Momo Second Quarter Revenue Drops 6.8% in Latest Financial Results
Momo has published its final results for the second quarter of 2020, ahead of the Nasdaq market opening for trading.
Net revenue was reported as approximately $547.5 million, marking a year-on-year decrease of 6.8%. Revenue for the first half of the year also fell by 5.2% compared to the first six months of the 2019 financial year.
The decline in revenue could be attributed to a loss in traffic caused by the COVID-19 outbreak. Monthly active users on the Momo app were 111.5 million in June 2020, a decrease of two million compared to the same month in 2019.
However, premium subscribers on Tantan increased by 700,000 to 3.9 million.
Chairman and CEO Yan Tang said in a statement: “The second quarter of 2020 was a busy quarter for us. With things gradually coming back to normal on the traffic side, starting from the second quarter of 2020, our teams have stepped up efforts to push toward our long term strategic goals.
“I am glad to see that Tantan has reached a breakthrough with its testing of live video service. With the strength coming from Tantan and the value-added service on the core Momo, we can now focus more on driving structural changes to the core live broadcasting business so that it can grow healthily and steadily in the new macro environment.”
Momo also announced that its board of directors voted in favour of a share repurchase scheme, which could see the company buy back up to $300 million of its shares over the coming 12 months.
Read the full results here.