Momo Announces Unaudited Financial Results for the First Quarter of 2021


    BEIJING, June 8, 2021 /PRNewswire/ -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the first quarter of 2021.

    First Quarter of 2021 Highlights

    • Net revenues decreased by 3.4% year over year to RMB3,470.6 million (US$529.7 million*) in the first quarter of 2021.
    • Net income attributable to Momo Inc. decreased to RMB461.7 million (US$70.5 million) in the first quarter of 2021 from RMB538.9 million in the same period of 2020.
    • Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB633.7 million (US$96.7 million) in the first quarter of 2021, from RMB736.3 million in the same period of 2020.
    • Diluted net income per American Depositary Share ("ADS") was RMB2.14 (US$0.33) in the first quarter of 2021, compared to RMB2.46 in the same period of 2020.
    • Non-GAAP diluted net income per ADS (note 1) was RMB2.91 (US$0.44) in the first quarter of 2021, compared to RMB3.34 in the same period of 2020.
    • Monthly Active Users ("MAU") on Momo application were 115.3 million in March 2021, compared to 108.0 million in March 2020.
    • Total paying users of our live video service and value-added service, without double counting the overlap and including 3.5 million paying users of Tantan Limited ("Tantan"), were 12.6 million for the first quarter of 2021, compared to 12.8 million for the first quarter of 2020, which included 4.2 million paying users of Tantan.

    "The first quarter of 2021 was a good quarter and a decent start to the year 2021", commented Li Wang, CEO of Momo. "We have stepped up our efforts to drive towards the strategic priorities that I set for my team at the beginning of the year. The initiatives we took have started bearing fruits. Despite the negative seasonality MAU reaching a record high, Momo core is on a steady improving trend and will continue to be a very productive and evolving cash cow business. This leaves us ample room to invest in new endeavors beyond Momo and Tantan. I am excited about the growth opportunities that we are seeing in Tantan and have put together a solid plan to unleash their full potential going forward."

    _____________________

    * 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 RMB6.5518 to US$1.00, the effective noon buying rate for March 31, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

    First Quarter of 2021 Financial Results

    Net revenues

    Total net revenues were RMB3,470.6 million (US$529.7 million) in the first quarter of 2021, a decrease of 3.4% from RMB3,594.1 million in the first quarter of 2020.

    Live video service revenues were RMB1,962.1 million (US$299.5 million) in the first quarter of 2021, a decrease of 15.9% from RMB2,332.0 million during the same period of 2020. The decrease was primarily due to our structural reform on Momo's core live video business, which was used to revive the long tail content ecosystem. The decrease was partially offset by the growth from Tantan's live video service, and live video service revenues from Tantan were RMB251.2 million (US$38.3 million) in the first quarter of 2021,compared to RMB6.1 million in the same period of 2020.

    Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,455.5 million (US$222.2 million) in the first quarter of 2021, an increase of 23.8% from RMB1,175.8 million during the same period of 2020. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more innovative products and operational ideas launched, and more paying scenarios introduced to enhance the social entertainment experience of Momo users, and to a lesser extent, the increase in the virtual gift revenues of new applications. The increase was partially offset by the decrease in the membership subscription revenues of Tantan, due to the decrease of paying users of Tantan.

    Mobile marketing revenues were RMB38.7 million (US$5.9 million) in the first quarter of 2021, a decrease of 32.3% from RMB57.2 million during the same period of 2020. The decrease in mobile marketing revenues was primarily caused by our strategy to underweight the line in terms of resource allocation.

    Mobile games revenues were RMB11.2 million (US$1.7 million) in the first quarter of 2021, a decrease of 11.9% from RMB12.7 million in the first quarter of 2020. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

    Net revenues from the Momo segment decreased from RMB3,202.1 million in the first quarter of 2020 to RMB2,901.8 million (US$442.9 million) in the first quarter of 2021, primarily due to the decrease in net revenues from live video service, partially offset by the increase in net revenues from value-added service. Net revenues from the Tantan segment increased from RMB381.7 million in the first quarter of 2020 to RMB567.7 million (US$86.6 million) in the first quarter of 2021, which was mainly due to the increase in net revenues from live video service.

    Cost and expenses

    Cost and expenses were RMB3,016.3 million (US$460.4 million) in the first quarter of 2021, a decrease of 0.3% from RMB3,026.1 million in the first quarter of 2020. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to Momo's core live video service; (b) a decrease in marketing and promotional expenses to promote our core live video services and attract users on Tantan; (c) a decrease in commission fees paid to payment channels. These decreases were partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service, and an increase in revenue sharing with broadcasters related to Tantan's live video service.

