(Yicai Global) March 8 -- Chinese social software maker Momo Inc. beat market expectations by more than doubling profit to almost USD319 million last year as it acquired more members and promoted its live-streaming channels.
Earnings were up 119 percent on the year as revenue soared 138 percent to USD1.3 billion, the company's full-year financial report showed. Momo has now turned a profit in 12 straight quarters and had a record-high 99 million monthly active users as of the end of the year.
The rise in member numbers proves the effectiveness of the company's continuous product enrichment strategy, said Tang Yan, chief executive. Momo made changes to its live-streaming content last year, which laid a foundation for revenue growth, he added.
The live-streaming business brought in USD328 million in fourth-quarter revenue, making up a bulk of the profit over the final period. A rise in paying members gave a considerable boost to the cash generation in the sector, with 4.3 million people paying for the service and average consumption per user growing slightly.
Chinese citizens are keen adopters of new technology, and live-streaming has been no exception. Revenue in the sector reached CNY30.5 billion in China last year, state-owned news agency Xinhua quoted a Ministry of Culture official as saying at a forum in January. Data from iResearch puts the 2015 figure at CNY7.4 billion.
Momo made a series of upgrades to its live-streaming platform last year, such as organizing singing competitions and introducing self-developed variety shows, as it looks to stand out as a specialized entertainment platform rather than a stage for amateur video-makers.