Momo Announces Unaudited Financial Results for the Third Quarter of 2020
BEIJING, Dec. 1, 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 third quarter of 2020.
Third Quarter of 2020 Highlights
-- Net revenues decreased by 15.4% year over year to RMB3,766.7 million
(US$554.8 million*) in the third quarter of 2020.
-- Net income attributable to Momo Inc. decreased to RMB456.7 million
(US$67.3 million) in the third quarter of 2020 from RMB893.9 million in
the same period of 2019.
-- Non-GAAP net income attributable to Momo Inc. (note 1) decreased to
RMB653.8 million (US$96.3 million) in the third quarter of 2020, from
RMB1,088.1 million in the same period of 2019.
-- Diluted net income per American Depositary Share ("ADS") was RMB2.11
(US$0.31) in the third quarter of 2020, compared to RMB4.04 in the same
period of 2019.
-- Non-GAAP diluted net income per ADS (note 1) was RMB2.98 (US$0.44) in
the third quarter of 2020, compared to RMB4.90 in the same period of
2019.
-- Monthly Active Users ("MAU") on Momo application were 113.6 million in
September 2020, compared to 114.1 million in September 2019.
-- Total paying users of our live video service and value-added service,
without double counting the overlap and including 4.1 million paying
users of Tantan Limited ("Tantan"), were 13.1 million for the third
quarter of 2020, compared to 13.4 million for the third quarter of 2019,
which included 4.5 million paying users of Tantan.
First Nine Months of 2020 Highlights
-- Net revenues decreased by 8.9% year over year to RMB11,229.0 million
(US$1,653.9 million) for the first nine months of 2020.
-- Net income attributable to Momo Inc. was RMB1,452.0 million (US$213.9
million) for the first nine months of 2020, compared with RMB1,915.0
million during the same period of 2019.
-- Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,059.8
million (US$303.4 million) for the first nine months of 2020, compared
with RMB3,240.8 million during the same period of 2019.
-- Diluted net income per ADS was RMB6.68 (US$0.98) for the first nine
months of 2020, compared with RMB8.76 during the same period of 2019.
-- Non-GAAP diluted net income per ADS (note 1) was RMB9.36 (US$1.38) for
the first nine months of 2020, compared with RMB14.65 during the same
period of 2019.
"The third quarter of 2020 was a busy quarter for us. As a result of management's commitment and the persistence of our colleagues, the structural reform within the core live broadcasting business has achieved initial success." Commented Li Wang, CEO of Momo. "The critical metrics reflecting the healthiness of the ecosystem have been showing positive signs. As the content ecosystem gradually improved, non-event days' revenue is also seeing strong rebound. Although we have more hard work to do down the path, what we have achieved so far gives us the confidence that our live streaming business has entered into a virtuous cycle supported by a sustainable content ecosystem."
* 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
RMB6.7896 to US$1.00, the effective noon
buying rate for September 30, 2020 as
set forth in the H.10 statistical
release of the Federal Reserve Board.
Third Quarter of 2020 Financial Results
Net revenues
Total net revenues were RMB3,766.7 million (US$554.8 million) in the third quarter of 2020, a decrease of 15.4% from RMB4,451.6 million in the third quarter of 2019.
Live video service revenues were RMB2,374.8 million (US$349.8 million) in the third quarter of 2020, a decrease of 27% from RMB3,275.4 million during the same period of 2019. The decrease was primarily due to our structural reform on Momo's core live video business, which was used to revive the long tail content ecosystem and to a lesser extent, the impact of COVID-19 adversely affecting the sentiment of our paying users, especially among the top of the pyramid paying users. The decrease was partially offset by the growth from Tantan's live video service, and live video service revenues from Tantan were RMB396.7 million (US$58.4 million) in the third quarter of 2020.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,330.8 million (US$196.0 million) in the third quarter of 2020, an increase of 25% from RMB1,064.6 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 innovative products launched and more paying scenarios introduced to enhance the social entertainment experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.
Mobile marketing revenues were RMB50.4 million (US$7.4 million) in the third quarter of 2020, a decrease of 38% from RMB81.9 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 RMB8.0 million (US$1.2 million) in the third quarter of 2020, a decrease of 49% from RMB15.8 million in the third 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 RMB4,138.9 million in the third quarter of 2019 to RMB3,037.0 million (US$447.3 million) in the third quarter of 2020, primarily due to the decrease in net revenues from live video service, partially offset by the increase in net revenues from value-added service. Net revenues from Tantan segment increased from RMB310.0 million in the third quarter of 2019 to RMB728.9 million (US$107.4 million) in the third quarter of 2020, which was mainly due to the increase in net revenues from live video service and to a lesser extent, the increase in net revenues from value-added services.
