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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