In today's announcement, Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading mobile social and entertainment platform in China, released its unaudited financial results for the third quarter of 2023.   
Highlights of the Third Quarter of 2023
Highlights of the first nine months of 2023
As a company, we are pleased to report strong financial results for the third quarter, as well as steady progress on various strategic priorities across all parts of our organization.", commented Yan Tang, Chairman and CEO of Hello Group, in his statement. The group level profitability continued to grow from the prior year period, mainly due to our effective cost optimization and efficiency improvement initiatives, that allowed us to maintain the stability of Momo's cash cow business, to turn Tantan into a profitable business, and to support the development of new businesses.
The group level profitability continued to grow from the prior year period, mainly due to our effective cost optimization and efficiency improvement initiatives, that allowed us to maintain the stability of Momo's cash cow business, to turn Tantan into a profitable business, and to support the development of new businesses.
Financial Results for the Third Quarter of 2023
Revenues on a net basis
In the third quarter of 2023, Total Net Revenues were RMB3,042.8 million (US$417.1 million), a decrease of 5.9% from the third quarter of 2022, where Total Net Revenues were RMB3,233.0 million.
As of the third quarter of 2023, the revenue for live video services in the market was RMB1,530.8 million (US$209.8 million), a reduction of 7.6% from the same period in 2022 when revenues for live video services were RMB1,657.5 million. In our view, the decrease is primarily attributed to a soft consumer sentiment in the current macro environment, and to a lesser degree, Tantan pivoting away from the live video service, which we deem not a priority for Tantan at this point for the dating service.
Virtual gift revenues and membership subscription revenues are the two main types of value-added service revenues. There was a total revenue of RMB1,466 from value-added services.A total of $207.7 million (US$200.000).In the third quarter of 2023, it is predicted that revenues will be $1.2 billion (down $4 million).From RMB1,537 to RMB1,647, a 6% increase.During the same period of 2022, there will be an increase of 7 million. This drop can be attributed primarily to the impact of the macro-economy on consumer sentiment, as well as our proactive product adjustments to improve Momo's ecosystem, and to a lesser extent, to the decline in Tantan's paying users as we reduced our marketing expenditure.. There was a decrease in revenue this quarter, but this was partially offset by a rapid increase in revenue with the new standalone apps
There was a decrease in revenue this quarter, but this was partially offset by a rapid increase in revenue with the new standalone apps
It is estimated that mobile marketing revenues were RMB30.7 million (US$4.2 million) in the third quarter of 2023, up by 8.7% from RMB28.2 million in the same quarter of 2022.
In the third quarter of 2023, revenues from mobile games were RMB7.9 million (US$1.1 million), an increase of 1.9% compared to RMB7.7 million in the third quarter of 2022.
Momo's net revenues decreased from RMB2,891 in 2013 to RMB2,891 in 2014.In the third quarter of 2022, RMB2,743 million grew to RMB2 billion.A million dollars (376 US dollars).There was a decrease in net revenues from value-added services and live video services on Momo application in the third quarter of 2023 due mainly to the decline in net revenues from value-added services and live video services. In spite of the decrease in revenue, the revenue growth of the new standalone applications partially offset the decrease in revenue. There was a decrease in net revenues from the Tantan segment from RMB341 million to RMB339 million.The RMB295 million figure is expected to increase by 3 million in the third quarter of 2022.A total of $40 million (US$40 million) has been raised.There will be a decrease in net revenues of about $4 million) in the third quarter of 2023, mainly because of the decrease in net revenues from value-added services, and to a lesser extent, because of the decrease from live video services
There will be a decrease in net revenues of about $4 million) in the third quarter of 2023, mainly because of the decrease in net revenues from value-added services, and to a lesser extent, because of the decrease from live video services
The cost and expense of the project
In total, RMB2,461 was spent on costs and expenses.A million dollars (337 US dollars).As a result, there were less than 3 million (down 10 million) in the third quarter of 2023.From RMB2,734 to 0%.In the third quarter of 2022, the number is expected to reach 2 million. In order to explain this decrease, it was primarily attributable to the following factors: (a) a decrease in revenue sharing with broadcasters related to live video services on Momo, and (b) a reduction in revenue sharing with virtual gift recipients on Momo.. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value; (c) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan's channel marketing strategy and, to a lesser extent, Momo's strategy to trim inefficient channel marketing spend
The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value; (c) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan's channel marketing strategy and, to a lesser extent, Momo's strategy to trim inefficient channel marketing spend
The non-GAAP costs and expenses (note 1) for the third quarter of 2023 were RMB2,401.6 million (US$329.2 million), a decrease of 9.3% from the RMB2,649.2 million for the same period of 2022.
