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 2023
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 ☐
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/ Cathy Hui Peng | ||
| Name | : | Cathy Hui Peng | ||
| Title | : | Chief Financial Officer | ||
Date: December 8, 2023
Exhibit Index
Exhibit 99.1
Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2023
BEIJING, CHINA, December 8, 2023 – 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 2023.
Third Quarter of 2023 Highlights
| • | Net revenues decreased by 5.9% year over year to RMB3,042.8 million (US$417.1 million*) in the third quarter of 2023. |
| • | Net income attributable to Hello Group Inc. increased to RMB546.4 million (US$74.9 million) in the third quarter of 2023, from RMB450.8 million in the same period of 2022. |
| • | Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB605.9 million (US$83.0 million) in the third quarter of 2023, from RMB535.8 million in the same period of 2022. |
| • | Diluted net income per American Depositary Share (“ADS”) was RMB2.75 (US$0.38) in the third quarter of 2023, compared to RMB2.20 in the same period of 2022. |
| • | Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.42) in the third quarter of 2023, compared to RMB2.60 in the same period of 2022. |
| • | Monthly Active Users (“MAU”) on Tantan application were 15.7 million in September 2023, compared to 20.9 million in September 2022. |
| • | For the Momo app total paying users was 7.8 million for the third quarter of 2023, compared to 8.4 million for the same period last year. Tantan had 1.4 million paying users for the third quarter of 2023 compared to 2.0 million from the year ago period. |
First Nine Months of 2023 Highlights
| • | Net revenues decreased by 5.2% year over year to RMB8,999.4 million (US$1,233.5 million) for the first nine months of 2023. |
| • | Net income attributable to Hello Group Inc. was RMB1,505.1 million (US$206.3 million) for the first nine months of 2023, compared to RMB1,086.3 million during the same period of 2022. |
| • | Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,710.0 million (US$234.4 million) for the first nine months of 2023, compared to RMB1,397.8 million during the same period of 2022. |
| • | Diluted net income per ADS was RMB7.52 (US$1.03) for the first nine months of 2023, compared to RMB5.30 during the same period of 2022. |
| • | Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17) for the first nine months of 2023, compared to RMB6.75 during the same period of 2022. |
“We are pleased to report strong financial results for the third quarter and steady progress on various strategic priorities across all business lines.” commented Yan Tang, Chairman and CEO of Hello Group. “The group level profitability continued to grow from the prior year period, thanks to our effective cost optimization and efficiency improvement initiatives, which enabled us to maintain the stability of Momo cash cow business, turn Tantan profitable as well as support the development of new endeavors.”
| * | This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate 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 RMB7.2960 to US$1.00, the effective noon buying rate for September 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board. |
1
Third Quarter of 2023 Financial Results
Net revenues
Total net revenues were RMB3,042.8 million (US$417.1 million) in the third quarter of 2023, a decrease of 5.9% from RMB3,233.0 million in the third quarter of 2022.
Live video service revenues were RMB1,530.8 million (US$209.8 million) in the third quarter of 2023, a decrease of 7.6% from RMB1,657.5 million during the same period of 2022. The decrease was primarily attributable to a soft consumer sentiment in the current macro environment, and to a lesser degree, Tantan pivoting away from the live video service which we deem not the priority for Tantan at this point for the dating service.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,466.7 million (US$201.0 million) in the third quarter of 2023, a decrease of 4.6% from RMB1,537.7 million during the same period of 2022. The decrease was primarily due to the impact of the macro economy on consumer sentiment as well as our proactive product adjustments to improve Momo app’s ecosystem, and to a lesser extent, the decline in Tantan’s paying user as we reduced marketing spending. However, the decrease was partially offset by the rapid revenue growth from the new standalone apps.
Mobile marketing revenues were RMB30.7 million (US$4.2 million) in the third quarter of 2023, an increase of 8.7% from RMB28.2 million during the same period of 2022.
Mobile games revenues were RMB7.9 million (US$1.1 million) in the third quarter of 2023, an increase of 1.9% from RMB7.7 million in the third quarter of 2022.
Net revenues from the Momo segment decreased from RMB2,891.0 million in the third quarter of 2022 to RMB2,743.1 million (US$376.0 million) in the third quarter of 2023, primarily due to the decrease in net revenues from value-added service and live video service on Momo application. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB341.3 million in the third quarter of 2022 to RMB295.0 million (US$40.4 million) in the third quarter of 2023, mainly due to the decrease in net revenues from value-added service, and to a lesser extent, the decrease from live video service.
Cost and expenses
Cost and expenses were RMB2,461.1 million (US$337.3 million) in the third quarter of 2023, a decrease of 10.0% from RMB2,734.2 million in the third quarter of 2022. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service and with virtual gift recipients of virtual gift service on the Momo application. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value; (c) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan’s channel marketing strategy and, to a lesser extent, Momo’s strategy to trim inefficient channel marketing spend.
2
Non-GAAP cost and expenses (note 1) were RMB2,401.6 million (US$329.2 million) in the third quarter of 2023, a decrease of 9.3% from RMB2,649.2 million during the same period of 2022.
