Momo Inc. (NASDAQ: MOMO), a Chinese mobile social networking platform, on Tuesday reported first quarter revenue and profit that beat analysts’ earnings, but shares were still down nearly 4 percent.
The company said net income jumped 615 percent to $90.7 million in the first quarter. Adjust net income per share was $0.44, compared with $0.06 per share a year earlier. Revenue rose 421 percent year over year to $265.2 million.
Analysts had projected earnings of 32 cents on $242.8 million in revenue.
The strong revenue growth is boosted by robust growth in its live video service business. Since live video service was launched in 2015, it has been growing rapidly and kept its momentum. Revenue from live video service rose to 212.6 million in the first quarter, accounting 80 percent of the total revenue. Paying users of live video service reached 4.1 million in the first quarter.
Monthly Active Users rose 17.8 percent to 85.2 million in March 2017.
"The first quarter was a good start for the year 2017 with remarkable achievements across all of our strategic priorities," commented Yan Tang, Chairman and CEO of Momo. "Looking ahead into the future, we will continue to push forward with our strategy to drive the video transition and introduce more entertaining content to build recreational activities. We believe that will help us to further lower the barrier and increase the efficiency of open social activities, and thus allow us to appeal to a much broader base of users. We have more fun to introduce ahead and will unfold them one by one as we move down the journey."
Momo shares fell as much as 4 percent to $41.11 in the early trading. The stock has gained 124 percent this year.