Momo Inc. (NASDAQ:MOMO) Q2 2019 Earnings Conference Call - Final Transcript
Aug 27, 2019 • 08:00 am ET
subscription members, whose ARPPU was extremely low in the past into higher ARPPU VAS paying users going forward. With the issue around the homepage suspension behind us, we are confident that the total number of paying users on the core Momo will get back on the growth track from Q3 onward.
Now, turning to Tantan, due to the download suspension and the related in-app purchase ban on iPhone users, Tantan's paying users decreased to 3.2 million for the quarter. Tantan's download and payment service had been fully restored by mid July, since then we've started to see a strong rebound in all the core metrics, including the number of active users, paying subscribers, as well as the daily grossing. By August 25, the paying users already went back to 4.1 million.
The robustness of Tantan's recovery demonstrated the strong demand for online dating service in China and Tantan's irreplaceable position in this sector. There are hundreds of millions of millennials and the so-called Gen Z in China. Unlike in the western world, in Asian culture, people do not have as many offline options when it comes to discovering new relationships, making Internet dating service a more important source for romantic discoveries. At the same time, we also noticed that the stigma attached to online dating is gradually fading away among younger generations. These factors make us believe that Tantan has ample room to drive further growth in China.
On top of the addressable market domestically, we are now also seeing huge growth opportunities in the oversea markets. The team will continue to penetrate into these addressable markets through product and marketing endeavors. Our goal is to build Tantan into an important driver of the Company in the coming two [Phonetic] years.
As we put the temporary disruptions behind us and started second half of the year, I would like to reiterate on the four strategic priorities that we laid out at the beginning of the year: number one, continue to grow the user base and engagements through product innovations and effective marketing approaches; number two, drive steady and healthy growth from live broadcasting business through product and operational efforts; number three, cultivate a paying potential from middle cohort and long-tail users through richer VAS experience; and number four, drive monetization growth from Tantan through the optimization of existing premium features and the introduction of new paying experiences.
[Foreign Speech] I'm glad that we made good progresses across all these priority areas during the past quarter. I am going to elaborate a little bit more on the first priority, which is primarily related to user growth and product innovation. Wang Li will cover the second and the third, which are more monetization related and Wang Yu will be talking about Tantan's product and monetization endeavors later.
On the product side, I'm very happy to say that two of our earlier product experiments The Parking Lot and The Farm gradually rose to popularity in the second