The social network’s net loss of $25m was a hit for the company has it had a net income of $0.8m in the second quarter of 2011.
RenRen also suffered an operating loss of $22m compared to an income of $0.7m the year before.
The company, however, reported a gross profit of $28m which is a 13% rise from the same period last year.
Online gaming proved to be a large source of revenue for the company in the second quarter, bringing in $22.5m. Social gaming on the site jumped by 122% compared to its second quarter in 2011.
The massive increase of online gaming revenues pushed advertising out of the top spot for revenue income. The company reported online advertising revenues were $15m, a 10.5% decrease from the year before.
"We are pleased that our total net revenues this quarter came in above our guidance, supported by strong gaming growth and a better-than-expected performance by our group-buying business – Nuomi," said Joseph Chen, Chairman and CEO. "On the other hand, brand advertising remained challenging, due to macro conditions, increased competition and the continued migration of our user traffic from PC to mobile."
RenRen expects to generate revenues between $49m and $51m in its third quarter of 2012 resulting in a 43% to 49% year-over-year growth.
"Looking ahead, our strategy remains focused on mobile opportunities, with increasing effort to experiment different monetization models, including mobile gaming, mobile advertising and mobile commerce through Nuomi," said Chen.
RenRen’s active user base continues to increase, growing from 124 million in June 2011 to 162 million by June 2012.
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