Oscar Wong/Moment via Getty Images Investment Thesis Hello Group's (NASDAQ:MOMO) continuous focus on cutting costs and efficiency improvements yield promising results for the bottom line despite declines in revenue and users. Management continues to be very savvy in milking the cash cow business that is Momo, and profits continue to show despite macroeconomic headwinds in China. Assuming a stable user base and modest revenue declines, I believe Hello Group's profits will likely be substantial going into ...

Hello Group Inc. Sponsored ADR (MOMO) shares ended the last trading session 5.7% higher at $6.17. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.7% loss over the past four weeks.The upswing in share price was driven by the launch of the native immersive social app inSpaze for Apple Vision Pro in the United States.inSpaze, the brand-new app specially developed for visionOS, is now available for all Apple Vision ...

BEIJING, Feb. 5, 2024 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO), a leading mobile social and entertainment player in China, has launched the native immersive social app inSpaze for Apple Vision Pro in the U.S. inSpaze, the brand-new app specially developed for visionOS, is now available for all Apple Vision Pro users. With technologies such as 3Ds, Reality Converter, Reality Composer Pro, etc., the native spatial computing app inSpaze allows users to connect with Apple Vision Pro users globally, along ...

One stock that might be an intriguing choice for investors right now is Hello Group Inc. (MOMO) . This is because this security in the Internet – Software space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Intern ...

Financial Performance - Total group revenue for Q3 2023 was RMB3.04 billion, down 6% year-over-year and 3% sequentially, but exceeded previous guidance [6][23] - Adjusted operating income was RMB681 million, up 30% year-over-year, with a profit margin of 22.4%, up 3.7 percentage points year-over-year [6][29] - Non-GAAP net income attributable to the company was RMB605.9 million, up 13% year-on-year, but down 4% from the previous quarter [23][24] Business Line Performance - Revenue from the Momo app was RMB2.74 billion, down 5% year-over-year and 3% sequentially, with adjusted operating income of RMB675 million, up 4% year-over-year [7][24] - Tantan's revenue was RMB295 million, down 40% year-over-year and 8% sequentially, but achieved adjusted operating income of RMB27.6 million, compared to a loss in the previous year [8][16] - VAS revenue, excluding Tantan, totaled RMB1.3 billion, down 3% year-over-year and 2% sequentially, with Momo's VAS revenue down 12% year-over-year [13][24] Market Performance - The number of Momo paying users decreased by 100,000 to 7.8 million, primarily due to policy adjustments in VAS membership [10] - Tantan's MAU decreased 9% sequentially to 15.7 million, with 1.4 million paying users remaining stable [15][16] - New apps generated revenue of RMB302 million, up 49% year-over-year and 50% sequentially, indicating strong growth in overseas markets [20][21] Company Strategy and Industry Competition - The company aims to maintain stable user and revenue scales for Momo while optimizing cost structures [9][53] - Tantan is focusing on achieving breakeven and developing monetization models suitable for the Asian dating culture [14][40] - The company is reducing investments in low-efficiency marketing and focusing on profitable user growth rather than top-line growth [57][61] Management Commentary on Operating Environment and Future Outlook - Management noted that the softer economy and product adjustments impacted revenue, but effective cost optimization led to improved profitability [6][24] - The outlook for Q4 2023 anticipates a revenue decline of 7.9% to 6.6% year-over-year, with Tantan expected to see a low-teens revenue decrease [31][32] - Management remains optimistic about Tantan's long-term potential, citing strong demand for dating applications in China [40][41] Other Important Information - Non-GAAP gross margin for Q3 was 41.8%, remaining stable compared to previous periods [26] - The company ended the quarter with cash and equivalents totaling RMB13.64 billion, indicating strong liquidity [31] - A share repurchase plan of $200 million is ongoing, with approximately $90 million already utilized [61][62] Q&A Session Summary Question: Tantan's user