Hello Group Inc. (NASDAQ: MOMO ) operates social media apps in China, where the number of potential clients is simply massive. The company has operated in the industry since 2011. With a lot of expertise accumulated, MOMO appears to be in a good position toLike the common kingfisher or Alcedo Atthis searches for small fish, I research small, and medium cap companies in Europe, the United States, and South America. You can find a common kingfisher in my profile.With close to 14 years in the financial industr ...

Investment Rating - The report maintains a **Neutral** rating for Momo Inc (MOMO US) with a target price of $7.40, representing a potential upside of 0.1% from the current price of $7.39 [1][4] Core Views - Momo's core business and Tantan are expected to remain under pressure due to ongoing business adjustments and weak social consumption trends [1] - Overseas business is growing rapidly, partially offsetting the decline in core business, with total revenue expected to decrease by 5% YoY in 2025 [1] - The company's market capitalization of $1.3 billion is below its net cash position of $1.4 billion as of Q3 2024, and its shareholder returns are leading among internet companies, with quarterly buybacks of $30-60 million and a dividend yield exceeding 7% [1] Financial Performance Q3 2024 Results - Revenue declined 12% YoY to RMB 2.68 billion, slightly better than expected, with adjusted net profit of RMB 490 million, down 19% YoY but above expectations [2] - Adjusted net margin was 18%, down 2 percentage points YoY, mainly due to increased operating expenses from higher overseas app revenue share and overall revenue decline [2] - Momo's live streaming and value-added services revenue declined 14% and 18% YoY respectively, while new app revenue grew 41% YoY, driven by overseas social product growth [2] - Tantan's revenue fell 28% YoY, with MAU and quarterly paying members declining by 900k and 100k respectively [2] Financial Forecasts - Revenue is expected to decline 12% YoY in Q4 2024, with the decline narrowing in 2025 as ecosystem adjustments conclude [2] - 2025 net profit forecast is revised down by 11% due to changes in revenue structure and ongoing new business investments [2] - For 2024E, revenue is forecast at RMB 10.526 billion, with adjusted net profit of RMB 1.3 billion, representing a net margin of 12.3% [3] - 2025E revenue is projected at RMB 10.015 billion, with adjusted net profit of RMB 1.308 billion and a net margin of 13.1% [3] Business Segments - Momo's revenue is expected to decline 3% YoY in Q4 2024, while Tantan's revenue is forecast to drop 26% YoY [16] - New independent social apps accounted for 16% of total revenue in Q3 2024, up from 2% in Q1 2021 [12] - Momo's live streaming revenue declined 45% YoY in Q3 2024, while value-added services revenue fell 19% YoY [14] Valuation and Shareholder Returns - The target price is based on 7x 2025E P/E ratio, raised from $5.90 to $7.40 [1] - The company's shareholder return policy is leading among internet peers, with quarterly buybacks of $30-60 million and a dividend yield exceeding 7% [1]

Exhibit 99.1 Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2024 BEIJING, CHINA, December 9, 2024 – Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading player in mainland China's online social networking space, today announced its unaudited financial results for the third quarter of 2024. Third Quarter of 2024 Highlights • Net revenues decreased by 12.1% year over year to RMB2,674.7 million (US$381.1 million*) in the third quarter of 2024. • Net incom ...

BEIJING, Nov. 11, 2024 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) (the "Company"), a leading player in mainland China's online social networking space, today announced that it will release its unaudited financial results for the third quarter ended September 30, 2024 before U.S. markets open on Monday, December 9, 2024. Hello Group's management will host an earnings conference call on Monday, December 9, 2024, at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on the same day). Preregis ...

交银国际研究 财务模型更新 | --- | --- | --- | --- | --- | |----------|----------------------|----------------------|----------------|-----------------------------| | | | | | | | | | | | | | 互联网 | 收盘价 美元 6.39 | 目标价 美元 5.90 | 潜在涨幅 -7.7% | 2024 年 9 月 4 日 | | 挚文集团 | (MOMO US) | | | | | | | | | | 核心业务仍在调整期，短期收入/利润继续承压 陌陌核心及探探仍处于调整期，叠加社交消费疲软影响，预计收入侧继续承 压。新业务维持快速增长，但增速将有所放缓。预计下半年陌陌收入同比降 12%，利润侧基本符合此前预期，探探聚焦优化用户体验和匹配效率，下半年 或转亏。我们相应下调2024/25年收入及利润预期，基于5倍2025年市盈率， 维持公司 5.9 美元目标价及中性评级。 核心业务继续承压，新业务维持増势。2024 年 2 季度收入同比降 14%，符 合市场预 ...

