- Hello Group (NASDAQ:MOMO) beat expectations on top and bottom lines with its third-quarter earnings, though it's caught up in a marketwide downdraft and shares are 2.1% lower.
- It's yet another profit beat for the company alongside some downward revisions from analysts in the past few months.
- Attributable non-GAAP income fell to 571.6 million yuan (about $88.7 million) from a year-ago 653.8 million yuan, and diluted net income per ADS was 2.70 yuan, down from 2.98 yuan in the prior-year period.
- Revenues were better than expected, falling only fractionally to 3.76 billion yuan (about $583.4 million).
- "We continued to push forward with all of our strategic goals. For the first time since the beginning of the COVID-19 pandemic, core Momo revenue has achieved year-over-year growth," CEO Li Wang says, though he acknowledged challenges ahead on live streaming: "Although we still have many hard work to do at Tantan, I am glad that we are finally on track to make concrete progresses on the product fronts."
- Operating income dropped to 460.5 million from 531.1 million yuan.
- Revenue breakout: Live video service, 2.17 billion yuan (down 8.8%); Value-added service, 1.53 billion yuan (up 15.2%); Mobile marketing, 43.3 million yuan (down 14.1%); Mobile games, 8.1 million yuan (up 1%).
- Net cash from operations was 559.9 million yuan (about $86.9 million), down from 691.1 million a year ago. Liquidity at quarter-end came to 15.2 billion yuan (about $2.35 billion).
- Shares have mostly traded sideways for the past few months, and have lost nearly half their value from a 52-week peak hit in February:
