Momo Announces Unaudited Financial Results for the First Quarter of 2020
BEIJING, May 28, 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 first quarter of 2020.
First Quarter of 2020 Highlights
-- Net revenues decreased by 3.5% year over year to RMB3,594.1 million (US$507.6 million*) in the first quarter of 2020. -- Net income attributable to Momo Inc. increased to RMB538.9 million (US$76.1 million) in the first quarter of 2020 from RMB289.3 million in the same period of 2019. -- Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB736.3 million (US$104.0 million) in the first quarter of 2020, from RMB910.3 million in the same period of 2019. -- Diluted net income per American Depositary Share ("ADS") was RMB2.46 (US$0.35) in the first quarter of 2020, compared to RMB1.36 in the same period of 2019. -- Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47) in the first quarter of 2020, compared to RMB4.15 in the same period of 2019. -- Monthly Active Users ("MAU") on Momo application were 108.0 million in March 2020, compared to 114.4 million in March 2019. -- Total paying users of our live video service and value-added service, without double counting the overlap and including 4.2 million paying users of Tantan Limited ("Tantan"), were 12.8 million for the first quarter of 2020, compared to 14.0 million for the first quarter of 2019, which included 5.0 million paying users of Tantan.
"Q1 2020 was a challenging and yet very fruitful quarter for Momo." commented Yan Tang, Chairman and CEO of Momo. "I am proud that the team has been able to adapt well to the changing environment and navigate through the challenges with solid execution against our strategic goals. Despite the macro headwind, we are seeing plenty of growth opportunities ahead of us. We will continue to pursue these opportunities and drive value for our shareholders."
* 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 RMB7.0808 to US$1.00, the effective noon buying rate for March 31, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board.
First Quarter of 2020 Financial Results
Net revenues
Total net revenues were RMB3,594.1 million (US$507.6 million) in the first quarter of 2020, a decrease of 3.5% from RMB3,722.9 million in the first quarter of 2019.
Live video service revenues were RMB2,332.0 million (US$329.3 million) in the first quarter of 2020, a decrease of 13% from RMB2,689.4 million during the same period of 2019, as a result of the impact of COVID-19 adversely affecting the sentiment of our paying users, especially among the top of the pyramid paying users.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,175.8 million (US$166.0 million) in the first quarter of 2020, an increase of 30% from RMB903.8 million during the same period of 2019. 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 RMB57.2 million (US$8.1 million) in the first quarter of 2020, a decrease of 29% from RMB80.7 million during the same period of 2019. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers as well as our strategy to underweight the line in terms of resource allocation.
Mobile games revenues were RMB12.7 million (US$1.8 million) in the first quarter of 2020, a decrease of 67% from RMB39.0 million in the first quarter of 2019. 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 decreased from RMB3,419.2 million in the first quarter of 2019 to RMB3,202.1 million (US$452.2 million) in the first quarter of 2020, primarily driven by the decrease in net revenues from live video service, partially offset by the increase in net revenues from value-added service. Net revenues from Tantan segment increased from RMB295.3 million in the first quarter of 2019 to RMB381.7 million (US$53.9 million) in the first quarter of 2020, which was mainly due to the increase in the average revenues per paying user resulting from more features launched.
Cost and expenses
Cost and expenses were RMB3,026.1 million (US$427.4 million) in the first quarter of 2020, a decrease of 10% from RMB3,349.4 million in the first quarter of 2019. The decrease was primarily attributable to: (a) a decrease in share-based compensation expenses due to the related expense from the options granted to Tantan's founders amount of RMB466.9 million as the related share options vested in the first quarter of 2019 when the necessary performance conditions were satisfied; (b) a decrease in revenue sharing with broadcasters related to our live video service. The decrease was partially offset by an increase in marketing and promotional expenses to attract users on Momo and Tantan.
Non-GAAP cost and expenses (note 1) were RMB2,819.2 million (US$398.1 million) in the first quarter of 2020, an increase of 4% from RMB2,719.2 million during the same period of 2019.
Income from operations
Income from operations was RMB594.1 million (US$83.9 million) in the first quarter of 2020, compared to RMB384.4 million during the same period of 2019. Income from operations of Momo segment was RMB770.3 million (US$108.8 million) in the first quarter of 2020, decreasing from RMB998.6 million in the first quarter of 2019. Loss from operations of Tantan segment was RMB171.9 million (US$24.3 million) in the first quarter of 2020, compared to loss from operations of RMB604.6 million in the first quarter of 2019.
