Shares of Chinese social video and online dating company Momo (NASDAQ: MOMO) jumped as much as 16.3% on Tuesday. As of 1:21 p.m. EDT, the stock was up 13.1%.
The stock's gain follows the release of the company's fourth-quarter and full-year results. Bullishness toward the stock was likely fueled by the company's higher-than-expected fourth-quarter revenue and non-GAAP earnings per share.
Momo's fourth-quarter revenue was 3.84 billion renminbi (RMB), or $559.1 million. This is up 50% compared to revenue in the year-ago quarter. Non-GAAP earnings per American depositary share (ADS) climbed from $0.53 in the year-ago quarter to $0.59.
Analysts, on average, were expecting fourth-quarter revenue of $532.8 million and non-GAAP EPS of $0.52.
"Q4 was a solid quarter, closing out a fruitful year of 2018," said CEO Yan Tang in the company's fourth-quarter earnings release. "I am pleased with the progress we made in 2018 in product innovation, monetization, financial performance and the strengthening of the Company's position as a leading player in China's open social space."
The company said it expects first-quarter revenue to rise 28% to 32% year over year to between 3.55 billion and 3.65 billion renminbi. But management isn't providing guidance in U.S. dollar terms "due to the recent volatility and uncertainty in foreign exchange rate."
"We look forward to delivering more results to our shareholders in 2019," said Tang.
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