Momo Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2019
BEIJING, March 19, 2020 /PRNewswire/ -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"), a leading mobile social networking platform in China, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2019.
Fourth Quarter of 2019 Highlights
-- Net revenues increased by 22% year over year to RMB4,687.9 million
(US$673.4 million*) in the fourth quarter of 2019.
-- Net income attributable to Momo Inc. increased to RMB1,055.9 million
(US$151.7 million) in the fourth quarter of 2019 from RMB660.8 million
in the same period of 2018.
-- Non-GAAP net income attributable to Momo Inc. (note 1) increased to
RMB1,252.5 million (US$179.9 million) in the fourth quarter of 2019,
from RMB887.4 million in the same period of 2018.
-- Diluted net income per American Depositary Share ("ADS") was RMB4.74
(US$0.68) in the fourth quarter of 2019, compared to RMB3.04 in the same
period of 2018.
-- Non-GAAP diluted net income per ADS (note 1) was RMB5.61 (US$0.81) in
the fourth quarter of 2019, compared to RMB4.05 in the same period of
2018.
-- Monthly Active Users ("MAU") on Momo application were 114.5 million in
December 2019, compared to 113.3 million in December 2018.
-- Total paying users of our live video service and value-added service,
without double counting the overlap and including 4.5 million paying
users of Tantan, were 13.8 million for the fourth quarter of 2019,
compared to 13.0 million for the fourth quarter of 2018, which included
3.9 million paying users of Tantan.
Full Year 2019 Highlights
-- Net revenues increased 27% year over year to RMB17,015.1 million
(US$2,444.1 million) for the full year of 2019.
-- Net income attributable to Momo Inc. was RMB2,970.9 million (US$426.7
million) for the full year of 2019, compared with RMB2,815.8 million for
2018.
-- Non-GAAP net income attributable to Momo Inc. (note 1) was RMB4,493.3
million (US$645.4 million) for the full year of 2019, compared with
RMB3,462.1 million for 2018.
-- Diluted net income per ADS was RMB13.52 (US$1.94) for the full year of
2019, compared with RMB13.18 for 2018.
-- Non-GAAP diluted net income per ADS (note 1) was RMB20.26 (US$2.91) for
the full year of 2019, compared with RMB16.17 for 2018.
* 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
RMB6.9618 to US$1.00, the effective noon
buying rate for December 31, 2019 as set
forth in the H.10 statistical release of
the Federal Reserve Board.
"2019 was a fruitful year, with total net revenue up by 27%, net income up by 6% and Non-GAAP net income up by 30%. The strong financial performance is a testament of the competence of our team," commented Yan Tang, Chairman and CEO of Momo. "Looking into the year 2020, we are going to continue to focus on enhancing user experience and drive product innovations in order to capture the many growth opportunities ahead of us."
Fourth Quarter of 2019 Financial Results
Net revenues
Total net revenues were RMB4,687.9 million (US$673.4 million) in the fourth quarter of 2019, an increase of 22% from RMB3,843.9 million in the fourth quarter of 2018.
Live video service revenues were RMB3,383.5 million (US$486.0 million) in the fourth quarter of 2019, an increase of 14% from RMB2,959.2 million during the same period of 2018, as a result of the effective growth strategy to apply different products and operational efforts for different cohorts of users.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,189.1 million (US$170.8 million) in the fourth quarter of 2019, an increase of 65% from RMB722.4 million during the same period of 2018. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more functions launched and more paying scenarios introduced to enhance the social experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.
Mobile marketing revenues were RMB93.0 million (US$13.4 million) in the fourth quarter of 2019, a decrease of 24% from RMB122.1 million during the same period of 2018. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers and the decrease in advertisement properties on Momo's platform.
Mobile games revenues were RMB14.4 million (US$2.1 million) in the fourth quarter of 2019, a decrease of 43% from RMB25.5 million in the fourth quarter of 2018. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.
Net revenues from Momo segment increased from RMB3,609.3 million in the fourth quarter of 2018 to RMB4,317.3 million (US$620.1 million) in the fourth quarter of 2019, primarily driven by the significant increase in net revenues from live video service and value-added service. Net revenues from Tantan segment increased from RMB223.0 million in the fourth quarter of 2018 to RMB369.8 million (US$53.1million) in the fourth quarter of 2019, which was mainly due to the increase in the number of paying users of Tantan.
Cost and expenses
Cost and expenses were RMB3,581.1 million (US$514.4 million) in the fourth quarter of 2019, an increase of 12% from RMB3,195.7 million in the fourth quarter of 2018. The increase was primarily attributable to: (a) an increase in revenue sharing with broadcasters related to our live video service and virtual gift recipients; (b) an increase in marketing and promotional expenses to attract users on both Momo and Tantan platforms and to promote our live video services; (c) an increase in infrastructure-related spending, such as bandwidth costs and server depreciation costs, driven by more functions introduced on Momo's platform. The increase was partially offset by a decrease in production cost in connection with a television program.
