Tang Yan, the CEO of Momo Inc (ADR)(NASDAQ:MOMO), said that from a high level, 3Q2016 was a noteworthy quarter for company, with achievements on business operations, financial results and product innovations. Total revenues for 3Q2016 surged 319% YoY to $167 million. With the robust operating leverage in business model, the top-line performance has resulted in considerable bottom-line expansion. For 3Q2016, net income came at $49.5 million, jumping over 11-fold over the comparable period, a year earlier.
On the operating metrics, MAUs on the company’s platform came at 77.4 million for the third quarter, against 73 million a year earlier, and 74.8 million for the preceding quarter. The total MAUs stated here does not comprise the active users on Momo’s stand-alone live-streaming app Hani, which recorded around one million MAUs in September. Since a big part of the live broadcasting initiatives happen within the Momo app, instead of on Hani, the company will not be separately stating the customer metrics for Hani until it achieves the next milestone. Neither is the management going to consider it into the platform MAU that they reveal on a quarterly basis.
The CEO said that user growth remains on top of agenda. The most effective process to keep expanding customer base is through increasing the core use cases and continuous product innovations. During the last 5 years, the company has emerged from a basic feature that aids people discover new associations to a platform that put up different entertainment and social use cases, covering one-to-one communications, postings in numerous formats, group chatting, and most lately, short videos and live broadcasting.
It is fair to state that Momo was established through a series of initiatives to add on new functionalities and features so as to push the limits of core use cases and meet new user demand. It is still going to be the way that the company head down in the coming period. Yan’s long-term vision for company is for it to play a vital role in China’s entertainment and social industry. Momo will continue to expand from its core strengths, and discover different territories to get there.