Location-based social networking app Momo reported a 319% year-over-year increase in revenue for the third quarter, mainly driven by growth in user-generated video streaming revenues.
Virtual gift sales during live video streams increased 188% quarter over quarter, accounting for 69% of Momo’s total revenue in the quarter.
Paying users for the live streaming service doubled quarter over quarter. Average revenue per paying user (ARPU) was about US$48.
More than 10,000 paying users spent an average of RMB5000 (about US$740) monthly, according to CEO Tang Yan. More than 40% of broadcasters made RMB30,000 (roughly US$4400) or more monthly.
Hani, the separate app for live video streaming launched by Momo in March 2016, has reached one million monthly active users, according to management.
Cost and expenses increased 199% due to increases in revenue sharing with live video broadcasters, fees to payment service providers, bandwidth costs as well as share-based compensation expenses.
Momo 7.0, a major update released in the last August, added Moments, a short video capturing and sharing service where virtual gift giving is also available. In October the app added audio and video communications capabilities provided by Agora.io.