China’s social media company, Momo Inc (NASDAQ: MOMO) reported its fourth quarter and full year financial results. For the fourth quarter, the company topped fourth quarter estimates, sending shares over 10 percent higher on Wednesday.
For the fourth quarter, Momo reported revenue of $386.4 million, increasing 57 percent year over year, and topping analysts’ estimates of $381.54 million. The company reported an EPS of $0.53, compared to $0.44 the same period last year, and beating analysts’ estimates of $0.46.
Momo showed strong growth in its live video service segment, helping it drive its fourth quarter. Live video service revenue jumped to $327.9 million from $194.8 a year prior, accounting for over 84 percent of Momo’s quarterly revenue.
Value-added services, such as paid memberships and virtual gifts, drew in $29.4 million, increasing 54 percent year over year. Mobile marketing revenue increased by 11 percent, but the mobile gaming revenue decreased by 39 percent.
Momo reported monthly active users of 99.1 million, compared to 81.1 million the same period a year ago.
“We had a good fourth quarter, capping off a remarkable year. I am happy to see the initiatives that we took in prior quarters started to bear early fruits.” Commented Yan Tang, Chairman and CEO of Momo.
For the full year 2017, Momo reported a 138 percent increased in revenue to $1.3 billion year over year on an EPS of $1.77, compared to $0.87 in 2016.
Tang says the strong fourth quarter that heavily revolved around its live streaming service saw substantial development and says it will provide a solid foundation as the company’s business driver.
For the first quarter of 2018, Momo forecasts revenue between $387.0 million and $402.0 million, representing a 46 percent to 52 percent increase year over year.
Momo shares are up 47.1 percent year to date.