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Hello Group Inc. Announces Unaudited Financial Results for the First Quarter of 2024

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BEIJING, May 28, 2024 /PRNewswire/ — Hello Group Inc. (NASDAQ: MOMO) (“Hello Group” or the “Company”), a leading player in mainland China’s online social networking space, today announced its unaudited financial results for the first quarter of 2024.  

First Quarter of 2024 Highlights

Net revenues decreased by 9.2% year over year to RMB2,560.4 million (US$354.6 million*) in the first quarter of 2024.Net income attributable to Hello Group Inc. decreased to RMB5.2 million (US$0.7 million) in the first quarter of 2024, from RMB390.3 million in the same period of 2023.Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB59.9 million (US$8.3 million) in the first quarter of 2024, from RMB471.9 million in the same period of 2023, mainly due to the accrual of withholding income tax of RMB448.6 million (US$62.1 million) on historical undistributed earnings generated by our wholly-foreign owned enterprise (“WFOE”).Diluted net income per American Depositary Share (“ADS”) was RMB0.03 (US$0.00) in the first quarter of 2024, compared to RMB1.96 in the same period of 2023.Non-GAAP diluted net income per ADS (note 1) was RMB0.31 (US$0.04) in the first quarter of 2024, compared to RMB2.36 in the same period of 2023.Monthly Active Users (“MAU”) on Tantan app were 13.7 million in March 2024, compared to 19.5 million in March 2023.For the Momo app total paying users was 7.1 million for the first quarter of 2024, compared to 7.8 million for the same period last year. Tantan had 1.1 million paying users for the first quarter of 2024 compared to 1.6 million from the year ago period.

“We have made steady progress in implementing our strategic priorities for Momo, Tantan, and our new endeavors since the beginning of the year,” commented Yan Tang, Chairman and CEO of Hello Group. “Product innovation and our ability to leverage technological advancements have enabled Momo to play an important role in helping users discover new relationships and build meaningful interactions. This has laid a solid foundation for us to maintain user and revenue scale over the long term. I am also glad to see that our overseas team has accelerated the localization process to drive continued growth in the new endeavors. We look forward to delivering high quality social and entertainment services to a much broader user base global wise.” 

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB7.2203 to US$1.00, the effective noon buying rate for March 29, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.

First Quarter of 2024 Financial Results

Net revenues

Total net revenues were RMB2,560.4 million (US$354.6 million) in the first quarter of 2024, a decrease of 9.2% from RMB2,818.9 million in the first quarter of 2023.

Live video service revenues were RMB1,238.5 million (US$171.5 million) in the first quarter of 2024, a decrease of 13.3% from RMB1,429.3 million during the same period of 2023. The decrease was primarily attributable to our proactive operational adjustments to de-emphasise large scale competition events in the Momo app and a soft consumer sentiment in the current macro environment, and to a lesser degree, Tantan pivoting away from the less dating-centric live video service.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,294.4 million (US$179.3 million) in the first quarter of 2024, a decrease of 4.9% from RMB1,361.5 million during the same period of 2023. The decrease was primarily due to our product adjustments to improve Momo app’s ecosystem as well as the impact of the macro economy on consumer sentiment, and to a lesser extent, the decline in Tantan’s paying users. The decrease was partially offset by the rapid revenue growth from the new standalone apps.

Mobile marketing revenues were RMB26.6 million (US$3.7 million) in the first quarter of 2024, an increase of 26.2% from RMB21.1 million during the same period of 2023.

Mobile games revenues were RMB0.4 million (US$0.1 million) in the first quarter of 2024, a decrease of 88.3% from RMB3.7 million in the first quarter of 2023.

Net revenues from the Momo segment decreased from RMB2,510.1 million in the first quarter of 2023 to RMB2,318.9 million (US$321.2 million) in the first quarter of 2024, primarily due to the decrease in net revenues from value-added service and live video service on Momo app. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB308.6 million in the first quarter of 2023 to RMB241.5 million (US$33.4 million) in the first quarter of 2024, mainly due to the decrease in net revenues from live video service, and to a lesser extent, the decrease from value-added service.

Cost and expenses

Cost and expenses were RMB2,120.0 million (US$293.6 million) in the first quarter of 2024, a decrease of 12.4% from RMB2,419.1 million in the first quarter of 2023. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service on Momo app and Tantan app, and a decrease in revenue sharing with virtual gift recipients of virtual gift service on Momo app. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value; (c) a decrease in sales and marketing expenses due to less marketing and promotional spend on live video service and our strategy to trim inefficient channel marketing spend.

Non-GAAP cost and expenses (note 1) were RMB2,065.3 million (US$286.0 million) in the first quarter of 2024, a decrease of 11.6% from RMB2,337.4 million during the same period of 2023.

Income from operations

Income from operations was RMB460.3 million (US$63.8 million) in the first quarter of 2024, compared to RMB436.2 million during the same period of 2023. Income from operations of the Momo segment was RMB434.0 million (US$60.1 million) in the first quarter of 2024, which decreased from RMB435.0 million in the first quarter of 2023. Income from operations of the Tantan segment was RMB28.6 million (US$4.0 million) in the first quarter of 2024, which increased from RMB5.2 million in the first quarter of 2023.

