Jiayuan, the Chinese dating site which just got listed on Nasdaq couple months ago, released its unaudited financial results for Q2 2011 with net income of over RMB 1.4 million (US$222,000) on net revenue of RMB 83.3 million (US$12.9 million).
During the quarter Jiayuan had over 5 million average monthly active user accounts with approximately 5.3 million new users acquired and total use accounts of nearly 45.5 million as of late June.
After the financial results, Merrill Lynch released a research report crediting the strong performance to its brand recognition after IPO and forecasted an market increase in Q3 due to strong increase in user numbers
NO FEAR OF WEIBO
With the prevails of social media platforms such as Sina Weibo and Tencent Weibo, stranger-based dating sites including Jiayuan, Baihe are under questioned. Gong Haiyan, the founder and CEO of Jiayuan said that: SNS, Weibo and dating sites are targeting different type of users with different markets. People on dating sites care about their online privacy, so we don’t think social media will have major influence on dating sites.”
She also said that “Some new improvements over the website have enhanced user stickiness and increased messaging traffic as more users interact with each other, and this has contributed to an increase in the number of average monthly paying user accounts. In the coming quarters, we will continue to invest in new features that enhance user engagement and extend Jiayuan’s leadership position in this market.”
But still, according to analysts, dating services like Jiayuan need to sort out new revenue sources to ease investors concerns over their limited profit opportunities.