Hello (US:MOMO)2023-06-06 20:02Financial 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]