scale and financial outlook in 2024 - Management highlighted Tantan's achievement of operational breakeven and plans to focus on improving ARPPU and channel ROI while maintaining a healthy ecosystem [36][39] Question: Updates on new apps and revenue guidance for 2024 - Management discussed the growth of new standalone apps and their contribution to revenue, expecting this to increase to double digits next year [44][46] Question: Core Momo product strategies and shareholder returns - Management emphasized the goal of maintaining stable user and revenue scales for Momo while optimizing costs, and discussed ongoing share repurchase plans and dividends [52][60]

Revenue Performance - Net revenues decreased by 5.9% year over year to RMB3,042.8 million (US$417.1 million) in Q3 2023[2] - Total net revenues for Q3 2023 were RMB 3,042,847 thousand (US$ 417,057 thousand), a decrease of 5.9% compared to RMB 3,233,021 thousand in Q3 2022[34] - The company expects total net revenues for Q4 2023 to be between RMB2.9 billion to RMB3.0 billion, representing a decrease of 9.7% to 6.6% year over year[22] - Total net revenues for the first nine months of 2023 reached RMB 8,999,391 (US$ 1,233,469), with live video service contributing RMB 4,548,986 (US$ 623,490) and value-added service contributing RMB 4,327,678 (US$ 593,158)[56] - Total net revenues for the first nine months of 2022 were RMB 9,491,514 (US$ 1,334,296), with live video service contributing RMB 4,786,232 (US$ 672,838) and value-added service contributing RMB 4,557,481 (US$ 640,681)[61] Net Income and Profitability - Net income attributable to Hello Group Inc. increased to RMB546.4 million (US$74.9 million) in Q3 2023, up from RMB450.8 million in Q3 2022[2] - Net income attributable to shareholders for Q3 2023 was RMB 546,428 thousand (US$ 74,894 thousand), an increase of 21.2% compared to RMB 450,835 thousand in Q3 2022[34] - Non-GAAP net income attributable to Hello Group Inc. increased to RMB605.9 million (US$83.0 million) in Q3 2023, up from RMB535.8 million in Q3 2022[2] - Comprehensive income attributable to Hello Group Inc. for Q3 2023 was RMB 551,338 thousand (US$ 75,568 thousand), an increase of 119.9% compared to RMB 250,697 thousand in Q3 2022[36] - Net income attributable to Hello Group Inc. on a Non-GAAP basis was RMB 605.9 million (US$ 83.0 million) in Q3 2023, compared to RMB 535.8 million in 2022[42] - Non-GAAP net income for Q3 2023 was RMB 601,637 thousand, with Momo segment contributing RMB 595,876 thousand and Tantan segment contributing RMB 26,604 thousand[49] - Net income for Q3 2023 was RMB 542,165 thousand, with Momo segment contributing RMB 540,008 thousand and Tantan segment contributing RMB 23,000 thousand[46] - Non-GAAP net income for the first nine months of 2023 was RMB 1,704,103 (US$ 233,566), reflecting a strong performance despite challenges in certain segments[59] - Net income (loss) for the first nine months of 2023 was RMB 1,499,226 (US$ 205,485), with Momo contributing RMB 1,471,435 (US$ 205,485) and Tantan contributing RMB 56,577 (US$ 7,764)[56] - Non-GAAP net income for the first nine months of 2022 was RMB 1,083,001 (US$ 152,245), reflecting a decline compared to 2023 due to higher expenses and lower contributions from certain segments[63] - Total net income for the first nine months of 2022 was RMB 1,083,001 (US$ 152,245)[64] - Non-GAAP net income for Momo was RMB 1,727,382, with Tantan reporting a non-GAAP net loss of RMB 316,766[64] User Metrics - Monthly Active Users (MAU) on Tantan app were 15.7 million in September 2023, down from 20.9 million in September 2022[2] - Total paying users for Momo app were 7.8 million in Q3 2023, compared to 8.4 million in Q3 2022[2] Segment Performance - Live video service revenues decreased by 7.6% year over year to RMB1,530.8 million (US$209.8 million) in Q3 2023[5] - Value-added service revenues decreased by 4.6% year over year to RMB1,466.7 million (US$201.0 million) in Q3 2023[6] - Live video service revenue for Q3 2023 was RMB 1,530,797 thousand (US$ 209,813 thousand), a decrease of 7.6% compared to RMB 1,657,531 thousand in Q3 2022[34] - Value-added service revenue for Q3 2023 was RMB 1,466,727 thousand (US$ 201,031 thousand), a decrease of 4.6% compared to RMB 1,537,666 thousand in Q3 2022[34] - Mobile marketing revenue for Q3 2023 was RMB 30,705 thousand (US$ 4,208 thousand), an increase of 8.7% compared