In order to break the status quo of a single profit model, Zhiwen Group has broadened its business to the field of pan-entertainment. According to the data, Momo is trying to open up more businesses besides dating and live broadcasting.
Wen 丨 BT Finance One Yuan
This is momo's second financial report after changing its name to Zhiwen Group.
Momo, which develops in a group posture, does not seem to have a good life, and from the perspective of revenue, net profit and the scale of paid users, Zhiwen Group is going downhill.
Quick trial and error is true, and "not doing the right thing" is also true
The data shows that the revenue and net profit of Zhiwen Group have both declined, and the revenue has decreased for seven consecutive quarters.
Specifically, in the third quarter, ZWing Group achieved revenue of 3.7592 billion yuan (about US$583.4 million), down 0.2% year-on-year, which is the seventh consecutive quarter of year-on-year decline; net profit was 403.2 million yuan (about US$62.6 million), down 11.7% year-on-year and 13.1% month-on-month.
(Source: wind)
In addition, ZWG expects total net revenue for the fourth quarter of 2021 to reach RMB3.60 billion to RMB3.75 billion, down 5.1% to 1.2% year-on-year.
And all this is not unrelated to the "sword taking the side" in order to find the flashpoint of the Zhiwen Group.
This round of rapid expansion of Zhiwen Group can be summarized as two major wheel wars:
1. The battle for diversity
The main reason why Momo wants to become "Zhiwen" is that Momo wants to expand into other business areas other than strange dating, according to the explanation of Zhiwen Group, the two words "Momo" can no longer cover all the "connotations" of the group.
Source: The official website of The Company
In order to break the status quo of a single profit model, Zhiwen Group has also broadened the Group's business to the field of pan-entertainment by laying out businesses such as movies and variety shows. According to the data, Momo is trying to open up more businesses besides dating and live broadcasting.
Public information shows that Momo Pictures has at least three movies, "Summer of Unexpected Encounters", "A Knife Paradise" and "More Than Endless". In addition, Momo's other new business line, "Cool Bote", is a platform for music and variety shows.
According to relevant sources, Zhiwen Group also wants to set up a catering company, which is to launch its own fast food brand? Step by step from the Internet to the entertainment world, and then into physical catering? The rapid layout and involvement of all this has also left the market with an image of "not doing business".
In addition to attempts in new areas, The Detective, who was once acquired by Momo' heavy money, has gradually become the "drag oil bottle" of The Zhiwen Group. Since the acquisition of Tantan, the year-on-year growth rate of Momo MAU has not improved, but the growth rate has continued to slow down. According to the financial report, in Q3 2021, Tantan's net profit was 179 million yuan, compared with a net loss of 114.2 million yuan in the same period last year.
It's hard to admit that such a "no focus" approach to finding flashpoints at all costs is the right one. These seem to be an extension of the business of Zhiwen Group, but they are constantly weakening the strategic determination of Zhiwen.
2. User infiltration warfare
What is the basic disk of the social industry? Without a doubt, it is the user.
Momo's revenue consists of five parts, namely live broadcast service revenue, value-added service revenue, mobile marketing revenue, mobile game revenue and other service revenue. From the perspective of the group's two major revenue pillars, the retention of paying users is the key. Therefore, the other battle of the Zhiwen Group is to anchor to the user.
From the product level, Momo has developed more products suitable for young users, such as Hertz, ZAO and other products, which are some explorations and attempts to meet the needs of young people.
Hertz, for example, is primarily aimed at new humans. It can be understood from the name that this is an audio-for-entry product, for those young people who have no face value, but are lonely and want to find someone to chat with, they can find new friends through sound and interest.
In addition to Hertz, Zhiwen Group has also launched an APP "Paper Ball" for the community, as well as a "click" around the social networking of acquaintances, a video social product "right" that focuses on the sinking market, a "right eye" for short video social networking, and dozens of new social products such as "ZAO", a makeup changing software for more fun, and a real dating software "Moduoduo".
It is not difficult to find that the series developed by Momo is still in the "virgin" territory, even if it may be the next flashpoint, whether Momo can wait for such a long time is still a problem. The patience of users is limited, and the funds of Zhiwen are also limited. Although from the data point of view, there is still a lot of cash lying on the account of Zhiwen Group, but the time left by the market for a product is very short.
Can these consolidate Momo's foundation in the young user group? In the short term, it has not allowed Zhiwen to get out of the growth dilemma.
In addition, from the current revenue composition, the live broadcasting business is still the largest source of income of The Best Text Group, and with the tightening of supervision in the live broadcasting industry, there are also certain regulatory risks in the business of the Best Text Group.
