Jiayuan Announces First Quarter 2013 Financial Results

            Jiayuan Announces First Quarter 2013 Financial Results

PR Newswire

BEIJING, June 5, 2013

BEIJING, June 5, 2013 /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 first quarter
ended March 31, 2013.

First Quarter 2013 Highlights[1]

  oNet revenues for the first quarter 2013 were RMB111.5 million (US$18.0
    million), a year-over-year increase of 27.6%.
  oOperating income for the first quarter 2013 was RMB9.4 million (US$1.5
    million), with an increase of 139.1% compared to operating income of
    RMB3.9 million for the corresponding quarter of 2012. The increase in
    operating income was a result of strong growth in Jiayuan's online
    services. Excluding share-based compensation, non-GAAP[2] operating income
    for the first quarter 2013 was RMB13.5 million (US$2.2 million), compared
    to non-GAAP operating income of RMB7.8 million for the corresponding
    quarter of 2012, representing a year-over-year increase of 73.4%.
  oNet income for the first quarter 2013 was RMB7.9 million (US$1.3 million),
    up 51.8% compared to net income of RMB5.2 million for the corresponding
    quarter of 2012. Excluding share-based compensation, non-GAAP net income
    for the first quarter of 2013 was RMB12.1 million (US$2.0 million), up
    32.8% compared to RMB9.1 million for the corresponding quarter of 2012.

"Jiayuan's total revenue increased 27.6% in the first quarter of 2013 compared
with the same period last year," said Mr. Linguang Wu, CEO of Jiayuan. "By
enabling users to access our services while travelling, the popularity of
Jiayuan's mobile products helped to mitigate the seasonality associated with
the late Chinese New Year holiday, even as it coincided this year with
Valentine's Day, traditionally our peak period of user activity."

Mr. Wu added, "We are very excited to be celebrating our 10th anniversary this
year with the launch of Jiayuan's new logo and mascot, reaffirming our
commitment to quality and innovation in helping marriage-minded singles in
China find love."

"Building on our industry leadership through sustained investment in new
product development and R&D is at the core of Jiayuan's long-term growth
strategy, and we remain encouraged with our progress on this front," said Mr.
Shang Koo, CFO of Jiayuan. "Recently we completed our move to Jiayuan's new
company-owned office space which provides comfortable and cost-effective space
for our growing team."

Mr. Koo noted that on May 16th the Company announced a special dividend and an
annual dividend policy, in line with Jiayuan's commitment to delivering
shareholder value.

First Quarter 2013 Operational Results

The number of average monthly active user accounts[3] for the first quarter
2013 was 5,188,638, compared to 5,434,692 for the corresponding period of 2012
and 5,123,265 for the previous quarter.

The number of average monthly paying user accounts[4] for the first quarter
2013 was 1,279,063, compared to 1,171,031 for the corresponding period of 2012
and 1,233,466 for the previous quarter.

Average monthly revenue per paying user ("ARPU") for online services for the
first quarter 2013 was RMB26.1, compared to RMB22.0 for the corresponding
period in 2012 and RMB26.5 for the previous quarter.

First Quarter 2013 Financial Results

Jiayuan reported net revenues of RMB111.5 million (US$18.0 million) for the
first quarter of 2013, representing a year-over-year increase of 27.6% from
RMB87.4 million and a slight increase from RMB110.5 million in the previous
quarter. This was primarily due to strong growth in online services, despite a
weaker-than-usual rebound in user activities as a result of the Chinese New
Year falling later in the calendar year and its overlap with Valentine's Day,
a traditionally strong dating period.

  oOnline services contributed RMB100.2 million (US$16.1 million), or 89.8%
    of net revenues for the first quarter of 2013, representing a
    year-over-year increase of 29.6% from RMB77.3 million, and a slight
    increase from RMB98.1 million for the previous quarter. The year-over-year
    increase was mainly attributable to the increase in paying user accounts
    and ARPU. The sequential increase was due to the increase in paying user
    accounts, partially offset by the decrease in ARPU.
  oEvents and VIP services contributed RMB11.3 million (US$1.8 million), or
    10.2% of net revenues for the first quarter of 2013, representing a
    year-over-year increase of 11.9% from RMB10.1 million, which is in line
    with the increase of VIP clients served, and a quarter-over-quarter
    decrease of 9.0% from RMB12.4 million for the previous quarter due to a
    decline in the number of events held.