Non-GAAP income from operations (note 1) was RMB515.0 million (US$71.3 million) in the first quarter of 2024, compared to RMB517.8 million during the same period of 2023. Non-GAAP income from operations of the Momo segment was RMB488.5 million (US$67.7 million) in the first quarter of 2024, which decreased from RMB507.5 million in the first quarter of 2023. Non-GAAP income from operations of the Tantan segment was RMB28.8 million (US$4.0 million) in the first quarter of 2024, compared to RMB14.5 million in the first quarter of 2023.  

Income tax expenses

Income tax expenses were RMB557.6 million (US$77.2 million) in the first quarter of 2024, compared to RMB122.6 million in the first quarter of 2023. In the first quarter of 2024, we accrued an income tax expenses of RMB109.0 million (US$15.1 million) associated with the profit generated in this quarter. Additionally, we accrued a withholding income tax of RMB448.6 million (US$62.1 million) associated with our WFOE’s historical undistributed earnings for the potential remittance of earnings from our WFOE to its offshore parent company in the form of dividend distribution. Because we believe that we might continue to distribute the WFOE’s undistributed earnings in the future to fund our demands in overseas business operations, payments of dividends, potential investments, etc, to be prudent, we accrued withholding tax on the total balance of undistributed earnings of our WFOE as of March 31, 2024. From the first quarter of 2024, dividends paid by our wholly foreign-owned subsidiary in the Chinese mainland to its offshore parent company in Hong Kong are qualified for the preferential withholding tax rate of 5% under the Arrangement between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income, instead of the normal withholding tax rate of 10%.

Net income

Net income was RMB5.2 million (US$0.7 million) in the first quarter of 2024, compared to RMB389.5 million during the same period of 2023. Net loss of the Momo segment was RMB20.8 million (US$2.9 million) in the first quarter of 2024, compared to a net income of RMB389.0 million in the same period of 2023. Net income from the Tantan segment was RMB28.2 million (US$3.9 million) in the first quarter of 2024, compared to RMB4.5 million in the first quarter of 2023.

Non-GAAP net income (note 1) was RMB59.9 million (US$8.3 million) in the first quarter of 2024, compared to RMB471.1 million during the same period of 2023. Non-GAAP net income from the Momo segment was RMB33.7 million (US$4.7 million) in the first quarter of 2024, which decreased from RMB461.5 million in the first quarter of 2023. Non-GAAP net income of the Tantan segment was RMB28.4 million (US$3.9 million) in the first quarter of 2024, compared to RMB13.7 million in the first quarter of 2023.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB5.2 million (US$0.7 million) in the first quarter of 2024, compared to RMB390.3 million during the same period of 2023.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB59.9 million (US$8.3 million) in the first quarter of 2024, compared to RMB471.9 million during the same period of 2023.

Net income per ADS

Diluted net income per ADS was RMB0.03 (US$0.00) in the first quarter of 2024, compared to RMB1.96 in the first quarter of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB0.31 (US$0.04) in the first quarter of 2024, compared to RMB2.36 in the first quarter of 2023.

Cash and cash flow

As of March 31, 2024, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB15,115.8 million (US$2,093.5 million), compared to RMB13,478.5 million as of December 31, 2023.

Net cash provided by operating activities in the first quarter of 2024 was RMB400.2 million (US$55.4 million), compared to RMB451.1 million in the first quarter of 2023.

Recent Development

Payment of a special cash dividend

In March 2024, Hello Group’s board of directors declared a special cash dividend in the amount of US$0.54 per ADS, or US$0.27 per ordinary share. The cash dividend was paid on April 30, 2024 to shareholders of record at the close of business on April 12, 2024. The aggregate amount of cash dividends paid was US$98.9 million.

Share repurchase program

On June 7, 2022, Hello Group’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$200 million of its shares up to June 6, 2024 (the “Share Repurchase Program”). On March 14, 2024, Hello Group’s board of directors approved to amend the Share Repurchase Program to (i) extend the term of the Share Repurchase Program up to June 30, 2026, and (ii) upsize the Share Repurchase Program so that the Company is authorized to, from time to time, acquire up to an aggregate of US$286.1 million worth of its shares in the form of ADSs and/or the ordinary shares of the Company in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations.

As of May 28, 2024, the Company has repurchased 22.3 million ADSs for US$122.6 million on the open market under Share Repurchase Program announced on June 7, 2022 and amended on March 14, 2024, at an average purchase price of US$5.48 per ADS.

Business Outlook

For the second quarter of 2024, the Company expects total net revenues to be between RMB2.65 billion to RMB2.75 billion, representing a decrease of 15.5% to 12.4% year over year. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Note 1: Non-GAAP measures

To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation.

Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.

Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Our non-GAAP information (including non-GAAP cost and operating expenses, income (loss) from operations, net income (loss), net income attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation. A limitation of using these non-GAAP financial measures is that share-based compensation has been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.

Conference Call

Hello Group’s management will host an earnings conference call on Tuesday, May 28, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on May 28, 2024).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10039014-cp8m51.html.

Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.

A telephone replay of the call will be available after the conclusion of the conference call through June 4, 2024. The dial-in details for the replay are as follows:

U.S. / Canada: 1-855-883-1031

Hong Kong: 800-930-639

Passcode: 10039014

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Hello Group’s website at https://ir.hellogroup.com.

About Hello Group Inc.

We are a leading player in mainland China’s online social networking space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. Starting from 2019, we have incubated a number of other new apps, such as Hertz, Soulchill, Duidui and Tietie, which target more niche markets and more selective demographics.

For investor and media inquiries, please contact:

Hello Group Inc.

