The stock in Momo Inc. (Nasdaq: MOMO) slid 4% Thursday to $14 per share after the company posted revenue decline for the fourth quarter.
The Beijing-based social networking platform said Thursday that its revenue in the fourth quarter was $581.6 million, down 19% year-over-year. Net profit was $99.8 million, or 46 cents per share, up 38% from the same time in 2019.
Momo's largest segment, live video services, saw 31% revenue decline in the fourth quarter. The company said the impact of Covid-19 adversely affecting the sentiment of its paying users.
"After several months of hard work, we have started seeing positive trends in the content ecosystem as well as the business of the core Momo. Getting through the bumpy journey last year was a valuable growth experience for our team. I am happy to see we have finally come out of the temporary drawbacks, stronger and better poised to seize the growth opportunities ahead of us," Li Wang, the chief executive officer of Momo, said in the statement.
The company announced that it will pay out a cash dividend of approximately $132 million, or 64 cents per American depositary share. The declared dividend will be paid on April 30.
In September, Momo's board of directors authorized a share repurchase program under which the company may repurchase up to $300 million of its shares over the next 12 months.
Looking forward, the company expects total net revenues to be between 3.36 billion yuan to 3.46 billion yuan in the first quarter of 2021, representing a decrease of 6.5% to 3.7% year-over-year.
Momo operates mobile social media platforms that allow users to express via communication tools such as social feeds, message boards, voice recordings and emoticons.
Monthly active users on Momo reached 113.8 million as of December 2020 compared to 114.5 million in late 2019.