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  "documentTitle": "Momo, Inc. (MOMO)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2018-06-27 00:00:00",
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  "notes": "The slide uses testimonials from various agencies to build a case for Momo's declining market position and margin pressure.",
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      "text": "Spruce Point believes that increased competition amongst platforms and consolidation amongst agencies will force Momo to lower virtual gift retention and increase cost of revenues going forward",
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      "text": "Momo's virtual currency gifting retention rate was described by agencies as being between 50%-60% depending on the size of the agency",
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      "text": "Momo growth is stabilizing after rapid expansion, current growth is very weak and it is a very risky period. Momo was the No 1 now it is not. Now entertainment media is the leading content online. Fans like Douyin the most. Super Agency #8",
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      "text": "\"It looks like Now will overtake Momo, no other platforms look likely to overtake Momo. Now has the huge Tencent platform for promotion.\" – Large Agency #1",
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      "text": "Spruce Point believes that increased competition amongst platforms and consolidation amongst agencies will force Momo to lower virtual gift retention and increase cost of revenues going forward",
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      "text": "\"Now is becoming much better. The audience is fresher and the broadcasters are more authentic. Now only approves 30% of broadcasters compared with Momos 45%. The big spenders spend more on Now.\" – Small Agency #6",
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      "text": "\"Now platform traffic development is really good. Their traffic is constantly increasing. Momo's traffic is not as good. For us older agencies we can make money, new agencies cannot make money.\" – Super Agency #7",
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      "text": "We are trying out other channels, Now is really good at the moment, Douyin has just started doing live broadcasting, so we are just monitoring it. Douyin is the hottest channel recently. – Small Agency #4",
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      "text": "Based on publicly available information and our interviews, Spruce Point believes most of the credible competing platforms maintain 40%-55% of virtual currency gifting and emerging threat Now maintains only 30%-40% (higher cost of revenues)",
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      "text": "Half the agencies that we questioned had very favorable things to say about Now (backed by Tencent) and Douyin (backed by Bytedance) sounds as if it is the hottest channel at the moment",
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      "text": "\"It looks like Now will overtake Momo, no other platforms look likely to overtake Momo. Now has the huge Tencent platform for promotion.\" — Large Agency #1; \"Now is becoming much better. The audience is fresher and the broadcasters are more authentic. Now only approves 30% of broadcasters compared with Momos 45%. The big spenders spend more on Now.\" — Small Agency #6; \"We are trying out other channels, Now is really good at the moment, Douyin has just started doing live broadcasting, so we are just monitoring it. Douyin is the hottest channel recently.\" — Small Agency #4; \"Now platform traffic development is really good. Their traffic is constantly increasing. Momo's traffic is not as good. For us older agencies we can make money, new agencies cannot make money.\" — Super Agency #7; \"Momo growth is stabilizing after rapid expansion, current growth is very weak and it is a very risky period. Momo was the No 1 it is not. Now entertainment media is the leading content online. Fans like Douyin the most.\" — Super Agency #8",
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      "text": "Live Video Financial Impact From New Competition And Shift In Strategy",
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