    Non-GAAP cost and expenses (note 1) were RMB2,835.3 million (US$432.8 million) in the first quarter of 2021, an increase of 0.6% from RMB2,819.2 million during the same period of 2020.

    Income from operations

    Income from operations was RMB480.2 million (US$73.3 million) in the first quarter of 2021, compared to RMB594.1 million during the same period of 2020. Income from operations of the Momo segment was RMB573.2 million (US$87.5 million) in the first quarter of 2021, which decreased from RMB770.3 million in the first quarter of 2020. Loss from operations of the Tantan segment was RMB89.3 million (US$13.6 million) in the first quarter of 2021, compared to loss from operations of RMB171.9 million in the first quarter of 2020.

    Non-GAAP income from operations (note 1) was RMB661.2 million (US$100.9 million) in the first quarter of 2021, compared to RMB801.0 million during the same period of 2020. Non-GAAP income from operations of the Momo segment was RMB700.5 million (US$106.9 million) in the first quarter of 2021, which decreased from RMB903.1 million in the first quarter of 2020. Non-GAAP loss from operations of the Tantan segment was RMB35.6 million (US$5.4 million) in the first quarter of 2021, compared to non-GAAP loss from operations of RMB100.4 million in the first quarter of 2020.

    Income tax expenses

    Income tax expenses were RMB91.4 million (US$14.0 million) in the first quarter of 2021, decreasing from RMB162.9 million in the first quarter of 2020. The decrease in income tax expenses was mainly due to the lower profit and tax refund resulted from additional expense deduction related to previous year in the first quarter of 2021.

    Net income

    Net income was RMB460.9 million (US$70.3 million) in the first quarter of 2021, compared to RMB537.7 million during the same period of 2020. Net income from the Momo segment was RMB551.4 million (US$84.2 million) in the first quarter of 2021, which decreased from RMB707.1 million in the first quarter of 2020. Net loss from the Tantan segment was RMB86.8 million (US$13.3 million) in the first quarter of 2021, compared to net loss of RMB165.1 million in the first quarter of 2020.

    Non-GAAP net income (note 1) was RMB633.0 million (US$96.6 million) in the first quarter of 2021, compared to RMB735.1 million during the same period of 2020. Non-GAAP net income from the Momo segment was RMB678.6 million (US$103.6 million) in the first quarter of 2021, which decreased from RMB839.9 million in the first quarter of 2020. Non-GAAP net loss of the Tantan segment was RMB42.0 million (US$6.4 million) in the first quarter of 2021, compared to non-GAAP net loss of RMB103.2 million in the first quarter of 2020.

    Net income attributable to Momo Inc.

    Net income attributable to Momo Inc. was RMB461.7 million (US$70.5 million) in the first quarter of 2021, compared to RMB538.9 million during the same period of 2020.

    Non-GAAP net income (note 1) attributable to Momo Inc. was RMB633.7 million (US$96.7 million) in the first quarter of 2021, compared to RMB736.3 million during the same period of 2020.

    Net income per ADS

    Diluted net income per ADS was RMB2.14 (US$0.33) in the first quarter of 2021, compared to RMB2.46 in the first quarter of 2020.

    Non-GAAP diluted net income per ADS (note 1) was RMB2.91 (US$0.44) in the first quarter of 2021, compared to RMB3.34 in the first quarter of 2020.

    Cash and cash flow

    As of March 31, 2021, Momo's cash, cash equivalents, short-term deposits, long-term deposits and restricted cash totaled RMB16,956.0 million (US$2,588.0 million), compared to RMB16,482.3 million as of December 31, 2020. Net cash provided by operating activities in the first quarter of 2021 was RMB501.6 million (US$76.6 million), compared to RMB543.5 million in the first quarter of 2020.

    Recent Developments

    Resignation and appointment of board directors

    On June 4, 2021, Mr. David Ying Zhang resigned from the Company's board of directors for personal reasons, effective as of the same date.