The income from operations of the company
The income from operations for the year was RMB621 million.A total of $8 million (US$85 million) was raised.The third quarter of 2023 will be the highest ever in terms of investment (RMB520 million).In the same period of 2022, there will be 1 million jobs created. As a result of Momo segment operations, the segment's income from operations was RMB618 million.The amount is $6 million (US$84 million).In the third quarter of 2023, RMB589.3 million were collected, up from RMB569 million in the first quarter.In the third quarter of 2022, the number is expected to be 4 million. The Tantan segment reported a profit of RMB24 million from its operations.A total of $30 million (US$30 million).Compared to a loss from operations of RMB44 million in the third quarter of 2022, the company has made a loss from operations of RMB3..In the third quarter of 2022, the company expects to reach $5 million
In the third quarter of 2022, the company expects to reach $5 million
There was a non-GAAP income from operations (note 1) of RMB681 million.Approximately $2 million (US$93 million).This is compared to RMB605 million (RMB4 million) in the third quarter of 2023..During the same period of 2022, this number is expected to reach 1 million. According to non-GAAP measures, the Momo segment had a non-GAAP income from operations of RMB674..A total of 92 million dollars (US$5 million) was raised.In the third quarter of 2023, there will be RMB684 million (an increase from RMB648 million in the previous quarter).A total of 2 million will be sold in the third quarter of 2022. As a result of the Tantan segment's non-GAAP income from operations, RMB27 million was earned.The amount is approximately $6 million (US$3 million).An operating loss of RMB38.8 million (non-GAAP) is forecast to be recorded in the third quarter of 2023, compared to a non-GAAP loss of RMB38.8.In the third quarter of 2022, the company is expected to generate $3 million.  
 
Expenses related to income tax
As a result of the higher profits in the third quarter of 2023, income tax expenses in the third quarter reached RMB158.1 million (US$21.7 million) compared to RMB156.0 million in the third quarter of 2022. The increase in income tax expenses was mainly due to the higher profit in the third quarter of 2023.
Income from net operations
In the third quarter of 2023, net income amounted to RMB542.2 million (US$74.3 million), as compared to RMB449.9 million the same period in 2022. The Momo segment reported a net income of RMB540.0 million (US$74.0 million) during the third quarter of 2023 as opposed to RMB499.6 million during the same period in 2022. Compared to a net loss of RMB45.0 million in the third quarter of 2022, the Tantan segment generated a net income of RMB23.0 million (US$3.2 million) in the third quarter of 2023.0 million (US$3.2 million) during the third quarter of 2022.
The non-GAAP net income (note 1) for the quarter was RMB601 million.82 million dollars (US$6 million).This is compared with RMB524.5 million in the third quarter of 2023, while.During the same period of time in 2022, this number is expected to reach 8 million. There was a non-GAAP net income of RMB595 from the Momo segment.A total of $9 million (US$81 million) has been raised so far.An increase of RMB578million was recorded in the third quarter of 2023, up from RMB578million in the second quarter.In the third quarter of 2022, the number of people will reach 4 million. A non-GAAP net income of RMB26 million was recorded by the Tantan segment.The amount of money is $6 million (US$3 million).6 million) in the third quarter of 2023, compared to a non-GAAP net loss of RMB38.During the third quarter of 2022, we expect to sell 8 million units
During the third quarter of 2022, we expect to sell 8 million units
Amount of net income attributable to Hello Group Inc.
The net income attributable to Hello Group Inc. during the third quarter of 2023 was RMB546.4 million (US$74.9 million), compared to RMB450.8 million during the same period of 2022.
The non-GAAP net income (note 1) attributable to Hello Group Inc. in the third quarter of 2023 was RMB605.9 million (US$83.0 million), compared to RMB535.8 million in the third quarter of 2022.
Per ADS, net income is calculated as follows:
There was a diluted net income per ADS of RMB2.75 (US$0.38) in the third quarter of 2023, which was a decrease from RMB2.20 in the third quarter of 2022.
The non-GAAP diluted net income per share (note 1) for the third quarter of 2023 was RMB3.05 (US$0.42), compared to RMB2.60 in the third quarter of 2022.
The cash flow and cash flow forecast
The Company reported that on September 30, 2023, it had RMB13,644.6 million (US$1,870.1 million) in cash, cash equivalents, short-term deposits, long-term deposits, short-term investments, short-term restricted cash, and long-term restricted cash, compared to RMB13,398.8 million at the end of December 2022.
In the third quarter of 2023, the net cash provided by operating activities was RMB582.5 million (US$79.8 million), compared to RMB444.5 million in the third quarter of 2022.
Financial Results for the First Nine Months of 2023
During the first nine months of 2023, the company generated net revenues of RMB8,999.4 million (US$1,233.5 million), a decrease of 5.2% from the RMB9,491.5 million it generated during the same period of 2022.
As a result of the first nine months of 2023, Hello Group Inc. was able to generate a net income of RMB1,505.1 million (US$206.3 million), as compared to RMB1,086.3 million during the same period of 2022.
