Hello Group (Hello Group) Operating Income : $297 Mil (TTM As of Sep. 2023)

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What is Hello Group Operating Income?

Hello Group's Operating Income for the three months ended in Sep. 2023 was $85 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $297 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hello Group's Operating Income for the three months ended in Sep. 2023 was $85 Mil. Hello Group's Revenue for the three months ended in Sep. 2023 was $417 Mil. Therefore, Hello Group's Operating Margin % for the quarter that ended in Sep. 2023 was 20.43%.

Warning Sign:

Hello Group Inc operating margin has been in a 5-year decline. The average rate of decline per year is -15.1%.

Hello Group's 5-Year average Growth Rate for Operating Margin % was -15.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hello Group's annualized ROC % for the quarter that ended in Sep. 2023 was 23.52%. Hello Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 285.09%.

Hello Group Operating Income Historical Data

The historical data trend for Hello Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hello Group Operating Income Chart

Hello Group Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Operating Income

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474.50

506.82

387.11

315.18

233.45

Hello Group Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Operating Income	Get a 7-Day Free Trial															74.10	58.70	63.30	90.08	85.20

Hello Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $297 Mil.

Hello Group (NAS:MOMO) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Hello Group's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	340.788 * ( 1 - 22.6% )	/	( (1032.382	+	1210.871)	/ 2 )
=	263.769912	/	1121.6265
=	23.52 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2201.855	-	194.65	-	( 1140.985	-	max(0, 608.32	-	1583.143	+	1140.985	))
=	1032.382

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2215.9	-	192.52	-	( 984.956	-	max(0, 298.709	-	1111.218	+	984.956	))
=	1210.871

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Hello Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	393.84	/	( ( (30.655 + max(179.019, 0))	+	(66.617 + max(-136.11, 0)) )	/	2 )
=	393.84	/	( ( 209.674	+	66.617 )	/	2 )
=	393.84	/	138.1455
=	285.09 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(28.38	+	0	+	413.778)	-	(194.65	+	68.489	+	0)
=	179.019

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(26.425	+	0	+	98.862)	-	(192.52	+	68.877	+	0)
=	-136.11

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Hello Group's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	85.197	/	416.948
	=	20.43 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Hello Group Operating Income Related Terms

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Hello Group (Hello Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Hello Group Inc (NAS:MOMO) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

0K2P:UK 1MO:Germany 1MO:Germany

Address

No. 1 Futongdong Street, 20th Floor, Block B, Tower 2, Wangjing SOHO, Chaoyang District, Beijing, CHN, 100102

Website

https://www.hellogroup.com

Hello Group Inc provides mobile-based social networking services. It enables users to establish and expand social relationships based on location and interests. Its platform includes the Momo mobile application and a variety of related features, functionalities, tools, and services that it provides to users, customers, and platform partners. The company derives its revenue from live video services, value-added services, mobile marketing services, mobile games, and other services. It operates in three segments: Momo's service lines, Tantan's service lines, and QOOL's service lines out of which Momo's service lines segment derives the majority of revenue.