Shares of Momo Inc (ADR) MOMO, a Chinese mobile networking platform, were rallying Tuesday after the company reported first-quarter results.
What Happened
Momo reported that it earned 69 cents per share in the first quarter on revenue of $435.129 million versus expectations of 50 cents per share and $396.17 million. Monthly active users rose from 85.2 million last year to 103.3 million and total paying users rose from 7 million to 8.1 million over the same time period.
Net income for the quarter rose from $81.2 million a year ago to $129.9 million.
The Details
Momo's 64-percent revenue growth from a year ago was partially aided by strength in live video, which generated $371.5 million in revenue and represents a growth rate of nearly 75 percent from one year ago. Value-added services — including membership costs, new services and virtual gift revenues — rose 62 percent from one year ago to $22.9 million.
During the quarter, Momo's costs and expenses rose 65 percent from a year ago to $175.1 million and were attributed to an increase in revenue sharing agreements with broadcasters, share-based compensation for workers, an increase in marketing and promotional expenses and increased infrastructure spending.
What's Next
Momo guided its second-quarter revenue to a range of $470 million to $485 million, which at the low end surpassed Wall Street's expectations of $429.34 million.
The stock was up nearly 15 percent at the time of publication Tuesday.
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