Income from operations
Income from operations was RMB621.8 million (US$85.2 million) in the third quarter of 2023, compared to RMB520.1 million during the same period of 2022. Income from operations of the Momo segment was RMB618.6 million (US$84.8 million) in the third quarter of 2023, which increased from RMB569.4 million in the third quarter of 2022. Income from operations of the Tantan segment was RMB24.0 million (US$3.3 million) in the third quarter of 2023, compared to a loss from operations of RMB44.5 million in the third quarter of 2022.
Non-GAAP income from operations (note 1) was RMB681.2 million (US$93.4 million) in the third quarter of 2023, compared to RMB605.1 million during the same period of 2022. Non-GAAP income from operations of the Momo segment was RMB674.5 million (US$92.4 million) in the third quarter of 2023, which increased from RMB648.2 million in the third quarter of 2022. Non-GAAP income from operations of the Tantan segment was RMB27.6 million (US$3.8 million) in the third quarter of 2023, compared to a non-GAAP loss from operations of RMB38.3 million in the third quarter of 2022.
Income tax expenses
Income tax expenses were RMB158.1 million (US$21.7 million) in the third quarter of 2023, compared to RMB156.0 million in the third quarter of 2022. The increase in income tax expenses was primarily due to the higher profit in the third quarter of 2023.
Net income
Net income was RMB542.2 million (US$74.3 million) in the third quarter of 2023, compared to RMB449.9 million during the same period of 2022. Net income from the Momo segment was RMB540.0 million (US$74.0 million) in the third quarter of 2023, compared to RMB499.6 million in the same period of 2022. Net income from the Tantan segment was RMB23.0 million (US$3.2 million) in the third quarter of 2023, compared to a net loss of RMB45.0 million in the third quarter of 2022.
Non-GAAP net income (note 1) was RMB601.6 million (US$82.5 million) in the third quarter of 2023, compared to RMB534.8 million during the same period of 2022. Non-GAAP net income from the Momo segment was RMB595.9 million (US$81.7million) in the third quarter of 2023, which increased from RMB578.4 million in the third quarter of 2022. Non-GAAP net income of the Tantan segment was RMB26.6 million (US$3.6 million) in the third quarter of 2023, compared to a non-GAAP net loss of RMB38.8 million in the third quarter of 2022.
Net income attributable to Hello Group Inc.
Net income attributable to Hello Group Inc. was RMB546.4 million (US$74.9 million) in the third quarter of 2023, compared to RMB450.8 million during the same period of 2022.
Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB605.9 million (US$83.0 million) in the third quarter of 2023, compared to RMB535.8 million during the same period of 2022.
3
Net income per ADS
Diluted net income per ADS was RMB2.75 (US$0.38) in the third quarter of 2023, compared to RMB2.20 in the third quarter of 2022.
Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.42) in the third quarter of 2023, compared to RMB2.60 in the third quarter of 2022.
Cash and cash flow
As of September 30, 2023, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term investments, short-term restricted cash and long-term restricted cash totaled RMB13,644.6 million (US$1,870.1 million), compared to RMB13,398.8 million as of December 31, 2022.
Net cash provided by operating activities in the third quarter of 2023 was RMB582.5 million (US$79.8 million), compared to RMB444.5 million in the third quarter of 2022.
First Nine Months of 2023 Financial Results
Net revenues for the first nine months of 2023 were RMB8,999.4 million (US$1,233.5 million), a decrease of 5.2% from RMB9,491.5 million in the same period of 2022.
Net income attributable to Hello Group Inc. was RMB1,505.1 million (US$206.3 million) for the first nine months of 2023, compared to RMB1,086.3 million during the same period of 2022.
Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,710.0 million (US$234.4 million) for the first nine months of 2023, compared to RMB1,397.8 million during the same period of 2022.
Diluted net income per ADS was RMB7.52 (US$1.03) during the first nine months of 2023, compared to RMB5.30 in the same period of 2022.
Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17) during the first nine months of 2023, compared to RMB6.75 in the same period of 2022.
Net cash provided by operating activities was RMB1,861.3 million (US$255.1 million) during the first nine months of 2023, compared to RMB688.2 million in the same period of 2022.
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, 2023, the Company has repurchased 16.2 million ADSs for US$86.1 million on the open market under this program, at an average purchase price of US$5.31 per ADS.
4
Business Outlook
For the fourth quarter of 2023, the Company expects total net revenues to be between RMB2.9 billion to RMB3.0 billion, representing a decrease of 9.7% to 6.6% year over year. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP cost and operating expenses, income (loss) from operations, net income (loss), net income attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation. A limitation of using these non-GAAP financial measures is that share-based compensation has 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 Friday, December 8, 2023, at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on December 8, 2023).
Participants can register for the conference call by navigating to:
https://s1.c-conf.com/diamondpass/10035226-k7h0xo.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, 2023. The dial-in details for the replay are as follows:
U.S. / Canada: 1-855-883-1031
Hong Kong: 800-930-639
Passcode: 10035226
5
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
Christensen
In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: Xiaoyan.Su@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 2023, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.
