Press Release

Printer Friendly VersionView printer-friendly version << Back



Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2023

BEIJING, March 14, 2024 /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 fourth quarter and the full year ended December 31, 2023.  

Fourth Quarter of 2023 Highlights

  • Net revenues decreased by 6.5% year over year to RMB3,002.9 million (US$423.0 million*) in the fourth quarter of 2023.
  • Net income attributable to Hello Group Inc. increased to RMB452.5 million (US$63.7 million) in the fourth quarter of 2023, from RMB398.0 million in the same period of 2022.
  • Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB514.7 million (US$72.5 million) in the fourth quarter of 2023, from RMB487.9 million in the same period of 2022.
  • Diluted net income per American Depositary Share ("ADS") was RMB2.32 (US$0.33) in the fourth quarter of 2023, compared to RMB2.01 in the same period of 2022.
  • Non-GAAP diluted net income per ADS (note 1) was RMB2.63 (US$0.37) in the fourth quarter of 2023, compared to RMB2.46 in the same period of 2022.
  • Monthly Active Users ("MAU") on Tantan app were 13.7 million in December 2023, compared to 18.4 million in December 2022.
  • For the Momo app total paying users was 7.4 million for the fourth quarter of 2023, compared to 7.8 million for the same period last year. Tantan had 1.2 million paying users for the fourth quarter of 2023 compared to 1.7 million from the year ago period.

Full Year 2023 Highlights

  • Net revenues decreased by 5.5% year over year to RMB12,002.3 million (US$1,690.5 million) for the full year of 2023.
  • Net income attributable to Hello Group Inc. was RMB1,957.6 million (US$275.7 million) for the full year of 2023, compared to RMB1,484.3 million during the same period of 2022.
  • Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,224.7 million (US$313.3 million) for the full year of 2023, compared to RMB1,885.8 million during the same period of 2022.
  • Diluted net income per ADS was RMB9.84 (US$1.39) for the full year of 2023, compared to RMB7.31 during the same period of 2022.
  • Non-GAAP diluted net income per ADS (note 1) was RMB11.17 (US$1.57) for the full year of 2023, compared to RMB9.20 during the same period of 2022.

"2023 was a busy, yet fruitful year. Despite many changes and challenges in the external environment, our team made steady progress against our strategic priorities." Commented Yan Tang, Chairman and CEO of Hello Group. "With solid improvement in cost efficiency, we were able to meaningfully improve the profitability of the company against economic headwinds. I am also pleased to see that our new endeavors in the overseas market have started bearing fruits, which gives us more confidence to invest more resources and take bigger strides to explore wider markets abroad."

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate 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 RMB7.0999 to US$1.00, the effective noon buying rate for December 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

Fourth Quarter of 2023 Financial Results

Net revenues

Total net revenues were RMB3,002.9 million (US$423.0 million) in the fourth quarter of 2023, a decrease of 6.5% from RMB3,212.7 million in the fourth quarter of 2022.

Live video service revenues were RMB1,523.9 million (US$214.6 million) in the fourth quarter of 2023, a decrease of 11.6% from RMB1,724.2 million during the same period of 2022. The decrease was primarily attributable to a soft consumer sentiment in the current macro environment and our proactive operation adjustments to de-emphasise large scale competition events in the Momo app, and to a lesser degree, Tantan pivoting away from the less dating-centric live video service.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,424.9 million (US$200.7 million) in the fourth quarter of 2023, a decrease of 1.7% from RMB1,449.5 million during the same period of 2022. The decrease was primarily due to the impact of the macro economy on consumer sentiment as well as our product adjustments to improve Momo app's ecosystem, and to a lesser extent, the decline in Tantan's paying users that resulted from a reduction in channel investment, the anti-spam campaign and the adjustments to subscription renewals. The decrease was partially offset by the rapid revenue growth from the new standalone apps.

