Hello Group Inc (MOMO) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the third-quarter 2024 Hello Group Inc earnings conference call.

女士們先生們，感謝你們的支持並歡迎參加 Hello Group Inc 2024 年第三季財報電話會議。

(Operator Instructions) Please note this conference is being recorded today.

（操作員說明）請注意今天正在錄製本次會議。

I would now like to hand the conference over to your first speaker today, Ms. Ashley Jing. Thank you. Please go ahead, ma'am.

現在我想將會議交給今天的第一位發言者，Ashley Jing 女士。謝謝。請繼續，女士。

Thank you, operator. Good morning and good evening everyone. Thank you for joining us today for Hello Group's third quarter 2024 earnings conference call. The company's results were released earlier today and are available on the company's IR website. On the call today are Mr. Tang Yan, CEO of the company; Ms. Zhang Sichuan, COO of the company; and Ms. Peng Hui, CFO of the company. They will discuss the company's business operations and highlights as well as the financials and guidance. They will all be available to answer your questions during the Q&A session that follows.

謝謝你，接線生。大家早安，晚上好。感謝您今天參加我們 Hello Group 的 2024 年第三季財報電話會議。該公司的業績於今天稍早發布，並可在該公司的投資者關係網站上查閱。今天接聽電話的是公司執行長唐岩先生；張四川女士，公司COO；本公司財務長彭慧女士。他們將討論公司的業務運營和亮點以及財務和指導。他們都將在接下來的問答環節回答您的問題。

Before we begin, I would like to remind you that this call may contain forward-looking statements made under the Safe Harbor provision of the Private Security Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements.

在我們開始之前，我想提醒您，本次電話會議可能包含根據 1995 年《私人安全訴訟改革法案》安全港條款做出的前瞻性陳述。此類陳述基於管理層當前的預期以及當前的市場和營運狀況，並涉及涉及已知或未知風險、不確定性和其他因素的事件，所有這些因素都難以預測，並且其中許多因素超出了公司的控制範圍，因此可能導致公司的實際結果、績效或成就與前瞻性陳述中的結果有重大差異。

For the information regarding this and other risks, uncertainties, and factors is included in the company's findings with the US Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required under the law.

有關此風險和其他風險、不確定性和因素的資訊包含在公司向美國證券交易委員會提供的調查結果中。除法律要求外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。

I will now pass the call over to our COO, Ms. Zhang Sichuan. Ms. Zhang, please.

我現在將電話轉接給我們的營運長張四川女士。有請張女士。

Thank you. Hello everyone. Thank you for joining our call.

謝謝。大家好。感謝您加入我們的通話。

I will now give you an update on our business on Q3 2024. Starting with an overview of our financial performance. For Q3 '24, total group revenue was RMB2.67 billion, close to the high end of our guidance, down 12% from the year-ago, with a smaller year-over-year decrease than in Q2. Adjusted operating income was RMB455 million, down 33% year-over-year, representing a margin of 17.0%, down 5.4 percentage points from year ago.

現在我將向您介紹我們 2024 年第三季的業務最新情況。首先概述我們的財務表現。24 年第三季度，集團總營收為人民幣 26.7 億元，接近我們指引的上限，年減 12%，年減幅小於第二季。調整後營業收入為人民幣4.55億元，較去年同期下降33%，利潤率為17.0%，較去年同期下降5.4個百分點。

Looking at the Momo app and standalone new apps, total revenue was RMB2.46 billion, down 10% year-over-year. The decrease was mainly due to the 16% year-over-year decline in Momo app resulting from our proactive product adjustments and the spending softness amid the weak macro economy. The decrease was partially offset by the accelerated 41% year-over-year revenue growth in standalone new apps driven by our overseas business.

從陌陌應用程式和獨立新應用程式來看，總收入為人民幣24.6億元，年減10%。這一下降主要是由於我們積極的產品調整以及宏觀經濟疲軟的情況下支出疲軟導致陌陌應用年減16%。這一下降被我們的海外業務推動的獨立新應用收入同比加速 41% 所部分抵消。

Adjusted operating income was RMB440 million, down 33% year-over-year, with a margin of 17.8%, down 5.9 percentage points year-over-year, mainly due to the decline in revenue and margin of the Momo app. And for Tantan, Q3 total revenue was RMB212 million, down 28% year-over-year, due to the decrease in the number of paying users. Adjusted operating income was RMB15.17 million, compared with RMB27.58 million from the year ago, representing a margin of 7.2%, down 2.2 percentage point year-over-year.

調整後營業收入為人民幣4.4億元，年減33%，利潤率為17.8%，年減5.9個百分點，主要是因為陌陌應用收入和利潤率下降。而探探方面，由於付費用戶數量減少，第三季總收入為人民幣2.12億元，較去年同期下降28%。調整後營業收入為人民幣1,517萬元，上年同期為人民幣2,758萬元，利潤率為7.2%，年減2.2個百分點。

Now I'll give you an update on the executing our strategic priorities for each business lines. Our main goal for the Momo app this year is to maintain the productivity of this cash cow business with a healthy social ecosystem.

現在，我將向您介紹執行每個業務線的策略重點的最新情況。今年我們對陌陌應用程式的主要目標是透過健康的社交生態系統來維持這項搖錢樹業務的生產力。

And Tantan's goal is to continue to improve the core dating experience and build an efficient business model that drives profitable growth. As for our new endeavors, our goal is to further enrich the brand portfolio further, push the business boundaries beyond Momo and Tantan, and build a long-term growth engine.

而探探的目標是持續改善核心交友體驗，建構高效的商業模式，推動獲利成長。對於我們新的努力，我們的目標是進一步豐富品牌組合，突破陌陌和探探的業務邊界，打造長期成長引擎。

I will now walk you through the details of our execution. First, on the Momo app product and operations in Q3, our product team focused on optimizing the user experience, and increasing the volume of effective user interactions. We introduced multiple voice-based one-on-one chat experiences in our legacy text-based chat greeting feature, to facilitate in-depth user interaction.

現在我將向您介紹我們執行的細節。首先，在第三季的陌陌應用程式產品和營運上，我們的產品團隊專注於優化使用者體驗，增加有效的使用者互動量。我們在傳統的基於文字的聊天問候功能中引入了多種基於語音的一對一聊天體驗，以促進深入的用戶互動。

As for the female users, we use women-favored mini social games and sign-in reward mechanism to increase female user engagement and stickiness. We also provide an AI assisted greeting tool to improve the quality of ice-breaking greeting messages for male users, thereby increasing the response rate and interactive experience for female users.

針對女性用戶，我們利用女性喜愛的迷你社交遊戲和簽到獎勵機制來提高女性用戶的參與度和黏性。我們也提供了AI輔助問候語工具，提升男性使用者破冰問候語的質量，進而提高女性使用者的回覆率和互動體驗。

On user acquisition front, we have optimized traditional channels over the past two years, bringing down acquisition cost and improving ROI. Therefore, we reduced overall marketing spending but keep traffic relatively stable. However, as the costs continue to decline, the potential to further optimize traditional channels is getting limited. So we've started exploring new ways to drive traffic from KOLs, for example, increasing brand exposure and user favorability by working with short-video influencers in new media.

在用戶獲取方面，過去兩年我們對傳統通路進行了最佳化，降低了獲取成本，提高了投資報酬率。因此，我們減少了整體行銷支出，但保持流量相對穩定。然而，隨著成本不斷下降，傳統通路進一步優化的潛力越來越有限。因此我們開始探索新的方式來吸引KOL的流量，例如透過與新媒體中的短影片影響者合作來提高品牌曝光度和用戶好感度。

In Q3, we increased our investment in KOL channels, and the numbers of videos released and played related to the Momo app increased significantly from quarter two. While deepening our collaboration with KOLs, we have also been refining our channel strategy.

第三季度，我們加大了對KOL管道的投入，陌陌相關影片的發布和播放數量較第二季度大幅增加。在深化與KOL合作的同時，我們也不斷完善通路策略。

Continuous cost optimization has given KOL marketing costs a clear advantage over traditional channels. Therefore, we plan to continue working with KOLs, including enhancing the selection and accumulation of influencers, further innovating ad materials, and optimizing onboarding and conversion strategies. This will help us further improve user acquisition ROI and strengthen Momo's branding.

