Hello (MOMO) 9 Dec 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2024 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, operator. evening, good and morning everyone. Good joining Thank third for Group's today XXXX you earnings for quarter conference Hello us call. The company's the on and are results were released company's earlier IR today available website.

to the are company; as the Ms. well your and and that discuss Peng answer the financials Yan, call the COO of and Mr. guidance. CFO as all They the Zhang Sichuan, follows. the the today CEO On be during They highlights of Q&A company. company; Hui, company's Ms. of operations available Tang questions will will business session

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

overview Thank XXXX. I on of to for an you joining on Starting Thank our business QX now now everyone. you. will performance. call. update I -- would with Hello, our our give financial you like an

For guidance, total in revenue operating down RMB percentage RMB XXX group year ago. of was representing year-over-year ago X.XX margin points of to QX. was XX% our billion, the down smaller 'XX, year XX%, down close year-over-year, end a X.X XX% than income a QX from decrease from Adjusted the a high million, with

the Looking decrease resulting Momo decrease and at The was and apps, app RMB the billion, was in new the million, decline the in macro business. driven from offset revenue XX% due amid down year-over-year the XX% to weak product down growth X.X proactive XX% was the by due accelerated revenue standalone down RMB income was of our and The partially revenue adjustments the mobile in year-over-year. Momo declines spending standalone overseas economy. app, operating margin year-over-year mainly the year-over-year, margin a XXX app. of to XX.X%, with X.XX apps XX% by percentage points total year-over-year new mainly softness Adjusted our

with the RMB paying representing was For X.X%, margin RMB operating year-over-year. income compared from users. ago, XX.XX RMB number year X.X million, total was XX% Adjusted decreased percentage points a XX.XX to revenue year-over-year due Tantan, QX of million down down million the XXX of

strategic you give each our line. will update on priorities executing for an business I Now

core goal that with an model business build improving this Our maintain year of a is the the business cash goal this continue productivity profitable dating growth. for cow social app to and healthy experience main Momo is to Tantan's the drives ecosystem. efficient

execution. walk brand push of the As is details goal to you engine. I new further, business our for build and beyond the long-term portfolio Momo the boundary growth Tantan our now our and enrich a endeavors, through will

and First, on the product in operations Momo app QX.

in We introduced our optimizing volume legacy facilitate of chat experiences chat Our features text-based effective increasing and user voice-based experience on interactions. focused reading interactions. the the user in-depth product one-on-one to team user multiple

reward to user use ] for [ and we exciting social female women's female users, mini engagement increase favorite and games mechanism As stickiness.

] We increasing also improve rate greeting interactive for the provide messages an of icebreaking the users. experience response [ thereby male reading tool users, AI-assisted and to for quality female

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to However, to as is potential transitional the the limited. cost getting channels decline, further optimize continue

exploring we drive started KOLs. traffic new So from ways to

played short Momo X. and user of influencers increased numbers and released we significantly new with in to videos example, In investments and favorability by For increased our in the increasing app QX, the media. video exposure quarter related channels brand working KOL from

Momo's decrease This is deepening female refine collaboration female further user marketing KOL strengthening and selection acquisition users, improve features to product helped to and Continuous favored due quarter app In users. with to user ROI working been X X, Therefore, factors. we've over ad advantage to tailored given users, acquisition cost optimization collaborated continued KOLs, X.X the team and paying KOLs, we increase of our of with also hub our including influencers, women innovating has our plan strategy. continue refining further conversion teams operation by branding. To the channels. million the XXX,XXX. While materials of and strategies. emphasize of proportion our clear optimizing a with mainly us materials Momo This traditional had onboarding sequential the to enhancing and accumulation a channel ad

the VAS competition activities, users. paying resulting events decrease adjustment in and in operational the a ecosystem reduced number of First,

profitability paying negative Second, improve long-tail reduced decreasing growth, profitable to users. small ticket with we further of ROI, pursue and the users acquisition