Mobile marketing revenues were RMB44.9 million (US$6.3 million) in the fourth quarter of 2023, an increase of 36.4% from RMB32.9 million during the same period of 2022.

Mobile games revenues were RMB5.4 million (US$0.8 million) in the fourth quarter of 2023, an increase of 2.4% from RMB5.3 million in the fourth quarter of 2022.

Net revenues from the Momo segment decreased from RMB2,865.8 million in the fourth quarter of 2022 to RMB2,728.7 million (US$384.3 million) in the fourth quarter of 2023, primarily due to the decrease in net revenues from value-added service and live video service on Momo app. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB346.7 million in the fourth quarter of 2022 to RMB272.2 million (US$38.3 million) in the fourth quarter of 2023, mainly due to the decrease in net revenues from live video service, and to a lesser extent, the decrease from value-added service.

Cost and expenses

Cost and expenses were RMB2,431.8 million (US$342.5 million) in the fourth quarter of 2023, a decrease of 11.2% from RMB2,738.3 million in the fourth quarter of 2022. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service on the Momo app and on the Tantan app, and a decrease in revenue sharing with virtual gift recipients of virtual gift service on the Momo app. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value; (c) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan's channel marketing strategy and, to a lesser extent, Momo's strategy to trim inefficient channel marketing spend.

Non-GAAP cost and expenses (note 1) were RMB2,369.5 million (US$333.7 million) in the fourth quarter of 2023, a decrease of 10.5% from RMB2,648.3 million during the same period of 2022.

Other operating income (loss), net

Other operating income was RMB30.8 million (US$4.3 million) in the fourth quarter of 2023, compared to a loss of RMB65.2 million during the fourth quarter of 2022. The other operating loss in the fourth quarter of 2022 mainly included a contingent loss accrual of RMB92.9 million related to an ongoing investigation of the alleged illegal activity on the source of the funding consumed on Momo's platform.

Income from operations

Income from operations was RMB602.0 million (US$84.8 million) in the fourth quarter of 2023, compared to RMB409.2 million during the same period of 2022. Income from operations of the Momo segment was RMB576.9 million (US$81.3 million) in the fourth quarter of 2023, which increased from RMB435.8 million in the fourth quarter of 2022. Income from operations of the Tantan segment was RMB26.8 million (US$3.8 million) in the fourth quarter of 2023, compared to a loss from operations of RMB21.7 million in the fourth quarter of 2022.

Non-GAAP income from operations (note 1) was RMB664.2 million (US$93.6 million) in the fourth quarter of 2023, compared to RMB499.2 million during the same period of 2022. Non-GAAP income from operations of the Momo segment was RMB638.9 million (US$90.0 million) in the fourth quarter of 2023, which increased from RMB519.2 million in the fourth quarter of 2022. Non-GAAP income from operations of the Tantan segment was RMB27.0 million (US$3.8 million) in the fourth quarter of 2023, compared to a non-GAAP loss from operations of RMB15.2 million in the fourth quarter of 2022.  

Income tax expenses

Income tax expenses were RMB183.4 million (US$25.8 million) in the fourth quarter of 2023, compared to RMB109.4 million in the fourth quarter of 2022. The increase in income tax expenses was primarily due to the higher profit in the fourth quarter of 2023.

Net income

Net income was RMB452.5 million (US$63.7 million) in the fourth quarter of 2023, compared to RMB397.0 million during the same period of 2022. Net income from the Momo segment was RMB430.0 million (US$60.6 million) in the fourth quarter of 2023, compared to RMB397.1 million in the same period of 2022. Net income from the Tantan segment was RMB24.2 million (US$3.4 million) in the fourth quarter of 2023, compared to RMB4.7 million in the fourth quarter of 2022.

