BEIJING,May 28,2024 -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"),a leading player in mainland China's online social networking space,today announced its unaudited financial results for the first quarterof 2024.
FirstQuarter of 2024 Highlights
Net revenues decreased by 9.2% year over year to RMB2,560.4 million (US$354.6 million*) in the firstquarter of 2024.
Net income attributable to Hello Group Inc. decreased to RMB5.2 million (US$0.7 million) in the firstquarter of 2024,from RMB390.3million in the same period of 2023.
Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB59.9 million (US$8.3 million) in the firstquarter of 2024,from RMB471.9million in the same period of 2023,mainly due to the accrual of withholding income tax of RMB448.6 million (US$62.1 million) on historical undistributed earnings generated by our wholly-foreign owned enterprise ("WFOE").
Diluted net income per American Depositary Share ("ADS") was RMB0.03 (US$0.00) in the firstquarter of 2024,compared to RMB1.96 in the same period of 2023.
Non-GAAP diluted net income per ADS (note 1) was RMB0.31 (US$0.04) in the firstquarter of 2024,compared to RMB2.36 in the same period of 2023.
Monthly Active Users ("MAU") on Tantan app were 13.7 million in March 2024,compared to 19.5 million in March2023.
For the Momo app total paying users was 7.1 million for the firstquarter of 2024,compared to 7.8 million for the same period last year. Tantan had 1.1 million paying users for the firstquarter of 2024 compared to 1.6 million from the year ago period.
"We have made steady progress in implementing our strategic priorities for Momo,Tantan,and our new endeavors since the beginning of the year,"commented Yan Tang,Chairman and CEO of Hello Group. "Product innovation and our ability to leverage technological advancements have enabled Momo to play an important role in helping users discover new relationships and build meaningful interactions. This has laid a solid foundation for us to maintain user and revenue scale over the long term. I am also glad to see that our overseas team has accelerated the localization process to drive continued growth in the new endeavors. We look forward to delivering high quality social and entertainment services to a much broader user base global wise."
* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate solely for the convenience of readers. Unlessotherwise noted,all translations from Renminbi to U.S. dollars,in this press release,were made at a rate of RMB7.2203 to US$1.00,the effective noon buying rate for March 29,2024 as set forth in the H.10 statistical release of the Federal Reserve Board.
First Quarter of 2024 Financial Results
Net revenues
Total net revenues were RMB2,560.4 million (US$354.6million) in the firstquarter of 2024,a decrease of 9.2% from RMB2,818.9 million in the firstquarter of 2023.
Live video service revenues were RMB1,238.5 million (US$171.5 million) in the firstquarter of 2024,a decrease of 13.3% from RMB1,429.3 million during the same period of 2023. The decrease was primarily attributable to our proactive operational adjustments to de-emphasise large scale competition events in the Momo app and a soft consumer sentiment in the current macro environment,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 RMB1,294.4 million (US$179.3 million) in the firstquarter of 2024,a decrease of 4.9% from RMB1,361.5 million during the same period of 2023. The decrease was primarily due to our product adjustments to improve Momo app's ecosystem as well as the impact of the macro economy on consumer sentiment,and to a lesser extent,the decline in Tantan's paying users. The decrease was partially offset by the rapid revenue growth from the new standalone apps.
Mobile marketing revenues were RMB26.6 million (US$3.7 million) in the firstquarter of 2024,anincrease of 26.2% from RMB21.1 million during the same period of 2023.
Mobile games revenues were RMB0.4 million (US$0.1 million) in the firstquarter of 2024,a decrease of 88.3% from RMB3.7 million in the firstquarter of 2023.
Net revenues from the Momo segment decreased from RMB2,510.1 million in the firstquarter of 2023to RMB2,318.9 million (US$321.2 million) in the firstquarter of 2024,primarily due to the decrease in net revenues from value-added service and live videoservice 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 RMB308.6 million in the firstquarter of 2023to RMB241.5 million (US$33.4 million) in the firstquarter of 2024,mainly due to the decrease in net revenues from live video service,the decrease from value-addedservice.
