Financial Data and Key Metrics Changes - Total group revenue for Q3 2025 was RMB 2.65 billion, down 1% year-over-year but up 1% quarter-over-quarter [4][17] - Domestic revenue reached RMB 2.12 billion, down 10% year-over-year, while overseas revenue was RMB 535 million, up 69% year-over-year [4][18] - Adjusted operating income was RMB 404 million, down 11% from Q3 last year, with a margin of 15.2% [4][22] Business Line Data and Key Metrics Changes - Momo's value-added service revenue reached RMB 1.79 billion, down 11% year-over-year and 3% quarter-over-quarter [9] - Tantan's revenue from the onshore business in Q3 was RMB 150 million, down 15% year-over-year and 5% quarter-over-quarter, but ARPU increased by 25% year-over-year [11][12] - Overseas revenue accounted for 20% of the group's revenue, compared to 12% in the same period last year [13] Market Data and Key Metrics Changes - Overseas revenue growth mainly came from audio and video social products in the MENA region, with significant contributions from YoHo and Ahlan [13][14] - Tantan International returned to substantial growth for the first time in nearly a year, aided by the acquisition of Happn [15] Company Strategy and Development Direction - Key priorities for 2025 include maintaining Momo's productivity, improving Tantan's core dating experience, and deepening overseas market presence [4][5] - The company aims to optimize the chat experience on Momo and enhance user engagement through AI technologies [6][8] - The acquisition of Happn is expected to enrich the diversity of the overseas dating product portfolio [15] Management Comments on Operating Environment and Future Outlook - Management acknowledged external challenges impacting business but noted proactive responses leading to good results in user and financial measures [4] - The company expects domestic revenue to decline by mid- to low-teens percentage-wise in 2026, while overseas revenue is anticipated to maintain growth [24][32] - Management emphasized the importance of platform fundamentals, macroeconomic conditions, and regulatory environments in shaping future performance [36][37] Other Important Information - Non-GAAP net income attributable to the company was RMB 404.5 million, compared to RMB 493.3 million in the same period of 2024 [17] - The company ended Q3 with cash reserves totaling RMB 8.86 billion, down from RMB 14.73 billion at the end of 2024 [23] Q&A Session Summary Question: Impact of tax issues on Momo's revenue and margin - Management explained that tax scrutiny affected mid-tier broadcasters, leading to revenue pressure, but adjustments in revenue sharing policy resulted in a modest recovery [27][29] Question: Overseas revenue growth and its components - Management noted that the majority of overseas revenue growth came from audio and video products in the MENA region, with Tantan International also contributing positively [40][43] Question: M&A strategy and focus areas - Management highlighted that M&A targets are evaluated based on product value, team capability, and sustainable profitability, with varying levels of post-acquisition involvement [51][56] Question: Profit margin outlook and shareholder returns - Management indicated that domestic gross margins are expected to decline, while overseas products are seeing stable or improving margins, with overall profitability under pressure [60][63]

Financial Data and Key Metrics Changes - For Q3 2025, total group revenue was RMB 2.65 billion, down 1% year-over-year, but up 1% quarter-over-quarter [4][17] - Domestic revenue reached RMB 2.12 billion, down 10% year-over-year, while overseas revenue was RMB 535 million, up 69% year-over-year [4][17] - Adjusted operating income was RMB 404 million, down 11% from Q3 last year, with a margin of 15.2% [4][17] Business Line Data and Key Metrics Changes - Momo's value-added service revenue was RMB 1.79 billion, down 11% year-over-year and 3% quarter-over-quarter [9] - Tantan's revenue from the onshore business was RMB 150 million, down 15% year-over-year and 5% quarter-over-quarter, but ARPU increased by 25% year-over-year [11] - Overseas revenue from value-added services was RMB 533.1 million, up 69% year-over-year and 21% quarter-over-quarter [18] Market Data and Key Metrics Changes - Overseas revenue accounted for 20% of the group's revenue, compared to 12% in the same period last year [13] - The growth in overseas revenue was primarily driven by audio and video social products in the MENA region [13][14] Company Strategy and Development Direction - Key priorities for 2025 include maintaining Momo's productivity, improving Tantan's core dating experience, and deepening overseas market presence [4][5] - The company aims to optimize the chat experience on Momo and enhance user engagement through AI technologies [6][7] - The acquisition of Happn is expected to enrich the company's overseas dating product portfolio and enhance growth potential in the Asia-Pacific region [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external challenges impacting business but noted proactive responses leading to good results in user and financial measures [4] - The company expects domestic revenue to decline by mid- to low-teens percentage-wise in 2026, while overseas revenue is anticipated to maintain growth [24][38] - Management emphasized the importance of platform fundamentals, macroeconomic conditions, and regulatory environments in shaping future performance [37][66] Other Important Information - The company ended Q3 with cash reserves totaling RMB 8.86 billion, down from RMB 14.73 billion at the end of 2024, primarily due to loan repayments and tax payments [23] - Non-GAAP gross margin for Q3 was 37.6%, down 1.7 percentage points from the previous year [19] Q&A Session Summary Question: Impact of tax issues on Momo's revenue and margin - Management explained that recent tax changes affected mid-tier broadcasters, leading to revenue pressure, but adjustments in revenue sharing policy have shown some recovery [30] Question: Overseas revenue growth and its sustainability - Management highlighted that overseas revenue growth was driven by audio and video products in the MENA region and the acquisition of Happn is expected to enhance future performance [45] Question: M&A strategy and focus areas - Management stated that M&A targets are evaluated based on product value, team capability, and sustainable profitability, with varying levels of post-acquisition involvement [59] Question: Profit margin outlook and shareholder returns - Management indicated that domestic gross margins are expected to decline, while overseas products are seeing stable margins, with overall profitability under pressure but not significantly impacted by overseas business [66]