6
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 2023 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2023 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 | First nine months | |||||||||||||||||||||||
| Ended September 30 | Ended September 30 | |||||||||||||||||||||||
| 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | |||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Net revenues: |
||||||||||||||||||||||||
| Live video service |
1,657,531 | 1,530,797 | 209,813 | 4,786,232 | 4,548,986 | 623,490 | ||||||||||||||||||
| Value-added service |
1,537,666 | 1,466,727 | 201,031 | 4,557,481 | 4,327,678 | 593,158 | ||||||||||||||||||
| Mobile marketing |
28,243 | 30,705 | 4,208 | 92,029 | 88,762 | 12,166 | ||||||||||||||||||
| Mobile games |
7,719 | 7,864 | 1,078 | 50,416 | 14,169 | 1,942 | ||||||||||||||||||
| Other services |
1,862 | 6,754 | 927 | 5,356 | 19,796 | 2,713 | ||||||||||||||||||
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|||||||||||||
| Total net revenues |
3,233,021 | 3,042,847 | 417,057 | 9,491,514 | 8,999,391 | 1,233,469 | ||||||||||||||||||
| Cost and expenses: |
||||||||||||||||||||||||
| Cost of revenues |
(1,886,135 | ) | (1,771,530 | ) | (242,808 | ) | (5,505,369 | ) | (5,255,277 | ) | (720,296 | ) | ||||||||||||
| Research and development |
(245,105 | ) | (201,693 | ) | (27,644 | ) | (733,562 | ) | (653,145 | ) | (89,521 | ) | ||||||||||||
| Sales and marketing |
(467,012 | ) | (373,942 | ) | (51,253 | ) | (1,666,542 | ) | (1,110,253 | ) | (152,173 | ) | ||||||||||||
| General and administrative |
(135,933 | ) | (113,896 | ) | (15,611 | ) | (453,514 | ) | (376,981 | ) | (51,670 | ) | ||||||||||||
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| Total cost and expenses |
(2,734,185 | ) | (2,461,061 | ) | (337,316 | ) | (8,358,987 | ) | (7,395,656 | ) | (1,013,660 | ) | ||||||||||||
| Other operating income, net |
21,289 | 39,971 | 5,478 | 85,790 | 99,284 | 13,608 | ||||||||||||||||||
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| Income from operations |
520,125 | 621,757 | 85,219 | 1,218,317 | 1,703,019 | 233,417 | ||||||||||||||||||
| Interest income |
89,274 | 96,791 | 13,266 | 280,761 | 311,899 | 42,749 | ||||||||||||||||||
| Interest expense |
(25,010 | ) | (19,293 | ) | (2,644 | ) | (72,575 | ) | (41,671 | ) | (5,711 | ) | ||||||||||||
| Other gain or loss, net |
40,403 | — | — | 118,325 | 4,565 | 626 | ||||||||||||||||||
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| Income before income tax and share of income on equity method investments |
624,792 | 699,255 | 95,841 | 1,544,828 | 1,977,812 | 271,081 | ||||||||||||||||||
| Income tax expenses |
(156,041 | ) | (158,064 | ) | (21,664 | ) | (452,860 | ) | (446,646 | ) | (61,218 | ) | ||||||||||||
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| Income before share of income on equity method investments |
468,751 | 541,191 | 74,177 | 1,091,968 | 1,531,166 | 209,863 | ||||||||||||||||||
| Share of (loss) income on equity method investments |
(18,880 | ) | 974 | 133 | (8,967 | ) | (31,940 | ) | (4,378 | ) | ||||||||||||||
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| Net income |
449,871 | 542,165 | 74,310 | 1,083,001 | 1,499,226 | 205,485 | ||||||||||||||||||
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| Less: net loss attributable to non-controlling interest |
(964 | ) | (4,263 | ) | (584 | ) | (3,288 | ) | (5,886 | ) | (807 | ) | ||||||||||||
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| Net income attributable to the shareholders of Hello Group Inc. |
450,835 | 546,428 | 74,894 | 1,086,289 | 1,505,112 | 206,292 | ||||||||||||||||||
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| Net income per share attributable to ordinary shareholders |
||||||||||||||||||||||||
| Basic |
1.15 | 1.44 | 0.20 | 2.75 | 3.98 | 0.55 | ||||||||||||||||||
| Diluted |
1.10 | 1.37 | 0.19 | 2.65 | 3.76 | 0.52 | ||||||||||||||||||
| Weighted average shares used in calculating net income per ordinary share |
||||||||||||||||||||||||
| Basic |
391,027,485 | 379,292,110 | 379,292,110 | 394,333,009 | 378,085,030 | 378,085,030 | ||||||||||||||||||
| Diluted |
423,608,050 | 398,296,690 | 398,296,690 | 429,765,849 | 405,490,366 | 405,490,366 | ||||||||||||||||||
8
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in thousands, except share and per share data)
| Three months | First nine months | |||||||||||||||||||||||
