Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2023

BEIJING, Dec. 8, 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 third quarter of 2023.   

Third Quarter of 2023 Highlights

  • Net revenues decreased by 5.9% year over year to RMB3,042.8 million (US$417.1 million*) in the third quarter of 2023.
  • Net income attributable to Hello Group Inc. increased to RMB546.4 million (US$74.9 million) in the third quarter of 2023, from RMB450.8 million in the same period of 2022.
  • Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB605.9 million (US$83.0 million) in the third quarter of 2023, from RMB535.8 million in the same period of 2022.
  • Diluted net income per American Depositary Share (“ADS”) was RMB2.75 (US$0.38) in the third quarter of 2023, compared to RMB2.20 in the same period of 2022.
  • Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.42) in the third quarter of 2023, compared to RMB2.60 in the same period of 2022.
  • Monthly Active Users (“MAU”) on Tantan application were 15.7 million in September 2023, compared to 20.9 million in September 2022.
  • For the Momo app total paying users was 7.8 million for the third quarter of 2023, compared to 8.4 million for the same period last year. Tantan had 1.4 million paying users for the third quarter of 2023 compared to 2.0 million from the year ago period.

First Nine Months of 2023 Highlights

  • Net revenues decreased by 5.2% year over year to RMB8,999.4 million (US$1,233.5 million) for the first nine months of 2023.
  • Net income attributable to Hello Group Inc. was RMB1,505.1 million (US$206.3 million) for the first nine months of 2023, compared to RMB1,086.3 million during the same period of 2022.
  • Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,710.0 million (US$234.4 million) for the first nine months of 2023, compared to RMB1,397.8 million during the same period of 2022.
  • Diluted net income per ADS was RMB7.52 (US$1.03) for the first nine months of 2023, compared to RMB5.30 during the same period of 2022.
  • Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17) for the first nine months of 2023, compared to RMB6.75 during the same period of 2022.

We are pleased to report strong financial results for the third quarter and steady progress on various strategic priorities across all business lines.” commented Yan Tang, Chairman and CEO of Hello Group. “The group level profitability continued to grow from the prior year period, thanks to our effective cost optimization and efficiency improvement initiatives, which enabled us to maintain the stability of Momo cash cow business, turn Tantan profitable as well as support the development of new endeavors.”

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB7.2960 to US$1.00, the effective noon buying rate for September 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

Third Quarter of 2023 Financial Results

Net revenues

Total net revenues were RMB3,042.8 million (US$417.1 million) in the third quarter of 2023, a decrease of 5.9% from RMB3,233.0 million in the third quarter of 2022.

Live video service revenues were RMB1,530.8 million (US$209.8 million) in the third quarter of 2023, a decrease of 7.6% from RMB1,657.5 million during the same period of 2022. The decrease was primarily attributable to a soft consumer sentiment in the current macro environment, and to a lesser degree, Tantan pivoting away from the live video service which we deem not the priority for Tantan at this point for the dating service.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,466.7 million (US$201.0 million) in the third quarter of 2023, a decrease of 4.6% from RMB1,537.7 million during the same period of 2022. The decrease was primarily due to the impact of the macro economy on consumer sentiment as well as our proactive product adjustments to improve Momo app’s ecosystem, and to a lesser extent, the decline in Tantan’s paying user as we reduced marketing spending. However, the decrease was partially offset by the rapid revenue growth from the new standalone apps.

Mobile marketing revenues were RMB30.7 million (US$4.2 million) in the third quarter of 2023, an increase of 8.7% from RMB28.2 million during the same period of 2022.

Mobile games revenues were RMB7.9 million (US$1.1 million) in the third quarter of 2023, an increase of 1.9% from RMB7.7 million in the third quarter of 2022.

Net revenues from the Momo segment decreased from RMB2,891.0 million in the third quarter of 2022 to RMB2,743.1 million (US$376.0 million) in the third quarter of 2023, primarily due to the decrease in net revenues from value-added service and live video service on Momo application. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB341.3 million in the third quarter of 2022 to RMB295.0 million (US$40.4 million) in the third quarter of 2023, mainly due to the decrease in net revenues from value-added service, and to a lesser extent, the decrease from live video service.

