Hi Workforce Inc. Proclaims Unaudited Monetary Effects for the 3rd Quarter of 2024

BEIJING, Dec. 9, 2024 /PRNewswire/ — Hi Workforce Inc. (NASDAQ: MOMO) (“Hello Group” or the “Company”), a participant in mainland China’s on-line social networking range, as of late introduced its unaudited monetary effects for the 0.33 quarter of 2024.  

3rd Quarter of 2024 Highlights

• Internet revenues lowered via 12.1% age over age to RMB2,674.7 million (US$381.1 million*) within the 0.33 quarter of 2024. 
• Internet source of revenue resulting from Hi Workforce Inc. lowered to RMB449.4 million (US$64.0 million) within the 0.33 quarter of 2024, from RMB546.4 million in the similar duration of 2023.
• Non-GAAP web source of revenue resulting from Hi Workforce Inc. (observe 1) lowered to RMB493.3 million (US$70.3 million) within the 0.33 quarter of 2024, from RMB605.9 million in the similar duration of 2023. 
• Diluted web source of revenue in step with American Depositary Proportion (“ADS”) was once RMB2.46 (US$0.35) within the 0.33 quarter of 2024, in comparison to RMB2.75 in the similar duration of 2023. 
• Non-GAAP diluted web source of revenue in step with ADS (observe 1) was once RMB2.70 (US$0.38) within the 0.33 quarter of 2024, in comparison to RMB3.05 in the similar duration of 2023.
• Per 30 days Energetic Customers (“MAU”) on Tantan app had been 12.0 million in September 2024, in comparison to 15.7 million in September 2023.
• For the Momo app general paying customers was once 6.9 million for the 0.33 quarter of 2024, in comparison to 7.8 million for a similar duration latter age. Tantan had 0.9 million paying customers for the 0.33 quarter of 2024 in comparison to 1.4 million from the age in the past duration.

First 9 Months of 2024 Highlights

• Internet revenues lowered via 11.9% age over age to RMB7,926.5 million (US$1,129.5 million) for the primary 9 months of 2024.
• Internet source of revenue resulting from Hi Workforce Inc. was once RMB852.3 million (US$121.5 million) for the primary 9 months of 2024, in comparison to RMB1,505.1 million throughout the similar duration of 2023.
• Non-GAAP web source of revenue resulting from Hi Workforce Inc. (observe 1) was once RMB1,002.4 million (US$142.8 million) for the primary 9 months of 2024, in comparison to RMB1,710.0 million throughout the similar duration of 2023.
• Diluted web source of revenue in step with ADS was once RMB4.51(US$0.64) for the primary 9 months of 2024, in comparison to RMB7.52 throughout the similar duration of 2023.
• Non-GAAP diluted web source of revenue in step with ADS (observe 1) was once RMB5.31(US$0.76) for the primary 9 months of 2024, in comparison to RMB8.53 throughout the similar duration of 2023.

“Q3 2024 was a fruitful quarter for us. We delivered satisfactory financial results and executed well against our strategic priorities across all business lines,” commented Yan Tang, Chairman and CEO of Hi Workforce. ” Our overseas business reaccelerated growth thanks to improved operational efficiency. Our team made good progress in advancing the localization process and expanding our product offering. This gives us more confidence to continue to invest firmly in more diversified overseas markets.”

3rd Quarter of 2024 Monetary Effects

Internet revenues

Overall web revenues had been RMB2,674.7 million (US$381.1 million) within the 0.33 quarter of 2024, a shorten of 12.1% from RMB3,042.8 million within the 0.33 quarter of 2023.

Reside video carrier revenues had been RMB1,286.4 million (US$183.3 million) within the 0.33 quarter of 2024, a shorten of 16.0% from RMB1,530.8 million throughout the similar duration of 2023. The shorten was once basically resulting from our proactive operational changes to de-emphasize immense scale pageant occasions within the Momo app and a comfortable shopper sentiment within the new macro condition, and to a lesser level, Tantan pivoting clear of the fewer dating-centric reside video carrier.

Price-added carrier revenues basically come with digital reward revenues and club subscription revenues. Overall value-added carrier revenues had been RMB1,356.3 million (US$193.3 million) within the 0.33 quarter of 2024, a shorten of seven.5% from RMB1,466.7 million throughout the similar duration of 2023. The shorten was once basically because of our product changes to give a boost to Momo app’s ecosystem in addition to the affect of the macro economic system on shopper sentiment, and to a lesser extent, the subside in Tantan’s paying customers which was once in flip because of the subside in person bottom and the momentary affect of the product improve on pristine person paying conversions. The shorten was once in part offset via the income enlargement from the pristine standalone apps.

Cell advertising revenues had been RMB30.7 million (US$4.4 million) within the 0.33 quarter of 2024, in comparison to RMB30.7 million throughout the similar duration of 2023.