Cost and expenses
Cost and expenses were RMB3,258.5 million (US$479.9 million) in the third quarter of 2020, a decrease of 6.6% from RMB3,487.9 million in the third quarter of 2019. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to our live video service; (b) a decrease in personnel related costs, professional fees and infrastructure-related spending, such as bandwidth costs and server depreciation costs. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service, and an increase in marketing and promotional expenses to attract users on Tantan.
Non-GAAP cost and expenses (note 1) were RMB3,052.0 million (US$449.5 million) in the third quarter of 2020, a decrease of 7.1% from RMB3,284.0 million during the same period of 2019.
Income from operations
Income from operations was RMB531.1 million (US$78.2 million) in the third quarter of 2020, compared to RMB993.1 million during the same period of 2019. Income from operations of Momo segment was RMB658.7 million (US$97.0 million) in the third quarter of 2020, decreasing from RMB1,227.2 million in the third quarter of 2019. Loss from operations of Tantan segment was RMB121.5 million (US$17.9 million) in the third quarter of 2020, compared to loss from operations of RMB228.7 million in the third quarter of 2019.
Non-GAAP income from operations (note 1) was RMB737.6 million (US$108.6 million) in the third quarter of 2020, compared to RMB1,196.9 million during the same period of 2019. Non-GAAP income from operations of Momo segment was RMB805.8 million (US$118.7 million) in the third quarter of 2020, decreasing from RMB1,364.1 million in the third quarter of 2019. Non-GAAP loss from operations of Tantan segment was RMB64.7 million (US$9.5 million) in the third quarter of 2020, compared to non-GAAP loss from operations of RMB164.4 million in the third quarter of 2019.
Income tax expenses
Income tax expenses were RMB143.6 million (US$21.2 million) in the third quarter of 2020, decreasing from RMB182.6 million in the third quarter of 2019. The decrease in income tax expenses was mainly due to the lower profit in the third quarter of 2020.
Net income
Net income was RMB456.0 million (US$67.2 million) in the third quarter of 2020, compared to RMB890.8 million during the same period of 2019. Net income from Momo segment was RMB576.2 million (US$84.9 million) in the third quarter of 2020, decreasing from RMB1,110.2 million in the third quarter of 2019. Net loss from Tantan segment was RMB114.2 million (US$16.8 million) in the third quarter of 2020, compared to net loss of RMB214.1 million in the third quarter of 2019.
Non-GAAP net income (note 1) was RMB653.1 million (US$96.2 million) in the third quarter of 2020, compared to RMB1,084.9 million during the same period of 2019. Non-GAAP net income from Momo segment was RMB723.4 million (US$106.5 million) in the third quarter of 2020, decreasing from RMB1,247.2 million in the third quarter of 2019. Non-GAAP net loss of Tantan segment was RMB66.9 million (US$9.8 million) in the third quarter of 2020, compared to non-GAAP net loss of RMB159.5 million in the third quarter of 2019.
Net income attributable to Momo Inc.
Net income attributable to Momo Inc. was RMB456.7 million (US$67.3 million) in the third quarter of 2020, compared to RMB893.9 million during the same period of 2019.
Non-GAAP net income (note 1) attributable to Momo Inc. was RMB653.8 million (US$96.3 million) in the third quarter of 2020, compared to RMB1,088.1 million during the same period of 2019.
Net income per ADS
Diluted net income per ADS was RMB2.11 (US$0.31) in the third quarter of 2020, compared to RMB4.04 in the third quarter of 2019.
Non-GAAP diluted net income per ADS (note 1) was RMB2.98 (US$0.44) in the third quarter of 2020, compared to RMB4.90 in the third quarter of 2019.
Cash and cash flow
As of September 30, 2020, Momo's cash, cash equivalents, short-term deposits and long-term deposits totaled RMB15,764.1 million (US$2,321.8 million), compared to RMB15,225.3 million as of December 31, 2019. Net cash provided by operating activities in the third quarter of 2020 was RMB691.1 million (US$101.8 million), compared to RMB1,175.9 million in the third quarter of 2019.
