SEEKING ALPHA - Hello Group saw its revenue drop 15% in Q3, and forecast a similar decline in the third. The company's strategy involves a turnaround at its loss-making Tantan, which aims to break even by 2023 by cutting costs and rolling out new functions. The company attributed its sluggish business partly to the resurgence of Covid-19. China's tightening regulation of live streaming businesses with new rules implemented early this year also dealt a heavy blow to the company. Its "live video service" revenue - responsible for about half of its total - fell ~30% to 1.5B yuan YOY during the last quarter. Before announcing a name change last August, Hello was known as Momo and has a history dating back to 2011 when its Tinder-style Momo app first took China's dating scene by storm. In 2018, the company paid $760M to add another "meet-up" app called Tantan to its portfolio.
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