Cost and expenses

Cost and expenses were RMB2,461.1 million (US$337.3 million) in the third quarter of 2023, a decrease of 10.0% from RMB2,734.2 million in the third quarter of 2022. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service and with virtual gift recipients of virtual gift service on the Momo application. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value; (c) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan’s channel marketing strategy and, to a lesser extent, Momo’s strategy to trim inefficient channel marketing spend.

Non-GAAP cost and expenses (note 1) were RMB2,401.6 million (US$329.2 million) in the third quarter of 2023, a decrease of 9.3% from RMB2,649.2 million during the same period of 2022.

Income from operations

Income from operations was RMB621.8 million (US$85.2 million) in the third quarter of 2023, compared to RMB520.1 million during the same period of 2022. Income from operations of the Momo segment was RMB618.6 million (US$84.8 million) in the third quarter of 2023, which increased from RMB569.4 million in the third quarter of 2022. Income from operations of the Tantan segment was RMB24.0 million (US$3.3 million) in the third quarter of 2023, compared to a loss from operations of RMB44.5 million in the third quarter of 2022.

Non-GAAP income from operations (note 1) was RMB681.2 million (US$93.4 million) in the third quarter of 2023, compared to RMB605.1 million during the same period of 2022. Non-GAAP income from operations of the Momo segment was RMB674.5 million (US$92.4 million) in the third quarter of 2023, which increased from RMB648.2 million in the third quarter of 2022. Non-GAAP income from operations of the Tantan segment was RMB27.6 million (US$3.8 million) in the third quarter of 2023, compared to a non-GAAP loss from operations of RMB38.3 million in the third quarter of 2022.  

Income tax expenses

Income tax expenses were RMB158.1 million (US$21.7 million) in the third quarter of 2023, compared to RMB156.0 million in the third quarter of 2022. The increase in income tax expenses was primarily due to the higher profit in the third quarter of 2023.

Net income

Net income was RMB542.2 million (US$74.3 million) in the third quarter of 2023, compared to RMB449.9 million during the same period of 2022. Net income from the Momo segment was RMB540.0 million (US$74.0 million) in the third quarter of 2023, compared to RMB499.6 million in the same period of 2022. Net income from the Tantan segment was RMB23.0 million (US$3.2 million) in the third quarter of 2023, compared to a net loss of RMB45.0 million in the third quarter of 2022.

Non-GAAP net income (note 1) was RMB601.6 million (US$82.5 million) in the third quarter of 2023, compared to RMB534.8 million during the same period of 2022. Non-GAAP net income from the Momo segment was RMB595.9 million (US$81.7million) in the third quarter of 2023, which increased from RMB578.4 million in the third quarter of 2022. Non-GAAP net income of the Tantan segment was RMB26.6 million (US$3.6 million) in the third quarter of 2023, compared to a non-GAAP net loss of RMB38.8 million in the third quarter of 2022.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB546.4 million (US$74.9 million) in the third quarter of 2023, compared to RMB450.8 million during the same period of 2022.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB605.9 million (US$83.0 million) in the third quarter of 2023, compared to RMB535.8 million during the same period of 2022.

Net income per ADS

Diluted net income per ADS was RMB2.75 (US$0.38) in the third quarter of 2023, compared to RMB2.20 in the third quarter of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.42) in the third quarter of 2023, compared to RMB2.60 in the third quarter of 2022.

Cash and cash flow

As of September 30, 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 RMB13,644.6 million (US$1,870.1 million), compared to RMB13,398.8 million as of December 31, 2022.

Net cash provided by operating activities in the third quarter of 2023 was RMB582.5 million (US$79.8 million), compared to RMB444.5 million in the third quarter of 2022.

First Nine Months of 2023 Financial Results

Net revenues for the first nine months of 2023 were RMB8,999.4 million (US$1,233.5 million), a decrease of 5.2% from RMB9,491.5 million in the same period of 2022.