Cost of revenues for the first quarter of 2013 was RMB37.9 million (US$6.1
million), representing a year-over-year increase of 22.0% from RMB31.1
million, and a slight decrease from RMB38.2 million for the previous quarter.
The yearly increase was in line with the growth of online services. The slight
sequential decline was a result of fewer number of events held during the
period.

Gross profit  for the first quarter of 2013 was RMB73.6 million (US$11.8
million), representing a year-over-year increase of 30.7% from RMB56.3
million, and a slight increase compared to RMB72.3 million for the previous
quarter.

Selling and marketing expenses were RMB44.1 million (US$7.1 million) for the
first quarter of 2013, representing a year-over-year increase of 24.7% from
RMB35.4 million, and a quarter-over-quarter increase of 8.3% from RMB40.7
million. The year-over-year increase was primarily due to increased
advertising prices.

General and administrative expenses were RMB14.8 million (US$2.4 million) for
the first quarter of 2013, representing a year-over-year increase of 14.4%
from RMB12.9 million. There was a sequential increase of 6.0% from RMB13.9
million for the fourth quarter of 2012 primarily due to increased headcount
and an annual salary adjustment which became effective in January.

Research and development expenses were RMB5.3 million (US$856,000) for the
first quarter of 2013, representing a year-over-year increase of 29.8% from
RMB4.1 million, and a quarter-over-quarter increase of 7.1% from RMB5.0
million. The sequential increase was due to an increase in the number of
research and development personnel in line with Jiayuan's segmentation
strategy.

Operating income for the first quarter of 2013 was RMB9.4 million (US$1.5
million), an increase of 139.1% compared to operating income of RMB3.9 million
for the corresponding quarter of 2012, and a decrease of 26.1% from RMB12.7
million in the previous quarter. The year-over-year increase was due to strong
growth in Jiayuan's online business. The sequential decrease was primarily due
to the increase of operating expenses associated with a post-Chinese New Year
advertising campaign. Excluding share-based compensation expenses, non-GAAP
operating income for the first quarter of 2013 was RMB13.5 million (US$2.2
million), compared to non-GAAP operating income of RMB7.8 million for the
corresponding quarter of 2012, and non-GAAP operating income of RMB17.4
million for the previous quarter.

Foreign currency exchange net gain for the first quarter of 2013 was
RMB135,000 (US$22,000), compared to foreign currency exchange net gain of
RMB61,000 for the corresponding quarter of 2012 and a foreign currency
exchange net gain of RMB745,000 for the previous quarter. The foreign currency
exchange net gain for the first quarter of 2013 was mainly attributable to RMB
appreciation against the U.S. dollar during the period. Part of the proceeds
from Jiayuan's IPO was converted into RMB and is being held by its overseas
entities whose functional currency is the U.S. dollar.

Net income for the first quarter of 2013 was RMB7.9 million (US$1.3 million),
compared to net income of RMB5.2 million for the corresponding quarter of
2012, and net income of RMB17.2 million for the previous quarter. Excluding
share-based compensation expenses, non-GAAP net income for the first quarter
of 2013 was RMB12.1 million (US$2.0 million), compared to RMB9.1 million for
the corresponding quarter of 2012, and RMB22.0 million for the previous
quarter.

Basic and diluted net income per ADS[5] for the first quarter of 2013 were
RMB0.27 (US$0.04) and RMB0.26 (US$0.04), respectively, compared to basic and
diluted net income per ADS of RMB0.17 and RMB0.16 for the corresponding
quarter of 2012, and basic and diluted net income per ADS of RMB0.57 and
RMB0.56, respectively, for the fourth quarter of 2012.

