Momo Inc. (NASDAQ:MOMO) Q2 2019 Earnings Conference Call - Final Transcript
Aug 27, 2019 • 08:00 am ET
[Operator Instructions] Your first question comes from the line of Thomas Chong of Jefferies. Please go ahead.
Thanks management for taking my questions and congratulations on a solid set of results. My question is about Tantan. Can management give us some color about the revenue and the bottom line outlook for Tantan in the second half and also if there is any timing on profitability? Thank you.
Okay. So I've spoken quite a lot about second half monetization strategies already. The growth will be driven by both optimization of existing premium features and the intro of new ones. Our quarter-on-quarter grossing increase is actually better than our expectations. It's around 30% to 40% as we can see right now, but since there is a lagging effect between grossing and revenue that we talked about earlier, the revenue guidance assumes a sequential growth of around 10%. Now, this positive momentum we expect it to extend into Q4.
In terms of profitability, we expect to reach a domestic breakeven on a monthly basis somewhere around mid next year. If we manage to do it on a whole Company basis, including domestic and overseas market, depends on how aggressive we will be in overseas expansion during this year.
Actually, just a quick reminder before we take next person in. Given the time constraint we may need to limit one question to one analyst. Please be mindful of that. Operator, ready for next.
Yeah. The next question is from the line of Jialong Shi of Nomura. Please go ahead.
So I would translate my questions. My questions is about the industry outlook. From time to time, we were told by some of Momo's Chinese Internet peers that China's Internet population is already saturated and therefore, it is increasingly difficult to acquire new users. As a result, we thought some of your peers are turning their attention to lower-tier markets where the Internet penetration is relatively lower. So I just wonder what will be Momo's strategies to cope with these industry-wide challenges and what will be your MAU target for Momo app by end of this year, and where do you think is the sealing for Momo MAU in the long term? And also, I have a quick follow-up on Tantan. I just wonder what are the key overseas markets for Tantan? Thank you.
Okay. So this is Yu Wang, I'll first quickly answer the question on Tantan. So our primary user base overseas are in Southeast Asia and India. And we are doing quite well in terms of all the markets we have tried out overseas. We meet the primary competitors in all of these markets, but the dating market has an appetite for multiple apps, so we don't think that established players in new markets for us actually affect us that much in terms of our expansion potential. Thank you.
Okay. Now, we are ready to answer the question about the MAU outlook and the TAM