Non-GAAP cost and expenses (note 1) were RMB3,374.9 million (US$484.8 million) in the fourth quarter of 2019, an increase of 14% from RMB2,959.6 million during the same period of 2018.
Other operating income
Other operating income was RMB142.6 million (US$20.5 million) in the fourth quarter of 2019, an increase from RMB141.4 million during the fourth quarter of 2018. The other operating income mainly consisted of government incentives.
Income from operations
Income from operations was RMB1,249.4 million (US$179.5 million) in the fourth quarter of 2019, compared to RMB789.6 million during the same period of 2018. Income from operations of Momo segment was RMB1,458.5 million (US$209.5 million) in the fourth quarter of 2019, increasing from RMB1,092.6 million in the fourth quarter of 2018. Loss from operations of Tantan segment was RMB202.7 million (US$29.1 million) in the fourth quarter of 2019, compared to loss from operations of RMB219.9 million in the fourth quarter of 2018.
Non-GAAP income from operations (note 1) was RMB1,455.7 million (US$209.1 million) in the fourth quarter of 2019, compared to RMB1,025.7 million during the same period of 2018. Non-GAAP income from operations of Momo segment was RMB1,593.9 million (US$229.0 million) in the fourth quarter of 2019, increasing from RMB1,200.8 million in the fourth quarter of 2018. Non-GAAP loss from operations of Tantan segment was RMB135.0 million (US$19.4 million) in the fourth quarter of 2019, compared to non-GAAP loss from operations of RMB92.6 million in the fourth quarter of 2018.
Income tax expenses
Income tax expenses were RMB253.7 million (US$36.4 million) in the fourth quarter of 2019, increasing from RMB183.3 million in the fourth quarter of 2018. The increase was mainly because we generated higher profit in the fourth quarter of 2019.
Net income
Net income was RMB1,052.3 million (US$151.2 million) in the fourth quarter of 2019, compared to RMB646.4 million during the same period of 2018. Net income from Momo segment was RMB1,246.9 million (US$179.1 million) in the fourth quarter of 2019, increasing from RMB940.5 million in the fourth quarter of 2018. Net loss from Tantan segment was RMB188.2 million (US$27.0 million) in the fourth quarter of 2019, compared to net loss of RMB206.4 million in the fourth quarter of 2018.
Non-GAAP net income (note 1) was RMB1,248.9 million (US$179.4 million) in the fourth quarter of 2019, compared to RMB873.0 million during the same period of 2018. Non-GAAP net income from Momo segment was RMB1,382.3 million (US$198.6 million) in the fourth quarter of 2019, increasing from RMB1,048.7 million in the fourth quarter of 2018. Non-GAAP net loss of Tantan segment was RMB130.2 million (US$18.7 million) in the fourth quarter of 2019, compared to non-GAAP net loss of RMB88.5 million in the fourth quarter of 2018.
Net income attributable to Momo Inc.
Net income attributable to Momo Inc. was RMB1,055.9 million (US$151.7 million) in the fourth quarter of 2019, compared to RMB660.8 million during the same period of 2018.
Non-GAAP net income (note 1) attributable to Momo Inc. was RMB1,252.5 million (US$179.9 million) in the fourth quarter of 2019, compared to RMB887.4 million during the same period of 2018.
Net income per ADS
Diluted net income per ADS was RMB4.74 (US$0.68) in the fourth quarter of 2019, compared to RMB3.04 in the fourth quarter of 2018.
Non-GAAP diluted net income per ADS (note 1) was RMB5.61 (US$0.81) in the fourth quarter of 2019, compared to RMB4.05 in the fourth quarter of 2018.
Cash and cash flow
As of December 31, 2019, Momo's cash, cash equivalents and term deposits totaled RMB14,925.3 million (US$2,143.9 million), compared to RMB11,292.6 million as of December 31, 2018. Net cash provided by operating activities in the fourth quarter of 2019 was RMB1,675.1 million (US$240.6 million), compared to RMB1,163.4 million in the fourth quarter of 2018.
Full Year 2019 Financial Results
Net revenues for the full year of 2019 were RMB17,015.1 million (US$2,444.1 million), an increase of 27% from RMB13,408.4 million in the same period of 2018, primarily driven by the significant increase in net revenues from live video service and value-added service.
Net income attributable to Momo Inc. was RMB2,970.9 million (US$426.7 million) for the full year of 2019, compared to RMB2,815.8 million during the same period of 2018.
Non-GAAP net income attributable to Momo Inc. (note 1) was RMB4,493.3 million (US$645.4 million) for the full year of 2019, compared to RMB3,462.1 million during the same period of 2018.
