Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 2020

 

 

Commission File Number: 001-36765

 

 

Momo Inc.

 

 

20th Floor, Block B

Tower 2, Wangjing SOHO

No.1 Futongdong Street

Chaoyang District, Beijing 100102

People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):________________

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):________________

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Momo Inc.
By :  

/s/ Jonathan Xiaosong Zhang

Name :   Jonathan Xiaosong Zhang
Title :   Chief Financial Officer

Date: December 1, 2020


Exhibit Index

Exhibit 99.1—Press Release

EX-99.1

Exhibit 99.1

Momo Announces Unaudited Financial Results for the Third Quarter of 2020

BEIJING, CHINA, December 1, 2020 – Momo Inc. (NASDAQ: MOMO) (“Momo” or the “Company”), a leading mobile social networking platform in China, today announced its unaudited financial results for the third quarter of 2020.

Third Quarter of 2020 Highlights

 

 

Net revenues decreased by 15.4% year over year to RMB3,766.7 million (US$554.8 million*) in the third quarter of 2020.

 

 

Net income attributable to Momo Inc. decreased to RMB456.7 million (US$67.3 million) in the third quarter of 2020 from RMB893.9 million in the same period of 2019.

 

 

Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB653.8 million (US$96.3 million) in the third quarter of 2020, from RMB1,088.1 million in the same period of 2019.

 

 

Diluted net income per American Depositary Share (“ADS”) was RMB2.11 (US$0.31) in the third quarter of 2020, compared to RMB4.04 in the same period of 2019.

 

 

Non-GAAP diluted net income per ADS (note 1) was RMB2.98 (US$0.44) in the third quarter of 2020, compared to RMB4.90 in the same period of 2019.

 

 

Monthly Active Users (“MAU”) on Momo application were 113.6 million in September 2020, compared to 114.1 million in September 2019.

 

 

Total paying users of our live video service and value-added service, without double counting the overlap and including 4.1 million paying users of Tantan Limited (“Tantan”), were 13.1 million for the third quarter of 2020, compared to 13.4 million for the third quarter of 2019, which included 4.5 million paying users of Tantan.

First Nine Months of 2020 Highlights

 

 

Net revenues decreased by 8.9% year over year to RMB11,229.0 million (US$1,653.9 million) for the first nine months of 2020.

 

 

Net income attributable to Momo Inc. was RMB1,452.0 million (US$213.9 million) for the first nine months of 2020, compared with RMB1,915.0 million during the same period of 2019.

 

 

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,059.8 million (US$303.4 million) for the first nine months of 2020, compared with RMB3,240.8 million during the same period of 2019.

 

 

Diluted net income per ADS was RMB6.68 (US$0.98) for the first nine months of 2020, compared with RMB8.76 during the same period of 2019.

 

 

Non-GAAP diluted net income per ADS (note 1) was RMB9.36 (US$1.38) for the first nine months of 2020, compared with RMB14.65 during the same period of 2019.

“The third quarter of 2020 was a busy quarter for us. As a result of management’s commitment and the persistence of our colleagues, the structural reform within the core live broadcasting business has achieved initial success.” Commented Li Wang, CEO of Momo. “The critical metrics reflecting the healthiness of the ecosystem have been showing positive signs. As the content ecosystem gradually

improved, non-event days’ revenue is also seeing strong rebound. Although we have more hard work to do down the path, what we have achieved so far gives us the confidence that our live streaming business has entered into a virtuous cycle supported by a sustainable content ecosystem.”

 

* 

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 RMB6.7896 to US$1.00, the effective noon buying rate for September 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

1


Third Quarter of 2020 Financial Results

Net revenues

Total net revenues were RMB3,766.7 million (US$554.8 million) in the third quarter of 2020, a decrease of 15.4% from RMB4,451.6 million in the third quarter of 2019.

Live video service revenues were RMB2,374.8 million (US$349.8 million) in the third quarter of 2020, a decrease of 27% from RMB3,275.4 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 RMB396.7 million (US$58.4 million) in the third quarter of 2020.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,330.8 million (US$196.0 million) in the third quarter of 2020, an increase of 25% from RMB1,064.6 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 launched and more paying scenarios introduced to enhance the social entertainment experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB50.4 million (US$7.4 million) in the third quarter of 2020, a decrease of 38% from RMB81.9 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 RMB8.0 million (US$1.2 million) in the third quarter of 2020, a decrease of 49% from RMB15.8 million in the third 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 Momo segment decreased from RMB4,138.9 million in the third quarter of 2019 to RMB3,037.0 million (US$447.3 million) in the third 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 Tantan segment increased from RMB310.0 million in the third quarter of 2019 to RMB728.9 million (US$107.4 million) in the third quarter of 2020, which was mainly due to the increase in net revenues from live video service and to a lesser extent, the increase in net revenues from value-added services.

