Technology

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

Published

2 years ago

September 3, 2024

BEIJING, Sept. 3, 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 second quarter of 2024.

Second Quarter of 2024 Highlights

Net revenues decreased by 14.2% year over year to RMB2,691.4 million (US$370.3 million*) in the second quarter of 2024.Net income attributable to Hello Group Inc. decreased to RMB397.8 million (US$54.7 million) in the second quarter of 2024, from RMB568.4 million in the same period of 2023.Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB449.2 million (US$61.8 million) in the second quarter of 2024, from RMB632.1 million in the same period of 2023.Diluted net income per American Depositary Share (“ADS”) was RMB2.11 (US$0.29) in the second quarter of 2024, compared to RMB2.82 in the same period of 2023.Non-GAAP diluted net income per ADS (note 1) was RMB2.38 (US$0.33) in the second quarter of 2024, compared to RMB3.14 in the same period of 2023.Monthly Active Users (“MAU”) on Tantan app were 12.9 million in June 2024, compared to 17.3 million in June 2023.For the Momo app total paying users was 7.2 million for the second quarter of 2024, compared to 7.9 million for the same period last year. Tantan had 1.0 million paying users for the second quarter of 2024 compared to 1.4 million from the year ago period.

First Half of 2024 Highlights

Net revenues decreased by 11.8% year over year to RMB5,251.8 million (US$722.7 million) for the first half of 2024.Net income attributable to Hello Group Inc. was RMB403.0 million (US$55.5 million) for the first half of 2024, compared to RMB958.7 million during the same period of 2023.Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB509.1 million (US$70.1 million) for the first half of 2024, compared to RMB1,104.1 million during the same period of 2023.Diluted net income per ADS was RMB2.10 (US$0.29) for the first half of 2024, compared to RMB4.78 during the same period of 2023.Non-GAAP diluted net income per ADS (note 1) was RMB2.65 (US$0.37) for the first half of 2024, compared to RMB5.49 during the same period of 2023.

“Q2 was a good quarter. I am pleased to see that our team has maintained the spirit of innovation and adaptation in a challenging environment,” commented Yan Tang, Chairman and CEO of Hello Group. “Momo’s cash cow business continued to be productive in a healthy community ecosystem. Regarding new endeavors, while strengthening the localization progress, we are more convinced of the revenue growth opportunities in overseas market.”

* 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 RMB7.2672 to US$1.00, the effective noon buying rate for June 28, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.

Second Quarter of 2024 Financial Results

Net revenues

Total net revenues were RMB2,691.4 million (US$370.3 million) in the second quarter of 2024, a decrease of 14.2% from RMB3,137.7 million in the second quarter of 2023.

Live video service revenues were RMB1,303.0 million (US$179.3 million) in the second quarter of 2024, a decrease of 18.0% from RMB1,588.8 million during the same period of 2023. The decrease was primarily attributable to our proactive operational adjustments to de-emphasis 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 RMB1,345.3 million (US$185.1 million) in the second quarter of 2024, a decrease of 10.3% from RMB1,499.5 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 which was in turn due to the decrease in its user base, the recent product upgrade as well as adjustments in its membership auto renewal policy. The decrease was partially offset by the revenue growth from the new standalone apps.

Mobile marketing revenues were RMB42.0 million (US$5.8 million) in the second quarter of 2024, an increase of 13.5% from RMB37.0 million during the same period of 2023.

Net revenues from the Momo segment decreased from RMB2,816.6 million in the second quarter of 2023 to RMB2,457.2 million (US$338.1 million) in the second 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 RMB320.7 million in the second quarter of 2023 to RMB233.7 million (US$32.2 million) in the second quarter of 2024, mainly due to the decrease in net revenues from live video service and value-added service.

Cost and expenses

Cost and expenses were RMB2,275.2 million (US$313.1 million) in the second quarter of 2024, a decrease of 9.6% from RMB2,515.5 million in the second 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. The decrease was partially offset by an increase in sales and marketing expenses due to more marketing spend in connection with the annual gala event of Momo’s live streaming service.

Non-GAAP cost and expenses (note 1) were RMB2,223.8 million (US$306.0 million) in the second quarter of 2024, a decrease of 9.3% from RMB2,451.8 million during the same period of 2023.

Income from operations

Income from operations was RMB425.0 million (US$58.5 million) in the second quarter of 2024, compared to RMB645.1 million during the same period of 2023. Income from operations of the Momo segment was RMB409.4 million (US$56.3 million) in the second quarter of 2024, which decreased from RMB618.8 million in the second quarter of 2023. Income from operations of the Tantan segment was RMB16.4 million (US$2.3 million) in the second quarter of 2024, which decreased from RMB30.2 million in the second quarter of 2023.

Non-GAAP income from operations (note 1) was RMB476.5 million (US$65.6 million) in the second quarter of 2024, compared to RMB708.8 million during the same period of 2023. Non-GAAP income from operations of the Momo segment was RMB456.7 million (US$62.8 million) in the second quarter of 2024, which decreased from RMB680.8 million in the second quarter of 2023. Non-GAAP income from operations of the Tantan segment was RMB20.6 million (US$2.8 million) in the second quarter of 2024, compared to RMB31.9 million in the second quarter of 2023.