events product was billion, Tantan, VAS down the sharing, XXX business. Revenue from from X.XX in X% and revenue million, cow operational decline X% X.XX combined up among up mitigate cow weak due due on sequentially. was decline a pressure, X% was competition ratio, large-scale To down year-over-year amid top adjustments revenue-oriented economy. risk, year-over-year app healthy VAS of the and live softness mitigate focused RMB social revenue cohort regulatory reduce team revenue events users down in on XX% a app spending the The of Momo level XX% revenue to sequentially. streaming XX% and year-over-year live streaming mainly Momo's our to Revenue in macro impact The proactive the billion, to maintain was slight XX% app was to our year-over-year of but cash productivity RMB to strategy with year-over-year mainly Momo's flat proactively value-added and and revenue business. Now our the users. Meanwhile, ecosystem Momo improve the RMB to million, innovative introducing in team in role spending live algorithms The the softness RMB for acquired sequentially. sharing the in resulting Nearby showroom, the resulted paying streaming sales and any not and and in long-tail XXX in up year-over-year, our the which Nearby chat services, improve stepped live product do sequentially. combined standalone efforts require against Nearby Posts promotion ratio. the sequential in to new People room the mid decrease and positive the our customs profit features streaming competition in the feature People Nearby revenue a increase penetration. which that experience high-priced we product cash played increase streaming excluding macro totaled a reduction PK live of QX, features, promoted props the and economy. penetration In with steady from weak stabilizing features,

organized that sentiment. into boost to and On the operational tie activities front, holidays we festival operational consumer

of new addition this continued data voice-based billiards mini the play as of matching new than that chat retention game in features, chat gamified transitional Early audio features In puzzle better to we room. shows such live is retention introducing average game and the room.

We help rate. rooms of the increase rollout full new features these expect will user chat engagement

Turning Tantan. to

acquisition trends user on trend the shown of growth user largely due a long-term on the user for branding performance. of number investment new has Since organic was First, and dependent to need acquisition Tantan, channels. and financial new the downward

investment the pressure to control aimed upgrade profitability, strategy over in cost user Tantan's put base. The has effectively retention. user to on much launched reduction the ROI-oriented explore improve the channel experience X years to dating achieve QX driven increase past solutions we effective also have Although core Tantan product and it and

However, combination X% Due our user the base MAU has factors, Tantan's stabilized. user stage upgrade not overall is September. yet million XX the above yet sequentially it retention. to decreased by in the early not and still of to have significantly impacted in

had user users, XX,XXX As paying the of down the Tantan QX, and XXX,XXX upgrades impact mainly due on to of decline of the short-term the paying conversion. end sequentially, in MAU product new

some live of lower had never impact year-over-year was business just sales Black and in overall guidance XXX due correlation decline SVIP business. we decrease sub-dividing RMB to members' Quarter streaming on to XX% the due and which slight revenue decrease experience, the Gold down year-over-year decreased the by X% decrease whereas drove experience. Meanwhile, deemphasize million, streaming. to a pressure. slightly. live ARPPU Tantan's continue the live alleviated the ARPPU, paying ARPPU paying The drove as Tantan's the increase was and in Turning of sequentially. to increased partially with revenue sequential and was membership of mainly overall our ARPPU due redesigning the in features The dating to payers total We payers, X streaming significantly revenue streaming financials. low slightly live

sequentially. XX.XX while revenue XX% terms was million, sequentially, X% business In was RMB and revenue XX% lines, million, VAS XX% RMB XXX year-over-year down down and of year-over-year streaming live

our Now product moving the on we challenges efforts Tantan's and to acquisition user and faced.

