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 March 2024

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: March 14, 2024


Exhibit Index

Exhibit 99.1—Press Release

EX-99.1

Exhibit 99.1

Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2023

BEIJING, CHINA, March 14, 2024 – Hello Group Inc. (NASDAQ: MOMO) (“Hello Group” or the “Company”), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2023.

Fourth Quarter of 2023 Highlights

 

   

Net revenues decreased by 6.5% year over year to RMB3,002.9 million (US$423.0 million*) in the fourth quarter of 2023.

 

   

Net income attributable to Hello Group Inc. increased to RMB452.5 million (US$63.7 million) in the fourth quarter of 2023, from RMB398.0 million in the same period of 2022.

 

   

Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB514.7 million (US$72.5 million) in the fourth quarter of 2023, from RMB487.9 million in the same period of 2022.

 

   

Diluted net income per American Depositary Share (“ADS”) was RMB2.32 (US$0.33) in the fourth quarter of 2023, compared to RMB2.01 in the same period of 2022.

 

   

Non-GAAP diluted net income per ADS (note 1) was RMB2.63 (US$0.37) in the fourth quarter of 2023, compared to RMB2.46 in the same period of 2022.

 

   

Monthly Active Users (“MAU”) on Tantan app were 13.7 million in December 2023, compared to 18.4 million in December 2022.

 

   

For the Momo app total paying users was 7.4 million for the fourth quarter of 2023, compared to 7.8 million for the same period last year. Tantan had 1.2 million paying users for the fourth quarter of 2023 compared to 1.7 million from the year ago period.

Full Year 2023 Highlights

 

   

Net revenues decreased by 5.5% year over year to RMB12,002.3 million (US$1,690.5 million) for the full year of 2023.

 

   

Net income attributable to Hello Group Inc. was RMB1,957.6 million (US$275.7 million) for the full year of 2023, compared to RMB1,484.3 million during the same period of 2022.

 

   

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,224.7 million (US$313.3 million) for the full year of 2023, compared to RMB1,885.8 million during the same period of 2022.

 

   

Diluted net income per ADS was RMB9.84 (US$1.39) for the full year of 2023, compared to RMB7.31 during the same period of 2022.

 

   

Non-GAAP diluted net income per ADS (note 1) was RMB11.17 (US$1.57) for the full year of 2023, compared to RMB9.20 during the same period of 2022.

“2023 was a busy, yet fruitful year. Despite many changes and challenges in the external environment, our team made steady progress against our strategic priorities.” Commented Yan Tang, Chairman and CEO of Hello Group. “With solid improvement in cost efficiency, we were able to meaningfully improve the profitability of the company against economic headwinds. I am also pleased to see that our new endeavors in the overseas market have started bearing fruits, which gives us more confidence to invest more resources and take bigger strides to explore wider markets abroad.”

 

 

* 

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 RMB7.0999 to US$1.00, the effective noon buying rate for December 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

1


Fourth Quarter of 2023 Financial Results

Net revenues

Total net revenues were RMB3,002.9 million (US$423.0 million) in the fourth quarter of 2023, a decrease of 6.5% from RMB3,212.7 million in the fourth quarter of 2022.

Live video service revenues were RMB1,523.9 million (US$214.6 million) in the fourth quarter of 2023, a decrease of 11.6% from RMB1,724.2 million during the same period of 2022. The decrease was primarily attributable to a soft consumer sentiment in the current macro environment and our proactive operation adjustments to de-emphasise large scale competition events in the Momo app, and to a lesser degree, Tantan pivoting away from the less dating-centric live video service.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,424.9 million (US$200.7 million) in the fourth quarter of 2023, a decrease of 1.7% from RMB1,449.5 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 product adjustments to improve Momo app’s ecosystem, and to a lesser extent, the decline in Tantan’s paying users that resulted from a reduction in channel investment, the anti-spam campaign and the adjustments to subscription renewals. The decrease was partially offset by the rapid revenue growth from the new standalone apps.

Mobile marketing revenues were RMB44.9 million (US$6.3 million) in the fourth quarter of 2023, an increase of 36.4% from RMB32.9 million during the same period of 2022.

Mobile games revenues were RMB5.4 million (US$0.8 million) in the fourth quarter of 2023, an increase of 2.4% from RMB5.3 million in the fourth quarter of 2022.