Net income attributable to Hello Group Inc. was RMB1,505.1 million (US$206.3 million) for the first nine months of 2023, compared to RMB1,086.3 million during the same period of 2022.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,710.0 million (US$234.4 million) for the first nine months of 2023, compared to RMB1,397.8 million during the same period of 2022.

Diluted net income per ADS was RMB7.52 (US$1.03) during the first nine months of 2023, compared to RMB5.30 in the same period of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17) during the first nine months of 2023, compared to RMB6.75 in the same period of 2022.

Net cash provided by operating activities was RMB1,861.3 million (US$255.1 million) during the first nine months of 2023, compared to RMB688.2 million in the same period of 2022.

Recent Development

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 December 8, 2023, the Company has repurchased 16.2 million ADSs for US$86.1 million on the open market under this program, at an average purchase price of US$5.31 per ADS.

Business Outlook

For the fourth quarter of 2023, the Company expects total net revenues to be between RMB2.9 billion to RMB3.0 billion, representing a decrease of 9.7% to 6.6% 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 Friday, December 8, 2023, at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on December 8, 2023).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10035226-k7h0xo.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 December 15, 2023. The dial-in details for the replay are as follows:

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

Hong Kong: 800-930-639
Passcode: 10035226

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: [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, 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 fourth 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 third quarter of 2023 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth 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.          

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Operations

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

Three months

First nine months

Ended September 30

Ended September 30

2022

2023

2023

2022

2023

2023

RMB

RMB

US$

RMB

RMB

US$

Net revenues:

Live video service

1,657,531

1,530,797

209,813

4,786,232

4,548,986

623,490

Value-added service

1,537,666

1,466,727

201,031

4,557,481

4,327,678

593,158

Mobile marketing

28,243

30,705

4,208

92,029

88,762

12,166

Mobile games

7,719

7,864

1,078

50,416

14,169

1,942

Other services

1,862

6,754

927

5,356

19,796

2,713

Total net revenues

3,233,021

3,042,847

417,057

9,491,514

8,999,391

1,233,469

Cost and expenses:

Cost of revenues

(1,886,135)

(1,771,530)

(242,808)

(5,505,369)

(5,255,277)

(720,296)

Research and development

(245,105)

(201,693)

(27,644)

(733,562)

(653,145)

(89,521)

Sales and marketing

(467,012)

(373,942)

(51,253)

(1,666,542)

(1,110,253)

(152,173)

General and administrative

(135,933)

(113,896)

(15,611)

(453,514)

(376,981)

(51,670)

Total cost and expenses

(2,734,185)

(2,461,061)

(337,316)

(8,358,987)

(7,395,656)

(1,013,660)

Other operating income, net

21,289

39,971

5,478

85,790

99,284

13,608

Income from operations

520,125

621,757

85,219

1,218,317

1,703,019

233,417

Interest income

89,274

96,791

13,266

280,761

311,899

42,749

Interest expense

(25,010)

(19,293)

(2,644)

(72,575)

(41,671)

(5,711)

Other gain or loss, net

40,403

118,325

4,565

626

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

624,792

699,255

95,841

1,544,828

1,977,812

271,081

Income tax expenses

(156,041)

(158,064)

(21,664)

(452,860)

(446,646)

(61,218)

Income before share of income on equity method investments

468,751

541,191

74,177

1,091,968

1,531,166

209,863

Share of (loss) income on equity
   method investments

(18,880)

974

133

(8,967)

(31,940)

(4,378)

Net income

449,871

542,165

74,310

1,083,001

1,499,226

205,485

Less: net loss attributable to
  non-controlling interest

(964)

(4,263)

(584)

(3,288)

(5,886)

(807)

Net income attributable to the
   shareholders of Hello
   Group Inc.

