Momo Inc. (NASDAQ:MOMO) Q2 2020 Earnings Conference Call - Final Transcript

Sep 03, 2020 • 08:00 am ET


Momo Inc. (NASDAQ:MOMO) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to Second Quarter 2020 Momo Inc.'s Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded today.

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

Cathy Peng

Thank you, operator. Hello, everyone, and thank you for joining us today for Momo's second quarter 2020 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 all -- they will discuss the Company's business operations and highlights as well as the financial 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 the 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 U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement 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.

Yan Tang

[Foreign Speech] Thank you for joining our conference call today. Q2 was a busy quarter for us. Although the economic impact from the pandemic still lingers, we have seen user engagements improving at a steady pace on Momo and Tantan. With things gradually coming back to normal on the traffic side starting from Q2, our teams have stepped up the efforts to drive toward our strategic goals.

[Foreign Speech] Now, let me quickly walk you through the key operating and financial results for the quarter. We are also going to give you an update on the Company's priorities for the year and how we are going to approach them in the coming few quarters. Firstly, a brief overview of the financial performance. For the second quarter of 2020, total revenue was RMB3.87 billion, down 7% year-on-year, but up 8% quarter-over-quarter. Adjusted operating income for the quarter was RMB1.04 billion, representing a 27% profit margin. Excluding Tantan's loss, adjusted operating income for the core Momo was RMB1.1 billion or a 33% profit margin. On Tantan's side, I'm