MOMO
$9.56
Hello Group Inc ADR
$.36
3.91%
Earnings Details
3rd Quarter September 2021
Tuesday, November 30, 2021 2:57:00 AM
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Summary

Hello Group Inc ADR Beats but Guides Lower

Hello Group Inc ADR (MOMO) reported 3rd Quarter September 2021 earnings of $0.44 per share on revenue of $583.4 million. The consensus earnings estimate was $0.35 per share on revenue of $570.4 million. The Earnings Whisper number was $0.36 per share. Revenue grew 5.2% on a year-over-year basis.

The company said it expects fourth quarter revenue of $563.92 million to $587.42 million. The current consensus revenue estimate is $590.65 million for the quarter ending December 31, 2021.

Momo Inc is a mobile-based social networking platform. The Company enables its  users to establish and expand social relationships based on location and interests.

Results
Reported Earnings
$0.44
Earnings Whisper
$0.36
Consensus Estimate
$0.35
Reported Revenue
$583.4 Mil
Revenue Estimate
$570.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2021

BEIJING, Nov. 30, 2021 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the third quarter of 2021.

Third Quarter of 2021 Highlights

  • Net revenues decreased by 0.2% year over year to RMB3,759.2 million (US$583.4 million*) in the third quarter of 2021.
  • Net income attributable to Hello Group Inc. decreased to RMB403.2 million (US$62.6 million) in the third quarter of 2021 from RMB456.7 million in the same period of 2020.
  • Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB571.6 million (US$88.7 million) in the third quarter of 2021, from RMB653.8 million in the same period of 2020.
  • Diluted net income per American Depositary Share ("ADS") was RMB1.93 (US$0.30) in the third quarter of 2021, compared to RMB2.11 in the same period of 2020.
  • Non-GAAP diluted net income per ADS (note 1) was RMB2.70 (US$0.42) in the third quarter of 2021, compared to RMB2.98 in the same period of 2020.
  • Monthly Active Users ("MAU") on Momo application were 115.5 million in September 2021, compared to 113.6 million in September 2020.
  • Total paying users of live video service and value-added service, without double counting the overlap and including 2.9 million paying users of Tantan Limited ("Tantan"), were 12.2 million for the third quarter of 2021, compared to 13.1 million for the third quarter of 2020, which included 4.1 million paying users of Tantan.

First Nine Months of 2021 Highlights

  • Net revenues decreased 2.9% year over year to RMB10,901.5 million (US$1,691.9 million) for the first nine months of 2021.
  • Net income attributable to Hello Group Inc. was RMB1,329.0 million (US$206.3 million) for the first nine months of 2021, compared with RMB1,452.0 million during the same period of 2020.
  • Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,756.2 million (US$272.6 million) for the first nine months of 2021, compared with RMB2,059.8 million during the same period of 2020.
  • Diluted net income per ADS was RMB6.22 (US$0.97) for the first nine months of 2021, compared with RMB6.68 during the same period of 2020.
  • Non-GAAP diluted net income per ADS (note 1) was RMB8.14 (US$1.26) for the first nine months of 2021, compared with RMB9.36 during the same period of 2020.

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.4434 to US$1.00, the effective noon buying rate for September 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

"The third quarter of 2021 was a good quarter with solid financial results." commented Li Wang, CEO of Hello Group. "We continued to push forward with all of our strategic goals. For the first time since the beginning of the COVID-19 pandemic, core Momo revenue has achieved year-over-year growth. Although we still have many hard work to do at Tantan, I am glad that we are finally on track to make concrete progresses on the product fronts."

Third Quarter of 2021 Financial Results

Net revenues

Total net revenues were RMB3,759.2 million (US$583.4 million) in the third quarter of 2021, a decrease of 0.2% from RMB3,766.7 million in the third quarter of 2020.

Live video service revenues were RMB2,166.7 million (US$336.3 million) in the third quarter of 2021, a decrease of 8.8% from RMB2,374.8 million during the same period of 2020. The decrease was primarily attributable to (a) the decrease in Tantan's live streaming revenue due to the shift of our strategic focus; (b) our structural reform on the Company's core live video business.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,533.3 million (US$238.0 million) in the third quarter of 2021, an increase of 15.2% from RMB1,330.8 million during the same period of 2020. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by the introduction of innovative features and operational events in the audio and video social entertainment experiences, and to a lesser extent, incremental revenues contributed by new standalone apps. The increase was partially offset by the decrease in the value-added service revenues of Tantan, due to our demonetization measures to improve user experience and retention.

Mobile marketing revenues were RMB43.3 million (US$6.7 million) in the third quarter of 2021, a decrease of 14.1% from RMB50.4 million during the same period of 2020. The decrease in mobile marketing revenues was due to our strategy to underweight the line in terms of resource allocation, and to a lesser extent, our product adjustment to address new regulation requirement.

Mobile games revenues were RMB8.1 million (US$1.3 million) in the third quarter of 2021, an increase of 1.0% from RMB8.0 million in the third quarter of 2020.

