Hello Group Q2 Earnings Call Highlights

Hello Group Inc. Sponsored ADR reported a decline in second-quarter earnings, with revenue falling 5% year-over-year to RMB2.49 billion. However, non-GAAP net income rebounded to RMB273.9 million from a loss the previous year. Adjusted operating margin slipped to 11.1%, down from 17.1% a year earlier. Domestic revenue dropped 17% year-over-year due to tax scrutiny affecting agencies and broadcasters and reduced spending by high-value livestreaming users.

Overseas revenue surged 52% to RMB673 million, representing 27% of total revenue, driven by new Middle East and North Africa products. Hello Group lowered its full-year revenue outlook, expecting a mid-single-digit decline and admitting its RMB3 billion overseas revenue target may be missed.