Press Release

Printer Friendly VersionView printer-friendly version << Back



Momo Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2020

BEIJING, March 25, 2021 /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, 2020.

Fourth Quarter of 2020 Highlights

  • Net revenues decreased by 19.0% year over year to RMB3,795.2 million (US$581.6 million*) in the fourth quarter of 2020.
  • Net income attributable to Momo Inc. decreased to RMB651.5 million (US$99.8 million) in the fourth quarter of 2020 from RMB1,055.9 million in the same period of 2019.
  • Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB836.4 million (US$128.2 million) in the fourth quarter of 2020, from RMB1,252.5 million in the same period of 2019.
  • Diluted net income per American Depositary Share ("ADS") was RMB2.98 (US$0.46) in the fourth quarter of 2020, compared to RMB4.74 in the same period of 2019.
  • Non-GAAP diluted net income per ADS (note 1) was RMB3.80 (US$0.58) in the fourth quarter of 2020, compared to RMB5.61 in the same period of 2019.
  • Monthly Active Users ("MAU") on Momo application were 113.8 million in December 2020, compared to 114.5 million in December 2019.
  • Total paying users of our live video service and value-added service, without double counting the overlap and including 3.8 million paying users of Tantan Limited ("Tantan"), were 12.8 million for the fourth quarter of 2020, compared to 13.8 million for the fourth quarter of 2019, which included 4.5 million paying users of Tantan.

Full Year 2020 Highlights

  • Net revenues decreased by 11.7% year over year to RMB15,024.2 million (US$2,302.6 million) for the full year of 2020.
  • Net income attributable to Momo Inc. was RMB2,103.5 million (US$322.4 million) for the full year of 2020, compared with RMB2,970.9 million during the same period of 2019.
  • Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,896.2 million (US$443.9 million) for the full year of 2020, compared with RMB4,493.3 million during the same period of 2019.
  • Diluted net income per ADS was RMB9.65 (US$1.48) for the full year of 2020, compared with RMB13.52 during the same period of 2019.
  • Non-GAAP diluted net income per ADS (note 1) was RMB13.16 (US$2.02) for the full year of 2020, compared with RMB20.26 during the same period of 2019.

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.525 to US$1.00, the effective noon buying rate for December 31, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

"2020 was a tough year for us. I am proud that my teams were able to navigate through the many challenges with relentless focus on our core mission. Our commitment to the core mission enabled us to make difficult but right decision in the past year for the long term wellbeing of our company and our community," commented Li Wang, CEO of Momo. "After several months of hard work, we have started seeing positive trends in the content ecosystem as well as business of the core Momo. Getting through the bumpy journey last year was a valuable growth experience for our team. I am happy to see we have finally come out of the temporary drawbacks, stronger and better poised to seize the growth opportunities ahead of us."

Fourth Quarter of 2020 Financial Results

Net revenues

Total net revenues were RMB3,795.2 million (US$581.6 million) in the fourth quarter of 2020, a decrease of 19.0% from RMB4,687.9 million in the fourth quarter of 2019.

Live video service revenues were RMB2,327.9 million (US$356.8 million) in the fourth quarter of 2020, a decrease of 31.2% from RMB3,383.5 million during the same period of 2019. The decrease was primarily due to our structural reform on Momo's core live video business, which was used to revive the long tail content ecosystem and to a lesser extent, the impact of COVID-19 adversely affecting the sentiment of our paying users, especially among the top of the pyramid paying users. The decrease was partially offset by the growth from Tantan's live video service, and live video service revenues from Tantan were RMB404.3 million (US$62.0 million) in the fourth quarter of 2020.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,401.3 million (US$214.8 million) in the fourth quarter of 2020, an increase of 17.8% from RMB1,189.1 million during the same period of 2019. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more innovative products and operational ideas launched, and more paying scenarios introduced to enhance the social entertainment experience of Momo users.

Mobile marketing revenues were RMB52.7 million (US$8.1 million) in the fourth quarter of 2020, a decrease of 43.4% from RMB93.0 million during the same period of 2019. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers as well as our strategy to underweight the line in terms of resource allocation.

Mobile games revenues were RMB7.3 million (US$1.1 million) in the fourth quarter of 2020, a decrease of 49.1% from RMB14.4 million in the fourth quarter of 2019. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Net revenues from the Momo segment decreased from RMB4,317.3 million in the fourth quarter of 2019 to RMB3,051.3 million (US$467.6 million) in the fourth quarter of 2020, primarily due to the decrease in net revenues from live video service, partially offset by the increase in net revenues from value-added service. Net revenues from the Tantan segment increased from RMB369.8 million in the fourth quarter of 2019 to RMB740.5 million (US$113.5 million) in the fourth quarter of 2020, which was mainly due to the increase in net revenues from live video service.