Investor Relations
Phone: +86-10-5731-0538
Email: ir@hellogroup.com 

Christensen

In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: Xiaoyan.Su@christensencomms.com 

In U.S.

Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com 

Safe Harbor Statement

This news release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the second quarter of 2024, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the first quarter of 2024 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the second quarter of 2024 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the market price of the Company’s stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company’s cash flows from operations, general economic conditions, and other factors.  For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.          

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Operations

(All amounts in thousands, except share and per share data)

Three months

Ended March 31

2023

2024

2024

RMB

RMB

US$

Net revenues:

Live video service

1,429,340

1,238,541

171,536

Value-added service

1,361,469

1,294,376

179,269

Mobile marketing

21,071

26,595

3,683

Mobile games

3,699

432

60

Other services

3,279

476

66

Total net revenues

2,818,858

2,560,420

354,614

Cost and expenses:

Cost of revenues

(1,664,188)

(1,503,008)

(208,164)

Research and development

(236,803)

(192,191)

(26,618)

Sales and marketing

(379,786)

(293,431)

(40,640)

General and administrative

(138,298)

(131,381)

(18,196)

Total cost and expenses

(2,419,075)

(2,120,011)

(293,618)

Other operating income, net

36,394

19,906

2,757

Income from operations

436,177

460,315

63,753

Interest income

99,787

121,107

16,773

Interest expense

(10,415)

(23,698)

(3,282)

Other gain or loss, net

(9,245)

(1,280)

Income before income tax and share of (loss) income on equity method
investments

525,549

548,479

75,964

Income tax expenses

(122,613)

(557,613)

(77,229)

Income (loss) before share of income on equity method investments

402,936

(9,134)

(1,265)

Share of (loss) income on equity method investments

(13,475)

14,318

1,983

Net income 

389,461

5,184

718

Less: net loss attributable to non-controlling interest

(828)

Net income attributable to the shareholders of Hello Group Inc.

390,289

5,184

718

Net income per share attributable to ordinary shareholders

Basic

1.04

0.01

0.00

Diluted

0.98

0.01

0.00

Weighted average shares used in calculating net income per ordinary share

Basic

377,017,080

374,650,649

374,650,649

Diluted

409,102,277

389,278,806

389,278,806

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

(All amounts in thousands, except share and per share data)

Three months

Ended March 31

2023

2024

2024

RMB

RMB

US$

Net income 

389,461

5,184

718

Other comprehensive income, net of tax:

Foreign currency translation adjustment

2,181

54,894

7,603

Comprehensive income 

391,642

60,078

8,321

Less: comprehensive (loss) income attributed to the non-controlling interest

(1,670)

3,084

427

Comprehensive income attributable to Hello Group Inc.

393,312

56,994

7,894

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except share and per share data)

December 31

March 31

March 31

2023

2024

2024

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

5,620,466

6,023,224

834,207

Short-term deposits

1,270,626

1,129,454

156,428

Restricted cash

10,147

1,504,307

208,344

Accounts receivable, net of allowance for doubtful accounts of
RMB12,780 and RMB12,497 as of December 31, 2023 and March 31,
2024, respectively

201,517

189,561

26,254

Amounts due from related parties

7,258

Prepaid expenses and other current assets

723,364

823,251

114,019

Total current assets

7,833,378

9,669,797

1,339,252

Long-term deposits

3,924,975

3,805,075

526,997

Long-term restricted cash

2,652,299

2,653,744

367,539

Right-of-use assets, net

109,572

116,607

16,150

Property and equipment, net

659,033

688,699

95,384

Intangible assets, net

17,086

15,806

2,189

Rental deposits

12,962

13,766

1,907

Long-term investments

786,911

710,557

98,411

Amounts due from RPT-non current

20,000

Other non-current assets

180,052

200,649

27,790

Deferred tax assets

31,741

34,240

4,742

Total assets

16,228,009

17,908,940

2,480,361

Liabilities and equity

Current liabilities

Accounts payable

616,681

604,398

83,711

Deferred revenue

442,805

459,797

63,681

Accrued expenses and other current liabilities

630,617

564,205

78,141

Amounts due to related parties

4,314

Lease liabilities due within one year

60,008

66,136

9,160

Income tax payable

94,719

100,756

13,955

Deferred consideration in connection with business acquisitions

27,261

27,723

3,840

Long-term borrowings, current portion

215,615

217,094

30,067

Dividends payable

714,120

98,904

Short-term borrowings

1,334,664

184,849

Total current liabilities

2,092,020

4,088,893

566,308

Deferred tax liabilities

24,987

391,502

54,222

Convertible Senior Notes

19,571

19,920

2,759

Long-term borrowings

1,938,385

1,938,169

268,433

Lease liabilities

52,171

52,487

7,269

Other non-current liabilities

114,085

139,721

19,351

Total liabilities

4,241,219

6,630,692

918,342

Shareholder’s equity (i)

11,986,790

11,278,248

1,562,019

Total liabilities and shareholder’s equity

16,228,009

17,908,940

2,480,361

(i): As of March 31, 2024, the number of ordinary shares outstanding was 370,162,906.