Non-GAAP net income (note 1) was RMB514.7 million (US$72.5 million) in the fourth quarter of 2023, compared to RMB487.0 million during the same period of 2022. Non-GAAP net income from the Momo segment was RMB492.1 million (US$69.3 million) in the fourth quarter of 2023, which increased from RMB480.5 million in the fourth quarter of 2022. Non-GAAP net income of the Tantan segment was RMB24.4 million (US$3.4 million) in the fourth quarter of 2023, compared to RMB11.3 million in the fourth quarter of 2022.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB452.5 million (US$63.7 million) in the fourth quarter of 2023, compared to RMB398.0 million during the same period of 2022.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB514.7 million (US$72.5 million) in the fourth quarter of 2023, compared to RMB487.9 million during the same period of 2022.

Net income per ADS

Diluted net income per ADS was RMB2.32 (US$0.33) in the fourth quarter of 2023, compared to RMB2.01 in the fourth quarter of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB2.63 (US$0.37) in the fourth quarter of 2023, compared to RMB2.46 in the fourth quarter of 2022.

Cash and cash flow

As of December 31, 2023, the Company's cash, cash equivalents, short-term deposits, long-term deposits, short-term investments, short-term restricted cash and long-term restricted cash totaled RMB13,478.5 million (US$1,898.4 million), compared to RMB13,398.8 million as of December 31, 2022.

Net cash provided by operating activities in the fourth quarter of 2023 was RMB415.9 million (US$58.6 million), compared to RMB538.7 million in the fourth quarter of 2022.

Full Year 2023 Financial Results

Net revenues for the full year of 2023 were RMB12,002.3 million (US$1,690.5 million), a decrease of 5.5% from RMB12,704.2 million in the same period of 2022.

Net income attributable to Hello Group Inc. was RMB1,957.6 million (US$275.7 million) for the full year of 2023, compared to RMB1,484.3 million during the same period of 2022.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,224.7 million (US$313.3 million) for the full year of 2023, compared to RMB1,885.8 million during the same period of 2022.

Diluted net income per ADS was RMB9.84 (US$1.39) during the full year of 2023, compared to RMB7.31 in the same period of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB11.17 (US$1.57) during the full year of 2023, compared to RMB9.20 in the same period of 2022.

Net cash provided by operating activities was RMB2,277.2 million (US$320.7 million) during the full year of 2023, compared to RMB1,226.9 million in the same period of 2022.

Recent Development

Declaration of a special cash dividend

Hello Group's board of directors has declared a special cash dividend in the amount of US$0.54 per ADS, or US$0.27 per ordinary share. The cash dividend will be paid on April 30, 2024 to shareholders of record at the close of business on April 12, 2024. The ex-dividend date will be April 11, 2024. The aggregate amount of cash dividends to be paid is approximately US$103 million, which will be funded by available cash on the Company's balance sheet.

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 up to June 6, 2024 (the "Share Repurchase Program"). As of March 14, 2024, the Company has repurchased 16.2 million ADSs for US$86.1 million on the open market under this program, at an average purchase price of US$5.31 per ADS.

On March 14, 2024, Hello Group's board of directors approved to amend the Share Repurchase Program to (i) extend the term of the Share Repurchase Program up to June 30, 2026, and (ii) upsize the Share Repurchase Program so that the Company is authorized to, from time to time, acquire up to an aggregate of US$286.1 million worth of its shares in the form of ADSs and/or the ordinary shares of the Company in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations.

Business Outlook

For the first quarter of 2024, the Company expects total net revenues to be between RMB2.45 billion to RMB2.55 billion, representing a decrease of 13.1% to 9.5% year over year. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.

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.