Cost and expenses
Cost and expenses were RMB2,120.0 million (US$293.6 million) in the firstquarter of 2024,adecrease of 12.4% from RMB2,419.1 million in the firstquarter of 2023. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service on Momo app and Tantan app,and a decrease in revenue sharing with virtual gift recipients of virtual gift service on 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 less marketing and promotional spend on live video service and our strategy to trim inefficient channel marketing spend.
Non-GAAP cost and expenses (note 1) were RMB2,065.3 million (US$286.0 million) in the firstquarter of 2024,a decrease of 11.6% from RMB2,337.4 million during the same period of 2023.
Income from operations
Incomefrom operations was RMB460.3 million (US$63.8 million)in the firstquarter of 2024,compared to RMB436.2 million during the same period of 2023. Incomefrom operations of the Momo segment wasRMB434.0 million (US$60.1 million) in the firstquarter of 2024,which decreased from RMB435.0 million in thefirstquarter of 2023. Incomefrom operations of the Tantan segment was RMB28.6 million (US$4.0 million) in the firstquarter of 2024,which increased fromRMB5.2 million in thefirstquarter of 2023.
Non-GAAP income from operations (note 1) was RMB515.0 million (US$71.3million) in the first quarter of 2024,compared to RMB517.8 million during the same period of 2023. Non-GAAPincomefrom operations of the Momo segment wasRMB488.5 million (US$67.7 million)in the firstquarter of 2024,which decreased from RMB507.5 million in the firstquarter of 2023. Non-GAAPincome from operations of the Tantan segment was RMB28.8 million (US$4.0 million) in the first quarter of 2024,compared to RMB14.5 million in the firstquarter of 2023.
Income tax expenses
Income tax expenses were RMB557.6 million (US$77.2 million) in the first quarter of 2024,compared to RMB122.6 million in the first quarter of 2023. In the first quarter of 2024,we accrued an income tax expenses of RMB109.0 million (US$15.1 million) associated with the profit generated in this quarter. Additionally,we accrued a withholding income tax of RMB448.6 million (US$62.1 million) associated with our WFOE's historical undistributed earnings for the potential remittance of earnings from our WFOE to its offshore parent company in the form of dividend distribution. Because we believe that we might continue to distribute the WFOE's undistributed earnings in the future to fund our demands in overseas business operations,payments of dividends,potential investments,etc,to be prudent,we accrued withholding tax on the total balance of undistributed earnings of our WFOE as of March 31,2024.From the first quarter of 2024,dividends paid by our wholly foreign-owned subsidiary in the Chinese mainland to its offshore parent company in Hong Kong are qualified for the preferential withholding tax rate of 5% under the Arrangement between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income,instead of the normal withholding tax rate of 10%.
Net income
Net incomewas RMB5.2 million (US$0.7 million) in the first quarter of 2024,compared to RMB389.5 million during the same period of 2023. Net lossof theMomo segment was RMB20.8 million (US$2.9 million) in the firstquarter of 2024,compared toa net income ofRMB389.0million in the same period of 2023. Net incomefrom the Tantan segment was RMB28.2 million (US$3.9 million) in the first quarter of 2024,compared toRMB4.5 million in the firstquarter of 2023.
Non-GAAP net income (note 1) was RMB59.9 million (US$8.3million) in the first quarter of 2024,compared to RMB471.1 million during the same period of 2023. Non-GAAPnet incomefrom the Momo segment wasRMB33.7million(US$4.7 million) in the first quarter of 2024,which decreased from RMB461.5million in the firstquarter of 2023. Non-GAAPnet incomeof the Tantan segment was RMB28.4 million (US$3.9 million) in thefirstquarter of 2024,compared toRMB13.7 million in the firstquarter of 2023.
Net income attributable to Hello Group Inc.
Net income attributable to Hello Group Inc. was RMB5.2 million (US$0.7 million) in the firstquarter of 2024,compared toRMB390.3million during the same period of 2023.
Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB59.9 million (US$8.3 million) in thefirstquarter of 2024,compared to RMB471.9 million during the same period of 2023.
