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Wen / Li Ke Ke
Source: slightly larger reference (ID: hyzibenlun)
In recent years, focusing on social entrepreneurship, the company continues to explore innovative products and expand its boundaries from different perspectives.
De founder is a key step for most enterprises that want to develop healthily for a long time. In the long run, Ma Yun resigned as chairman of Alibaba’s board of directors, and Zhang Yong, a carefree son, took over. In the near future, it is a younger pinduoduo. Huang Zheng, the founder, handed over the post of CEO to Chen Lei, CTO.
In addition, companies such as Jingdong and byte skipping have successively carried out CEO iteration. The founders of “fast flowing and courageous retreat” have changed the direction of control at a higher level, or become more likely for enterprises. In short, the core appeal is to improve the health status.
Mo Mo is also among them.
On October 24, Momo announced that Wang Li, President and chief operating officer of the company, succeeded Tang Yan as CEO. The appointment took effect on November 1, and Tang Yan will continue to serve as chairman of the board of directors of the group.
Wang Li wrote in a subsequent letter to all staff members that the mobile Internet has been growing like a teenager for ten years. We have to face a new era for middle-aged people. In this process, he will look for opportunities in Momo’s market competition and strategic layout.
Momo has been established for nearly ten years and has been listed for six years. Among a large number of Internet technology companies, it can also be called “middle-aged”. Due to the common faults of enterprises, it is inevitable to have some “middle-aged crisis”. As Wang Li said in his open letter, Momo’s business model also has some unhealthy aspects, and its rapid development in the past has also brought some hidden dangers in terms of income structure and business ecology.
And behind this power transfer, it is Momo’s breakthrough “middle age”.
Why Wang Li?
In Tang Yankou, he is “no one is more competent than Wang Li in leading Momo”. Wang Li’s experience as president and chief operating officer in Momo and his nearly 10-year career in the company make him the best candidate for the new CEO.
Wang Li said, “it has been nearly ten years since I started this company. I can always say frankly: as the denominator of the company, I have never lost my professional attitude; as a member of the company, I have never lost my entrepreneurial spirit.”.
Photo: Wang Li
The Shanxi native, born in 1983, graduated from Beijing University of Aeronautics and Astronautics with a bachelor’s degree in management, went to Inner Mongolia and became a volunteer of “serving the west”. He has worked with Luo Yonghao and has been active in Niubo for many years with the ID of “boss Wang”.
Wang Li and Tang Yan met at Netease.
In June 2011, Wang Li, who is still in charge of microblog products, accepted Tang Yan’s invitation to join Momo as a partner and became the No. 6 employee of this start-up company. In the following years, he has experienced several positions, such as operation director, COO and President, and witnessed the whole process of Momo’s growth and growth. As he said in his open letter, “almost all the titles and functions in the company.”.
For the impression of the outside world, personality is his and Tang Yan’s common characteristics. For example, among the executives of a number of Internet technology companies, they rarely like to express their feelings directly.
In June 2013, Momo launched the emo express mall and its member services and officially launched the commercialization exploration. The outside world held a skeptical attitude. Some media believed that Momo’s commercialization missed the best time, while others held the view that Momo’s commercialization was too early. Wang Li, then the chief operating officer, joked on Weibo: “who should I listen to? Please give me some advice
Tang Yan followed: “dialectically, what you say is reasonable.”
In an open letter on the handover of CEO, Wang Li said that Tang Yan and I have worked together for many years and have different personalities and experiences, but they are a little similar. We all care about the width of our life, but he prefers the width of the industry, and I prefer the width of the profession.
“Based on this difference, we have a new division of labor – Tang Yanhui explores new areas and boundaries of the group’s business out of the founder’s excitement of opening up new territory; I will promote the healthy, stable and sustained growth of the group’s business based on the partners’ interest in intensive work.”
Indeed, leaving aside the label of “personalization” when it comes to the external world, Wang Li at home shows strength.
In April 2018, Wang Li began to serve as the president of Momo, fully participating in the company’s business and operation management. Just two months before that, Momo had just completed the most important deal in history – a $770 million acquisition of social products.
It is not easy to integrate the two companies because they are different in product form, user structure and corporate culture. More importantly, the significance of this merger is to find a new growth engine for Momo.
As a result, the top management at that time completed the task very well.
After being connected to Momo system, it has achieved rapid growth. The single quarter revenue increased from 30 million yuan in the second quarter of 2018 to 520 million yuan in the second quarter of this year, nearly 15 times higher in two years.
Source: “slightly big reference” collates Momo’s financial reports over the years
Under the excellent performance of exploration, Momo’s overall performance has also achieved stable improvement, with the annual revenue of 13.41 billion yuan and net profit of 3.45 billion yuan in 2018. In 2019, the revenue will further increase to 17.02 billion yuan, with a net profit of 4.49 billion yuan.
When Wang Li served as the president, the excellent performance of the company was the fundamental reason why Tang Yan could make the baton at ease.
Throughout the development process of Momo, Wang Li has played an inestimable role in many nodes. For example, Momo transformation live.
For a long time, as the head product of strangers’ social contact, Momo’s commercialization mainly focuses on value-added services and game realization, but this is what Tencent’s social products such as QQ and wechat are good at. Momo urgently needs a new business model to avoid the edge of penguins.
