Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi, stated, "We are pleased that our fiscal third quarter 2014 revenues exceeded the high end of our prior guidance by approximately 15% due to our stronger than expected growth in our smartphone business. During the quarter, we realized over 763 million user visits and over 128 million downloads which helped drive our financial and operational turnaround. Having achieved an over 66% quarter-over-quarter increase in smartphone revenues, our smartphone revenues now represent over 56% of total revenues. This dramatic shift has occurred within only six months since we began the monetization of our smartphone business. Our success in migrating loyal Maopao community users from feature phones to the Maopao smartphone platform was largely achieved due to our strategy of allowing them to maintain usage habits they were accustomed to on their feature phones. With this strong performance and growth momentum, we are confident that our strategies are working and our capabilities are strengthening as we aim to further monetize our Maopao smartphone platform."
"Our strategic cooperation with handset manufacturers and telecom carriers, especially by partnering with telecom carriers' physical stores where we pre-install the apps, content and offerings, has been a key driver of our strategy and will continue to be a significant entry barrier for our competitors in the fast-growth, low-cost smartphone market. By adding over 380,000 new users per day, we now have over 110 million users on the Maopao smartphone platform. In addition, our diverse content offering has become another key aspect of our successful turnaround. By enhancing the appeal of our smartphone platform to users through greater content selection, we have been able to retain and grow our overall user base. Our mission is to improve our users' experience by enabling ease-of-use for new smartphone owners, while also offering them a wide array of enjoyable and entertaining content."
John Bi, Chief Financial Officer of Sky-mobi, commented, "We are very pleased that our smartphone business continues to grow and increase as a percentage of sales above our expectations. Our smartphone business has become an increasingly important driver to our overall financial performance. We continued to strategically maintain cost controls in our legacy feature phone business while maximizing its cashflow, and prudently investing in our smartphone business. We also maintained positive cash flow during the quarter, growing our cash and deposits to over RMB527 million as of December 31, 2013."
Sky-mobi Limited (MOBI) Tops Q3 EPS by 1c
6:24 AM ET, 02/24/2014 - Street Insider
Sky-mobi Limited (NASDAQ: MOBI) reported Q3 EPS of RMB0.02, RMB0.01 better than the analyst estimate of RMB0.01. Revenue for the quarter came in at RMB115.2 million versus the consensus estimate of RMB116.6 million.
UBS analyst Eric Sheridan (Neutral, $11 PT)
"Groupon guided revenue for Q1 2014 to a range of $710mm-$760mm (vs. our current estimate of $691mm and Street estimate of $669mm). Adjusted EBITDA (no longer emphasizing CSOI) is expected to be between $20mm-40mm (vs. our current estimate of $99.8mm and Street estimate of $97.1mm). Ticket Monster & ideeli are expected to contribute ~$50mm in Q1 revenue, but have a ~$20mm negative impact on Adjusted EBITDA (integration and investment behind these businesses). Additionally, Groupon plans to make ~$25mm in incremental investments (marketing & growth) in Q1 2014."
Deutsche Bank analyst Ross Sandler (Buy, $12 PT)
"Groupon reported billings, gross profit and EBITDA that were 1%, 10% and 4% below our estimates, and guided core EBITDA in 2014 (ex-acquisitions/ex-marketing) ~$20m below our previous estimate. The Jeff Holden departure combined with mixed fundies in 4Q and acquisition dilution are blurring up the bull case, but we see some positives here. Our thesis has been based on the transition to pull/mobile driving up growth rates, and the key areas showing traction in 4Q were EMEA Local and Goods billings, offset by ROW and NA Local weakness.
At $9 after-hours and 14x EBITDA, we believe the choppiness in 4Q is largely priced in. We are trimming 2014 GP and EBITDA by 12% and 22%, and reducing our price target to $12, and are sticking with our Buy based on longer term turn-around potential."
Bank of America Merrill Lynch analyst Paul Bieber (Neutral, $11 PT)
"Groupon remains a company in transition, moving from daily deal company to a destination marketplace with very high mobile exposure. While the company has a big potential opportunity ahead, we think a turnaround may be choppy and could take longer than expected by the Street. We are lowering our PO to $11 (from $13), which is based on
16x EBITDA plus ~$1.00 cash per share and maintain our Neutral rating."
Sterne Agee analyst Arvind Bhatia (Buy, $12 PT)
"4Q results were another reminder that turnarounds take time. Results were mixed as gross billings/revenue exceeded but operating profits were lower than expected. "Local" growth decelerated due to the ongoing shift to the "Pull" marketplace and tough comparisons. EMEA performed above expectations. Management's two key focus areas in 2014 will be 1) driving billings growth through increased marketing investments, and 2) operational improvements in the "Rest of the World" (RoW) segment.
After Groupon lowered its FY14 earnings guidance, Stifel thinks many of the company's key fundamental metrics are improving, while the profit guidance missed expectations largely due to investments the company is making to drive growth. The firm trimmed its price target on the stock to $14 from $15 but keeps a Buy rating on the shares.