Shares of Hello Group Inc. (NASDAQ: MOMO) surged 8.00% in pre-market trading on Thursday following the release of its impressive first-quarter 2025 financial results. The company, a leading player in Asia's online social networking space, reported earnings that significantly surpassed analyst expectations.
Hello Group's non-GAAP diluted earnings per ADS reached RMB 2.34 (US$0.32) in Q1 2025, marking a substantial increase from RMB 0.31 in the same period last year. This figure comfortably beat the FactSet analyst consensus of RMB 1.49. Despite a slight 1.5% year-over-year decrease in total net revenues to RMB 2,520.8 million (US$347.4 million), the company's profitability showed remarkable improvement.
The robust financial performance was primarily driven by the company's cost reduction efforts and efficiency improvements. Notably, Hello Group's net income attributable to shareholders soared to RMB 358.0 million (US$49.3 million), compared to just RMB 5.2 million in Q1 2024. The company's overseas business also showed strong growth, with revenues increasing by 71.9% year-over-year. Looking ahead, Hello Group provided an optimistic Q2 2025 revenue guidance of RMB 2.57 billion to RMB 2.67 billion, indicating confidence in its continued growth trajectory.