Company Performance - Hello Group Inc. (MOMO) reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.21 per share, and down from $0.37 per share a year ago, representing an earnings surprise of -14.29% [1] - The company posted revenues of $361.2 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.06%, and down from $422.95 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Market Outlook - Momo shares have lost about 3.8% since the beginning of the year, compared to the S&P 500's decline of -5.3% [3] - The company's earnings outlook, including current consensus earnings expectations for the coming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.24 on revenues of $319.48 million, and for the current fiscal year, it is $0.82 on revenues of $1.38 billion [7] Industry Context - The Internet - Software industry, to which Momo belongs, is currently in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Momo's stock performance [5] - The current estimate revisions trend for Momo is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6]

Hello Group (MOMO) Q4 2024 Earnings Call March 12, 2025 08:00 AM ET Company Participants Ashley Jing - Head, IRSichuan Zhang - COO & DirectorCathy Peng - Chief Financial OfficerThomas Chong - Managing DirectorJennifer Huang - Director, Group Corporate Services Conference Call Participants Xueqing Zhang - Media AnalystLeo Chiang - Analyst Operator Ladies and gentlemen, thank you for standing by and welcome to Fourth Quarter and Fiscal Year twenty twenty four Hello Group Inc. Earnings Conference Call. Please ...

Core Viewpoint - Hello Group Inc. reported its unaudited financial results for Q4 and the full year of 2024, highlighting challenges and opportunities faced during the year, with a focus on the performance of its Momo and Tantan segments and plans for future growth and innovation in international markets [3][4]. Q4 2024 Highlights - Total net revenues for Q4 2024 were RMB2,636.5 million (US$361.2 million), a decrease of 12.2% from RMB3,002.9 million in Q4 2023 [4][15]. - Live video service revenues decreased by 17.0% to RMB1,264.9 million (US$173.3 million) due to operational adjustments and soft consumer sentiment [5]. - Value-added service revenues fell by 6.9% to RMB1,326.8 million (US$181.8 million), impacted by product adjustments and a decline in Tantan's paying users [6]. - Net income attributable to Hello Group Inc. was RMB187.2 million (US$25.6 million), down from RMB452.5 million in Q4 2023 [15][19]. - Monthly Active Users (MAU) on Tantan app decreased to 10.8 million in December 2024 from 13.7 million in December 2023 [15]. Full Year 2024 Highlights - Full year net revenues were RMB10,563.0 million (US$1,447.1 million), a decrease of 12.0% from RMB12,002.3 million in 2023 [22][23]. - Net income attributable to Hello Group Inc. for the full year was RMB1,039.6 million (US$142.4 million), compared to RMB1,957.6 million in 2023 [22]. - Non-GAAP net income for the full year was RMB1,232.9 million (US$168.9 million), down from RMB2,224.7 million in 2023 [23]. Cash and Cash Flow - As of December 31, 2024, the Company had cash and cash equivalents totaling RMB14,728.5 million (US$2,017.8 million), an increase from RMB13,478.5 million as of December 31, 2023 [21]. - Net cash provided by operating activities in Q4 2024 was RMB423.6 million (US$58.0 million), compared to RMB415.9 million in Q4 2023 [21]. Recent Developments - The board of directors declared a special cash dividend of US$0.30 per ADS, totaling approximately US$50 million, to be paid on April 30, 2025 [25]. - The Share Repurchase Program was amended to increase the total authorization to US$486.1 million, with a remaining size of US$222 million as of March 12, 2025 [26][27]. Business Outlook - For Q1 2025, the Company expects total net revenues to be between RMB2.4 billion to RMB2.5 billion, representing a decrease of 6.3% to 2.4% year over year [28].

Core Viewpoint - Hello Group Inc. is set to release its unaudited financial results for Q4 and the fiscal year ending December 31, 2024, on March 12, 2025, before U.S. markets open [1] Group 1: Financial Results Announcement - The unaudited financial results will be announced before U.S. markets open on March 12, 2025 [1] - An earnings conference call will be held on the same day at 8:00 a.m. U.S. Eastern Time [2] - Participants can preregister for the conference call through a provided link and will receive details including dial-in numbers and a unique access PIN [3] Group 2: Conference Call Details - A telephone replay of the conference call will be available until March 19, 2025, with specific dial-in details provided [4] - A live and archived webcast of the conference call will be accessible on the Investor Relations section of Hello Group's website [4] Group 3: Company Overview - Hello Group Inc. is a leading player in mainland China's online social networking space, operating applications like Momo and Tantan [5] - Momo facilitates social interactions based on location and interests, while Tantan focuses on romantic connections [5] - The company has also incubated several new apps targeting niche markets since 2019 [5]

