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 March 2022
Commission File Number: 001-36765
Hello Group Inc.
20th Floor, Block B
Tower 2, Wangjing SOHO
No.1 Futongdong Street
Chaoyang District, Beijing 100102
Peoples 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.
Hello Group Inc. | ||
By: | /s/ Jonathan Xiaosong Zhang | |
Name: | Jonathan Xiaosong Zhang | |
Title: | Chief Financial Officer |
Date: March 24, 2022
Exhibit Index
Exhibit 99.1Press Release
Exhibit 99.1
Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2021
BEIJING, CHINA, March 24, 2022 Hello Group Inc. (NASDAQ: MOMO) (Hello Group or the Company), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2021.
Fourth Quarter of 2021 Highlights
| Net revenues decreased by 3.2% year over year to RMB3,674.2 million (US$576.6 million*) in the fourth quarter of 2021. |
| Net loss attributable to Hello Group Inc. was RMB4,242.7 million (US$665.8 million) in the fourth quarter of 2021, compared to a net income of RMB651.5 million in the same period of 2020. Due to the fact that the Groups fair market value as indicated by its market capitalization was significantly below its net book value of equity, the Group determined that a triggering event had occurred for impairment. The Group conducted a detailed impairment analysis and recorded RMB4,397.0 million (US$690.0 million) as impairment loss, which represented the total value of all the goodwill and intangible assets with the exception of its operational licenses and permits on the consolidated statement of operations for the year ended December 31, 2021. |
| Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB280.9 million (US$44.1 million) in the fourth quarter of 2021, from RMB836.4 million in the same period of 2020. Non-GAAP net income attributable to Hello Group Inc. included an accrual of withholding income tax of RMB207.4 million (US$32.5 million) on undistributed earnings generated in 2021 by our wholly-foreign owned enterprise (WFOE), due to our plan to remit WFOEs earnings to its offshore parent company in the foreseeable future to fund its demand on US dollar in business operations, payments of dividends, potential investments, etc.. Without this item, non-GAAP net income attributable to Hello Group Inc. would have been RMB488.3 million (US$76.6 million) in the fourth quarter of 2021. |
| Diluted net loss per American Depositary Share (ADS) was RMB21.50 (US$3.37) in the fourth quarter of 2021, compared to a diluted net income per ADS of RMB2.98 in the same period of 2020. |
| Non-GAAP diluted net income per ADS (note 1) was RMB1.38 (US$0.22) in the fourth quarter of 2021, compared to RMB3.80 in the same period of 2020. |
| Monthly Active Users (MAU) on Momo application were 114.1 million in December 2021, compared to 113.8 million in December 2020. MAU on Tantan application were 27.0 million in December 2021. |
| Total paying users of live video service and value-added service, without double counting the overlap and including 2.5 million paying users of Tantan Limited (Tantan), were 11.4 million for the fourth quarter of 2021, compared to 12.8 million for the fourth quarter of 2020, which included 3.8 million paying users of Tantan. |
* | 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 RMB6.3726 to US$1.00, the effective noon buying rate for December 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. |
1
Full Year 2021 Highlights
| Net revenues decreased 3.0% year over year to RMB14,575.7 million (US$2,287.2 million) for the full year of 2021. |
| Net loss attributable to Hello Group Inc. was RMB2,913.7 million (US$457.2 million) for the full year of 2021, compared to a net income of RMB2,103.5 million during the same period of 2020. |
| Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,037.1 million (US$319.7 million) for the full year of 2021, compared with RMB2,896.2 million during the same period of 2020. |
| Diluted net loss per ADS was RMB14.40 (US$2.26) for the full year of 2021, compared to a diluted net income per ADS of RMB9.65 during the same period of 2020. |
| Non-GAAP diluted net income per ADS (note 1) was RMB9.56 (US$1.50) for the full year of 2021, compared with RMB13.16 during the same period of 2020. |
2021 was a busy year for us. Despite a variety of external challenges, our team was able to methodically execute our strategic priorities and delivered solid results. I am confident that well continue to navigate through the challenges ahead and capitalize on the growth opportunities down the road. commented Li Wang, CEO of Hello Group.
Fourth Quarter of 2021 Financial Results
Net revenues
Total net revenues were RMB3,674.2 million (US$576.6 million) in the fourth quarter of 2021, a decrease of 3.2% from RMB3,795.2 million in the fourth quarter of 2020.
Live video service revenues were RMB2,148.8 million (US$337.2 million) in the fourth quarter of 2021, a decrease of 7.7% from RMB2,327.9 million during the same period of 2020. The decrease was primarily attributable to the decrease in Tantans live streaming revenues due to the shift of our strategic focus. The live steaming revenues on Momo application increased 1% year over year in the fourth quarter of 2021.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,475.7 million (US$231.6 million) in the fourth quarter of 2021, an increase of 5.3% from RMB1,401.3 million during the same period of 2020. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by the introduction of innovative features and operational events in the audio and video social entertainment experiences, and the rapid growth in the revenues generated by new standalone apps. The increase was partially offset by the decrease in the value-added service revenues of Tantan, due to our strategy to lower the monetization level to improve user experience and retention.
Mobile marketing revenues were RMB25.4 million (US$4.0 million) in the fourth quarter of 2021, a decrease of 51.8% from RMB52.7 million during the same period of 2020. The decrease in mobile marketing revenues was due to our product adjustment to address new regulation requirement.
Mobile games revenues were RMB19.3 million (US$3.0 million) in the fourth quarter of 2021, an increase of 163.1% from RMB7.3 million in the fourth quarter of 2020.
2
Net revenues from the Momo segment increased from RMB3,051.3 million in the fourth quarter of 2020 to RMB3,235.6 million (US$507.7 million) in the fourth quarter of 2021, primarily due to the increase in net revenues from value-added service. Net revenues from the Tantan segment decreased from RMB740.5 million in the fourth quarter of 2020 to RMB437.2 million (US$68.6 million) in the fourth quarter of 2021, due to our strategy to lower the monetization level in order to improve user experience and retention.
Cost and expenses
Cost and expenses were RMB7,729.4 million (US$1,212.9 million) in the fourth quarter of 2021, an increase of 134.9% from RMB3,290.0 million in the fourth quarter of 2020. The increase was primarily attributable to: (a) an increase in impairment loss on goodwill and intangible assets amounting to RMB4,397.0 million (US$690.0 million); and (b) an increase in revenue sharing with broadcasters related to Momos core live video service, and virtual gift recipients for our virtual gift service. These increases were partially offset by a decrease in revenue sharing with broadcasters related to Tantans live video service, and a decrease in personnel related costs including share-based compensation expenses resulting from the decreased number of employees and the decreased fair value of the share options granted during the period.