Excluding share-based compensation expenses, non-GAAP basic and diluted net
income per ADS for the first quarter of 2013 were RMB0.41 (US$0.07) and
RMB0.40 (US$0.06), respectively, compared to non-GAAP basic and diluted net
income per ADS of RMB0.29 and RMB0.28 for the corresponding quarter of 2012
and non-GAAP basic and diluted net income per ADS of RMB0.73 and RMB0.71,
respectively, for the fourth quarter of 2012.

As of March 31, 2013, Jiayuan had cash and cash equivalents and short-term
deposits of RMB542.8 million (US$87.4 million). Cash flows from operating
activities for the first quarter of 2013 were RMB64.0 million (US$10.3
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 first
quarter of 2013 was 30.6 million. As of March 31, 2013, the Company had 32.1
million ADSs outstanding, including 0.2 million ADSs issued to the depository
for future exercise of options.

Second Quarter 2013 Outlook

Jiayuan currently expects to generate net revenues in the range of RMB118
million to RMB120 million for the second quarter of 2013. 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, June 5, 2013, at 8:00 p.m. U.S. Eastern Time (8:00 a.m. June 6,
2013 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: 75544693

A replay of the conference call may be accessed by phone at the following
number until June 12, 2013:

- International:  +61-2-8199-0299
Passcode: 75544693

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. As a
pioneer in China's online dating market, Jiayuan ranks first in terms of
number of unique visitors, average time spent per user and average page views
per user among all online dating websites in China in 2012, according to
iResearch. Jiayuan recorded an average of 5.2 million monthly active user
accounts in the first quarter of 2013. 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 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
Comprehensive Income" 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 March 31, 2013, were
made at an exchange rate of RMB6.2108 to US$1.00, representing the rate as
certified by the H.10 weekly statistical release of the Federal Reserve Board
on March 29, 2013. 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 Comprehensive Income."
[3] Active user accounts are registered user accounts through which registered
users have logged in to the Jiayuan platforms 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. In the first quarter of 2013, average monthly active user
accounts include active user accounts from izhenxin.com and juedui100.com.
[4] In the first quarter of 2013, average monthly paying user accounts include
paying user accounts from izhenxin.com and juedui100.com.
[5] 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

Shirley Zhang
Jiayuan.com International Ltd.
+86 (10) 6113-6313
ir@jiayuan.com

Yue Yu
Brunswick Group LLP
+86 (10) 5960-8600
jiayuan@brunswickgroup.com

New York

Cindy Zheng
Brunswick Group LLP
+1 (212) 333-3810
jiayuan@brunswickgroup.com



JIAYUAN.COM INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
                                   March31,  December31,  March 31,
                                   2012       2012          2013      2013
                                   RMB        RMB           RMB       US$
ASSETS
Current assets:
Cash and cash equivalents          186,999    257,709       397,195   63,952
Short-term deposits                413,106    233,025       145,594   23,442
Term deposits, current portion     -          10,000        10,000    1,610
Available-for-sale securities      -          5,047         5,088     819
Accounts receivable, net           15,413     40,102        26,420    4,254
Deferred tax assets                2,666      2,571         3,618     583
Prepaid expenses and other
current                            15,404     44,583        20,521    3,304
 assets
Total current assets               633,588    593,037       608,436   97,964
Non-current assets:
Term deposits                      10,000     -             -         -
Prepayments for property and
                                   -          74,240        -         -
equipment
 Property and equipment, net    28,249     22,431        99,109    15,958
 Intangible assets, net         -          4,569         4,447     716
 Goodwill                       -          789           789       127
Total assets                       671,837    695,066       712,781   114,765
LIABILITIES
Current liabilities:
Deferred revenue, current portion  86,452     109,772       111,430   17,941
Accounts payable                   2,203      1,166         164       26
Accrued expenses and other
current                            25,764     23,458        29, 216   4,704
 liabilities
Income tax payable                 13,605     12,483        16,529    2,661
Total current liabilities          128,024    146,879       157,339   25,332
Non-current liabilities:
 Deferred revenue, non-current  1,234      801           1,394     224
portion
 Deferred tax liabilities       -          -             763       123
Total liabilities                  129,258    147,680       159,496   25,679
SHAREHOLDERS' EQUITY
Ordinary shares                    341        343           343       55
Additional paid-in capital         528,239    536,173       540,741   87,065
Less: Treasury shares              (1,518)    (58,003)      (63,776)  (10,269)
Statutory reserves                 5,792      9,502         9,502     1,530
Retained earnings                  13,184     63,183        71,119    11,453
Accumulated other comprehensive    (3,459)    (3,812)       (4,644)   (748)
loss
Total shareholders' equity         542,579    547,386       553,285   89,086
Total liabilities and              671,837    695,066       712,781   114,765
shareholders' equity