Income tax expenses

Income tax expenses were RMB102.6 million (US$14.1 million) in the second quarter of 2024, compared to RMB166.0 million in the second quarter of 2023. The decrease in income tax expenses was primarily due to the lower profit in the second quarter of 2024, and to a lesser extent, lower withholding tax rate due to our eligibility for a preferential tax rate since the beginning of the year.

Net income

Net income was RMB397.8 million (US$54.7 million) in the second quarter of 2024, compared to RMB567.6 million during the same period of 2023. Net income from the Momo segment was RMB382.8 million (US$52.7 million) in the second quarter of 2024, compared to RMB542.4 million in the same period of 2023. Net income from the Tantan segment was RMB15.8 million (US$2.2 million) in the second quarter of 2024, compared to RMB29.1 million in the second quarter of 2023.

Non-GAAP net income (note 1) was RMB449.2 million (US$61.8 million) in the second quarter of 2024, compared to RMB631.3 million during the same period of 2023. Non-GAAP net income from the Momo segment was RMB430.0 million (US$59.2 million) in the second quarter of 2024, which decreased from RMB604.4 million in the second quarter of 2023. Non-GAAP net income of the Tantan segment was RMB20.0 million (US$2.8 million) in the second quarter of 2024, compared to RMB30.8 million in the second quarter of 2023.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB397.8 million (US$54.7 million) in the second quarter of 2024, compared to RMB568.4 million during the same period of 2023.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB449.2 million (US$61.8 million) in the second quarter of 2024, compared to RMB632.1 million during the same period of 2023.

Net income per ADS

Diluted net income per ADS was RMB2.11 (US$0.29) in the second quarter of 2024, compared to RMB2.82 in the second quarter of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB2.38 (US$0.33) in the second quarter of 2024, compared to RMB3.14 in the second quarter of 2023.

Cash and cash flow

As of June 30, 2024, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB14,316.4 million (US$1,970.0 million), compared to RMB13,478.5 million as of December 31, 2023.

Net cash provided by operating activities in the second quarter of 2024 was RMB475.2 million (US$65.4 million), compared to RMB827.7 million in the second quarter of 2023.

First Half of 2024 Financial Results

Net revenues for the first half of 2024 were RMB5,251.8 million (US$722.7 million), a decrease of 11.8% from RMB5,956.5 million in the same period of 2023.

Net income attributable to Hello Group Inc. was RMB403.0 million (US$55.5 million) for the first half of 2024, compared to RMB958.7 million during the same period of 2023.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB509.1 million (US$70.1 million) for the first half of 2024, compared to RMB1,104.1 million during the same period of 2023.

Diluted net income per ADS was RMB2.10 (US$0.29) during the first half of 2024, compared to RMB4.78 in the same period of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB2.65 (US$0.37) during the first half of 2024, compared to RMB5.49 in the same period of 2023.

Net cash provided by operating activities was RMB875.4 million (US$120.5 million) during the first half of 2024, compared to RMB1,278.8 million in the same period of 2023.

Recent Development

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 September 3, the Company has repurchased 30.9 million ADSs for US$174.6 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$5.63 per ADS.

Business Outlook

For the third quarter of 2024, the Company expects total net revenues to be between RMB2.58 billion to RMB2.68 billion, representing a decrease of 15.2% to 11.9% 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 and such adjustment has no impact on income tax.

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 and such adjustment has no impact on income tax. 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, September 3, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on September 3, 2024).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10041441-w8sbhf.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 September 10, 2024. The dial-in details for the replay are as follows:

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

Hong Kong: 800-930-639

Passcode: 10041441

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 third 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 second quarter of 2024 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the third 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

First half year

Ended June 30

2023

2024

2023

2024

RMB

US$

RMB

US$

Net revenues:

Live video service

1,588,849

1,303,020

179,302

3,018,189

2,541,561

349,730

Value-added service

1,499,482

1,345,316

185,121

2,860,951

2,639,692

363,234

Mobile marketing

36,986

41,990

5,778

58,057

68,585

9,438

Mobile games

2,606

–

6,305

432

Other services

9,763

1,065

147

13,042

1,541

212

Total net revenues

3,137,686

2,691,391

370,348

5,956,544

5,251,811

722,673

Cost and expenses:

Cost of revenues

(1,819,559)

(1,595,789)

(219,588)

(3,483,747)

(3,098,797)

(426,409)

Research and development

(214,649)

(193,168)

(26,581)

(451,452)

(385,359)

(53,027)

Sales and marketing

(356,525)

(364,769)

(50,194)

(736,311)

(658,200)

(90,571)

General and administrative

(124,787)

(121,482)

(16,716)

(263,085)

(252,863)

(34,795)

Total cost and expenses

(2,515,520)

(2,275,208)

(313,079)

(4,934,595)

(4,395,219)

(604,802)

Other operating income, net

22,919

8,861

1,219

59,313

28,767

3,958

Income from operations

645,085

425,044

58,488

1,081,262

885,359

121,829

Interest income

115,321

130,937

18,018

215,108

252,044

34,682

Interest expense

(11,963)

(32,493)

(4,471)

(22,378)

(56,191)

(7,732)

Other gain or loss, net

4,565

(34,625)

(4,765)

4,565

(43,870)

(6,037)

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

753,008

488,863

67,270

1,278,557

1,037,342

142,742

Income tax expenses

(165,969)

(102,614)

(14,120)

(288,582)

(660,227)

(90,850)

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

587,039

386,249

53,150

989,975

377,115

51,892

Share of (loss) income on equity method investments

(19,439)

11,536

1,587

(32,914)

25,854

3,558

Net income

567,600

397,785

54,737

957,061

402,969

55,450

Less: net loss attributable to non-controlling interest

(795)

–

(1,623)

–

Net income attributable to the shareholders of Hello Group Inc.

