#China #Beijing #Tantan #Hello Group Inc. #NASDAQ MOMO

Overview

Hello Group Inc. (NASDAQ: MOMO), a prominent player in the online social networking arena in mainland China, recently released its unaudited financial results for the fourth quarter and full fiscal year of 2024. The report highlights notable declines in both revenue and net income, reflecting the various challenges encountered throughout the year.

Fourth Quarter Highlights

1. Decreased Revenue: For the fourth quarter of 2024, Hello Group reported net revenues of RMB 2.636 billion ($361.2 million), showing a decline of 12.2% compared to the same period in the previous year.
2. Drastic Drop in Net Income: The company’s net income for this period plummeted to RMB 187.2 million ($25.6 million), down from RMB 452.5 million in Q4 2023.
3. Active Users: Monthly Active Users (MAUs) on the Tantan app dwindled to 10.8 million, from 13.7 million in December 2023.
4. Paying Users Decline: Momo had 5.7 million total paying users in Q4 2024, down from 7.4 million a year earlier, while Tantan reported 0.9 million paying users, decreasing from 1.2 million in the prior year.

Full Year Results

The complete financial results for 2024 also painted a concerning picture:
1. Net Revenues for the Year: Total net revenues reached RMB 10.563 billion ($1.447 billion), down by 12% from RMB 12 billion in 2023.
2. Comparative Net Income: The net income attributable to Hello Group was RMB 1.039 billion ($142.4 million), sharply decreased from RMB 1.958 billion in the previous year.
3. Declines in Income Per Share: Diluted net income per American Depositary Share (ADS) dwindled to RMB 5.57 ($0.76) for 2024, from RMB 9.84 a year ago.

Manager's Commentary

In light of these results, CEO Yan Tang commented, "2024 posed various challenges and opportunities. Our team effectively navigated external uncertainties, delivering satisfactory financial and operational outcomes. The Momo segment continued to thrive, and our overseas ventures contributed robustly to our overall financial health."

Tang indicated a commitment to driving innovation and growth in international markets, seeking to bolster the company's resilience and adaptability.

Special Cash Dividend

Additionally, Hello Group’s board has declared a special cash dividend of $0.30 per ADS, scheduled for payment on April 30, 2025, to share owners on record by April 11, 2025.

Share Repurchase Program Update

The Share Repurchase Program authorized by the board has been upsized and extended, now allowing the company to repurchase shares worth up to $486.1 million, reflecting ongoing confidence in its long-term strategy.

Looking Ahead

For Q1 2025, Hello Group forecasts total net revenues between RMB 2.4 billion and RMB 2.5 billion, indicating a slight decline year-over-year. This forecast represents the company's current perspective on operational conditions, which could be subject to alteration in light of market dynamics.

Hello Group’s dedication to tackling market challenges through strategic adjustments and a focus on key revenue sources signals a proactive approach towards recovery and long-term growth, particularly through its Momo and Tantan applications.

Conclusion

While the financial results from Hello Group Inc. indicate significant challenges ahead, the company’s management has expressed confidence in their strategies to foster innovation and adapt to changing market conditions. As they continue to streamline operations and enhance user engagement, stakeholders will be keenly awaiting their next moves in the competitive social networking landscape.