Non-GAAP cost and expenses (note 1) were RMB3,205.8 million (US$503.1 million) in the fourth quarter of 2021, an increase of 3.6% from RMB3,095.9 million during the same period of 2020.
Other operating income
Other operating income was RMB38.6 million (US$6.1 million) in the fourth quarter of 2021, a decrease from RMB88.4 million during the fourth quarter of 2020. The other operating income mainly consisted of government incentives.
Income (loss) from operations
Loss from operations was RMB4,016.6 million (US$630.3 million) in the fourth quarter of 2021, compared to an income from operations of RMB593.6 million during the same period of 2020. Income from operations of the Momo segment was RMB549.3 million (US$86.2 million) in the fourth quarter of 2021, which decreased from RMB650.9 million in the fourth quarter of 2020. Loss from operations of the Tantan segment was RMB162.5 million (US$25.5 million) in the fourth quarter of 2021, compared to loss from operations of RMB53.1 million in the fourth quarter of 2020.
Non-GAAP income from operations (note 1) was RMB507.0 million (US$79.6 million) in the fourth quarter of 2021, compared to RMB787.7 million during the same period of 2020. Non-GAAP income from operations of the Momo segment was RMB658.4 million (US$103.3 million) in the fourth quarter of 2021, which decreased from RMB791.8 million in the fourth quarter of 2020. Non-GAAP loss from operations of the Tantan segment was RMB145.0 million (US$22.8 million) in the fourth quarter of 2021, compared to non-GAAP loss from operations of RMB2.3 million in the fourth quarter of 2020.
Income tax expenses
Income tax expenses were RMB296.5 million (US$46.5 million) in the fourth quarter of 2021, compared to RMB5.5 million in the fourth quarter of 2020. The increase was primarily due to the following reasons: (a) in the fourth quarter of 2021, we accrued withholding income tax of RMB207.4 million (US$32.5 million) on undistributed earnings generated in 2021 by our WFOE, because we plan to remit WFOEs earnings to its offshore parent company in the foreseeable future to fund its demand on US dollar in business operations, payments of dividends, potential investments, etc.; (b) in the fourth quarter of 2020, we reversed the over-accrued income tax expenses of RMB113.4 million, due to the preferential tax rate adjustment from 12.5% to 10.0% for WFOE, resulting from the fact that the application of the Key Software Enterprise for the fiscal year of 2019 was approved in 2020.
3
Net income (loss)
Net loss was RMB4,244.0 million (US$666.0 million) in the fourth quarter of 2021, compared to a net income of RMB651.1 million during the same period of 2020. Net income from the Momo segment was RMB306.7 million (US$48.1 million) in the fourth quarter of 2021, which decreased from RMB705.8 million in the fourth quarter of 2020. Net loss from the Tantan segment was RMB147.3 million (US$23.1 million) in the fourth quarter of 2021, compared to net loss of RMB50.5 million in the fourth quarter of 2020.
Non-GAAP net income (note 1) was RMB279.6 million (US$43.9 million) in the fourth quarter of 2021, compared to RMB836.1 million during the same period of 2020. Non-GAAP net income from the Momo segment was RMB415.8 million (US$65.3 million) in the fourth quarter of 2021, which decreased from RMB846.7 million in the fourth quarter of 2020. Non-GAAP net loss of the Tantan segment was RMB129.9 million (US$20.4 million) in the fourth quarter of 2021, compared to non-GAAP net loss of RMB8.8 million in the fourth quarter of 2020.
Net income (loss) attributable to Hello Group Inc.
Net loss attributable to Hello Group Inc. was RMB4,242.7 million (US$665.8 million) in the fourth quarter of 2021, compared to a net income of RMB651.5 million during the same period of 2020.
Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB280.9 million (US$44.1 million) in the fourth quarter of 2021, compared to RMB836.4 million during the same period of 2020.
Net income (loss) per ADS
Diluted net loss per ADS was RMB21.50 (US$3.37) in the fourth quarter of 2021, compared to a diluted net income per ADS of RMB2.98 in the fourth quarter of 2020.
Non-GAAP diluted net income per ADS (note 1) was RMB1.38 (US$0.22) in the fourth quarter of 2021, compared to RMB3.80 in the fourth quarter of 2020.
Cash and cash flow
As of December 31, 2021, the Companys cash, cash equivalents, short-term deposits, long-term deposits and long-term restricted cash totaled RMB15,707.0 million (US$2,464.8 million), compared to RMB16,482.3 million as of December 31, 2020. Net cash provided by operating activities in the fourth quarter of 2021 was RMB665.5 million (US$104.4 million), compared to RMB1,039.1 million in the fourth quarter of 2020.
Full Year 2021 Financial Results
Net revenues for the full year of 2021 were RMB14,575.7 million (US$2,287.2 million), a decrease of 3.0% from RMB15,024.2 million in the same period of 2020.
4
Net loss attributable to Hello Group Inc. was RMB2,913.7 million (US$457.2 million) for the full year of 2021, compared to a net income of RMB2,103.5 million during the same period of 2020.
Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,037.1 million (US$319.7 million) for the full year of 2021, compared to RMB2,896.2 million during the same period of 2020.
Diluted net loss per ADS was RMB14.40 (US$2.26) during the full year of 2021, compared to a diluted net income per ADS of RMB9.65 in the same period of 2020.
Non-GAAP diluted net income per ADS (note 1) was RMB9.56 (US$1.50) during the full year of 2021, compared to RMB13.16 in the same period of 2020.
Net cash provided by operating activities was RMB1,559.2 million (US$244.7 million) during the full year of 2021, compared to RMB3,080.9 million in the same period of 2020.
Recent Development
Declaration of a special cash dividend
Hello Groups 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 29, 2022 to shareholders of record at the close of business on April 13, 2022. The ex-dividend date will be April 12, 2022. The aggregate amount of cash dividends to be paid is approximately US$127 million, which will be funded by surplus cash on the Companys balance sheet.