持續的成本優化，讓KOL行銷成本較傳統通路有明顯優勢。因此，我們計劃繼續與KOL合作，包括加強網紅的篩選和累積、進一步創新廣告素材、優化引導和轉換策略。這將有助於我們進一步提高用戶獲取投資報酬率並增強陌陌的品牌形象。

To increase the proportion of female users, our user acquisition team continued to refine ad materials tailored to women, and collaborated with our products and operation teams to emphasize features favored by female users. In quarter three, the Momo app had 6.9 million paying users, a sequential decrease of 300,000.

為了提高女性用戶的比例，我們的獲客團隊不斷完善針對女性的廣告素材，並與我們的產品和營運團隊合作，強調女性用戶喜歡的功能。第三季度，陌陌應用程式的付費用戶為 690 萬，季減 30 萬。

This was mainly due to two factors: first, the VAS ecosystem adjustment reduced competition events and operational activities, resulting in a decrease in the number of paying users. Second, to improve profitability and pursue profitable growth, we further reduced the acquisition of small ticket paying users with negative ROI -- decreasing long-tail users.

這主要源自於兩個因素：一是增值服務生態調整減少了競爭事件和營運活動，導致付費用戶數量減少。其次，為了提高獲利能力，追求利潤成長，我們進一步減少了ROI為負的小額付費用戶的取得——長尾用戶減少。

Now on the productivity of Momo cash cow business. Momo's live streaming revenue was RMB1.22 billion, down 14% year-over-year and flat sequentially. The year-over-year decline was mainly due to our strategy to proactively reduce revenue-oriented large-scale competition events to maintain a healthy social ecosystem and the spending softness among top cohort users amid the weak macro economy.

現在談談陌陌搖錢樹業務的生產力。陌陌的直播收入為人民幣12.2億元，年減14%，與上一季持平。年比下降主要是由於我們主動減少以收入為導向的大型賽事活動以維持健康的社交生態系統的策略，以及在宏觀經濟疲軟的情況下頂級用戶的支出疲軟。

To mitigate the revenue pressure, our live streaming team focused on introducing innovative features to improve the product experience for mid-and-long-tail users. Meanwhile, we stepped up our live streaming promotion efforts in the Nearby People and the Nearby Post features, which resulted in a steady increase in live streaming penetration and paying ratio.

為了緩解收入壓力，我們的直播團隊專注於引入創新功能，以改善中長尾用戶的產品體驗。同時，我們加大了「附近的人」、「附近的貼文」功能的直播推廣力度，直播滲透率和付費比例穩步提升。

The reduction in high-prize competition events, combined with the increase in the sales of live streaming showroom costumes and PK props that do not require any revenue sharing, resulted in a slight sequential decrease in the revenue sharing ratio, which played a positive role in stabilizing the profit level of the cash cow business.

高額賽事賽事減少，加上不需要分成的直播秀場服裝、PK道具銷量增加，導致分成比例環比小幅下降，對盈利起到了積極作用。

Revenue from value-added services, excluding Tantan, totaled RMB1.22 billion, down 6% year-over-year but up 1% sequentially. VAS revenue from the Momo app was RMB828 million, down 17% year-over-year and 3% sequentially. Revenue from the standalone apps was RMB391 million, up 32% year-over-year and 10% sequentially.

增值服務收入（不含探探）總計人民幣12.2億元，較去年同期下降6%，但較上季成長1%。陌陌應用的增值服務收入為人民幣8.28億元，較去年同期下降17%，較上季下降3%。獨立應用收入為人民幣3.91億元，較去年成長32%，較上季成長10%。

The year-over-year decline in Momo app VAS revenue was mainly due to our proactive product and operational adjustments to mitigate regulatory risks, combined with the impact of spending softness amid the weak macro economy. In Q3, our product team promoted Chatroom in the Nearby People features and applied new algorithms to improve penetration. On the operational front, we organized operational activities that tie into holidays and festivals to boost consumer sentiment.

陌陌應用增值服務收入年減主要是由於我們為緩解監管風險而主動進行的產品和營運調整，以及宏觀經濟疲軟下支出疲軟的影響。第三季度，我們的產品團隊在「附近的人」功能中推廣了Chatroom，並應用了新的演算法來提高滲透率。營運方面，結合假日組織營運活動，提振消費者信心。

In addition to traditional audio features, we continued to introduce new voice-based gamified play such as Billiards and Matching Puzzle Game in Chatroom. Early data shows that the retention of these new mini-game-alike features is better than the average retention of Chatroom. We expect that the full rollout of new features will help increase Chatroom's user engagement rate.

除了傳統的音訊功能外，我們繼續推出新的基於語音的遊戲化遊戲，例如在撞球和聊天室中的配對益智遊戲。早期數據顯示，這些類似迷你遊戲的新功能的留存率高於 Chatroom 的平均留存率。我們預計新功能的全面推出將有助於提高Chatroom的用戶參與率。

Turning to Tantan, first on user trends and financial performance. Since the acquisition of Tantan, the number of organic new users has shown a long-term downward trend due to the lack of branding investment. And user growth was largely dependent on acquisition channels. Although the ROI-oriented channel investment reduction and cost control strategy over the past two years has effectively driven Tantan to achieve profitability, it also has put much pressure on Tantan's user base.

談到探探，首先是使用者趨勢和財務表現。自收購探探以來，由於缺乏品牌投入，有機新用戶數量呈現長期下降趨勢。用戶成長很大程度取決於獲取管道。雖然近兩年以ROI為導向的管道投入縮減和成本控制策略有效帶動探探實現盈利，但也給探探的用戶群帶來了不小的壓力。

The product upgrade that we launched in Q2 aims to explore effective solutions to improve the core dating experience and increase user retention. However, the upgrade is still in its early stages and has not had a significant impact on overall user retention. Due to the combination of the above factors, Tantan's user base has not yet stabilized. MAU decreased by 7% sequentially to 12 million in September. As of the end of Q3, Tantan had 940,000 paying users, down 60,000 sequentially, mainly due to the decline in MAU and the short-term impact of the product upgrade on new user paying conversions.

我們在第二季推出的產品升級旨在探索有效的解決方案來改善核心約會體驗並提高用戶保留率。不過，此次升級仍處於早期階段，並未對整體用戶保留率產生重大影響。由於以上因素綜合作用，探探的使用者基礎尚未穩定。9 月月活躍用戶數季減 7% 至 1,200 萬。截至三季末，探探付費用戶數為94萬，季減6萬，主要是由於MAU下降以及產品升級對新用戶付費轉換的短期影響。

Turning to Tantan's financials, quarter three total revenue was RMB212 million, down 28% year-over-year and 9% sequentially. The year-over-year decrease was due to the decline in payers, whereas overall ARPPU increased slightly. ARPPU of our live streaming business decreased significantly as we continued to de-emphasize live streaming, which has a low correlation with the dating experience.

探探的財務數據顯示，第三季總收入為人民幣2.12億元，較去年同期下降28%，季減9%。年比下降是由於付費用戶減少，而整體 ARPPU 略有上升。由於我們持續淡化與約會體驗相關性較低的直播業務，直播業務的 ARPPU 大幅下降。

Meanwhile, the VAS team drove the sales of SVIP and Black Gold memberships by subdividing members' paying features and redesigning the guidance narratives on paying experiences, which drove a slight increase in Tantan's overall ARPPU, partially alleviating revenue pressure. The sequential revenue decrease was mainly due to a decrease in the number of payers and slightly lower ARPPU due to the impact of the live streaming business.

同時，加值服務團隊透過細分會員付費功能、重新設計付費體驗引導敘述，拉動了SVIP和黑金會員的銷售，帶動探探整體ARPPU小幅提升，部分緩解了收入壓力。營收季減的主要原因是付費用戶數量減少以及直播業務影響下的ARPPU小幅下降。

In terms of business lines, VAS revenue was RMB137 million, down 19% year-over-year and 2% sequentially, while live streaming revenue was RMB66.55 million, down 45% year-over-year and 20% sequentially.

