China Software Firm Momo's Net Profits Rose 22% to USD114 Million in 3rd Quarter
Dou Shicong
/SOURCE : yicai
China Software Firm Momo's Net Profits Rose 22% to USD114 Million in 3rd Quarter


(Yicai Global) Dec. 6 -- Chinese social software developer Momo gained operating revenue of USD536 million in this year's third quarter, with net profits increasing 22 percent yearly to USD114 million, as measured per Non-Generally Accepted Accounting Principles, thus marking profitability for 15 quarters in a row.

The company thus outdid Wall Street's expectations. Its non-GAAP diluted earnings per share in the period were USD0.43 cents, based on the average estimation of seven Wall Street analysts, per data compiled by Bloomberg, while the actual figure booked was USD0.53 cents, which is far beyond expectations.

The number of monthly active users of the social software developed by the Beijing-based company was 110 million by the end of September, a 17 percent annual rise from the 94 million logged in the same time last year, the report shows.

Among various businesses, operating revenues from livestreaming services were up 34 percent annually to USD407 million. Earnings from value-added services -- membership subscription, virtual gifts and others -- increased over threefold annually to USD84 million. The introduction of more paying scenarios that improve users' social experience contributed to the growth of operating revenue, Momo said.

The quarterly report also announced a personnel change in the firm's board, with director Neil Shen, Sequoia Capital China's founder, stepping down from Dec. 1 this year. Wu Yongming, one of the co-founders of e-commerce giant Alibaba Group Holding, took over the post on Dec. 3.

The US stock market closed for one day yesterday to honor the memory of former US President George H. W. Bush who died Nov. 30. Momo dropped 4.2 percent to USD31.69 per share as the closing bell rang on Dec. 4, depressed by slack trading.

Editor: Ben Armour

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Keywords: Momo