Net revenues from the Momo segment increased from RMB3,037.0 million in the third quarter of 2020 to RMB3,246.3 million (US$503.8 million) in the third quarter of 2021, primarily due to the increase in net revenues from value-added service, partially offset by the decrease in net revenues from live video service. Net revenues from the Tantan segment decreased from RMB728.9 million in the third quarter of 2020 to RMB510.7 million (US$79.3 million) in the third quarter of 2021, due to the shift of our strategic focus from driving paying conversion to lowering the monetization level in order to improve user experience and drive overall user growth.

Cost and expenses

Cost and expenses were RMB3,319.9 million (US$515.2 million) in the third quarter of 2021, an increase of 1.9% from RMB3,258.5 million in the third quarter of 2020. The increase was primarily attributable to: (a) an increase in revenue sharing with virtual gift recipients for our virtual gift service, and broadcasters related to Momo's core live video service; (b) an increase of RMB48.5 million (US$7.5 million) in production costs in connection with a television program and a film. These increases were partially offset by a decrease in revenue sharing with broadcasters related to Tantan's live video service, a decrease in marketing and promotional expenses to attract users on Tantan platforms, and a decrease in personnel related costs including share-based compensation expenses resulting from the decreased number of employees and the decreased fair value of the share options granted during the period.

Non-GAAP cost and expenses (note 1) were RMB3,143.2 million (US$487.8 million) in the third quarter of 2021, an increase of 3.0% from RMB3,052.0 million during the same period of 2020.

Income from operations

Income from operations was RMB460.5 million (US$71.5 million) in the third quarter of 2021, compared to RMB531.1 million during the same period of 2020. Income from operations of the Momo segment was RMB676.5 million (US$105.0 million) in the third quarter of 2021, which increased from RMB658.7 million in the third quarter of 2020. Loss from operations of the Tantan segment was RMB179.8 million (US$27.9 million) in the third quarter of 2021, compared to loss from operations of RMB121.5 million in the third quarter of 2020.

Non-GAAP income from operations (note 1) was RMB637.2 million (US$98.9 million) in the third quarter of 2021, compared to RMB737.6 million during the same period of 2020. Non-GAAP income from operations of the Momo segment was RMB786.3 million (US$122.0 million) in the third quarter of 2021, which decreased from RMB805.8 million in the third quarter of 2020. Non-GAAP loss from operations of the Tantan segment was RMB112.9 million (US$17.5 million) in the third quarter of 2021, compared to non-GAAP loss from operations of RMB64.7 million in the third quarter of 2020.

Income tax expenses

Income tax expenses were RMB143.2 million (US$22.2 million) in the third quarter of 2021, compared to RMB143.6 million in the third quarter of 2020.

Net income

Net income was RMB395.9 million (US$61.4 million) in the third quarter of 2021, compared to RMB456.0 million during the same period of 2020. Net income from the Momo segment was RMB611.1 million (US$94.8 million) in the third quarter of 2021, which increased from RMB576.2 million in the third quarter of 2020. Net loss from the Tantan segment was RMB179.0 million (US$27.8 million) in the third quarter of 2021, compared to net loss of RMB114.2 million in the third quarter of 2020.

Non-GAAP net income (note 1) was RMB564.3 million (US$87.6 million) in the third quarter of 2021, compared to RMB653.1 million during the same period of 2020. Non-GAAP net income from the Momo segment was RMB720.9 million (US$111.9 million) in the third quarter of 2021, which decreased from RMB723.4 million in the third quarter of 2020. Non-GAAP net loss of the Tantan segment was RMB120.5 million (US$18.7 million) in the third quarter of 2021, compared to non-GAAP net loss of RMB66.9 million in the third quarter of 2020.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB403.2 million (US$62.6 million) in the third quarter of 2021, compared to RMB456.7 million during the same period of 2020.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB571.6 million (US$88.7 million) in the third quarter of 2021, compared to RMB653.8 million during the same period of 2020.

Net income per ADS

Diluted net income per ADS was RMB1.93 (US$0.30) in the third quarter of 2021, compared to RMB2.11 in the third quarter of 2020.

Non-GAAP diluted net income per ADS (note 1) was RMB2.70 (US$0.42) in the third quarter of 2021, compared to RMB2.98 in the third quarter of 2020.

Cash and cash flow

As of September 30, 2021, the Company's cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB15,173.3 million (US$2,354.9 million), compared to RMB16,482.3 million as of December 31, 2020. Net cash provided by operating activities in the third quarter of 2021 was RMB559.9 million (US$86.9 million), compared to RMB691.1 million in the third quarter of 2020.

First Nine Months of 2021 Financial Results

Net revenues for the first nine months of 2021 were RMB10,901.5 million (US$1,691.9 million), a decrease of 2.9% from RMB11,229.0 million in the same period of 2020.

Net income attributable to Hello Group Inc. was RMB1,329.0 million (US$206.3 million) for the first nine months of 2021, compared to RMB1,452.0 million during the same period of 2020.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,756.2 million (US$272.6 million) for the first nine months of 2021, compared to RMB2,059.8 million during the same period of 2020.

