Cathy Peng - VP, IR Jonathan Zhang - CFO

Good day, ladies and gentlemen. Welcome to Momo's Fourth Quarter Earnings Conference Call. The participants are on a listen-only mode. With that, I would like to pass the call over to our host for today, Ms. Cathy Peng, Vice President of Investor Relations. Ms. Peng, please go ahead.

Thank you, operator. Hello everyone, and thank you for joining us today for Momo's fourth quarter 2015 earnings conference call. The company results were released earlier today and are available on the company's IR website. Joining me today is our Chief Financial Officer, Mr. Jonathan Zhang. Mr. Zhang will discuss Momo's business operations followed by financial review. Due to the pending going-private transaction, we will not be hosting a Q&A session following the end of the call. If you have any additional questions, please contact us at ir@immomo.com or 861-057-310-538. Before we begin, I would like to remind you that this call may contain forward-looking statements made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties and factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law. With that, I would like to pass the call over to Mr. Zhang, who will now go over the business and financial highlights for the quarter. Mr. Zhang, please.

Thank you, Cathy. Good morning and good evening everyone. Thanks for joining our conference call today. In the absence of our CEO, Mr. Tang Yen, I will walk you through operational review followed by the financial update. The net revenues for the fourth quarter 2015 grew by 112.7% to $39.5 million and non-GAAP net income reached $11.8 million representing a 30% non-GAAP net margin. With that, we concluded the year of 2015 with impressive growth for both top line and bottom line. Net revenues for the whole year grew 199.4% year-over-year to $134 million. Non-GAAP net income for the year 2015 was $31.1 million representing a 23.2% non-GAAP net margin. Diving into the quarter, let me start with operation matrix; monthly active users for MAU was 69.8 million in December 2015 compared with 69.3 million a year ago. The number of location-based interest groups increased 6.1 million as of the end of December, up from 5.1 million a year ago. The pressure in MAU trends we have seen since the third quarter continued into Q4. As briefly mentioned in our previous earnings call, we think there were a couple of different negative factors impacting our user growth. First of all, the growth of new smartphone users has been slowing down substantially in 2015, inhibiting the growth of new users for many mobile social applications including ourselves. Secondly, on the product side, there are areas that we need to work on in order to optimize user experience and appeal to a broader user base. This challenge comes in two folds, one is to better serve the core demand of meeting new friends through optimizing of existing products and services. The other one is to create new use case for users and potential users to socialize and have fun on the platform.…

Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect. Thank you.