分業務來看，增值服務收入為人民幣1.37億元，年減19%，較上季下降2%；直播收入為人民幣6,655萬元，年減45%，季減20%。

Now, moving onto our efforts we made on Tantan's product and user acquisition, and the challenges we face. First, on the marketing and user acquisition front, to address the continuous decline in organic traffic caused by years of inadequate brand exposure, in quarter three, our marketing team selected online and offline events that's popular amongst young men and women, and organized various marketing activities at a controllable cost to promote Tantan's brand awareness.

現在來說說我們在探探的產品和用戶獲取方面所做的努力，以及我們面臨的挑戰。首先，在行銷和獲客方面，針對多年來品牌曝光不足導致的自然流量持續下降的問題，第三季度，我們的行銷團隊選擇了年輕男女喜歡的線上線下活動，組織了各種行銷活動以可控成本開展活動，提升探探品牌知名度。

For example, we set up interactive booths at music festivals, which we believe is the most effective way to reach young people offline, to guide them using Tantan to explore the music plus dating experience. We combined online community activities and KOL event marketing to expand brand influence. At the same time, we continued to accumulate influencer resources and optimized channel investment strategies, resulting in a significant sequential reduction in average KOL user acquisition cost.

例如，我們在音樂節上設立互動展位，我們認為這是線下接觸年輕人最有效的方式，引導他們使用探探探索音樂加約會的體驗。我們結合線上社群活動和KOL活動行銷，擴大品牌影響力。同時，我們持續累積網紅資源，優化通路投資策略，KOL平均獲客成本較上季大幅下降。

In terms of channels, we continued to reduce investment based on ROI, and further reduced costs from the transitional channels such as feeds and app stores. This, coupled with an increased proportion of investment in KOL channels that have the most competitive user acquisition cost, helped significantly reduce unit acquisition cost quarter-over-quarter. Therefore, we acquired more users with a slight sequential decrease in total channel investment, with lower unit acquisition cost and slightly higher new user ARPU.

通路方面，我們持續根據ROI減少投入，並進一步降低Feed、應用程式商店等過渡管道的成本。再加上用戶獲取成本最具競爭力的 KOL 管道的投資比例增加，有助於大幅降低單位獲取成本。因此，我們獲得了更多的用戶，通路總投入環比略有下降，單位獲取成本較低，新用戶 ARPU 略有上升。

Although channel ROI has not turned fully positive, we've seen improvement in ROI both on a year-over-year and quarterly basis to varying degrees.

儘管通路投資回報率尚未完全轉正，但我們已經看到投資回報率同比和季度都有不同程度的改善。

Next, update on Tantan's product and operations. In quarter two, based on the results of user surveys, we initiated a product upgrade to address two major problems that made users feel their experience was unrealistic: First, uncertainty about the authenticity of user identities; and, two, the lack of response to chats after matching.

接下來介紹探探的產品和營運狀況。第二季度，根據使用者調查結果，我們發起了產品升級，解決了使用者體驗不真實的兩大問題：一是使用者身分真實性不確定；第二，配對後聊天缺乏回應。

To address the first issue, such as profile pictures look too good to be true, limited information that lacks real-life references, and insufficient real person verification, our product team has increased the proportion of high-quality profiles on the platform by providing prompts to encourage users to enrich their profile information and guiding users in choosing suitable profile pictures.

針對第一個問題，頭像美得令人難以置信、資訊有限缺乏真實參考、真人驗證不足等問題，我們的產品團隊透過提示的方式，提高了平台優質頭像的比例鼓勵用戶豐富個人資料資訊並引導用戶選擇合適的個人資料圖片。

Meanwhile, we offered rewards such as extra swipes to users who completed their real-person verification to increase the overall real person verification rates. Regarding the lack of response to chats after matching, previously, we deliberately increased the exposure of some high-quality active female users in the algorithm to improve the experience of some male users who don't get matching opportunities easily.

同時，我們對完成真人認證的用戶提供額外刷卡等獎勵，以提高整體真人認證率。針對配對後聊天無反應的問題，先前我們在演算法中刻意增加了一些優質活躍女性用戶的曝光度，以改善一些不容易獲得配對機會的男性用戶的體驗。

While this approach increased the number of matches, unfortunately it also resulted in many matches that did not convert to chats and interactions in the later stages. This quarter, we reduced matching concentrations in our algorithm to address the issue of some female users not chatting after matching because they received too many matches.

這種做法雖然增加了匹配數量，但遺憾的是也導致了許多匹配在後期沒有轉化為聊天和互動。本季度，我們降低了演算法中的匹配集中度，以解決部分女性用戶因匹配過多而沒有聊天的問題。

At the product level, we tested several features aimed at improving the response rate, such as (spoken in foreign language) or love letter, which allows users to directly deliver a message to a favorite person every once in a while, improving interactive quality through this unique outreach. We expect this series of product trials to play a positive role in improving the response rate of female users. Product upgrades have enhanced matching quality and encouraged more in-depth conversations.

在產品層面，我們測試了一些旨在提高回覆率的功能，例如（外語）或情書，可以讓使用者每隔一段時間就直接給喜歡的人發訊息，透過以下方式提高互動品質：這種獨特的外展活動。我們期待這一系列的產品試用能對提高女性用戶的回應率有正面的作用。產品升級提升了匹配質量，促進了更深入的對話。

However, in the short term, this has a negative impact on Tantan's original business model, which was built around “look at pictures - swipe - pay to increase matching odds”. The decline in new user paying conversions was one of the reasons for the sequential decrease in Tantan's paying users.

但短期來看，這對探探原有的圍繞「看圖-刷卡-付費增加匹配賠率」的商業模式產生了負面影響。新用戶付費轉換下降是探探付費用戶季比下降的原因之一。

However, we believe that providing a good product experience to improve user retention and drive organic user growth is the foundation for Tantan to achieve long-term sustainable revenue and profit growth. We need to drive user growth based on profitability to sustain a long-term positive business cycle.

不過，我們相信，提供良好的產品體驗來提高用戶留存並推動用戶有機成長，是探探實現收入和利潤長期可持續成長的基礎。我們需要基於獲利能力來推動用戶成長，以維持長期的良性商業循環。

Lastly, in terms of our new endeavors, in Q3, total revenue of the new apps reached RMB418 million, with an accelerated growth rate of 41% year-over-year and 17% sequentially, mainly driven by our overseas business. Soulchill's revenue in Q3 achieved its fastest sequential growth of the past year, driven by improvement in our operational efficiency.

最後，從我們的新努力來看，第三季新應用總營收達到 4.18億元，年比加速成長41%，季減17%，主要由我們的海外業務推動。在營運效率提高的推動下，Soulchill 第三季的營收實現了去年最快的環比成長。

In Q3, our management, key product and tech team from Beijing HQs visited several key Soulchill markets. They worked with local teams to analyze user feedback and optimize product and technical solutions. We optimized the payment system and compensation system and strengthened our front-line staff's decision-making power, boosting work morale. We also optimized channel strategies for paying users to grow the paying ratio and the number of paying users.

第三季度，我們北京總部的管理階層、主要產品和技術團隊造訪了幾個主要的 Soulchill 市場。他們與當地團隊合作，分析用戶回饋並優化產品和技術解決方案。優化薪資體系與薪資體系，增強第一線員工決策權，提振工作士氣。優化付費用戶通路策略，提高付費比例、付費用戶數。

ARPPU increased significantly quarter-over-quarter, driven by various factors such as the introduction of new virtual gifts, enhancements to gameplay, and improvements in product design. Together, the improvements in paying users and ARPPU drove rapid sequential revenue growth. In Q3, we strengthened our supply-side collaboration with new agencies and an increase in the number of broadcasters that also played a positive role in driving revenue growth.

受到新虛擬禮物的推出、遊戲玩法的增強以及產品設計的改進等多種因素的推動，ARPPU 環比大幅增長。付費用戶和 ARPPU 的改善共同推動了營收的快速環比成長。第三季度，我們加強了與新機構的供給側合作以及廣播機構數量的增加，這對推動收入成長也發揮了積極作用。

With the gradual expansion of the business, Soulchill's revenue sharing ratio has trended slightly upward since the beginning of the year, mainly because the relatively low-margin business, including the Turkish market and the newly introduced live streaming business, grew much faster than the overall overseas market.