Cost and expenses

Cost and expenses were RMB3,258.5 million (US$479.9 million) in the third quarter of 2020, a decrease of 6.6% from RMB3,487.9 million in the third 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 personnel related costs, professional fees and infrastructure-related spending, such as bandwidth costs and server depreciation costs. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service, and an increase in marketing and promotional expenses to attract users on Tantan.

 

2


Non-GAAP cost and expenses (note 1) were RMB3,052.0 million (US$449.5 million) in the third quarter of 2020, a decrease of 7.1% from RMB3,284.0 million during the same period of 2019.

Income from operations

Income from operations was RMB531.1 million (US$78.2 million) in the third quarter of 2020, compared to RMB993.1 million during the same period of 2019. Income from operations of Momo segment was RMB658.7 million (US$97.0 million) in the third quarter of 2020, decreasing from RMB1,227.2 million in the third quarter of 2019. Loss from operations of Tantan segment was RMB121.5 million (US$17.9 million) in the third quarter of 2020, compared to loss from operations of RMB228.7 million in the third quarter of 2019.

Non-GAAP income from operations (note 1) was RMB737.6 million (US$108.6 million) in the third quarter of 2020, compared to RMB1,196.9 million during the same period of 2019. Non-GAAP income from operations of Momo segment was RMB805.8 million (US$118.7 million) in the third quarter of 2020, decreasing from RMB1,364.1 million in the third quarter of 2019. Non-GAAP loss from operations of Tantan segment was RMB64.7 million (US$9.5 million) in the third quarter of 2020, compared to non-GAAP loss from operations of RMB164.4 million in the third quarter of 2019.

Income tax expenses

Income tax expenses were RMB143.6 million (US$21.2 million) in the third quarter of 2020, decreasing from RMB182.6 million in the third quarter of 2019. The decrease in income tax expenses was mainly due to the lower profit in the third quarter of 2020.

Net income

Net income was RMB456.0 million (US$67.2 million) in the third quarter of 2020, compared to RMB890.8 million during the same period of 2019. Net income from Momo segment was RMB576.2 million (US$84.9 million) in the third quarter of 2020, decreasing from RMB1,110.2 million in the third quarter of 2019. Net loss from Tantan segment was RMB114.2 million (US$16.8 million) in the third quarter of 2020, compared to net loss of RMB214.1 million in the third quarter of 2019.

Non-GAAP net income (note 1) was RMB653.1 million (US$96.2 million) in the third quarter of 2020, compared to RMB1,084.9 million during the same period of 2019. Non-GAAP net income from Momo segment was RMB723.4 million (US$106.5 million) in the third quarter of 2020, decreasing from RMB1,247.2 million in the third quarter of 2019. Non-GAAP net loss of Tantan segment was RMB66.9 million (US$9.8 million) in the third quarter of 2020, compared to non-GAAP net loss of RMB159.5 million in the third quarter of 2019.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB456.7 million (US$67.3 million) in the third quarter of 2020, compared to RMB893.9 million during the same period of 2019.

 

3


Non-GAAP net income (note 1) attributable to Momo Inc. was RMB653.8 million (US$96.3 million) in the third quarter of 2020, compared to RMB1,088.1 million during the same period of 2019.

Net income per ADS

Diluted net income per ADS was RMB2.11 (US$0.31) in the third quarter of 2020, compared to RMB4.04 in the third quarter of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB2.98 (US$0.44) in the third quarter of 2020, compared to RMB4.90 in the third quarter of 2019.

Cash and cash flow

As of September 30, 2020, Momo’s cash, cash equivalents, short-term deposits and long-term deposits totaled RMB15,764.1 million (US$2,321.8 million), compared to RMB15,225.3 million as of December 31, 2019. Net cash provided by operating activities in the third quarter of 2020 was RMB691.1 million (US$101.8 million), compared to RMB1,175.9 million in the third quarter of 2019.

First Nine Months of 2020 Financial Results

Net revenues for the first nine months of 2020 were RMB11,229.0 million (US$1,653.9 million), a decrease of 8.9% from RMB12,327.2 million in the same period of 2019.

Net income attributable to Momo Inc. was RMB1,452.0 million (US$213.9 million) for the first nine months of 2020, compared to RMB1,915.0 million during the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,059.8 million (US$303.4 million) for the first nine months of 2020, compared to RMB3,240.8 million during the same period of 2019.

