Hello Group Tops Q1; Tantan Delivers First Quarterly Profit At Operating Level - Hello Gr (NASDAQ:MOMO)

Hello Group Inc MOMO reported a first-quarter FY23 net revenue decline of 10.5% year-on-year to $410.5 million, beating the consensus of $380.1 million.
Drivers: Monthly Active Users (MAU) on the Momo application were 106.5 million in March 2023, down from 110.9 million in March 2022.
Total paying users of its Momo app declined from 8.6 million in Q1 FY22 to 7.8 million in Q1 FY23. Tantan had 1.6 million paying users for Q1 FY23 versus 2.4 million in Q1 FY22.
Segments: Revenues from the Live video service declined 11.2% Y/Y to $208.1 million, Total value-added service decreased 8.2% Y/Y to $198.2 million, Mobile marketing decreased 24.4% Y/Y to $3.1 million, and Mobile games fell 85.5% Y/Y to $0.5 million.
Net revenues from the Momo segment fell 10.3% Y/Y to $365.5 million, while the Tantan segment revenues decreased 11.6% to $44.9 million.
Non-GAAP income from operations improved to $75.4 million. Non-GAAP net income per ADS of $0.34 beat the consensus of $0.27.
Hello Group held $1.94 billion in cash and equivalents and generated $65.7 million in operating cash flow.
Commented Yan Tang, Chairman and CEO of Hello Group, "Tantan delivered its first quarterly profit at the operating level, and the Momo cash cow business maintained its productivity thanks to our solid cost control, both of which contributed to the improvement of the Group's profitability."
Outlook: Hello sees a Q2 revenue of $438.5 million - $453.1 million (representing a decrease of 3.5% - 0.3% year over year), above the consensus of $419.89 million.
Price Action: MOMO shares traded higher by 6.26% at $9.50 in the premarket session on the last check Tuesday.

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