568,395

397,785

54,737

958,684

402,969

55,450

Net income per share attributable to ordinary shareholders

Basic

1.50

1.10

0.15

2.54

1.09

0.15

Diluted

1.41

1.05

0.14

2.39

1.05

0.14

Weighted average shares used in calculating net income per ordinary share

Basic

377,920,901

362,394,762

377,471,487

368,522,705

Diluted

409,201,815

377,903,589

409,151,850

383,528,002

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

First half year

Ended June 30

2023

2024

2023

2024

RMB

US$

RMB

US$

Net income

567,600

397,785

54,737

957,061

402,969

55,450

Other comprehensive income, net of tax:

Foreign currency translation adjustment

107,975

41,569

5,720

110,156

96,463

13,274

Comprehensive income

675,575

439,354

60,457

1,067,217

499,432

68,724

Less: comprehensive income attributed to the non-controlling interest

10,188

1,202

165

8,518

4,286

590

Comprehensive income attributable to Hello Group Inc.

665,387

438,152

60,292

1,058,699

495,146

68,134

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

June 30

2023

2024

RMB

US$

Assets

Current assets

Cash and cash equivalents

5,620,466

5,958,586

819,929

Short-term deposits

1,270,626

350,000

48,162

Restricted cash

10,147

1,513,894

208,319

Accounts receivable, net of allowance for doubtful accounts of RMB12,780 and
RMB12,615 as of December 31, 2023 and June 30, 2024, respectively

201,517

184,840

25,435

Amounts due from related parties

7,258

–

Prepaid expenses and other current assets

723,364

776,812

106,893

Total current assets

7,833,378

8,784,132

1,208,738

Long-term deposits

3,924,975

3,816,800

525,209

Long-term restricted cash

2,652,299

2,677,110

368,383

Right-of-use assets, net

109,572

304,301

41,873

Property and equipment, net

659,033

889,309

122,373

Intangible assets, net

17,086

14,527

1,999

Rental deposits

12,962

13,770

1,895

Long-term investments

786,911

726,981

100,036

Amounts due from RPT-non current

20,000

–

Other non-current assets

180,052

211,744

29,137

Deferred tax assets

31,741

35,820

4,929

Total assets

16,228,009

17,474,494

2,404,572

Liabilities and equity

Current liabilities

Accounts payable

616,681

607,035

83,532

Deferred revenue

442,805

444,657

61,187

Accrued expenses and other current liabilities

630,617

607,062

83,535

Amounts due to related parties

4,314

–

Lease liabilities due within one year

60,008

153,979

21,188

Income tax payable

94,719

58,224

8,012

Deferred consideration in connection with business acquisitions

27,261

27,904

3,840

Long-term borrowings, current portion

215,615

29,670

Short-term borrowings

–

1,331,635

183,239

Total current liabilities

2,092,020

3,446,111

474,203

Deferred tax liabilities

24,987

408,451

56,205

Convertible Senior Notes

19,571

20,067

2,761

Long-term borrowings

1,938,385

1,938,169

266,701

Lease liabilities

52,171

158,821

21,854

Other non-current liabilities

114,085

137,811

18,963

Total liabilities

4,241,219

6,109,430

840,687

Shareholder’s equity (i)

11,986,790

11,365,064

1,563,885

Total liabilities and shareholder’s equity

16,228,009

17,474,494

2,404,572

(i): As of June 30, 2024, the number of ordinary shares outstanding was 352,650,980.

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

Three months

First half year

Ended June 30

2023

2024

2023

2024

RMB

US$

RMB

US$

Cash flows from operating activities:

Net income

567,600

397,785

54,737

957,061

402,969

55,450

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

Depreciation of property and equipment

18,787

13,525

1,861

41,631

27,835

3,830

Amortization of intangible assets

1,279

176

2,558

352

Share-based compensation

63,748

51,458

7,081

145,405

106,128

14,604

Share of loss (income) on equity method investments

19,439

(11,536)

(1,587)

32,914

(25,854)

(3,558)

Gain on repurchase of convertible senior notes

(4,565)

–

(4,565)

–

Cash received on distributions from equity method investments

1,349

1,197

165

1,349

1,197

165

Loss on long-term investments

–

34,625

4,765

–

43,870

6,037

Gain or loss on disposal of property and equipment

(527)

(178)

(24)

(460)

Provision of loss on receivable and other assets

1,022

145

10,204

1,921

264

Changes in operating assets and liabilities:

Accounts receivable

(20,117)

4,848

667

(20,665)

15,828

2,178

Prepaid expenses and other current assets

170,514

15,043

2,070

194,866

5,366

738

Amounts due from related parties

–

Rental deposits

951

–

951

(802)

(110)

Deferred tax assets

(1,580)

(217)

457

(4,078)

(561)