Net incomeper ADS
Diluted net incomeper ADS was RMB0.03 (US$0.00) in the first quarter of 2024,compared to RMB1.96in the firstquarter of 2023.
Non-GAAP diluted net income per ADS (note 1) was RMB0.31 (US$0.04) in the firstquarter of 2024,compared to RMB2.36 in the firstquarter of 2023.
Cash and cash flow
As of March 31,2024,the Company's cash,cash equivalents,short-term deposits,long-term deposits,short-term restricted cash and long-term restricted cash totaled RMB15,115.8 million (US$2,093.5million),compared to RMB13,478.5million as of December 31,2023.
Net cash provided by operating activities in the firstquarter of 2024 was RMB400.2 million (US$55.4million),compared to RMB451.1 million in thefirstquarter of 2023.
Recent Development
Payment of a special cash dividend
In March 2024,Hello Group's board of directors declared a special cash dividend in the amount of US$0.54 per ADS,or US$0.27 per ordinary share. The cash dividend was paid on April 30,2024 to shareholders of record at the close of business on April 12,2024. The aggregate amount of cash dividends paid was US$98.9 million.
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"). On March 14,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.
As of May 28,the Company has repurchased 22.3 million ADSs for US$122.6 million on the open market under Share Repurchase Program announced on June 7,2022 and amended on March 14,at an average purchase price of US$5.48 per ADS.
Business Outlook
For the secondquarter of 2024,the Company expects total net revenues to be between RMB2.65 billion to RMB2.75 billion,representing a decrease of 15.5% to 12.4% 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 Tuesday,at8:00 a.m.U.S. Eastern Time (8:00 p.m. Beijing/Hong KongTime on May 28,2024).
Participants can register for the conference call by navigating to:
https://s1.c-conf.com/diamondpass/10039014-cp8m51.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 June 4,2024. The dial-in details for the replay are as follows:
U.S. / Canada: 1-855-883-1031
Hong Kong: 800-930-639
Passcode: 10039014
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 mainland China's online social networking space. ThroughMomo,Tantan and other properties within our product portfolio,we enable users to discover new relationships,expand their social connections and build meaningful interactions.Momois 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 inMay 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. Starting from 2019,we have incubated a number of other new apps,such as Hertz,Soulchill,Duidui and Tietie,which target more niche markets and more selective demographics.
For investor and media inquiries,please contact:
Hello Group Inc.
Investor Relations
Phone: +86-10-5731-0538
Email: [email protected]
Christensen
In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: [email protected]
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]
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,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 secondquarter 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 first quarter of 2024 are preliminary,unaudited and subject to audit adjustment. In addition,we may not meet our financial outlook for the secondquarter of 2024 and may be unable to grow our business in the manner planned. We may also modifyour 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.
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Operations
(All amounts in thousands,except share and per share data)
Three months
Ended March 31
2023
2024
2024
RMB
RMB
US$
Net revenues:
Live video service
1,429,340
1,238,541
171,536
Value-added service
1,361,469
1,294,376
179,269
Mobile marketing
21,071
26,595
3,683
Mobile games
3,699
432
60
Other services
3,279
476
66
Total net revenues
2,818,858
2,560,420
354,614
Cost and expenses:
Cost of revenues
(1,664,188)
(1,503,008)
(208,164)
Research and development
(236,803)
(192,191)
(26,618)
Sales and marketing
(379,786)
(293,431)
(40,640)
General and administrative
(138,298)
(131,381)
(18,196)
Total cost and expenses
(2,419,075)
(2,120,011)
(293,618)
Other operating income,net
36,394
19,906
2,757
Income from operations
436,177
460,315
63,753
Interest income
99,787
121,107
16,773
Interest expense
(10,415)
(23,698)
(3,282)
Other gain or loss,net
-
(9,245)
(1,280)
Income before income tax and share of (loss) income on equitymethod
investments
525,549
548,479
75,964
Income tax expenses
(122,613)
(557,613)
(77,229)
Income (loss) before share of income on equity methodinvestments
402,936
(9,134)
(1,265)
Share of (loss) income on equity method investments
(13,475)
14,318
1,983
Net income
389,461
5,184
718
Less: net loss attributable to non-controlling interest
(828)
-
-
Net income attributable to the shareholders of Hello Group Inc.
