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NQ Mobile is a leading mobile security and productivity company, dedicated to protecting your mobile device and all the valuable information it holds. We have approximately 283 million registered user accounts in over 150 countries worldwide and a growth rate of 455,000 users per day, demonstrating a strong demand for mobile security.
NQ Mobile Inc. (NYSE: NQ) is a leading global provider of mobile Internet services. NQ Mobile is a mobile security pioneer with proven competency to acquire, engage, and monetize customers globally. NQ Mobile's portfolio includes mobile security and mobile games & advertising for the consumer market and consulting, mobile platforms and mobility services for the enterprise market. As of December 31, 2012, NQ Mobile maintains a large, global user base of 283 million registered user accounts and 98 million monthly active user accounts through its consumer mobile security business, 65 million registered user accounts and 13 million monthly active user accounts through its mobile games & advertising business and over 1,200 enterprise customers. NQ Mobile maintains dual headquarters in Dallas, Texas, USA and Beijing, China. For more information on NQ Mobile, please visit http://www.nq.com.
Our services cater to the needs of consumers and enterprises in the usage of their mobile devices and we believe we are well positioned to capture market opportunities presented by the rapidly evolving mobile Internet industry. Our cloud-client computing platform combines our cloud-side mobile security knowledge repository and our client-side applications to provide real-time mobile anti-malware, anti-spam, privacy protection, data backup and restore and other services to users worldwide. Leveraging our cloud-side resources, we believe we have compiled one of the most comprehensive mobile security knowledge repositories in the world, which continues to grow as new security threats are identified through our proprietary dynamic technology or through the contribution of security knowledge from our rapidly growing user base and mobile ecosystem participants. In addition, we offer user-centric client-side mobile security, privacy and productivity applications optimized for mobile devices. The continued growth of our mobile security repository and user base will help us maintain our global leadership and widen the gap between our competitors and us.
Our vision is to become the most trusted mobile Internet platform to consumers and enterprises. We began our business by offering consumers mobile security services to address fundamental and rapidly growing needs of mobile users. Building upon the success of our mobile security offerings, we expanded our service solutions to protect privacy and enhance productivity of mobile usage for consumers. We also extended mobile security and productivity products to families and enterprise customers. Our services are compatible with a wide range of handset models and almost all currently available operating systems for smartphones, including iOS, Android, Windows Phone and BlackBerry OS. We also collaborate closely with other mobile ecosystem participants, including chipmakers, handset manufacturers, wireless carriers, third party payment channels, retailers and other distribution channels in order to broaden the reach of our services and increase our revenues per user..
We offer services to users globally through a "Freemium" subscription business model. Our Freemium offerings provide users with free services and the ability to upgrade to a selection of premium services to meet individual needs. The scale of our services portfolio allows us to provide a wide range of free services to address fundamental user requirements. These free services allow us to build a large user base while enhancing user engagement and loyalty. We also offer a selection of fee-generating premium services to monetize our large user base. Such services are bundled with our free offerings for users who elect to pay for additional protection and enhanced productivity. We are able to renew a significant portion of the paying users of our premium services. Moreover, our back-end architecture, which is based on our proprietary business and operations support system (BOSS), enables us to analyze customer in-app usage behaviors data continuously and price our services dynamically.