Net revenues from the Momo segment decreased from RMB2,865.8 million in the fourth quarter of 2022 to RMB2,728.7 million (US$384.3 million) in the fourth quarter of 2023, primarily due to the decrease in net revenues from value-added service and live video service on Momo app. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB346.7 million in the fourth quarter of 2022 to RMB272.2 million (US$38.3 million) in the fourth quarter of 2023, mainly due to the decrease in net revenues from live video service, and to a lesser extent, the decrease from value-added service.

Cost and expenses

Cost and expenses were RMB2,431.8 million (US$342.5 million) in the fourth quarter of 2023, a decrease of 11.2% from RMB2,738.3 million in the fourth quarter of 2022. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service on the Momo app and on the Tantan app, and a decrease in revenue sharing with virtual gift recipients of virtual gift service on the Momo app. 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.

Non-GAAP cost and expenses (note 1) were RMB2,369.5 million (US$333.7 million) in the fourth quarter of 2023, a decrease of 10.5% from RMB2,648.3 million during the same period of 2022.

 

2


Other operating income (loss), net

Other operating income was RMB30.8 million (US$4.3 million) in the fourth quarter of 2023, compared to a loss of RMB65.2 million during the fourth quarter of 2022. The other operating loss in the fourth quarter of 2022 mainly included a contingent loss accrual of RMB92.9 million related to an ongoing investigation of the alleged illegal activity on the source of the funding consumed on Momo’s platform.

Income from operations

Income from operations was RMB602.0 million (US$84.8 million) in the fourth quarter of 2023, compared to RMB409.2 million during the same period of 2022. Income from operations of the Momo segment was RMB576.9 million (US$81.3 million) in the fourth quarter of 2023, which increased from RMB435.8 million in the fourth quarter of 2022. Income from operations of the Tantan segment was RMB26.8 million (US$3.8 million) in the fourth quarter of 2023, compared to a loss from operations of RMB21.7 million in the fourth quarter of 2022.

Non-GAAP income from operations (note 1) was RMB664.2 million (US$93.6 million) in the fourth quarter of 2023, compared to RMB499.2 million during the same period of 2022. Non-GAAP income from operations of the Momo segment was RMB638.9 million (US$90.0 million) in the fourth quarter of 2023, which increased from RMB519.2 million in the fourth quarter of 2022. Non-GAAP income from operations of the Tantan segment was RMB27.0 million (US$3.8 million) in the fourth quarter of 2023, compared to a non-GAAP loss from operations of RMB15.2 million in the fourth quarter of 2022.

Income tax expenses

Income tax expenses were RMB183.4 million (US$25.8 million) in the fourth quarter of 2023, compared to RMB109.4 million in the fourth quarter of 2022. The increase in income tax expenses was primarily due to the higher profit in the fourth quarter of 2023.

Net income

Net income was RMB452.5 million (US$63.7 million) in the fourth quarter of 2023, compared to RMB397.0 million during the same period of 2022. Net income from the Momo segment was RMB430.0 million (US$60.6 million) in the fourth quarter of 2023, compared to RMB397.1 million in the same period of 2022. Net income from the Tantan segment was RMB24.2 million (US$3.4 million) in the fourth quarter of 2023, compared to RMB4.7 million in the fourth quarter of 2022.

Non-GAAP net income (note 1) was RMB514.7 million (US$72.5 million) in the fourth quarter of 2023, compared to RMB487.0 million during the same period of 2022. Non-GAAP net income from the Momo segment was RMB492.1 million (US$69.3 million) in the fourth quarter of 2023, which increased from RMB480.5 million in the fourth quarter of 2022. Non-GAAP net income of the Tantan segment was RMB24.4 million (US$3.4 million) in the fourth quarter of 2023, compared to RMB11.3 million in the fourth quarter of 2022.

 

3


Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB452.5 million (US$63.7 million) in the fourth quarter of 2023, compared to RMB398.0 million during the same period of 2022.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB514.7 million (US$72.5 million) in the fourth quarter of 2023, compared to RMB487.9 million during the same period of 2022.

Net income per ADS

Diluted net income per ADS was RMB2.32 (US$0.33) in the fourth quarter of 2023, compared to RMB2.01 in the fourth quarter of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB2.63 (US$0.37) in the fourth quarter of 2023, compared to RMB2.46 in the fourth quarter of 2022.

Cash and cash flow

As of December 31, 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 RMB13,478.5 million (US$1,898.4 million), compared to RMB13,398.8 million as of December 31, 2022.

Net cash provided by operating activities in the fourth quarter of 2023 was RMB415.9 million (US$58.6 million), compared to RMB538.7 million in the fourth quarter of 2022.