marketing First, events continuous men address activities X, exposure, controllable in Tantan's our are of front. caused brand marketing a organic inadequate promote online various and that in awareness. at and team decline to popular organized on offline traffic user cost the marketing amongst women and selected brand young the years and To acquisition quarter by

average At music plus cost. reduction KOL and and to at to experience. We effective expand to combined to For explore sequential example, the them festivals, in resource marketing advanced a interactive gaming people reach guide same and brand continued believe optimize set-up music we most we time, influence. young investment KOL significant the acquisition way community offline user influencer resulting online we the strategy, which in channel using groups accumulate is activities Tantan

with channel, reduce channels investment the In continued slight with with quarter-over-quarter. sequential costs users channel ROI new This the KOL costs from in a reduce in more acquisition helped such user unit most coupled decrease higher terms channels based total and unit Therefore, transitional a and investment slightly acquired to investments increased costs on feed of user app we as acquisition ARPU. stores. and lower with significantly costs we acquisition competitive further reduce

has ROI not and we seen channel Although turned year-over-year various improvement quarterly. have degrees of positive, fully

on of users make that initiated feel update based results upgrade X, Tantan's In product user product experience major Next, their on the a surveys, unrealistic. problems X we to and quarter operations. address are

of after the chat first to person of uncertainty about authenticity platform verification references information we our and rate. product Meanwhile, guiding offered high-quality to such providing as true profile looking and two, the on if completed such to suitable who lack choosing response to To picture to team verification the enrich proportion the users encourage sufficient address their pictures. to the swipe has their real-life identity; increase users profile increased matching. users person the extra in the First, information profile product overall real lack user and of rewards limited person as prompts verification, that real by real issue,

matching after of improve get exposure the users algorithm the some Regarding the opportunities in some easily. previously, to matching, increased experience of chat to deliberately of active the who lack high-quality response don't users we

number the did While it many increased not matches this matches, resulted approach to that chat. convert of in unfortunately

we quality our too we receive they of quarter, at concentrations features some message in matching the many or users chatting matches. At users improving letter, several deliver such outreach. algorithm improving while, to rate reduced through aimed a This level, unique matching person response directly tested after a every interactive issue which the the this to a not allows address favorite product love because in Qingshu to female once

of We quality conversations. rate. upgrades more and product role matching Product to in-depth play the improving expect encouraged this trials enhanced in response has series a positive

decrease look model, up. which The negative However, new this increase was built a paying of matching user Tantan's decline reasons in for around has business at sequential was the one users. to Tantan's picture, the on in swipe, paying pay conversion the impact original short-term,

on is business a we user positive user long-term to revenue drive sustainable that and sustain Tantan growth believe based cycle. the need achieve profitability of experience However, growth. We foundation to profit providing organic and product retention user to to improve drive growth the good long-term

driven XX% of rate by Lastly, our sequentially, in of new million in QX, of year-over-year reached total accelerated growth terms RMB apps endeavors, with the an the XX% revenue overseas and mainly XXX new business.

user from sequential year, QX, Soulchill's key our QX headquarter efficiency. by management, tech achieved team solutions. We product markets. operational Soulchill of morale. in compensation product and worked analyze Beijing past and to improvements optimized in growth strengthening with and system and optimize staff broadcasters its their key our In They revenue highest several frontline the work agency boosting local driven our feedback teams payment and visited decision-making technical the power,

drive role the we broadcasters, agencies revenue strengthened side in We paying factors and ARPPU the paying sequential product significantly strategies ratio rapid and also improvements a Together, revenue QX, of increased such by paying also in our quarter-over-quarter, design channel users. users numbers various as new improvements. optimized increased enhancements introducing virtual gameplay gifts, collaboration of and driving growth. grow ARPPU with growth. In paying for driven number users and plays positive which supply new

has the Turkish the and because the much beginning live overall drove low-margin business, slightly mainly of market. relatively With the of the expansion sharing Soulchill's since upward the streaming including revenue year, faster newly overseas the gradual business, ratio trended the business, than of introduced market

partially made user acquisition and strategy, channel the our believe The the by localization both product ratio sharing optimizing good on GP financial in top-up us our we operation growth to efforts. to live MENA products localized experience, expanding leverage in growth the and to team in user progress by the bring in that the overseas features have alleviated enhancing combined in and QX, we continuously the continuous increase progress despite costs, our enabling Our improving and margin with enjoy other revenue ROI-oriented increase pressure investments. In caused and users channel and can operational fast profit team's voice-based recent Soulchill strengthening streaming. We reflected region. metrics has growth

firmly more remarks. overseas the commit to concludes in business my will We future. This

