Investment Rating - The report maintains a neutral rating for MOMO US with a target price of $5.90, indicating a potential downside of 7.7% from the current price of $6.39 [1][8]. Core Insights - The core business of MOMO, including Momo and Tantan, is still in an adjustment phase, leading to continued pressure on short-term revenue and profits. The new business segments are growing rapidly but are expected to slow down [1]. - For the second quarter of 2024, MOMO's revenue is projected to decline by 12% year-on-year, with profits expected to align with previous forecasts. Tantan is focusing on optimizing user experience and matching efficiency, but may turn unprofitable in the second half of the year [1][2]. Financial Performance Summary - **Revenue Forecasts**: The new revenue forecasts for 2024 and 2025 have been adjusted downwards, with total revenue expected to be RMB 10,448 million for 2024 and RMB 10,303 million for 2025, reflecting a decrease of 3% and 7% respectively from previous estimates [2]. - **Adjusted Net Profit**: The adjusted net profit for 2024 is forecasted at RMB 1,144 million, down 6% from previous estimates, while for 2025 it is expected to be RMB 1,476 million, a decrease of 17% [2]. - **Gross Margin**: The adjusted gross margin is projected to be 40.1% for 2024, slightly down from 40.4% in the previous forecast [2]. - **Operating Income**: The operating income for the second quarter of 2024 is expected to be RMB 425 million, reflecting a 25% decline quarter-on-quarter and a 49% decline year-on-year [6]. Business Segment Performance - **Momo and Tantan**: Momo's revenue is expected to be RMB 9,573 million for 2024, while Tantan's revenue is projected at RMB 873 million, both showing declines from previous forecasts [2][6]. - **New Applications**: Revenue from new applications is expected to grow by 36% year-on-year, driven by the rapid growth of the overseas social product Soulchill [1]. Market Context - MOMO's market capitalization is currently below its net cash position, which stood at $1.7 billion at the end of the second quarter, indicating limited downside potential for the stock price [1].

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 ...

Loading...Loading...To gain an edge, this is what you need to know today.Canary In The Coal MinePlease click here for an enlarged chart of SPDR S&P 500 ETF Trust SPY which represents the benchmark stock market index S&P 500 (SPX).Note the following: The chart shows that the stock market continues to move higher. On SPY, $550 is the magnet for short term traders. The chart shows that the market is now significantly above the support zone. This illustrates that in the middle of the AI buying frenzy, if the mo ...

交银国际研究 公司更新 互联网 收盘价 目标价 潜在涨幅 2024年5月29日 美元4.84 美元5.90↓ +21.9% 挚文集团 (MOMO US) 核心业务收入仍承压，下半年降幅有望收窄  1季度运营利润超预期：2024年1季度收入25.6亿元（人民币，下同）， 个股评级 同/环比降9%/15%，略超我们/市场预期3%/4%。经调整运营利润 5.2亿元， 中性 同比降1% ，好于市场预期的4.4亿元，对应经调整运营利润率20%，同比 优化2个百分点，受益于陌陌和探探分成优化及营销费用控制，部分被新 1年股价表现 独立应用分成提升所抵消。经调整净利润5.1亿元（剔除4.5亿元预提税 MOMO US 项）影响，同比+26%，好于我们和市场预期的4.1亿元。 30% MSCI中国指数 20%  运营调整影响持续，陌陌/探探收入仍承压。陌陌主站：1季度直播/增值 10% 收入同比降11%/15%，主要受赛事收缩以及社交消费情绪疲弱影响，公司 0% -10% 增加优质内容供给及新互动玩法，部分弥补流水下滑，或拉动2季度恢复 -20% -30% 环比增长。新应用：收入维持强劲同比增势（52%），受益于海外社交产 ...

Hello Group Inc. (NASDAQ:MOMO) Q1 2024 Earnings Conference Call May 28, 2024 8:00 AM ET Company Participants Ashley Jing - Investor Relations Sichuan Zhang - Chief Operating Officer Hui Peng - Chief Financial Officer Yan Tang - Chief Executive Officer Conference Call Participants Xueqing Zhang - CICC Raphael Chen - BOCI Research Henry Sun - JPMorgan Operator Ladies and gentlemen, thank you for standing by, and welcome to the First Quarter 2024 Hello Group Incorporated Earnings Conference Call. All participa ...

BEIJING, May 28, 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 first quarter of 2024.   First Quarter of 2024 Highlights Net revenues decreased by 9.2% year over year to RMB2,560.4 million (US$354.6 million*) in the first quarter of 2024. Net income attributable to Hello Group Inc. decreased to RMB5.2 million (US$0.7 million) in the first quar ...