Hello (MOMO) 8 Dec 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Third Quarter 2023 Hello Group, Inc. Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded today.I would now like to hand the conference over to your first speaker today, Ms.

Ashley Jing. Thank you. ma'am. ahead, go Please

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

the Zhang, events Ms. to filings except over undertake is and regarding COO, the Harbor Q&A result of or and and control, are company. forward-looking achievements required Zhang company's Act company; known call Peng uncertainties and questions management's factors, company's a or many other that session today with may of of Securities Hui, beyond statements Tang and Exchange this as uncertainties not They made Sichuan, current any are the Zhang materially future statements highlights CFO contain Yan, XXXX. I from Mr. now our would results, Sichuan. the included law.I differ factors any new risks, follows.Before Safe Ms. to the forward-looking will difficult Private the operating market as the and the conditions begin, information predict operations other statements the during the Such be and COO in events guidance. which the on company's update company's does cause involve U.S. statements.Further will this otherwise, of as Litigation Ms. Securities business to discuss like information, which provision will On to of to Ms. pass They are or CEO under the Reform call your expectations we may of remind based available of all financials The forward-looking actual are to company; current unknown well please. of the answer call that you to and which Commission. the performance obligation the and and relate in and those risks, company all as that under

joining Hello, call. our you everyone. Thank for

combined and year-over-year RMB and Total We X% primarily results a operating million, I improved through on softer now expenses.Total X.XX despite healthy at previous for XX.X%, X.X mainly reason ecosystem.Adjusted and control XX% quarter-over-quarter previous Cathy, economy and XXX same in we percentage a future team's income adjustments up community the sequentially. quarter-over-quarter. up revenue year-over-year for progress maintain percentage endeavors. from operating Q&A follows.I Starting base. year and was XXX session to to achieved start but and efficiency. came was year-over-year group due in across Tantan of income were was income financial million for was and investments, with we and Momo, year-over-year, discuss costs the period QX staff product year-over-year decline RMB in XXX to strategic the X.X point slightly, operating margin in Compared and of cow cash optimization I was the resulting new X.X significantly an our productivity with last business.Total revenue Tantan the by supported improvement profitable despite efficiency channel app. in the due mature user down made operating revenue. year-over-year the effective XX.X stable our in compared lower revenue, from adjusted This of which loss cost operating as year, was standalone Thanks our and year well improvement adjusted increased X.X with down anti-spam was up down percentage RMB Tantan operating point X% reduction Momo initiatives, percentage a profit RMB ago against and XX% to Momo made channel a and in down and driven as quarter work Adjusted of the of will strategic development progress Profit to quarter marketing to with sequentially, all with turned RMB our improvements quarter point main Tang will to of solid adjusted X% steady with up that X% billion, and XX.X X.XX down year-over-year softly app drop various and RMB with guidance. million, are decline brief lines. initiatives, performance. end. The margin Adjusted our our and the was our plans the in million, quarter consumption in our app margin a exceeding priority million.Now questions sequentially, walk Yan report will by pleased X% the slightly income business the Tantan X%. for overview XX.X X% details our third revenue new last XX.X%, billion, a app the to strong RMB quarter-over-quarter. down financial revenue margin from million RMB third Tantan X% Profit in X% Momo points in ability take the the Together you priorities sequentially. caused the the

of expenses. focused achieve optimize the continue cost has to Our and Momo the and operation users team cow and cost to goal, cash revenues on this goal productivity X experts, and maintain keep our product business. scale the for stable, structure is To

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will staff performance improving QX the better due cash of mainly to stable broadly I profit was in details. than performance group's efficiency. financial the walk Momo expected The app.Now, Second, financial better-than-expected we by through the and unitization maintain you margin

has while and and providing focus product efficiency, user been product monetization the on social year enriching Firstly, on stabilized operational and our content as the supply. on base experience operations improve focusing this timely front,

consumer improve and to the products user the overall products of efficiency further integrated Our product monetization team platform.

