BEIJING, Dec. 8, 2022
/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 2022.
Third Quarter of 2022 Highlights
- Net revenues decreased by 14.0% year over year to RMB3,233.0 million (US$454.5 million*) in the third quarter of
2022.
- Net income attributable to Hello Group Inc. increased to
RMB450.8 million (US$63.4 million) in the third quarter of 2022,
from RMB403.2 million in the same
period of 2021.
- Non-GAAP net income attributable to Hello Group Inc. (note 1)
decreased to RMB535.8 million
(US$75.3 million) in the third
quarter of 2022, from RMB571.6
million in the same period of 2021.
- Diluted net income per American Depositary Share ("ADS") was
RMB2.20 (US$0.31) in the third quarter of 2022, compared
to RMB1.93 in the same period of
2021.
- Non-GAAP diluted net income per ADS (note 1) was RMB2.60 (US$0.37)
in the third quarter of 2022, compared to RMB2.70 in the same period of 2021.
- Monthly Active Users ("MAU") on Momo application were 108.8
million in September 2022, compared
to 115.5 million in September 2021.
MAU on Tantan application were 20.9 million in September 2022.
- For the Momo app total paying users was 8.4 million for the
third quarter of 2022, compared to 9.3 million for the same period
last year. Tantan had 2.0 million paying users for the third
quarter of 2022 compared to 2.9 million from the year ago
period.
* 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 RMB7.1135 to
US$1.00, the effective noon buying rate for September 30, 2022 as
set forth in the H.10 statistical release of the Federal Reserve
Board.
|
First Nine Months of 2022
Highlights
- Net revenues decreased 12.9% year over year to RMB9,491.5 million (US$1,334.3 million) for the first nine months of
2022.
- Net income attributable to Hello Group Inc. was RMB1,086.3 million (US$152.7 million) for the first nine months of
2022, compared to RMB1,329.0 million
during the same period of 2021.
- Non-GAAP net income attributable to Hello Group Inc. (note 1)
was RMB1,397.8 million (US$196.5 million) for the first nine months of
2022, compared to RMB1,756.2 million
during the same period of 2021.
- Diluted net income per ADS was RMB5.30 (US$0.75)
for the first nine months of 2022, compared to RMB6.22 during the same period of 2021.
- Non-GAAP diluted net income per ADS (note 1) was RMB6.75 (US$0.95)
for the first nine months of 2022, compared to RMB8.14 during the same period of 2021.
"I am very happy to return to the CEO position. In the
third quarter, thanks to product and operational enhancements, we
delivered good financial results and made solid progress across all
business lines." commented Yan
Tang, Chairman and CEO of Hello Group. "Such progress on the
business front, coupled with the efforts to improve cost
efficiency, allowed us to see meaningful bottom line improvement on
a sequential basis. I am very proud of the execution capabilities
that the team demonstrated in such a challenging environment."
Third Quarter of 2022 Financial Results
Net revenues
Total net revenues were RMB3,233.0
million (US$454.5 million) in the third quarter
of 2022, a decrease of 14.0% from RMB3,759.2
million in the third quarter of 2021.
Live video service revenues were RMB1,657.5 million (US$233.0 million) in the third quarter of
2022, a decrease of 23.5% from RMB2,166.7
million during the same period of 2021. The decrease was
primarily attributable to COVID related consumption softness and
regulatory changes, and to a lesser extent, Tantan's product
adjustment to improve user experience in September last year and
negative impact of pandemic resurgence and channel investment
reduction.
Value-added service revenues mainly include virtual gift
revenues and membership subscription revenues. Total value-added
service revenues were RMB1,537.7
million (US$216.2 million) in
the third quarter of 2022, an increase of 0.3% from RMB1,533.3 million during the same period of
2021. The year-over-year increase was primarily attributable to the
rapid revenue growth from the new standalone apps. The increase was
partially offset by the decrease in Tantan's value-added service
due to the demonetization process to improve user experience and
retention, as well as the negative impact of COVID and the
reduction of channel investments on Tantan's user growth and paying
conversion.
Mobile marketing revenues were RMB28.2
million (US$4.0 million) in
the third quarter of 2022, a decrease of 34.8% from
RMB43.3 million during the same
period of 2021. The decrease in mobile marketing revenues was due
to the negative impact of macro headwind on client's advertising
budget.
Mobile games revenues were RMB7.7
million (US$1.1 million) in
the third quarter of 2022, a decrease of 4.1% from
RMB8.1 million in the
third quarter of 2021. The decrease in mobile game revenues
was mainly due to the decrease in paying users of mobile games.
Net revenues from the Momo segment decreased from RMB3,246.3 million in the third quarter of
2021 to RMB2,891.0 million
(US$406.4 million) in the third
quarter of 2022, primarily due to the decrease in net revenues from
live video service. Net revenues from the Tantan segment
decreased from RMB510.7 million in
the third quarter of 2021 to RMB341.3
million (US$48.0 million) in
the third quarter of 2022, due to our demonetization strategy
to improve user experience, as well as the negative impact of COVID
and the reduction of channel investments on Tantan's user growth
and paying conversion.
