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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