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Jiayuan Announces Third Quarter 2015 Financial ResultsBEIJING, Nov. 25, 2015 /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 third quarter ended September 30, 2015. Third Quarter 2015 Highlights[1]
"Our focus on improving profitability continued to yield strong results with non-GAAP net income for the quarter surging 386.8% to RMB23.2 million on a year-over-year basis," commented Mr. Linguang Wu, Chief Executive Officer of Jiayuan. "Our personalized matchmaking business continues to be one of our most exciting growth drivers with revenues increasing 37.7% and same store sales increasing 28.5% on a year-over-year basis. Supporting the increased amount of sales in each location is the new and innovative crowd-sourced part-time matchmaker system we announced last quarter which is currently being expanded to include approximately 1,200 crowd-sourced matchmakers in Beijing. To put this into context, we had around 2,600 full-time matchmakers in our self-run and outsourced stores as of September 30, 2015 which I believe demonstrates the size and scale of this huge and untapped market." "Qiuai's user and revenue growth remained solid as it began contributing to profits during the quarter demonstrating the traction our mobile products continue to gain in an ever crowded market. Total activated installments of our app now exceed 47.2 million while logins through mobile devices accounted for 70.3% of total logins during the quarter. We continue to innovate and invest in new products that will help us to build a sustainable business over the long-term." Mr. Shang Koo, Chief Financial Officer of Jiayuan added, "Our revenue continues to grow steadily despite lower sales and marketing spending this year. However, with our focus now squarely on profitability, total active users dropped on a year over year basis as a result of the reduced spending on user acquisition. Going forward, user acquisition spending will remain stable so user numbers should maintain themselves around this level or increase slightly starting next year." Third Quarter 2015 Operational Results The number of average monthly active user accounts[3] for the third quarter 2015 was 5,308,039, compared to 6,168,616 in the corresponding period of 2014 and 5,469,361 for the previous quarter. The number of average monthly paying user accounts[4] for the third quarter 2015 was 1,405,426, compared to 1,522,838 in the corresponding period of 2014 and 1,487,681 for the previous quarter. Average monthly revenue per paying user ("ARPU") for online services for the third quarter 2015 was RMB24.5, an increase of 10.9% from RMB22.1 for the corresponding period in 2014 and a slight sequential increase from RMB24.1 for the previous quarter. The increases were mainly attributable to the Company's continuous efforts in increasing monetization. Third Quarter 2015 Financial Results Jiayuan reported net revenues of RMB182.7 million (US$28.7 million) for the third quarter of 2015, representing a year-over-year increase of 13.1% from RMB161.6 million and an increase of 1.5% from RMB180.0 million for the previous quarter. The increase was primarily due to strong growth from the Company's personalized matchmaking services.
Cost of revenues for the third quarter of 2015 was RMB97.5 million (US$15.3 million), representing a year-over-year increase of 30.8% from RMB74.5 million and an increase of 1.3% from RMB96.2 million for the previous quarter. The year-over-year and sequential increases were primarily due to the expansion of personalized matchmaking services, which increased the commissions paid to the Company's local matchmaking partners. Gross profit for the third quarter of 2015 was RMB85.3 million (US$13.4 million), compared to RMB87.1 million for the corresponding quarter of 2014 and a slight increase from RMB83.8 million for the previous quarter. Selling and marketing expenses were RMB47.1 million (US$7.4 million) for the third quarter of 2015, representing a year-over-year decrease of 27.5% from RMB64.9 million and a slight decrease of 3.1% from RMB48.6 million for the previous quarter. The year-over-year decrease was primarily related to the special marketing campaign for Chinese Valentine's Day launched during the third quarter of 2014 and the Company's focus on profitability this quarter. General and administrative expenses were RMB21.6 million (US$3.4 million) for the third quarter of 2015, representing a 35.6% year-over-year increase from RMB15.9 million and an increase of 10.5% from RMB19.6 million for the previous quarter. The year-over-year increase was primarily due to professional fees related to the review and evaluation by the special committee of the Company's Board of Directors (the "Special Committee") of certain non-binding proposals regarding a potential "going private" transaction as previously announced by the Company and an increase in employee stock option expenses. The sequential increase was mainly attributable to the increases in human resource costs. Research and development expenses were RMB6.8 million (US$1.1 million) for the third quarter of 2015, representing a year-over-year increase of 14.2% from RMB5.9 million, and a 3.4% increase