Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 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: December 8, 2022


Exhibit Index

Exhibit 99.1—Press Release

EX-99.1

Exhibit 99.1

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

BEIJING, CHINA, December 8, 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 third quarter of 2022.

Third Quarter of 2022 Highlights

 

   

Net revenues decreased by 14.0% year over year to RMB3,233.0 million (US$454.5 million*) in the third quarter of 2022.

 

   

Net income attributable to Hello Group Inc. increased to RMB450.8 million (US$63.4 million) in the third quarter of 2022, from RMB403.2 million in the same period of 2021.

 

   

Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB535.8 million (US$75.3 million) in the third quarter of 2022, from RMB571.6 million in the same period of 2021.

 

   

Diluted net income per American Depositary Share (“ADS”) was RMB2.20 (US$0.31) in the third quarter of 2022, compared to RMB1.93 in the same period of 2021.

 

   

Non-GAAP diluted net income per ADS (note 1) was RMB2.60 (US$0.37) in the third quarter of 2022, compared to RMB2.70 in the same period of 2021.

 

   

Monthly Active Users (“MAU”) on Momo application were 108.8 million in September 2022, compared to 115.5 million in September 2021. MAU on Tantan application were 20.9 million in September 2022.

 

   

For the Momo app total paying users was 8.4 million for the third quarter of 2022, compared to 9.3 million for the same period last year. Tantan had 2.0 million paying users for the third quarter of 2022 compared to 2.9 million from the year ago period.

First Nine Months of 2022 Highlights

 

   

Net revenues decreased 12.9% year over year to RMB9,491.5 million (US$1,334.3 million) for the first nine months of 2022.

 

   

Net income attributable to Hello Group Inc. was RMB1,086.3 million (US$152.7 million) for the first nine months of 2022, compared to RMB1,329.0 million during the same period of 2021.

 

   

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,397.8 million (US$196.5 million) for the first nine months of 2022, compared to RMB1,756.2 million during the same period of 2021.

 

   

Diluted net income per ADS was RMB5.30 (US$0.75) for the first nine months of 2022, compared to RMB6.22 during the same period of 2021.

 

   

Non-GAAP diluted net income per ADS (note 1) was RMB6.75 (US$0.95) for the first nine months of 2022, compared to RMB8.14 during the same period of 2021.

“I am very happy to return to the CEO position. In the third quarter, thanks to product and operational enhancements, we delivered good financial results and made solid progress across all business lines.” commented Yan Tang, Chairman and CEO of Hello Group. “Such progress on the business front, coupled with the efforts to improve cost efficiency, allowed us to see meaningful bottom line improvement on a sequential basis. I am very proud of the execution capabilities that the team demonstrated in such a challenging environment.”

 

* 

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 RMB7.1135 to US$1.00, the effective noon buying rate for September 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

1


Third Quarter of 2022 Financial Results

Net revenues

Total net revenues were RMB3,233.0 million (US$454.5 million) in the third quarter of 2022, a decrease of 14.0% from RMB3,759.2 million in the third quarter of 2021.

Live video service revenues were RMB1,657.5 million (US$233.0 million) in the third quarter of 2022, a decrease of 23.5% from RMB2,166.7 million during the same period of 2021. The decrease was primarily attributable to COVID related consumption softness and regulatory changes, and to a lesser extent, Tantan’s product adjustment to improve user experience in September last year and negative impact of pandemic resurgence and channel investment reduction.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,537.7 million (US$216.2 million) in the third quarter of 2022, an increase of 0.3% from RMB1,533.3 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 the negative impact of COVID and the reduction of channel investments on Tantan’s user growth and paying conversion.

Mobile marketing revenues were RMB28.2 million (US$4.0 million) in the third quarter of 2022, a decrease of 34.8% from RMB43.3 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.

Mobile games revenues were RMB7.7 million (US$1.1 million) in the third quarter of 2022, a decrease of 4.1% from RMB8.1 million in the third quarter of 2021. The decrease in mobile game revenues was mainly due to the decrease in paying users of mobile games.

Net revenues from the Momo segment decreased from RMB3,246.3 million in the third quarter of 2021 to RMB2,891.0 million (US$406.4 million) in the third quarter of 2022, primarily due to the decrease in net revenues from live video service. Net revenues from the Tantan segment decreased from RMB510.7 million in the third quarter of 2021 to RMB341.3 million (US$48.0 million) in the third quarter of 2022, due to our demonetization strategy to improve user experience, as well as the negative impact of COVID and the reduction of channel investments on Tantan’s user growth and paying conversion.

