E-matchmakers turn money-spinners
Dating app Momo Inc anticipates its second-quarter revenue to come in between $470 million and $485 million, up from $435 million in the first quarter, which itself was up 64 percent year-onyear.
The first quarter was so good because all revenue streams pulled in a lot.
For instance, revenue from live video services surged 62 percent year-on-year to $37 million. Mobile games brought in $6.6 million, up 43 percent, according to CapitalWatch, an investment news site.
Tang Yan, chairman and CEO of Momo, attributed the growth to product and marketing initiatives. “The content ecosystem continues to improve,” Tang told CapitalWatch.
Founded in 2011 and listed on Nasdaq in 2014, Momo targets persons in the 20-30 agegroup. Users can upload videos, pictures, audios and texts; they can also network with like-minded people through chat groups based on location.
Momo likes to refer to itself as an ecosystem as it also offers a bouquet of services like live streaming, board games and group video chat with strangers.
According to CyZone, a provider of information on startups, Momo is seeking to expand its content offerings in order to grow more.
Toward this end, it acquired Tantan, another dating app, in a stock-and-cash deal worth about $800 million earlier this year.
“Momo and Tantan specialize in different segments,” CyZone quoted Tang as saying. The acquisition, Tang said, will add tremendous value to the Momo ecosystem.
Tantan focuses on one-onone interactions with its left- and right-swiping features. The app recommends dates to its users who are free to choose those they like by swiping right. They have to swipe left to indicate they are not interested. People can only get in touch with each other when they evince mutual interest.
“Tantan targets female users aged below 25,” said CyZone, “which is different from Momo’s focus.”
Huang Xinyi, 29, a Beijingbased filmmaker, said: “Tantan’s way of finding dates is more interesting and casual, and different from traditional dating websites that indirectly make users feel pressured about getting married. I especially like the function that allows me to block my phone contacts.
“I wouldn’t like my friends to know I’m using online dating apps. Although more people are getting used to the concept, not a lot are actually using these apps regularly.”
On inherent risks like the possibility of choosing undesirable people as partners, Huang said, “It would be better if they offer more targeted services so that dates more precisely match my needs. Perhaps, it’s a bit too much to ask for, given that most of their services are free.”
$37million Momo’s revenue from live video services in the first quarter, up 62 percent year-on-year