Renren Reports Increased Losses; Shares Tumble 8%
Shares in Renren Inc. (NYSE: RENN) tumbled more than 8 percent by midday Friday, to $1.52 apiece, after the company reported increased losses for the third quarter, though its revenue has nearly doubled year-over-year.
The Beijing-based company, which operates a SaaS business and an auto industry business, said in a statement today that its revenue in the three months through September grew 94 percent to $116.8 million. Revenue from Renren's used auto sales business soared 152 percent to $106.3 million from the same period of last year, while revenue from internet value-added services dropped 7 percent, according to the report.
Net loss reached $28.8 million, or 42 cents per share, compared with $22.8 million in the preceding year, it said.
Renren also noted that $5.7 million in inventory and $16.1 million of advances to suppliers were written off in August at one of its dealerships, Ji'nan Dealership, as a result of a police investigation concerning an individual who holds a 30 percent stake in the business.
Renren transformed its business last year, selling its social networking platform that was once dubbed China's Facebook. Instead, the company switched focus to its domestic used car business, as well as its businesses outside of China, including its Trucker Path app and its SaaS business in the U.S.
For the fourth quarter of 2018, Renren said it expects to generate revenue in the range of $117 million to $122 million, representing an increase of between 30 and 36 percent year-over-year.