Jiayuan.com's financial report: Jiayuan.com's net income in Q4 2012 was RMB 110.5 million, a year-on-year increase of 24.8%.

On February 28, 2013, Jiayuan.com (trading code: DATE) released its financial report today. The report shows that Jiayuan.com's net income in the fourth quarter was 110.5 million yuan, a year-on-year increase of 24.8%; net profit was 17.2 million yuan (about 2.8 million US dollars), and the net loss in the same period last year was 1.2 million yuan.

The average number of monthly active users of Jiayuan.com in the fourth quarter of 2012 was 5,123,265, compared with 5,179,713 in the fourth quarter of 2011 and 5,242,237 in the third quarter of 2012. The average number of monthly paying users of Jiayuan.com in the fourth quarter of 2012 was 1,233,466, compared with 1,172,159 in the fourth quarter of 2011 and 1,272,185 in the third quarter of 2012.

The average monthly revenue per paying user (ARPU) of Jiayuan.com's online services was RMB 26.5 in the fourth quarter of 2012, compared with RMB 21.5 in the same period of 2011 and RMB 26.5 in the third quarter of 2012.

Jiayuan.com's Q4 revenue was 110.5 million yuan, down 3% from the previous quarter

Jiayuan.com's net revenue in the fourth quarter of 2012 was RMB110.5 million (approximately USD17.7 million), a year-on-year increase of 24.8% from RMB88.6 million in the fourth quarter of 2011. The increase in net revenue was mainly due to the strong growth of Jiayuan.com's online services. Due to the seasonal decline in user activity, Jiayuan.com's net revenue in the fourth quarter decreased by 3% from RMB113.5 million in the third quarter.

In the fourth quarter of 2012, Jiayuan.com's online service net revenue was RMB 98.1 million (approximately US$15.7 million), accounting for 88.7% of total net revenue, a year-on-year increase of 29.6% from RMB 75.7 million in the fourth quarter of 2011, and a slight quarter-on-quarter decrease from US$101.1 million in the third quarter of 2012.

The year-on-year growth in Jiayuan.com's online service net revenue was mainly due to the increase in paying users and the increase in the average monthly revenue contributed by each paying user; the month-on-month decline in Jiayuan.com's online service net revenue was mainly due to the decline in user activity in winter.

In the fourth quarter of 2012, Jiayuan.com's net revenue from offline activities and high-end matchmaking services was RMB 12.4 million (approximately US$2 million), accounting for 11.3% of total net revenue, a year-on-year decrease of 2.0% from RMB 12.7 million in the fourth quarter of 2011 and a quarter-on-quarter increase of 2.9% from RMB 12.1 million in the third quarter of 2012.

The year-on-year decline in net revenue from Jiayuan.com's offline activities and high-end matchmaking services was mainly due to the company's internal reorganization of its offline business in the first half of 2012; the month-on-month increase in net revenue from Jiayuan.com's offline activities and high-end matchmaking services was mainly due to the recovery of high-end matchmaking services.

Jiayuan.com's Q4 costs were 38.2 million yuan, up 29.4% year-on-year

Jiayuan.com's cost of revenue in the fourth quarter of 2012 was RMB 38.2 million (approximately US$6.1 million), a year-on-year increase of 29.4% from RMB 29.6 million in the fourth quarter of 2011 and a quarter-on-quarter decrease from RMB 39.6 million in the third quarter of 2012. Jiayuan.com's year-on-year increase in cost of revenue is consistent with the strong growth of its online services.

Jiayuan.com's Q4 gross profit was RMB 72.3 million, with a gross profit margin of 65%.

Jiayuan.com's gross profit in the fourth quarter of 2012 was RMB 72.3 million (approximately US$11.6 million), up 22.5% year-on-year from RMB 59 million in the fourth quarter of 2011 and down from RMB 73.9 million in the third quarter of 2012. Jiayuan.com's gross profit margin in the fourth quarter of 2012 was 65%.

Jiayuan.com's Q4 expenses were 59.62 million yuan, down 6% year-on-year

Jiayuan.com's expenses in the fourth quarter of 2012 were RMB 59.62 million, up 4% from the previous quarter and down 6% from the same period last year. Among them, Jiayuan.com's sales and marketing expenses in the fourth quarter of 2012 were RMB 40.7 million (approximately US$6.5 million), down 5.4% from RMB 43 million in the fourth quarter of 2011 and up 8.6% from RMB 37.5 million in the third quarter of 2012.

The year-on-year decline in Jiayuan.com's sales and marketing expenses was mainly due to a marketing campaign in the corresponding quarter of 2011; the quarter-on-quarter increase in Jiayuan.com's sales and marketing expenses was mainly due to increased marketing activities. Jiayuan.com's general and administrative expenses in the fourth quarter of 2012 were RMB13.9 million (approximately US$2.2 million), a year-on-year decline of 13.0% from RMB16.0 million in the fourth quarter of 2011 and a quarter-on-quarter decline of 8.6% from RMB15.2 million in the third quarter of 2012.

The year-on-year decline in Jiayuan.com's general and administrative expenses was mainly due to a decrease in the year-end bonus accrued in 2012 and better cost control measures; the month-on-month decline in Jiayuan.com's general and administrative expenses was mainly due to better cost control measures.

Jiayuan.com's R&D expenditures in the fourth quarter of 2012 were RMB 5 million (approximately US$797,000), an increase of 14.9% from RMB 4.3 million in the fourth quarter of 2011 and 13.0% from RMB 4.4 million in the third quarter of 2012. The increase in Jiayuan.com's R&D expenditures was mainly due to the company's implementation of the market segmentation strategy and continued investment in the R&D of online and wireless services, which led to the expansion of the R&D team.

Jiayuan.com's Q4 operating profit was RMB 12.7 million, with an operating profit margin of 11%.

Jiayuan.com's operating profit in the fourth quarter of 2012 was RMB 12.7 million, compared with an operating loss of RMB 4.3 million in the fourth quarter of 2011 and an operating profit of RMB 16.7 million in the third quarter of 2012. The year-on-year growth in Jiayuan.com's operating profit was mainly due to the strong growth of online services and the company's reduction in operating expenses; the quarter-on-quarter decline in Jiayuan.com's operating profit was mainly due to the increase in sales and marketing expenses.

Excluding equity incentive expenses (not in accordance with U.S. GAAP), Jiayuan.com's operating profit in the fourth quarter was RMB 17.4 million (approximately US$2.8 million), compared with an operating loss of RMB 322,000 in the fourth quarter of 2011 and an operating profit of RMB 21 million in the third quarter of 2012.

Jiayuan.com's Q4 net profit was 17.2 million yuan, up 8% from the previous quarter

The net profit attributable to Jiayuan.com in the fourth quarter of 2012 was RMB 17.2 million (approximately USD 2.8 million), while the net loss attributable to Jiayuan.com in the fourth quarter of 2011 was RMB 1.2 million and the net profit attributable to Jiayuan.com in the third quarter of 2012 was RMB 15.9 million. Jiayuan.com's net profit improved significantly compared with the same period of the previous year and increased by 8% compared with the previous quarter.

As of December 31, 2012, Jiayuan.com held a total of RMB 490.7 million (approximately US$78.8 million) in cash and cash equivalents and short-term deposits. In the fourth quarter of 2012, Jiayuan.com had a net cash outflow of RMB 7.6 million (approximately US$1.2 million) from operations, mainly for prepayment of service and advertising fees to third-party service providers.