Our current service offerings include:
| • | Mobile Security: Our mobile security services "NQ Mobile Security" are designed to protect users from mobile malware threats, data theft and privacy intrusion. We provide mobile malware scanning, Internet firewall, account and communication safety, anti-theft, performance optimization, hostile software rating and reporting and other services. |
| • | Mobile Privacy: Our mobile privacy product "NQ Mobile Vault" are designed to protect users' privacy. We provide functions that allow users to store and modify contacts, call logs, SMS, videos and pictures in a secure environment. |
| • | Mobile Productivity: Our mobile productivity services: "NQ Mobile Guard" and "NQ Mobile Call Blocker" are designed to intelligently enhance time and relationship management, including screening incoming calls, filtering unwanted spam, SMS messages, protecting communication privacy and managing calendar activities. In addition, we offer cloud-side synchronization of personal data, including address books, text messages, calendars and other data. |
| • | Personalized Cloud: We provide personalized cloud through "NQ Space", which is accessible by users across a variety of Internet-enabled devices. These services utilize synchronized user information to provide a tailored user experience and extend the functionalities of our core services. For example, mobile users' contact information which has been stored in the cloud can be used to seamlessly link calendar activities across related contacts. |
| • | Family Protection: As Teen and Tween Smartphone Use Soars, we offer parents the product "NQ Family Guardian" to protect their children on smartphones. NQ Family Guardian's unique suite of services for safety and monitoring comprises a mobile app that is downloaded and installed on the child's smartphone along with a web-based control center that is accessible from any desktop or mobile browser. With this app, parents can set up browser block, app filter, contact filer, schedules, communication monitoring, geo-fences, location tracking and panic alarm to protect their children.. |
| • | Enterprise Protection: As employees and knowledge workers increasingly use bring-your-own-device (BYOD) smartphones and mobile equipment for both business and personal use, keeping corporate owned information and sensitive employee data protected has become a significant concern for businesses and employees. We offer NQ Enterprise Shield which provides enterprise customers and their employees with the privacy and security features they need to protect their businesses by securing sensitive device data from mobile threats and unsecure mobile environments. |
Besides organic growth, NQ Mobile has also been actively looking for acquisitions to enhance its product and service offerings and expand channels.
NQ Mobile has acquired 55% of NationSky in May 2012. Founded in 2005, NationSky is a leader in providing mobile services to more than 1,000 enterprises in China. By working with carriers and smart phone platform providers, NationSky delivers device agnostic managed mobile services, mobile device management services and other mobile SaaS services. Headquartered in Beijing, NationSky also has offices in Shanghai and Shenzhen. By working with Nationsky, NQ Mobile will leverage Nationsky's over 1,200 enterprises customers in China to promote our enterprise security products and services.
NQ Mobile has acquired one-third interest in Hesine Technologies International Worldwide Inc.( "Hesine"), a wholly owned subsidiary of MediaTek and a premier mobile messaging solution provider in August 2012. MediaTek Inc. is a leading fabless semiconductor company for wireless communications and digital multimedia solutions.
Hesine's main product "Hissage" unifies all communication and messaging tools, including push email, webmail, blogging, social networking, instant messaging and others across various radio access technologies, wireless carrier¬¬¬s, and geographies. In addition to its push technology and messaging solution, Hesine offers a web suite that bridges Internet and mobile communications, allowing mobile users to conveniently and transparently manage or sync content. Hesine is currently available for iPhone, Android and Symbian operating systems. By working with Hesine, NQ Mobile has gained a large user base as potential customers for our various products and services.
NQ Mobile has acquired 100% of Feiliu to expand mobile internet services in November 2012. Founded in 2009, Feiliu is a leading mobile interest-based community platform with coverage in China that engages users in real-time mobile online activities. Feiliu provides application recommendation services, interest-based exchanges, and mobile games to its user communities. Feiliu has over 67 million registered users and 13 million monthly active users, distributes over 400,000 apps and is the #1 mobile online game distribution platform on iOS in China as of September 30, 2102, according to third party research firm Sino MR. Feiliu generates revenues mainly from mobile games and mobile advertising. NQ Mobile and Feiliu will leverage each others' products and services to further engage and monetize our large user base.
Since our inception, we have focused on building a large and engaged user base. Our user base has expanded rapidly in recent years. As of December 31, 2010, 2011 and 2012, we had 71.7 million, 146.7 million and 283.3 million cumulative registered user accounts, respectively. We had 23.2 million, 55.1 million and 119.4 million overseas registered user accounts as of December 31, 2010 and 2011 and 2012, respectively, representing 32.3%, 37.6% and 42.1% of our total registered user accounts as of the same dates. For the fourth quarter ended December 31, 2010, 2011 and 2012, we had 25.4 million, 52.3 million and 97.7 million monthly average active user accounts, respectively, and 3.2 million, 5.6 million and 8.9 million monthly average paying user accounts, respectively.
We generate revenue primarily through the sale of user subscriptions to our premium mobile security services, mobile games and advertising and the provision of enterprise mobility services. We have grown significantly since we commenced our operations. Our total net revenues were $17.7 million, $40.7 million and $91.8 million in the year ended December 31, 2010, 2011 and 2012, respectively. The contribution from our international operation increased from $6.2 million in 2010 to $17.7 million in 2011 and $35.7 million in 2012, demonstrating our rapidly expanding global footprint. We incurred a net loss of $9.8 million in 2010 and had a net income of $10.3 million and 9.4 million in 2011 and 2012, respectively. Our net loss/income amounts reflect the impact of non-cash share-based compensation expenses of $12.6 million, $10.7 million and $24.5 million in 2010, 2011 and 2012, respectively.
