Earnings Reports

Google Ad

China based mobile based social media company Momo Inc. reported better than expected third quarter earnings before the open Tuesday. Total paying users of its live video service and value-added service grew 7% year-over-year.

 Momo Tantan

Momo Inc NASDAQ: MOMO Reported Earnings Before Open Tuesday

$0.69 Beat $0.61 EPS  AND $622.8M Beat $605 Million Revenue Forecast

Earnings

Momo Inc. (NASDAQ: MOMO) reported third-quarter eaenings with a 22% jump in net revenues to $622.8 million, which was above the street target of approximately $605 million. Net income for the quarter, excluding one-off items, were 69 cents per share, beating analysts’ consensus by 8 cents.

Momo Inc NASDAQ: MOMO

Market Reaction - $35.98 USD −2.50 (-6.50%) Closed: Nov 26, 2019

Highlights

  • Momo application’s MAU was 114.1 million at the end of the third quarter, compared to 110.5 million in September 2018.
  • Total paying users of its live video service and value-added service, including 4.5 million paying users of Tantan, were 13.4 million, a growth of 7% year-over-year.
  • During the third quarter, revenues from live video services grew 28%,
  • From value-added services improved 86%.
  • Mobile game revenues were $2.2 million, a decrease of 43% mainly due to the continued decrease in quarterly paying users of mobile games. .

Momo mAU Q3 2019

Outlook

For the fourth quarter, Momo sees an 18-20% jump in total net revenues.For the fourth quarter of 2019, the Company expects total net revenues to be between RMB4.52 billion to RMB4.62 billion, representing an increase of 18% to 20% year over year. These estimates reflect the Company's current and preliminary view, which is subject to change.

The positive trajectories in these data show that Momo's live broadcasting ecosystem is solid and poised for healthy and sustainable growth, even under an environment where bigger players are trying to compete with higher payout. We have been in live broadcasting business for four years now. The team has proven their execution capabilities in this space, which has always been highly competitive from day one. I'm confident that we will continue to do well with the unique position of the Momo platform.

 About Momo

Momo is one of China’s leading mobile-based social and entertainment platforms. Momo enable's users to discover new relationships, expand their social connections and build meaningful interactions. They connect people and facilitate interactions based on location, interests and a variety of recreational activities including live talent shows, short videos, social games as well as other video- and audio-based interactive experiences, such as live chats and mobile karaoke experience.

In May 2018, Momo completed our acquisition of Tantan, a leading social and dating application for younger generation. Tantan, whose primary users consist of young Chinese singles, is designed to help its users to find and establish romantic connections, as well as meet interesting people.

They built a large user base on Momo since its launch in 2011. Momo’s MAUs increased to 113.3 million in December 2018 from 99.1 million in December 2017 and 81.1 million in December 2016. The increase of Momo’s MAUs in 2018 was primarily attributable to the enriched product and content offerings and our marketing activities. They had 4.1 million paying users on Tantan application from June 1, 2018 to December 31, 2018. Our Momo and Tantan mobile applications can be downloaded and used free of charge, and we generate our revenues from the various services on theirplatforms. Revenues increased significantly from RMB3,707.4 million in 2016 to RMB8,886.4 million in 2017 and further to RMB13,408.4 million (US$1,950.2 million) in 2018.

Source: Momo. Alpha Street

From The Traders Community News Desk

Log in to comment
Discuss this article in the forums (1 replies).