BEIJING, June 6, 2023
/PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group"
or the "Company"), a leading mobile social and entertainment
platform in China, today announced
its unaudited financial results for the first quarter of 2023.
First Quarter of 2023 Highlights
- Net revenues decreased by 10.5% year over year to RMB2,818.9 million (US$410.5 million*) in the first quarter of
2023.
- Net income attributable to Hello Group Inc. increased to
RMB390.3 million (US$56.8 million) in the first quarter of 2023,
from RMB289.9 million in the same
period of 2022.
- Non-GAAP net income attributable to Hello Group Inc. (note 1)
increased to RMB471.9 million
(US$68.7 million) in the first
quarter of 2023, from RMB398.5
million in the same period of 2022.
- Diluted net income per American Depositary Share ("ADS") was
RMB1.96 (US$0.29) in the first quarter of 2023, compared
to RMB1.42 in the same period of
2022.
- Non-GAAP diluted net income per ADS (note 1) was RMB2.36 (US$0.34)
in the first quarter of 2023, compared to RMB1.94 in the same period of 2022.
- Monthly Active Users ("MAU") on Momo application were 106.5
million in March 2023, compared to
110.9 million in March 2022. MAU on
Tantan application were 19.5 million in March 2023, compared to 25.6 million in
March 2022.
- For the Momo app total paying users was 7.8 million for the
first quarter of 2023, compared to 8.6 million for the same period
last year. Tantan had 1.6 million paying users for the first
quarter of 2023 compared to 2.4 million from the year ago
period.
"We delivered solid results in the first quarter, laying a good
foundation for our business development in the post-pandemic era."
Commented Yan Tang, Chairman and CEO of Hello Group. "I am happy to
see that our team has been executing well against our strategic
priorities across all business lines. Tantan delivered its first
quarterly profit at the operating level, and the Momo cash cow
business maintained its productivity thanks to our solid cost
control, both of which contributed to the improvement of the
Group's profitability."
First Quarter of 2023 Financial Results
Net revenues
Total net revenues were RMB2,818.9
million (US$410.5 million) in
the first quarter of 2023, a decrease of 10.5% from RMB3,148.1 million in the first quarter of
2022.
Live video service revenues were RMB1,429.3 million (US$208.1 million) in the first quarter of 2023, a
decrease of 11.2% from RMB1,608.7
million during the same period of 2022. The decrease was
primarily attributable to pressure on Momo application caused by
COVID related factors and products adjustments to meet regulatory
changes in the second quarter of 2022.
Value-added service revenues mainly include virtual gift
revenues and membership subscription revenues. Total value-added
service revenues were RMB1,361.5
million (US$198.2 million) in
the first quarter of 2023, a decrease of 8.2% from RMB1,483.4 million during the same period of
2022. The year over year decrease was primarily due to the negative
impact of pandemic on traffic and users' propensity to pay, as well
as channel investments reduction of Tantan. The decrease was
partially offset by the rapid revenue growth from the new
standalone apps.
Mobile marketing revenues were RMB21.1
million (US$3.1 million) in
the first quarter of 2023, a decrease of 24.4% from RMB27.9 million during the same period of 2022.
The decrease in mobile marketing revenues was due to the decreased
demand from brand marketers.
Mobile games revenues were RMB3.7
million (US$0.5 million) in
the first quarter of 2023, a decrease of 85.5% from RMB25.5 million in the first quarter of 2022. The
decrease in mobile game revenues was mainly due to the Company's
strategic decision to pivot away from game distribution
business.
Net revenues from the Momo segment decreased from RMB2,798.9 million in the first quarter of 2022
to RMB2,510.1 million (US$365.5 million) in the first quarter of 2023,
primarily due to the decrease in net revenues from live video
service and value-added service on Momo application, partially
offset by the growth of value-added service business from the new
standalone apps. Net revenues from the Tantan segment decreased
from RMB349.0 million in the first
quarter of 2022 to RMB308.6 million
(US$44.9 million) in the first
quarter of 2023, due to the negative impact of COVID and the
reduction in channel investments.
Cost and expenses
Cost and expenses were RMB2,419.1
million (US$352.2 million) in
the first quarter of 2023, a decrease of 14.2% from RMB2,820.0 million in the first quarter of 2022.
