BEIJING, May 28, 2020
/PRNewswire/ -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"),
a leading mobile social networking platform in China, today announced its unaudited financial
results for the first quarter of 2020.
First Quarter of 2020 Highlights
- Net revenues decreased by 3.5% year over year to RMB3,594.1 million (US$507.6 million*) in the first quarter of
2020.
- Net income attributable to Momo Inc. increased to RMB538.9 million (US$76.1
million) in the first quarter of 2020 from RMB289.3 million in the same period of 2019.
- Non-GAAP net income attributable to Momo Inc. (note 1)
decreased to RMB736.3 million
(US$104.0 million) in the first
quarter of 2020, from RMB910.3
million in the same period of 2019.
- Diluted net income per American Depositary Share ("ADS") was
RMB2.46 (US$0.35) in the first quarter of 2020, compared
to RMB1.36 in the same period of
2019.
- Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47)
in the first quarter of 2020, compared to RMB4.15 in the same period of 2019.
- Monthly Active Users ("MAU") on Momo application were 108.0
million in March 2020, compared to
114.4 million in March 2019.
- Total paying users of our live video service and value-added
service, without double counting the overlap and including 4.2
million paying users of Tantan Limited ("Tantan"), were 12.8
million for the first quarter of 2020, compared to 14.0 million for
the first quarter of 2019, which included 5.0 million paying users
of Tantan.
"Q1 2020 was a challenging and yet very fruitful quarter for
Momo." commented Yan Tang,
Chairman and CEO of Momo. "I am proud that the team has been able
to adapt well to the changing environment and navigate through the
challenges with solid execution against our strategic goals.
Despite the macro headwind, we are seeing plenty of growth
opportunities ahead of us. We will continue to pursue these
opportunities and drive value for our shareholders."
* This press release
contains translations of certain Renminbi amounts into U.S. dollars
at specified rates solely for the convenience of readers.
Unless otherwise noted, all translations from Renminbi to U.S.
dollars, in this press release, were made at a rate of RMB7.0808 to
US$1.00, the effective noon buying rate for March 31, 2020 as set
forth in the H.10 statistical release of the Federal Reserve
Board.
|
First Quarter of 2020 Financial Results
Net revenues
Total net revenues were RMB3,594.1
million (US$507.6 million) in the first quarter
of 2020, a decrease of 3.5% from RMB3,722.9
million in the first quarter of 2019.
Live video service revenues were RMB2,332.0 million (US$329.3 million) in the first quarter of 2020, a
decrease of 13% from RMB2,689.4
million during the same period of 2019, as a result of the
impact of COVID-19 adversely affecting the sentiment of our paying
users, especially among the top of the pyramid paying users.
Value-added service revenues mainly include virtual gift
revenues and membership subscription revenues. Total value-added
service revenues were RMB1,175.8
million (US$166.0 million) in the first quarter
of 2020, an increase of 30% from RMB903.8
million during the same period of 2019. The year-over-year
increase was primarily attributable to the continued growth of the
virtual gift business on the Momo application driven by more
functions launched and more paying scenarios introduced to enhance
the social experience of Momo users, and to a lesser extent,
the increase in the membership subscription revenues of
Tantan.
Mobile marketing revenues were RMB57.2
million (US$8.1 million) in
the first quarter of 2020, a decrease of 29% from RMB80.7 million during the same period of 2019.
The decrease in mobile marketing revenues was primarily caused by
the decreased demand from our advertising and marketing customers
as well as our strategy to underweight the line in terms of
resource allocation.
Mobile games revenues were RMB12.7
million (US$1.8 million) in
the first quarter of 2020, a decrease of 67% from RMB39.0 million in the first quarter of
2019. The decrease in mobile game revenues was mainly due to the
continued decrease in quarterly paying users of mobile games.
Net revenues from Momo segment decreased from RMB3,419.2 million in the first quarter of
2019 to RMB3,202.1 million
(US$452.2 million) in the
first quarter of 2020, primarily driven by the decrease in net
revenues from live video service, partially offset by the increase
in net revenues from value-added service. Net revenues from Tantan
segment increased from RMB295.3
million in the first quarter of 2019 to RMB381.7 million (US$53.9
million) in the first quarter of 2020, which was mainly due
to the increase in the average revenues per paying user resulting
from more features launched.
Cost and expenses
Cost and expenses were RMB3,026.1
million (US$427.4 million) in
the first quarter of 2020, a decrease of 10% from RMB3,349.4 million in the first quarter of
2019. The decrease was primarily attributable to: (a) a decrease in
share-based compensation expenses due to the related expense from
the options granted to Tantan's founders amount of RMB466.9 million as the related share options
vested in the first quarter of 2019 when the necessary performance
conditions were satisfied; (b) a decrease in revenue sharing with
broadcasters related to our live video service. The decrease was
partially offset by an increase in marketing and promotional
expenses to attract users on Momo and Tantan.
