Jiayuan Announces Third Quarter 2012 Financial Results

            Jiayuan Announces Third Quarter 2012 Financial Results

PR Newswire

BEIJING, Nov. 20, 2012

BEIJING, Nov. 20, 2012 /PRNewswire-FirstCall/ -- Jiayuan.com International
Ltd. ("Jiayuan") (NASDAQ: DATE), operator of the largest online dating
platform in China, today announced its unaudited financial results for the
third quarter ended September 30, 2012.

Third Quarter 2012 Highlights(1)

  oNet revenues for the third quarter 2012 were RMB113.5 million (US$18.1
    million), a year-over-year increase of 24.8%.
  oOperating income for the third quarter 2012 was RMB16.7 million (US$2.7
    million), down 22.2% from RMB21.5 million for the corresponding quarter of
    2011 as a result of higher operational expenses. Excluding share-based
    compensation, non-GAAP(2) operating income for the third quarter 2012 was
    RMB21.0 million (US$3.3 million), down 16.7% from non-GAAP operating
    income of RMB25.2 million for the corresponding quarter of 2011 on higher
    selling and marketing expenses and increased personnel costs in line with
    the company's investments in research and development.
  oNet income for the third quarter 2012 was RMB15.9 million (US$2.5
    million), down 35.9% from RMB24.9 million for the corresponding quarter of
    2011. Excluding share-based compensation, non-GAAP net income for the
    third quarter of 2012 was RMB20.2 million (US$3.2 million), compared to
    RMB28.6 million for the corresponding quarter of 2011.

"We are pleased with our solid revenue growth in the third quarter," said Mr.
Linguang Wu, co-CEO of Jiayuan. "We have always focused on providing the best
possible user experience and results for our users. With mobile Internet usage
experiencing explosive growth in China, we are working to improve user
experience by extending Jiayuan.com to mobile phones. During the quarter, we
were encouraged to see our efforts begin to pay off as Jiayuan's popular
Android and iOS apps helped drive incremental revenue from mobile users."

"Our segmentation strategy is another step forward in improving user
experience by catering to the specific needs of key vertical markets through
offerings like our new izhenxin.com website. In the quarters ahead, we intend
to launch more innovative desktop and mobile offerings to serve our users and
drive monetization."

"We are pleased with the early user feedback for our new members-only website
izhenxin.com, which provides marriage-minded singles a more focused
environment to search for love online," said Ms. Rose Gong, Founder and co-CEO
of Jiayuan. "In an increasingly sophisticated market, I am confident that
initiatives such as izhenxin.com will reinforce Jiayuan's long-term
leadership."

"In the third quarter, our topline growth was driven by an increased number of
paying users and higher ARPU, as strong mobile usage helped to increase user
stickiness and activity," commented Mr. Shang Koo, CFO of Jiayuan. "We are
confident that our segmentation strategy is the right way to expand upon
Jiayuan's industry leadership. Accordingly, in the quarters ahead we expect to
invest in research and development and new vertically-focused products to
better serve our users."

Third Quarter 2012 Operational Results

The number of registered user accounts(3) as of September 30, 2012 was
73,196,570, with approximately 5.5 million new users acquired during the
quarter.

The number of average monthly active user accounts(4) for the third quarter
2012 was 5,242,237, compared to 5,560,387 for the corresponding period of 2011
and 5,333,341 for the previous quarter.

The number of average monthly paying user accounts for the third quarter 2012
was 1,272,185, compared to 1,250,439 for the corresponding period of 2011 and
an increase of 4.0% from 1,222,880 for the previous quarter.

Average monthly revenue per paying user ("ARPU") for online services for the
third quarter 2012 was RMB26.5, compared to RMB20.2 for the corresponding
period in 2011 and RMB23.4 for the previous quarter.

