Chinese social networking company Renren Inc. (NYSE: RENN) reported fourth-quarter and full-year earning this morning with a surprising upside on profits. The company is one of many Internet and social networking firms in China. The biggest and probably best known is Baidu Inc. (NASDAQ: BIDU), China’s search leader, and other social networking companies like Tudou Holdings Ltd. (NASDAQ: TUDO), Sina Corp. (NASDAQ: SINA), and Sohu.com Inc. (NASDAQ: SOHU).
Renren posted earnings per ADS of $0.11, compared with expectations of a loss of -$0.02 per ADS. Revenue jumped 57% year-over-year to $31.8 million, in line with the company’s own forecast and the consensus estimate.
Renren’s online advertising revenue grew 66% year-over-year although gross margins narrowed from 80% to 71%.
The company said that 50% of its traffic comes from mobile devices and that it plans to shift its emphasis to mobile apps.
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