Momo Stock Soars 12% After Strong Results, Dividend Announcement
The social networking platform said it had 113.3 million monthly active users and 13 million paying users on the Momo and Tantan apps combined.
Momo Inc. (Nasdaq: MOMO) soared nearly 12 percent in New York trading by noon Tuesday to $36.30 per American depositary share, after beating estimates on earnings and revenue in the fourth quarter and setting a special dividend.
The Beijing-based company, a mobile social networking platform, said in a statement today that its revenue reached $559.1 million during the three months through December, up 50 percent year-over-year. The improvement was attributed to a 272 percent jump in membership subscriptions and was offset by a decrease in revenues from mobile games and marketing.
Net income, Momo said, was $96.1 million, or 44 cents per share, at a 3 percent increase from the fourth quarter of 2017.
As of December, the social platform had 113.3 million monthly active users and 13 million paying users on the Momo and Tantan apps combined.
For the full year, Momo reported revenue of nearly $2 billion, up 51 percent from 2017, and income of $409.5 million, or $1.92 per ADS.
The chairman and chief executive officer of Momo, Yan Tang, called the year "fruitful."
"I am pleased with the progress we made in 2018 in product innovation, monetization, financial performance and the strengthening of the Company's position as a leading player in China's open social space," he said. "We look forward to delivering more results to our shareholders in 2019."
Momo also announced that it would distribute a special dividend of 31 cents per share to shareholders of record as of April 5. The payout is planned for April 30, according to the report.
Looking ahead, Momo said it expects to generate between 3.55 billion and 3.65 billion yuan in the first quarter, representing a year-over-year increase of between 28 and 32 percent.