The decrease was primarily attributable to: (a) a decrease in sales
and marketing expenses due to our initiatives to control cost and
optimize Tantan's channel marketing strategy; (b) a decrease in
revenue sharing with broadcasters related to Momo's core live video
service and with virtual gift recipients for virtual gift service
on the Momo application, which was partially offset by an increase
in revenue sharing with virtual gift recipients for new standalone
apps; (c) a decrease in salary expenses and share-based
compensation expenses, due to our continuous optimization in
personnel costs and the decreased fair value of newly granted share
options.
Non-GAAP cost and expenses (note 1) were RMB2,337.4 million (US$340.4 million) in the first quarter of 2023, a
decrease of 13.8% from RMB2,711.4
million during the same period of 2022.
Income from operations
Income from operations was RMB436.2
million (US$63.5 million) in
the first quarter of 2023, compared to RMB352.0 million during the same period of 2022.
Income from operations of the Momo segment was RMB435.0 million (US$63.3
million) in the first quarter of 2023, which decreased from
RMB519.2 million in the first quarter
of 2022. Income from operations of the Tantan segment was
RMB5.2 million (US$0.8 million) in the first quarter of 2023,
compared to loss from operations of RMB161.8
million in the first quarter of 2022.
Non-GAAP income from operations (note 1) was RMB517.8 million (US$75.4
million) in the first quarter of 2023, compared to
RMB460.6 million during the same
period of 2022. Non-GAAP income from operations of the Momo segment
was RMB507.5 million (US$73.9 million) in the first quarter of 2023,
which decreased from RMB624.0 million
in the first quarter of 2022. Non-GAAP income from operations of
the Tantan segment was RMB14.5
million (US$2.1 million) in
the first quarter of 2023, compared to non-GAAP loss from
operations of RMB157.9 million in the
first quarter of 2022.
Income tax expenses
Income tax expenses were RMB122.6
million (US$17.9 million) in
the first quarter of 2023, compared to RMB150.8 million in the first quarter of 2022.
The decrease was primarily due to the lower profit in the first
quarter of 2023 from Momo segment.
Net income
Net income was RMB389.5 million
(US$56.7 million) in the first
quarter of 2023, compared to RMB288.8
million during the same period of 2022. Net income from the
Momo segment was RMB389.0 million
(US$56.6 million) in the first
quarter of 2023, compared to RMB456.5
million in the same period of 2022. Net income from the
Tantan segment was RMB4.5 million
(US$0.7 million) in the first quarter
of 2023, compared to a net loss of RMB162.4
million in the first quarter of 2022.
Non-GAAP net income (note 1) was RMB471.1
million (US$68.6 million) in
the first quarter of 2023, compared to RMB397.4 million during the same period of 2022.
Non-GAAP net income from the Momo segment was RMB461.5 million (US$67.2
million) in the first quarter of 2023, which decreased from
RMB561.3 million in the first quarter
of 2022. Non-GAAP net income of the Tantan segment was RMB13.7 million (US$2.0
million) in the first quarter of 2023, compared to a
non-GAAP net loss of RMB158.6 million
in the first quarter of 2022.
Net income attributable to Hello Group
Inc.
Net income attributable to Hello Group Inc. was RMB390.3 million (US$56.8
million) in the first quarter of 2023, compared to
RMB289.9 million during the same
period of 2022.
Non-GAAP net income (note 1) attributable to Hello Group Inc.
was RMB471.9 million (US$68.7 million) in the first quarter of 2023,
compared to RMB398.5 million during
the same period of 2022.
Net income per ADS
Diluted net income per ADS was RMB1.96 (US$0.29)
in the first quarter of 2023, compared to RMB1.42 in the first quarter of 2022.
Non-GAAP diluted net income per ADS (note 1) was RMB2.36 (US$0.34)
in the first quarter of 2023, compared to RMB1.94 in the first quarter of 2022.
Cash and cash flow
As of March 31, 2023, the
Company's cash, cash equivalents, short-term deposits, long-term
deposits, short-term investments, short-term restricted cash and
long-term restricted cash totaled RMB13,352.2 million (US$1,944.2 million), compared to RMB13,398.8 million as of December 31, 2022.
Net cash provided by operating activities in the first quarter
of 2023 was RMB451.1 million
(US$65.7 million), compared to
RMB43.3 million in the first quarter
of 2022.
Recent Development
Payment of a special cash dividend
In March 2023, Hello Group's board
of directors declared a special cash dividend in the amount of
US$0.72 per ADS, or US$0.36 per ordinary share. The cash dividend was
paid in May 2023 to shareholders of
record at the close of business on April 28,
2023. The aggregate amount of cash dividends paid was
US$136.6 million.
