Hello Group's revenue fell 2.6% in Q2, continuing a five-year decline. AI features tested in Momo app aim to improve user engagement and retention. International revenue contribution grew to 17%, but growth is expected to slow. The company reported a net loss of 139 million yuan, its first since 2021. Analysts remain mixed; 6 hold 'buy' ratings amid concerning consumer sentiment.
Hello Group's revenue could double to 2 billion yuan from international markets. Domestic revenue fell 12% and net income plunged 59%. User declines in Momo prompted aggressive international strategy updates. Soulchill app shows potential, surging 50% year-over-year to nearly 1 billion yuan. Investors remain cautious, with stock down 8% post-earnings release.