    On June 8, 2021, the board of directors of the Company appointed Mr. Ho Kee Harry Man as a new member of the board. Mr. Man joined Matrix Partners China as a founding member of the team with a focus on investments in the mobile internet sector in 2008. Prior to Matrix, Mr. Man was Partner at WI Harper Group and led investments in their China office in the TMT sector. Before WI Harper, Mr. Man led the corporate development teams of two US listed internet and mobile companies, and helped Linktone Ltd. (NASDAQ: LTON) and chinadotcom (Nasdaq: CHINA) in their investments in various sectors respectively. Mr. Man started his career as a management consultant with Arthur Andersen in 1998. Mr. Man has been investing in China since 2000, and always focuses on early stage internet and mobile sectors. During the past 15 years, Mr. Man led investments in Momo (Nasdaq: MOMO), XPENG (US: XPEV), 21Vianet (Nasdaq:VNET), iKang (Nasdaq: KANG), Sungy Mobile (Nasdaq: GOMO), Editgrid (sold to Apple), Career International (SZ: 300662), Didi Chuxing.

    Payment of special cash dividends

    In March 2021, Momo's board of directors declared a special cash dividend in the amount of US$0.64 per ADS, or US$0.32 per ordinary share. The cash dividend was paid in April 2021 to shareholders of record at the close of business on April 13, 2021. The aggregate amount of cash dividends paid was US$132 million.

    Execution of share repurchase program

    On September 3, 2020, Momo's board of directors authorized a share repurchase program under which the Company may repurchase up to US$300 million of its shares over the next 12 months. As of June 8, 2021, the Company has repurchased approximately 4.77 million ADSs for approximately US$65.5 million on the open market under this program, at an average purchase price of US$13.69 per ADS.

    Business Outlook

    For the second quarter of 2021, the Company expects total net revenues to be between RMB3.6 billion to RMB3.7 billion, representing a decrease of 6.9% to 4.3% 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 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 Tuesday, June 8, 2021, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on June 8, 2021).

    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/4099268

    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 16, 2021. The dial-in details for the replay are as follows:

    International:  

    +61-2-8199-0299

    U.S. Toll Free:

    +1-855-452-5696

    Passcode:

    4099268

    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 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. It 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:

    Momo Inc.

    Investor Relations
    Phone: +86-10-5731-0538
    Email: ir@immomo.com  

    Christensen

    In China
    Mr. Eric Yuan
    Phone: +86-10-5900-1548
    E-mail: Eyuan@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, our financial outlook for the second quarter of 2021, 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 2021 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the second quarter of 2021 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 Momo's business operations and the economy in China, the market price of Momo's stock prevailing from time to time, the nature of other investment opportunities presented to Momo from time to time, Momo'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.

     

     

    Momo Inc.

    Unaudited Condensed Consolidated Statement of Operations

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





    Three months


    ended March 31



    2020


    2021


    2021



    RMB


    RMB


    US$


    Net revenues:







    Live video service

    2,332,004


    1,962,095


    299,474


    Value-added service

    1,175,754


    1,455,513


    222,155


    Mobile marketing

    57,155


    38,717


    5,909


    Mobile games

    12,691


    11,184


    1,707


    Other services

    16,480


    3,087


    471


    Total net revenues

    3,594,084


    3,470,596


    529,716


    Cost and expenses:







    Cost of revenues

    (1,876,916)


    (1,938,245)


    (295,834)


    Research and development

    (262,159)


    (286,493)


    (43,727)


    Sales and marketing

    (709,808)


    (613,573)


    (93,650)


    General and administrative

    (177,249)


    (177,962)


    (27,162)


    Total cost and expenses

    (3,026,132)


    (3,016,273)


    (460,373)


    Other operating income

    26,119


    25,900


    3,953


    Income from operations

    594,071


    480,223


    73,296


    Interest income

    130,823


    96,694


    14,758


    Interest expense

    (19,819)


    (18,361)


    (2,802)


    Other gain or loss, net

    (6,000)


    (7,500)


    (1,145)


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

    699,075


    551,056


    84,107


    Income tax expenses

    (162,891)


    (91,398)


    (13,950)


    Income before share of income on equity method investments

    536,184


    459,658


    70,157


    Share of income on equity method investments

    1,527


    1,261


    192


    Net income

    537,711


    460,919


    70,349


    Less: net loss attributable to non-controlling interest

    (1,195)


    (740)


    (113)


    Net income attributable to the shareholders of Momo Inc.