Other non-current assets

30,424

(198,746)

(27,348)

22,939

(206,343)

(28,394)

Accounts payable

11,459

(14,292)

(1,967)

31,838

(31,746)

(4,368)

Income tax payable

2,674

(42,533)

(5,853)

(3,719)

(36,497)

(5,022)

Deferred revenue

(14,062)

(15,268)

(2,101)

(22,873)

1,406

193

Accrued expenses and other current liabilities

(54,827)

121,547

16,725

(187,560)

64,747

8,909

Amount due to related parties

(272)

–

2,897

–

Deferred tax liabilities

48,397

14,410

1,983

82,517

379,421

52,210

Other non-current liabilities

(15,548)

103,500

14,242

(8,984)

127,393

17,530

Net cash provided by operating activities

827,742

475,229

65,395

1,278,816

875,399

120,458

Cash flows from investing activities:

Purchase of property and equipment

(11,010)

(199,842)

(27,499)

(21,244)

(244,018)

(33,578)

Payment for long-term investments

(9,000)

(5,250)

(722)

(9,000)

(5,250)

(722)

Purchase of short-term deposits

–

(497,342)

–

Cash received on maturity of short-term deposits

2,609,820

781,016

107,471

3,509,820

1,081,016

148,753

Cash received on investment income distribution

1,517

–

1,517

–

Purchase of long-term deposits

(1,350,000)

–

(1,350,000)

(718,860)

(98,918)

Cash received on maturity of long-term deposits

–

718,860

98,918

Cash received from sales of long-term investment

–

2,000

275

Other investing activities

947

298

1,685

683

Net cash provided by investing activities

1,242,274

576,222

79,291

1,635,436

834,431

114,822

Cash flows from financing activities:

Proceeds from exercise of share options

–

Payment in relation to the share repurchase program

–

(394,561)

(54,293)

(3,237)

(506,822)

(69,741)

Repurchase of subsidiary’s share options

(2,557)

–

(4,096)

–

Dividends payment

(937,249)

(716,302)

(98,566)

(937,249)

(716,302)

(98,566)

Proceeds from short-term borrowings

–

1,331,635

183,239

Repayment of long-term borrowings

–

(215)

(30)

Payment for redemption of convertible bonds

(2,114,224)

–

(2,593,010)

–

Net cash (used in) provided by financing activities

(3,054,014)

(1,110,861)

(152,859)

(3,537,573)

108,309

14,904

Effect of exchange rate changes

145,860

27,725

3,814

136,434

48,539

6,680

Net (decrease) increase in cash and cash equivalents

(838,138)

(31,685)

(4,359)

(486,887)

1,866,678

256,864

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

5,549,852

10,181,275

1,400,990

5,198,601

8,282,912

1,139,767

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

4,711,714

10,149,590

1,396,631

4,711,714

10,149,590

1,396,631

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

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

Three months

Ended June 30, 2023

Ended June 30, 2024

GAAP

Share-based
compensation

Non-GAAP

GAAP

Share-based
compensation

Non-GAAP

GAAP

Share-based
compensation

Non-GAAP

RMB

US$

Cost of revenues

(1,819,559)

1,552

(1,818,007)

(1,595,789)

1,796

(1,593,993)

(219,588)

247

(219,341)

Research and development

(214,649)

13,821

(200,828)

(193,168)

13,512

(179,656)

(26,581)

1,860

(24,721)

Sales and marketing

(356,525)

6,813

(349,712)

(364,769)

4,149

(360,620)

(50,194)

571

(49,623)

General and administrative

(124,787)

41,562

(83,225)

(121,482)

32,001

(89,481)

(16,716)

4,403

(12,313)

Cost and operating expenses

(2,515,520)

63,748

(2,451,772)

(2,275,208)

51,458

(2,223,750)

(313,079)

7,081

(305,998)

Income from operations

645,085

63,748

708,833

425,044

51,458

476,502

58,488

7,081

65,569

Net income attributable to Hello Group Inc.

568,395

63,748

632,143

397,785

51,458

449,243

54,737

7,081

61,818

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

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

First half year

Ended June 30, 2023

Ended June 30, 2024

GAAP

Share-based
compensation

Non-GAAP

GAAP

Share-based
compensation

Non-GAAP

GAAP

Share-based
compensation

Non-GAAP

RMB

US$

Cost of revenues

(3,483,747)

3,187

(3,480,560)

(3,098,797)

3,678

(3,095,119)

(426,409)

506

(425,903)

Research and development

(451,452)

36,193

(415,259)

(385,359)

22,298

(363,061)

(53,027)

3,068

(49,959)

Sales and marketing

(736,311)

14,559

(721,752)

(658,200)

10,266

(647,934)

(90,571)

1,413

(89,158)

General and administrative

(263,085)

91,466

(171,619)

(252,863)

69,886

(182,977)

(34,795)

9,617

(25,178)

Cost and operating expenses

(4,934,595)

145,405

(4,789,190)

(4,395,219)

106,128

(4,289,091)

(604,802)

14,604

(590,198)

Income from operations

1,081,262

145,405

1,226,667

885,359

106,128

991,487

121,829

14,604

136,433

Net income attributable to Hello Group Inc.

958,684

145,405

1,104,089

402,969

106,128

509,097

55,450

14,604

70,054

Hello Group Inc.

