Earnings Labs

Hello Group Inc. (MOMO)

Q1 2016 Earnings Call· Tue, May 17, 2016

$6.13

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Transcript

Operator

Operator

Ladies and gentlemen, thank you for standing by and welcome to Momo's First Quarter 2016 Earnings Conference Call. [Operator Instructions] All participants are in a listen-only mode. I must advice you that this conference is being recorded today, Tuesday 17 May, 2016. I’ll now like to hand the conference over to your first speaker today, Ms. Cathy Peng, Vice President of Investor Relations. Thank you madam, please go ahead.

Cathy Peng

Analyst

Thank you, operator. Hello everyone, and thank you for joining us today for Momo's first quarter 2016 earnings conference call. The company’s 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 contained 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.

Jonathan Zhang

Analyst

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 an operational update followed by a financial review. From a very high level in Q1 2016, we recorded beyond expectation financial results with the total revenues for the quarter reaching $50.9 million, up 93.4% year-over-year and non-GAAP net income reaching $12.7 million, up 34.5% year-over-year. The strong financial results came together with the progresses on the operational front, monthly active users or MAUs, was back on track during the first quarter totaling 72.3 million in March. We view this as a considerable achievement for our team, especially given that Q1 tends to be the seasonally weakest quarter for user activities due to the linear year effect. Such achievement was on the back of a series of considerate efforts on the product development, operational side and as well on the marketing side. Let me first talk about some of the key product initiatives that we took during the past few months. As mentioned during the last earnings call, we ran a red envelope campaign leveraging the unique future sets and user mentalities in an open social platform. The campaign was successful and helped drive incremental user activities to partially offset the negative effects linear year holiday. After the Chinese New Year, we released a couple of major upgrades that we have long planned it for. In early March, we introduced a new feature NDA[ph], aiming to better connect people based on information not limited to physical proximity, but including the compatibility of profiles as well. NDA appears as a small overlay at the bottom right corner of the nearby people list. When activated the system will push potential matches to user…

Q -

Analyst

Operator

Operator

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