Cost and expenses
Cost and expenses were RMB2,734.2
million (US$384.4 million) in
the third quarter of 2022, a decrease of 17.6% from
RMB3,319.9 million in the third
quarter of 2021. The decrease was primarily attributable to: (a) a
decrease in revenue sharing with broadcasters related to Momo's
core live video service and Tantan's live video service, which was
partially offset by an increase in revenue sharing with virtual
gift recipients for our virtual gift service; (b) a decrease in
sales and marketing expenses due to our initiatives to control cost
and optimize Tantan's channel marketing strategy; (c) a decrease in
salary expenses and share-based compensation expenses, due to our
continuous optimization in personnel costs since the beginning of
the year and the decreased fair value of the share options new
grants; (d) no production cost from television program and film
compared to the third quarter of 2021; and (e) a decrease in
depreciation and amortization cost due to the impairment of
intangible assets in 2021.
Non-GAAP cost and expenses (note 1) were RMB2,649.2 million (US$372.4 million) in the third quarter of 2022, a
decrease of 15.7% from RMB3,143.2
million during the same period of 2021.
Income from operations
Income from operations was RMB520.1
million (US$73.1
million) in the third quarter of 2022, compared to
RMB460.5 million during the same
period of 2021. Income from operations of the Momo segment
was RMB569.4 million (US$80.0
million) in the third quarter of 2022, which decreased
from RMB676.5 million in
the third quarter of 2021. Loss from operations of the
Tantan segment was RMB44.5 million
(US$6.2 million) in the
third quarter of 2022, compared to loss from operations of
RMB179.8 million in the
third quarter of 2021.
Non-GAAP income from operations (note 1) was RMB605.1 million (US$85.1 million) in the third quarter of
2022, compared to RMB637.2 million
during the same period of 2021. Non-GAAP income from
operations of the Momo segment was RMB648.2 million
(US$91.1 million) in the
third quarter of 2022, which decreased from RMB786.3 million in the third quarter of 2021.
Non-GAAP loss from operations of the Tantan segment was
RMB38.3 million (US$5.4 million) in the third quarter of 2022,
compared to non-GAAP loss from operations of RMB112.9 million in the third quarter of
2021.
Other gain or loss, net
Other gain was RMB40.4 million
(US$5.7 million) in the third quarter
of 2022, which mainly resulted from the Company's repurchase of its
convertible senior notes from certain bond holders in the third
quarter of 2022, partially offset by impairment loss on other
long-term investments.
Income tax expenses
Income tax expenses were RMB156.0
million (US$21.9 million) in
the third quarter of 2022, compared to RMB143.2 million in the third quarter of
2021. The increase was primarily due to the fact that in the
third quarter of 2022, we accrued withholding income tax of
RMB42.9 million (US$6.0 million) on undistributed
earnings generated in the third quarter of 2022 by our
wholly-foreign owned enterprise ("WFOE"), because we plan to remit
WFOE's earnings to its offshore parent company in the foreseeable
future to fund its demand for US dollars in business operations,
payments of dividends and debts, potential investments, share
repurchase plan, etc.
Net income
Net income was RMB449.9
million (US$63.2 million) in
the third quarter of 2022, compared to RMB395.9 million during the same period of 2021.
Net income from the Momo segment was RMB499.6 million (US$70.2
million) in the third quarter of 2022, compared
to RMB611.1 million in the same period of 2021. Net loss
from the Tantan segment was RMB45.0
million (US$6.3 million) in
the third quarter of 2022, compared to net loss of
RMB179.0 million in the third quarter
of 2021.
Non-GAAP net income (note 1) was RMB534.8
million (US$75.2 million)
in the third quarter of 2022, compared to RMB564.3 million during the same period of 2021.
Non-GAAP net income from the Momo segment
was RMB578.4 million (US$81.3
million) in the third quarter of 2022, which decreased from
RMB720.9 million in the
third quarter of 2021. Non-GAAP net loss of the
Tantan segment was RMB38.8 million
(US$5.5 million) in the
third quarter of 2022, compared to non-GAAP net loss of
RMB120.5 million in the
third quarter of 2021.
Net income attributable to Hello Group
Inc.
Net income attributable to Hello Group Inc. was RMB450.8 million (US$63.4
million) in the third quarter of 2022, compared
to a net income of RMB403.2 million during the
same period of 2021.
Non-GAAP net income (note 1) attributable to Hello Group Inc.
was RMB535.8 million (US$75.3 million) in
the third quarter of 2022, compared to RMB571.6 million during the same period of
2021.
Net income per
ADS
Diluted net income per ADS was RMB2.20 (US$0.31)
in the third quarter of 2022, compared to RMB1.93 in the third quarter of 2021.
Non-GAAP diluted net income per ADS (note 1) was RMB2.60 (US$0.37)
in the third quarter of 2022, compared to RMB2.70 in the third quarter of 2021.
Cash and cash flow
As of September 30, 2022, the
Company's cash, cash equivalents, short-term deposits, long-term
deposits, short-term restricted cash and long-term restricted cash
totaled RMB13,021.3 million
(US$1,830.5 million), compared
to RMB15,707.0 million as of
December 31, 2021. The decrease was
due to a number of cash outflow items, including our cash dividend
payment of RMB841.0 million
(US$118.2 million) to
shareholders; an aggregate payment of RMB2,137.0 million (US$300.4 million) for the repurchase of
the company's convertible notes; an aggregate of RMB287.7 million (US$40.4 million) in relation to the share
repurchase program; and RMB300.0
million (US$42.2 million) payment to Chinese tax
authorities to repatriate cash from our WOFE in China to our offshore entity in the first nine
months of 2022.
Net cash provided by operating activities in the
third quarter of 2022 was RMB444.5
million (US$62.5 million), compared to RMB559.9 million in the third quarter of
2021.