Third Quarter 2012 Financial Results

Jiayuan reported net revenues of RMB113.5 million (US$18.1 million) for the
third quarter of 2012, representing a year-over-year increase of 24.8%,
primarily due to steady growth in the company's online services business, and
a quarter-over-quarter increase of 14.2% from RMB99.4 million due to the
growth of online services.

l Online services contributed RMB101.1 million (US$16.1 million), or 89.1% of
net revenues for the third quarter of 2012, representing a year-over-year
increase of 33.1% from RMB76.0 million, and a 17.6% sequential increase from
RMB86.0 million for the previous quarter. The year-over-year and
quarter-over-quarter increase was primarily attributable to improved ARPU.

l Events and VIP services contributed RMB12.1 million (US$1.9 million), or
10.6% of net revenues for the third quarter of 2012, representing a
year-over-year decrease of 11.6% from RMB13.7 million, and a slight sequential
decrease from RMB12.8 million for the previous quarter due to lower offline
events attendance during the Olympics.

Cost of revenues for the third quarter of 2012 was RMB39.6 million (US$6.3
million), representing a year-over-year increase of 42.0% from RMB27.9
million, and a quarter-over-quarter increase of 14.1% from RMB34.7 million.
This increase was in line with the growth of the company's online services
business.

Gross profit for the third quarter of 2012 was RMB73.9 million (US$11.8
million), representing a year-over-year increase of 17.2% from RMB63.0
million, and a quarter-over-quarter increase of 14.2% from RMB64.7 million.

Selling and marketing expenses were RMB37.5 million (US$6.0 million) for the
third quarter of 2012, representing a year-over-year increase of 45.1% from
RMB25.8 million, and a quarter-over-quarter increase of 25.9% from RMB29.8
million. The year-over-year increase was attributable to higher advertising
prices and additional spending to promote the company's wireless platform. The
sequential increase was attributable to an increase in marketing activities.

General and administrative expenses were RMB15.2 million (US$2.4 million) for
the third quarter of 2012, representing a year-over-year increase of 21.5%
from RMB12.6 million for the corresponding quarter of 2011, and a
quarter-over-quarter increase of 24.3% from RMB12.3 million for the second
quarter of 2012. The year-over-year increase was due to an increase in labor
cost in support of the company's business expansion, and an increase in
administrative expenses associated with a listed company. 

Research and development expenses were RMB4.4 million (US$699,000) for the
third quarter of 2012, compared to RMB3.1 million for the corresponding
quarter of 2011 and RMB4.1 million for the previous quarter. The
year-over-year increase was due to continued investment in research and
development for the company's online and wireless services.

Operating income for the third quarter of 2012 was RMB16.7 million (US$2.7
million), representing a year-over-year decrease of 22.2% from RMB21.5 million
for the corresponding quarter of 2011, and a sequential decline of 9.5% from
RMB18.5 million in the previous quarter. The year-over-year decrease was due
to increased marketing expenses and the sequential decline was due to an
increase in share-based compensation expenses of RMB3.8 million from the
previous quarter.(5) Excluding share-based compensation expenses, non-GAAP
operating income for the third quarter of 2012 was RMB21.0 million (US$3.3
million), representing a decline of 16.7% from RMB25.2 million for the
corresponding quarter of 2011, and an increase of 10.7% from RMB19.0 million
for the previous quarter.

Foreign currency exchange net loss for the third quarter of 2012 was RMB1.4
million (US$226,000), compared to a foreign currency exchange net loss of
RMB1.2 million for the second quarter of 2012 and a net gain of RMB6.5 million
for the corresponding quarter of 2011. The foreign currency exchange net loss
for the third quarter of 2012 was mainly attributable to RMB depreciation
against the US dollar.

Net income(6) for the third quarter of 2012 was RMB15.9 million (US$2.5
million), representing a decline of 35.9% from RMB24.9 million for the
corresponding quarter of 2011 and a decrease of 22.4% from RMB20.5 million for
the second quarter of 2012. Excluding share-based compensation expenses,
non-GAAP net income for the third quarter of 2012 was RMB20.2 million (US$3.2
million), a decrease of 29.3% from RMB28.6 million for the corresponding
quarter of 2011, and a decrease of 4.0% from RMB21.0 million for the previous
quarter.