CFO Transition
The Company today announced that Jonathon Zhang, Chief Financial Officer, will retire effective June 30, 2022. Cathy Hui Peng, Senior Vice President of corporate finance, will assume the role of chief financial officer following Mr. Zhangs retirement and Mr. Zhang will remain with the Company as a senior advisor.
My tenure with Hello Group was such a gratifying journey. I consider the past 8 years with the Company as the most exciting part of my long career life. It has been an absolute privilege to work with the team and have built a great business. said Jonathon Zhang. Im also pleased to pass the baton to Cathy. A long time deputy of mine, she is the right person to lead the team to continue their success.
Jonathon has made tremendous contribution to the Company over the past 8 years. He has been playing an indispensable role in transforming the company and guiding the team to enable our success. On behalf of the company, I want to thank Jonathon for his leadership and dedication and wish him much happiness in his next chapter. said Li Wang, Chief Executive Officer of the Company. At the same time, we are delighted that Cathy will transition into the CFO role. Her deep capital market experience, demonstrated financial acumen and leadership skills will serve her well in her new role.
5
Prior to this expanded role, Ms. Peng serves as the Companys Senior Vice President of corporate finance. In this role she is responsible for the companys financial planning and analysis, strategic investment and acquisitions, as well as corporate strategy and investor communications. Ms. Peng joined the Company in 2015 as vice president of investor relations. Since then, she has played a key role in driving the companys success in various capital market transactions. From 2007 to 2015, Ms. Peng worked for SINA Corporation as director of investor relations and a corporate treasurer. Prior to that, she worked for several public and private companies in TMT space where she served various roles in accounting, financial planning and analysis, M&As and corporate communications. Ms. Peng started her career in auditing at Ernst &Young from 2001. Ms. Peng received her bachelor degree in Economics from Peking University in 2001.
Business Outlook
For the first quarter of 2022, the Company expects total net revenues to be between RMB3.1 billion to RMB3.2 billion, representing a decrease of 10.7% to 7.8% year-over-year. This forecast reflects the Companys current and preliminary views on the market and operational conditions, which are subject to change.
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation, impairment loss on goodwill and intangible assets, amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP cost and operating expenses, income (loss) from operations, net income (loss), net income (loss) attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation, impairment loss on goodwill and intangible assets, amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions. A limitation of using these non-GAAP financial measures is that share-based compensation, impairment loss on goodwill and intangible assets, amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions have been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.
6
Conference Call
Hello Groups management will host an earnings conference call on Thursday, March 24, 2022, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 24, 2022).
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/1244109
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, 2022. The dial-in details for the replay are as follows:
International: +61-2- 9003- 4211
U.S. Toll Free: +1-855- 4525-696
Passcode: 1244109
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Companys website at http://ir.immomo.com.
About Hello Group Inc.
We are a leading player in Chinas online social and entertainment space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. It is designed to help its users find and establish romantic connections as well as meet interesting people. We also operate a number of other applications to serve different social and entertainment demands from our users.
For investor and media inquiries, please contact:
Hello Group Inc.
Investor Relations
Phone: +86-10-5731-0538
Email: ir@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
7
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 2022, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the fourth quarter of 2021 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2022 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the impact of the COVID-19 pandemic on the Companys business operations and the economy in China, the market price of the Companys stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Companys 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.
8
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Operations
(All amounts in thousands, except share and per share data)
Three months Ended December 31 |
Year Ended December 31 |
|||||||||||||||||||||||
2020 RMB |
2021 RMB |
2021 US$ |
2020 RMB |
2021 RMB |
2021 US$ |
|||||||||||||||||||
Net revenues: |
||||||||||||||||||||||||
Live video service |
2,327,875 | 2,148,785 | 337,191 | 9,637,579 | 8,378,945 | 1,314,839 | ||||||||||||||||||
Value-added service |
1,401,269 | 1,475,733 | 231,575 | 5,112,182 | 5,971,792 | 937,104 | ||||||||||||||||||
Mobile marketing |
52,663 | 25,369 | 3,981 | 198,197 | 159,010 | 24,952 | ||||||||||||||||||
Mobile games |
7,334 | 19,294 | 3,028 | 39,564 | 47,712 | 7,487 | ||||||||||||||||||
Other services |
6,060 | 5,048 | 792 | 36,666 | 18,260 | 2,866 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues |
3,795,201 | 3,674,229 | 576,567 | 15,024,188 | 14,575,719 | 2,287,248 | ||||||||||||||||||
Cost and expenses: |
||||||||||||||||||||||||
Cost of revenues |
(2,042,781 | ) | (2,191,520 | ) | (343,897 | ) | (7,976,781 | ) | (8,383,431 | ) | (1,315,543 | ) | ||||||||||||
Research and development |
(327,295 | ) | (316,024 | ) | (49,591 | ) | (1,167,677 | ) | (1,131,781 | ) | (177,601 | ) | ||||||||||||
Sales and marketing |
(697,722 | ) | (659,604 | ) | (103,506 | ) | (2,813,922 | ) | (2,604,309 | ) | (408,673 | ) | ||||||||||||
General and administrative |
(222,191 | ) | (165,257 | ) | (25,932 | ) | (763,150 | ) | (624,700 | ) | (98,029 | ) | ||||||||||||
Impairment loss on goodwill and intangible assets |
