Sungy Mobile +3.5% AH on Q4 beat, app product growth


Sungy Mobile's (GOMO) Q4 revenue beat consensus by $500K, and its EPS by $0.11. The company expects Q1 revenue of RMB92M-RMB95M ($14.8M-$15.3M); the sole Q1 sell-side revenue estimate is at $14.9M.

Q4 gross margin was 75.1%, up from 65.3% a year ago. While revenue rose 63.5%, opex rose 82.1% Y/Y to $8.7M.

Mobile app product/services sales were Sungy's main growth driver, rising 230.7% Y/Y to $8.4M. Mobile reading services +15.9% to $4.3M, mobile portal ads -12% to $2.4M. A 407.6% Y/Y increase in ad sales for Sungy's GO apps fueled mobile app product growth.

Total GO app users rose 76% Y/Y to 364M, but paid downloads only rose 18.2% to 600K. GO monthly active users rose 44.6% to 94M.

Q4 results, PR

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Comments (6)
  • J. Woods
    , contributor
    Comments (697) | Send Message
     
    A company with aggressive top and bottom line growth - refreshing.
    25 Mar 2014, 04:34 PM Reply Like
  • Tirusew
    , contributor
    Comments (18) | Send Message
     
    Someone here predicted 3 month ago, GOMO will surge to $30 a share. That person was a prophet.
    26 Mar 2014, 07:29 AM Reply Like
  • Brian's Opine
    , contributor
    Comments (66) | Send Message
     
    Is today's drop over expectations, lesser paid downloads than anticipated, margins, China market fear or all of the above? Any thoughts-contemplating further buy on the dip or catching a falling knife?
    26 Mar 2014, 10:28 AM Reply Like
  • syeeeeed
    , contributor
    Comments (44) | Send Message
     
    i bought more into the dip. but i have no idea why it's going down. fundamentals are good.
    26 Mar 2014, 11:11 AM Reply Like
  • J. Woods
    , contributor
    Comments (697) | Send Message
     
    I bought in to the dip as well. I suspect that there were a lot of people who bought the stock up to try and sell on an earnings pop.

     

    Fundamentally, it still seems like a great way to play the high volume Android market...
    26 Mar 2014, 02:36 PM Reply Like
  • bigpadpad
    , contributor
    Comments (7) | Send Message
     
    A good short target because it went up too fast in such a short period of time. Also user downloads are slowing. Those who needs their products have already downloaded. Those who do not want their products will never do.
    27 Mar 2014, 02:23 AM Reply Like
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