Quepasa Announces 2 MM+ Installs of Its First Social Gaming Title

Rapid Growth and Strong Engagement Metrics for Cidade Maravilhosa Drive Cross-Platform Marketing Push, Updated User Acquisition Strategy for Quepasa.com

Marketwired

WEST PALM BEACH, FL--(Marketwire - 07/06/11) - Quepasa Corporation (AMEX:QPSA - News), owner of popular Latino online social network Quepasa.com and social game development studio Quepasa Games, today announced that its first proprietary social gaming title had achieved over two million installs. Cidade Maravilhosa, or "Wonderful City - Rio," is a city-building game that is localized for Latin American audiences, inviting users to build their own Rio de Janeiro. Quepasa launched the game on Quepasa.com and Orkut in mid-May, and on Facebook in mid-June.Cidade Maravilhosa has produced consistently strong metrics in terms of both user acquisition and retention. As of June 30th, the game's global install base totaled over two million members, which represents 73% growth on a month over month basis. This includes over 780,000 DAUs, or Daily Active Users, and over 2.9MM MAUs, or Monthly Active Users. The ratio of these two metrics, or DAU/MAU, is a widely accepted measure of a game's "stickiness" and monetization potential. At 27%, Cidade Maravilhosa's DAU/MAU is well over the 15-20% benchmark used to indicate a game that is engaging users well, with engaged users tending to monetize better. (http://www.insidesocialgames.com/2009/10/27/the-sticky-factor-creating-a-benchmark-for-social-gaming-success/)"We have been thrilled to see such great momentum build around Cidade Maravilhosa in such a short time frame," commented Quepasa CEO, John Abbott. "We see this as a real testament to our ability to capitalize on a fast-follower strategy in the Latin American region, and we are looking forward to scaling this success further now that the game is live and attracting strong followings on all three platforms."Quepasa highlighted some key data and trends specific to the game's performance on each of the three platforms, including:

  • Facebook: Rapid early growth, including over 230K installs in just over 2 weeks since launch, with DAUs and MAUs climbing steeply. DAUs for June 30th represented over 700% week over week growth, with MAUs for the same day yielding over 800% week over week growth.
  • Orkut: Continued growth with over 1.7MM installs in just over 6 weeks and strong engagement metrics, including 670,000+ DAUs, 2.4MM+ MAUs, DAU/MAU of 27.45%.
  • Quepasa.com: Strong engagement metrics, including highest ARPU (Average Revenue Per User) and longest average session length, with average session of over 22 minutes.
In addition to continuing to promote Wonderful City - Rio with dedicated marketing efforts across Latin America, Quepasa plans to develop new versions of the game specific to Mexican and Colombian audiences. "Cidade Maravilhosa has continued to outpace our expectations and exceed important industry benchmarks for game performance," added Rafael da Costa, President of Quepasa Games. "Our early results on the three platforms corroborate our belief that Latin audiences will engage meaningfully with culturally relevant content. We are confident our near-term efforts to build audience across Latin America will help us scale these strong trends, and accelerate our progress towards monetizing social games in the high-growth Latin market."In light of Cidade Maravilhosa's success, Quepasa also announced plans to initiate a shift in the user acquisition strategy for Quepasa.com so as to better align the social network's growth with the company's momentum in gaming and broader emphasis on retention and monetization. Specifically, the company seeks to leverage a broader set of acquisition channels that target users with the highest propensity to engage in games, contests and other experiences tied to the monetization of Quepasa.com."The recent launch of our first social gaming title, Cidade Maravilhosa - Rio, has deepened our understanding of the Quepasa.com user base and key drivers related to monetizing those users," commented Quepasa CEO, John Abbott. "The early success of the title -- now with over two million installs across three social networking platforms -- has highlighted not only a huge monetization opportunity, but also the need for more diversified acquisition channels for Quepasa.com to help us meet a more sophisticated set of objectives."Quepasa highlighted a few main strategic initiatives for Quepasa.com user acquisition, including:
  • Mobile: Quepasa will draw on the huge opportunity presented by the mobile market in Latin America to engage its current users and acquire new users. In 2010, the Latin American mobile market experienced tremendous growth; according to IDC, the overall Latin American mobile market grew 28% compared to a global average of 17.9%, and the smartphone market grew a staggering 145% (see Latin Daily Financial News article here -- http://bit.ly/k1dMni). Quepasa plans to take advantage of this growth by deploying mobile applications tailored to relevant mobile technology platforms in the region.

  • Virtual Currency Promotion: Quepasa will execute campaigns in which the virtual currency used to purchase in-game goods is used to drive the acquisition of new players, for instance by offering current players rewards for referring friends. This will promote the acquisition of new users whom already have friends playing the game, while continuing to seed and establish Quepasa.com's virtual economy.