| (4,397,012 | ) | (689,987 | ) | | (4,397,012 | ) | (689,987 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total cost and expenses |
(3,289,989 | ) | (7,729,417 | ) | (1,212,913 | ) | (12,721,530 | ) | (17,141,233 | ) | (2,689,833 | ) | ||||||||||||
Other operating income |
88,385 | 38,558 | 6,051 | 228,777 | 175,947 | 27,610 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) from operations |
593,597 | (4,016,630 | ) | (630,295 | ) | 2,531,435 | (2,389,567 | ) | (374,975 | ) | ||||||||||||||
Interest income |
100,880 | 99,573 | 15,625 | 444,471 | 384,279 | 60,302 | ||||||||||||||||||
Interest expense |
(19,047 | ) | (18,444 | ) | (2,894 | ) | (78,872 | ) | (73,776 | ) | (11,577 | ) | ||||||||||||
Other gain or loss, net |
7,500 | 2,000 | 314 | 1,500 | (16,000 | ) | (2,511 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) before income tax and share of income on equity method investments |
682,930 | (3,933,501 | ) | (617,250 | ) | 2,898,534 | (2,095,064 | ) | (328,761 | ) | ||||||||||||||
Income tax expenses |
(5,481 | ) | (296,491 | ) | (46,526 | ) | (755,620 | ) | (822,556 | ) | (129,077 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) before share of income on equity method investments |
677,449 | (4,229,992 | ) | (663,776 | ) | 2,142,914 | (2,917,620 | ) | (457,838 | ) | ||||||||||||||
Share of loss on equity method investments |
(26,319 | ) | (14,045 | ) | (2,204 | ) | (42,522 | ) | (8,084 | ) | (1,269 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) |
651,130 | (4,244,037 | ) | (665,980 | ) | 2,100,392 | (2,925,704 | ) | (459,107 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Less: net loss attributable to non-controlling interest |
(320 | ) | (1,319 | ) | (207 | ) | (3,092 | ) | (11,996 | ) | (1,882 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) attributable to the shareholders of Hello Group Inc. |
651,450 | (4,242,718 | ) | (665,773 | ) | 2,103,484 | (2,913,708 | ) | (457,225 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) per share attributable to ordinary shareholders |
||||||||||||||||||||||||
Basic |
1.57 | (10.75 | ) | (1.69 | ) | 5.05 | (7.20 | ) | (1.13 | ) | ||||||||||||||
Diluted |
1.49 | (10.75 | ) | (1.69 | ) | 4.83 | (7.20 | ) | (1.13 | ) | ||||||||||||||
Weighted average shares used in calculating net income (loss) per ordinary share |
||||||||||||||||||||||||
Basic |
414,839,350 | 394,694,993 | 394,694,993 | 416,914,898 | 404,701,910 | 404,701,910 | ||||||||||||||||||
Diluted |
449,683,596 | 394,694,993 | 394,694,993 | 452,081,642 | 404,701,910 | 404,701,910 |
9
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in thousands, except share and per share data)
Three months | Year | |||||||||||||||||||||||
Ended December 31 | Ended December 31 | |||||||||||||||||||||||
2020 | 2021 | 2021 | 2020 | 2021 | 2021 | |||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Net income (loss) |
651,130 | (4,244,037 | ) | (665,980 | ) | 2,100,392 | (2,925,704 | ) | (459,107 | ) | ||||||||||||||
Other comprehensive loss, net of tax: |
||||||||||||||||||||||||
Foreign currency translation adjustment |
(69,010 | ) | (7,331 | ) | (1,150 | ) | (141,677 | ) | (39,161 | ) | (6,145 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Comprehensive income (loss) |
582,120 | (4,251,368 | ) | (667,130 | ) | 1,958,715 | (2,964,865 | ) | (465,252 | ) | ||||||||||||||
Less: comprehensive loss attributed to the non-controlling interest |
(9,059 | ) | (3,280 | ) | (515 | ) | (26,004 | ) | (16,603 | ) | (2,605 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Comprehensive income (loss) attributable to Hello Group Inc. |
591,179 | (4,248,088 | ) | (666,615 | ) | 1,984,719 | (2,948,262 | ) | (462,647 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
10
Hello Group Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except share and per share data)
December 31 | December 31 | December 31 | ||||||||||
2020 | 2021 | 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
3,363,942 | 5,570,563 | 874,143 | |||||||||
Short-term deposits |
7,566,250 | 2,860,000 | 448,796 | |||||||||
Restricted cash |
2,130 | | | |||||||||
Accounts receivable, net of allowance for doubtful accounts of RMB15,390 and RMB15,127 as of December 31, 2020 and 2021, respectively |
200,831 | 205,225 | 32,204 | |||||||||
Prepaid expenses and other current assets |
613,696 | 775,072 | 121,626 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets |
11,746,849 | 9,410,860 | 1,476,769 | |||||||||
Long-term deposits |
5,550,000 | 7,200,000 | 1,129,837 | |||||||||
Long-term restricted cash |
| 76,471 | 12,000 | |||||||||
Right-of-use assets, net |
278,175 | 257,934 | 40,475 | |||||||||
Property and equipment, net |
265,765 | 180,664 | 28,350 | |||||||||
Intangible assets, net |
687,211 | 27,320 | 4,287 | |||||||||
Rental deposits |
21,794 | 19,204 | 3,014 | |||||||||
Long-term investments |
454,996 | 820,006 | 128,677 | |||||||||
Other non-current assets |
94,868 | 83,930 | 13,170 | |||||||||
Deferred tax assets |
32,495 | 34,849 | 5,469 | |||||||||
Goodwill |
4,088,403 | | | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
23,220,556 | 18,111,238 | 2,842,048 | |||||||||
|
|
|
|
|
|
|||||||
Liabilities and equity |
||||||||||||
Current liabilities |
||||||||||||
Accounts payable |
699,394 | 726,207 | 113,957 | |||||||||
Deferred revenue |
511,617 | 539,967 | 84,733 | |||||||||
Accrued expenses and other current liabilities |
854,835 | 911,050 | 142,964 | |||||||||
Amount due to related parties |
19,462 | 5,016 | 787 | |||||||||
Lease liabilities due within one year |
132,793 | 162,950 | 25,570 | |||||||||
Income tax payable |
236,490 | 125,773 | 19,737 | |||||||||
Deferred consideration in connection with business acquisitions |
62,149 | 44,802 | 7,030 | |||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
2,516,740 | 2,515,765 | 394,778 | |||||||||
Deferred tax liabilities |
171,803 | 213,384 | 33,485 | |||||||||
Convertible senior notes |
4,658,966 | 4,565,292 | 716,394 | |||||||||
Share-based compensation liability |
875,616 | | | |||||||||
Lease liabilities |
136,436 | 103,105 | 16,179 | |||||||||
Other non-current liabilities |
25,666 | 128,095 | 20,101 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
8,385,227 | 7,525,641 | 1,180,937 | |||||||||
Shareholders equity (i) |
14,835,329 | 10,585,597 | 1,661,111 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities and shareholders equity |
