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China Finance Online Q1 net revenues down 41%

Staff writer ▼ | July 11, 2015
China Finance Online announced its unaudited financial results for the first quarter ended March 31, 2015. Net revenues were $13.7 million, a decrease of 41% from $23.2 million for the corresponding period in 2014.
China Finance Online
China Finance Online   Net revenues were $13.7 million
The company's net revenues are categorized under: revenues from financial services, which include brokerage-related and precious metals trading services; revenues from financial information and advisory business, which include subscription services from individual and institutional customers; and revenues from advertising services.

During the first quarter of 2015, revenues from financial services, financial information and advisory business and advertising services contributed 69%, 16% and 15% of our net revenues, respectively, compared with 78%, 14% and 8%, respectively, for the corresponding period in 2014.

Revenues from financial services were $9.5 million, a decrease of 47% from $18.0 million in the first quarter of 2014 and a decrease of 28% from $13.3 million in the fourth quarter of 2014. As iTouGu business is still in development stage, the company plans to continue to invest to grow its user base before engaging actions on monetization.

The decrease in precious metal trading service was largely due to the market conditions in the first quarter. Revenues from financial information and advisory business were $2.2 million, a decrease of 32% from $3.2 million in the first quarter of 2014 and a decrease of 12% from $2.5 million in the fourth quarter of 2014.

Revenues from advertising were $2.0 million, an increase of 11% from $1.8 million in the first quarter of 2014 and a decrease of 30% from $2.9 million in the fourth quarter of 2014.

Gross profit was $10.3 million, a decrease of 42% from $17.8 million in the first quarter of 2014 and a decrease of 29% from $14.4 million in the fourth quarter of 2014. Gross margin in the first quarter for 2015 was 75.0% compared with 76.8% in the first quarter for 2014 and 76.6% in the fourth quarter for 2014.

General and administrative ("G&A") expenses were $3.0 million, a decrease of 27% from $4.0 million in the first quarter of 2014, and a decrease of 11% from $3.3 million in the fourth quarter for 2014.

Sales and marketing ("S&M") expenses were $8.1 million, a decrease of 33% from $12.1 million in the first quarter of 2014, primarily due to lower marketing expenses and sales commissions, and a decrease of 16% from $9.7 million in the fourth quarter for 2014.

Research and development (R&D) expenses were $2.8 million, an increase of 10% from $2.6 million in the first quarter of 2014 and a decrease of 17% from $3.4 million in the fourth quarter for 2014.

The company expects to continue to invest in its iTouGu mobile platform to achieve the company's long term strategic plan of providing retail investors one-stop solutions for their investment needs.

Loss from operations was $3.5 million, compared with a loss of $0.6 million in the first quarter of 2014 and a loss of $1.8 million in the fourth quarter of 2014.

Net loss attributable to China Finance Online was $1.3 million, compared with a loss of $2.0 million in the first quarter of 2014 and a net income of $3.6 million in the fourth quarter of 2014.

Fully diluted loss per ADS was $0.06 for the first quarter of 2015, compared with a loss of $0.09 for the first quarter of 2014. Basic and diluted weighted average number of ADS for the first quarter of 2015 were 22.1 million. Each ADS represents five ordinary shares of the company.

As of March 31, 2015, total cash and cash equivalents were $17.2 million, compared with $32.5 million as of December 31, 2014.

Total shareholders' equity of China Finance Online was $63.3 million as of March 31, 2015.


 

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