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|Momo Announces Unaudited Financial Results for the First Quarter 2016|
First Quarter 2016 Highlights
“2016 is off to a good start. MAUs are back on the growth track on a sequential basis, thanks to our relentless efforts on product optimization and innovations to drive better user experience. Growing the user base and engagement will continue to stay on top of our priority list. We believe Momo has a great deal of potential for further growth and we will work hard to penetrate deeper into our addressable market,” commented
"Our live broadcasting business, which was launched late last year, was progressing well in the first quarter of 2016. Off the initial success of our live broadcasting service late last year, in
"Looking at other aspects of the quarter, mobile marketing revenue continued its strong momentum, growing more than 100% year over year. In addition to pushing hard to expand our sales coverage, we are even more focused on innovating our marketing solutions and improving our clients’ ROI. We believe these efforts on the backend would allow us to build long term competitive advantages for our mobile marketing business and elevate Momo further up the ladder as a leading mobile marketing platform in China.”
First Quarter 2016 Financial Results
Total net revenues were
Live broadcasting service, which was launched in the third quarter of 2015, generated revenues of
Membership subscription revenues were
Mobile marketing revenues were
Mobile games revenues were
Revenues from other services, which mainly consisted of revenues from paid emoticons, were
Cost and expenses
Costs and expenses were
Non-GAAP costs and expenses (note 1) were $40.5 million in the first quarter of 2016, an increase of 117% from $18.7 million during the same period last year.
Income from operations
Income from operations was $4.9 million in the first quarter of 2016, compared to $5.0 million during the same period last year.
Non-GAAP income from operations (note 1) was $10.6 million in the first quarter of 2016, compared to $7.8 million during the same period last year.
Net income attributable to Momo Inc. was $7.1 million in the first quarter of 2016, compared to $6.7 million during the same period last year.
Non-GAAP net income (note 1) attributable to Momo Inc. was $12.7 million in the first quarter of 2016, compared to $9.4 million during the same period last year.
Net income per ADS
Diluted net income per ADS was $0.03 in the first quarter of 2016, compared to $0.03 in the first quarter of 2015.
Non-GAAP diluted net income per ADS (note 1) was $0.06 in the first quarter of 2016, compared to $0.05 in the first quarter of 2015.
Cash and cash flow
As of March 31, 2016, Momo’s cash, cash equivalents and term deposits totaled $466.0 million compared to $469.5 million as of December 31, 2015. Net cash provided by operating activities in the first quarter of 2016 was $5.6 million compared to $8.7 million for the same quarter of 2015.
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP cost and operating expenses, income from operations, net income attributable to Momo Inc., and diluted earnings per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation. A limitation of using these non-GAAP financial measures is that share-based compensation charge has been and will continue to be for the foreseeable future a significant recurring expense in our results of operations. We compensate for these limitations by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.
Momo's management will host an earnings conference call on Tuesday, May 17, 2016 at 8:00 a.m. U.S. Eastern Daylight Time (8:00 p.m. Beijing / Hong Kong Time on May 17, 2016).
Dial-in details for the earnings conference call are as follows:
International: +65 6713 5090
U.S. Toll Free: +1 866 519 4004
Hong Kong Toll Free: 800-906601
Mainland China: 4006-208038
Please dial in 15 minutes before the call is scheduled to begin.
A telephone replay of the call will be available after the conclusion of the conference call through 8:00 a.m. U.S. Eastern Daylight Time, May 25, 2016. The dial-in details for the replay are as follows:
International: +61-2-8199 0299
U.S. Toll Free: +1 855 452 5696
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Momo's website at http://ir.immomo.com.
Momo is a leading mobile social networking platform in China. Momo connects people in a personal and lively way through a revolutionary mobile-based social networking platform. With powerful and precise location-based features, Momo enables users to connect with each other and expand relationships from online to offline. Momo’s platform includes the Momo mobile application, the Hani mobile application and a variety of related features, functionalities, tools and services that it provides to users, customers and platform partners. Leveraging its social interest graph engine and analysis of user behavior data, Momo is able to provide users a customized experience based on their social preferences and needs. Momo users can maintain and strengthen their relationships through private and group communication tools, content creation and sharing functions, as well as the offline social activities promoted on Momo’s platform. Momo users are also able to enjoy live broadcasts on our platform. For more information, please visit http://ir.immomo.com.
Safe Harbor Statement
This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our unaudited results for the first quarter of 2016 and our management quotes.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the first quarter of 2016 are preliminary, unaudited and subject to audit adjustment. In addition, we may be unable to grow our business in the manner planned. We may also modify our strategy for growth. In addition, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, and our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.
All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.
MAU during a given calendar month is defined as Momo users who accessed the Momo platform through Momo mobile application and utilized any of the functions on the Momo platform for at least one day during the 30-day period counting back from the last day of such calendar month.
Note a: As of March 31, 2016, the number of ordinary shares issued and outstanding was 384,253,289.
(a) Adjustments to exclude share-based compensation of $2,743 from the unaudited condensed consolidated statements.
(b) Adjustments to exclude share-based compensation of $5,645 from the unaudited condensed consolidated statements.
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