Highlights of the Third Quarter of 2015
-
Total net revenues were
US$10.3 million in the third quarter of 2015, an increase of 18.4% fromUS$8.7 million in the second quarter of 2015 and a decrease of 16.7% fromUS$12.3 million in the third quarter of 2014. -
Net revenues from PC business were
US$6.5 million in the third quarter of 2015, an increase of 2.1% fromUS$6.3 million in the second quarter of 2015 and a decrease of 20.1% fromUS$8.0 million in the third quarter of 2014. -
Net revenues from mobile business were
US$0.5 million in the third quarter of 2015, a decrease of 33.6% fromUS$0.8 million in the second quarter of 2015 and a decrease of 35.5% fromUS$0.8 million in the third quarter of 2014. -
Net revenues from offline business were
US$3.3 million in the third quarter of 2015, an increase of 106.6% fromUS$1.6 million in the second quarter of 2015 and a decrease of 4.5% fromUS$3.5 million in the third quarter of 2014. -
Gross profit was
US$6.6 million in the third quarter of 2015, an increase of 17.2% fromUS$5.7 million in the second quarter of 2015 and a decrease of 24.6% fromUS$8.8 million in the third quarter of 2014. -
Loss from operations was
US$0.3 million in the third quarter of 2015, as compared withUS$1.8 million loss in the second quarter of 2015 andUS$0.1 million income in the third quarter of 2014. -
Non-GAAP net income attributable to holders of ordinary shares was
US$0.1 million in the third quarter of 2015, as compared withUS$1.3 million loss in the second quarter of 2015 andUS$3.2 million income in the third quarter of 2014. -
Non-GAAP basic and diluted gain per ADS[1] were both
US$0.003 in the third quarter of 2015, as compared withUS$0.036 for both basic and diluted loss per ADS in the second quarter of 2015 andUS$0.089 andUS$0.088 , respectively, for basic and diluted gain per ADS in the third quarter of 2014.
[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
- Active paying accounts ('APA') for the Company's virtual worlds under operation in mainland
- Average revenue per user ('ARPU') for the Company's virtual worlds under operation in mainland
- The number of downloads of the mobile applications operated by the Company was approximately 1.9 million in the third quarter of 2015, an increase of 58.3% from 1.2 million in the second quarter of 2015 and a decrease of 53.7% from 4.1 million in the third quarter of 2014.
Unaudited Financial Results for the Third Quarter of 2015
Net Revenues
Total net revenues were
Net revenues from PC business were
Net revenues from mobile business were
Net revenues from offline business were
Cost of Revenues
Total cost of revenues was
PC business related cost of revenues were
Mobile business related cost of revenues were
Offline business related cost of revenues were
Gross Profit and Gross Margin
Gross profit was
Gross margin was 64.5% in the third quarter of 2015, as compared with 65.1% in the second quarter of 2015 and 71.3% in the third quarter of 2014.
Gross margin for the PC business was 79.7% in the third quarter of 2015, as compared with 79.8% in the second quarter of 2015 and 79.7% in the third quarter of 2014.
Gross margin for the mobile business was 67.5% in the third quarter of 2015, as compared with 79.5% in the second quarter of 2015 and 84.1% in the third quarter of 2014.
Gross margin for the offline business was 34.5% in the third quarter of 2015, as compared with 0.6% in the second quarter of 2015 and 48.8% in the third quarter of 2014.
Total Operating Expenses
Total operating expenses were
- Product development expenses were
US$3.1 million in the third quarter of 2015, a decrease of 7.4% fromUS$3.4 million in the second quarter of 2015 and a decrease of 20.3% as compared withUS$3.9 million in the third quarter of 2014. The QoQ decrease was primarily due to the decrease in payroll expenses, mobile gaming outsourcing expenses and toys design expenses. The YoY decrease was primarily due to the decrease in payroll expenses and toys design expenses. -
Sales and marketing expenses were
US$3.6 million in the third quarter of 2015, an increase of 63.7% fromUS$2.2 million in the second quarter of 2015 and an increase of 57.5% fromUS$2.3 million in the third quarter of 2014. The QoQ and YoY increases were primary due to the increased promotion costs for Seer V film and Seer Franchise. -
General and administrative expenses were
US$3.9 million in the third quarter of 2015, an increase of 47.9% fromUS$2.7 million in the second quarter of 2015 and a decrease of 2.8% fromUS$4.1 million in the third quarter of 2014. The QoQ increase was primarily due to the increase in indirect tax costs related to intercompany service charges and the on-going privatization related costs. The YoY decrease was primarily due to a decrease in provision for bad debt and unrecoverable payments, while partially offset by an increase in indirect tax costs related to intercompany service charges and the on-going privatization related costs.
