Momo has published its financial results for the First Quarter of 2021, showing its revenue fell short of analyst estimates.
Net revenue decreased by 3.4% to approximately $529.7 million, which just missed the general expectation of $532.84 million. This was despite the 115.3 million monthly active users exceeding predictions by two million.
The number of premium users across the portfolio fell by 200,000, largely due to Tantan which shelled 700,000 paying members in the past 12 months.
Momo’s CEO Li Wang called Q1 a “good quarter” and said that it was a “decent start to the year”.
He explained in a statement: “We have stepped up our efforts to drive towards the strategic priorities that I set for my team at the beginning of the year. The initiatives we took have started bearing fruits.
“Despite the negative seasonality MAU reaching a record high, Momo core is on a steady improving trend and will continue to be a very productive and evolving cash cow business.
“This leaves us ample room to invest in new endeavors beyond Momo and Tantan. I am excited about the growth opportunities that we are seeing in Tantan and have put together a solid plan to unleash their full potential going forward.”
At the start of the year, Tantan announced it was working on a new strategy in South East Asia that would represent more of a pivot away from dating. This could include more of a focus on its live streaming capabilities and virtual activities.
Momo is now expecting total net revenue for the Second Quarter to come in the region of RMB3.6 billion to RMB3.7 billion ($560 million to $580 million).
Despite beginning the day with a slight fall on Tuesday, 8th June, Momo’s stock rallied throughout the rest of the session and finished 3.23% higher. The company now has a market cap of just under $3 billion.
Visit the Momo Investor Relations website here.
This article was updated to include details about how Momo performed on the Nasdaq market on Tuesday, 8th June.