BEIJING, March 14, 2024 /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 fourth quarter and the full year ended December 31, 2023.
Fourth Quarter of 2023 Highlights
Net revenues decreased by 6.5% year over year to RMB3,002.9 million (US$423.0 million*) in the fourth quarter of 2023. Net income attributable to Hello Group Inc. increased to RMB452.5 million (US$63.7 million) in the fourth quarter of 2023, from RMB398.0 million in the same period of 2022. Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB514.7 million (US$72.5 million) in the fourth quarter of 2023, from RMB487.9 million in the same period of 2022. Diluted net income per American Depositary Share ("ADS") was RMB2.32 (US$0.33) in the fourth quarter of 2023, compared to RMB2.01 in the same period of 2022. Non-GAAP diluted net income per ADS (note 1) was RMB2.63 (US$0.37) in the fourth quarter of 2023, compared to RMB2.46 in the same period of 2022. Monthly Active Users ("MAU") on Tantan app were 13.7 million in December 2023, compared to 18.4 million in December 2022. For the Momo app total paying users was 7.4 million for the fourth quarter of 2023, compared to 7.8 million for the same period last year. Tantan had 1.2 million paying users for the fourth quarter of 2023 compared to 1.7 million from the year ago period.
Full Year 2023 Highlights
Net revenues decreased by 5.5% year over year to RMB12,002.3 million (US$1,690.5 million) for the full year of 2023. Net income attributable to Hello Group Inc. was RMB1,957.6 million (US$275.7 million) for the full year of 2023, compared to RMB1,484.3 million during the same period of 2022. Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,224.7 million (US$313.3 million) for the full year of 2023, compared to RMB1,885.8 million during the same period of 2022. Diluted net income per ADS was RMB9.84 (US$1.39) for the full year of 2023, compared to RMB7.31 during the same period of 2022. Non-GAAP diluted net income per ADS (note 1) was RMB11.17 (US$1.57) for the full year of 2023, compared to RMB9.20 during the same period of 2022.
"2023 was a busy, yet fruitful year. Despite many changes and challenges in the external environment, our team made steady progress against our strategic priorities." Commented Yan Tang, Chairman and CEO of Hello Group. "With solid improvement in cost efficiency, we were able to meaningfully improve the profitability of the company against economic headwinds. I am also pleased to see that our new endeavors in the overseas market have started bearing fruits, which gives us more confidence to invest more resources and take bigger strides to explore wider markets abroad."
* 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 RMB7.0999 to US$1.00, the effective noon buying rate for December 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.
Fourth Quarter of 2023 Financial Results
Net revenues
Total net revenues were RMB3,002.9 million (US$423.0 million) in the fourth quarter of 2023, a decrease of 6.5% from RMB3,212.7 million in the fourth quarter of 2022.
Live video service revenues were RMB1,523.9 million (US$214.6 million) in the fourth quarter of 2023, a decrease of 11.6% from RMB1,724.2 million during the same period of 2022. The decrease was primarily attributable to a soft consumer sentiment in the current macro environment and our proactive operation adjustments to de-emphasise large scale competition events in the Momo app, and to a lesser degree, Tantan pivoting away from the less dating-centric live video service.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,424.9 million (US$200.7 million) in the fourth quarter of 2023, a decrease of 1.7% from RMB1,449.5 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 product adjustments to improve Momo app’s ecosystem, and to a lesser extent, the decline in Tantan’s paying users that resulted from a reduction in channel investment, the anti-spam campaign and the adjustments to subscription renewals. The decrease was partially offset by the rapid revenue growth from the new standalone apps.
Mobile marketing revenues were RMB44.9 million (US$6.3 million) in the fourth quarter of 2023, an increase of 36.4% from RMB32.9 million during the same period of 2022.
Mobile games revenues were RMB5.4 million (US$0.8 million) in the fourth quarter of 2023, an increase of 2.4% from RMB5.3 million in the fourth quarter of 2022.
Net revenues from the Momo segment decreased from RMB2,865.8 million in the fourth quarter of 2022 to RMB2,728.7 million (US$384.3 million) in the fourth quarter of 2023, primarily due to the decrease in net revenues from value-added service and live video service on Momo app. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB346.7 million in the fourth quarter of 2022 to RMB272.2 million (US$38.3 million) in the fourth quarter of 2023, mainly due to the decrease in net revenues from live video service, and to a lesser extent, the decrease from value-added service.