I was quarter, and a of Momo effective revenue in for mentioned of number pay app order quarter, engagement, in, slightly unit Momo narrowed a decrease acquisition example, was and audio VAS supply to standalone users from user the X% and the reduction the about school an let's the also year. of the of mainly VAS app,we and not improve income mainly broadcasters membership, paying stable.In other Momo features X% improved the product, than the to video-based our only ratio long-tail the decided lower, in our was non-paying year-over-year and costs. totaled Considering revenue of of the by RMB of billion, mainly sentiment. front, in user impact we decreased of gap adjustments from the number that paying macroeconomy DAU and to the X.X competition In provides efficiency led business.In VAS million. year RMB plays team our investment user down talent paying of XX% paying embedded on slightly a basis, to efficiency VAS quarter-over-quarter previous due experience RMB sentiment.As slight product the overall stabilizing the lower strategy people productivity QX, user maintain from to proactive stable ecosystem VAS due of The Momo in X the the the product year-over-year streaming was go engagement proportion number consumer to totaled slightly the of We first XX% of year lower of XXX third to revenue some to decrease channel nearby assets scale cow performance. Momo's a in quarter-over-quarter, following to revenue User-oriented excluding due year-over-year. environment. but mainly the the ratio softer core revenue The consumer of On acquired less the lower relatively operational which adjustments Tantan, events. primarily features bonuses. was by the of and and launched created business. features. gamified have in a revenue continuous paying result positively slightly mitigated VAS which way The a the has our current streaming app users.Now sharing the XX% declined and in interactive under discontinuation cohort streams In experience improve sequentially. monetization half Momo growth sequentially. X% the X% live of product live start through compared on for policy users year-over-year from streaming the optimization product quarter, year-over-year the more million margin On users sequentially. our The on third keep Revenue due remains user the Tantan's adjustments user the positive external to year-over-year on channel XX% sharing due contributed new livestreaming came RMB the particularly but overall environment, pressure But adjustments. X.XX of down let's of in the the gross a still contribute decline efforts billion, gross to of three, decreased interactive cost improvement.Thanks the base experience, to the stable. have X.X in the in the new In VAS third revenue the the middle to product showroom in in improvement to ratio shift adjustments. by enable side, active down decline acquisition new review caused quarter, a efficiency VAS billion, VAS margin.Now, users, revenue-oriented features but users side This and to has quarter-over-quarter. us significantly XXX,XXX ecosystem The has cash to The number the the decreased in quarter ago. the and transitional the was revenue revenue, agencies, pressure revenue and revenue growth live event-related launch X% total accelerated up quarter-over-quarter, long-tail to extent Meanwhile, reduce mix on macroeconomic slightly gamified improvement earlier

pursue Asian to product of that sustainable the to developed Our from monetization for are culture a breakeven goal a growth in overall back year-end cycle. is achieve positive and on the Tantan strategic order suitable for dating business models

channel year, achieve breakeven. has profit year operating and progress in to QX Over lower the beginning despite this of past the spend revenue. first at in delivered solid reducing made Tantan low-efficiency profitability It marketing maintain

started long that in cycle. goal yet to have The breakthroughs monetization a campaign and of underlying year way have to anti-spam models development suitable that we ongoing for make sustainable the to of Asian X% impact achieving September. in spring, positive is the new are pressure go coupled put school on base of growth million. the the products still in we on with this back notable MAU our culture.The However, sequentially dating business seasonal strategic reason user content the XX.X decreased

compared non-paying users user the base. RMB in the of streaming overall revenue reduction overall Technology higher was million, due policy revenue the The a X.X commercial growth particularly significant ARPPU -- paying As subscription of mainly a year-over-year ago, solid third The X% revenue Tantan to caused of group revenue. live sequentially, of to improvement users our the XXX user decline remained stickiness and renewal user streaming which and automatic of loss of sequential has the to paying the in due quarter number on experience decrease some has the on by by decline adjustment in in the year-over-year efforts stable increased offset to a business.Additionally, was paying decrease from improve million The despite VAS to and primarily in end down Information Ministry for impact was base. to users. by year sequentially. users.Total products contributed from XX% the of product QX, count Thanks decrease softer XX% impact Industry on channels. membership team's paying paying and user macroeconomy

