Hello Group has published its earnings report for the second quarter, beating analyst estimates on both revenue and earnings per share.
Total revenue decreased year-over-year by 5.1% to $568.7 million, exceeding expectations by over $9 million. As a result, earnings per share was around 39 cents, beating by seven cents.
Monthly active users grew over the 12 month period but still missed by 500,000. Total paying users, without double counting across the portfolio, were down to 12.4 million, which is a contributing factor to the over fall in revenue.
Hello Group’s CEO Li Wang explained in a statement: “The second quarter of 2021 was a solid quarter with decent financial results and progress on all of our strategic priorities.
“The fundamentals of the core Momo as a social platform continued to strengthen. At the same time revenue performance and structure showed solid improvements. The healthy and productive core business gives us important leverage to plow new grounds and build longer term drivers for the group.”
The internal outlook for the third quarter expects revenue to be in the $560-580 million range, which is in line with general analysts.
Hello Group’s share price has been in a steady decline this year, losing approximately a third of its market value in the last six months. However, 15% increase over the past week gives it a market cap of over $2.6 billion.
This is the first earnings report after the company officially changed its name from Momo. The change came earlier this month in order to better encapsulate the whole portfolio and to potentially make the business more appealing to US investors.
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