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

(All amounts in thousands, except share and per share data)

Three months

Ended March 31

2023

2024

2024

RMB

RMB

US$

Cash flows from operating activities:

Net income 

389,461

5,184

718

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of property and equipment

22,844

14,310

1,982

Amortization of intangible assets

1,279

1,279

177

Share-based compensation

81,657

54,670

7,572

Share of loss (income) on equity method investments

13,475

(14,318)

(1,983)

Loss on long-term investments

9,245

1,280

Gain or loss on disposal of property and equipment

67

258

36

Provision of loss on receivable and other assets

9,182

1,776

246

Changes in operating assets and liabilities:

Accounts receivable

(548)

10,980

1,521

Prepaid expenses and other current assets

24,352

(9,677)

(1,340)

Amounts due from related parties

55

Rental deposits

(802)

(111)

Deferred tax assets

440

(2,498)

(346)

Other non-current assets

(7,485)

(7,597)

(1,052)

Accounts payable

20,379

(17,454)

(2,417)

Income tax payable

(6,393)

6,036

836

Deferred revenue

(8,811)

16,674

2,309

Accrued expenses and other current liabilities

(132,733)

(56,800)

(7,867)

Amount due to related parties

3,169

Deferred tax liabilities

34,120

365,011

50,553

Other non-current liabilities

6,564

23,893

3,309

Net cash provided by operating activities

451,074

400,170

55,423

Cash flows from investing activities:

Purchase of property and equipment

(10,234)

(44,176)

(6,118)

Purchase of short-term deposits

(497,342)

Cash received on maturity of short-term deposits

900,000

300,000

41,550

Purchase of long-term deposits

(718,860)

(99,561)

Cash received on maturity of long-term deposits

718,860

99,561

Cash received from sales of long-term investment

2,000

277

Other investing activities

738

385

53

Net cash provided by investing activities

393,162

258,209

35,762

Cash flows from financing activities:

Proceeds from exercise of share options

3

11

2

Payment in relation to the share repurchase program

(3,237)

(112,261)

(15,548)

Repurchase of subsidiary’s share options

(1,539)

Proceeds from short-term borrowings

1,331,635

184,429

Repayment of long-term borrowings

(215)

(30)

Payment for redemption of convertible bonds

(478,786)

Net cash (used in) provided by financing activities

(483,559)

1,219,170

168,853

Effect of exchange rate changes

(9,426)

20,814

2,882

Net increase in cash and cash equivalents 

351,251

1,898,363

262,920

Cash, cash equivalents and restricted cash at the beginning of period

5,198,601

8,282,912

1,147,170

Cash, cash equivalents and restricted cash at the end of period

5,549,852

10,181,275

1,410,090

 

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

1.

Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures.

Three months

Three months

Three months

Ended March 31, 2023

Ended March 31, 2024

Ended March 31, 2024

GAAP

Share-based
compensation

Non-GAAP

GAAP

Share-based
compensation

Non-GAAP

GAAP

Share-based
compensation

Non-GAAP

RMB

RMB

RMB

RMB

RMB 

RMB

US$

US$

US$

Cost of revenues

(1,664,188)

1,635

(1,662,553)

(1,503,008)

1,882

(1,501,126)

(208,164)

261

(207,903)

Research and development

(236,803)

22,372

(214,431)

(192,191)

8,786

(183,405)

(26,618)

1,217

(25,401)

Sales and marketing

(379,786)

7,746

(372,040)

(293,431)

6,117

(287,314)

(40,640)

847

(39,793)

General and administrative

(138,298)

49,904

(88,394)

(131,381)

37,885

(93,496)

(18,196)

5,247

(12,949)

Cost and operating expenses

(2,419,075)

81,657

(2,337,418)

(2,120,011)

54,670

(2,065,341)

(293,618)

7,572

(286,046)

Income from operations

436,177

81,657

517,834

460,315

54,670

514,985

63,753

7,572

71,325

Net income attributable to Hello Group Inc.

390,289

81,657

471,946

5,184

54,670

59,854

718

7,572

8,290

 

Unaudited Condensed Segment Report

(All amounts in thousands, except share and per share data)

Three months

  Ended March 31, 2024

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

1,150,844

87,697

1,238,541

171,536

Value-added service

1,149,285

145,091

1,294,376

179,269

Mobile marketing

17,893

8,702

26,595

3,683

Mobile games

432

432

60

Other services

434

42

476

66

Total net revenues

2,318,888

241,490

42

2,560,420

354,614

Cost and expenses (ii):

Cost of revenues

(1,392,824)

(110,184)

(1,503,008)

(208,164)

Research and development

(150,861)

(41,330)

(192,191)

(26,618)

Sales and marketing

(236,659)

(54,482)

(2,290)

(293,431)

(40,640)

General and administrative

(123,752)

(7,591)

(38)

(131,381)

(18,196)

Total cost and expenses

(1,904,096)

(213,587)

(2,328)

(2,120,011)

(293,618)

Other operating income

19,158

724

24

19,906

2,757

Income (loss) from operations

433,950

28,627

(2,262)

460,315

63,753

Interest income

120,958

147

2

121,107

16,773

Interest expense

(23,698)

(23,698)

(3,282)

Other gain or loss, net

(9,245)

(9,245)

(1,280)

Income (loss) before income tax and share of income on equity
method investments

521,965

28,774

(2,260)

548,479

75,964

Income tax expenses

(557,079)

(534)

(557,613)

(77,229)

(Loss) income before share of income on equity method
investments

(35,114)

28,240

(2,260)

(9,134)

(1,265)

Share of income on equity method investments

14,318

14,318

1,983

Net (loss) income

(20,796)

28,240

(2,260)

5,184

718

(ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three months

Ended March 31, 2024

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

1,878

4

1,882

261

Research and development

8,638

148

8,786

1,217

Sales and marketing

6,117

6,117

847

General and administrative

37,874

11

37,885

5,247

Total cost and expenses

54,507

163

54,670

7,572

 

 

Hello Group Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

(All amounts in thousands, except share and per share data)

Three months

Ended March 31, 2024

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

433,950

28,627

(2,262)

460,315

63,753

Share-based compensation

54,507

163

54,670

7,572

Non-GAAP income (loss) from operations

488,457

28,790

(2,262)

514,985

71,325

Net (loss) income 

(20,796)

28,240

(2,260)

5,184

718

Share-based compensation

54,507

163

54,670

7,572

Non-GAAP net income (loss)

33,711

28,403

(2,260)

59,854

8,290

   

 

Hello Group Inc.