Wechat is a relatively closed ecology with social relations that can be split. Users often take offline relationships as the basis, add friends, and then split through the circle of friends. However, Momo is different. Users on the platform do not have the support of offline relationship, so it is impossible to conduct big data analysis like other products.
For the exploration of new performance growth point at that time, Momo can be said to be “feeling the stone across the river”.
In contrast to the closed wechat, Wang Li proposed the concept of “open social platform”.
“If we compare wechat to a covered office building, Momo is a public place exposed under the sky. Most of the time of users must be indoors, so the density and stickiness of office buildings must be very high. However, people always go out to public places and meet people who pass by. They may chat up or be silent. However, this is also a part of life. ” In 2016, Wang Li said in an interview.
However, the follow-up challenges of “open social platform” follow: with the increasing number of users of Momo platform, its social achievement efficiency is becoming lower and lower.
In 2015 and 2016, the popularity of WiFi, 4G networks and large screen mobile phones laid the foundation for the large-scale promotion of live video. Momo found an opportunity – the team bet on improving social efficiency on video.
In essence, video is to upgrade the social experience from static to dynamic, so that both sides in the communication field have the same perspective and maximize the communication efficiency. Wang Li believes that it is impossible for users to change their avatars or signatures every few days, but shooting real-time status video to reflect the current life is almost no threshold labor.
Momo was launched live in September 2015. Three months later, the red man live broadcast was officially launched. Then, in April 2016, the era of nationwide live broadcasting came.
The fact has proved that the product video bet is a correct choice, which will promote Momo to a new height.
In the third quarter of 2015, the revenue of Momo live broadcast business was only US $212000, accounting for only 0.6% of the total revenue. However, in the following quarters, the revenue share of the business increased rapidly.
In the first quarter of 2017, the live broadcast revenue has reached US $210 million, 1000 times that of the third quarter of 2015. The revenue share has also rapidly increased to 80.1%, becoming the largest source of Momo’s revenue. As a result, Momo’s share price rose from a dozen dollars in 2015 to about $40 in 2017.
Source: “slightly big reference” collates Momo’s financial reports over the years
At the same time of the blowout of the live broadcasting industry, that is, around 2015, a large number of live broadcast enterprises obtained market share by burning money. Interestingly, Momo’s live broadcasting business has remained profitable as always.
The core reason is that the live broadcast has always been a powerful supplement to Momo’s original social ecology, which makes them calm and restrained. Instead of signing up a host to attract new users, they win by increasing the length of stay of existing users.
Wang Li has always been a supporter and promoter of live broadcasting business. At the beginning, Momo internal for whether to increase the investment in live broadcasting business has been controversial, because its visits are not high. Wang Lijianxin, the medium of transmitting information, from text to pictures, voice to video, is an irreversible trend. This is very consistent with Momo, a social platform. This road must be unswervingly followed.
Tickets, bodies and children.
As a new CEO, Wang Li is about to “work hard” on these three issues. Specifically, “ticket” represents Momo’s sustainable profitability, “body” represents whether the company’s business model is healthy or not, and “child” is the expectation of the future and the exploration of innovative business.
As Wang Li said, “there are also unhealthy aspects of our business model.”. For Momo, the most intuitive weakness lies in the weakness of users and the bottleneck of transformation.
According to Momo’s second quarter financial report, the company’s active user scale in June this year was 115 million, down from 113.5 million in the same period last year. Affected by the epidemic situation, the income of live broadcasting services, which is usually over dependent, declined by as much as 16% in the second quarter, which also means that Momo needs to find a growth point of commercialization path again.
For a mature enterprise, short-term twists and turns are not the dominant factor of qualitative outcome. Wang Li clearly understands this truth. “All the unhealthy conditions we face are reversible. What we need is to face and solve the problems without fear of medical treatment.”
Boss Wang has confidence.
As the company’s consistent momentum, Momo now dominates the stranger social market. Although the overall scale of the decline, but Momo is still the track’s only live more than 100 million players. In contrast, other competitors are mostly in the scale of 10 million users.
Exploring the integration with Mo Mo is giving the company more imagination.
According to Momo’s second quarter financial report, in addition to the main income of paying members, the exploration team began to test the water broadcast business in the first quarter of this year, and achieved a result of 6.60 million yuan. In this quarter, the direct broadcast revenue of exploration reached 190 million yuan, with a month on month increase of more than 3000%.
Momo is not a company short of money. The company’s current cash reserves exceed 15 billion yuan, and the net operating cash flow in the first half of the year is 1.35 billion yuan. The user growth in the second quarter has also got rid of the impact of the epidemic and began to recover.
In recent years, focusing on social entrepreneurship, the company continues to explore innovative products. Last year, it launched a number of products, such as look, cue, Hertz and meet. This year, Muncy, dui, DUI and moduo began to expand their boundaries from different angles.
It is not a big chance that middle-aged people can run faster than young people, but the most direct factor to win is their wealth, status and experience, which come from the rich capital gradually accumulated in the past struggle.
From this point of view, Momo and Wang Li are fearless enough.
(statement: This article only represents the author’s point of view, not Sina’s position.)