Hello Group (MOMO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was RMB 2.67 billion, down 12.1% year-over-year, near the high end of guidance.

• Adjusted operating income was RMB 465 million, down 33% year-over-year, with a margin of 17%.

• Non-GAAP net income was RMB 493.3 million, down from RMB 605.9 million year-over-year.

• Overseas business, especially SoulChill, showed accelerated growth, offsetting some domestic declines.

• Monthly active users on Tantan fell to 12.0 million in September 2024 from 15.7 million a year ago.

Financial highlights

• Live broadcasting revenue was RMB 1.29 billion, down 16% year-over-year; Momo live streaming was RMB 1.22 billion, down 14%.

• Value-added services revenue was RMB 1.36 billion, down 7.5% year-over-year but up 1% sequentially.

• Non-GAAP gross margin was 39.4%, down 2 percentage points year-over-year.

• Cash and equivalents totaled RMB 14.78 billion as of September 30, 2024.

• Net cash provided by operating activities in Q3 2024 was RMB 341.0 million, compared to RMB 582.5 million a year ago.

Outlook and guidance

• Q4 2024 revenue is expected between RMB 2.56–2.66 billion, a year-over-year decrease of 11.4%–14.7%.

• Momo and Tantan revenues are expected to decrease sequentially in Q4.

• SoulChill is projected to grow 40% year-over-year in Q4, closing 2024 with ~50% annual growth.

• Overseas business is expected to accelerate growth and contribute more significantly in 2025.

• Guidance reflects current market and operational conditions and is subject to change.