Income/Loss from Operations
Loss from operations was
Share of Loss in Equity Method Investments
Share of loss in equity method investments was
Net Income/Loss Attributable to Holders of Ordinary Shares
Net loss attributable to holders of ordinary shares was
Basic and diluted loss per ADS were both
Non-GAAP net income attributable to holders of ordinary shares was
Non-GAAP basic and diluted gain per ADS were both
Cash and Cash Equivalents
As of
Capital Expenditures
The company had capital expenditures of
Share-based Compensation
Share-based compensation was
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in
Conference Call
The Company will host a conference call and live webcast at
The dial-in details for the live conference call are:
Conference ID: | 74393462 |
U.S. toll-free: | +1-866-519-4004 |
Hong Kong toll-free: | 800-906-601 |
International: | +65-6713-5090 |
China Mainland: | 400-620-8038 |
Passcode: | Taomee |
A live webcast and archive of the conference call will be available on the Investor Relations section of
Conference ID: | 74393462 |
International: | +61-2-8199-0299 |
China: | 400-632-2162 |
About
For more information, please visit: http://www.taomee.com/en_taomee.html
- Visit online virtual world communities at www.61.com
- Watch animations and films at http://v.61.com/
- Download mobile games and applications at http://m.61.com/
- Share with other parents and caregivers at http://mama.61.com/
Safe Harbor Statements
This press release contains statements that may constitute 'forward-looking' statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words or phrases such as 'may,' 'will,' 'expect,' 'anticipate,' 'aim,' 'estimate,' 'intend,' 'plan,' 'believe,' 'potential,' 'continue,' 'is/are likely to' or other similar expressions. Among other things, the management's quotations and outlook information contain forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Potential risks and uncertainties include, but are not limited to: the Company's business strategies and initiatives as well as business plans; future business development, results of operations and financial condition; expected changes in revenues and certain cost or expense items; expectations with respect to increased revenue growth and the Company's ability to sustain profitability; the Company's services and products under development or planning; the Company's ability to attract users and further enhance the Company's brand recognition; and trends and competition in the children's entertainment and media market and industry, including those for online entertainment. Further information regarding these and other risks is included in
For further information, please contact
+86-21-61280056 Ext 8651
ir@taomee.com
Taomee Holdings Limited - Unaudited Consolidated Balance Sheets | |||
In USD | In USD | ||
September 30, | June 30, | ||
2015 | 2015 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 72,335,398 | $ 70,488,576 | |
Accounts receivable, net | 3,260,114 | 3,123,668 | |
Inventory | 504,624 | 541,530 | |
Prepaid Income tax | 714,881 | 512,773 | |
Due from related parties | 3,450,749 | 336,777 | |
Prepayments and other current assets | 4,756,476 | 7,264,738 | |
Deferred tax assets, current | 5,649,123 | 5,878,004 | |
Total current assets | 90,671,365 | 88,146,066 | |
Investment in equity investees | 14,352,315 | 16,850,025 | |
Property and equipment, net | 1,594,157 | 1,719,120 | |
Prepayments for land use rights and building | 4,772,609 | 4,965,977 | |
Acquired intangible assets | 893,314 | 991,164 | |
Other assets | 1,176,179 | 2,075,533 | |
Total assets | $ 113,459,939 | $ 114,747,885 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 1,069,757 | $ 1,182,460 | |
Advance from customers | 7,827,244 | 7,087,820 | |
Due to related parties | 636,554 | 315,798 | |
Deferred revenue | 12,090,722 | 12,382,149 | |
Deferred tax liabilities, current | 672,183 | 699,417 | |
Accrued expenses and other current liabilities | 5,019,510 | 4,205,309 | |
Total current liabilities | 27,315,970 | 25,872,953 | |
Equity | |||
Taomee Holdings Limited shareholders' equity | |||
Ordinary shares ($0.00002 par value; | 15,075 | 15,045 | |
Treasury stock (at cost) | (12,075,318) | (12,075,318) | |
Additional paid-in capital | 77,305,383 | 77,019,974 | |
Retained earnings | 19,302,289 | 19,498,088 | |