Diluted net income per ADS was RMB6.68 (US$0.98) during the first nine months of 2020, compared to RMB8.76 in the same period of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB9.36 (US$1.38) during the first nine months of 2020, compared to RMB14.65 in the same period of 2019.

Net cash provided by operating activities was RMB2,041.8 million (US$300.7 million) during the first nine months of 2020, compared to RMB3,773.8 million in the same period of 2019.

Recent Developments

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 November 30, 2020, the Company had repurchased approximately 1.66 million ADSs for approximately US$23.3 million on the open market under this program, at an average purchase price of US$14.03 per ADS.

Mr. Xiaoliang Lei will step down from the Company’s Chief Strategy Officer position for personal reasons effective from December 2020, and he will continue to serve as a senior advisor to the Company.

 

4


Business Outlook

For the fourth quarter of 2020, the Company expects total net revenues to be between RMB3.65 billion to RMB3.75 billion, representing a decrease of 22.1% to 20.0% year over year. This forecast considers the potential impact of the COVID-19 outbreak and reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change, particularly as to the potential impact of the COVID-19 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 Tuesday, December 1, 2020, at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong Time on December 1, 2020).

 

5


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/1217808

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

A telephone replay of the call will be available after the conclusion of the conference call through 8:00 a.m. U.S. Eastern Time, December 9, 2020. The dial-in details for the replay are as follows:

International: +61-2-8199-0299

U.S. Toll Free: +1-855-452-5696

Passcode: 1217808

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

 

6


Safe Harbor Statement

This news release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the fourth quarter of 2020, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the third quarter of 2020 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2020 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 to 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

 

7


Momo Inc.  
Unaudited Condensed Consolidated Statement of Operations  
(All amounts in thousands, except share and per share data)  
     Three months     First nine months  
   ended September 30     ended September 30  
     2019     2020     2020     2019     2020     2020  
     RMB     RMB     US$     RMB     RMB     US$  

Net revenues:

            

Live video service

     3,275,354       2,374,824       349,774       9,064,654       7,309,704       1,076,603  

Value-added service

     1,064,606       1,330,839       196,012       2,916,849       3,710,913       546,559  

Mobile marketing

     81,894       50,415       7,425       238,831       145,534       21,435  

Mobile games

     15,785       7,975       1,175       78,033       32,230       4,747  

Other services

     14,003       2,598       382       28,824       30,606       4,507  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     4,451,642       3,766,651       554,768       12,327,191       11,228,987       1,653,851  

Cost and expenses:

            

Cost of revenues

     (2,203,350     (2,020,779     (297,629     (6,140,787     (5,934,000     (873,984

Research and development

     (301,754     (299,221     (44,070     (802,843     (840,382     (123,775

Sales and marketing

     (771,338     (754,892     (111,184     (1,965,795     (2,116,200     (311,683

General and administrative

     (211,423     (183,649     (27,049     (1,314,679     (540,959     (79,675
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (3,487,865     (3,258,541     (479,932     (10,224,104     (9,431,541     (1,389,117

Other operating income

     29,342       22,944       3,379       202,197       140,392       20,678  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     993,119       531,054       78,215       2,305,284       1,937,838       285,412  

Interest income

     105,384       104,232       15,352       299,337       343,591       50,605  

Interest expense

     (20,117     (19,885     (2,929     (58,421     (59,825     (8,811

Impairment loss on long-term investments

     (11,211     —         —         (15,711     (6,000     (884
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,067,175       615,401       90,638       2,530,489       2,215,604       326,322  

Income tax expenses

     (182,578     (143,615     (21,152     (630,097     (750,139     (110,484
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before share of income on equity method investments

     884,597       471,786       69,486       1,900,392       1,465,465       215,838  

Share of income (loss) on equity method investments

     6,185       (15,763     (2,322     8,056       (16,203     (2,386
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     890,782       456,023       67,164       1,908,448       1,449,262       213,452  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: net loss attributable to non-controlling interest

     (3,115     (705     (104     (6,543     (2,772     (408
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to the shareholders of Momo Inc.

