BEIJING, April 26, 2024 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading mobile social and entertainment platform in China, today filed with the U.S. Securities and Exchange Commission its annual report on Form 20-F for the fiscal year ended December 31, 2023. The annual report can be accessed on the Company's investor relations website at https://ir.hellogroup.com/ or on the SEC's website at https://www.sec.gov. The Company will provide a hard copy of its annual r ...

Revenue and Financial Performance - Revenues contributed by the VIEs accounted for 98.4%, 95.7%, and 93.3% of total revenues for the years ended December 31, 2021, 2022, and 2023, respectively[14]. - For the years ended December 31, 2021, 2022, and 2023, the company declared and distributed cash dividends of US$132.0 million, US$127.3 million, and US$136.6 million, respectively[23]. - Beijing Momo IT declared dividends of RMB1,300.0 million, RMB3,600.0 million, and RMB1,800.0 million (US$253.5 million) for the years ended December 31, 2021, 2022, and 2023, respectively[24]. - The net income attributable to Hello Group's shareholders for the year ended December 31, 2023, was RMB 1,957,581 thousand, compared to RMB 1,484,283 thousand in 2022, reflecting an increase of approximately 32%[36]. - The total net income for the year ended December 31, 2023, was RMB 1,951,695 thousand, compared to RMB 1,480,009 thousand in 2022, showing an increase of approximately 32%[36]. - For the year ended December 31, 2023, net revenues were RMB 12,002,323 thousand, a decrease of 5.5% compared to RMB 12,704,172 thousand in 2022[46]. - The company reported a net income of RMB 1,957,581 thousand for 2023, compared to a net income of RMB 1,484,283 thousand in 2022, representing a year-over-year increase of 32%[46]. Costs and Expenses - Total costs and expenses for the year ended December 31, 2023, were RMB 9,827,412 thousand, down from RMB 11,097,261 thousand in 2022, indicating a reduction of about 11.5%[35]. - Research and development expenses decreased to RMB 884,590 thousand in 2023 from RMB 1,006,219 thousand in 2022, reflecting a reduction of approximately 11.9%[46]. - The company has focused on reducing operational costs, as evidenced by the decrease in sales and marketing expenses to RMB 1,414,949 thousand in 2023 from RMB 2,073,617 thousand in 2022[46]. Cash Flow and Liquidity - The net cash provided by operating activities for the year ended December 31, 2023, was RMB 2,277,161 thousand, compared to a net cash used of RMB 534,417 thousand for other subsidiaries[40]. - Cash and cash equivalents increased to RMB 5,620,466 thousand from RMB 5,018,129 thousand, representing a growth of approximately 12%[38]. - The company reported cash paid by VIEs to primary beneficiaries for license fees and services of RMB 3,948.9 million in 2023, down from RMB 4,369.7 million in 2022[43]. - The net cash used in financing activities for 2023 was RMB 3,432,559 thousand, compared to RMB 1,786,909 thousand in 2022, indicating increased financing outflows[41]. Regulatory and Compliance Risks - The company may face risks related to the enforcement of contractual arrangements with the VIEs, which could significantly affect financial performance[16]. - The PCAOB's ability to inspect audit firms in mainland China may impact the company's compliance with the Holding Foreign Companies Accountable Act[19]. - The company may need to obtain additional licenses or approvals in the future due to regulatory uncertainties in mainland China[31]. - The Cybersecurity Review Measures require network platform operators holding personal information of over one million users to undergo a cybersecurity review before foreign listings, creating uncertainties for future listings[80]. - The mainland China government's oversight may lead to material adverse changes in operations and the value of the company's ADSs[181]. User Engagement and Market Challenges - The user base for Momo and Tantan apps has decreased, indicating challenges in user retention and engagement[61]. - The mobile social and dating industry is highly competitive, with low switching costs for consumers, which may lead to decreased user engagement if competitors offer more appealing features[101]. - Tantan's monetization efforts may be hindered by factors such as COVID-19's impact on user retention, privacy concerns, and increased competition offering lower-cost services[103]. - The company faces significant risks related to user retention, market competition, and regulatory compliance, which could adversely affect its financial performance[55][60]. Investments and Future Strategies - The company plans to continue its market expansion and product development strategies to enhance revenue growth in the upcoming fiscal year[44]. - The company is exploring new monetization models and services to diversify revenue streams, including virtual gifts and premium features[65][67]. - The company plans to continue significant investments in expanding the live video service despite the declining revenue contribution from this segment[72]. Assets and Liabilities - As of December 31, 2023, total assets amounted to RMB 16,228,009 thousand, a significant increase from RMB 15,829,587 thousand as of December 31, 2022, reflecting a growth of approximately 2.5%[38]. - Total liabilities stood at RMB 4,241,219 thousand, a decrease from RMB 4,898,949 thousand in the previous year, indicating a reduction of about 13.4%[39]. - The company reported a total shareholders' equity of RMB 11,986,790 thousand, down from RMB 10,930,638 thousand, reflecting a decrease of about 9.6%[39]. Intellectual Property and Legal Risks - The company may face challenges in adequately protecting its intellectual property, which could lead to increased competition and potential legal costs[126]. - The company has experienced and anticipates future intellectual property infringement claims that could materially affect its business and financial condition[128]. - The company may incur significant costs and resource diversion due to potential litigation related to intellectual property rights[131]. Taxation and Financial Implications - Gains from the sale of ADSs or ordinary shares may be subject to mainland China tax at rates of 10% for non-mainland enterprise holders or 20% for non-mainland individual holders[212]. - The requirement to withhold mainland China tax from interest payments on ADSs may increase the cost of servicing these payments, adversely affecting financial condition[213]. - An additional withholding tax of RMB184.0 million (US$25.9 million) has been accrued on retained earnings generated in 2023, due to expected remittance to the offshore parent company[214].