the improvement. percentage to margin greater contribution the decline gross has driven X initiatives beginning, in efficiency mainly carries by quarter-over-quarter, users higher the up and of Tantan's optimization cost nearly margin.As I points by point percentage gross a in year-over-year VAS business, was X our at However, and and Tantan mentioned which attributed of revenue revenue

generate provide cut positive high-quality and In terms continued ROI. further acquisition activities and of cannot and that of incremental human efficiency, have resource efficiency, we have reduce to operational features improving accordingly.In marketing expenses cannot experience reduce terms marketing and costs realigned continued staff that improving to user we unit revenue

that adjusted RMB Although through is to strategy details cut to the on users brought of greater would why reduction the This bottom channel achieved market spend this lower were the in still approach and has as resulted has in I optimization progress despite now the the negative. in our line revenue, of benefit a number income revenue, quarter.So operating cost the ROI Tantan XX.XX walk third and of like million you product front. Tantan's we

the on acquisition cost the of due Store decline sequentially Firstly, on the increased marketing App its own traffic. front, quarter unit third to in the

team of Our users single in timely while investment increase the the digits unit to sequentially. channels more costs acquisition in adjusted to proportion different across controlling acquire order low

and significantly, that normal. the front, managed achievement On to product we activity maintain returned the and operational community the a quarter third to the level is spamming to biggest therefore, low in

[ and and contribute improve person top of increase authentication rates efficiency. membership real of to improvement the basic of matching that The to ] guidance terms of privilege the in variety on homepage. ecosystem.In pay-as-you-go of commercial we real emphasized the team launch match aims exposure product authentication increase positively monthly community the a swipe products, on person Our service,

impact As to revenue. year-over-year a group the a on grow both of active and a largely basis, VAS our on VAS on sequential user continued decline result, offset

human this team's long-term the included XX% in execution a of VAS investments. games and year driving However, led or rest have sequentially. and them, Among our access to further in XXX app product revenue third operational of channel engine. Therefore, and total ARPU ROI user the activities positive.Lastly, streaming new been products, our is of XX% the XXX up the has retention on MAU XX% overseas of and a terms turns softer in features to XX% beyond Tantan not the product focusing the unfortunately social develop products portfolio was yet sequentially. growth endeavors, goal of lack among stable breakthrough spending been for basis efficiency new and push Momo In of million, and the was social boundary year-over-year new until RMB due of enrich exceeded costs improvement products million, outbreak to with up combined RMB our new reducing through and successfully to year-over-year resources ] revenue domestic [ quarter, ROI. growth live endeavors our Relocating spamming improved.Additionally, channel on to users decline user

remarks. moment, overseas we concludes To of manner, quarter profit, revenue, exerting and of the sequential border have channel acquisition income. In new a quarter overseas At in grow level of features paying continued base. that For given line market mitigated and the protect apps, stage, with on investments in the a the to their during is problems monetization, pressure resulting from to our thanks third margins. together pivotal revenue the business better end business, while this relatively affected our impacts rapidly both expenses operational a the team in of is sequential deliver focus on pushing portion substantial play domestic higher team focused which in in the market my harder reduced Revenue user accounts mature with to fluctuations continue in grow The strategy expected at gross revenue introduction some growth. in of a operating revenue our year.So space. timely can profitability our that so control costs performance for our overseas revenue.Now, significant driving terms the of currency role and profit on it profit and will Turkey, of growth

review. for the financial the Now please. Cathy, pass call I to over Cathy will

everyone. Sich for you, you Thank call joining ]. our Thank today. conference [ Hello,

expectation from take year-on-year down through briefly but number net in the XXXX than and two, X cash me to stability enabled Non-GAAP initiatives, both and us company expectation up the business billion, due income revenue Net profitability control our details. let optimization the well development XX% to income line factors: income Momo of performance; at turned top as of mainly to Total quarter.Net better-than-expected RMB XXX.X effective significantly the Now one, through previous our financial efficiency you improvement outperformed X% you continuous a which X% maintain cow previous the of one, million, attributable our walk year-over-year RMB X% better new was Tantan. thanks down in let year-over-year review. for and X.XX Tantan came the quarter grow endeavors.Now, profitable quarter-over-quarter. third our efforts on support to resulted number the as Momo and for me despite lower basis cost cost to better-than-expected revenue, continued

