Financial Performance - SaaS revenue increased from 10,261thousandinQ12022to12,080 thousand in Q1 2023, representing a growth of 17.7%[21] - Total revenues rose from 10,321thousandinQ12022to12,149 thousand in Q1 2023, marking an increase of 17.7%[21] - Gross profit improved from 7,874thousandinQ12022to9,426 thousand in Q1 2023, reflecting a growth of 19.7%[21] - Operating expenses slightly increased from 12,665thousandinQ12022to12,845 thousand in Q1 2023, a rise of 1.4%[21] - Loss from operations widened from (4,791)thousandinQ12022to(3,419) thousand in Q1 2023[21] - Net loss attributable to Renren Inc. decreased from (3,317)thousandinQ12022to5,970 thousand in Q1 2023, indicating a significant turnaround[21] - Net income per share attributable to Renren Inc. shareholders improved from (0.003)inQ12022to0.005 in Q1 2023[21] - Comprehensive income attributable to Renren Inc. increased from (3,396)thousandinQ12022to6,055 thousand in Q1 2023[24] - For the three months ended March 31, 2023, the net loss was 4,383,comparedtoanetlossof3,765 for the same period in 2022, indicating a year-over-year increase in losses of approximately 16.4%[40] - Total revenue increased from 10.3millionforthethreemonthsendedMarch31,2022,to12.1 million for the same period in 2023, representing a growth of approximately 17.5%[106] - Net income for the three months ended March 31, 2023, was 5.3million,comparedtoanetlossof3.7 million for the same period in 2022, indicating a significant turnaround[106] Assets and Liabilities - Total assets increased from 95,656,000asofDecember31,2022,to100,613,000 as of March 31, 2023, representing a growth of approximately 5.1%[15] - Total current liabilities slightly decreased from 28,942,000to28,820,000, a reduction of about 0.4%[15] - Total current assets decreased from 60,800,000to56,506,000, a decline of about 7.5%[15] - Total liabilities rose from 10,630asofDecember31,2022,to13,180 as of March 31, 2023, marking an increase of about 24%[40] - Total deferred revenue was 4,323millionasofDecember31,2022,slightlydecreasingto4,312 million by March 31, 2023[61] - Total assets adjusted from 94,708millionto95,656 million, reflecting a net adjustment of 948million[45]−Shareholders′equityincreasedfrom79,654 million to 80,602millionafteradjustments[45]InvestmentsandCashFlow−Long−terminvestmentsrosesignificantlyfrom25,768,000 to 34,148,000,anincreaseofapproximately32.51,824 for the three months ended March 31, 2023, compared to 2,827forthesameperiodin2022,reflectingadecreaseincashusedby35.55,572 for the three months ended March 31, 2023, compared to a decrease of 2,498forthesameperiodin2022,reflectingasignificantincreaseincashoutflow[40]−AsofMarch31,2023,cashandcashequivalentsandrestrictedcashtotaled59,742, down from 65,247atthebeginningoftheperiod[40]−Cashpaidforleaseliabilitiesincreasedfrom163 in Q1 2022 to 215inQ12023,reflectingariseinoperatingleasecosts[69]−Thenetcashusedininvestingactivitieswas8 for the three months ended March 31, 2023, compared to no cash used in the same period in 2022[40] Segment Performance - The company has two main SaaS businesses, Chime and Trucker Path, which generate nearly 100% of their revenue from the U.S. market[33] - SaaS revenue from Chime increased from 5,634millionforthethreemonthsendedMarch31,2022to6,826 million for the same period in 2023, representing a growth of 21.1%[60] - Subscription services revenue from Trucker Path rose from 3,923millionto4,886 million, marking a 24.6% increase[60] - The Chime segment generated revenue of 6.8million,whiletheTruckerPathsegmentgenerated5.3 million for the three months ended March 31, 2023[96] Internal Controls and Governance - As of March 31, 2023, the company's disclosure controls and procedures were not effective due to two material weaknesses in internal control over financial reporting[153] - The identified material weaknesses include a lack of an integrated risk assessment process and insufficient evaluations of internal control components[155] - Management concluded that the consolidated financial statements fairly present the financial position and results of operations in accordance with U.S. GAAP despite the material weaknesses[156] - The company has recruited personnel with expertise in accounting and disclosure requirements to address the identified weaknesses[158] - A consolidated general ledger has been implemented within a single enterprise resource planning application for all legal entities[159] - New audit committee members with sufficient accounting experience have been designated to oversee risk assessment policies and procedures[159] - Management is taking steps to remediate the material weaknesses and will continue to monitor the effectiveness of these steps[159] - There were no other changes in internal control over financial reporting that materially affected the company during the three months ended March 31, 2023[160] - The company acknowledges that its control systems cannot prevent or detect all errors and fraud due to inherent limitations[161] Stock and Compensation - The Company repurchased 678,882 ADSs for 1,249ataweightedaveragepriceof1.83 per ADS during the three months ended March 31, 2023[75] - As of March 31, 2023, the Company had 91,646,055 share options outstanding with a weighted average exercise price of 0.01[79]−Compensationexpensesrelatedtononvestedrestrictedshareswererecordedat644 for the three months ended March 31, 2023, down from 927inthesameperiodof2022[83]−Totalunrecognizedcompensationexpenserelatedtononvestedrestrictedsharesamountedto4,188 as of March 31, 2023, expected to be recognized over 0.85 years[84] - Share-based compensation expense totaled 765,000forthethreemonthsendedMarch31,2023,downfrom1.532 million for the same period in 2022, a decrease of approximately 50%[93]