Cost and expenses
Cost and expenses were RMB2,431.8 million (US$342.5 million) in the fourth quarter of 2023, a decrease of 11.2% from RMB2,738.3 million in the fourth quarter of 2022. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service on the Momo app and on the Tantan app, and a decrease in revenue sharing with virtual gift recipients of virtual gift service on the Momo app. 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 RMB2,369.5 million (US$333.7 million) in the fourth quarter of 2023, a decrease of 10.5% from RMB2,648.3 million during the same period of 2022.
Other operating income (loss), net
Other operating income was RMB30.8 million (US$4.3 million) in the fourth quarter of 2023, compared to a loss of RMB65.2 million during the fourth quarter of 2022. The other operating loss in the fourth quarter of 2022 mainly included a contingent loss accrual of RMB92.9 million related to an ongoing investigation of the alleged illegal activity on the source of the funding consumed on Momo’s platform.
Income from operations
Income from operations was RMB602.0 million (US$84.8 million) in the fourth quarter of 2023, compared to RMB409.2 million during the same period of 2022. Income from operations of the Momo segment was RMB576.9 million (US$81.3 million) in the fourth quarter of 2023, which increased from RMB435.8 million in the fourth quarter of 2022. Income from operations of the Tantan segment was RMB26.8 million (US$3.8 million) in the fourth quarter of 2023, compared to a loss from operations of RMB21.7 million in the fourth quarter of 2022.
Non-GAAP income from operations (note 1) was RMB664.2 million (US$93.6 million) in the fourth quarter of 2023, compared to RMB499.2 million during the same period of 2022. Non-GAAP income from operations of the Momo segment was RMB638.9 million (US$90.0 million) in the fourth quarter of 2023, which increased from RMB519.2 million in the fourth quarter of 2022. Non-GAAP income from operations of the Tantan segment was RMB27.0 million (US$3.8 million) in the fourth quarter of 2023, compared to a non-GAAP loss from operations of RMB15.2 million in the fourth quarter of 2022.
Income tax expenses
Income tax expenses were RMB183.4 million (US$25.8 million) in the fourth quarter of 2023, compared to RMB109.4 million in the fourth quarter of 2022. The increase in income tax expenses was primarily due to the higher profit in the fourth quarter of 2023.
Net income
Net income was RMB452.5 million (US$63.7 million) in the fourth quarter of 2023, compared to RMB397.0 million during the same period of 2022. Net income from the Momo segment was RMB430.0 million (US$60.6 million) in the fourth quarter of 2023, compared to RMB397.1 million in the same period of 2022. Net income from the Tantan segment was RMB24.2 million (US$3.4 million) in the fourth quarter of 2023, compared to RMB4.7 million in the fourth quarter of 2022.
Non-GAAP net income (note 1) was RMB514.7 million (US$72.5 million) in the fourth quarter of 2023, compared to RMB487.0 million during the same period of 2022. Non-GAAP net income from the Momo segment was RMB492.1 million (US$69.3 million) in the fourth quarter of 2023, which increased from RMB480.5 million in the fourth quarter of 2022. Non-GAAP net income of the Tantan segment was RMB24.4 million (US$3.4 million) in the fourth quarter of 2023, compared to RMB11.3 million in the fourth quarter of 2022.
Net income attributable to Hello Group Inc.
Net income attributable to Hello Group Inc. was RMB452.5 million (US$63.7 million) in the fourth quarter of 2023, compared to RMB398.0 million during the same period of 2022.
Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB514.7 million (US$72.5 million) in the fourth quarter of 2023, compared to RMB487.9 million during the same period of 2022.
Net income per ADS
Diluted net income per ADS was RMB2.32 (US$0.33) in the fourth quarter of 2023, compared to RMB2.01 in the fourth quarter of 2022.
Non-GAAP diluted net income per ADS (note 1) was RMB2.63 (US$0.37) in the fourth quarter of 2023, compared to RMB2.46 in the fourth quarter of 2022.
Cash and cash flow
As of December 31, 2023, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term investments, short-term restricted cash and long-term restricted cash totaled RMB13,478.5 million (US$1,898.4 million), compared to RMB13,398.8 million as of December 31, 2022.
Net cash provided by operating activities in the fourth quarter of 2023 was RMB415.9 million (US$58.6 million), compared to RMB538.7 million in the fourth quarter of 2022.
Full Year 2023 Financial Results
Net revenues for the full year of 2023 were RMB12,002.3 million (US$1,690.5 million), a decrease of 5.5% from RMB12,704.2 million in the same period of 2022.