Internet revenues from the Momo area lowered from RMB2,743.1 million within the 0.33 quarter of 2023 to RMB2,462.3 million (US$350.9 million) within the 0.33 quarter of 2024, basically because of the shorten in web revenues from value-added carrier and reside video carrier on Momo app. The shorten was once in part offset via the income enlargement of the pristine standalone apps. Internet revenues from the Tantan area lowered from RMB295.0 million within the 0.33 quarter of 2023 to RMB212.1 million (US$30.2 million) within the 0.33 quarter of 2024, basically because of the shorten in web revenues from reside video carrier and value-added carrier.

Value and bills

Value and bills had been RMB2,286.2 million (US$325.8 million) within the 0.33 quarter of 2024, a shorten of seven.1% from RMB2,461.1 million within the 0.33 quarter of 2023. The shorten was once basically resulting from: (a) a shorten in income sharing with broadcasters matching to reside video carrier on Momo app and Tantan app, and a shorten in income sharing with digital reward recipients of digital reward carrier on Momo app. The shorten was once in part offset via an building up in income sharing with digital reward recipients for pristine standalone apps; and (b) a shorten in wage bills and share-based repayment bills, because of our steady optimization in staff prices and the newly granted percentage choices which had decrease truthful cost.

Non-GAAP price and bills (observe 1) had been RMB2,242.2 million (US$319.5 million) within the 0.33 quarter of 2024, a shorten of 6.6% from RMB2,401.6 million throughout the similar duration of 2023.

Source of revenue from operations

Source of revenue from operations was once RMB410.7 million (US$58.5 million) within the 0.33 quarter of 2024, in comparison to RMB621.8 million throughout the similar duration of 2023. Source of revenue from operations of the Momo area was once RMB397.5 million (US$56.7 million) within the 0.33 quarter of 2024, which lowered from RMB618.6 million within the 0.33 quarter of 2023. Source of revenue from operations of the Tantan area was once RMB14.7 million (US$2.1 million) within the 0.33 quarter of 2024, which lowered from RMB24.0 million within the 0.33 quarter of 2023.

Non-GAAP source of revenue from operations (observe 1) was once RMB454.7 million (US$64.8 million) within the 0.33 quarter of 2024, in comparison to RMB681.2 million throughout the similar duration of 2023. Non-GAAP source of revenue from operations of the Momo area was once RMB441.0 million (US$62.8 million) within the 0.33 quarter of 2024, which lowered from RMB674.5 million within the 0.33 quarter of 2023. Non-GAAP source of revenue from operations of the Tantan area was once RMB15.2 million (US$2.2 million) within the 0.33 quarter of 2024, in comparison to RMB27.6 million within the 0.33 quarter of 2023.  

Source of revenue tax bills

Source of revenue tax bills had been RMB95.3 million (US$13.6 million) within the 0.33 quarter of 2024, in comparison to RMB158.1 million within the 0.33 quarter of 2023. The shorten in source of revenue tax bills was once basically because of the decrease benefit within the 0.33 quarter of 2024, and to a lesser extent, decrease withholding tax charge because of our eligibility for a preferential tax charge because the starting of the age.

Internet source of revenue

Internet source of revenue was once RMB449.4 million (US$64.0 million) within the 0.33 quarter of 2024, in comparison to RMB542.2 million throughout the similar duration of 2023. Internet source of revenue from the Momo area was once RMB436.4 million (US$62.2 million) within the 0.33 quarter of 2024, in comparison to RMB540.0 million in the similar duration of 2023. Internet source of revenue from the Tantan area was once RMB14.4 million (US$2.1 million) within the 0.33 quarter of 2024, in comparison to RMB23.0 million within the 0.33 quarter of 2023.

Non-GAAP web source of revenue (observe 1) was once RMB493.3 million (US$70.3 million) within the 0.33 quarter of 2024, in comparison to RMB601.6 million throughout the similar duration of 2023. Non-GAAP web source of revenue from the Momo area was once RMB479.9 million (US$68.4 million) within the 0.33 quarter of 2024, which lowered from RMB595.9 million within the 0.33 quarter of 2023. Non-GAAP web source of revenue of the Tantan area was once RMB14.9 million (US$2.1 million) within the 0.33 quarter of 2024, in comparison to RMB26.6 million within the 0.33 quarter of 2023.

Internet source of revenue resulting from Hi Workforce Inc.

Internet source of revenue resulting from Hi Workforce Inc. was once RMB449.4 million (US$64.0 million) within the 0.33 quarter of 2024, in comparison to RMB546.4 million throughout the similar duration of 2023.

Non-GAAP web source of revenue (observe 1) resulting from Hi Workforce Inc. was once RMB493.3 million (US$70.3 million) within the 0.33 quarter of 2024, in comparison to RMB605.9 million throughout the similar duration of 2023.