Diluted net income per ADS was RMB6.22 (US$0.97) during the first nine months of 2021, compared to RMB6.68 in the same period of 2020.

Non-GAAP diluted net income per ADS (note 1) was RMB8.14 (US$1.26) during the first nine months of 2021, compared to RMB9.36 in the same period of 2020.

Net cash provided by operating activities was RMB893.7 million (US$138.7 million) during the first nine months of 2021, compared to RMB2,041.8 million in the same period of 2020.

Execution of share repurchase program

On September 3, 2020, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to US$300 million of its shares over the next 12 months. As of September 2, 2021, the Company had repurchased 14.15 million ADSs for a total consideration of US$182.4 million on the open market under this program, at an average purchase price of US$12.87 per ADS.

Business Outlook

For the fourth quarter of 2021, the Company expects total net revenues to be between RMB3.60 billion to RMB3.75 billion, representing a decrease of 5.1% to 1.2% year-over-year. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.

Note 1: Non-GAAP measures

To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions.

Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.

Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Our non-GAAP information (including non-GAAP cost and operating expenses, income (loss) from operations, net income (loss),net income attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation, amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions. A limitation of using these non-GAAP financial measures is that share-based compensation, amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions have been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.

Conference Call

Hello Group's management will host an earnings conference call on Tuesday, November 30, 2021, at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong Time on November 30, 2021).

All participants must preregister online prior to the call to receive the dial-in details. Once preregistration has been complete, participants will receive dial-in numbers, direct event passcode, and a unique registrant ID.

PRE-REGISTER LINK http://apac.directeventreg.com/registration/event/7139276

To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your registrant ID, and you will join the conference instantly.

A telephone replay of the call will be available after the conclusion of the conference call through 8:00 a.m. U.S. Eastern Time, December 8, 2021. The dial-in details for the replay are as follows:

International:   +61-2-8199-0299
U.S. Toll Free: +1-855-452-5696
Passcode: 7139276

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Company's website at http://ir.immomo.com.

About Hello Group Inc.

We are a leading player in China's online social and entertainment space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. It is designed to help its users find and establish romantic connections as well as meet interesting people. We also operate a number of other applications to serve different social and entertainment demands from our users.

For investor and media inquiries, please contact:

Hello Group Inc.

Investor Relations
Phone: +86-10-5731-0538
Email: ir@immomo.com  

Christensen

In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: Eyuan@christensenir.com  

In US

Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the fourth quarter of 2021, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the third quarter of 2021 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2021 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the impact of the COVID-19 pandemic on the Company's business operations and the economy in China, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, general economic conditions, and other factors.  For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.          

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Operations

(All amounts in thousands, except share and per share data)


Three months


First nine months

Ended September 30


Ended September 30


2020


2021


2021


2020


2021


2021


RMB


RMB


US$


RMB


RMB


US$

Net revenues:












Live video service

2,374,824


2,166,733


336,272


7,309,704


6,230,160


966,906

Value-added service

1,330,839


1,533,288


237,962


3,710,913


4,496,059


697,777

Mobile marketing

50,415


43,323


6,724


145,534


133,641


20,741

Mobile games

7,975


8,052


1,250


32,230


28,418


4,410

Other services

2,598


7,784


1,208


30,606


13,212


2,051

Total net revenues

3,766,651


3,759,180


583,416


11,228,987


10,901,490


1,691,885

Cost and expenses:












Cost of revenues

(2,020,779)


(2,183,337)


(338,849)


(5,934,000)


(6,191,911)


(960,970)

Research and development

(299,221)


(260,939)


(40,497)


(840,382)


(815,757)


(126,604)

Sales and marketing

(754,892)


(680,896)


(105,673)


(2,116,200)


(1,944,705)


(301,813)

General and administrative

(183,649)


(194,734)


(30,222)


(540,959)


(459,443)


(71,304)

Total cost and expenses

(3,258,541)


(3,319,906)


(515,241)


(9,431,541)


(9,411,816)


(1,460,691)

Other operating income

22,944


21,221


3,293


140,392


137,389


21,322

Income from operations

531,054


460,495


71,468


1,937,838


1,627,063


252,516

Interest income

104,232


93,564


14,521


343,591


284,706


44,186

Interest expense

(19,885)


(18,669)


(2,897)


(59,825)


(55,332)


(8,587)

Other gain or loss, net

-


-


-


(6,000)


(18,000)


(2,794)

Income before income tax and share of income on equity method
investments

615,401


535,390


83,092


2,215,604


1,838,437


285,321

Income tax expenses

(143,615)


(143,158)


(22,218)


(750,139)


(526,065)


(81,644)

Income before share of income on equity method investments

471,786


392,232


60,874


1,465,465


1,312,372


203,677

Share of (loss) income on equity method investments

(15,763)


3,658


568


(16,203)


5,961


925

Net income

456,023


395,890


61,442


1,449,262


1,318,333


204,602

Less: net loss attributable to non-controlling interest

(705)


(7,301)


(1,133)


(2,772)


(10,677)


(1,657)

Net income attributable to the shareholders of Hello Group Inc.