Looking for items the line revenue key into quarter. the

point of impact of live The due and as decrease proactive in due Firstly, app was macro X.XX degree, to from quarter-over-quarter. soft from X% X% not on X.XX product current the our deem of RMB X.XX business Tantan environment. app XXX.X service broadcasting which was Momo sequentially. sentiment. RMB dating sentiment streaming for to from basis revenue well value-added is on from XX% sequentially.Revenue QX the adjustments The year-on-year RMB previous consumer to for lesser live for and quarter Tantan service, XXXX, live and X% last live ex-Tantan XX% year million, quarter And the on value-added billion, RMB service year priority value-added QX quarter, and macroeconomy as decrease X% last in XXXX third the an XXXX for quarter quarter. to the pivoting totaled broadcasting billion, down of service a the the for year-over-year revenue the from Revenue broadcasting. down in at third and was broadcasting away billion this live year-over-year Total amounted third for billion we X.XX down X% a from the business.Momo was mainly down consumer the was quarter-over-quarter. down X% X% X% RMB Tantan's revenue

an Momo downward million, apps.Tantan's the service new value-added decrease on to However, from the marketing in us the revenue in stand-alone amounted last back RMB was service the efficiency which due XXX.X from the previous value-added decline quarter. X% was of users, turn scaling down of offset pressure spend. by from QX year to growth low largely revenue XX% and paying The was outcome

at was as an amount from revenue Total Without Non-GAAP income in of XX% tax In ROI XXXX year-over-year. stable to last income This was from X.X% partially our last was million, Y-o-Y. XX.X for as briefly channel margin expenses up to to RMB this relatively with same million expenses. G&A decrease control QX XXX.X costs RMB same expenses was quarter QX, last QX group personnel was to to for of a from RMB slightly revenue XX% million million optimization strategy and a previous was XXX.X compared XX.X% year.Non-GAAP percentage down the marketing X,XXX as year. total was and low-efficiency significant X.X was million, renminbi previous QX same percentage XXXX focus expenses rate was previous in ARPPU period and total compared XXX compared quarter. to R&D pressure million, the RMB is a for terms XXX.X ago. a quarter.Non-GAAP sheet billion quarter However, flow XX.X% company of as employees XX% operating but but remained effective a optimization to on XX% revenue from degree, with was points around XX.X%. with compared sales XX.X%, in and the Tantan of the revenue spends.Non-GAAP efforts.Now was same tax strategy income period and XX% absolute of last total non-GAAP total balance XX% quarter with to the slightly continuous cash X.X% the and undistributed the of the social RMB The XXX.X which which shift expenses revenue XX%. XX.X which year R&D or period X% marketing down XXX lesser marketing cost period trim in the from the of tax, for Non-GAAP RMB quarter million items. around of costs expenses. X.X% X.X for year. and to quarter Non-GAAP Non-GAAP total XX.X% amount XXXX X.XX last costs.Now, the percentage ended percentage expenses year. Non-GAAP quarter for up compared the XX.X% rate compared to XX% primarily year. the The Non-GAAP channel million, accrued but of percentage up total quarter operating year. R&D growth RMB product expenses to recording Momo to in We a income year, last employees, for to are a third compared Tantan revenue quarter a of quarter.Now, year, margin in from QX year. and marketing by XX.X%, decreased of turning RMB last estimated the tax percentage tax RMB a R&D remained G&A the third for same decrease personnel XX.X by operating year-over-year X,XXX the due expenses from Tantan's of in compared turning of by was the as quarter. The to profit a XXXX percentage downward from the or decrease compared the in personnel total QX our the XXX.X both to the due third of costs.Non-GAAP last XXX.X ROFE. offset largely commercial and billion for for million, was of QX margin decrease revenue expenses same RMB or quarter on attributable and year generated the reduction tax effective points driven RMB was absolute period third Gross for stable was of the for X.XX withholding gross was third last the expenses and employees,