Full Year 2023 Financial Results

Net revenues for the full year of 2023 were RMB12,002.3 million (US$1,690.5 million), a decrease of 5.5% from RMB12,704.2 million in the same period of 2022.

Net income attributable to Hello Group Inc. was RMB1,957.6 million (US$275.7 million) for the full year of 2023, compared to RMB1,484.3 million during the same period of 2022.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,224.7 million (US$313.3 million) for the full year of 2023, compared to RMB1,885.8 million during the same period of 2022.

Diluted net income per ADS was RMB9.84 (US$1.39) during the full year of 2023, compared to RMB7.31 in the same period of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB11.17 (US$1.57) during the full year of 2023, compared to RMB9.20 in the same period of 2022.

Net cash provided by operating activities was RMB2,277.2 million (US$320.7 million) during the full year of 2023, compared to RMB1,226.9 million in the same period of 2022.

 

4


Recent Development

Declaration of a special cash dividend

Hello Group’s board of directors has declared a special cash dividend in the amount of US$0.54 per ADS, or US$0.27 per ordinary share. The cash dividend will be paid on April 30, 2024 to shareholders of record at the close of business on April 12, 2024. The ex-dividend date will be April 11, 2024. The aggregate amount of cash dividends to be paid is approximately US$103 million, which will be funded by available cash on the Company’s balance sheet.

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 up to June 6, 2024 (the “Share Repurchase Program”). As of March 14, 2024, 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.

On March 14, 2024, Hello Group’s board of directors approved to amend the Share Repurchase Program to (i) extend the term of the Share Repurchase Program up to June 30, 2026, and (ii) upsize the Share Repurchase Program so that the Company is authorized to, from time to time, acquire up to an aggregate of US$286.1 million worth of its shares in the form of ADSs and/or the ordinary shares of the Company in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations.

Business Outlook

For the first quarter of 2024, the Company expects total net revenues to be between RMB2.45 billion to RMB2.55 billion, representing a decrease of 13.1% to 9.5% year over year. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

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.

 

5


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 Thursday, March 14, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 14, 2024).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10037219-7ww6gf.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 March 21, 2024. The dial-in details for the replay are as follows:

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

Hong Kong: 800-930-639

Passcode: 10037219

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

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 first quarter of 2024, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the fourth quarter of 2023 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2024 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 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 December 31
    Year
Ended December 31
 
     2022
RMB
    2023
RMB
    2023
US$
    2022
RMB
    2023
RMB
    2023
US$
 

Net revenues:

            

Live video service

     1,724,228       1,523,885       214,635       6,510,460       6,072,871       855,346  

Value-added service

     1,449,537       1,424,893       200,692       6,007,018       5,752,571       810,233  

Mobile marketing

     32,927       44,915       6,326       124,956       133,677       18,828  

Mobile games

     5,316       5,441       766       55,732       19,610       2,762  

Other services

     650       3,798       535       6,006       23,594       3,323  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     3,212,658       3,002,932       422,954       12,704,172       12,002,323       1,690,492  

Cost and expenses:

            

Cost of revenues

     (1,916,050     (1,770,117     (249,316     (7,421,419     (7,025,394     (989,506

Research and development

     (272,657     (231,445     (32,598     (1,006,219     (884,590     (124,592

Sales and marketing

     (407,075     (304,696     (42,916     (2,073,617     (1,414,949     (199,291

General and administrative

     (142,492     (125,498     (17,676     (596,006     (502,479     (70,773
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (2,738,274     (2,431,756     (342,506     (11,097,261     (9,827,412     (1,384,162

Other operating (loss) income, net

     (65,158     30,821       4,341       20,632       130,105       18,325  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     409,226       601,997       84,789       1,627,543       2,305,016       324,655  

Interest income

     88,118       124,354       17,515       368,879       436,253       61,445  

Interest expense

     (10,955     (20,552     (2,895     (83,530     (62,223     (8,764

Other gain or loss, net

     —        (31,250     (4,401     118,325       (26,685     (3,759
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     486,389       674,549       95,008       2,031,217       2,652,361       373,577  

Income tax expenses

     (109,421     (183,377     (25,828     (562,281     (630,023     (88,737
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before share of income on equity method investments

     376,968       491,172       69,180       1,468,936       2,022,338       284,840  

Share of income (loss) on equity method investments

     20,040       (38,703     (5,451     11,073       (70,643     (9,950
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     397,008       452,469       63,729       1,480,009       1,951,695       274,890  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: net loss attributable to non-controlling interest

     (986     —        —        (4,274     (5,886     (829
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to the shareholders of Hello Group Inc.

