Hello Group Shares Shrug Off Upbeat 2025 Outlook
The operator of the Momo dating app said revenue from its global business could potentially double to 2 billion yuan this year
Key Takeaways:
Hello Group's revenue fell 12% in the fourth quarter, while its net income plunged 59%, hurt by a livestreaming crackdown and declining users
The company is pivoting to international markets through its Soulchill and other new apps, targeting overseas revenue growth of up to 100% this year.
Hello Group Inc. (MOMO.US) hasn't been too popular on the social scene lately, despite its status as one of China's leading dating app operators.
The owner of Momo, once called the "Tinder of China," has faced years of declining fortunes, which showed no signs of abating in its latest quarterly report released last week. The results revealed yet another across-the-board slump, with revenue, profitability, and paying memberships all down, extending a decline dating back to 2020, even as the company tries to reposition itself as more than just a hook-up app.
Facing unrelenting domestic pressures, including regulatory scrutiny, market saturation and shifting user behavior to other platforms like short video sensation Douyin, company executives are now ramping up a long-touted overseas strategy in search of relief. While Hello Group has explored international markets since 2020, its leadership last week pledged bolder action on that front, pointing to rapid progress over the past year.
Before taking a closer look at Hello Group's overseas expansion, including its 2024 progress and looming challenges, we'll unpack the company's latest quarterly results to show where it currently stands. Its report underscores that its domestic slump isn't easing, explaining why the company views international markets as its most viable route to jumpstart its business.
Hello Group reported revenue of 2.6 billion yuan ($359 million) for the quarter through December, down 12% year-over-year. This extends a pattern of quarterly contractions dating back to the first quarter of 2020, with only one brief respite in the second quarter of 2023 when it eked ...