23,220,556 | 18,111,238 | 2,842,048 | |||||||||
|
|
|
|
|
|
(i): | As of December 31, 2021, the number of ordinary shares outstanding was 395,200,884. |
11
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in thousands, except share and per share data)
Three months Ended December 31 |
Year Ended December 31 |
|||||||||||||||||||||||
2020 RMB |
2021 RMB |
2021 US$ |
2020 RMB |
2021 RMB |
2021 US$ |
|||||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||||||
Net income (loss) |
651,130 | (4,244,037 | ) | (665,980 | ) | 2,100,392 | (2,925,704 | ) | (459,107 | ) | ||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||||||||||||||||||
Depreciation of property and equipment |
55,375 | 34,226 | 5,371 | 208,990 | 155,537 | 24,407 | ||||||||||||||||||
Amortization of intangible assets |
37,741 | 1,279 | 201 | 157,258 | 109,062 | 17,114 | ||||||||||||||||||
Share-based compensation |
157,584 | 126,576 | 19,862 | 678,686 | 475,771 | 74,658 | ||||||||||||||||||
Share of loss on equity method investments |
26,319 | 14,045 | 2,204 | 42,522 | 8,084 | 1,269 | ||||||||||||||||||
Impairment loss on goodwill and intangible assets |
| 4,397,012 | 689,987 | | 4,397,012 | 689,987 | ||||||||||||||||||
Gain or loss on long-term investments |
(7,500 | ) | (2,000 | ) | (314 | ) | (1,500 | ) | 16,000 | 2,511 | ||||||||||||||
Gain on subsidiary deconsolidation |
| | | (6,676 | ) | | | |||||||||||||||||
Gain on disposal of subsidiaries |
| | | | (15,526 | ) | (2,436 | ) | ||||||||||||||||
Loss or gain on disposal of property and equipment |
3 | (36 | ) | (6 | ) | (282 | ) | 1,236 | 194 | |||||||||||||||
Provision of losses (income) on receivable and other assets |
19,663 | (505 | ) | (79 | ) | 46,075 | (263 | ) | (41 | ) | ||||||||||||||
Cash received on investment income distribution |
| | | 1,153 | | | ||||||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||||||||||
Accounts receivable |
34,533 | 13,984 | 2,194 | 52,247 | (10,374 | ) | (1,628 | ) | ||||||||||||||||
Prepaid expenses and other current assets |
104,636 | 52,504 | 8,239 | (59,117 | ) | (151,162 | ) | (23,721 | ) | |||||||||||||||
Amount due from a related party |
| | | 4,382 | | | ||||||||||||||||||
Rental deposits |
(4,372 | ) | 1,171 | 184 | (4,265 | ) | (343 | ) | (54 | ) | ||||||||||||||
Deferred tax assets |
1,535 | (338 | ) | (53 | ) | 4,569 | (2,354 | ) | (369 | ) | ||||||||||||||
Other non-current assets |
(166,665 | ) | 42,125 | 6,610 | (138,484 | ) | 34,075 | 5,347 | ||||||||||||||||
Accounts payable |
66,948 | 11,053 | 1,734 | (11,716 | ) | 30,475 | 4,782 | |||||||||||||||||
Income tax payable |
(95,341 | ) | (39,285 | ) | (6,165 | ) | 82,514 | (110,716 | ) | (17,374 | ) | |||||||||||||
Deferred revenue |
24,740 | 9,652 | 1,515 | 8,910 | 35,106 | 5,509 | ||||||||||||||||||
Accrued expenses and other current liabilities |
41,048 | 99,497 | 15,613 | (120,363 | ) | 60,668 | 9,520 | |||||||||||||||||
Amount due to related parties |
(12,406 | ) | (9,751 | ) | (1,530 | ) | (10,144 | ) | (14,447 | ) | (2,267 | ) | ||||||||||||
Deferred tax liability |
(9,435 | ) | 207,114 | 32,501 | (39,315 | ) | 180,173 | 28,273 | ||||||||||||||||
Share-based compensation liability |
| | | | (678,153 | ) | (106,417 | ) | ||||||||||||||||
Other non-current liabilities |
113,553 | (48,777 | ) | (7,654 | ) | 85,053 | (34,959 | ) | (5,486 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net cash provided by operating activities |
1,039,089 | 665,509 | 104,434 | 3,080,889 | 1,559,198 | 244,671 | ||||||||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||||||
Purchase of property and equipment |
(16,095 | ) | (19,201 | ) | (3,013 | ) | (124,143 | ) | (95,323 | ) | (14,958 | ) | ||||||||||||
Payment for long-term investments |
(9,000 | ) | (115,052 | ) | (18,054 | ) | (13,500 | ) | (415,052 | ) | (65,131 | ) | ||||||||||||
Purchase of short-term deposits |
(3,654,500 | ) | (400,000 | ) | (62,769 | ) | (14,949,665 | ) | (4,976,688 | ) | (780,951 | ) | ||||||||||||
Cash received on maturity of short-term deposits |
3,954,500 | 3,550,000 | 557,072 | 19,577,159 | 9,667,570 | 1,517,053 | ||||||||||||||||||
Payment for short-term investments |
| | | (10,000 | ) | | | |||||||||||||||||
Cash received from sales of short-term investment |
| | | 10,000 | | | ||||||||||||||||||
Cash received on investment income distribution |
| | | | 5,610 | 880 | ||||||||||||||||||
Cash of disposed subsidiaries |
| | | | (8,750 | ) | (1,373 | ) | ||||||||||||||||
Cash received from sales of long term investment |
12,000 | 20,000 | 3,138 | 12,000 | 20,000 | 3,138 | ||||||||||||||||||
Purchase of long-term deposits |
(900,000 | ) | (1,600,000 | ) | (251,075 | ) | (5,250,000 | ) | (1,850,000 | ) | (290,305 | ) | ||||||||||||
Cash received on maturity of long term deposits |
| 200,000 | 31,384 | | 200,000 | 31,384 | ||||||||||||||||||
Other investing activities |
2 | 569 | 89 | (317 | ) | 2,975 | 467 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net cash (used in) provided by investing activities |
(613,093 | ) | 1,636,316 | 256,772 | (748,466 | ) | 2,550,342 | 400,204 | ||||||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||||||
Deferred payment for business acquisition |
| (50 | ) | (8 | ) | (18,355 | ) | (12,957 | ) | (2,033 | ) | |||||||||||||
Proceeds from exercise of share options |
171 | 5 | 1 | 226 | 776 | 122 | ||||||||||||||||||
Repurchase of ordinary shares |
(197,799 | ) | | | (330,206 | ) | (862,865 | ) | (135,402 | ) | ||||||||||||||
Repurchase of subsidiarys share options |
(932 | ) | (5,070 | ) | (796 | ) | (25,832 | ) | (59,120 | ) | (9,277 | ) | ||||||||||||
Dividends payment |
| | | (1,123,983 | ) | (852,743 | ) | (133,814 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net cash used in financing activities |
(198,560 | ) | (5,115 | ) | (803 | ) | (1,498,150 | ) | (1,786,909 | ) | (280,404 | ) | ||||||||||||
Effect of exchange rate changes |
(37,770 | ) | (12,972 | ) | (2,035 | ) | (80,944 | ) | (41,669 | ) | (6,538 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase in cash and cash equivalents |
189,666 | 2,283,738 | 358,368 | 753,329 | 2,280,962 | 357,933 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of period |
3,176,406 | 3,363,296 | 527,775 | 2,612,743 | 3,366,072 | 528,210 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at the end of period |
3,366,072 | 5,647,034 | 886,143 | 3,366,072 | 5,647,034 | 886,143 |
12
Hello Group Inc.