Group 1 - Hello Group Inc. (NASDAQ: MOMO) operates social media apps in China, benefiting from a massive potential client base [1] - The company has been in the industry since 2011, accumulating significant expertise [1] - MOMO is well-positioned in the market, similar to how a kingfisher searches for small fish, indicating a strategic approach to identifying opportunities [1] Group 2 - The analyst has a beneficial long position in MOMO shares, indicating confidence in the company's future performance [2] - The article expresses the author's personal opinions and does not involve compensation from any company mentioned [2]

Investment Rating - The report maintains a **Neutral** rating for Momo Inc (MOMO US) with a target price of $7.40, representing a potential upside of 0.1% from the current price of $7.39 [1][4] Core Views - Momo's core business and Tantan are expected to remain under pressure due to ongoing business adjustments and weak social consumption trends [1] - Overseas business is growing rapidly, partially offsetting the decline in core business, with total revenue expected to decrease by 5% YoY in 2025 [1] - The company's market capitalization of $1.3 billion is below its net cash position of $1.4 billion as of Q3 2024, and its shareholder returns are leading among internet companies, with quarterly buybacks of $30-60 million and a dividend yield exceeding 7% [1] Financial Performance Q3 2024 Results - Revenue declined 12% YoY to RMB 2.68 billion, slightly better than expected, with adjusted net profit of RMB 490 million, down 19% YoY but above expectations [2] - Adjusted net margin was 18%, down 2 percentage points YoY, mainly due to increased operating expenses from higher overseas app revenue share and overall revenue decline [2] - Momo's live streaming and value-added services revenue declined 14% and 18% YoY respectively, while new app revenue grew 41% YoY, driven by overseas social product growth [2] - Tantan's revenue fell 28% YoY, with MAU and quarterly paying members declining by 900k and 100k respectively [2] Financial Forecasts - Revenue is expected to decline 12% YoY in Q4 2024, with the decline narrowing in 2025 as ecosystem adjustments conclude [2] - 2025 net profit forecast is revised down by 11% due to changes in revenue structure and ongoing new business investments [2] - For 2024E, revenue is forecast at RMB 10.526 billion, with adjusted net profit of RMB 1.3 billion, representing a net margin of 12.3% [3] - 2025E revenue is projected at RMB 10.015 billion, with adjusted net profit of RMB 1.308 billion and a net margin of 13.1% [3] Business Segments - Momo's revenue is expected to decline 3% YoY in Q4 2024, while Tantan's revenue is forecast to drop 26% YoY [16] - New independent social apps accounted for 16% of total revenue in Q3 2024, up from 2% in Q1 2021 [12] - Momo's live streaming revenue declined 45% YoY in Q3 2024, while value-added services revenue fell 19% YoY [14] Valuation and Shareholder Returns - The target price is based on 7x 2025E P/E ratio, raised from $5.90 to $7.40 [1] - The company's shareholder return policy is leading among internet peers, with quarterly buybacks of $30-60 million and a dividend yield exceeding 7% [1]

Exhibit 99.1 Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2024 BEIJING, CHINA, December 9, 2024 – Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading player in mainland China's online social networking space, today announced its unaudited financial results for the third quarter of 2024. Third Quarter of 2024 Highlights • Net revenues decreased by 12.1% year over year to RMB2,674.7 million (US$381.1 million*) in the third quarter of 2024. • Net incom ...

BEIJING, Nov. 11, 2024 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) (the "Company"), a leading player in mainland China's online social networking space, today announced that it will release its unaudited financial results for the third quarter ended September 30, 2024 before U.S. markets open on Monday, December 9, 2024. Hello Group's management will host an earnings conference call on Monday, December 9, 2024, at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on the same day). Preregis ...