Cost and expenses

Cost and expenses were RMB2,734.2 million (US$384.4 million) in the third quarter of 2022, a decrease of 17.6% from RMB3,319.9 million in the third 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 sales and marketing expenses due to our initiatives to control cost and optimize Tantan’s channel marketing strategy; (c) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs since the beginning of the year and the decreased fair value of the share options new grants; (d) no production cost from television program and film compared to the third quarter of 2021; and (e) a decrease in depreciation and amortization cost due to the impairment of intangible assets in 2021.

 

2


Non-GAAP cost and expenses (note 1) were RMB2,649.2 million (US$372.4 million) in the third quarter of 2022, a decrease of 15.7% from RMB3,143.2 million during the same period of 2021.

Income from operations

Income from operations was RMB520.1 million (US$73.1 million) in the third quarter of 2022, compared to RMB460.5 million during the same period of 2021. Income from operations of the Momo segment was RMB569.4 million (US$80.0 million) in the third quarter of 2022, which decreased from RMB676.5 million in the third quarter of 2021. Loss from operations of the Tantan segment was RMB44.5 million (US$6.2 million) in the third quarter of 2022, compared to loss from operations of RMB179.8 million in the third quarter of 2021.

Non-GAAP income from operations (note 1) was RMB605.1 million (US$85.1 million) in the third quarter of 2022, compared to RMB637.2 million during the same period of 2021. Non-GAAP income from operations of the Momo segment was RMB648.2 million (US$91.1 million) in the third quarter of 2022, which decreased from RMB786.3 million in the third quarter of 2021. Non-GAAP loss from operations of the Tantan segment was RMB38.3 million (US$5.4 million) in the third quarter of 2022, compared to non-GAAP loss from operations of RMB112.9 million in the third quarter of 2021.

Other gain or loss, net

Other gain was RMB40.4 million (US$5.7 million) in the third quarter of 2022, which mainly resulted from the Company’s repurchase of its convertible senior notes from certain bond holders in the third quarter of 2022, partially offset by impairment loss on other long-term investments.

Income tax expenses

Income tax expenses were RMB156.0 million (US$21.9 million) in the third quarter of 2022, compared to RMB143.2 million in the third quarter of 2021. The increase was primarily due to the fact that in the third quarter of 2022, we accrued withholding income tax of RMB42.9 million (US$6.0 million) on undistributed earnings generated in the third 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 for US dollars in business operations, payments of dividends and debts, potential investments, share repurchase plan, etc.

Net income

Net income was RMB449.9 million (US$63.2 million) in the third quarter of 2022, compared to RMB395.9 million during the same period of 2021. Net income from the Momo segment was RMB499.6 million (US$70.2 million) in the third quarter of 2022, compared to RMB611.1 million in the same period of 2021. Net loss from the Tantan segment was RMB45.0 million (US$6.3 million) in the third quarter of 2022, compared to net loss of RMB179.0 million in the third quarter of 2021.

 

3


Non-GAAP net income (note 1) was RMB534.8 million (US$75.2 million) in the third quarter of 2022, compared to RMB564.3 million during the same period of 2021. Non-GAAP net income from the Momo segment was RMB578.4 million (US$81.3 million) in the third quarter of 2022, which decreased from RMB720.9 million in the third quarter of 2021. Non-GAAP net loss of the Tantan segment was RMB38.8 million (US$5.5 million) in the third quarter of 2022, compared to non-GAAP net loss of RMB120.5 million in the third quarter of 2021.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB450.8 million (US$63.4 million) in the third quarter of 2022, compared to a net income of RMB403.2 million during the same period of 2021.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB535.8 million (US$75.3 million) in the third quarter of 2022, compared to RMB571.6 million during the same period of 2021.

Net income per ADS

Diluted net income per ADS was RMB2.20 (US$0.31) in the third quarter of 2022, compared to RMB1.93 in the third quarter of 2021.

Non-GAAP diluted net income per ADS (note 1) was RMB2.60 (US$0.37) in the third quarter of 2022, compared to RMB2.70 in the third quarter of 2021.