| Ended September 30 | Ended September 30 | |||||||||||||||||||||||
| 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | |||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Net income |
449,871 | 542,165 | 74,310 | 1,083,001 | 1,499,226 | 205,485 | ||||||||||||||||||
| Other comprehensive (loss) income, net of tax: |
||||||||||||||||||||||||
| Foreign currency translation adjustment |
(188,343 | ) | 6,032 | 827 | (328,832 | ) | 116,188 | 15,925 | ||||||||||||||||
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|||||||||||||
| Comprehensive income |
261,528 | 548,197 | 75,137 | 754,169 | 1,615,414 | 221,410 | ||||||||||||||||||
| Less: comprehensive income (loss) attributed to the non-controlling interest |
10,831 | (3,141 | ) | (431 | ) | 17,710 | 5,377 | 737 | ||||||||||||||||
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|||||||||||||
| Comprehensive income attributable to Hello Group Inc. |
250,697 | 551,338 | 75,568 | 736,459 | 1,610,037 | 220,673 | ||||||||||||||||||
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9
Hello Group Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except share and per share data)
| December 31 | September 30 | September 30 | ||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Assets |
||||||||||||
| Current assets |
||||||||||||
| Cash and cash equivalents |
5,018,129 | 4,994,558 | 684,561 | |||||||||
| Short-term deposits |
5,300,000 | 1,885,005 | 258,361 | |||||||||
| Restricted cash |
97,706 | 9,245 | 1,267 | |||||||||
| Short-term investments |
300,240 | 308,550 | 42,290 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts of RMB5,870 and RMB13,365 as of December 31, 2022 and September 30, 2023, respectively |
188,711 | 192,849 | 26,432 | |||||||||
| Amounts due from related parties |
55 | 7,114 | 975 | |||||||||
| Prepaid expenses and other current assets |
819,706 | 712,236 | 97,620 | |||||||||
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| Total current assets |
11,724,547 | 8,109,557 | 1,111,506 | |||||||||
| Long-term deposits |
2,600,000 | 3,809,200 | 522,094 | |||||||||
| Long-term restricted cash |
82,766 | 2,638,015 | 361,570 | |||||||||
| Right-of-use assets, net |
115,520 | 127,804 | 17,517 | |||||||||
| Property and equipment, net |
172,984 | 358,361 | 49,117 | |||||||||
| Intangible assets, net |
22,203 | 18,365 | 2,517 | |||||||||
| Rental deposits |
20,737 | 18,486 | 2,534 | |||||||||
| Long-term investments |
893,988 | 860,306 | 117,915 | |||||||||
| Amounts due from RPT-non current |
— | 20,000 | 2,741 | |||||||||
| Other non-current assets |
162,499 | 177,853 | 24,377 | |||||||||
| Deferred tax assets |
34,343 | 33,470 | 4,587 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total assets |
15,829,587 | 16,171,417 | 2,216,475 | |||||||||
|
|
|
|
|
|
|
|||||||
| Liabilities and equity |
||||||||||||
| Current liabilities |
||||||||||||
| Accounts payable |
617,022 | 642,886 | 88,113 | |||||||||
| Deferred revenue |
484,775 | 474,647 | 65,056 | |||||||||
| Accrued expenses and other current liabilities |
797,504 | 648,156 | 88,837 | |||||||||
| Amounts due to related parties |
9,178 | 3,675 | 504 | |||||||||
| Lease liabilities due within one year |
88,352 | 56,681 | 7,769 | |||||||||
| Income tax payable |
68,765 | 89,263 | 12,235 | |||||||||
| Dividends payable |
— | 21,012 | 2,879 | |||||||||
| Deferred consideration in connection with business acquisitions |
26,483 | 28,014 | 3,840 | |||||||||
| Long-term borrowings, current portion |
— | 215,615 | 29,552 | |||||||||
| Convertible senior notes-current |
2,646,168 | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current liabilities |
4,738,247 | 2,179,949 | 298,785 | |||||||||
| Deferred tax liabilities |
22,011 | 151,578 | 20,775 | |||||||||
| Convertible Senior Notes |
— | 20,094 | 2,754 | |||||||||
| Long-term borrowings |
— | 1,938,385 | 265,678 | |||||||||
| Lease liabilities |
33,281 | 66,285 | 9,085 | |||||||||
| Other non-current liabilities |
105,410 | 95,958 | 13,152 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
4,898,949 | 4,452,249 | 610,229 | |||||||||
| Shareholder’s equity (i) |
10,930,638 | 11,719,168 | 1,606,246 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities and shareholder’s equity |
15,829,587 | 16,171,417 | 2,216,475 | |||||||||
|
|
|
|
|
|
|
|||||||
| (i): | As of September 30, 2023, the number of ordinary shares outstanding was 379,881,912. |
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 | |||||||||||||||||||||||
