Source: Renren.

China-based social network operator Renren (NYSE:RENN) just reported unaudited, preliminary results for the first quarter of fiscal year 2014. Following the report, shares rose as much as 3.1% in after-hours trading. In the regular Wednesday session, Renren shares closed 3.4% lower for the day.

Analysts expected to see a $0.06 non-GAAP net loss per American depositary receipt on sales of $25.7 million. In the first quarter, Renren's revenues fell 40% year-over-year to $24.9 million. The company reported a $0.01 adjusted profit per ADR, up from breakevenin the year-ago quarter.

Looking ahead, Renren expects about $22 million in total second-quarter revenue, down from $49.6 million in the comparable period of 2013. The current analyst consensus calls for $30 million.

Sales declined by 18% year over year in the social networking department, and by 52% in the online gaming segment. The company pinned the dramatic sales decline on increased competition and a Chinese macro trend of rapid migration onto mobile platforms.

Renren CEO Joseph Chen noted that his company's mobile ad sales are growing, but he declined to break out mobile sales figures.

"We are pleased to see strong growth in the amount of [user-generated content] videos uploaded to our on-line video site,, along with its increasing traffic," Chen said in a prepared statement. "We remain committed in building and realizing long-term value for our shareholders."