Momo Inc. (NASDAQ: MOMO)
Shares of Momo Inc. had an incredible start in morning trading session on Tuesday after the Chinese social media company reported first quarter earnings that slightly finished above analyst consensus.
The positive results saw investors send the stock up $6.44, or 16.53% to trade at $45.39 at the time of writing.
MOMO Earnings & Outlook
Momo reported earnings per share of 69 cents on a revenue of $435.1 million. Analysts had expected it to report earnings per share of 51 cents on a revenue of $402 million. Net revenue came climbed to $435.1 million, representing an year-on-year increase of 64.1%.
For the second quarter which comes to an end on June 30, 2018, Momo expects a revenue of between $470 million and $485 million. On the other hand, analysts expect it to post a revenue of $433 million.
The company recently acquired Tantan, a Chinese dating app similar to Tinder for $600 million. So far, the app has managed to make remarkable progresses in monetization and user growth, according to the Momo CEO Yan Tang.
Momo CEO Comments
Momo Inc. Chief Executive Officer Yan Tang had the following to offer on the performance of the company: “We had another strong quarter and a great start to the year 2018. I am glad to see that we have achieved outstanding results on all strategical priorities we outlined at the beginning of the year. Our community continued to grow in size and engagements despite the negative seasonality, thanks to the product and marketing initiatives we have been taking in recent quarters. The content ecosystem continues to improve, driving robust organic growth momentum for live streaming business. Strong topline performance, coupled with the operating leverage of our business model creates ample room for us to make significant investment for our future while maintaining a healthy profit margin.”
“We closed the acquisition of Tantan in May and together will be moving forward as a dominant player in China’s open social territory. Tantan has made remarkable progresses in user growth and monetization. We believe Tantan has a great deal of potential to be unlocked and will be adding tremendous value to our ecosystem in the future,” he added.
Momo Inc. Company Profile
Momo Inc. owns and runs a social networking platform in China. The platform includes the company’s Momo mobile application as well as other related services, features, tools, and functionalities that are provided to customers, platform partners, and users.
The Momo application enables users to expand and establish social relationships based on their interests and locations.
The company also provides games that are designed with various features, themes, and cultural characteristics to appeal to an array of segments in the game player community. It also provides a live video application called Hani, mobile marketing services, paid emoticons, and other services.
Before changing to its current name, the company was known as Momo Technology Company Limited. It was founded in 2011 and its head offices are based in Beijing, China. –Reuters