Hello (US:MOMO)2019-03-12 19:00Financial Performance - For Q4 2018, total revenue reached RMB3.84 billion, up 50% year-on-year, while adjusted operating income was RMB1.03 billion, up 30% from the same period last year [7] - For fiscal 2018, total revenue was RMB13.4 billion, up 51% year-on-year, and adjusted operating income reached RMB3.9 billion, up 42% year-on-year [7] - Excluding Tantan's financial impact, adjusted operating income for the year would have been RMB4.2 billion, reflecting a 32% adjusted operating margin compared to 31% last year [7] Business Lines Performance - Live broadcasting revenue for Q4 was RMB2.96 billion, a 36% increase year-on-year, with a 7% quarter-over-quarter growth in December despite a soft October and November [19] - Revenue from value-added services (VAS) reached RMB722.4 million in Q4, a 272% year-on-year growth, while excluding Tantan, Momo's VAS revenue was RMB499.4 million, a 157% year-on-year increase [22][24] - Mobile marketing revenue was RMB122.1 million, a 15% year-over-year decrease, attributed to a challenging macro environment and regulatory changes [25] Market Data - The core Momo app had 113.3 million monthly active users in Q4, up 14% year-on-year, with total paying users reaching 9.1 million, a 16% year-on-year growth [9][10] - Tantan's total paying users reached 3.9 million in Q4, with a quarterly net addition of 300,000 [27] Company Strategy and Industry Competition - The company aims to leverage new use cases to engage dormant users and enhance monetization features beyond live streaming shows [16] - The acquisition of Tantan has strengthened the company's leadership in China's open social space, with plans to make Tantan a new growth engine [17] - The company is exploring both self-development of new products and potential M&A opportunities to penetrate deeper into the market [63][64] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic risks but sees opportunities for growth through product and operational improvements [43] - The company plans to focus on cultivating new demand in live broadcasting and enhancing monetization strategies for VAS and Tantan [47] - Management is optimistic about the growth potential in the VAS business and Tantan, expecting significant revenue contributions in the coming years [48] Other Important Information - The Board declared a cash dividend of US$0.62 per ADS, totaling approximately US$128.3 million, reflecting the company's commitment to shareholder value [17] - The company has shifted its reporting currency from US dollars to renminbi to better reflect its operational performance [34] Q&A Session Summary Question: Update on macro impact to live broadcasting and 2019 revenue outlook - Management views macro conditions as a risk but sees favorable policies emerging, focusing on product and operational levers to drive growth [43][44] Question: Details on new features for live broadcasting - Management is introducing new product features and revamping the broadcaster ranking system to enhance user engagement and monetization [45] Question: Monetization level for Tantan's premium membership model - Tantan is testing various monetization models, including subscription and non-subscription options, with plans for official launches after thorough testing [56][57] Question: Momo's margin profile in 2019 - Management does not provide specific margin guidance but expects revenue growth from live streaming and VAS, while carefully managing costs [60][61] Question: Future strategy for Momo regarding app development - The company plans to develop new products internally and explore M&A opportunities to meet diverse market demands [63][64]