Unaudited Condensed Segment Report

(All amounts in thousands, except share and per share data)

Three months

  Ended March 31, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[1]

Net revenues:

Live video service

1,289,718

139,622

1,429,340

208,128

Value-added service

1,193,544

167,925

1,361,469

198,246

Mobile marketing

20,021

1,050

21,071

3,068

Mobile games

3,699

3,699

539

Other services

3,137

142

3,279

477

Total net revenues

2,510,119

308,597

142

2,818,858

410,458

Cost and expenses (iii):

Cost of revenues

(1,500,531)

(163,114)

(543)

(1,664,188)

(242,325)

Research and development

(169,308)

(67,495)

(236,803)

(34,481)

Sales and marketing

(312,640)

(65,852)

(1,294)

(379,786)

(55,301)

General and administrative

(128,078)

(7,746)

(2,474)

(138,298)

(20,138)

Total cost and expenses

(2,110,557)

(304,207)

(4,311)

(2,419,075)

(352,245)

Other operating income, net

35,478

854

62

36,394

5,299

Income (loss) from operations

435,040

5,244

(4,107)

436,177

63,512

Interest income

99,531

204

52

99,787

14,530

Interest expense

(10,415)

(10,415)

(1,517)

Income (loss) before income tax and share of income on equity 
method investments

524,156

5,448

(4,055)

525,549

76,525

Income tax expenses

(121,642)

(971)

(122,613)

(17,854)

Income (loss) before share of income on equity method investments

402,514

4,477

(4,055)

402,936

58,671

Share of loss on equity method investments

(13,475)

(13,475)

(1,962)

Net income (loss)

389,039

4,477

(4,055)

389,461

56,709

(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three months

Ended March 31, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

1,618

17

1,635

238

Research and development

13,170

9,202

22,372

3,258

Sales and marketing

7,741

5

7,746

1,128

General and administrative

49,896

8

49,904

7,267

Total cost and expenses

72,425

9,232

81,657

11,891

[1] All translations from RMB to U.S. dollars are made at a rate of RMB6.8676 to US$1.00, the effective noon buying rate for March 31, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

Hello Group Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

(All amounts in thousands, except share and per share data)

Three months

Ended March 31, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

435,040

5,244

(4,107)

436,177

63,512

Share-based compensation

72,425

9,232

81,657

11,891

Non-GAAP income (loss) from operations

507,465

14,476

(4,107)

517,834

75,403

Net income (loss)

389,039

4,477

(4,055)

389,461

56,709

Share-based compensation

72,425

9,232

81,657

11,891

Non-GAAP net income (loss)

461,464

13,709

(4,055)

471,118

68,600

 

View original content:https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-first-quarter-of-2024-302156503.html

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Electra to Usher in the Next Era of Aviation with Advanced Production Facility in Springfield, Ohio

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$850 million investment in Springfield and Clark County will move Direct Aviation from concept to reality, creating nearly 2,000 jobs and supporting production of up to 800 EL9 Ultra Short aircraft per year

SPRINGFIELD, Ohio, July 21, 2026 /PRNewswire/ — Electra today announced plans to establish its first production facility for the EL9 Ultra Short in the City of Springfield, within Clark County, a major milestone that will bring its nine-passenger hybrid-electric aircraft from development into scaled commercial production.

The initial phase will support capacity for up to 400 aircraft per year, later expanding to up to 800 aircraft per year.

The $850 million investment will create 1,975 new jobs, anchor production of the EL9 Ultra Short, and help meet demand for Direct Aviation, a new category of accessible, point-to-point air mobility. The EL9 Ultra Short is a nine-passenger fixed-wing aircraft that uses hybrid-electric propulsion and blown-lift technology to take off and land in as little as 150 feet. The new facility will be located at AirPark Ohio, adjacent to Springfield-Beckley Municipal Airport.

“Electra is opening a new era of aviation, one where flight is direct, accessible, and closer to the communities it serves,” said Marc Allen, CEO of Electra. “This agreement is the moment that our vision moves from demonstration into reality. In Springfield and Clark County, we found the rare combination this next era requires: a ready site, a skilled workforce, a deep aerospace and defense ecosystem, and state and local leaders with the commitment and vision to build it with us. We are grateful to the City of Springfield, Clark County, and the State of Ohio for welcoming Electra into this community as we prepare to bring the EL9 Ultra Short into production, through certification, and ultimately into service.”

The production facility will ensure Electra remains at the forefront of American global leadership in hybrid-electric aviation, with the EL9 Ultra Short unlocking new markets for commercial advanced air mobility, military logistics, and humanitarian applications. The decision to build in Springfield is a bet on reindustrializing America’s capacity to manufacture next-generation aircraft at scale in the Birthplace of Aviation.

