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Momo Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2018

           

BEIJING, March 12, 2019 /PRNewswire/ -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"), a leading mobile social networking platform in China, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2018.

Starting from the fourth quarter of 2018, the Company changed its reporting currency from U.S.
dollar ("US$") to Renminbi ("RMB"), to reduce the impact of increased volatility of the RMB to
US$ exchange rate on the Company's reported operating results. The aligning of the reporting
currency with the underlying operations will better depict the Company's results of operations for
each period. This release contains translations of certain RMB amounts into US$ for convenience*.
Prior period numbers have been recast into the new reporting currency.

Fourth Quarter of 2018 Highlights

  •  
  • Net revenues increased 50% year over year to RMB3,843.9 million (US$559.1 million) in the fourth quarter of 2018.
  • Net income attributable to Momo Inc. increased to RMB660.8 million (US$96.1 million) in the fourth quarter of 2018 from RMB644.8 million in the same period of 2017.
  • Non-GAAP net income attributable to Momo Inc. (note 1) increased 22% to RMB887.4 million (US$129.1 million) in the fourth quarter of 2018 from RMB727.4 million in the same period of 2017.
  • Diluted net income per American Depositary Share ("ADS") was RMB3.04 (US$0.44), compared to RMB3.10 in the same period of 2017.
  • Non-GAAP diluted net income per ADS (note 1) was RMB4.05 (US$0.59), compared to RMB3.49 in the same period of 2017.
  • Monthly Active Users ("MAU") on Momo application were 113.3 million in December 2018, compared to 99.1 million in December 2017.
  • Total paying users of our live video service and value-added service, without double counting the overlap, including 3.9 million paying users of Tantan Limited ("Tantan"), were 13.0 million for the fourth quarter of 2018, compared to 7.8 million for the fourth quarter of 2017.

Full Year 2018 Highlights

  •  
  • Net revenues increased 51% year over year to RMB13,408.4 million (US$1,950.2 million) for the full year of 2018.
  • Net income attributable to Momo Inc. was RMB2,815.8 million (US$409.5 million) for the full year of 2018, compared with RMB2,148.1 million for 2017.
  • Non-GAAP net income attributable to Momo Inc. (note 1) was RMB3,462.1 million (US$503.5 million) for the full year of 2018, compared with RMB2,483.1 million for 2017.
  • Diluted net income per ADS was RMB13.18 (US$1.92) for the full year of 2018, compared with RMB10.35 for 2017.
  • Non-GAAP diluted net income per ADS (note 1) was RMB16.17 (US$2.35) for the full year of 2018, compared with RMB11.96 for 2017.
                            

* Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.8755 to US$1.00, the effective noon buying rate for December 31, 2018 as set forth in the H.10 statistical release of the Federal Reserve Board.

"Q4 was a solid quarter, closing out a fruitful year of 2018," commented Yan Tang, Chairman and CEO of Momo. "I am pleased with the progress we made in 2018 in product innovation, monetization, financial performance and the strengthening of the Company's position as a leading player in China's open social space. We look forward to delivering more results to our shareholders in 2019."

Fourth Quarter of 2018 Financial Results

Net revenues

Total net revenues were RMB3,843.9 million (US$559.1 million) in the fourth quarter of 2018, an increase of 50% from RMB2,554.9 million in the fourth quarter of 2017.

Live video service revenues were RMB2,959.2 million (US$430.4 million) in the fourth quarter of 2018, an increase of 36% from RMB2,169.0 million during the same period of 2017. The growth in live video revenues was contributed by the increase in quarterly paying users, as well as the increase in average revenues per paying user per quarter.

Value-added service revenues mainly include membership subscription revenues and virtual gift revenues. The total value-added service revenues were RMB722.4 million (US$105.1 million) in the fourth quarter of 2018, an increase of 272% from RMB194.3 million during the same period of 2017. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more paying use cases introduced to enhance the social experience of Momo users, and to a lesser extent, the consolidation of Tantan's membership subscription revenues for the whole fourth quarter of 2018.

Mobile marketing revenues were RMB 122.1 million (US$17.8 million) in the fourth quarter of 2018, a decrease of 15% from RMB144.4 million during the same period of 2017. The decrease in mobile marketing revenues was driven by the decreased demand from our advertising and marketing customers.

