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 September 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

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.

 

Hello Group Inc.
By:  

/s/ Hui Peng

Name:   Hui Peng
Title:   Chief Financial Officer

Date: September 1, 2022


Exhibit Index

Exhibit 99.1—Press Release

EX-99.1

Exhibit 99.1

Hello Group Inc. Announces Unaudited Financial Results for the Second Quarter of 2022

BEIJING, CHINA, September 1, 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 second quarter of 2022.

Second Quarter of 2022 Highlights

 

   

Net revenues decreased by 15.3% year over year to RMB3,110.4 million (US$464.4 million*) in the second quarter of 2022.

 

   

Net income attributable to Hello Group Inc. decreased to RMB345.6 million (US$51.6 million) in the second quarter of 2022, from RMB464.2 million in the same period of 2021.

 

   

Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB463.5 million (US$69.2 million) in the second quarter of 2022, from RMB551.0 million in the same period of 2021.

 

   

Diluted net income per American Depositary Share (“ADS”) was RMB1.68 (US$0.25) in the second quarter of 2022, compared to RMB2.15 in the same period of 2021.

 

   

Non-GAAP diluted net income per ADS (note 1) was RMB2.22 (US$0.33) in the second quarter of 2022, compared to RMB2.54 in the same period of 2021.

 

   

Monthly Active Users (“MAU”) on Momo application were 111.2 million in June 2022, compared to 115.6 million in June 2021. MAU on Tantan application were 24.8 million in June 2022.

 

   

For the Momo app total paying users was 8.6 million for the second quarter of 2022, compared to 9.3 million for the same period last year. Tantan had 2.2 million paying users for the second quarter of 2022 compared to 3.1 million from the year ago period.

First Half of 2022 Highlights

 

   

Net revenues decreased 12.4% year over year to RMB6,258.5 million (US$934.4 million) for the first half of 2022.

 

   

Net income attributable to Hello Group Inc. was RMB635.5 million (US$94.9 million) for the first half of 2022, compared to RMB925.8 million during the same period of 2021.

 

   

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB862.0 million (US$128.7 million) for the first half of 2022, compared to RMB1,184.6 million during the same period of 2021.

 

   

Diluted net income per ADS was RMB3.11 (US$0.46) for the first half of 2022, compared to RMB4.29 during the same period of 2021.

 

   

Non-GAAP diluted net income per ADS (note 1) was RMB4.16 (US$0.62) for the first half of 2022, compared to RMB5.45 during the same period of 2021.

“The COVID resurgence in the first half of 2022 has brought many challenges and uncertainties to the overall market environment and our execution of strategic goals. However, I’m pleased to see that our team managed to deliver good results in the second quarter by adjusting our product and operational initiatives in a timely manner to cope with external headwinds, at the same time adapting our execution plan to fit the evolving external environment.” commented Li Wang, CEO of Hello Group.

 

* 

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. 6981 to US$1.00, the effective noon buying rate for June 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

1


Second Quarter of 2022 Financial Results

Net revenues

Total net revenues were RMB3,110.4 million (US$464.4 million) in the second quarter of 2022, a decrease of 15.3% from RMB3,671.7 million in the second quarter of 2021.

Live video service revenues were RMB1,520.0 million (US$226.9 million) in the second quarter of 2022, a decrease of 27.7% from RMB2,101.3 million during the same period of 2021. The decrease was primarily attributable to consumption softness caused by the macro uncertainties including COVID resurgence, regulatory changes, and to a lesser extent the strategic decision to de-emphases Tantan’s live streaming business.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,536.4 million (US$229.4 million) in the second quarter of 2022, an increase of 1.9% from RMB1,507.3 million during the same period of 2021. The year-over-year increase was primarily attributable to the rapid revenue growth from the new standalone apps. The increase was partially offset by the decrease in Tantan’s value-added service due to the demonetization process to improve user experience and retention, as well as COVID’s negative impact on users’ dating sentiment and propensity to pay for VAS.

Mobile marketing revenues were RMB35.9 million (US$5.4 million) in the second quarter of 2022, a decrease of 30.4% from RMB51.6 million during the same period of 2021. The decrease in mobile marketing revenues was due to the negative impact of macro headwind on client’s advertising budget, and our product adjustment to address new regulation requirement.

Mobile games revenues were RMB17.2 million (US$2.6 million) in the second quarter of 2022, an increase of 87.3% from RMB9.2 million in the second quarter of 2021, primarily due to one new mobile game launched in the second half of 2021.

