NetQin's Q1 net income increased by 11.8% year-on-year, and its entertainment business has begun to show results
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In the early hours of this morning, NetQin officially released its unaudited financial report for the first quarter of 2015 ending March 31. The report shows that according to the US Generally Accepted Accounting Principles (GAAP), NetQin's net revenue in the first quarter of 2015 was US$89.2 million, an increase of 11.8% compared with US$79.8 million in the same period last year; its net loss was US$17 million, a 21.3% reduction compared with the net loss of US$21.7 million in the same period last year. This time, the year-on-year revenue growth of more than 10% is considered to be a corporate policy adjustment by NetQin to shift the focus of its corporate development strategy from mobile security business to entertainment business mainly based on advertising and games, which has begun to show the expected effect. Games and social networking become the mainstays, and entertainment business is beginning to show results In 2013, NetQin gradually shifted its development focus from personal security business to underlying technical support and basic services. Subsequently, in order to support business transformation, it acquired and invested in entertainment companies and products such as Xiuse, Feiliu, Weile, and Music Radar, gradually enriching its mobile business. After adjustment and development, the adjustment of key businesses helped NetQin smoothly pass the transformation period. According to the financial report, in the first quarter of 2018, the revenue growth from mobile games and mobile social video live streaming platforms partially offset the decrease in mobile security business revenue. Among them, the revenue from mobile games increased by 76.7% year-on-year, mainly due to the rapid expansion of Feiliu Games in the domestic and overseas markets; and the rapid growth of Xiuse mobile social video live streaming business directly led to the increase in revenue from this business. In the adjustment of the entire business line and the transformation of corporate strategy, mobile advertising is also one of the key businesses that NetQin continues to focus on. According to the financial report, NetQin's advertising revenue in the first quarter was US$17.5 million, up 4.3% from US$16.8 million in the same period last year. Prior to this, advertising revenue in fiscal year 2014 was US$72.9 million, up 99.1% from US$36.6 million in fiscal year 2013. The increase in revenue was due to the continued promotion of commercial operations, the advertising business of Wanpu and Fanyue acquired by the company, and the successful diversion of third-party applications. In addition, the enterprise mobile application business revenue was US$46 million, up 33.6% from US$34.4 million in the same period last year, mainly due to the company's high-quality Apple product distribution channels. With the release and listing of several new products by Apple in the fourth quarter of 2014, the seasonal sales volume increased, and the revenue of this part of NetQin increased significantly this quarter. Adhere to and execute existing strategies to maintain profitable growth In addition to the detailed financial report for the first quarter of 2015, NetQin also announced its performance outlook for the full year 2015. The financial report shows that the net revenue for the second quarter of 2015 is expected to be between US$102 million and US$103 million, an increase of 25.0% to 26.2% over the same period last year; the net revenue for the full year of 2015 will be between US$455 million and US$460 million, an increase of 36.9% to 38.4% over the full year of 2014. Regarding the release of NetQin's first quarter 2014 financial report, Shi Wenyong, NetQin's Chairman, COO and Acting CFO, said: "The company's first quarter performance is encouraging. The management team has been committed to executing the established strategy, which has opened a good start for 2015. The company's revenue has maintained strong growth. At the same time, we have also seen that the efforts to enhance the commercial value of the traffic-based mobile entertainment business have begun to show results. We look forward to better adhering to and executing the existing strategy in the future and achieving good results through continued efforts." It is understood that since last year, Feiliu has made good progress in overseas business, and has set up localized distribution teams or identified strategic partners in countries and regions such as South Korea, Taiwan, Thailand, Japan, and Russia. As a mobile interactive social platform, Xiuse has also made contributions to NetQin's business, mainly providing users with online interviews, beauty live broadcasts, videos and other services. With the support of millions of users, its profit model is generally optimistic about the outside world. According to Zhou Bin, vice president of strategy and investor relations at NetQin, in 2014, the number of daily active users and revenue of Feiliu, a wholly-owned subsidiary of NetQin, both increased by more than 100% compared with the same period last year, and Xiuse accounted for more than 10% of mobile value-added services in the fourth quarter of 2014. Through investments and acquisitions over the past two years, NetQin has now formed five areas: mobile security , mobile games, mobile advertising, enterprise mobility, and mobile healthcare. Although the financial report performance exceeded expectations and the new business brought NetQin considerable revenue, transformation is not a one-day job. If NetQin wants to stand out again in the complex industry environment, it needs to continue to deepen the promotion of new businesses.As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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