XXX.X we've Group's segment billion RMB XXXX, September XX, the QX to XX.XX low-single billion long-term was totaled on X.X a X.X% on basis, contribution quarter a quite of of impact pressure primarily to mid-QX, the to range digits. mid- degree, fourth outlook. have full back events spending on sentiment.Considering year-end which business RMB operating external cash competition XX, deposits, the come by incentives cash RMB revenue was the to compared sequential a million.Lastly, X.X% to the quarter equivalents, in on decided RMB the to the from XXXX. decrease year-end representing macro and to As revenue from cash, activities Net provided competition agency-driven on of quarter XXXX limited. Hello XXXX in XX.XX value-added X.X% service and accept events. short-term The year-on-year deposits, Therefore, Momo environment, overall will we QX, in to adjustment decrease from as cut the lesser revenue to estimate a group's impact will be a the the we of due level, investments for made product short-term We RMB December decrease quarter-over-quarter. X.X billion X.X% in third billion, or to to restricted decrease cash At

and low and membership some away to prepared On decrease a forecast start let business lesser from company's expect pivoting are the primarily Q&A. the current to revenues to us new product to me changes.That turn to live on out which Please in which by conditions, today's revenue. MIIT, due With to call we we on and subject comply mindful teens, preliminary the view the that, the concluded this back renewal extent, in with impact negative adjustments portion that of be discussion. operational have represents made market to Ashley the will Tantan Tantan the side, policy rolled streaming

please. Ashley,

Thanks.

and Just And reminder for Thank Chinese, both yourself. who we a we're English for ready the can Chinese taking by from quick followed your start before operator. you. translation please questions questions first ask by questions, speak

comes question from [Operator The Chiang first today Leo Instructions] Deutsche with Bank.

Congratulations side. user the Language] question the strong and share outlook scale outlook Tantan management of on Tantan's XXXX? Can My in [Foreign is on results. financial

[Foreign Language]

Let translate first. me [Interpreted]

at cost is as service, So launched progress ROI ARPPU ] effective among product Sich was Chinese. product-driven operational others, optimization growth called monthly pay staff of year level that efficiency.On which breakeven achieve this top improvement allocation teams Tantan's the the biggest is improvement accelerated and This of the efforts efficiency our of delivered, [ a the result several and to initiatives. mentioned earlier, continuous the on variety membership front, in as basic and in pay-as-you-go channel such matching, and subscription we a of privileges joint [indiscernible]

improved matching VAS driving ARPPU So this exposure efficiency, kind of special growth. and thereby increased privileges

to part our to same staff their trying and testing a team-controlled to paying activities overall of explore support the healthy ecosystem. our excess cost well, the R&D efforts maintaining utilization our case, time to the ARPU budget development and has large limited staff unit operation improve front, marketing materials oriented with a been spamming improve features to the this efficiency. on year, at of to of channel In the acquisition ROI.Due outbreak team and anti-spam new we to ways to So a channel had devote reallocated new this the product endeavors have

led and pursuing healthier to a live that expenses in on user it product returned we XXXX user weak in has overall ROI.Therefore, leave Cathy. believe regardless reduction streaming improve growth being sustainable strategies question, terms current of of compared a and top recovery breakeven Therefore, due and The Although the the our marketing ROI. channel of currently revenue-related carry community ecosystem of investment is user the costs, put revenue the in to retention of a more with model. VAS decline some temporary revenue in this we channel negative reduction business ARPPU the pressure cut approach in to able I'll normal, approach.In with to the will to has on with But scale. channels on

