Shares of Hello Group (NASDAQ: MOMO) were up 36% as of 9:31 a.m. ET on Thursday after the company reported better-than-expected earnings results for the third quarter. Revenue fell 14% year over year, and the company still saw monthly active users decline, but low expectations entering the quarter set the stage for a post-earnings bounce.

While the company is still struggling to deliver growth in a challenging economic environment, management noted it made "solid progress across all business lines." Despite a drop in paying users, the company delivered an adjusted profit of $0.37 per share, slightly down from the same period last year.

The company's live video service business continued to experience pressure from COVID-19-related softness and the stringent regulatory environment in China. The macroeconomic headwinds in China also pressured mobile marketing revenue, which is only a small part of Hello's business, in addition to mobile gaming revenue. 

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Source Fool.com