450,835

546,428

74,894

1,086,289

1,505,112

206,292

Net income per share
attributable to ordinary
shareholders

Basic

1.15

1.44

0.20

2.75

3.98

0.55

Diluted

1.10

1.37

0.19

2.65

3.76

0.52

Weighted average shares used
in calculating net
income per
ordinary share

Basic

391,027,485

379,292,110

379,292,110

394,333,009

378,085,030

378,085,030

Diluted

423,608,050

398,296,690

398,296,690

429,765,849

405,490,366

405,490,366

 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

First nine months

Ended September 30

Ended September 30

2022

2023

2023

2022

2023

2023

RMB

RMB

US$

RMB

RMB

US$

Net income

449,871

542,165

74,310

1,083,001

1,499,226

205,485

Other comprehensive (loss) income, net
   of tax:

Foreign currency translation adjustment

(188,343)

6,032

827

(328,832)

116,188

15,925

Comprehensive income

261,528

548,197

75,137

754,169

1,615,414

221,410

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

10,831

(3,141)

(431)

17,710

5,377

737

Comprehensive income attributable to
    Hello Group Inc.

250,697

551,338

75,568

736,459

1,610,037

220,673

 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

September 30

September 30

2022

2023

2023

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

5,018,129

4,994,558

684,561

Short-term deposits

5,300,000

1,885,005

258,361

Restricted cash

97,706

9,245

1,267

Short-term investments

300,240

308,550

42,290

Accounts receivable, net of allowance for doubtful accounts of RMB5,870
   and RMB13,365 as of December 31, 2022 and September 30, 2023,
   respectively

188,711

192,849

26,432

Amounts due from related parties

55

7,114

975

Prepaid expenses and other current assets

819,706

712,236

97,620

Total current assets

11,724,547

8,109,557

1,111,506

Long-term deposits

2,600,000

3,809,200

522,094

Long-term restricted cash

82,766

2,638,015

361,570

Right-of-use assets, net

115,520

127,804

17,517

Property and equipment, net

172,984

358,361

49,117

Intangible assets, net

22,203

18,365

2,517

Rental deposits

20,737

18,486

2,534

Long-term investments

893,988

860,306

117,915

Amounts due from RPT-non current

20,000

2,741

Other non-current assets

162,499

177,853

24,377

Deferred tax assets

34,343

33,470

4,587

Total assets

15,829,587

16,171,417

2,216,475

Liabilities and equity

Current liabilities

Accounts payable

617,022

642,886

88,113

Deferred revenue

484,775

474,647

65,056

Accrued expenses and other current liabilities

797,504

648,156

88,837

Amounts due to related parties

9,178

3,675

504

Lease liabilities due within one year

88,352

56,681

7,769

Income tax payable

68,765

89,263

12,235

Dividends payable

21,012

2,879

Deferred consideration in connection with business acquisitions

26,483

28,014

3,840

Long-term borrowings, current portion

215,615

29,552

Convertible senior notes-current

2,646,168

Total current liabilities

4,738,247

2,179,949

298,785

Deferred tax liabilities

22,011

151,578

20,775

Convertible Senior Notes

20,094

2,754

Long-term borrowings

1,938,385

265,678

Lease liabilities

33,281

66,285

9,085

Other non-current liabilities

105,410

95,958

13,152

Total liabilities

4,898,949

4,452,249

610,229

Shareholder’s equity (i)

10,930,638

11,719,168

1,606,246

Total liabilities and shareholder’s equity

15,829,587

16,171,417

2,216,475

(i): As of September 30, 2023, the number of ordinary shares outstanding was 379,881,912.

 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

Three months

First nine months

Ended September 30

Ended September 30

2022

2023

2023

2022

2023

2023

RMB

RMB

US$

RMB

RMB

US$

Cash flows from operating activities:

Net income

449,871

542,165

74,310

1,083,001

1,499,226

205,485

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

Depreciation of property and equipment

27,047

17,467

2,394

83,107

59,098

8,100

Amortization of intangible assets

1,279

1,279

175

3,837

3,837

526

Share-based compensation

84,976

59,472

8,151

311,540

204,877

28,081

Share of loss (income) on equity method
   investments

18,880

(974)

(133)

8,967

31,940

4,378

Gain on repurchase of convertible senior notes

(51,653)

(129,575)

(4,565)

(626)

Loss on long-term investments

11,250

11,250

Cash received on distributions from equity method
   investments

718

98

1,708

2,067

283

Gain or loss on disposal of property and equipment

(923)

(60)

(8)