390,289
5,184
718
Net income per share attributable to ordinary shareholders
Basic
1.04
0.01
0.00
Diluted
0.98
0.01
0.00
Weighted average shares used in calculating net income per ordinaryshare
Basic
377,017,080
374,650,649
374,649
Diluted
409,102,277
389,278,806
389,806
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in thousands,except share and per share data)
Three months
Ended March 31
2023
2024
2024
RMB
RMB
US$
Net income
389,184
718
Other comprehensive income,net of tax:
Foreign currency translation adjustment
2,181
54,894
7,603
Comprehensive income
391,642
60,078
8,321
Less: comprehensive (loss) income attributed to the non-controlling interest
(1,670)
3,084
427
Comprehensive income attributable to Hello Group Inc.
393,312
56,994
7,894
Hello Group Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands,except share and per share data)
December 31
March 31
March 31
2023
2024
2024
RMB
RMB
US$
Assets
Current assets
Cash and cash equivalents
5,620,466
6,023,224
834,207
Short-term deposits
1,270,626
1,129,454
156,428
Restricted cash
10,147
1,504,307
208,344
Accounts receivable,net of allowance for doubtful accounts of
RMB12,780 and RMB12,497 as of December 31,2023 and March 31,
2024,respectively
201,517
189,561
26,254
Amounts due from related parties
7,258
-
-
Prepaid expenses and other current assets
723,364
823,251
114,019
Total current assets
7,833,378
9,669,797
1,339,252
Long-term deposits
3,924,975
3,805,075
526,997
Long-term restricted cash
2,652,299
2,653,744
367,539
Right-of-use assets,net
109,572
116,607
16,150
Property and equipment,net
659,033
688,699
95,384
Intangible assets,net
17,086
15,806
2,189
Rental deposits
12,962
13,766
1,907
Long-term investments
786,911
710,557
98,411
Amounts due from RPT-non current
20,000
-
-
Other non-current assets
180,052
200,649
27,790
Deferred tax assets
31,741
34,240
4,742
Total assets
16,228,009
17,908,940
2,480,361
Liabilities and equity
Current liabilities
Accounts payable
616,681
604,398
83,711
Deferred revenue
442,805
459,797
63,681
Accrued expenses and other current liabilities
630,617
564,205
78,141
Amounts due to related parties
4,314
-
-
Lease liabilities due within one year
60,008
66,136
9,160
Income tax payable
94,719
100,756
13,955
Deferred consideration in connection with business acquisitions
27,261
27,723
3,840
Long-term borrowings,current portion
215,615
217,094
30,067
Dividends payable
-
714,120
98,904
Short-term borrowings
-
1,334,664
184,849
Total current liabilities
2,092,020
4,088,893
566,308
Deferred tax liabilities
24,987
391,502
54,222
Convertible Senior Notes
19,571
19,920
2,759
Long-term borrowings
1,938,385
1,169
268,433
Lease liabilities
52,171
52,487
7,269
Other non-current liabilities
114,085
139,721
19,351
Total liabilities
4,241,219
6,630,692
918,342
Shareholder's equity (i)
11,986,790
11,248
1,562,019
Total liabilities and shareholder's equity
16,361
(i): As of March 31,the number of ordinary shares outstanding was 370,162,906.
