Momo Announces Unaudited Financial Results for the Second Quarter and First Half of 2015
Second Quarter 2015 Highlights
-
Net revenues increased 264% year over year to
$30.7 million . -
Net income attributable to
Momo Inc. was$1.7 million , compared to a net loss of$7.0 million for the same period last year. -
Non-GAAP net income attributable to
Momo Inc. (note 1) was$6.0 million compared to a non-GAAP net loss of$5.4 million for the same period last year. -
Diluted net income per American Depositary Share ("ADS") was
$0.01 , compared to a diluted net loss per ADS of$1.16 for the same period last year. -
Non-GAAP diluted net income per ADS (note 1) was
$0.03 , compared to a non-GAAP diluted net loss per ADS of$1.11 for the same period last year. -
Monthly Active Users ("MAU")(1) were 78.4 million in
June 2015 , an increase of 47% year over year.
First Half 2015 Highlights
-
Net revenues increased 311% year over year to
$57.1 million for the first half of 2015. -
Net income attributable to
Momo Inc. was$8.4 million for the first half of 2015. -
Non-GAAP net income attributable to
Momo Inc. (note 1) was$15.4 million for the first half of 2015. -
Diluted income per ADS was
$0.04 for the first half of 2015. -
Non-GAAP diluted income per ADS (note 1) was
$0.08 for the first half of 2015.
Commented
"I'm also excited to announce that we will soon be debuting Momo Live to the tens of millions of Momo users. This interactive live music service will create a brand new way for our users to connect and socialize on the platform. It will enrich the content offering on the platform and therefore help us improve engagement and bring in new users.
"On the monetization side, we launched a native marketing system to support self-serving ad placement on a real-time-bidding mechanism. The launch of this marketing system has greatly improved the effective CPM of our proprietary marketing product portfolio, which has already become a powerful engine for our future growth. In
Second Quarter 2015 Financial Results
Net revenues
Total net revenues were
Membership subscription revenues were
Mobile games revenues were
Mobile marketing revenues were
Revenues from other services, which mainly consisted of paid emoticons and revenues from our gifting services, was
Cost and expenses
Costs and expenses were
Non-GAAP costs and expenses (note 1) were
Income from operations
Loss from operations was
Non-GAAP income from operations (note 1) was
Net income
Net income attributable to
Non-GAAP net income (note 1) attributable to
Net income per ADS
Diluted net income per ADS was
Non-GAAP diluted net income per ADS (note 1) was
Cash and cash flow
As of
First Half 2015 Financial Results
Net revenues for the first half of 2015 were
Net income attributable to
Non-GAAP net income attributable to
Diluted net income per ADS was
Non-GAAP diluted net income per ADS (note 1) was
Net cash provided by operating activities was
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP cost and operating expenses, (loss) / income from operations, net (loss) / income attributable to
Conference Call
Momo's management will host an earnings conference call on
Dial-in details for the earnings conference call are as follows:
International: +65 6713 5090
U.S. Toll Free: +1 866 519 4004
Hong Kong Toll Free: 800-906601
Mainland
Conference ID: 5966676
Please dial in 15 minutes before the call is scheduled to begin.
A telephone replay of the call will be available after the conclusion of the conference call through
International: +61-2-8199 0299
U.S. Toll Free: +1 646 254 3697
Passcode: 5966676
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Momo's website at http://ir.immomo.com.
About Momo
Momo is a leading mobile social networking platform in
Safe Harbor Statement
This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our preliminary unaudited results for the second quarter of 2015 and our management quotes.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the second quarter of 2015 are preliminary, unaudited and subject to audit adjustment. In addition, we may be unable to grow our business in the manner planned. We may also modify our strategy for growth. In addition, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to effectively manage our rapid growth, our ability to grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, and our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the
All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.
____________________
(1) MAU during a given calendar month is defined as Momo users who accessed our platform through Momo mobile application and utilized any of the functions on our platform for at least one day during the 30-day period counting back from the last day of such calendar month.
