Last quarter, live video revenues saw double-digit growth
due to increases in quarterly paying users and average revenues per paying
user. Value-added service revenues more than doubled last quarter due to the
growth of the virtual gift business.
However, challenges in mobile marketing are likely to continue
in the third quarter dampening results. Last quarter, mobile marketing revenues
fell 46% due to decrease in advertisement properties on Momo’s platform due to
the suspension of certain user posting functions.
Revenues from mobile games also decreased 33% last quarter due to a drop in quarterly paying users of mobile games. It remains to be seen if there has been a pickup in this area.
Also read: JD.com Q3 2019 Earnings Report
In the second quarter of 2019, Momo beat revenue and earnings estimates. Revenues grew 32% to RMB4.15 billion, or $604.9 million while adjusted EPS amounted to RMB5.60 per ADS, or $0.82 per ADS.
For the third quarter of 2019, Momo expects net revenues to increase 17-19% to a range of RMB4.25 billion to RMB4.35 billion.
Momo’s shares have gained 54% year-to-date and 9% in the past three months.