Hello Group, the parent company of Chinese dating apps Momo and Tantan, has shared its Q3 financial results. It reports a 5.9% year-over-year decrease in net revenue for Q3, while noting a decrease in total paying users compared to the same period last year.
Looking at its unaudited financial performance in Q3 2023, the platform highlighted a decrease in net revenues, but an increase of its net income by around USD $10 million.
In regards to paying users, for Momo, it had 7.8 million total paying users this quarter, compared with 8.4 million in Q3 2022. For Tantan, it had 1.4 million paying users this quarter, compared with 2.0 million in Q3 2022.
The company also noted that Tantan had 15.7 million monthly active users in September 2023, compared with 20.9 million in September 2022.
While there has been decreases in these metrics, its financial report points out that the company’s cost and expenses reduced by 10% in Q3. This reduction came as a result of reduced revenue sharing with broadcasters related to live video service, reduced salary expenses, and decreased marketing expenses.
“We are pleased to report strong financial results for the third quarter and steady progress on various strategic priorities across all business lines” said Yan Tang, Chairman and CEO of Hello Group.
“The group level profitability continued to grow from the prior year period, thanks to our effective cost optimization and efficiency improvement initiatives, which enabled us to maintain the stability of Momo cash cow business, turn Tantan profitable as well as support the development of new endeavors”, he added.
Momo is a mobile app that connects users based on location, interests, and other online activities. Tantan, which Hello Group acquired in May 2018, is designed to help users find and establish romantic connections and meet interesting people.