Cash and cash flow

As of September 30, 2022, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB13,021.3 million (US$1,830.5 million), compared to RMB15,707.0 million as of December 31, 2021. The decrease was due to a number of cash outflow items, including our cash dividend payment of RMB841.0 million (US$118.2 million) to shareholders; an aggregate payment of RMB2,137.0 million (US$300.4 million) for the repurchase of the company’s convertible notes; an aggregate of RMB287.7 million (US$40.4 million) in relation to the share repurchase program; and RMB300.0 million (US$42.2 million) payment to Chinese tax authorities to repatriate cash from our WOFE in China to our offshore entity in the first nine months of 2022.

Net cash provided by operating activities in the third quarter of 2022 was RMB444.5 million (US$62.5 million), compared to RMB559.9 million in the third quarter of 2021.

First Nine Months of 2022 Financial Results

Net revenues for the first nine months of 2022 were RMB9,491.5 million (US$1,334.3 million), a decrease of 12.9% from RMB10,901.5 million in the same period of 2021.

Net income attributable to Hello Group Inc. was RMB1,086.3 million (US$152.7 million) for the first nine months of 2022, compared to RMB1,329.0 million during the same period of 2021.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,397.8 million (US$196.5 million) for the first nine months of 2022, compared to RMB1,756.2 million during the same period of 2021.

Diluted net income per ADS was RMB5.30 (US$0.75) during the first nine months of 2022, compared to RMB6.22 in the same period of 2021.

 

4


Non-GAAP diluted net income per ADS (note 1) was RMB6.75 (US$0.95) during the first nine months of 2022, compared to RMB8.14 in the same period of 2021.

Net cash provided by operating activities was RMB688.2 million (US$96.7 million) during the first nine months of 2022, compared to RMB893.7 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 December 8, 2022, the Company has repurchased 12.0 million ADSs for US$56.7 million on the open market under this program, at an average purchase price of US$4.71 per ADS.

Business Outlook

For the fourth quarter of 2022, the Company expects total net revenues to be between RMB3.15 billion to RMB3.25 billion, representing a decrease of 14.3% to 11.5% 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.

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.

 

5


Conference Call

Hello Group’s management will host an earnings conference call on Thursday, December 8, 2022, at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong Time on December 8, 2022).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10027148-ghj92l.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 December 15, 2022. The dial-in details for the replay are as follows:

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

Hong Kong: 800-930-639

Passcode: 10027148

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. Tantan 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@hellogroup.com

 

6


Christensen

In China

Mr. Eric Yuan

Phone: +86-10-5900-1548

E-mail: eric.yuan@christensencomms.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.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 fourth 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 third quarter of 2022 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth 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.

All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.

 

7


Hello Group Inc.

Unaudited Condensed Consolidated Statement of Operations

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

 

     Three months Ended September 30     First nine months Ended September 30  
     2021
RMB
    2022
RMB
    2022
US$
    2021
RMB
    2022
RMB
    2022
US$
 

Net revenues:

            

Live video service

     2,166,733       1,657,531       233,012       6,230,160       4,786,232       672,838  

Value-added service

     1,533,288       1,537,666       216,162       4,496,059       4,557,481       640,681  

Mobile marketing

     43,323       28,243       3,970       133,641       92,029       12,937  

Mobile games

     8,052       7,719       1,085       28,418       50,416       7,087  

Other services

     7,784       1,862       262       13,212       5,356       753  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     3,759,180       3,233,021       454,491       10,901,490       9,491,514       1,334,296  

Cost and expenses:

            

Cost of revenues

     (2,183,337     (1,886,135     (265,149     (6,191,911     (5,505,369     (773,933

Research and development

     (260,939     (245,105     (34,456     (815,757     (733,562     (103,123

Sales and marketing

     (680,896     (467,012     (65,652     (1,944,705     (1,666,542     (234,279

General and administrative

     (194,734     (135,933     (19,109     (459,443     (453,514     (63,754
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (3,319,906     (2,734,185     (384,366     (9,411,816     (8,358,987     (1,175,089

Other operating income

     21,221       21,289       2,993       137,389       85,790       12,060  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     460,495       520,125       73,118       1,627,063       1,218,317       171,267  

Interest income

     93,564       89,274       12,550       284,706       280,761       39,469  

Interest expense

     (18,669     (25,010     (3,516     (55,332     (72,575     (10,202

Other gain or loss, net

     —         40,403       5,680       (18,000     118,325       16,634  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     535,390       624,792       87,832       1,838,437       1,544,828       217,168  

Income tax expenses

     (143,158     (156,041     (21,936     (526,065     (452,860     (63,662
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before share of income on equity method investments

     392,232       468,751       65,896       1,312,372       1,091,968       153,506  

Share of income (loss) on equity method investments

     3,658       (18,880     (2,654     5,961       (8,967     (1,261
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     395,890       449,871       63,242       1,318,333       1,083,001       152,245  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: net loss attributable to non-controlling interest

     (7,301     (964     (136     (10,677     (3,288     (462
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to the shareholders of Hello Group Inc.

