Categories Earnings, Technology

Momo (MOMO) earnings preview: Mobile marketing challenges might continue in Q3

Momo Inc. (NASDAQ: MOMO) is slated to report third quarter 2019 earnings results on Tuesday, November 26, before the market opens. Analysts expect the company to report earnings of $0.61 per share, compared to EPS of $0.51 reported a year earlier. Sales are expected to increase 16% year-over-year to $605 million.

The quarterly results are expected to benefit from growth in the user numbers after the restoration of Tantan’s services. Last quarter, the number of paying users of Tantan stood at 4.1 million. Strength in live video services and value-added services could also fuel topline results.

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.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Earnings calendar for the week of May 17

Benchmark stock indexes pared their recent gains early this week amid elevated inflation concerns, but regained a part of the momentum later aided by recovery in tech stocks. The Dow

Aurora Cannabis (ACB) Earnings: 3Q21 Key Numbers

Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as

Walt Disney (DIS) Q2 revenue down 13%; earnings beat estimates

Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top