The non-GAAP net income attributable to Hello Group Inc. (note 1) for the first nine months of 2023 was RMB1,710.0 million (US$234.4 million), which is higher than the RMB1,397.8 million reported in the same period of 2022.
In the first nine months of 2023, diluted net income per ADS stood at RMB7.52 (US$1.03), compared to RMB5.30 in the same period of 2022.
During the first nine months of 2023, the Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17), compared to the RMB6.75 experienced in the same period of 2022.
At the end of the first nine months of 2023, the net cash generated by operating activities amounted to RMB1,861.3 million (US$255.1 million), compared to RMB688.2 million during the same period of 2022.
A recent development in the field
Execution of the share repurchase program
Hello Group's board of directors approved a share repurchase program on June 7, 2022 under which the company will have the option to repurchase up to US$200 million of its shares within the next 24 months under the program. In December 2023, the Company had repurchased 16.2 million ADSs on the open market for US$86.1 million, at an average price of US$5.31 per ADS, under this program.
Outlook for the business world
According to the Company's estimates for the fourth quarter of 2023, total net revenues are expected to range from RMB2.9 billion to RMB3.0 billion, a decrease of 9.7% to 6.6% compared to the previous year. This forecast is based on the Company's current and preliminary views on the market and operational conditions, which may change from time to time.
The following non-GAAP measures are included in this note:
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), Hello Group, uses a number of non-GAAP financial measures that are adjusted from the most comparable GAAP results to remove share-based compensation from the results.
Detailed 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 that we use.
As an additional source of information, we provide non-GAAP financial information to our investors to help them compare business trends between different reporting periods on a consistent basis and enhance investor understanding of the historical and current financial performance of our continuing operations and our prospects for the future.. There is no doubt that our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but it should not be viewed as a substitute for or superior to those results prepared in accordance with GAAP. Additionally, our calculation of the non-GAAP financial measures may differ from the calculation used by other companies, so there may be a limited level of comparability between our calculations and other companies' calculations
Additionally, our calculation of the non-GAAP financial measures may differ from the calculation used by other companies, so there may be a limited level of comparability between our calculations and other companies' calculations
The information provided in this section is not in accordance with GAAP (including, but not limited to, non-GAAP cost and operating expenses, income (loss) from operations, net income (loss), and net income attributable to Hello Group Inc..As a result of this adjustment, the most comparable GAAP results for net income and diluted net income per ADS are adjusted for share-based compensation to exclude them. As a limitation of using these non-GAAP financial measures, we must acknowledge the fact that share-based compensation has been and will continue to be a significant recurring expense in our results of operations for the foreseeable future. In order to compensate for such limitations, we provide reconciliations of our non-GAAP measures to our corresponding GAAP measures. Measures based on GAAP. Please refer to the reconciliation tables at the end of this earnings release for more information
Please refer to the reconciliation tables at the end of this earnings release for more information
Call for a conference call
A conference call will be hosted by Hello Group's management on Friday, December 8, 2023, at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time) in order to discuss the company's financial results.
You can register for the conference call by visiting the following link:
https://s1.c-conf.com/diamondpass/10035226-k7h0xo.html. 
Each participant will receive details regarding the conference call once they have registered, including dial-in numbers, a conference call passcode and a unique access PIN. Please dial in 10 minutes before the conference call is scheduled to begin.
You will have the opportunity to listen to a telephone replay of the conference call after the conclusion of the call until December 15, 2023. The dial-in information for the telephone replay can be found below.
For U.S. and Canadian customers, please call 1-855-883-1031
The Hong Kong number is 800-930-639, and the passcode is 10035226
Moreover, there will be a live and archived webcast of the conference call available on the Investor Relations section of Hello Group's website at https://ir.hellogroup.com following the conference call.
A brief overview of Hello Group Inc.
We are one of the leading players in the online social and entertainment space in China. By providing users with Momo, Tantan, and other properties within our product portfolio, we're enabling them to discover new relationships, expand their social connections, and build meaningful relationships.. The Momo application is a mobile application that connects people and facilitates social interactions based on their location, interests, and a wide variety of online recreational activities that they may enjoy. The Tantan application, which was acquired by us in May of 2018, has become one of the leading social and dating applications in the market.. It is the objective of Tantan to help its users establish romantic relationships as well as meet people who are interesting to them. In addition, we operate a number of other applications to cater to our users' needs in terms of social and entertainment applications
In addition, we operate a number of other applications to cater to our users' needs in terms of social and entertainment applications
In case of investor or media inquiries, please contact the following:
Group Inc. is happy to welcome you.
Information for InvestorsPhone: +86-10-5731-0538Email: [email protected]Phone: +86-10-5731-0538
The Christensens
A contact person in China has been assigned to you: Ms. Xiaoyan SuPhone: +86-10-5900-1548E-mail: [email protected] 
This is the case in the United States.
Ms. Linda Bergkamp can be reached by phone at +1-480-614-3004 or by email at [email protected] 
Statement of Safe Harbor

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