| 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | |||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Cash flows from operating activities: |
||||||||||||||||||||||||
| Net income |
449,871 | 542,165 | 74,310 | 1,083,001 | 1,499,226 | 205,485 | ||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||||||||||
| Depreciation of property and equipment |
27,047 | 17,467 | 2,394 | 83,107 | 59,098 | 8,100 | ||||||||||||||||||
| Amortization of intangible assets |
1,279 | 1,279 | 175 | 3,837 | 3,837 | 526 | ||||||||||||||||||
| Share-based compensation |
84,976 | 59,472 | 8,151 | 311,540 | 204,877 | 28,081 | ||||||||||||||||||
| Share of loss (income) on equity method investments |
18,880 | (974 | ) | (133 | ) | 8,967 | 31,940 | 4,378 | ||||||||||||||||
| Gain on repurchase of convertible senior notes |
(51,653 | ) | — | — | (129,575 | ) | (4,565 | ) | (626 | ) | ||||||||||||||
| Loss on long-term investments |
11,250 | — | — | 11,250 | — | — | ||||||||||||||||||
| Cash received on distributions from equity method investments |
— | 718 | 98 | 1,708 | 2,067 | 283 | ||||||||||||||||||
| Gain or loss on disposal of property and equipment |
(923 | ) | (60 | ) | (8 | ) | (783 | ) | (520 | ) | (71 | ) | ||||||||||||
| Provision of (income) loss on receivable and other assets |
(820 | ) | (133 | ) | (18 | ) | (453 | ) | 10,071 | 1,380 | ||||||||||||||
| Changes in operating assets and liabilities: |
||||||||||||||||||||||||
| Accounts receivable |
22,973 | 10,749 | 1,473 | 15,695 | (9,916 | ) | (1,359 | ) | ||||||||||||||||
| Prepaid expenses and other current assets |
41,418 | (96,572 | ) | (13,236 | ) | (16,144 | ) | 98,294 | 13,472 | |||||||||||||||
| Amounts due from related parties |
— | (27,114 | ) | (3,716 | ) | — | (27,059 | ) | (3,709 | ) | ||||||||||||||
| Rental deposits |
716 | 1,301 | 178 | 1,399 | 2,252 | 309 | ||||||||||||||||||
| Deferred tax assets |
590 | 415 | 57 | (986 | ) | 872 | 120 | |||||||||||||||||
| Other non-current assets |
16,130 | (50,578 | ) | (6,932 | ) | 76,820 | (27,639 | ) | (3,788 | ) | ||||||||||||||
| Accounts payable |
(438 | ) | 6,987 | 958 | (106,392 | ) | 38,825 | 5,321 | ||||||||||||||||
| Income tax payable |
(15,635 | ) | 24,215 | 3,319 | (50,923 | ) | 20,496 | 2,809 | ||||||||||||||||
| Deferred revenue |
(19,356 | ) | 11,736 | 1,609 | (73,891 | ) | (11,137 | ) | (1,526 | ) | ||||||||||||||
| Accrued expenses and other current liabilities |
(108,513 | ) | 15,374 | 2,107 | (304,346 | ) | (172,186 | ) | (23,600 | ) | ||||||||||||||
| Amount due to related parties |
7,824 | (8,401 | ) | (1,151 | ) | 4,427 | (5,504 | ) | (754 | ) | ||||||||||||||
| Deferred tax liabilities |
(14,425 | ) | 47,681 | 6,535 | (171,752 | ) | 130,198 | 17,845 | ||||||||||||||||
| Other non-current liabilities |
(26,655 | ) | 26,741 | 3,665 | (58,311 | ) | 17,757 | 2,434 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net cash provided by operating activities |
444,536 | 582,468 | 79,835 | 688,195 | 1,861,284 | 255,110 | ||||||||||||||||||
| Cash flows from investing activities: |
||||||||||||||||||||||||
| Purchase of property and equipment |
(27,051 | ) | (238,219 | ) | (32,651 | ) | (70,392 | ) | (259,463 | ) | (35,562 | ) | ||||||||||||
| Payment for long-term investments |
— | — | — | (55,343 | ) | (9,000 | ) | (1,234 | ) | |||||||||||||||
| Purchase of short-term deposits |
(1,700,000 | ) | (531,214 | ) | (72,809 | ) | (1,700,000 | ) | (1,028,556 | ) | (140,975 | ) | ||||||||||||
| Cash received on maturity of short-term deposits |
2,700,000 | 1,900,000 | 260,417 | 3,710,000 | 5,409,820 | 741,478 | ||||||||||||||||||
| Cash received on investment income distribution |
— | — | — | 3,523 | 1,517 | 208 | ||||||||||||||||||
| Purchase of long-term deposits |
(1,000,000 | ) | (2,498,860 | ) | (342,497 | ) | (2,550,000 | ) | (3,848,860 | ) | (527,530 | ) | ||||||||||||
| Cash received on maturity of long-term deposits |
— | 1,700,000 | 233,004 | 1,200,000 | 1,700,000 | 233,004 | ||||||||||||||||||
| Cash received from sales of long-term investment |
— | 15,000 | 2,056 | — | 15,000 | 2,056 | ||||||||||||||||||
| Other investing activities |
2,781 | 137 | 19 | 3,103 | 1,822 | 250 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net cash (used in) provided by investing activities |
(24,270 | ) | 346,844 | 47,539 | 540,891 | 1,982,280 | 271,695 | |||||||||||||||||
| Cash flows from financing activities: |
||||||||||||||||||||||||