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. A limitation of using these non-GAAP financial measures is that share-based compensation has 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, March 14, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 14, 2024).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10037219-7ww6gf.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 March 21, 2024. The dial-in details for the replay are as follows:

U.S. / Canada: 1-855-883-1031

Hong Kong: 800-930-639

Passcode: 10037219

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

Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: Xiaoyan.Su@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 first quarter of 2024, 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 fourth quarter of 2023 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2024 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 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


Year


Ended December 31


Ended December 31



2022


2023


2023


2022


2023


2023



RMB


RMB


US$


RMB


RMB


US$


Net revenues:













Live video service

1,724,228


1,523,885


214,635


6,510,460


6,072,871


855,346


Value-added service

1,449,537


1,424,893


200,692


6,007,018


5,752,571


810,233


Mobile marketing

32,927


44,915


6,326


124,956


133,677


18,828


Mobile games

5,316


5,441


766


55,732


19,610


2,762


Other services

650


3,798


535


6,006


23,594


3,323


Total net revenues

3,212,658


3,002,932


422,954


12,704,172


12,002,323


1,690,492


Cost and expenses:













Cost of revenues

(1,916,050)


(1,770,117)


(249,316)


(7,421,419)


(7,025,394)


(989,506)


Research and development

(272,657)


(231,445)


(32,598)


(1,006,219)


(884,590)


(124,592)


Sales and marketing

(407,075)


(304,696)


(42,916)


(2,073,617)


(1,414,949)


(199,291)


General and administrative

(142,492)


(125,498)


(17,676)


(596,006)


(502,479)


(70,773)


Total cost and expenses

(2,738,274)


(2,431,756)


(342,506)


(11,097,261)


(9,827,412)


(1,384,162)


Other operating (loss) income, net

(65,158)


30,821


4,341


20,632


130,105


18,325


Income from operations

409,226


601,997


84,789


1,627,543


2,305,016


324,655


Interest income

88,118


124,354


17,515


368,879


436,253


61,445


Interest expense

(10,955)


(20,552)


(2,895)


(83,530)


(62,223)


(8,764)


Other gain or loss, net

-


(31,250)


(4,401)


118,325


(26,685)


(3,759)


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

486,389


674,549


95,008


2,031,217


2,652,361


373,577


Income tax expenses

(109,421)


(183,377)


(25,828)


(562,281)


(630,023)


(88,737)


Income before share of income on equity method investments

376,968


491,172


69,180


1,468,936


2,022,338


284,840


Share of income (loss) on equity method investments

20,040


(38,703)


(5,451)


11,073


(70,643)


(9,950)


Net income 

397,008


452,469


63,729


1,480,009


1,951,695


274,890


Less: net loss attributable to non-controlling interest

(986)


-


-


(4,274)


(5,886)


(829)


Net income attributable to the shareholders of Hello Group Inc.

397,994


452,469


63,729


1,484,283


1,957,581


275,719


Net income per share attributable to ordinary shareholders













Basic

1.05


1.2


0.17


3.8


5.18


0.73


Diluted

1.01


1.16


0.16


3.65


4.92


0.69


Weighted average shares used in calculating net income per ordinary share













Basic

377,841,986


376,317,036


376,317,036


390,176,367


377,639,399


377,639,399


Diluted

406,152,757


390,956,175


390,956,175


423,810,279


401,833,328


401,833,328


 

 

 

Hello Group Inc.


Unaudited Condensed Consolidated Statement of Comprehensive Income


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









Three months


Year


Ended December 31


Ended December 31



2022


2023


2023


2022


2023


2023



RMB


RMB


US$


RMB


RMB


US$


Net income 

397,008


452,469


63,729


1,480,009


1,951,695


274,890


Other comprehensive income (loss), net of tax:













Foreign currency translation adjustment

54,041


(95,774)


(13,489)


(274,791)


20,414


2,875


Comprehensive income 

451,049


356,695


50,240


1,205,218


1,972,109


277,765


Less: comprehensive (loss) income attributed to the non-controlling
interest

(7,154)


(5,020)


(707)


10,556


357


50


Comprehensive income attributable to Hello Group Inc.