Unaudited Condensed Segment Report

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

Three months

Ended June 30, 2024

Momo

Tantan

QOOL

Total

RMB

US$

Net revenues:

Live video service

1,220,013

83,007

–

1,303,020

179,302

Value-added service

1,205,460

139,856

–

1,345,316

185,121

Mobile marketing

31,136

10,854

–

41,990

5,778

Other services

582

–

483

1,065

147

Total net revenues

2,457,191

233,717

483

2,691,391

370,348

Cost and expenses (ii):

Cost of revenues

(1,491,925)

(103,862)

(2)

(1,595,789)

(219,588)

Research and development

(151,180)

(41,988)

–

(193,168)

(26,581)

Sales and marketing

(301,121)

(62,473)

(1,175)

(364,769)

(50,194)

General and administrative

(112,387)

(8,978)

(117)

(121,482)

(16,716)

Total cost and expenses

(2,056,613)

(217,301)

(1,294)

(2,275,208)

(313,079)

Other operating income

8,858

8,861

1,219

Income (loss) from operations

409,436

16,417

(809)

425,044

58,488

Interest income

130,777

158

130,937

18,018

Interest expense

(32,493)

–

(32,493)

(4,471)

Other gain or loss, net

(34,625)

–

(34,625)

(4,765)

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

473,095

16,575

(807)

488,863

67,270

Income tax expenses

(101,865)

(749)

–

(102,614)

(14,120)

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

371,230

15,826

(807)

386,249

53,150

Share of income on equity method investments

11,536

–

11,536

1,587

Net income (loss)

382,766

15,826

(807)

397,785

54,737

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

Three months

Ended June 30, 2024

Momo

Tantan

QOOL

Total

RMB

US$

Cost of revenues

1,796

–

1,796

247

Research and development

9,325

4,187

–

13,512

1,860

Sales and marketing

4,149

–

4,149

571

General and administrative

31,998

–

32,001

4,403

Total cost and expenses

47,268

4,190

–

51,458

7,081

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 June 30, 2024

Momo

Tantan

QOOL

Total

RMB

US$

Income (loss) from operations

409,436

16,417

(809)

425,044

58,488

Share-based compensation

47,268

4,190

–

51,458

7,081

Non-GAAP income (loss) from operations

456,704

20,607

(809)

476,502

65,569

Net income (loss)

382,766

15,826

(807)

397,785

54,737

Share-based compensation

47,268

4,190

–

51,458

7,081

Non-GAAP net income (loss)

430,034

20,016

(807)

449,243

61,818

Hello Group Inc.

Unaudited Condensed Segment Report

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

Three months

Ended June 30, 2023

Momo

Tantan

QOOL

Total

RMB

US$[1]

Net revenues:

Live video service

1,443,602

145,247

–

1,588,849

219,112

Value-added service

1,329,310

170,172

–

1,499,482

206,788

Mobile marketing

31,670

5,316

–

36,986

5,101

Mobile games

2,606

–

2,606

359

Other services

9,459

–

304

9,763

1,347

Total net revenues

2,816,647

320,735

304

3,137,686

432,707

Cost and expenses (iii):

Cost of revenues

(1,658,335)

(160,651)

(573)

(1,819,559)

(250,929)

Research and development

(163,040)

(51,609)

–

(214,649)

(29,601)

Sales and marketing

(282,903)

(72,378)

(1,244)

(356,525)

(49,167)

General and administrative

(116,197)

(6,198)

(2,392)

(124,787)

(17,209)

Total cost and expenses

(2,220,475)

(290,836)

(4,209)

(2,515,520)

(346,906)

Other operating income, net

22,648

271

–

22,919

3,161

Income (loss) from operations

618,820

30,170

(3,905)

645,085

88,962

Interest income

114,946

358

115,321

15,903

Interest expense

(11,963)

–

(11,963)

(1,650)

Other gain or loss, net

4,565

–

4,565

630

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

726,368

30,528

(3,888)

753,008

103,845

Income tax expenses

(164,541)

(1,428)

–

(165,969)

(22,888)

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

561,827

29,100

(3,888)

587,039

80,957

Share of loss on equity method investments

(19,439)

–

(19,439)

(2,681)

Net income (loss)

542,388

29,100

(3,888)

567,600

78,276

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

Three months

Ended June 30, 2023

Momo

Tantan

QOOL

Total

RMB

US$

Cost of revenues

1,437

115

–

1,552

214

Research and development

12,222

1,599

–

13,821

1,906

Sales and marketing

6,813

–

6,813

940

General and administrative

41,554

–

41,562

5,732

Total cost and expenses

62,026

1,722

–

63,748

8,792

[1] All translations from RMB to U.S. dollars are made at a rate of RMB7.2513 to US$1.00, the effective noon buying rate for June 30, 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 June 30, 2023

Momo

Tantan

QOOL

Total

RMB

US$

Income (loss) from operations

618,820

30,170

(3,905)

645,085

88,962

Share-based compensation

62,026

1,722

–

63,748

8,792

Non-GAAP income (loss) from operations

680,846

31,892

(3,905)

708,833

97,754

Net income (loss)

542,388

29,100

(3,888)

567,600

78,276

Share-based compensation

62,026

1,722

–

63,748

8,792

Non-GAAP net income (loss)

604,414

30,822

(3,888)

631,348

87,068

Hello Group Inc.

