Hello Group Inc. ( (MOMO) ) has released its Q4 earnings. Here is a breakdown of the information Hello Group Inc. presented to its investors.
Hello Group Inc., a prominent player in China’s online social networking sector, operates platforms like Momo and Tantan, which facilitate social interactions and dating connections. The company recently released its unaudited financial results for the fourth quarter and fiscal year 2024, highlighting a challenging year with a decrease in net revenues and net income.
In the fourth quarter of 2024, Hello Group’s net revenues fell by 12.2% to RMB2,636.5 million, while net income attributable to the company decreased to RMB187.2 million. The company’s diluted net income per ADS also saw a decline, reflecting the broader challenges faced in the market. For the full year, net revenues dropped by 12% to RMB10,563.0 million, with net income attributable to the company halving compared to the previous year.
Key financial metrics revealed a decrease in both live video service revenues and value-added service revenues, primarily due to strategic operational adjustments and a challenging macroeconomic environment. The company’s Tantan app saw a reduction in monthly active users and paying users, contributing to the overall decline in revenue. Despite these challenges, Hello Group maintained a strong cash position, with cash and cash equivalents totaling RMB14,728.5 million by year-end.
Looking forward, Hello Group’s management remains cautiously optimistic, emphasizing the potential for growth and innovation in international markets. The company has announced a special cash dividend and an extension of its share repurchase program, indicating a commitment to returning value to shareholders while navigating the current economic landscape.