456,728


403,191


62,575


1,452,034


1,329,010


206,259













Net income per share attributable to ordinary shareholders

Basic

1.09


1.01


0.16


3.48


3.26


0.51

Diluted

1.05


0.96


0.15


3.34


3.11


0.48

Weighted average shares used in calculating net income per ordinary share












Basic

417,884,266


400,835,428


400,835,428


417,580,609


408,074,205


408,074,205

Diluted

452,724,863


437,639,164


437,639,164


452,854,314


444,906,615


444,906,615

 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

(All amounts in thousands, except share and per share data)








Three months


First nine months

Ended September 30


Ended September 30


2020


2021


2021


2020


2021


2021


RMB


RMB


US$


RMB


RMB


US$

Net income 

456,023


395,890


61,442


1,449,262


1,318,333


204,602

Other comprehensive (loss) income, net of tax:












Foreign currency translation adjustment

(80,618)


368


57


(72,667)


(31,830)


(4,940)

Comprehensive income 

375,405


396,258


61,499


1,376,595


1,286,503


199,662

Less: comprehensive loss attributed to the non-
controlling interest

(9,953)


(7,540)


(1,170)


(16,945)


(13,323)


(2,068)

Comprehensive income attributable to Hello Group
Inc.

385,358


403,798


62,669


1,393,540


1,299,826


201,730

 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except share and per share data)








December 31


September 30


September 30


2020


2021


2021

RMB

RMB


US$

Assets






Current assets






Cash and cash equivalents

3,363,942


3,283,840


509,644

Short-term deposits

7,566,250


6,010,000


932,737

Restricted cash

2,130


2,135


331

Accounts receivable, net of allowance for doubtful accounts of RMB15,390
and RMB15,633 as of December 31, 2020 and September 30, 2021,
respectively

200,831


218,944


33,980

Prepaid expenses and other current assets

613,696


820,157


127,286

Total current assets

11,746,849


10,335,076


1,603,978

Long-term deposits

5,550,000


5,800,000


900,146

Long-term restricted cash

-


77,321


12,000

Right-of-use assets, net

278,175


303,623


47,122

Property and equipment, net

265,765


208,529


32,363

Intangible assets, net

687,211


572,687


88,880

Rental deposits

21,794


19,133


2,969

Long-term investments

454,996


737,347


114,434

Other non-current assets

94,868


81,608


12,665

Deferred tax assets

32,495


34,511


5,356

Goodwill

4,088,403


4,037,551


626,618

Total assets

23,220,556


22,207,386


3,446,531

Liabilities and equity






Current liabilities






Accounts payable

699,394


720,107


111,758

Deferred revenue

511,617


530,453


82,325

Accrued expenses and other current liabilities

854,835


803,564


124,711

Amount due to related parties

19,462


14,766


2,292

Lease liabilities due within one year

132,793


164,357


25,508

Income tax payable

236,490


165,058


25,617

Deferred consideration in connection with business acquisitions

62,149


45,350


7,038

Total current liabilities

2,516,740


2,443,655


379,249

Deferred tax liabilities

171,803


142,915


22,180

Convertible senior notes

4,658,966


4,612,019


715,774

Share-based compensation liability

875,616


-


-

Lease liabilities

136,436


141,949


22,030

Other non-current liabilities

25,666


141,054


21,891

Total liabilities

8,385,227


7,481,592


1,161,124

Shareholder's equity (i)

14,835,329


14,725,794


2,285,407

Total liabilities and shareholder's equity

23,220,556


22,207,386


3,446,531







(i): As of September 30, 2021, the number of ordinary shares outstanding was 393,903,538.



 

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

(All amounts in thousands, except share and per share data)


Three months


First nine months


Ended September 30


Ended September 30


2020


2021


2021


2020


2021


2021


RMB


RMB


US$


RMB


RMB


US$

Cash flows from operating activities:












Net income 

456,023


395,890


61,442


1,449,262


1,318,333


204,602

Adjustments to reconcile net income to net cash provided by operating
activities:












Depreciation of property and equipment

49,024


38,696


6,006


153,615


121,311


18,827

Amortization of intangible assets

39,347


34,722


5,389


119,517


107,783


16,728

Share-based compensation

168,475


143,280


22,237


521,102


349,195


54,194

Share of loss (income) on equity method investments

15,763


(3,658)


(568)


16,203


(5,961)


(925)

Loss on long-term investments

-


-


-


6,000


18,000


2,794

Gain on subsidiary deconsolidation

-


-


-


(6,676)


-


-

Gain on disposal of subsidiaries

-


-


-


-


(15,526)


(2,410)

(Gain) loss on disposal of property and equipment

(284)


2,351


365


(285)


1,272


197

Provision of  losses (income) on receivable and other assets

26,006


(322)


(50)


26,412


242


38

Cash received on investment income distribution

-


-


-


1,153


-


-

Changes in operating assets and liabilities:












Accounts receivable

15,968


(1,616)