Non-GAAP income from operations (note 1) was RMB801.0 million (US$113.1 million) in the first quarter of 2020, compared to RMB1,014.7 million during the same period of 2019. Non-GAAP income from operations of Momo segment was RMB903.1 million (US$127.5 million) in the first quarter of 2020, decreasing from RMB1,098.9 million in the first quarter of 2019. Non-GAAP loss from operations of Tantan segment was RMB100.4 million (US$14.2 million) in the first quarter of 2020, compared to non-GAAP loss from operations of RMB77.1 million in the first quarter of 2019.
Income tax expenses
Income tax expenses were RMB162.9 million (US$23.0 million) in the first quarter of 2020, decreasing from RMB163.7 million in the first quarter of 2019.
Net income
Net income was RMB537.7 million (US$75.9 million) in the first quarter of 2020, compared to RMB286.6 million during the same period of 2019. Net income from Momo segment was RMB707.1 million (US$99.9 million) in the first quarter of 2020, decreasing from RMB893.9 million in the first quarter of 2019. Net loss from Tantan segment was RMB165.1 million (US$23.3 million) in the first quarter of 2020, compared to net loss of RMB597.7 million in the first quarter of 2019.
Non-GAAP net income (note 1) was RMB735.1 million (US$103.8 million) in the first quarter of 2020, compared to RMB907.5 million during the same period of 2019. Non-GAAP net income from Momo segment was RMB839.9 million (US$118.6 million) in the first quarter of 2020, decreasing from RMB994.2 million in the first quarter of 2019. Non-GAAP net loss of Tantan segment was RMB103.2 million (US$14.6 million) in the first quarter of 2020, compared to non-GAAP net loss of RMB79.6 million in the first quarter of 2019.
Net income attributable to Momo Inc.
Net income attributable to Momo Inc. was RMB538.9 million (US$76.1 million) in the first quarter of 2020, compared to RMB289.3 million during the same period of 2019.
Non-GAAP net income (note 1) attributable to Momo Inc. was RMB736.3 million (US$104.0 million) in the first quarter of 2020, compared to RMB910.3 million during the same period of 2019.
Net income per ADS
Diluted net income per ADS was RMB2.46 (US$0.35) in the first quarter of 2020, compared to RMB1.36 in the first quarter of 2019.
Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47) in the first quarter of 2020, compared to RMB4.15 in the first quarter of 2019.
Cash and cash flow
As of March 31, 2020, Momo's cash, cash equivalents and short-term deposits totaled RMB15,467.2 million (US$2,184.4 million), compared to RMB14,925.3 million as of December 31, 2019. Net cash provided by operating activities in the first quarter of 2020 was RMB543.5 million (US$76.8 million), compared to RMB1,175.9 million in the first quarter of 2019.
Recent Development
On March 19, 2020, Momo's board of directors declared a special cash dividend in the amount of US$0.76 per ADS, or US$0.38 per ordinary share. The cash dividend was paid in April 2020 to shareholders of record at the close of business on April 8, 2020. The aggregate amount of cash dividends paid was US$158.6 million.
Business Outlook
For the second quarter of 2020, the Company expects total net revenues to be between RMB3.8 billion to RMB3.9 billion, representing a decrease of 8.5% to 6.1% 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, May 28, 2020, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on May 28, 2020).
All participants must preregister online prior to the call to receive the dial-in details. Once preregistration has been complete, participants will receive dial-in numbers, direct event passcode, and a unique registrant ID.
PRE-REGISTER LINK http://apac.directeventreg.com/registration/event/4085667
To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your registrant ID, and you will join the conference instantly.
A telephone replay of the call will be available after the conclusion of the conference call through 9:00 a.m. U.S. Eastern Time, June 5, 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: 4085667
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Momo's website at http://ir.immomo.com.