Mobile games revenues were RMB25.5 million (US$3.7 million) in the fourth quarter of 2018, a decrease of 44% from RMB45.6 million in the fourth quarter of 2017. The decrease in game revenues was mainly due to the continued decrease in quarterly paying users.

Revenues from other services in the fourth quarter of 2018 mainly consisted of revenues from Phanta City, a TV variety show co-produced by the Company.

Cost and expenses

Cost and expenses were RMB3,195.7 million (US$464.8 million) in the fourth quarter of 2018, an increase of 65% from RMB1,939.5 million in the fourth quarter of 2017. The increase was primarily attributable to: (a) an increase in revenue sharing with the broadcasters related to our live video service and virtual gift recipients; (b) an increase in marketing and promotional expenses to enhance our brand awareness and attract users; (c) an increase in personnel related costs including share-based compensation expenses as a result of the Company's rapidly expanding talent pool; (d) an increase in fees to payment channels resulting from a higher volume of cash collection through such channels; and (e) an increase in amortization expenses related to the intangible assets from business acquisitions.

Non-GAAP cost and expenses (note 1) were RMB2,959.6 million (US$430.5 million) in the fourth quarter of 2018, an increase of 59% from RMB1,856.9 million during the same period of 2017.

Other operating income

Other operating income was RMB141.4 million (US$20.6 million) in the fourth quarter of 2018, a significant increase from RMB92.6 million during the fourth quarter of 2017. The increase was mainly due to more government incentives received in the fourth quarter of 2018.

Income from operations

Income from operations was RMB789.6 million (US$114.8 million) in the fourth quarter of 2018, compared to RMB708.1 million during the same period of 2017.

Non-GAAP income from operations (note 1) was RMB1,025.7 million (US$149.2 million) in the fourth quarter of 2018, compared to RMB790.6 million during the same period of 2017.

Income tax expenses

Income tax expenses were RMB183.3 million (US$26.7 million) in the fourth quarter of 2018 and increased from RMB126.0 million in the fourth quarter of 2017. The increase was mainly because we generated higher profit in the fourth quarter of 2018.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB660.8 million (US$96.1 million) in the fourth quarter of 2018, compared to RMB644.8 million during the same period of 2017.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB887.4 million (US$129.1 million) in the fourth quarter of 2018, compared to RMB727.4 million during the same period of 2017.

Net income per ADS

Diluted net income per ADS was RMB3.04 (US$0.44) in the fourth quarter of 2018, compared to RMB 3.10 in the fourth quarter of 2017.

Non-GAAP diluted net income per ADS (note 1) was RMB4.05 (US$0.59) in the fourth quarter of 2018, compared to RMB3.49 in the fourth quarter of 2017.

Cash and cash flow

As of December 31, 2018, Momo's cash, cash equivalents, term deposits and short-term investment totaled RMB11,292.6 million (US$1,642.4 million), compared to RMB6,904.7 million as of December 31, 2017. Net cash provided by operating activities in the fourth quarter of 2018 was RMB1,163.4 million (US$169.2 million), compared to RMB790.8 million in the fourth quarter of 2017.

Full Year 2018 Financial Results

Net revenues for the full year of 2018 were RMB13,408.4 million (US$1,950.2 million), an increase of 51% from RMB8,886.4 million in the same period of 2017, primarily driven by the significant increase in net revenues from live video service and value-added service.

Net income attributable to Momo Inc. was RMB2,815.8 million (US$409.5 million) in the full year of 2018, compared to RMB2,148.1 million during the same period of 2017.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB3,462.1 million (US$503.5 million) in the full year of 2018, compared to RMB2,483.1 million during the same period of 2017.

Diluted net income per ADS was RMB13.18 (US$1.92) during the full year of 2018, compared to RMB10.35 in the same period of 2017.

Non-GAAP diluted net income per ADS (note 1) was RMB16.17 (US$2.35) during the full year of 2018, compared to RMB11.96 in the same period of 2017.

Net cash provided by operating activities was RMB3,327.7 million (US$484.0 million) during the full year of 2018, compared to RMB2,886.1 million in the same period of 2017.

