Remark Media Reports First Quarter 2016 Results

LAS VEGAS, May 10, 2016 /PRNewswire/ -- Remark Media (NASDAQ: MARK), a global digital media technology company, reported its financial results for the first quarter of 2016.

"We are off to a strong start in 2016," stated Kai-Shing Tao, Remark Media's Chairman and CEO.  "We made significant progress in executing on growth opportunities within our digital media properties and furthering our foothold with the Millennial demographic.  Net revenue significantly increased, powered by our acquisition of Vegas.com in September 2015.  Since the acquisition, we have focused on transforming Vegas.com from a traveling and ticketing hub into a digital media platform representing the multiple facets of the Las Vegas experience, and we see additional opportunities to grow Vegas.com even more."

"So far in 2016, we have made substantial progress in our initiative to drive near- and long-term revenue growth and generate sustained profitability. During the quarter, we enhanced our KanKan data intelligence platform by expanding our relationship with Alibaba, opening up access to e-commerce data from both Alibaba and its partners. This is a major step forward for KanKan as it marries our big data strategy with some of the most powerful contacts in the agency world. We are excited about our prospects for KanKan and expect we can expand our big data offering to multiple industry-specific applications in the future. In support of our growth goals, we are constantly evaluating the potential for acquiring complementary assets. We are currently in the late stages of evaluating a potential acquisition that we expect can accelerate monetization across all our assets. We look forward to keeping you updated as we approach a definitive agreement."

Financial Results for the Three Months Ended March 31st:  2016 Compared to 2015
The financial results for the first quarter of 2016 reflect the operating results of Vegas.com, which was acquired in September 2015.

• Net revenue was $14.3 million, compared to $0.8 million.
• Gross margin was $11.9 million, compared to $0.8 million.
• Operating expenses were $17.1 million, compared to $3.7 million.
• Operating loss was $5.2 million, compared to $3.0 million.
• Net loss was $2.4 million, or $0.12 per diluted share, compared to $3.1 million, or $0.24 per diluted share.
• At March 31, 2016, the cash and cash equivalents balance was $10.3 million, and total restricted cash was $11.6 million, bringing the total combined cash position to $21.9 million.

Conference Call Information

Remark Media's management team will hold a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its first quarter 2016 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 1-888-539-3678 and for international calls dial 1-719-325-2420 approximately 10 minutes prior to the start of the conference. The conference ID is 4488722. The conference call will also be broadcast live over the Internet and available for replay for one year at www.remarkmedia.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, in the U.S., please dial 1-877-870-5176 and internationally, 1-858-384-5517. Enter access code 4488722.

About Remark Media, Inc.

Remark Media, Inc. (NASDAQ: MARK) owns, operates and acquires innovative digital media properties across multiple verticals that deliver culturally relevant, dynamic content that attracts and engages users on a global scale.  The company leverages its unique digital media assets to target the Millennial demographic, which provides it with access to fast-growing, lucrative markets.  The company is headquartered in Las Vegas, Nevada, with additional operations in Beijing and Chengdu, China. For more information, please visit the Company's website at www.remarkmedia.com. 

Forward-Looking Statements

This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment and regulation. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Media's Annual Report on Form 10-K and Remark Media's other filings with the SEC. Any forward-looking statements reflect Remark Media's current views with respect to future events, are based on assumptions and are subject to risks and uncertainties.  Given such uncertainties, you should not place undue reliance on any forward-looking statements, which represent Remark Media's estimates and assumptions only as of the date hereof.  Except as required by law, Remark Media undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events or otherwise.

Investor Contact:
Douglas Osrow
Remark Media, Inc.
[email protected]
702-701-9514 ext. 3025

Investor Relations Contact:
Becky Herrick/ Kirsten Chapman
LHA Investor Relations
[email protected]
415-433-3777

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SOURCE Remark Media, Inc.

Related Links

http://www.remarkmedia.com