| Momo Inc. | ||||
| Unaudited Condensed Consolidated Statement of Operations | ||||
| (US dollars in thousands, except per share data) | ||||
|
Three months ended June 30 |
First half year ended June 30 |
|||
| 2014 | 2015 | 2014 | 2015 | |
| Net revenues: | ||||
| Membership subscription | 5,578 | 14,834 | 8,744 | 27,855 |
| Mobile games | 2,475 | 7,674 | 4,438 | 13,808 |
| Mobile marketing | 89 | 6,733 | 118 | 12,777 |
| Other services | 298 | 1,485 | 586 | 2,610 |
| Total net revenues | 8,440 | 30,726 | 13,886 | 57,050 |
| Cost and expenses: | ||||
| Cost of revenues | (3,444) | (6,256) | (6,037) | (11,938) |
| Research and development | (1,577) | (5,986) | (2,890) | (10,696) |
| Sales and marketing | (7,199) | (14,826) | (9,071) | (21,605) |
| General and administrative | (3,340) | (4,334) | (4,333) | (8,602) |
| Total cost and expenses | (15,560) | (31,402) | (22,331) | (52,841) |
| Other operating income | -- | 235 | -- | 389 |
| (Loss) Income from operations | (7,120) | (441) | (8,445) | 4,598 |
| Interest income | 89 | 2,172 | 181 | 3,980 |
| (Loss) Income before income tax and share of income on equity method investments | (7,031) | 1,731 | (8,264) | 8,578 |
| Income tax expenses | -- | (33) | -- | (184) |
| (Loss) Income before share of income on equity method investments | (7,031) | 1,698 | (8,264) | 8,394 |
| Share of income on equity method investments | -- | 7 | -- | 10 |
| Net (loss) income attributable to Momo Inc. | (7,031) | 1,705 | (8,264) | 8,404 |
| Deemed dividend to preferred shareholders | (37,863) | -- | (40,301) | -- |
| Net (loss) income attributable to ordinary shareholders | (44,894) | 1,705 | (48,565) | 8,404 |
| Net (loss) income per share attributable to ordinary shareholders | ||||
| Basic | (0.58) | 0.00 | (0.58) | 0.02 |
| Diluted | (0.58) | 0.00 | (0.58) | 0.02 |
| Weighted average shares used in calculating net (loss) income per ordinary share | ||||
| Basic | 77,703,593 | 344,273,028 | 83,887,234 | 332,454,848 |
| Diluted | 77,703,593 | 401,178,629 | 83,887,234 | 401,598,258 |
| Momo Inc. | ||||
| Unaudited Condensed Consolidated Statement of Comprehensive Income | ||||
| (US dollars in thousands, except per share data) | ||||
|
Three months ended June 30 |
First half year ended June 30 |
|||
| 2014 | 2015 | 2014 | 2015 | |
| Net (loss) gain attributable to Momo Inc. | (7,031) | 1,705 | (8,264) | 8,404 |
| Other comprehensive income, net of tax of nil | ||||
| Foreign currency translation adjustment | 24 | (31) | (507) | 79 |
| Comprehensive (loss) gain attributable to Momo Inc. shareholders | (7,007) | 1,674 | (8,771) | 8,483 |
| Momo Inc. | ||
| Unaudited Condensed Consolidated Balance Sheets | ||
| ( US dollars in thousands) | ||
|
December 31 2014 |
June 30 2015 |
|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 450,968 | 103,139 |
| Term deposits | -- | 350,000 |
| Accounts receivable, net of allowance for doubtful accounts of $nil and $nil as of December 31, 2014 and June 30, 2015, respectively | 7,038 | 17,177 |
| Prepaid expenses and other current assets | 8,009 | 18,794 |
| Amount due from a related party | -- | 1,797 |
| Total current assets | 466,015 | 490,907 |
| Property and equipment, net | 9,936 | 12,468 |
| Intangible assets, net | -- | 524 |
| Rental deposits | 793 | 190 |
| Long term investments | 1,760 | 9,004 |
| Total assets | 478,504 | 513,093 |
| Liabilities and equity | ||
| Current liabilities | ||
| Accounts payable | 5,900 | 9,555 |
| Deferred revenue | 16,348 | 22,345 |
| Accrued expenses and other current liabilities | 9,415 | 16,343 |
| Amount due to related parties | 6,450 | 6,598 |
| Total current liabilities | 38,113 | 54,841 |
| Other non-current liabilities | -- | 2,135 |
| Total liabilities | 38,113 | 56,976 |
| Shareholder's equity (Note a) | 440,391 | 456,117 |
| Total liabilities and shareholder's equity | 478,504 | 513,093 |
| Note a: As of June 30, 2015, the number of ordinary shares issued and outstanding was 380,919,648. | ||
| Momo Inc. | ||||
| Unaudited Condensed Consolidated Statement of Cash Flows | ||||
| (US dollars in thousands) | ||||
|
Three months ended June 30 |
First half year ended June 30 |
|||
| 2014 | 2015 | 2014 | 2015 | |
| Cash flows from operating activities: | ||||
| Net (loss) income attributable to Momo Inc. | (7,031) | 1,705 | (8,264) | 8,404 |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