Execution of share repurchase program
On June 7, 2022, Hello Group's
board of directors authorized a share repurchase program under
which the Company may repurchase up to US$200 million of its shares over the next 24
months. As of June 6, 2023, the
Company has repurchased 12.1 million ADSs for US$57.2 million on the open market under this
program, at an average purchase price of US$4.72 per ADS.
Business Outlook
For the second quarter of 2023, the Company expects total net
revenues to be between RMB3.0 billion
to RMB3.1 billion, representing a
decrease of 3.5% to 0.3% 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, June 6,
2023, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time
on June 6, 2023).
Participants can register for the conference call by navigating
to:
https://s1.c-conf.com/diamondpass/10030926-ahys7h.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 13, 2023. The dial-in details for the replay
are as follows:
U.S. / Canada:
1-855-883-1031
Hong Kong:
800-930-639
Passcode: 10030926
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of Hello
Group's website at https://ir.hellogroup.com.
About Hello Group Inc.
We are a leading player in China's online social and entertainment space.
Through Momo, Tantan and other properties within our product
portfolio, we enable users to discover new relationships, expand
their social connections and build meaningful
interactions. Momo is a mobile application that connects
people and facilitates social interactions based on location,
interests and a variety of online recreational activities. Tantan,
which was added into our family of applications through acquisition
in May 2018, is a leading social and dating application.
Tantan is designed to help its users find and establish romantic
connections as well as meet interesting people. We also operate a
number of other applications to serve different social and
entertainment demands from our users.
For investor and media inquiries, please contact:
Hello Group Inc.
Investor Relations
Phone: +86-10-5731-0538
Email: ir@hellogroup.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: eric.yuan@christensencomms.com
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
Safe Harbor Statement
This news release contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements include but are not
limited to our management quotes, our financial outlook for the
second quarter of 2023, 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 2023 are preliminary,
unaudited and subject to audit adjustment. In addition, we may not
meet our financial outlook for the second quarter of 2023 and may
be unable to grow our business in the manner planned. We may also
modify our strategy for growth. Moreover, there are other
risks and uncertainties that could cause our actual results to
differ from what we currently anticipate, including those relating
to our ability to retain and grow our user base, our ability to
attract and retain sufficiently trained professionals to support
our operations, our ability to anticipate and develop new services
and enhance existing services to meet the demand of our users or
customers, the impact of the COVID-19 pandemic on the Company's
business operations and the economy in China, the market price of the Company's stock
prevailing from time to time, the nature of other investment
opportunities presented to the Company from time to time, the
Company's cash flows from operations, general economic conditions,
and other factors. For additional information on these and
other important factors that could adversely affect our business,
financial condition, results of operations, and prospects, please
see our filings with the U.S. Securities and Exchange
Commission.
All information provided in this press release and in the
attachments is as of the date of the press release. We undertake no
obligation to update any forward-looking statement, whether as a
result of new information, future events or otherwise, after the
date of this release, except as required by law. Such information
speaks only as of the date of this release.
* 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 RMB 6.8676 to US$1.00,
the effective noon buying rate for March 31, 2023 as set forth in
the H.10 statistical release of the Federal Reserve
Board.
|
Hello Group
Inc.