(251)


17,714


(24,358)


(3,780)

Prepaid expenses and other current assets

(207,586)


(85,048)


(13,199)


(163,753)


(203,666)


(31,608)

Amount due from a related party

2,029


-


-


4,382


-


-

Rental deposits

(83)


(922)


(143)


107


(1,514)


(235)

Deferred tax assets

561


(782)


(121)


3,034


(2,016)


(313)

Other non-current assets

9,930


(57,100)


(8,862)


28,181


(8,050)


(1,249)

Accounts payable

(62,189)


(28,400)


(4,408)


(78,664)


19,422


3,014

Income tax payable

112,799


24,947


3,872


177,855


(71,431)


(11,086)

Deferred revenue

17,442


9,369


1,454


(15,830)


25,454


3,950

Accrued expenses and other current liabilities

52,819


56,954


8,839


(161,411)


(38,829)


(6,026)

Amount due to related parties

13,495


1,860


289


2,262


(4,696)


(729)

Deferred tax liability

(9,837)


(8,676)


(1,346)


(29,880)


(26,941)


(4,181)

Share-based compensation liability

-


-


-


-


(678,153)


(105,248)

Other non-current liabilities

(8,648)


38,335


5,949


(28,500)


13,818


2,145

Net cash provided by operating activities

691,054


559,880


86,894


2,041,800


893,689


138,699

Cash flows from investing activities:












Purchase of property and equipment

(24,078)


(30,919)


(4,799)


(108,048)


(76,122)


(11,814)

Payment for long-term investments

-


-


-


(4,500)


(300,000)


(46,559)

Purchase of short-term deposits

(3,053,307)


(2,100,000)


(325,915)


(11,295,165)


(4,576,688)


(710,291)

Cash received on maturity of short-term deposits

4,337,085


3,458,658


536,775


15,622,659


6,117,570


949,432

Payment for short-term investments

-


-


-


(10,000)


-


-

Cash received from sales of short-term investment

-


-


-


10,000


-


-

Cash received on investment income distribution

-


-


-


-


5,610


871

Cash of disposed subsidiaries

-


-


-


-


(8,750)


(1,358)

Purchase of long-term deposits

(1,550,000)


-


-


(4,350,000)


(250,000)


(38,799)

Other investing activities

457


13


2


(319)


2,406


373

Net cash  (used in) provided by investing activities

(289,843)


1,327,752


206,063


(135,373)


914,026


141,855

Cash flows from financing activities:












Deferred payment for business acquisition

-


-


-


(18,355)


(12,907)


(2,003)

Proceeds from exercise of share options

54


461


72


55


771


120

Repurchase of ordinary shares

(132,407)


(756,714)


(117,440)


(132,407)


(862,865)


(133,915)

Repurchase of subsidiary's share options

(24,900)


(48,489)


(7,525)


(24,900)


(54,050)


(8,388)

Dividends payment

-


-


-


(1,123,983)


(852,743)


(132,344)

Net cash used in financing activities

(157,253)


(804,742)


(124,893)


(1,299,590)


(1,781,794)


(276,530)

Effect of exchange rate changes

(45,135)


(3,661)


(571)


(43,174)


(28,697)


(4,455)

Net increase (decrease) in cash and cash equivalents 

198,823


1,079,229


167,493


563,663


(2,776)


(431)

Cash, cash equivalents and restricted cash at the beginning of period

2,977,583


2,284,067


354,482


2,612,743


3,366,072


522,406

Cash, cash equivalents and restricted cash at the end of period

3,176,406


3,363,296


521,975


3,176,406


3,363,296


521,975

 

 

 

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)


















1. Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures.








Three months


Three months


Three months

Ended September 30, 2020

Ended September 30, 2021


Ended September 30, 2021


GAAP

Amortization of
intangible assets
from business
acquisitions

Share-based
compensation

Tax impacts

Non-GAAP


GAAP

Amortization of
intangible assets
from business
acquisitions

Share-based
compensation

Tax impacts

Non-GAAP


GAAP

Amortization of
intangible assets
from business
acquisitions

Share-based
compensation

Tax
impacts

Non-GAAP




(ii)





(ii)





(ii)


RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

US$

US$

US$

US$

US$

Cost of revenues

(2,020,779)

18,472

4,434

-

(1,997,873)


(2,183,337)

17,286

6,623

-

(2,159,428)


(338,849)

2,683

1,028

-

(335,138)

Research and development

(299,221)

2,346

44,610

-

(252,265)


(260,939)

-

29,094

-

(231,845)


(40,497)

-

4,515

-

(35,982)

Sales and marketing

(754,892)

17,275

41,583

-

(696,034)


(680,896)

16,165

27,653

-

(637,078)


(105,673)

2,509

4,292

-

(98,872)

General and administrative

(183,649)

-

77,848

-

(105,801)


(194,734)

-

79,910

-

(114,824)


(30,222)

-

12,402

-

(17,820)

Cost and operating expenses

(3,258,541)

38,093

168,475

-

(3,051,973)


(3,319,906)

33,451

143,280

-

(3,143,175)


(515,241)

5,192

22,237

-

(487,812)

Income from operations

531,054

38,093

168,475

-

737,622


460,495

33,451

143,280

-

637,226


71,468

5,192

22,237

-

98,897

Net income attributable to Hello Group
Inc.