Non-GAAP cost and expenses (note 1) were RMB2,819.2 million (US$398.1 million) in the first quarter of
2020, an increase of 4% from RMB2,719.2
million during the same period of 2019.
Income from operations
Income from operations was RMB594.1
million (US$83.9
million) in the first quarter of 2020, compared to
RMB384.4 million during the same
period of 2019. Income from operations of Momo segment
was RMB770.3 million (US$108.8
million) in the first quarter of 2020, decreasing from
RMB998.6 million in the
first quarter of 2019. Loss from operations of Tantan segment
was RMB171.9 million (US$24.3 million) in the first quarter of
2020, compared to loss from operations of RMB604.6 million in the first quarter of
2019.
Non-GAAP income from operations (note 1) was RMB801.0 million (US$113.1 million) in the first quarter
of 2020, compared to RMB1,014.7
million during the same period of 2019.
Non-GAAP income from operations of Momo segment
was RMB903.1 million (US$127.5
million) in the first quarter of 2020, decreasing
from RMB1,098.9 million in the
first quarter of 2019. Non-GAAP loss from operations
of Tantan segment was RMB100.4
million (US$14.2 million) in
the first quarter of 2020, compared to non-GAAP loss from
operations of RMB77.1 million in the
first quarter of 2019.
Income tax expenses
Income tax expenses were RMB162.9 million (US$23.0 million) in the first quarter
of 2020, decreasing from RMB163.7
million in the first quarter of 2019.
Net income
Net income was RMB537.7
million (US$75.9 million) in
the first quarter of 2020, compared
to RMB286.6 million during the same period of 2019. Net
income from Momo segment was RMB707.1 million (US$99.9
million) in the first quarter of 2020, decreasing
from RMB893.9 million in the first quarter of 2019.
Net loss from Tantan segment was RMB165.1
million (US$23.3 million) in
the first quarter of 2020, compared to net loss of
RMB597.7 million in the
first quarter of 2019.
Non-GAAP net income (note 1) was RMB735.1
million (US$103.8 million) in the first quarter
of 2020, compared to RMB907.5 million
during the same period of 2019. Non-GAAP net income from
Momo segment was RMB839.9 million (US$118.6 million) in the first quarter of
2020, decreasing from RMB994.2 million in the
first quarter of 2019. Non-GAAP net loss of Tantan
segment was RMB103.2 million
(US$14.6 million) in the
first quarter of 2020, compared to non-GAAP net loss of
RMB79.6 million in the
first quarter of 2019.
Net income attributable to Momo
Inc.
Net income attributable to Momo Inc. was RMB538.9 million (US$76.1
million) in the first quarter of 2020, compared
to RMB289.3 million during the same period of 2019.
Non-GAAP net income (note 1) attributable to Momo Inc. was
RMB736.3 million (US$104.0 million) in the first quarter
of 2020, compared to RMB910.3 million
during the same period of 2019.
Net income per
ADS
Diluted net income per ADS was RMB2.46 (US$0.35)
in the first quarter of 2020, compared to RMB1.36 in
the first quarter of 2019.
Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47)
in the first quarter of 2020, compared to RMB4.15 in the first quarter of 2019.
Cash and cash flow
As of March 31, 2020, Momo's cash,
cash equivalents and short-term deposits totaled RMB15,467.2 million (US$2,184.4 million), compared to
RMB14,925.3 million as of
December 31, 2019. Net cash provided
by operating activities in the first quarter of 2020 was
RMB543.5 million (US$76.8 million), compared to RMB1,175.9 million in the first quarter of
2019.
Recent Development
On March 19, 2020, Momo's board of
directors declared a special cash dividend in the amount of
US$0.76 per ADS, or US$0.38 per ordinary share. The cash dividend was
paid in April 2020 to shareholders of
record at the close of business on April 8,
2020. The aggregate amount of cash dividends paid was
US$158.6 million.
Business Outlook
For the second quarter of 2020, the Company expects total
net revenues to be between RMB3.8
billion to RMB3.9 billion,
representing a decrease of 8.5% to 6.1% year over year. This
forecast considers the potential impact of the COVID-19 outbreak
and reflects the Company's current and preliminary views on the
market and operational conditions, which are subject to change,
particularly as to the potential impact of the COVID-19 on the
economy in China.
