Momo Inc (ADR) (NASDAQ: MOMO) is having an incredibly strong start to the trading session this morning after reporting its unaudited financial results for the fiscal first quarter of 2018. Of course, the results were positive, leading to excitement among investors and sending the stock on a run for the top. Today, we’ll talk about:
- The financial results released by MOMO;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for ahead.
MOMO Heads Up On Unaudited Financial Results
As mentioned above, Momo Inc is having an incredibly strong start to the trading session this morning after releasing its unaudited financial results for the first quarter of fiscal 2018. Here’s what we saw from the report:
- Net Revenues – Net revenues saw a massive increase on a year-over-year basis. In the release, MOMO said that net revenue came to $435.1 million, representing a year-over-year increase of 64%.
- Non-GAAP Net Income – On a non-GAAP basis, net income proved to be positive as well. During the quarter, non-GAAP net income came to a total of $142.3 million, representing growth in the amount of 57% over the 90.7 million reported in the same period last year.
- Diluted Net Income Per ADS – This figure came in at $0.63, representing strong growth over the $0.40 reported last year.
- Monthly Active Users – Finally, in terms of monthly active users, the company also saw impressive growth. By the end of the quarter, MAUs came to 103.3 million, an impressive figure considering that at the end of the same quarter last year, monthly active users came to 85.2 million.
In a statement, Yan Tang, Chairman and CEO at MOMO, had the following to offer:
We had another strong quarter and a great start to the year 2018. I am glad to see that we have achieved outstanding results on all strategical priorities we outlined at the beginning of the year. Our community continued to grow in size and engagements despite the negative seasonality, thanks to the product and marketing initiatives we have been taking in recent quarters. The content ecosystem continues to improve, driving robust organic growth momentum for live streaming business. Strong topline performance, coupled with the operating leverage of our business model creates ample room for us to make significant investment for our future while maintaining a healthy profit margin… We closed the acquisition of Tantan in May and together will be moving forward as a dominant player in China’s open social territory. Tantan has made remarkable progresses in user growth and monetization since the beginning of 2018. We believe Tantan has a great deal of potential to be unlocked and will be adding tremendous value to our ecosystem in the future.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Momo Inc, the news proved to be overwhelmingly positive. After all, when we invest, we’re investing for growth. The unaudited financial results reported by the company today showed just that! So, it’s no surprise that excited investors are sending the stock on a run for the top in the market today. At the moment (9:50), MOMO is trading at $43.50 per share after a gain of $4.55 per share (11.68%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MOMO. In particular, we’re interested in following the story surrounding the company’s ongoing growth, as users, revenue, and earnings seem to all be headed in the right direction. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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