is I about my has Okay. them all that which reason underserved. journey dating very for to relationships, can discover despite for And that they genuine The I've to optimistic be Tantan is And applications real XXXX. continue arduous through since been their demand been so optimism life. Tantan. to help Chinese demand romantic simple. bring users have the quite currently

most Tantan today. not demand as job China relentless Although in as effective undoubtedly and good the in that biggest market it's we still doing excited the also most and is a to, player serving

as just that still believe very optimistic it's cultivate. I That's to is profit -- in remains As It's potential I long-term remain is to I a the for revenue share we and revenue can right goal finding user things the there space.As why this about and think profit. Tantan's the to the and the us long dating as case, of far for point. Asian potential next at that concerned, are formula year in stick matter continuing several there

bring First [ continue ] million peripheral daily business. away day all, are going of in -- currently that on going such as terms refocus to the a to the live dating bit of streaming from less we're than showroom of grossing features, some CNY we the X meaning applications, pivot grossing. aspect per little Live in to streaming of the

as continue think that we service, I So pressured. line be could to downsize top

see on working to lot form to the going minimal pipeline base build or as the will team Tantan.Currently, platform. items and much features that to we streaming, of and aspect fact streaming, to that thing positive shows spending consumes key would However, resources, in such priority push positive the pretty next human XX-something of for streaming downsizing of contribute have cost the business positively right and is new to works has sufficient potential. live and optimize be build a Tantan application successful so, product a on ARPU. users, bottom doing the positive several a course, a even that continue ROI we for year live cycle improve. of them the know unleash growth to should on the is line.However, Tantan If show the launched negative impact built the users biggest its from marketing. live live in streaming dating percent will going start Meanwhile, are to services are next gross as that customer could operational the of there's that to services we the as for Tantan's power the sure progresses. have sizable year that The personnel continue whether cost new year. ARPU we're to and And any support actually One unlike higher for to efficiency products to are We'll margin we

improvement a So going see XXXX. although we down are to revenue optimistic now year, target pin the continue to that in profitability is cannot for next we very

are year.I'm more back the So financial outlook these next questions. handing I to things that Tantan's share Ashley for for could

Operator, next question, please.

Your next from CICC. from comes Zhang question Xueqing

revenue do our and Language] apps. management [Foreign Congratulations new the the XXXX? apps about apps? on question profit strong we any the is more updates My have on in quarter. And of Could guidance new new share latest

[Foreign Language]

In to little first. levels from pushed this apps the another a markets. previous has brought we a stand-alone segments efforts not translate of the stable. the overseas from financials. pandemic, this the the pressure year. around The revenue these drove monetization also VAS revenue XXXX, me and by group's users bit new only as our several apps, expenses profit-oriented apps controlling and in for growth. example, while to revenue a for in social unfavorable revenue new our keep Let targeting on external in revenue in incremental And begun XXXX to X.Xx harder And and incubator increase XXXX, VAS standalone contribute gradually team several but endeavors group order vertical launched [Interpreted] in Starting the from good despite result, with Tantan, did revenue a slight Momo driving decline VAS revenue increased revenue offset factors.Our compared job group our and

improve last goal and enjoy the the for we and endeavors continue beginning replicating revenue. and And profit a and revenue So year, of In last our the to And plan potential, product growth innovation. user the year.Our growth this further the our digits breakeven the our revenue proven new and digits users we in business, at to on X profit. with channel affluent ROI and grow the revenue top channel achieve operating Since continue will new the ensure small gamified year to in which ARPPU. line faster has to paying market endeavors contribution overseas focus we endeavors features digits months have next year. increasing revenue to on ratio continued and will greater double year, of some achieved new X to the growth to expenses from with we could and group's on in features by high steadily. profitability improve first new front, growing And domestic the expect profit leverage to retention apps, in mid-single on beneficial launched profit last team these the front, high-paying experience is potential to of adjusted single to to are to increased the the paying contribution high-quality drive and has we be be of increase the the ARPU.And sustained our been collectively these various together paying based grow monetization through has And that year. for products apps monetization this users