| Deferred payment for business acquisition |
(15,858 | ) | — | — | (21,421 | ) | — | — | ||||||||||||||||
| Proceeds from exercise of share options |
18 | 551 | 76 | 51 | 570 | 78 | ||||||||||||||||||
| Repurchase of ordinary shares |
(285,355 | ) | (58,767 | ) | (8,055 | ) | (287,690 | ) | (62,004 | ) | (8,498 | ) | ||||||||||||
| Repurchase of subsidiary’s share options |
(14,330 | ) | (223 | ) | (31 | ) | (39,867 | ) | (4,319 | ) | (592 | ) | ||||||||||||
| Dividends payment |
— | — | — | (840,997 | ) | (937,249 | ) | (128,461 | ) | |||||||||||||||
| Proceeds from long-term borrowings |
— | 2,154,000 | 295,230 | — | 2,154,000 | 295,230 | ||||||||||||||||||
| Payment for redemption of convertible bonds |
(1,024,443 | ) | (86,932 | ) | (11,915 | ) | (2,136,987 | ) | (2,679,942 | ) | (367,317 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net cash (used in) provided by financing activities |
(1,339,968 | ) | 2,008,629 | 275,305 | (3,326,911 | ) | (1,528,944 | ) | (209,560 | ) | ||||||||||||||
| Effect of exchange rate changes |
(6,190 | ) | (7,837 | ) | (1,075 | ) | 72,096 | 128,597 | 17,625 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net (decrease) increase in cash and cash equivalents |
(925,892 | ) | 2,930,104 | 401,604 | (2,025,729 | ) | 2,443,217 | 334,870 | ||||||||||||||||
| Cash, cash equivalents and restricted cash at the beginning of period |
4,547,197 | 4,711,714 | 645,794 | 5,647,034 | 5,198,601 | 712,528 | ||||||||||||||||||
| Cash, cash equivalents and restricted cash at the end of period |
3,621,305 | 7,641,818 | 1,047,398 | 3,621,305 | 7,641,818 | 1,047,398 | ||||||||||||||||||
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, 2022 | Ended September 30, 2023 | Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||
| GAAP RMB |
Share-based compensation 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 |
(1,886,135 | ) | 1,496 | (1,884,639 | ) | (1,771,530 | ) | 1,211 | (1,770,319 | ) | (242,808 | ) | 166 | (242,642 | ) | |||||||||||||||||||||
| Research and development |
(245,105 | ) | 21,713 | (223,392 | ) | (201,693 | ) | 14,993 | (186,700 | ) | (27,644 | ) | 2,055 | (25,589 | ) | |||||||||||||||||||||
| Sales and marketing |
(467,012 | ) | 8,453 | (458,559 | ) | (373,942 | ) | 5,854 | (368,088 | ) | (51,253 | ) | 802 | (50,451 | ) | |||||||||||||||||||||
| General and administrative |
(135,933 | ) | 53,314 | (82,619 | ) | (113,896 | ) | 37,414 | (76,482 | ) | (15,611 | ) | 5,128 | (10,483 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Cost and operating expenses |
(2,734,185 | ) | 84,976 | (2,649,209 | ) | (2,461,061 | ) | 59,472 | (2,401,589 | ) | (337,316 | ) | 8,151 | (329,165 | ) | |||||||||||||||||||||
| Income from operations |
520,125 | 84,976 | 605,101 | 621,757 | 59,472 | 681,229 | 85,219 | 8,151 | 93,370 | |||||||||||||||||||||||||||
| Net income attributable to Hello Group Inc. |
450,835 | 84,976 | 535,811 | 546,428 | 59,472 | 605,900 | 74,894 | 8,151 | 83,045 | |||||||||||||||||||||||||||
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, 2022 | Ended September 30, 2023 | Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||
| GAAP RMB |
Share-based compensation 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 |
(5,505,369 | ) | 12,488 | (5,492,881 | ) | (5,255,277 | ) | 4,398 | (5,250,879 | ) | (720,296 | ) | 603 | (719,693 | ) | |||||||||||||||||||||
| Research and development |
(733,562 | ) | 66,652 | (666,910 | ) | (653,145 | ) | 51,186 | (601,959 | ) | (89,521 | ) | 7,016 | (82,505 | ) | |||||||||||||||||||||
| Sales and marketing |
(1,666,542 | ) | 29,952 | (1,636,590 | ) | (1,110,253 | ) | 20,413 | (1,089,840 | ) | (152,173 | ) | 2,798 | (149,375 | ) | |||||||||||||||||||||
| General and administrative |
(453,514 | ) | 202,448 | (251,066 | ) | (376,981 | ) | 128,880 | (248,101 | ) | (51,670 | ) | 17,664 | (34,006 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Cost and operating expenses |
(8,358,987 | ) | 311,540 | (8,047,447 | ) | (7,395,656 | ) | 204,877 | (7,190,779 | ) | (1,013,660 | ) | 28,081 | (985,579 | ) | |||||||||||||||||||||
| Income from operations |
1,218,317 | 311,540 | 1,529,857 | 1,703,019 | 204,877 | 1,907,896 | 233,417 | 28,081 | 261,498 | |||||||||||||||||||||||||||
| Net income attributable to Hello Group Inc. |
1,086,289 | 311,540 | 1,397,829 | 1,505,112 | 204,877 | 1,709,989 | 206,292 | 28,081 | 234,373 | |||||||||||||||||||||||||||
13
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
