To The Moon

Hello 🐯 Hello Group is actually known as MOMO, the once very popular social networking app for strangers, which released its Q1 2023 earnings yesterday. I. Overall Financial Data 1. Operating income Hello Group Q1 revenue was 2,818.9 million yuan, down 10.5% from 3,148.1 million yuan in the same period of the previous year, and has been declining for N consecutive quarters. The effect is still not very good. By business view: Live video services: revenue was RMB 1,429.3 million, accounting for 50.7% of total revenue, down 11.2% from RMB 1,608.7 million in the same period in 2022, with earnings explaining the decline mainly due to factors related to the new crown pneumonia and product adjustments to adapt to the application pressure caused by regulatory changes in the second quarter of 2022. Value-added services revenue: Revenue totaled RMB1,361.5 million ($198.2 million), down 8.2% from RMB1,483.4 million in the same period in 2022. This primarily includes virtual gift revenue and membership subscription revenue. Mobile Marketing: Revenue of RMB21.0 million, a decrease of 24.4% year-over-year. The decline in mobile marketing revenue was due to lower demand from brand marketers. Mobile Gaming: Revenue of RMB3.7 million), down 85.5% from RMB25.5 million in the first quarter of 2022. The decline in mobile gaming revenue was primarily due to the Company's decision to shift away from the game distribution business. 2. Profit Hello Group reported net income of $389.5 million for the first quarter of 2023, up 35% from $288.8 million a year earlier; non-GAAP net income was $471.1 million, compared to $397.4 million a year earlier. Revenue declined and zero profit grew, so it seems to be cutting costs and increasing efficiency after all. 3. Expenses Hello Group's costs and expenses were $2,419.1 million ($352.2 million) in the first quarter of 2023, down 14.2% from $2,820.0 million a year earlier, which explains the decline in revenue but the increase in net income. Costs: $1,664 million, compared to $1,821 million in the same period last year, a 10% decrease. Total operating expenses: $2,419.1 million ($352.2 million), down 14.2% from $2,820.0 million a year earlier. Selling and marketing expenses: $380.0 million, down 35% from $589.0 million in the prior year period, a relatively large savings. Research and development expenses: $237 million, compared to $250 million in the same period last year, essentially unchanged. Administrative expenses: $138 million, compared to $160 million in the same period last year, a slight decrease. II. Operations MOMO monthly active: 106.5 million compared to 110.9 million in March 2022, the number of users has started to decrease. Probe monthly active: 19.5 million people compared to 25.6 million in March 2022, a more significant decline. MOMO paid subscribers: 7.8 million compared to 8.6 million in the same period last year. Probe paid users: 1.6 million, compared to 2.4 million in the same period last year. Looking at the data, basically all of them are down. Personal Review 1. MOMO before the degree of fire I actually met with my own eyes, I have also used, at that time really a social circle can expand the software, especially a lot of young people like to use. But then slowly become tasteless, and even dyed yellow, once touched these red lines, the development of the latter can be imagined, so MOMO has always been a policy risk, the company even changed its name. 2. Both from revenue and operational data, basically a decline across the board, the good thing is that through cost reduction and efficiency to maintain the profitability, the company can survive, but growth is a bit difficult. 3. The company has found its second growth curve by live streaming business, which can be regarded as a new life, but the live streaming business is also an old business, and has started to decline, so how to grow in the future is another problem. 4. All social software is not very good to do strong, WeChat, Jitterbug in that the other is very difficult. Think of the previous school network, behind the Blue City high-profile listing, and hastily delisted, this track is not easy to survive, investment is also more difficult! $Hello Group Inc(MOMO)$ @VideoLounge @TigerStars @Tiger_chat @MaverickTiger @CaptainTiger @MillionaireTiger @Daily_Discussion