  • Games and Contests: Quepasa will leverage its existing portfolio of cross-platform social media products and content to drive new users to Quepasa.com, including games like Cidade Maravilhosa, as well as social media contests powered by Quepasa DSM. Quepasa will leverage users' interest in this content to cross-promote the opportunity to find and engage with more of it as a member of Quepasa.com.

For the month of June, key retention metrics for Quepasa.com continued to show strong improvement, despite a reduction in other metrics due to an interruption in email delivery. On average, return visitors viewed 33.2 pages and spent 18.8 minutes on-site, representing 11% and 42% month over month increases, respectively. Quepasa.com's user base grew to a total of 38.2 million, adding over 680,000 new users in June. Pageviews totaled over 107MM and monthly unique visitors were approximately 8.1MM for the period. Quepasa management reported that, while the complications that led to the email outage had been addressed, it was pleased to see continued progress on retention, and eager to better align Quepasa.com's trajectory with the social gaming opportunity at hand."Since the relaunch of Quepasa.com as a social network in 2008, its user base has climbed to over 38MM registered users, primarily by way of users inviting friends to the site through email. While we are proud to have had great success driving these growth figures, we are now in a much different and fundamentally better position as a company," continued Abbott. "We now have the opportunity to directly monetize Quepasa.com users through social games and participate in a global social gaming industry that grew to $1.4 billion in revenues in 2010, and is expected to double by 2015 (according to research firm IHS iSuppli). Nonetheless, directly monetizing users on Quepasa.com carries with it a different challenge than driving traffic around a more generalized social networking experience. We don't just want to acquire users, we want to acquire users profitably and will rapidly scale efforts that allow us to do so, while diminishing the role of less efficient marketing channels. We are confident that our revised approach to user acquisition will ultimately drive long-term value for our shareholders by putting Quepasa in an even stronger position to deploy high-growth monetization initiatives in the Latin American region."Quepasa Management will be holding a conference call today, Wednesday July 6, 2011 at 4:30 pm EDT to discuss key gaming metrics and its forthcoming plans for user acquisition. The conference call can be accessed by dialing the following numbers.Participant Dial-In Numbers:
TOLL-FREE 1-877-941-2068
TOLL/INTERNATIONAL 1-480-629-9712ORParticipant Dial-In Numbers:
TOLL-FREE 1-888-846-5003
TOLL/INTERNATIONAL 1-480-629-9856The call will also be available via webcast at the following link: http://viavid.net/dce.aspx?sid=000088DE.A replay will be available after the call at the following numbers:
TOLL-FREE 1-877-870-5176
TOLL/INTERNATIONAL 1-858-384-5517
From: 07/06/2011 @ 7:30 pm Eastern Time
To: 08/06/2011 @ 11:59 pm Eastern Time
Replay Pin Number: 4454332We will have an open Q&A session at the end of the management presentation.About Quepasa Corporation
Quepasa Corporation (AMEX:QPSA - News), is a social media technology company which owns Quepasa.com, the leading online social network and game platform for the Latino community, Quepasa Games, a cross platform social game development studio, and Quepasa DSM, a cross platform social advertising and contest platform. Quepasa.com provides fun, interactive, and easy to use social tools, and rich multimedia content in English, Spanish and Portuguese to embrace Latinos everywhere, and empower them to connect online, compete in contests and games and share their interests, ideas, and activities. Quepasa is headquartered in West Palm Beach, Florida with offices in Miami, Los Angeles, Scottsdale, and Hermosillo, Mexico. For more information about the company, go to www.quepasacorp.com, or join for free at www.Quepasa.com.Cautionary Note Regarding Forward Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including growth and trends in Wonderful City's performance, plans to develop new versions of Wonderful City, monetizing the social games, plans to develop a mobile application and opportunities in the mobile market, leveraging cross-platform social media products to drive new users to Quepasa.com, and driving long-term value for our shareholders by deploying high growth monetization initiatives.All statements other than statements of historical facts contained herein, including statements regarding our future financial position, liquidity, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.Important factors that could cause actual results to differ from those in the forward-looking statements include unanticipated technical problems which delay or impede other localized versions of Wonderful City, internal decisions made by social media platforms hosting our games, acceptance of the games by users, and failure to develop a mobile technology platform. Further information on our risk factors is contained in our filings with the SEC, including our Form 10-K for the year ended December 31, 2010. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Contact:


Company Contact:
E. Brian Harvey
Vice President of Capital Markets and Investor Relations
Quepasa Corporation
Tel (310) 801-1719
brian.harvey@quepasacorp.com
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