     893,897       456,728       67,268       1,914,991       1,452,034       213,860  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to ordinary shareholders

            

Basic

     2.15       1.09       0.16       4.62       3.48       0.51  

Diluted

     2.02       1.05       0.16       4.38       3.34       0.49  

Weighted average shares used in calculating net income per ordinary share

            

Basic

     415,615,139       417,884,266       417,884,266       414,790,186       417,580,609       417,580,609  

Diluted

     452,571,862       452,724,863       452,724,863       450,470,088       452,854,314       452,854,314  

 

8


Momo Inc.  
Unaudited Condensed Consolidated Statement of Comprehensive Income  
(All amounts in thousands, except share and per share data)  
     Three months     First nine months  
   ended September 30     ended September 30  
     2019      2020     2020     2019      2020     2020  
     RMB      RMB     US$     RMB      RMB     US$  

Net income

     890,782        456,023       67,164       1,908,448        1,449,262       213,452  

Other comprehensive income (loss), net of tax

              

Foreign currency translation adjustment

     62,771        (80,618     (11,874     30,689        (72,667     (10,703
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Comprehensive income

     953,553        375,405       55,290       1,939,137        1,376,595       202,749  

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

     3,519        (9,953     (1,466     556        (16,945     (2,496
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Comprehensive income attributable to Momo Inc.

     950,034        385,358       56,756       1,938,581        1,393,540       205,245  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

9


Momo Inc.  
Unaudited Condensed Consolidated Balance Sheets  
(All amounts in thousands, except share and per share data)  
     December 31      September 30      September 30  
     2019      2020      2020  
   RMB      RMB      US$  

Assets

        

Current assets

        

Cash and cash equivalents

     2,612,743        3,176,406        467,834  

Short-term deposits

     12,312,585        7,937,692        1,169,096  

Accounts receivable, net of allowance for doubtful accounts of RMB12,209 and RMB17,621 as of December 31, 2019 and September 30, 2020, respectively

     265,155        233,398        34,376  

Amount due from a related party

     4,382        —          —    

Prepaid expenses and other current assets

     599,000        738,502        108,769  
  

 

 

    

 

 

    

 

 

 

Total current assets

     15,793,865        12,085,998        1,780,075  

Long-term deposits

     300,000        4,650,000        684,871  

Right-of-use assets, net

     190,552        112,012        16,498  

Property and equipment, net

     346,345        305,420        44,983  

Intangible assets

     890,303        752,470        110,827  

Rental deposits

     25,028        24,922        3,671  

Long-term investments

     495,905        476,815        70,227  

Other non-current assets

     44,009        94,368        13,899  

Deferred tax assets

     37,064        34,031        5,012  

Goodwill

     4,360,610        4,253,297        626,443  
  

 

 

    

 

 

    

 

 

 

Total assets

     22,483,681        22,789,333        3,356,506  
  

 

 

    

 

 

    

 

 

 

Liabilities and equity

        

Current liabilities

        

Accounts payable

     714,323        634,249        93,415  

Deferred revenue

     503,461        487,234        71,761  

Accrued expenses and other current liabilities

     985,873        858,038        126,376  

Amount due to related parties

     29,606        31,868        4,694  

Lease liabilities due within one year

     135,169        92,500        13,624  

Income tax payable

     153,976        331,831        48,873  

Deferred consideration in connection with business acquisitions

     84,346        64,669        9,525  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     2,606,754        2,500,389        368,268  

Deferred tax liabilities

     222,576        188,118        27,707  

Convertible senior notes

     4,954,352        4,843,751        713,407  

Share-based compensation liability

     902,047        910,197        134,057  

Lease liabilities

     56,498        15,287        2,252  

Other non-current liabilities

     22,672        34,495        5,081  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     8,764,899        8,492,237        1,250,772  

Shareholder’s equity (i)

     13,718,782        14,297,096        2,105,734  
  

 

 

    

 

 

    

 

 

 

Total liabilities and shareholder’s equity

     22,483,681        22,789,333        3,356,506  
  

 

 

    

 

 

    

 

 

 

 

(i):

As of September 30, 2020, the number of ordinary shares outstanding was 415,801,407.

 

10


Momo Inc.  
Unaudited Condensed Consolidated Statement of Cash Flows  
(All amounts in thousands, except share and per share data)  
     Three months     First nine months  
     ended September 30     ended September 30  
     2019     2020     2020     2019     2020     2020  
     RMB     RMB     US$     RMB     RMB     US$  

Cash flows from operating activities:

            

Net income

     890,782       456,023       67,164       1,908,448       1,449,262       213,452  

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

            

Depreciation of property and equipment

     50,216       49,024       7,220       146,852       153,615       22,625  

Amortization of intangible assets

     40,100       39,347       5,795       117,715       119,517       17,603  

Share-based compensation

     165,163       168,475       24,814       1,240,774       521,102       76,751  

Share of (income) loss on equity method investments

     (6,185     15,763       2,322       (8,056     16,203       2,386  

Impairment loss on long-term investments

     11,211       —         —         15,711       6,000       884  

Gain on subsidiary deconsolidation

     —         —         —         —         (6,676     (983

Gain on disposal of property and equipment

     (64     (284     (42     (398     (285     (42

Provision of allowance for doubtful accounts

     2,900       26,006       3,830       12,209       26,412       3,890  

Cash received on investment income distribution

     —         —         —         —         1,153       170  

Changes in operating assets and liabilities:

            

Accounts receivable

     (103,290     15,968       2,352       331,836       17,714       2,609  

Prepaid expenses and other current assets

     (24,378     (207,586     (30,574     (23,182     (163,753     (24,118

Amount due from a related party

     (1,335     2,029       299       (1,606     4,382       645  

Rental deposits

     2,033       (83     (12     (362     107       16  

Deferred tax assets

     (2,803     561       83       23,304       3,034       447  

Other non-current assets

     (33,254     9,930       1,463       (20,611     28,181       4,151  

Accounts payable

     (133,863     (62,189     (9,159     (45,775     (78,664     (11,586

Income tax payable

     (16,064     112,799       16,613       (23,052     177,855       26,195  

Deferred revenue

     84,711       17,442       2,569       54,789       (15,830     (2,332

Accrued expenses and other current liabilities

     278,181       52,819       7,779       136,558       (161,411     (23,773

Amount due to related parties

     (10,550     13,495       1,988       (53,267     2,262       333  

Deferred tax liability

     (10,025     (9,837     (1,449     (35,322     (29,880     (4,401

Other non-current liabilities

     (7,556     (8,648     (1,274     (2,762     (28,500     (4,198
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     1,175,930       691,054       101,781       3,773,803       2,041,800       300,724  

Cash flows from investing activities:

            

Purchase of property and equipment

     (59,933     (24,078     (3,546     (154,413     (108,048     (15,914

Proceeds from disposal of property and equipment

     294       457       67       804       474       70  

Payment for long-term investments

     (19,000     —         —         (43,000     (4,500     (663

Prepayment of long-term investments

     —         —         —         (15,000     —         —    

Cash dividend received

     —         —         —         —         233       34  

Cash outflow due to subsidiary deconsolidation

     —         —         —         —         (1,026     (151

Purchase of short-term deposits

     (4,786,130     (3,053,307     (449,704     (14,501,135     (11,295,165     (1,663,598

Cash received on maturity of short-term deposits

     4,785,400       4,337,085       638,784       12,650,430       15,622,659       2,300,969  

Payment for short-term investments

     (30,000     —         —         (280,000     (10,000     (1,473

Cash received from sales of short-term investment

     80,000       —         —         240,000       10,000       1,473  

Purchase of long-term deposits

     —         (1,550,000     (228,290     —         (4,350,000     (640,686
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (29,369     (289,843     (42,689     (2,102,314     (135,373     (19,939

Cash flows from financing activities:

            

Deferred payment for business acquisition

     (759     —         —         (379,507     (18,355     (2,703

Proceeds from exercise of share options

     71       54       8       186       55       8  

Deferred payment of purchase of property and equipment

     (16,893     —         —         (16,987     —         —    

Repurchase of ordinary shares

     —         (132,407     (19,501     —         (132,407     (19,501

Repurchase of subsidiary’s share options

     —         (24,900     (3,667     —         (24,900     (3,667

Dividends payment

     —         —         —         (877,346     (1,123,983     (165,545
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (17,581     (157,253     (23,160     (1,273,654     (1,299,590     (191,408

Effect of exchange rate changes

     6,200       (45,135     (6,649     5,054       (43,174     (6,358
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

     1,135,180       198,823       29,283       402,889       563,663       83,019  

Cash and cash equivalents at the beginning of period

     1,735,743       2,977,583       438,551       2,468,034       2,612,743       384,815  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of period

     2,870,923       3,176,406       467,834       2,870,923       3,176,406       467,834  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

11


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 September 30, 2019     ended September 30, 2020     ended September 30, 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

    (2,203,350     18,751       6,738       —         (2,177,861     (2,020,779     18,472       4,434       —         (1,997,873     (297,629     2,721       653        —         (294,255

Research and development

    (301,754     2,381       45,345       —         (254,028     (299,221     2,346       44,610       —         (252,265     (44,070     346       6,570        —         (37,154

Sales and marketing

    (771,338     17,535       52,100       —         (701,703     (754,892     17,275       41,583       —         (696,034     (111,184     2,544       6,125        —         (102,515

General and administrative

    (211,423     —         60,980       —         (150,443     (183,649     —         77,848       —         (105,801     (27,049     —         11,466        —         (15,583
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Cost and operating expenses

    (3,487,865     38,667       165,163       —         (3,284,035     (3,258,541     38,093       168,475       —         (3,051,973     (479,932     5,611       24,814        —         (449,507

Income from operations

    993,119       38,667       165,163       —         1,196,949       531,054       38,093       168,475       —         737,622       78,215       5,611       24,814        —         108,640  

Net income attributable to Momo Inc.