to RMB 28,243 thousand in Q3 2022[34] - Total net revenues for Q3 2023 reached RMB 3,042,847 thousand, with Live video service contributing RMB 1,530,797 thousand and Value-added service contributing RMB 1,466,727 thousand[46] - Cost of revenues for Q3 2023 was RMB 1,771,530 thousand, with Momo segment accounting for RMB 1,606,261 thousand and Tantan segment accounting for RMB 145,346 thousand[46] - Research and development expenses for Q3 2023 totaled RMB 201,693 thousand, with Momo segment contributing RMB 151,649 thousand and Tantan segment contributing RMB 50,044 thousand[46] - Sales and marketing expenses for Q3 2023 were RMB 373,942 thousand, with Momo segment accounting for RMB 298,919 thousand and Tantan segment accounting for RMB 71,978 thousand[46] - Non-GAAP income from operations for Q3 2023 was RMB 681,229 thousand, with Momo segment contributing RMB 674,507 thousand and Tantan segment contributing RMB 27,582 thousand[49] - Income from operations for Q3 2023 was RMB 621,757 thousand, with Momo segment contributing RMB 618,639 thousand and Tantan segment contributing RMB 23,978 thousand[46] - Operating income for Momo reached RMB 1,572,131, while Tantan reported a loss of RMB 337,521[64] - Total operating income for the first nine months of 2022 was RMB 1,218,317 (US$ 171,267)[64] - Non-GAAP operating income for Momo was RMB 1,861,408, with Tantan reporting a non-GAAP loss of RMB 315,258[64] - Net income for Momo was RMB 1,438,105, while Tantan recorded a net loss of RMB 339,029[64] Expenses and Costs - Research and development expenses for Q3 2023 were RMB 201,693 thousand (US$ 27,644 thousand), a decrease of 17.7% compared to RMB 245,105 thousand in Q3 2022[34] - Sales and marketing expenses for Q3 2023 were RMB 373,942 thousand (US$ 51,253 thousand), a decrease of 19.9% compared to RMB 467,012 thousand in Q3 2022[34] - Research and development expenses on a Non-GAAP basis were RMB 186.7 million (US$ 25.6 million) in Q3 2023, down from RMB 223.4 million in 2022[42] - General and administrative expenses on a Non-GAAP basis were RMB 76.5 million (US$ 10.5 million) in Q3 2023, compared to RMB 82.6 million in 2022[42] - Total cost and expenses for Q3 2023 were RMB 2,461,061 thousand, with Momo segment accounting for RMB 2,162,168 thousand and Tantan segment accounting for RMB 273,024 thousand[46] - Research and development expenses for the first nine months of 2023 totaled RMB 653,145 (US$ 89,521), indicating continued investment in innovation[56] - Total cost and expenses for the first nine months of 2023 amounted to RMB 7,395,656 (US$ 1,013,660), with cost of revenues being the largest component at RMB 5,255,277 (US$ 720,296)[56] - Research and development expenses for the first nine months of 2022 totaled RMB 733,562 (US$ 103,123), showing a decrease compared to 2023[61] Cash Flow and Financial Position - Net cash provided by operating activities in Q3 2023 was RMB582.5 million (US$79.8 million), up from RMB444.5 million in Q3 2022[18] - Net cash provided by operating activities increased to RMB 582.5 million (US$ 79.8 million) in Q3 2023, up from RMB 444.5 million in 2022[40] - Net cash used in investing activities was RMB 346.8 million (US$ 47.5 million) in Q3 2023, compared to a net cash outflow of RMB 24.3 million in 2022[40] - Proceeds from long-term borrowings in Q3 2023 were RMB 2.15 billion (US$ 295.2 million), contributing to a net cash inflow from financing activities of RMB 2.01 billion (US$ 275.3 million)[40] - Cash, cash equivalents, and restricted cash at the end of Q3 2023 stood at RMB 7.64 billion (US$ 1.05 billion), up from RMB 3.62 billion at the end of 2022[40] - Cash and cash equivalents decreased from RMB 5,018,129 in December 2022 to RMB 4,994,558 in September 2023, a decrease of 0.47%[38] - Short-term deposits decreased significantly from RMB 5,300,000 in December 2022 to RMB 1,885,005 in September 2023, a decrease of 64.43%[38] - Total current assets decreased from RMB 11,724,547 in December 2022 to RMB 8,109,557 in September 2023, a decrease of 30.83%[38] - Long-term deposits increased from RMB 2,600,000 in December 2022 to RMB 3,809,200 in September 2023, an increase of 46.51%[38] - Total assets increased slightly from RMB 15,829,587 in December 2022 to RMB 16,171,417 in September 2023, an increase of 2.16%[38] - Total current liabilities decreased from RMB 4,738,247 in December 2022 to RMB 2,179,949 