    538,906


    461,659


    70,462


    Net income per share attributable to ordinary shareholders







    Basic

    1.29


    1.12


    0.17


    Diluted

    1.23


    1.07


    0.16


    Weighted average shares used in calculating net income per ordinary
    share







    Basic

    417,294,242


    411,968,817


    411,968,817


    Diluted

    453,331,322


    448,171,493


    448,171,493


     

     

    Momo Inc.

    Unaudited Condensed Consolidated Statement of Comprehensive Income

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



    Three months

    ended March 31


    2020


    2021


    2021


    RMB


    RMB


    US$

    Net income 

    537,711


    460,919


    70,349

    Other comprehensive loss, net of tax:






     Foreign currency translation adjustment

    (867)


    (3,802)


    (580)

    Comprehensive income 

    536,844


    457,117


    69,769

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

    (5,569)


    379


    58

    Comprehensive income attributable to Momo Inc.

    542,413


    456,738


    69,711

     

     

    Momo Inc.

    Unaudited Condensed Consolidated Balance Sheets

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








    December 31


    March 31


    March 31


    2020


    2021


    2021

    RMB

    RMB


    US$

    Assets






    Current assets






    Cash and cash equivalents

    3,363,942


    3,490,405


    532,740

    Short-term deposits

    7,566,250


    7,913,468


    1,207,831

    Restricted cash

    2,130


    2,132


    325

    Accounts receivable, net of allowance for doubtful accounts of
    RMB15,390 and RMB15,785 as of December 31, 2020 and March 31,
    2021, respectively

    200,831


    208,110


    31,764

    Prepaid expenses and other current assets

    613,696


    697,656


    106,483

    Total current assets

    11,746,849


    12,311,771


    1,879,143

    Long-term deposits

    5,550,000


    5,550,000


    847,095

    Right-of-use assets, net

    278,175


    261,561


    39,922

    Property and equipment, net

    265,765


    248,147


    37,875

    Intangible assets, net

    687,211


    652,553


    99,599

    Rental deposits

    21,794


    20,435


    3,119

    Long-term investments

    454,996


    443,147


    67,637

    Other non-current assets

    94,868


    99,152


    15,134

    Deferred tax assets

    32,495


    33,102


    5,052

    Goodwill

    4,088,403


    4,105,104


    626,561

    Total assets

    23,220,556


    23,724,972


    3,621,137

    Liabilities and equity






    Current liabilities






    Accounts payable

    699,394


    698,947


    106,680

    Deferred revenue

    511,617


    511,734


    78,106

    Accrued expenses and other current liabilities

    854,835


    726,767


    110,926

    Amount due to related parties

    19,462


    12,307


    1,878

    Lease liabilities due within one year

    132,793


    134,612


    20,546

    Income tax payable

    236,490


    259,380


    39,589

    Dividends payable

    -


    865,049


    132,032

    Deferred consideration in connection with business acquisitions

    62,149


    46,113


    7,038

    Total current liabilities

    2,516,740


    3,254,909


    496,795

    Deferred tax liabilities

    171,803


    163,138


    24,900

    Convertible senior notes

    4,658,966


    4,681,825


    714,586

    Share-based compensation liability

    875,616


    879,213


    134,194

    Lease liabilities

    136,436


    124,985


    19,076

    Other non-current liabilities

    25,666


    41,760


    6,374

    Total liabilities

    8,385,227


    9,145,830


    1,395,925

    Shareholder's equity (i)

    14,835,329


    14,579,142


    2,225,212

    Total liabilities and shareholder's equity

    23,220,556


    23,724,972


    3,621,137







    (i): As of March 31, 2021, the number of ordinary shares outstanding was 412,260,535.





     

     

    Momo Inc.

    Unaudited Condensed Consolidated Statement of Cash Flows

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




    Three months


    ended March 31


    2020


    2021


    2021


    RMB


    RMB


    US$

    Cash flows from operating activities:






    Net income 

    537,711


    460,919


    70,349

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






    Depreciation of property and equipment

    52,381


    42,543


    6,493

    Amortization of intangible assets

    39,882


    36,953


    5,640

    Share-based compensation

    168,527


    145,257


    22,170

    Share of income on equity method investments

    (1,527)


    (1,261)


    (192)

    Loss on long-term investments

    6,000


    7,500


    1,145

    Gain on subsidiary deconsolidation

    (6,676)


    -


    -

    Loss on disposal of property and equipment

    -


    22


    3

    Provision of (income) losses on receivable and other assets

    (654)


    395


    60

    Cash received on investment income distribution

    1,153


    -


    -

    Changes in operating assets and liabilities:






