Hello (MOMO) 24 Mar 222021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Fourth Quarter and Fiscal Year 2021 Hello Group, Inc. Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Mr.

Ashley Jing. ahead. go Please

were Good for operator. Quarter good everyone. IR company's evening, Fiscal available and Thank the on us morning, today you company's results The Call. joining Earnings Fourth earlier for Thank today XXXX are you, website. Conference and released Hello and Group's

financial company's Wang well On CFO They company. of Mr. of They business and company; as Li, guidance. the highlights operations call the be the the answer are and both the as the questions will CEO your follows. today Q&A available Mr. Zhang, will discuss Jonathan that session to during

future events pass except Wang. Mr. update obligation now not to and translate I achievements factors filings Further of Act I from forward-looking to begin, XXXX. for based otherwise, are materially any and involve forward-looking to management's conditions new under statements information we U.S. call or predict safe Securities uncertainties factors, of that the which Such or is market are may and current company's company's any remind forward-looking Wang. actual him. cause with known information, result on the required The current undertake or I expectations risks, would call many those the does are regarding Commission. relate in events Before to other Reform performance a and under risks, results, uncertainties included company differ you the that Private control, as in as this the of like which to all will law. Mr. will of harbor of which operating statements made company's difficult statements this may provisions beyond other and statements. and the the contain Litigation to Exchange Securities and unknown and

external for for everyone. challenges. [Foreign despite a Thank Language] call of year busy you variety us XXXX was joining a conference day, our Good today.

results. remarks Our quarter fiscal team the beginning outlining strategic our I my In will the priority for a was methodically business start our our operational key delivered begin [Foreign reviewing by year at execute our results set execution today, able to Language] the strategic solid and brief year of and XXXX, will I and financial plan. the and XXXX overview with for fourth FY performance. of priorities followed by

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in group experience The second overall revenue the year half in of our was monetization Tantan's drive strategic Momo improve level from to revenue XX% million core X.XX was For due XXX demonetization level ago and fiscal came [Foreign sequentially. to the operating and up income CNY billion CNY total Adjusted million CNY million was XXX compared with was the XX total year-over-year business with million user the X.XX for period. the the CNY CNY growth. year-over-year billion, experience Adjusted decision user year retention. was to due lower revenue CNY million, decrease and X% margin. improve with XXX decrease Tantan’s flattish user the a retention to quarter the Language] to CNY in last XX% for revenue down QX for was loss XX.X The and XX% net compared from process last For XXXX, XXXX. Tantan year quarter. at total to quarter from

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call the pass financial me Jonathan for over Zhang review. let to Now Mr.

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for you today. Thank call everyone. Hello, conference joining Thanks. our

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Thanks, Jon.

quick before reminder in questions. we the a Just take

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are and channel for making optimization. we As steady now, progress iterations various product marketing in

subsides. a see to trend in expect steady when the We MAUs upward pandemic

deliver over the crop CAGR the front, to the and [Foreign in XX% MAUs mainly of On the pandemic Language] next impact to QX, we expect VAS is due a revenue steady revenue in target to years. revenue growth be Our deferral. X for

gradually However, mainly QX, after the following should up VAS revenue factors. due pick to

out. First after pandemic one is ease the steady MAUs the recovery of

is growth conversion. is that track factor back a from per paying we with benefit stable steady Second version and should on We're QX. initiatives a paying demonetization done our in

Here, I you to on will give share some insight recent the situation. developments more

resurgence in factor the third And revenue in new MAUs February of improvement a of products. driving number led is the Although decrease value-added year, in December. last to to to remained service the the of and the thanks couple sequential paying the growth COVID first of contribution in for conversion, pretty stable users paying months much compared

Taproom in new and overseas the features other contribution and line. in to market make also much incremental steady will FlashChat, bring very For growth to incremental membership-based revenue example, likely some top paying are

last in than the trend year the Although, half total VAS the be XXXX strategy we revenue substantial revenue sequential still lower to will in our for trough after expect a due on year VAS upward to 'XX. be demonetization QX, second of

expect further streaming, current live to for decline Tantan's As it's in since its we significantly business revenue not focus, QX.

the with optimize we labor and [Foreign including IDC budget, on controls We various optimize expenses, to overall and multiplay areas, make expenses video, cost CDN. annual measures will better In Language] Tantan. cost and will measures to across take atmosphere shift for costs our to live to focus of fits terms -- according we'll our strategic which social

in this marketing will we invest start expenses brand the as to up since year, However, campaigns. Tantan's effectiveness of depending the will go planned building on

in CNY will We the year around will to control be net low. Revenue somewhere annual of the loss relatively XXX be million. the half first

from QX widen So will net level. loss

expect the second growth narrow revenue in the loss as we net half. to However,

your think I we've question, I Thomas. So hope answered

close market of interest in time, the to we open. quite getting are think I

all to conference call, And for and participating we're maybe here you call. for QX see we'll up thank you So going today's just quarter. next wrap earnings to our

does this gentlemen, today's conclude Ladies and presentation.

have disconnect, day. a wonderful may You now and