     403,191       450,835       63,378       1,329,010       1,086,289       152,707  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to ordinary shareholders

            

Basic

     1.01       1.15       0.16       3.26       2.75       0.39  

Diluted

     0.96       1.10       0.15       3.11       2.65       0.37  

Weighted average shares used in calculating net income per ordinary share

            

Basic

     400,835,428       391,027,485       391,027,485       408,074,205       394,333,009       394,333,009  

Diluted

     437,639,164       423,608,050       423,608,050       444,906,615       429,765,849       429,765,849  

 

8


Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

 

     Three months Ended September 30     First nine months Ended September 30  
     2021     2022     2022     2021     2022     2022  
     RMB     RMB     US$     RMB     RMB     US$  

Net income

     395,890       449,871       63,242       1,318,333       1,083,001       152,245  

Other comprehensive income (loss), net of tax:

            

Foreign currency translation adjustment

     368       (188,343     (26,477     (31,830     (328,832     (46,226
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

     396,258       261,528       36,765       1,286,503       754,169       106,019  

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

     (7,540     10,831       1,523       (13,323     17,710       2,490  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Hello Group Inc.

     403,798       250,697       35,242       1,299,826       736,459       103,529  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

9


Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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

 

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

Assets

        

Current assets

        

Cash and cash equivalents

     5,570,563        3,435,616        482,971  

Short-term deposits

     2,860,000        5,900,000        829,409  

Restricted cash

     —          100,327        14,104  

Accounts receivable, net of allowance for doubtful accounts of RMB15,127 and RMB5,945 as of December 31, 2021 and September 30, 2022, respectively

     205,225        194,344        27,320  

Prepaid expenses and other current assets

     775,072        877,348        123,336  
  

 

 

    

 

 

    

 

 

 

Total current assets

     9,410,860        10,507,635        1,477,140  

Long-term deposits

     7,200,000        3,500,000        492,022  

Long-term restricted cash

     76,471        85,362        12,000  

Right-of-use assets, net

     257,934        142,492        20,031  

Property and equipment, net

     180,664        186,949        26,281  

Intangible assets, net

     27,320        23,482        3,301  

Rental deposits

     19,204        20,737        2,915  

Long-term investments

     820,006        863,452        121,382  

Other non-current assets

     83,930        119,620        16,816  

Deferred tax assets

     34,849        35,836        5,038  
  

 

 

    

 

 

    

 

 

 

Total assets

     18,111,238        15,485,565        2,176,926  
  

 

 

    

 

 

    

 

 

 

Liabilities and equity

        

Current liabilities

        

Accounts payable

     726,207        622,980        87,576  

Deferred revenue

     539,967        467,763        65,757  

Accrued expenses and other current liabilities

     911,050        664,867        93,466  

Amount due to related parties

     5,016        9,443        1,327  

Lease liabilities due within one year

     162,950        102,585        14,421  

Income tax payable

     125,773        74,848        10,522  

Deferred consideration in connection with business acquisitions

     44,802        27,313        3,840  

Convertible Senior Notes-current

     —          2,726,763        383,322  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     2,515,765        4,696,562        660,231  

Deferred tax liabilities

     213,384        37,635        5,291  

Convertible senior notes

     4,565,292        —          —    

Lease liabilities

     103,105        42,578        5,986  

Other non-current liabilities

     128,095        114,577        16,107  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     7,525,641        4,891,352        687,615  

Shareholder’s equity (i)

     10,585,597        10,594,213        1,489,311  
  

 

 

    

 

 

    

 

 

 

Total liabilities and shareholder’s equity

     18,111,238        15,485,565        2,176,926  
  

 

 

    

 

 

    

 

 

 

 

(i):

As of September 30, 2022, the number of ordinary shares outstanding was 385,309,239.

