Core Viewpoint - Hello Group Inc. (formerly Momo) is attempting to reverse a five-year revenue decline by introducing AI-backed features in its dating app, but recent financial results indicate continued revenue challenges [2][5][17] Financial Performance - The company's revenue fell 2.6% year-on-year in the second quarter to 2.62 billion yuan ($368 million), down from 2.69 billion yuan a year earlier [5][7] - In the first quarter, revenue had only declined by 1.5%, suggesting a potential for recovery that has not materialized [5] - For the third quarter, Hello Group forecasts revenue between 2.59 billion yuan and 2.69 billion yuan, indicating a possible decline of 3.2% at the low end and a slight increase of 0.6% at the high end [6] - The company reported its first net loss in over three years, amounting to 139 million yuan, primarily due to one-time tax expenses [8][15] User Engagement and Features - The newly introduced AI greeting feature aims to assist male users in crafting personalized messages for potential dates, which is expected to enhance user engagement [3][4] - The AI chat assistant feature is designed to improve ongoing conversations, potentially increasing retention rates among users [4] - Despite these innovations, the company has not yet seen a halt in revenue decline, contrasting with other consumer-facing companies in China that have stabilized [4][17] User Metrics - Paid users for the Momo app decreased by approximately 15% sequentially to 3.5 million in the second quarter, while Tantan's paid users fell by about 10% to 740,000 [13] - The value-added services for the Momo app experienced an 11% year-on-year decline, dropping to 1.85 billion yuan, which constitutes about 70% of total revenue [12] International Business - Hello Group's international business saw a significant revenue increase of 73% year-on-year in the second quarter, contributing 17% to total revenue, up from 9.5% a year earlier [14] - However, growth in the international segment is expected to slow to the mid-60% range in the third quarter as the company adopts a more conservative expansion strategy [14] Market Sentiment - Following the release of the latest financial report, Hello Group's stock fell by 7.3%, erasing most of its gains for the year, although it remains up 17% over the past 52 weeks [9] - Analysts are mixed on the company's outlook, with six out of eight still rating it a "buy," while the stock trades at a low price-to-earnings (P/E) ratio of 11 compared to global peers [16]

Group 1 - Hello Group Inc. will release its unaudited financial results for Q2 2025 on September 9, 2025, before U.S. markets open [1] - An earnings conference call will be hosted by Hello Group's management on September 9, 2025, at 8:00 a.m. U.S. Eastern Time [1] - Participants can preregister for the conference call through a provided link and will receive details including dial-in numbers and a unique access PIN [2] Group 2 - A telephone replay of the conference call will be available until September 16, 2025, with specific dial-in details provided for U.S./Canada and Hong Kong [3] - Hello Group Inc. is a leading player in Asia's online social networking space, operating applications like Momo and Tantan to facilitate social interactions [4] - Tantan, acquired in May 2018, is a prominent social and dating application aimed at helping users establish romantic connections [4]

Financial Performance - For Q1 2025, total group revenue was RMB2.52 billion, slightly down 1.5% year over year, exceeding the high end of guidance [7][28] - Domestic revenue reached RMB2.11 billion, down 9% year over year, while overseas revenue was RMB415 million, with accelerated year over year growth of 72% [7][18] - Adjusted operating income was RMB315 million, down 33% from the previous year, with a margin of 14%, down six percentage points [8][34] Business Line Performance - Momo's value-added services revenue totaled RMB1.78 billion, down less than 10% year over year, attributed to operational adjustments completed by the end of 2024 [12][28] - Tantan's revenue from the onshore business was close to RMB100 million, down 19% year over year, primarily due to declines in paying user accounts [15][28] - Overseas revenue from value-added services was RMB4 million, up 73% year over year, driven by rapid expansion of Sochill and initial monetization of emerging brands [29][30] Market Performance - Overseas revenue accounted for 16% of total revenue, up from less than 10% in Q1 2024, indicating significant growth in international markets [6][18] - Sochill generated close to RMB300 million in overseas revenue, representing nearly 40% year over year growth, despite challenges from political unrest and seasonal factors [22][49] - Tantan's overseas business remains a key player among overseas Chinese communities and Southeast Asian markets, with expectations for growth in developed regions [49][56] Company Strategy and Industry Competition - The company aims to deepen its presence in overseas markets, enhance brand portfolios, and build long-term growth engines [8][24] - A focus on improving user experience and engagement through technology, such as AI-generated greetings, is central to maintaining user retention and scaling operations [10][63] - The competitive landscape in the MENA region is described as fragmented, allowing for multiple platforms to coexist without significant pressure [42][49] Management Commentary on Operating Environment and Future Outlook - Management noted that macroeconomic factors and regulatory environments significantly influence domestic revenue performance, with expectations of a decline in the low teens percentage for Q2 [66][68] - The company anticipates a gradual stabilization of domestic business, with potential for group-level revenue growth in the second half of the year [71] - Future growth is expected to be driven by both social entertainment in MENA and the rebound of the dating business, particularly through Tantan [57][58] Other Important Information - The company has introduced geographical breakdowns of revenue to reflect the growing significance of overseas business [26] - Non-GAAP gross margin for Q1 was 37.9%, down 3.5 percentage points year over year, primarily due to a higher contribution from overseas revenue [30][77] - The company expects a decline in gross margin for the full year 2025, projecting a range between 36% to 37% [77] Q&A Session Summary Question: Concerns about Sochill's revenue slowdown - Management attributed the slowdown to a high base effect and political unrest in the Middle East, but noted efforts to enhance user engagement and retention [40][41] Question: Revenue contribution from other apps - Management confirmed that Sochill is the largest contributor to overseas revenue, with other apps also showing significant growth potential [47][48] Question: Outlook for Momo and Tantan in 2025 - Management emphasized the importance of stabilizing user engagement and profitability, with expectations of a narrowing decline in domestic revenue for Tantan [61][66] Question: Profit outlook and expense management - Management expects a decline in gross margin due to increased overseas revenue contribution, with operating expenses managed through personnel optimization and ROI-driven marketing investments [76][78]

