Hello Group Inc. Announces Unaudited Financial Results for the First Quarter of 2025

, /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading player in Asia's online social and entertainment space, today announced its unaudited financial results for the first quarter of 2025. First Quarter of 2025 Highlights Net revenues decreased by 1.5% year over year to RMB2,520.8 million (US$347.4 million*) in the first quarter of 2025. Net revenues from overseas increased by 71.9% year over year to RMB414.6 million (US$57.1 million) in the first quarter of 2025. Net income attributable to Hello Group Inc. increased to RMB358.0 million (US$49.3 million) in the first quarter of 2025, from RMB5.2 million in the same period of 2024. Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB403.8 million (US$55.6 million) in the first quarter of 2025, from RMB59.9 million in the same period of 2024. Diluted net income per American Depositary Share ("ADS") was RMB2.07 (US$0.29) in the first quarter of 2025, compared to RMB0.03 in the same period of 2024. Non-GAAP diluted net income per ADS (note 1) was RMB2.34 (US$0.32) in the first quarter of 2025, compared to RMB0.31 in the same period of 2024. Monthly Active Users ("MAU") on Tantan app were 10.7 million in March 2025, compared to 13.7 million in March 2024. For the Momo app total paying users was 4.2 million for the first quarter of 2025, compared to 7.1 million for the same period last year. Tantan had 0.8 million paying users for the first quarter of 2025 compared to 1.1 million from the year ago period. * This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB7.2567 to US$1.00, the effective noon buying rate for March 31, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board. "Q1 marked a strong start to 2025," commented Yan Tang, Chairman and CEO of Hello Group. "Our mainland PRC businesses continue to deliver solid profits, thanks to our ongoing efforts in cost reduction and efficiency improvement, as well as gradual stabilization of external factors. Meanwhile, our overseas business growth has accelerated, driven by further localization of existing products and the initial monetization of new apps. We expect the overseas products to make an increasingly meaningful contribution to the Group's financials in the coming quarters." First Quarter of 2025 Financial Results Net revenues Total net revenues were RMB2,520.8 million (US$347.4 million) in the first quarter of 2025, a decrease of 1.5% from RMB2,560.4 million in the first quarter of 2024. Starting from the first quarter of 2025, the Company combined the live video service and value-added services lines, which are now collectively referred to as value-added services. This change reflects the increasing convergence of the two business lines in terms of user mentality and product format. The combined reporting more accurately reflects user behavior and spending across the Company's social entertainment ecosystem. Additionally, the Company consolidated mobile marketing services, mobile games and other services, which are now collectively reported under "other services." Value-added service revenues mainly include virtual gift revenues from various audio, video and text- based scenarios, and membership subscription revenues. Total value-added service revenues were RMB2,489.9 million (US$343.1 million) in the first quarter of 2025, a decrease of 1.7% from RMB2,532.9 million during the same period of 2024. The decrease was primarily due to a soft consumer sentiment among top users in the current macro environment of Momo app, and to a lesser extent, the decline in Tantan's paying users which was in turn due to the decline in user base. The decrease was partially offset by the rapid revenue growth from our overseas apps, driven by the strong performance of the relatively established brand--Soulchill and the monetization of a collection of new apps. Other services revenues were RMB30.9 million (US$4.3 million) in the first quarter of 2025, compared to RMB27.5 million during the same period of 2024. Net revenues from Chinese mainland decreased from RMB2,319.2 million in the first quarter of 2024 to RMB2,106.2 million (US$290.2 million) in the first quarter of 2025, primarily due to the decrease in net revenues from Momo app and Tantan app. Net revenues from overseas increased from RMB241.2 million in the first quarter of 2024 to RMB414.6 million (US$57.1 million) in the first quarter of 2025, driven by the growth of Souchill and incremental revenue from emerging brands. Cost and expenses Cost and expenses were RMB2,234.5 million (US$307.9 million) in the first quarter of 2025, an increase of 5.4% from RMB2,120.0 million in the first quarter of 2024. The increase was primarily attributable to: (a) an increase in revenue sharing with virtual gift recipients for overseas apps, which was partially offset by a decrease in revenue sharing with broadcasters on Momo apps; and (b) an increase in sales and marketing expenses related to the promotion of overseas apps, partially offset by a decrease in Tantan's marketing and promotional