First Nine Months of 2022 Financial
Results
Net revenues for the first nine months of 2022 were RMB9,491.5 million (US$1,334.3 million), a decrease of 12.9% from
RMB10,901.5 million in the same
period of 2021.
Net income attributable to Hello Group Inc. was
RMB1,086.3 million (US$152.7 million) for the first nine months of
2022, compared to RMB1,329.0 million
during the same period of 2021.
Non-GAAP net income attributable to Hello Group Inc. (note
1) was RMB1,397.8 million
(US$196.5 million) for the first nine
months of 2022, compared to RMB1,756.2
million during the same period of 2021.
Diluted net income per ADS was RMB5.30 (US$0.75)
during the first nine months of 2022, compared to RMB6.22 in the same period of 2021.
Non-GAAP diluted net income per ADS (note 1) was
RMB6.75 (US$0.95) during the first nine months of 2022,
compared to RMB8.14 in the same
period of 2021.
Net cash provided by operating activities was RMB688.2 million (US$96.7
million) during the first nine months of 2022, compared to
RMB893.7 million in the same period
of 2021.
Recent Development
Execution of share repurchase program
On June 7, 2022, Hello Group's
board of directors authorized a share repurchase program under
which the Company may repurchase up to US$200 million of its shares over the next 24
months. As of December 8, 2022, the
Company has repurchased 12.0 million ADSs for US$56.7 million on the open market under this
program, at an average purchase price of US$4.71 per ADS.
Business Outlook
For the fourth quarter of 2022, the Company expects total
net revenues to be between RMB3.15
billion to RMB3.25 billion,
representing a decrease of 14.3% to 11.5% year-over-year. This
forecast reflects the Company's current and preliminary views on
the market and operational conditions, which are subject to change,
particularly as to the potential impact of the COVID-19 resurgence
on the Chinese and global economies, as well as on users' paying
capabilities.
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, impairment loss on goodwill and
intangible assets, 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 (loss) attributable to Hello Group Inc., and diluted net
income per ADS) is adjusted from the most comparable GAAP results
to exclude share-based compensation, impairment loss on goodwill
and intangible assets, 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, impairment loss on goodwill and intangible assets,
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 Thursday, December 8,
2022, at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong Time
on December 8, 2022).
Participants can register for the conference call by navigating
to:
https://s1.c-conf.com/diamondpass/10027148-ghj92l.html.
Upon registration, each participant will receive details for the
conference call, including dial-in numbers, conference call
passcode and a unique access PIN. Please dial in 10 minutes before
the call is scheduled to begin.
A telephone replay of the call will be available after the
conclusion of the conference call through December 15, 2022. The dial-in details for the
replay are as follows:
U.S. / Canada:
1-855-883-1031
Hong Kong:
800-930-639
Passcode: 10027148
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of Hello
Group's website at https://ir.hellogroup.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.
Tantan 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@hellogroup.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: eric.yuan@christensencomms.com
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.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 2022, 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 2022 are
preliminary, unaudited and subject to audit adjustment. In
addition, we may not meet our financial outlook for the fourth
quarter of 2022 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
|
|
2021
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2022
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Live video
service
|
2,166,733
|
|
1,657,531
|
|
233,012
|
|
6,230,160
|
|
4,786,232
|
|
672,838
|
Value-added
service
|
1,533,288
|
|
1,537,666
|
|
216,162
|
|
4,496,059
|
|
4,557,481
|
|
640,681
|
Mobile
marketing
|
43,323
|
|
28,243
|
|
3,970
|
|
133,641
|
|
92,029
|
|
12,937
|
Mobile games
|
8,052
|
|
7,719
|
|
1,085
|
|
28,418
|
|
50,416
|
|
7,087
|
Other
services
|
7,784
|
|
1,862
|
|
262
|
|
13,212
|
|
5,356
|
|
753
|
Total net
revenues
|
3,759,180
|
|
3,233,021
|
|
454,491
|
|
10,901,490
|
|
9,491,514
|
|
1,334,296
|
Cost and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(2,183,337)
|
|
(1,886,135)
|
|
(265,149)
|
|
(6,191,911)
|
|
(5,505,369)
|
|
(773,933)
|
Research and
development
|
(260,939)
|
|
(245,105)
|
|
(34,456)
|
|
(815,757)
|
|
(733,562)
|
|
(103,123)
|
Sales and
marketing
|
(680,896)
|
|
(467,012)
|
|
(65,652)
|
|
(1,944,705)
|
|
(1,666,542)
|
|
(234,279)
|
General and
administrative
|
(194,734)
|
|
(135,933)
|
|
(19,109)
|
|
(459,443)
|
|
(453,514)
|
|
(63,754)
|
Total cost and
expenses
|
(3,319,906)
|
|
(2,734,185)
|
|
(384,366)
|
|
(9,411,816)
|
|
(8,358,987)
|
|
(1,175,089)
|
Other operating
income
|
21,221
|
|
21,289
|
|
2,993
|
|
137,389
|
|
85,790
|
|
12,060
|
Income from
operations
|
460,495
|
|
520,125
|
|
73,118
|
|
1,627,063
|
|
1,218,317
|
|
171,267
|
Interest
income
|
93,564
|
|
89,274
|
|
12,550
|
|
284,706
|
|
280,761
|
|
39,469
|
Interest
expense
|
(18,669)
|
|
(25,010)
|
|
(3,516)
|
|
(55,332)
|
|
(72,575)
|
|
(10,202)
|
Other gain or loss,
net
|
-
|
|
40,403
|
|
5,680
|
|
(18,000)
|
|
118,325
|
|
16,634
|
Income before income
tax and
share of income on
equity method
investments
|
535,390
|
|
624,792
|
|
87,832
|
|
1,838,437
|
|
1,544,828
|
|
217,168
|
Income tax
expenses
|
(143,158)
|
|
(156,041)
|
|
(21,936)
|
|
(526,065)
|
|
(452,860)
|
|
(63,662)
|
Income before share
of income on
equity method
investments
|
392,232
|
|
468,751
|
|
65,896
|
|
1,312,372
|
|
1,091,968
|
|
153,506
|
Share of income (loss)
on equity
method
investments
|
3,658
|
|
(18,880)
|
|
(2,654)
|
|
5,961
|
|
(8,967)
|
|
(1,261)
|
Net
income
|
395,890
|
|
449,871
|
|
63,242
|
|
1,318,333
|
|
1,083,001
|
|
152,245
|
Less: net loss
attributable to non-
controlling
interest
|
(7,301)
|
|
(964)
|
|
(136)
|
|
(10,677)
|
|
(3,288)
|
|
(462)
|
Net income
attributable to the
shareholders of
Hello Group Inc.