| Three months | ||||||||||||||||||||
| Ended September 30, 2023 | ||||||||||||||||||||
| Momo | Tantan | QOOL | Total | Total | ||||||||||||||||
| RMB | RMB | RMB | RMB | US$ | ||||||||||||||||
| Net revenues: |
||||||||||||||||||||
| Live video service |
1,410,844 | 119,953 | — | 1,530,797 | 209,813 | |||||||||||||||
| Value-added service |
1,298,329 | 168,398 | — | 1,466,727 | 201,031 | |||||||||||||||
| Mobile marketing |
24,039 | 6,666 | — | 30,705 | 4,208 | |||||||||||||||
| Mobile games |
7,864 | — | — | 7,864 | 1,078 | |||||||||||||||
| Other services |
1,981 | — | 4,773 | 6,754 | 927 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total net revenues |
2,743,057 | 295,017 | 4,773 | 3,042,847 | 417,057 | |||||||||||||||
| Cost and expenses (ii): |
||||||||||||||||||||
| Cost of revenues |
(1,606,261 | ) | (145,346 | ) | (19,923 | ) | (1,771,530 | ) | (242,808 | ) | ||||||||||
| Research and development |
(151,649 | ) | (50,044 | ) | — | (201,693 | ) | (27,644 | ) | |||||||||||
| Sales and marketing |
(298,919 | ) | (71,978 | ) | (3,045 | ) | (373,942 | ) | (51,253 | ) | ||||||||||
| General and administrative |
(105,339 | ) | (5,656 | ) | (2,901 | ) | (113,896 | ) | (15,611 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total cost and expenses |
(2,162,168 | ) | (273,024 | ) | (25,869 | ) | (2,461,061 | ) | (337,316 | ) | ||||||||||
| Other operating income, net |
37,750 | 1,985 | 236 | 39,971 | 5,478 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from operations |
618,639 | 23,978 | (20,860 | ) | 621,757 | 85,219 | ||||||||||||||
| Interest income |
96,680 | 94 | 17 | 96,791 | 13,266 | |||||||||||||||
| Interest expense |
(19,293 | ) | — | — | (19,293 | ) | (2,644 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) before income tax and share of income on equity method investments |
696,026 | 24,072 | (20,843 | ) | 699,255 | 95,841 | ||||||||||||||
| Income tax expenses |
(156,992 | ) | (1,072 | ) | — | (158,064 | ) | (21,664 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) before share of income on equity method investments |
539,034 | 23,000 | (20,843 | ) | 541,191 | 74,177 | ||||||||||||||
| Share of loss on equity method investments |
974 | — | — | 974 | 133 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) |
540,008 | 23,000 | (20,843 | ) | 542,165 | 74,310 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (ii) | Share-based compensation was allocated in cost of revenues and operating expenses as follows: |
| Three months | ||||||||||||||||||||
| Ended September 30, 2023 | ||||||||||||||||||||
| Momo | Tantan | QOOL | Total | Total | ||||||||||||||||
| RMB | RMB | RMB | RMB | US$ | ||||||||||||||||
| Cost of revenues |
1,207 | 4 | — | 1,211 | 166 | |||||||||||||||
| Research and development |
11,401 | 3,592 | — | 14,993 | 2,055 | |||||||||||||||
| Sales and marketing |
5,854 | — | — | 5,854 | 802 | |||||||||||||||
| General and administrative |
37,406 | 8 | — | 37,414 | 5,128 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total cost and expenses |
55,868 | 3,604 | — | 59,472 | 8,151 | |||||||||||||||
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, 2023 | ||||||||||||||||||||
| Momo | Tantan | QOOL | Total | Total | ||||||||||||||||
| RMB | RMB | RMB | RMB | US$ | ||||||||||||||||
| Income (loss) from operations |
618,639 | 23,978 | (20,860 | ) | 621,757 | 85,219 | ||||||||||||||
| Share-based compensation |
55,868 | 3,604 | — | 59,472 | 8,151 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP income (loss) from operations |
674,507 | 27,582 | (20,860 | ) | 681,229 | 93,370 | ||||||||||||||
| Net income (loss) |
540,008 | 23,000 | (20,843 | ) | 542,165 | 74,310 | ||||||||||||||
| Share-based compensation |
55,868 | 3,604 | — | 59,472 | 8,151 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP net income (loss) |
595,876 | 26,604 | (20,843 | ) | 601,637 | 82,461 | ||||||||||||||
15
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$1 | ||||||||||||||||
| 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 | |||||||||||||||
| 1 | All translations from RMB to U.S. dollars are made at a rate of RMB7.1135 to US$1.00, the effective noon buying rate for September 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board. |
16
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
| Three months | ||||||||||||||||||||
| Ended September 30, 2022 | ||||||||||||||||||||
| Momo | Tantan | QOOL | Total | Total | ||||||||||||||||
