Hello Group (MOMO) Q4 2024 earnings summary

Executive summary

• 2024 saw both challenges and opportunities, with satisfactory financial and operational results despite external uncertainties and macroeconomic headwinds.

• Net revenues for Q4 2024 declined 12.2% year-over-year to RMB 2,636.5 million; full year revenues fell 12% to RMB 10,563.0 million.

• The Momo business remained productive, while overseas operations, especially the Soju app, showed robust growth and increasing financial contribution.

• User metrics declined: Tantan MAU at 10.8 million (down from 13.7 million), Momo paying users at 5.7 million (down from 7.4 million), and Tantan paying users at 0.9 million (down from 1.2 million).

• Strategic focus for 2025 includes maintaining Momo's stable productivity, improving Tantan's profitability, and accelerating overseas expansion.

Financial highlights

• Q4 2024 total revenue was RMB 2.64 billion, down 12% year-over-year and 1% quarter-over-quarter.

• Adjusted operating income for Q4 was RMB 280 million (10.6% margin); excluding film production costs, it was RMB 374 million (14.2% margin).

• Non-GAAP net income attributable to the company was RMB 230.5 million, down from RMB 514.7 million a year ago; full year non-GAAP net income was RMB 1,232.9 million, compared to RMB 2,224.7 million in 2023.

• Overseas business revenue grew 40% year-over-year, reaching RMB 1.57 billion in 2024.

• Cash, cash equivalents, and deposits totaled RMB 14,728.5 million as of December 31, 2024.

Outlook and guidance

• Q1 2025 revenue is expected to be RMB 2.4–2.5 billion, a year-over-year decrease of 6.3%–2.4%.

• Momo segment revenue projected to decline mid to low single digits; Tantan revenue expected to decrease around 20%.

• Group-level non-GAAP operating margin targeted at 12%–13% for 2025, with continued cost optimization.

• Overseas revenue expected to grow to RMB 1.7–2 billion in 2025.