Financial Data and Key Metrics Changes - For Q3 2025, total group revenue was RMB 2.65 billion, down 1% year-over-year, but up 1% quarter-over-quarter [4][17] - Domestic revenue reached RMB 2.12 billion, down 10% year-over-year, while overseas revenue was RMB 535 million, up 69% year-over-year [4][18] - Adjusted operating income was RMB 404 million, down 11% from Q3 last year, with a margin of 15.2% [4][21] - Non-GAAP net income attributable to the company was RMB 404.5 million, compared to RMB 493.3 million in the same period of 2024 [17] Business Line Data and Key Metrics Changes - Momo's value-added service revenue reached RMB 1.79 billion, down 11% year-over-year and 3% quarter-over-quarter [9] - Tantan's revenue from the onshore business in Q3 was RMB 150 million, down 15% year-over-year and 5% quarter-over-quarter, but ARPU increased by 25% year-over-year [11][12] - Tantan had 0.7 million paying users, broadly in line with last quarter [10] Market Data and Key Metrics Changes - Overseas revenue accounted for 20% of the group's revenue, compared to 12% in the same period of last year [13] - Revenue from overseas businesses reached RMB 535 million, up 69% year-over-year and 21% quarter-over-quarter, mainly driven by audio and video social products in the MENA region [13][14] Company Strategy and Development Direction - Key priorities for 2025 include maintaining Momo's productivity, improving Tantan's core dating experience, and deepening overseas market presence [4][5] - The company aims to optimize the chat experience on Momo and enhance user engagement through AI technologies [5][6] - The acquisition of Happn is expected to enrich the diversity of the overseas dating products and leverage growth potential in the Asia-Pacific region [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external challenges but highlighted proactive responses leading to good results in user and financial measures [4] - The company expects a decline in domestic revenue in the mid- to low-teens percentage-wise for Q4 2025, with overseas revenue maintaining growth [24][30] - Management emphasized the importance of platform fundamentals, macroeconomic conditions, and regulatory environments in shaping future revenue trends [32][33] Other Important Information - The company ended Q3 with cash reserves totaling RMB 8.86 billion, down from RMB 14.73 billion at the end of 2024, primarily due to loan repayments and tax payments [22][23] - Non-GAAP gross margin for the quarter was 37.6%, down 1.7 percentage points from the year-ago period [19] Q&A Session Summary Question: Impact of tax issues on Momo's revenue and margin - Management discussed the adjustment of revenue sharing ratios due to tax changes affecting mid-tier broadcasters, leading to a modest revenue recovery in September [25][26] Question: Guidance for Momo's revenue trend into 2026 - Management indicated a low teens percentage decline for Momo's domestic business in 2025, with expectations of a similar decline in the first half of 2026 [30][31] Question: Performance of overseas business and growth drivers - Management highlighted that overseas revenue growth was primarily driven by audio and video products in the MENA region, with expectations for continued robust growth in 2026 [34][35] Question: M&A strategy and criteria - Management outlined key factors for M&A, including understanding the product's value, confidence in sustainable profitability, and reasonable valuation [42][43] Question: Profit margin outlook and shareholder returns - Management expects some compression in profitability in 2026, primarily from domestic business, while overseas business margins are stable or improving [46][48]