 

10


Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

 

     Three months     First nine months  
     Ended September 30     Ended September 30  
     2021     2022     2022     2021     2022     2022  
     RMB     RMB     US$     RMB     RMB     US$  

Cash flows from operating activities:

            

Net income

     395,890       449,871       63,242       1,318,333       1,083,001       152,245  

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

            

Depreciation of property and equipment

     38,696       27,047       3,802       121,311       83,107       11,683  

Amortization of intangible assets

     34,722       1,279       180       107,783       3,837       539  

Share-based compensation

     143,280       84,976       11,945       349,195       311,540       43,797  

Share of income (loss) on equity method investments

     (3,658     18,880       2,654       (5,961     8,967       1,261  

Gain on repurchase of convertible senior notes

     —         (51,653     (7,261     —         (129,575     (18,215

Loss on long-term investments

     —         11,250       1,581       18,000       11,250       1,581  

Gain on disposal of subsidiaries

     —         —         —         (15,526     —         —    

Cash received on distributions from equity method investments

     —         —         —         —         1,708       240  

Loss or gain on disposal of property and equipment

     2,351       (923     (130     1,272       (783     (110

Provision of losses on receivable and other assets

     (322     (820     (115     242       (453     (64

Changes in operating assets and liabilities:

            

Accounts receivable

     (1,616     22,973       3,229       (24,358     15,695       2,206  

Prepaid expenses and other current assets

     (85,048     41,418       5,822       (203,666     (16,144     (2,269

Rental deposits

     (922     716       101       (1,514     1,399       197  

Deferred tax assets

     (782     590       83       (2,016     (986     (139

Other non-current assets

     (57,100     16,130       2,268       (8,050     76,820       10,799  

Accounts payable

     (28,400     (438     (62     19,422       (106,392     (14,956

Income tax payable

     24,947       (15,635     (2,198     (71,431     (50,923     (7,159

Deferred revenue

     9,369       (19,356     (2,721     25,454       (73,891     (10,387

Accrued expenses and other current liabilities

     56,954       (108,513     (15,255     (38,829     (304,346     (42,784

Amount due to related parties

     1,860       7,824       1,100       (4,696     4,427       622  

Deferred tax liabilities

     (8,676     (14,425     (2,028     (26,941     (171,752     (24,145

Share-based compensation liability

     —         —         —         (678,153     —         —    

Other non-current liabilities

     38,335       (26,655     (3,747     13,818       (58,311     (8,197
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     559,880       444,536       62,490       893,689       688,195       96,745  

Cash flows from investing activities:

            

Purchase of property and equipment

     (30,919     (27,051     (3,803     (76,122     (70,392     (9,896

Payment for long-term investments

     —         —         —         (300,000     (55,343     (7,780

Purchase of short-term deposits

     (2,100,000     (1,700,000     (238,982     (4,576,688     (1,700,000     (238,982

Cash received on maturity of short-term deposits

     3,458,658       2,700,000       379,560       6,117,570       3,710,000       521,544  

Cash received on investment income distribution

     —         —         —         5,610       3,523       495  

Cash of disposed subsidiaries

     —         —         —         (8,750     —         —    

Purchase of long-term deposits

     —         (1,000,000     (140,578     (250,000     (2,550,000     (358,473

Cash received on maturity of long-term deposits

     —         —         —         —         1,200,000       168,693  

Other investing activities

     13       2,781       391       2,406       3,103       436  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     1,327,752       (24,270     (3,412     914,026       540,891       76,037  

Cash flows from financing activities:

            

Deferred payment for business acquisition

     —         (15,858     (2,229     (12,907     (21,421     (3,011

Proceeds from exercise of share options

     461       18       3       771       51       7  

Payment in relation to the share repurchase program

     (756,714     (285,355     (40,115     (862,865     (287,690     (40,443

Repurchase of subsidiary’s share options

     (48,489     (14,330     (2,014     (54,050     (39,867     (5,604

Dividends payment

     —         —         —         (852,743     (840,997     (118,225

Payment for redemption of convertible bonds

     —         (1,024,443     (144,014     —         (2,136,987     (300,413
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (804,742     (1,339,968     (188,369     (1,781,794     (3,326,911     (467,689

Effect of exchange rate changes

     (3,661     (6,190     (869     (28,697     72,096       10,135  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     1,079,229       (925,892     (130,160     (2,776     (2,025,729     (284,772

