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.

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