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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
Comments (6)
  • J. Woods
    , contributor
    Comments (37) | Send Message
    A company with aggressive top and bottom line growth - refreshing.
    25 Mar, 04:34 PM Reply Like
  • Tirusew
    , contributor
    Comments (17) | Send Message
    Someone here predicted 3 month ago, GOMO will surge to $30 a share. That person was a prophet.
    26 Mar, 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, 10:28 AM Reply Like
  • syeeeeed
    , contributor
    Comments (43) | Send Message
    i bought more into the dip. but i have no idea why it's going down. fundamentals are good.
    26 Mar, 11:11 AM Reply Like
  • J. Woods
    , contributor
    Comments (37) | 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, 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, 02:23 AM Reply Like
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