|
Unaudited Condensed
Consolidated Statement of Operations
|
(All amounts in
thousands, except share and per share data)
|
|
Three months
|
Ended March
31
|
|
2022
|
|
2023
|
|
2023
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues:
|
|
|
|
|
|
Live video
service
|
1,608,723
|
|
1,429,340
|
|
208,128
|
Value-added
service
|
1,483,431
|
|
1,361,469
|
|
198,246
|
Mobile
marketing
|
27,873
|
|
21,071
|
|
3,068
|
Mobile games
|
25,497
|
|
3,699
|
|
539
|
Other
services
|
2,554
|
|
3,279
|
|
477
|
Total net
revenues
|
3,148,078
|
|
2,818,858
|
|
410,458
|
Cost and
expenses:
|
|
|
|
|
|
Cost of
revenues
|
(1,821,388)
|
|
(1,664,188)
|
|
(242,325)
|
Research and
development
|
(250,195)
|
|
(236,803)
|
|
(34,481)
|
Sales and
marketing
|
(588,577)
|
|
(379,786)
|
|
(55,301)
|
General and
administrative
|
(159,835)
|
|
(138,298)
|
|
(20,138)
|
Total cost and
expenses
|
(2,819,995)
|
|
(2,419,075)
|
|
(352,245)
|
Other operating income
(loss), net
|
23,931
|
|
36,394
|
|
5,299
|
Income from
operations
|
352,014
|
|
436,177
|
|
63,512
|
Interest
income
|
97,857
|
|
99,787
|
|
14,530
|
Interest
expense
|
(19,334)
|
|
(10,415)
|
|
(1,517)
|
Other gain or loss,
net
|
11,619
|
|
-
|
|
-
|
Income before income
tax and share of income on equity method
investments
|
442,156
|
|
525,549
|
|
76,525
|
Income tax
expenses
|
(150,774)
|
|
(122,613)
|
|
(17,854)
|
Income before share
of income on equity method investments
|
291,382
|
|
402,936
|
|
58,671
|
Share of loss income on
equity method investments
|
(2,600)
|
|
(13,475)
|
|
(1,962)
|
Net
income
|
288,782
|
|
389,461
|
|
56,709
|
Less: net loss
attributable to non-controlling interest
|
(1,103)
|
|
(828)
|
|
(121)
|
Net income
attributable to the shareholders of Hello Group Inc.
|
289,885
|
|
390,289
|
|
56,830
|
Net income per share
attributable to ordinary shareholders
|
|
|
|
|
|
Basic
|
0.73
|
|
1.04
|
|
0.15
|
Diluted
|
0.71
|
|
0.98
|
|
0.14
|
Weighted average shares
used in calculating net income per ordinary share
|
|
|
|
|
|
Basic
|
395,240,339
|
|
377,017,080
|
|
377,017,080
|
Diluted
|
407,034,988
|
|
409,102,277
|
|
409,102,277
|
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
|
|
2022
|
|
2023
|
|
2023
|
|
RMB
|
|
RMB
|
|
US$
|
Net
income
|
288,782
|
|
389,461
|
|
56,709
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
Foreign currency
translation adjustment
|
11,050
|
|
2,181
|
|
318
|
Comprehensive
income
|
299,832
|
|
391,642
|
|
57,027
|
Less: comprehensive
loss attributed to the non-controlling
interest
|
(2,036)
|
|
(1,670)
|
|
(243)
|
Comprehensive income
attributable to Hello Group
Inc.
|
301,868
|
|
393,312
|
|
57,270
|
Hello Group
Inc.
|
Unaudited Condensed
Consolidated Balance Sheets
|
(All amounts in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
December 31
|
|
March 31
|
|
March 31
|
|
2022
|
|
2023
|
|
2023
|
RMB
|
RMB
|
|
US$
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
5,018,129
|
|
5,369,904
|
|
781,919
|
Short-term
deposits
|
5,300,000
|
|
5,199,364
|
|
757,086
|
Restricted
cash
|
97,706
|
|
97,537
|
|
14,202
|
Short-term
investments
|
300,240
|
|
302,970
|
|
44,116
|
Accounts receivable,
net of allowance for doubtful accounts of
RMB5,870 and RMB12,060 as of December 31, 2022 and
March 31, 2023, respectively
|
188,711
|
|
182,925
|
|
26,636
|
Amounts due from
related parties
|
55
|
|
-
|
|
-
|
Prepaid expenses and
other current assets
|
819,706
|
|
1,269,201
|
|
184,810
|
Total current
assets
|
11,724,547
|
|
12,421,901
|
|
1,808,769
|
Long-term
deposits
|
2,600,000
|
|