Cost and expenses

Cost and expenses were RMB3,290.0 million (US$504.2 million) in the fourth quarter of 2020, a decrease of 8.1% from RMB3,581.1 million in the fourth quarter of 2019. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to our live video service; (b) a decrease in professional fees related to technological service and bandwidth costs; (c) a decrease in commission fees paid to payment channels. These decreases were partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service.

Non-GAAP cost and expenses (note 1) were RMB3,095.9 million (US$474.5 million) in the fourth quarter of 2020, a decrease of 8.3% from RMB3,374.9 million during the same period of 2019.

Other operating income

Other operating income was RMB88.4 million (US$13.5 million) in the fourth quarter of 2020, a decrease from RMB142.6 million during the fourth quarter of 2019. The other operating income mainly consisted of government incentives.

Income from operations

Income from operations was RMB593.6 million (US$91.0 million) in the fourth quarter of 2020, compared to RMB1,249.4 million during the same period of 2019. Income from operations of the Momo segment was RMB650.9 million (US$99.8 million) in the fourth quarter of 2020, which decreased from RMB1,458.5 million in the fourth quarter of 2019. Loss from operations of the Tantan segment was RMB53.1 million (US$8.1 million) in the fourth quarter of 2020, compared to loss from operations of RMB202.7 million in the fourth quarter of 2019.

Non-GAAP income from operations (note 1) was RMB787.7 million (US$120.7 million) in the fourth quarter of 2020, compared to RMB1,455.7 million during the same period of 2019. Non-GAAP income from operations of the Momo segment was RMB791.8 million (US$121.4 million) in the fourth quarter of 2020, which decreased from RMB1,593.9 million in the fourth quarter of 2019. Non-GAAP loss from operations of the Tantan segment was RMB2.3 million (US$0.4 million) in the fourth quarter of 2020, compared to non-GAAP loss from operations of RMB135.0 million in the fourth quarter of 2019.

Income tax expenses

Income tax expenses were RMB5.5 million (US$0.8 million) in the fourth quarter of 2020, decreasing from RMB253.7 million in the fourth quarter of 2019. The decrease in income tax expenses was mainly due to (a) the preferential tax rate adjustment from 12.5% to 10.0% for one of our major profit generating entities, due to the approval in 2020 of the Key Software Enterprise application for the income tax of the fiscal year of 2019; and (b) the lower profit in the fourth quarter of 2020.

Net income

Net income was RMB651.1 million (US$99.8 million) in the fourth quarter of 2020, compared to RMB1,052.3 million during the same period of 2019. Net income from the Momo segment was RMB705.8 million (US$108.2 million) in the fourth quarter of 2020, which decreased from RMB1,246.9 million in the fourth quarter of 2019. Net loss from the Tantan segment was RMB50.5 million (US$7.7 million) in the fourth quarter of 2020, compared to net loss of RMB188.2 million in the fourth quarter of 2019.

Non-GAAP net income (note 1) was RMB836.1 million (US$128.1 million) in the fourth quarter of 2020, compared to RMB1,248.9 million during the same period of 2019. Non-GAAP net income from the Momo segment was RMB846.7 million (US$129.8 million) in the fourth quarter of 2020, which decreased from RMB1,382.3 million in the fourth quarter of 2019. Non-GAAP net loss of the Tantan segment was RMB8.8 million (US$1.4 million) in the fourth quarter of 2020, compared to non-GAAP net loss of RMB130.2 million in the fourth quarter of 2019.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB651.5 million (US$99.8 million) in the fourth quarter of 2020, compared to RMB1,055.9 million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB836.4 million (US$128.2 million) in the fourth quarter of 2020, compared to RMB1,252.5 million during the same period of 2019.

Net income per ADS

Diluted net income per ADS was RMB2.98 (US$0.46) in the fourth quarter of 2020, compared to RMB4.74 in the fourth quarter of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB3.80 (US$0.58) in the fourth quarter of 2020, compared to RMB5.61 in the fourth quarter of 2019.

Cash and cash flow

As of December 31, 2020, Momo's cash, cash equivalents, short-term deposits, long-term deposits and restricted cash totaled RMB16,482.3 million (US$2,526.0 million), compared to RMB15,225.3 million as of December 31, 2019. Net cash provided by operating activities in the fourth quarter of 2020 was RMB1,039.1 million (US$159.2 million), compared to RMB1,675.1 million in the fourth quarter of 2019.

