Shares of Momo (NASDAQ:MOMO) have plunged today, down by 14% as of 12:10 p.m. EDT, after the company reported second-quarter earnings. The results were mixed relative to expectations but guidance was lacking.
Revenue in the second quarter declined by 7% to 3.87 billion yuan ($547.5 million), which was slightly ahead of the 3.84 billion yuan that analysts were expecting. That translated into adjusted earnings per American depositary share (ADS) of 3.05 yuan ($0.43), also topping the consensus estimate of 2.94 yuan per ADS. Monthly active users (MAUs) fell slightly to 111.5 million, and total paying users were 12.8 million.
"With things gradually coming back to normal on the traffic side, starting from the second quarter of 2020, our teams have stepped up efforts to push toward our long term strategic goals." CEO Yan Tang said in a statement. "I am glad to see that Tantan has reached a breakthrough with its testing of live video service."
The Chinese social media company's board of directors today authorized a share repurchase program for up to $300 million in buybacks over the next 12 months.
Guidance for the third quarter calls for revenue of 3.7 billion yuan to 3.8 billion yuan ($540.4 million to $555 million), which is shy of the 4.32 billion yuan that analysts are modeling for. Momo attributed the expected slump in sales to impacts from the COVID-19 pandemic.