Unaudited Condensed Segment Report

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

First half year

Ended June 30, 2024

Momo

Tantan

QOOL

Total

RMB

US$

Net revenues:

Live video service

2,370,857

170,704

–

2,541,561

349,730

Value-added service

2,354,745

284,947

–

2,639,692

363,234

Mobile marketing

49,029

19,556

–

68,585

9,438

Mobile games

432

–

432

Other services

1,016

–

525

1,541

212

Total net revenues

4,776,079

475,207

525

5,251,811

722,673

Cost and expenses (iv):

Cost of revenues

(2,884,749)

(214,046)

(2)

(3,098,797)

(426,409)

Research and development

(302,041)

(83,318)

–

(385,359)

(53,027)

Sales and marketing

(537,780)

(116,955)

(3,465)

(658,200)

(90,571)

General and administrative

(236,139)

(16,569)

(155)

(252,863)

(34,795)

Total cost and expenses

(3,960,709)

(430,888)

(3,622)

(4,395,219)

(604,802)

Other operating income

28,016

725

28,767

3,958

Income (loss) from operations

843,386

45,044

(3,071)

885,359

121,829

Interest income

251,735

305

252,044

34,682

Interest expense

(56,191)

–

(56,191)

(7,732)

Other gain or loss, net

(43,870)

–

(43,870)

(6,037)

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

995,060

45,349

(3,067)

1,037,342

142,742

Income tax expenses

(658,944)

(1,283)

–

(660,227)

(90,850)

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

336,116

44,066

(3,067)

377,115

51,892

Share of income on equity method investments

25,854

–

25,854

3,558

Net income (loss)

361,970

44,066

(3,067)

402,969

55,450

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

First half year

Ended June 30, 2024

Momo

Tantan

QOOL

Total

RMB

US$

Cost of revenues

3,674

–

3,678

506

Research and development

17,963

4,335

–

22,298

3,068

Sales and marketing

10,266

–

10,266

1,413

General and administrative

69,872

–

69,886

9,617

Total cost and expenses

101,775

4,353

–

106,128

14,604

Hello Group Inc.

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

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

First half year

Ended June 30, 2024

Momo

Tantan

QOOL

Total

RMB

US$

Income (loss) from operations

843,386

45,044

(3,071)

885,359

121,829

Share-based compensation

101,775

4,353

–

106,128

14,604

Non-GAAP income (loss) from operations

945,161

49,397

(3,071)

991,487

136,433

Net income (loss)

361,970

44,066

(3,067)

402,969

55,450

Share-based compensation

101,775

4,353

–

106,128

14,604

Non-GAAP net income (loss)

463,745

48,419

(3,067)

509,097

70,054

Hello Group Inc.

Unaudited Condensed Segment Report

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

First half year

Ended June 30, 2023

Momo

Tantan

QOOL

Total

RMB

US$

Net revenues:

Live video service

2,733,320

284,869

–

3,018,189

416,227

Value-added service

2,522,854

338,097

–

2,860,951

394,543

Mobile marketing

51,691

6,366

–

58,057

8,006

Mobile games

6,305

–

6,305

869

Other services

12,596

–

446

13,042

1,800

Total net revenues

5,326,766

629,332

446

5,956,544

821,445

Cost and expenses (v):

Cost of revenues

(3,158,866)

(323,765)

(1,116)

(3,483,747)

(480,431)

Research and development

(332,348)

(119,104)

–

(451,452)

(62,258)

Sales and marketing

(595,543)

(138,230)

(2,538)

(736,311)

(101,542)

General and administrative

(244,275)

(13,944)

(4,866)

(263,085)

(36,281)

Total cost and expenses

(4,331,032)

(595,043)

(8,520)

(4,934,595)

(680,512)

Other operating income

58,126

1,125

59,313

8,180

Income (loss) from operations

1,053,860

35,414

(8,012)

1,081,262

149,113

Interest income

214,477

562

215,108

29,665

Interest expense

(22,378)

–

(22,378)

(3,086)

Other gain or loss, net

4,565

–

4,565

630

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

1,250,524

35,976

(7,943)

1,278,557

176,322

Income tax expenses

(286,183)

(2,399)

–

(288,582)

(39,797)

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

964,341

33,577

(7,943)

989,975

136,525

Share of loss on equity method investments

(32,914)

–

(32,914)

(4,539)

Net income (loss)

931,427

33,577

(7,943)

957,061

131,986

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

First half year

Ended June 30, 2023

Momo

Tantan

QOOL

Total

RMB

US$

Cost of revenues

3,055

132

–

3,187

440

Research and development

25,392

10,801

–

36,193

4,991

Sales and marketing

14,554

–

14,559

2,008

General and administrative

91,450

–

91,466

12,614

Total cost and expenses

134,451

10,954

–

145,405

20,053

Hello Group Inc.

