Social dating app Momo MAU down 6% in Q1 2020

Online dating and social networking mobile platform Momo reported 108 million monthly active users (“MAU”) in March 2020, compared to 114.4 million in March 2019. The total paying users of Momo’s live video service and value-added service, without double counting the overlap and including 4.2 million paying users of another app it acquired earlier Tantan, […]

Social dating app Momo MAU down 6% in Q1 2020

Online dating and social networking mobile platform Momo reported 108 million monthly active users (“MAU”) in March 2020, compared to 114.4 million in March 2019.

The total paying users of Momo’s live video service and value-added service, without double counting the overlap and including 4.2 million paying users of another app it acquired earlier Tantan, were 12.8 million for the first quarter of 2020, compared to 14.0 million for Q1 2019, which included 5.0 million paying users of Tantan.

Momo Financial Results in Q1 2020

Total net revenues were RMB3,594.1 million (US$507.6 million) in Q1 2020, a decrease of 3.5% from RMB3,722.9 million in Q1 2019.

Live video service revenues were RMB2,332.0 million (US$329.3 million) in Q1 2020, a decrease of 13% from RMB2,689.4 million during the same period of 2019, as a result of the impact of COVID-19 adversely affecting the sentiment of its paying users, especially among the top of the pyramid paying users.

Total value-added service revenues, mainly including virtual gift revenues and membership subscription revenues, were RMB1,175.8 million (US$166.0 million) in Q1 2020, an increase of 30% from RMB903.8 million in Q1 2019.

The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more functions launched and more paying scenarios introduced to enhance the social experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB57.2 million (US$8.1 million) in Q1 2020, a decrease of 29% from RMB80.7 million during the same period of 2019. The decrease in mobile marketing revenues was primarily caused by the decreased demand from its advertising and marketing customers as well as its strategy to underweight the line in terms of resource allocation.

Mobile games revenues were RMB12.7 million (US$1.8 million) in Q1 2020, a decrease of 67% from RMB39.0 million in Q1 2019. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Net revenues from Momo segment decreased from RMB3,419.2 million in Q1 2019 to RMB3,202.1 million (US$452.2 million) in Q1 2020, primarily driven by the decrease in net revenues from live video service, partially offset by the increase in net revenues from value-added service.

Net revenues from Tantan segment increased from RMB295.3 million in Q1 2019 to RMB381.7 million (US$53.9 million) in Q1 2020, which was mainly due to the increase in the average revenues per paying user resulting from more features launched.

Cost and expenses

Cost and expenses were RMB3,026.1 million (US$427.4 million) in Q1 2020, a decrease of 10% from RMB3,349.4 million in Q1 2019.

The decrease was primarily attributable to:

  • a decrease in share-based compensation expenses due to the related expense from the options granted to Tantan’s founders amount of RMB466.9 million as the related share options vested in Q1 2019 when the necessary performance conditions were satisfied;
  • a decrease in revenue sharing with broadcasters related to its live video service. The decrease was partially offset by an increase in marketing and promotional expenses to attract users on Momo and Tantan.

Non-GAAP cost and expenses (note 1) were RMB2,819.2 million (US$398.1 million) in Q1 2020, an increase of 4% from RMB2,719.2 million during the same period of 2019.

Income from operations

Income from operations was RMB594.1 million (US$83.9 million) in Q1 2020, compared to RMB384.4 million during the same period of 2019.

Income from operations of Momo segment was RMB770.3 million (US$108.8 million) in Q1 2020, decreasing from RMB998.6 million in Q1 2019. Loss from operations of Tantan segment was RMB171.9 million (US$24.3 million) in Q1 2020, compared to loss from operations of RMB604.6 million in Q1 2019.

Non-GAAP income from operations (note 1) was RMB801.0 million (US$113.1 million) in Q1 2020, compared to RMB1,014.7 million during the same period of 2019.

Non-GAAP income from operations of Momo segment was RMB903.1 million (US$127.5 million) in Q1 2020, decreasing from RMB1,098.9 million in Q1 2019. Non-GAAP loss from operations of Tantan segment was RMB100.4 million (US$14.2 million) in Q1 2020, compared to non-GAAP loss from operations of RMB77.1 million in Q1 2019.

