Hello Group (NASDAQ:MOMO), a prominent online social networking service provider in mainland China, has disclosed its unaudited financial results for the second quarter of 2024, revealing a downturn in both revenue and profits.
The company reported a 14.2% decline in net revenues, which fell to RMB2,691.4 million (approximately US$370.3 million) compared to the same period last year.
This drop was accompanied by a decrease in net income, which shrank from RMB568.4 million in Q2 2023 to RMB397.8 million (US$54.7 million) in the recent quarter.
Diluted net income per American Depositary Share (ADS) also saw a reduction, moving from RMB2.82 in Q2 2023 to RMB 2.11 (US$0.29) in Q2 2024.
Meanwhile, a notable decline was observed in the Monthly Active Users (MAU) on Hello Group's Tantan app, which decreased from 17.3 million in June 2023 to 12.9 million in June 2024.
While total paying users for the Momo app dropped to 7.2 million in the second quarter of 2024 from 7.9 million in the corresponding quarter of the previous year, Tantan’s paying users also reduced from 1.4 million in Q2 2023 to 1 million in the latest quarter.
Despite these challenges, the company's total cash reserves, including cash equivalents, various deposits, and restricted cash, saw a slight increase, totaling RMB14,316.4 million (US$1,970 million) as of June 30, 2024, up from RMB13,478.5 million at the end of 2023.