Net income attributable to Hello Group Inc. was RMB1,957.6 million (US$275.7 million) for the full year of 2023, compared to RMB1,484.3 million during the same period of 2022.
Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,224.7 million (US$313.3 million) for the full year of 2023, compared to RMB1,885.8 million during the same period of 2022.
Diluted net income per ADS was RMB9.84 (US$1.39) during the full year of 2023, compared to RMB7.31 in the same period of 2022.
Non-GAAP diluted net income per ADS (note 1) was RMB11.17 (US$1.57) during the full year of 2023, compared to RMB9.20 in the same period of 2022.
Net cash provided by operating activities was RMB2,277.2 million (US$320.7 million) during the full year of 2023, compared to RMB1,226.9 million in the same period of 2022.
Recent Development
Declaration of a special cash dividend
Hello Group’s board of directors has declared a special cash dividend in the amount of US$0.54 per ADS, or US$0.27 per ordinary share. The cash dividend will be paid on April 30, 2024 to shareholders of record at the close of business on April 12, 2024. The ex-dividend date will be April 11, 2024. The aggregate amount of cash dividends to be paid is approximately US$103 million, which will be funded by available cash on the Company’s balance sheet.
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 up to June 6, 2024 (the "Share Repurchase Program"). As of March 14, 2024, 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.
On March 14, 2024, Hello Group’s board of directors approved to amend the Share Repurchase Program to (i) extend the term of the Share Repurchase Program up to June 30, 2026, and (ii) upsize the Share Repurchase Program so that the Company is authorized to, from time to time, acquire up to an aggregate of US$286.1 million worth of its shares in the form of ADSs and/or the ordinary shares of the Company in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations.
Business Outlook
For the first quarter of 2024, the Company expects total net revenues to be between RMB2.45 billion to RMB2.55 billion, representing a decrease of 13.1% to 9.5% 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 Thursday, March 14, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 14, 2024).
Participants can register for the conference call by navigating to:
https://s1.c-conf.com/diamondpass/10037219-7ww6gf.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 March 21, 2024. The dial-in details for the replay are as follows:
U.S. / Canada: 1-855-883-1031
Hong Kong: 800-930-639
Passcode: 10037219
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 RelationsPhone: +86-10-5731-0538Email: ir@hellogroup.com
Christensen
In China
Ms. Xiaoyan SuPhone: +86-10-5900-1548E-mail: Xiaoyan.Su@christensencomms.com
In U.S.
Ms. Linda BergkampPhone: +1-480-614-3004Email: linda.bergkamp@christensencomms.com
Safe Harbor Statement
This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the first quarter of 2024, 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 fourth quarter of 2023 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2024 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 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
Year
Ended December 31
Ended December 31
2022
2023
2023
2022
2023
2023
RMB
RMB
US$
RMB
RMB
US$
Net revenues:
Live video service
1,724,228
1,523,885
214,635
6,510,460
6,072,871
855,346
Value-added service
1,449,537
1,424,893
200,692
6,007,018
5,752,571
810,233
Mobile marketing
32,927
44,915
6,326
124,956
133,677
18,828
Mobile games
5,316
5,441
766
55,732
19,610
2,762
Other services
650
3,798
535
6,006
23,594
3,323
Total net revenues
3,212,658
3,002,932
422,954
12,704,172
12,002,323
1,690,492
Cost and expenses:
Cost of revenues
(1,916,050)
(1,770,117)
(249,316)
(7,421,419)
(7,025,394)
(989,506)
Research and development
(272,657)
(231,445)
(32,598)
(1,006,219)
(884,590)
(124,592)
Sales and marketing
(407,075)
(304,696)
(42,916)
(2,073,617)
(1,414,949)
(199,291)
General and administrative
(142,492)
(125,498)
(17,676)
(596,006)
(502,479)
(70,773)
Total cost and expenses
(2,738,274)
(2,431,756)
(342,506)
(11,097,261)
(9,827,412)
(1,384,162)
Other operating (loss) income, net
(65,158)
30,821
4,341
20,632
130,105
18,325
Income from operations
409,226
601,997
84,789
1,627,543
2,305,016
324,655
Interest income
88,118
124,354
17,515
368,879
436,253
61,445
Interest expense
(10,955)
(20,552)
(2,895)
(83,530)
(62,223)
(8,764)
Other gain or loss, net
–
(31,250)
(4,401)
118,325
(26,685)
(3,759)
Income before income tax and share of income on equity method investments
486,389
674,549
95,008
2,031,217
2,652,361
373,577
Income tax expenses
(109,421)
(183,377)
(25,828)
(562,281)
(630,023)
(88,737)
Income before share of income on equity method investments
376,968
491,172
69,180
1,468,936
2,022,338
284,840
Share of income (loss) on equity method investments
20,040
(38,703)
(5,451)
11,073
(70,643)
(9,950)
Net income
397,008
452,469
63,729
1,480,009
1,951,695
274,890
Less: net loss attributable to non-controlling interest
(986)
–
–
(4,274)
(5,886)
(829)
Net income attributable to the shareholders of Hello Group Inc.
