Momo Inc. (NASDAQ:MOMO) Q2 2019 Earnings Conference Call Transcript

Aug 27, 2019 • 08:00 am ET

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Momo Inc. (NASDAQ:MOMO) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to Second Quarter 2019 Momo Inc. Earnings Conference Call. [Operator Instructions]

Now, I'll like to hand the conference over to your first speaker today, Ms. Cathy Peng. Thank you. Please go ahead, ma'am.

Executive
Cathy Peng

Thank you, operator. Hello, everyone, and thank you for joining us today for Momo's second quarter 2019 earnings conference call. The Company's results were released earlier today and are available on the Company's IR website. On the call today from Momo are, Mr. Tang Yan, Co-Founder, Chairman and Chief Executive Officer; Mr. Wang Li, President and Chief Operating Officer; Mr. Wang Yu, Founder and Chief Executive Officer of Tantan; and Mr. Jonathan Zhang, Chief Financial Officer. They will discuss the Company's business operations and highlights, as well as the financials and guidance. They will all be available to answer your questions during the Q&A session that follows.

Before we begin, I would like to remind you that this call may contain forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties and factors is included in the Company's filings with the US Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under law.

I will now pass the call over to Mr. Tang. I will translate for him. Mr. Tang, please.

Executive
Yan Tang

[Foreign Speech]

Good morning and good evening everyone. Thank you for joining our conference call today, Q2 was a good quarter, despite the challenges caused by the homepage suspension, the team was able to navigate through them with solid executions and came out stronger and poised for further growth in a healthier shape. At that the same time, I'm proud that we still delivered strong financial results amid those challenges. Now, my team and I will take you through the details.

[Foreign Speech]

Firstly, an overview of the financial performance. For the second 2019 total revenue reached RMB4.15 billion , up 32% year-over-year. Adjusted operating income for the quarter was RMB1.45 billion, representing a 35% adjusted operating margin. Excluding Tantan's financial impact, core Momo's adjusted operating income for the quarter was RMB1.5 billion, representing a 39% adjusted operating margin, up from 35% from the same period last year.

The consistent record of profit growth, coupled with a strong operating cash flow from the core Momo business, position the Company well to continue to deliver return to our shareholders while making investments to build long-term growth drivers.

[Foreign Speech]

Now,