Also this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contained a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.Finally, please note that unless otherwise stated all figures mentioned during the conference call are in U.S. dollars. I will now turn the call over to our Chairman and CEO Joe Chen. Joseph Chen Thank you, Sam. Good morning, good evening everyone. Welcome to our second quarter 2012 earnings conference call. We are pleased to report our second quarter revenues came in above our guidance year-on-year growth of 48%, supported by strong came in growth and a better-than-expected performance by our group-buying service, Nuomi. Let me now update you on our user metrics. Total activated users this quarter reached $162 million compared to $124 million at the end of the second last year. Showing continued interest by internet users to join the Renren community. We also have $45 million monthly unique login users in June, representing an increase of 71% year-over-year. On a sequential basis, this number also represents a good rebound from the pronounced of seasonality we experienced in the first quarter during school winter exams and the Chinese New Year. The growth in monthly unique logins in the second quarter was also supported by the launch of a Version 6 for PC and our new mobile apps for both Android and iOS. Our mobile penetration continues to grow. As our user base further expands in the second quarter an average of 40% of monthly unique login users in the quarter continuing to access their Renren accounts through mobile devices compared to 71% in the same period last year. Over 72% of Renren mobile users are now using smartphones representing the high quality of our user base. Even more importantly, the total time spent on mobile continue to represent over 60% of our total user time.
Meanwhile, we also saw the aggregate PC user time increase sequentially due to enhanced PC experience of our Version 6. Moving forward, we will continue to focus enhancements for both the mobile and the PC Versions to provide best user experience on both fronts.Finally, our average for the entire quarter our login users spent 7.8 hours per month on our platform. Even as our platform continues to attract new users, we are pleased to see our user engagement levels maintained at a consistent and healthy range. Moving now to our advertising business. Brand advertising remained challenging in the second quarter, due to weak market economy, increased competition and a continued migration of your PC traffic to mobile mediums. Our total advertising revenue in the second quarter saw over 16% sequential growth but an 11% decline compared to the same period last year. Primarily, due to ARPU standing and large brand advertisers. On a positive side, we did witness an increase in the number of brand advertising clients on our platform, which indicates that Renren’s platform continues to attract more advertisers. In addition, we continue to see momentum in our SME advertising, which represented 14% of our total advertising revenue in the second quarter. In terms of advertising business outlook for the second half of this year, at this moment, due to limited visibility, we think it will remain challenging for the rest of the year. Brand advertiser spending will continue to be affected by market conditions. In addition, for mobile user growth, while a positive trend to our long-term strategy, remains a challenge and near-term monetization in terms of advertising. We are, however, experimenting different mobile advertising model, in user experience and effective advertising models. This will be a priority for us as mobile growth is both an opportunity and an industry-wide disruption. We expect no significant revenue contributions for our mobile advertising in the near-term. As the next few quarters will be about perfecting these models and preparing for execution. Read the rest of this transcript for free on seekingalpha.com