Basic and diluted net income per ADS(7) for the third quarter of 2012 were
RMB0.52 (US$0.08) and RMB0.51 (US$0.08), compared with basic and diluted net
income per ADS of RMB0.80 and RMB0.75 for the corresponding quarter of 2011,
and basic and diluted net income per ADS of RMB0.66 and RMB0.64, for the
second quarter of 2012.

Excluding share-based compensation expenses, non-GAAP basic and diluted net
income per ADS for the third quarter of 2012 were RMB0.66 (US$0.10) and
RMB0.64 (US$0.10), compared to RMB0.91 and RMB0.86 for the corresponding
quarter of 2011 and RMB0.67 and RMB0.65 for the second quarter of 2012.

As of September 30, 2012, Jiayuan had cash and cash equivalents and short-term
deposits of RMB592.5 million (US$94.3 million). Cash flows from operating
activities for the third quarter of 2012 were RMB19.2 million (US$3.1
million).

The weighted average number of ADSs outstanding used in calculating diluted
net income per ADS and non-GAAP diluted net income per ADS in the third
quarter of 2012 were 31.4 million. As of September 30, 2012, the company had
32.1 million ADSs outstanding including 0.3 million ADSs issued to the
depository for future exercise of options.

Fourth Quarter 2012 Outlook

Jiayuan currently expects to generate net revenues in the range of RMB106
million to RMB108 million for the fourth quarter of 2012. This forecast
reflects Jiayuan's current and preliminary view, which is subject to change.

Conference Call Information

Jiayuan's management will host a conference call to discuss its results and
outlook today, Nov 20, 2012, at 8 p.m. U.S. Eastern Time (9 a.m. Nov 21, 2012
Beijing / Hong Kong Time).

Dial-in details for the earnings conference call are as follows:

United States:        +1-646-2543-515
United States (Toll-free) :         +1-855-5008-701
Hong Kong:        +852-3051-2745
China:                 400-1200-654
International/All other regions:  + 65-6723-9385
Passcode:         65238976

A replay of the conference call may be accessed by phone at the following
number until November 28, 2012:

International: +61-2-8199-0299
Passcode:                  65238976

A live and archived webcast of the conference call will be available at
ir.jiayuan.com.

About Jiayuan

Jiayuan.com International Ltd. ("Jiayuan") (NASDAQ: DATE) operates the largest
online dating platform in China. Jiayuan is committed to providing a trusted,
effective, and user-focused online dating platform that addresses the dating
and marriage needs of China's rapidly growing urban singles population.
According to iResearch, Jiayuan.com ranked first in terms of number of unique
visitors and time spent among all online dating websites in China in 2011.
Every two of Jiayuan's American Depositary Shares represent three ordinary
shares.

For more information, please visit http://ir.jiayuan.com.

Forward-Looking Statements

This press release contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "confident" and similar
statements. Jiayuan may also make written or verbal forward-looking statements
in its periodic reports to the U.S. Securities and Exchange Commission, in its
annual report to shareholders, in press releases and other written materials
and in verbal statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including statements about
our beliefs and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following: our
growth strategies; our future business development, including development of
new products and services; our ability to attract and retain users;
competition in the Chinese online dating markets; changes in our revenues and
certain cost or expense items as a percentage of our revenues; the outcome of
any litigation or arbitration; the expected growth of the number of Internet
and broadband users in China; Chinese governmental policies relating to the
Internet and online dating websites and general economic conditions in China
and elsewhere. Further information regarding these and other risks is included
in our documents filed with the U.S. Securities and Exchange Commission.
Jiayuan does not undertake any obligation to update any forward-looking
statement, except as required under applicable law. All information provided
in this press release is as of the date of the press release, and Jiayuan
undertakes no duty to update such information, except as required under
applicable law.

Non-GAAP Financial Measures

We disclose non-GAAP financial measures of operating income, net income to
Jiayuan.com International Ltd, net income attributable to ordinary
shareholders and net income per ADS, each of which is adjusted to exclude
share-based compensation expense. We review non-GAAP financial measures to
obtain an additional understanding of our operating performance. We also
believe it is useful supplemental information for investors and analysts to
assess our operating performance without the effect of non-cash share-based
compensation expense, which have been and will continue to be significant
recurring expenses in our business. For a reconciliation of each of these
non-GAAP financial measures to the most directly comparable GAAP financial
measures, please see "Reconciliation To Unaudited Condensed Consolidated
Statement of Operations" included in this press release.

