Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: In the first quarter, the number of paying users on Momo decreased significantly. What caused this, and what is the impact on revenue and profit? Are there further adjustments planned for live streaming and value-added services? A: Sichuan Zhang, COO: The decline in paying users is due to our decision to focus on profitability rather than acquiring low-return users. This shift should enhance our main business's profitability. We have improved Momo's content and will focus on adding engaging features while continuing cost-saving measures. Peng Hui, CFO: Despite the decline in paying users, the core user engagement remains strong, and we expect the "dolphin" user group to drive business stability. Regulatory and macroeconomic factors will influence revenue, with a low 10% revenue decline expected for 2025.
Q: Can you comment on the key markets for your overseas applications and the growth potential in 2025? A: Sichuan Zhang, COO: Our overseas app, particularly in Turkey, Egypt, and Gulf countries, has shown strong growth due to improved localization strategies. We launched two new apps, Yahale and Amar, which are showing promising potential. Peng Hui, CFO: We expect overseas revenue to grow significantly, with a target range of RMB1.7 billion to RMB2 billion in 2025. Profitability is not the priority as we focus on scaling, but ROI remains stable.
Q: What are the plans for Tantan in 2025, given its declining user and revenue scale? A: Peng Hui, CFO: Tantan will focus on delivering a good dating experience and building a sustainable business model. We will significantly cut user acquisition costs to improve ROI, even if it means a decline in active users. This strategy will allow us to refine user experience and retention strategies. We expect a 20% to 30% revenue decline in 2025, but profitability should improve due to cost optimization.
Q: Are there plans to make the dividend program regular, and how do you decide between dividends and share buybacks? A: Peng Hui, CFO: We do not plan to make the dividend program regular as we prefer flexibility in capital allocation. We prioritize growth opportunities over a fixed dividend schedule. Given our stock's current valuation, share buybacks offer better returns for shareholders compared to dividends.
Q: How does management view the adjustments to live streaming and value-added services over the past year? A: Sichuan Zhang, COO: After a year of efforts, Momo's content has improved significantly. We will focus on adding engaging features and cost-saving measures to ensure profitability, even if revenue declines slightly.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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