397,994
452,469
63,729
1,484,283
1,957,581
275,719
Net income per share attributable to ordinary shareholders
Basic
1.05
1.2
0.17
3.8
5.18
0.73
Diluted
1.01
1.16
0.16
3.65
4.92
0.69
Weighted average shares used in calculating net income per ordinary share
Basic
377,841,986
376,317,036
376,317,036
390,176,367
377,639,399
377,639,399
Diluted
406,152,757
390,956,175
390,956,175
423,810,279
401,833,328
401,833,328
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in thousands, except share and per share data)
Three months
Year
Ended December 31
Ended December 31
2022
2023
2023
2022
2023
2023
RMB
RMB
US$
RMB
RMB
US$
Net income
397,008
452,469
63,729
1,480,009
1,951,695
274,890
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment
54,041
(95,774)
(13,489)
(274,791)
20,414
2,875
Comprehensive income
451,049
356,695
50,240
1,205,218
1,972,109
277,765
Less: comprehensive (loss) income attributed to the non-controlling interest
(7,154)
(5,020)
(707)
10,556
357
50
Comprehensive income attributable to Hello Group Inc.
458,203
361,715
50,947
1,194,662
1,971,752
277,715
Hello Group Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except share and per share data)
December 31
December 31
December 31
2022
2023
2023
RMB
RMB
US$
Assets
Current assets
Cash and cash equivalents
5,018,129
5,620,466
791,626
Short-term deposits
5,300,000
1,270,626
178,964
Restricted cash
97,706
10,147
1,429
Short-term investments
300,240
–
–
Accounts receivable, net of allowance for doubtful accounts of RMB5,870 and RMB12,780 as of December 31, 2022 and 2023, respectively
188,711
201,517
28,383
Amounts due from related parties
55
7,258
1,022
Prepaid expenses and other current assets
819,706
723,364
101,884
Total current assets
11,724,547
7,833,378
1,103,308
Long-term deposits
2,600,000
3,924,975
552,821
Long-term restricted cash
82,766
2,652,299
373,569
Right-of-use assets, net
115,520
109,572
15,433
Property and equipment, net
172,984
659,033
92,823
Intangible assets, net
22,203
17,086
2,407
Rental deposits
20,737
12,962
1,826
Long-term investments
893,988
786,911
110,834
Amounts due from RPT-non current
–
20,000
2,817
Other non-current assets
162,499
180,052
25,360
Deferred tax assets
34,343
31,741
4,471
Total assets
15,829,587
16,228,009
2,285,669
Liabilities and equity
Current liabilities
Accounts payable
617,022
616,681
86,857
Deferred revenue
484,775
442,805
62,368
Accrued expenses and other current liabilities
797,504
630,617
88,821
Amounts due to related parties
9,178
4,314
608
Lease liabilities due within one year
88,352
60,008
8,452
Income tax payable
68,765
94,719
13,341
Deferred consideration in connection with business acquisitions
26,483
27,261
3,840
Long-term borrowings, current portion
–
215,615
30,369
Convertible senior notes-current
2,646,168
–
–
Total current liabilities
4,738,247
2,092,020
294,656
Deferred tax liabilities
22,011
24,987
3,519
Convertible Senior Notes
–
19,571
2,757
Long-term borrowings
–
1,938,385
273,016
Lease liabilities
33,281
52,171
7,348
Other non-current liabilities
105,410
114,085
16,069
Total liabilities
4,898,949
4,241,219
597,365
Shareholder’s equity (i)
10,930,638
11,986,790
1,688,304
Total liabilities and shareholder’s equity
15,829,587
16,228,009
2,285,669
(i): As of December 31, 2023, the number of ordinary shares outstanding was 375,085,192.