    893,897       38,667       165,163       (9,667     1,088,060       456,728       38,093       168,475       (9,523     653,773       67,268       5,611       24,814        (1,403     96,290  

 

12


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.

 

    First nine months     First nine months     First nine months  
  ended September 30, 2019     ended September 30, 2020     ended September 30, 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

    (6,140,787     54,999       16,371       —         (6,069,417     (5,934,000     56,046       14,207       —         (5,863,747     (873,984     8,255       2,092       —         (863,637

Research and development

    (802,843     6,985       129,598       —         (666,260     (840,382     7,118       137,355       —         (695,909     (123,775     1,048       20,231       —         (102,496

Sales and marketing

    (1,965,795     51,433       142,845       —         (1,771,517     (2,116,200     52,413       131,780       —         (1,932,007     (311,683     7,720       19,409       —         (284,554

General and administrative

    (1,314,679     —         951,960       —         (362,719     (540,959     —         237,760       —         (303,199     (79,675     —         35,019       —         (44,656
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost and operating expenses

    (10,224,104     113,417       1,240,774       —         (8,869,913     (9,431,541     115,577       521,102       —         (8,794,862     (1,389,117     17,023       76,751       —         (1,295,343

Income from operations

    2,305,284       113,417       1,240,774       —         3,659,475       1,937,838       115,577       521,102       —         2,574,517       285,412       17,023       76,751       —         379,186  

Net income attributable to Momo Inc.

    1,914,991       113,417       1,240,774       (28,355     3,240,827       1,452,034       115,577       521,102       (28,894     2,059,819       213,860       17,023       76,751       (4,255     303,379  

 

(ii)

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

 

13


Momo Inc.  
Unaudited Condensed Segment Report  
(All amounts in thousands, except share and per share data)  
     Three months  
   ended September 30, 2020  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

          

Live video service

     1,978,098       396,726       —         2,374,824       349,774  

Value-added service

     998,668       332,171       —         1,330,839       196,012  

Mobile marketing

     50,415       —         —         50,415       7,425  

Mobile games

     7,975       —         —         7,975       1,175  

Other services

     1,810       —         788       2,598       382  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     3,036,966       728,897       788       3,766,651       554,768  

Cost and expenses (iii):

          

Cost of revenues

     (1,660,806     (358,743     (1,230     (2,020,779     (297,629

Research and development

     (214,597     (84,624     —         (299,221     (44,070

Sales and marketing

     (361,448     (393,437     (7     (754,892     (111,184

General and administrative

     (164,331     (13,620     (5,698     (183,649     (27,049
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (2,401,182     (850,424     (6,935     (3,258,541     (479,932

Other operating income

     22,893       —         51       22,944       3,379  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     658,677       (121,527     (6,096     531,054       78,215  

Interest income

     103,477       706       49       104,232       15,352  

Interest expense

     (19,885     —         —         (19,885     (2,929
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     742,269       (120,821     (6,047     615,401       90,638  

Income tax (expenses) benefits

     (150,278     6,663       —         (143,615     (21,152
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     591,991       (114,158     (6,047     471,786       69,486  

Share of loss on equity method investments

     (15,763     —         —         (15,763     (2,322
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     576,228       (114,158     (6,047     456,023       67,164  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(iii)

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

 

     Three months  
     ended September 30, 2020  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

     3,338        1,096        —          4,434        653  

Research and development

     32,296        12,314        —          44,610        6,570  

Sales and marketing

     37,110        4,473        —          41,583        6,125  

General and administrative

     74,416        837        2,595        77,848        11,466  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     147,160        18,720        2,595        168,475        24,814  

 

14


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 September 30, 2020  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Operating income (loss)

     658,677        (121,527     (6,096     531,054       78,215  

Share-based compensation

     147,160        18,720       2,595       168,475       24,814  

Amortization of intangible assets from business acquisitions

     —          38,093       —         38,093       5,611  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income (loss)

     805,837        (64,714     (3,501     737,622       108,640  

Net income (loss)

     576,228        (114,158     (6,047     456,023       67,164  

Share-based compensation

     147,160        18,720       2,595       168,475       24,814  

Amortization of intangible assets from business acquisitions

     —          38,093       —         38,093       5,611  

Tax impacts

     —          (9,523     —         (9,523     (1,403
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