Diluted net income per ADS was RMB13.52 (US$1.94) during the full year of 2019, compared to RMB13.18 in the same period of 2018.
Non-GAAP diluted net income per ADS (note 1) was RMB20.26 (US$2.91) during the full year of 2019, compared to RMB16.17 in the same period of 2018.
Net cash provided by operating activities was RMB5,448.9 million (US$782.7 million) during the full year of 2019, compared to RMB3,327.7 million in the same period of 2018.
Recent Development - Declaration of Special Cash Dividend
Momo's board of directors has declared a special cash dividend in the amount of US$0.76 per ADS, or US$0.38 per ordinary share. The cash dividend will be paid on April 30, 2020 to shareholders of record at the close of business on April 8, 2020. The ex-dividend date will be April 7, 2020. The aggregate amount of cash dividends to be paid is approximately US$161 million, which will be funded by surplus cash on the Company's balance sheet.
Business Outlook
For the first quarter of 2020, the Company expects total net revenues to be between RMB3.45 billion to RMB3.55 billion, representing a decrease of 7.3% to 4.6% year over year. This forecast considers the potential impact of the COVID-19 outbreak and reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change, particularly as to the potential impact of the COVID-19 on the economy in China.
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 Thursday, March 19, 2020, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 19, 2020).
Dial-in details for the earnings conference call are as follows:
International: +65-6713-5090
U.S. Toll Free: +1-866-519-4004
Hong Kong Toll Free:
800-906601
Mainland China:
4006-208038
Passcode:
Momo
Please dial in 15 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 8:00 a.m. U.S. Eastern Time, March 26, 2020. The dial-in details for the replay are as follows:
International: +61-2-8199-0299
U.S. Toll Free: +1-855-452-5696
Passcode: 3264508
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
Momo is a leading mobile social networking platform in China. Momo connects people in a personal and lively way through a revolutionary mobile-based social networking platform. With powerful and precise location-based features, Momo enables users to connect with each other and expand relationships from online to offline. Momo's platform includes the Momo mobile application and a variety of related features, functionalities, tools and services that it provides to users, customers and platform partners. Leveraging its social interest graph engine and analysis of user behavior data, Momo is able to provide users a customized experience based on their social preferences and needs. Momo users can maintain and strengthen their relationships through private and group communication tools, content creation and sharing functions, as well as the offline social activities promoted on Momo's platform. Momo users are also able to enjoy live video on our platform. In addition, in May 2018, Momo completed its acquisition of Tantan, a leading social and dating app for the younger generation. Tantan, whose primary users consist of young Chinese singles, is designed to help its users find and establish romantic connections, as well as meet interesting people.
For investor and media inquiries, please contact:
Momo Inc.
Investor Relations
Phone: +86-10-5731-0538
Email: ir@immomo.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@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 and our financial outlook for the first quarter of 2020.
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 and full year of 2019 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2020 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. In addition, 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, and the impact of the COVID-19 to Momo's business operations and the economy in China. 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
Year
ended December 31
ended December 31
---
2018 2019 2019 2018 2019 2019
RMB
RMB
US$
RMB
RMB
US$
Net revenues:
Live video service 2,959,222 3,383,477 486,006 10,709,491 12,448,131 1,788,062
Value-added service 722,414 1,189,114 170,806 1,883,150 4,105,963 589,785
Mobile marketing 122,143 92,991 13,357 500,321 331,822 47,663
Mobile games 25,502 14,418 2,071 130,392 92,451 13,280
Other services 14,635 7,898 1,134 185,067 36,722 5,275
---
Total net revenues 3,843,916 4,687,898 673,374 13,408,421 17,015,089 2,444,065
Cost and expenses:
Cost of revenues (2,099,265) (2,351,309) (337,744) (7,182,897) (8,492,096) (1,219,813)
Research and development (243,499) (292,188) (41,970) (760,644) (1,095,031) (157,291)
Sales and marketing (618,268) (725,029) (104,144) (1,812,262) (2,690,824) (386,513)
General and administrative (234,700) (212,603) (30,539) (640,023) (1,527,282) (219,380)
---
Total cost and expenses (3,195,732) (3,581,129) (514,397) (10,395,826) (13,805,233) (1,982,997)
Other operating income 141,420 142,646 20,490 253,697 344,843 49,534
---
Income from operations 789,604 1,249,415 179,467 3,266,292 3,554,699 510,602
Interest income 89,766 108,205 15,543 272,946 407,542 58,540
Interest expense (19,646) (20,190) (2,900) (56,503) (78,611) (11,292)
Impairment loss on long-term (43,200) (43,200) (15,711) (2,257)
investments
Income before income tax 816,524 1,337,430 192,110 3,439,535 3,867,919 555,593
and share of income on
equity method
investments
Income tax expenses (183,338) (253,704) (36,442) (699,648) (883,801) (126,950)
---
Income before share of 633,186 1,083,726 155,668 2,739,887 2,984,118 428,643
income on equity method
investments
Share of income (loss) on 13,221 (31,406) (4,511) 48,660 (23,350) (3,354)
equity method investments
---
Net income 646,407 1,052,320 151,157 2,788,547 2,960,768 425,289
===
Less: net loss attributable to (14,430) (3,579) (514) (27,228) (10,122) (1,454)
non-controlling interest
---
Net income attributable to 660,837 1,055,899 151,671 2,815,775 2,970,890 426,743
Momo Inc.