call the financial pass for Cathy, please? me review. let Cathy Now the to

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

quarter through down RMB briefly XX% from let the was X.X% and XXXX the company me up down X.XX the to decrease Now slight XX% take but was third review. RMB income net revenue Total year-on-year, last Non-GAAP billion, financial million, year-on-year of you a quarter-on-quarter. for the XX% quarter. attributable XXX.X

the QX. into items for revenue key Looking

due live was a business attributable year-over-year for and live XXXX revenue third on broadcasting. XX% broadcasting Total billion, decrease sequential Firstly, and quarter-over-quarter. X.XX whereas from The decrease the The X% year-over-year lesser in streaming, extent, in core relatively to to Tantan Momo business, decline the live decline Momo to the RMB remained live quarter down of largely a Tantan. streaming stable. the in decrease was was

In from the revenue weak last down a RMB X.XX our terms sentiment decrease X% due the third of quarter the from year-over-year competition Tantan's XX% scale year-over-year live due revenue Tantan. the totaled RMB proactive and was the product quarter. decline last segments, adjustments and service. Revenue Momo dating-centric down revenue-oriented XXXX and X.XX and was both deemphasize spending XX% from to RMB year, to billion less Momo operational year-over-year and amid live for XX% quarter-over-quarter. from strategic to services billion, down The The back macro soft The value-added broadcasting was economy. X% year-over-year up due of quarter, broadcasting million, events to was flat QX decrease decision but XX.X to the in our sequentially. decrease to for amounted

a third app manage X% pressure. revenue of growth The VAS down risks service the the from standalone the basis regulatory last endeavors. billion the continued segment to product up basis, RMB to and However, agency-dominated on overseas Revenue amounted was our X% XX% improvement sequentially. in due new Momo short-term paying X% from base in of new due of the ex-Tantan decline as value-added RMB of was XXX.X the down as driven by revenue on X.XX play. paying sequential offset sequentially the the continued VAS partially our X% adjustment sentiment from decreased by due in on P&L, consolidated on quarter downward an which was weak the spending of Revenue million, year-over-year apps turn quarter-over-quarter to growth to to QX proactive to user growth apps, gamified QX driven in and decrease but in due The quarter. Momo which impact users, deemphasize a a was revenue the adjustments is to VAS Tantan's both user well interface revenue and the year, conversion. from year year-over-year XXXX, last XX% down to product previous grow business. upgrade new decline and from standalone of

revenue expenses for costs RMB percentage G&A same down percentage flat OpEx previous QX for revenue points points representing RMB from XX% higher last X compared a of XX.X%, and a to ago year-over-year down was to due the further XXX overseas was year bearing cost for to to ended expenses XXX.X was Non-GAAP better operating absolute and percentage total several or XX% billion for in the the XXX year The QX RMB third turning year. for the XXXX XX.X percentage of of higher total a of cow R&D decrease -- We due X.XX up personnel Momo, to RMB quarter last and shifts total total of XX% employees becoming for fees million ago. The percentage third down to percentage business. Non-GAAP XX.X total Non-GAAP The a the RMB Non-GAAP compared #X, year of same X.X year. X% the to higher XXXX lesser XXXX, from agencies amount. RMB from other X% the to payout the of revenue. channel degree, total, due billion continuous as was renminbi or X,XXX from quarter from of from operating Now in of channel RMB the as view quarter period in expenses revenue the to and Non-GAAP trend. last costs. infrastructure from expenses #X, expenses quarter. X,XXX XXX.X was quarter while as decrease deleverage, was infrastructure percentage ago million optimization compared increase million group the period was and employees, X% decreased costs employees, for margin and a previous compared period quarter #X, sales higher Non-GAAP year with million QX margin million, than overseas same third Non-GAAP a downward last revenue XX% which was Non-GAAP period. XXX.X year-over-year. XX%, to an gross X% of with mix of quarter. of and compared are revenues for downward the Tantan last a compared year, the was decrease the the revenues. third ratio, XX% the was R&D expenses. was period. percentage million this cash million which income quarter X% payout or a costs points the X QX from a a different from XXX.X of period from for from was a last with total trend payout X.XX the of XXXX business XXX.X personnel incentivize bigger marketing business for personnel X% quarter the of for R&D percentage old factors. factors; Non-GAAP ratio, revenue was the compared of as of which same of pressure year. RMB a where as towards decrease to a XX% year-on-year XX%, same take revenue year. where those from a are higher both relatively X.X roughly business revenues and from much domestic and same represent Sales payment higher -- marketing percentage total RMB revenue Tantan period year total fixed for

