Hello (MOMO)2019-08-27 18:30Financial Data and Key Metrics Changes - Total revenue for Q2 2019 reached RMB4.15 billion, up 32% year-over-year [7][40] - Adjusted operating income for the quarter was RMB1.45 billion, representing a 35% adjusted operating margin [8][41] - Non-GAAP net income attributable to Momo was RMB1.24 billion, a 39% increase year-over-year [40][41] - Non-GAAP gross margin improved slightly by 1 percentage point due to lower payout ratios [42] Business Line Data and Key Metrics Changes - Core Momo app had 113.5 million monthly active users, up 5% year-over-year but down 1% from the previous quarter [9] - Total paying users for the core Momo platform was 8.6 million, down by 400,000 from the previous quarter [10] - Revenue from live broadcasting business was RMB3.1 billion, an increase of 18% year-over-year [20] - Revenue from value-added services (VAS) reached RMB948.4 million, a 169% growth year-over-year [26] Market Data and Key Metrics Changes - Tantan's paying users decreased to 3.2 million in Q2 2019 due to download and payment service suspensions, but rebounded to 4.1 million by August 25 [13][30] - Mobile marketing revenue was RMB76.2 million, a 46% year-over-year decrease [29] Company Strategy and Development Direction - Company aims to grow user base and engagement through product innovations and effective marketing [15] - Focus on driving monetization growth from Tantan through optimization of existing premium features and introduction of new paying experiences [15][36] - Plans to convert low ARPPU membership subscribers into higher ARPPU VAS paying users [12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth after overcoming homepage suspension challenges [7] - Anticipated that total number of paying users on core Momo will return to growth from Q3 onward [12] - Management noted that Tantan has ample room for growth in both domestic and overseas markets [14][39] Other Important Information - Company ended Q2 2019 with cash and cash equivalents totaling RMB12.5 billion [46] - Non-GAAP R&D expenses increased to RMB204.8 million, reflecting investment in product innovation [43] Q&A Session Summary Question: Tantan's revenue and bottom line outlook for the second half - Management expects a quarter-on-quarter grossing increase of around 30% to 40%, with revenue guidance assuming a sequential growth of around 10% [51] Question: Industry outlook and Momo's strategies - Management acknowledged challenges in user acquisition but highlighted growth opportunities in open social space and overseas markets [54][57] Question: Tantan's ARPPU growth and new features - Management indicated that ARPPU growth was driven by optimizations, with expectations for revenue to be affected in Q3 due to lagging effects [60][61] Question: Uniqueness of Momo in the competitive landscape - Management emphasized that Momo's core social use case differentiates it from competitors, and noted strong growth in professional broadcasters and agencies [64][67]