THE MOTLEY FOOL - May 29 - Momo, the owner of two top dating apps in China, shed 30% of its value over the past 12 months as investors fled Chinese tech stocks amid the escalating trade war. It was also hit by a triple whammy of bad news over the past month - regulators ordered the removal of its Tantan app from Chinese app stores, Apple suspended in-app payments for Tantan, and the company voluntarily suspended news feed posts in both Momo and Tantan for an internal review. Momo's revenue rose 35% annually to $555M in the first quarter, beating estimates by $23M. Its monthly active users on Momo and Tantan increased 11% to 114.4M, while its paid users on both apps jumped 73% to 14M. Those growth rates look solid, but Momo's growth in revenue and MAUs decelerated significantly over the past year. Momo expects its revenue to rise 27% to 30% annually during the second quarter. That forecast is encouraging, since it indicates that Momo can still squeeze out revenue from its namesake app's existing users. It also suggests that Momo could easily beat its own guidance if its services are fully restored during the quarter.
by Leo Sun
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