Investment Rating - Neutral rating for Momo Group (MOMO US) with a target price of $6.60, implying a potential upside of 10.7% [1][2] Core Views - Momo's Q4 2023 revenue of RMB 3.0 billion slightly exceeded expectations, down 7% YoY and 1% QoQ [1] - Adjusted net profit of RMB 520 million in Q4 2023, 6% above expectations, with adjusted net margin improving to 17% YoY [1] - Weak consumer sentiment in live streaming and social spending continues to pressure Momo and Tantan revenues [1] - Momo's main platform revenue declined 9% YoY in Q4 2023 due to reduced live streaming gifting and social spending [1] - Tantan revenue dropped 21% YoY in Q4 2023, with MAU continuing to decline and paying members decreasing by 200k QoQ [1] - New applications revenue grew 43% YoY and 8% QoQ, driven by rapid growth of overseas social product Soulchill [1] Financial Projections - 2024 revenue guidance of RMB 24.5-25.5 billion for Q1, below previous expectations by 4-7% [2] - Momo main platform revenue expected to decline 15% YoY in 2024 due to reduced event operations [2] - Tantan revenue projected to drop 22% YoY in 2024 as focus shifts to exploring commercialization models [2] - Adjusted operating margin expected to decline to 18% in 2024, down 3 percentage points YoY [2] - 2024 revenue forecast of RMB 10.7 billion, down 10.9% YoY [4] - 2024 net profit forecast of RMB 1.7 billion, down 20.5% YoY [4] Valuation and Shareholder Returns - Target price reduced to $6.60 based on 5x 2024 P/E ratio, down from $8.30 [2] - Share price has corrected 22% post-earnings, largely reflecting profit downgrade and dividend cut [2] - Net cash position of $1.6 billion as of end-2023, representing 140% of market cap [2] - Shareholder returns remain attractive with 9% dividend yield and $290 million buyback plan [2] Operational Metrics - Momo's live streaming revenue declined 9% YoY in Q4 2023 [1] - Tantan's live streaming revenue dropped 39% YoY in Q4 2023 [8] - Momo's VAS revenue decreased 10% YoY in Q4 2023 [1] - Tantan's VAS revenue fell 13% YoY in Q4 2023 [8] - Marketing expenses as percentage of revenue improved by 3 percentage points YoY and 2 percentage points QoQ [1]

