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Taomee Holdings Ltd. (NYSE:TAOM) reported its unaudited financial results for the third quarter ended September 30, 2011. Total net revenues reached an historical high of US$12.7 million , an increase of 7.8% from US$11.8 million in the second quarter 2011 and 23.7% from US$10.3 million in the third quarter 2010, exceeding the Company's guidance. Gross margin decreased to 81.2% from 85.1% in the second quarter 2011 and 84.9% in the third quarter 2010.

Taomee Holdings Ltd. together with its subsidiaries, operates as a children's entertainment and media company in the People's Republic of China. It operates through two segments, Online Business and Offline Business.

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