Recent Development - Declaration of Special Cash Dividend

Momo's board of directors has declared a special cash dividend in the amount of US$0.62 per ADS, or US$0.31 per ordinary share. The cash dividend will be paid on April 30, 2019 to shareholders of record at the close of business on April 5, 2019. The ex-dividend date will be April 4, 2019. The aggregate amount of cash dividends to be paid is approximately US$128 million, which will be funded by surplus cash on the Company's balance sheet.

Business Outlook

For the first quarter of 2019, the Company expects total net revenues to be between RMB3.55 billion to RMB3.65 billion, representing an increase of 28% to 32% year over year, on a constant currency basis. The Company is not providing the business outlook in USD terms due to the recent volatility and uncertainty in foreign exchange rate. These estimates reflect the Company's current and preliminary view, which is 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 use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions.

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

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

Our non-GAAP information (including non-GAAP cost and operating expenses, income from operations, net income attributable to Momo Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation, amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions. A limitation of using these non-GAAP financial measures is that share-based compensation, amortization of intangible assets from business acquisitions and tax impacts related to the amortization of intangible assets from business acquisitions have been and will continue to be for the foreseeable future a significant recurring expense in our results of operations. We compensate for these limitations 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

Momo's management will host an earnings conference call on Tuesday, March 12, 2019, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 12, 2019).

Dial-in details for the earnings conference call are as follows:                                                                                                                

International:

+65-6713-5090

U.S. Toll Free:

+1-866-519-4004

Hong Kong Toll Free:

800-906601

Mainland China:

4006-208038

Passcode:

Momo

Please dial in 15 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 8:00 a.m. U.S. Eastern Time, March 20, 2019. The dial-in details for the replay are as follows:

                                                                                

International:

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode: 

3573546

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

About Momo

Momo is a leading mobile social networking platform in China. Momo connects people in a personal and lively way through a revolutionary mobile-based social networking platform. With powerful and precise location-based features, Momo enables users to connect with each other and expand relationships from online to offline. Momo's platform includes the Momo mobile application and a variety of related features, functionalities, tools and services that it provides to users, customers and platform partners. Leveraging its social interest graph engine and analysis of user behavior data, Momo is able to provide users a customized experience based on their social preferences and needs. Momo users can maintain and strengthen their relationships through private and group communication tools, content creation and sharing functions, as well as the offline social activities promoted on Momo's platform. Momo users are also able to enjoy live video on our platform. In addition, in May 2018, Momo completed its acquisition of Tantan, a leading social and dating app for the younger generation. Tantan, whose primary users consist of young Chinese singles, is designed to help its users find and establish romantic connections, as well as meet interesting people.

For investor and media inquiries, please contact:

Momo Inc.

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

Christensen

In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: carnell@christensenir.com

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

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes and our financial outlook for the first quarter of 2019. 

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 and full year of 2018 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2019 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  In addition, 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, and our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers.  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.                                                                                                                                                                                                                                                                                                                                                        

Momo 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

 

2017

 

2018

 

2018

 

2017

 

2018

 

2018

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

Net revenues:

                     

   Live video service

2,168,998

 

2,959,222

 

430,401

 

7,429,906

 

10,709,491

 

1,557,631

   Value-added service

194,287

 

722,414

 

105,071

 

695,798

 

1,883,150

 

273,893

   Mobile marketing

144,360

 

122,143

 

17,765

 

514,279

 

500,321

 

72,769

   Mobile games

45,569

 

25,502

 

3,709

 

241,388

 

130,392

 

18,965

   Other services

1,722

 

14,635

 

2,128

 

5,019

 

185,067

 

26,916

Total net revenues

2,554,936

 

3,843,916

 

559,074

 

8,886,390

 

13,408,421

 

1,950,174

Cost and expenses:

                     

   Cost of revenues

(1,323,876)

 

(2,099,265)

 

(305,325)

 

(4,373,377)

 

(7,182,897)

 

(1,044,709)

   Research and development

(124,056)

 

(243,499)

 

(35,415)

 

(346,144)

 

(760,644)

 

(110,631)

   Sales and marketing

(374,436)

 

(618,268)

 

(89,923)

 