First Nine Months of 2020 Financial Results
Net revenues for the first nine months of 2020 were RMB11,229.0 million (US$1,653.9 million), a decrease of 8.9% from RMB12,327.2 million in the same period of 2019.
Net income attributable to Momo Inc. was RMB1,452.0 million (US$213.9 million) for the first nine months of 2020, compared to RMB1,915.0 million during the same period of 2019.
Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,059.8 million (US$303.4 million) for the first nine months of 2020, compared to RMB3,240.8 million during the same period of 2019.
Diluted net income per ADS was RMB6.68 (US$0.98) during the first nine months of 2020, compared to RMB8.76 in the same period of 2019.
Non-GAAP diluted net income per ADS (note 1) was RMB9.36 (US$1.38) during the first nine months of 2020, compared to RMB14.65 in the same period of 2019.
Net cash provided by operating activities was RMB2,041.8 million (US$300.7 million) during the first nine months of 2020, compared to RMB3,773.8 million in the same period of 2019.
Recent Developments
On September 3, 2020, Momo's board of directors authorized a share repurchase program under which the Company may repurchase up to US$300 million of its shares over the next 12 months. As of November 30, 2020, the Company had repurchased approximately 1.66 million ADSs for approximately US$23.3 million on the open market under this program, at an average purchase price of US$14.03 per ADS.
Mr. Xiaoliang Lei will step down from the Company's Chief Strategy Officer position for personal reasons effective from December 2020, and he will continue to serve as a senior advisor to the Company.
Business Outlook
For the fourth quarter of 2020, the Company expects total net revenues to be between RMB3.65 billion to RMB3.75 billion, representing a decrease of 22.1% to 20.0% 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 Tuesday, December 1, 2020, at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong Time on December 1, 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/1217808
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 8:00 a.m. U.S. Eastern Time, December 9, 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: 1217808
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. Eric Yuan
Phone: +86-10-5900-1548
E-mail: Eyuan@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
Safe Harbor Statement
This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the fourth quarter of 2020, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the third quarter of 2020 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2020 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the impact of the COVID-19 to Momo's business operations and the economy in China, the market price of Momo's stock prevailing from time to time, the nature of other investment opportunities presented to Momo from time to time, Momo's cash flows from operations, general economic conditions, and other factors. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.
All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release
Momo Inc.
Unaudited Condensed Consolidated Statement of
Operations
(All amounts in thousands, except share and per share data)
Three months
First nine months
ended September 30
ended September 30
---
2019 2020 2020 2019 2020 2020
RMB
RMB US$
RMB
RMB
US$
Net revenues:
Live video service 3,275,354 2,374,824 349,774 9,064,654 7,309,704 1,076,603
Value-added service 1,064,606 1,330,839 196,012 2,916,849 3,710,913 546,559
Mobile marketing 81,894 50,415 7,425 238,831 145,534 21,435
Mobile games 15,785 7,975 1,175 78,033 32,230 4,747
Other services 14,003 2,598 382 28,824 30,606 4,507
Total net revenues 4,451,642 3,766,651 554,768 12,327,191 11,228,987 1,653,851
Cost and expenses:
Cost of revenues (2,203,350) (2,020,779) (297,629) (6,140,787) (5,934,000) (873,984)
Research and development (301,754) (299,221) (44,070) (802,843) (840,382) (123,775)
Sales and marketing (771,338) (754,892) (111,184) (1,965,795) (2,116,200) (311,683)
General and administrative (211,423) (183,649) (27,049) (1,314,679) (540,959) (79,675)
Total cost and expenses (3,487,865) (3,258,541) (479,932) (10,224,104) (9,431,541) (1,389,117)
Other operating income 29,342 22,944 3,379 202,197 140,392 20,678
Income from operations 993,119 531,054 78,215 2,305,284 1,937,838 285,412
Interest income 105,384 104,232 15,352 299,337 343,591 50,605
Interest expense (20,117) (19,885) (2,929) (58,421) (59,825) (8,811)
Impairment loss on long-term (11,211) (15,711) (6,000) (884)
investments
Income before income tax 1,067,175 615,401 90,638 2,530,489 2,215,604 326,322
and share of income on
equity method
investments
Income tax expenses (182,578) (143,615) (21,152) (630,097) (750,139) (110,484)
Income before share of 884,597 471,786 69,486 1,900,392 1,465,465 215,838
income on equity method
investments
Share of income (loss) on 6,185 (15,763) (2,322) 8,056 (16,203) (2,386)
equity method investments
Net income 890,782 456,023 67,164 1,908,448 1,449,262 213,452
Less: net loss attributable to (3,115) (705) (104) (6,543) (2,772) (408)
non-controlling interest
Net income attributable to 893,897 456,728 67,268 1,914,991 1,452,034 213,860
the shareholders of
Momo Inc.