However, the use of non-GAAP financial measures has material limitations as an
analytical tool. One of the limitations of using non-GAAP financial measures
is that it does not include all items that impact our non-GAAP financial
measures during the period. In addition, because non-GAAP financial measures
are not calculated in the same manner by all companies, it may not be
comparable to other similar titled measures used by other companies. In light
of the foregoing limitations, you should not consider non-GAAP financial
measures in isolation from or as an alternative to GAAP financial measures.
Management compensates for this limitation by providing specific information
regarding the GAAP amount excluded from the non-GAAP measure.

(1) This announcement contains translations of certain Renminbi ("RMB")
amounts into U.S. dollar ("US$") amounts at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations from RMB
amounts into US$ amounts as of and for the quarter ended September 30, 2012,
were made at an exchange rate of RMB6.2848 to US$1.00, representing the rate
as certified by the H.10 weekly statistical release of the Federal Reserve
Board on September 28, 2012. Jiayuan's functional currency is U.S. dollar and
reporting currency is RMB.
(2) Explanation of Jiayuan's non-GAAP financial measures and related
reconciliations to GAAP financial measures are included in the accompanying
''Non-GAAP Financial Measures'' and ''Reconciliations to Unaudited Condensed
Consolidated Statements of Operations''.
(3) The number of registered user accounts is an accumulated amount and
include both accounts that are registered on Jiayuan's online platform and
those registered on its wireless platforms.
(4) Active user accounts are registered user accounts through which registered
users have logged in to the Jiayuan platform at least once within a calendar
month, in the case of user accounts registered in prior months, or on at least
two separate days within a calendar month, including the day of completion of
the registration process, in the case of user accounts newly registered in the
calendar month.
(5) General and administrative expenses for the second quarter of 2012 include
one-time reductions in share-based compensation expenses of RMB4.3 million
related to forfeited and unvested granted options.
(6) From the third quarter of 2012, we disclose net income and non-GAAP net
income. This is because from the third quarter of 2011, net income/(loss)
attributable to Jiayuan is equivalent to net income/(loss) attributable to
ordinary shareholders as all outstanding preferred shares were converted into
ordinary shares upon the completion of Jiayuan's IPO in May 2011.
(7) Basic and diluted net income per ADS are calculated based on net income
attributable to ordinary shareholders and the corresponding basic and diluted
number of ADSs, assuming that, during each period presented, every two ADSs
represent three ordinary shares of Jiayuan.



For investor and media inquiries, please contact:
Beijing
Yan Peng
Jiayuan.com International Ltd.
+86 (10) 6442-2321
ir@jiayuan.com
Yue Yu
Brunswick Group LLP
+86 (10) 5960-8600
jiayuan@brunswickgroup.com
New York
Tara McDonnell
Brunswick Group LLP
+1 (212) 333-3810
jiayuan@brunswickgroup.com





JIAYUAN.COM INTERNATIONAL LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)


                                         Sept 30,  June 30,  Sept 30,
                                         2011      2012      2012      2012
                                         RMB       RMB       RMB       US$
ASSETS
Current assets:
Cash and cash equivalents                480,660   401,093   433,507   68,977
Short-term deposits                      114,500   203,783   159,035   25,305
Term deposits – current portion          -         -         10,000    1,591
Available-for-sale securities            -         -         5,010     797
Accounts receivable, net                 12,374    27,808    28,306    4,504
Deferred tax assets                      1,943     3,196     3,095     492
Prepaid expenses and other current       9,652     13,774    23,269    3,702
assets
Total current assets                     619,129   649,654   662,222   105,368
Non-current assets:
Term deposits                            -         10,000    -         -
 Prepaid expenses and other
                                         -         -         3,000     477
receivable – non-current portion
 Property and equipment, net            24,364    25,138    23,198    3,691
Total assets                             643,493   684,792   688,420   109,536
LIABILITIES
Current liabilities:
Deferred revenue – current portion       79,569    96,394    103,363   16,447
Accounts payable                         -         107       107       17
Accruals and other current liabilities   18,335    31,087    28,355    4,512
Income tax payable                       12,657    13,958    13,282    2,113
Total current liabilities                110,561   141,546   145,107   23,089
Non-current liabilities:
 Deferred revenue – non-current         -         760       1,103     176
portion