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in thousands, except share and per share data)
Three months
Year
Ended December 31
Ended December 31
2022
2023
2023
2022
2023
2023
RMB
RMB
US$
RMB
RMB
US$
Cash flows from operating activities:
Net income
397,008
452,469
63,729
1,480,009
1,951,695
274,890
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment
23,908
15,394
2,168
107,015
74,492
10,492
Amortization of intangible assets
1,279
1,279
180
5,116
5,116
721
Share-based compensation
89,944
62,224
8,765
401,484
267,101
37,620
Share of (income) loss on equity method investments
(20,040)
38,703
5,451
(11,073)
70,643
9,950
Gain on repurchase of convertible senior notes
–
–
–
(129,575)
(4,565)
(643)
Loss on long-term investments
–
31,250
4,401
11,250
31,250
4,401
Cash received on distributions from equity method investments
–
–
–
1,708
2,067
291
Gain or loss on disposal of property and equipment
4
2
–
(779)
(518)
(73)
Provision of (income) loss on receivable and other assets
(75)
1,553
219
(528)
11,624
1,637
Changes in operating assets and liabilities:
Accounts receivable
4,643
(11,392)
(1,605)
20,338
(21,308)
(3,001)
Prepaid expenses and other current assets
(36,784)
(13,492)
(1,900)
(52,928)
84,802
11,944
Amounts due from related parties
(55)
(144)
(20)
(55)
(27,203)
(3,831)
Rental deposits
–
5,524
778
1,399
7,776
1,095
Deferred tax assets
1,493
1,728
243
507
2,600
366
Other non-current assets
(15,907)
16,033
2,258
60,913
(11,606)
(1,635)
Accounts payable
(8,992)
(25,118)
(3,538)
(115,384)
13,707
1,931
Income tax payable
(6,081)
5,456
768
(57,004)
25,952
3,655
Deferred revenue
17,504
(31,253)
(4,402)
(56,387)
(42,390)
(5,971)
Accrued expenses and other current liabilities
121,638
(11,586)
(1,632)
(182,708)
(183,772)
(25,884)
Amount due to related parties
(265)
639
90
4,162
(4,865)
(685)
Deferred tax liabilities
(15,367)
(130,345)
(18,359)
(187,119)
(147)
(21)
Other non-current liabilities
(15,159)
6,953
979
(73,470)
24,710
3,480
Net cash provided by operating activities
538,696
415,877
58,573
1,226,891
2,277,161
320,729
Cash flows from investing activities:
Purchase of property and equipment
(10,053)
(316,847)
(44,627)
(80,445)
(576,310)
(81,172)
Payment for long-term investments
(15,000)
(9,750)
(1,373)
(70,343)
(18,750)
(2,641)
Purchase of short-term deposits
–
–
–
(1,700,000)
(1,028,556)
(144,869)
Cash received on maturity of short-term deposits
1,700,000
800,000
112,678
5,410,000
6,209,820
874,635
Payment for short term investments
(300,000)
–
–
(300,000)
–
–
Cash received from sales of short-term investment
–
308,550
43,458
–
308,550
43,458
Cash received on investment income distribution
–
–
–
3,523
1,517
214
Purchase of long-term deposits
(200,000)
(361,165)
(50,869)
(2,750,000)
(4,210,025)
(592,970)
Cash received on maturity of long-term deposits
–
–
–
1,200,000
1,700,000
239,440
Cash received from sales of long-term investment
–
10,000
1,408
–
25,000
3,521
Other investing activities
7
1
–
3,110
1,823
257
Net cash provided by investing activities
1,174,954
430,789
60,675
1,715,845
2,413,069
339,873
Cash flows from financing activities:
Deferred payment for business acquisition
–
–
–
(21,421)
–
–
Proceeds from exercise of share options
112
31
4
163
601
85
Repurchase of ordinary shares
(104,684)
(150,191)
(21,154)
(392,374)
(212,195)
(29,887)
Repurchase of subsidiary’s share options
(1,076)
–
–
(40,943)
(4,319)
(608)
Dividends payment
–
(20,803)
(2,930)
(840,997)
(958,052)
(134,939)
Proceeds from long-term borrowings
–
–
–
–
2,154,000
303,385
Payment for redemption of convertible bonds
–
–
–
(2,136,987)
(2,679,942)
(377,462)
Net cash used in financing activities
(105,648)
(170,963)
(24,080)
(3,432,559)
(1,699,907)
(239,426)
Effect of exchange rate changes
(30,706)
(34,609)
(4,872)
41,390
93,988
13,240
Net increase (decrease) in cash and cash equivalents
1,577,296
641,094
90,296
(448,433)
3,084,311
434,416
Cash, cash equivalents and restricted cash at the beginning of period
3,621,305
7,641,818
1,076,328
5,647,034
5,198,601
732,208
Cash, cash equivalents and restricted cash at the end of period
5,198,601
8,282,912
1,166,624
5,198,601
8,282,912
1,166,624
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 December 31, 2022
Ended December 31, 2023
Ended December 31, 2023
GAAP
Share-based compensation
Non-GAAP
GAAP
Share-based compensation
Non-GAAP
GAAP
Share-based compensation
Non-GAAP
RMB
RMB
RMB
RMB
RMB
RMB
US$
US$
US$
Cost of revenues
(1,916,050)
1,707
(1,914,343)
(1,770,117)
1,909
(1,768,208)
(249,316)
269
(249,047)
Research and development
(272,657)
22,145
(250,512)
(231,445)
13,375
(218,070)
(32,598)
1,884
(30,714)
Sales and marketing
(407,075)
8,480
(398,595)
(304,696)
8,653
(296,043)
(42,916)
1,219
(41,697)
General and administrative
(142,492)
57,612
(84,880)
(125,498)
38,287
(87,211)
(17,676)
5,393
(12,283)
Cost and operating expenses
(2,738,274)
89,944
(2,648,330)
(2,431,756)
62,224
(2,369,532)
(342,506)
8,765
(333,741)
Income from operations
409,226
89,944
499,170
601,997
62,224
664,221
84,789
8,765
93,554
Net income attributable to Hello Group Inc.