JIAYUAN.COM INTERNATIONAL LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                                      Three months ended,
                                                      March31,2012  Dec31,2012  March 31, 2013
                                                      RMB              RMB           RMB         US$
Net revenues                                          87,409           110,529       111,509     17,954
Cost of revenues                                      (31,101)         (38,235)      (37,939)    (6,108)
Grossprofit  56,308           72,294        73,570      11,846
Operating expenses:
Selling and marketing expenses                        (35,386)         (40,721)      (44,120)    (7,104)
General and administrative                            (12,912)         (13,938)      (14,777)    (2,379)
 expenses
Research and development                              (4,095)          (4,963)       (5,314)     (856)
 expenses
Total operating expenses                              (52,393)         (59,622)      (64,211)    (10,339)
Operating income                                      3,915            12,672        9,359       1, 507
Interest income, net                                  3,300            2,953         2,260       364
Foreign currency exchange gain,                       61               745           135         22
 net
Other income/(expenses), net                          1,637            2,230         (322)       (52)
Income before income tax                              8,913            18,600        11,432      1,841
Income tax expenses                                   (3,685)          (1,363)       (3,496)     (563)
Net income                                            5,228            17,237        7,936       1,278
Net income per ADS – Basic                            0.17             0.57          0.27        0.04
Net income per ADS – Diluted                          0.16             0.56          0.26        0.04
ADSs used in computing basic net                     31,443,735       30,070,191    29,887,038  29,887,038
income per ADS
ADSs used in computing diluted net                    32,871,703       30,777,619    30,599,249  30,599,249
 income per ADS



                                                             JIAYUAN.COM INTERNATIONAL LTD.
                                                             RECONCILIATIONS TO UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                             (IN RMB THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                                              Three Months Ended March 31, 2012         Three Months Ended December 31, 2012      Three Months Ended March 31, 2013
                                                              GAAP        Non-GAAP         Non-GAAP     GAAP        Non-GAAP         Non-GAAP     GAAP        Non-GAAP         Non-GAAP
                                                                          Adjustments(a)                           Adjustments(a)                           Adjustments(a)
Operating income                                              3,915       3,892            7,807        12,672      4,724            17,396       9,359       4,178            13,537
Netincome  5,228       3,892            9,120        17,237      4,724            21,961       7,936       4,178            12,114
Basic net income per ADS                                      0.17                         0.29         0.57                         0.73         0.27                         0.41
Diluted net income per ADS                                    0.16                         0.28         0.56                         0.71         0.26                         0.40
ADSs used in computing basic net                              31,443,735                   31,443,735   30,070,191                   30,070,191   29,887,038                   29,887,038
 income per ADS
ADSs used in computing diluted net                            32,871,703                   32,871,703   30,777,619                   30,777,619   30,599,249                   30,599,249
 income per ADS
Note:
(a) To adjust for share-based compensation expense.







SOURCE Jiayuan.com International Ltd.

Website: http://www.Jiayuan.com
Website: http://ir.jiayuan.com
 
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