Hello Group's Q1 2025: Key Contradictions in Tantan's Financial Outlook and Revenue Strategies

Tantan's financial outlook, domestic revenue trend and outlook, overseas revenue growth and strategy, Tantan's product and revenue strategy are the key contradictions discussed in Hello Group Inc.'s latest 2025Q1 earnings call.



Overseas Revenue Growth:
- Hello Group's overseas revenue reached RMB 415 million in Q1 2025, accounting for 16.4% of total revenue, up from 9.4% in Q1 '24, with a year-over-year growth of 72%.
- The growth was driven by rapid expansion in the MENA market, notably from the Soulchill product, and the initial monetization of new brands, as well as improved cross-border collaboration.

Momo App User Acquisition and Profitability:
- Momo app had 4.2 million paying users, down from 5.7 million in Q4 2024, reflecting a significant reduction in long-tail paying users.
- The company focused on optimizing user acquisition by terminating inefficient channels, resulting in improved ROI and stable user retention despite the decline in paying users, enhancing overall profit.

Tantan's Financial and Product Strategy:
- Tantan's MAU was 10.7 million in Q1 2025, with 800,000 paying users, facing a 1% decline in MAU and 6% decline in paying users from Q4 2024.
- The company reduced marketing spend, focusing on product upgrades and cost efficiency, which led to improved organic traffic and user verification rates, although revenue decreased due to a decline in paying users.

Operational and Geographic Revenue Breakdown:
- Total group revenue was RMB 2.52 billion, exceeding high-end guidance, with overseas revenue contributing 16%, up from less than 10% the previous year.
- The company disclosed geographic revenue breakdowns to reflect the growing significance of overseas businesses, aligning with strategic priorities to expand globally and enrich the brand portfolio.