(1,467,376)

 

(1,812,262)

 

(263,583)

   General and administrative

(117,124)

 

(234,700)

 

(34,136)

 

(422,005)

 

(640,023)

 

(93,087)

Total cost and expenses

(1,939,492)

 

(3,195,732)

 

(464,799)

 

(6,608,902)

 

(10,395,826)

 

(1,512,010)

Other operating income

92,634

 

141,420

 

20,569

 

156,764

 

253,697

 

36,899

Income from operations

708,078

 

789,604

 

114,844

 

2,434,252

 

3,266,292

 

475,063

Interest income

47,785

 

89,766

 

13,056

 

145,568

 

272,946

 

39,698

Interest expense

-

 

(19,646)

 

(2,857)

 

-

 

(56,503)

 

(8,218)

Impairment loss on long-term
    investments

-

 

(43,200)

 

(6,283)

 

(30,085)

 

(43,200)

 

(6,283)

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

755,863

 

816,524

 

118,760

 

2,549,735

 

3,439,535

 

500,260

Income tax expenses

(125,956)

 

(183,338)

 

(26,665)

 

(445,001)

 

(699,648)

 

(101,760)

Income before share of
   income on equity method
   investments

629,907

 

633,186

 

92,095

 

2,104,734

 

2,739,887

 

398,500

Share of income on equity
   method investments

13,398

 

13,221

 

1,923

 

39,729

 

48,660

 

7,077

Net income

643,305

 

646,407

 

94,018

 

2,144,463

 

2,788,547

 

405,577

Less: net loss attributable to
   non-controlling interest

(1,498)

 

(14,430)

 

(2,100)

 

(3,635)

 

(27,228)

 

(3,960)

Net income attributable to
   Momo Inc.

644,803

 

660,837

 

96,118

 

2,148,098

 

2,815,775

 

409,537

                       

Net income per share
   attributable to ordinary
   shareholders

                     

Basic

1.62

 

1.60

 

0.23

 

5.44

 

6.92

 

1.01

Diluted

1.55

 

1.52

 

0.22

 

5.17

 

6.59

 

0.96

Weighted average shares
   used in calculating net
   income per ordinary share

                     

Basic

397,753,884

 

413,732,538

 

413,732,538

 

394,549,323

 

407,009,875

 

407,009,875

Diluted

416,371,383

 

447,773,521

 

447,773,521

 

415,265,078

 

433,083,643

 

433,083,643

                                                                                                                                                                                                                                                                                                                                                                                                                            

Momo 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

 

2017

 

2018

 

2018

 

2017

 

2018

 

2018

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

                       

Net income 

643,305

 

646,407

 

94,018

 

2,144,463

 

2,788,547

 

405,577

Other comprehensive income
   (loss), net of tax of nil

                     

Foreign currency translation
   adjustment

(53,534)

 

5,171

 

752

 

(155,368)

 

198,654

 

28,893

Comprehensive income 

589,771

 

651,578

 

94,770

 

1,989,095

 

2,987,201

 

434,470

Less: comprehensive loss
   attributed to the non-controlling
   interest

(1,498)

 

(14,535)

 

(2,114)

 

(3,635)

 

(24,613)

 

(3,580)

Comprehensive income
   attributable to Momo Inc.
   shareholders

591,269

 

666,113

 

96,884

 

1,992,730

 

3,011,814

 

438,050

                                                                                                                                                                                                                                                                                                                                                                          

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

 
 

December 31

 

December 31

 

December 31

 

2017

 

2018

 

2018

 

RMB

 

RMB

 

US$

Assets

         

Current assets

         

   Cash and cash equivalents

4,462,194

 

2,468,034

 

358,961

   Term deposits

2,432,016

 

8,824,610

 

1,283,486

   Short-term investment

10,500

 

-

 

-

   Accounts receivable, net of allowance for
      doubtful accounts of RMB585 and RMB nil
      as of December 31, 2017 and 2018,
      respectively

257,633

 

719,606

 

104,662

   Prepaid expenses and other current assets

538,182

 

620,979

 

90,318

   Amount due from related parties 

33,460

 

-

 

-

Total current assets

7,733,985

 

12,633,229

 