458,203


361,715


50,947


1,194,662


1,971,752


277,715


 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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


December 31


December 31


December 31


2022


2023


2023

RMB

RMB


US$

Assets






Current assets






Cash and cash equivalents

5,018,129


5,620,466


791,626

Short-term deposits

5,300,000


1,270,626


178,964

Restricted cash

97,706


10,147


1,429

Short-term investments

300,240


-


-

Accounts receivable, net of allowance for doubtful accounts of
RMB5,870 and RMB12,780 as of December 31, 2022 and 2023,
respectively

188,711


201,517


28,383

Amounts due from related parties

55


7,258


1,022

Prepaid expenses and other current assets

819,706


723,364


101,884

Total current assets

11,724,547


7,833,378


1,103,308

Long-term deposits

2,600,000


3,924,975


552,821

Long-term restricted cash

82,766


2,652,299


373,569

Right-of-use assets, net

115,520


109,572


15,433

Property and equipment, net

172,984


659,033


92,823

Intangible assets, net

22,203


17,086


2,407

Rental deposits

20,737


12,962


1,826

Long-term investments

893,988


786,911


110,834

Amounts due from RPT-non current

-


20,000


2,817

Other non-current assets

162,499


180,052


25,360

Deferred tax assets

34,343


31,741


4,471

Total assets

15,829,587


16,228,009


2,285,669

Liabilities and equity






Current liabilities






Accounts payable

617,022


616,681


86,857

Deferred revenue

484,775


442,805


62,368

Accrued expenses and other current liabilities

797,504


630,617


88,821

Amounts due to related parties

9,178


4,314


608

Lease liabilities due within one year

88,352


60,008


8,452

Income tax payable

68,765


94,719


13,341

Deferred consideration in connection with business acquisitions

26,483


27,261


3,840

Long-term borrowings, current portion

-


215,615


30,369

Convertible senior notes-current

2,646,168


-


-

Total current liabilities

4,738,247


2,092,020


294,656

Deferred tax liabilities

22,011


24,987


3,519

Convertible Senior Notes

-


19,571


2,757

Long-term borrowings

-


1,938,385


273,016

Lease liabilities

33,281


52,171


7,348

Other non-current liabilities

105,410


114,085


16,069

Total liabilities

4,898,949


4,241,219


597,365

Shareholder's equity (i)

10,930,638


11,986,790


1,688,304

Total liabilities and shareholder's equity

15,829,587


16,228,009


2,285,669



















(i): As of December 31, 2023, the number of ordinary shares outstanding was 375,085,192.









 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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


Three months


Year



Ended December 31


Ended December 31



2022


2023


2023


2022


2023


2023



RMB


RMB


US$


RMB


RMB


US$


Cash flows from operating activities:













Net income 

397,008


452,469


63,729


1,480,009


1,951,695


274,890


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













Depreciation of property and equipment

23,908


15,394


2,168


107,015


74,492


10,492


Amortization of intangible assets

1,279


1,279


180


5,116


5,116


721


Share-based compensation

89,944


62,224


8,765


401,484


267,101


37,620


Share of (income) loss on equity method investments

(20,040)


38,703


5,451


(11,073)


70,643


9,950


Gain on repurchase of convertible senior notes

-


-


-


(129,575)


(4,565)


(643)


Loss on long-term investments

-


31,250


4,401


11,250


31,250


4,401


Cash received on distributions from equity method investments

-


-


-


1,708


2,067


291


Gain or loss on disposal of property and equipment

4


2


-


(779)


(518)


(73)


Provision of (income) loss on receivable and other assets

(75)


1,553


219


(528)


11,624


1,637


Changes in operating assets and liabilities:













Accounts receivable

4,643


(11,392)


(1,605)


20,338


(21,308)


(3,001)


Prepaid expenses and other current assets

(36,784)


(13,492)


(1,900)


(52,928)


84,802


11,944


Amounts due from related parties

(55)


(144)


(20)


(55)


(27,203)


(3,831)


Rental deposits

-


5,524


778


1,399


7,776


1,095


Deferred tax assets

1,493


1,728


243


507


2,600


366


Other non-current assets

(15,907)