隨著業務的逐步擴張，年初以來Soulchill的收入分成比例呈現小幅上升的趨勢，主要是因為利潤率相對較低的業務，包括土耳其市場和新推出的直播業務，增速遠快於整體海外市場。

Our team has partially alleviated the pressure on GP margin caused by the increase in revenue sharing ratio by optimizing top-up channel costs, combined with our ROI-oriented user acquisition strategy, enabling us to enjoy operation leverage and fast profit growth despite the increase in channel investments.

我們的團隊透過優化充值通路成本，結合以ROI為導向的用戶獲取策略，部分緩解了收入分成比例提高帶來的毛利率壓力，使我們在收入增長的情況下仍能享受到營運槓桿和利潤的快速成長。

In Q3, we made good progress in advancing the localization process and expanding from voice-based features to live streaming. The growth in users and financial metrics has well reflected our team's recent efforts. We believe that by continuously strengthening localized operations and improving user and product experience, we can bring continuous growth to Soulchill and our other overseas products in the Mena region. We will commit more firmly to overseas business in the future.

第三季度，我們在推進本地化進程以及從基於語音的功能擴展到直播方面取得了良好進展。用戶和財務指標的成長很好地反映了我們團隊最近的努力。我們相信，透過不斷加強在地化營運、改善用戶和產品體驗，我們能夠為 Soulchill 以及我們在中東和北非地區的其他海外產品帶來持續成長。未來我們將更加堅定地致力於海外業務。

This concludes my remarks. Now let me pass the call over to Cathy for the financial review. Cathy?

我的發言到此結束。現在讓我把電話轉給凱西進行財務審查。凱茜？

Sure. (technical difficulty) Hello everyone, thank you for joining our conference call today. Now let me briefly take you through the financial review.

當然。（技術難度）大家好，感謝您今天參加我們的電話會議。現在讓我簡單帶大家回顧一下財務審查。

Total revenue for the third quarter 2024 was RMB2.67 billion, down 12% year on year, and a slight decrease of 0.6% quarter on quarter. Non-GAAP net income attributable to the company was RMB493.3 million, down 19% year on year, but up 10% from the last quarter.

2024年第三季總營收為人民幣26.7億元，年減12%，較上季減少0.6%。非美國通用會計準則歸屬於公司的淨利潤為人民幣4.933億元，年減19%，但較上季成長10%。

Looking into the key revenue items for Q3. Firstly, on live broadcasting. Total revenue from live broadcasting business for the third quarter of 2024 was RMB1.29 billion, down 16% year over year, and 1% quarter over quarter. The year over year decrease was largely attributable to a decline in the core Momo live streaming business, and to a lesser extent, the decrease in Tantan. The sequential decrease was due to the decline in Tantan live streaming, whereas Momo remained relatively stable.

研究第三季的主要收入項目。首先，在直播方面。2024年第三季直播業務總收入為人民幣12.9億元，較去年同期下降16%，季減1%。年比下降的主要原因是陌陌核心直播業務的下滑，其次是探探的下降。環比下降是由於探探直播的下滑，而陌陌則保持相對穩定。

In terms of segments, Momo live broadcasting revenue totaled RMB1.22 billion in the fourth quarter, down 14% year over year, and flat from last quarter. The year-over-year decrease was due to our proactive product and operational adjustments to scale back from revenue-oriented competition events and the soft spending sentiment amid the weak macro economy. Tantan's live broadcasting revenue amounted to RMB66.6 million, down 45% year over year and 20% quarter over quarter. The decrease was due to our strategic decision to de-emphasis the less dating-centric service.

分細分領域來看，陌陌第四季直播營收總計12.2億元，年減14%，與上季持平。年比下降的原因是我們積極進行產品和營運調整，以減少以收入為導向的競爭活動，以及宏觀經濟疲軟的情況下消費情緒疲軟。探探的直播收入為人民幣6,660萬元，年減45%，季減20%。減少的原因是我們的策略決定不再強調以約會為中心的服務。

Revenue from the value-added services for the third quarter of 2024 was RMB1.36 billion, down 8% from Q3 last year, but up 1% sequentially. The year-over-year decrease was due to a decline in both Momo and Tantan. However, the growth of standalone new apps partially offset the downward revenue pressure.

2024年第三季增值服務營收為人民幣13.6億元，較去年第三季下降8%，但季增1%。同比下降的原因是陌陌和探探都出現下滑。然而，獨立新應用程式的成長部分抵消了收入下降的壓力。

The sequential growth of VAS revenue was driven by the growth of new endeavors. Revenue from VAS on an ex-Tantan basis was RMB1.22 billion in the third quarter of 2024, down 6% from Q3 last year, but up 1% from the previous quarter. Momo app VAS revenue decreased 17% from Q3 last year due to our proactive product adjustments to manage regulatory risks, as well as a weak spending sentiment. And down 3% sequentially due to our continued product adjustment to de-emphasis agency dominated gamified play.

增值服務收入的環比增長是由新業務的成長所推動的。2024年第三季度，不含探探的增值服務收入為人民幣12.2億元，較去年第三季下降6%，但季增1%。由於我們為管理監管風險而積極調整產品，以及消費情緒疲軟，陌陌應用增值服務收入較去年第三季下降了 17%。由於我們不斷進行產品調整，不再強調代理商主導的遊戲化遊戲，季減了 3%。

Revenue from the standalone new apps, which is consolidated in Momo segment on P&L, continued to grow both on a year on year and quarter on quarter basis, driven by the improvement of the overseas business. Tantan's VAS revenue amounted to RMB137.2 million, down 19% year over year, and 2% sequentially. The decrease was due to a decline in paying users, which was in turn due to a decline in user base and the short-term impact of the user interface upgrade on paying conversion.

在海外業務改善的推動下，獨立新應用的收入在損益表中併入陌陌業務，與去年同期相比持續成長。探探的增值服務收入為人民幣1.372億元，較去年同期下降19%，較上季下降2%。下降的原因是付費用戶下降，而付費用戶下降又是因為用戶基數下降以及用戶介面升級對付費轉換的短期影響。

Now turning to cost and expenses. Non-GAAP cost of revenue for the third quarter of 2024 was RMB1.62 billion, compared to RMB1.77 billion for the same period last year. Non-GAAP gross margin for the quarter was 39.4%, down 2.4 percentage points from the same year ago period. The year over year decrease was due to several different factors: number one, higher payout ratio which was further due two factors: oversea business becoming a bigger percentage of total while bearing a higher payout ratio; and to a lesser degree, higher payout from Momo, the old cash cow business to better incentivize the agencies in view of a downward revenue trend.

現在轉向成本和費用。2024年第三季非公認會計準則營收成本為人民幣16.2億元，去年同期為人民幣17.7億元。該季度非 GAAP 毛利率為 39.4%，較去年同期下降 2.4 個百分點。同比下降是由幾個不同的因素造成的：第一，派息率較高，這進一步歸因於兩個因素：海外業務佔總數的比例越來越大，派息率也較高；第二，派息率上升。在較小程度上，老牌搖錢樹業務陌陌的派息增加，以更好地激勵代理商，以應對收入下降的趨勢。

Number two, deleverage, where infrastructure and personnel and other relatively-fixed costs take up a higher percentage of revenues. Number three, payment channel costs represent a higher percentage of total revenues as revenue mix shifts towards overseas business, where channel fees as a percentage of revenues are much higher than those for domestic business.

第二，去槓桿化，基礎設施和人員以及其他相對固定的成本佔收入的比例更高。第三，隨著收入結構轉向海外業務，支付通路成本佔總收入的比例更高，通路費用佔收入的比例遠高於國內業務。

Non-GAAP R&D expenses for the third quarter was RMB185.4 million, compared to RMB186.7 million for the same period last year, or a 1% decrease year over year. The decrease was due to the continuous optimization in personnel and infostructure costs. Non-GAAP R&D expenses as a percentage of revenue was 7% compared with 6% from the year-ago period.

第三季非公認會計準則研發費用為人民幣1.854億元，去年同期為人民幣1.867億元，較去年同期下降1%。下降的原因是人員和資訊結構成本的持續優化。非 GAAP 研發費用佔營收的百分比為 7%，去年同期為 6%。

We ended the quarter with 1,355 total employees, of which 280 are from Tantan, compared to 1,410 total employees, of which 314 from Tantan a year ago. The R&D personnel as a percentage of total employee for the group was 61% compared with 64% Q3 last year.