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in thousands,except share and per share data)
Three months
Ended March 31
2023
2024
2024
RMB
RMB
US$
Cash flows from operating activities:
Net income
389,461
5,184
718
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment
22,844
14,310
1,982
Amortization of intangible assets
1,279
1,279
177
Share-based compensation
81,657
54,670
7,572
Share of loss (income) on equity method investments
13,475
(14,318)
(1,983)
Loss on long-term investments
-
9,245
1,280
Gain or loss on disposal of property and equipment
67
258
36
Provision of loss on receivable and other assets
9,182
1,776
246
Changes in operating assets and liabilities:
Accounts receivable
(548)
10,980
1,521
Prepaid expenses and other current assets
24,352
(9,677)
(1,340)
Amounts due from related parties
55
-
-
Rental deposits
-
(802)
(111)
Deferred tax assets
440
(2,498)
(346)
Other non-current assets
(7,485)
(7,597)
(1,052)
Accounts payable
20,379
(17,454)
(2,417)
Income tax payable
(6,393)
6,036
836
Deferred revenue
(8,811)
16,674
2,309
Accrued expenses and other current liabilities
(132,733)
(56,800)
(7,867)
Amount due to related parties
3,169
-
-
Deferred tax liabilities
34,120
365,011
50,553
Other non-current liabilities
6,564
23,893
3,309
Net cash provided by operating activities
451,074
400,170
55,423
Cash flows from investing activities:
Purchase of property and equipment
(10,234)
(44,176)
(6,118)
Purchase of short-term deposits
(497,342)
-
-
Cash received on maturity of short-term deposits
900,000
300,000
41,550
Purchase of long-term deposits
-
(718,860)
(99,561)
Cash received on maturity of long-term deposits
-
718,860
99,561
Cash received from sales of long-term investment
-
2,000
277
Other investing activities
738
385
53
Net cash provided by investing activities
393,162
258,209
35,762
Cash flows from financing activities:
Proceeds from exercise of share options
3
11
2
Payment in relation to the share repurchase program
(3,237)
(112,261)
(15,548)
Repurchase of subsidiary's share options
(1,539)
-
-
Proceeds from short-term borrowings
-
1,331,635
184,429
Repayment of long-term borrowings
-
(215)
(30)
Payment for redemption of convertible bonds
(478,786)
-
-
Net cash (used in) provided by financing activities
(483,559)
1,219,170
168,853
Effect of exchange rate changes
(9,426)
20,814
2,882
Net increase in cash and cash equivalents
351,251
1,898,363
262,920
Cash,cash equivalents and restricted cash at the beginning of period
5,198,601
8,282,912
1,147,170
Cash,cash equivalents and restricted cash at the end of period
5,549,852
10,181,275
1,410,090
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 March 31,2023
Ended March 31,2024
Ended March 31,2024
GAAP
Share-based
compensation
Non-GAAP
GAAP
Share-based
compensation
Non-GAAP
GAAP
Share-based
compensation
Non-GAAP
RMB
RMB
RMB
RMB
RMB
RMB
US$
US$
US$
Cost of revenues
(1,188)
1,635
(1,662,553)
(1,008)
1,882
(1,501,126)
(208,164)
261
(207,903)
Research and development
(236,803)
22,372
(214,431)
(192,191)
8,786
(183,405)
(26,618)
1,217
(25,401)
Sales and marketing
(379,786)
7,746
(372,040)
(293,431)
6,117
(287,314)
(40,640)
847
(39,793)
General and administrative
(138,298)
49,904
(88,394)
(131,381)
37,885
(93,496)
(18,196)
5,247
(12,949)
Cost and operating expenses
(2,075)
81,657
(2,337,418)
(2,011)
54,670
(2,065,341)
(293,618)
7,572
(286,046)
Income from operations
436,177
81,657
517,834
460,315
54,670
514,985
63,753
7,572
71,325
Net income attributable to Hello Group Inc.