Full Year 2020 Financial Results

Net revenues for the full year of 2020 were RMB15,024.2 million (US$2,302.6 million), a decrease of 11.7% from RMB17,015.1 million in the same period of 2019.

Net income attributable to Momo Inc. was RMB2,103.5 million (US$322.4 million) for the full year of 2020, compared to RMB2,970.9 million during the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,896.2 million (US$443.9 million) for the full year of 2020, compared to RMB4,493.3 million during the same period of 2019.

Diluted net income per ADS was RMB9.65 (US$1.48) during the full year of 2020, compared to RMB13.52 in the same period of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB13.16 (US$2.02) during the full year of 2020, compared to RMB20.26 in the same period of 2019.

Net cash provided by operating activities was RMB3,080.9 million (US$472.2 million) during the full year of 2020, compared to RMB5,448.9 million in the same period of 2019.

Recent Developments

Declaration of a special cash dividend

Momo's board of directors has declared a special cash dividend in the amount of US$0.64 per ADS, or US$0.32 per ordinary share. The cash dividend will be paid on April 30, 2021 to shareholders of record at the close of business on April 13, 2021. The ex-dividend date will be April 12, 2021. The aggregate amount of cash dividends to be paid is approximately US$132 million, which will be funded by surplus cash on the Company's balance sheet.

Execution of share repurchase program

On September 3, 2020, Momo's board of directors authorized a share repurchase program under which the Company may repurchase up to US$300 million of its shares over the next 12 months. As of March 24, 2021, the Company has repurchased approximately 3.61 million ADSs for approximately US$49.2 million on the open market under this program, at an average purchase price of US$13.63 per ADS.

Resignation of Chief Technology Officer

Mr. Chunlai Wang will resign from the Company's Chief Technology Officer position for personal reasons, effective April 30, 2021, and he will continue to serve as an advisor to the Company. The Company is grateful to Mr. Chunlai Wang for his valuable contributions over the past nine years.

Business Outlook

For the first quarter of 2021, the Company expects total net revenues to be between RMB3.36 billion to RMB3.46 billion, representing a decrease of 6.5% to 3.7% year-over-year. This forecast considers the potential impact of the COVID-19 pandemic and reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change, particularly with respect to the potential lasting impact of COVID-19 on the economy in China.

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 (loss) from operations, net income (loss),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 Thursday, March 25, 2021, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 25, 2021).

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

PRE-REGISTER LINK http://apac.directeventreg.com/registration/event/2751618

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

A telephone replay of the call will be available after the conclusion of the conference call through 8:00 a.m. U.S. Eastern Time, April 1, 2021. The dial-in details for the replay are as follows:

International:

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

2751618

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 

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 interactions based on location, interests and a variety of recreational activities including live talent shows, short videos, social games as well as other video- and audio-based interactive experiences, such as live chats and mobile karaoke experience. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application for the younger generation. Tantan 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. Eric Yuan
Phone: +86-10-5900-1548
E-mail: Eyuan@christensenir.com

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

Safe Harbor Statement

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

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the fourth quarter of 2020 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2021 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the impact of the COVID-19 pandemic on Momo's business operations and the economy in China, the market price of Momo's stock prevailing from time to time, the nature of other investment opportunities presented to Momo from time to time, Momo'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.


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


2019


2020


2020


2019


2020


2020



RMB


RMB


US$


RMB


RMB


US$


Net revenues:













Live video service

3,383,477


2,327,875


356,762


12,448,131


9,637,579


1,477,024


Value-added service

1,189,114


1,401,269


214,754


4,105,963


5,112,182


783,476


Mobile marketing

92,991


52,663


8,071


331,822


198,197


30,375


Mobile games

14,418


7,334


1,124


92,451


39,564


6,063


Other services

7,898


6,060


929


36,722


36,666


5,620


Total net revenues

4,687,898


3,795,201


581,640


17,015,089


15,024,188


2,302,558


Cost and expenses:













Cost of revenues

(2,351,309)


(2,042,781)


(313,070)


(8,492,096)


(7,976,781)


(1,222,495)


Research and development

(292,188)


(327,295)


(50,160)


(1,095,031)


(1,167,677)


(178,954)


Sales and marketing

(725,029)


(697,722)


(106,931)


(2,690,824)


(2,813,922)


(431,252)