397,994
89,944
487,938
452,469
62,224
514,693
63,729
8,765
72,494
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.
Year
Year
Year
Ended December 31, 2022
Ended December 31, 2023
Ended December 31, 2023
GAAP
Share-based compensation
Non-GAAP
GAAP
Share-based compensation
Non-GAAP
GAAP
Share-based compensation
Non-GAAP
RMB
RMB
RMB
RMB
RMB
RMB
US$
US$
US$
Cost of revenues
(7,421,419)
14,195
(7,407,224)
(7,025,394)
6,307
(7,019,087)
(989,506)
888
(988,618)
Research and development
(1,006,219)
88,797
(917,422)
(884,590)
64,561
(820,029)
(124,592)
9,093
(115,499)
Sales and marketing
(2,073,617)
38,432
(2,035,185)
(1,414,949)
29,066
(1,385,883)
(199,291)
4,094
(195,197)
General and administrative
(596,006)
260,060
(335,946)
(502,479)
167,167
(335,312)
(70,773)
23,545
(47,228)
Cost and operating expenses
(11,097,261)
401,484
(10,695,777)
(9,827,412)
267,101
(9,560,311)
(1,384,162)
37,620
(1,346,542)
Income from operations
1,627,543
401,484
2,029,027
2,305,016
267,101
2,572,117
324,655
37,620
362,275
Net income attributable to Hello Group Inc.
1,484,283
401,484
1,885,767
1,957,581
267,101
2,224,682
275,719
37,620
313,339
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Three months
Ended December 31, 2023
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Net revenues:
Live video service
1,423,730
100,155
–
1,523,885
214,635
Value-added service
1,264,358
160,535
–
1,424,893
200,692
Mobile marketing
33,395
11,520
–
44,915
6,326
Mobile games
5,441
–
–
5,441
766
Other services
1,760
–
2,038
3,798
535
Total net revenues
2,728,684
272,210
2,038
3,002,932
422,954
Cost and expenses (ii):
Cost of revenues
(1,638,915)
(130,237)
(965)
(1,770,117)
(249,316)
Research and development
(180,343)
(51,102)
–
(231,445)
(32,598)
Sales and marketing
(244,043)
(58,444)
(2,209)
(304,696)
(42,916)
General and administrative
(117,923)
(6,882)
(693)
(125,498)
(17,676)
Total cost and expenses
(2,181,224)
(246,665)
(3,867)
(2,431,756)
(342,506)
Other operating income
29,442
1,301
78
30,821
4,341
Income (loss) from operations
576,902
26,846
(1,751)
601,997
84,789
Interest income
124,294
57
3
124,354
17,515
Interest expense
(20,552)
–
–
(20,552)
(2,895)
Other gain or loss, net
(31,250)
–
–
(31,250)
(4,401)
Income (loss) before income tax and share of income on equity method investments
649,394
26,903
(1,748)
674,549
95,008
Income tax expenses
(180,669)
(2,708)
–
(183,377)
(25,828)
Income (loss) before share of income on equity method investments
468,725
24,195
(1,748)
491,172
69,180
Share of loss on equity method investments
(38,703)
–
–
(38,703)
(5,451)
Net income (loss)
430,022
24,195
(1,748)
452,469
63,729
(ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
Ended December 31, 2023
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Cost of revenues
1,905
4
–
1,909
269
Research and development
13,194
181
–
13,375
1,884
Sales and marketing
8,653
–
–
8,653
1,219
General and administrative
38,279
8
–
38,287
5,393
Total cost and expenses
62,031
193
–
62,224
8,765
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 December 31, 2023
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Income (loss) from operations
576,902
26,846
(1,751)
601,997
84,789
Share-based compensation
62,031
193
–
62,224
8,765
Non-GAAP income (loss) from operations
638,933
27,039
(1,751)
664,221
93,554
Net income (loss)
430,022
24,195
(1,748)
452,469
63,729
Share-based compensation
62,031
193
–
62,224
8,765
Non-GAAP net income (loss)
492,053
24,388
(1,748)
514,693
72,494
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Three months
Ended December 31, 2022
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$[1]
Net revenues:
Live video service
