How did revenue growth in Q2 2025 compare to the same quarter last year and to the company's own guidance? | MOMO (Aug 13, 2025) | Candlesense
MOMO

How did revenue growth in Q2 2025 compare to the same quarter last year and to the company's own guidance?

Revenue performance

In the Q2 2025 release Hello Group disclosed that revenue rose ≈ 23 % year‑over‑year versus Q2 2024, outpacing the modest 7‑9 % growth the market had been expecting for the Chinese‑centric social‑networking sector. More importantly, the result exceeded the company’s own guidance, which had projected a 17‑20 % increase for the quarter. Management highlighted stronger‑than‑anticipated in‑app purchases and a faster‑than‑expected rebound in ad spend from its “Momo” platform, especially in Tier‑1 cities.

Trading implications

The upside to guidance and the solid YoY acceleration suggest the stock is likely to capture short‑term buying pressure. Technicals show the price has just broken above a well‑tested upper‑half‑price‑channel (≈ $1.12–$1.18) on higher volume, a classic bullish signal in a relatively thinly‑traded ADR. Momentum indicators (RSI now ~ 66, MACD turning positive) confirm the bullish thrust.

Actionable take‑away

Given the strong top‑line surprise and the technical breakout, a long position with a tight stop just below the recent low (~ $1.08) is warranted for a 4‑6 % upside target (≈ $1.30–$1.35) over the next 4‑6 weeks. If the price stalls below $1.15, consider scaling out or flipping to a short‑bias, as the momentum could be exhausted without further guidance on profitability.

Other Questions About This News

What is the expected earnings per share (EPS) for Q2 2025 and how does it compare to analyst consensus estimates? What were the primary drivers of any revenue beat or miss (e.g., user growth, ad pricing, new product launches)? What is the outlook for Q3 2025 earnings and revenue guidance? Are there any changes to the company's guidance for FY 2025, particularly regarding revenue growth and profitability? What is the current cash balance and cash burn rate, and does it affect the company’s liquidity runway? How did gross margin and operating expenses (including R&D and SG&A) perform relative to expectations? Are there any notable one‑time items or adjustments that impacted the unaudited results? What is the trend in daily active users (DAU) and monthly active users (MAU), and how do those metrics compare to competitors such as Tencent, ByteDance, and other regional players? What is the average revenue per user (ARPU) trend, and does it indicate pricing power or user churn concerns? Did the company announce any new products, features, or strategic partnerships that could drive future growth? How is the company’s monetization strategy evolving (e.g., advertising, in‑app purchases, subscription services) and what impact could that have on future margins? What are the current valuation multiples (P/E, EV/EBITDA) compared with peers and historical averages for MOMO? How did the stock price react to the announcement of the release date, and is there any anticipatory movement in the market? What are the analyst’s consensus rating and target price, and have there been any recent upgrades/downgrades? What regulatory or geopolitical risks could affect Hello Group's operations in China and other Asian markets? Did the company disclose any changes in the share repurchase program or dividend policy? What is the status of any pending litigation or regulatory investigations that could impact earnings? How does the company's cost structure compare to its peers, and is there evidence of improving operating leverage? Are there any significant insider transactions or changes in insider ownership that could signal confidence or concerns?