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in
accordance with U.S. generally accepted accounting principles
("GAAP"), we use various non-GAAP financial measures that are
adjusted from the most comparable GAAP results to exclude
share-based compensation and amortization of intangible assets from
business acquisitions, and tax impacts related to the amortization
of intangible assets from business acquisitions.
Reconciliations of our non-GAAP financial measures to our U.S.
GAAP financial measures are shown in tables at the end of this
earnings release, which provide more details about the non-GAAP
financial measures.
Our non-GAAP financial information is provided as additional
information to help investors compare business trends among
different reporting periods on a consistent basis and to enhance
investors' overall understanding of the historical and current
financial performance of our continuing operations and our
prospects for the future. Our non-GAAP financial information should
be considered in addition to results prepared in accordance with
GAAP, but should not be considered a substitute for or superior to
the GAAP results. In addition, our calculation of the non-GAAP
financial measures may be different from the calculation used by
other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP cost and operating
expenses, income (loss) from operations, net income (loss),net
income attributable to Momo Inc., and diluted net income per ADS)
is adjusted from the most comparable GAAP results to exclude
share-based compensation, amortization of intangible assets from
business acquisitions, and tax impacts related to the amortization
of intangible assets from business acquisitions. A limitation of
using these non-GAAP financial measures is that share-based
compensation, amortization of intangible assets from business
acquisitions and tax impacts related to the amortization of
intangible assets from business acquisitions have been and will
continue to be for the foreseeable future a significant recurring
expense in our results of operations. We compensate for these
limitations 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
Momo's management will host an earnings conference call on
Thursday, May 28,
2020, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time
on May 28, 2020).
All participants must preregister online prior to the call to
receive the dial-in details. Once preregistration has been
complete, participants will receive dial-in numbers, direct event
passcode, and a unique registrant ID.
PRE-REGISTER LINK
http://apac.directeventreg.com/registration/event/4085667
To join the conference, simply dial the number in the calendar
invite you receive after preregistering, enter the passcode
followed by your registrant ID, and you will join the conference
instantly.
A telephone replay of the call will be available after the
conclusion of the conference call through 9:00 a.m. U.S.
Eastern Time, June 5, 2020. The dial-in details for the replay
are as follows:
International:
|
+61-2-8199-0299
|
U.S. Toll
Free:
|
+1-855-452-5696
|
Passcode:
|
4085667
|
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of Momo's
website at http://ir.immomo.com.
About Momo
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
interactions based on location, interests and a variety of
recreational activities including live talent shows, short videos,
social games as well as other video- and audio-based interactive
experiences, such as live chats and mobile karaoke experience.
Tantan, which was added into our family of applications through
acquisition in May 2018, is a leading
social and dating application for the younger generation. Tantan is
designed to help its users find and establish romantic connections
as well as meet interesting people. For investor and media
inquiries, please contact:
Momo Inc.
Investor Relations
Phone: +86-10-5731-0538
Email: ir@immomo.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.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 and our financial outlook for the
second quarter of 2020.
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 2020 are preliminary,
unaudited and subject to audit adjustment. In addition, we may not
meet our financial outlook for the second quarter of 2020 and may
be unable to grow our business in the manner planned. We may also
modify our strategy for growth. In addition, 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, and the impact of the COVID-19 to Momo's
business operations and the economy in China. 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.
Momo
Inc.
|
Unaudited
Condensed Consolidated Statement of Operations
|
(All amounts in
thousands, except share and per share data)
|
|
Three
months
|
|
ended
March 31
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues:
|
|
|
|
|
|
Live
video service
|
2,689,413
|
|
2,332,004
|
|
329,342
|
Value-added service
|
903,849
|
|
1,175,754
|
|
166,049
|
Mobile
marketing
|
80,729
|
|
57,155
|
|
8,072
|
Mobile
games
|
39,008
|
|
12,691
|
|
1,792
|
Other
services
|
9,920
|
|
16,480
|
|
2,327
|
Total net
revenues
|
3,722,919
|
|
3,594,084
|
|
507,582
|
Cost and
expenses:
|
|
|
|
|
|
Cost of
revenues
|
(1,873,574)
|
|
(1,876,916)
|
|
(265,071)
|
Research
and development
|
(249,431)
|
|
(262,159)
|
|
(37,024)
|
Sales
and marketing
|
(623,848)
|
|
(709,808)
|
|
(100,244)
|
General
and administrative
|
(602,596)
|
|
(177,249)
|
|
(25,032)
|
Total cost and
expenses
|
(3,349,449)
|
|
(3,026,132)
|
|
(427,371)
|
Other operating
income
|
10,954
|
|
26,119
|
|
3,689
|
Income from
operations
|
384,424
|
|
594,071
|
|
83,900
|
Interest
income
|
93,778
|
|
130,823
|
|
18,476
|
Interest
expense
|
(18,989)
|
|
(19,819)
|
|
(2,799)
|
Impairment loss on
long-term investments
|
(4,500)
|
|
(6,000)
|
|
(847)
|
Income before
income tax and share of income on equity method
investments
|
454,713
|
|
699,075
|
|
98,730
|
Income tax
expenses
|
(163,651)
|
|
(162,891)
|
|
(23,005)
|
Income before
share of income on equity method investments
|
291,062
|
|
536,184
|
|
75,725
|
Share of (loss)
income on equity method investments
|
(4,504)
|
|
1,527
|
|
216
|
Net
income
|
286,558
|
|
537,711
|
|
75,941
|
Less: net loss
attributable to non-controlling interest
|
(2,759)
|
|
(1,195)
|
|
(169)
|
Net income
attributable to the shareholders of Momo Inc.