456,728

38,093

168,475

(9,523)

653,773


403,191

33,451

143,280

(8,363)

571,559


62,575

5,192

22,237

(1,298)

88,706

 

 

 

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)






1. Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures-continued.








First nine months


First nine months


First nine months

Ended September 30, 2020

Ended September 30, 2021


Ended September 30, 2021


GAAP

Amortization of
intangible assets
from business
acquisitions

Share-based
compensation

Tax impacts

Non-GAAP


GAAP

Amortization of
intangible assets
from business
acquisitions

Share-based
compensation

Tax impacts

Non-GAAP


GAAP

Amortization of
intangible assets
from business
acquisitions 

Share-based
compensation

Tax impacts

Non-GAAP




(ii)





(ii)





(ii)


RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

US$

US$

US$

US$

US$

Cost of revenues

(5,934,000)

56,046

14,207

-

(5,863,747)


(6,191,911)

51,853

14,548

-

(6,125,510)


(960,970)

8,047

2,258

-

(950,665)

Research and development

(840,382)

7,118

137,355

-

(695,909)


(815,757)

3,660

103,268

-

(708,829)


(126,604)

568

16,027

-

(110,009)

Sales and marketing

(2,116,200)

52,413

131,780

-

(1,932,007)


(1,944,705)

48,491

59,797

-

(1,836,417)


(301,813)

7,526

9,280

-

(285,007)

General and administrative

(540,959)

-

237,760

-

(303,199)


(459,443)

-

171,582

-

(287,861)


(71,304)

-

26,629

-

(44,675)

Cost and operating expenses

(9,431,541)

115,577

521,102

-

(8,794,862)


(9,411,816)

104,004

349,195

-

(8,958,617)


(1,460,691)

16,141

54,194

-

(1,390,356)

Income from operations

1,937,838

115,577

521,102

-

2,574,517


1,627,063

104,004

349,195

-

2,080,262


252,516

16,141

54,194

-

322,851

Net income attributable to Hello Group
Inc.

1,452,034

115,577

521,102

(28,894)

2,059,819


1,329,010

104,004

349,195

(26,002)

1,756,207


206,259

16,141

54,194

(4,035)

272,559









































































(ii) Includes tax impacts related to the amortization of intangible assets from business acquisition. 













 

 

Hello Group Inc.

Unaudited Condensed Segment Report

(All amounts in thousands, except share and per share data)












Three months

  Ended September 30, 2021


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

1,932,141


234,592


-


2,166,733


336,272

Value-added service

1,257,158


276,130


-


1,533,288


237,962

Mobile marketing

43,323


-


-


43,323


6,724

Mobile games

8,052


-


-


8,052


1,250

Other services

5,589


-


2,195


7,784


1,208

Total net revenues

3,246,263


510,722


2,195


3,759,180


583,416

Cost and expenses (iii):










Cost of revenues

(1,884,931)


(269,376)


(29,030)


(2,183,337)


(338,849)

Research and development

(194,475)


(66,464)


-


(260,939)


(40,497)

Sales and marketing

(336,691)


(341,636)


(2,569)


(680,896)


(105,673)

General and administrative

(171,609)


(16,321)


(6,804)


(194,734)


(30,222)

Total cost and expenses

(2,587,706)


(693,797)


(38,403)


(3,319,906)


(515,241)

Other operating income

17,946


3,270


5


21,221


3,293

Income (loss) from operations

676,503


(179,805)


(36,203)


460,495


71,468

Interest income

93,174


356


34


93,564


14,521

Interest expense

(18,669)


-


-


(18,669)


(2,897)

Income (loss) before income tax and share of income on equity
method investments

751,008


(179,449)


(36,169)


535,390


83,092

Income tax (expenses) benefits

(143,562)


404


-


(143,158)


(22,218)

Income (loss) before share of income on equity method
investments

607,446


(179,045)


(36,169)


392,232


60,874

Share of income on equity method investments

3,658


-


-


3,658


568

Net income (loss)

611,104


(179,045)


(36,169)


395,890


61,442





















(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:


























Three months


Ended September 30, 2021


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

2,847


3,776


-


6,623


1,028

Research and development

18,071


11,023


-


29,094


4,515

Sales and marketing

11,280


16,373


-


27,653


4,292

General and administrative

77,616


2,294


-


79,910


12,402

Total cost and expenses

109,814


33,466


-


143,280


22,237

 

 

 

Hello Group Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

(All amounts in thousands, except share and per share data)










































Three months


Ended September 30, 2021


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

676,503


(179,805)


(36,203)


460,495


71,468

Share-based compensation

109,814


33,466


-


143,280


22,237

Amortization of intangible assets from business acquisitions

-


33,451


-


33,451


5,192

Non-GAAP income (loss) from operations

786,317


(112,888)