Our Industry
In the past decade, advances in wireless technologies and increasingly sophisticated yet affordable mobile devices have led to robust demand for mobile Internet services. Mobile entertainment and other functionalities have enabled mobile phones to symbolize a lifestyle and to no longer serve as a mere means of communication. As of December 31, 2011, there were 6.0 billion mobile subscribers worldwide, and the number of mobile subscribers worldwide is expected to reach 8.4 billion by the end of 2016.
Early mobile services were primarily based on short message service, or SMS, technology and were largely focused on other simple applications. Advancements in mobile technology and devices have led to the development of a new generation of advanced services, which address the need for more effective and efficient use of mobile devices. The increasing variety and complexity of applications and services available, including image-sharing, location-based services, emails, social network and personal information management, have integrated mobile devices usage as a part of our lives. Also, the advent of cloud platforms has further accelerated the demand and usage of mobile internet services.
Developers have created a large universe of mobile applications to meet growing user requirements. The applications developed started by addressing the needs of consumers and later extended to serving enterprises. The mass adoption of applications makes mobile devices increasingly susceptible to security threats due to the increasing mobile data traffic associated with mobile device usage. According to Cisco's VNI Mobile Forecast, global mobile data traffic was 597 Petabytes per month in 2011, the equivalent of 149 million DVDs each month or 1,646 million text messages each second, and is expected to grow approximately 18-fold from 2011 to 2016, reaching 10.8 Exabytes per month in 2016. The average smartphone generated 150 megabytes of mobile data traffic per month in 2011 and is expected to grow approximately 50-fold from 2011 to 2016, at a compound growth rate of 119% and representing 48% of total mobile data traffic in 2016. The proliferation of applications on mobile devices has led users to process and store more personal data on mobile devices, and has created the need for third-party mobile services to help users protect privacy, manage their personal data and privacy protection more efficiently, and optimize the performance, security and privacy of their mobile devices in a secure environment.
Our Competitive Strengths
We believe the following strengths enable us to proactively identify the trends of the mobile industry and develop innovative services to address user needs, thus making us a pioneer of the fast-growing mobile security, privacy and productivity services industry:
| • | leading position in the mobile security, privacy and productivity services market with a large and fast-growing global user base, | ||
| • | comprehensive and flexible Freemium subscription-based service offering, | ||
| • | sophisticated and proprietary business and operation support systems, | ||
| • | proprietary technology and strong research and development capabilities, | ||
| • | diversified user acquisition and payment channels based on strong relationships with key players in the mobile ecosystem, and | ||
| • | global management team with strong industry track record. |
Our Strategies
We aim to become the most trusted mobile Internet cloud service company by providing trusted intelligent mobile experiences to our users. Our goal is to further expand and monetize our large and rapidly growing user base and become a global leader in the mobile security, privacy and productivity services industry. We intend to pursue the following strategies to achieve our goal of expanding and monetizing our user base:
| • | further diversify and enhance our services portfolio, | ||
| • | maintain and strengthen our technology leadership, | ||
| • | further expand our business in overseas markets, | ||
| • | strengthen and diversify collaborative relationships with key players in the mobile ecosystem, | ||
| • | further build on our consumer brand while expanding into the enterprise market, and | ||
| • | pursue strategic alliance and acquisition opportunities. |
Consumers today are increasingly using smartphones to do things like email, text, bank, share photos, play games, connect on social networking sites, video chat, and even pay bills. Our mobile phones have become mini-computers that we customize with apps to make our lives easier and more fun. However, because not all apps are safe and secure, mobile security is an absolute must.
NQ Mobile is a leading mobile security company that is devoted to mobile security and privacy protection. From malware and spyware to hackers, eavesdroppers, and stolen phones, with our free and premium offerings for Android, Windows Mobile, and iOS devices, you'll always be secure.