| RMB | RMB | RMB | RMB | US$ | ||||||||||||||||
| 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 | |||||||||||||
17
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
| First nine months | ||||||||||||||||||||
| Ended September 30, 2023 | ||||||||||||||||||||
| Momo | Tantan | QOOL | Total | Total | ||||||||||||||||
| RMB | RMB | RMB | RMB | US$ | ||||||||||||||||
| Net revenues: |
||||||||||||||||||||
| Live video service |
4,144,164 | 404,822 | — | 4,548,986 | 623,490 | |||||||||||||||
| Value-added service |
3,821,183 | 506,495 | — | 4,327,678 | 593,158 | |||||||||||||||
| Mobile marketing |
75,730 | 13,032 | — | 88,762 | 12,166 | |||||||||||||||
| Mobile games |
14,169 | — | — | 14,169 | 1,942 | |||||||||||||||
| Other services |
14,577 | — | 5,219 | 19,796 | 2,713 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total net revenues |
8,069,823 | 924,349 | 5,219 | 8,999,391 | 1,233,469 | |||||||||||||||
| Cost and expenses (iv): |
||||||||||||||||||||
| Cost of revenues |
(4,765,127 | ) | (469,111 | ) | (21,039 | ) | (5,255,277 | ) | (720,296 | ) | ||||||||||
| Research and development |
(483,997 | ) | (169,148 | ) | — | (653,145 | ) | (89,521 | ) | |||||||||||
| Sales and marketing |
(894,462 | ) | (210,208 | ) | (5,583 | ) | (1,110,253 | ) | (152,173 | ) | ||||||||||
| General and administrative |
(349,614 | ) | (19,600 | ) | (7,767 | ) | (376,981 | ) | (51,670 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total cost and expenses |
(6,493,200 | ) | (868,067 | ) | (34,389 | ) | (7,395,656 | ) | (1,013,660 | ) | ||||||||||
| Other operating income |
95,876 | 3,110 | 298 | 99,284 | 13,608 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from operations |
1,672,499 | 59,392 | (28,872 | ) | 1,703,019 | 233,417 | ||||||||||||||
| Interest income |
311,157 | 656 | 86 | 311,899 | 42,749 | |||||||||||||||
| Interest expense |
(41,671 | ) | — | — | (41,671 | ) | (5,711 | ) | ||||||||||||
| Other gain or loss, net |
4,565 | — | — | 4,565 | 626 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) before income tax and share of income on equity method investments |
1,946,550 | 60,048 | (28,786 | ) | 1,977,812 | 271,081 | ||||||||||||||
| Income tax expenses |
(443,175 | ) | (3,471 | ) | — | (446,646 | ) | (61,218 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) before share of income on equity method investments |
1,503,375 | 56,577 | (28,786 | ) | 1,531,166 | 209,863 | ||||||||||||||
| Share of income on equity method investments |
(31,940 | ) | — | — | (31,940 | ) | (4,378 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) |
1,471,435 | 56,577 | (28,786 | ) | 1,499,226 | 205,485 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (iv) | Share-based compensation was allocated in cost of revenues and operating expenses as follows: |
| First nine months | ||||||||||||||||||||
| Ended September 30, 2023 | ||||||||||||||||||||
| Momo | Tantan | QOOL | Total | Total | ||||||||||||||||
| RMB | RMB | RMB | RMB | US$ | ||||||||||||||||
| Cost of revenues |
4,262 | 136 | — | 4,398 | 603 | |||||||||||||||
| Research and development |
36,793 | 14,393 | — | 51,186 | 7,016 | |||||||||||||||
| Sales and marketing |
20,408 | 5 | — | 20,413 | 2,798 | |||||||||||||||
| General and administrative |
128,856 | 24 | — | 128,880 | 17,664 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total cost and expenses |
190,319 | 14,558 | — | 204,877 | 28,081 | |||||||||||||||
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, 2023 | ||||||||||||||||||||
| Momo | Tantan | QOOL | Total | Total | ||||||||||||||||
| RMB | RMB | RMB | RMB | US$ | ||||||||||||||||
| Operating income (loss) |
1,672,498 | 59,392 | (28,871 | ) | 1,703,019 | 233,417 | ||||||||||||||
| Share-based compensation |
190,319 | 14,558 | — | 204,877 | 28,081 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP operating income (loss) |
1,862,817 | 73,950 | (28,871 | ) | 1,907,896 | 261,498 | ||||||||||||||
| Net income (loss) |
1,471,435 | 56,577 | (28,786 | ) | 1,499,226 | 205,485 | ||||||||||||||
| Share-based compensation |
190,319 | 14,558 | — | 204,877 | 28,081 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP net income (loss) |
1,661,754 | 71,135 | (28,786 | ) | 1,704,103 | 233,566 | ||||||||||||||
19
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 | |||||||||||||||
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, 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 | |||||||||||||
21