1,837,427

   Property and equipment, net

258,704

 

387,532

 

56,364

   Intangible assets

48,553

 

1,036,986

 

150,823

   Rental deposits

17,249

 

24,192

 

3,519

   Long term investments

288,471

 

447,465

 

65,081

   Deferred tax assets

46,825

 

57,786

 

8,405

   Other non-current assets

55,271

 

71,519

 

10,402

   Goodwill

22,130

 

4,306,829

 

626,402

Total assets

8,471,188

 

18,965,538

 

2,758,423

Liabilities and equity

         

   Current liabilities

         

Accounts payable

484,945

 

718,362

 

104,481

   Deferred revenue

422,028

 

441,892

 

64,271

   Accrued expenses and other current
      liabilities

571,333

 

846,710

 

123,148

   Amount due to related parties

37,760

 

82,948

 

12,064

   Income tax payable

175,887

 

137,090

 

19,939

   Deferred consideration in connection with
      business acquisitions

-

 

469,274

 

68,253

Total current liabilities

1,691,953

 

2,696,276

 

392,156

Deferred tax liabilities

12,138

 

259,247

 

37,706

Convertible Senior Notes

-

 

4,877,116

 

709,347

Share-based compensation liability

-

 

86,767

 

12,620

Other non-current liabilities

14,997

 

23,273

 

3,385

Total liabilities

1,719,088

 

7,942,679

 

1,155,214

Shareholder's equity (Note a)

6,752,100

 

11,022,859

 

1,603,209

Total liabilities and shareholder's equity

8,471,188

 

18,965,538

 

2,758,423

 

Note a: As of December 31, 2018, the number of ordinary shares issued and outstanding was 413,876,480.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

Momo 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

 

2017

 

2018

 

2018

 

2017

 

2018

 

2018

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

Cash flows from operating activities:

                     

Net income

643,305

 

646,407

 

94,018

 

2,144,463

 

2,788,547

 

405,577

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

                     

Depreciation of property and equipment

25,906

 

42,244

 

6,144

 

78,885

 

148,238

 

21,560

Amortization of intangible assets

1,735

 

39,522

 

5,748

 

4,784

 

93,030

 

13,531

Share-based compensation

82,563

 

198,013

 

28,800

 

334,973

 

580,813

 

84,476

Share of income on equity method
   investments

(13,398)

 

(13,221)

 

(1,923)

 

(39,729)

 

(48,660)

 

(7,077)

Impairment loss on long-term
   investments

-

 

43,200

 

6,283

 

30,085

 

43,200

 

6,283

Impairment loss on intangible assets

1,266

 

-

 

-

 

1,266

 

-

 

-

Loss(income) on disposal of property and
   equipment

128

 

(44)

 

(6)

 

112

 

(1,283)

 

(187)

Provision of allowance for doubtful accounts

-

 

-

 

-

 

585

 

(585)

 

(85)

Changes in operating assets and liabilities:

                     

Accounts receivable

(49,685)

 

(84,973)

 

(12,359)

 

(7,725)

 

(440,644)

 

(64,089)

Prepaid expenses and other current
   assets

(150,633)

 

14,190

 

2,064

 

(306,838)

 

(67,304)

 

(9,789)

Amount due from related parties

(25,948)

 

56

 

8

 

(32,846)

 

33,463

 

4,867

Rental deposits

(810)

 

(4,062)

 

(591)

 

(10,902)

 

(3,817)

 

(555)

Deferred tax assets

(45,383)

 

(39,874)

 

(5,799)

 

(44,883)

 

(10,961)

 

(1,594)

Other non-current assets

7,119

 

(670)

 

(97)

 

(5,234)

 

(45,534)

 

(6,623)

Accounts payable

(1,206)

 

(18,987)

 

(2,762)

 

174,290

 

233,713

 

33,992

Income tax payable

91,525

 

81,097

 

11,795

 

152,277

 

(38,791)

 

(5,642)

Deferred revenue

113,197

 

12,470

 

1,814

 

135,443

 

(14,249)

 

(2,072)

Accrued expenses and other current
   liabilities

156,071

 

235,104

 

34,194

 

292,054

 

51,903

 

7,549

Amount due to related parties

(41,941)

 

