Highlights of the Second Quarter of 2015
- Total net revenues were US$8.7 million in the second quarter of 2015, a decrease of 3.6% from US$9.0 million in the first quarter of 2015 and a decrease of 17.6% from US$10.5 million in the second quarter of 2014. This result hit the high end of management's previously announced outlook, which was from US$8.2 million to US$8.7 million for the second quarter of 2015.
- Net revenues from PC business were US$6.3 million in the second quarter of 2015, an increase of 5.2% from US$6.0 million in the first quarter of 2015 and a decrease of 18.0% from US$7.7 million in the second quarter of 2014.
- Net revenues from mobile business were US$0.8 million in the second quarter of 2015, a decrease of 49.9% from US$1.5 million in the first quarter of 2015 and an increase of 10.6% from US$0.7 million in the second quarter of 2014.
- Net revenues from offline business were US$1.6 million in the second quarter of 2015, an increase of 8.6% from US$1.5 million in the first quarter of 2015 and a decrease of 25.4% from US$2.1 million in the second quarter of 2014.
- Gross profit was US$5.7 million in the second quarter of 2015, a decrease of 8.6% from US$6.2 million in the first quarter of 2015 and a decrease of 24.7% from US$7.5 million in the second quarter of 2014.
- Loss from operations was US$1.8 million in the second quarter of 2015, flat as compared with a loss of US$1.8 million both in the first quarter of 2015 and the second quarter of 2014.
- Non-GAAP net loss attributable to holders of ordinary shares was US$1.3 million in the second quarter of 2015, as compared with US$1.2 million in the first quarter of 2015 and US$0.2 million in the second quarter of 2014.
- Non-GAAP basic and diluted loss per ADS[1] were both US$0.036 in the second quarter of 2015, as compared with US$0.034 for both basic and diluted loss per ADS in the first quarter of 2015 and US$0.007 for both basic and diluted loss per ADS in the second quarter of 2014.
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[1] Each American depositary share ("ADS") represents 20 ordinary shares. |
Key Operating Metrics
- The number of active accounts ("ACA") for the Company's virtual worlds under operation in mainland China was approximately 34.3 million in the second quarter of 2015, a decrease of 12.9% from 39.4 million in the first quarter of 2015 and a decrease of 18.1% from 41.9 million in the second quarter of 2014.
- Active paying accounts ("APA") for the Company's virtual worlds under operation in mainland China were 0.5 million in the second quarter of 2015, a decrease of 37.5% from 0.8 million in the first quarter of 2015, and a decrease of 54.5% from 1.1 million in the second quarter of 2014.
- Average revenue per user ("ARPU") for the Company's virtual worlds under operation in mainland China was approximately RMB84 in the second quarter of 2015, an increase of 78.7% as compared with RMB47 in the first quarter of 2015 and an increase of 104.9% from RMB41 in the second quarter of 2014. The increase in ARPU was due to the decrease in APA during the quarter.
- The number of downloads of the mobile applications operated by the Company was approximately 1.2 million in the second quarter of 2015, a decrease of 45.5% from 2.2 million in the first quarter of 2015 and a decrease of 25.0% from 1.6 million in the second quarter of 2014. The decrease in the number of mobile downloads was due to the absence of new mobile games released during the quarter.
"Revenues for the second quarter came in at the high-end of our previously announced guidance. As we entered into our seasonally weak quarter of the year, we were able to execute our growth plan. We remain vigilant on expenses throughout the Company until we gain more clarity on future revenue levels and product pipelines," commented Mr. Benson Wang, co-founder and chief executive officer of Taomee.
Unaudited Financial Results for the Second Quarter of 2015
Net Revenues
Total net revenues were US$8.7 million in the second quarter of 2015, a decrease of 3.6% from US$9.0 million in the first quarter of 2015 and a decrease of 17.6% from US$10.5 million in the second quarter of 2014.
Net revenues from PC business were US$6.3 million in the second quarter of 2015, an increase of 5.2% from US$6.0 million in the first quarter of 2015 and a decrease of 18.0% from US$7.7 million in the second quarter of 2014. The quarter-over-quarter (QoQ) increase was primarily contributed to the positive feedback from pre-summer promotions of the Company's virtual worlds. The year-over-year (YoY) decrease was mainly due to the decrease in active paying accounts.
Net revenues from mobile business were US$0.8 million in the second quarter of 2015, a decrease of 49.9% from US$1.5 million in the first quarter of 2015 and an increase of 10.6% from US$0.7 million in the second quarter of 2014. The QoQ decrease was primarily due to the decrease in royalty sharing of Reverse World and the absence of new mobile games released during the quarter.