around withholding RMB XX.X tax an with of undistributed effective Now in million withholding X% XX%. briefly effective for the million, income the is tax Total In which quarter our income tax accrued XX.X RMB on company Without XX% profit WFOE. third the non-GAAP expense of generated tax, our quarter. expenses. tax of the by tax rate QX, estimated was rate income was

sheet balance flow to items. turning cash Now and

XX, compared equivalents, deposits, operating September of activities billion cash third quarter cash short-term XX.XX totaled and RMB XXXX, Hello December to cash, short-term investments As million. in long-term was RMB cash as the Net by XXX.X XXXX of restricted XX, billion Group's XXXX. deposits, XX.XX provided RMB

outlook. billion decrease business a XX.X% on to our of from QX quarter basis, billion, representing to We the year-on-year X.X% range Momo we a for of quarter-over-quarter. level, Lastly, expect or estimated decrease X.XX XX.X% 'XX, At X.XX RMB -- QX to revenue single-digits. fourth in segment for mid-to-low on RMB a X.X% come decrease to to sequential revenue

revenue the Tantan and decrease our start forecast back conditions, low-single-digits. subject on changes. That side, today's are view me Q&A. to portion expect concluded Ashley let the mindful which preliminary be the Please that operational to company's of With represents to that, and turn the On market call we discussion. to prepared this current

please? Ashley,

Thank you.

reminder your quick a we questions. take Just before

to Chinese and so yourself. translation by of first speak the For ask we X by take questions limit in Chinese, number questions your And English more those to followed please who people. can can also X please,

Okay.

questions. operator, you. for So ready we're Thank

[Operator first question Instructions] Your Research. comes BOCI Chen Raphael from from

fourth and growth translate myself. main figures quarter overseas of revenue momentum share the we business. and for overseas management growth profit Congrats XXXX? the could will driving quarter? growth strong business Also, the business the the third and Could latest overseas outlook for the on have in the the [Interpreted] I contributors

overseas third thanks time the the personnel address we quarter, XXXX, beginning of areas growth in optimization at in half to had cross-border to slower first Revenue than the sequential local due in accelerated improvement the primarily to for management. our was more year need we the of of many required of thought. which than growth the [Interpreted] The business anticipated operations,

the efficiency of got result, social a team improved. significantly the As operational

in the culture preferences users strength with staff of operations local side. empowering of have to strengthen local the social strategy product cooperation leveraging needs local the will help with team, us supply better been we By And our unique and regions rapid also we diverse. more the offices talent continue and business, management, more continuous in our localization. markets and becoming of Therefore, will optimize robust in are growth through overseas and drive focus recruit to our local markets, backgrounds. operational Our address cross-border growth of from able on establish different revenue profit key

expansion the the overseas breakeven And revenue third has field year. revenue continue next of and group's Eastern allocation we overseas rapidly was RMB the quarter, financial reached The we where and our issues, and up future, which we in growth and prioritized Meanwhile, This play in and into of to localized capabilities, Soulchill revenue we to year. distinct human years. year. And business, revenue by offset its with clear. next XX% for our profit possibly as that profit the the overseas and profit I product year-on-year. with close X an advantages. have our to a be leave compared Momo And which So and our strengthen believe partially in macroeconomic potential in will total operation the That's overseas XX% have uncertainties million the relatively business rapid expect Cathy, We app. We of growth we Tantan. of incremental faced to more Soulchill revenue expect to revenue domestic scale such and the XXX new now enter period in reflected our the revenue the next are rapid grow the business of our and to operation social Middle in apps outlook, regulatory that the from as third recent resources other contributing believe financial why clearly role business is will quarter operational than many apps to true increasingly Soulchill will business driving of XX%. And our particularly significant decline trajectory the in -- that please. surpassed generated as

