Hello Group Q4 Earnings: Stock Drops On Q4 Miss, $486 Million Buyback

Hello Group Inc MOMO reported a fiscal fourth-quarter fiscal 2024 net revenue decline of 12.2% year-on-year to $361.2 million (or 2.64 billion Chinese yuan).

The China-based company missed the analyst consensus estimate of $365.05 million.

It also reported an adjusted net income per ADS of 18 cents (1.30 Chinese yuan), missing the analyst consensus estimate of 21 cents.

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Drivers: Monthly Active Users (MAU) on the Tantan application were 10.8 million in December 2024, down from 13.7 million a year ago.

The total number of paying users on the Momo app declined to 5.7 million in the quarter from 7.4 million a year ago. Tantan had 0.9 million paying users in the quarter, down from 1.2 million a year ago.

Segments: Revenues from the Live video service declined by 17% Y/Y to $173.3 million, total value-added service decreased by 6.9% Y/Y to $181.8 million, and Mobile marketing declined 2.9% Y/Y to $6 million.

Net revenues from the Momo segment declined by 11.2% Y/Y to $332 million, primarily due to the decrease in revenues from value-added service and live video service on the Momo app. The Tantan segment revenues decreased by 21.6% to $29.2 million.

Adjusted income from operations declined 57.9% to $38.4 million.

Hello Group held $2.02 billion in cash and equivalents and generated $58 million in operating cash flow.

Dividend: Hello Group Board declared a special cash dividend of $0.30 per ADS.

Buyback: Hello Group extended the share buyback program to March 31, 2027 (from prior June 30, 2026) and upsized total authorization by $200 million to $486 million.

Chair and CEO Yan Tang noted that 2024 was fraught with challenges and opportunities. The business maintained its robust growth momentum, prompting it to take bolder measures to propel future growth and innovation in international markets.

Outlook: Hello expects first-quarter revenue of 2.4 billion Chinese yuan–2.5 billion Chinese yuan (a decrease of 6.3%–2.4% year over year).

Price Action: MOMO stock is down 13.9% at $6.39 premarket at the last check Wednesday.

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