Hello Group Shares Plunge 8% as Earnings Miss, User Decline Raises Concerns

Hello Group (NASDAQ:MOMO) saw its stock tumble over 8% intra-day today after posting weaker-than-expected fourth-quarter earnings, raising concerns over declining user engagement across its social networking and dating platforms.

The company reported adjusted earnings per share of $0.18, missing analyst expectations of $0.21. However, revenue slightly exceeded forecasts at $361.2 million versus the $356.2 million estimate, though it still reflected a 12.2% year-over-year drop.

A key concern for investors was the continued decline in paying users. The flagship Momo app saw its user base shrink to 5.7 million, down from 7.4 million a year earlier. Meanwhile, the Tantan dating app also experienced a drop in subscribers, falling to 0.9 million from 1.2 million in the prior-year quarter.

CEO Yan Tang acknowledged the challenges of 2024 but emphasized the company’s ability to navigate uncertainties and deliver what he described as satisfactory results.

Looking ahead, Hello Group forecasts first-quarter 2025 revenue in the range of RMB 2.4 billion to RMB 2.5 billion ($329 million to $342.5 million), representing a year-over-year decline of 2.4% to 6.3%.