grow of In to our year-over-year assuming growth the XX%. by Over XXXX to XX%-plus close would close out to Okay. Soulchill a outlook. probably we are year-over-year. with rate guidance, That QX

the app slow down obviously, bit. little bigger, As gets growth a the could rate

However, X contributing been up rapidly other these in the our a XXXX. North apps Middle area and East ramping X bearing in top-line do recently. to in to and both way -- to start expect bottom-line bottom-line apps Africa the the social We fruits entertainment meaningful have contributing

these overseas to accelerate could rate With apps, hopefully fast will year. pretty overseas and believe grow revenues growth next continue X we its

going bottom-line. The question. other well. I'm to grow is answers profitable we thing of business, the mentioning top-line, these are for are as improve Hopefully, X continue we your at overseas always We That you back worth just that growth our to if Ashley means the want for expense what continue manage look handing way to bottom-line next year, pursuing as question. apps at to performance not top-line we apps overseas call next growth. that

Your Wang from Jenny from next question UBS. comes

is the translate myself. My business. our results. for let regarding question cow the cash good on [Interpreted] So outlook me Congrats

adjustment whether year has view should sustainability last recovery of quarter business end year. undergoing year-over-year? Momo forward? a third might how cow both product of these And So you for prospect going and cash we see been continue the the please quarter-on-quarter in Could and since going adjustments when the forward growth share a will we

[Interpreted] Okay.

and positive experiences to played revenue for revenue-oriented impacted stable And our focus healthier a a business. although role reducing video-based concentration live audio VAS and reducing our in and more operational So and on cow adjustments implemented it this last a year, streaming events. competition has with creating social we cash ecosystem financial performance,

remain we in revenue the competition So operational deemphasizing events. high and further to this quarter strategy fourth committed

incremental live some from optimization means audio For still gamified room cases further there very limited year-end previous years. experiences, streaming the the agency of VAS play. dominant is in be And event compared we will use revenue believe to the the for that business, this competition the and video-based and

our fine-tune operation in to continue will we fourth So quarter. the

offset Sich monetization experiences. and competition [ increased earlier, long-tail decline of revenue events, in in paying services in to ] from value-added the order we mid have live streaming to mentioned As the users

and we more for revenue. the paying features in steady out and rolled increasing organic growth penetration driving content this interactive suitable while cohort of ratio, So kind users of and

the in us current a the accommodate enhance of foundation satisfied to for overall is So business their operational platform's we productivity economy to with are cow users of to our solid focus cash and environment content our Momo a has scale. After revenue the and long-tail to macro year. I about and next the regulatory maintain laid year expand adjustments, of this ability ecosystem primary quite the app. believe mid

specific for Cathy, please. will I outlook, As the financial that to leave

Okay.

Before the about view from year perhaps theme of current for agency-driven and of macro the the managing order economic then and in next we've quickly XXXX the the last a biggest ecosystem to how been cow the towards toward review the way events of was healthiness our point regulatory me we've year. The the I managing the -- environment, of the productivity an in view. point improve both promotional/stimulating cash to we deemphasize from first directions cash business been of way move let XXXX, talk throughout cow

coming As steps the to been enable changes, such gradually we revenue has operational took different down.

cow put the been all was So revenue plan one-off. taking tightly. At to beginning impact XXXX, the the make the QX measures of and also productivity the spending more adjustments maintain cash the in to to into control order have of original we business,

profit. a deeper thus it we good turned into as over-delivered we did the job move out control year, in terms pretty cost in of However, and that

cow, back about of financial take the performance a early be the trend-wise cash first business are promotional to scale in to well, throughout year of next this at the several terms of least the to we result, measures all, And there -- to on second out about you points as cash we decided trend think onwards. With in talk XXXX XXXX, finalize before downward bonus-driven previous additional quantitative turn, next put in planning in the very years, adjustment saw As the top-line year. quarters. to for next in to I won't events to share that in few opportunity able the to help looking half. to year the coming mind, But from continuing QX continue cow team

the as -- said, pretty the for year. all, significant adjustments do First now next operational we front. needed ecosystem at we And expense after top-line, of feel Yan we feel on additional year adjustments see pretty good a Tang not currently, of of therefore,

