Momo Inc. (NASDAQ: MOMO) topped analysts’ expectations on revenue and earnings for the fourth quarter of 2019, allowing shares to gain 6% in premarket hours on Thursday.
Net revenues jumped 22% year-over-year to RMB4,687.9 million ($673.4 million), beating estimates of $655 million. The results benefited from increases in live video service and value-added service revenues during the quarter.
Net income attributable to Momo Inc. was RMB1,055.9 million ($151.7 million) compared to RMB660.8 million in the same period last year. Adjusted net income was RMB1,252.5 million ($179.9 million) versus RMB887.4 million last year.
Diluted net income per American Depositary Share (ADS) was RMB4.74 ($0.68) compared to RMB3.04 in the prior-year period. Adjusted net income per ADS was RMB5.61 ($0.81) versus RMB4.05 last year. Analysts had forecast adjusted net income per ADS of $0.74.
Monthly active users (MAU) on Momo application were 114.5 million in December 2019, compared to 113.3 million in December 2018. Total paying users of the live video service and value-added service, excluding the overlap and including 4.5 million paying users of Tantan, were 13.8 million in the fourth quarter compared to 13 million in the same period last year.
During the quarter, live video service revenues rose 14% year-over-year to RMB3,383.5 million ($486 million), helped by the company’s strategy of providing customized products for different user groups.
Value-added service revenues jumped 65% to RMB1,189.1 million ($170.8 million), driven by the growth of the virtual gift business on the Momo application and an increase in Tantan’s membership subscription revenues.
Mobile marketing revenues fell 24% to RMB93 million ($13.4 million) while revenues from mobile games dropped 43% to RMB14.4 million ($2.1 million) in the fourth quarter. The declines were caused by lower demand from advertising and marketing customers as well as decreases in advertisement properties and paying users of mobile games.
Revenues in the Momo segment increased to RMB4,317.3 million ($620.1 million), driven by higher revenues from live video service and value-added service. Revenues in the Tantan segment rose to RMB369.8 million ($53.1 million), fueled by the increase in the number of paying users.
For the first quarter of 2020, Momo expects total revenues to decrease 7.3% to 4.6% year-over-year to a range of RMB3.45 billion to RMB3.55 billion. The guidance includes the potential impact of the COVID-19 outbreak and reflects the company’s preliminary views on the situation.
Kin Insurance is a leading insurance technology company specialized in high-risk residential areas. The direct-to-consumer business model and use of advanced technology allow the company to offer affordable pricing without
Best Buy Co., Inc. (NYSE: BBY) reported first quarter 2023 earnings results today. Enterprise revenue dropped to $10.6 billion from $11.6 billion in the year-ago period. Comparable sales were down
AutoZone, Inc. (NYSE: AZO) reported third quarter 2022 earnings results today. Net sales increased 5.9% year-over-year to $3.9 billion. Domestic same-store sales increased 2.6%. Net income decreased 0.6% to $592.6 million, while