BEIJING, Dec. 30, 2020 /PRNewswire/ — Renren Inc. (NYSE: RENN) (“Renren” or the “Company”), which operates a premium used auto business in China through its subsidiary Kaixin Auto Holdings (NASDAQ: KXIN) (“Kaixin”) as well as several U.S.-based SaaS businesses, today announced its unaudited financial results for the six months ended June 30, 2020. First Half of 2020 Highlights
- Total net revenues were US$41.2 million, an 80.9% decrease from the corresponding period in 2019.
— Kaixin revenues (1) were US$33.3 million, an 83.7% decrease from the corresponding period in 2019. - Operating loss was US$23.2 million, improved from an operating loss of US$26.4 million in the corresponding period in 2019.
- Net loss attributable to the Company was US$16.6 million, compared to a net income attributable to the Company of US$67.7 million in the corresponding period in 2019.
- Adjusted loss from operations (2) (non-GAAP) was US$12.0 million, improved from an adjusted loss from operations of US$19.4 million in the corresponding period in 2019.
- Adjusted net loss (2) (non-GAAP) was US$8.5 million, compared to an adjusted net loss of US$15.5 million in the corresponding period in 2019.
(1) Kaixin revenues are the net revenue from the Company’s subsidiary Kaixin, which are included in the Company’s Auto Group segment. Please refer to the table of additional information for details.
(2) Adjusted loss from operations and net income (loss) are non-GAAP measures, which are defined as loss from operations excluding share-based compensation expenses and amortization of intangible assets and net income (loss) excluding share-based compensation expenses, fair value change of contingent consideration and amortization of intangible assets, respectively. See “About Non-GAAP Financial Measures” below.First Half 2020 Results
Total net revenues for the first half of 2020 were US$41.2 million, representing an 80.9% decrease from the corresponding period in 2019. The COVID-19 pandemic had a material adverse impact on the Company’s used-car dealership business.
Cost of revenues was US$34.0 million, compared to US$201.9 million from the corresponding period of 2019. The decrease was in line with the decrease of revenue.
Operating expenses were US$30.4 million, a 23.4% decrease from the corresponding period of 2019.
Selling and marketing expenses were US$5.3 million, a 58.5% decrease from the corresponding period of 2019. The decrease resulted from the effort to improve operation efficiency in headcount and personnel-related expenses.
Research and development expenses were US$8.0 million, a 39.5% decrease from the corresponding period in 2019. The decrease was primarily due to a decrease in headcount and personnel-related expenses.
General and administrative expenses were US$17.1 million, a 25.0% increase from the corresponding period in 2019. The increase was primarily due to an increase in share-based compensation expenses.
Share-based compensation expenses, which were all included in operating expenses, were US$11.0 million, compared to US$6.9 million in the corresponding period in 2019. The increase was mainly due to a modification which repriced the exercise price with respect to options during the first half of 2020, which led to the higher share-based compensation expenses in the six months ended June 30, 2020 compared to the six months ended June 30, 2019.
Loss from operations was US$23.2 million, improved from a loss from operations of US$26.4 million in the corresponding period in 2019.
Net loss attributable to Renren Inc. was US$16.6 million, compared to a net income of US$67.7 million in the corresponding period in 2019.
Adjusted loss from operations (non-GAAP) was US$12.0 million, improved from an adjusted loss from operations of US$19.4 million in the corresponding period in 2019. Adjusted loss from operations is defined as loss from operations excluding share-based compensation expenses and amortization of intangible assets.
Adjusted net loss (non-GAAP) was US$8.5 million, compared to an adjusted net loss of US$15.5 million in the corresponding period in 2019. Adjusted net loss is defined as net loss excluding share-based compensation expenses, fair value change of contingent consideration and amortization of intangible assets.
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