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

     2,284,067       4,547,197       639,235       3,366,072       5,647,034       793,847  

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

     3,363,296       3,621,305       509,075       3,363,296       3,621,305       509,075  

 

11


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

Cost of revenues

     (2,183,337     17,286        6,623        —         (2,159,428     (1,886,135     1,496        (1,884,639     (265,149     210        (264,939

Research and development

     (260,939     —          29,094        —         (231,845     (245,105     21,713        (223,392     (34,456     3,052        (31,404

Sales and marketing

     (680,896     16,165        27,653        —         (637,078     (467,012     8,453        (458,559     (65,652     1,188        (64,464

General and administrative

     (194,734     —          79,910        —         (114,824     (135,933     53,314        (82,619     (19,109     7,495        (11,614
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Cost and operating expenses

     (3,319,906     33,451        143,280        —         (3,143,175     (2,734,185     84,976        (2,649,209     (384,366     11,945        (372,421

Income from operations

     460,495       33,451        143,280        —         637,226       520,125       84,976        605,101       73,118       11,945        85,063  

Net income attributable to Hello Group Inc.

     403,191       33,451        143,280        (8,363     571,559       450,835       84,976        535,811       63,378       11,945        75,323  

 

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-continued.

 

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

Cost of revenues

     (6,191,911     51,853        14,548        —         (6,125,510     (5,505,369     12,488        (5,492,881     (773,933     1,756        (772,177

Research and development

     (815,757     3,660        103,268        —         (708,829     (733,562     66,652        (666,910     (103,123     9,370        (93,753

Sales and marketing

     (1,944,705     48,491        59,797        —         (1,836,417     (1,666,542     29,952        (1,636,590     (234,279     4,211        (230,068

General and administrative

     (459,443     —          171,582        —         (287,861     (453,514     202,448        (251,066     (63,754     28,460        (35,294
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Cost and operating expenses

     (9,411,816     104,004        349,195        —         (8,958,617     (8,358,987     311,540        (8,047,447     (1,175,089     43,797        (1,131,292

Income from operations

     1,627,063       104,004        349,195        —         2,080,262       1,218,317       311,540        1,529,857       171,267       43,797        215,064  

Net income attributable to Hello Group Inc.

     1,329,010       104,004        349,195        (26,002     1,756,207       1,086,289       311,540        1,397,829       152,707       43,797        196,504  

 

(ii)

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

 

13


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

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

Net revenues:

          

Live video service

     1,517,872       139,659       —         1,657,531       233,012  

Value-added service

     1,336,050       201,616       —         1,537,666       216,162  

Mobile marketing

     28,243       —         —         28,243       3,970  

Mobile games

     7,719       —         —         7,719       1,085  

Other services

     1,126       —         736       1,862       262  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     2,891,010       341,275       736       3,233,021       454,491  

Cost and expenses (iii):

          

Cost of revenues

     (1,704,934     (180,277     (924     (1,886,135     (265,149

Research and development

     (176,727     (68,378     —         (245,105     (34,456

Sales and marketing

     (335,350     (130,222     (1,440     (467,012     (65,652

General and administrative

     (124,184     (8,574     (3,175     (135,933     (19,109
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (2,341,195     (387,451     (5,539     (2,734,185     (384,366

Other operating income

     19,563       1,722       4       21,289       2,993  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     569,378       (44,454     (4,799     520,125       73,118  

Interest income

     89,003       187       84       89,274       12,550  

Interest expense

     (25,010     —         —         (25,010     (3,516

Other gain or loss, net

     40,403       —         —         40,403       5,680  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     673,774       (44,267     (4,715     624,792       87,832  

Income tax expenses

     (155,328     (713     —         (156,041     (21,936
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     518,446       (44,980     (4,715     468,751       65,896  

Share of loss on equity method investments

     (18,880     —         —         (18,880     (2,654
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     499,566       (44,980     (4,715     449,871       63,242  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(iii)

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

 

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

Cost of revenues

     1,478        18        —          1,496        210  

Research and development

     15,640        6,073        —          21,713        3,052  

Sales and marketing

     8,446        7        —          8,453        1,188  

General and administrative

     53,272        42        —          53,314        7,495  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     78,836        6,140        —          84,976        11,945  

 

14


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

Income (loss) from operations

     569,378        (44,454     (4,799     520,125        73,118  

Share-based compensation

     78,836        6,140       —         84,976        11,945  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP income (loss) from operations