截至本季末，我們的員工總數為 1,355 名，其中 280 名來自探探，而一年前的員工總數為 1,410 名，其中 314 名來自探探。集團研發人員佔員工總數的比例為61%，去年第三季為64%。

Non-GAAP sales and marketing expenses for the third quarter was RMB350.1 million or 13% of total revenue, compared to RMB368.1 million or 12% of total revenue for the same period last year. Sales and marketing expenses decreased 5% year-on year in absolute RMB amount.

第三季非公認會計準則銷售和行銷費用為人民幣 3.501 億元，佔總收入的 13%，而去年同期為人民幣 3.681 億元，佔總收入的 12%。銷售及行銷費用以人民幣絕對值計算年減5%。

Non-GAAP G&A expenses was RMB85.2 million for the third quarter 2024, compared to RMB76.5 million for the same quarter last year, both representing roughly 3% of total revenue.

2024 年第三季的非 GAAP 一般及行政費用為 8,520 萬元，去年同期為 7,650 萬元，兩者均約佔總收入的 3%。

Non-GAAP operating income was RMB454.7 million, a decrease of 33% from Q3 2023, down 5% from the previous quarter. Non-GAAP operating margin for the quarter was 17%, down 5.4 percentage points from the same period last year, and 0.7 percentage points from the previous quarter. Non-GAAP OpEx as a percentage of total revenue was 23%, an increase from 21% for Q3 2023, and flat from Q2 this year.

非美國通用會計準則營業收入為人民幣 4.547 億元，較 2023 年第三季下降 33%，季減 5%。本季非美國通用會計準則營運利潤率為 17%，較去年同期下降 5.4 個百分點，較上一季下降 0.7 個百分點。非 GAAP 營運支出佔總收入的百分比為 23%，高於 2023 年第三季的 21%，與今年第二季持平。

Now briefly on income tax expenses. Total income tax expense was RMB95.3 million for the quarter, with an effective tax rate of 17%. In Q3, the company accrued withholding income tax of RMB15.2 million, which is 5% of undistributed profit generated by our WFOE. Without the withholding tax, our estimated non-GAAP effective tax rate was around 14% in the third quarter.

現在簡單介紹一下所得稅費用。本季所得稅費用總額為人民幣9,530萬元，有效稅率為17%。第三季度，公司預提預扣所得稅為人民幣1,520萬元，相當於我們外商獨資企業產生的未分配利潤的5%。如果不考慮預扣稅，我們估計第三季的非公認會計原則有效稅率約為 14%。

Now turning to balance sheet and cash flow items. As of September 30, 2024, Hello Group's cash, cash equivalents, short-term deposits, long-term deposits, short term investments, and restricted cash totaled RMB14.78 billion compared to RMB13.48 billion as of December 31, 2023. Net cash provided by operating activities in the third quarter 2024 was RMB341.0 million.

現在轉向資產負債表和現金流量項目。截至2024年9月30日，哈羅集團的現金、現金等價物、短期存款、長期存款、短期投資和限制性現金總計人民幣147.8億元，而截至2023年12月31日為人民幣134.8億元。2024年第三季經營活動提供的現金淨額為人民幣3.410億元。

Lastly on business outlook. We estimated our fourth quarter revenue to come in the range from RMB2.56 billion to RMB2.66 billion, representing a decrease of 14.7% to 11.4% year on year, or a decrease of 4.3% to 0.5% quarter over quarter. At segment level, for Q4 '24, on a sequential basis, we expect Momo revenue to decrease mid to low-single digit. On the Tantan side, we expect revenue to decrease low single digit.

最後是商業前景。我們預期第四季營收為人民幣25.6億元至人民幣26.6億元，年減14.7%至11.4%，季減4.3%至0.5%。在細分市場層面，24 年第 4 季度，按順序計算，我們預計陌陌收入將出現中低個位數下降。在探探方面，我們預期收入將下降低個位數。

Please be mindful that this forecast represents the company's current and preliminary view on the market and operational conditions, which are subject to changes.

請注意，該預測代表了公司對市場和營運狀況的當前初步看法，可能會發生變化。

That concluded our prepared portion of today's discussion. With that, let me turn the call back to Ashley to start Q&A. Ashley, please.

我們今天討論的準備部分就到此結束了。接下來，讓我將電話轉回給 Ashley，開始問答。阿什莉，請。

(Event Instructions)

（活動須知）

Okay. So operator, we're ready for questions. Thank you.

好的。接線員，我們準備好回答問題了。謝謝。

(Operator Instructions) Raphael Chen, BOCI Research.

（操作員指示） Raphael Chen，中銀國際研究部。

(spoken in foreign language) I will translate myself. Thanks for taking my question. Congrats on the strong growth momentum of overseas business. Could management share the main contributors driving the overseas business growth in the third quarter? Also could we have the latest revenue and the profit figures for the overseas business and the growth outlook for the fourth quarter and 2025? Cheers.

（用外語發言）我自己翻譯。感謝您提出我的問題。祝賀海外業務強勁成長勢頭。管理階層能否分享一下推動第三季海外業務成長的主要因素？還有海外業務最新的營收和利潤數據以及第四季和2025年的成長前景嗎？乾杯。

(spoken in foreign language)

（用外語說）

Let me translate. The sequential growth of our overseas business in the first half of the year was slower than we had anticipated at the beginning of 2024, primarily due to the need to address many areas for improvement in local operations which required more time than we thought. Revenue growth accelerated in the third quarter, thanks to the optimization of cross-border personnel management. As a result, the operational efficiency of the Soulchill team got significantly improved.

讓我翻譯一下。上半年我們海外業務的環比成長低於我們在 2024 年初的預期，主要是因為需要解決許多本地營運領域的改進問題，這需要比我們想像的更多的時間。第三季營收成長加快，得益於跨境人員管理的最佳化。如此一來，Soulchill 團隊的營運效率就已經顯著提升了。

Our strategy of empowering local staff in product operations will help us better address the unique social preferences and need of users from different cultural backgrounds. By leveraging the strength of our local team, we have been able to strengthen cooperation with the local supply side. And with the rapid growth of our overseas business, our operational markets and regions are also becoming more diverse.

我們在產品營運中賦能本地員工的策略將幫助我們更好地滿足來自不同文化背景的使用者獨特的社會偏好和需求。透過發揮本地團隊的優勢，我們加強了與當地供應方的合作。而隨著我們海外業務的快速成長，我們的營運市場和區域也變得更加多元化。

Therefore, we will continue to optimize cross-border management, establish offices in key markets, recruit more local talent, and drive continuous growth in revenue and profit through robust focus on localization.

因此，我們將繼續優化跨境管理，在重點市場設立辦事處，招募更多本地人才，透過大力本地化推動收入和利潤的持續成長。

(spoken in foreign language)

（用外語說）

Let me translate first. So in the third quarter, total revenue of the new apps reached close to [RMB420 million](corrected by company after the call) with Soulchill contributing 60% to 70%. And Soulchill has now surpassed the revenue scale of Tantan. And its revenue in the third quarter was up more than 50% year on year. And as we strengthen our localized operation capabilities, we expect Soulchill to continue to grow rapidly next year.

我先翻譯一下。因此，第三季新應用的總收入接近[人民幣4.2億元]（公司在電話會議後更正），其中Soulchill貢獻了60%至70%。而Soulchill現在已經超越了探探的營收規模。第三季營收年增超過50%。隨著我們加強在地化營運能力，我們預計 Soulchill 明年將繼續快速成長。

Meanwhile, we expect our other two Middle Eastern apps to enter into a period of rapid revenue growth and possibly break-even next year. The incremental revenue and profit generated by our overseas business partially offset the decline in revenue and profit from the Momo app. We believe that compared with our domestic business which face many uncertainties such as the macroeconomic and regulatory issues, the growth potential and trajectory of our overseas business are relatively clear.

同時，我們預計我們的另外兩款中東應用程式將進入收入快速增長期，並可能在明年實​​現收支平衡。海外業務產生的增量收入和利潤部分抵消了陌陌應用收入和利潤的下降。我們認為，與面臨宏觀經濟和監管問題等諸多不確定性的國內業務相比，海外業務的成長潛力和軌跡相對清晰。

This is particularly true in the social field where we have distinct product and operational advantages. That's why we have prioritized the allocation of human and financial resources to the operation and expansion of our overseas business in recent years.

