NQ Mobile Inc (NQ) Earnings: Q4 EPS of $0.22; Revenue of $67.90M

Updated on
  • games on the iOS platform and 69 games on the Android platform as of December 31, 2013.  Most of these games were developed by third parties but published and operated by FL Mobile. FL Mobile had 18 games rank in the top 100 on iOS during the 12 month period of 2013. Average Daily Active User accounts (DAU) for FL Mobile’s games reached 160,138 in the fourth quarter of 2013, up from 127,448 in the previous quarter.
(In millions) As of December As of December As of September
31, 2013 31, 2012 30, 2013
Cumulative registered user accounts of
consumer mobile security products
480.8 283.4 426.6
FL Mobile cumulative registered user accounts 106.9 67.4 98.4
Total cumulative registered user accounts 587.7 350.8 525
(In millions)  

Three months

 

Three months

 

Three months

ended December ended December ended September
31, 2013 31, 2012 30, 2013
Average monthly active user accounts of
consumer mobile security products
136.0 97.7 133.0
FL Mobile average monthly active user accounts 20.4 12.5 19.1
Total average monthly active user accounts 156.4 110.2 152.1
Average monthly premium user accounts 15.6 N/A 14.8

 

“I am pleased to report that we once again achieved record revenues in the fourth quarter of 2013 and for the full year,” commented Dr. Henry Lin, Chairman and Co-Chief Executive Officer of NQ Mobile.  “The strength of our platform business model has delivered tangible results. Even though our current reported operating metrics do not include many of emerging products and services such as NQ Live, Music Radar and our expanding advertising platform, we are seeing extremely strong user acquisition and engagement. I am very excited about the growth prospects across our consumer and enterprise businesses.  We look forward to another record year in 2014.”

“We remain focused on executing the strategy that we have previously laid out,” added Omar Khan, Co-Chief Executive Officer of NQ Mobile, "I am so proud of the NQ Mobile team for their dedication and commitment.  The foundation has been set and we are excited for the future as we reach for new heights within the mobile revolution."

Fourth Quarter 2013 Results

Revenues[8]

Net revenues in the fourth quarter of 2013 were $67.9 million, up 126.0% year-over-year and up 25.2% sequentially.

Mobile Value Added Service revenues, which include Consumer Mobile Security revenues and Mobile Games revenues, increased 35.4% year-over-year and 0.9% sequentially to $27.1 million in the fourth quarter of 2013. The increase in Mobile Value Added Service revenues was primarily due to the growth of Mobile Game revenues and partially offset by the decline of Consumer Mobile Security revenues as we migrate the monetization of security and productivity applications into advertising. The increase in Mobile Games revenues was primarily due to the rapid user growth of FL Mobile’s game platform and the launch of new games in the fourth quarter of 2013.

Advertising revenues were $16.7 million for the fourth quarter of 2013, up 532.4% year-over-year and 51.5% sequentially. The robust growth was due to increased monetization through advertising and promotional revenue in the form of 3rd party application referrals through our mobile security products, mobile games and our advertising network platforms.

Enterprise Mobility revenues increased 53.1% sequentially to $23.5 million in the fourth quarter of 2013 due to the strong growth in the enterprise business and new customer gains.

Other revenues in the fourth quarter of 2013 were $0.5 million, down 43.1% sequentially. Other revenues are generated primarily by providing technical contract services to third parties and thus the revenues fluctuate as such since the business is driven by individual projects.

Cost of Revenues

Cost of revenues in the fourth quarter of 2013 was $34.7 million, up 259.1% year-over-year and 58.4% sequentially. The year-over-year increase was primarily due to the increased hardware procurement cost for NationSky’s Enterprise Mobility business, amortization of intangible assets resulted from acquisitions, increased revenue sharing with content

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