390,289
81,657
471,946
5,184
54,670
59,854
718
7,572
8,290
Unaudited Condensed Segment Report
(All amounts in thousands,except share and per share data)
Three months
Ended March 31,2024
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Net revenues:
Live video service
1,150,844
87,697
-
1,536
Value-added service
1,149,285
145,091
-
1,269
Mobile marketing
17,893
8,702
-
26,683
Mobile games
432
-
-
432
60
Other services
434
-
42
476
66
Total net revenues
2,318,888
241,490
42
2,614
Cost and expenses (ii):
Cost of revenues
(1,392,824)
(110,184)
-
(1,164)
Research and development
(150,861)
(41,330)
-
(192,618)
Sales and marketing
(236,659)
(54,482)
(2,290)
(293,640)
General and administrative
(123,752)
(7,591)
(38)
(131,196)
Total cost and expenses
(1,904,096)
(213,587)
(2,328)
(2,618)
Other operating income
19,158
724
24
19,757
Income (loss) from operations
433,950
28,627
(2,262)
460,753
Interest income
120,958
147
2
121,773
Interest expense
(23,698)
-
-
(23,282)
Other gain or loss,net
(9,245)
-
-
(9,280)
Income (loss) before income tax and share of income on equity
method investments
521,965
28,774
(2,260)
548,964
Income tax expenses
(557,079)
(534)
-
(557,229)
(Loss) income before share of income on equity method
investments
(35,114)
28,240
(2,260)
(9,265)
Share of income on equity method investments
14,318
-
-
14,983
Net (loss) income
(20,796)
28,260)
5,184
718
(ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
Ended March 31,2024
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Cost of revenues
1,878
4
-
1,882
261
Research and development
8,638
148
-
8,786
1,217
Sales and marketing
6,117
-
-
6,117
847
General and administrative
37,874
11
-
37,885
5,247
Total cost and expenses
54,507
163
-
54,670
7,572
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 March 31,2024
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Income (loss) from operations
433,950
28,627
(2,262)
460,315
63,753
Share-based compensation
54,507
163
-
54,572
Non-GAAP income (loss) from operations
488,457
28,790
(2,262)
514,985
71,325
Net (loss) income
(20,796)
28,240
(2,260)
5,184
718
Share-based compensation
54,572
Non-GAAP net income (loss)
33,711
28,403
(2,260)
59,854
8,290
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands,2023
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$[1]
Net revenues:
Live video service
1,289,718
139,622
-
1,340
208,128
Value-added service
1,193,544
167,925
-
1,469
198,246
Mobile marketing
20,021
1,050
-
21,071
3,068
Mobile games
3,699
-
-
3,699
539
Other services
3,137
-
142
3,279
477
Total net revenues
2,510,119
308,597
142
2,858
410,458
Cost and expenses (iii):
Cost of revenues
(1,500,531)
(163,114)
(543)
(1,188)
(242,325)
Research and development
(169,308)
(67,495)
-
(236,803)
(34,481)
Sales and marketing
(312,640)
(65,852)
(1,294)
(379,786)
(55,301)
General and administrative
(128,078)
(7,746)
(2,474)
(138,298)
(20,138)
Total cost and expenses
(2,110,557)
(304,207)
(4,311)
(2,075)
(352,245)
Other operating income,net
35,478
854
62
36,394
5,299
Income (loss) from operations
435,040
5,244
(4,107)
436,177
63,512
Interest income
99,531
204
52
99,787
14,530
Interest expense
(10,415)
-
-
(10,415)
(1,517)
Income (loss) before income tax and share of income onequity
method investments
524,156
5,448
(4,055)
525,549
76,525
Income tax expenses
(121,642)
(971)
-
(122,613)
(17,854)
Income (loss) before share of income on equity methodinvestments
402,514
4,477
(4,055)
402,936
58,671
Share of loss on equity method investments
(13,475)
-
-
(13,475)
(1,962)
Net income (loss)
389,039
4,055)
389,461
56,709
(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
Ended March 31,2023
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Cost of revenues
1,618
17
-
1,635
238
Research and development
13,170
9,202
-
22,372
3,258
Sales and marketing
7,741
5
-
7,746
1,128
General and administrative
49,896
8
-
49,904
7,267
Total cost and expenses
72,425
9,232
-
81,657
11,891
[1] All translations from RMB to U.S. dollars are made at a rate of RMB6.8676 to US$1.00,the effective noon buying rate for March 31,2023 as set forth in the H.10 statistical release of the Federal Reserve Board.
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands,2023
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Income (loss) from operations
435,040
5,244
(4,107)
436,177
63,512
Share-based compensation
72,425
9,232
-
81,657
11,891
Non-GAAP income (loss) from operations
507,465
14,476
(4,107)
517,834
75,403
Net income (loss)
389,039
4,477
(4,055)
389,461
56,709
Share-based compensation
72,891
Non-GAAP net income (loss)
461,464
13,709
(4,055)
471,118
68,600
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