Total paying users of Momo live video service and value-added service, without double counting the overlap and including 3.9 million paying users of a Tinder-like app Tantan, were 12.8 million for the second quarter of 2020, compared to 11.8 million for Q2 2019, which included 3.2 million paying users of Tantan.

Tantan has been accelerating the testing of its live video service since the middle of April, and live video service revenues from Tantan were 191.7 million (US$27.1 million) in Q2 2020.

Fake fans and manipulations on China social media

Momo Financial Results

Net revenues decreased by 6.8% year over year to RMB3,868.3 million (US$547.5 million) in Q2 of 2020.

Net income attributable to Momo Inc. decreased to RMB456.4 million (US$64.6 million) in Q2 of 2020 from RMB731.8 million in the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB669.8 million (US$94.8 million) in Q2 of 2020, from RMB1,242.5 million in the same period of 2019.

Diluted net income per American Depositary Share (“ADS”) was RMB2.11 (US$0.30) in Q2 of 2020, compared to RMB3.33 in the same period of 2019. Non-GAAP diluted net income per ADS was RMB3.05 (US$0.43) in Q2 of 2020, compared to RMB5.60 in Q2 2019.

For the third quarter of 2020, Momo expects total net revenues to be between RMB3.7 billion to RMB3.8 billion, representing a decrease of 16.9% to 14.6% year over year.

Burberry launched its first luxury social retail store, empowered by WeChat

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.

Total paying users of Momo’s live streaming service and value-added service, without double counting the overlap and including 4.5 million paying users of Tantan, were 13.8 million for Q4 2019, compared to 13.0 million for Q4 2018, which included 3.9 million paying users of Tantan.

Momo Highlights for Q4 2019

• Net revenues increased by 22% year over year to RMB4,687.9 million (US$673.4 million)
• Net income attributable to Momo Inc. increased to RMB1,055.9 million (US$151.7 million) from RMB660.8 million in Q4 2018.
• Non-GAAP net income attributable to Momo increased to RMB1,252.5 million (US$179.9 million), from RMB887.4 million in Q4 2018.
• Diluted net income per American Depositary Share (“ADS”) was RMB4.74 (US$0.68), compared to RMB3.04 in Q4 2018.
• Non-GAAP diluted net income per ADS was RMB5.61 (US$0.81), compared to RMB4.05 in Q4 2018.

Momo Highlights for Full Year 2019

• Net revenues increased 27% year over year to RMB17,015.1 million (US$2,444.1 million) for the full year of 2019.
• Net income attributable to Momo was RMB2,970.9 million (US$426.7 million), compared with RMB2,815.8 million for 2018.
• Non-GAAP net income attributable to Momo was RMB4,493.3 million (US$645.4 million), compared with RMB3,462.1 million for 2018.
• Diluted net income per ADS was RMB13.52 (US$1.94), compared with RMB13.18 for 2018.
• Non-GAAP diluted net income per ADS was RMB20.26 (US$2.91), compared with RMB16.17 for 2018

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Momo, one of China’s top mobile social networking platform, announced total net revenues of RMB4,152.6 million (US$604.9 million) in the second quarter of 2019, an increase of 32% from RMB3,152.5 million in Q2 2018.

Monthly Active Users (“MAU”) on Momo application were 113.5 million in June 2019, compared to 108.0 million in June 2018.

Compare: Weibo MAU – 486 mm, WeChat – 1.13 bn, QQ – 808 mm

Total paying users of its live video service and value-added service, without double counting the overlap, including 3.2 million paying users of Tantan, were 11.8 million for Q2 2019, compared to 11.6 million for Q2 2018, which included 3.1 million paying users of Tantan in June 2018.

As of August 25, 2019, the number of paying users of Tantan was 4.1 million.

Its live video service revenues were RMB3,099.9 million (US$451.5 million) in Q2 2019, an increase of 18% from RMB2,620.9 million during Q2 2018. The growth in live video revenues was contributed by the increase in quarterly paying users, as well as the increase in average revenues per paying user per quarter.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. The total value-added service revenues were RMB948.4 million (US$138.1 million) in Q2 2019, an increase of 169% from RMB352.6 million during the same period of 2018.

The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more paying scenarios introduced to enhance the social experience of Momo users, and the consolidation of Tantan’s membership subscription revenues for the whole second quarter of 2019, compared to the single month of June 2018 in Q2 2018.

Mobile marketing revenues were RMB76.2 million (US$11.1 million) in Q2 2019, a decrease of 46% from RMB142.0 million during the same period of 2018. The decrease in mobile marketing revenues was due to the decrease in advertisement properties on Momo’s platform resulting from the suspension of certain user posting functions.

Mobile games revenues were RMB23.2 million (US$3.4 million) in Q2 2019, a decrease of 33% from RMB34.8 million in Q2 2018. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Net income attributable to Momo Inc. decreased to RMB731.8 million (US$106.6 million) in Q2 2019 from RMB750.2 million in the same period of 2018. Momo recognized a total share-based compensation expense of RMB482.5 million (US$70.3 million) in Q2 2019 including a share-based compensation expense of RMB323.7 million (US$47.1 million) regarding certain share options granted to the founders of Tantan Limited (“Tantan”), while the total share-based compensation expense recognized in the same period of 2018 was only RMB134.2 million.

In August 2018, Tantan Limited granted 3,578,205 share options to its founders. The share options included a performance condition in which the founders have the right to receive fully vested options immediately upon achieving certain performance condition. During Q2 2019, the performance condition was met and accordingly, Momo recognized a share-based compensation expense of RMB323.7 million (US$47.1 million) related to those options.

Non-GAAP net income attributable to Momo Inc. (note 1) increased to RMB1,242.5 million (US$181.0 million) in Q2 2019, from RMB893.2 million in the same period of 2018. Diluted net income per American Depositary Share (“ADS”) was RMB3.33 (US$0.49) in Q2 2019, compared to RMB3.55 in the same period of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB5.60 (US$0.82) in Q2 2019, compared to RMB4.22 in the same period of 2018.

For the third quarter of 2019, Momo expects total net revenues to be between RMB4.25 billion to RMB4.35 billion, representing an increase of 17% to 19% year over year.

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