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  "documentTitle": "Momo, Inc. (MOMO)",
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  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-06-27 00:00:00",
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  "notes": "Uses a side-by-side comparison of management quotes and activist commentary to expose contradictions or strategic weaknesses.",
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      "kind": "callout",
      "text": "Complete 180 degree shift on the role that agencies play in supporting the business.",
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      "kind": "callout",
      "text": "Is our limited ad load already too much? Hmmm.",
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      "text": "The move towards professional content requires us to be dependent on agencies.",
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      "text": "New business model will require greater strategy and likely costs, but will be worth it.",
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      "text": "Core use case of nearby people and instant messaging are limited. There goes the baby with the bath water.",
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      "kind": "paragraph",
      "text": "Tang Yan Q3 '17 Earnings Call: Other than these efforts, we are also working to strengthen our collaborations with professional agencies... [full text excerpt]",
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      "text": "Other than these efforts, we are also working to strengthen our collaborations with professional agencies in building our talent pool and improving the content offerings. Historically, agencies have a limited role in Momo's live streaming ecosystem. We have noticed, since earlier this year that some quality talent agencies and MCNs are becoming increasingly mature in terms of talent management and content development. As a result, we are adjusting our operational policies to better support the high value-added agencies in traffic and other resources, as well as economic incentive. We believe that such adjustment will give the quality agencies bigger room to develop and does better motivate them to help us in developing talent and driving constant quality and diversity. It will also allow them to grow their business in a bigger way within our ecosystem, which in turn will grow ours. In November, we rolled out a trial plan, whereby the qualified agencies are provided with a different level of additional cash incentives if they reach certain growth targets. Although such incentives will likely cause cost in revenue to continue to fluctuate in the future, we believe it will better motivate the agencies and individual broadcasters to invest and grow their business within our ecosystem, which in turn will grow ours. Moving on to mobile marketing business, the new homepage design of 8.0 has diverted traffic from nearby people to other product modules. At the same time, we have also reduced the number of ad units in the nearby posts from 3 to 1. As nearby people and nearby posts are the two major carriers of the ad impressions. The 8.0-related changes have led to a significant decline in the ad inventory supply resulting in a sequential decrease in mobile marketing revenues during the third quarter. On the product side, one of the key hurdles that we had in improving the long-term user retention was the fact that our core use case, which was pretty much based on nearby people and instant messaging was kind of limited. In the past two years' time, we have made a lot of progresses in expanding the social use cases. — Tang Yan Q3 '17 Earnings Call",
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      "text": "Strategic Shift After Flattening Paid User Growth In Live Video During Q2 And Q3 2017 (Cont'd)",
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