Net revenues from the Momo segment decreased from RMB3,157.5 million in the second quarter of 2021 to RMB2,779.5 million (US$415.0 million) in the second quarter of 2022, primarily due to the decrease in net revenues from live video service. Net revenues from the Tantan segment decreased from RMB513.5 million in the second quarter of 2021 to RMB330.8 million (US$49.4 million) in the second quarter of 2022, due to our strategy to lower the monetization level in order to improve user experience and retention, as well as the impact from the elevated COVID situations.

Cost and expenses

Cost and expenses were RMB2,804.8 million (US$418.7 million) in the second quarter of 2022, a decrease of 8.8% from RMB3,075.6 million in the second quarter of 2021. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to Momo’s core live video service and Tantan’s live video service, which was partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service; (b) a decrease in depreciation and amortization cost due to the impairment of intangible assets in 2021; (c) a decrease in marketing and promotional expenses by improving marketing efficiency of Momo and Tantan, which was partially offset by an increase to promote our new app “Tietie”; and (d) a decrease in salary expenses, due to our continuous optimization in personnel costs since the beginning of the year.

 

2


Non-GAAP cost and expenses (note 1) were RMB2,686.9 million (US$401.1 million) in the second quarter of 2022, a decrease of 9.8% from RMB2,980.1 million during the same period of 2021.

Other operating income

Other operating income was RMB40.6 million (US$6.1 million) in the second quarter of 2022, a decrease from RMB90.3 million during the second quarter of 2021. The other operating income mainly consisted of government incentives.

Income from operations

Income from operations was RMB346.2 million (US$51.7 million) in the second quarter of 2022, compared to RMB686.3 million during the same period of 2021. Income from operations of the Momo segment was RMB483.5 million (US$72.2 million) in the second quarter of 2022, which decreased from RMB711.3 million in the second quarter of 2021. Loss from operations of the Tantan segment was RMB131.3 million (US$19.6 million) in the second quarter of 2022, compared to loss from operations of RMB11.9 million in the second quarter of 2021.

Non-GAAP income from operations (note 1) was RMB464.1 million (US$69.3 million) in the second quarter of 2022, compared to RMB781.9 million during the same period of 2021. Non-GAAP income from operations of the Momo segment was RMB589.2 million (US$88.0 million) in the second quarter of 2022, which decreased from RMB835.8 million in the second quarter of 2021. Non-GAAP loss from operations of the Tantan segment was RMB119.0 million (US$17.8 million) in the second quarter of 2022, compared to non-GAAP loss from operations of RMB40.9 million in the second quarter of 2021.

Other gain or loss, net

Other gain was RMB66.3 million (US$9.9 million) in the second quarter of 2022, which was resulted from the Company repurchased some of our convertible senior notes from certain bond holders in the second quarter of 2022, compared to a loss of RMB10.5 million in the same period of 2021.

Income tax expenses

Income tax expenses were RMB146.0 million (US$21.8 million) in the second quarter of 2022, compared to RMB291.5 million in the second quarter of 2021. The decrease was primarily due to the following reasons: (a) the lower profit in the second quarter of 2022; (b) in the second quarter of 2022, we accrued withholding income tax of RMB37.7 million (US$5.6 million) on undistributed earnings generated in the second quarter of 2022 by our wholly-foreign owned enterprise (“WFOE”), because we plan to remit WFOE’s 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. In the second quarter of 2021, the Company distributed dividends of RMB1,300.0 million from our WFOE in China to our offshore entity and paid withholding income tax of RMB130.0 million.

 

3


Net income

Net income was RMB344.3 million (US$51.4 million) in the second quarter of 2022, compared to RMB461.5 million during the same period of 2021. Net income from the Momo segment was RMB482.0 million (US$72.0 million) in the second quarter of 2022, compared to RMB481.3 million in the same period of 2021. Net loss from the Tantan segment was RMB131.7 million (US$19.7 million) in the second quarter of 2022, compared to net loss of RMB6.7 million in the second quarter of 2021.

Non-GAAP net income (note 1) was RMB462.3 million (US$69.0 million) in the second quarter of 2022, compared to RMB548.3 million during the same period of 2021. Non-GAAP net income from the Momo segment was RMB587.6 million (US$87.7 million) in the second quarter of 2022, which decreased from RMB605.8 million in the second quarter of 2021. Non-GAAP net loss of the Tantan segment was RMB119.4 million (US$17.8 million) in the second quarter of 2022, compared to non-GAAP net loss of RMB44.5 million in the second quarter of 2021.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB345.6 million (US$51.6 million) in the second quarter of 2022, compared to a net income of RMB464.2 million during the same period of 2021.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB463.5 million (US$69.2 million) in the second quarter of 2022, compared to RMB551.0 million during the same period of 2021.

Net income per ADS

Diluted net income per ADS was RMB1.68 (US$0.25) in the second quarter of 2022, compared to RMB2.15 in the second quarter of 2021.

