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Hello Group Inc. Announces Unaudited Financial Results for the First Quarter of 2024

May 30, 2024 Sports /idopress/

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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