Renren Q1 Earnings Preview: Monthly User In Focus; Maintain 'Equalweight', $6 Target
By Jiang Zhang:Renren (RENN) is expected to report 1Q12 results on May 14th. The Street expects:
- Revenue: $30 million
- EPS: $0.04 per share loss
- Q2 revenue guide: $46 million
Heading into the earnings, investors should focus on monthly active user growth.Despite reporting a solid Q4 result, Renren's monthly-active-user growth was nil, which was disappointing given the fact that the company has been expanding its social networking verticals that attract users who are interested in other forms of social networking that involves fashion and travelogues.
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To address the weakness in MAU growth, Renren will likely to follow Facebook's footstep in enhancing its picture sharing function to attract users. According to company data, over 8 million photos are uploaded on Renren daily, and picture-related activities account for 40% of the platform's total user visits, making photo-sharing function a major component of creating superior user experience.Finally, investors can expectComplete Story »
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