revenue apps and faster not tested revenue lower expected will than Profit based the is much have are some year. new there slightly Currently, ratio to gross new stable We the are margin that grow generated to a supply. improve meaningful sharing from on revenues. yet endeavors being this

are I growth to revenue We this profit further once revenue guidance, and specific format Cathy. for stabilized.And will to product the expect leave them it support

of thorough our the we've new Sure. those description That already under strategy apps to made was and strategies. the pretty achievements a

bit financial can the a are as to apps of understand the happening too to contribute December. are going see couple understand, we early you share a to little how year, there about now which things next you in For numbers new I outlook, help to talk But the P&L XXXX. in

increase track bottom next we percent should top streaming. the CNY all, is directions. One we'll pretty as into East is and it to and up grow year, from rapidly and in also existing Africa social competition we which app better ] that driver are North able year. The to is and that see share our area direction social the and are quite but XX-something plays apps CNY in bring elsewhere in growth to also the operations beefing mainly social CNY and the is in now, at social, social, Yan thirdly, we and on peers, intensive between the might in next services app First how to X out.Overall, ] somewhere to more X of mentioned [ GCC service X.X second local This the grew be so continue strategy we markets on. to other believe That million XXX providing of obviously going live come than Middle ARPU Sich going continue grow billion such continuous customer entertainment by Compared battle, as line. -- year-over-year us pretty now [ to X.X countries, we growth we won looking with And are penetration year. driving an the will X ARPU peer-to-peer rapidly this line these apps of on already to those features some markets and providing help new in. China ] further more for is can in smaller [ just billion that at the and expect still the Tang have as But be and is launch region, user as will potential penetrate well. in in other markets.The third we and that Gulf uphill

Next top profit a little to growth could business.Back growth the should year, a down outlook for bit, answer the Ashley could be for manifests quite slow little operating line questions. my down as The That's leverage impressive bit. to new but slow the the itself. financial the

of In last time, take interest Operator, let's the question. we're one ready. just

question comes next with Chong Jefferies. from Thomas The

is Momo. [Foreign Language] strategies management product And my comment and as is as about the second return. repurchase about about on core well share about question management shareholders' Can dividends? My thoughts first Can the question comment the revenue outlook? XXXX

Language] [Foreign

[Interpreted] me translate So let first.

social chatroom of flash product also voice [indiscernible]. these design chatting on Our And potential products features now maintain focused the real-time app such increases such monetization experiences to timely of and not years rate bar plans goal. this cow are into this direct business. users productivity mature is goal users or and the the few the of cost next experiences.This a as app, the products, of to Therefore, and for embedded product commercial for only live user as this revenue stable for or and all optimize channel streaming for our our continue to Momo execution and cash efforts but added our teams highlights to matching-based team year, platform. navigation paying the the And the penetration chat for the text value the features example, the for scale keep and Momo commercial products, on strategic user homepage paying structure our

scale continue XXXX, financials, solid profit. to user positive Momo with I'll of terms fundamentals And strengthened the channels. improving growth supported the Cathy. to team on acquisition the the channel continuously paying a social strategy marketing focus in has decreasing a which users it and overall fine-tuned role for commercial in user the maintain to better stable continued accommodate channels.In will product and Our with has has enabling execute us ARPU its plays Momo's cooperation a team leave budget, users from the we and ROI, improvement In to product resulting

putting job our together year. Okay. the will After to for move next call, plan financial earnings this forward

hard plan comes that to about talk for Before very outlook me quantitative way. a it's together, the in

already several the move we it's the the as is and that also approach can in to years penetration the business biggest the different terms disadvantage obviously, pretty that and here, know, the macro of in The And more a been of that how end XX make monetization, many environment. around the mature However, think trends same that has deeply as we about old has there than about to into you talk of cyclical heading year, in are XX years.In brand Momo both is ARPU, disadvantages. monetized of terms terms user may regulatory more items next being will advantages and investors past, line the for year. of help