(36,203)


637,226


98,897











Net income (loss)

611,104


(179,045)


(36,169)


395,890


61,442

Share-based compensation

109,814


33,466


-


143,280


22,237

Amortization of intangible assets from business acquisitions

-


33,451


-


33,451


5,192

Tax impacts

-


(8,363)


-


(8,363)


(1,298)

Non-GAAP net income (loss)

720,918


(120,491)


(36,169)


564,258


87,573

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

(All amounts in thousands, except share and per share data)


Three months

Ended September 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$[1]

Net revenues:










Live video service

1,978,098


396,726


-


2,374,824


349,774

Value-added service

998,668


332,171


-


1,330,839


196,012

Mobile marketing

50,415


-


-


50,415


7,425

Mobile games

7,975


-


-


7,975


1,175

Other services

1,810


-


788


2,598


382

Total net revenues

3,036,966


728,897


788


3,766,651


554,768

Cost and expenses (iv):










Cost of revenues

(1,660,806)


(358,743)


(1,230)


(2,020,779)


(297,629)

Research and development

(214,597)


(84,624)


-


(299,221)


(44,070)

Sales and marketing

(361,448)


(393,437)


(7)


(754,892)


(111,184)

General and administrative

(164,331)


(13,620)


(5,698)


(183,649)


(27,049)

Total cost and expenses

(2,401,182)


(850,424)


(6,935)


(3,258,541)


(479,932)

Other operating income

22,893


-


51


22,944


3,379

Income (loss) from operations

658,677


(121,527)


(6,096)


531,054


78,215

Interest income

103,477


706


49


104,232


15,352

Interest expense

(19,885)


-


-


(19,885)


(2,929)

Income (loss) before income tax and share of income on equity
method investments

742,269


(120,821)


(6,047)


615,401


90,638

Income tax (expenses) benefits

(150,278)


6,663


-


(143,615)


(21,152)

Income (loss) before share of income on equity method investments

591,991


(114,158)


(6,047)


471,786


69,486

Share of loss on equity method investments

(15,763)


-


-


(15,763)


(2,322)

Net income (loss)

576,228


(114,158)


(6,047)


456,023


67,164





















(iv)            Share-based compensation was allocated in cost of revenues and operating expenses as follows:












Three months


Ended September 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

3,338


1,096


-


4,434


653

Research and development

32,296


12,314


-


44,610


6,570

Sales and marketing

37,110


4,473


-


41,583


6,125

General and administrative

74,416


837


2,595


77,848


11,466

Total cost and expenses

147,160


18,720


2,595


168,475


24,814









































[1] All translations from RMB to U.S. dollars are made at a rate of RMB6.7896 to US$1.00, the effective noon buying rate for September 30, 2020
as set forth in the H.10 statistical release of the Federal Reserve Board.

 

 

 

Hello Group Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

(All amounts in thousands, except share and per share data)






















Three months


Ended September 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

658,677


(121,527)


(6,096)


531,054


78,215

Share-based compensation

147,160


18,720


2,595


168,475


24,814

Amortization of intangible assets from business
acquisitions

-


38,093


-


38,093


5,611

Non-GAAP income (loss) from operations

805,837


(64,714)


(3,501)


737,622


108,640











Net income (loss)

576,228


(114,158)


(6,047)


456,023


67,164

Share-based compensation

147,160


18,720


2,595


168,475


24,814

Amortization of intangible assets from business
acquisitions

-


38,093


-


38,093


5,611

Tax impacts

-


(9,523)


-


(9,523)


(1,403)

Non-GAAP net income (loss)

723,388


(66,868)


(3,452)


653,068


96,186

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

(All amounts in thousands, except share and per share data)












First nine months

Ended September 30, 2021


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

5,527,851


702,309


-


6,230,160


966,906

Value-added service

3,606,393


889,666


-


4,496,059


697,777

Mobile marketing

133,641


-


-


133,641


20,741

Mobile games

28,418


-


-


28,418


4,410

Other services

9,263


-


3,949


13,212


2,051

Total net revenues

9,305,566


1,591,975


3,949


10,901,490


1,691,885

Cost and expenses (v):










Cost of revenues

(5,338,330)


(816,562)


(37,019)


(6,191,911)


(960,970)

Research and development

(595,176)


(220,581)


-


(815,757)


(126,604)

Sales and marketing

(1,042,458)


(898,612)


(3,635)


(1,944,705)


(301,813)

General and administrative

(471,965)


28,763


(16,241)


(459,443)


(71,304)

Total cost and expenses

(7,447,929)


(1,906,992)


(56,895)


(9,411,816)


(1,460,691)

Other operating income

103,352


34,006


31


137,389


21,322

Income (loss) from operations

1,960,989


(281,011)


(52,915)


1,627,063


252,516

Interest income

283,629


952


125


284,706


44,186

Interest expense

(55,332)


-


-


(55,332)


(8,587)

Other gain or loss, net

(18,000)


-


-


(18,000)


(2,794)

