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.
Has irrational exuberance given way to panic selling? Internet stocks are off again today, as the Street registers disappointment with earnings reports from AOL, Groupon, Zulily, SouFun, 500.com, and King.
Smart bargain hunting or catching a falling knife? After being bludgeoned almost ceaselessly over the last couple of weeks, many high-beta tech stocks are closing the day with sizable gains.
The rebound comes on a day when hedge fund Coatue Management announced plans to return over $2B to investors following a 9% March decline caused by tech stock losses. It also comes as several tech giants, including Apple, Microsoft, H-P, and IBM, finish the day near breakeven, or with modest losses.
Leading U.S. Internet gainers: LNKD +6.2%. P +6%. ZU +5%. SALE +7.2%. SSTK +6%. AOL +4.6%.
Chinese Internet gainers: EJ +9.1%. WBAI +8.9%. QIHU +7.9%. ATHM +8.1%. YY +6.8%. SFUN +8.7%. GOMO +9.8%. Ctrip and Qunar were among the sector's biggest gainers following M&A rumors.
Hit hard on multiple trading days last week, high-beta Chinese Internet and solar stocks are flying higher amid a tech rally.
Leading Chinese Internet gainers: GOMO +14.8% (tumbled last week post-earnings). BITA +10.2%. WUBA +8.9%. VIPS +6.4%. SFUN +6.4%. WBAI +6.3%. CCIH +5.9%. ATHM +5.8%.
Notable Chinese solar gainers: CSUN +9.7%. JKS +8.9%. TSL +5.4%. YGE +4.1%. JA Solar is rallying with the help of a bullish Northland coverage launch.
Recent IPOs King Digital (KING +4.5%) and Castlight Health (CSLT +16.1%) are among the winners. King remains 16% below its $22.50 IPO price. Castlight is 54% above its $16 IPO price, but well below a post-IPO high of $41.95.
Aided by King's poor debut and general momentum stock weakness, U.S. and Chinese Internet stocks have fallen hard for the second time this week.
In addition to King rival Zynga and newly-minted VR headset maker Facebook, Twitter (TWTR -7.1%) is among the leading U.S. decliners. Exactly 3 months after reaching a peak of $74.73, shares have fallen below their post-IPO opening price of $45.10. They remain well above their $26 IPO price.
Other U.S. decliners: P -5.2%. Z -6.2%. TRLA -7%. GSVC -4.8%. SVVC -4.1%.