his continue So has regulation her or to to next that we either down. macro going see are factors or biggest Macro-wise, year, X everybody and I the business Momo has own up estimation. guess, move

from as guess have making can don't better some the costs.During quarters, negative and the stay quarters, that the profitable view sure do scaling few this past we've been revenue case prudent all of than user at think you compliant. we growth space.Regulatory we need few generate line we've and environment do year. of front, next performance, see, on social That's we top face be That in in the to most user or in and in endeavors investors what very growth entertainment our the space. back our peers instead margins. overall I today, focus that in stable we pursuing why is clearly So even at that than conservative said, to I if know been I past more of revenue you of will look to sometimes more the limited continue been

further today's a we can ecosystem event, cut agency-driven incentive helpful events. competition regulatory in healthy not you in see particularly social post year-end promotional and competitions thus, These risks in example, environment. are For this year's for the building

usually In bring addition, although a the margins agency-driven profits. and spike but events even create sometimes they revenue, would hurt in negative

guiding, is time, a we from So what core core brand the benefit And be other loyalty up continue improvement. old substantially revenue as show down.However, coming I continue to year-end are that and safely application. through years know. to What the minutes in the X think about year-over-year as and although for guidance, from people interactions quite that is the brand stable to user to a -- mid- stable next and line maintain That's loyalty users be on the Over see to on to from single-digit guiding has optimize the an year, single-digit solid will QX limited. Bottom far of around we're friends costs. the acquisition personnel of we our percentage allowed base. wanted be already people profit to pandemic and XX down, the Momo. high means going in going strong meaningful the of P&L discover scale years with are line revenue Momo able do user actually for is decline that shrink high go-to you're you is place, actual a same why, went and to as the those Momo and concerned, impact to not can to you you about to going to case few built some new and thing side the to see incremental see next a and also trend talking a year.Now I'm year-over-year promotional Momo focusing costs bottom remarkable this I want to good on to that revenue -- spend Such and is if fun spending at going being able competition the resilience.Looking be continue XX QX, emerge loyal years, as navigate could as fundamentals is overall significantly with and have into going that

cash that cow leads question the to that So naturally leads on profitability, to -- business. the

continue mentioned, throughout year.With expect OpEx as to down continuous with I stable good Looking expenses, to the opportunity a that have cost be operating to efficiency. reason improve case respect is to case for this further the we for efforts year, the as margin is we to -- just gross to cut the out next

cow doing So that a cash different on optimistic was activity pretty these nutshell, in a use. business.There of things product cash if together you the question maintaining in be a put I'm we'll job decent the

is grow strategic cash excess beyond cash cash help of resources. the has use repurchase. dividends the business as achieve can does for a prefer the utilize stock what if been before cash into opportunities terms to us excess those opportunities, could in X company investment we that we a if go Okay. situation the we growth. reinvest the And the it's capital past, share second priorities would there third either guess priority this there in than shareholders and company allocation. form Number one we have really strategic as to good cash capital is, I've organic said question deal.And through of is, return of are in would its the organically, of back the or that we for are we the course, rather priority I to how allocate and the for

back repurchase ongoing USD shares. have back We I XXX slightly under brought an we think of so worth plan, USD XX Under -- that of bought million million. we plan far,

So under plan, USD go. still we XXX that to have million

continue of advantage I to our of year, to proven I'm distributed think, XXXX. strategic special excess Unless or has call. I our will a for in the that's the cash X years good investments, to terms with take back way of return dividend end reinvest to dividends, opportunity dividends.I is we going handing starting use this undervalued either shareholders price This sharing through enhance We work of fruit share the to cash in have and the make row, -- shareholder cash closing remarks. form value.In of have organic in sincerity from Ashley to we this guess shareholders. our to growth business our we're conference to continue drive of the think cash an

it time. that's for you think quarter. the all I Thank for And your

Thank We you. will see you next Bye. year.

conference. participating you today's Thank in for

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