Beaten Down Chinese Online Social Networking Stock Hello Group's Q3 Earnings Reveal a Mixed Bag
Portfolio Pulse from Anusuya Lahiri
Hello Group Inc (NASDAQ:MOMO) reported a Q3 FY23 net revenue decline of 5.9% Y/Y to $417.1 million, narrowly missing consensus estimates by $0.1 million. Adjusted net income per ADS was $0.42, beating the consensus of $0.35. MAUs on Tantan and paying users for both Momo and Tantan apps declined Y/Y. Live video service and value-added service revenues decreased, while mobile marketing and games revenues increased. The company expects Q4 revenue to decrease by 9.7% - 6.6% Y/Y, with the stock down 30.9% YTD but trading higher by 8.37% premarket.
December 08, 2023 | 11:16 am
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Hello Group's Q3 earnings report showed a revenue decline but exceeded EPS expectations. The company faces a decrease in user base and paying customers, with mixed results across segments. Q4 revenue is projected to decline further, yet the stock is up premarket.
The positive premarket stock movement suggests that investors may be focusing on the earnings per share beat and overlooking the revenue decline and decrease in users. However, the year-to-date decline indicates underlying concerns that could temper the short-term impact. The projected Q4 revenue decline may also weigh on investor sentiment.
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