General and administrative

(212,603)


(222,191)


(34,052)


(1,527,282)


(763,150)


(116,958)


Total cost and expenses

(3,581,129)


(3,289,989)


(504,213)


(13,805,233)


(12,721,530)


(1,949,659)


Other operating income

142,646


88,385


13,546


344,843


228,777


35,062


Income from operations

1,249,415


593,597


90,973


3,554,699


2,531,435


387,961


Interest income

108,205


100,880


15,461


407,542


444,471


68,118


Interest expense

(20,190)


(19,047)


(2,919)


(78,611)


(78,872)


(12,088)


Other gain or loss, net

-


7,500


1,149


(15,711)


1,500


230


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

1,337,430


682,930


104,664


3,867,919


2,898,534


444,221


Income tax expenses

(253,704)


(5,481)


(840)


(883,801)


(755,620)


(115,804)


Income before share of
   income on equity method
   investments

1,083,726


677,449


103,824


2,984,118


2,142,914


328,417


Share of loss on equity
   method investments

(31,406)


(26,319)


(4,034)


(23,350)


(42,522)


(6,517)


Net income

1,052,320


651,130


99,790


2,960,768


2,100,392


321,900


Less: net loss attributable to
   non-controlling interest

(3,579)


(320)


(49)


(10,122)


(3,092)


(474)


Net income attributable to
   the shareholders of
   Momo Inc.

1,055,899


651,450


99,839


2,970,890


2,103,484


322,374


 

Net income per share
   attributable to ordinary
   shareholders













Basic

2.53


1.57


0.24


7.15


5.05


0.77


Diluted

2.37


1.49


0.23


6.76


4.83


0.74


Weighted average shares
   used in calculating net
   income per ordinary share













Basic

416,878,784


414,839,350


414,839,350


415,316,627


416,914,898


416,914,898


Diluted

453,937,852


449,683,596


449,683,596


451,206,091


452,081,642


452,081,642

















 

 

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



2019


2020


2020


2019


2020


2020


RMB


RMB


US$


RMB


RMB


US$

Net income

1,052,320


651,130


99,790


2,960,768


2,100,392


321,900

Other comprehensive loss, net of
   tax












Foreign currency translation
   adjustment

(39,524)


(69,010)


(10,576)


(8,835)


(141,677)


(21,713)

Comprehensive income

1,012,796


582,120


89,214


2,951,933


1,958,715


300,187

Less: comprehensive loss 
   attributed to the non-controlling
   interest

(8,637)


(9,059)


(1,388)


(8,081)


(26,004)


(3,985)

Comprehensive income
   attributable to Momo Inc.

1,021,433


591,179


90,602


2,960,014


1,984,719


304,172




















 


 

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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








December 31


December 31


December 31


2019


2020


2020

RMB

RMB


US$

Assets






Current assets






Cash and cash equivalents

2,612,743


3,363,942


515,547

Short-term deposits

12,312,585


7,566,250


1,159,579

Restricted cash

-


2,130


326

Accounts receivable, net of allowance for doubtful accounts of RMB12,209 and
   RMB15,390 as of December 31, 2019 and 2020, respectively

265,155


200,831


30,779

Amount due from a related party

4,382


-


-

Prepaid expenses and other current assets

599,000


613,696


94,053

Total current assets

15,793,865


11,746,849


1,800,284

Long-term deposits

300,000


5,550,000


850,575

Right-of-use assets, net

190,552


278,175


42,632

Property and equipment, net

346,345


265,765


40,730

Intangible assets

890,303


687,211


105,320

Rental deposits

25,028


21,794


3,340

Long-term investments

495,905


454,996


69,731

Other non-current assets

44,009


94,868


14,539

Deferred tax assets

37,064


32,495


4,980

Goodwill

4,360,610


4,088,403


626,575

Total assets

22,483,681


23,220,556


3,558,706

Liabilities and equity






Current liabilities






Accounts payable

714,323


699,394


107,186

Deferred revenue

503,461


511,617


78,409

Accrued expenses and other current liabilities

985,873


854,835


131,009

Amount due to related parties

29,606


19,462


2,983

Lease liabilities due within one year

135,169


132,793


20,351

Income tax payable

153,976


236,490


36,244

Deferred consideration in connection with business acquisitions

84,346


62,149


9,525

Total current liabilities

2,606,754


2,516,740


385,707

Deferred tax liabilities

222,576


171,803


26,330

Convertible senior notes

4,954,352


4,658,966


714,018

Share-based compensation liability

902,047


875,616


134,194

Lease liabilities

56,498


136,436


20,910

Other non-current liabilities

22,672


25,666


3,933

Total liabilities

8,764,899


8,385,227


1,285,092

Shareholder's equity (i)

13,718,782


14,835,329


2,273,614

Total liabilities and shareholder's equity

22,483,681


23,220,556


3,558,706


(i): As of December 31, 2020, the number of ordinary shares outstanding was 411,981,508.