|
403,191
|
|
450,835
|
|
63,378
|
|
1,329,010
|
|
1,086,289
|
|
152,707
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to
ordinary
shareholders
|
Basic
|
1.01
|
|
1.15
|
|
0.16
|
|
3.26
|
|
2.75
|
|
0.39
|
Diluted
|
0.96
|
|
1.1
|
|
0.15
|
|
3.11
|
|
2.65
|
|
0.37
|
Weighted average shares
used in
calculating net income
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
400,835,428
|
|
391,027,485
|
|
391,027,485
|
|
408,074,205
|
|
394,333,009
|
|
394,333,009
|
Diluted
|
437,639,164
|
|
423,608,050
|
|
423,608,050
|
|
444,906,615
|
|
429,765,849
|
|
429,765,849
|
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
|
|
2021
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2022
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net
income
|
395,890
|
|
449,871
|
|
63,242
|
|
1,318,333
|
|
1,083,001
|
|
152,245
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
368
|
|
(188,343)
|
|
(26,477)
|
|
(31,830)
|
|
(328,832)
|
|
(46,226)
|
Comprehensive
income
|
396,258
|
|
261,528
|
|
36,765
|
|
1,286,503
|
|
754,169
|
|
106,019
|
Less: comprehensive
(loss) income attributed to the non-
controlling
interest
|
(7,540)
|
|
10,831
|
|
1,523
|
|
(13,323)
|
|
17,710
|
|
2,490
|
Comprehensive income
attributable to Hello Group Inc.
|
403,798
|
|
250,697
|
|
35,242
|
|
1,299,826
|
|
736,459
|
|
103,529
|
Hello Group
Inc.
|
Unaudited Condensed
Consolidated Balance Sheets
|
(All amounts in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
December 31
|
|
September 30
|
|
September 30
|
|
2021
|
|
2022
|
|
2022
|
RMB
|
RMB
|
|
US$
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
5,570,563
|
|
3,435,616
|
|
482,971
|
Short-term
deposits
|
2,860,000
|
|
5,900,000
|
|
829,409
|
Restricted
cash
|
-
|
|
100,327
|
|
14,104
|
Accounts receivable,
net of allowance for doubtful accounts of RMB15,127
and RMB5,945 as of
December 31, 2021 and September 30, 2022,
respectively
|
205,225
|
|
194,344
|
|
27,320
|
Prepaid expenses and
other current assets
|
775,072
|
|
877,348
|
|
123,336
|
Total current
assets
|
9,410,860
|
|
10,507,635
|
|
1,477,140
|
Long-term
deposits
|
7,200,000
|
|
3,500,000
|
|
492,022
|
Long-term restricted
cash
|
76,471
|
|
85,362
|
|
12,000
|
Right-of-use assets,
net
|
257,934
|
|
142,492
|
|
20,031
|
Property and equipment,
net
|
180,664
|
|
186,949
|
|
26,281
|
Intangible assets,
net
|
27,320
|
|
23,482
|
|
3,301
|
Rental
deposits
|
19,204
|
|
20,737
|
|
2,915
|
Long-term
investments
|
820,006
|
|
863,452
|
|
121,382
|
Other non-current
assets
|
83,930
|
|
119,620
|
|
16,816
|
Deferred tax
assets
|
34,849
|
|
35,836
|
|
5,038
|
Total
assets
|
18,111,238
|
|
15,485,565
|
|
2,176,926
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
726,207
|
|
622,980
|
|
87,576
|
Deferred
revenue
|
539,967
|
|
467,763
|
|
65,757
|
Accrued expenses and
other current liabilities
|
911,050
|
|
664,867
|
|
93,466
|
Amount due to related
parties
|
5,016
|
|
9,443
|
|
1,327
|
Lease liabilities due
within one year
|
162,950
|
|
102,585
|
|
14,421
|
Income tax
payable
|
125,773
|
|
74,848
|
|
10,522
|
Deferred consideration
in connection with business acquisitions
|
44,802
|
|
27,313
|
|
3,840
|
Convertible Senior
Notes-current
|
-
|
|
2,726,763
|
|
383,322
|
Total current
liabilities
|
2,515,765
|
|
4,696,562
|
|
660,231
|
Deferred tax
liabilities
|
213,384
|
|
37,635
|
|
5,291
|
Convertible senior
notes
|
4,565,292
|
|
-
|
|
-
|
Lease
liabilities
|
103,105
|
|
42,578
|
|
5,986
|
Other non-current
liabilities
|
128,095
|
|
114,577
|
|
16,107
|
Total
liabilities
|
7,525,641
|
|
4,891,352
|
|
687,615
|
Shareholder's equity
(i)
|
10,585,597
|
|
10,594,213
|
|
1,489,311
|
Total liabilities
and shareholder's equity
|
18,111,238
|
|
15,485,565
|
|
2,176,926
|
|
|
|
|
|
|
|
|
|
|
|
|
(i): As of September
30, 2022, the number of ordinary shares outstanding was
385,309,239.