Net income per share
attributable to ordinary
shareholders
Basic 1.60 2.53 0.36 6.92 7.15 1.03
Diluted 1.52 2.37 0.34 6.59 6.76 0.97
Weighted average shares
used in calculating net
income per ordinary share
Basic 413,732,538 416,878,784 416,878,784 407,009,875 415,316,627 415,316,627
Diluted 447,773,521 453,937,852 453,937,852 433,083,643 451,206,091 451,206,091
Momo 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
---
2018 2019 2019 2018 2019 2019
---
RMB
RMB
US$
RMB
RMB
US$
Net income 646,407 1,052,320 151,157 2,788,547 2,960,768 425,289
Other comprehensive income
(loss), net of tax
Foreign currency translation 5,171 (39,524) (5,677) 198,654 (8,835) (1,269)
adjustment
---
Comprehensive income 651,578 1,012,796 145,480 2,987,201 2,951,933 424,020
Less: comprehensive loss (14,535) (8,637) (1,241) (24,613) (8,081) (1,161)
attributed to the non-controlling
interest
---
Comprehensive income 666,113 1,021,433 146,721 3,011,814 2,960,014 425,181
attributable to Momo Inc.
===
Momo Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except share and per share data)
December 31
December 31
December 31
2018 2019 2019
RMB
RMB
US$
---
Assets
Current assets
Cash and cash equivalents 2,468,034 2,612,743 375,297
Term deposits 8,824,610 12,312,585 1,768,592
Accounts receivable, net of allowance for doubtful accounts of RMB 719,606 265,155 38,087
nil and RMB12,209 as of December 31, 2018 and 2019,
respectively
Amounts due from a related party - 4,382 629
Prepaid expenses and other current assets 620,979 599,000 86,041
Total current assets 12,633,229 15,793,865 2,268,646
Long-term deposit - 300,000 43,092
Right-of-use assets, net[1] - 190,552 27,371
Property and equipment, net 387,532 346,345 49,749
Intangible assets 1,036,986 890,303 127,884
Rental deposits 24,192 25,028 3,595
Long-term investments 447,465 495,905 71,232
Deferred tax assets 57,786 37,064 5,324
Other non-current assets 71,519 44,009 6,322
Goodwill 4,306,829 4,360,610 626,362
Total assets 18,965,538 22,483,681 3,229,577
Liabilities and equity
Current liabilities
Accounts payable 718,362 714,323 102,604
Deferred revenue 441,892 503,461 72,318
Accrued expenses and other current liabilities 846,710 985,873 141,611
Amount due to related parties 82,948 29,606 4,253
Lease liabilities due within one year[1] - 135,169 19,416
Income tax payable 137,090 153,976 22,117
Deferred consideration in connection with business acquisitions 469,274 84,346 12,116
Total current liabilities 2,696,276 2,606,754 374,435
Deferred tax liabilities 259,247 222,576 31,971
Convertible senior notes 4,877,116 4,954,352 711,648
Share-based compensation liability 86,767 902,047 129,571
Lease liabilities[1] - 56,498 8,115
Other non-current liabilities 23,273 22,672 3,257
Total liabilities 7,942,679 8,764,899 1,258,997
Shareholder's equity (i) 11,022,859 13,718,782 1,970,580
Total liabilities and shareholder's equity 18,965,538 22,483,681 3,229,577
(i): As of December 31, 2019, the number of ordinary shares issued and outstanding was 417,279,310.
[1] On January 1, 2019, the Company adopted ASU 2016-02, the new lease standard, using the modified retrospective basis
and did not restate comparative periods.
