Hello Group Clocks 9.3% Revenue Decline In Q1; Plans $200M Stock Buyback

  • Hello Group Inc MOMO reported a first-quarter FY22 net revenue decline of 9.3% year-on-year to $496.6 million, beating the consensus of $466.5 million.
  • Drivers: Monthly Active Users (MAU) on the Momo application were 110.9 million in March 2022, down from 115.3 million in March 2021.
  • Total paying users of its live video service and value-added service declined from 12.6 million in Q1 FY21 to 11 million in Q1 FY22.
  • Segments: Revenues from the Live video service declined 18% Y/Y to $253.8 million, Total value-added service increased 1.9% Y/Y to $234 million, Mobile marketing fell 28% Y/Y to $4.4 million, and Mobile games rose 128% Y/Y to $4 million.
  • Net revenues from the Momo segment fell 3.5% Y/Y to $441.5 million, while the Tantan segment revenues decreased 38.5% to $55.1 million.
  • Non-GAAP income from operations deteriorated by 30.3% Y/Y to $72.7 million. Non-GAAP net income per ADS of $0.31 beat the consensus of $0.23.
  • Hello, Group held $2.5 billion in cash and equivalents and generated $6.8 million in operating cash flow.
  • "Q1 2022 was a challenging yet fruitful quarter for us. I am pleased that our team was able to focus on our product and operational initiatives to cope with the headwinds from the resurgence of COVID-19 and related challenges, getting 2022 off to a good start," commented Li Wang, CEO.
  • Outlook: Hello sees a Q2 revenue decrease of 14.2% - 16.9% Y/Y, representing $480.4 million - $496.2 million, versus the consensus of $495.7 million.
  • Buyback: The board approved a share buyback of up to $200 million of its shares over the next 24 months.
  • Price Action: MOMO shares traded lower by 4.31% at $5.99 in the premarket session on the last check Tuesday.

Posted In: BriefsEarningsNewsGuidanceBuybacksSmall CapTech

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.