|
|
|
|
|
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
|
|
2021
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2022
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
395,890
|
|
449,871
|
|
63,242
|
|
1,318,333
|
|
1,083,001
|
|
152,245
|
Adjustments to
reconcile net income to net cash provided by
operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
38,696
|
|
27,047
|
|
3,802
|
|
121,311
|
|
83,107
|
|
11,683
|
Amortization of
intangible assets
|
34,722
|
|
1,279
|
|
180
|
|
107,783
|
|
3,837
|
|
539
|
Share-based
compensation
|
143,280
|
|
84,976
|
|
11,945
|
|
349,195
|
|
311,540
|
|
43,797
|
Share of income (loss)
on equity method investments
|
(3,658)
|
|
18,880
|
|
2,654
|
|
(5,961)
|
|
8,967
|
|
1,261
|
Gain on repurchase of
convertible senior notes
|
-
|
|
(51,653)
|
|
(7,261)
|
|
-
|
|
(129,575)
|
|
(18,215)
|
Loss on long-term
investments
|
-
|
|
11,250
|
|
1,581
|
|
18,000
|
|
11,250
|
|
1,581
|
Gain on disposal of
subsidiaries
|
-
|
|
-
|
|
-
|
|
(15,526)
|
|
-
|
|
-
|
Cash received on
distributions from equity method investments
|
-
|
|
-
|
|
-
|
|
-
|
|
1,708
|
|
240
|
Loss or gain on
disposal of property and equipment
|
2,351
|
|
(923)
|
|
(130)
|
|
1,272
|
|
(783)
|
|
(110)
|
Provision of losses on
receivable and other assets
|
(322)
|
|
(820)
|
|
(115)
|
|
242
|
|
(453)
|
|
(64)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(1,616)
|
|
22,973
|
|
3,229
|
|
(24,358)
|
|
15,695
|
|
2,206
|
Prepaid expenses and
other current assets
|
(85,048)
|
|
41,418
|
|
5,822
|
|
(203,666)
|
|
(16,144)
|
|
(2,269)
|
Rental
deposits
|
(922)
|
|
716
|
|
101
|
|
(1,514)
|
|
1,399
|
|
197
|
Deferred tax
assets
|
(782)
|
|
590
|
|
83
|
|
(2,016)
|
|
(986)
|
|
(139)
|
Other non-current
assets
|
(57,100)
|
|
16,130
|
|
2,268
|
|
(8,050)
|
|
76,820
|
|
10,799
|
Accounts
payable
|
(28,400)
|
|
(438)
|
|
(62)
|
|
19,422
|
|
(106,392)
|
|
(14,956)
|
Income tax
payable
|
24,947
|
|
(15,635)
|
|
(2,198)
|
|
(71,431)
|
|
(50,923)
|
|
(7,159)
|
Deferred
revenue
|
9,369
|
|
(19,356)
|
|
(2,721)
|
|
25,454
|
|
(73,891)
|
|
(10,387)
|
Accrued expenses and
other current liabilities
|
56,954
|
|
(108,513)
|
|
(15,255)
|
|
(38,829)
|
|
(304,346)
|
|
(42,784)
|
Amount due to related
parties
|
1,860
|
|
7,824
|
|
1,100
|
|
(4,696)
|
|
4,427
|
|
622
|
Deferred tax
liabilities
|
(8,676)
|
|
(14,425)
|
|
(2,028)
|
|
(26,941)
|
|
(171,752)
|
|
(24,145)
|
Share-based
compensation liability
|
-
|
|
-
|
|
-
|
|
(678,153)
|
|
-
|
|
-
|
Other non-current
liabilities
|
38,335
|
|
(26,655)
|
|
(3,747)
|
|
13,818
|
|
(58,311)
|
|
(8,197)
|
Net cash provided by
operating activities
|
559,880
|
|
444,536
|
|
62,490
|
|
893,689
|
|
688,195
|
|
96,745
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
(30,919)
|
|
(27,051)
|
|
(3,803)
|
|
(76,122)
|
|
(70,392)
|
|
(9,896)
|
Payment for long-term
investments
|
-
|
|
-
|
|
-
|
|
(300,000)
|
|
(55,343)
|
|
(7,780)
|
Purchase of short-term
deposits
|
(2,100,000)
|
|
(1,700,000)
|
|
(238,982)
|
|
(4,576,688)
|
|
(1,700,000)
|
|
(238,982)
|
Cash received on
maturity of short-term deposits
|
3,458,658
|
|
2,700,000
|
|
379,560
|
|
6,117,570
|
|
3,710,000
|
|
521,544
|
Cash received on
investment income distribution