尤其是在社交領域，我們有明顯的產品和營運優勢。這就是為什麼我們近年來優先將人力和財力資源配置到海外業務的營運和拓展。

We believe that our overseas business will play an increasingly significant role in driving the group's revenue and profit in the future, which will be clearly reflected next year. And as for the financial outlook, I will leave that to Cathy.

我們相信，未來海外業務對集團收入和利潤的推動作用將越來越大，這將在明年得到明顯體現。至於財務前景，我會把它留給凱西。

Okay. (technical difficulty) outlook. In our Q4 guidance, we are assuming Soulchill to grow probably by 40%-plus year over year. That would close out 2024 with a year over year growth rate of close to 50%. As the app gets bigger, obviously, the growth rate could slow down a little bit.

好的。 （技術難度）展望。在我們的第四季度指導中，我們假設 Soulchill 的同比增長可能超過 40%。到 2024 年，年成長率將接近 50%。顯然，隨著應用程式變得越來越大，成長率可能會稍微放緩。

However, our two other social entertainment apps in the Middle East, North Africa area have been ramping up rapidly recently. We do expect these two apps to start bearing fruits and contributing to both the top line and bottom line in a meaningful way in 2025. With these three overseas apps, we believe overseas revenues will continue to grow pretty fast and hopefully could accelerate its growth rate next year.

不過，我們在中東、北非地區的另外兩款社交娛樂應用程式最近卻成長迅速。我們確實預計這兩款應用程式將在 2025 年開始結出果實，並以有意義的方式為營收和利潤做出貢獻。憑藉這三款海外應用，我們相信海外收入將繼續快速成長，並有望在明年加速成長。

The other thing worth mentioning is that if you look at the way we manage our overseas business, we are not pursuing just topline growth at the expense of bottom line. We always want what we call profitable growth. That means next year as overseas apps continue to grow at top line, bottom line performance for these three apps are going to continue to improve as well. Hopefully that answers your question.

另一件值得一提的事情是，如果你看看我們管理海外業務的方式，你會發現我們不是為了追求營收成長而犧牲利潤。我們總是想要所謂的獲利成長。這意味著明年，隨著海外應用程式的營收持續成長，這三款應用程式的獲利表現也將持續提高。希望這能回答你的問題。

I'm handing back to Ashley for next question.

我將把下一個問題交給阿什利。

Operator, next question, please.

接線員，請下一個問題。

Jenny Wang, UBS.

王珍妮，瑞銀。

(spoken in foreign language)

（用外語說）

So let me translate myself. So thanks management for taking my question and congrats on the good results. My question is regarding the outlook for our cash cow business. So Momo has been ongoing product adjustment for a year since the end of the quarter last year. Could you please share whether these adjustments will continue going forward, and when we might see a recovery in growth post-quarter on quarter and year on year? And how should we view the profit to sustainability of the cash cow business going forward? So thank you.

那我自己翻譯一下吧。因此，感謝管理層提出我的問題，並祝賀取得的良好成果。我的問題是關於我們的搖錢樹業務的前景。所以從去年季度末開始，陌陌已經持續了一年的產品調整。您能否分享一下這些調整是否會繼續下去，以及我們何時會看到季後環比和同比增長的復甦？我們該如何看待未來搖錢樹業務的利潤和永續性？所以謝謝你。

(spoken in foreign language)

（用外語說）

Okay. So last year, we implemented operational adjustments to live streaming and audio- and video-based art experiences with a focus on reducing revenue-oriented competition events. And although this impacted our financial performance, it has played a positive role in reducing revenue concentration and creating a more stable and healthier social ecosystem for our cash cow business.

好的。所以去年我們對直播和影音藝術體驗進行了營運調整，重點是減少以收入為導向的競賽活動。雖然這對我們的財務表現產生了影響，但對於降低收入集中度、為我們的搖錢樹業務打造更穩定、更健康的社會生態系統起到了積極的作用。

So we remain committed to this operational strategy in the fourth quarter and further deemphasizing high revenue competition events. For the live streaming business, this means that the incremental revenue from the year-end competition event will be very limited compared to the previous years. And in the audio- and video-based VAS experiences, we believe there's still room for further optimization of some agency-dominant use cases and gamified play. So we will continue to fine tune our operation in the fourth quarter.

因此，我們在第四季仍然致力於這項營運策略，並進一步淡化高收入競爭事件。對於直播業務來說，這意味著年終賽事帶來的增量收入相比往年將非常有限。而在基於音訊和視訊的增值服務體驗中，我們認為一些代理主導的用例和遊戲化玩法仍有進一步優化的空間。所以我們第四季會繼續微調我們的營運。

(spoken in foreign language)

（用外語說）

As Sic mentioned earlier, in order to offset the decline in revenue from competition events, we have increased the monetization of mid- to long-term paying users in live streaming and value-added services experiences. So we rolled out more interactive features and content suitable for this cohort of users and increasing the penetration and paying ratio while driving steady growth in organic revenue.

正如Sic先前提到的，為了抵銷賽事賽事收入的下降，我們在直播和增值服務體驗方面加大了中長期付費用戶的變現力度。因此，我們推出了更多適合這群用戶的互動功能和內容，提高滲透率和付費率，同時推動自然收入的穩定成長。

So our primary operational focus in the current macro economy and regulatory environment is to enhance our platform's ability to accommodate mid- to long-term users and expand their revenue scale.

所以在當前的宏觀經濟和監管環境下，我們首要的營運重點是增強平台對中長期用戶的容納能力，擴大他們的收入規模。

(spoken in foreign language)

（用外語說）

After about a year of adjustments, we are quite satisfied with the overall content and ecosystem of the Momo app. I believe this has laid a solid foundation for us to maintain the productivity of the cash cow business next year. As for the specific financial outlook, I will leave that to Cathy.

經過一年左右的調整，我們對陌陌應用的整體內容和生態還是比較滿意的。我相信這為我們明年保持搖錢樹業務的生產力奠定了堅實的基礎。至於具體的財務前景，我將留給Cathy。

Okay. Before I talk about 2025, perhaps, let me first quickly review the way how we have been managing the productivity of the cash cow business throughout last year and then point to all the directions we move toward next year.

好的。在談論 2025 年之前，也許讓我先快速回顧一下去年我們管理搖錢樹業務生產力的方式，然後指出我們明年的所有發展方向。

The biggest theme of 2024 for the cash cow was to deemphasize the promotional/stimulating agency-driven events in order to improve the healthiness of our ecosystem in view of the current macro environment, both from a regulatory and from an economic point of view. As we took different steps to enable such operational changes, the revenue has been gradually coming down.

對於搖錢樹來說，2024 年最大的主題是不再強調促銷/刺激性機構驅動的活動，以從監管和經濟角度考慮當前的宏觀環境，改善我們生態系統的健康狀況。隨著我們採取不同的措施來實現此類營運變革，收入逐漸下降。

So in order to maintain the productivity of the cash cow business, we have also been taking measures to control spending more tightly. At the beginning of 2024, the original plan was to put all the adjustments into Q1 and make the revenue impact one off. However, as we move deeper into the year, it turned out that we did a pretty good job in cost control and thus over delivered in terms of profits.

所以為了維持搖錢樹業務的生產力，我們也一直在採取措施，更嚴格地控制支出。2024年初，原計劃將所有調整放到第一季，一次性對營收產生影響。然而，隨著今年的深入，事實證明我們在成本控制方面做得相當好，因此在利潤方面實現了超額交付。

As a result, the team decided to take this opportunity to continue to put in additional adjustment measures to scale back on bonus-driven promotional events in the second half. And in turn, we saw the top line of the cash cow business continuing to trend downward throughout 2024 from Q2 onwards.

因此，團隊決定以此為契機，繼續推出額外的調整措施，減少下半年獎金驅動的促銷活動。反過來，我們看到搖錢樹業務的收入從第二季開始在 2024 年全年持續呈下降趨勢。

With that in mind, looking out to 2025, well, first of all, I won't be able to talk about next year in very quantitative terms before we finalize the financial planning early next year. But as in previous years, there are several points to share to help you think about the performance of the cash cow at least trend wise for the coming few quarters.