Reconciliation of Non-GAAP financial measures to comparable GAAP measures
(All amounts in thousands, except per share data)
1. | Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures. |
Three months | Three months | Three months | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ended December 31, 2020 | Ended December 31, 2021 | Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP RMB |
Amortization of intangible assets from business acquisitions RMB |
Share-based compensation RMB |
Tax impacts (ii) RMB |
Non-GAAP RMB |
GAAP RMB |
Impairment loss on goodwill and intangible assets RMB |
Share-based compensation RMB |
Non-GAAP RMB |
GAAP US$ |
Impairment loss on goodwill and intangible assets US$ |
Share-based compensation US$ |
Non-GAAP US$ |
||||||||||||||||||||||||||||||||||||||||
Cost of revenues |
(2,042,781 | ) | 17,694 | 4,242 | | (2,020,845 | ) | (2,191,520 | ) | | 3,393 | (2,188,127 | ) | (343,897 | ) | | 532 | (343,365 | ) | |||||||||||||||||||||||||||||||||
Research and development |
(327,295 | ) | 2,247 | 38,515 | | (286,533 | ) | (316,024 | ) | | 36,303 | (279,721 | ) | (49,591 | ) | | 5,697 | (43,894 | ) | |||||||||||||||||||||||||||||||||
Sales and marketing |
(697,722 | ) | 16,547 | 27,122 | | (654,053 | ) | (659,604 | ) | | 11,024 | (648,580 | ) | (103,506 | ) | | 1,730 | (101,776 | ) | |||||||||||||||||||||||||||||||||
General and administrative |
(222,191 | ) | | 87,705 | | (134,486 | ) | (165,257 | ) | | 75,856 | (89,401 | ) | (25,932 | ) | | 11,903 | (14,029 | ) | |||||||||||||||||||||||||||||||||
Impairment loss on goodwill and intangible assets |
| | | | | (4,397,012 | ) | 4,397,012 | | | (689,987 | ) | 689,987 | | | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Cost and operating expenses |
(3,289,989 | ) | 36,488 | 157,584 | | (3,095,917 | ) | (7,729,417 | ) | 4,397,012 | 126,576 | (3,205,829 | ) | (1,212,913 | ) | 689,987 | 19,862 | (503,064 | ) | |||||||||||||||||||||||||||||||||
Income (loss) from operations |
593,597 | 36,488 | 157,584 | | 787,669 | (4,016,630 | ) | 4,397,012 | 126,576 | 506,958 | (630,295 | ) | 689,987 | 19,862 | 79,554 | |||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Hello Group Inc. |
651,450 | 36,488 | 157,584 | (9,122 | ) | 836,400 | (4,242,718 | ) | 4,397,012 | 126,576 | 280,870 | (665,773 | ) | 689,987 | 19,862 | 44,076 |
13
Hello Group Inc.
Reconciliation of Non-GAAP financial measures to comparable GAAP measures
(All amounts in thousands, except per share data)
1. | Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures-continued. |
Year | Year | Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ended December 31, 2020 | Ended December 31, 2021 | Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP RMB |
Amortization of intangible assets from business acquisitions RMB |
Share- based compensation RMB |
Tax impacts (ii) RMB |
Non-GAAP RMB |
GAAP RMB |
Impairment loss on goodwill and intangible assets RMB |
Amortization of intangible assets from business acquisitions RMB |
Share-based compensation RMB |
Tax impacts (ii) RMB |
Non-GAAP RMB |
GAAP US$ |
Impairment loss on goodwill and intangible assets US$ |
Amortization of intangible assets from business acquisitions US$ |
Share-based compensation US$ |
Tax impacts (ii) US$ |
Non-GAAP US$ |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues |
(7,976,781 | ) | 73,740 | 18,449 | | (7,884,592 | ) | (8,383,431 | ) | | 51,853 | 17,941 | | (8,313,637 | ) | (1,315,543 | ) | | 8,137 | 2,815 | | (1,304,591 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Research and development |
(1,167,677 | ) | 9,365 | 175,870 | | (982,442 | ) | (1,131,781 | ) | | 3,660 | 139,571 | | (988,550 | ) | (177,601 | ) | | 574 | 21,902 | | (155,125 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing |
(2,813,922 | ) | 68,960 | 158,902 | | (2,586,060 | ) | (2,604,309 | ) | | 48,491 | 70,821 | | (2,484,997 | ) | (408,673 | ) | | 7,609 | 11,113 | | (389,951 | ) | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative |
(763,150 | ) | | 325,465 | | (437,685 | ) | (624,700 | ) | | | 247,438 | | (377,262 | ) | (98,029 | ) | | | 38,828 | | (59,201 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Impairment loss on goodwill and intangible assets |
| | | | | (4,397,012 | ) | 4,397,012 | | | | | (689,987 | ) | 689,987 | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
Cost and operating expenses |
(12,721,530 | ) | 152,065 | 678,686 | | (11,890,779 | ) | (17,141,233 | ) | 4,397,012 | 104,004 | 475,771 | | (12,164,446 | ) | (2,689,833 | ) | 689,987 | 16,320 | 74,658 | | (1,908,868 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations |
2,531,435 | 152,065 | 678,686 | | 3,362,186 | (2,389,567 | ) | 4,397,012 | 104,004 | 475,771 | | 2,587,220 | (374,975 | ) | 689,987 | 16,320 | 74,658 | | 405,990 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Hello Group Inc. |
2,103,484 | 152,065 | 678,686 | (38,016 | ) | 2,896,219 | (2,913,708 | ) | 4,397,012 | 104,004 | 475,771 | (26,002 | ) | 2,037,077 | (457,225 | ) | 689,987 | 16,320 | 74,658 | (4,080 | ) | 319,660 |
(ii) | Includes tax impacts related to the amortization of intangible assets from business acquisition. |
14
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Three months Ended December 31, 2021 |
||||||||||||||||||||||||
Momo | Tantan | QOOL | Unallocated1 | Total | Total | |||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
Net revenues: |
| |||||||||||||||||||||||
Live video service |
1,947,958 | 200,827 | | | 2,148,785 | 337,191 | ||||||||||||||||||
Value-added service |