Net income per share
attributable to ordinary
shareholders
Basic 2.15 1.09 0.16 4.62 3.48 0.51
Diluted 2.02 1.05 0.16 4.38 3.34 0.49
Weighted average shares
used in calculating net
income per ordinary share
Basic 415,615,139 417,884,266 417,884,266 414,790,186 417,580,609 417,580,609
Diluted 452,571,862 452,724,863 452,724,863 450,470,088 452,854,314 452,854,314
Momo Inc.
Unaudited Condensed Consolidated Statement of
Comprehensive Income
(All amounts in thousands, except share and per share data)
Three months
First nine months
ended September 30
ended September 30
---
2019 2020 2020 2019 2020 2020
RMB
RMB US$
RMB RMB US$
Net income 890,782 456,023 67,164 1,908,448 1,449,262 213,452
Other comprehensive income
(loss), net of tax
Foreign currency translation 62,771 (80,618) (11,874) 30,689 (72,667) (10,703)
adjustment
Comprehensive
income 953,553 375,405 55,290 1,939,137 1,376,595 202,749
Less: comprehensive income 3,519 (9,953) (1,466) 556 (16,945) (2,496)
(loss) attributed to the non-
controlling interest
Comprehensive income 950,034 385,358 56,756 1,938,581 1,393,540 205,245
attributable to Momo Inc.
Momo Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except share and per share data)
December 31
September 30
September 30
2019 2020 2020
RMB
RMB
US$
---
Assets
Current assets
Cash and cash equivalents 2,612,743 3,176,406 467,834
Short-term deposits 12,312,585 7,937,692 1,169,096
Accounts receivable, net of allowance for doubtful accounts of RMB12,209 and 265,155 233,398 34,376
RMB17,621 as of December 31, 2019 and September 30, 2020, respectively
Amount due from a related party 4,382 -
Prepaid expenses and other current assets 599,000 738,502 108,769
Total current assets 15,793,865 12,085,998 1,780,075
Long-term deposits 300,000 4,650,000 684,871
Right-of-use assets, net 190,552 112,012 16,498
Property and equipment, net 346,345 305,420 44,983
Intangible assets 890,303 752,470 110,827
Rental deposits 25,028 24,922 3,671
Long-term investments 495,905 476,815 70,227
Other non-current assets 44,009 94,368 13,899
Deferred tax assets 37,064 34,031 5,012
Goodwill 4,360,610 4,253,297 626,443
Total assets 22,483,681 22,789,333 3,356,506
Liabilities and equity
Current liabilities
Accounts payable 714,323 634,249 93,415
Deferred revenue 503,461 487,234 71,761
Accrued expenses and other current liabilities 985,873 858,038 126,376
Amount due to related parties 29,606 31,868 4,694
Lease liabilities due within one year 135,169 92,500 13,624
Income tax payable 153,976 331,831 48,873
Deferred consideration in connection with business acquisitions 84,346 64,669 9,525
Total current liabilities 2,606,754 2,500,389 368,268
Deferred tax liabilities 222,576 188,118 27,707
Convertible senior notes 4,954,352 4,843,751 713,407
Share-based compensation liability 902,047 910,197 134,057
Lease liabilities 56,498 15,287 2,252
Other non-current liabilities 22,672 34,495 5,081
Total liabilities 8,764,899 8,492,237 1,250,772
Shareholder's equity (i) 13,718,782 14,297,096 2,105,734
Total liabilities and shareholder's equity 22,483,681 22,789,333 3,356,506
(i): As of September 30, 2020, the number of ordinary shares outstanding was 415,801,407.
