Hello Group Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-09-03
Hello Group Inc. Reports Second Quarter 2024 Financial Results
BEIJING, Sept. 3, 2024 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO), a leading player in mainland China's online social networking space, today announced its unaudited financial results for the second quarter of 2024.
Key Financial Metrics:
| Metric | Q2 2024 Actual | Q2 2023 Actual | YoY Change | Wall Street Consensus | Beat/Miss |
|---|---|---|---|---|---|
| Total Revenue | $370.3 million | $376.3 million | -1.6% | $376.3 million | Miss |
| EPS (GAAP) | $0.29 | $0.28 | +3.6% | $0.28 | Beat |
| Net Income (GAAP) | $54.7 million | $78.1 million | -30.0% | Not Provided | Not Applicable |
| EPS (Non-GAAP) | $0.33 | $0.33 | 0.0% | Not Provided | Not Applicable |
| Net Income (Non-GAAP) | $61.8 million | $81.1 million | -23.8% | Not Provided | Not Applicable |
Interpretation: Hello Group Inc.'s financial performance depicted a significant decline in total revenue and net income year-over-year, primarily driven by diminished user activity in its core services. However, the company managed to surpass the Wall Street consensus estimate for earnings per share, signaling efficient cost management.
Revenue Performance by Segment:
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|
| Live Video Services | $179.3 million | $230.9 million | -22.3% |
| Value-Added Services | $185.1 million | $215.7 million | -14.2% |
| Mobile Marketing | $5.8 million | $5.1 million | +13.7% |
| Momo Segment Total Revenue | $338.1 million | $394.3 million | -14.2% |
| Tantan Segment Total Revenue | $32.2 million | $45.0 million | -28.4% |
Interpretation: The Momo segment's revenues faced notable declines due to reduced activity in live video services and value-added services, influenced by consumer sentiment and market adjustments. Conversely, mobile marketing experienced a positive uptick, reflecting strategic advertising efforts.
Developments or Operational Highlights: - Monthly Active Users (MAUs) on Tantan app were 12.9 million in June 2024, down from 17.3 million in June 2023. - Momo app had 7.2 million paying users in Q2 2024, compared to 7.9 million a year earlier. Tantan had 1.0 million paying users vs. 1.4 million in the previous year. - As of June 30, 2024, Hello Group held cash and equivalents totaling $1.97 billion. - The company experienced net cash provided by operating activities of $65.4 million in Q2 2024, versus $117.3 million in Q2 2023.
Comments from Company Officers: Yan Tang, Chairman and CEO, stated, "Q2 was a good quarter. I am pleased to see that our team has maintained the spirit of innovation and adaptation in a challenging environment. Momo's cash cow business continued to be productive in a healthy community ecosystem. Regarding new endeavors, while strengthening the localization process, we are more convinced of the revenue growth opportunities in overseas markets."
Share Repurchase Program: The board extended and expanded the share repurchase program, authorizing up to $286.1 million of share repurchases through June 30, 2026. As of September 3, the company has repurchased 30.9 million ADSs for $174.6 million.
Forward Guidance: Hello Group expects Q3 2024 revenues to be between RMB2.58 billion to RMB2.68 billion, representing a year-over-year decline of 15.2% to 11.9%.
Stock Price Movement: Post-release, Hello Group shares saw a -1.96% change in stock price, reflecting market reaction to the earnings report.
In summary, Hello Group Inc.'s second quarter showcased a resilience in earnings despite significant pressure on revenues, demonstrating effective cost management and strategic operational adjustments. The company continues to focus on innovation and revenue growth opportunities, especially in international markets.
