Shares of Chinese audio company Lizhi Inc. (LIZI 4.17%) jumped as much as 31.1% on Wednesday after announcing fourth-quarter 2020 financial results. Shares drifted lower throughout the day and closed up 15.5% for the day.
Quarterly revenue rose 15% to $64.4 million as the average number of monthly users increased from 51.9 million to 58.4 million. Revenue easily topped guidance of between $56.9 million and $61.5 million. Net loss for the quarter was $0.9 million.
For the full year, revenue rose 27% to $230.3 million; net loss was $36.2 million, or $0.82 per share. On a non-generally accepted accounting principles (GAAP) basis, the loss was $0.11 per share.
The fact that Lizhi beat its own revenue guidance seems to be enough to push shares higher today. What investors should watch for is the company's U.S. apps gaining traction in 2021, which could be a boon for the company long term. Management said in its earnings release that its Tiya app was "among the top four social networking apps in the U.S. in November 2020," which could be a sign of wider adoption. If Lizhi can continue the momentum, this could be a great growth stock for investors.