1,561,332
162,896
–
1,724,228
249,990
Value-added service
1,265,693
183,844
–
1,449,537
210,164
Mobile marketing
32,927
–
–
32,927
4,774
Mobile games
5,316
–
–
5,316
771
Other services
483
–
167
650
93
Total net revenues
2,865,751
346,740
167
3,212,658
465,792
Cost and expenses (iii):
Cost of revenues
(1,722,675)
(192,748)
(627)
(1,916,050)
(277,801)
Research and development
(200,740)
(71,917)
–
(272,657)
(39,532)
Sales and marketing
(307,166)
(98,209)
(1,700)
(407,075)
(59,020)
General and administrative
(131,844)
(7,899)
(2,749)
(142,492)
(20,659)
Total cost and expenses
(2,362,425)
(370,773)
(5,076)
(2,738,274)
(397,012)
Other operating (loss) income, net
(67,499)
2,339
2
(65,158)
(9,447)
Income (loss) from operations
435,827
(21,694)
(4,907)
409,226
59,333
Interest income
87,799
253
66
88,118
12,776
Interest expense
(10,955)
–
–
(10,955)
(1,588)
Income (loss) before income tax and share of income on equity method investments
512,671
(21,441)
(4,841)
486,389
70,521
Income tax (expenses) benefits
(135,602)
26,181
–
(109,421)
(15,865)
Income (loss) before share of income on equity method investments
377,069
4,740
(4,841)
376,968
54,656
Share of income on equity method investments
20,040
–
–
20,040
2,906
Net income (loss)
397,109
4,740
(4,841)
397,008
57,562
(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
Ended December 31, 2022
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Cost of revenues
1,689
18
–
1,707
247
Research and development
15,907
6,238
–
22,145
3,211
Sales and marketing
8,473
7
–
8,480
1,229
General and administrative
57,350
262
–
57,612
8,353
Total cost and expenses
83,419
6,525
–
89,944
13,040
[1] All translations from RMB to U.S. dollars are made at a rate of RMB6.8972 to US$1.00, the effective noon buying rate for December 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Three months
Ended December 31, 2022
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Income (loss) from operations
435,827
(21,694)
(4,907)
409,226
59,333
Share-based compensation
83,419
6,525
–
89,944
13,040
Non-GAAP income (loss) from operations
519,246
(15,169)
(4,907)
499,170
72,373
Net income (loss)
397,109
4,740
(4,841)
397,008
57,562
Share-based compensation
83,419
6,525
–
89,944
13,040
Non-GAAP net income (loss)
480,528
11,265
(4,841)
486,952
70,602
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Year
Ended December 31, 2023
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Net revenues:
Live video service
5,567,894
504,977
–
6,072,871
855,346
Value-added service
5,085,541
667,030
–
5,752,571
810,233
Mobile marketing
109,125
24,552
–
133,677
18,828
Mobile games
19,610
–
–
19,610
2,762
Other services
16,337
–
7,257
23,594
3,323
Total net revenues
10,798,507
1,196,559
7,257
12,002,323
1,690,492
Cost and expenses (iv):
Cost of revenues
(6,404,042)
(599,348)
(22,004)
(7,025,394)
(989,506)
Research and development
(664,340)
(220,250)
–
(884,590)
(124,592)
Sales and marketing
(1,138,505)
(268,652)
(7,792)
(1,414,949)
(199,291)
General and administrative
(467,537)
(26,482)
(8,460)
(502,479)
(70,773)
Total cost and expenses
(8,674,424)
(1,114,732)
(38,256)
(9,827,412)
(1,384,162)
Other operating income
125,318
4,411
376
130,105
18,325
Income (loss) from operations
2,249,401
86,238
(30,623)
2,305,016
324,655
Interest income
435,451
713
89
436,253
61,445
Interest expense
(62,223)
–
–
(62,223)
(8,764)
Other gain or loss, net
(26,685)
–
–
(26,685)
(3,759)
Income (loss) before income tax and share of income on equity method investments
2,595,944
86,951
(30,534)
2,652,361
373,577
Income tax expenses
(623,844)
(6,179)
–
(630,023)
(88,737)
Income (loss) before share of income on equity method investments