                                         110,561   142,306   146,210   23,265
Total Liabilities
SHAREHOLDERS' EQUITY
Ordinary shares                          338       342       343       55
Additional paid-in capital               517,300   526,283   531,252   84,530
Statutory reserves                       392       5,792     5,792     922
Retained earnings                        14,561    33,722    49,656    7,901
Treasury shares                          -         (21,951)  (44,064)  (7,011)
Foreign currency translation             341       (1,702)   (769)     (126)
adjustments
Total shareholders' equity               532,932   542,486   542,210   86,271
Total liabilities and shareholders'      643,493   684,792   688,420   109,536
equity





JIAYUAN.COM INTERNATIONAL LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)


                                                                           Three months ended,
                                                                           Sept 30,    June 30,    Sept 30, 2012
                                                                           2011        2012
                                                                           RMB         RMB         RMB         US$
Net revenues                                                               90,910      99,376      113,489     18,058
Cost of revenues                                                           (27,910)    (34,720)    (39,629)    (6,305)
Gross profit                                                               63,000      64,656      73,860      11,753
Operating expenses:
Selling and marketing expenses                                             (25,845)    (29,774)    (37,495)    (5,966)
General and administrative expenses                                        (12,552)    (12,270)    (15,247)    (2,426)
Research and development expenses                                          (3,103)     (4,136)     (4,393)     (699)
Total operating expenses                                                   (41,500)    (46,180)    (57,135)    (9,091)
Operating income                                                           21,500      18,476      16,725      2,662
Interest income, net                                                       1,660       3,628       3,442       548
Foreign currency exchange gain/(losses), net                              6,473       (1,229)     (1,422)     (226)
Other income/(expenses), net                                               94          1,210       (179)       (28)
Income before income tax                                                   29,727      22,085      18,566      2,956
Income tax expenses                                                        (4,858)     (1,547)     (2,632)     (419)
Netincome  24,869      20,538      15,934      2,537
Net income per ADS – Basic                                                 0.80        0.66        0.52        0.08
Net income per ADS – Diluted                                               0.75        0.64        0.51        0.08
ADSs used in computing basic net income per ADS                            31,259,596  31,189,651  30,765,750  30,765,750
ADSs used in computing diluted net income per ADS                          33,224,779  32,189,392  31,443,850  31,443,850



JIAYUAN.COM INTERNATIONAL LTD.

RECONCILIATIONS TO UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN RMB THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)


                                            Three Months Ended Sept 30, 2011          Three Months Ended June 30, 2012          ThreeMonthsEndedSept30,2012
                                            GAAP        Non-GAAP         Non-GAAP     GAAP        Non-GAAP         Non-GAAP     GAAP        Non-GAAP          Non-GAAP
                                                        Adjustments(a)                           Adjustments(a)                            Adjustments(a)
Operatingincome  21,500      3,692            25,192       18,476      487              18,963        16,725      4,260             20,985
Net income                                  24,869      3,692            28,561       20,538      487              21,025        15,934      4,260             20,194
Basic net income per ADS                    0.80                         0.91         0.66                         0.67          0.52                          0.66
Diluted net income per ADS                  0.75                         0.86         0.64                         0.65          0.51                          0.64
ADSs used in computing basic net income     31,259,596                   31,259,596   31,189,651                   31,189,651    30,765,750                    30,765,750
per ADS
ADSs used in computing diluted net income   33,224,779                   33,224,779   32,189,392                   32,189,392    31,443,850                    31,443,850
per ADS


Note:



(a) To adjust for share-based compensation expense.



SOURCE Jiayuan.com International Ltd.

Website: http://ir.jiayuan.com
 
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