Financial Data and Key Metrics - Total group revenue for Q2 2024 was RMB2.69 billion, down 14% YoY but up 5% sequentially [5] - Adjusted operating income was RMB477 million, down 33% YoY and 7% sequentially, with a profit margin of 17.7%, down 4.9 percentage points YoY and 2.4 percentage points sequentially [5] - Non-GAAP net income attributable to the company was RMB449.2 million, compared to RMB632.1 million in Q2 2023 and RMB59.9 million in Q1 2024 [24] Business Segment Performance - Revenue from the Momo app and standalone new apps was RMB2.46 billion, down 30% YoY but up 6% sequentially, driven by overseas business growth [6] - Tantan's revenue was RMB234 million, down 27% YoY and 3% sequentially, with adjusted operating income of RMB20.6 million, representing a margin of 8.8% [7] - Revenue from standalone new apps reached RMB355 million, up 36% YoY and 4% sequentially, primarily driven by overseas business [22] Market Performance - Momo app live streaming revenue was RMB1.22 billion, down 50% YoY but up 6% sequentially, with a focus on maintaining a healthy social ecosystem [12] - Tantan's MAU decreased by 6% sequentially to 12.9 million in June, with 1 million paying users, down 100,000 sequentially [15] - Overseas business showed strong growth, with revenue from new apps increasing 36% YoY and 4% sequentially, driven by localization efforts [22] Strategic Direction and Industry Competition - The company aims to maintain the productivity of the Momo app's cash cow business while improving Tantan's core dating experience and expanding new endeavors [8] - Efforts to optimize the Momo app's community ecosystem and improve female user experience have led to increased two-way chats and matching rates [9] - Tantan is focusing on improving user experience by addressing authenticity and response issues, with short-term commercial sacrifices expected for long-term gains [20][21] Management Commentary on Operating Environment and Future Outlook - The company expects Q3 2024 revenue to be between RMB2.58 billion and RMB2.68 billion, representing a YoY decrease of 15.2% to 11.9% [32] - Management remains confident in the growth potential of the MENA region, with ongoing efforts to strengthen localization and expand product offerings [23][39] - For 2025, revenue growth will depend on macroeconomic and regulatory conditions, with the company prepared to manage costs tightly if revenue pressure persists [36] Other Important Information - The company paid a cash dividend of RMB716 million and repurchased RMB395 million worth of shares in Q2 2024 [31] - Non-GAAP R&D expenses decreased by 11% YoY to RMB179.9 million, with R&D personnel making up 62% of total employees [29] - Non-GAAP sales and marketing expenses increased to RMB360.6 million, or 16% of total revenue, due to an offline gala event [30] Q&A Session Summary Question: Core Momo's revenue and profit strategy - The company has adjusted its live streaming and VAS strategy to reduce revenue-oriented competition events, introducing new interactive features to offset revenue declines [34] - Revenue growth in 2025 will depend on macroeconomic and regulatory conditions, with the company focusing on long-term ecosystem health [34][36] Question: Overseas business progress and financial outlook - The company is accelerating localization efforts and expanding product offerings in the MENA region, with revenue growth expected to slow to mid-30s in H2 2024 before initiatives bear fruit [37][40] Question: Tantan's revamp and financial impact - Tantan is prioritizing user experience over short-term financial targets, with revenue expected to follow Q2's YoY decrease trend in H2 2024 [42][45] - The company believes that improving the dating experience is critical for long-term profitability, even if it results in short-term revenue fluctuations [44][45]

Hello Group Inc. Sponsored ADR (MOMO) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company would post earnings of $0.33 per share when it actually produced earnings of $0.04, delivering a surprise of -87.88%.Over the last four quarters, ...

Exhibit 99.1 Second Quarter of 2024 Highlights • Net revenues decreased by 14.2% year over year to RMB2,691.4 million (US$370.3 million*) in the second quarter of 2024. • Net income attributable to Hello Group Inc. decreased to RMB397.8 million (US$54.7 million) in the second quarter of 2024, from RMB568.4 million in the same period of 2023. • Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB449.2 million (US$61.8 million) in the second quarter of 2024, from RMB632.1 million in ...

BEIJING, Sept. 3, 2024 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading player in mainland China's online social networking space, today announced its unaudited financial results for the second quarter of 2024.  Second Quarter of 2024 HighlightsNet revenues decreased by 14.2% year over year to RMB2,691.4 million (US$370.3 million*) in the second quarter of 2024.Net income attributable to Hello Group Inc. decreased to RMB397.8 million (US$54.7 million) in the second ...

Asia-Pacific Images Studio In 2020, I wrote an article about Momo, Inc, in which I wrote about the company as a social media play which was experiencing impressive growth and trading at a relatively low P/E. I labeled the company a strong buy at the time, and unfortunately, the stock didn’t do so well, declining as the company’s growth more or less ended, although the company continued at profitability. Today we’ll be looking at the company, which has renamed itself as Hello Group (NASDAQ:MOMO), looking ...