XXXX which QX how you would If what that top-line to next the And is into XXXX, will cause back. the be into not Momo QX play really Since do there year, think about in performance efforts year, would see next substantially next into that sequential we deliberate a performance is QX, -- on top-line depend year, bounce translates sentiment QX then the seasonality, bounce consumer platform. back seasonal demonetize decline. will spending expect any macroeconomic still going how Momo translates that significant operational to factor our on

concerns guidance, it in business the of cash continue because down come see year-over-year next way So the both to throw midpoint together, segment, like if a still kind is and Momo downwards cow revenue that QX that in Momo the reflects terms our likely on in apps, In headwinds. low-teens whole cash the it's year-over-year a we that put XXXX, to which regulatory comparison, XXXX, both the the likely that all analysis demonetization the segment half decline range. will revenue That see volunteer if what efforts will second by include the of of macro you you and year looks of these cow revenue in been quite and overseas decline has trending can basis.

bit For in the place. pretty Momo safe XXXX, will Yan And Tang are overseas, side, the push to up we now a said growth the it a that as seems on for because little earlier, top-line continue the regulatory segment. overseas

how absolute significant year. may the substantial decrease out next decrease big But we assumption. see macro XXXX. dollar of play assuming is quo We'll Y-o-Y macro course, quo significantly continues, continue narrow ratio, things saw from a But even face narrow going assuming in Assuming cash to still kind Y-o-Y in the of a cow down should decrease in top-line XXXX. status of status what in course, is amount, a pretty

impact see XXXX earnings we we share specific the more to that are have we as of control QX year. beginning front on we bottom-line. going to mitigate what planning to So color shall finish on can to our have at do our I On have financial next cost the early point, when call

that's cow. basically So productivity of the the color can that the I on cash give

to question. next Now Ashley for back

Jefferies. Your question from next from Thomas comes Chong

about Tantan. question [Interpreted] My is

various about, such retention be updates yet And also solutions remains soft. user seeing we And management also, the impact that does QX it about to in and the question there ideas revenue how remarks our offerings, positive? now is prepared the is My long to think on as timeline? but XXXX side. mentioned are are and take highlighted management the scale product How should Tantan and about product seen we which gets Just user more upgrade outlook? or

[Interpreted] Okay.

you give your question. more me details regarding Let

the And Tantan's and For model profitable improve currently, that is to the business goal and to business experience X needs experience other model. build product issues. is Tantan drives quality continue dating growth. to is One address an efficient

in terms a demand feel therefore, many users. after a achieve real traffic, So cycle matching to meet the issue the chat quite high is dating, low And costs insufficient and of some cannot the product, strong profitable interaction to of of have users low. unrealistic is unit needs branding makes really second acquisition our form positive business but too is organic And the although growth. which Tantan experience for and users

new and we believe must reasonable So product a to then we business model. first sustainable level the develop a that experience improve

the matches' on response next and for One their past identity uncertainty of to about to focus have X of or authenticity focused continue user quarters addressing the chat the and post X the quarter X, matching. is the So will is experience issues. over users' other we and lack

them paying the distinct experience. to And And proportion advantage the encouraged to moving these of user profile their extra offered process. And users high-quality in a over who completed real increase process. terms to their product increased such real of rate, clear proper profiles and verification in forward, our the And to person efforts profile those rewards the over verification enrich had pictures. verification as non-paying previously, overall significantly users non-verified users and team guide swipes experience give information more users choosing encourage our goal person for Our the platform. verified effectively to we the a style is users advantage users users to complete on our

user plan the in rates the still to have round And that long-term. right we interaction of significant first we continue all decline the in end upgrade quarters. have feel hasn't is a We next year. Since testing X here track. expect to of identity improve While do recovery, more authenticity, drive to by the year we the to this next in some entered made current of progress Tantan thoughts. the positive we cycle need wrap-up and and of to the revenue underway terms in the for Tantan's chat users half And business yet, are fortunately, on approach