     648,214        (38,314     (4,799     605,101        85,063  

Net income (loss)

     499,566        (44,980     (4,715     449,871        63,242  

Share-based compensation

     78,836        6,140       —         84,976        11,945  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP net income (loss)

     578,402        (38,840     (4,715     534,847        75,187  

 

15


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

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

Net revenues:

          

Live video service

     1,932,141       234,592       —         2,166,733       336,272  

Value-added service

     1,257,158       276,130       —         1,533,288       237,962  

Mobile marketing

     43,323       —         —         43,323       6,724  

Mobile games

     8,052       —         —         8,052       1,250  

Other services

     5,589       —         2,195       7,784       1,208  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     3,246,263       510,722       2,195       3,759,180       583,416  

Cost and expenses (iv):

          

Cost of revenues

     (1,884,931     (269,376     (29,030     (2,183,337     (338,849

Research and development

     (194,475     (66,464     —         (260,939     (40,497

Sales and marketing

     (336,691     (341,636     (2,569     (680,896     (105,673

General and administrative

     (171,609     (16,321     (6,804     (194,734     (30,222
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (2,587,706     (693,797     (38,403     (3,319,906     (515,241

Other operating income

     17,946       3,270       5       21,221       3,293  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     676,503       (179,805     (36,203     460,495       71,468  

Interest income

     93,174       356       34       93,564       14,521  

Interest expense

     (18,669     —         —         (18,669     (2,897
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     751,008       (179,449     (36,169     535,390       83,092  

Income tax (expenses) benefits

     (143,562     404       —         (143,158     (22,218
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     607,446       (179,045     (36,169     392,232       60,874  

Share of income on equity method investments

     3,658       —         —         3,658       568  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     611,104       (179,045     (36,169     395,890       61,442  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(iv)

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

 

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

Cost of revenues

     2,847        3,776        —          6,623        1,028  

Research and development

     18,071        11,023        —          29,094        4,515  

Sales and marketing

     11,280        16,373        —          27,653        4,292  

General and administrative

     77,616        2,294        —          79,910        12,402  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     109,814        33,466        —          143,280        22,237  

 

 

1 

All translations from RMB to U.S. dollars are made at a rate of RMB6.4434 to US$1.00, the effective noon buying rate for September 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

16


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 September 30, 2021  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Income (loss) from operations

     676,503        (179,805     (36,203     460,495       71,468  

Share-based compensation

     109,814        33,466       —         143,280       22,237  

Amortization of intangible assets from business acquisitions

     —          33,451       —         33,451       5,192  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income (loss) from operations

     786,317        (112,888     (36,203     637,226       98,897  

Net income (loss)

     611,104        (179,045     (36,169     395,890       61,442  

Share-based compensation

     109,814        33,466       —         143,280       22,237  

Amortization of intangible assets from business acquisitions

     —          33,451       —         33,451       5,192  

Tax impacts

     —          (8,363     —         (8,363     (1,298
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

     720,918        (120,491     (36,169     564,258       87,573  

 

17


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     First nine months  
   Ended September 30, 2022  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

          

Live video service

     4,404,991       381,241       —         4,786,232       672,838  

Value-added service

     3,917,609       639,872       —         4,557,481       640,681  

Mobile marketing

     92,029       —         —         92,029       12,937  

Mobile games

     50,416       —         —         50,416       7,087  

Other services

     4,298       —         1,058       5,356       753  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     8,469,343       1,021,113       1,058       9,491,514       1,334,296  

Cost and expenses (v):

          

Cost of revenues

     (4,981,345     (522,188     (1,836     (5,505,369     (773,933

Research and development

     (536,640     (196,922     —         (733,562     (103,123

Sales and marketing

     (1,039,526     (623,680     (3,336     (1,666,542     (234,279

General and administrative

     (415,954     (25,335     (12,225     (453,514     (63,754
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (6,973,465     (1,368,125     (17,397     (8,358,987     (1,175,089

Other operating income

     76,253       9,491       46       85,790       12,060  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     1,572,131       (337,521     (16,293     1,218,317       171,267  

Interest income

     280,252       291       218       280,761       39,469  

Interest expense

     (72,575     —         —         (72,575     (10,202

Other gain or loss, net

     118,325       —         —         118,325       16,634  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,898,133       (337,230     (16,075     1,544,828       217,168  

