Revenue and Subscribers Fall in Momo’s Q3 Financial Results
Momo revealed decreases in both net revenue and total subscribers when it published the unaudited financial results for the third quarter of 2020.
Net revenue was reported as RMB3,766.7 million ($554.8 million), a drop of more than 15% compared to the same time period last year. This fall was largely caused by a 27% decrease in live video service revenues, which the company attributes to a structural reform it implemented to ensure long-term traffic.
Tantan went a long way to offset the decline by more than doubling its video revenues to RMB396.7 million ($58.4 million).
Total paying users of live video, not counting the overlap between Momo and Tantan, also fell by approximately 300,000 to 13.1 million.
Li Wang, the new CEO of Momo, said in a statement: “The third quarter of 2020 was a busy quarter for us. As a result of management’s commitment and the persistence of our colleagues, the structural reform within the core live broadcasting business has achieved initial success.
“The critical metrics reflecting the healthiness of the ecosystem have been showing positive signs. As the content ecosystem gradually improved, non-event days’ revenue is also seeing strong rebound.
“Although we have more hard work to do down the path, what we have achieved so far gives us the confidence that our live streaming business has entered into a virtuous cycle supported by a sustainable content ecosystem.”
Former CEO Yan Tang stepped down from his position at the beginning of November and was replaced by the Chief Operating Officer, who was also a part of the initial founding team in 2011.
In the Q3 release, the company also announced that Chief Strategy Officer Xiaoliang Lei will be leaving his post for personal reasons effective immediately.
Read the full financial results here.