Non-GAAP diluted net income per ADS (note 1) was RMB2.22 (US$0.33) in the second quarter of 2022, compared to RMB2.54 in the second quarter of 2021.

Cash and cash flow

As of June 30, 2022, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB13,947.2 million (US$2,082.3 million), compared to RMB15,707.0 million as of December 31, 2021. The decrease of cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash was mainly due to the cash dividend we paid to our shareholders and payment for repurchase of convertible senior notes in the second quarter of 2022.

Net cash provided by operating activities in the second quarter of 2022 was RMB200.3 million (US$29.9 million), compared to a net cash used in operating activities of RMB167.8 million in the second quarter of 2021. For the second quarter of 2022, included in our cash provided by operating activities is RMB100.0 million (US$14.9 million) of cash payment to Chinese tax authorities to repatriate RMB1,000.0 million (US$149.3 million) from our WFOE in China to our offshore entity. For the second quarter of 2021, included in our cash used in operating activities is RMB678.2 million of cash payment to Tantan founders to settle the previously granted liability-classified share options upon their termination of services with Tantan.

First Half of 2022 Financial Results

Net revenues for the first half of 2022 were RMB6,258.5 million (US$934.4 million), a decrease of 12.4% from RMB7,142.3 million in the same period of 2021.

 

4


Net income attributable to Hello Group Inc. was RMB635.5 million (US$94.9 million) for the first half of 2022, compared to RMB925.8 million during the same period of 2021.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB862.0 million (US$128.7 million) for the first half of 2022, compared to RMB1,184.6 million during the same period of 2021.

Diluted net income per ADS was RMB3.11 (US$0.46) during the first half of 2022, compared to RMB4.29 in the same period of 2021.

Non-GAAP diluted net income per ADS (note 1) was RMB4.16 (US$0.62) during the first half of 2022, compared to RMB5.45 in the same period of 2021.

Net cash provided by operating activities was RMB243.7 million (US$36.4 million) during the first half of 2022, compared to RMB333.8 million in the same period of 2021.

Recent Development

Execution of share repurchase program

On June 7, 2022, Hello Group’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$200 million of its shares over the next 24 months. As of September 1, 2022, the Company has repurchased 4.18 million ADSs for US$19.2 million on the open market under this program, at an average purchase price of US$4.58 per ADS.

Business Outlook

For the third quarter of 2022, the Company expects total net revenues to be between RMB3.1 billion to RMB3.2 billion, representing a decrease of 17.5% to 14.9% year-over-year. This forecast 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 resurgence on the Chinese and global economies, as well as on users’ paying capabilities.

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.

 

5


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.

Conference Call

Hello Group’s management will host an earnings conference call on Thursday, September 1, 2022, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on September 1, 2022).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10024750-8qar7z.html.

Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.

A telephone replay of the call will be available after the conclusion of the conference call through September 8, 2022. The dial-in details for the replay are as follows:

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

Hong Kong:        800-930-639

Passcode:            10024750

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Hello Group’s website at https://ir.hellogroup.com.

About Hello Group Inc.

We are a leading player in China’s online social and entertainment space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. 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.

 

6


For investor and media inquiries, please contact:

Hello Group Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: ir@hellogroup.com

Christensen

In China

Mr. Eric Yuan

Phone: +86-10-5900-1548

E-mail: Eyuan@christensenir.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: lbergkamp@christensenir.com

Safe Harbor Statement

This news release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the third 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 second quarter of 2022 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the third 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 Company’s business operations and the economy in China, the market price of the Company’s stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company’s cash flows from operations, general economic conditions, and other factors. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

 

7


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     First half year  
   Ended June 30     Ended June 30  
     2021     2022     2022     2021     2022     2022  
     RMB     RMB     US$     RMB     RMB     US$  

Net revenues:

            

Live video service

     2,101,332       1,519,978       226,927       4,063,427       3,128,701       467,103  

Value-added service

     1,507,258       1,536,384       229,376       2,962,771       3,019,815       450,847  

Mobile marketing

     51,601       35,913       5,362       90,318       63,786       9,523  

Mobile games

     9,182       17,200       2,568       20,366       42,697       6,374  

Other services

     2,341       940       140       5,428       3,494       521  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     3,671,714       3,110,415       464,373       7,142,310       6,258,493       934,368  

Cost and expenses:

            

Cost of revenues

     (2,070,329     (1,797,846     (268,411     (4,008,574     (3,619,234     (540,337

Research and development

     (268,325     (238,262     (35,572     (554,818     (488,457     (72,925

Sales and marketing

     (650,236     (610,953     (91,213     (1,263,809     (1,199,530     (179,085

General and administrative

     (86,747     (157,746     (23,551     (264,709     (317,581     (47,414
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (3,075,637     (2,804,807     (418,747     (6,091,910     (5,624,802     (839,761