(783)

(520)

(71)

Provision of (income) loss on receivable and other
   assets

(820)

(133)

(18)

(453)

10,071

1,380

Changes in operating assets and liabilities:

Accounts receivable

22,973

10,749

1,473

15,695

(9,916)

(1,359)

Prepaid expenses and other current assets

41,418

(96,572)

(13,236)

(16,144)

98,294

13,472

Amounts due from related parties

(27,114)

(3,716)

(27,059)

(3,709)

Rental deposits

716

1,301

178

1,399

2,252

309

Deferred tax assets

590

415

57

(986)

872

120

Other non-current assets

16,130

(50,578)

(6,932)

76,820

(27,639)

(3,788)

Accounts payable

(438)

6,987

958

(106,392)

38,825

5,321

Income tax payable

(15,635)

24,215

3,319

(50,923)

20,496

2,809

Deferred revenue

(19,356)

11,736

1,609

(73,891)

(11,137)

(1,526)

Accrued expenses and other current liabilities

(108,513)

15,374

2,107

(304,346)

(172,186)

(23,600)

Amount due to related parties

7,824

(8,401)

(1,151)

4,427

(5,504)

(754)

Deferred tax liabilities

(14,425)

47,681

6,535

(171,752)

130,198

17,845

Other non-current liabilities

(26,655)

26,741

3,665

(58,311)

17,757

2,434

Net cash provided by operating activities

444,536

582,468

79,835

688,195

1,861,284

255,110

Cash flows from investing activities:

Purchase of property and equipment

(27,051)

(238,219)

(32,651)

(70,392)

(259,463)

(35,562)

Payment for long-term investments

(55,343)

(9,000)

(1,234)

Purchase of short-term deposits

(1,700,000)

(531,214)

(72,809)

(1,700,000)

(1,028,556)

(140,975)

Cash received on maturity of short-term deposits

2,700,000

1,900,000

260,417

3,710,000

5,409,820

741,478

Cash received on investment income distribution

3,523

1,517

208

Purchase of long-term deposits

(1,000,000)

(2,498,860)

(342,497)

(2,550,000)

(3,848,860)

(527,530)

Cash received on maturity of long-term deposits

1,700,000

233,004

1,200,000

1,700,000

233,004

Cash received from sales of long-term investment

15,000

2,056

15,000

2,056

Other investing activities

2,781

137

19

3,103

1,822

250

Net cash (used in) provided by investing activities

(24,270)

346,844

47,539

540,891

1,982,280

271,695

Cash flows from financing activities:

Deferred payment for business acquisition

(15,858)

(21,421)

Proceeds from exercise of share options

18

551

76

51

570

78

Repurchase of ordinary shares

(285,355)

(58,767)

(8,055)

(287,690)

(62,004)

(8,498)

Repurchase of subsidiary’s share options

(14,330)

(223)

(31)

(39,867)

(4,319)

(592)

Dividends payment

(840,997)

(937,249)

(128,461)

Proceeds from long-term borrowings

2,154,000

295,230

2,154,000

295,230

Payment for redemption of convertible bonds

(1,024,443)

(86,932)

(11,915)

(2,136,987)

(2,679,942)

(367,317)

Net cash (used in) provided by financing activities

(1,339,968)

2,008,629

275,305

(3,326,911)

(1,528,944)

(209,560)

Effect of exchange rate changes

(6,190)

(7,837)

(1,075)

72,096

128,597

17,625

Net (decrease) increase in cash and cash equivalents

(925,892)

2,930,104

401,604

(2,025,729)

2,443,217

334,870

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

4,547,197

4,711,714

645,794

5,647,034

5,198,601

712,528

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

3,621,305

7,641,818

1,047,398

3,621,305

7,641,818

1,047,398

 

 

 

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 September 30, 2022

Ended September 30, 2023

Ended September 30, 2023

GAAP

RMB

Share-based
compensation

RMB

Non-GAAP

RMB

GAAP

RMB

Share-based
compensation

RMB

Non-GAAP

RMB

GAAP

US$

Share-based
compensation

US$

Non-GAAP

US$

Cost of revenues

(1,886,135)