|
289,317
|
|
538,906
|
|
76,110
|
Net income per share
attributable to ordinary shareholders
|
|
|
|
|
|
Basic
|
0.70
|
|
1.29
|
|
0.18
|
Diluted
|
0.68
|
|
1.23
|
|
0.17
|
Weighted average
shares used in calculating net income per ordinary
share
|
|
|
|
|
|
Basic
|
413,967,371
|
|
417,294,242
|
|
417,294,242
|
Diluted
|
425,890,818
|
|
453,331,322
|
|
453,331,322
|
Momo
Inc.
|
Unaudited
Condensed Consolidated Statement of Comprehensive
Income
|
(All amounts in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
Three
months
|
|
ended March
31
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
Net
income
|
286,558
|
|
537,711
|
|
75,941
|
Other comprehensive
loss, net of tax
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(72,981)
|
|
(867)
|
|
(122)
|
Comprehensive
income
|
213,577
|
|
536,844
|
|
75,819
|
Less: comprehensive
loss attributed to the non-controlling interest
|
(5,234)
|
|
(5,569)
|
|
(786)
|
Comprehensive
income attributable to Momo Inc.
|
218,811
|
|
542,413
|
|
76,605
|
Momo
Inc.
|
Unaudited
Condensed Consolidated Balance Sheets
|
(All amounts in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
December
31
|
|
March 31
|
|
March 31
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
RMB
|
|
US$
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
2,612,743
|
|
2,799,214
|
|
395,325
|
Short-term
deposits
|
12,312,585
|
|
12,668,028
|
|
1,789,067
|
Accounts receivable, net of
allowance for doubtful accounts of RMB 12,209 and
RMB11,555 as of December 31, 2019
and March 31, 2020, respectively
|
265,155
|
|
295,513
|
|
41,734
|
Amount due from a related
party
|
4,382
|
|
2,258
|
|
319
|
Prepaid expenses and other
current assets
|
599,000
|
|
598,495
|
|
84,523
|
Total current
assets
|
15,793,865
|
|
16,363,508
|
|
2,310,968
|
Long-term
deposits
|
300,000
|
|
300,000
|
|
42,368
|
Right-of-use assets,
net
|
190,552
|
|
163,926
|
|
23,151
|
Property and equipment,
net
|
346,345
|
|
339,560
|
|
47,955
|
Intangible assets
|
890,303
|
|
863,878
|
|
122,003
|
Rental deposits
|
25,028
|
|
25,201
|
|
3,559
|
Long-term
investments
|
495,905
|
|
494,545
|
|
69,843
|
Other non-current
assets
|
44,009
|
|
55,796
|
|
7,880
|
Deferred tax
assets
|
37,064
|
|
35,026
|
|
4,947
|
Goodwill
|
4,360,610
|
|
4,434,769
|
|
626,309
|
Total
assets
|
22,483,681
|
|
23,076,209
|
|
3,258,983
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable
|
714,323
|
|
635,546
|
|
89,755
|
Deferred revenue
|
503,461
|
|
482,455
|
|
68,135
|
Accrued expenses and other
current liabilities
|
985,873
|
|
838,913
|
|
118,477
|
Amount due to related
parties
|
29,606
|
|
34,590
|
|
4,885
|
Lease liabilities due within
one year
|
135,169
|
|
123,451
|
|
17,435
|
Income tax
payable
|
153,976
|
|
174,320
|
|
24,619
|
Dividends payable
|
-
|
|
1,123,364
|
|
158,649
|
Deferred consideration in
connection with business acquisitions
|
84,346
|
|
85,788
|
|
12,116
|
Total current
liabilities
|
2,606,754
|
|
3,498,427
|
|
494,071
|
Deferred tax
liabilities
|
222,576
|
|
215,970
|
|
30,501
|
Convertible senior
notes
|
4,954,352
|
|
5,043,106
|
|
712,223
|
Share-based compensation
liability
|
902,047
|
|
930,603
|
|
131,426
|
Lease liabilities
|
56,498
|
|
42,972
|
|
6,069
|
Other non-current
liabilities
|
22,672
|
|
41,522
|
|
5,864
|
Total
liabilities
|
8,764,899
|
|
9,772,600
|
|
1,380,154
|
Shareholder's equity
(i)
|
13,718,782
|
|
13,303,609
|
|
1,878,829
|
Total liabilities
and shareholder's equity
|
22,483,681
|
|
23,076,209
|
|
3,258,983
|
|
|
|
|
|
|
(i): As of March
31, 2020, the number of ordinary shares issued and outstanding was
417,412,368.