Other operating income

     90,268       40,570       6,057       116,168       64,501       9,630  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     686,345       346,178       51,683       1,166,568       698,192       104,237  

Interest income

     94,448       93,630       13,979       191,142       191,487       28,588  

Interest expense

     (18,302     (28,231     (4,215     (36,663     (47,565     (7,101

Other gain or loss, net

     (10,500     66,303       9,899       (18,000     77,922       11,633  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     751,991       477,880       71,346       1,303,047       920,036       137,357  

Income tax expenses

     (291,509     (146,045     (21,804     (382,907     (296,819     (44,314
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before share of income on equity method investments

     460,482       331,835       49,542       920,140       623,217       93,043  

Share of income on equity method investments

     1,042       12,513       1,868       2,303       9,913       1,480  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     461,524       344,348       51,410       922,443       633,130       94,523  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: net loss attributable to non-controlling interest

     (2,636     (1,221     (182     (3,376     (2,324     (347
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to the shareholders of Hello Group Inc.

     464,160       345,569       51,592       925,819       635,454       94,870  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to ordinary shareholders

            

Basic

     1.13       0.87       0.13       2.25       1.60       0.24  

Diluted

     1.07       0.84       0.13       2.15       1.56       0.23  

Weighted average shares used in calculating net income per ordinary share

            

Basic

     411,540,714       396,777,496       396,777,496       411,753,583       396,013,164       396,013,164  

Diluted

     449,020,572       434,212,413       434,212,413       448,597,242       432,896,998       432,896,998  

 

9


Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

 

     Three months     First half year  
   Ended June 30     Ended June 30  
     2021     2022     2022     2021     2022     2022  
     RMB     RMB     US$     RMB     RMB     US$  

Net income

     461,524       344,348       51,410       922,443       633,130       94,523  

Other comprehensive loss, net of tax:

            

Foreign currency translation adjustment

     (28,396     (151,539     (22,624     (32,198     (140,489     (20,974
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

     433,128       192,809       28,786       890,245       492,641       73,549  

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

     (6,162     8,915       1,331       (5,783     6,879       1,027  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Hello Group Inc.

     439,290       183,894       27,455       896,028       485,762       72,522  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

10


Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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

 

     December 31      June 30      June 30  
     2021      2022      2022  
   RMB      RMB      US$  

Assets

        

Current assets

        

Cash and cash equivalents

     5,570,563        4,364,550        651,610  

Short-term deposits

     2,860,000        6,600,000        985,354  

Restricted cash

     —          102,270        15,269  

Accounts receivable, net of allowance for doubtful accounts of RMB15,127 and RMB6,765 as of December 31, 2021 and June 30, 2022, respectively

     205,225        213,983        31,947  

Prepaid expenses and other current assets

     775,072        824,221        123,053  
  

 

 

    

 

 

    

 

 

 

Total current assets

     9,410,860        12,105,024        1,807,233  

Long-term deposits

     7,200,000        2,800,000        418,029  

Long-term restricted cash

     76,471        80,377        12,000  

Right-of-use assets, net

     257,934        179,102        26,739  

Property and equipment, net

     180,664        192,372        28,720  

Intangible assets, net

     27,320        24,762        3,697  

Rental deposits

     19,204        21,453        3,203  

Long-term investments

     820,006        885,947        132,268  

Other non-current assets

     83,930        99,139        14,801  

Deferred tax assets

     34,849        36,425        5,438  
  

 

 

    

 

 

    

 

 

 

Total assets

     18,111,238        16,424,601        2,452,128  
  

 

 

    

 

 

    

 

 

 

Liabilities and equity

        

Current liabilities

        

Accounts payable

     726,207        626,497        93,534  

Deferred revenue

     539,967        486,264        72,597  

Accrued expenses and other current liabilities

     911,050        771,145        115,129  

Amount due to related parties

     5,016        1,619        242  

Lease liabilities due within one year

     162,950        121,587        18,152  

Income tax payable

     125,773        90,484        13,509  

Deferred consideration in connection with business acquisitions

     44,802        41,220        6,154  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     2,515,765        2,138,816        319,317  

Deferred tax liabilities

     213,384        54,469        8,132  

Convertible senior notes

     4,565,292        3,606,426        538,425  

Lease liabilities

     103,105        63,588        9,493  

Other non-current liabilities

     128,095        113,405        16,931  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     7,525,641        5,976,704        892,298  

Shareholder’s equity (i)

     10,585,597        10,447,897        1,559,830  
  

 

 

    

 

 

    

 

 

 

Total liabilities and shareholder’s equity

     18,111,238        16,424,601        2,452,128  
  

 

 

    

 

 

    

 

 

 

 

  (i):

As of June 30, 2022, the number of ordinary shares outstanding was 396,887,230.