Core Viewpoint - Hello Group Inc. reported a strong start to 2025, with solid profits from its mainland China businesses and accelerated growth in overseas markets, driven by product localization and new app monetization [4]. Financial Results - Total net revenues for Q1 2025 were RMB2,520.8 million (US$347.4 million), a decrease of 1.5% from RMB2,560.4 million in Q1 2024 [5][16]. - Value-added service revenues were RMB2,489.9 million (US$343.1 million), down 1.7% from RMB2,532.9 million in the same period of 2024, primarily due to soft consumer sentiment and a decline in paying users for Tantan [6][16]. - Other services revenues increased to RMB30.9 million (US$4.3 million) from RMB27.5 million in Q1 2024 [7]. - Net revenues from mainland China decreased to RMB2,106.2 million (US$290.2 million) from RMB2,319.2 million in Q1 2024, while overseas revenues increased by 71.9% to RMB414.6 million (US$57.1 million) [8][16]. Costs and Expenses - Total costs and expenses rose to RMB2,234.5 million (US$307.9 million), an increase of 5.4% from RMB2,120.0 million in Q1 2024, mainly due to higher revenue sharing with virtual gift recipients for overseas apps [9]. - Non-GAAP costs and expenses were RMB2,188.8 million (US$301.6 million) compared to RMB2,065.3 million in the same period of 2024 [10]. Income Metrics - Income from operations was RMB299.5 million (US$41.3 million), down from RMB460.3 million in Q1 2024 [11]. - Net income increased significantly to RMB358.5 million (US$49.4 million) from RMB5.2 million in the same period of 2024 [13][16]. - Diluted net income per ADS was RMB2.07 (US$0.29) compared to RMB0.03 in Q1 2024 [15][16]. Cash Flow and Financial Position - As of March 31, 2025, the company's cash and cash equivalents totaled RMB12,785.9 million (US$1,761.9 million), down from RMB14,728.5 million at the end of 2024 [18]. - Net cash provided by operating activities was RMB239.7 million (US$33.0 million), compared to RMB400.2 million in Q1 2024 [18]. Recent Developments - In March 2025, the board declared a special cash dividend of US$0.30 per ADS, totaling US$47.9 million [20]. - As of June 5, 2025, the company repurchased 47.8 million ADSs for US$291.3 million under its share repurchase program [21]. Business Outlook - For Q2 2025, the company expects total net revenues to be between RMB2.57 billion to RMB2.67 billion, reflecting a year-over-year decrease of 4.5% to 0.8% [22].

Group 1 - Hello Group Inc. will release its unaudited financial results for Q1 2025 on June 5, 2025, before U.S. markets open [1] - An earnings conference call will be held on June 5, 2025, at 8:00 a.m. U.S. Eastern Time [1] - Participants can preregister for the conference call through a provided link and will receive dial-in details upon registration [2] Group 2 - A telephone replay of the conference call will be available until June 12, 2025, with specific dial-in details for different regions [3] - Hello Group Inc. is a leading player in Asia's online social networking space, operating applications like Momo and Tantan [4] - Momo facilitates social interactions based on location and interests, while Tantan focuses on romantic connections [4]

Core Viewpoint - Hello Group Inc. has filed its annual report for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission, highlighting its position as a leading mobile social and entertainment platform in China [1]. Company Overview - Hello Group Inc. is a prominent player in Asia's online social and entertainment sector, operating applications such as Momo and Tantan to facilitate social interactions and connections among users [3]. - Momo is a mobile application designed to connect individuals based on location, interests, and various online recreational activities [3]. - Tantan, acquired in May 2018, is a leading social and dating application aimed at helping users establish romantic connections and meet new people [3]. Investor Relations - The company offers a hard copy of its annual report, including audited consolidated financial statements, free of charge to shareholders and ADS holders upon request [2]. - Requests for the annual report can be made via email or mail to the company's Investor Relations Department [2][4].