1,496

(1,884,639)

(1,771,530)

1,211

(1,770,319)

(242,808)

166

(242,642)

Research and development

(245,105)

21,713

(223,392)

(201,693)

14,993

(186,700)

(27,644)

2,055

(25,589)

Sales and marketing

(467,012)

8,453

(458,559)

(373,942)

5,854

(368,088)

(51,253)

802

(50,451)

General and administrative

(135,933)

53,314

(82,619)

(113,896)

37,414

(76,482)

(15,611)

5,128

(10,483)

Cost and operating expenses

(2,734,185)

84,976

(2,649,209)

(2,461,061)

59,472

(2,401,589)

(337,316)

8,151

(329,165)

Income from operations

520,125

84,976

605,101

621,757

59,472

681,229

85,219

8,151

93,370

Net income attributable to Hello
   Group Inc.

450,835

84,976

535,811

546,428

59,472

605,900

74,894

8,151

83,045

 

 

 

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

1.

Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures-continued.

First nine months

First nine months

First nine months

Ended September 30, 2022

Ended September 30, 2023

Ended September 30, 2023

GAAP

RMB

Share-based
compensation

RMB

Non-GAAP

RMB

GAAP

RMB

Share-based
compensation

RMB

Non-GAAP

RMB

GAAP

US$

Share-based
compensation

US$

Non-GAAP

US$

Cost of revenues

(5,505,369)

12,488

(5,492,881)

(5,255,277)

4,398

(5,250,879)

(720,296)

603

(719,693)

Research and development

(733,562)

66,652

(666,910)

(653,145)

51,186

(601,959)

(89,521)

7,016

(82,505)

Sales and marketing

(1,666,542)

29,952

(1,636,590)

(1,110,253)

20,413

(1,089,840)

(152,173)

2,798

(149,375)

General and administrative

(453,514)

202,448

(251,066)

(376,981)

128,880

(248,101)

(51,670)

17,664

(34,006)

Cost and operating expenses

(8,358,987)

311,540

(8,047,447)

(7,395,656)

204,877

(7,190,779)

(1,013,660)

28,081

(985,579)

Income from operations

1,218,317

311,540

1,529,857

1,703,019

204,877

1,907,896

233,417

28,081

261,498

Net income attributable to Hello
   Group Inc.

1,086,289

311,540

1,397,829

1,505,112

204,877

1,709,989

206,292

28,081

234,373

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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

Three months

  Ended September 30, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

1,410,844

119,953

1,530,797

209,813

Value-added service

1,298,329

168,398

1,466,727

201,031

Mobile marketing

24,039

6,666

30,705

4,208

Mobile games

7,864

7,864

1,078

Other services

1,981

4,773

6,754

927

Total net revenues

2,743,057

295,017

4,773

3,042,847

417,057

Cost and expenses (ii):

Cost of revenues

(1,606,261)

(145,346)

(19,923)

(1,771,530)

(242,808)

Research and development

(151,649)

(50,044)

(201,693)

(27,644)

Sales and marketing

(298,919)

(71,978)

(3,045)

(373,942)

(51,253)

General and administrative

(105,339)

(5,656)

(2,901)

(113,896)

(15,611)

Total cost and expenses

(2,162,168)

(273,024)

(25,869)

(2,461,061)

(337,316)

Other operating income, net

37,750

1,985

236

39,971

5,478

Income (loss) from operations

618,639

23,978

(20,860)

621,757

85,219

Interest income

96,680

94

17

96,791

13,266

Interest expense

(19,293)

(19,293)

(2,644)

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

696,026

24,072

(20,843)

699,255

95,841

Income tax expenses

(156,992)

(1,072)

(158,064)

(21,664)

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

539,034

23,000

(20,843)

541,191

74,177

Share of loss on equity method
   investments

974

974

133

Net income (loss)

540,008

23,000

(20,843)

542,165

74,310

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

Three months

Ended September 30, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

1,207

4

1,211

166

Research and development

11,401

3,592

14,993

2,055

Sales and marketing

5,854

5,854

802

General and administrative

37,406

8

37,414

5,128

Total cost and expenses

55,868

3,604

59,472

8,151

 