 

11


Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

 

     Three months
Ended June 30
    First half year
Ended June 30
 
     2021
RMB
    2022
RMB
    2022
US$
    2021
RMB
    2022
RMB
    2022
US$
 

Cash flows from operating activities:

            

Net income

     461,524       344,348       51,410       922,443       633,130       94,523  

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

            

Depreciation of property and equipment

     40,072       28,081       4,192       82,615       56,060       8,370  

Amortization of intangible assets

     36,108       1,279       191       73,061       2,558       382  

Share-based compensation

     60,658       117,948       17,609       205,915       226,564       33,825  

Share of income on equity method investments

     (1,042     (12,513     (1,868     (2,303     (9,913     (1,480

Gain on repurchase of convertible senior notes

     —         (66,303     (9,899     —         (77,922     (11,633

Loss on long-term investments

     10,500       —         —         18,000       —         —    

Gain on disposal of subsidiaries

     (15,526     —         —         (15,526     —         —    

Cash received on distributions from equity method investments

     —         1,708       255       —         1,708       255  

Loss or gain on disposal of property and equipment

     (1,101     180       27       (1,079     140       21  

Provision of losses on receivable and other assets

     169       365       54       564       367       55  

Changes in operating assets and liabilities:

            

Accounts receivable

     (15,162     (9,927     (1,482     (22,742     (7,278     (1,087

Prepaid expenses and other current assets

     (31,941     (13,584     (2,028     (118,618     (57,562     (8,594

Rental deposits

     (1,951     3,136       468       (592     683       102  

Deferred tax assets

     (627     —         —         (1,234     (1,576     (235

Other non-current assets

     36,720       19,075       2,848       49,050       60,690       9,061  

Accounts payable

     48,889       (16,996     (2,537     47,822       (105,954     (15,819

Income tax payable

     (119,269     (30,714     (4,585     (96,378     (35,288     (5,268

Deferred revenue

     16,464       (11,921     (1,780     16,085       (54,535     (8,142

Accrued expenses and other current liabilities

     23,189       (63,615     (9,497     (95,783     (195,833     (29,237

Amount due to related parties

     600       (3,240     (484     (6,556     (3,397     (507

Deferred tax liabilities

     (9,027     (61,942     (9,248     (18,265     (157,327     (23,488

Share-based compensation liability

     (678,153     —         —         (678,153     —         —    

Other non-current liabilities

     (28,877     (25,016     (3,735     (24,517     (31,656     (4,726
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by operating activities

     (167,783     200,349       29,911       333,809       243,659       36,378  

Cash flows from investing activities:

            

Purchase of property and equipment

     (20,020     (21,694     (3,239     (45,203     (43,341     (6,471

Payment for long-term investments

     (300,000     (55,343     (8,262     (300,000     (55,343     (8,262

Purchase of short-term deposits

     (1,566,688     —         —         (2,476,688     —         —    

Cash received on maturity of short-term deposits

     2,089,618       100,000       14,930       2,658,912       1,010,000       150,789  

Cash received on investment income distribution

     —         —         —         5,610       3,523       526  

Cash of disposed subsidiaries

     (8,750     —         —         (8,750     —         —    

Purchase of long-term deposits

     (250,000     (400,000     (59,718     (250,000     (1,550,000     (231,409

Cash received on maturity of long—term deposits

     —         1,200,000       179,155       —         1,200,000       179,155  

Other investing activities

     2,390       318       47       2,393       322       48  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by investing activities

     (53,450     823,281       122,913       (413,726     565,161       84,376  

Cash flows from financing activities:

            

Deferred payment for business acquisition

     —         —         —         (12,907     (5,563     (831

Proceeds from exercise of share options

     310       2       —         310       33       5  

Repurchase of ordinary shares

     (103,072     (2,335     (349     (106,151     (2,335     (349

Repurchase of subsidiary’s share options

     (2,780     (21,110     (3,152     (5,561     (25,537     (3,813

Dividends payment

     (852,743     (840,997     (125,558     (852,743     (840,997     (125,558

Payment for redemption of convertible bonds

     —         (1,002,537     (149,675     —         (1,112,544     (166,098
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (958,285     (1,866,977     (278,734     (977,052     (1,986,943     (296,644

Effect of exchange rate changes

     (28,952     93,897       14,020       (25,036     78,286       11,689  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (1,208,470     (749,450     (111,890     (1,082,005     (1,099,837     (164,201

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

     3,492,537       5,296,647       790,769       3,366,072       5,647,034       843,080  

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

     2,284,067       4,547,197       678,879       2,284,067       4,547,197       678,879  

