Wowo Limited Reports Third Quarter 2016 Unaudited Financial Results

SHANGHAI, China, Nov. 22, 2016 (GLOBE NEWSWIRE) -- Wowo Limited (the "Company" or "JM Wowo") (NASDAQ:JMU), a leading B2B online e-commerce platform that provides integrated services to suppliers and customers in the foodservice industry in China, today announced its unaudited financial results for the third quarter of 2016 ended September 30, 2016.

Disclaimer: When preparing the unaudited condensed consolidated financial statements for the three months and nine months ended September 30, 2016, the Company revisited the presentation of revenue for the period of January 1 to June 30, 2016, and concluded that certain revenue recognized on a gross basis disclosed in the earning release dated August 22, 2016 for the second quarter of 2016 should have been presented on a net basis in accordance with relevant US GAAP. Accordingly, the Company revised revenue and cost of revenues for the three months ended June 30, 2016 to reflect such change of gross presentation to net presentation.

Third Quarter 2016 Highlights
  • Revenues in the third quarter of 2016 were $19.8 million, an increase of 30.7% from $15.2 million in the second quarter of 2016.
  • Gross loss increased to $145,000 in the third quarter of 2016, from a gross loss of $45,000 in the second quarter of 2016.
  • B2B online platform recorded gross billing of RMB 3,194 million (US$479 million) in the third quarter of 2016, measured in terms of gross merchandise value ("GMV"), increasing 99.8% from gross billing of RMB1,598 million (US$240 million) in the second quarter of 2016.
  • Active customer accounts increased to 33,214 as of September 30, 2016, increasing 1.3% from 32,775 as of June 30, 2016.
  • Third-party sellers on the Company's JMU online marketplace slightly increased to 14,094, compared to 14,085 in the second quarter of 2016.

Ms. Xiaoxia Zhu, Co-chairperson and Chief Executive Officer commented, "We are pleased to report third quarter earnings results with double-digit growth in sales and robust GMV growth. Our third quarter revenue was driven by the increase in order volume from our growing online direct sales business and an increase in our corporate client base as well as seasonal factors. During the third quarter, 90% of our total sales came from top black card membership holders, which are largely comprised of renowned catering companies."