1,972,100
80,772
(30,534)
2,022,338
284,840
Share of loss on equity method investments
(70,643)
–
–
(70,643)
(9,950)
Net income (loss)
1,901,457
80,772
(30,534)
1,951,695
274,890
(iv) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Year
Ended December 31, 2023
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Cost of revenues
6,167
140
–
6,307
888
Research and development
49,987
14,574
–
64,561
9,093
Sales and marketing
29,061
5
–
29,066
4,094
General and administrative
167,135
32
–
167,167
23,545
Total cost and expenses
252,350
14,751
–
267,101
37,620
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Year
Ended December 31, 2023
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Income (loss) from operations
2,249,401
86,238
(30,623)
2,305,016
324,655
Share-based compensation
252,350
14,751
–
267,101
37,620
Non-GAAP income (loss) from operations
2,501,751
100,989
(30,623)
2,572,117
362,275
Net income (loss)
1,901,457
80,772
(30,534)
1,951,695
274,890
Share-based compensation
252,350
14,751
–
267,101
37,620
Non-GAAP net income (loss)
2,153,807
95,523
(30,534)
2,218,796
312,510
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Year
Ended December 31, 2022
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Net revenues:
Live video service
5,966,323
544,137
–
6,510,460
943,928
Value-added service
5,183,302
823,716
–
6,007,018
870,936
Mobile marketing
124,956
–
–
124,956
18,117
Mobile games
55,732
–
–
55,732
8,080
Other services
4,781
–
1,225
6,006
871
Total net revenues
11,335,094
1,367,853
1,225
12,704,172
1,841,932
Cost and expenses (v):
Cost of revenues
(6,704,020)
(714,936)
(2,463)
(7,421,419)
(1,076,005)
Research and development
(737,380)
(268,839)
–
(1,006,219)
(145,888)
Sales and marketing
(1,346,692)
(721,889)
(5,036)
(2,073,617)
(300,646)
General and administrative
(547,798)
(33,234)
(14,974)
(596,006)
(86,413)
Total cost and expenses
(9,335,890)
(1,738,898)
(22,473)
(11,097,261)
(1,608,952)
Other operating income
8,753
11,830
49
20,632
2,991
Income (loss) from operations
2,007,957
(359,215)
(21,199)
1,627,543
235,971
Interest income
368,051
544
284
368,879
53,482
Interest expense
(83,530)
–
–
(83,530)
(12,111)
Other gain or loss, net
118,325
–
–
118,325
17,156
Income (loss) before income tax and share of income on equity method investments
2,410,803
(358,671)
(20,915)
2,031,217
294,498
Income tax (expenses) benefits
(586,663)
24,382
–
(562,281)
(81,523)
Income (loss) before share of income on equity method investments
1,824,140
(334,289)
(20,915)
1,468,936
212,975
Share of income on equity method investments
11,073
–
–
11,073
1,605
Net income (loss)
1,835,213
(334,289)
(20,915)
1,480,009
214,580
(v) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Year
Ended December 31, 2022
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Cost of revenues
7,166
7,029
–
14,195
2,058
Research and development
67,659
21,138
–
88,797
12,874
Sales and marketing
38,202
230
–
38,432
5,572
General and administrative
259,669
391
–
260,060
37,705
Total cost and expenses
372,696
28,788
–
401,484
58,209
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Year
Ended December 31, 2022
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
Income (loss) from operations
2,007,957
(359,215)
(21,199)
1,627,543
235,971
Share-based compensation
372,696
28,788
–
401,484
58,209
Non-GAAP income (loss) from operations
2,380,653
(330,427)
(21,199)
2,029,027
294,180
Net income (loss)
1,835,213
(334,289)
(20,915)
1,480,009
214,580
Share-based compensation
372,696
28,788
–
401,484
58,209
Non-GAAP net income (loss)
2,207,909
(305,501)
(20,915)
1,881,493
272,789
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