2,300,000
|
|
334,906
|
Long-term restricted
cash
|
82,766
|
|
82,411
|
|
12,000
|
Right-of-use assets,
net
|
115,520
|
|
103,461
|
|
15,065
|
Property and equipment,
net
|
172,984
|
|
151,414
|
|
22,048
|
Intangible assets,
net
|
22,203
|
|
20,923
|
|
3,047
|
Rental
deposits
|
20,737
|
|
20,737
|
|
3,020
|
Long-term
investments
|
893,988
|
|
879,914
|
|
128,125
|
Other non-current
assets
|
162,499
|
|
182,042
|
|
26,507
|
Deferred tax
assets
|
34,343
|
|
33,902
|
|
4,937
|
Total
assets
|
15,829,587
|
|
16,196,705
|
|
2,358,424
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
617,022
|
|
628,075
|
|
91,456
|
Deferred
revenue
|
484,775
|
|
475,893
|
|
69,295
|
Accrued expenses and
other current liabilities
|
797,504
|
|
698,250
|
|
101,673
|
Amounts due to related
parties
|
9,178
|
|
12,347
|
|
1,798
|
Lease liabilities due
within one year
|
88,352
|
|
59,650
|
|
8,686
|
Income tax
payable
|
68,765
|
|
62,372
|
|
9,082
|
Dividends
payable
|
-
|
|
937,805
|
|
136,554
|
Deferred consideration
in connection with business acquisitions
|
26,483
|
|
26,369
|
|
3,840
|
Convertible senior
notes-current
|
2,646,168
|
|
2,636,964
|
|
383,972
|
Total current
liabilities
|
4,738,247
|
|
5,537,725
|
|
806,356
|
Deferred tax
liabilities
|
22,011
|
|
56,185
|
|
8,181
|
Lease
liabilities
|
33,281
|
|
38,486
|
|
5,604
|
Other non-current
liabilities
|
105,410
|
|
106,322
|
|
15,482
|
Total
liabilities
|
4,898,949
|
|
5,738,718
|
|
835,623
|
Shareholder's equity
(i)
|
10,930,638
|
|
10,457,987
|
|
1,522,801
|
Total liabilities
and shareholder's equity
|
15,829,587
|
|
16,196,705
|
|
2,358,424
|
|
|
(i): As of March 31,
2023, the number of ordinary shares outstanding was
377,655,265.
|
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
|
|
2022
|
|
2023
|
|
2023
|
|
RMB
|
|
RMB
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net
income
|
288,782
|
|
389,461
|
|
56,709
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation of
property and equipment
|
27,979
|
|
22,844
|
|
3,326
|
Amortization of
intangible assets
|
1,279
|
|
1,279
|
|
186
|
Share-based
compensation
|
108,616
|
|
81,657
|
|
11,891
|
Share of loss on equity
method investments
|
2,600
|
|
13,475
|
|
1,962
|
Gain on repurchase of
convertible senior notes
|
(11,619)
|
|
-
|
|
-
|
Gain or loss on
disposal of property and equipment
|
(40)
|
|
67
|
|
10
|
Provision of losses on
receivable and other assets
|
2
|
|
9,182
|
|
1,337
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
2,649
|
|
(548)
|
|
(80)
|
Prepaid expenses and
other current assets
|
(43,978)
|
|
24,352
|
|
3,546
|
Amounts due from
related parties
|
-
|
|
55
|
|
8
|
Rental
deposits
|
(2,453)
|
|
-
|
|
-
|
Deferred tax
assets
|
(1,576)
|
|
440
|
|
64
|
Other non-current
assets
|
41,615
|
|
(7,485)
|
|
(1,090)
|
Accounts
payable
|
(88,958)
|
|
20,379
|
|
2,967
|
Income tax
payable
|
(4,574)
|
|
(6,393)
|
|
(931)
|
Deferred
revenue
|
(42,614)
|
|
(8,811)
|
|
(1,283)
|
Accrued expenses and
other current liabilities
|
(132,218)
|
|
(132,733)
|
|
(19,327)
|
Amount due to related
parties
|
(157)
|
|
3,169
|
|
461
|
Deferred tax
liabilities
|
(95,385)
|
|
34,120
|
|
4,968
|
Other non-current
liabilities
|
(6,640)
|
|
6,564
|
|
956
|
Net cash provided by
operating activities
|
43,310
|
|
451,074
|
|
65,680
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchase of property
and equipment
|
(21,647)
|
|
(10,234)
|
|
(1,490)
|
Purchase of short-term
deposits
|
-
|
|
(497,342)
|
|
(72,419)
|
Cash received on
maturity of short-term deposits
|
910,000
|
|
900,000