Momo 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
---
2018 2019 2019 2018 2019 2019
RMB
RMB
US$
RMB
RMB
US$
Cash flows from operating activities:
Net income 646,407 1,052,320 151,157 2,788,547 2,960,768 425,289
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation of property and equipment 42,244 51,385 7,381 148,238 198,237 28,475
Amortization of intangible assets 39,522 40,239 5,780 93,030 157,954 22,689
Share-based compensation 198,013 167,458 24,054 580,813 1,408,232 202,279
Share of (income) loss on equity method investments (13,221) 31,406 4,511 (48,660) 23,350 3,354
Impairment loss on long-term investments 43,200 43,200 15,711 2,257
Income on disposal of property and equipment (44) (1,283) (398) (57)
Provision of allowance for doubtful accounts (585) 12,209 1,754
Changes in operating assets and liabilities:
Accounts receivable (84,973) 110,340 15,849 (440,644) 442,176 63,515
Prepaid expenses and other current assets 14,190 49,554 7,118 (67,304) 26,372 3,788
Amount due from related parties 56 (2,776) (399) 33,463 (4,382) (629)
Rental deposits (4,062) (474) (68) (3,817) (836) (120)
Deferred tax assets (39,874) (2,582) (371) (10,961) 20,722 2,977
Other non-current assets (670) (3,411) (490) (45,534) (24,022) (3,451)
Accounts payable (18,987) 98,021 14,080 233,713 52,246 7,505
Income tax payable 81,097 39,938 5,737 (38,791) 16,886 2,426
Deferred revenue 12,470 6,852 984 (14,249) 61,641 8,854
Accrued expenses and other current liabilities 235,104 75,791 10,887 51,903 212,349 30,502
Amount due to related parties 25,349 235 34 43,024 (53,032) (7,618)
Deferred tax liability (9,547) (10,060) (1,445) (22,923) (45,382) (6,519)
Other non-current liabilities (2,915) (29,153) (4,188) 6,538 (31,915) (4,584)
---
Net cash provided by operating activities 1,163,359 1,675,083 240,611 3,327,718 5,448,886 782,686
Cash flows from investing activities:
Purchase of property and equipment (81,243) (32,109) (4,612) (242,843) (186,522) (26,792)
Proceeds from disposal of property and equipment 4 4 1 2,214 808 116
Payment for long-term investments (3,000) (21,500) (3,088) (65,125) (64,500) (9,265)
Prepayment of long-term investments (8,000) (55,000) (15,000) (2,155)
Payment for business acquisition, net of cash acquired (40,632) (3,318,841) -
Purchase of term deposits (5,300,000) (7,650,000) (1,098,854) (20,287,302) (22,151,135) (3,181,811)
Cash received on maturity of term deposits 4,600,000 6,036,000 867,017 13,922,393 18,686,430 2,684,138
Payment for short-term investments (103,000) (80,000) (11,491) (457,200) (360,000) (51,711)
Cash received from sales of short-term investment 218,000 120,000 17,237 467,700 360,000 51,711
Purchase of long-term deposits (300,000) (43,092) (300,000) (43,092)
Net cash used in investing activities (717,871) (1,927,605) (276,882) (10,034,004) (4,029,919) (578,861)
Cash flows from financing activities:
Proceeds from exercise of options 1 1 5,313 187 27
Deferred payment of purchase of property and equipment (157) (127) (18) (8,562) (17,114) (2,458)
Capital contribution from non-controlling interest shareholder 12 12 -
Dividends payment (877,346) (126,023)
Proceeds from bank loan 1,913,190 -
Repayment of bank loan (2,041,680) -
Deferred payment for business acquisition (379,507) (54,513)
Proceeds from issuance of Convertible Senior Notes, net of issuance 4,820,387 -
cost of RMB113,673
Payment of issuance cost of convertible notes (709) (709) -
Net cash (used in) provided by financing activities (853) (126) (18) 4,687,951 (1,273,780) (182,967)
Effect of exchange rate changes 1,439 (5,532) (796) 24,175 (478) (72)
---
Net increase (decrease) in cash, cash equivalents,and restricted 446,074 (258,180) (37,085) (1,994,160) 144,709 20,786
cash
Cash, cash equivalents, and restricted cash at beginning of period 2,021,960 2,870,923 412,382 4,462,194 2,468,034 354,511
---
Cash, cash equivalents, and restricted cash at end of period 2,468,034 2,612,743 375,297 2,468,034 2,612,743 375,297
===
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 December 31, 2018
ended December 31, 2019
ended December 31, 2019
--- ---
GAAP
Amortization
Share-
Tax
Non-GAAP
GAAP
Amortization
Share-
Tax
Non-GAAP
GAAP
Amortization
Share-
Tax
Non-GAAP
of intangible based impacts based impacts of intangible based impacts
assets from compensation
of intangible compensation assets from compensation
business assets from business
acquisitions business acquisitions
acquisitions
(ii)
(ii)
(ii)
RMB
RMB
RMB
RMB
RMB
RMB
RMB
RMB
RMB
RMB
US$
US$
US$
US$
US$
---
Cost of revenues (2,099,265) 18,471 5,498 (2,075,296) (2,351,309) 18,818 7,601 (2,324,890) (337,744) 2,703 1,092 (333,949)
Research and (243,499) 2,345 47,215 (193,939) (292,188) 2,390 45,455 (244,343) (41,970) 343 6,529 (35,098)
development
Sales and marketing (618,268) 17,273 43,707 (557,288) (725,029) 17,598 53,466 (653,965) (104,144) 2,528 7,680 (93,936)
General and (234,700) 101,593 (133,107) (212,603) 60,936 (151,667) (30,539) 8,753 (21,786)
administrative
Cost and operating (3,195,732) 38,089 198,013 (2,959,630) (3,581,129) 38,806 167,458 (3,374,865) (514,397) 5,574 24,054 (484,769)
expenses
Income from 789,604 38,089 198,013 1,025,706 1,249,415 38,806 167,458 1,455,679 179,467 5,574 24,054 209,095
operations
Net income attributable 660,837 38,089 198,013 (9,522) 887,417 1,055,899 38,806 167,458 (9,701) 1,252,462 151,671 5,574 24,054 (1,394) 179,905
to Momo Inc.
