MOMO Stock Listing:
A Case Study in Social Messaging Liquidity

MOMO is a Chinese Social Messaging App

The App successfully leverages its users’ natural need to socialize among themselves, and helps them meet new people nearby.
It currently has 78 million monthly active users.
MOMO is only available in China. It’s the third largest in China behind WeChat and QQ.

Momo has a clever and personal matching algorithm based on location, user interests and nearby events. Happy with the type of connections they were making, early users kept coming back. The app saw its monthly active users grow from 2 million to 52 million between 2012 and 2014. China Internet Watch reported that Momo’s MAUs grew by about 1 million between 2012 and 2014, a period in which WeChat and QQ lost users. MOMO stock listed on the NASDAQ shortly afterwards.

This Listing Wasn’t an Exit

MOMO stock started trading publicly in December of 2014 in a very well-received IPO. Early private backer Ali-Baba, led a US$216M post IPO private placement in the company, adding $50M of the round to their MOMO stock position.

MOMO stock is enjoying an extended rally in the fall of 2016 as as investors continue to bet on social messaging companies, and interpersonal communication. Despite a doubling of MOMO’s post-IPO value, Alibaba hasn’t unloaded any of its MOMO stock quite yet. Apparently, as far as Alibaba is concerned, the public listing has more to do with assessing the true valuation of their MOMO stock than cashing in.

Revenue

Right now, MOMO generates revenue through the sale of premium memberships, and the offer of in-app purchases. This revenue earned MOMO stock holders $0.06/ share in 2015, making the app profitable inside its first two sales years. Growth in revenue continues as the company reported $0.11/share in the first quarter of 2016.

It’s uncommon for any company to experience such an aggressive growth pattern while still enjoying profitability. A still-growing user base isn’t the only angle that MOMO has on continued growth. MOMO has shown that their network can be used as a platform for all sorts of businesses, including live and recorded music and marketing.

Social apps keep users coming back, because it’s thrilling to meet new people and to get to know them. That puts MOMO and companies like it in a position to participate in the virtual businesses that have facilitated human social dynamics for years. That includes bars and pubs, cinemas, dating services, even travel and tourism. A social gaming platform business has been profitable for Japanese messaging app Line, itself the benefactor of a recent IPO.

Hello Pal

Hello pal has taken the urge to socialize that drives social messaging apps like MOMO and made it trans-cultural. The New Margin Ventures backed company is building a user-base full of ambitious young people with  a sense of adventure. The Company is growing quickly.

The potential in an engaging social app with a truly global reach is both wide and deep. Platforming potentials are evident in travel, business services, gaming and education arenas.

momologo

• Listed on NASDAQ at end of 2014
• Current valuation of US $3Bn
• Profitable in first two sales years
• Branching out into  mobile games

logo-little-pal@2x

• 4k to 10K new users signing up daily
• First companion app “Travel Pal” successfully launched

• The future of travel and social messaging

Great Messaging Apps Grow Quickly
Find Out about Hello Pal's Trajectory