The guidance was announced at a time when its sister dating app Tantan was removed from Chinese app stores, pending an investigation into pornographic content in the platform. However, in July, Tantan was back in app stores and quickly became a top-grosser.
Tantan’s return should boost Momo’s overall revenues, which could possibly come in the top end of the projection range.
READ: Major IPOs expected in late-2019 or 2020
ADVERTISEMENT
Wall Street analysts are expecting revenues of $574.29
million for the second quarter, while EPS is forecast to increase by 10 cents
to $0.72. Momo has surpassed earnings
expectations in all four trailing quarters.
In the first quarter, Momo Inc reported a 65% decline
in earnings, weighed down by expenses related to Tantan acquisition.
Net revenue, meanwhile, jumped by 35% to $554.7 million as monthly
active users on Momo applications grew to 114.4 million from 103.3 million in
the previous year period.
Notably, Momo is one of the Chinese stocks that has been relatively resistant to the trade war and Chinese economic weakness. The stock has gained 35% since the beginning of this year and is still trading at a discount of 34%.