FAST NEWS: Hello Group plunges as paying users drop
The latest: Dating app operator Hello Group Inc. (MOMO.US) reported on Thursday its net profit jumped 13.7% year-on-year to 452 million yuan ($62.8 million) in the fourth quarter of 2023, while its non-GAAP quarterly profit rose 5.5% to 515 million yuan.
Looking up: The company’s live video and value-added service revenues fell by 11.6% and 1.7% for the quarter, respectively, but its mobile marketing revenues rose by 36.4%. Its overall expenses decreased by 11.2% for the period, contributing to the higher profit.
Take Note: The paying user base for the company’s two largest apps, Tantan and Momo, decreased by 29.4% and 5.1%, respectively, during the quarter, with Tantan’s monthly active users plummeting by 25.5% to 13.7 million.
Digging Deeper: Founded in 2011 and listed on the Nasdaq in 2014, Hello Group, operates two main mobile apps, Momo and Tantan, and is often referred to as the “Tinder of China.” Tantan was seen as a rising star when Hello Group bought it in 2018, but it quickly began to decline not long afterwards and failed to make profits for several years. Following an overhaul, Tantan returned to the black in last year’s second quarter and recorded a net profit of 80.77 million yuan for the full year.
Market Reaction: Shares of Hello Group plunged 22.3% to $5.96 on Thursday in New York. The stock now trades near the lower end of its 52-week range.
Translation by A. Au
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