About Momo
We are a leading player in China's online social and entertainment space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates interactions based on location, interests and a variety of recreational activities including live talent shows, short videos, social games as well as other video- and audio-based interactive experiences, such as live chats and mobile karaoke experience. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application for the younger generation. Tantan 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 second 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 first quarter of 2020 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the second 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 ended March 31 2019 2020 2020 RMB RMB US$ Net revenues: Live video service 2,689,413 2,332,004 329,342 Value-added service 903,849 1,175,754 166,049 Mobile marketing 80,729 57,155 8,072 Mobile games 39,008 12,691 1,792 Other services 9,920 16,480 2,327 --- Total net revenues 3,722,919 3,594,084 507,582 Cost and expenses: Cost of revenues (1,873,574) (1,876,916) (265,071) Research and development (249,431) (262,159) (37,024) Sales and marketing (623,848) (709,808) (100,244) General and administrative (602,596) (177,249) (25,032) --- Total cost and expenses (3,349,449) (3,026,132) (427,371) Other operating income 10,954 26,119 3,689 --- Income from operations 384,424 594,071 83,900 Interest income 93,778 130,823 18,476 Interest expense (18,989) (19,819) (2,799) Impairment loss on long-term investments (4,500) (6,000) (847) --- Income before income tax and share of income on equity method 454,713 699,075 98,730 investments Income tax expenses (163,651) (162,891) (23,005) --- Income before share of income on equity method investments 291,062 536,184 75,725 Share of (loss) income on equity method investments (4,504) 1,527 216 --- Net income 286,558 537,711 75,941 === Less: net loss attributable to non-controlling interest (2,759) (1,195) (169) --- Net income attributable to the shareholders of Momo Inc. 289,317 538,906 76,110 Net income per share attributable to ordinary shareholders Basic 0.70 1.29 0.18 Diluted 0.68 1.23 0.17 Weighted average shares used in calculating net income per ordinary share Basic 413,967,371 417,294,242 417,294,242 Diluted 425,890,818 453,331,322 453,331,322
Momo Inc. Unaudited Condensed Consolidated Statement of Comprehensive Income (All amounts in thousands, except share and per share data) Three months ended March 31 2019 2020 2020 --- RMB RMB US$ Net income 286,558 537,711 75,941 Other comprehensive loss, net of tax Foreign currency translation adjustment (72,981) (867) (122) --- Comprehensive income 213,577 536,844 75,819 Less: comprehensive loss attributed to the non-controlling interest (5,234) (5,569) (786) --- Comprehensive income attributable to Momo Inc. 218,811 542,413 76,605 ===
Momo Inc. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except share and per share data) December 31 March 31 March 31 2019 2020 2020 RMB RMB US$ --- Assets Current assets Cash and cash equivalents 2,612,743 2,799,214 395,325 Short-term deposits 12,312,585 12,668,028 1,789,067 Accounts receivable, net of allowance for doubtful accounts of RMB 12,209 and 265,155 295,513 41,734 RMB11,555 as of December 31, 2019 and March 31, 2020, respectively Amount due from a related party 4,382 2,258 319 Prepaid expenses and other current assets 599,000 598,495 84,523 Total current assets 15,793,865 16,363,508 2,310,968 Long-term deposits 300,000 300,000 42,368 Right-of-use assets, net 190,552 163,926 23,151 Property and equipment, net 346,345 339,560 47,955 Intangible assets 890,303 863,878 122,003 Rental deposits 25,028 25,201 3,559 Long-term investments 495,905 494,545 69,843 Other non-current assets 44,009 55,796 7,880 Deferred tax assets 37,064 35,026 4,947 Goodwill 4,360,610 4,434,769 626,309 Total assets 22,483,681 23,076,209 3,258,983 Liabilities and equity Current liabilities Accounts payable 714,323 635,546 89,755 Deferred revenue 503,461 482,455 68,135 Accrued expenses and other current liabilities 985,873 838,913 118,477 Amount due to related parties 29,606 34,590 4,885 Lease liabilities due within one year 135,169 123,451 17,435 Income tax payable 153,976 174,320 24,619 Dividends payable - 1,123,364 158,649 Deferred consideration in connection with business acquisitions 84,346 85,788 12,116 Total current liabilities 2,606,754 3,498,427 494,071 Deferred tax liabilities 222,576 215,970 30,501 Convertible senior notes 4,954,352 5,043,106 712,223 Share-based compensation liability 902,047 930,603 131,426 Lease liabilities 56,498 42,972 6,069 Other non-current liabilities 22,672 41,522 5,864 Total liabilities 8,764,899 9,772,600 1,380,154 Shareholder's equity (i) 13,718,782 13,303,609 1,878,829 Total liabilities and shareholder's equity 22,483,681 23,076,209 3,258,983 (i): As of March 31, 2020, the number of ordinary shares issued and outstanding was 417,412,368.