Accumulated other comprehensive income | 1,531,581 | 4,241,010 | |
Taomee Holdings Limited shareholders' equity | 86,079,010 | 88,698,799 | |
Noncontrolling interests | 64,959 | 176,133 | |
Total equity | $ 86,143,969 | $ 88,874,932 | |
TOTAL LIABILITIES AND EQUITY | $ 113,459,939 | $ 114,747,885 |
Taomee Holdings Limited - Unaudited Consolidated Statements of Operations | ||||||||||||
In USD, except for share data For three months ended | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
Revenues: | ||||||||||||
PC business, net | $ 6,444,833 | $ 6,310,923 | $ 8,066,156 | |||||||||
Mobile business, net | 508,820 | 766,061 | 788,763 | |||||||||
Offline business, net | 3,330,063 | 1,611,865 | 3,488,097 | |||||||||
Total net revenues | 10,283,716 | 8,688,849 | 12,343,016 | |||||||||
Cost of revenues | ||||||||||||
PC business | (1,305,333) | (1,271,940) | (1,635,617) | |||||||||
Mobile business | (165,214) | (157,322) | (125,648) | |||||||||
Offline business | (2,179,659) | (1,601,830) | (1,785,338) | |||||||||
Total cost of revenues | (3,650,206) | (3,031,092) | (3,546,603) | |||||||||
Gross profit | 6,633,510 | 5,657,757 | 8,796,413 | |||||||||
Operating income (expenses): | ||||||||||||
Product development | (3,139,201) | (3,391,747) | (3,941,208) | |||||||||
Sales and marketing | (3,590,705) | (2,193,696) | (2,280,113) | |||||||||
General and administrative | (3,946,903) | (2,668,029) | (4,059,122) | |||||||||
Other operating income, net | 3,729,954 | 808,659 | 1,585,129 | |||||||||
Total operating expenses | (6,946,855) | (7,444,813) | (8,695,314) | |||||||||
Income ( Loss ) from operations | (313,345) | (1,787,056) | 101,099 | |||||||||
Interest income | 213,218 | 456,469 | 642,387 | |||||||||
Other income, net | 198,720 | 59,810 | 186,162 | |||||||||
Impairment loss on investment in | - | - | (1,400,000) | |||||||||
Income (Loss) before income | 98,593 | (1,270,777) | (470,352) | |||||||||
Income tax benefit | 113,402 | 7,050 | 1,708,088 | |||||||||
Share of loss in equity method | (518,968) | (479,649) | (104,567) | |||||||||
Net income (loss) | (306,973) | (1,743,376) | 1,133,169 | |||||||||
Less: Net loss attributable to non- | (111,174) | (133,314) | (32,574) | |||||||||
Net income (loss) attributable to | $ (195,799) | $ (1,610,062) | $ 1,165,743 | |||||||||
Earnings (Loss) per ADS | ||||||||||||
-Basic | $ (0.006) | $ (0.046) | $ 0.033 | |||||||||
-Diluted | $ (0.006) | $ (0.046) | $ 0.033 | |||||||||
Weighted average number of | ||||||||||||
- Basic | 706,654,890 | 706,345,031 | 708,630,255 | |||||||||
- Diluted | 706,654,890 | 706,345,031 | 716,521,745 | |||||||||
Weighted average number of | ||||||||||||
- Basic | 35,332,745 | 35,317,252 | 35,431,513 | |||||||||
- Diluted | 35,332,745 | 35,317,252 | 35,826,087 | |||||||||
Taomee Holdings Limited - Unaudited Consolidated Other Comprehensive Income | |||||
In USD, | |||||
For three months ended | |||||
September 30, | June 30, | September 30, | |||
2015 | 2015 | 2014 | |||
Net income/(loss) | |||||
$ (306,973) | $ (1,743,376) | $ 1,133,169 | |||
Other comprehensive income/(loss), net of tax | |||||
Foreign currency translation adjustments | 2,709,429 | 319,432 | 140,967 | ||
Comprehensive income/(loss) | 2,402,456 | (1,423,944) | 1,274,136 | ||
Comprehensive loss attributable to noncontrolling interest | (111,174) | (133,314) | (32,574) | ||
Comprehensive income/(loss) attributable to Taomee Holdings | $ 2,513,630 | $ (1,290,630) | $ 1,306,710 |
Taomee Holdings Limited - Reconciliation of Non-GAAP and GAAP Results | ||||||
In USD, except for share data For three months ended | ||||||
September 30, | June 30, | September 30, | ||||
2015 | 2015 | 2014 | ||||
Reconciliation from Non-GAAP | ||||||
Non-GAAP net income (loss) | $ 89,610 | $ (1,259,992) | $ 3,160,468 | |||
Share-based compensation | (285,409) | (350,070) | (594,725) | |||
Impairment loss on investment in an | - | - | (1,400,000) | |||
GAAP net income (loss) attributable to | $ (195,799) | $ (1,610,062) | $ 1,165,743 | |||
Non-GAAP income (loss) per ADS | ||||||
-Basic | $ 0.003 | $ (0.036) | $ 0.089 | |||
-Diluted | $ 0.003 | $ (0.036) | $ 0.088 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/taomee-reports-third-quarter-2015-unaudited-financial-results-300181730.html
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