The following is a summary of the Hello Group Inc. (MOMO) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Hello Group Inc. reported a total Q1 2024 group revenue of RMB2.56 billion, down 9% year-over-year and 17% sequentially.

• The profit margin slightly increased by 1.8 percentage points year-over-year to 20.1%, but sequentially it saw a decrease of 2 percentage points.

• Non-GAAP operating income was RMB515 million, representing a decrease of 0.6% from Q1 2023.

• Revenue from Tantan decreased 22% year-over-year to RMB241 million. However, its adjusted operating income went up by 92% year-over-year.

• They reported non-GAAP net income of RMB59.9 million, but excluding one-off tax expenses, the net income would have been RMB508.5 million, up 8% year-over-year.

Business Progress:

• On strategic priorities, the firm is focusing on maintaining Q4 progress, upgrading core gamified play, and enriching the brand portfolio.

• Tantan, their dating app, is working on an upgraded version for long-term improvements in user experiences.

• The firm is focusing on expanding organically through improving brand recognition, enhancing anti-spam capabilities, and increasing communication efficiency of matching users.

• Overseas business is growing rapidly, significantly contributing to the 52% year-over-year increase in standalone app revenue, achieved through improved collaboration with KOLs, and product localization.

• Hello Group plans to mitigate future challenges by entering new markets and beefing up the operational team, even if it may put pressure on short-term overseas business profits.

• Q1 2024 revenue is expected to range from RMB2.65 billion to RMB2.75 billion, a decrease of 15.5% to 12.4% year-on-year, or an increase of 3.5% to 7.4% quarter-on-quarter.

More details: Hello Group IR

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