     397,994       452,469       63,729       1,484,283       1,957,581       275,719  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to ordinary shareholders

            

Basic

     1.05       1.20       0.17       3.80       5.18       0.73  

Diluted

     1.01       1.16       0.16       3.65       4.92       0.69  

Weighted average shares used in calculating net income per ordinary share

            

Basic

     377,841,986       376,317,036       376,317,036       390,176,367       377,639,399       377,639,399  

Diluted

     406,152,757       390,956,175       390,956,175       423,810,279       401,833,328       401,833,328  

 

8


Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

 

     Three months     Year  
   Ended December 31     Ended December 31  
     2022     2023     2023     2022     2023      2023  
     RMB     RMB     US$     RMB     RMB      US$  

Net income

     397,008       452,469       63,729       1,480,009       1,951,695        274,890  

Other comprehensive income (loss), net of tax:

             

Foreign currency translation adjustment

     54,041       (95,774     (13,489     (274,791     20,414        2,875  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Comprehensive income

     451,049       356,695       50,240       1,205,218       1,972,109        277,765  

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

     (7,154     (5,020     (707     10,556       357        50  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Comprehensive income attributable to Hello Group Inc.

     458,203       361,715       50,947       1,194,662       1,971,752        277,715  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

9


Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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

 

     December 31      December 31      December 31  
     2022      2023      2023  
     RMB      RMB      US$  

Assets

        

Current assets

        

Cash and cash equivalents

     5,018,129        5,620,466        791,626  

Short-term deposits

     5,300,000        1,270,626        178,964  

Restricted cash

     97,706        10,147        1,429  

Short-term investments

     300,240        —         —   

Accounts receivable, net of allowance for doubtful accounts of RMB5,870 and RMB12,780 as of December 31, 2022 and 2023, respectively

     188,711        201,517        28,383  

Amounts due from related parties

     55        7,258        1,022  

Prepaid expenses and other current assets

     819,706        723,364        101,884  
  

 

 

    

 

 

    

 

 

 

Total current assets

     11,724,547        7,833,378        1,103,308  

Long-term deposits

     2,600,000        3,924,975        552,821  

Long-term restricted cash

     82,766        2,652,299        373,569  

Right-of-use assets, net

     115,520        109,572        15,433  

Property and equipment, net

     172,984        659,033        92,823  

Intangible assets, net

     22,203        17,086        2,407  

Rental deposits

     20,737        12,962        1,826  

Long-term investments

     893,988        786,911        110,834  

Amounts due from RPT-non current

     —         20,000        2,817  

Other non-current assets

     162,499        180,052        25,360  

Deferred tax assets

     34,343        31,741        4,471  
  

 

 

    

 

 

    

 

 

 

Total assets

     15,829,587        16,228,009        2,285,669  
  

 

 

    

 

 

    

 

 

 

Liabilities and equity

        

Current liabilities

        

Accounts payable

     617,022        616,681        86,857  

Deferred revenue

     484,775        442,805        62,368  

Accrued expenses and other current liabilities

     797,504        630,617        88,821  

Amounts due to related parties

     9,178        4,314        608  

Lease liabilities due within one year

     88,352        60,008        8,452  

Income tax payable

     68,765        94,719        13,341  

Deferred consideration in connection with business acquisitions

     26,483        27,261        3,840  

Long-term borrowings, current portion

     —         215,615        30,369  

Convertible senior notes-current

     2,646,168        —         —   
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     4,738,247        2,092,020        294,656  

Deferred tax liabilities

     22,011        24,987        3,519  

Convertible Senior Notes

     —         19,571        2,757  

Long-term borrowings

     —         1,938,385        273,016  

Lease liabilities

     33,281        52,171        7,348  

Other non-current liabilities

     105,410        114,085        16,069  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     4,898,949        4,241,219        597,365  

Shareholder’s equity (i)

     10,930,638        11,986,790        1,688,304  
  

 

 

    

 

 

    

 

 

 

Total liabilities and shareholder’s equity

     15,829,587        16,228,009        2,285,669  
  

 

 

    

 

 

    

 

 

 

(i): As of December 31, 2023, the number of ordinary shares outstanding was 375,085,192.