“Ohio is where flight began, and the Dayton-Springfield area has become the national epicenter for advanced air mobility – the place where the next generation of aircraft is being designed, tested, and now built at scale,” said Ohio Governor Mike DeWine. “Electra’s decision to bring nearly 2,000 new jobs to Springfield will be transformative for Clark County, demonstrating Ohio’s unique ability to lead America into aviation’s next era.” 

Electra selected the site following a year-long competitive national site-selection process that evaluated more than 140 potential locations. Criteria included workforce availability, infrastructure readiness, long-term expansion capacity, state and local partnership, incentives, and proximity to the aerospace, defense, and advanced manufacturing talent needed to support EL9 Ultra Short production.

The new 96-acre facility will house production of the EL9 Ultra Short. The initial phase of development will start immediately with design, while construction of the facility will begin next year. The initial phase will support capacity for up to 400 aircraft per year. A second phase of development will expand capacity to up to 800 aircraft per year.

The company chose the Dayton-Springfield region because it offers advanced air mobility (AAM) companies a combination of assets found nowhere else in the country. Springfield-Beckley Municipal Airport is home to the National Advanced Air Mobility Center of Excellence (NAAMCE) and SkyVision, the FAA-approved ground-based detect-and-avoid system that enables beyond visual line of sight (BVLOS) flight testing in unrestricted airspace, which allows companies to move from concept to flight test faster than anywhere else in the nation. That infrastructure is complemented by growing AAM production near Dayton International Airport and the region’s proximity to Wright-Patterson Air Force Base and the Air Force Research Laboratory (AFRL), which together form one of the deepest concentrations of aerospace R&D talent in the world.

“JobsOhio and our partners at the Dayton Development Coalition are proud to welcome Electra’s first point-to-point hybrid-electric aircraft production facility to Ohio,” said JobsOhio President and CEO J.P. Nauseef. “This investment builds on years of collaboration to establish Springfield-Beckley Municipal Airport as a national hub for advanced air mobility. Here, Electra will have direct access to the nation’s premier AAM testing infrastructure, a proven aerospace workforce, a deep manufacturing supply chain and the unmatched research capabilities of Wright-Patterson Air Force Base—an ideal environment to innovate, scale and grow for decades to come.”

Electra’s investment will be supported by state and local incentives tied to job creation, workforce development, infrastructure readiness, and long-term manufacturing growth. An incentive package is being designed to support hundreds of new Ohio jobs over the coming years as Electra scales production in the region. The project will pursue a Job Creation Tax Credit from the Ohio Department of Development at a future Tax Credit Authority meeting. JobsOhio also plans to provide assistance with the project, which will be made public after a final agreement is executed.

The EL9 Ultra Short is designed to unlock Direct Aviation, a new category of air travel that connects people and places directly through point-to-point mobility using novel access points such as parking lots, barges, and sports fields. The aircraft is designed around Electra’s Rule of Six: access, quiet operations, payload, range, safety, and affordability. In 2025, the company secured $115 million in Series B funding to support pre-production and certification of the EL9 Ultra Short, led by Prysm Capital.

“This is a landmark moment for Electra and for aviation,” said Jay Park, Co-Founder and Managing Partner at Prysm Capital. “Building a new category of aircraft takes conviction at every step, and the Electra team has delivered on each one. We’re proud to be their partner as the EL9 goes from proving what’s possible to producing it.”

In May, Electra released the Direct Aviation Market Outlook, a nationwide analysis of U.S.-based travel. At the heart of this market are trips between 50 and 250 flying miles, where demand is both concentrated and largely unserved by existing aviation. Electra’s analysis found that meeting this demand will require between 12,000 and 16,000 aircraft between 2030 and 2040.

This announcement follows Electra and Safran Helicopter Engines’ life-of-program agreement to develop and produce the TG600 turbogenerator that will power the EL9 Ultra Short. The agreement includes an initial order for 250 units and establishes Safran’s TG600 as the core of the EL9’s hybrid-electric propulsion system.

Earlier this year, Electra and Bristow Group Inc. announced a Pre-Delivery Payment agreement with non-refundable deposits and binding terms and conditions aligned to commercial aviation industry standards, subject to aircraft certification, securing the first delivery slot for the EL9 Ultra Short hybrid-electric aircraft with the TG600.

Electra has also submitted the EL9 Ultra Short aircraft to the Federal Aviation Administration (FAA) for Part 23 type certification and anticipates a first flight scheduled for late 2027 or early 2028. The FAA recently closed the G-1 Issue Paper, formally establishing the certification basis for Electra’s EL9 Ultra Short aircraft and advancing the company toward the next phase of type certification.

“The first era of aviation began right here in the greater Dayton region,” Allen said. “It is fitting that aviation’s next era will be built here too — in Springfield and Clark County — where Electra will produce groundbreaking aircraft designed to transform the way people travel.”

Electra will also continue to operate parts of its business from its Manassas, Virginia facilities. Together, the two campuses will give Electra the structure, talent, and operating model needed to fuel its next chapter of growth. To learn more, visit electra.aero/ohiojobs.

About Electra

Electra.aero, Inc. (Electra) is an advanced air mobility (AAM) company building hybrid-electric Ultra Short airplanes that deliver unprecedented performance advantages to fly people and cargo seamlessly without airports, emissions, or noise. With the EL9 Ultra Short, Electra is pioneering Direct Aviation, the next level of connectivity that brings air travel closer to where we live, work, and play. Electra’s Ultra Short technology delivers 2.5x the payload and 10x longer range with 70% lower operating costs than helicopters and eVTOLs with significantly greater safety and far less certification risk.