Core Viewpoint - Hello Group Inc. reported its unaudited financial results for the third quarter of 2025, highlighting a slight decline in net revenues but significant growth in overseas markets, indicating a shift in revenue sources and strategic focus [1][5][15]. Financial Performance - Total net revenues for Q3 2025 were RMB2,650.1 million (US$372.3 million), a decrease of 0.9% from RMB2,674.7 million in Q3 2024 [6][15]. - Value-added service revenues were RMB2,611.4 million (US$366.8 million), down 1.2% from RMB2,642.7 million in the same period last year, primarily due to external factors affecting broadcasters and weak consumer sentiment on the Momo app [7][15]. - Net revenues from the Chinese mainland decreased from RMB2,358.3 million in Q3 2024 to RMB2,115.4 million (US$297.1 million) in Q3 2025, while overseas revenues increased from RMB316.4 million to RMB534.8 million (US$75.1 million), a growth of 69.0% year over year [9][15]. - Income from operations was RMB344.5 million (US$48.4 million), down from RMB410.7 million in Q3 2024, with non-GAAP income from operations at RMB404.0 million (US$56.7 million) compared to RMB454.7 million [12][15]. - Net income attributable to Hello Group Inc. was RMB348.9 million (US$49.0 million) in Q3 2025, down from RMB449.4 million in the same period last year [16][15]. User Metrics - The total paying users for the Momo app decreased to 3.7 million in Q3 2025 from 6.9 million in the same period last year, while Tantan had 0.7 million paying users, down from 0.9 million [15][16]. Cash Flow and Assets - As of September 30, 2025, the company's cash and cash equivalents totaled RMB8,861.9 million (US$1,244.8 million), a decrease from RMB14,728.5 million as of December 31, 2024 [18]. - Net cash provided by operating activities in Q3 2025 was RMB143.5 million (US$20.2 million), compared to RMB341.0 million in Q3 2024 [18]. Business Outlook - For Q4 2025, the company expects total net revenues to be between RMB2.52 billion to RMB2.62 billion, representing a decrease of 4.4% to 0.6% year over year [23]. Recent Developments - As of December 10, 2025, the company has repurchased 54.7 million ADSs for US$341.6 million under its share repurchase program, with a remaining size of US$144.5 million [22].

Core Viewpoint - Hello Group Inc. is set to release its unaudited financial results for the third quarter of 2025 on December 10, 2025, before U.S. markets open [1] Group 1: Financial Results Announcement - The company will announce its financial results for the third quarter ended September 30, 2025 [1] - The earnings conference call is scheduled for December 10, 2025, at 7:00 a.m. U.S. Eastern Time [2] - Participants can preregister for the conference call through a provided link [3] Group 2: Conference Call Details - A telephone replay of the conference call will be available until December 17, 2025, with specific dial-in details provided [4] - A live and archived webcast of the conference call will be accessible on the Investor Relations section of Hello Group's website [4] Group 3: Company Overview - Hello Group Inc. is a leading player in Asia's online social networking space, operating applications like Momo and Tantan [5] - Momo facilitates social interactions based on location and interests, while Tantan focuses on romantic connections [5] - The company has also incubated new apps targeting niche markets since 2019 [5]

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]

Financial Data and Key Metrics Changes - Total group revenue for Q1 2025 was RMB2.52 billion, slightly down 1.5% year over year, but exceeded the high end of guidance [8][30] - Domestic revenue reached RMB2.11 billion, down 9% year over year, while overseas revenue was RMB415 million, showing accelerated growth of 72% year over year [8][20] - Adjusted operating income was RMB315 million, down 33% year over year, with a margin of 14%, down six percentage points from the previous year [8][30] Business Line Data and Key Metrics Changes - 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 [14] - Tantan's revenue from the onshore business was close to RMB100 million, down 19% year over year, with a decrease in paying user accounts [17][31] - Overseas revenue from value-added services was RMB4 million, up 73% year over year, driven by the expansion of Sochill and initial monetization of emerging brands [31][20] Market Data and Key Metrics Changes - Overseas revenue accounted for 16% of total group revenue, up from 9% in Q1 2024, indicating a significant growth in international operations [7][20] - Sochill generated close to RMB300 million in overseas revenue, representing a year-on-year growth of nearly 40% despite challenges from political unrest and Ramadan [24][58] - Tantan's overseas business is expected to grow significantly, with a strong focus on the dating market in developed regions [49][56] Company Strategy and Development Direction - The company aims to deepen its presence in overseas markets, enhance brand portfolios, and build long-term growth engines [9][26] - A focus on improving user experience through technology, such as AI-generated greetings, is part of the strategy to stabilize user engagement [12][62] - The company plans to maintain strict control over channel ROI while reinvesting profits into user acquisition channels [44][78] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic factors and regulatory environments are key influences on domestic revenue performance [66][68] - The outlook for Q2 2025 anticipates a year-over-year decline in domestic revenue in the low teens percentage, but overall stabilization is expected [65][70] - The company is optimistic about the potential for group-level revenue growth in the second half of the year, driven by overseas business acceleration [70] Other Important Information - The company has introduced geographical breakdowns of revenue to reflect the growing significance of overseas business [28] - 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 [32][77] - The company ended Q1 with a total of 1,336 employees, a decrease from the previous year, reflecting ongoing personnel optimization [34] Q&A Session Summary Question: Concerns about Sochill's revenue slowdown - Management attributed the slowdown to a high base effect and political unrest affecting user sentiment, but noted efforts to enhance user engagement and retention [41][42][43] Question: Growth plans for overseas products - Management confirmed that Sochill is the largest overseas product, with other products also showing significant growth potential, particularly in the dating market [47][48][49] Question: Outlook for Momo and Tantan in 2025 - Management emphasized the importance of stabilizing user engagement and profitability for mature brands, with ongoing product enhancements to improve user experience [61][62] Question: Profit outlook and expense management - Management expects a decline in gross margin due to increased overseas revenue contribution but anticipates improvements in operating expenses through personnel optimization [75][77][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].