Momo’s Incredible Revenue Growth Continues With 319% Increase For Q3

momo

Momo’s incredible revenue growth has continued into the third quarter, the Chinese dating app recording a 319% year-over-year increase with its latest results.

In September, the Beijing company posted revenues of $99m for its second quarter, a 222% increase from the year before.

This net revenue figure has now hit $157m, a 319% increase compared to 2015, and a $58m growth from the previous quarter.

In Q2, the massive boost was pushed by its live streaming revenue, which tripled from Q1.

And this is also true of its Q3 results, Momo’s live video service generating revenues of $108.6m in the third quarter of 2016.

Momo said this “rapid growth” in revenue is thanks to an increase in paying users of the live video service, which doubled from 1.3m last quarter to 2.6m by the end of Q3.

Interestingly, Momo’s total number of users has not changed significantly, when compared to the massive revenue boost, growing from 73m last year to 77.4m this September.

Chairman & CEO Yan Tang said: “Q3 2016 was a remarkable quarter for us, with achievements on product innovations, business operations as well as financial results.

“Live broadcasting business continued to gain traction and boosted the acceleration in revenue and profit growth. At the same time we are making good progress with our strategy to drive the convergence of video and social activities on our platform.

“We launched “Moments”, an interactive short video service in August. We are happy to see that an increasing number of users on our platform are realizing that video, as compared to text and graphic based content, delivers a more compelling and immersive social and entertainment experience.

“By deeply integrating video elements into every major social scenarios on Momo and providing more entertaining content to our users, we could substantially broaden the core use cases on Momo and raise the ceilings of our total addressable audience.”

The streaming service, which launched in the third quarter of 2015, lets users broadcast live videos of themselves, as well as watching videos of others, commenting and sending virtual gifts to other streamers.

Users of Momo can buy and send virtual gifts to these live streamers, and the company takes a 50% cut of the profits, the most popular broadcasters making tens of thousands of dollars a month by accepting these gifts.

Read more about the lucrative monetisation strategy here.