Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subject: ERN

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

First Nine Months of 2023 Highlights

"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

 

 

SOURCE Hello Group Inc.


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Diagnos Inc. ("DIAGNOS" or the "Corporation") , a pioneer in early detection of critical health issues through the use of Artificial Intelligence (AI) technologies, is pleased to announce the appointment of Mr. Michael Braeuel to the Corporation's...

at 11:13
Motto Mortgage, the first-and-only national mortgage brokerage franchise in the United States focused on transparency and compliance, has a new office in Meridian, Mississippi. Motto Mortgage Premier Experts is now open and serving all markets...

at 11:12
We are advised by MPS Limited that journalists and other readers should disregard the news release, MPS acquires AJE to scale AI capabilities and enter B2C market, issued 29-Feb-2024 over PR Web. The release was issued inadvertently by PR Web....

at 11:11
Orano and SHINE Technologies signed a Memorandum of Understanding (MOU) this week to cooperate in the development of a U.S. pilot plant with commercial-scale technology for recycling used nuclear fuel from light water reactors....

at 11:10
Crown Consumer Skincare, a division of Crown Laboratories, Inc., announces the expansion of its Blue Lizard® Australian Mineral Sunscreen franchise with the introduction of their new SPF 15+ Mineral Sunscreen Lip Balm....



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