NQ Mobile Inc. is a leading global provider of mobile ?Internet services focusing on security, privacy and productivity. It was one of the first to recognize the growing security threats targeting smartphone users and is now an award-winning provider of Freemium subscription services with approximately 283 million registered user accounts in over 150 countries. NQ Mobile's proprietary, cloud-based security solution has been recognized by third-party testing facilities around the world as the most effective solution for detecting and combating mobile threats. NQ Mobile was bestowed the 2011 Technology Pioneer Award by the World Economic Forum for its technology leadership and innovation in mobile security.
NQ Mobile's proprietary "Cloud+Client" technology sets us apart from the competition. Each of our approximately 283 million registered user accounts is a part of our mobile security cloud, contributing new security knowledge to our database and helping us detect virus samples, malicious URLs, and other threats. This knowledge has given us the power to build the most sophisticated database on the market, which includes nearly one billion links and hundreds of thousands of apps for mobile devices.
As a result, NQ Mobile is first to identify 75% of global mobile threatsand strongly equipped to fight mobile threats better and faster than any other mobile security vendor.
Partner with NQ Mobile for best-in-class mobile security
Mobile Security Reports
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| Get help downloading or viewing the above file types |
Investor Kit
| Title | Size | Date | |
| Download All Files (full investor kit) |  | 9.50 MB | 05/28/13 |
| 2012 Annual Report (20F) |  | 1.00 MB | 04/19/13 |
| Investor Presentation | | 3.66 MB | 05/28/13 |
| Investor FAQ | | 105 KB | 09/15/11 |
| Company Factsheet | | 573 KB | 01/10/12 |
| IPO Prospectus | | 2.87 MB | 09/15/11 |
| WestCoast Labs Mobile Security Report (summary) | | 87 KB | 10/25/11 |
| WestCoast Labs Mobile Security Report (full) | | 231 KB | 10/25/11 |
| NQ Mobile Security Report, 2012 | | 1.6 MB | 05/09/13 |
| NQ Mobile Security Tearsheet | | 140 KB | 03/06/12 |
| Get help downloading or viewing the above file types |
| Keyword Search |
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| 2013 | 2012 | 2011 |
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| Firm | Analyst | |
| Canaccord-Genuity | Michael Walkley | mwalkley@canaccordgenuity.com |
| Oppenheimer | Andy Yeung | andy.yeung@opco.com |
| Piper Jaffray | Mark Murphy | mark.r.murphy@pjc.com |
| Topeka Capital Markets | Frederick Ziegel | fz@topekacapitalmarkets.com |
| Wedge Partners | Jun Zhang | Jun.zhang@wedgepartners.com |
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| 2013 Earnings Capsule |
Net revenues increased 108.0% year-over-year to
Income from operations, or operating income, increased 74.5% year-over-year to
Non-GAAP operating income[5] increased 77.9% year-over-year to
Net income attributable to
Non-GAAP net income[6] increased 64.0% year-over-year to
GAAP fully diluted Earnings per ADS was
Net cash flow generated from operations was
Deferred revenue was
Cumulative registered user accounts were 326.6 million as of
Average monthly active user accounts for the quarter ended
Average monthly paying user accounts for the quarter ended
Feiliu operated and distributed a total of 14 games on iOS and 36 games on Android platforms as of
"I am pleased to report that we started 2013 with a solid first quarter. We again achieved record revenue and began to realize the significant growth potential and synergy from the acquisition of NationSky and Feiliu," commented Dr.
"In the first quarter, our consumer mobile security business in the international markets continued its strong growth and accounted for approximately 56% of the total consumer mobile security revenues. Furthermore, our investment in the international markets has started to pay off as we have begun to see upward trends in operating margins," added
| 2012 Earnings Capsule |
| NQ Mobile Inc. Announces Fourth Quarter and Fiscal Year 2012 Results |
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04/19/13 Form 20-F
04/19/13 Form 20-F
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Co-founder, Chairman and Co-Chief Executive Officer
Co-Founder and Chief Operating Officer
Americas:
Chris Stier
chris.stier@nq.com
EMEA:
Geoff Casely
geoff@nq.com
customersupport@nq.com
FOLLOW NQ ON FACEBOOK: https://www.facebook.com/NQMobile
FOLLOW NQ ON TWITTER: https://twitter.com/NQMobile
NQ WEBSITE: http://en.nq.com/