    Accounts receivable

    (37,979)


    (7,580)


    (1,157)

    Prepaid expenses and other current assets

    1,162


    (86,677)


    (13,229)

    Amount due from a related party

    2,123


    -


    -

    Rental deposits

    (173)


    1,359


    207

    Deferred tax assets

    2,038


    (607)


    (93)

    Other non-current assets

    14,840


    12,330


    1,882

    Accounts payable

    (80,073)


    (1,067)


    (163)

    Income tax payable

    20,344


    22,891


    3,494

    Deferred revenue

    (21,023)


    (379)


    (58)

    Accrued expenses and other current liabilities

    (154,243)


    (118,972)


    (18,159)

    Amount due to related parties

    4,984


    (7,156)


    (1,092)

    Deferred tax liability

    (9,971)


    (9,238)


    (1,410)

    Other non-current liabilities

    4,670


    4,360


    665

    Net cash provided by operating activities

    543,496


    501,592


    76,555

    Cash flows from investing activities:






    Purchase of property and equipment

    (38,167)


    (25,183)


    (3,844)

    Payment for long-term investments

    (4,500)


    -


    -

    Purchase of short-term deposits

    (3,300,000)


    (910,000)


    (138,893)

    Cash received on maturity of short-term deposits

    2,979,140


    569,294


    86,891

    Payment for short-term investments

    (10,000)


    -


    -

    Cash received from sales of short-term investment

    10,000


    -


    -

    Cash received on investment income distribution

    -


    5,610


    856

    Other investing activities

    (791)


    3


    -

    Net cash used in investing activities

    (364,318)


    (360,276)


    (54,990)

    Cash flows from financing activities:






    Deferred payment for business acquisition

    -


    (12,907)


    (1,970)

    Repurchase of ordinary shares

    -


    (3,079)


    (470)

    Repurchase of subsidiary's share options

    -


    (2,781)


    (424)

    Net cash used in financing activities

    -


    (18,767)


    (2,864)

    Effect of exchange rate changes

    7,293


    3,916


    601

    Net increase in cash and cash equivalents 

    186,471


    126,465


    19,302

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

    2,612,743


    3,366,072


    513,763

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

    2,799,214


    3,492,537


    533,065

     

     



    Momo 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, 2020

    ended March 31, 2021


    ended March 31, 2021


    GAAP

    Amortization of
    intangible assets f
    rom business
    acquisitions

    Share-based
    compensation

    Tax
    impacts

    Non-GAAP


    GAAP

    Amortization of
    intangible assets
    from business
    acquisitions 

    Share-based
    compensation

    Tax
    impacts

    Non-GAAP


    GAAP

    Amortization of
    intangible assets
    from business
    acquisitions

    Share-based
    compensation

    Tax
    impacts

    Non-GAAP




    (ii)





    (ii)





    (ii)


    RMB

    RMB

    RMB

    RMB

    RMB

    RMB

    RMB

    RMB

    RMB

    RMB

    US$

    US$

    US$

    US$

    US$

    Cost of revenues

    (1,876,916)

    18,645

    6,969

    -

    (1,851,302)


    (1,938,245)

    17,311

    3,724

    -

    (1,917,210)


    (295,834)

    2,642

    568

    -

    (292,624)

    Research and development

    (262,159)

    2,368

    42,760

    -

    (217,031)


    (286,493)

    2,199

    40,209

    -

    (244,085)


    (43,727)

    336

    6,137

    -

    (37,254)

    Sales and marketing

    (709,808)

    17,436

    47,074

    -

    (645,298)


    (613,573)

    16,189

    17,556

    -

    (579,828)


    (93,650)

    2,471

    2,680

    -

    (88,499)

    General and administrative

    (177,249)

    -

    71,724

    -

    (105,525)


    (177,962)

    -

    83,768

    -

    (94,194)


    (27,162)

    -

    12,785

    -

    (14,377)

    Cost and operating expenses

    (3,026,132)

    38,449

    168,527

    -

    (2,819,156)


    (3,016,273)

    35,699

    145,257

    -

    (2,835,317)


    (460,373)

    5,449

    22,170

    -

    (432,754)

    Income from operations

    594,071

    38,449

    168,527

    -

    801,047


    480,223

    35,699

    145,257

    -

    661,179


    73,296

    5,449

    22,170

    -

    100,915

    Net income attributable to Momo Inc.

