Hello Group (MOMO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was RMB 2.67 billion, down 12% year-over-year, near the high end of guidance, with a smaller YoY decrease than Q2.

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

• Overseas business, especially SoulChill, showed accelerated growth, offsetting some domestic declines; CEO highlighted ongoing investment in diversified markets.

• Momo and Tantan segments saw revenue and user declines, with Tantan's monthly active users dropping to 12.0 million from 15.7 million YoY.

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

Financial highlights

• Total Q3 revenue: RMB 2.67 billion, down 12% YoY and 0.6% QoQ.

• Non-GAAP net income: RMB 493.3 million, down 19% YoY but up 10% QoQ.

• Live broadcasting revenue: RMB 1.29 billion, down 16% YoY.

• Value-added services revenue: RMB 1.36 billion, down 8% YoY, up 1% QoQ.

• Net cash from operations: RMB 341 million in Q3.

Outlook and guidance

• Q4 2024 revenue guidance: RMB 2.56–2.66 billion, down 14.7% to 11.4% YoY.

• SoulChill expected to grow 40% YoY in Q4, closing 2024 with ~50% YoY growth.

• Overseas business to play a larger role in 2025, with two new MENA apps expected to ramp up and possibly break even.

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