25,349

 

3,687

 

(16,070)

 

43,024

 

6,258

Deferred tax liability

(343)

 

(9,547)

 

(1,389)

 

(969)

 

(22,923)

 

(3,334)

Other non-current liabilities

(2,653)

 

(2,915)

 

(424)

 

2,086

 

6,538

 

951

Net cash provided by operating activities

790,815

 

1,163,359

 

169,205

 

2,886,107

 

3,327,718

 

483,997

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

Momo 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

 

2017

 

2018

 

2018

 

2017

 

2018

 

2018

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

Cash flows from investing activities:

                     

Purchase of property and equipment

(86,183)

 

(81,243)

 

(11,816)

 

(218,627)

 

(242,843)

 

(35,320)

Proceeds from disposal of property and
   equipment

1

 

4

 

1

 

59

 

2,214

 

322

Payment for long term investments

(20,000)

 

(3,000)

 

(436)

 

(53,928)

 

(65,125)

 

(9,472)

Prepayment of long term investments

(50,000)

 

(8,000)

 

(1,164)

 

(50,000)

 

(55,000)

 

(7,999)

Payment for acquired intangible assets

-

 

-

 

-

 

(18,979)

 

-

 

-

Payment for business acquisition

-

 

(40,632)

 

(5,910)

 

-

 

(3,318,841)

 

(482,705)

Purchase of term deposits

(480,645)

 

(5,300,000)

 

(770,853)

 

(4,028,058)

 

(20,287,302)

 

(2,950,666)

Cash received on maturity of term deposits

882,645

 

4,600,000

 

669,042

 

4,191,859

 

13,922,393

 

2,024,928

Payment for short term investments

(10,000)

 

(103,000)

 

(14,981)

 

(15,700)

 

(457,200)

 

(66,497)

Cash received from sales of short term
   investment

5,200

 

218,000

 

31,707

 

5,200

 

467,700

 

68,024

Net cash provided by (used in) investing
   activities

241,018

 

(717,871)

 

(104,410)

 

(188,174)

 

(10,034,004)

 

(1,459,385)

Cash flows from financing activities:

                     

Proceeds from exercise of options

680

 

1

 

-

 

3,839

 

5,313

 

773

Deferred payment of purchase of property
   and equipment

-

 

(157)

 

(23)

 

(1,496)

 

(8,562)

 

(1,245)

Capital contribution from non-controlling
   interest shareholder

-

 

12

 

2

 

490

 

12

 

2

Proceeds from bank loan

-

 

-

 

-

 

-

 

1,913,190

 

278,262

Repayment of bank loan

-

 

-

 

-

 

-

 

(2,041,680)

 

(296,950)

Proceeds from issuance of convertible
   notes, net of issuance cost of
   RMB113,673

-

 

-

 

-

 

-

 

4,820,387

 

701,096

Payment of issuance cost of convertible
   notes

-

 

(709)

 

(103)

 

-

 

(709)

 

(103)

Net cash provided by (used in) financing
   activities

680

 

(853)

 

(124)

 

2,833

 

4,687,951

 

681,835

Effect of exchange rate changes

(8,207)

 

1,439

 

208

 

(26,840)

 

24,175

 

3,515

Net increase (decrease)  in cash, cash
   equivalents,
and restricted cash

1,024,306

 

446,074

 

64,879

 

2,673,926

 

(1,994,160)

 

(290,038)

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

3,437,888

 

2,021,960

 

294,082

 

1,788,268

 

4,462,194

 

648,999

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

4,462,194

 

2,468,034

 

358,961

 

4,462,194

 

2,468,034

 

358,961

                                                                                                                                                                                                                                                                                                                                                  

Momo 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, 2017

   

ended December 31, 2018

     

ended December 31, 2018

 

 

 

GAAP

RMB

 

Share-
based compens
ation

RMB

 

Non-GAAP

RMB

 

GAAP

RMB

 

Amortization
of intangible
assets from
business
acquisitions
RMB

Share-
based compensa
tion

RMB

Tax
impacts(a)
RMB

 

Non-GAAP

RMB

 

GAAP

US$

 

Amortization
of intangible
assets from
business
acquisitions

US$

Share-
based
compensa
tion

US$

Tax
impacts(a)
US$

 