考慮到這一點，展望 2025 年，首先，在我們明年初敲定財務規劃之前，我將無法以非常定量的方式談論明年。但與前幾年一樣，有幾點可以分享，以幫助您至少從未來幾季的趨勢角度思考搖錢樹的表現。

First of all, as Tang Yan said, after a year of pretty significant operational adjustments at the expense of top line, we now feel pretty good on the ecosystem front. And therefore currently, we do not see additional adjustments needed for next year. If you think about what that translates into top-line performance next year -- how that translated into top-line performance next year, Q1 2025 Momo is still going to see seasonality which would cause a sequential decline.

首先，正如唐岩所說，經過一年相當大的營運調整，犧牲了營收，我們現在在生態系統方面感覺非常好。因此，目前我們認為明年不需要進行額外的調整。如果你考慮一下這會轉化為明年的營收業績——如何轉化為明年的營收業績，那麼 2025 年第一季陌陌仍將面臨季節性因素，這將導致環比下降。

And then Q2, there will be a seasonal bounce back, since we do not expect any deliberate operational efforts to demonetize next year, how significant the bounce back in Q2 2025 will really depend on macroeconomic factor that would play substantially into the consumer spending sentiment on our platform.

然後，第二季將出現季節性反彈，因為我們預計明年不會有任何刻意的非貨幣化營運努力，因此2025 年第二季的反彈幅度有多大將真正取決於宏觀經濟因素，這些因素將極大地影響消費者的支出情緒我們的平台。

So if you put all these analysis together, what we can come down to is that because the revenue has been trending downwards in the second half of 2024, next year in terms of year-over-year comparison, it is quite likely that cash cow will continue to see revenue decline on a year over year basis.

所以如果你把所有這些分析放在一起，我們可以得出的結論是，由於2024年下半年收入一直呈下降趨勢，明年同比比較，搖錢樹很可能收入將繼續同比下降。

In 2024, if you throw in the midpoint of our Q4 guidance, it looks like that the Momo segment, which by the way included both the cash cow business and the oversea apps, that whole Momo segment will likely still see a revenue decline in the low-teen range that reflects both volunteer demonization efforts on regulatory concerns and macro headwinds.

到 2024 年，如果你考慮到我們第四季度指引的中點，那麼陌陌細分市場（順便說一下，其中包括搖錢樹業務和海外應用程式），整個陌陌細分市場的收入可能仍會下降。低位數範圍反映了志工在監管問題和宏觀阻力方面的妖魔化努力。

For 2025 because on the regulatory side, it seems that we are now in a pretty safe place and the oversea, as Tang Yan said a little bit earlier, the oversea growth will continue to push the top line up for Momo segment. Assuming macro status quo continues, the worldwide decrease should significantly narrow from what we saw in 2024.

對於2025年，因為在監管方面，我們現在似乎處於一個相當安全的地方，而在海外，正如唐岩早些時候所說，海外增長將繼續推動陌陌業務的營收成長。假設宏觀現狀持續下去，全球的降幅應較 2024 年大幅收窄。

But of course, assuming macro status quo is going to continue is a big assumption. We will see how things play out next year. But of course, even assuming a substantial narrow down in worldwide decrease ratio in absolute dollar amount, the cash cow may still face a pretty significant topline decrease in 2024. So we are going to have to see what we can do on cost control front to mitigate impact on bottom line.

但當然，假設宏觀現狀將持續下去是一個很大的假設。我們將看看明年事情會如何發展。但當然，即使假設全球絕對美元金額下降率大幅收窄，現金牛在 2024 年仍可能面臨相當大的收入下降。因此，我們必須看看在成本控制方面可以採取哪些措施來減輕對利潤的影響。

On that specific point, I shall have more color to share as we finish our financial planning at the beginning of 2024, when we have our Q4 earnings call early next year. So that is basically the color that I can give on the productivity of the cash cow.

關於這一點，當我們在 2024 年初完成財務規劃時，我將有更多的資訊來分享，屆時我們將在明年初召開第四季度財報電話會議。這基本上就是我可以對搖錢樹生產力給的顏色。

Now back to Ashley for next question.

現在回到阿什利回答下一個問題。

Hi operator, next question, please.

您好，接線員，請下一個問題。

Thomas Chong, Jefferies.

托馬斯莊，杰弗里斯。

(spoken in foreign language)

（用外語說）

Good evening. Thanks, management for taking my question. My question is about Tantan. Just now management mentioned in prepared remarks that there are various updates to our product offerings but also highlight the impact is yet to be seen as on the user retention side. And also we are seeing user scale and revenue remains soft. My question is about which product ideas or solutions, management gets more positive? How long does it take about the upgrade and the time line? And how should we think about a prime time Q4 and 2025 outlook? Thank you.

晚安.謝謝管理層回答我的問題。我的問題是關於探探的。剛才管理階層在準備好的發言中提到，我們的產品有各種更新，但也強調了對使用者保留的影響尚待觀察。我們也看到用戶規模和收入仍然疲軟。我的問題是，管理階層對哪些產品創意或解決方案更加積極？升級需要多長時間以及時間軸？我們該如何看待第四季的黃金時段和 2025 年的前景？謝謝。

(spoken in foreign language)

（用外語說）

Okay, let me give you more details regarding your question. For Tantan's goal is to continue to improve the quality experience and build an efficient business model that drives profitable growth. And currently, Tantan needs to address two issues. One is product experience and the other is business model. So in terms of product, some users feel the experience is unrealistic and chat interaction after matching is quite low and therefore, although users have a real strong demand for dating, but Tantan cannot really meet the needs of many of our users.

好的，讓我為您提供有關您的問題的更多詳細資訊。對探探來說，目標是持續提升品質體驗，建構高效的商業模式，推動獲利成長。而目前探探需要解決兩個問題。一是產品體驗，二是商業模式。所以從產品上來說，有的用戶感覺體驗不真實，匹配後的聊天互動性很低，所以雖然用戶對於交友的需求確實很強烈，但是探探並不能真正滿足我們很多用戶的需求。

And the second issue is insufficient branding and low organic traffic, which makes unit acquisition cost too high to form a positive business cycle to achieve a profitable growth. So we believe that we must first improve the product experience to a reasonable level and then develop a new sustainable business model.

第二個問題是品牌不夠，有機流量低，導致單位獲取成本過高，無法形成良性商業循環以實現獲利成長。所以我們認為首先要把產品體驗提升到合理的水平，然後開發新的可持續的商業模式。

(spoken in foreign language)

（用外語說）

So over the past two quarters and for the next quarter or two, we have focused and we will continue to focus on addressing two user experience issues: one is users' uncertainty about the authenticity of the match's identity and the other is the lack of response to chat post-matching.

因此，在過去兩個季度以及未來一兩個季度，我們一直並將繼續重點解決兩個用戶體驗問題：一個是用戶對比賽身份真實性的不確定性，另一個是缺乏回應匹配後聊天。

Our team encouraged the users to enrich their profile information and guide them in choosing the proper style for their profile pictures. And these efforts significantly increased the proportion of high-quality profiles on our platform and to effectively increase the overall real-person verification rate.

我們的團隊鼓勵用戶豐富他們的個人資料信息，並指導他們選擇合適的個人資料圖片風格。這些努力顯著提高了我們平台上優質資料的比例，並有效提高了整體的真人驗證率。

We offered rewards such as extra swipes to users who completed the real-person verification process. And previously, paying users had a clear advantage over non-paying users in terms of product experience. And moving forward, our goal is to give our verified users a distinct user experience advantage over those non-verified users and to encourage more users to complete the verification process.

我們為完成真人驗證流程的用戶提供額外刷卡等獎勵。而此前，付費用戶在產品體驗上相對於非付費用戶有著明顯的優勢。展望未來，我們的目標是為經過驗證的用戶提供比未經驗證的用戶明顯的用戶體驗優勢，並鼓勵更多用戶完成驗證過程。

While we have made significant progress in terms of user identity authenticity, we still need to do more to improve chat interaction rates in the long term. Fortunately, we feel that the current approach is on the right track.