|
Momo
Inc.
|
Unaudited
Condensed Consolidated Statement of Cash Flows
|
(All amounts in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
Three
months
|
|
ended March
31
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net
income
|
286,558
|
|
537,711
|
|
75,941
|
Adjustments to reconcile net income to net cash provided by
operating
activities:
|
|
|
|
|
|
Depreciation of property and
equipment
|
48,400
|
|
52,381
|
|
7,398
|
Amortization of intangible
assets
|
38,595
|
|
39,882
|
|
5,632
|
Share-based
compensation
|
593,074
|
|
168,527
|
|
23,800
|
Share of loss (income) on
equity method investments
|
4,504
|
|
(1,527)
|
|
(216)
|
Impairment loss on long-term
investments
|
4,500
|
|
6,000
|
|
847
|
Gain on subsidiary
deconsolidation
|
-
|
|
(6,676)
|
|
(943)
|
Loss on disposal of property
and equipment
|
4
|
|
-
|
|
-
|
Provision of allowance for
doubtful accounts
|
-
|
|
(654)
|
|
(92)
|
Cash received on investment
income distribution
|
-
|
|
1,153
|
|
163
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
409,414
|
|
(37,979)
|
|
(5,364)
|
Prepaid expenses and other
current assets
|
(18,189)
|
|
1,162
|
|
164
|
Amount due from related
parties
|
-
|
|
2,123
|
|
300
|
Rental deposits
|
(1,317)
|
|
(173)
|
|
(24)
|
Deferred tax
assets
|
25,537
|
|
2,038
|
|
288
|
Other non-current
assets
|
31,439
|
|
14,840
|
|
2,096
|
Accounts payable
|
32,515
|
|
(80,073)
|
|
(11,308)
|
Income tax
payable
|
(71,558)
|
|
20,344
|
|
2,873
|
Deferred revenue
|
18,842
|
|
(21,023)
|
|
(2,969)
|
Accrued expenses and other
current liabilities
|
(185,495)
|
|
(154,243)
|
|
(21,783)
|
Amount due to related
parties
|
(25,965)
|
|
4,984
|
|
704
|
Deferred tax
liability
|
(15,542)
|
|
(9,971)
|
|
(1,408)
|
Other non-current
liabilities
|
593
|
|
4,670
|
|
660
|
Net cash provided
by operating activities
|
1,175,909
|
|
543,496
|
|
76,759
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchase of property and
equipment
|
(52,798)
|
|
(38,167)
|
|
(5,390)
|
Proceeds from disposal of
property and equipment
|
5
|
|
2
|
|
-
|
Payment for long-term
investments
|
(12,000)
|
|
(4,500)
|
|
(636)
|
Cash dividend
received
|
-
|
|
233
|
|
33
|
Cash outflow due to
subsidiary deconsolidation
|
-
|
|
(1,026)
|
|
(145)
|
Purchase of short-term
deposits
|
(3,485,005)
|
|
(3,300,000)
|
|
(466,049)
|
Cash received on maturity of
short-term deposits
|
3,005,005
|
|
2,979,140
|
|
420,735
|
Payment for short-term
investments
|
(210,000)
|
|
(10,000)
|
|
(1,412)
|
Cash received from sales of
short-term investment
|
100,000
|
|
10,000
|
|
1,412
|
Net cash used in
investing activities
|
(654,793)
|
|
(364,318)
|
|
(51,452)
|