1,239,351 | 236,382 | | | 1,475,733 | 231,575 | ||||||||||||||||||
Mobile marketing |
25,369 | | | | 25,369 | 3,981 | ||||||||||||||||||
Mobile games |
19,294 | | | | 19,294 | 3,028 | ||||||||||||||||||
Other services |
3,667 | | 1,381 | | 5,048 | 792 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues |
3,235,639 | 437,209 | 1,381 | | 3,674,229 | 576,567 | ||||||||||||||||||
Cost and expenses (iii): |
||||||||||||||||||||||||
Cost of revenues |
(1,962,718 | ) | (228,290 | ) | (512 | ) | | (2,191,520 | ) | (343,897 | ) | |||||||||||||
Research and development |
(233,512 | ) | (82,512 | ) | | | (316,024 | ) | (49,591 | ) | ||||||||||||||
Sales and marketing |
(377,672 | ) | (281,534 | ) | (398 | ) | | (659,604 | ) | (103,506 | ) | |||||||||||||
General and administrative |
(147,957 | ) | (10,362 | ) | (6,938 | ) | | (165,257 | ) | (25,932 | ) | |||||||||||||
Impairment loss on goodwill and intangible assets |
| | | (4,397,012 | ) | (4,397,012 | ) | (689,987 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total cost and expenses |
(2,721,859 | ) | (602,698 | ) | (7,848 | ) | (4,397,012 | ) | (7,729,417 | ) | (1,212,913 | ) | ||||||||||||
Other operating income |
35,532 | 3,023 | 3 | | 38,558 | 6,051 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) from operations |
549,312 | (162,466 | ) | (6,464 | ) | (4,397,012 | ) | (4,016,630 | ) | (630,295 | ) | |||||||||||||
Interest income |
99,399 | 139 | 35 | | 99,573 | 15,625 | ||||||||||||||||||
Interest expense |
(18,444 | ) | | | | (18,444 | ) | (2,894 | ) | |||||||||||||||
Other gain or loss, net |
2,000 | | | | 2,000 | 314 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) before income tax and share of income on equity method investments |
632,267 | (162,327 | ) | (6,429 | ) | (4,397,012 | ) | (3,933,501 | ) | (617,250 | ) | |||||||||||||
Income tax (expenses) benefits |
(311,479 | ) | 14,988 | | | (296,491 | ) | (46,526 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) before share of income on equity method investments |
320,788 | (147,339 | ) | (6,429 | ) | (4,397,012 | ) | (4,229,992 | ) | (663,776 | ) | |||||||||||||
Share of loss on equity method investments |
(14,045 | ) | | | | (14,045 | ) | (2,204 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) |
306,743 | (147,339 | ) | (6,429 | ) | (4,397,012 | ) | (4,244,037 | ) | (665,980 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(iii) | Share-based compensation was allocated in cost of revenues and operating expenses as follows: |
Three months Ended December 31, 2021 |
||||||||||||||||||||
Momo RMB |
Tantan RMB |
QOOL RMB |
Total RMB |
Total US$ |
||||||||||||||||
Cost of revenues |
2,729 | 664 | | 3,393 | 532 | |||||||||||||||
Research and development |
19,569 | 16,734 | | 36,303 | 5,697 | |||||||||||||||
Sales and marketing |
10,997 | 27 | | 11,024 | 1,730 | |||||||||||||||
General and administrative |
75,808 | 48 | | 75,856 | 11,903 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total cost and expenses |
109,103 | 17,473 | | 126,576 | 19,862 |
1 | The impairment loss on goodwill and intangible assets is presented as an unallocated item in the segment information because our management does not consider this as part of the segment operating performance measure. |
15
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Three months Ended December 31, 2021 |
||||||||||||||||||||||||
Momo RMB |
Tantan RMB |
QOOL RMB |
Unallocated RMB |
Total RMB |
Total US$ |
|||||||||||||||||||
Income (loss) from operations |
549,312 | (162,466 | ) | (6,464 | ) | (4,397,012 | ) | (4,016,630 | ) | (630,295 | ) | |||||||||||||
Share-based compensation |
109,103 | 17,473 | | | 126,576 | 19,862 | ||||||||||||||||||
Impairment loss on goodwill and intangible assets |
| | | 4,397,012 | 4,397,012 | 689,987 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-GAAP income (loss) from operations |
658,415 | (144,993 | ) | (6,464 | ) | | 506,958 | 79,554 | ||||||||||||||||
Net income (loss) |
306,743 | (147,339 | ) | (6,429 | ) | (4,397,012 | ) | (4,244,037 | ) | (665,980 | ) | |||||||||||||
Share-based compensation |
109,103 | 17,473 | | | 126,576 | 19,862 | ||||||||||||||||||
Impairment loss on goodwill and intangible assets |
| | | 4,397,012 | 4,397,012 | 689,987 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-GAAP net income (loss) |
415,846 | (129,866 | ) | (6,429 | ) | | 279,551 | 43,869 |
16
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Three months Ended December 31, 2020 |
||||||||||||||||||||
Momo RMB |
Tantan RMB |
QOOL RMB |
Total RMB |
Total 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 (iv): |
||||||||||||||||||||
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 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(iv) | Share-based compensation was allocated in cost of revenues and operating expenses as follows: |
Three months Ended December 31, 2020 |
||||||||||||||||||||
Momo RMB |
Tantan RMB |
QOOL RMB |
Total RMB |
Total 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 |
2 | All translations from RMB to U.S. dollars are made at a rate of RMB6.525 to US$1.00, the effective noon buying rate for December 31, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board. |
17
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Three months Ended December 31, 2020 |
||||||||||||||||||||
Momo RMB |
Tantan RMB |
QOOL RMB |
Total RMB |
Total US$ |
||||||||||||||||
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 |
18
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Year Ended December 31, 2021 |
||||||||||||||||||||||||
Momo RMB |
Tantan RMB |
QOOL RMB |