|
-
|
|
-
|
|
-
|
|
5,610
|
|
3,523
|
|
495
|
Cash of disposed
subsidiaries
|
-
|
|
-
|
|
-
|
|
(8,750)
|
|
-
|
|
-
|
Purchase of long-term
deposits
|
-
|
|
(1,000,000)
|
|
(140,578)
|
|
(250,000)
|
|
(2,550,000)
|
|
(358,473)
|
Cash received on
maturity of long-term deposits
|
-
|
|
-
|
|
-
|
|
-
|
|
1,200,000
|
|
168,693
|
Other investing
activities
|
13
|
|
2,781
|
|
391
|
|
2,406
|
|
3,103
|
|
436
|
Net cash provided by
(used in) investing activities
|
1,327,752
|
|
(24,270)
|
|
(3,412)
|
|
914,026
|
|
540,891
|
|
76,037
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Deferred payment for
business acquisition
|
-
|
|
(15,858)
|
|
(2,229)
|
|
(12,907)
|
|
(21,421)
|
|
(3,011)
|
Proceeds from exercise
of share options
|
461
|
|
18
|
|
3
|
|
771
|
|
51
|
|
7
|
Payment in relation to
the share repurchase program
|
(756,714)
|
|
(285,355)
|
|
(40,115)
|
|
(862,865)
|
|
(287,690)
|
|
(40,443)
|
Repurchase of
subsidiary's share options
|
(48,489)
|
|
(14,330)
|
|
(2,014)
|
|
(54,050)
|
|
(39,867)
|
|
(5,604)
|
Dividends
payment
|
-
|
|
-
|
|
-
|
|
(852,743)
|
|
(840,997)
|
|
(118,225)
|
Payment for redemption
of convertible bonds
|
-
|
|
(1,024,443)
|
|
(144,014)
|
|
-
|
|
(2,136,987)
|
|
(300,413)
|
Net cash used in
financing activities
|
(804,742)
|
|
(1,339,968)
|
|
(188,369)
|
|
(1,781,794)
|
|
(3,326,911)
|
|
(467,689)
|
Effect of exchange rate
changes
|
(3,661)
|
|
(6,190)
|
|
(869)
|
|
(28,697)
|
|
72,096
|
|
10,135
|
Net increase
(decrease) in cash and cash equivalents
|
1,079,229
|
|
(925,892)
|
|
(130,160)
|
|
(2,776)
|
|
(2,025,729)
|
|
(284,772)
|
Cash, cash equivalents
and restricted cash at the beginning of period
|
2,284,067
|
|
4,547,197
|
|
639,235
|
|
3,366,072
|
|
5,647,034
|
|
793,847
|
Cash, cash equivalents
and restricted cash at the end of period
|
3,363,296
|
|
3,621,305
|
|
509,075
|
|
3,363,296
|
|
3,621,305
|
|
509,075
|
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,
2021
|
Ended September 30,
2022
|
|
Ended September 30,
2022
|
|
GAAP
|
Amortization
of
intangible
assets
from
business
acquisitions
|
Share-based
compensation
|
Tax
impacts
|
Non-GAAP
|
|
GAAP
|
Share-based
compensation
|
Non-GAAP
|
|
GAAP
|
Share-based
compensation
|
Non-GAAP
|
|
|
|
(ii)
|
|
|
|
|
|
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
US$
|
US$
|
US$
|
Cost of
revenues
|
(2,183,337)
|
17,286
|
6,623
|
-
|
(2,159,428)
|
|
(1,886,135)
|
1,496
|
(1,884,639)
|
|
(265,149)
|
210
|
(264,939)
|
Research and
development
|
(260,939)
|
-
|
29,094
|
-
|
(231,845)
|
|
(245,105)
|
21,713
|
(223,392)
|
|
(34,456)
|
3,052
|
(31,404)
|
Sales and
marketing
|
(680,896)
|
16,165
|
27,653
|
-
|
(637,078)
|
|
(467,012)
|
8,453
|
(458,559)
|
|
(65,652)
|
1,188
|
(64,464)
|
General and
administrative
|
(194,734)
|
-
|
79,910
|
-
|
(114,824)
|
|
(135,933)
|
53,314
|
(82,619)
|
|
(19,109)
|
7,495
|
(11,614)
|
Cost and operating
expenses
|
(3,319,906)
|
33,451
|
143,280
|
-
|
(3,143,175)
|
|
(2,734,185)
|
84,976
|
(2,649,209)
|
|
(384,366)
|
11,945
|
(372,421)
|
Income from
operations
|
460,495
|
33,451
|
143,280
|
-
|
637,226
|
|
520,125
|
84,976
|
605,101
|
|
73,118
|
11,945
|
85,063
|
Net income attributable
to Hello
Group Inc.