Cash flows from
financing activities:
|
|
|
|
|
|
Deferred payment for
business acquisition
|
(305,067)
|
|
-
|
|
-
|
Proceeds from exercise of
share options
|
83
|
|
-
|
|
-
|
Deferred payment of purchase
of property and equipment
|
(94)
|
|
-
|
|
-
|
Net cash used in
financing activities
|
(305,078)
|
|
-
|
|
-
|
Effect of exchange
rate changes
|
(5,730)
|
|
7,293
|
|
1,028
|
Net increase in
cash and cash equivalents
|
210,308
|
|
186,471
|
|
26,335
|
Cash and cash
equivalents at the beginning of period
|
2,468,034
|
|
2,612,743
|
|
368,990
|
Cash and cash
equivalents at the end of period
|
2,678,342
|
|
2,799,214
|
|
395,325
|
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,
2019
|
|
ended March 31,
2020
|
|
ended March 31,
2020
|
|
GAAP
|
Amortization
of intangible
assets from
business
acquisitions
|
Share-
based
compensation
|
Tax
impacts
(ii)
|
Non-GAAP
|
|
GAAP
|
Amortization
of intangible
assets from
business
acquisitions
|
Share-
based
compensation
|
Tax
impacts
(ii)
|
Non-GAAP
|
|
GAAP
|
Amortization
of intangible
assets from
business
acquisitions
|
Share-
based
compensation
|
Tax
impacts
(ii)
|
Non-GAAP
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
|
RMB
|
RMB
|
RMB
|
RMB
|
RMB
|
|
US$
|
US$
|
US$
|
US$
|
US$
|
Cost of
revenues
|
(1,873,574)
|
18,021
|
4,186
|
-
|
(1,851,367)
|
|
(1,876,916)
|
18,645
|
6,969
|
-
|
(1,851,302)
|
|
(265,071)
|
2,633
|
984
|
-
|
(261,454)
|
Research and
development
|
(249,431)
|
2,289
|
39,730
|
-
|
(207,412)
|
|
(262,159)
|
2,368
|
42,760
|
-
|
(217,031)
|
|
(37,024)
|
334
|
6,039
|
-
|
(30,651)
|
Sales and
marketing
|
(623,848)
|
16,853
|
39,452
|
-
|
(567,543)
|
|
(709,808)
|
17,436
|
47,074
|
-
|
(645,298)
|
|
(100,244)
|
2,462
|
6,648
|
-
|
(91,134)
|
General and
administrative
|
(602,596)
|
-
|
509,706
|
-
|
(92,890)
|
|
(177,249)
|
-
|
71,724
|
-
|
(105,525)
|
|
(25,032)
|
-
|
10,129
|
-
|
(14,903)
|
Cost and
operating
expenses
|
(3,349,449)
|
37,163
|
593,074
|
-
|
(2,719,212)
|
|
(3,026,132)
|
38,449
|
168,527
|
-
|
(2,819,156)
|
|
(427,371)
|
5,429
|
23,800
|
-
|
(398,142)
|
Income from
operations
|
384,424
|
37,163
|
593,074
|
-
|
1,014,661
|
|
594,071
|
38,449
|
168,527
|
-
|
801,047
|
|
83,900
|
5,429
|
23,800
|
-
|
113,129
|
Net income
attributable to
Momo Inc.
|
289,317
|
37,163
|
593,074
|
(9,291)
|
910,263
|
|
538,906
|
38,449
|
168,527
|
(9,612)
|
736,270
|
|
76,110
|
5,429
|
23,800
|
(1,357)
|
103,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(ii) Includes tax
impacts related to the amortization of intangible assets from
business acquisition. There is no tax impact related to share-based
compensation.
|
Momo
Inc.