|
|
131,050
|
Cash received on
investment income distribution
|
3,523
|
|
-
|
|
-
|
Purchase of long-term
deposits
|
(1,150,000)
|
|
-
|
|
-
|
Other investing
activities
|
4
|
|
738
|
|
107
|
Net cash (used in)
provided by investing activities
|
(258,120)
|
|
393,162
|
|
57,248
|
Cash flows from
financing activities:
|
|
|
|
|
|
Deferred payment for
business acquisition
|
(5,563)
|
|
-
|
|
-
|
Proceeds from exercise
of share options
|
31
|
|
3
|
|
-
|
Payment in relation to
the share repurchase program
|
-
|
|
(3,237)
|
|
(471)
|
Repurchase of
subsidiary's share options
|
(4,427)
|
|
(1,539)
|
|
(224)
|
Payment for redemption
of convertible bonds
|
(110,007)
|
|
-
|
|
-
|
Prepayment in relation
to redemption of convertible bonds
|
-
|
|
(478,786)
|
|
(69,717)
|
Net cash used in
financing activities
|
(119,966)
|
|
(483,559)
|
|
(70,412)
|
Effect of exchange rate
changes
|
(15,611)
|
|
(9,426)
|
|
(1,370)
|
Net (decrease)
increase in cash and cash equivalents
|
(350,387)
|
|
351,251
|
|
51,146
|
Cash, cash equivalents
and restricted cash at the beginning of period
|
5,647,034
|
|
5,198,601
|
|
756,975
|
Cash, cash equivalents
and restricted cash at the end of period
|
5,296,647
|
|
5,549,852
|
|
808,121
|
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,
2022
|
|
Ended March 31,
2023
|
|
Ended March 31,
2023
|
|
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
|
(1,821,388)
|
3,078
|
(1,818,310)
|
|
(1,664,188)
|
1,635
|
(1,662,553)
|
|
(242,325)
|
238
|
(242,087)
|
Research and
development
|
(250,195)
|
20,974
|
(229,221)
|
|
(236,803)
|
22,372
|
(214,431)
|
|
(34,481)
|
3,258
|
(31,223)
|
Sales and
marketing
|
(588,577)
|
10,605
|
(577,972)
|
|
(379,786)
|
7,746
|
(372,040)
|
|
(55,301)
|
1,128
|
(54,173)
|
General and
administrative
|
(159,835)
|
73,959
|
(85,876)
|
|
(138,298)
|
49,904
|
(88,394)
|
|
(20,138)
|
7,267
|
(12,871)
|
Cost and operating
expenses
|
(2,819,995)
|
108,616
|
(2,711,379)
|
|
(2,419,075)
|
81,657
|
(2,337,418)
|
|
(352,245)
|
11,891
|
(340,354)
|
Income from
operations
|
352,014
|
108,616
|
460,630
|
|
436,177
|
81,657
|
517,834
|
|
63,512
|
11,891
|
75,403
|
Net income attributable
to Hello Group Inc.
|
289,885
|
108,616
|
398,501
|
|
390,289
|
81,657
|
471,946
|
|
56,830
|
11,891
|
68,721
|
Hello Group
Inc.
|
|
Unaudited Condensed
Segment Report
|
(All amounts in
thousands, except share and per share data)
|
|
Three months
|
|
Ended March
31, 2023
|
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Live video
service
|
1,289,718
|
|
139,622
|
|
-
|
|
1,429,340
|
|
208,128
|
Value-added
service
|
1,193,544
|
|
167,925
|
|
-
|
|
1,361,469
|
|
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
|
|
2,818,858
|
|
410,458
|
Cost and expenses
(ii):
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(1,500,531)
|
|
(163,114)
|
|
(543)
|
|
(1,664,188)
|
|
(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)
|
|
(2,419,075)
|
|
(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 on equity 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 method investments
|
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
|
|
4,477
|
|
(4,055)
|
|
389,461
|
|
56,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(ii) 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
|
|
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,
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
|
72,425
|
|
9,232
|
|
-
|
|
81,657
|
|
11,891
|
Non-GAAP net income
(loss)
|
461,464
|
|
13,709
|
|
(4,055)
|
|
471,118
|
|
68,600
|
Hello Group
Inc.
