Chinese Mobile Social Networking Service Momo Reports Profit; Shares Continue Gains
Chinese social networking service Momo Inc. reported a profit of US$6.7 million [$8.5 million] net income in its first quarter, showing promise as the newest Internet start-up player in the market.
Momo first launched its app in 2011. Although its future at the time it registered for initial public offering with the United States Stock Exchange may seem bleak, its profits soared surpassing predictions.
Momo reported earnings of 3 cents a share for the first quarter up from the decline of 8 cents a share in the year-ago quarter. The company has reported revenue of US$26.3 million for the first quarter increasing its gains by 383 percent.
Shares on Tuesday increased by 22.9 percent after it posted the profit report. The momentum continues for this mobile social networking firm with shares gaining 11.5 percent on Wednesday.
According to its financial result for the first quarter of 2015, net revenues increased 383% year over year to US$26.3 million, with its net income US$6.7 million, compared to a net loss of US$1.2 million for the same period last year.
“The first quarter of 2015 has been a fruitful quarter and a solid start to the year ahead of us. We continued to deliver strong topline growth and achieved profitability for the first time in our operating history," Yan Tang, Chairman and CEO of Momo, said in a statement.
Contributing to Momo’s success is its support from Alibaba, China’s biggest e-commerce company, according to Bloomberg. Alibaba owns 21 percent of Momo’s shares. The company gets its income from sales through subscription fees.
Momo enables its users to connect with each other through location-based feature, and it also boasts of 60.2 million monthly active users. It is also aims at attracting China’s mobile Internet users, which is estimated at 500,000.
An article in Motley Fool stated that being the third largest mobile social networking site in China, just behind WeChat and Mobile QQ, Momo is performing well as a young company. It was able to gain profit in less than two years after it first started generating sales.
London-based Audioboom (LSE:BOOM) is also a young social media company that is a name to reckon with. The Audioboom platform allows content partners to bring their content to millions of fans worldwide via embeddable players, mobile applications, Facebook & Twitter integration, according to the company website.
The company’s audio social platform has millions of active users in all platforms that include mobile applications and website partners. It has 2,000 content channels that include one of the largest international broadcasters such as BBC. Audioboom is not only used by radio stations, it is also utilised by broadcasters, journalists, producers, podcasters, musicians and artists to make their content go further.
Contact the writer: a.lu@ibtimes.com.au
