Chinese social giant Momo has released unaudited financial results for the first quarter of 2019. Net revenues were up 35% year-on-year to $554.7 million.
Net income attributable to Momo Inc. fell around 65% to $43.1 million, primarily due to $88.4 million in share-based compensation being offered in conjunction with the acquisition of Tantan.
The number of Monthly Active Users on Momo increased to 114.4 million in March 2019, up from 103.3 million in March 2018.
The number of paid users across Momo and Tantan (not double counting any overlap) came in at around 14.0 million.
“Q1 was a solid quarter and a good start to the year 2019,” said Yan Tang, Chairman and CEO of Momo.
“We have started to implement the strategies that we laid out at the beginning of the year. Some of the initiatives we took on the product and operational fronts have already generated good results in driving business growth.
“We will continue to execute against the strategic priorities and create value for our shareholders.”
Momo stock has climbed some 7.5% since the announcement, taking the company’s market cap just shy of $6 billion.
The figures provide some degree of respite for Momo, which is facing pressure on multiple fronts. Earlier this month, a class action lawsuit was filed on behalf of all investors accusing the brand of making false and misleading statements regarding its business.
Further, the app’s newsfeed is currently down while the Chinese government investigates the company’s content review process. The block is also impacting photo sharing on Tantan.
Read more here.