 


 

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



2019


2020


2020


2019


2020


2020



RMB


RMB


US$


RMB


RMB


US$


Cash flows from operating activities:













Net income

1,052,320


651,130


99,790


2,960,768


2,100,392


321,900


Adjustments to reconcile net income to net cash provided by o
perating activities:













Depreciation of property and equipment

51,385


55,375


8,487


198,237


208,990


32,029


Amortization of intangible assets

40,239


37,741


5,784


157,954


157,258


24,101


Share-based compensation

167,458


157,584


24,151


1,408,232


678,686


104,013


Share of loss on equity method investments

31,406


26,319


4,034


23,350


42,522


6,517


Gain or loss on long-term investments

-


(7,500)


(1,149)


15,711


(1,500)


(230)


Gain on subsidiary deconsolidation

-


-


-


-


(6,676)


(1,023)


Loss (gain) on disposal of property and equipment

-


3


-


(398)


(282)


(43)


Provision of losses on receivable and other assets

-


19,663


3,013


12,209


46,075


7,061


Cash received on investment income distribution

-


-


-


-


1,153


177


Changes in operating assets and liabilities:













Accounts receivable

110,340


34,533


5,292


442,176


52,247


8,007


Prepaid expenses and other current assets

49,554


104,636


16,036


26,372


(59,117)


(9,060)


Amount due from a related party

(2,776)


-


-


(4,382)


4,382


672


Rental deposits

(474)


(4,372)


(670)


(836)


(4,265)


(654)


Deferred tax assets

(2,582)


1,535


235


20,722


4,569


700


Other non-current assets

(3,411)


(166,665)


(25,543)


(24,022)


(138,484)


(21,224)


Accounts payable

98,021


66,948


10,260


52,246


(11,716)


(1,796)


Income tax payable

39,938


(95,341)


(14,612)


16,886


82,514


12,646


Deferred revenue

6,852


24,740


3,792


61,641


8,910


1,366


Accrued expenses and other current liabilities

75,791


41,048


6,291


212,349


(120,363)


(18,446)


Amount due to related parties

235


(12,406)


(1,901)


(53,032)


(10,144)


(1,555)


Deferred tax liability

(10,060)


(9,435)


(1,446)


(45,382)


(39,315)


(6,025)


Other non-current liabilities

(29,153)


113,553


17,403


(31,915)


85,053


13,035


Net cash provided by operating activities

1,675,083


1,039,089


159,247


5,448,886


3,080,889


472,168


Cash flows from investing activities:













Purchase of property and equipment

(32,109)


(16,095)


(2,467)


(186,522)


(124,143)


(19,026)


Proceeds from disposal of property and equipment

4


2


-


808


476


73


Payment for long-term investments

(21,500)


(9,000)


(1,379)


(64,500)


(13,500)


(2,069)


Prepayment of long-term investments

-


-


-


(15,000)


-


-


Cash dividend received

-


-


-


-


233


36


Cash outflow due to subsidiary deconsolidation

-


-


-


-


(1,026)


(157)


Purchase of short-term deposits

(7,650,000)


(3,654,500)


(560,077)


(22,151,135)


(14,949,665)


(2,291,136)


Cash received on maturity of short-term deposits

6,036,000


3,954,500


606,054


18,686,430


19,577,159


3,000,331


Payment for short-term investments

(80,000)


-


-


(360,000)


(10,000)


(1,533)


Cash received from sales of short-term investment

120,000


-


-


360,000


10,000


1,533


Cash received from sales of long term investment

-


12,000


1,839


-


12,000


1,839


Purchase of long-term deposits

(300,000)


(900,000)


(137,931)


(300,000)


(5,250,000)


(804,598)


Net cash used in investing activities

(1,927,605)


(613,093)


(93,961)


(4,029,919)


(748,466)


(114,707)


Cash flows from financing activities:













Deferred payment for business acquisition

-


-


-


(379,507)


(18,355)


(2,813)


Proceeds from exercise of share options

1


171


26


187


226


35


Deferred payment of purchase of property and equipment

(127)