Momo Inc. Unaudited Condensed Consolidated Statement of Cash Flows (All amounts in thousands, except share and per share data) Three months ended March 31 2019 2020 2020 RMB RMB US$ Cash flows from operating activities: Net income 286,558 537,711 75,941 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 48,400 52,381 7,398 Amortization of intangible assets 38,595 39,882 5,632 Share-based compensation 593,074 168,527 23,800 Share of loss (income) on equity method investments 4,504 (1,527) (216) Impairment loss on long-term investments 4,500 6,000 847 Gain on subsidiary deconsolidation (6,676) (943) Loss on disposal of property and equipment 4 - Provision of allowance for doubtful accounts (654) (92) Cash received on investment income distribution 1,153 163 Changes in operating assets and liabilities: Accounts receivable 409,414 (37,979) (5,364) Prepaid expenses and other current assets (18,189) 1,162 164 Amount due from related parties 2,123 300 Rental deposits (1,317) (173) (24) Deferred tax assets 25,537 2,038 288 Other non-current assets 31,439 14,840 2,096 Accounts payable 32,515 (80,073) (11,308) Income tax payable (71,558) 20,344 2,873 Deferred revenue 18,842 (21,023) (2,969) Accrued expenses and other current liabilities (185,495) (154,243) (21,783) Amount due to related parties (25,965) 4,984 704 Deferred tax liability (15,542) (9,971) (1,408) Other non-current liabilities 593 4,670 660 Net cash provided by operating activities 1,175,909 543,496 76,759 Cash flows from investing activities: Purchase of property and equipment (52,798) (38,167) (5,390) Proceeds from disposal of property and equipment 5 2 Payment for long-term investments (12,000) (4,500) (636) Cash dividend received 233 33 Cash outflow due to subsidiary deconsolidation (1,026) (145) Purchase of short-term deposits (3,485,005) (3,300,000) (466,049) Cash received on maturity of short-term deposits 3,005,005 2,979,140 420,735 Payment for short-term investments (210,000) (10,000) (1,412) Cash received from sales of short-term investment 100,000 10,000 1,412 Net cash used in investing activities (654,793) (364,318) (51,452) Cash flows from financing activities: Deferred payment for business acquisition (305,067) - Proceeds from exercise of share options 83 - Deferred payment of purchase of property and equipment (94) - Net cash used in financing activities (305,078) - Effect of exchange rate changes (5,730) 7,293 1,028 --- Net increase in cash and cash equivalents 210,308 186,471 26,335 Cash and cash equivalents at the beginning of period 2,468,034 2,612,743 368,990 --- Cash and cash equivalents at the end of period 2,678,342 2,799,214 395,325 ===
1. Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures. Three months Three months Three months ended March 31, 2019 ended March 31, 2020 ended March 31, 2020 --- GAAP Amortization Share- Tax Non-GAAP GAAP Amortization Share- Tax Non-GAAP GAAP Amortization Share- Tax Non-GAAP of intangible based impacts of intangible based impacts of intangible based impacts assets from compensation assets from compensation assets from compensation business (ii) business (ii) business (ii) acquisitions acquisitions acquisitions RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ US$ US$ US$ US$ --- Cost of revenues (1,873,574) 18,021 4,186 (1,851,367) (1,876,916) 18,645 6,969 (1,851,302) (265,071) 2,633 984 (261,454) Research and (249,431) 2,289 39,730 (207,412) (262,159) 2,368 42,760 (217,031) (37,024) 334 6,039 (30,651) development Sales and marketing (623,848) 16,853 39,452 (567,543) (709,808) 17,436 47,074 (645,298) (100,244) 2,462 6,648 (91,134) General and (602,596) 509,706 (92,890) (177,249) 71,724 (105,525) (25,032) 10,129 (14,903) administrative Cost and operating (3,349,449) 37,163 593,074 (2,719,212) (3,026,132) 38,449 168,527 (2,819,156) (427,371) 5,429 23,800 (398,142) expenses Income from operations 384,424 37,163 593,074 1,014,661 594,071 38,449 168,527 801,047 83,900 5,429 23,800 113,129 Net income attributable to 289,317 37,163 593,074 (9,291) 910,263 538,906 38,449 168,527 (9,612) 736,270 76,110 5,429 23,800 (1,357) 103,982 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 Condensed Segment Report (All amounts in thousands, except share and per share data) Three months ended March 31, 2020 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ --- Net revenues: Live video service 2,325,945 6,059 2,332,004 329,342 Value-added service 800,103 375,651 1,175,754 166,049 Mobile marketing 57,155 57,155 8,072 Mobile games 12,691 12,691 1,792 Other services 6,195 10,285 16,480 2,327 Total net revenues 3,202,089 381,710 10,285 3,594,084 507,582 Cost and expenses (iii): Cost of revenues (1,736,517) (132,278) (8,121) (1,876,916) (265,071) Research and development (183,900) (78,259) (262,159) (37,024) Sales and marketing (394,364) (315,421) (23) (709,808) (100,244) General and administrative (143,135) (27,680) (6,434) (177,249) (25,032) Total cost and expenses (2,457,916) (553,638) (14,578) (3,026,132) (427,371) Other operating income 26,119 26,119 3,689 Income (loss) from operations 770,292 (171,928) (4,293) 594,071 83,900 Interest income 129,278 1,472 73 130,823 18,476 Interest expense (19,819) (19,819) (2,799) Impairment loss on long-term investments (6,000) (6,000) (847) Income (loss) before income tax and 873,751 (170,456) (4,220) 699,075 98,730 share of income on equity method investments Income tax (expenses) benefits (168,212) 5,321 (162,891) (23,005) Income (loss) before share of income 705,539 (165,135) (4,220) 536,184 75,725 on equity method investments Share of loss on equity method 1,527 1,527 216 investments Net income (loss) 707,066 (165,135) (4,220) 537,711 75,941 (iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Three months ended March 31, 2020 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ --- Cost of revenues 5,611 1,358 6,969 984 Research and development 26,802 15,958 42,760 6,039 Sales and marketing 45,441 1,633 47,074 6,648 General and administrative 54,984 14,121 2,619 71,724 10,129 Total cost and expenses 132,838 33,070 2,619 168,527 23,800
Momo Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data) Three months ended March 31, 2020 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ --- Operating income (loss) 770,292 (171,928) (4,293) 594,071 83,900 Share-based compensation 132,838 33,070 2,619 168,527 23,800 Amortization of intangible assets from - 38,449 38,449 5,429 business acquisitions Non-GAAP operating income (loss) 903,130 (100,409) (1,674) 801,047 113,129 Net income (loss) 707,066 (165,135) (4,220) 537,711 75,941 Share-based compensation 132,838 33,070 2,619 168,527 23,800 Amortization of intangible assets from - 38,449 38,449 5,429 business acquisitions Tax impacts - (9,612) (9,612) (1,357) Non-GAAP net income (loss) 839,904 (103,228) (1,601) 735,075 103,813
Momo Inc. Unaudited Condensed Segment Report (All amounts in thousands, except share and per share data) Three months ended March 31, 2019 --- Momo Tantan QOOL Total Total RMB RMB RMB RMB US$[2] --- Net revenues: Live video service 2,689,413 2,689,413 400,735 Value-added service 608,502 295,347 903,849 134,678 Mobile marketing 80,729 80,729 12,029 Mobile games 39,008 39,008 5,812 Other services 1,557 8,363 9,920 1,478 Total net revenues 3,419,209 295,347 8,363 3,722,919 554,732 Cost and expenses (iv): Cost of revenues (1,770,038) (98,856) (4,680) (1,873,574) (279,171) Research and development (184,273) (65,158) (249,431) (37,166) Sales and marketing (362,958) (255,921) (4,969) (623,848) (92,956) General and administrative (114,264) (479,965) (8,367) (602,596) (89,790) Total cost and expenses (2,431,533) (899,900) (18,016) (3,349,449) (499,083) Other operating income 10,954 10,954 1,632 Income (loss) from operations 998,630 (604,553) (9,653) 384,424 57,281 Interest income 90,858 2,891 29 93,778 13,973 Interest expense (18,989) (18,989) (2,829) Impairment loss on long-term investments (4,500) (4,500) (671) Income (loss) before income tax and share 1,065,999 (601,662) (9,624) 454,713 67,754 of income on equity method investments Income tax (expenses) benefits (167,603) 3,952 (163,651) (24,385) Income (loss) before share of income on 898,396 (597,710) (9,624) 291,062 43,369 equity method investments Share of income on equity method (4,504) (4,504) (671) investments Net income (loss) 893,892 (597,710) (9,624) 286,558 42,698 (iv) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Three months ended March 31, 2019 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ --- Cost of revenues 3,606 580 4,186 624 Research and development 21,713 18,017 39,730 5,920 Sales and marketing 35,474 3,978 39,452 5,879 General and administrative 39,491 467,684 2,531 509,706 75,949 Total cost and expenses 100,284 490,259 2,531 593,074 88,372 [2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.7112 to US$1.00, the effective noon buying rate for March 29, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.
Momo Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data) Three months ended March 31, 2019 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ --- Operating income (loss) 998,630 (604,553) (9,653) 384,424 57,281 Share-based compensation 100,284 490,259 2,531 593,074 88,372 Amortization of intangible assets from - 37,163 37,163 5,537 business acquisitions Non-GAAP operating income (loss) 1,098,914 (77,131) (7,122) 1,014,661 151,190 Net income (loss) 893,892 (597,710) (9,624) 286,558 42,698 Share-based compensation 100,284 490,259 2,531 593,074 88,372 Amortization of intangible assets from - 37,163 37,163 5,537 business acquisitions Tax impacts - (9,291) (9,291) (1,384) Non-GAAP net income (loss) 994,176 (79,579) (7,093) 907,504 135,223
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SOURCE Momo Inc.