Income tax expenses

     (451,061     (1,799     —         (452,860     (63,662
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,447,072       (339,029     (16,075     1,091,968       153,506  

Share of loss on equity method investments

     (8,967     —         —         (8,967     (1,261
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     1,438,105       (339,029     (16,075     1,083,001       152,245  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(v)

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

 

     First nine months  
     Ended September 30, 2022  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

     5,477        7,011        —          12,488        1,756  

Research and development

     51,752        14,900        —          66,652        9,370  

Sales and marketing

     29,729        223        —          29,952        4,211  

General and administrative

     202,319        129        —          202,448        28,460  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     289,277        22,263        —          311,540        43,797  

 

18


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 nine months  
     ended September 30, 2022  
     Momo      Tantan     QOOL     Total      Total  
     RMB      RMB     RMB     RMB      US$  

Operating income (loss)

     1,572,131        (337,521     (16,293     1,218,317        171,267  

Share-based compensation

     289,277        22,263       —         311,540        43,797  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP operating income (loss)

     1,861,408        (315,258     (16,293     1,529,857        215,064  

Net income (loss)

     1,438,105        (339,029     (16,075     1,083,001        152,245  

Share-based compensation

     289,277        22,263       —         311,540        43,797  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP net income (loss)

     1,727,382        (316,766     (16,075     1,394,541        196,042  

 

19


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     First nine months  
   Ended September 30, 2021  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

          

Live video service

     5,527,851       702,309       —         6,230,160       966,906  

Value-added service

     3,606,393       889,666       —         4,496,059       697,777  

Mobile marketing

     133,641       —         —         133,641       20,741  

Mobile games

     28,418       —         —         28,418       4,410  

Other services

     9,263       —         3,949       13,212       2,051  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     9,305,566       1,591,975       3,949       10,901,490       1,691,885  

Cost and expenses (vi):

          

Cost of revenues

     (5,338,330     (816,562     (37,019     (6,191,911     (960,970

Research and development

     (595,176     (220,581     —         (815,757     (126,604

Sales and marketing

     (1,042,458     (898,612     (3,635     (1,944,705     (301,813

General and administrative

     (471,965     28,763       (16,241     (459,443     (71,304
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (7,447,929     (1,906,992     (56,895     (9,411,816     (1,460,691

Other operating income

     103,352       34,006       31       137,389       21,322  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     1,960,989       (281,011     (52,915     1,627,063       252,516  

Interest income

     283,629       952       125       284,706       44,186  

Interest expense

     (55,332     —         —         (55,332     (8,587

Other gain or loss, net

     (18,000     —         —         (18,000     (2,794
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     2,171,286       (280,059     (52,790     1,838,437       285,321  

Income tax (expenses) benefits

     (533,508     7,443       —         (526,065     (81,644
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,637,778       (272,616     (52,790     1,312,372       203,677  

Share of income on equity method investments

     5,961       —         —         5,961       925  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     1,643,739       (272,616     (52,790     1,318,333       204,602  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(vi)

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

 

     First nine months  
     ended September 30, 2021  
     Momo      Tantan     QOOL      Total      Total  
     RMB      RMB     RMB      RMB      US$  

Cost of revenues

     7,812        6,736       —          14,548        2,258  

Research and development

     78,259        25,009       —          103,268        16,027  

Sales and marketing

     37,157        22,640       —          59,797        9,280  

General and administrative

     238,408        (66,826     —          171,582        26,629  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total cost and expenses

     361,636        (12,441     —          349,195        54,194  

 

20


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 nine months  
     ended September 30, 2021  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Operating income (loss)

     1,960,989        (281,011     (52,915     1,627,063       252,516  

Share-based compensation

     361,636        (12,441     —         349,195       54,194  

Amortization of intangible assets from business acquisitions

     —          104,004       —         104,004       16,141  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income (loss)

     2,322,625        (189,448     (52,915     2,080,262       322,851  

Net income (loss)

     1,643,739        (272,616     (52,790     1,318,333       204,602  

Share-based compensation

     361,636        (12,441     —         349,195       54,194  

Amortization of intangible assets from business acquisitions

     —          104,004       —         104,004       16,141  

Tax impacts

     —          (26,002     —         (26,002     (4,035
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

     2,005,375        (207,055     (52,790     1,745,530       270,902  

 

21