 

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
Ended June 30, 2021
    Three months
Ended June 30, 2022
    Three months
Ended June 30, 2022
 
    GAAP
RMB
    Amortization
of intangible
assets from
business
acquisitions
RMB
    Share-based
compensation
RMB
    Tax
impacts
RMB(ii)
    Non-GAAP
RMB
    GAAP
RMB
    Share-based
compensation
RMB
    Non-GAAP
RMB
    GAAP
US$
    Share-based
compensation
US$
    Non-GAAP
US$
 

Cost of revenues

    (2,070,329     17,256       4,201       —         (2,048,872     (1,797,846     7,914       (1,789,932     (268,411     1,182       (267,229

Research and development

    (268,325     1,461       33,965       —         (232,899     (238,262     23,965       (214,297     (35,572     3,578       (31,994

Sales and marketing

    (650,236     16,137       14,588       —         (619,511     (610,953     10,894       (600,059     (91,213     1,626       (89,587

General and administrative

    (86,747     —         7,904       —         (78,843     (157,746     75,175       (82,571     (23,551     11,223       (12,328
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost and operating expenses

    (3,075,637     34,854       60,658       —         (2,980,125     (2,804,807     117,948       (2,686,859     (418,747     17,609       (401,138

Income from operations

    686,345       34,854       60,658       —         781,857       346,178       117,948       464,126       51,683       17,609       69,292  

Net income

attributable to Hello Group Inc.

    464,160       34,854       60,658       (8,714     550,958       345,569       117,948       463,517       51,592       17,609       69,201  

 

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.

 

    First half year
Ended June 30, 2021
    First half year
Ended June 30, 2022
    First half year
Ended June 30, 2022
 
    GAAP
RMB
    Amortization
of intangible
assets from
business
acquisitions
RMB
    Share-based
compensation
RMB
    Tax
impacts
RMB(ii)
    Non-GAAP
RMB
    GAAP
RMB
    Share-based
compensation
RMB
    Non-GAAP
RMB
    GAAP
US$
    Share-based
compensation
US$
    Non-GAAP
US$
 

Cost of revenues

    (4,008,574     34,567       7,925       —         (3,966,082     (3,619,234     10,992       (3,608,242     (540,337     1,641       (538,696

Research and development

    (554,818     3,660       74,174       —         (476,984     (488,457     44,939       (443,518     (72,925     6,709       (66,216

Sales and marketing

    (1,263,809     32,326       32,144       —         (1,199,339     (1,199,530     21,499       (1,178,031     (179,085     3,210       (175,875

General and administrative

    (264,709     —         91,672       —         (173,037     (317,581     149,134       (168,447     (47,414     22,265       (25,149
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost and operating expenses

    (6,091,910     70,553       205,915       —         (5,815,442     (5,624,802     226,564       (5,398,238     (839,761     33,825       (805,936

Income from operations

    1,166,568       70,553       205,915       —         1,443,036       698,192       226,564       924,756       104,237       33,825       138,062  

Net income

attributable to Hello Group Inc.

    925,819       70,553       205,915       (17,639     1,184,648       635,454       226,564       862,018       94,870       33,825       128,695  

 

(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 June 30, 2022  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

          

Live video service

     1,403,596       116,382       —         1,519,978       226,927  

Value-added service

     1,321,967       214,417       —         1,536,384       229,376  

Mobile marketing

     35,913       —         —         35,913       5,362  

Mobile games

     17,200       —         —         17,200       2,568  

Other services

     782       —         158       940       140  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     2,779,458       330,799       158       3,110,415       464,373  

Cost and expenses (iii):

          

Cost of revenues

     (1,631,584     (165,696     (566     (1,797,846     (268,411

Research and development

     (171,614     (66,648     —         (238,262     (35,572

Sales and marketing

     (386,496     (223,311     (1,146     (610,953     (91,213

General and administrative

     (144,574     (8,685     (4,487     (157,746     (23,551
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (2,334,268     (464,340     (6,199     (2,804,807     (418,747

Other operating income

     38,344       2,225       1       40,570       6,057  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     483,534       (131,316     (6,040     346,178       51,683  

Interest income

     93,506       52       72       93,630       13,979  

Interest expense

     (28,231     —         —         (28,231     (4,215

Other gain or loss, net

     66,303       —         —         66,303       9,899  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     615,112       (131,264     (5,968     477,880       71,346  

Income tax expenses

     (145,628     (417     —         (146,045     (21,804
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     469,484       (131,681     (5,968     331,835       49,542  

Share of loss on equity method investments

     12,513       —         —         12,513       1,868  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     481,997       (131,681     (5,968     344,348       51,410  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(iii)

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

 

