Jennifer Huang's questions to Hello Group Inc (MOMO) leadership • Q1 2025
Question
Jennifer Huang of UBS inquired about the full-year profit outlook for 2025, specifically asking for color on margin trends and how operating expenses would be managed and allocated throughout the year.
Answer
CFO Cathy Peng provided a detailed forecast. She expects the full-year non-GAAP gross margin to be in the 36-37% range, down from 39% in 2024, due to the mix shift towards lower-margin overseas business. Sales and marketing expenses are projected to increase by about 10% YoY to fuel overseas growth, while R&D and G&A expenses are expected to decrease slightly. Consequently, the full-year non-GAAP operating margin is anticipated to be in the low teens, likely 13-14%.