NQ Mobile Inc Stock Price Drops On Q1 Financial Results

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The shares of NQ Mobile declined after the company reported its unaudited financial results for the first quarter. The company’s stock price was $3.56 per share, down by more than 4% at the time of this writing, around 3:19 in the afternoon in New York.

NQ Mobile financial results

NQ Mobile posted non-GAAP earnings of $0.45 million or $0.00 per ADS, in line with the expectations of Wall Street analysts for the first quarter. The Chinese mobile internet service provider generated net revenues of $89.2 million, higher than the $85 million consensus estimate.

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During the quarter, NQ Mobile said its net loss attributable to the company was $17 million or $0.19 per ADS. The company said its performance improved compared with its net loss of $21.7 million or $0.34 per ADS in the same period last year.

Dr. Vincent Wenyong Shi, Chairman of NQ Mobile said, “We are encouraged to see our performance in the first quarter of 2015. The management team remains committed to executing our business strategies and we are off to a good start.”

Dr. Shi added that NQ Mobile’s topline growth remained strong. The company’s efforts to increase monetization from its traffic-based mobile entertainment businesses are starting to deliver results. “We look forward to the future while maintaining our focus on executing and delivering results,” he said.

According to NQ Mobile, its gross margin in the first quarter was 39% excluding the impact from its enterprise mobility businesses and costs associated with an increase in sales.

The company has 175.4 million monthly active users as of March 31, 2015. It ended the quarter with $270.5 million cash, cash equivalents, term deposits, and restricted cash. Its net cash inflow was $9.1 million.

NQ Mobile capital returns & business outlook

During the quarter, the board of directors of NQ Mobile approved the repurchase of its shares worth as much as $80 million over the next 12 months depending on market conditions.  NQ Mobile already bought back 2.7 million shares worth around $11.6 million to date.

NQ Mobile expected to deliver net revenues in the range of $102 million to $103 million for the second quarter and around $455 million to $460 million for the full fiscal 2015.

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