In last trading session, the stock price of Renren Inc (NYSE:RENN) surged more than 1% to close the day at $1.76. The gains came at a share volume of 1.11 million compared to average share volume of 829,167.

The performance

Last month, Renren a pioneer social networking internet platform, released its unaudited financial report for 1Q2016. In the first quarter, the total net revenues amounted to US$10.8 million, a jump of 29.2% from the comparable period in FY2015. IVAS and advertising net revenues came at US$6.1 million, which is a sharp 24.8% decline from the same period in FY2015.

The decline can be attributed to the ongoing migration of company’s traffic to mobile and increasing competition. Internet Value-Added Services revenues were US$5.4 million, highlighting a 5.6% drop from the same quarter in 2015. This drop in IVAS revenue was primarily due to lower revenue from VIP memberships and also declining revenue from the third party application developer. Monthly unique users in terms of log-in declined from nearly 46 million in March 2015 to about 37 million in March 2016.

The highlights

Renren reported that gross profit in the first quarter of 2016 amounted was US$2.4 million. Net loss attributable to the firm was US$23.2 million, against a net loss of US$23.8 million in the same period in FY2015. Operating loss came at US$19.2 million versus operating loss of US$27.8 million recorded in 1Q2015. Financing income stood at US$4.7 million, versus US$0.2 million in the same period of 2015.

This jump was in line with the hike in financing receivable, which surged to US$170.6 million from US$12.7 million in the reported quarter. Renren announced that cost of revenues came at US$8.4 million, which is a 7.7% jump from the comparable quarter of FY2015. Operating expenses stood at US$21.5 million, a 23.9% decline from the same quarter of 2015.