in September 2023, a decrease of 53.99%[38] - Long-term borrowings increased from RMB 0 in December 2022 to RMB 1,938,385 in September 2023[38] - Shareholder's equity increased from RMB 10,930,638 in December 2022 to RMB 11,719,168 in September 2023, an increase of 7.21%[38] - Accounts receivable increased slightly from RMB 188,711 in December 2022 to RMB 192,849 in September 2023, an increase of 2.19%[38] - Property and equipment, net increased from RMB 172,984 in December 2022 to RMB 358,361 in September 2023, an increase of 107.17%[38] Share Repurchase and Compensation - As of December 8, 2023, the company has repurchased 16.2 million ADSs for US$86.1 million under its share repurchase program[21] - Share-based compensation for Q3 2023 was RMB 59.5 million (US$ 8.2 million), a decrease from RMB 85.0 million in 2022[42] - Share-based compensation for Q3 2023 totaled RMB 59,472 thousand, allocated across cost of revenues (RMB 1,211 thousand), R&D (RMB 14,993 thousand), sales and marketing (RMB 5,854 thousand), and general and administrative expenses (RMB 37,414 thousand)[47] - Share-based compensation allocated to cost of revenues and operating expenses for the first nine months of 2023 was RMB 204,877 (US$ 28,081)[57] - Share-based compensation for Momo was RMB 289,277, and Tantan reported RMB 22,263[64] - Total share-based compensation for the first nine months of 2022 was RMB 311,540 (US$ 43,797)[64] Depreciation and Other Financial Metrics - Depreciation of property and equipment decreased to RMB 17.5 million (US$ 2.4 million) in Q3 2023, down from RMB 27.0 million in 2022[40] - Income from operations on a Non-GAAP basis increased to RMB 681.2 million (US$ 93.4 million) in Q3 2023, up from RMB 605.1 million in 2022[42] - As of September 30, 2023, the number of ordinary shares outstanding was 379,881,912[37]

Exhibit 99.1 Hello Group Inc. Announces Unaudited Financial Results for the Second Quarter of 2023 BEIJING, CHINA, August 31, 2023 – Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the second quarter of 2023. Second Quarter of 2023 Highlights • Net revenues increased by 0.9% year over year to RMB3,137.7 million (US$432.7 million*) in the second quarter of 2023. • Net income attr ...

Financial Data and Key Metrics Changes - Total group revenue for Q2 2023 was RMB3.14 billion, up 1% year-over-year and 11% sequentially, marking the first year-on-year growth since the pandemic began [8][28] - Adjusted operating income was RMB709 million, a substantial increase of 53% from Q2 last year and up 37% quarter-over-quarter, with a margin of 22.6%, up 8 percentage points year-over-year and 4 percentage points quarter-over-quarter [8][28] - Non-GAAP net income attributable to the company was RMB632.1 million, up 36% year-over-year and 34% from the previous quarter [28] Business Line Data and Key Metrics Changes - Revenue from the Momo app and standalone new apps was RMB2.82 billion, up 1% year-over-year and 12% sequentially, with adjusted operating income of RMB777 million, up 60% year-over-year [9][28] - Tantan's total revenue was RMB321 million, down 3% year-over-year but up 4% quarter-over-quarter, with adjusted operating income of RMB31.89 million, compared to an adjusted operating loss of RMB119 million in Q2 last year [9][19] - Momo's live streaming revenue was RMB1.44 billion, up 3% year-over-year and 12% sequentially, while VAS revenue, excluding Tantan, totaled RMB1.33 billion, up 1% year-over-year and 11% sequentially [14][15][29] Market Data and Key Metrics Changes - Momo's paying users increased by 100,000 to 7.9 million from the previous quarter, indicating a recovery in user engagement [12] - Tantan's user base decreased by 11% to 17.3 million in June due to anti-spam measures, with a net decrease of 200,000 paying users from the previous quarter [18][19] Company Strategy and Development Direction - The strategic priority for Momo is to stabilize user scale, optimize costs, and ensure commercial productivity, shifting focus from MAU growth to profitable user growth [10][13] - Tantan aims to achieve overall breakeven for the year and develop monetization models suitable for the Asian dating culture, with a focus on improving ARPU and retention [17][24] - The company is exploring new markets and optimizing existing products to drive long-term growth, particularly in the Middle East and North Africa [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the operating environment, noting a softening consumer sentiment and potential revenue declines in Q3 due to macroeconomic factors and product adjustments [36][46] - The company anticipates Q3 revenue to range from RMB2.9 billion to RMB3.0 billion, representing a decrease of 10.3% to 7.2% year-over-year [37] Other Important Information - The company has reduced its total employees from 1,825 to 1,470 year-over-year, with a significant decrease in sales and marketing expenses [32] - The company paid RMB937 million in cash dividends to shareholders and prepaid RMB2.26 billion to repurchase convertible senior notes [34] Q&A Session Summary Question: User recovery trend and macro impact on Momo - Management highlighted the focus on stabilizing the user base and increasing productivity, noting that consumer sentiment has softened in Q3, impacting revenue expectations [41][44][46] Question: Updates on new apps and revenue guidance - Management indicated that new domestic apps are maturing, while overseas business is showing satisfactory growth, with expectations for new apps to contribute to revenue in 2024 [48][50][53] Question: Tantan's initiatives and revenue outlook - Management stated that Tantan has achieved breakeven and is focusing on improving ARPU and retention, with a projected sequential decrease in revenue for Q3 due to macro impacts [56][60]

Financial Performance - Total net revenues for Q1 2023 were RMB2,818.9 million (US$410.5 million), a decrease of 10.5% year over year from RMB3,148.1 million in Q1 2022[2] - Net income attributable to Hello Group Inc. increased to RMB390.3 million (US$56.8 million) in Q1 2023, up from RMB289.9 million in the same period of 2022[14] - Income from operations was RMB436.2 million (US$63.5 million) in Q1 2023, compared to RMB352.0 million in Q1 2022[9] - Non-GAAP net income attributable to Hello Group Inc. was RMB471.9 million (US$68.7 million) in Q1 2023, compared to RMB398.5 million in the same period of 2022[14] - Net income for Q1 2023 was RMB 389,461, representing an increase of 35% from RMB 288,782 in Q1 2022[34] - The company reported a comprehensive income of RMB 391,642 for Q1 2023, up from RMB 299,832 in Q1 2022[34] - Momo's total net revenues for the three months ended March 31, 2023, were RMB 2,798,875, a decrease from RMB 3,148,078 in the same period of 2022, representing a decline of approximately 11.1%[47] - The net income for Momo in Q1 2023 was RMB 389,039, compared to RMB 456,542 in Q1 2022, reflecting a decrease of about 14.8%[47] - Non-GAAP net income for Momo was RMB 461,464 for Q1 2023, down from RMB 561,345 in Q1 2022, indicating a decline of approximately 17.8%[51] User Metrics - Monthly Active Users (MAU) on the Momo application were 106.5 million in March 2023, down from 110.9 million in March 2022; Tantan MAU decreased to 19.5 million from 25.6 million[2] - Total paying users for the Momo app were 7.8 million in Q1 2023, compared to 8.6 million in the same period last year; Tantan had 1.6 million paying users, down from 2.4 million[2] Revenue Breakdown - Live video service revenue for Q1 2023 was RMB 1,429,340, down 11.1% from RMB 1,608,723 in Q1 2022[32] - Momo's live video service revenue was RMB 1,483,523 in Q1 2023, compared to RMB 1,608,723 in Q1 2022, reflecting a decline of about 7.8%[47] - The cost of revenues for Momo was RMB 1,644,827 in Q1 2023, which is a decrease from RMB 1,821,388 in Q1 2022, showing a reduction of about 9.7%[47] Cash and Assets - As of March 31, 2023, the company's cash and cash equivalents totaled RMB13,352.2 million (US$1,944.2 million), slightly down from RMB13,398.8 million at the end of 2022[16] - Cash and cash equivalents as of March 31, 2023, were RMB 5,369,904, an increase from RMB 5,018,129 as of December 31, 2022[36] - Total assets increased to RMB 16,196,705 as of March 31, 2023, compared to RMB 15,829,587 as of December 31, 2022[36] - Total liabilities rose to RMB 5,738,718 as of March 31, 2023, from RMB 4,898,949 as of December 31, 2022[36] Expenses - Research and development expenses for Q1 2023 were RMB 236,803, a decrease of 5.3% from RMB 250,195 in Q1 2022[32] - Research and development expenses for the three months ended March 31, 2023, were RMB 236,803, compared to RMB 250,195 for the same period in 2022, reflecting a decrease of 5%[40] - The company reported a share-based compensation