Hello Group’s stock fell 2.1% after earnings, reflecting a mixed quarter rather than a clear upside surprise: group revenue declined 5% year over year, domestic revenue fell 17%, and Momo’s VAS business remained pressured by tax-related disruption and softer consumer spending. Overseas growth and early product improvements provided offsets, but monetization pressure and higher revenue sharing/subsidy costs weighed on the outlook.
- Q2 revenue was RMB 2.49 billion, down 5% year over year but up 4% quarter over quarter; adjusted operating income was RMB 276 million, representing an 11% margin.
- Domestic revenue fell 17% year over year to RMB 1.81 billion, while overseas revenue increased 52% to RMB 673 million and rose to 27% of group revenue from 17% a year earlier.
- Momo VAS revenue declined 16% year over year to RMB 1.54 billion. Tax compliance pressure on agencies and broadcasters, softer consumer spending, and weaker seasonal sequential growth were key headwinds.
- Momo paying users increased by 200,000 quarter over quarter to 3.9 million, supported by audio/video events and product initiatives, but revenue sharing rose by a low-single-digit percentage-point range year over year and quarter over quarter.
- Tantan paying users declined by 40,000 quarter over quarter to 0.5 million, primarily due to Alipay changes to auto-renewal deductions; management said domestic user scale was stable with a slight Q2 uptick.
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