Renren Drops 12%: Q3 Revenue Misses, Q4 View Light

Shares of Chinese social networking firm Renren (RENN), sometimes called the “Facebook of China,” are down 63 cents, or 12%, at $4.45 after the company this afternoon reported disappointing Q3 revenue and a disappointing Q4 outlook.

Revenue in the three months ended in September totaled $34.2 million, missing the consensus $35.08 million.

EPS of 3 cents beat the consensus 1-cent estimate, however.

For the current quarter, the company sees revenue in a range of $31 million to $33 million, below the consensus $35.47 million.

CEO Joseph Chen said he was “pleased that by the end of the third quarter, we have surpassed our full-year user growth target set in the beginning of this year, despite intensified competition in China’s social networking and social media sector.”

CFO Hui Huang said the company plans “in the coming quarters to significantly increase the level of investment to cultivate our growing user base and their engagement with Renren products and services.”

Renren will host a conference call with analysts at 5 pm, Eastern, and you can listen in by dialing 718-354-1231 in the U.S., +852-2475-0994 in Hong Kong, +86 800-819-0121 in China, and + 65-6723-9381 from other international locations, and using the passcode “Renren.”

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