Electra’s team includes some of the most respected and successful entrepreneurs and engineers in novel aircraft design, with over 40 prior aircraft successfully developed and/or certified. Lockheed Martin Ventures, Honeywell, and Safran are among Electra’s strategic investors along with Prysm Capital, the Virginia Innovation Partnership Corporation (VIPC), and other private investors. Electra’s contracted customers include the U.S. Air Force, the U.S. Army, the U.S. Navy, and NASA along with over 2,200 letters of intent from 60+ commercial customers, including both airlines and helicopter operators.

About JobsOhio 
JobsOhio, Ohio’s private nonprofit economic development corporation, enhances company growth and personnel development through business attraction, retention, and expansion across 10 competitive industry sectors. With a team of seasoned professionals, JobsOhio utilizes a comprehensive network to foster talent production in targeted industries and attract talent through Find Your Ohio. Collaborating with seven regional partners, including Dayton Development Coalition, Lake to River Economic Development, Ohio Southeast Economic Development, One Columbus, REDI Cincinnati, Regional Growth Partnership, and Team NEO. JobsOhio delivers world-class customer service to provide companies with a competitive advantage. In 2026 Ohio was named CNBC’s Top State for Business. Learn more at www.jobsohio.com. Follow us on LinkedIn, X , Instagram, and Facebook

Media Contacts:

Matthew Bowen
Vrge Strategies
matthew@vrge.us 

Matt Englehart
Englehart@jobsOhio.com
614-300-1152

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Introducing Harness Agent DLC: New Capabilities for the AI Agent Development Lifecycle

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Enterprises can now ship AI agents with the same governance, testing, and security they already trust for application code

SAN FRANCISCO, July 21, 2026 /PRNewswire/ — Harness, the AI Software Delivery Platform™ company, today announced it is extending its platform to cover the full AI Agent Development Lifecycle (DLC), giving enterprises a single set of pipelines and controls to build, test, deploy, and run agents the same way they already ship everything else.

Every enterprise is building AI agents, but most can’t get them past internal pilots or proofs of concept. According to Gartner®, “Only 8% of organizations have agentic AI in production.” The software delivery lifecycle enterprises trust for shipping application code hasn’t extended to agents yet, trapping the ROI of internal AI investments. Real innovation arrives once a company can run an agent live with the same trust and confidence it has in the rest of its software.

“When we started Harness, the vision was a safety harness for code,” said Jyoti Bansal, co-founder and CEO of Harness. “Until recently, that meant application code. Today it also means agentic code, written across engineering, product, sales, and support teams alike, each building agents for their own workflows. Everything you’ve done for software delivery over the last decade — governance, orchestration, security, testing — you can now do for agents in the same platform.”

Why AI agents break the traditional software delivery lifecycle

Traditional software works because it’s predictable. Application code is deterministic. Run the same test against the same code twice, and it produces the same result both times.

Agents don’t work that way: an agent’s underlying language model decides how to complete a task, and the same agent, given the same input, can choose a different tool or take a different action from one run to the next. A test that passes once offers no guarantee it will pass the next time. Incidents stop being reproducible on demand, which means the standard playbook for catching and fixing bugs doesn’t transfer either.

The stakes rise with the size of the business. A rogue agent can expose customer data, violate a compliance policy, or take an action nobody approved. Enterprises need a way to answer for what their agents are doing, and the traditional software delivery lifecycle was never built to give them one.

New Harness Agent DLC products and capabilities

Agent DLC closes the gap between building an agent and delivering it safely to production. Today’s launch includes five new products and capabilities spanning testing, deployment, operations, and governance:

Harness AI Evals make agent quality measurable, letting teams define eval datasets, wire up scoring functions, and set quality gates that automatically catch regressions whenever an agent or model changes.Agent Deployments extend the canary releases, approvals, and OPA guardrails that Harness already applies to Kubernetes deployments to managed agent runtimes like Amazon Bedrock AgentCore and Google’s Agent Runtime. Agents now ship through existing pipelines instead of a separate cloud-specific workflow.AI Configs support the release and management of prompts and model changes at runtime, backed by the same feature flagging infrastructure that already manages code releases. Teams can test what performs best and roll back instantly, without redeploying.AI Asset Catalog automatically discovers every agent, skill, and plugin built across an organization’s repositories and links each to an owner, so nothing ships or runs unaccounted for.Harness AgentTrace records what happens during a single agent run and across a full multi-step session, showing which path an agent took, where it slowed down, and how different models or prompts affect the outcome. Harness is also open-sourcing the foundational components behind AgentTrace, including harness-sdk and harness-evals, so developers can bring the same tracing primitives into their own AI applications.

In addition, existing Harness products already extend to agents without requiring any changes: Continuous Integration builds them like any other service, Artifact Registry tracks their versions and dependencies, AI Test Automation validates their responses in plain English criteria, and AI Cost Management extends spend visibility to every agent and model.

Securing the Agent DLC

Agents choose their own approach and path to get there, so their behavior is hard to predict and just as hard to secure. They expand their own attack surface by connecting to tools and APIs, spawning sub-agents, and inheriting trust from every model they touch. Static scans were never designed for this kind of risk. Harness is launching new security capabilities to close that gap.