16,033


2,258


60,913


(11,606)


(1,635)


Accounts payable

(8,992)


(25,118)


(3,538)


(115,384)


13,707


1,931


Income tax payable

(6,081)


5,456


768


(57,004)


25,952


3,655


Deferred revenue

17,504


(31,253)


(4,402)


(56,387)


(42,390)


(5,971)


Accrued expenses and other current liabilities

121,638


(11,586)


(1,632)


(182,708)


(183,772)


(25,884)


Amount due to related parties

(265)


639


90


4,162


(4,865)


(685)


Deferred tax liabilities

(15,367)


(130,345)


(18,359)


(187,119)


(147)


(21)


Other non-current liabilities

(15,159)


6,953


979


(73,470)


24,710


3,480


Net cash provided by operating activities

538,696


415,877


58,573


1,226,891


2,277,161


320,729


Cash flows from investing activities:













Purchase of property and equipment

(10,053)


(316,847)


(44,627)


(80,445)


(576,310)


(81,172)


Payment for long-term investments

(15,000)


(9,750)


(1,373)


(70,343)


(18,750)


(2,641)


Purchase of short-term deposits

-


-


-


(1,700,000)


(1,028,556)


(144,869)


Cash received on maturity of short-term deposits

1,700,000


800,000


112,678


5,410,000


6,209,820


874,635


Payment for short term investments

(300,000)


-


-


(300,000)


-


-


Cash received from sales of short-term investment

-


308,550


43,458


-


308,550


43,458


Cash received on investment income distribution

-


-


-


3,523


1,517


214


Purchase of long-term deposits

(200,000)


(361,165)


(50,869)


(2,750,000)


(4,210,025)


(592,970)


Cash received on maturity of long-term deposits

-


-


-


1,200,000


1,700,000


239,440


Cash received from sales of long-term investment

-


10,000


1,408


-


25,000


3,521


Other investing activities

7


1


-


3,110


1,823


257


Net cash provided by investing activities

1,174,954


430,789


60,675


1,715,845


2,413,069


339,873


Cash flows from financing activities:













Deferred payment for business acquisition

-


-


-


(21,421)


-


-


Proceeds from exercise of share options

112


31


4


163


601


85


Repurchase of ordinary shares

(104,684)


(150,191)


(21,154)


(392,374)


(212,195)


(29,887)


Repurchase of subsidiary's share options

(1,076)


-


-


(40,943)


(4,319)


(608)


Dividends payment

-


(20,803)


(2,930)


(840,997)


(958,052)


(134,939)


Proceeds from long-term borrowings

-


-


-


-


2,154,000


303,385


Payment for redemption of convertible bonds

-


-


-


(2,136,987)


(2,679,942)


(377,462)


Net cash used in financing activities

(105,648)


(170,963)


(24,080)


(3,432,559)


(1,699,907)


(239,426)


Effect of exchange rate changes

(30,706)


(34,609)


(4,872)


41,390


93,988


13,240


Net increase (decrease) in cash and cash equivalents 

1,577,296


641,094


90,296


(448,433)


3,084,311


434,416


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

3,621,305


7,641,818


1,076,328


5,647,034


5,198,601


732,208


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

5,198,601


8,282,912


1,166,624


5,198,601


8,282,912


1,166,624


 

 

 

 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 December 31, 2022


Ended December 31, 2023


Ended December 31, 2023


GAAP

Share-based
compensation

Non-GAAP


GAAP

Share-based
compensation

Non-GAAP


GAAP

Share-based
compensation

Non-GAAP

RMB

RMB

RMB

RMB

RMB 

RMB

US$

US$

US$

Cost of revenues

(1,916,050)

1,707

(1,914,343)


(1,770,117)

1,909

(1,768,208)


(249,316)

269

(249,047)

Research and development

(272,657)

22,145

(250,512)


(231,445)

13,375

(218,070)


(32,598)

1,884

(30,714)

