BNL FINANCE - June 28 - Momo started as an online dating app and has now progressed to being a full social media company. Momo monetizes its users in the following ways:
- Paid membership subscriptions – $2 a month, or less if a user commits to a longer term of use.
- Virtual gifts or on-site purchases
Active users reached 85M in March 2017, up 18% year on year. Q1, 2017 revenue surged by 412% YOY, to reach $265M. The main revenue driver is live video streaming (3.5M paying subscribers). Momo has a market cap of $7.6B, zero debt, $739M cash, and a 1 year return of 262%. 2017 PE is 29. EPS is forecast to increase by 3.6 fold by end 2019, consensus price target is $48.30, about 24% upside.