 

 

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 September 30, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

618,639

23,978

(20,860)

621,757

85,219

Share-based compensation

55,868

3,604

59,472

8,151

Non-GAAP income (loss) from operations

674,507

27,582

(20,860)

681,229

93,370

Net income (loss)

540,008

23,000

(20,843)

542,165

74,310

Share-based compensation

55,868

3,604

59,472

8,151

Non-GAAP net income (loss)

595,876

26,604

(20,843)

601,637

82,461

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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

Three months

  Ended September 30, 2022

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[1]

Net revenues:

Live video service

1,517,872

139,659

1,657,531

233,012

Value-added service

1,336,050

201,616

1,537,666

216,162

Mobile marketing

28,243

28,243

3,970

Mobile games

7,719

7,719

1,085

Other services

1,126

736

1,862

262

Total net revenues

2,891,010

341,275

736

3,233,021

454,491

Cost and expenses (iii):

Cost of revenues

(1,704,934)

(180,277)

(924)

(1,886,135)

(265,149)

Research and development

(176,727)

(68,378)

(245,105)

(34,456)

Sales and marketing

(335,350)

(130,222)

(1,440)

(467,012)

(65,652)

General and administrative

(124,184)

(8,574)

(3,175)

(135,933)

(19,109)

Total cost and expenses

(2,341,195)

(387,451)

(5,539)

(2,734,185)

(384,366)

Other operating income

19,563

1,722

4

21,289

2,993

Income (loss) from operations

569,378

(44,454)

(4,799)

520,125

73,118

Interest income

89,003

187

84

89,274

12,550

Interest expense

(25,010)

(25,010)

(3,516)

Other gain or loss, net

40,403

40,403

5,680

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

673,774

(44,267)

(4,715)

624,792

87,832

Income tax expenses

(155,328)

(713)

(156,041)

(21,936)

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

518,446

(44,980)

(4,715)

468,751

65,896

Share of loss on equity method investments

(18,880)

(18,880)

(2,654)

Net income (loss)

499,566

(44,980)

(4,715)

449,871

63,242

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

Three months

Ended September 30, 2022

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

1,478

18

1,496

210

Research and development

15,640

6,073

21,713

3,052

Sales and marketing

8,446

7

8,453

1,188

General and administrative

53,272

42

53,314

7,495

Total cost and expenses

78,836

6,140

84,976

11,945

[1] All translations from RMB to U.S. dollars are made at a rate of RMB7.1135 to US$1.00, the effective noon buying rate for September 30, 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 September 30, 2022

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

569,378

(44,454)

(4,799)

520,125

73,118

Share-based compensation

78,836

6,140

84,976

11,945

Non-GAAP income (loss) from operations

648,214

(38,314)

(4,799)

605,101

85,063

Net income (loss)

499,566

(44,980)

(4,715)

449,871

63,242

Share-based compensation

78,836

6,140

84,976

11,945

Non-GAAP net income (loss)

578,402

(38,840)

(4,715)

534,847

75,187

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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

First nine months

Ended September 30, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

4,144,164

404,822

4,548,986

623,490

Value-added service

3,821,183

506,495

4,327,678

593,158

Mobile marketing

75,730

13,032

88,762

12,166

Mobile games

14,169

14,169

1,942

Other services

14,577

5,219

19,796

2,713

Total net revenues

8,069,823

924,349

5,219

8,999,391

1,233,469

Cost and expenses (iv):

Cost of revenues

(4,765,127)

(469,111)

(21,039)

(5,255,277)

(720,296)

Research and development

(483,997)

(169,148)

(653,145)

(89,521)

Sales and marketing

(894,462)

(210,208)

(5,583)

(1,110,253)

(152,173)

General and administrative

(349,614)

(19,600)

(7,767)

(376,981)

(51,670)

Total cost and expenses

(6,493,200)

(868,067)

(34,389)

(7,395,656)

(1,013,660)

Other operating income

95,876

3,110

298

99,284

13,608

Income (loss) from operations

1,672,499

59,392

(28,872)