Unallocated RMB |
Total RMB |
Total US$ |
|||||||||||||||||||
Net revenues: |
| |||||||||||||||||||||||
Live video service |
7,475,809 | 903,136 | | | 8,378,945 | 1,314,839 | ||||||||||||||||||
Value-added service |
4,845,744 | 1,126,048 | | | 5,971,792 | 937,104 | ||||||||||||||||||
Mobile marketing |
159,010 | | | | 159,010 | 24,952 | ||||||||||||||||||
Mobile games |
47,712 | | | | 47,712 | 7,487 | ||||||||||||||||||
Other services |
12,930 | | 5,330 | | 18,260 | 2,866 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues |
12,541,205 | 2,029,184 | 5,330 | | 14,575,719 | 2,287,248 | ||||||||||||||||||
Cost and expenses (v): |
||||||||||||||||||||||||
Cost of revenues |
(7,301,048 | ) | (1,044,852 | ) | (37,531 | ) | | (8,383,431 | ) | (1,315,543 | ) | |||||||||||||
Research and development |
(828,688 | ) | (303,093 | ) | | | (1,131,781 | ) | (177,601 | ) | ||||||||||||||
Sales and marketing |
(1,420,130 | ) | (1,180,146 | ) | (4,033 | ) | | (2,604,309 | ) | (408,673 | ) | |||||||||||||
General and administrative |
(619,922 | ) | 18,401 | (23,179 | ) | | (624,700 | ) | (98,029 | ) | ||||||||||||||
Impairment loss on goodwill and intangible assets |
| | | (4,397,012 | ) | (4,397,012 | ) | (689,987 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total cost and expenses |
(10,169,788 | ) | (2,509,690 | ) | (64,743 | ) | (4,397,012 | ) | (17,141,233 | ) | (2,689,833 | ) | ||||||||||||
Other operating income |
138,884 | 37,029 | 34 | | 175,947 | 27,610 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) from operations |
2,510,301 | (443,477 | ) | (59,379 | ) | (4,397,012 | ) | (2,389,567 | ) | (374,975 | ) | |||||||||||||
Interest income |
383,028 | 1,091 | 160 | | 384,279 | 60,302 | ||||||||||||||||||
Interest expense |
(73,776 | ) | | | | (73,776 | ) | (11,577 | ) | |||||||||||||||
Other gain or loss, net |
(16,000 | ) | | | | (16,000 | ) | (2,511 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) before income tax and share of income on equity method investments |
2,803,553 | (442,386 | ) | (59,219 | ) | (4,397,012 | ) | (2,095,064 | ) | (328,761 | ) | |||||||||||||
Income tax (expenses) benefits |
(844,987 | ) | 22,431 | | | (822,556 | ) | (129,077 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (loss) before share of income on equity method investments |
1,958,566 | (419,955 | ) | (59,219 | ) | (4,397,012 | ) | (2,917,620 | ) | (457,838 | ) | |||||||||||||
Share of loss on equity method investments |
(8,084 | ) | | | | (8,084 | ) | (1,269 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) |
1,950,482 | (419,955 | ) | (59,219 | ) | (4,397,012 | ) | (2,925,704 | ) | (459,107 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(v) | Share-based compensation was allocated in cost of revenues and operating expenses as follows: |
Year Ended December 31, 2021 |
||||||||||||||||||||
Momo RMB |
Tantan RMB |
QOOL RMB |
Total RMB |
Total US$ |
||||||||||||||||
Cost of revenues |
10,541 | 7,400 | | 17,941 | 2,815 | |||||||||||||||
Research and development |
97,828 | 41,743 | | 139,571 | 21,902 | |||||||||||||||
Sales and marketing |
48,154 | 22,667 | | 70,821 | 11,113 | |||||||||||||||
General and administrative |
314,216 | (66,778 | ) | | 247,438 | 38,828 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total cost and expenses |
470,739 | 5,032 | | 475,771 | 74,658 |
19
Hello Group 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, 2021 |
||||||||||||||||||||||||
Momo RMB |
Tantan RMB |
QOOL RMB |
Unallocated RMB |
Total RMB |
Total US$ |
|||||||||||||||||||
Income (loss) from operations |
2,510,301 | (443,477 | ) | (59,379 | ) | (4,397,012 | ) | (2,389,567 | ) | (374,975 | ) | |||||||||||||
Share-based compensation |
470,739 | 5,032 | | | 475,771 | 74,658 | ||||||||||||||||||
Impairment loss on goodwill and intangible assets |
| | | 4,397,012 | 4,397,012 | 689,987 | ||||||||||||||||||
Amortization of intangible assets from business acquisitions |
| 104,004 | | | 104,004 | 16,320 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-GAAP income (loss) from operations |
2,981,040 | (334,441 | ) | (59,379 | ) | | 2,587,220 | 405,990 | ||||||||||||||||
Net income (loss) |
1,950,482 | (419,955 | ) | (59,219 | ) | (4,397,012 | ) | (2,925,704 | ) | (459,107 | ) | |||||||||||||
Share-based compensation |
470,739 | 5,032 | | | 475,771 | 74,658 | ||||||||||||||||||
Impairment loss on goodwill and intangible assets |
| | | 4,397,012 | 4,397,012 | 689,987 | ||||||||||||||||||
Amortization of intangible assets from business acquisitions |
| 104,004 | | | 104,004 | 16,320 | ||||||||||||||||||
Tax impacts |
| (26,002 | ) | | | (26,002 | ) | (4,080 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-GAAP net income (loss) |
2,421,221 | (336,921 | ) | (59,219 | ) | | 2,025,081 | 317,778 |
20
Hello Group 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 (vi): |
||||||||||||||||||||
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 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(vi) | 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 |
21
Hello Group 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 RMB |
Tantan RMB |
QOOL RMB |
Total RMB |
Total 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 | 90,292 | 10,227 | 678,686 | 104,013 | |||||||||||||||
Amortization of intangible assets from business acquisitions |
| 152,065 | | 152,065 | 23,305 | |||||||||||||||
Tax impacts |
| (38,016 | ) | | (38,016 | ) | (5,826 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-GAAP net income (loss) |
3,154,006 | (249,729 | ) | (11,150 | ) | 2,893,127 | 443,392 |
22