In This Article:
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Total Revenue (Q4 2024): RMB2.64 billion, down 12% year over year.
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Adjusted Operating Income (Q4 2024): RMB280 million with a margin of 10.6%.
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Mobile App and Standalone New Apps Revenue (Q4 2024): RMB2.42 billion, down 11% year over year.
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Standalone New App Revenue Growth (Q4 2024): Increased 37% year over year.
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Live Streaming Revenue (Q4 2024): RMB1.19 billion, down 16% year over year.
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Value Added Services Revenue (Q4 2024): RMB1.33 billion, down 7% year over year.
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Non-GAAP Net Income (Q4 2024): RMB230.5 million, compared to RMB514.7 million in Q4 2023.
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Cash and Cash Equivalents (End of 2024): RMB14.73 billion.
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Net Cash Provided by Operating Activities (Q4 2024): RMB423.6 million.
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Fiscal 2024 Total Revenue: RMB10.6 billion, compared to RMB12 billion in 2023.
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Fiscal 2024 Adjusted Operating Income: RMB1.173 billion with a margin of 16.3%.
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Special Cash Dividend: USD0.3 per ADS, totaling approximately USD50 million.
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hello Group Inc (NASDAQ:MOMO) reported a robust growth in its overseas business, contributing significantly to the group's financial standing.
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The company introduced an AI assistant chat tool to enhance user interaction and improve response rates, particularly targeting female users.
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Revenue from standalone new apps increased by 37% year over year, driven by rapid growth in overseas markets.
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The company has been successful in optimizing user acquisition costs and improving marketing efficiency, particularly through collaborations with influencers on platforms like Douyin.
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Hello Group Inc (NASDAQ:MOMO) announced a special cash dividend, marking the seventh consecutive year of returning value to shareholders.
Negative Points
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Total group revenue for Q4 was down 12% year over year, with a significant decline in mobile app revenue.
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The number of paying users decreased, particularly due to a reduction in low-return users, impacting overall user count.
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Live streaming revenue saw a 16% year-over-year decline, attributed to reduced revenue-oriented competition events and spending softness among top-paying users.
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Tantan's revenue and user scale continued to decline, with a 22% year-over-year decrease in Q4 revenue.
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The company faces challenges in maintaining profitability amid declining revenues and macroeconomic headwinds.
Q & A Highlights
Q: In the first quarter, the number of paying users on Momo decreased significantly. What caused this, and what is the impact on revenue and profit? Are there further adjustments planned for live streaming and value-added services? A: Sichuan Zhang, COO: The decline in paying users is due to our decision to focus on profitability rather than acquiring low-return users. This shift should enhance our main business's profitability. We have improved Momo's content and will focus on adding engaging features while continuing cost-saving measures. Peng Hui, CFO: Despite the decline in paying users, the core user engagement remains strong, and we expect the "dolphin" user group to drive business stability. Regulatory and macroeconomic factors will influence revenue, with a low 10% revenue decline expected for 2025.