-


-


(17,114)


-


-


Repurchase of ordinary shares

-


(197,799)


(30,314)


-


(330,206)


(50,606)


Repurchase of subsidiary's share options

-


(932)


(143)


-


(25,832)


(3,959)


Dividends payment

-


-


-


(877,346)


(1,123,983)


(172,258)


Net cash used in financing activities

(126)


(198,560)


(30,431)


(1,273,780)


(1,498,150)


(229,601)


Effect of exchange rate changes

(5,532)


(37,770)


(5,788)


(478)


(80,944)


(12,407)


Net (decrease) increase in cash and cash equivalents

(258,180)


189,666


29,067


144,709


753,329


115,453


Cash and cash equivalents at the beginning of period

2,870,923


3,176,406


486,806


2,468,034


2,612,743


400,420


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

2,612,743


3,366,072


515,873


2,612,743


3,366,072


515,873


 


 

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, 2019

ended December 31, 2020


ended December 31, 2020



 

 

GAAP

RMB

Amortization
of intangible
assets from
business
acquisitions
RMB

Share-
based
compensation

RMB

Tax
impacts

(ii)
RMB

Non-GAAP

RMB


GAAP

RMB

Amortization
of intangible
assets from
business
acquisitions
RMB

Share-
based
compensation

RMB

Tax
impacts

(ii)

RMB

Non-GAAP

RMB


GAAP

US$

Amortization
of intangible
assets from
business
acquisitions

US$

Share-
based
compensation

US$

Tax
impacts

(ii)

US$

Non-GAAP

US$


Cost of revenues

(2,351,309)

18,818

7,601

-

(2,324,890)


(2,042,781)

17,694

4,242

-

(2,020,845)


(313,070)

2,712

650

-

(309,708)


Research and
   development

(292,188)

2,390

45,455

-

(244,343)


(327,295)

2,247

38,515

-

(286,533)


(50,160)

344

5,903

-

(43,913)


Sales and marketing

(725,029)

17,598

53,466

-

(653,965)


(697,722)

16,547

27,122

-

(654,053)


(106,931)

2,536

4,157

-

(100,238)


General and
   administrative

(212,603)

-

60,936

-

(151,667)


(222,191)

-

87,705

-

(134,486)


(34,052)

-

13,441

-

(20,611)


Cost and operating
   expenses

(3,581,129)

38,806

167,458

-

(3,374,865)


(3,289,989)

36,488

157,584

-

(3,095,917)


(504,213)

5,592

24,151

-

(474,470)


Income from
   operations

1,249,415

38,806

167,458

-

1,455,679


593,597

36,488

157,584

-

787,669


90,973

5,592

24,151

-

120,716


Net income
   attributable to
   Momo Inc.

1,055,899

38,806

167,458

(9,701)

1,252,462


651,450

36,488

157,584

(9,122)

836,400


99,839

5,592

24,151

(1,398)

128,184
























































 

 

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-continued.










Year


Year


Year


ended December 31, 2019

ended December 31, 2020


ended December 31, 2020



 

 

GAAP

RMB

Amortization
of intangible
assets from
business
acquisitions
RMB

Share-
based
compensation

RMB

Tax
impacts

(ii)
RMB

Non-GAAP

RMB


GAAP

RMB

Amortization
of intangible
assets from
business
acquisitions
RMB

Share-
based
compensation

RMB

Tax
impacts

(ii)

RMB

Non-GAAP

RMB


GAAP

US$

Amortization
of intangible
assets from
business
acquisitions

US$

Share-
based
compensation

US$

Tax
impacts

(ii)

US$

Non-GAAP

US$


Cost of revenues

(8,492,096)

73,817

23,972

-

(8,394,307)


(7,976,781)

73,740

18,449

-

(7,884,592)


(1,222,495)

11,301

2,827

-

(1,208,367)


Research and
   development

(1,095,031)

9,375

175,053

-

(910,603)


(1,167,677)

9,365

175,870

-

(982,442)


(178,954)

1,435

26,953

-

(150,566)


Sales and marketing

(2,690,824)

69,031

196,311

-

(2,425,482)


(2,813,922)

68,960

158,902

-

(2,586,060)


(431,252)

10,569

24,353

-

(396,330)


General and
   administrative

(1,527,282)

-

1,012,896

-

(514,386)


(763,150)

-

325,465

-

(437,685)


(116,958)

-

49,880

-

(67,078)


Cost and operating
   expenses

(13,805,233)

152,223

1,408,232

-

(12,244,778)


(12,721,530)

152,065

678,686

-

(11,890,779)


(1,949,659)

23,305

104,013

-

(1,822,341)


Income from
   operations

3,554,699

152,223

1,408,232

-

5,115,154


2,531,435

152,065

678,686

-

3,362,186


387,961

23,305

104,013

-

515,279


Net income
   attributable to
   Momo Inc.

