THE MOTLEY FOOL - Dec 31 - Momo is often called the "Tinder of China" because it owns two top dating apps: its eponymous app and Tantan, a Tinder clone it acquired in 2018. Most of Momo's revenue comes from its core app's live video streaming platform, which lets viewers buy virtual gifts for their favorite broadcasters. A smaller percentage comes from ads, mini-games, and premium dating services. Momo's stock rallied ~50% over the past 12 months, even as it faced Tantan's temporary suspension from Chinese app stores.
- Growing its users and engagement rates
Its monthly active users (MAUs) on its core app rose 3% annually to 114.1M last quarter, marking a slowdown from previous quarters. To bring in more users, Momo launched a new version of its app in August.
- Supporting the "healthy" growth of its live videos
Momo is closely monitoring its live video platform to avoid a crackdown by China's cyberspace regulators.
- Growing its base of paid users
Its number of paid users, including Tantan, grew 7% annually to 13.4M last quarter. That represents just a tiny slice of its total MAUs, but it's implementing fresh strategies to boost that percentage.
- The monetization of Tantan
Tantan grew its paid users 41% annually to 4.5M last quarter. These users pay for premium features like unlimited swipes and more matches. Tantan's total revenue rose 89% annually to 310M yuan ($44M), or 7% of Momo's top line.