Investors sent Momo shares up 12% to $43.59 after the opening bell.
For the quarter ended March 31, the Chinese location-based social networking app and entertainment platform reported earnings of US$0.69 per share on revenue of US$435.1mln. The consensus earnings estimate was US$0.51 per share on revenue of US$402mln. Revenue grew 64.1% on a year-over-year basis.
Momo recently made a big push into dating services by acquiring Tantan, China’s equivalent of Tinder for US$600mln to consolidate its online dating and social networking platform.
"We closed the acquisition of Tantan in May and together will be moving forward as a dominant player in China's open social territory. Tantan has made remarkable progresses in user growth and monetization,” said Momo Inc. CEO Yan Tang.
“We believe Tantan has a great deal of potential to be unlocked and will be adding tremendous value to our ecosystem in the future," he added.
The company said Tantan has enabled 5 billion matches since launching in 2015. As a point of comparison, leading U.S. dating app Tinder says that its enabled 8 billion matches since its launch in 2012.
The CEO said the “content ecosystem” would continue to improve, driving Momo’s “organic growth momentum” for its live streaming business.
Momo Inc. said the total paying users for its live video service and value-added service, without double counting the overlap, were 8.1 million for the first quarter, compared to 7 million for the first quarter of 2017.
The company also reported 103.3 million active users with a strong outlook, so this will help bump up its prospects.
Momo said it expects second-quarter revenue of US$470mln to US$485mln. The current consensus revenue estimate is US$433 for the quarter ending June 30, 2018.