Shift-left: constrain what agents can do before they ship.

Primitive Scanning flags misconfigurations in agent skills, prompts, and models.AIBOM captures every model, tool, and dependency an agent was built with.AI Testing runs agents against adversarial inputs and the OWASP Top 10 for LLMs.

Shield-right: enforce policy and maintain visibility once they’re live.

Agent Discovery and Posture Management continuously surfaces agents as they’re invoked, maps how they connect and orchestrate work, and assesses their posture across the organization.AI Firewall enforces policy in real time against prompt injection, tool misuse, and data exfiltration.

Together, these capabilities give Agent DLC a single audit trail from development to production.

Built on the Harness platform

Harness built context and intelligence directly into the platform with the Software Delivery Knowledge Graph, which captures and connects data from every stage of the delivery lifecycle, now spanning both applications and agents. Organizations relying on siloed tools don’t have that same connected view.

In June 2026, Harness introduced Autonomous Worker Agents, a platform for building and safely running AI agents inside software delivery pipelines. Worker Agents run as governed steps within those pipelines, covered by the same controls Harness already applies to every deployment.

Agent DLC extends that same context and governance across the full agent lifecycle. The pipelines, policies, approvals, and evidence that already apply to an organization’s code now apply to its agents too, so eval gates, deployment approvals, and security checks run as stages within a single pipeline, from the moment an agent is created through everything it does afterward.

Availability

Harness Agent DLC capabilities are rolling out now to Harness customers. For a full breakdown of what’s included at each stage of the lifecycle, visit https://www.harness.io/blog/introducing-harness-agent-dlc.

Gartner, Emerging Market Quadrant for AI Agent Development Platforms — Established Vendors, 8 June 2026. GARTNER is a trademark of Gartner, Inc. and/or its affiliates

About Harness

Harness is the AI Software Delivery Platform™ company, enabling engineering teams to build, test, and deliver software faster and more securely. Powered by Harness AI and the Software Delivery Knowledge Graph, the platform brings intelligent automation to every stage of the software delivery lifecycle after code — removing toil and freeing developers from manual, repetitive work. Companies like United Airlines, Morningstar, and Choice Hotels use Harness to accelerate releases by up to 75%, cut cloud costs by 60%, and achieve 10x efficiency across DevOps. Based in San Francisco, Harness is backed by Goldman Sachs, Menlo Ventures, IVP, Unusual Ventures, and Citi Ventures.

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VIVIFY Technology Hosts Governor Candidate Byron Donalds at South Florida Headquarters

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Delray Beach company demonstrates hydrogen energy platforms built to address Florida’s hurricane recovery, infrastructure growth, and data center demand

DELRAY BEACH, Fla., July 21, 2026 /PRNewswire/ — VIVIFY Technology today welcomed Florida Governor Candidate Byron Donalds to the company’s South Florida headquarters for a firsthand demonstration of its deployed hydrogen energy platforms: the HOG™ (Hydrogen Oxygen Generator), the CAT™ (Clean Air Technology) emissions control system, and the Flying Pig™, VIVIFY’s 1MW containerized hydrogen power unit.

The visit focused on the direct applications of VIVIFY’s technology to Florida’s most pressing infrastructure challenges: disaster recovery and hurricane resilience, power capacity for the state’s rapidly growing communities, and dedicated behind-the-meter energy for the data center build-out accelerating across the state.

The Flying Pig™ — a self-contained, 1MW hydrogen power system engineered for rapid deployment — is designed to be transported and operational within hours of arriving on site. In a post-storm environment, that means restoring critical power to Florida communities without waiting on grid repair timelines that can stretch for days or weeks.

“We didn’t build VIVIFY in Florida by accident,” said Jason Herring, Founder and CEO of VIVIFY Technology. “Hurricane season, the data center boom, communities being built faster than the grid can reach them: these are Florida realities. We built the answer here because the problem is here.”

Florida’s population growth has created compounding pressure on transmission infrastructure. New master-planned communities, industrial corridors, and data center campuses across the state are running into the same constraint: available grid capacity cannot keep pace with announced development. VIVIFY’s on-site hydrogen energy systems are engineered to close that gap, delivering dedicated power on the developer’s schedule rather than the utility’s.

“Every new community, every new data center, every growth corridor in this state runs into the same wall,” Herring said. “The grid can’t keep up. We built the technology that lets Florida build without waiting.”

Candidate Donalds toured the facility and engaged directly with VIVIFY’s engineering team and deployed systems.

“Hurricane recovery, new community development, the data center wave: these are the issues that define Florida’s future,” Candidate Donalds said. “The technology I saw today addresses every one of them.”

About VIVIFY Technology

VIVIFY Technology is a hydrogen energy company headquartered in South Florida. The company designs and develops hydrogen-based energy platforms — including its flagship Hydrogen Oxygen Generator™ (HOG™), the Clean Air Technology™ (CAT™) emissions control system, and the Flying Pig™ containerized power unit — engineered to deliver dependable, dedicated power for the most demanding infrastructure environments in operation today. Learn more at vivify-technology.com.

Forward-Looking Statements: This release contains forward-looking statements regarding VIVIFY Technology’s products, platforms, and intended performance. Forward-looking statements are subject to inherent uncertainty and reflect the company’s current expectations. Actual results may differ materially. The company undertakes no obligation to update any forward-looking statement except as required by law.

Media Contact
Ashley Stevenson, Chief Marketing Officer
ashley@vivify-technology.com

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