Exhibit 99.1 Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2023 BEIJING, CHINA, March 14, 2024 – Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2023. Fourth Quarter of 2023 Highlights • Net revenues decreased by 6.5% year over year to RMB3,002.9 million (US$423.0 million*) in ...

Hello Group Inc. (NASDAQ:MOMO) Q4 2023 Earnings Conference Call March 14, 2024 8:00 AM ET Company Participants Ashley Jing - Head of IR Yan Tang - CEO Zhang Sichuan - COO Hui Peng - CFO Conference Call Participants Xueqing Zhang - CICC Henry Chen - JPMorgan Leo Chiang - Deutsche Bank Raphael Chen - BOCI Research Operator Ladies and gentlemen, thank you for standing by. And welcome to the Fourth Quarter and Fiscal Year 2023 Hello Group Inc. Earnings Conference Call. [Operator Instructions] Please note this c ...

Hello Group Inc. Sponsored ADR (MOMO) came out with quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.50%. A quarter ago, it was expected that this company would post earnings of $0.42 per share when it actually produced earnings of $0.42, delivering no surprise.Over the last four quarters, the co ...

BEIJING, March 14, 2024 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2023.   Fourth Quarter of 2023 Highlights Net revenues decreased by 6.5% year over year to RMB3,002.9 million (US$423.0 million*) in the fourth quarter of 2023. Net income attributable to Hello Group Inc. increased to RMB452.5 million ( ...

导语：朱立华是音视频领域顶尖人才，曾主导搭建钉钉的视频系统和会议系统。 雷峰网独家获悉，原挚文集团（陌陌）CTO朱立华已于年前离职，加入Wi-Fi万能钥匙担任CEO。 朱立华是互联网行业内一位技术大拿，曾先后在美国新泽西州普林斯顿研究室、微软硅谷云计算中心工作。微软工作期间，朱立华重点参与了微软云计算项目。 朱立华还是音视频及机器视觉领域的顶级人才，拥有120项全球专利。2016年，朱立华归国加入阿里巴巴，担任音视频委员会主席（P10），帮助阿里巴巴搭建了阿里云视频团队，并孵化了淘宝直播等多个核心业务。 随后，朱立华开始兼管钉钉整体视频架构团队，先后负责钉钉IM聊天和DING业务，做出钉钉群直播、视频会议、机器人、企业支付等产品。一位接近朱立华的人士告诉雷峰网(公众号：雷峰网)，钉钉的视频系统、会议系统基本都是由朱立华主导完成。 离开阿里后，朱立华加入挚文集团，担任CTO职位，负责整个公司的技术团队。 如今，从挚文集团离开的朱立华，更进一步，担任Wi-Fi万能钥匙CEO，有了更多责任，相信他会在技术之外，做出更多成绩。 雷峰网原创文章，未经授权禁止转载。详情见转载须知。 ...

BEIJING, Feb. 22, 2024 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) (the "Company"), a leading mobile social and entertainment platform in China, today announced that it will release its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023 before U.S. markets open on Thursday, March 14, 2024.Hello Group's management will host an earnings conference call on Thursday, March 14, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on the same day).Pr ...

Oscar Wong/Moment via Getty Images Investment Thesis Hello Group's (NASDAQ:MOMO) continuous focus on cutting costs and efficiency improvements yield promising results for the bottom line despite declines in revenue and users. Management continues to be very savvy in milking the cash cow business that is Momo, and profits continue to show despite macroeconomic headwinds in China. Assuming a stable user base and modest revenue declines, I believe Hello Group's profits will likely be substantial going into ...