 

10


Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

 

     Three months
Ended December 31
    Year
Ended December 31
 
     2022     2023     2023     2022     2023     2023  
     RMB     RMB     US$     RMB     RMB     US$  

Cash flows from operating activities:

            

Net income

     397,008       452,469       63,729       1,480,009       1,951,695       274,890  

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

            

Depreciation of property and equipment

     23,908       15,394       2,168       107,015       74,492       10,492  

Amortization of intangible assets

     1,279       1,279       180       5,116       5,116       721  

Share-based compensation

     89,944       62,224       8,765       401,484       267,101       37,620  

Share of (income) loss on equity method investments

     (20,040     38,703       5,451       (11,073     70,643       9,950  

Gain on repurchase of convertible senior notes

     —        —        —        (129,575     (4,565     (643

Loss on long-term investments

     —        31,250       4,401       11,250       31,250       4,401  

Cash received on distributions from equity method investments

     —        —        —        1,708       2,067       291  

Gain or loss on disposal of property and equipment

     4       2       —        (779     (518     (73

Provision of (income) loss on receivable and other assets

     (75     1,553       219       (528     11,624       1,637  

Changes in operating assets and liabilities:

            

Accounts receivable

     4,643       (11,392     (1,605     20,338       (21,308     (3,001

Prepaid expenses and other current assets

     (36,784     (13,492     (1,900     (52,928     84,802       11,944  

Amounts due from related parties

     (55     (144     (20     (55     (27,203     (3,831

Rental deposits

     —        5,524       778       1,399       7,776       1,095  

Deferred tax assets

     1,493       1,728       243       507       2,600       366  

Other non-current assets

     (15,907     16,033       2,258       60,913       (11,606     (1,635

Accounts payable

     (8,992     (25,118     (3,538     (115,384     13,707       1,931  

Income tax payable

     (6,081     5,456       768       (57,004     25,952       3,655  

Deferred revenue

     17,504       (31,253     (4,402     (56,387     (42,390     (5,971

Accrued expenses and other current liabilities

     121,638       (11,586     (1,632     (182,708     (183,772     (25,884

Amount due to related parties

     (265     639       90       4,162       (4,865     (685

Deferred tax liabilities

     (15,367     (130,345     (18,359     (187,119     (147     (21

Other non-current liabilities

     (15,159     6,953       979       (73,470     24,710       3,480  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     538,696       415,877       58,573       1,226,891       2,277,161       320,729  

Cash flows from investing activities:

            

Purchase of property and equipment

     (10,053     (316,847     (44,627     (80,445     (576,310     (81,172

Payment for long-term investments

     (15,000     (9,750     (1,373     (70,343     (18,750     (2,641

Purchase of short-term deposits

     —        —        —        (1,700,000     (1,028,556     (144,869

Cash received on maturity of short-term deposits

     1,700,000       800,000       112,678       5,410,000       6,209,820       874,635  

Payment for short term investments

     (300,000     —        —        (300,000     —        —   

Cash received from sales of short-term investment

     —        308,550       43,458       —        308,550       43,458  

Cash received on investment income distribution

     —        —        —        3,523       1,517       214  

Purchase of long-term deposits

     (200,000     (361,165     (50,869     (2,750,000     (4,210,025     (592,970

Cash received on maturity of long-term deposits

     —        —        —        1,200,000       1,700,000       239,440  

Cash received from sales of long-term investment

     —        10,000       1,408       —        25,000       3,521  

Other investing activities

     7       1       —        3,110       1,823       257  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by investing activities

     1,174,954       430,789       60,675       1,715,845       2,413,069       339,873  

Cash flows from financing activities:

            

Deferred payment for business acquisition

     —        —        —        (21,421     —        —   

Proceeds from exercise of share options

     112       31       4       163       601       85  

Repurchase of ordinary shares

     (104,684     (150,191     (21,154     (392,374     (212,195     (29,887

Repurchase of subsidiary’s share options

     (1,076     —        —        (40,943     (4,319     (608

Dividends payment

     —        (20,803     (2,930     (840,997     (958,052     (134,939

Proceeds from long-term borrowings

     —        —        —        —        2,154,000       303,385  

Payment for redemption of convertible bonds

     —        —        —        (2,136,987     (2,679,942     (377,462
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (105,648     (170,963     (24,080     (3,432,559     (1,699,907     (239,426

Effect of exchange rate changes

     (30,706     (34,609     (4,872     41,390       93,988       13,240  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     1,577,296       641,094       90,296       (448,433     3,084,311       434,416  

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

     3,621,305       7,641,818       1,076,328       5,647,034       5,198,601       732,208  

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

     5,198,601       8,282,912       1,166,624       5,198,601       8,282,912       1,166,624  

 

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
Ended December 31, 2022
    Three months
Ended December 31, 2023
    Three months
Ended December 31, 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

