PHOENIX, Dec. 29, 2021 /PRNewswire/ — Renren Inc. (NYSE: RENN) (“Renren” or the “Company”), which operates two US-based SaaS businesses, Chime Technologies Inc. (“Chime”) and Trucker Path Inc. (“Trucker Path”), today announced its unaudited financial results for the six months ended June 30, 2021.
First Half of 2021 Highlights
Except where specified otherwise, the following commentary compares results for the six months ended June 30, 2021 to results for the corresponding period in 2020, excluding those of Kaixin Auto Holdings (“Kaixin”).
- The Company completed its deconsolidation of Kaixin on June 25, 2021 through Kaixin’s reverse acquisition of Haitaoche Limited (“Haitaoche”). Upon completion of the reverse acquisition, the Company’s ownership interest in Kaixin decreased from 69.4% as of December 31, 2020 to 33.3% as of June 30, 2021. The Company recognized a gain on the deconsolidation of US$123.7 million. For periods on and after June 25, 2021, Renren is accounting for its retained non-controlling investment in Kaixin under the equity method of accounting.
- Total net revenues improved 91% to US$15.0 million compared to US$7.9 million for the six months ended June 30, 2020.
- Paying subscriptions to the Company’s SaaS businesses, Chime and Trucker Path as of June 30, 2021 reached 2,100 and 59,000 respectively, representing an increase of 32% and 129% compared to June 30, 2020. Chime’s active seats, which are defined as eligible users on a paid subscription and registered to use the platform, increased to 16,100 from 6,900.
- Gross Margins from the Company’s SaaS businesses ended the period at 84% as compared to 79% for the corresponding period ended June 30, 2020. When compared to RenRen’s consolidated Gross Margins while operating Kaixin, margins increased 67%, from 17% for the six months ended June 30, 2020. This increase is primarily due to the deconsolidation of the Kaixin auto business which has historically operated at lower margins than the SaaS businesses.
- Operating loss of US$7.1 million, improved 60% from that of US$17.9 million in the corresponding period in 2020.
- Net loss from continuing operations attributable to the Company was US$49.7 million, compared to that of US$13.3 million in the corresponding period in 2020.
- Adjusted loss from operations (1) (non-GAAP) of US$2.8 million, improved from an adjusted loss from operations of US$8.0 million in the corresponding period in 2020.
- Adjusted net income from continuing operations (1) (non-GAAP) was US$1.9million, compared to an adjusted net loss from continuing operations of US$3.9 million in the corresponding period in 2020.
- The Company’s cash and cash equivalents increased to US$70.6 million from US$19.6 million at December 31, 2020 mainly due to the repayment of a promissory note from a related party.
| (1) Adjusted loss from operations and adjusted net (loss) income from continuing operations are non-GAAP measures. Adjusted loss from operations is defined as loss from operations excluding share-based compensation expenses and amortization of intangible assets, and adjusted net (loss) income from continuing operations is defined as net (loss) income from continuing operations excluding share-based compensation expenses, fair value change of contingent consideration, amortization of intangible assets and pick up of loss from the equity method investment in Kaixin. See “About Non-GAAP Financial Measures” below. |
First Half 2021 Results