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

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

First half year

ended June 30, 2023

Momo

Tantan

QOOL

Total

RMB

US$

Operating income (loss)

1,053,860

35,414

(8,012)

1,081,262

149,113

Share-based compensation

134,451

10,954

–

145,405

20,053

Non-GAAP operating income (loss)

1,188,311

46,368

(8,012)

1,226,667

169,166

Net income (loss)

931,427

33,577

(7,943)

957,061

131,986

Share-based compensation

134,451

10,954

–

145,405

20,053

Non-GAAP net income (loss)

1,065,878

44,531

(7,943)

1,102,466

152,039

View original content:https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-second-quarter-of-2024-302236454.html

SOURCE Hello Group Inc.

Technology

Wondershare Demonstrates AI-Powered Document Workflows with PDFelement at Microsoft AI Tour Hong Kong

Published

28 minutes ago

April 23, 2026

HONG KONG, April 23, 2026 /PRNewswire/ — Wondershare, a global leader in digital productivity and creativity software, showcased its latest AI-powered solutions at the Microsoft AI Tour Hong Kong, highlighting how its flagship product, Wondershare PDFelement, integrates with Microsoft technologies to enable smarter, more secure, and more efficient document workflows for enterprises.

As Microsoft’s flagship global AI event, the Microsoft AI Tour brings together partners and industry leaders to explore how AI is transforming business operations. At the Hong Kong stop, Wondershare demonstrated its deep collaboration with Microsoft across key solution areas, showcasing how its product ecosystem aligns with Microsoft technologies to deliver integrated, end-to-end AI workflows.

At the center of the showcase was Wondershare PDFelement, an AI-powered, all-in-one PDF solution designed to streamline document-centric processes in enterprise environments. Through deep integration with the Microsoft ecosystem, PDFelement enables seamless interoperability with widely used applications such as Word, Excel, and PowerPoint, allowing users to convert PDFs into fully editable formats while preserving original layout and structure. With built-in Office plugins, users can also generate standardized PDFs directly within Microsoft applications. PDFelement further supports deployment in Microsoft Azure environments, enabling Single Sign-On (SSO) for streamlined access management, while maintaining compatibility with Microsoft Rights Management Services (RMS) to securely manage protected documents.

Beyond its ecosystem integration, PDFelement also introduces a suite of AI-powered capabilities to enhance productivity across document workflows. Smart Redact enables automatic detection and masking of over 70 types of sensitive data to support compliance requirements, while Professional AI Translation delivers accurate, industry-specific language output for cross-border collaboration. The Admin Console provides enterprise-grade centralized access and permission control, allowing IT teams to manage AI, cloud, and eSign features with real-time visibility into license usage. At the event, attendees can also experience a range of enhanced AI features, including AI Summarize, Chat with PDF, AI Translate, AI Detect and Rewrite, as well as AI Proofread, Voice, Explain, Grammar Check, and Mind Map Generation.

In addition to PDFelement, Wondershare also showcased how its broader product portfolio integrates with Microsoft technologies. EdrawMax offers full compatibility with Microsoft Visio through bidirectional .vsdx import and export, along with Office add-ins, OLE embedding, and data-driven diagram generation from Excel, while also featuring AI-powered capabilities such as the Edraw Agent, natural language-driven diagram generation, and text-to-diagram conversion across platforms. EdrawMind enables one-click conversion of mind maps into PowerPoint and supports intelligent analysis of Office documents to generate structured knowledge frameworks, alongside AI features including webpage summarization, node-based note generation, and AI-powered search. Filmora is optimized for the Windows AI PC ecosystem, leveraging on-device NPU acceleration for AI-powered video processing, supporting Windows on Arm, and enabling natural language interaction with RAG-based asset matching, while also incorporating AI Extend, AI Portrait, and Smart Cutout. Reelmate provides an AI-powered, agent-driven platform covering the full content production pipeline from generation to post-production for creating premium comic series.

Through live demonstrations, attendees were able to experience how Wondershare’s AI-powered solutions can be applied across real-world enterprise scenarios, from document processing and knowledge management to visual communication and content creation. The showcase attracted strong interest from professionals across industries such as finance, education, information technology, and telecommunications, particularly around capabilities related to document security, automation, and cross-language collaboration.

Wondershare’s participation in the Microsoft AI Tour Hong Kong highlights its continued commitment to advancing practical AI adoption through deep ecosystem integration. By combining AI capabilities with seamless compatibility across Microsoft technologies, Wondershare is helping enterprises build more secure, connected, and efficient workflows for the future.

About Wondershare:

Wondershare is a globally recognized software company founded in 2003, known for its innovative solutions in creativity and productivity. Driven by the mission “Creativity Simplified”, Wondershare offers a range of tools, including PDFelement for document management; EdrawMax, EdrawMind for diagraming, Filmora and SelfyzAI for video editing. With over 2 billion cumulative active users across all products and a presence in over 200 countries and regions, Wondershare empowers the next generation of creators with intuitive software and trendy creative resources, continually expanding the possibilities of creativity worldwide.

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SOURCE Wondershare Technology

Technology

TCL Solar Highlights Groundbreaking Solar Products at Korea Green Energy Expo 2026

Published

28 minutes ago

April 23, 2026

Booth No: K-450

DAEGU, South Korea, April 23, 2026 /PRNewswire/ — TCL Solar is currently exhibiting its latest photovoltaic solutions at the Korea Green Energy Expo, reinforcing its commitment to advancing South Korea’s renewable energy market. As South Korea is poised to become a key global player in the solar energy sector, the country is on track to achieve a cumulative installed solar capacity of 55.7GW by 2030, with over 5GW set to be installed annually. Among the growing demand, distributed and floating photovoltaic systems are driving significant market expansion.