|
|
Unaudited Condensed
Segment Report
|
|
(All amounts in
thousands, except share and per share data)
|
|
|
Three months
|
|
Ended March
31, 2022
|
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$[1]
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Live video
service
|
1,483,523
|
|
125,200
|
|
-
|
|
1,608,723
|
|
253,770
|
Value-added
service
|
1,259,592
|
|
223,839
|
|
-
|
|
1,483,431
|
|
234,006
|
Mobile
marketing
|
27,873
|
|
-
|
|
-
|
|
27,873
|
|
4,397
|
Mobile games
|
25,497
|
|
-
|
|
-
|
|
25,497
|
|
4,022
|
Other
services
|
2,390
|
|
-
|
|
164
|
|
2,554
|
|
402
|
Total net
revenues
|
2,798,875
|
|
349,039
|
|
164
|
|
3,148,078
|
|
496,597
|
Cost and expenses
(iii):
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(1,644,827)
|
|
(176,215)
|
|
(346)
|
|
(1,821,388)
|
|
(287,317)
|
Research and
development
|
(188,299)
|
|
(61,896)
|
|
-
|
|
(250,195)
|
|
(39,467)
|
Sales and
marketing
|
(317,680)
|
|
(270,147)
|
|
(750)
|
|
(588,577)
|
|
(92,846)
|
General and
administrative
|
(147,196)
|
|
(8,076)
|
|
(4,563)
|
|
(159,835)
|
|
(25,213)
|
Total cost and
expenses
|
(2,298,002)
|
|
(516,334)
|
|
(5,659)
|
|
(2,819,995)
|
|
(444,843)
|
Other operating
income
|
18,346
|
|
5,544
|
|
41
|
|
23,931
|
|
3,775
|
Income (loss) from
operations
|
519,219
|
|
(161,751)
|
|
(5,454)
|
|
352,014
|
|
55,529
|
Interest
income
|
97,743
|
|
52
|
|
62
|
|
97,857
|
|
15,437
|
Interest
expense
|
(19,334)
|
|
-
|
|
-
|
|
(19,334)
|
|
(3,050)
|
Other gain or loss,
net
|
11,619
|
|
-
|
|
-
|
|
11,619
|
|
1,833
|
Income (loss) before
income tax and share of income on equity method
investments
|
609,247
|
|
(161,699)
|
|
(5,392)
|
|
442,156
|
|
69,749
|
Income tax
expenses
|
(150,105)
|
|
(669)
|
|
-
|
|
(150,774)
|
|
(23,784)
|
Income (loss) before
share of income on equity method investments
|
459,142
|
|
(162,368)
|
|
(5,392)
|
|
291,382
|
|
45,965
|
Share of loss on equity
method investments
|
(2,600)
|
|
-
|
|
-
|
|
(2,600)
|
|
(410)
|
Net income
(loss)
|
456,542
|
|
(162,368)
|
|
(5,392)
|
|
288,782
|
|
45,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(iii) Share-based
compensation was allocated in cost of revenues and operating
expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
|
|
|
|
|
Ended March 31,
2022
|
|
|
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
Cost of
revenues
|
1,847
|
|
1,231
|
|
-
|
|
3,078
|
|
486
|
|
|
|
Research and
development
|
18,453
|
|
2,521
|
|
-
|
|
20,974
|
|
3,309
|
|
|
|
Sales and
marketing
|
10,590
|
|
15
|
|
-
|
|
10,605
|
|
1,673
|
|
|
|
General and
administrative
|
73,913
|
|
46
|
|
-
|
|
73,959
|
|
11,667
|
|
|
|
Total cost and
expenses
|
104,803
|
|
3,813
|
|
-
|
|
108,616
|
|
17,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] All translations
from RMB to U.S. dollars are made at a rate of RMB6.3393 to
US$1.00, the effective noon buying rate for March 31, 2022 as set
forth in the H.10 statistical release of the Federal Reserve
Board.
|
Hello Group
Inc.
|
Reconciliation of
GAAP and NON-GAAP Results of Unaudited Segment
Report
|
(All amounts in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
|
|
Ended March 31,
2022
|
|
Momo
|
|
Tantan
|
|
QOOL
|
|
Total
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
Income (loss) from
operations
|
519,219
|
|
(161,751)
|
|
(5,454)
|
|
352,014
|
|
55,529
|
Share-based
compensation
|
104,803
|
|
3,813
|
|
-
|
|
108,616
|
|
17,135
|
Non-GAAP income
(loss) from
operations
|
624,022
|
|
(157,938)
|
|
(5,454)
|
|
460,630
|
|
72,664
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
456,542
|
|
(162,368)
|
|
(5,392)
|
|
288,782
|
|
45,555
|
Share-based
compensation
|
104,803
|
|
3,813
|
|
-
|
|
108,616
|
|
17,135
|
Non-GAAP net income
(loss)
|
561,345
|
|
(158,555)
|
|
(5,392)
|
|
397,398
|
|
62,690
|
View original
content:https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-first-quarter-of-2023-301843289.html
SOURCE Hello Group Inc.