Non-GAAP

US$

Cost of revenues

(1,323,876)

 

4,160

 

(1,319,716)

 

(2,099,265)

 

18,471

5,498

 

-

 

(2,075,296)

 

(305,325)

 

2,686

800

 

-

 

(301,839)

Research and
   development

(124,056)

 

17,028

 

(107,028)

 

(243,499)

 

2,345

47,215

 

 

-

 

(193,939)

 

(35,415)

 

341

6,867

 

 

-

 

(28,207)

Sales and
marketing

(374,436)

 

20,645

 

(353,791)

 

(618,268)

 

17,273

43,707

 

-

 

(557,288)

 

(89,923)

 

2,512

6,357

 

-

 

(81,054)

General and
   administrative

(117,124)

 

40,730

 

(76,394)

 

(234,700)

 

-

101,593

-

 

(133,107)

 

(34,136)

 

-

14,776

-

 

(19,360)

Cost and
   operating
   expenses

(1,939,492)

 

82,563

 

(1,856,929)

 

(3,195,732)

 

38,089

198,013

-

 

(2,959,630)

 

(464,799)

 

5,539

28,800

-

 

(430,460)

Income from
   operations

708,078

 

82,563

 

790,641

 

789,604

 

38,089

198,013

-

 

1,025,706

 

114,844

 

5,539

28,800

-

 

149,183

Net income
   attributable to
   Momo Inc.

644,803

 

82,563

 

727,366

 

660,837

 

38,089

 

 

198,013

(9,522)

 

887,417

 

96,118

 

5,539

 

 

28,800

(1,385)

 

129,072

                                           
                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                            

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

 
 

Year

     

Year

 

Year

 

ended December 31, 2017

     

ended December 31, 2018

 

ended December 31, 2018

 

 

 

GAAP

RMB

 

Share-
based
compen
sation

RMB

 

Non-GAAP

RMB

 

GAAP

RMB

 

Amortization
of intangible
assets from
business
acquisitions
RMB

Share-
based
compensa
tion

RMB

Tax
impacts(a)
RMB

 

Non-GAAP

RMB

 

GAAP

US$

 

Amortization
of intangible
assets from
business
acquisitions

US$

Share-
based
compensa
tion

US$

Tax
impacts(a)
US$

 

Non-GAAP

US$

Cost of revenues

(4,373,377)

 

13,547

 

(4,359,830)

 

(7,182,897)

 

42,336

21,661

 

-

 

(7,118,900)

 

(1,044,709)

 

6,158

3,150

 

-

 

(1,035,401)

Research and
development

(346,144)

 

59,190

 

(286,954)

 

(760,644)

 

5,375

152,806

 

 

-

 

(602,463)

 

(110,631)

 

782

22,225

 

 

-

 

(87,624)

Sales and
marketing

(1,467,376)

 

79,032

 

(1,388,344)

 

(1,812,262)

 

39,589

 

142,927

 

-

 

(1,629,746)

 

(263,583)

 

5,758

20,788

 

-

 

(237,037)

General and
   administrative

(422,005)

 

183,204

 

(238,801)

 

(640,023)

 

-

263,419

-

 

(376,604)

 

(93,087)

 

-

38,313

-

 

(54,774)

Cost and
   operating
   expenses

(6,608,902)

 

334,973

 

(6,273,929)

 

(10,395,826)

 

87,300

580,813

-

 

(9,727,713)

 

(1,512,010)

 

12,698

84,476

-

 

(1,414,836)

Income from
   operations

2,434,252

 

334,973

 

2,769,225

 

3,266,292

 

87,300

580,813

-

 

3,934,405

 

475,063

 

12,698

84,476

-

 

572,237

Net income
   attributable to
   Momo Inc.

2,148,098

 

334,973

 

2,483,071

 

2,815,775

 

87,300

580,813

(21,823)

 

3,462,065

 

409,537

 

12,698

84,476

(3,174)

 

503,537

 

(a)  Includes tax impacts related to the amortization of intangible assets from business acquisition. There is no tax impact related to share-
based compensation.

SOURCE Momo Inc.

Related Links

http://ir.immomo.com/