     Three months  
     Ended June 30, 2022  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

     2,152        5,762        —          7,914        1,182  

Research and development

     17,659        6,306        —          23,965        3,578  

Sales and marketing

     10,693        201        —          10,894        1,626  

General and administrative

     75,134        41        —          75,175        11,223  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     105,638        12,310        —          117,948        17,609  

 

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 June 30, 2022  
     Momo      Tantan     QOOL     Total      Total  
     RMB      RMB     RMB     RMB      US$  

Income (loss) from operations

     483,534        (131,316     (6,040     346,178        51,683  

Share-based compensation

     105,638        12,310       —         117,948        17,609  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP income (loss) from operations

     589,172        (119,006     (6,040     464,126        69,292  

Net income (loss)

     481,997        (131,681     (5,968     344,348        51,410  

Share-based compensation

     105,638        12,310       —         117,948        17,609  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP net income (loss)

     587,635        (119,371     (5,968     462,296        69,019  

 

16


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     Three months  
     Ended June 30, 2021  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$1  

Net revenues:

          

Live video service

     1,884,821       216,511       —         2,101,332       325,455  

Value-added service

     1,210,220       297,038       —         1,507,258       233,445  

Mobile marketing

     51,601       —         —         51,601       7,992  

Mobile games

     9,182       —         —         9,182       1,422  

Other services

     1,706       —         635       2,341       362  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     3,157,530       513,549       635       3,671,714       568,676  

Cost and expenses (iv):

          

Cost of revenues

     (1,796,504     (266,197     (7,628     (2,070,329     (320,653

Research and development

     (195,371     (72,954     —         (268,325     (41,558

Sales and marketing

     (378,938     (270,266     (1,032     (650,236     (100,709

General and administrative

     (140,905     59,205       (5,047     (86,747     (13,435
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (2,511,718     (550,212     (13,707     (3,075,637     (476,355

Other operating income

     65,445       24,798       25       90,268       13,981  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     711,257       (11,865     (13,047     686,345       106,302  

Interest income

     94,112       291       45       94,448       14,628  

Interest expense

     (18,302     —         —         (18,302     (2,835

Other gain or loss, net

     (10,500     —         —         (10,500     (1,626
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     776,567       (11,574     (13,002     751,991       116,469  

Income tax (expenses) benefits

     (296,344     4,835       —         (291,509     (45,149
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     480,223       (6,739     (13,002     460,482       71,320  

Share of income on equity method investments

     1,042       —         —         1,042       161  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     481,265       (6,739     (13,002     461,524       71,481  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(iv)

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

 

     Three months  
     Ended June 30, 2021  
     Momo      Tantan     QOOL      Total      Total  
     RMB      RMB     RMB      RMB      US$  

Cost of revenues

     2,640        1,561       —          4,201        651  

Research and development

     29,663        4,302       —          33,965        5,261  

Sales and marketing

     12,971        1,617       —          14,588        2,259  

General and administrative

     79,308        (71,404     —          7,904        1,224  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total cost and expenses

     124,582        (63,924     —          60,658        9,395  

 

 

1 

All translations from RMB to U.S. dollars are made at a rate of RMB6.4566 to US$1.00, the effective noon buying rate for June 30, 2021 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 June 30, 2021  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Income (loss) from operations

     711,257        (11,865     (13,047     686,345       106,302  

Share-based compensation

     124,582        (63,924     —         60,658       9,395  

Amortization of intangible assets from business acquisitions

     —          34,854       —         34,854       5,398  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income (loss) from operations

     835,839        (40,935     (13,047     781,857       121,095  

Net income (loss)

     481,265        (6,739     (13,002     461,524       71,481  

Share-based compensation

     124,582        (63,924     —         60,658       9,395  

Amortization of intangible assets from business acquisitions

     —          34,854       —         34,854       5,398  

Tax impacts

     —          (8,714     —         (8,714     (1,351
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

     605,847        (44,523     (13,002     548,322       84,923  

 

18


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     First half year  
     Ended June 30, 2022  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

          

Live video service

     2,887,119       241,582       —         3,128,701       467,103  

Value-added service

     2,581,559       438,256       —         3,019,815       450,847  

Mobile marketing

     63,786       —         —         63,786       9,523  

Mobile games

     42,697       —         —         42,697       6,374  

Other services

     3,172       —         322       3,494       521  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     5,578,333       679,838       322       6,258,493       934,368  

Cost and expenses (v):

          

Cost of revenues

     (3,276,411     (341,911     (912     (3,619,234     (540,337

Research and development

     (359,913     (128,544     —         (488,457     (72,925

Sales and marketing

     (704,176     (493,458     (1,896     (1,199,530     (179,085

General and administrative

     (291,770     (16,761     (9,050     (317,581     (47,414
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (4,632,270     (980,674     (11,858     (5,624,802     (839,761