     723,388        (66,868     (3,452     653,068       96,186  

 

15


Momo Inc.  
Unaudited Condensed Segment Report  
(All amounts in thousands, except share and per share data)  
     Three months  
   ended September 30, 2019  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$2  

Net revenues:

          

Live video service

     3,275,354       —         —         3,275,354       458,239  

Value-added service

     754,629       309,977       —         1,064,606       148,944  

Mobile marketing

     81,894       —         —         81,894       11,457  

Mobile games

     15,785       —         —         15,785       2,208  

Other services

     11,234       —         2,769       14,003       1,960  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     4,138,896       309,977       2,769       4,451,642       622,808  

Cost and expenses (iv):

          

Cost of revenues

     (2,101,678     (99,722     (1,950     (2,203,350     (308,260

Research and development

     (225,539     (76,215     —         (301,754     (42,217

Sales and marketing

     (422,034     (349,274     (30     (771,338     (107,914

General and administrative

     (191,832     (13,425     (6,166     (211,423     (29,579
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (2,941,083     (538,636     (8,146     (3,487,865     (487,970

Other operating income

     29,342       —         —         29,342       4,105  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     1,227,155       (228,659     (5,377     993,119       138,943  

Interest income

     102,749       2,594       41       105,384       14,744  

Interest expense

     (20,117     —         —         (20,117     (2,814

Impairment loss on long-term investments

     (11,211     —         —         (11,211     (1,568
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,298,576       (226,065     (5,336     1,067,175       149,305  

Income tax (expenses) benefits

     (194,580     12,002       —         (182,578     (25,544
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,103,996       (214,063     (5,336     884,597       123,761  

Share of income on equity method investments

     6,185       —         —         6,185       865  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     1,110,181       (214,063     (5,336     890,782       124,626  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(iv)

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

 

     Three months  
     ended September 30, 2019  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

     5,917        821        —          6,738        943  

Research and development

     27,375        17,970        —          45,345        6,344  

Sales and marketing

     46,831        5,269        —          52,100        7,289  

General and administrative

     56,860        1,486        2,634        60,980        8,531  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     136,983        25,546        2,634        165,163        23,107  

 

 

2 

All translations from RMB to U.S. dollars are made at a rate of RMB 7.1477 to US$1.00, the effective noon buying rate for September 30, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

16


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 September 30, 2019  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Operating income (loss)

     1,227,155        (228,659     (5,377     993,119       138,943  

Share-based compensation

     136,983        25,546       2,634       165,163       23,107  

Amortization of intangible assets from business acquisitions

     —          38,667       —         38,667       5,409  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income (loss)

     1,364,138        (164,446     (2,743     1,196,949       167,459  

Net income (loss)

     1,110,181        (214,063     (5,336     890,782       124,626  

Share-based compensation

     136,983        25,546       2,634       165,163       23,107  

Amortization of intangible assets from business acquisitions

     —          38,667       —         38,667       5,409  

Tax impacts

     —          (9,667     —         (9,667     (1,352
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

     1,247,164        (159,517     (2,702     1,084,945       151,790  

 

17


Momo Inc.  
Unaudited Condensed Segment Report  
(All amounts in thousands, except share and per share data)  
     First nine months  
   ended September 30, 2020  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

          

Live video service

     6,715,266       594,438       —         7,309,704       1,076,603  

Value-added service

     2,677,575       1,033,338       —         3,710,913       546,559  

Mobile marketing

     145,534       —         —         145,534       21,435  

Mobile games

     32,230       —         —         32,230       4,747  

Other services

     9,168       —         21,438       30,606       4,507  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     9,579,773       1,627,776       21,438       11,228,987       1,653,851  

Cost and expenses (v):

          

Cost of revenues

     (5,189,765     (723,466     (20,769     (5,934,000     (873,984

Research and development

     (601,271     (239,111     —         (840,382     (123,775

Sales and marketing

     (1,093,008     (1,023,151     (41     (2,116,200     (311,683

General and administrative

     (461,627     (61,128     (18,204     (540,959     (79,675
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (7,345,671     (2,046,856     (39,014     (9,431,541     (1,389,117

Other operating income

     140,202       —         190       140,392       20,678  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     2,374,304       (419,080     (17,386     1,937,838       285,412  

Interest income

     340,531       2,867       193       343,591       50,605  

Interest expense

     (59,825     —         —         (59,825     (8,811

Impairment loss on long-term investments

     (6,000     —         —         (6,000     (884
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     2,649,010       (416,213     (17,193     2,215,604       326,322  