Internet source of revenue in step with ADS

Diluted web source of revenue in step with ADS was once RMB2.46 (US$0.35) within the 0.33 quarter of 2024, in comparison to RMB2.75 within the 0.33 quarter of 2023.

Non-GAAP diluted web source of revenue in step with ADS (observe 1) was once RMB2.70 (US$0.38) within the 0.33 quarter of 2024, in comparison to RMB3.05 within the 0.33 quarter of 2023.

Money and money current

As of September 30, 2024, the Corporate’s money, money equivalents, momentary deposits, long-term deposits, momentary limited money and long-term limited money totaled RMB14,782.2 million (US$2,106.4 million), in comparison to RMB13,478.5 million as of December 31, 2023.

Internet money supplied via working actions within the 0.33 quarter of 2024 was once RMB341.0 million (US$48.6 million), in comparison to RMB582.5 million within the 0.33 quarter of 2023.

First 9 Months of 2024 Monetary Effects

Internet revenues for the primary 9 months of 2024 had been RMB7,926.5 million (US$1,129.5 million), a shorten of eleven.9% from RMB8,999.4 million in the similar duration of 2023.

Internet source of revenue resulting from Hi Workforce Inc. was once RMB852.3 million (US$121.5 million) for the primary 9 months of 2024, in comparison to RMB1,505.1 million throughout the similar duration of 2023. 

Non-GAAP web source of revenue resulting from Hi Workforce Inc. (observe 1) was once RMB1,002.4 million (US$142.8 million) for the primary 9 months of 2024, in comparison to RMB1,710.0 million throughout the similar duration of 2023.

Diluted web source of revenue in step with ADS was once RMB4.51 (US$0.64) throughout the primary 9 months of 2024, in comparison to RMB7.52 in the similar duration of 2023.

Non-GAAP diluted web source of revenue in step with ADS (observe 1) was once RMB5.31 (US$0.76) throughout the primary 9 months of 2024, in comparison to RMB8.53 in the similar duration of 2023.

Internet money supplied via working actions was once RMB1,216.4 million (US$173.3 million) throughout the primary 9 months of 2024, in comparison to RMB1,861.3 million in the similar duration of 2023.

Fresh Construction

Proportion repurchase program

On June 7, 2022, Hi Workforce’s board of administrators licensed a percentage repurchase program beneath which the Corporate might repurchase as much as US$200 million of its stocks as much as June 6, 2024 (the “Share Repurchase Program”). On March 14, 2024, Hi Workforce’s board of administrators authorized to amend the Proportion Repurchase Program to (i) prolong the promise of the Proportion Repurchase Program as much as June 30, 2026, and (ii) upsize the Proportion Repurchase Program in order that the Corporate is permitted to, from presen to presen, gain as much as an mixture of US$286.1 million significance of its stocks within the mode of ADSs and/or the common stocks of the Corporate within the evident marketplace and thru privately negotiated transactions, in restrain trades and/or via alternative legally permissible approach, relying on marketplace situations and according to appropriate regulations and laws.

As of December 9, 2024, the Corporate has repurchased 40.0 million ADSs for US$238.4 million at the evident marketplace beneath Proportion Repurchase Program introduced on June 7, 2022 and amended on March 14, 2024, at a mean acquire value of US$5.94 in step with ADS.

Trade Outlook

For the fourth quarter of 2024, the Corporate expects general web revenues to be between RMB2.56 billion to RMB2.66 billion, representing a shorten of 14.7% to 11.4% age over age. This forecast displays the Corporate’s new and initial perspectives available on the market and operational situations, which can be matter to switch.

Notice 1: Non-GAAP measures

To complement our consolidated monetary statements introduced according to U.S. most often permitted accounting rules (“GAAP”), we, Hi Workforce, virtue diverse non-GAAP monetary measures which are adjusted from probably the most related GAAP effects to exclude share-based repayment and such adjustment has disagree affect on source of revenue tax.

Reconciliations of our non-GAAP monetary measures to our U.S. GAAP monetary measures are proven in tables on the finish of this profits shed, which handover extra information about the non-GAAP monetary measures.

Our non-GAAP monetary data is supplied as alternative data to assistance buyers evaluate industry developments amongst other reporting sessions on a constant foundation and to reinforce buyers’ total figuring out of the historic and new monetary efficiency of our proceeding operations and our possibilities for the week. Our non-GAAP monetary data will have to be regarded as along with effects ready according to GAAP, however will have to now not be regarded as an alternative choice to or great to the GAAP effects. As well as, our calculation of the non-GAAP monetary measures could also be other from the calculation old via alternative corporations, and subsequently comparison could also be restricted.