|
Unaudited
Condensed Segment Report
|
(All amounts in
thousands, except share and per share data)
|
|
|
Three
months
|
|
ended
March 31, 2020
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Live
video service
|
2,325,945
|
|
6,059
|
|
-
|
|
2,332,004
|
|
329,342
|
Value-added service
|
800,103
|
|
375,651
|
|
-
|
|
1,175,754
|
|
166,049
|
Mobile
marketing
|
57,155
|
|
-
|
|
-
|
|
57,155
|
|
8,072
|
Mobile
games
|
12,691
|
|
-
|
|
-
|
|
12,691
|
|
1,792
|
Other
services
|
6,195
|
|
-
|
|
10,285
|
|
16,480
|
|
2,327
|
Total net
revenues
|
3,202,089
|
|
381,710
|
|
10,285
|
|
3,594,084
|
|
507,582
|
Cost and expenses
(iii):
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(1,736,517)
|
|
(132,278)
|
|
(8,121)
|
|
(1,876,916)
|
|
(265,071)
|
Research
and development
|
(183,900)
|
|
(78,259)
|
|
-
|
|
(262,159)
|
|
(37,024)
|
Sales
and marketing
|
(394,364)
|
|
(315,421)
|
|
(23)
|
|
(709,808)
|
|
(100,244)
|
General
and administrative
|
(143,135)
|
|
(27,680)
|
|
(6,434)
|
|
(177,249)
|
|
(25,032)
|
Total cost and
expenses
|
(2,457,916)
|
|
(553,638)
|
|
(14,578)
|
|
(3,026,132)
|
|
(427,371)
|
Other operating
income
|
26,119
|
|
-
|
|
-
|
|
26,119
|
|
3,689
|
Income (loss) from
operations
|
770,292
|
|
(171,928)
|
|
(4,293)
|
|
594,071
|
|
83,900
|
Interest
income
|
129,278
|
|
1,472
|
|
73
|
|
130,823
|
|
18,476
|
Interest
expense
|
(19,819)
|
|
-
|
|
-
|
|
(19,819)
|
|
(2,799)
|
Impairment loss on
long-term investments
|
(6,000)
|
|
-
|
|
-
|
|
(6,000)
|
|
(847)
|
Income (loss)
before income tax and
share of income on equity method
investments
|
873,751
|
|
(170,456)
|
|
(4,220)
|
|
699,075
|
|
98,730
|
Income tax (expenses)
benefits
|
(168,212)
|
|
5,321
|
|
-
|
|
(162,891)
|
|
(23,005)
|
Income (loss)
before share of income
on equity method
investments
|
705,539
|
|
(165,135)
|
|
(4,220)
|
|
536,184
|
|
75,725
|
Share of loss on
equity method
investments
|
1,527
|
|
-
|
|
-
|
|
1,527
|
|
216
|
Net income
(loss)
|
707,066
|
|
(165,135)
|
|
(4,220)
|
|
537,711
|
|
75,941
|
|
|
|
|
|
|
|
|
|
|
(iii) Share-based compensation was allocated in
cost of revenues and operating expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
ended March 31,
2020
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Cost of
revenues
|
5,611
|
|
1,358
|
|
-
|
|
6,969
|
|
984
|
Research and
development
|
26,802
|
|
15,958
|
|
-
|
|
42,760
|
|
6,039
|
Sales and
marketing
|
45,441
|
|
1,633
|
|
-
|
|
47,074
|
|
6,648
|
General and
administrative
|
54,984
|
|
14,121
|
|
2,619
|
|
71,724
|
|
10,129
|
Total cost and
expenses
|
132,838
|
|
33,070
|
|
2,619
|
|
168,527
|
|
23,800
|
Momo
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,
2020
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Operating income
(loss)
|
770,292
|
|
(171,928)
|
|
(4,293)
|
|
594,071
|
|
83,900
|
Share-based
compensation
|
132,838
|
|
33,070
|
|
2,619
|
|
168,527
|
|
23,800
|
Amortization of
intangible assets from
business acquisitions
|
-
|
|
38,449
|
|
-
|
|
38,449
|
|
5,429
|
Non-GAAP operating
income (loss)
|
903,130
|
|
(100,409)
|
|
(1,674)
|
|
801,047
|
|
113,129
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
707,066
|
|
(165,135)
|
|
(4,220)
|
|
537,711
|
|
75,941
|
Share-based
compensation
|
132,838
|
|
33,070
|
|
2,619
|
|
168,527
|
|
23,800
|
Amortization of
intangible assets from
business acquisitions
|
-
|
|
38,449
|
|
-
|
|
38,449
|
|
5,429
|
Tax
impacts
|
-
|
|
(9,612)
|
|
-
|
|
(9,612)
|
|
(1,357)
|
Non-GAAP net
income (loss)
|
839,904
|
|
(103,228)
|
|
(1,601)
|
|
735,075
|
|
103,813
|
Momo
Inc.
