Jiayuan.com International Earnings: Here’s Why Investors are Happy Now

Jiayuan.com International Ltd (NASDAQ:DATE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 6.22%.

Jiayuan.com International Ltd Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10% to $0.09 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 24.04% to $19.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jiayuan.com International Ltd reported adjusted EPS income of $0.09 per share. By that measure, the company beat the mean analyst estimate of $0.07. It missed the average revenue estimate of $19.43 million.

Quoting Management: “We saw healthy growth in the second quarter with net revenues increasing 20.0% year-over-year as our mobile product and personalized matchmaking offers continued to grow in popularity,” said Mr. Linguang Wu, CEO of Jiayuan. “We also further enhanced online user experience during the quarter through an upgrade of our online system to better identify and block unhealthy user behavior.”

Mr. Wu added, “In the second half of this year, we expect to introduce new mobile products addressing the specific needs and spending patterns of our rapidly growing mobile user base. As greater numbers of Chinese singles from different age groups, income levels and regions look for love online through multiple platforms, we are confident that Jiayuan has the right strategy in place to grow our user base while increasing monetization over time.”

“As China’s leader in online dating, Jiayuan will continue to prioritize user experience by ensuring that users have a safe environment in which to look for love online,” commented Mr. Shang Koo, CFO of Jiayuan. “In the second half of this year, we look forward to bringing our personalized matchmaking service to new high growth markets and to launching exciting new products optimized for the mobile users, which we expect will contribute to top-line growth in the medium term.”

Key Stats (on next page)…

Revenue increased 8.14% from $17.94 million in the previous quarter. EPS increased 28.57% from $0.07 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.1 and has not changed. For the current year, the average estimate has moved down from a profit of $0.35 to a profit of $0.34 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)