |||||||||||||||
Diluted net income/(loss) per ADS | 0.43 | 0.54 | (0.47) | (0.41) | 0.39 | 0.44 | |||||||||||||||
ADSs used in computing basic net | 29,856,349 | 29,856,349 | 29,786,294 | 29,786,294 |
29,773,717 |
29,773,717 | |||||||||||||||
ADSs used in computing diluted | 30,475,950 | 30,475,950 | 29,786,294 | 29,786,294 |
30,193,159 | - 30,193,159 | |||||||||||||||
(a) To adjust for share-based compensation expense. | |||||||||||||||||||||
