NetQin released its 2015 Q1 financial report, with net revenue exceeding expectations and an increase of 11.8% year-on-year

On May 20, Beijing time, NetQin released its unaudited financial report for the first quarter of 2015. As of March 31, 2015, the net income for the first quarter of fiscal year 2015 reached US$89.2 million, an increase of 11.8% compared with the revenue of US$79.8 million in the same period last year. The average number of monthly active users was 175.4 million, including user accounts such as Showself, NQ Live and Music Radar.

Revenue in the first quarter of 2015 increased by 11.8% year-on-year

Revenue for the first quarter of 2015 was $89.2 million, exceeding the previous guidance of between $85 million and $86 million and up 11.8% from $79.8 million in the same period last year.

The revenue growth from mobile games and mobile social video live streaming platforms partially offset the decrease in mobile security business revenue. Mobile game revenue increased by 76.7% year-on-year, mainly due to the rapid expansion of Feiliu Games in the domestic and overseas markets. In addition, the rapid growth of Xiuse mobile social video live streaming business directly led to the increase in revenue of this business.

Advertising revenue was $17.5 million, up 4.3% from $16.8 million in the same period last year. The increase in revenue was due to the continued advancement of commercial operations, mainly through advertising business from Wanpu and Fanyue and successful third-party application traffic diversion.

In addition, enterprise mobile application business revenue was $46 million, up 33.6% from $34.4 million in the same period last year. This was mainly due to the company's high-quality Apple product distribution channels. The increase in seasonal sales brought about by the launch of several new products by Apple in the last quarter of 2014 led to a significant increase in this part of revenue this quarter.

Performance Outlook: Net revenue for 2015 is expected to increase by nearly 40%

The financial report shows that the company expects net revenue for the full year of 2015 to be between $455 million and $460 million, an increase of 36.9% to 38.4% over the full year of 2014. Net revenue for the second quarter of 2015 is expected to be between $102 million and $103 million, an increase of 25.0% to 26.2% over the same period last year.

Shi Wenyong, Chairman, COO and Acting CFO of NetQin, said: "The company's first quarter results are encouraging. The management team has been committed to executing the established strategy and 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."

In addition, the financial report also disclosed other important matters, including the board of directors' announcement of the appointment of Mr. Xu Zemin as the company's CEO, effective May 1, 2015.