Income (loss) before income tax and share of income on
equity method investments

2,171,286


(280,059)


(52,790)


1,838,437


285,321

Income tax (expenses) benefits

(533,508)


7,443


-


(526,065)


(81,644)

Income (loss) before share of income on equity method
investments

1,637,778


(272,616)


(52,790)


1,312,372


203,677

Share of income on equity method investments

5,961


-


-


5,961


925

Net income (loss)

1,643,739


(272,616)


(52,790)


1,318,333


204,602











(v) Share-based compensation was allocated in cost of revenues and operating expenses as follows:















First nine months


Ended September 30, 2021


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

7,812


6,736


-


14,548


2,258

Research and development

78,259


25,009


-


103,268


16,027

Sales and marketing

37,157


22,640


-


59,797


9,280

General and administrative

238,408


(66,826)


-


171,582


26,629

Total cost and expenses

361,636


(12,441)


-


349,195


54,194

 

 

Hello Group Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

(All amounts in thousands, except share and per share data)






















First nine months


Ended September 30, 2021


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

1,960,989


(281,011)


(52,915)


1,627,063


252,516

Share-based compensation

361,636


(12,441)


-


349,195


54,194

Amortization of intangible assets from
business acquisitions

-


104,004


-


104,004


16,141

Non-GAAP operating income (loss)

2,322,625


(189,448)


(52,915)


2,080,262


322,851











Net income (loss)

1,643,739


(272,616)


(52,790)


1,318,333


204,602

Share-based compensation

361,636


(12,441)


-


349,195


54,194

Amortization of intangible assets from
business acquisitions

-


104,004


-


104,004


16,141

Tax impacts

-


(26,002)


-


(26,002)


(4,035)

Non-GAAP net income (loss)

2,005,375


(207,055)


(52,790)


1,745,530


270,902

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

(All amounts in thousands, except share and per share data)


First nine months

Ended September 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

6,715,266


594,438


-


7,309,704


1,076,603

Value-added service

2,677,575


1,033,338


-


3,710,913


546,559

Mobile marketing

145,534


-


-


145,534


21,435

Mobile games

32,230


-


-


32,230


4,747

Other services

9,168


-


21,438


30,606


4,507

Total net revenues

9,579,773


1,627,776


21,438


11,228,987


1,653,851

Cost and expenses (vi):










Cost of revenues

(5,189,765)


(723,466)


(20,769)


(5,934,000)


(873,984)

Research and development

(601,271)


(239,111)


-


(840,382)


(123,775)

Sales and marketing

(1,093,008)


(1,023,151)


(41)


(2,116,200)


(311,683)

General and administrative

(461,627)


(61,128)


(18,204)


(540,959)


(79,675)

Total cost and expenses

(7,345,671)


(2,046,856)


(39,014)


(9,431,541)


(1,389,117)

Other operating income

140,202


-


190


140,392


20,678

Income (loss) from operations

2,374,304


(419,080)


(17,386)


1,937,838


285,412

Interest income

340,531


2,867


193


343,591


50,605

Interest expense

(59,825)


-


-


(59,825)


(8,811)

Other gain or loss, net

(6,000)


-


-


(6,000)


(884)

Income (loss) before income tax and share of
income on equity method investments

2,649,010


(416,213)


(17,193)


2,215,604


326,322

Income tax (expenses) benefits

(762,768)


12,629


-


(750,139)


(110,484)

Income (loss) before share of income on equity
method investments

1,886,242


(403,584)


(17,193)


1,465,465


215,838

Share of loss on equity method investments

(16,203)


-


-


(16,203)


(2,386)

Net income (loss)

1,870,039


(403,584)


(17,193)


1,449,262


213,452





















(vi) Share-based compensation was allocated in cost of revenues and operating expenses as follows:













First nine months


Ended September 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

12,345


1,862


-


14,207


2,092

Research and development

95,768


41,587


-


137,355


20,231

Sales and marketing

121,456


10,324


-


131,780


19,409

General and administrative

207,650


22,238


7,872


237,760


35,019

Total cost and expenses

437,219


76,011


7,872


521,102


76,751

 

 

 

Hello Group Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

(All amounts in thousands, except share and per share data)
































First nine months


Ended September 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

2,374,304


(419,080)


(17,386)


1,937,838


285,412

Share-based compensation

437,219


76,011


7,872


521,102


76,751

Amortization of intangible assets from business
acquisitions

-


115,577


-


115,577


17,023

Non-GAAP operating income (loss)

2,811,523


(227,492)


(9,514)


2,574,517


379,186











Net income (loss)

1,870,039


(403,584)


(17,193)


1,449,262


213,452

Share-based compensation

437,219


76,011


7,872


521,102


76,751

Amortization of intangible assets from business
acquisitions

-


115,577


-


115,577


17,023

Tax impacts

-


(28,894)


-


(28,894)


(4,255)

Non-GAAP net income (loss)

2,307,258


(240,890)


(9,321)


2,057,047


302,971

 

 

Cision View original content:https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-third-quarter-of-2021-301433585.html

SOURCE Hello Group Inc.