Research Desk Line-up: SINA Corp. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 12, 2017 / Pro-Trader Daily publishes post-earnings coverage on Momo Inc. (NASDAQ: MOMO) following the Company's reporting of its first quarter fiscal 2017 financial results on May 23, 2017. The Chinese social media Company smashed past top- and bottom-line estimates and announced guidance for the upcoming quarter's revenue with growth expected to be up 191% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Internet Software & Services industry. Pro-TD has currently selected SINA Corporation (NASDAQ: SINA) for due-diligence and potential coverage as the Company announced on May 16, 2017, its unaudited financial results for Q1 2017 which ended on March 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on SINA Corp. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MOMO; also brushing on SINA. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=MOMO

http://protraderdaily.com/optin/?symbol=SINA

Earnings Reviewed

For the three months ended March 31, 2017, Momo's total net revenues were $265.2 million, reflecting an increase of 421%, compared to revenue of $50.9 million in Q1 2016. The Company's revenue was better than analysts' expectations of $242.8 million.

During Q1 2017, Momo's Live video service, which was launched in Q3 2015, generated revenues of $212.6, primarily driven by the increase in paying users of live video service. For the reported quarter, paying users of live video service reached 4.1 million.

Momo's value-added service revenues which mainly comprises of membership subscription revenues and virtual gift revenues, generated revenues of $22.9 million in Q1 2017, up 54% compared to revenue of $14.9 million generated during Q1 2016. The y-o-y growth in revenue was attributed to the increase of virtual gift service revenues, and the increase of membership subscription revenues as a result of the increase in average revenues per paying user, and the increase in the total number of members. Momo's members were 3.6 million and 3.2 million as of March 31, 2017 and 2016, respectively.

During Q1 2017, Momo's Mobile marketing revenues totaled $17.9 million, representing an increase of 45% from $12.4 million during Q12016, driven by an increase in effective cost per mile (eCPM) of the Company's in-feed advertising service as well as better sell-through of its existing advertisement inventories. For the reported quarter, the Company's Mobile games revenues surged 56% to $11.6 million compared with revenue of $7.4 million during the prior year's quarter. The increase in game revenues was mainly due to the contribution of a self-developed game, for which Momo recognized revenue on a gross basis.

During Q1 2017, Momo's cost and expenses was $175.1 million, up 279% from $46.1 million in Q1 2016. The increase in cost and expenses in the reported quarter was primarily attributable to an increase in revenue sharing with the broadcasters related to the Company's live video service and virtual gift recipient, increase in marketing and promotional expenses, an increase in personnel related costs including share-based compensation, an increase in fees to payment channels resulting from a higher volume of cash collection through such channels, and increased infrastructure related spending, such as bandwidth costs and server depreciation costs. The Company's non-GAAP costs and expenses were $165.6 million in the reported quarter, an increase of 309% from $40.5 million during the year ago same period.

For Q1 2017, Momo's income from operations was $91.0 million compared to $4.9 million during Q1 2016. The Company's non-GAAP income from operations totaled $100.6 million in the reported quarter, compared to $10.6 million during the same period last year.

Net income attributable to Momo Inc. was $81.2 million, or diluted net income per ADS of $0.40, in Q1 2017 compared to net income attributable to Momo Inc. of $7.1 million, or $0.03 diluted per ADS, in Q1 2016.The Company's non-GAAP net income attributable to Momo Inc. was $90.7 million, or $0.44 per diluted ADS, in the reported quarter, compared to $12.7 million, or $0.06 per diluted ADS, in the year ago same period. The Company's earnings outperformed Wall Street's expectations of $0.32 per share.

Cash Matters

As of March 31, 2017, Momo's cash, cash equivalents, and term deposits totaled $739.9 million compared to $651.3 million as of December 31, 2016. For the reported quarter, net cash provided by operating activities totaled $95.4 million compared to $5.6 million for the year earlier same quarter.

Outlook

For Q2 2017, Momo is forecasting total net revenues to be in the range of $283.0 million and $288.0 million, representing a y-o-y growth of 186% to 191%.

Stock Performance

On Friday, June 09, 2017, the stock closed the trading session at $37.44, tumbling 6.38% from its previous closing price of $39.99. A total volume of 9.81 million shares have exchanged hands, which was higher than the 3-month average volume of 6.79 million shares. Momo's stock price skyrocketed 21.64% in the last three months, 79.40% in the past six months, and 198.56% in the previous twelve months. Moreover, the stock soared 103.70% since the start of the year. The stock is trading at a PE ratio of 52.88. At Friday's closing price, the stock's net capitalization stands at $7.34 billion.

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