"Facebook of China" records 2011 profit, with an asterisk

Renren ( RENN , quote ) announced 4th quarter and FY2011 financial results on March 8, highlighting a 4th quarter net profit of $44.3 million. However, this profit came from the one-time gain of a $51 million securities sale.

Net income for the year was $41.3 million, compared to a net loss of US$64.2 million for 2010. Net revenues were considerably more impressive at $32.8 million for the quarter and $118 million for the year. This represents over 50% growth in revenues from 2010.

Chairman and CEO Joseph Chen said Renren's first year as a public company showed "progress in multiple directions, most notably our solid user metrics, strong growth of core advertising revenues and successful launches of new products."

The "Facebook of China" has plenty of other products in development, including a Pinterest clone .

Chen was particularly bullish on mobile, pointing out an "encouraging" monthly mobile penetration of 38%. "With over 60% of our mobile users now accessing their Renren accounts through smartphones," he said, "we continue to witness the convergence of social networks, mobile utilization and local merchants as a key theme of our mobile growth."

The company expects $28 million to $30 million in Q1FY2012 revenues, for 36% to 46% year-over-year growth. 2012 revenues are projected at US$177 million to US$183 million, representing 50-55% year-over-year growth.

U.S. trading in Renren is robust, but investors looking for broader exposure should look at the Global X Social Media Index ETF ( SOCL , quote ), which devotes 4.56% of its portfolio to Renren.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.