Hello Group Bets on Global Dating Market as Chinese Users Decline

China’s Hello Group Inc., the operator of the social and dating apps Momo and Tantan, is doubling down on international expansion as it struggles with ongoing declines in user numbers and profitability in its home market. The company reported a 12% drop in revenue for the fourth quarter of 2024, extending a years-long decline, while net income plunged 59% year-over-year to 187.2 million yuan.

Facing regulatory pressures, shifting user preferences, and stiff competition from platforms like Douyin and Xiaohongshu, Hello Group is increasingly looking overseas for growth. Its global business, particularly through its social app Soulchill, has gained traction in Middle Eastern markets, where revenue surged 50% in 2024 to nearly 1 billion yuan (over $138m, or £106m) – surpassing Tantan’s revenue contribution.

To further its global push, Hello Group launched two additional apps in late 2023: Yaahlan, an Arabic-language audio social gaming platform, and AMAR, a voice-based social platform aimed at young users in the Middle East and North Africa (MENA). However, given the changing needs of the international dating app audience, there is a good chance that both Tantan and Momo see increased success if they can find the right audiences outside of China.

This isn’t the first time that a user decrease has led to increased revenue for the company – the same happened with Momo in 2023 entirely within China. Given that the apps haven’t been spread to worldwide audiences yet, it seems likely that they will pick up significantly more income if they can establish a foothold overseas. However, investor sentiment remains cautious, with the company’s stock dropping 8% after its earnings report due to uncertainty over a sustainable turnaround.