     (1,916,050     1,707        (1,914,343     (1,770,117     1,909        (1,768,208     (249,316     269        (249,047

Research and development

     (272,657     22,145        (250,512     (231,445     13,375        (218,070     (32,598     1,884        (30,714

Sales and marketing

     (407,075     8,480        (398,595     (304,696     8,653        (296,043     (42,916     1,219        (41,697

General and administrative

     (142,492     57,612        (84,880     (125,498     38,287        (87,211     (17,676     5,393        (12,283
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Cost and operating expenses

     (2,738,274     89,944        (2,648,330     (2,431,756     62,224        (2,369,532     (342,506     8,765        (333,741

Income from operations

     409,226       89,944        499,170       601,997       62,224        664,221       84,789       8,765        93,554  

Net income attributable to Hello Group Inc.

     397,994       89,944        487,938       452,469       62,224        514,693       63,729       8,765        72,494  

 

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.

 

     Year
Ended December 31, 2022
    Year
Ended December 31, 2023
    Year
Ended December 31, 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

     (7,421,419     14,195        (7,407,224     (7,025,394     6,307        (7,019,087     (989,506     888        (988,618

Research and development

     (1,006,219     88,797        (917,422     (884,590     64,561        (820,029     (124,592     9,093        (115,499

Sales and marketing

     (2,073,617     38,432        (2,035,185     (1,414,949     29,066        (1,385,883     (199,291     4,094        (195,197

General and administrative

     (596,006     260,060        (335,946     (502,479     167,167        (335,312     (70,773     23,545        (47,228
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Cost and operating expenses

     (11,097,261     401,484        (10,695,777     (9,827,412     267,101        (9,560,311     (1,384,162     37,620        (1,346,542

Income from operations

     1,627,543       401,484        2,029,027       2,305,016       267,101        2,572,117       324,655       37,620        362,275  

Net income attributable to Hello Group Inc.

     1,484,283       401,484        1,885,767       1,957,581       267,101        2,224,682       275,719       37,620        313,339  

 

13


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     Three months
Ended December 31, 2023
 
     Momo
RMB
    Tantan
RMB
    QOOL
RMB
    Total
RMB
    Total
US$
 

Net revenues:

          

Live video service

     1,423,730       100,155       —        1,523,885       214,635  

Value-added service

     1,264,358       160,535       —        1,424,893       200,692  

Mobile marketing

     33,395       11,520       —        44,915       6,326  

Mobile games

     5,441       —        —        5,441       766  

Other services

     1,760       —        2,038       3,798       535  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     2,728,684       272,210       2,038       3,002,932       422,954  

Cost and expenses (ii):

          

Cost of revenues

     (1,638,915     (130,237     (965     (1,770,117     (249,316

Research and development

     (180,343     (51,102     —        (231,445     (32,598

Sales and marketing

     (244,043     (58,444     (2,209     (304,696     (42,916

General and administrative

     (117,923     (6,882     (693     (125,498     (17,676
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (2,181,224     (246,665     (3,867     (2,431,756     (342,506

Other operating income

     29,442       1,301       78       30,821       4,341  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     576,902       26,846       (1,751     601,997       84,789  

Interest income

     124,294       57       3       124,354       17,515  

Interest expense

     (20,552     —        —        (20,552     (2,895

Other gain or loss, net

     (31,250     —        —        (31,250     (4,401
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     649,394       26,903       (1,748     674,549       95,008  

Income tax expenses

     (180,669     (2,708     —        (183,377     (25,828
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     468,725       24,195       (1,748     491,172       69,180  

Share of loss on equity method investments

     (38,703     —        —        (38,703     (5,451
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     430,022       24,195       (1,748     452,469       63,729  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(ii)

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

 

     Three months
Ended December 31, 2023
 
     Momo
RMB
     Tantan
RMB
     QOOL
RMB
     Total
RMB
     Total
US$
 

Cost of revenues

     1,905        4        —         1,909        269  

Research and development

     13,194        181        —         13,375        1,884  

Sales and marketing

     8,653        —         —         8,653        1,219  

General and administrative

     38,279        8        —         38,287        5,393  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     62,031        193        —         62,224        8,765  

 

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 December 31, 2023
 
     Momo
RMB
     Tantan
RMB
     QOOL
RMB
    Total
RMB
     Total
US$
 

Income (loss) from operations

     576,902        26,846        (1,751     601,997        84,789  

Share-based compensation

     62,031        193        —        62,224        8,765  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP income (loss) from operations