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-continued.
Year
Year
Year
ended December 31, 2018
ended December 31, 2019
ended December 31, 2019
--- ---
GAAP
Amortization
Share-
Tax
Non-GAAP
GAAP
Amortization
Share-
Tax
Non-GAAP
GAAP
Amortization
Share-
Tax
Non-GAAP
based impacts of intangible based impacts of intangible based impacts
of intangible compensation assets from compensation assets from compensation
assets from business business
business acquisitions acquisitions
acquisitions
(ii)
(ii)
(ii)
RMB
RMB
RMB
RMB
RMB
RMB
RMB
RMB
RMB
RMB
US$
US$
US$
US$
US$
---
Cost of revenues (7,182,897) 42,336 21,661 (7,118,900) (8,492,096) 73,817 23,972 (8,394,307) (1,219,813) 10,603 3,443 (1,205,767)
Research and (760,644) 5,375 152,806 (602,463) (1,095,031) 9,375 175,053 (910,603) (157,291) 1,347 25,145 (130,799)
development
Sales and marketing (1,812,262) 39,589 (1,629,746) (2,690,824) 69,031 196,311 (2,425,482) (386,513) 9,916 28,198 (348,399)
142,927
General and (640,023) 263,419 (376,604) (1,527,282) 1,012,896 (514,386) (219,380) 145,493 (73,887)
administrative
Cost and operating (10,395,826) 87,300 580,813 (9,727,713) (13,805,233) 152,223 1,408,232 (12,244,778) (1,982,997) 21,866 202,279 (1,758,852)
expenses
Income from 3,266,292 87,300 580,813 3,934,405 3,554,699 152,223 1,408,232 5,115,154 510,602 21,866 202,279 734,747
operations
Net income attributable 2,815,775 87,300 580,813 (21,823) 3,462,065 2,970,890 152,223 1,408,232 (38,056) 4,493,289 426,743 21,866 202,279 (5,466) 645,422
to Momo Inc.
(ii) Includes tax impacts related to the amortization of intangible assets from business acquisition. There is no tax impact
related to share-based compensation.
Momo Inc.
Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Three months
ended December 31, 2019
---
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Net revenues:
Live video service 3,383,477 3,383,477 486,006
Value-added service 819,325 369,789 1,189,114 170,806
Mobile marketing 92,991 92,991 13,357
Mobile games 14,418 14,418 2,071
Other services 7,111 787 7,898 1,134
Total net revenues 4,317,322 369,789 787 4,687,898 673,374
Cost and expenses (iii):
Cost of revenues (2,222,912) (127,748) (649) (2,351,309) (337,744)
Research and development (205,793) (86,395) (292,188) (41,970)
Sales and marketing (379,940) (345,089) (725,029) (104,144)
General and administrative (192,789) (13,275) (6,539) (212,603) (30,539)
Total cost and expenses (3,001,434) (572,507) (7,188) (3,581,129) (514,397)
Other operating income 142,613 33 142,646 20,490
Income (loss) from operations 1,458,501 (202,718) (6,368) 1,249,415 179,467
Interest income 105,947 2,197 61 108,205 15,543
Interest expense (20,190) (20,190) (2,900)
Income (loss) before income tax 1,544,258 (200,521) (6,307) 1,337,430 192,110
and share of income on equity
method investments
Income tax (expenses) benefits (265,981) 12,277 (253,704) (36,442)
Income (loss) before share of 1,278,277 (188,244) (6,307) 1,083,726 155,668
income on equity method
investments
Share of loss on equity method (31,406) (31,406) (4,511)
investments
Net income (loss) 1,246,871 (188,244) (6,307) 1,052,320 151,157
(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
ended December 31, 2019
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Cost of revenues 6,000 1,601 7,601 1,092
Research and development 26,980 18,475 45,455 6,529
Sales and marketing 45,971 7,495 53,466 7,680
General and administrative 56,467 1,384 3,085 60,936 8,753
Total cost and expenses 135,418 28,955 3,085 167,458 24,054
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 December 31, 2019
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Operating income (loss) 1,458,501 (202,718) (6,368) 1,249,415 179,467
Share-based compensation 135,418 28,955 3,085 167,458 24,054
Amortization of intangible assets from - 38,806 38,806 5,574
business acquisitions
Non-GAAP operating income (loss) 1,593,919 (134,957) (3,283) 1,455,679 209,095
Net income (loss) 1,246,871 (188,244) (6,307) 1,052,320 151,157
Share-based compensation 135,418 28,955 3,085 167,458 24,054
Amortization of intangible assets from - 38,806 38,806 5,574
business acquisitions
Tax impacts - (9,701) (9,701) (1,394)
Non-GAAP net income (loss) 1,382,289 (130,184) (3,222) 1,248,883 179,391
Momo Inc.
Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Three months
ended December 31, 2018
---
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$[2]
---
Net revenues:
Live video service 2,959,222 2,959,222 430,401
Value-added service 499,446 222,968 722,414 105,071
Mobile marketing 122,143 122,143 17,765
Mobile games 25,502 25,502 3,709
Other services 2,970 11,665 14,635 2,128
Total net revenues 3,609,283 222,968 11,665 3,843,916 559,074
Cost and expenses (iv):
Cost of revenues (1,960,632) (82,758) (55,875) (2,099,265) (305,325)
Research and development (202,486) (41,013) (243,499) (35,415)
Sales and marketing (363,798) (251,286) (3,184) (618,268) (89,923)
General and administrative (130,062) (67,935) (36,703) (234,700) (34,136)
Total cost and expenses (2,656,978) (442,992) (95,762) (3,195,732) (464,799)
Other operating income 140,269 85 1,066 141,420 20,569
Income (loss) from operations 1,092,574 (219,939) (83,031) 789,604 114,844
Interest income 85,694 4,049 23 89,766 13,056
Interest expense (19,646) (19,646) (2,857)
Impairment loss on long-term investments (43,200) (43,200) (6,283)
Income (loss) before income tax and share 1,115,422 (215,890) (83,008) 816,524 118,760
of income on equity method investments
Income tax (expenses) benefits (188,117) 9,522 (4,743) (183,338) (26,665)
Income (loss) before share of income on 927,305 (206,368) (87,751) 633,186 92,095
equity method investments
Share of income on equity method investments 13,221 13,221 1,923
Net income (loss) 940,526 (206,368) (87,751) 646,407 94,018
(ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
ended December 31, 2018
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Cost of revenues 4,126 1,372 5,498 800
Research and development 24,067 23,148 47,215 6,867
Sales and marketing 37,718 5,989 43,707 6,357
General and administrative 42,271 58,756 566 101,593 14,776
Total cost and expenses 108,182 89,265 566 198,013 28,800
[2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.8755 to US$1.00, the effective noon buying rate for
December 31, 2018 as set forth in the H.10 statistical release of the Federal Reserve Board.
Momo Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Three months
ended December 31, 2018
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Operating income (loss) 1,092,574 (219,939) (83,031) 789,604 114,844
Share-based compensation 108,182 89,265 566 198,013 28,800
Amortization of intangible assets from - 38,089 38,089 5,539
business acquisitions
Non-GAAP operating income (loss) 1,200,756 (92,585) (82,465) 1,025,706 149,183
Net income (loss) 940,526 (206,368) (87,751) 646,407 94,018
Share-based compensation 108,182 89,265 566 198,013 28,800
Amortization of intangible assets from - 38,089 38,089 5,539
business acquisitions
Tax impacts - (9,522) (9,522) (1,385)
Non-GAAP net income (loss) 1,048,708 (88,536) (87,185) 872,987 126,972
Momo Inc.
Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Year
ended December 31, 2019
---
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Net revenues:
Live video service 12,448,131 12,448,131 1,788,062
Value-added service 2,846,057 1,259,906 4,105,963 589,785
Mobile marketing 331,822 331,822 47,663
Mobile games 92,451 92,451 13,280
Other services 22,354 14,368 36,722 5,275
Total net revenues 15,740,815 1,259,906 14,368 17,015,089 2,444,065
Cost and expenses (v):
Cost of revenues (8,065,300) (415,688) (11,108) (8,492,096) (1,219,813)
Research and development (797,471) (297,560) (1,095,031) (157,291)
Sales and marketing (1,521,511) (1,162,912) (6,401) (2,690,824) (386,513)
General and administrative (641,269) (851,099) (34,914) (1,527,282) (219,380)
Total cost and expenses (11,025,551) (2,727,259) (52,423) (13,805,233) (1,982,997)
Other operating income 323,444 21,399 344,843 49,534
Income (loss) from operations 5,038,708 (1,467,353) (16,656) 3,554,699 510,602
Interest income 396,672 10,706 164 407,542 58,540
Interest expense (78,611) (78,611) (11,292)
Impairment loss on long-term (15,711) (15,711) (2,257)
investments
Income (loss) before income tax 5,341,058 (1,456,647) (16,492) 3,867,919 555,593
and share of income on equity
method investments
Income tax (expenses) benefits (917,265) 33,464 (883,801) (126,950)
Income (loss) before share of 4,423,793 (1,423,183) (16,492) 2,984,118 428,643
income on equity method
investments
Share of income on equity method (23,350) (23,350) (3,354)
investments
Net income (loss) 4,400,443 (1,423,183) (16,492) 2,960,768 425,289
(vi) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Year
ended December 31, 2019
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Cost of revenues 20,393 3,579 23,972 3,443
Research and development 103,655 71,398 175,053 25,145
Sales and marketing 175,657 20,654 196,311 28,198
General and administrative 207,053 795,033 10,810 1,012,896 145,493
Total cost and expenses 506,758 890,664 10,810 1,408,232 202,279
Momo 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, 2019
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Operating income (loss) 5,038,708 (1,467,353) (16,656) 3,554,699 510,602
Share-based compensation 506,758 890,664 10,810 1,408,232 202,279
Amortization of intangible assets - 152,223 152,223 21,866
from business acquisitions
Non-GAAP operating income (loss) 5,545,466 (424,466) (5,846) 5,115,154 734,747
Net income (loss) 4,400,443 (1,423,183) (16,492) 2,960,768 425,289
Share-based compensation 506,758 890,664 10,810 1,408,232 202,279
Amortization of intangible assets - 152,223 152,223 21,866
from business acquisitions
Tax impacts - (38,056) (38,056) (5,466)
Non-GAAP net income (loss) 4,907,201 (418,352) (5,682) 4,483,167 643,968
Momo Inc.
Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Year
ended December 31, 2018
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Net revenues:
Live video service 10,709,491 10,709,491 1,557,631
Value-added service 1,465,152 417,998 1,883,150 273,893
Mobile marketing 500,321 500,321 72,769
Mobile games 130,392 130,392 18,965
Other services 7,065 178,002 185,067 26,916
Total net revenues 12,812,421 417,998 178,002 13,408,421 1,950,174
Cost and expenses (vi):
Cost of revenues (6,572,954) (174,858) (435,085) (7,182,897) (1,044,709)
Research and development (614,064) (146,580) (760,644) (110,631)
Sales and marketing (1,269,493) (520,161) (22,608) (1,812,262) (263,583)
General and administrative (472,057) (121,887) (46,079) (640,023) (93,087)
Total cost and expenses (8,928,568) (963,486) (503,772) (10,395,826) (1,512,010)
Other operating income 252,458 173 1,066 253,697 36,899
Income (loss) from operations 4,136,311 (545,315) (324,704) 3,266,292 475,063
Interest income 268,583 4,285 78 272,946 39,698
Interest expense (56,503) (56,503) (8,218)
Impairment loss on long-term investments (43,200) (43,200) (6,283)
Income (loss) before income tax and share 4,305,191 (541,030) (324,626) 3,439,535 500,260
of income on equity method investments
Income tax (expenses) benefits (716,729) 21,824 (4,743) (699,648) (101,760)
Income (loss) before share of income on 3,588,462 (519,206) (329,369) 2,739,887 398,500
equity method investments
Share of income on equity method 48,660 48,660 7,077
investments
Net income (loss) 3,637,122 (519,206) (329,369) 2,788,547 405,577
(vi) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Year
ended December 31, 2018
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Cost of revenues 16,240 5,421 21,661 3,150
Research and development 89,811 62,995 152,806 22,225
Sales and marketing 129,004 13,923 142,927 20,788
General and administrative 163,440 99,413 566 263,419 38,313
Total cost and expenses 398,495 181,752 566 580,813 84,476
Momo Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Year
endedDecember 31, 2018
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Operating income (loss) 4,136,311 (545,315) (324,704) 3,266,292 475,063
Share-based compensation 398,495 181,752 566 580,813 84,476
Amortization of intangible assets - 87,300 87,300 12,698
from business acquisitions
Non-GAAP operating income (loss) 4,534,806 (276,263) (324,138) 3,934,405 572,237
Net income (loss) 3,637,122 (519,206) (329,369) 2,788,547 405,577
Share-based compensation 398,495 181,752 566 580,813 84,476
Amortization of intangible assets - 87,300 87,300 12,698
from business acquisitions
Tax impacts - (21,823) (21,823) (3,174)
Non-GAAP net income (loss) 4,035,617 (271,977) (328,803) 3,434,837 499,577
View original content:http://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-fourth-quarter-and-fiscal-year-2019-301026713.html
SOURCE Momo Inc.