|
403,191
|
33,451
|
143,280
|
(8,363)
|
571,559
|
|
450,835
|
84,976
|
535,811
|
|
63,378
|
11,945
|
75,323
|
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,
2021
|
Ended September 30,
2022
|
|
Ended September 30,
2022
|
|
GAAP
|
Amortization
of
intangible
assets
from
business
acquisitions
|
Share-based
compensation
|
Tax
impacts
|
Non-GAAP
|
|
GAAP
|
Share-based
compensation
|
Non-GAAP
|
|
GAAP
|
Share-based
compensation
|
Non-GAAP
|
|
|
|
(ii)
|
|
|
|
|
|
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
US$
|
US$
|
US$
|
Cost of
revenues
|
(6,191,911)
|
51,853
|
14,548
|
-
|
(6,125,510)
|
|
(5,505,369)
|
12,488
|
(5,492,881)
|
|
(773,933)
|
1,756
|
(772,177)
|
Research and
development
|
(815,757)
|
3,660
|
103,268
|
-
|
(708,829)
|
|
(733,562)
|
66,652
|
(666,910)
|
|
(103,123)
|
9,370
|
(93,753)
|
Sales and
marketing
|
(1,944,705)
|
48,491
|
59,797
|
-
|
(1,836,417)
|
|
(1,666,542)
|
29,952
|
(1,636,590)
|
|
(234,279)
|
4,211
|
(230,068)
|
General and
administrative
|
(459,443)
|
-
|
171,582
|
-
|
(287,861)
|
|
(453,514)
|
202,448
|
(251,066)
|
|
(63,754)
|
28,460
|
(35,294)
|
Cost and operating
expenses
|
(9,411,816)
|
104,004
|
349,195
|
-
|
(8,958,617)
|
|
(8,358,987)
|
311,540
|
(8,047,447)
|
|
(1,175,089)
|
43,797
|
(1,131,292)
|
Income from
operations
|
1,627,063
|
104,004
|
349,195
|
-
|
2,080,262
|
|
1,218,317
|
311,540
|
1,529,857
|
|
171,267
|
43,797
|
215,064
|
Net income attributable
to
Hello Group
Inc.
|
1,329,010
|
104,004
|
349,195
|
(26,002)
|
1,756,207
|
|
1,086,289
|
311,540
|
1,397,829
|
|
152,707
|
43,797
|
196,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2022
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Live video
service
|
1,517,872
|
|
139,659
|
|
-
|
|
1,657,531
|
|
233,012
|
Value-added
service
|
1,336,050
|
|
201,616
|
|
-
|
|
1,537,666
|
|
216,162
|
Mobile
marketing
|
28,243
|
|
-
|
|
-
|
|
28,243
|
|
3,970
|
Mobile games
|
7,719
|
|
-
|
|
-
|
|
7,719
|
|
1,085
|
Other
services
|
1,126
|
|
-
|
|
736
|
|
1,862
|
|
262
|
Total net
revenues
|
2,891,010
|
|
341,275
|
|
736
|
|
3,233,021
|
|
454,491
|
Cost and expenses
(iii):
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(1,704,934)
|
|
(180,277)
|
|
(924)
|
|
(1,886,135)
|
|
(265,149)
|
Research and
development
|
(176,727)
|
|
(68,378)
|
|
-
|
|
(245,105)
|
|
(34,456)
|
Sales and
marketing
|
(335,350)
|
|
(130,222)
|
|
(1,440)
|
|
(467,012)
|
|
(65,652)
|
General and
administrative
|
(124,184)
|
|
(8,574)
|
|
(3,175)
|
|
(135,933)
|
|
(19,109)
|
Total cost and
expenses
|
(2,341,195)
|
|
(387,451)
|
|
(5,539)
|
|
(2,734,185)
|
|
(384,366)
|
Other operating
income
|
19,563
|
|
1,722
|
|
4
|
|
21,289
|
|
2,993
|
Income (loss) from
operations
|
569,378
|
|
(44,454)
|
|
(4,799)
|
|
520,125
|
|
73,118
|
Interest
income
|
89,003
|
|
187
|
|
84
|
|
89,274
|
|
12,550
|
Interest
expense
|
(25,010)
|
|
-
|
|
-
|
|
(25,010)
|
|
(3,516)
|
Other gain or loss,
net
|
40,403
|
|
-
|
|
-
|
|
40,403
|
|
5,680
|
Income (loss) before
income tax and share of income on equity
method
investments
|
673,774
|
|
(44,267)
|
|
(4,715)
|
|
624,792
|
|
87,832
|
Income tax
expenses
|
(155,328)
|
|
(713)
|
|
-
|
|
(156,041)
|
|
(21,936)
|
Income (loss) before
share of income on equity method
investments
|
518,446
|
|
(44,980)
|
|
(4,715)
|
|
468,751
|
|
65,896
|
Share of loss on equity
method investments
|
(18,880)
|
|
-
|
|
-
|
|
(18,880)
|
|
(2,654)
|
Net income
(loss)
|
499,566
|
|
(44,980)
|
|
(4,715)
|
|
449,871
|
|
63,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(iii) Share-based
compensation was allocated in cost of revenues and operating
expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
|
|
Ended September 30,
2022
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Cost of
revenues
|
1,478
|
|
18
|
|
-
|
|
1,496
|
|
210
|
Research and
development
|
15,640
|
|
6,073
|
|
-
|
|
21,713
|
|
3,052
|
Sales and
marketing
|
8,446
|
|
7
|
|
-
|
|
8,453
|
|
1,188
|
General and
administrative
|
53,272
|
|
42
|
|
-
|
|
53,314
|
|
7,495
|
Total cost and
expenses
|
78,836
|
|
6,140
|
|
-
|
|
84,976
|
|
11,945
|
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,
2022
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Income (loss) from
operations
|
569,378
|
|
(44,454)
|
|
(4,799)
|
|
520,125
|
|
73,118
|
Share-based
compensation
|
78,836
|
|
6,140
|
|
-
|
|
84,976
|
|
11,945
|
Non-GAAP income
(loss) from operations
|
648,214
|
|
(38,314)
|
|
(4,799)
|
|
605,101
|
|
85,063
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
499,566
|
|
(44,980)
|
|
(4,715)
|
|
449,871
|
|
63,242
|
Share-based
compensation
|
78,836
|
|
6,140
|
|
-
|
|
84,976
|
|
11,945
|
Non-GAAP net income
(loss)
|
578,402
|
|
(38,840)
|
|
(4,715)
|
|
534,847
|
|
75,187
|
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$[1]
|
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
(iv):
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(iv) 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
|
|
|
|
|
|
|
|
|
|
|
[1] All translations
from RMB to U.S. dollars are made at a rate of RMB6.4434 to
US$1.00, the effective noon buying rate for September 30, 2021 as
set forth in the H.10 statistical release of the Federal Reserve
Board.