     638,933        27,039        (1,751     664,221        93,554  

Net income (loss)

     430,022        24,195        (1,748     452,469        63,729  

Share-based compensation

     62,031        193        —        62,224        8,765  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP net income (loss)

     492,053        24,388        (1,748     514,693        72,494  

 

15


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     Three months
Ended December 31, 2022
 
     Momo
RMB
    Tantan
RMB
    QOOL
RMB
    Total
RMB
    Total
US$1
 

Net revenues:

          

Live video service

     1,561,332       162,896       —        1,724,228       249,990  

Value-added service

     1,265,693       183,844       —        1,449,537       210,164  

Mobile marketing

     32,927       —        —        32,927       4,774  

Mobile games

     5,316       —        —        5,316       771  

Other services

     483       —        167       650       93  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     2,865,751       346,740       167       3,212,658       465,792  

Cost and expenses (iii):

          

Cost of revenues

     (1,722,675     (192,748     (627     (1,916,050     (277,801

Research and development

     (200,740     (71,917     —        (272,657     (39,532

Sales and marketing

     (307,166     (98,209     (1,700     (407,075     (59,020

General and administrative

     (131,844     (7,899     (2,749     (142,492     (20,659
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (2,362,425     (370,773     (5,076     (2,738,274     (397,012

Other operating (loss) income, net

     (67,499     2,339       2       (65,158     (9,447
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     435,827       (21,694     (4,907     409,226       59,333  

Interest income

     87,799       253       66       88,118       12,776  

Interest expense

     (10,955     —        —        (10,955     (1,588
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     512,671       (21,441     (4,841     486,389       70,521  

Income tax (expenses) benefits

     (135,602     26,181       —        (109,421     (15,865
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     377,069       4,740       (4,841     376,968       54,656  

Share of income on equity method investments

     20,040       —        —        20,040       2,906  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     397,109       4,740       (4,841     397,008       57,562  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(iii)

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

 

     Three months
Ended December 31, 2022
 
     Momo
RMB
     Tantan
RMB
     QOOL
RMB
     Total
RMB
     Total
US$
 

Cost of revenues

     1,689        18        —         1,707        247  

Research and development

     15,907        6,238        —         22,145        3,211  

Sales and marketing

     8,473        7        —         8,480        1,229  

General and administrative

     57,350        262        —         57,612        8,353  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     83,419        6,525        —         89,944        13,040  

 

 

1 

All translations from RMB to U.S. dollars are made at a rate of RMB6.8972 to US$1.00, the effective noon buying rate for December 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 December 31, 2022
 
     Momo
RMB
     Tantan
RMB
    QOOL
RMB
    Total
RMB
     Total
US$
 

Income (loss) from operations

     435,827        (21,694     (4,907     409,226        59,333  

Share-based compensation

     83,419        6,525       —        89,944        13,040  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP income (loss) from operations

     519,246        (15,169     (4,907     499,170        72,373  

Net income (loss)

     397,109        4,740       (4,841     397,008        57,562  

Share-based compensation

     83,419        6,525       —        89,944        13,040  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP net income (loss)

     480,528        11,265       (4,841     486,952        70,602  

 

17


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     Year
Ended December 31, 2023
 
     Momo
RMB
    Tantan
RMB
    QOOL
RMB
    Total
RMB
    Total
US$
 

Net revenues:

          

Live video service

     5,567,894       504,977       —        6,072,871       855,346  

Value-added service

     5,085,541       667,030       —        5,752,571       810,233  

Mobile marketing

     109,125       24,552       —        133,677       18,828  

Mobile games

     19,610       —        —        19,610       2,762  

Other services

     16,337       —        7,257       23,594       3,323  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     10,798,507       1,196,559       7,257       12,002,323       1,690,492  

Cost and expenses (iv):

          

Cost of revenues

     (6,404,042     (599,348     (22,004     (7,025,394     (989,506

Research and development

     (664,340     (220,250     —        (884,590     (124,592

Sales and marketing

     (1,138,505     (268,652     (7,792     (1,414,949     (199,291

General and administrative

     (467,537     (26,482     (8,460     (502,479     (70,773
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (8,674,424     (1,114,732     (38,256     (9,827,412     (1,384,162

Other operating income

     125,318       4,411       376       130,105       18,325  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     2,249,401       86,238       (30,623     2,305,016       324,655  

Interest income

     435,451       713       89       436,253       61,445  

Interest expense

     (62,223     —        —        (62,223     (8,764

Other gain or loss, net

     (26,685     —        —        (26,685     (3,759
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     2,595,944       86,951       (30,534     2,652,361       373,577  