Income tax expenses

Income tax expenses were RMB162.9 million (US$23.0 million) in Q1 2020, decreasing from RMB163.7 million in Q1 2019.

Net income

Net income was RMB537.7 million (US$75.9 million) in Q1 2020, compared to RMB286.6 million during the same period of 2019.

Net income from Momo segment was RMB707.1 million (US$99.9 million) in Q1 2020, decreasing from RMB893.9 million in Q1 2019. Net loss from Tantan segment was RMB165.1 million (US$23.3 million) in Q1 2020, compared to a net loss of RMB597.7 million in Q1 2019.

Non-GAAP net income (note 1) was RMB735.1 million (US$103.8 million) in Q1 2020, compared to RMB907.5 million during the same period of 2019.

Non-GAAP net income from Momo segment was RMB839.9 million (US$118.6 million) in Q1 2020, decreasing from RMB994.2 million in Q1 2019. Non-GAAP net loss of Tantan segment was RMB103.2 million (US$14.6 million) in Q1 2020, compared to non-GAAP net loss of RMB79.6 million in Q1 2019.

Net income attributable to Momo Inc. was RMB538.9 million (US$76.1 million) in Q1 2020, compared to RMB289.3 million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB736.3 million (US$104.0 million) in Q1 2020, compared to RMB910.3 million during the same period of 2019.

Diluted net income per ADS was RMB2.46 (US$0.35) in Q1 2020, compared to RMB1.36 in Q1 2019. Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47) in Q1 2020, compared to RMB4.15 in Q1 2019.

Cash and cash flow

As of March 31, 2020, Momo’s cash, cash equivalents and short-term deposits totaled RMB15,467.2 million (US$2,184.4 million), compared to RMB14,925.3 million as of December 31, 2019. Net cash provided by operating activities in Q1 2020 was RMB543.5 million (US$76.8 million), compared to RMB1,175.9 million in Q1 2019.

For the second quarter of 2020, Momo expects total net revenues to be between RMB3.8 billion to RMB3.9 billion, representing a decrease of 8.5% to 6.1% year over year.

Source : China Internet Watch More   

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WHO initiates foundation to expand funding

GENEVA The World Health Organization on Wednesday launched a foundation to independently expand its funding. Dr. Tedros Adhanom Ghebreyesus, the head of the UN health agency, said the WHO Foundation is not established in response to threats by the US President Donald Trump to stop funding the world health body. “This had started more than …

WHO initiates foundation to expand funding

GENEVA

The World Health Organization on Wednesday launched a foundation to independently expand its funding.

Dr. Tedros Adhanom Ghebreyesus, the head of the UN health agency, said the WHO Foundation is not established in response to threats by the US President Donald Trump to stop funding the world health body.

“This had started more than two years ago,” Tedros said at a news conference.

“At this challenging time, we must find all ways possible to provide hope to people while sharing advice that can protect our health,” he added.

“One of the greatest threats to WHO success is the fact that less than 20% of our budget comes in the form of flexible assessed contribution from member states.

“More than 80% is voluntary contributions from member states and other donors, which are usually highly earmarked for specific programs,” the WHO chief said.

“That means, WHO has little discretion over the way it spends its funds, It is not flexible. So, that’s why I think, to improve flexibility, we need to have additional resources, unearmarked, and this is a good solution,” he added.

The idea was to establish a way to generate funding for WHO “from sources we haven’t tapped before, including the general public,” Tedros said.

Until now, WHO had been one of the few international organizations, which had not received donations from the general public.

Tedros said that the WHO’s yearly budget of some $2.3 billion was “very small” for a global agency and more similar to that of a medium-sized hospital in the developed world.

Speaking about the foundation, Tedros said, “It can help us in broadening the base, not only the quality of the funding. We need to invest more in programs, especially if you take the healthy population as one of the pillars we have, which is least funded.”

Source : Voice of South Asia More   

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