|
Unaudited
Condensed Segment Report
|
(All amounts in
thousands, except share and per share data)
|
|
Three
months
|
ended March 31,
2019
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$[2]
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Live
video service
|
2,689,413
|
|
-
|
|
-
|
|
2,689,413
|
|
400,735
|
Value-added service
|
608,502
|
|
295,347
|
|
-
|
|
903,849
|
|
134,678
|
Mobile
marketing
|
80,729
|
|
-
|
|
-
|
|
80,729
|
|
12,029
|
Mobile
games
|
39,008
|
|
-
|
|
-
|
|
39,008
|
|
5,812
|
Other
services
|
1,557
|
|
-
|
|
8,363
|
|
9,920
|
|
1,478
|
Total net
revenues
|
3,419,209
|
|
295,347
|
|
8,363
|
|
3,722,919
|
|
554,732
|
Cost and expenses
(iv):
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(1,770,038)
|
|
(98,856)
|
|
(4,680)
|
|
(1,873,574)
|
|
(279,171)
|
Research
and development
|
(184,273)
|
|
(65,158)
|
|
-
|
|
(249,431)
|
|
(37,166)
|
Sales
and marketing
|
(362,958)
|
|
(255,921)
|
|
(4,969)
|
|
(623,848)
|
|
(92,956)
|
General
and administrative
|
(114,264)
|
|
(479,965)
|
|
(8,367)
|
|
(602,596)
|
|
(89,790)
|
Total cost and
expenses
|
(2,431,533)
|
|
(899,900)
|
|
(18,016)
|
|
(3,349,449)
|
|
(499,083)
|
Other operating
income
|
10,954
|
|
-
|
|
-
|
|
10,954
|
|
1,632
|
Income (loss) from
operations
|
998,630
|
|
(604,553)
|
|
(9,653)
|
|
384,424
|
|
57,281
|
Interest
income
|
90,858
|
|
2,891
|
|
29
|
|
93,778
|
|
13,973
|
Interest
expense
|
(18,989)
|
|
-
|
|
-
|
|
(18,989)
|
|
(2,829)
|
Impairment loss on
long-term investments
|
(4,500)
|
|
-
|
|
-
|
|
(4,500)
|
|
(671)
|
Income (loss)
before income tax and share
of income on equity method
investments
|
1,065,999
|
|
(601,662)
|
|
(9,624)
|
|
454,713
|
|
67,754
|
Income tax (expenses)
benefits
|
(167,603)
|
|
3,952
|
|
-
|
|
(163,651)
|
|
(24,385)
|
Income (loss)
before share of income on
equity method investments
|
898,396
|
|
(597,710)
|
|
(9,624)
|
|
291,062
|
|
43,369
|
Share of income on
equity method
investments
|
(4,504)
|
|
-
|
|
-
|
|
(4,504)
|
|
(671)
|
Net income
(loss)
|
893,892
|
|
(597,710)
|
|
(9,624)
|
|
286,558
|
|
42,698
|
|
|
|
|
|
|
|
|
|
|
(iv) Share-based
compensation was allocated in cost of revenues and operating
expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
ended March 31,
2019
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Cost of
revenues
|
3,606
|
|
580
|
|
-
|
|
4,186
|
|
624
|
Research and
development
|
21,713
|
|
18,017
|
|
-
|
|
39,730
|
|
5,920
|
Sales and
marketing
|
35,474
|
|
3,978
|
|
-
|
|
39,452
|
|
5,879
|
General and
administrative
|
39,491
|
|
467,684
|
|
2,531
|
|
509,706
|
|
75,949
|
Total cost and
expenses
|
100,284
|
|
490,259
|
|
2,531
|
|
593,074
|
|
88,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[2] All
translations from RMB to U.S. dollars are made at a rate of RMB
6.7112 to US$1.00, the effective noon buying rate for March 29,
2019
as set forth in the H.10 statistical release of the Federal Reserve
Board.
|
Momo
Inc.
|
Reconciliation of
GAAP and NON-GAAP Results of Unaudited Segment
Report
|
(All amounts in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
ended March 31,
2019
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Operating income
(loss)
|
998,630
|
|
(604,553)
|
|
(9,653)
|
|
384,424
|
|
57,281
|
Share-based
compensation
|
100,284
|
|
490,259
|
|
2,531
|
|
593,074
|
|
88,372
|
Amortization of
intangible assets from
business acquisitions
|
-
|
|
37,163
|
|
-
|
|
37,163
|
|
5,537
|
Non-GAAP operating
income (loss)
|
1,098,914
|
|
(77,131)
|
|
(7,122)
|
|
1,014,661
|
|
151,190
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
893,892
|
|
(597,710)
|
|
(9,624)
|
|
286,558
|
|
42,698
|
Share-based
compensation
|
100,284
|
|
490,259
|
|
2,531
|
|
593,074
|
|
88,372
|
Amortization of
intangible assets from
business acquisitions
|
-
|
|
37,163
|
|
-
|
|
37,163
|
|
5,537
|
Tax
impacts
|
-
|
|
(9,291)
|
|
-
|
|
(9,291)
|
|
(1,384)
|
Non-GAAP net
income (loss)
|
994,176
|
|
(79,579)
|
|
(7,093)
|
|
907,504
|
|
135,223
|
View original
content:http://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-first-quarter-of-2020-301066759.html
SOURCE Momo Inc.