Income tax expenses

     (623,844     (6,179     —        (630,023     (88,737
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,972,100       80,772       (30,534     2,022,338       284,840  

Share of loss on equity method investments

     (70,643     —        —        (70,643     (9,950
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     1,901,457       80,772       (30,534     1,951,695       274,890  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(iv)

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

 

     Year
Ended December 31, 2023
 
     Momo
RMB
     Tantan
RMB
     QOOL
RMB
     Total
RMB
     Total
US$
 

Cost of revenues

     6,167        140        —         6,307        888  

Research and development

     49,987        14,574        —         64,561        9,093  

Sales and marketing

     29,061        5        —         29,066        4,094  

General and administrative

     167,135        32        —         167,167        23,545  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     252,350        14,751        —         267,101        37,620  

 

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)

 

     Year
Ended December 31, 2023
 
     Momo
RMB
     Tantan
RMB
     QOOL
RMB
    Total
RMB
     Total
US$
 

Income (loss) from operations

     2,249,401        86,238        (30,623     2,305,016        324,655  

Share-based compensation

     252,350        14,751        —        267,101        37,620  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP income (loss) from operations

     2,501,751        100,989        (30,623     2,572,117        362,275  

Net income (loss)

     1,901,457        80,772        (30,534     1,951,695        274,890  

Share-based compensation

     252,350        14,751        —        267,101        37,620  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Non-GAAP net income (loss)

     2,153,807        95,523        (30,534     2,218,796        312,510  

 

19


Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     Year
Ended December 31, 2022
 
     Momo
RMB
    Tantan
RMB
    QOOL
RMB
    Total
RMB
    Total
US$
 

Net revenues:

          

Live video service

     5,966,323       544,137       —        6,510,460       943,928  

Value-added service

     5,183,302       823,716       —        6,007,018       870,936  

Mobile marketing

     124,956       —        —        124,956       18,117  

Mobile games

     55,732       —        —        55,732       8,080  

Other services

     4,781       —        1,225       6,006       871  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     11,335,094       1,367,853       1,225       12,704,172       1,841,932  

Cost and expenses (v):

          

Cost of revenues

     (6,704,020     (714,936     (2,463     (7,421,419     (1,076,005

Research and development

     (737,380     (268,839     —        (1,006,219     (145,888

Sales and marketing

     (1,346,692     (721,889     (5,036     (2,073,617     (300,646

General and administrative

     (547,798     (33,234     (14,974     (596,006     (86,413
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (9,335,890     (1,738,898     (22,473     (11,097,261     (1,608,952

Other operating income

     8,753       11,830       49       20,632       2,991  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     2,007,957       (359,215     (21,199     1,627,543       235,971  

Interest income

     368,051       544       284       368,879       53,482  

Interest expense

     (83,530     —        —        (83,530     (12,111

Other gain or loss, net

     118,325       —        —        118,325       17,156  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     2,410,803       (358,671     (20,915     2,031,217       294,498  

Income tax (expenses) benefits

     (586,663     24,382       —        (562,281     (81,523
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,824,140       (334,289     (20,915     1,468,936       212,975  

Share of income on equity method investments

     11,073       —        —        11,073       1,605  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     1,835,213       (334,289     (20,915     1,480,009       214,580  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(v)

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

 

     Year
Ended December 31, 2022
 
     Momo
RMB
     Tantan
RMB
     QOOL
RMB
     Total
RMB
     Total
US$
 

Cost of revenues

     7,166        7,029        —         14,195        2,058  

Research and development

     67,659        21,138        —         88,797        12,874  

Sales and marketing

     38,202        230        —         38,432        5,572  

General and administrative

     259,669        391        —         260,060        37,705  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost and expenses

     372,696        28,788        —         401,484        58,209  

 

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)

 

     Year
Ended December 31, 2022
 
     Momo
RMB
     Tantan
RMB
    QOOL
RMB
    Total
RMB
     Total
US$
 

Income (loss) from operations

     2,007,957        (359,215     (21,199     1,627,543        235,971  

Share-based compensation

     372,696        28,788       —        401,484        58,209  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP income (loss) from operations

     2,380,653        (330,427     (21,199     2,029,027        294,180  

Net income (loss)

     1,835,213        (334,289     (20,915     1,480,009        214,580  

Share-based compensation

     372,696        28,788       —        401,484        58,209  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Non-GAAP net income (loss)

     2,207,909        (305,501     (20,915     1,881,493        272,789  

 

21