    538,906

    38,449

    168,527

    (9,612)

    736,270


    461,659

    35,699

    145,257

    (8,925)

    633,690


    70,462

    5,449

    22,170

    (1,362)

    96,719
















    (ii) Includes tax impacts related to the amortization of intangible assets from business acquisition. 














     

     

    Momo Inc.

    Unaudited  Condensed Segment Report

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




    Three months

      ended   March  31, 2021


    Momo


    Tantan


    QOOL


    Total


    Total


    RMB


    RMB


    RMB


    RMB


    US$

    Net revenues:










    Live video service

    1,710,889


    251,206


    -


    1,962,095


    299,474

    Value-added service

    1,139,015


    316,498


    -


    1,455,513


    222,155

    Mobile marketing

    38,717


    -


    -


    38,717


    5,909

    Mobile games

    11,184


    -


    -


    11,184


    1,707

    Other services

    1,968


    -


    1,119


    3,087


    471

    Total net revenues

    2,901,773


    567,704


    1,119


    3,470,596


    529,716

    Cost and expenses (iii):










    Cost of revenues

    (1,656,895)


    (280,989)


    (361)


    (1,938,245)


    (295,834)

    Research and development

    (205,330)


    (81,163)


    -


    (286,493)


    (43,727)

    Sales and marketing

    (326,829)


    (286,710)


    (34)


    (613,573)


    (93,650)

    General and administrative

    (159,451)


    (14,121)


    (4,390)


    (177,962)


    (27,162)

    Total cost and expenses

    (2,348,505)


    (662,983)


    (4,785)


    (3,016,273)


    (460,373)

    Other operating income

    19,961


    5,938


    1


    25,900


    3,953

    Income (loss) from operations

    573,229


    (89,341)


    (3,665)


    480,223


    73,296

    Interest income

    96,343


    305


    46


    96,694


    14,758

    Interest expense

    (18,361)


    -


    -


    (18,361)


    (2,802)

    Other gain or loss, net

    (7,500)


    -


    -


    (7,500)


    (1,145)

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

    643,711


    (89,036)


    (3,619)


    551,056


    84,107

    Income tax (expenses) benefits

    (93,602)


    2,204


    -


    (91,398)


    (13,950)

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

    550,109


    (86,832)


    (3,619)


    459,658


    70,157

    Share of loss on equity method investments

    1,261


    -


    -


    1,261


    192

    Net income (loss)

    551,370


    (86,832)


    (3,619)


    460,919


    70,349











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

















    Three months


    ended March 31, 2021


    Momo


    Tantan


    QOOL


    Total


    Total


    RMB


    RMB


    RMB


    RMB


    US$

    Cost of revenues

    2,325


    1,399


    -


    3,724


    568

    Research and development

    30,525


    9,684


    -


    40,209


    6,137

    Sales and marketing

    12,906


    4,650


    -


    17,556


    2,680

    General and administrative

    81,484


    2,284


    -


    83,768


    12,785

    Total cost and expenses

    127,240


    18,017


    -


    145,257


    22,170

     

     

    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, 2021


    Momo


    Tantan


    QOOL


    Total


    Total


    RMB


    RMB


    RMB


    RMB


    US$

    Income (loss) from operations

    573,229


    (89,341)


    (3,665)


    480,223


    73,296

    Share-based compensation

    127,240


    18,017


    -


    145,257


    22,170

    Amortization of intangible assets from business
    acquisitions

    -


    35,699


    -


    35,699


    5,449

    Non-GAAP income (loss) from operations

    700,469


    (35,625)


    (3,665)


    661,179


    100,915











    Net income (loss)

    551,370


    (86,832)


    (3,619)


    460,919


    70,349

    Share-based compensation

    127,240


    18,017


    -


    145,257


    22,170

    Amortization of intangible assets from business
    acquisitions

    -


    35,699


    -


    35,699


    5,449

    Tax impacts

    -


    (8,925)


    -


    (8,925)


    (1,362)

    Non-GAAP net income (loss)

    678,610


    (42,041)


    (3,619)


    632,950


    96,606

     

     

    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$[1]

    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 (iv):










    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)

    Other gain or loss, net

    (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











    (iv) 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











    [1] All translations from RMB to U.S. dollars are made at a rate of RMB 7.0808 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.

     

     

    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$

    Income (loss) from operations

    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 income (loss) from
    operations

    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

     

     

    Related Links :

    http://ir.immomo.com/

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