Sungy -21.2% AH on Q2 miss, guidance, MAU drop, CFO's resignation

|About: Sungy Mobile Limited (GOMO)|By:, SA News Editor

Along with its Q2 results, Sungy Mobile (NASDAQ:GOMO) announces CFO Winston Li has resigned for "personal reasons." A search has begun for a replacement.

Q3 guidance is for revenue of RMB90M-RMB95M ($14.7M-$15.5M), below an $18.3M consensus.

Mobile app revenue +43.5% Y/Y to $8.5M; mobile reading services -28% to $2.9M; mobile portal marketing services +8% to $2.3M; everything else +205% to $2.4M.

Gross margin fell 400 bps Y/Y to 65.9%, thanks partly to a mix shift away from mobile reading. Opex +96.6% to $9.9M (far above rev. growth of 25..2%).

Cumulative GO app downloads rose by 35M Q/Q to 436M. Average GO monthly active users (MAUs) totaled 96M, up from 81M a year ago but down from 100M in Q1. Paid GO downloads were flat Q/Q and Y/Y at 500K.

Sungy says it plans to spend more on marketing to grow "brand awareness and user engagement." The company insists it's making "tremendous strides in the analysis of user behavior, on-going customization and localization," and plans to continue diversifying its app portfolio.

Q2 results, PR