expense of RMB 81,657 for the three months ended March 31, 2023, down from RMB 108,616 in the same period of 2022[40] - The share-based compensation for Momo was RMB 72,425 in Q1 2023, compared to RMB 104,803 in Q1 2022, indicating a decrease of approximately 30.9%[48] Future Outlook - For Q2 2023, the company expects total net revenues to be between RMB3.0 billion to RMB3.1 billion, representing a decrease of 3.5% to 0.3% year over year[19] - The company plans to continue focusing on user retention and growth strategies amid uncertainties in the market[29] - Momo's future outlook includes a focus on expanding its user base and enhancing its product offerings to drive revenue growth in the upcoming quarters[46] Shareholder Returns - The company declared a special cash dividend of US$0.72 per ADS in March 2023, totaling US$136.6 million paid to shareholders[17] - The company has repurchased 12.1 million ADSs for US$57.2 million under its share repurchase program as of June 6, 2023[18]

Financial Performance and Key Metrics - Total revenue for Q1 2023 was RMB2.82 billion, down 10% year-over-year and 12% sequentially, but better than expectations as the year-on-year decline narrowed compared to the previous quarter [5][33] - Adjusted operating income was RMB518 million, up 12% year-over-year and 4% sequentially, with a margin of 18%, up 4 percentage points year-over-year and 3 percentage points quarter-over-quarter [6][39] - Non-GAAP net income attributable to the company was RMB471.9 million, up 18% from the year-ago period, despite a decrease in top line [33] Business Line Performance - Revenue from the Momo app and standalone new apps was RMB2.51 billion, down 10% year-over-year and 12% quarter-over-quarter [6] - Tantan's total revenue was RMB309 million, down 12% year-over-year and 11% sequentially, but achieved its first quarterly profit at the operating level with an adjusted operating income of RMB14.48 million [7][22] - Momo's live-streaming revenue was RMB1.29 billion, down 13% year-over-year and 17% sequentially, impacted by COVID and regulatory adjustments [11][34] Market Performance - MAUs for Momo increased by 13% sequentially to 106.5 million in March, recovering after the Chinese New Year [15] - Tantan's MAUs increased by 6% sequentially to 19.5 million, showing recovery after the pandemic and Chinese New Year [19] - The user engagement metrics for Momo showed a strong rebound post-holiday, indicating a recovery in social sentiment [58] Company Strategy and Industry Competition - The company aims to maintain stability in the mature Momo app while optimizing cost structure and enhancing monetization features [9][10] - Tantan's strategic goal is to achieve breakeven for the year and develop monetization models suitable for the Asian dating culture [24][27] - The company is focusing on enriching its product portfolio and developing long-term growth engines through new standalone apps [30] Management Commentary on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment in China, anticipating a mid to high-single-digit year-over-year growth for the ex-Tantan part [61] - The company expects Q2 revenue to range from RMB3.0 billion to RMB3.1 billion, indicating a potential recovery in consumer spending [41] - Management highlighted the importance of improving marketing ROI and user acquisition efficiency to drive future growth [25][50] Other Important Information - The company has decided to stop disclosing MAU data on a quarterly basis from Q2 onwards, suggesting a focus on paying user trends instead [18] - Non-GAAP gross margin for Q1 was 40.0%, down 1.2% year-over-year but up 0.6% from the previous quarter [36] Q&A Session Summary Question: Update on Tantan's MAU recovery and financial outlook for 2023 - Management noted Tantan's first-ever quarterly profit and emphasized the need to improve user growth and ARPU through new features and cost reduction strategies [44][45] Question: Insights on Tantan's overseas business development - Management highlighted the growth of SoulChill in the Middle East and plans to focus marketing efforts there while cautiously exploring other Southeast Asian markets [49][50] Question: User scale and engagement outlook for Momo app - Management reported a strong rebound in Momo's user engagement post-holiday and expressed confidence in maintaining productivity despite external pressures [56][58]