Other operating income

     56,690       7,769       42       64,501       9,630  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     1,002,753       (293,067     (11,494     698,192       104,237  

Interest income

     191,249       104       134       191,487       28,588  

Interest expense

     (47,565     —         —         (47,565     (7,101

Other gain or loss, net

     77,922       —         —         77,922       11,633  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,224,359       (292,963     (11,360     920,036       137,357  

Income tax expenses

     (295,733     (1,086     —         (296,819     (44,314
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     928,626       (294,049     (11,360     623,217       93,043  

Share of income on equity method investments

     9,913       —         —         9,913       1,480  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     938,539       (294,049     (11,360     633,130       94,523  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(v)

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

 

     First half year  
     Ended June 30, 2022  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

     3,999        6,993        —          10,992        1,641  

Research and development

     36,112        8,827        —          44,939        6,709  

Sales and marketing

     21,283        216        —          21,499        3,210  

General and administrative

     149,047        87        —          149,134        22,265  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     210,441        16,123        —          226,564        33,825  

 

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)

 

     First half year  
     ended June 30, 2022  
     Momo      Tantan     QOOL     Total      Total  
     RMB      RMB     RMB     RMB      US$  

Operating income (loss)

     1,002,753        (293,067     (11,494     698,192        104,237  

Share-based compensation

     210,441        16,123       —         226,564        33,825  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP operating income (loss)

     1,213,194        (276,944     (11,494     924,756        138,062  

Net income (loss)

     938,539        (294,049     (11,360     633,130        94,523  

Share-based compensation

     210,441        16,123       —         226,564        33,825  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP net income (loss)

     1,148,980        (277,926     (11,360     859,694        128,348  

 

20


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     First half year  
     Ended June 30, 2021  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

          

Live video service

     3,595,710       467,717       —         4,063,427       629,345  

Value-added service

     2,349,235       613,536       —         2,962,771       458,875  

Mobile marketing

     90,318       —         —         90,318       13,988  

Mobile games

     20,366       —         —         20,366       3,154  

Other services

     3,674       —         1,754       5,428       841  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     6,059,303       1,081,253       1,754       7,142,310       1,106,203  

Cost and expenses (vi):

          

Cost of revenues

     (3,453,399     (547,186     (7,989     (4,008,574     (620,849

Research and development

     (400,701     (154,117     —         (554,818     (85,930

Sales and marketing

     (705,767     (556,976     (1,066     (1,263,809     (195,739

General and administrative

     (300,356     45,084       (9,437     (264,709     (40,998
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (4,860,223     (1,213,195     (18,492     (6,091,910     (943,516

Other operating income

     85,406       30,736       26       116,168       17,992  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     1,284,486       (101,206     (16,712     1,166,568       180,679  

Interest income

     190,455       596       91       191,142       29,604  

Interest expense

     (36,663     —         —         (36,663     (5,678

Other gain or loss, net

     (18,000     —         —         (18,000     (2,788
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,420,278       (100,610     (16,621     1,303,047       201,817  

Income tax (expenses) benefits

     (389,946     7,039       —         (382,907     (59,305
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,030,332       (93,571     (16,621     920,140       142,512  

Share of income on equity method investments

     2,303       —         —         2,303       357  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     1,032,635       (93,571     (16,621     922,443       142,869  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(vi)

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

 

     First half year  
     ended June 30, 2021  
     Momo      Tantan     QOOL      Total      Total  
     RMB      RMB     RMB      RMB      US$  

Cost of revenues

     4,965        2,960       —          7,925        1,227  

Research and development

     60,188        13,986       —          74,174        11,488  

Sales and marketing

     25,877        6,267       —          32,144        4,978  

General and administrative

     160,792        (69,120     —          91,672        14,198  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total cost and expenses

     251,822        (45,907     —          205,915        31,891  

 

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)

 

     First half year  
     ended June 30, 2021  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Operating income (loss)

     1,284,486        (101,206     (16,712     1,166,568       180,679  

Share-based compensation

     251,822        (45,907     —         205,915       31,891  

Amortization of intangible assets from business acquisitions

     —          70,553       —         70,553       10,928  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income (loss)

     1,536,308        (76,560     (16,712     1,443,036       223,498  

Net income (loss)

     1,032,635        (93,571     (16,621     922,443       142,869  

Share-based compensation

     251,822        (45,907     —         205,915       31,891  

Amortization of intangible assets from business acquisitions

     —          70,553       —         70,553       10,928  

Tax impacts

     —          (17,639     —         (17,639     (2,732
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

     1,284,457        (86,564     (16,621     1,181,272       182,956  

 

22