TCL Solar is actively supporting South Korea’s renewable energy goals by offering high-efficiency, reliable solar modules and localized services that are integral to helping the country meet its solar installation targets and accelerate its transition to sustainable energy.

TCL Solar is showcasing its T5 Pro TOPCon Multi-Cut Product, which utilizes advanced TOPCon technology with overlapping cell architecture, offering a maximum power output of up to 670W、755W. This cutting-edge solution represents the pinnacle of high-efficiency solar energy.

Additionally, the C2 BC Module, powered by Back Contact technology, delivers significantly higher energy yields, making it perfect for complex applications with high BOS costs, low ground reflectivity, limited land availability, partial shadow scenarios, or aesthetic requirements.

The BC module with its no busbar design and no front metal lines present a more visually appealing aesthetic, meeting Korean architectural requirements. Offering a power output 20W higher than TOPCon modules, it also maintains significantly better hot spot resistance and a degradation rate of just 0.35%.

Additionally, the company introduced the lightweight modules (5.4kg/m², reducing weight by 49%) that are particularly suitable for low-load rooftops of aging factories in Korea.

Besides, the company proudly congratulate Prana Solution Co., Ltd. on winning the 2025 TCL Solar Top Sales Award on site. This remarkable achievement highlights the strong partnership between Prana Solution and TCL Solar, built on a shared commitment to innovation and sustainable energy.

Backed by TCL Zhonghuan’s (TCL Solar parent company) advanced manufacturing capabilities including the launch of the industry’s first 4.0 silicon wafer factory in 2020, TCL Solar guarantees excellent quality and technical support. TCL Solar will continue to collaborate with local partners to help South Korea achieve its renewable energy goals, while advancing its global expansion through partnership with the Korean market for mutual growth.

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SOURCE TCL Solar

Technology

BCG Reports $14.4 Billion in Revenue, Marking 22nd Consecutive Year of Growth

Published

28 minutes ago

April 23, 2026

Tech- and AI-Focused Services Now Represent More than 40% of Total RevenueBCG Grew to 33,500 Employees

BOSTON, April 23, 2026 /PRNewswire/ — Boston Consulting Group (BCG) has reported 7% global revenue growth, rising to $14.4 billion in 2025 from $13.5 billion in 2024, marking its 22nd consecutive year of growth. The firm expanded across all regions, reflecting client demand globally for large-scale transformation and applied AI impact.

Growth in 2025 was driven by clients seeking to harness technology and AI, pursue new avenues of growth, achieve cost excellence, and redesign their organizations for sustained results. AI- and tech-focused services now represent over 40% of BCG’s total revenue, driven by 25% year-over-year growth in AI services. BCG’s applied AI approach, embedding technology in real business operations at enterprise scale, enabled exponential impact for clients including IBM, Reckitt, and Foxconn.

“Our growth reflects the ambition of our clients and the dedication of our teams,” said Christoph Schweizer, BCG’s CEO. “We partner with leaders at defining moments to navigate uncertainty, embrace AI, and turn strategy into sustained advantage. As AI reshapes business, it is also reshaping how we operate as a firm. AI is now woven into every offering, client relationship, and daily case team experience to drive transformation and multiply impact for our clients.”

Building Up BCG’s Team to Deliver Transformational Results
BCG continued to expand its global talent base in 2025, growing its workforce to 33,500 employees. The firm added AI engineers, data scientists, IT architects, and deep-industry specialists, while continuing to develop its consulting teams to lead complex end-to-end transformations.

AI upskilling efforts have further accelerated across the firm, equipping teams to combine human judgment with AI-powered tools. BCG employees now use AI tools daily, with nearly 4,000 BCG employees actively developing and scaling AI workflows through advanced coding and automation. LinkedIn’s AI Talent Maturity Index places BCG’s workforce as leaders in the industry.

“Our people are at the center of our performance,” Schweizer said. “Their judgment, empathy, and ability to combine applied AI with strategic clarity are what enable us to deliver lasting impact for clients.”

Serving Clients in an Applied AI World
As AI reshapes industries, BCG is embedding AI directly into how it designs and delivers client solutions. Over the past year, the firm has reimagined its offerings by integrating AI into core consulting workflows—embedding proprietary knowledge, data, and proven delivery approaches into reusable, human-led agentic processes that accelerate impact.

Through BCG X, the firm builds bespoke AI solutions where differentiation matters most, deploying industry-specific platforms such as Auto AI, Retail AI, and Deep Customer Engagement AI directly into client systems. In 2025, BCG launched the BCG X AI Science Institute to advance frontier applications across industries, strengthening its work at the intersection of science, technology, and business transformation. BCG also serves as an ecosystem orchestrator working to deliver integrated solutions in collaboration with its tech alliance partners.

To best serve clients, BCG remains a leader in developing and using AI in a manner that is secure, responsible, and trusted by clients, partners, and regulators. BCG was among the first 100 organizations globally, and the only premium consulting firm, certified for ISO/IEC 42001 International Standard for AI Management Systems.

Media Contact:
Brian Bannister
Bannister.Brian@bcg.com

About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

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SOURCE Boston Consulting Group (BCG)