2,970,890

152,223

1,408,232

(38,056)

4,493,289


2,103,484

152,065

678,686

(38,016)

2,896,219


322,374

23,305

104,013

(5,826)

443,866























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












 


 

Momo Inc.

Unaudited  Condensed Segment Report

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


Three months

  ended  December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

1,923,544


404,331


-


2,327,875


356,762

Value-added service

1,065,062


336,207


-


1,401,269


214,754

Mobile marketing

52,663


-


-


52,663


8,071

Mobile games

7,334


-


-


7,334


1,124

Other services

2,743


-


3,317


6,060


929

Total net revenues

3,051,346


740,538


3,317


3,795,201


581,640

Cost and expenses (iii):










Cost of revenues

(1,676,071)


(365,350)


(1,360)


(2,042,781)


(313,070)

Research and development

(243,555)


(83,740)


-


(327,295)


(50,160)

Sales and marketing

(361,115)


(336,558)


(49)


(697,722)


(106,931)

General and administrative

(202,831)


(11,891)


(7,469)


(222,191)


(34,052)

Total cost and expenses

(2,483,572)


(797,539)


(8,878)


(3,289,989)


(504,213)

Other operating income

83,110


3,945


1,330


88,385


13,546

Income (loss) from operations

650,884


(53,056)


(4,231)


593,597


90,973

Interest income

100,347


486


47


100,880


15,461

Interest expense

(19,047)


-


-


(19,047)


(2,919)

Other gain or loss, net

7,500


-


-


7,500


1,149

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

739,684


(52,570)


(4,184)


682,930


104,664

Income tax (expenses) benefits

(7,565)


2,084


-


(5,481)


(840)

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

732,119


(50,486)


(4,184)


677,449


103,824

Share of loss on equity method
   investments

(26,319)


-


-


(26,319)


(4,034)

Net income (loss)

705,800


(50,486)


(4,184)


651,130


99,790



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



Three months


ended December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

2,844


1,398


-


4,242


650

Research and development

31,946


6,569


-


38,515


5,903

Sales and marketing

21,452


5,670


-


27,122


4,157

General and administrative

84,706


644


2,355


87,705


13,441

Total cost and expenses

140,948


14,281


2,355


157,584


24,151

 

 

Momo 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, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

650,884


(53,056)


(4,231)


593,597


90,973

Share-based compensation

140,948


14,281


2,355


157,584


24,151

Amortization of intangible assets from business
   acquisitions

-


36,488


-


36,488


5,592

Non-GAAP income (loss) from operations

791,832


(2,287)


(1,876)


787,669


120,716











Net income (loss)

705,800


(50,486)


(4,184)


651,130


99,790

Share-based compensation

140,948


14,281


2,355


157,584


24,151

Amortization of intangible assets from business
   acquisitions

-


36,488


-


36,488


5,592

Tax impacts

-


(9,122)


-


(9,122)


(1,398)

Non-GAAP net income (loss)

846,748


(8,839)


(1,829)


836,080


128,135

 

 

Momo Inc.

Unaudited Condensed Segment Report

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


Three months

ended December 31, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$[1]

Net revenues:










Live video service

3,383,477


-


-


3,383,477


486,006

Value-added service

819,325


369,789


-


1,189,114


170,806

Mobile marketing

92,991


-


-


92,991


13,357

Mobile games

14,418


-


-


14,418


2,071

Other services

7,111


-


787


7,898


1,134

Total net revenues

4,317,322


369,789


787


4,687,898


673,374

Cost and expenses (iv):










Cost of revenues

(2,222,912)


(127,748)


(649)


(2,351,309)


(337,744)

Research and development

(205,793)


(86,395)


-


(292,188)


(41,970)

Sales and marketing

(379,940)


(345,089)


-


(725,029)


(104,144)

General and administrative

(192,789)


(13,275)


(6,539)


(212,603)


(30,539)

Total cost and expenses

(3,001,434)


(572,507)


(7,188)


(3,581,129)


(514,397)

Other operating income

142,613


-


33


142,646


20,490

Income (loss) from operations

1,458,501


(202,718)


(6,368)


