Zhihu Group (MOMO, Financial) reported its Q3 2024 financial results, showing declines in revenue, net profit, and user metrics. Despite this, MOMO's stock rebounded from a low of $6.32 to $6.77 by December 6, continuing to rise to $7.85 by December 13, nearing its previous high of $8.19. The company reported Q3 revenue of 3.81 billion USD, a 12.1% decrease, and a net profit of 70.3 million USD, down 8.58% year-over-year.
Factors such as reduced costs and effective cash flow management contributed to better-than-expected net profits. MOMO's strategic stock buybacks and dividends have bolstered investor confidence. However, with declining active and paying users, MOMO's competitive edge is waning, and future revenue is projected to decrease.
