Social media technology company, Quepasa reported results for its second fiscal quarter of 2011 ended June 30, 2011.
Financial Highlights:
- Revenues of $1.8 million were reported, a near 59% increase over the $1.2 million reported in the second fiscal quarter of 2010, and $401 thousand or 17% lower than the $2.2 million achieved during the first quarter 2011.
- Game revenues of $219 thousand were reported in the second quarter of 2011 primarily from the launch of the first internally developed game as a result of the acquisition of gaming studio XtFt.
- GAAP EPS of ($0.14) loss during 2Q11 compared with ($0.15) loss during 2Q10, and ($0.10) loss in 1Q11.
- Net loss for the second quarter of 2011 was $2.3 million or 14 cents per basic and diluted share, an increase from the net loss of $1.9 million or 15 cents per basic and diluted share in the second quarter of 2010, and an increase from a net loss of $1.5 million or 10 cents per basic and diluted share in the prior quarter.
- EBITDA came in at a loss of $985 thousand in 2Q11 versus a loss of $156 thousand in 2Q10, and a loss of $357 thousand in 1Q11.
Business Development Highlights:
- During the second quarter of 2011, Quepasa Games announced the launch of its first social game offering, Wonderful City — Rio (Cidade Maravilhosa), across multiple social networking platforms. As of June 30th, the game had a global install base of over 2 million members, which represents 73% growth on a month-over-month basis.
- Quepasa Contests reported record engagement results for a campaign with reseller partner Sony Pictures Television Ad Sales Latin America. The campaign drove 13 million engagements, doubling Quepasa Contests previous record. Highlights from the results included over 1.8 million shares — socially and by email — with Facebook and Twitter dominating social behavior.
- Quepasa announced an agreement with PRISA DIGITAL, the leading media company in the production and distribution of digital news, and entertainment in the Spanish and Portuguese speaking world. Them agreement will bring components of Quepasa's social media advertising technology to PRISA's existing network of European, US and Latin American advertisers.
- Quepasa.com added 4.6 million registered users during the second quarter of 2011, bringing total registered members to a record 38.2 million at the end of June. Retention metrics showed considerable improvement; on average, return visitors viewed 33.2 pages and spent 18.8 minutes on-site, representing 11% and 42% month-over-month increases, respectively.
- Shares of Quepasa Corporation were chosen for inclusion in several Russell Indexes including the Russell 2000, the Russell 3000, the Russell Global and the Russell Microcap, as a part of the Russell's 2011 reconstitution.
"Our strategic focus on user retention and monetization yielded exciting results in the second quarter," said John C. Abbott, CEO of Quepasa. "The early success and growing momentum around the release of our first social gaming title has testified to our ability to leverage our footprint in Latin America to deploy high growth businesses the region. Wonderful City – Rio, produced strong retention metrics and average revenue-per-paying-user (ARPPU) figures ahead of industry averages. The game's growing momentum on Facebook, Orkut and Quepasa”, added.
"Finally, we believe the planned merger with myYearbook, set to close in the fourth quarter of 2011, will only accelerate our progress to date" said Abbott.