|
Hello Group
Inc.
|
Reconciliation of
GAAP and NON-GAAP Results of Unaudited Segment
Report
|
(All amounts in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
|
|
Ended September 30,
2021
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
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)
|
|
First nine
months
|
Ended September 30,
2022
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Live video
service
|
4,404,991
|
|
381,241
|
|
-
|
|
4,786,232
|
|
672,838
|
Value-added
service
|
3,917,609
|
|
639,872
|
|
-
|
|
4,557,481
|
|
640,681
|
Mobile
marketing
|
92,029
|
|
-
|
|
-
|
|
92,029
|
|
12,937
|
Mobile games
|
50,416
|
|
-
|
|
-
|
|
50,416
|
|
7,087
|
Other
services
|
4,298
|
|
-
|
|
1,058
|
|
5,356
|
|
753
|
Total net
revenues
|
8,469,343
|
|
1,021,113
|
|
1,058
|
|
9,491,514
|
|
1,334,296
|
Cost and expenses
(v):
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(4,981,345)
|
|
(522,188)
|
|
(1,836)
|
|
(5,505,369)
|
|
(773,933)
|
Research and
development
|
(536,640)
|
|
(196,922)
|
|
-
|
|
(733,562)
|
|
(103,123)
|
Sales and
marketing
|
(1,039,526)
|
|
(623,680)
|
|
(3,336)
|
|
(1,666,542)
|
|
(234,279)
|
General and
administrative
|
(415,954)
|
|
(25,335)
|
|
(12,225)
|
|
(453,514)
|
|
(63,754)
|
Total cost and
expenses
|
(6,973,465)
|
|
(1,368,125)
|
|
(17,397)
|
|
(8,358,987)
|
|
(1,175,089)
|
Other operating
income
|
76,253
|
|
9,491
|
|
46
|
|
85,790
|
|
12,060
|
Income (loss) from
operations
|
1,572,131
|
|
(337,521)
|
|
(16,293)
|
|
1,218,317
|
|
171,267
|
Interest
income
|
280,252
|
|
291
|
|
218
|
|
280,761
|
|
39,469
|
Interest
expense
|
(72,575)
|
|
-
|
|
-
|
|
(72,575)
|
|
(10,202)
|
Other gain or loss,
net
|
118,325
|
|
-
|
|
-
|
|
118,325
|
|
16,634
|
Income (loss) before
income tax and share
of income on equity
method investments
|
1,898,133
|
|
(337,230)
|
|
(16,075)
|
|
1,544,828
|
|
217,168
|
Income tax
expenses
|
(451,061)
|
|
(1,799)
|
|
-
|
|
(452,860)
|
|
(63,662)
|
Income (loss) before
share of income on
equity method
investments
|
1,447,072
|
|
(339,029)
|
|
(16,075)
|
|
1,091,968
|
|
153,506
|
Share of loss on equity
method investments
|
(8,967)
|
|
-
|
|
-
|
|
(8,967)
|
|
(1,261)
|
Net income
(loss)
|
1,438,105
|
|
(339,029)
|
|
(16,075)
|
|
1,083,001
|
|
152,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(v) Share-based
compensation was allocated in cost of revenues and operating
expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First nine
months
|
|
Ended September 30,
2022
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Cost of
revenues
|
5,477
|
|
7,011
|
|
-
|
|
12,488
|
|
1,756
|
Research and
development
|
51,752
|
|
14,900
|
|
-
|
|
66,652
|
|
9,370
|
Sales and
marketing
|
29,729
|
|
223
|
|
-
|
|
29,952
|
|
4,211
|
General and
administrative
|
202,319
|
|
129
|
|
-
|
|
202,448
|
|
28,460
|
Total cost and
expenses
|
289,277
|
|
22,263
|
|
-
|
|
311,540
|
|
43,797
|
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,
2022
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Operating income
(loss)
|
1,572,131
|
|
(337,521)
|
|
(16,293)
|
|
1,218,317
|
|
171,267
|
Share-based
compensation
|
289,277
|
|
22,263
|
|
-
|
|
311,540
|
|
43,797
|
Non-GAAP operating
income
(loss)
|
1,861,408
|
|
(315,258)
|
|
(16,293)
|
|
1,529,857
|
|
215,064
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
1,438,105
|
|
(339,029)
|
|
(16,075)
|
|
1,083,001
|
|
152,245
|
Share-based
compensation
|
289,277
|
|
22,263
|
|
-
|
|
311,540
|
|
43,797
|
Non-GAAP net income
(loss)
|
1,727,382
|
|
(316,766)
|
|
(16,075)
|
|
1,394,541
|
|
196,042
|
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
(vi):
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(vi) 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
|
View original
content:https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-third-quarter-of-2022-301697932.html
SOURCE Hello Group Inc.