from RMB6.5 million for the previous quarter. The year-over-year and sequential increases were a result of the growth in the number of research and development personnel in connection with Jiayuan's focus on improving user experience and mobile expansion. Operating income for the third quarter of 2015 was RMB9.8 million (US$1.5 million), an increase of 3,114.8% from RMB305,000 for the corresponding quarter of 2014, and an increase of 8.1% from RMB9.1 million for the previous quarter. Excluding share-based compensation expenses and professional fees related to the review and evaluation by the Special Committee of certain non-binding proposals regarding a potential "going private" transaction as previously announced by the Company, non-GAAP operating income for the third quarter of 2015 was RMB18.1 million (US$2.8 million), an increase of 734.9% from non-GAAP operating income of RMB2.2 million for the corresponding quarter of 2014 and a slight increase from non-GAAP operating income of RMB17.1 million for the previous quarter. The year-over-year and sequential increases were primarily due to the decrease of selling and marketing expenses. Foreign currency exchange net gain for the third quarter of 2015 was RMB388,000 (US$61,000), compared to a foreign currency exchange net loss of RMB172,000 for the corresponding quarter of 2014 and a foreign currency exchange net gain of RMB33,000 for the previous quarter. The foreign currency exchange net gain for the third quarter of 2015 was mainly attributable to U.S. dollar appreciation against RMB during the period. Net income for the third quarter of 2015 was RMB14.9 million (US$2.3 million), representing a year-over-year increase of 413.6% from RMB2.9 million for the corresponding quarter of 2014 and a sequential increase of 29.2% from RMB11.5 million for the previous quarter. Excluding share-based compensation expenses and professional fees related to the review and evaluation by the Special Committee of certain non-binding proposals regarding a potential "going private" transaction as previously announced by the Company, non-GAAP net income for the third quarter of 2015 was RMB23.2 million (US$3.6 million), an increase of 386.8% from RMB4.8 million for the corresponding quarter of 2014 and an increase of 18.7% from RMB19.5 million for the previous quarter. Basic and diluted net income per ADS[5] for the third quarter of 2015 were RMB0.50 (US$0.08) and RMB0.49 (US$0.08), respectively, compared to basic and diluted net income per ADS of RMB0.10 and RMB0.10 for the corresponding quarter of 2014 and basic and diluted net income per ADS of RMB0.39 and RMB0.38, respectively, for the second quarter of 2015. Excluding share-based compensation expenses and professional fees related to the review and evaluation by the Special Committee of certain non-binding proposals regarding a potential "going private" transaction as previously announced by the Company, non-GAAP basic and diluted net income per ADS for the third quarter of 2015 were RMB0.78 (US$0.12) and RMB0.76 (US$0.12), respectively, compared to non-GAAP basic and diluted net income per ADS of RMB0.16 and RMB0.16 for the corresponding quarter of 2014 and non-GAAP basic and diluted net income per ADS of RMB0.66 and RMB0.64, respectively, for the second quarter of 2015. As of September 30, 2015, Jiayuan had cash and cash equivalents and short-term deposits of RMB480.9 million (US$75.7 million). Cash flows from operating activities for the third quarter of 2015 were RMB19.4 million (US$3.1 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 third quarter of 2015 was 30.5 million. As of September 30, 2015, the Company had 33.9 million ADSs outstanding, including 0.7 million ADSs issued to the depository for future exercise of options. Fourth Quarter 2015 Outlook Jiayuan currently expects to generate net revenues in the range of RMB182 million to RMB184 million for the fourth quarter of 2015. This forecast reflects Jiayuan's current and preliminary view, which is subject to change. Conference Call Information Jiayuan's management will host a conference call to discuss its results and outlook today, November 25, 2015, at 8:00 a.m. U.S. Eastern Time (9:00 p.m. November 25, 2015 Beijing / Hong Kong Time). Dial-in details for the earnings conference call are as follows: United States: +1-845-6750-438 A replay of the conference call may be accessed by phone at the following number until December 2, 2015: International: +61-2-9003-4211 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 2014, according to iResearch. Jiayuan recorded an average of 5.3 million monthly active user accounts in the third quarter of 2015. 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 and professional fees related to the review and evaluation by the Special Committee of certain non-binding proposals regarding a potential "going private" transaction as previously announced by the Company. 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 and fees related to privatization which are not relevant to our operational activities. 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 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.
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