Sales and marketing

(407,075)

8,480

(398,595)


(304,696)

8,653

(296,043)


(42,916)

1,219

(41,697)

General and administrative

(142,492)

57,612

(84,880)


(125,498)

38,287

(87,211)


(17,676)

5,393

(12,283)

Cost and operating expenses

(2,738,274)

89,944

(2,648,330)


(2,431,756)

62,224

(2,369,532)


(342,506)

8,765

(333,741)

Income from operations

409,226

89,944

499,170


601,997

62,224

664,221


84,789

8,765

93,554

Net income attributable to Hello Group Inc.

397,994

89,944

487,938


452,469

62,224

514,693


63,729

8,765

72,494

 

 

 

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.








Year


Year


Year

Ended December 31, 2022


Ended December 31, 2023


Ended December 31, 2023


GAAP

Share-based
compensation

Non-GAAP


GAAP

Share-based
compensation

Non-GAAP


GAAP

Share-based
compensation

Non-GAAP

RMB

RMB

RMB

RMB

RMB 

RMB

US$

US$

US$

Cost of revenues

(7,421,419)

14,195

(7,407,224)


(7,025,394)

6,307

(7,019,087)


(989,506)

888

(988,618)

Research and development

(1,006,219)

88,797

(917,422)


(884,590)

64,561

(820,029)


(124,592)

9,093

(115,499)

Sales and marketing

(2,073,617)

38,432

(2,035,185)


(1,414,949)

29,066

(1,385,883)


(199,291)

4,094

(195,197)

General and administrative

(596,006)

260,060

(335,946)


(502,479)

167,167

(335,312)


(70,773)

23,545

(47,228)

Cost and operating expenses

(11,097,261)

401,484

(10,695,777)


(9,827,412)

267,101

(9,560,311)


(1,384,162)

37,620

(1,346,542)

Income from operations

1,627,543

401,484

2,029,027


2,305,016

267,101

2,572,117


324,655

37,620

362,275

Net income attributable to Hello Group Inc.

1,484,283

401,484

1,885,767


1,957,581

267,101

2,224,682


275,719

37,620

313,339

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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


Three months

  Ended December 31, 2023


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

1,423,730


100,155


-


1,523,885


214,635

Value-added service

1,264,358


160,535


-


1,424,893


200,692

Mobile marketing

33,395


11,520


-


44,915


6,326

Mobile games

5,441


-


-


5,441


766

Other services

1,760


-


2,038


3,798


535

Total net revenues

2,728,684


272,210


2,038


3,002,932


422,954

Cost and expenses (ii):










Cost of revenues

(1,638,915)


(130,237)


(965)


(1,770,117)


(249,316)

Research and development

(180,343)


(51,102)


-


(231,445)


(32,598)

Sales and marketing

(244,043)


(58,444)


(2,209)


(304,696)


(42,916)

General and administrative

(117,923)


(6,882)


(693)


(125,498)


(17,676)

Total cost and expenses

(2,181,224)


(246,665)


(3,867)


(2,431,756)


(342,506)

Other operating income

29,442


1,301


78


30,821


4,341

Income (loss) from operations

576,902


26,846


(1,751)


601,997


84,789

Interest income

124,294


57


3


124,354


17,515

Interest expense

(20,552)


-


-


(20,552)


(2,895)

Other gain or loss, net

(31,250)


-


-


(31,250)


(4,401)

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

649,394


26,903


(1,748)


674,549


95,008

Income tax expenses

(180,669)


(2,708)


-


(183,377)


(25,828)

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

468,725


24,195


(1,748)


491,172


69,180

Share of loss on equity method investments

(38,703)


-


-


(38,703)


(5,451)

Net income (loss)

430,022


24,195


(1,748)