| Depreciation of property and equipment | 633 | 1,282 | 1,029 | 2,394 |
| Amortization of intangible assets | -- | 247 | -- | 377 |
| Share-based compensation | 1,663 | 4,252 | 2,625 | 6,995 |
| Investing income | -- | (7) | -- | (10) |
| Loss on disposal of property and equipment | 64 | -- | 64 | 5 |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | (469) | (4,426) | (2,488) | (10,099) |
| Prepaid expenses and other current assets | (2,967) | (7,328) | (4,611) | (10,176) |
| Amount due from a related party | 198 | 711 | 198 | (1,782) |
| Rental deposit | -- | 546 | (731) | 603 |
| Accounts payable | 2,730 | 2,593 | 4,527 | 3,512 |
| Income tax payable | -- | (151) | -- | -- |
| Deferred revenue | 2,800 | 2,603 | 6,586 | 5,964 |
| Accrued expenses and other current liabilities | 4,524 | 7,353 | 4,653 | 9,541 |
| Amount due to related parties | -- | 79 | -- | 148 |
| Other non-current liabilities | -- | (154) | -- | 2,136 |
| Net cash provided by operating activities | 2,145 | 9,305 | 3,588 | 18,012 |
| Cash flows from investing activities: | ||||
| Purchase of property and equipment | (3,988) | (3,317) | (5,063) | (4,802) |
| Purchase of intangible assets | -- | (30) | -- | (565) |
| Payment for long term investments | -- | (3,627) | -- | (7,235) |
| Pre-payment for long term investments in process | -- | (806) | -- | (806) |
| Purchase of term deposits | -- | -- | -- | (350,000) |
| Net cash used in investing activities | (3,988) | (7,780) | (5,063) | (363,408) |
| Cash flows from financing activities: | ||||
| Proceeds from issuance of convertible redeemable participating preferred shares | 211,750 | -- | 211,750 | -- |
| Repurchase of convertible redeemable participating preferred shares | (30,750) | -- | (30,750) | -- |
| Proceeds from exercise of options | -- | 162 | -- | 162 |
| Capital contribution from shareholders | 15 | -- | 15 | -- |
| Repurchase of ordinary shares | (58,044) | -- | (58,044) | -- |
| Payment for IPO costs | (165) | (500) | (165) | (2,634) |
| Net cash provided by financing activities | 122,806 | (338) | 122,806 | (2,472) |
| Effect of exchange rate on cash and cash equivalents | 36 | (14) | (485) | 39 |
| Net increase in cash and cash equivalents | 120,999 | 1,173 | 120,846 | (347,829) |
| Cash and cash equivalent at beginning of period | 55,221 | 101,966 | 55,374 | 450,968 |
| Cash and cash equivalent at end of period | 176,220 | 103,139 | 176,220 | 103,139 |
| Momo Inc. | ||||||
| Reconciliation of Non-GAAP financial measures to comparable GAAP measures | ||||||
| (US dollars in thousands, except per share data) | ||||||
| 1. Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures. | ||||||
|
Three months ended June 30, 2014 |
Three months ended June 30, 2015 |
|||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |
| Cost and operating expenses | (15,560) | 1,663(a) | (13,897) | (31,402) | 4,252 (b) | (27,150) |
| (Loss) income from operations | (7,120) | 1,663(a) | (5,457) | (441) | 4,252 (b) | 3,811 |
| Net (loss) income attributable to Momo Inc. | (7,031) | 1,663(a) | (5,368) | 1,705 | 4,252 (b) | 5,957 |
|
First half year ended June 30, 2014 |
First half year ended June 30, 2015 |
|||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |
| Cost and operating expenses | (22,331) | 2,625(c) | (19,706) | (52,841) | 6,995 (d) | (45,846) |
| (Loss) income from operations | (8,445) | 2,625(c) | (5,820) | 4,598 | 6,995 (d) | 11,593 |
| Net (loss) income attributable to Momo Inc. | (8,264) | 2,625(c) | (5,639) | 8,404 | 6,995 (d) | 15,399 |
| Notes: | ||||||
| (a) Adjustments to exclude share-based compensation of $1,663 from the unaudited condensed consolidated statements. | ||||||
| (b) Adjustments to exclude share-based compensation of $4,252 from the unaudited condensed consolidated statements. | ||||||
| (c) Adjustments to exclude share-based compensation of $2,625 from the unaudited condensed consolidated statements. | ||||||
| (d) Adjustments to exclude share-based compensation of $6,995 from the unaudited condensed consolidated statements. | ||||||
CONTACT: For investor and media inquiries, please contact:
Momo Inc.
Investor Relations
Phone: +861057310538
Email: ir@immomo.com
Christensen In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com