Renren Stock Gains After-hours Boost on Improved Financials for 2018
Renren, now primarily a used auto sales company, reported income for the full year 2018 in its report today, sending shares higher after markets closed.
The stock of Renren Inc. (NYSE: RENN) gained more than 5 percent in after-hours trading Tuesday after the company posted strong revenue and a narrowed loss for the fourth quarter and full year.
The Beijing-based company, which last year transitioned to a used auto sales business, said in a statement after markets closed Tuesday that its revenue in the three months through December grew 36 percent year-over-year, to $122.2 million.
Net loss was $23.3 million, or 5 cents per American depositary share, compared with a loss of $54.3 million in the same period of 2017.
For the full year, Renren posted revenue of $498.2 million, an increase of 185 percent from the full 2017. The majority of the revenue, $467.2 million, came from auto sales. The rest was generated from Renren's internet value-added services, according to the report.
The company also turned to profit for the full year. It reported income of $72.5 million, or 7 cents per ADS, for 2018, in contrast to a loss of $110.4 million for the preceding year.
In response to the announcement, the stock of Renren, which closed at $1.47 per share, rose 8 cents in after-hours trading, to $1.55.
Looking ahead, Renren said it expects to generate revenue in the range of $110 million to $115 million in the first quarter of 2019.
Formerly one of the most popular social networks in China, Renren decided to sell the platform, renren.com, last year, as one of the measures taken in the transition of its focus on auto sales.