Earnings Labs

Hello Group Inc. (MOMO)

Q2 2016 Earnings Call· Tue, Aug 16, 2016

$6.13

-0.49%

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Transcript

Operator

Operator

Ladies and gentlemen, thank you for standing by and welcome to Momo's Second Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. I must advice you that this conference is being recorded today, August 16, 2016. I would now like to hand the conference over to your speaker today, Ms. Cathy Peng. Thank you, please go ahead.

Cathy Peng

Operator

Thank you, Operator. Hello everyone, and thank you for joining us today for Momo's second 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 (8610) 5731-0538. 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, conditions, 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 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. Thank you for joining our conference call today. In the absence of our CEO, Mr. Tang Yan, I will walk you through an operational update, followed by a financial review for the quarter. Second quarter 2016 was a very good quarter for us, both from a financial point of view and from business point of view. Total revenues for the quarter reached $99 million, up 222% year-over-year; and non-GAAP net income reached $23.2 million, up 290% year-over-year. The strong financial results came hand in hand with the progresses on operational front-end. Total MAUs on Momo platform, increased from $72.3 million as of March to $74.8 million as of June. To clarify, the total MAUs we are disclosing here, it doesn't include the active users on Hani, the standalone live video application we launched in late March. Overall, we are happy with the performance of Hani in terms of our user growth. However, right now, Hani is still at early stage of development. Once it reaches a more mature stage, we'll consider to disclosing more operating data about it. In the second quarter, we wrote out a few upgrades to enhance the overall user experience and to provide a more enjoyable social experience to our users. Just to name a few here, in order to cater to some of our users' demand for more video communication tools, in early May, we introduced video checking function on a one-to-one communication environment. In early April, we made live video on a separate tab next to the default nearby tab, and started it to connect broadcasters in a large scale. Deeper into Q2, we also added more interesting features such as customized filters and lenses, as well as more virtual gifts and associated special effects.…