expense due to our continuous initiatives to control cost and optimize Tantan's channel marketing strategy. Non-GAAP cost and expenses (note 1) were RMB2,188.8 million (US$301.6 million) in the first quarter of 2025, compared to RMB2,065.3 million during the same period of 2024. Income from operations Income from operations was RMB299.5 million (US$41.3 million) in the first quarter of 2025, compared to RMB460.3 million during the same period of 2024. Non-GAAP income from operations (note 1) was RMB345.3 million (US$47.6 million) in the first quarter of 2025, compared to RMB515.0 million during the same period of 2024. Income tax expenses Income tax expenses were RMB70.4 million (US$9.7 million) in the first quarter of 2025, compared to RMB557.6 million in the first quarter of 2024. The decrease in income tax expenses was primarily due to the accrual in the first quarter of 2024 of withholding income tax of RMB448.6 million associated with historical undistributed earnings generated by our wholly-foreign owned enterprise. Net income Net income was RMB358.5 million (US$49.4 million) in the first quarter of 2025, compared to RMB5.2 million during the same period of 2024. Non-GAAP net income (note 1) was RMB404.3 million (US$55.7 million) in the first quarter of 2025, compared to RMB59.9 million during the same period of 2024. Net income attributable to Hello Group Inc. Net income attributable to Hello Group Inc. was RMB358.0 million (US$49.3 million) in the first quarter of 2025, compared to RMB5.2 million during the same period of 2024. Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB403.8 million (US$55.6 million) in the first quarter of 2025, compared to RMB59.9 million during the same period of 2024. Net income per ADS Diluted net income per ADS was RMB2.07 (US$0.29) in the first quarter of 2025, compared to RMB0.03 in the first quarter of 2024. Non-GAAP diluted net income per ADS (note 1) was RMB2.34 (US$0.32) in the first quarter of 2025, compared to RMB0.31 in the first quarter of 2024. Cash and cash flow As of March 31, 2025, the Company's cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB12,785.9 million (US$1,761.9 million), compared to RMB14,728.5 million as of December 31, 2024. Net cash provided by operating activities in the first quarter of 2025 was RMB239.7 million (US$33.0 million), compared to RMB400.2 million in the first quarter of 2024. Change in Segment Reporting Effective from the first quarter of 2025, the Company implemented the strategic decision to integrate the operations of Momo, Tantan, and QOOL into a unified business structure, and as a result, changed its segment disclosure from three operating segments to a single operating segment. This change reflects the Company's strategic focus and aligns with the financial information that the Company's chief operating decision maker currently receives and uses to allocate resources and assess performance of the Company. Prior period segment information has been retrospectively revised to conform to the current presentation. Recent Development Payment of a special cash dividend In March 2025, Hello Group's board of directors declared a special cash dividend in the amount of US$0.30 per ADS, or US$0.15 per ordinary share. The cash dividend was paid in April 2025 to shareholders of record at the close of business on April 11, 2025. The aggregate amount of cash dividends paid was US$47.9 million. Share repurchase program As of June, 5, 2025, the Company has repurchased 47.8 million ADSs for US$291.3 million on the open market under Share Repurchase Program announced on June 7, 2022 and amended on March 14, 2024 and March 12, 2025, at an average purchase price of US$6.07 per ADS. The remaining size of the program is USD $194.8 million. Business Outlook For the second quarter of 2025, the Company expects total net revenues to be between RMB2.57 billion to RMB2.67 billion, representing a decrease of 4.5% to 0.8% year over year. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change. Note 1: Non-GAAP measures To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and such adjustments has no impact on income tax. Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures. Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. Our non-GAAP information (including non-GAAP cost and operating expenses, income from operations, net income, net income attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and such adjustments has no impact on income tax. A limitation of using these non-GAAP financial measures is that share-based compensation and amortization of intangible assets from business acquisitions have been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release. Conference Call Hello Group's management will host an earnings conference call on Thursday, June 5, 2025, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on June 5, 2025). Participants can register for the conference call by navigating to: https://s1.c-conf.com/diamondpass/10047425-78qg9r.html. Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin. A telephone replay of the call will be available after the conclusion of the conference call through June 12, 2025. The dial-in details for the replay are as follows: U.S. / Canada: 1-855-883-1031 Hong Kong: 800-930-639Passcode: 10047425 Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Hello Group's website at https://ir.hellogroup.com. About Hello Group Inc. We are a leading player in Asia's online social networking space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. Starting from 2019, we have incubated a number of other new apps, such as Hertz, Soulchill, and Duidui, which target more niche markets and more selective demographics. For investor and media inquiries, please contact: Hello Group Inc. Investor RelationsPhone: +86-10-5731-0538Email: [email protected] Christensen In ChinaMs. Xiaoyan SuPhone: +86-10-5900-1548E-mail: [email protected] In U.S. Ms. Linda BergkampPhone: +1-480-614-3004Email: [email protected] Safe Harbor Statement This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the second quarter of 2025, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program. Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the first quarter of 2025 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the second quarter of 2025 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, general economic conditions, and other factors. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release. Hello Group Inc. Unaudited Condensed Consolidated Statement of Operations (All amounts in thousands, except share and per share data) Three months Ended March 31 2024 2025 2025 RMB RMB US$ Net revenues(i): Value-added service 2,532,917 2,489,902 343,118 Other services 27,503 30,933 4,262 Total net revenues 2,560,420 2,520,835 347,380 Cost and expenses: Cost of revenues (1,503,008) (1,569,074) (216,224) Research and development (192,191) (195,769) (26,978) Sales and marketing (293,431) (329,178) (45,362) General and administrative (131,381) (140,511) (19,363) Total cost and expenses (2,120,011) (2,234,532) (307,927) Other operating income, net 19,906 13,182 1,817 Income from operations 460,315 299,485 41,270 Interest income 121,107 120,338 16,583 Interest expense (23,698) (30,659) (4,225) Other gain or loss, net (9,245) - - Income before income tax and share of income on equity methodinvestments 548,479 389,164 53,628 Income tax expenses (557,613) (70,406) (9,702) (Loss) income before share of income on equity methodinvestments (9,134) 318,758 43,926 Share of income on equity method investments 14,318 39,731 5,475 Net income 5,184 358,489 49,401 Less: net income attributable to non-controlling interest - 495 68 Net income attributable to the shareholders of Hello Group Inc. 5,184 357,994 49,333 Net income per share attributable to ordinary shareholders Basic 0.01 1.05 0.15 Diluted 0.01 1.04 0.14 Weighted average shares used in calculating net income per ordinaryshare Basic 374,650,649 339,405,347 339,405,347 Diluted 389,278,806 345,905,274 345,905,274 (i) The following table presents revenues by geographic area based on the addresses of our customers of our users: Three months Ended March 31 2024 2025 2025 RMB RMB US$ Chinese mainland 2,319,223 2,106,233 290,247 Overseas 241,197 414,602 57,133 Total 2,560,420 2,520,835 347,380 Hello Group Inc. Unaudited Condensed Consolidated Statement of Comprehensive Income (All amounts in thousands, except share and per share data) Three months Ended March 31 2024 2025 2025 RMB RMB US$ Net income 5,184 358,489 49,401 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 54,894 (43,338) (5,972) Comprehensive income 60,078 315,151 43,429 Less: comprehensive income (loss) attributed to the non-controllinginterest 3,084 (599) (83) Comprehensive income attributable to Hello Group Inc. 56,994 315,750 43,512 Hello Group Inc. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except share and per share data) December 31 March 31 March 31 2024 2025 2025 RMB RMB US$ Assets Current assets Cash and cash equivalents 4,122,659 5,381,833 741,636 Short-term deposits 2,026,245 762,835 105,121 Restricted cash 4,566,477 2,637,531 363,461 Accounts receivable, net of allowance for credit losses of RMB12,433 andRMB17,427 as of December 31, 2024 and March 31, 2025, respectively 192,317 222,213 30,622 Prepaid expenses and other current assets 1,104,172 1,099,969 151,580 Total current assets 12,011,870 10,104,381 1,392,420 Long-term deposits 3,059,860 3,051,340 420,486 Long-term restricted cash 953,285 952,391 131,243 Right-of-use assets, net 252,169 216,054 29,773 Property and equipment, net 897,036 916,423 126,286 Intangible assets, net 86,661 191,927 26,448 Rental deposits 13,280 13,387 1,845 Long-term investments 825,533 863,342 118,972 Other non-current assets 110,960 133,420 18,386 Deferred tax assets 36,066 35,726 4,923 Goodwill 136,250 249,412 34,370 Total assets 18,382,970 16,727,803 2,305,152 Liabilities and equity Current liabilities Accounts payable 615,254 619,824 85,414 Deferred revenue 427,702 437,351 60,269 Accrued expenses and other current liabilities 704,410 652,234 89,880 Lease liabilities due within one year 141,971 