The complete break down of NQ earnings..Looks great!
:42PM NQ Mobile reports EPS in-line, beats on revs; guides Q4 revs above consensus (NQ) 14.31 +0.82 : Reports Q3 (Sep) earnings of $0.28 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.28; revenues rose 110.1% year/year to $54.2 mln vs the $51.19 mln consensus. Co issues upside guidance for Q4, sees Q4 revs of $62-63 mln vs. $61.84 mln Capital IQ Consensus Estimate.
Mobile Value Added Service revenues, which include Consumer Mobile Security revenues and Mobile Games revenues, increased 46.4% y/y and 0.3% q/q. The slight decrease in Consumer Mobile Security subscription revenues was primarily due to monetization expansion to mobile advertising and mobile games in domestic China market. Revenue contribution from overseas users accounted for 59.1% of Consumer Mobile Security revenues compared with 54.1% in prior year. 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 third quarter of 2013.
Advertising revenues were $11.0 million for the third quarter of 2013, up 99.7% sequentially. The robust growth was due to increased monetization through advertising and promotional revenue through 3rd party application referrals.
Enterprise Mobility revenues (including both hardware sales and services) increased 243.0% year-over-year and 90.6% sequentially to $15.3 million; increase due to the strong growth in the enterprise business and new customer gains.
Gross profit was $32.3 million, up 80.8% y/y and 17.0% q/q.
Gross margin was 59.5% in the third quarter of 2013, compared with 69.2% in the same quarter a year ago and 66.7% in the previous quarter. The decline of the gross margin was mainly due to the increased revenue portion of the enterprise mobility business NationSky, which has a much lower margin.
Non-GAAP operating income increased 150.1% year-over-year to $17.1 million. Non-GAAP net income increased 113.8% y/y to $17.4 million. GAAP Loss from operations was $3.1 million and Net Loss attributable to NQ Mobile was $2.7 million, mainly due to $20.1 million in share-based compensation expense in the third quarter of 2013, comparing with an operating loss of $1.0 million and net income attributable to NQ Mobile of $0.3 million in this corresponding period of 2012.
Days Sales Outstanding (DSO) were 115 in the third quarter of 2013, down 20.7% from 145 in the previous quarter.
Deferred revenue was $19.2 million at the end of third quarter of 2013, up 9.9% from $17.4 million at the end of the second quarter of 2013.
Cumulative registered user accounts were 426.6 million as of September 30, 2013, compared with 241.6 million as of September 30, 2012 and 372.2 million as of June 30, 2013.
Average monthly active user accounts for the quarter ended September 30, 2013 were 133.0 million, compared with 84.5 million for the corresponding period of 2012 and 122.2 million for the quarter ended June 30, 2013.
Average monthly premium user accounts for the quarter ended September 30, 2013 were 14.8 million, compared with 11.3 million for the quarter ended June 30, 2013.
FL Mobile operated and distributed a total of 22 games on iOS and 52 games on Android platforms as of September 30, 2013.
Beijing NationSky Network Technology Co., Ltd, Inc. ("NationSky") had over 30 Mobile Device Management (MDM) enterprise customers and over 1,250 total enterprise customers as of September 30, 2013.