Income tax (expenses) benefits

     (762,768     12,629       —         (750,139     (110,484
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,886,242       (403,584     (17,193     1,465,465       215,838  

Share of loss on equity method investments

     (16,203     —         —         (16,203     (2,386
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     1,870,039       (403,584     (17,193     1,449,262       213,452  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(v)

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

 

     First nine months  
     ended September 30, 2020  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

     12,345        1,862        —          14,207        2,092  

Research and development

     95,768        41,587        —          137,355        20,231  

Sales and marketing

     121,456        10,324        —          131,780        19,409  

General and administrative

     207,650        22,238        7,872        237,760        35,019  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     437,219        76,011        7,872        521,102        76,751  

 

18


Momo Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)

 

     First nine months  
     ended September 30, 2020  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Operating income (loss)

     2,374,304        (419,080     (17,386     1,937,838       285,412  

Share-based compensation

     437,219        76,011       7,872       521,102       76,751  

Amortization of intangible assets from business acquisitions

     —          115,577       —         115,577       17,023  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income (loss)

     2,811,523        (227,492     (9,514     2,574,517       379,186  

Net income (loss)

     1,870,039        (403,584     (17,193     1,449,262       213,452  

Share-based compensation

     437,219        76,011       7,872       521,102       76,751  

Amortization of intangible assets from business acquisitions

     —          115,577       —         115,577       17,023  

Tax impacts

     —          (28,894     —         (28,894     (4,255
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

     2,307,258        (240,890     (9,321     2,057,047       302,971  

 

19


Momo Inc.  
Unaudited Condensed Segment Report  
(All amounts in thousands, except share and per share data)  
     First nine months  
   ended September 30, 2019  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

          

Live video service

     9,064,654       —         —         9,064,654       1,268,192  

Value-added service

     2,026,732       890,117       —         2,916,849       408,082  

Mobile marketing

     238,831       —         —         238,831       33,414  

Mobile games

     78,033       —         —         78,033       10,917  

Other services

     15,243       —         13,581       28,824       4,032  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     11,423,493       890,117       13,581       12,327,191       1,724,637  

Cost and expenses (vi):

          

Cost of revenues

     (5,842,388     (287,940     (10,459     (6,140,787     (859,128

Research and development

     (591,678     (211,165     —         (802,843     (112,322

Sales and marketing

     (1,141,571     (817,823     (6,401     (1,965,795     (275,025

General and administrative

     (448,480     (837,824     (28,375     (1,314,679     (183,930
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (8,024,117     (2,154,752     (45,235     (10,224,104     (1,430,405

Other operating income

     180,831       —         21,366       202,197       28,288  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     3,580,207       (1,264,635     (10,288     2,305,284       322,520  

Interest income

     290,725       8,509       103       299,337       41,879  

Interest expense

     (58,421     —         —         (58,421     (8,173

Impairment loss on long-term investments

     (15,711     —         —         (15,711     (2,198
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     3,796,800       (1,256,126     (10,185     2,530,489       354,028  

Income tax (expenses) benefits

     (651,284     21,187       —         (630,097     (88,154
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     3,145,516       (1,234,939     (10,185     1,900,392       265,874  

Share of income on equity method investments

     8,056       —         —         8,056       1,127  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     3,153,572       (1,234,939     (10,185     1,908,448       267,001  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(vi)

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

 

     First nine months  
     ended September 30, 2019  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

     14,393        1,978        —          16,371        2,290  

Research and development

     76,675        52,923        —          129,598        18,131  

Sales and marketing

     129,686        13,159        —          142,845        19,985  

General and administrative

     150,586        793,649        7,725        951,960        133,184  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     371,340        861,709        7,725        1,240,774        173,590  

 

20


Momo Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)

 

     First nine months  
     ended September 30, 2019  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Operating income (loss)

     3,580,207        (1,264,635     (10,288     2,305,284       322,520  

Share-based compensation

     371,340        861,709       7,725       1,240,774       173,590  

Amortization of intangible assets from business acquisitions

     —          113,417       —         113,417       15,869  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income (loss)

     3,951,547        (289,509     (2,563     3,659,475       511,979  

Net income (loss)

     3,153,572        (1,234,939     (10,185     1,908,448       267,001  

Share-based compensation

     371,340        861,709       7,725       1,240,774       173,590  

Amortization of intangible assets from business acquisitions

     —          113,417       —         113,417       15,869  

Tax impacts

     —          (28,355     —         (28,355     (3,967
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

     3,524,912        (288,168     (2,460     3,234,284       452,493  

 

21