1,703,019

233,417

Interest income

311,157

656

86

311,899

42,749

Interest expense

(41,671)

(41,671)

(5,711)

Other gain or loss, net

4,565

4,565

626

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

1,946,550

60,048

(28,786)

1,977,812

271,081

Income tax expenses

(443,175)

(3,471)

(446,646)

(61,218)

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

1,503,375

56,577

(28,786)

1,531,166

209,863

Share of income on equity method investments

(31,940)

(31,940)

(4,378)

Net income (loss)

1,471,435

56,577

(28,786)

1,499,226

205,485

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

First nine months

Ended September 30, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

4,262

136

4,398

603

Research and development

36,793

14,393

51,186

7,016

Sales and marketing

20,408

5

20,413

2,798

General and administrative

128,856

24

128,880

17,664

Total cost and expenses

190,319

14,558

204,877

28,081

 

 

Hello Group Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

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

First nine months

ended September 30, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

1,672,498

59,392

(28,871)

1,703,019

233,417

Share-based compensation

190,319

14,558

204,877

28,081

Non-GAAP operating income (loss)

1,862,817

73,950

(28,871)

1,907,896

261,498

Net income (loss)

1,471,435

56,577

(28,786)

1,499,226

205,485

Share-based compensation

190,319

14,558

204,877

28,081

Non-GAAP net income (loss)

1,661,754

71,135

(28,786)

1,704,103

233,566

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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

First nine months

Ended September 30, 2022

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

4,404,991

381,241

4,786,232

672,838

Value-added service

3,917,609

639,872

4,557,481

640,681

Mobile marketing

92,029

92,029

12,937

Mobile games

50,416

50,416

7,087

Other services

4,298

1,058

5,356

753

Total net revenues

8,469,343

1,021,113

1,058

9,491,514

1,334,296

Cost and expenses (v):

Cost of revenues

(4,981,345)

(522,188)

(1,836)

(5,505,369)

(773,933)

Research and development

(536,640)

(196,922)

(733,562)

(103,123)

Sales and marketing

(1,039,526)

(623,680)

(3,336)

(1,666,542)

(234,279)

General and administrative

(415,954)

(25,335)

(12,225)

(453,514)

(63,754)

Total cost and expenses

(6,973,465)

(1,368,125)

(17,397)

(8,358,987)

(1,175,089)

Other operating income

76,253

9,491

46

85,790

12,060

Income (loss) from operations

1,572,131

(337,521)

(16,293)

1,218,317

171,267

Interest income

280,252

291

218

280,761

39,469

Interest expense

(72,575)

(72,575)

(10,202)

Other gain or loss, net

118,325

118,325

16,634

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

1,898,133

(337,230)

(16,075)

1,544,828

217,168

Income tax expenses

(451,061)

(1,799)

(452,860)

(63,662)

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

1,447,072

(339,029)

(16,075)

1,091,968

153,506

Share of loss on equity method investments

(8,967)

(8,967)

(1,261)

Net income (loss)

1,438,105

(339,029)

(16,075)

1,083,001

152,245

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

First nine months

Ended September 30, 2022

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

5,477

7,011

12,488

1,756

Research and development

51,752

14,900

66,652

9,370

Sales and marketing

29,729

223

29,952

4,211

General and administrative

202,319

129

202,448

28,460

Total cost and expenses

289,277

22,263

311,540

43,797

     

 

 

Hello Group Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

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

First nine months

ended September 30, 2022

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

1,572,131

(337,521)

(16,293)

1,218,317

171,267

Share-based compensation

289,277

22,263

311,540

43,797

Non-GAAP operating income (loss)

1,861,408

(315,258)

(16,293)

1,529,857

215,064

Net income (loss)

1,438,105

(339,029)

(16,075)

1,083,001

152,245

Share-based compensation

289,277

22,263

311,540

43,797

Non-GAAP net income (loss)

1,727,382

(316,766)

(16,075)

1,394,541

196,042

 

 

Cision View original content:https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-third-quarter-of-2023-302009901.html

SOURCE Hello Group Inc.