Shares of Hello Group (NASDAQ: MOMO) soared by more than 30% in morning trading on Thursday as the Chinese mobile social and entertainment platform delivered upbeat Q3 results.
Net revenues declined by 14% year over year to $454.5 million in Q3. Adjusted diluted net income per American Depository Share (ADS) was $0.37 in the third quarter, compared to RMB2.70 in the same period last year.
Analysts were expecting an adjusted diluted net income of $0.28 in Q3.
Monthly Active Users (MAU) on Momo application were 108.8 million in the month of September, versus 115.5 million in the same period last year. Total paying users was 8.4 million at the end of Q3, compared to 9.3 million for the same period last year.
In Q4, MOMO forecasted total net revenues in the range of RMB3.15 billion to RMB3.25 billion, indicating a decline of 14.3% to 11.5% year-over-year.
The company stated that this forecast reflected its “current and preliminary views on the market and operational conditions, which are subject to change, particularly as to the potential impact of the COVID-19 resurgence on the Chinese and global economies, as well as on users’ paying capabilities.”
Shares of MOMO have dropped more than 40% in the past year.