Our non-GAAP data (together with non-GAAP price and working bills, source of revenue (loss) from operations, web source of revenue (loss), web source of revenue resulting from Hi Workforce Inc., and diluted web source of revenue in step with ADS) is adjusted from probably the most related GAAP effects to exclude share-based repayment and such adjustment has disagree affect on source of revenue tax. A limitation of the use of those non-GAAP monetary measures is that share-based repayment has been and can proceed to be for the foreseeable week vital habitual bills in our result of operations. We atone for such limitation via offering reconciliations of our non-GAAP measures to our U.S. GAAP measures. Refer to the reconciliation tables on the finish of this profits shed.

Convention Name

Hi Workforce’s control will host an profits convention name on Monday, December 9, 2024, at 7:00 a.m. U.S. Japanese Future (8:00 p.m. Beijing / Hong Kong Future on December 9, 2024).

Members can sign up for the convention name via navigating to:

https://s1.c-conf.com/diamondpass/10043397-w4b3f5.html. 

Upon registration, every player will obtain main points for the convention name, together with dial-in numbers, convention name passcode and a novel get entry to PIN. Please dial in 10 mins sooner than the decision is scheduled to start out.

A phone replay of the decision will probably be to be had later the belief of the convention name via December 16, 2024. The dial-in main points for the replay are as follows:

U.S. / Canada: 1-855-883-1031
Hong Kong: 800-930-639
Passcode: 10043397

Moreover, a reside and archived webcast of the convention name will probably be to be had at the Investor Members of the family division of Hi Workforce’s site at https://ir.hellogroup.com.

About Hi Workforce Inc.

We’re a participant in mainland China’s on-line social networking range. Via Momo, Tantan and alternative homes inside of our product portfolio, we permit customers to find pristine relationships, increase their social connections and form significant interactions. Momo is a cell utility that connects population and facilitates social interactions in accordance with location, pursuits and various on-line leisure actions. Tantan, which was once added into our crowd of packages via acquisition in Might 2018, is a social and relationship utility. Tantan is designed to assistance its customers to find and determine romantic connections in addition to meet attention-grabbing population. Initiation from 2019, now we have incubated a lot of alternative pristine apps, equivalent to Hertz, Soulchill, and Duidui, which goal extra area of interest markets and extra selective demographics.

For investor and media inquiries, please touch:

Hi Workforce Inc. 

Investor Members of the family
Telephone: +86-10-5731-0538
E-mail: [email protected] 

Christensen

In China
Ms. Xiaoyan Su 
Telephone: +86-10-5900-1548 
Electronic mail: [email protected] 

In U.S.
Ms. Linda Bergkamp
Telephone: +1-480-614-3004 
E-mail: [email protected] 

Secure Harbor Commentary

This information shed incorporates “forward-looking” statements inside the which means of Division 27A of the Securities Business of 1933, as amended, and Division 21E of the Securities Alternate Business of 1934, as amended, and as outlined within the Non-public Securities Litigation Reform Business of 1995. Those forward-looking statements come with however aren’t restricted to our control quotes, our monetary outlook for the fourth quarter of 2024, in addition to the volume of, timing, forms and investment resources for repurchases of our stocks beneath the percentage repurchase program.

Our forward-looking statements aren’t historic info however rather constitute best our trust referring to anticipated effects and occasions, a lot of which, via their nature, are inherently unsure and out of doors of our regulate. Our unedited effects and alternative cases might range, perhaps materially, from the predicted effects and occasions indicated in those forward-looking statements. Introduced effects for the 0.33 quarter of 2024 are initial, unaudited and matter to audit adjustment. As well as, we won’t meet our monetary outlook for the fourth quarter of 2024 and could also be not able to develop our industry within the way deliberate. We might also regulate our technique for enlargement.  Additionally, there are alternative dangers and uncertainties that might motive our unedited effects to range from what we these days look ahead to, together with the ones when it comes to our skill to conserve and develop our person bottom, our skill to draw and conserve sufficiently educated execs to help our operations, our skill to look ahead to and form pristine products and services and reinforce present products and services to fulfill the call for of our customers or consumers, the marketplace value of the Corporate’s conserve customery from presen to presen, the character of alternative funding alternatives introduced to the Corporate from presen to presen, the Corporate’s money flows from operations, common financial situations, and alternative components.  For alternative data on those and alternative remarkable components that might adversely impact our industry, monetary situation, result of operations, and possibilities, the following our filings with the U.S. Securities and Alternate Fee.

All data supplied on this press shed and within the attachments is as of the moment of the click shed. We adopt disagree legal responsibility to replace any forward-looking remark, whether or not on account of pristine data, week occasions or in a different way, later the moment of this shed, with the exception of as required via regulation. Such data speaks best as of the moment of this shed. 

SOURCE Hi Workforce Inc.