127,765 17,606 Income tax payable 157,057 56,565 7,795 Deferred consideration in connection with business acquisitions-current 28,027 27,863 3,840 Convertible Senior Notes-current 20,191 20,090 2,768 Dividends payable - 347,403 47,873 Long-term borrowings, current portion 1,938,385 1,939,245 267,235 Short-term borrowings 2,365,535 675,000 93,017 Total current liabilities 6,398,532 4,903,340 675,697 Deferred consideration in connection with business acquisitions-non current 65,694 65,310 9,000 Lease liabilities 115,105 92,338 12,725 Deferred tax liabilities 241,915 254,530 35,075 Long-term borrowings - 3,227 445 Other non-current liabilities 129,051 143,552 19,782 Total liabilities 6,950,297 5,462,297 752,724 Shareholder's equity (ii) 11,432,673 11,265,506 1,552,428 Total liabilities and shareholder's equity 18,382,970 16,727,803 2,305,152 (ii): As of March 31, 2025, the number of ordinary shares outstanding was 321,338,936. Hello Group Inc. Unaudited Condensed Consolidated Statement of Cash Flows (All amounts in thousands, except share and per share data) Three months Ended March 31 2024 2025 2025 RMB RMB US$ Cash flows from operating activities: Net income 5,184 358,489 49,401 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 14,310 12,391 1,708 Amortization of intangible assets 1,279 6,191 853 Share-based compensation 54,670 40,860 5,631 Share of income on equity method investments (14,318) (39,731) (5,475) Returns on investments - 508 70 Loss on long-term investments 9,245 - - Gain or loss on disposal of property and equipment 258 (102) (14) Provision of loss on receivable and other assets 1,776 5,405 745 Changes in operating assets and liabilities: Accounts receivable 10,980 (19,144) (2,638) Prepaid expenses and other current assets (9,677) 11,375 1,568 Rental deposits (802) (110) (15) Deferred tax assets (2,498) 340 47 Other non-current assets (7,597) 35,046 4,829 Accounts payable (17,454) (13,543) (1,866) Income tax payable 6,036 (100,979) (13,915) Deferred revenue 16,674 9,035 1,245 Accrued expenses and other current liabilities (56,800) (70,983) (9,782) Deferred tax liabilities 365,011 12,713 1,752 Other non-current liabilities 23,893 (8,040) (1,108) Net cash provided by operating activities 400,170 239,721 33,036 Cash flows from investing activities: Purchase of property and equipment (44,176) (27,814) (3,833) Payment for business acquisition - (194,390) (26,788) Cash received on maturity of short-term deposits 300,000 1,107,245 152,582 Purchase of long-term deposits (718,860) - - Cash received on maturity of long-term deposits 718,860 150,000 20,671 Cash received from sales of long-term investment 2,000 - - Loan to a third-party company - (27,478) (3,787) Other investing activities 385 192 26 Net cash provided by investing activities 258,209 1,007,755 138,871 Cash flows from financing activities: Proceeds from exercise of share options 11 2 - Repurchase of ordinary shares (112,261) (201,529) (27,771) Proceeds from short-term borrowings 1,331,635 - - Repayment of short-term borrowings (215) (1,690,535) (232,962) Repayment of long-term borrowings - (395) (54) Net cash provided (used in) by financing activities 1,219,170 (1,892,457) (260,787) Effect of exchange rate changes 20,814 (25,685) (3,541) Net increase (decrease) in cash and cash equivalents 1,898,363 (670,666) (92,421) Cash, cash equivalents and restricted cash at the beginning of period 8,282,912 9,642,421 1,328,761 Cash, cash equivalents and restricted cash at the end of period 10,181,275 8,971,755 1,236,340 Hello Group Inc. Reconciliation of Non-GAAP financial measures to comparable GAAP measures (All amounts in thousands, except per share data) 1. Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures. Three months Three months Three months Ended March 31, 2024 Ended March 31, 2025 Ended March 31, 2025 GAAP Share-basedcompensation Non-GAAP GAAP Amortization ofintangible assetsfrom businessacquisitions Share-basedcompensation Non-GAAP GAAP Amortization ofintangible assetsfrom businessacquisitions Share-basedcompensation Non-GAAP RMB RMB RMB RMB RMB RMB RMB US$ US$ US$ US$ Cost of revenues (1,503,008) 1,882 (1,501,126) (1,569,074) 1,263 1,774 (1,566,037) (216,224) 174 244 (215,806) Research and development (192,191) 8,786 (183,405) (195,769) 859 9,060 (185,850) (26,978) 118 1,249 (25,611) Sales and marketing (293,431) 6,117 (287,314) (329,178) 2,790 4,311 (322,077) (45,362) 384 594 (44,384) General and administrative (131,381) 37,885 (93,496) (140,511) - 25,715 (114,796) (19,363) - 3,544 (15,819) Cost and operating expenses (2,120,011) 54,670 (2,065,341) (2,234,532) 4,912 40,860 (2,188,760) (307,927) 676 5,631 (301,620) Income from operations 460,315 54,670 514,985 299,485 4,912 40,860 345,257 41,270 676 5,631 47,577 Net income attributable to Hello Group Inc. 5,184 54,670 59,854 357,994 4,912 40,860 403,766 49,333 676 5,631 55,640 SOURCE Hello Group Inc. 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Hello Group Inc. Announces Unaudited Financial Results for the First Quarter of 2025

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