Momo Announces Revenue Jumps in Third Quarter; Income Barely Inches Up
The company’s largest segment, which is its live video service, grew 34 percent year-over-year to $406.9 million from $302.6 million.
Momo Inc. (Nasdaq: MOMO), one of China's leading mobile social networking platforms, reported late today that its revenue for the third quarter jumped 51 percent while its net income climbed nearly 8 percent year-over-year.
The Beijing-based company said its revenue reached $536 million, within its previously announced range of expectations, from $354.5 million a year ago.
Net income attributable to Momo was $85.2 million, or 39 cents per fully diluted American depositary share, compared with income of $79.1 million, or 38 cents per ADS, a year earlier. Each ADS represents two ordinary shares.
"I am pleased that we delivered solid operational and financial results for the quarter." Said Yan Tang, the company's chairman and chief executive officer. "At the same time we continued to push forward on product and operational fronts, in order to build up longer term growth drivers as we start to look beyond 2018 into next year."
Accounting for the area of largest growth for the company was its value-added service segment. That unit, which primarily includes revenue from membership subscriptions and virtual gifts, saw a jump of 221 percent to $84.2 million from $26.3 million in the same year-ago period.
The company's largest segment, which is its live video service, grew 34 percent year-over-year to $406.9 million from $302.6 million, the company said.
Looking ahead, Momo said it expected revenue to reach between 3.655 billion yuan and 3.755 billion yuan in the fourth quarter, representing an increase of 43 to 47 percent. The company did not state its projection in U.S. dollars, it said, because of the recent volatility and uncertainty in foreign exchange rates.