雖然我們在用戶身份真實性方面取得了重大進展，但從長遠來看，我們仍然需要採取更多措施來提高聊天互動率。幸運的是，我們認為目前的做法是正確的。

(spoken in foreign language)

（用外語說）

We plan to have all testing underway by the end of the year and wrap up this round of upgrade in the first half of next year.

我們計劃在今年年底前完成所有測試，並在明年上半年完成本輪升級。

(spoken in foreign language)

（用外語說）

Since Tantan hasn't entered a positive business cycle yet, we expect the decline in users and revenue to continue for the next two quarters. And to drive Tantan's recovery, here are some thoughts: first, by improving Tantan's basic dating experience and especially user identity authenticity, we expect user base to gradually stabilize even without increasing marketing investment.

由於探探尚未進入良性景氣週期，我們預期未來兩個季度使用者和營收將持續下滑。為了推動探探的復甦，我們有一些想法：首先，透過改善探探的基礎交友體驗，特別是用戶身份的真實性，我們預計即使不增加行銷投入，用戶群也會逐漸穩定。

And secondly, after essential product adjustments are made, we will invest more in branding initiatives to drive organic traffic. Third, we will continue to explore and develop innovative product features that improve user experience while identifying value-added products that increase ARPU.

其次，在進行必要的產品調整後，我們將在品牌推廣活動上投入更多資金，以推動自然流量。第三，我們將持續探索和開發創新的產品功能，改善使用者體驗，同時辨識增加ARPU的加值產品。

China's dating market is very large with a significant unmet needs. We will continue to explore this space to capture growth opportunities.

中國的交友市場規模龐大，需求未被滿足。我們將繼續探索這一領域，以抓住成長機會。

(spoken in foreign language)

（用外語說）

Regarding the bottom line, we will not pursue profits before Tantan enters a positive business cycle, but we will not let Tantan fall into a continuous losses again.

從底線來看，在探探進入良性景氣週期之前，我們不會追求獲利，但也不會讓探探再次陷入持續虧損。

As for detailed financials, I will leave that --

至於詳細的財務數據，我就不說了--

With regards to financial performance, the simple answer is that the top line is likely to continue to trend down sequentially due to two reasons: the first one is, as Tang Yan mentioned just now, Tantan has not reached a self-sustaining positive business cycle yet. User number is still trending down. The second reason is that although there is still room to pull up the ARPU, the focus at this point is to get the dating experience right.

從財務表現來看，簡單的答案是，營收很可能會繼續呈現出環比下降的趨勢，原因有二：第一個是，正如剛才唐岩所說，探探尚未達到自我維持的良性循環。 。用戶數量仍呈下降趨勢。第二個原因是，雖然ARPU仍有拉升空間，但此時的重點是讓約會體驗適合。

And therefore we do not want to put too much pressure on the team so they won't let modernization get in the way when consumer experience is the most crucial priority. With regards to profit, this year, Tantan is on track to achieve RMB50 million plus-minus in terms of segment profits. However, the bottom line has also been trending down slightly throughout the year due to the topline pressure.

因此，我們不想給團隊太大的壓力，這樣當消費者體驗成為最重要的優先事項時，他們就不會讓現代化成為阻礙。獲利方面，探探今年分部獲利可望實現正負5,000萬元。然而，由於營收壓力，全年獲利也呈現小幅下降的趨勢。

So before we reach -- I would say that before we reach the tipping point on topline performance, we do need to take some steps to cut down on the cost and expenses front so that Tantan won't slide back to loss. That is one of one of the key priorities for our financial planning for Tantan 2025.

因此，在我們達到營收績效的臨界點之前，我想說，在我們達到營收績效的臨界點之前，我們確實需要採取一些措施來削減成本和開支，這樣探探就不會再次陷入虧損。這是我們探探 2025 財務規劃的關鍵優先事項之一。

And I think on that, I'm going to have more details for you on our next earnings call when we finish planning for 2025. Now back to Ashley.

我認為，當我們完成 2025 年的規劃時，我將在下一次財報電話會議上向您提供更多詳細資訊。現在回到阿什利。

In the interest of time, let's take one last question before we call you today. Operator, please.

由於時間關係，我們在今天打電話給您之前先回答最後一個問題。接線員，請說。

Xueqing Zhang, CICC.

張學慶，中金公司。

(spoken in foreign language) Thanks management for taking my question. My question about shareholder returns. Firstly, regarding dividends. The company has a track record of six consecutive years of special dividends. So what's your dividend plan for this year? Additionally, regarding share buyback, the company has a buyback, nearly USD150 million year-to-date.

（用外語發言）感謝管理階層提出我的問題。我關於股東回報的問題。首先，關於股利。該公司有連續六年派發特別股息的記錄。那麼您今年的股息計畫是什麼？此外，在股票回購方面，該公司今年迄今已回購近1.5億美元。

So the current buyback program which will expire in the middle of 2026 has less than USD50 million quota. And at the current pace of purchase, we expect that this program will be exhausted by early 2025. So what's your plan for further share buyback? Thank you.

因此，目前將於2026年年中到期的回購計畫的額度不足5,000萬美元。按照目前的購買速度，我們預計該計劃將在 2025 年初用完。那麼您進一步回購股票的計畫是什麼？謝謝。

Okay. I'll take that question. As you correctly pointed out during the past 12 months, we've bought back more than $150 million worth of Momo shares and paid around $100 million in cash dividends. For me, I really look at both approaches, meaning cash dividend and buyback as ways to enhance shareholder value.

好的。我來回答這個問題。正如您在過去 12 個月中正確指出的那樣，我們回購了價值超過 1.5 億美元的陌陌股票，並支付了約 1 億美元的現金股息。對我來說，我確實考慮了這兩種方法，即現金股利和回購都是提高股東價值的方法。

But sometimes, one works better than the other. If you take our Q3 balance sheet number and do a quick math, you will be looking at somewhere around $8.7 per share in that cash and that's a growing number as we continue to make profit. And yet our stock is trading at, I believe below $7 per share at this point. I would say in view of such a significant undervaluation, we should give buyback bigger priority in comparison with cash dividends.

但有時，其中一個比另一個效果更好。如果你用我們第三季的資產負債表數字快速算一下，你會發現這筆現金約為每股 8.7 美元，隨著我們繼續獲利，這個數字還在不斷增長。但我認為目前我們的股票交易價格低於每股 7 美元。我想說，鑑於如此嚴重的低估，與現金股利相比，我們應該優先考慮回購。

However, how much we could buy back is limited to a number of factors; the biggest of which is the liquidity out there in the market. If you look at the past couple of quarters, our repurchase has been running at from $30 million per quarter to around $60 million per quarter. With the limited liquidity we have, it is hard to exceed that run rate in terms of how much we buy back.

然而，我們能回購多少受到多種因素的限制；其中最大的是市場上的流動性。如果你看看過去幾季，我們的回購額從每季 3,000 萬美元增加到每季 6,000 萬美元左右。由於我們的流動性有限，我們回購的數量很難超過運行速度。

That means it is quite likely that we may continue to have excess cash on top of buyback. If that continues to be the case, we will certainly continue to consider cash dividend as an additional way to return cash to the shareholders so we can share our prosperity.

這意味著除了回購之外，我們很可能會繼續擁有多餘的現金。如果這種情況持續下去，我們肯定會繼續考慮現金股利作為向股東返還現金的另一種方式，以便我們能夠分享我們的繁榮。

The other question you have is, will the current run rate probably use up the repurchase already authorized by the Board of Directors. But I think we are not limited to that cap if the current program is used up. I'm sure that the Board of Directors will continue to make decisions that -- it makes sense in terms of enhancing the shareholder value. So that's what I can say at this point.

你的另一個問題是，目前的運行速度是否可能會用完董事會已經授權的回購。但我認為，如果當前計劃用完，我們就不會受到這個上限的限制。我確信董事會將繼續做出對於提高股東價值有意義的決定。這就是我現在可以說的。

Maybe back to Ashley to conclude the call.

也許回到阿什利來結束通話。

Okay. Well, thank you, everyone, for participating in the call and I think that's going to be the end of it and we will see you next year. Thank you.

好的。好的，謝謝大家參加這次電話會議，我想這一切都到此結束，我們明年再見。謝謝。

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

謝謝。我們今天的會議到此結束。感謝您的參與。您現在可以斷開連線。