made, And to user initiatives after organic by even identity investment. user essential product authenticity, traffic. invest will Tantan's in experience increasing without more adjustments secondly, improving First, drive and stabilize to branding are basic base gradually expect we dating especially we marketing

very will significant and unmet user experience, identifying increase that features that Third, product value-added we ARPU. China's dating with continue improve while products to develop innovative needs. large explore market is

capture explore growth opportunities. this to continue will to We space

profits into enters fall positive Regarding before not the losses let bottom-line, business we we will a continuous will Tantan Tantan cycle, again. but not pursue

detailed back Cathy. financials, leave I will to for As

regards sequentially to is continue top-line to to performance, simple that answer financial the X likely With to down due reasons. trend is the

still as yet. trending self-sustaining mentioned cycle down. User Tang reached now, is, just one positive first Tantan business Yan not The has a number is

they profits, get the I is although consumer think is terms segment the to pressure to we therefore, is much is room regards up experience still do profits. second at reason monetization right. that is pull Tantan this the team, million the too to XX plus/minus focus in on track when dating to to most ARPU, not experience RMB won't so want point year, And the The get of put achieve priority. With crucial in let there the on way this

the bottom-line has also top-line down pressure. However, the slightly throughout trending year been due the to

slide reach our for and for on Tantan won't say So before expenses planning one steps on down need would loss. to performance, to back do reach cost priorities that we the financial the take before front -- top-line so of cut Tantan to we That's tipping I key some point we that XXXX. the

planning details to on to more for I'm going our have call on Ashley. when next finish that, earnings we for think XXXX. Back I you

one it last question the call In take we the interest of let's time, before please? Operator, day.

from comes question final from CICC. Zhang Your Xueqing

about is shareholder question [Interpreted] My returns.

Firstly, of consecutive has company regarding dividends. of a special the track dividends, X record years

buyback, what's year-to-date. dividend So Additionally, regarding million bought the nearly your for plan back has USD this company share year? XXX

So of current the program XXXX the repurchase, of that USD exhausted XX expect than And at XXXX. program we quarter. expire will by middle be will pace the in current early buyback which this has million less

plan further So what's buybacks? share your for

question. I'll take that Okay.

during than worth the shares million more of cash than think dividends. paid out, pointed $XXX $XXX XX around and correctly you As past million bought more Momo I months, we've back in

as other. sometimes really meaning look enhance the cash approaches, better I shareholder me, one works value. at to buyback For both ways But dividend than and

at our give I significant in comparison stock at buyback yet should would sheet I cash. we balance in in QX number $X undervaluation, we net to do you be -- And our we below priority cash And a at with dividends. profit. around trading of share math, is such are this a looking that's per make take number share say, bigger $X.X point. somewhere growing you If continue view quick will and believe a per as

a buy of which there number could However, back is in factors, biggest the out the to is the we of how much liquidity limited market.

million from $XX has at you running $XX quarter. look of million our If been the couple to quarter per quarters, around at per repurchase past

we that liquidity limited of terms hard it's means it's so buy continue shareholders, on as share rate may of we return run kind to the that back. to have can continue to our to case, way we will dividend we buyback. the the cash to cash an With excess cash in of be quite have, top If we additional how that consider continue much -- to likely we prosperity. certainly That exceed

cap. But be will used the I continue -- Directors think by that authorized up repurchase is in to at rate, have you -- we're sure Board Directors. terms the probably that that we'll sense value. current make of program up, question not enhancing If use run decisions other the of The I'm shareholder the makes limited the to of Board will current is already we'll the

call. So that's say point. Maybe can conclude I back the what to Ashley to this at

everyone participating be next the to we I Thank you in it see year. Well, And Okay. you. thank and think you for going end of will the call. that's

conclude conference does for today. for Thank you. you participating. That Thank our

an that You marked present disconnect. [Portions interpreter were on call.] transcript are this of spoken by live [Interpreted] may now the