- 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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