1,249,415


179,467

Interest income

105,947


2,197


61


108,205


15,543

Interest expense

(20,190)


-


-


(20,190)


(2,900)

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

1,544,258


(200,521)


(6,307)


1,337,430


192,110

Income tax (expenses) benefits

(265,981)


12,277


-


(253,704)


(36,442)

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

1,278,277


(188,244)


(6,307)


1,083,726


155,668

Share of loss on equity method
   investments

(31,406)


-


-


(31,406)


(4,511)

Net income (loss)

1,246,871


(188,244)


(6,307)


1,052,320


151,157


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



Three months


ended December 31, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

6,000


1,601


-


7,601


1,092

Research and development

26,980


18,475


-


45,455


6,529

Sales and marketing

45,971


7,495


-


53,466


7,680

General and administrative

56,467


1,384


3,085


60,936


8,753

Total cost and expenses

135,418


28,955


3,085


167,458


24,054


[1] All translations from RMB to U.S. dollars are made at a rate of RMB 6.9618 to US$1.00, the effective noon buying rate for December 31, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

 

Momo 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, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

1,458,501


(202,718)


(6,368)


1,249,415


179,467

Share-based compensation

135,418


28,955


3,085


167,458


24,054

Amortization of intangible assets from business 
   acquisitions

-


38,806


-


38,806


5,574

Non-GAAP income (loss) from operations

1,593,919


(134,957)


(3,283)


1,455,679


209,095











Net income (loss)

1,246,871


(188,244)


(6,307)


1,052,320


151,157

Share-based compensation

135,418


28,955


3,085


167,458


24,054

Amortization of intangible assets from business
   acquisitions

-


38,806


-


38,806


5,574

Tax impacts

-


(9,701)


-


(9,701)


(1,394)

Non-GAAP net income (loss)

1,382,289


(130,184)


(3,222)


1,248,883


179,391

 

 

Momo Inc.

Unaudited Condensed Segment Report

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


Year

  ended December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

8,638,810


998,769


-


9,637,579


1,477,024

Value-added service

3,742,637


1,369,545


-


5,112,182


783,476

Mobile marketing

198,197


-


-


198,197


30,375

Mobile games

39,564


-


-


39,564


6,063

Other services

11,911


-


24,755


36,666


5,620

Total net revenues

12,631,119


2,368,314


24,755


15,024,188


2,302,558

Cost and expenses (v):










Cost of revenues

(6,865,836)


(1,088,816)


(22,129)


(7,976,781)


(1,222,495)

Research and development

(844,826)


(322,851)




(1,167,677)


(178,954)

Sales and marketing

(1,454,123)


(1,359,709)


(90)


(2,813,922)


(431,252)

General and administrative

(664,458)


(73,019)


(25,673)


(763,150)


(116,958)

Total cost and expenses

(9,829,243)


(2,844,395)


(47,892)


(12,721,530)


(1,949,659)

Other operating income

223,312


3,945


1,520


228,777


35,062

Income (loss) from operations

3,025,188


(472,136)


(21,617)


2,531,435


387,961

Interest income

440,878


3,353


240


444,471


68,118

Interest expense

(78,872)


-


-


(78,872)


(12,088)

Other gain or loss, net

1,500


-


-


1,500


230

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

3,388,694


(468,783)


(21,377)


2,898,534


444,221

Income tax (expenses) benefits

(770,333)


14,713


-


(755,620)


(115,804)

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

2,618,361


(454,070)


(21,377)


2,142,914


328,417

Share of loss on equity method
   investments

(42,522)


-


-


(42,522)


(6,517)

Net income (loss)

2,575,839


(454,070)


(21,377)


2,100,392


321,900


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



Year


ended December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

15,189


3,260


-


18,449


2,827

Research and development

127,714


48,156


-


175,870


26,953

Sales and marketing

142,908


15,994


-


158,902


24,353

General and administrative

292,356


22,882


10,227


325,465


49,880

Total cost and expenses

578,167


90,292


10,227


678,686


104,013

 

 

Momo Inc.

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

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


Year


ended December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

3,025,188


(472,136)


(21,617)


2,531,435


387,961

Share-based compensation

578,167


90,292


10,227


678,686


104,013

Amortization of intangible assets from business
   acquisitions

-


152,065


-


152,065


23,305

Non-GAAP income (loss) from operations

3,603,355


(229,779)


(11,390)


3,362,186


515,279











Net income (loss)

2,575,839


(454,070)


(21,377)


2,100,392


321,900

Share-based compensation

578,167