Investment Rating - The report maintains a neutral rating for MOMO US with a target price of $5.90, indicating a potential downside of 7.7% from the current price of $6.39 [1][8]. Core Insights - The core business of MOMO, including Momo and Tantan, is still in an adjustment phase, leading to continued pressure on short-term revenue and profits. The new business segments are growing rapidly but are expected to slow down [1]. - For the second quarter of 2024, MOMO's revenue is projected to decline by 12% year-on-year, with profits expected to align with previous forecasts. Tantan is focusing on optimizing user experience and matching efficiency, but may turn unprofitable in the second half of the year [1][2]. Financial Performance Summary - **Revenue Forecasts**: The new revenue forecasts for 2024 and 2025 have been adjusted downwards, with total revenue expected to be RMB 10,448 million for 2024 and RMB 10,303 million for 2025, reflecting a decrease of 3% and 7% respectively from previous estimates [2]. - **Adjusted Net Profit**: The adjusted net profit for 2024 is forecasted at RMB 1,144 million, down 6% from previous estimates, while for 2025 it is expected to be RMB 1,476 million, a decrease of 17% [2]. - **Gross Margin**: The adjusted gross margin is projected to be 40.1% for 2024, slightly down from 40.4% in the previous forecast [2]. - **Operating Income**: The operating income for the second quarter of 2024 is expected to be RMB 425 million, reflecting a 25% decline quarter-on-quarter and a 49% decline year-on-year [6]. Business Segment Performance - **Momo and Tantan**: Momo's revenue is expected to be RMB 9,573 million for 2024, while Tantan's revenue is projected at RMB 873 million, both showing declines from previous forecasts [2][6]. - **New Applications**: Revenue from new applications is expected to grow by 36% year-on-year, driven by the rapid growth of the overseas social product Soulchill [1]. Market Context - MOMO's market capitalization is currently below its net cash position, which stood at $1.7 billion at the end of the second quarter, indicating limited downside potential for the stock price [1].

Financial Data and Key Metrics - Total group revenue for Q2 2024 was RMB2.69 billion, down 14% YoY but up 5% sequentially [5] - Adjusted operating income was RMB477 million, down 33% YoY and 7% sequentially, with a profit margin of 17.7%, down 4.9 percentage points YoY and 2.4 percentage points sequentially [5] - Non-GAAP net income attributable to the company was RMB449.2 million, compared to RMB632.1 million in Q2 2023 and RMB59.9 million in Q1 2024 [24] Business Segment Performance - Revenue from the Momo app and standalone new apps was RMB2.46 billion, down 30% YoY but up 6% sequentially, driven by overseas business growth [6] - Tantan's revenue was RMB234 million, down 27% YoY and 3% sequentially, with adjusted operating income of RMB20.6 million, representing a margin of 8.8% [7] - Revenue from standalone new apps reached RMB355 million, up 36% YoY and 4% sequentially, primarily driven by overseas business [22] Market Performance - Momo app live streaming revenue was RMB1.22 billion, down 50% YoY but up 6% sequentially, with a focus on maintaining a healthy social ecosystem [12] - Tantan's MAU decreased by 6% sequentially to 12.9 million in June, with 1 million paying users, down 100,000 sequentially [15] - Overseas business showed strong growth, with revenue from new apps increasing 36% YoY and 4% sequentially, driven by localization efforts [22] Strategic Direction and Industry Competition - The company aims to maintain the productivity of the Momo app's cash cow business while improving Tantan's core dating experience and expanding new endeavors [8] - Efforts to optimize the Momo app's community ecosystem and improve female user experience have led to increased two-way chats and matching rates [9] - Tantan is focusing on improving user experience by addressing authenticity and response issues, with short-term commercial sacrifices expected for long-term gains [20][21] Management Commentary on Operating Environment and Future Outlook - The company expects Q3 2024 revenue to be between RMB2.58 billion and RMB2.68 billion, representing a YoY decrease of 15.2% to 11.9% [32] - Management remains confident in the growth potential of the MENA region, with ongoing efforts to strengthen localization and expand product offerings [23][39] - For 2025, revenue growth will depend on macroeconomic and regulatory conditions, with the company prepared to manage costs tightly if revenue pressure persists [36] Other Important Information - The company paid a cash dividend of RMB716 million and repurchased RMB395 million worth of shares in Q2 2024 [31] - Non-GAAP R&D expenses decreased by 11% YoY to RMB179.9 million, with R&D personnel making up 62% of total employees [29] - Non-GAAP sales and marketing expenses increased to RMB360.6 million, or 16% of total revenue, due to an offline gala event [30] Q&A Session Summary Question: Core Momo's revenue and profit strategy - The company has adjusted its live streaming and VAS strategy to reduce revenue-oriented competition events, introducing new interactive features to offset revenue declines [34] - Revenue growth in 2025 will depend on macroeconomic and regulatory conditions, with the company focusing on long-term ecosystem health [34][36] Question: Overseas business progress and financial outlook - The company is accelerating localization efforts and expanding product offerings in the MENA region, with revenue growth expected to slow to mid-30s in H2 2024 before initiatives bear fruit [37][40] Question: Tantan's revamp and financial impact - Tantan is prioritizing user experience over short-term financial targets, with revenue expected to follow Q2's YoY decrease trend in H2 2024 [42][45] - The company believes that improving the dating experience is critical for long-term profitability, even if it results in short-term revenue fluctuations [44][45]