452,469


63,729











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






























Three months


Ended December 31, 2023


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

1,905


4


-


1,909


269

Research and development

13,194


181


-


13,375


1,884

Sales and marketing

8,653


-


-


8,653


1,219

General and administrative

38,279


8


-


38,287


5,393

Total cost and expenses

62,031


193


-


62,224


8,765

 

 

 

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 December 31, 2023


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

576,902


26,846


(1,751)


601,997


84,789

Share-based compensation

62,031


193


-


62,224


8,765

Non-GAAP income (loss) from operations

638,933


27,039


(1,751)


664,221


93,554











Net income (loss)

430,022


24,195


(1,748)


452,469


63,729

Share-based compensation

62,031


193


-


62,224


8,765

Non-GAAP net income (loss)

492,053


24,388


(1,748)


514,693


72,494

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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


Three months

  Ended December 31, 2022


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$[1]

Net revenues:










Live video service

1,561,332


162,896


-


1,724,228


249,990

Value-added service

1,265,693


183,844


-


1,449,537


210,164

Mobile marketing

32,927


-


-


32,927


4,774

Mobile games

5,316


-


-


5,316


771

Other services

483


-


167


650


93

Total net revenues

2,865,751


346,740


167


3,212,658


465,792

Cost and expenses (iii):










Cost of revenues

(1,722,675)


(192,748)


(627)


(1,916,050)


(277,801)

Research and development

(200,740)


(71,917)


-


(272,657)


(39,532)

Sales and marketing

(307,166)


(98,209)


(1,700)


(407,075)


(59,020)

General and administrative

(131,844)


(7,899)


(2,749)


(142,492)


(20,659)

Total cost and expenses

(2,362,425)


(370,773)


(5,076)


(2,738,274)


(397,012)

Other operating (loss) income, net

(67,499)


2,339


2


(65,158)


(9,447)

Income (loss) from operations

435,827


(21,694)


(4,907)


409,226


59,333

Interest income

87,799


253


66


88,118


12,776

Interest expense

(10,955)


-


-


(10,955)


(1,588)

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

512,671


(21,441)


(4,841)


486,389


70,521

Income tax (expenses) benefits

(135,602)


26,181


-


(109,421)


(15,865)

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

377,069


4,740


(4,841)


376,968


54,656

Share of income on equity method investments

20,040


-


-


20,040


2,906

Net income (loss)

397,109


4,740


(4,841)


397,008


57,562





















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


















Three months


Ended December 31, 2022


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

1,689


18


-


1,707


247

Research and development

15,907


6,238


-


22,145


3,211

Sales and marketing

8,473


7


-


8,480


1,229

General and administrative

57,350


262


-


57,612


8,353

Total cost and expenses

83,419


6,525


-


89,944


13,040































[1] All translations from RMB to U.S. dollars are made at a rate of RMB6.8972 to US$1.00, the effective noon buying rate for December 30, 2022 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 December 31, 2022


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

435,827


(21,694)


(4,907)


409,226


59,333

Share-based compensation

83,419


6,525


-


89,944


13,040

Non-GAAP income (loss) from
operations

519,246


(15,169)


(4,907)


499,170


72,373











Net income (loss)

397,109


4,740


(4,841)


397,008


57,562

Share-based compensation

83,419


6,525


-


89,944


13,040

Non-GAAP net income (loss)

480,528


11,265


(4,841)


486,952


70,602

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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


Year

Ended December 31, 2023


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

5,567,894


504,977


-


6,072,871


855,346

Value-added service

5,085,541


667,030


-


5,752,571


810,233

Mobile marketing

109,125


24,552


-


133,677


18,828

Mobile games

19,610


-


-


19,610


2,762

Other services

16,337


-


7,257


23,594


3,323

Total net revenues

10,798,507


1,196,559


7,257


12,002,323


1,690,492

Cost and expenses (iv):










Cost of revenues

(6,404,042)


(599,348)


(22,004)


(7,025,394)


(989,506)

Research and development

(664,340)


(220,250)


-


(884,590)


(124,592)

Sales and marketing