Hello Group shares tumble 14% as Q4 earnings miss estimates

Published 12/03/2025, 11:42
Hello Group shares tumble 14% as Q4 earnings miss estimates

BEIJING -On Wednesday, Hello Group Inc. (NASDAQ:MOMO) reported fourth quarter earnings that fell short of analyst expectations.

The company’s shares were down -14.02% in premarket trading following the release.

The Chinese social networking company posted adjusted earnings per share of $0.18, missing the consensus estimate of $0.21. Revenue came in at $361.2 million, slightly above expectations of $356.2 million but down 12.2% year-over-year.

Hello Group’s core Momo app saw total paying users decline to 5.7 million in Q4, compared to 7.4 million in the same period last year. The company’s Tantan dating app also experienced a drop in paying users to 0.9 million from 1.2 million a year ago.

"2024 was a year fraught with challenges and opportunities," said Yan Tang, Chairman and CEO of Hello Group. "Our team maneuvered through external uncertainties well and delivered satisfactory financial and operational results."

For the first quarter of 2025, Hello Group expects revenue between RMB2.4 billion to RMB2.5 billion ($329 million to $342.5 million), representing a year-over-year decline of 2.4% to 6.3%.

The company also announced a special cash dividend of $0.30 per ADS and expanded its share repurchase program by $200 million to $486.1 million total.

Despite the earnings miss, Hello Group maintained that its Momo cash cow business "continues to be productive" while its overseas business saw "robust growth momentum." However, investors appeared focused on the declining user metrics and soft guidance, sending shares sharply lower following the report.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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