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NQ Mobile's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: NQ

I will now turn the call over to NQ Mobiles Founder, Chairman and Co-CEO, Dr. Lin.

Henry Yu Lin

Thank you and welcome to everyone on the call. I am pleased to report that NQ Mobile delivered a solid second quarter with record revenues. Excluding $1.4 million revenue contribution from the NationSky acquisition, our revenues reached $18.6 million against exceeding the high end of early previously issued guidance. We also achieved another milestone in our in second quarter. As our registered user accounts surpassed the 200 million mark, nearing doubling from one year ago. (inaudible) backdrop of a continued global economic uncertainty. Our business and user base growth has maintained growth momentum. And we continue to benefit from the record increase in global smart phone shipments and customer awareness and demand for mobile security and proxy solutions. The strong growth in our user base is also clear the elevation of the global expansion strategy and invested user acquisition channel and models.

In the second quarter, we continued our customer business by launching more innovative products such as NQ Mobile Vault. We also expanded into enterprise business by completing the acquisition of NationSky and establish partnership with industry leaders such as TDMobility. Our international business, has also been gaining strong momentum and now already accounted for more than half our consumer mobile internet service revenue. With that I’d like to hand the call over to my partner and NQ Mobile’s Co-CEO Omar Khan who will give you more details about the three departments in our business.

Omar Khan

Thank you Henry and hello everyone in the call. Before I get into more details on NQ Mobiles business I must echo Henry on the enormous market opportunity that we are faced with despite the uncertain global economic outlook. Two of our biggest growth drivers are global smartphone shipment and the consumer awareness and adoption of mobile security and privacy solutions, both of which are in a rapid rise. For example, the latest IBC data shows that in the second quarter of 2012 approximately 154 million smartphones were shipped, a 42% increase year-over-over among which over 68% or 105 million were android smartphones. Android smartphones are the largest and fastest growing segment with over 100% growth. Third-party research from (inaudible) also forecasted mobile security will turn into a $3 billion market opportunity by 2015 and over 20% of smartphones and tablets will have mobile security software pre-installed by 2015. Thus it is quite obvious that we are still at an early stage of the mobile security market evolution and we want to ensure that NQ Mobile is well positioned to capture disproportionate amount of this opportunity.

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