Behind the "collectivization" is the collective departure of users
There is one number in this earnings report that deserves people's attention: the number of users.
It is worth pondering that while infiltrating the young group, how to retain existing users is also a major key. Since the establishment of Momo into the mobile social market for more than ten years, the original customers are no longer young, today how to provide services suitable for new needs under the layout of Momo and other APPS to retain these "original" users?
The data shows that in terms of user data, Momo APP monthly active users (MAUs) reached 115.5 million, although an increase of 1.7% year-on-year, but compared with 115.6 million monthly active users in the previous quarter, there was still a decrease from the previous quarter. In fact, as early as 2018, Momo's monthly active users exceeded 100 million, and three years have passed, and Momo's monthly active user scale has not achieved a new breakthrough.
While Momo Moonlife showed a weak growth trend, Tantan paid users also continued to be under pressure. According to the data, tantan's paying users have decreased for four consecutive quarters, with only 2.9 million left as of the third quarter of 2021, down 6.87% and 29.27% respectively compared with the same period last year. As a result, the paid users of the entire Zhiwen Group fell for four consecutive quarters, reaching 12.2 million in the third quarter, compared with 13.1 million in the third quarter of 2020, a decrease of 900,000.
Source: The official website of Zhiwen Group
Adding new ways of playing and designing new products is not only "creating dreams" for the future of social networking, but also building the foundation for the future of commercialization. Although these actions are conducive to opening up the long-term imagination space of the Zhiwen Group, at the same time, it also makes people doubt that the trial and error of insufficient focus can go far, it is still unknown.
Is the lack of imagination a birth defect or an acquired deviation?
However, no matter how quickly The Group is laid out to tell a "new story", it still does not alleviate the anxiety of the outside world about the company's "lack of imagination". Compared with the continuous deepening of the focus on the main business, the strategic measures such as the rush of Zhiwen Group to "burn money" in the short term to push new businesses or invest in film and television variety and pan-entertainment content on a large scale are not "cautious" enough.
From the perspective of the potential space of the market, it is said that it is inherently insufficient and cannot stand on its feet. The field that Zhiwen is conquering is in the blue ocean. According to Ai Media Consulting's "China Mobile Social Industry Research Report for the First Half of 2021", nearly four adults are for "meeting like-minded friends". This shows that as the time comes to 2021, the social needs of strangers are still not fully met, and new opportunities are still emerging.
After the popularity of Clubhouse in 2021, there are a lot of social innovation opportunities behind the concepts of young people, audio and video, meta-universe, etc., and even Zuckerberg frankly said, "Regarding the innovation economy, there are indeed many competitors in the market now." ”
Because of the intergenerational changes in the crowd, the rise of live video broadcasting, and the change of lifestyle by the epidemic, new opportunities are emerging in the social market, both giants such as ByteDance are eyeing the tiger, and laymen such as Luo Yonghao are coming in to stir up trouble, and in addition to Tencent and Zhiwen, there are new players such as Soul and Canned Herring.
In 2020, Tencent launched 10 new social products in one go, such as light chat, memorization, and happy encounters, but they were unsuccessful; Zhiwen also had many explorations, and in the past year, it launched more than 10 new social products such as "Click", "Click", short video social App "Right Eye", video blind date App "Right", online fitting room App "Muncie", real dating App "Mo Duoduo", and Listening to Sound Dating App "Hertz", mostly operating in an independent way.
Zhiwen's situation is roughly similar to Tencent's: there are many seeds, few flowers, and no results for the time being.
It needs to be admitted that diversification has indeed been a good medicine to solve the problems of the development of the Internet industry, and there is a series of actions in China that have the B station of the second-dimensional holy land, and a series of actions of the Facebook family to follow the trend of short videos abroad. Social networking, live broadcasting, culture, entertainment, all of which are not without precedents for Zhiwen Group, but they have not been able to discover the results that make the market shine, which is indeed a fact.
In addition, it is reported that Zhiwen is looking for the next growth point through "going to sea". But there is no shortage of giant products such as Facebook abroad, although the social market is difficult to be eaten by a giant, and then after all, the social culture of different markets is huge, different groups of people in the same market have different needs in different scenarios and different stages, the social needs of young users are more personalized, and the open social market tends to be scattered. Whether the casting net trial and error essay can penetrate the gap left by the giants remains to be examined.
But at the same time, it also acknowledges that the social market with large-scale demand and huge business prospects seems to be always full of opportunities and variables, and the war never stops. Whether Zhiwen can fight for the next place, we will wait and see.
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