Momo Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in thousands, except share and per share data)
Three months
First nine months
ended September 30
ended September 30
2019 2020 2020 2019 2020 2020
RMB
RMB
US$
RMB
RMB
US$
Cash flows from operating activities:
Net income 890,782 456,023 67,164 1,908,448 1,449,262 213,452
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation of property and equipment 50,216 49,024 7,220 146,852 153,615 22,625
Amortization of intangible assets 40,100 39,347 5,795 117,715 119,517 17,603
Share-based compensation 165,163 168,475 24,814 1,240,774 521,102 76,751
Share of (income) loss on equity method investments (6,185) 15,763 2,322 (8,056) 16,203 2,386
Impairment loss on long-term investments 11,211 15,711 6,000 884
Gain on subsidiary deconsolidation (6,676) (983)
Gain on disposal of property and equipment (64) (284) (42) (398) (285) (42)
Provision of allowance for doubtful accounts 2,900 26,006 3,830 12,209 26,412 3,890
Cash received on investment income distribution 1,153 170
Changes in operating assets and liabilities:
Accounts receivable (103,290) 15,968 2,352 331,836 17,714 2,609
Prepaid expenses and other current assets (24,378) (207,586) (30,574) (23,182) (163,753) (24,118)
Amount due from a related party (1,335) 2,029 299 (1,606) 4,382 645
Rental deposits 2,033 (83) (12) (362) 107 16
Deferred tax assets (2,803) 561 83 23,304 3,034 447
Other non-current assets (33,254) 9,930 1,463 (20,611) 28,181 4,151
Accounts payable (133,863) (62,189) (9,159) (45,775) (78,664) (11,586)
Income tax payable (16,064) 112,799 16,613 (23,052) 177,855 26,195
Deferred revenue 84,711 17,442 2,569 54,789 (15,830) (2,332)
Accrued expenses and other current liabilities 278,181 52,819 7,779 136,558 (161,411) (23,773)
Amount due to related parties (10,550) 13,495 1,988 (53,267) 2,262 333
Deferred tax liability (10,025) (9,837) (1,449) (35,322) (29,880) (4,401)
Other non-current liabilities (7,556) (8,648) (1,274) (2,762) (28,500) (4,198)
Net cash provided by
operating activities 1,175,930 691,054 101,781 3,773,803 2,041,800 300,724
Cash flows from investing activities:
Purchase of property and equipment (59,933) (24,078) (3,546) (154,413) (108,048) (15,914)
Proceeds from disposal of property and equipment 294 457 67 804 474 70
Payment for long-term investments (19,000) (43,000) (4,500) (663)
Prepayment of long-term investments (15,000)
Cash dividend received 233 34
Cash outflow due to subsidiary deconsolidation (1,026) (151)
Purchase of short-term deposits (4,786,130) (3,053,307) (449,704) (14,501,135) (11,295,165) (1,663,598)
Cash received on maturity of short-term deposits 4,785,400 4,337,085 638,784 12,650,430 15,622,659 2,300,969
Payment for short-term investments (30,000) (280,000) (10,000) (1,473)
Cash received from sales of short-term investment 80,000 240,000 10,000 1,473
Purchase of long-term deposits (1,550,000) (228,290) (4,350,000) (640,686)
Net cash used in investing activities (29,369) (289,843) (42,689) (2,102,314) (135,373) (19,939)
Cash flows from financing activities:
Deferred payment for business acquisition (759) (379,507) (18,355) (2,703)
Proceeds from exercise of share options 71 54 8 186 55 8
Deferred payment of purchase of property and (16,893) (16,987)
equipment
Repurchase of ordinary shares (132,407) (19,501) (132,407) (19,501)
Repurchase of subsidiary's share options (24,900) (3,667) (24,900) (3,667)
Dividends payment (877,346) (1,123,983) (165,545)
Net cash used in financing activities (17,581) (157,253) (23,160) (1,273,654) (1,299,590) (191,408)
Effect of exchange rate changes 6,200 (45,135) (6,649) 5,054 (43,174) (6,358)
Net increase in cash and cash equivalents 1,135,180 198,823 29,283 402,889 563,663 83,019
Cash and cash equivalents at the beginning of period 1,735,743 2,977,583 438,551 2,468,034 2,612,743 384,815
Cash and cash equivalents at the end of period 2,870,923 3,176,406 467,834 2,870,923 3,176,406 467,834
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 September 30, 2019
ended September 30, 2020
ended September 30, 2020
---
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 RMB
RMB assets from compensation RMB
US$ assets from compensation US$
business
(ii) business
RMB
(ii) business
(ii)
GAAP acquisitions
RMB
RMB acquisitions acquisitions
US$
RMB RMB
RMB
US$
RMB US$
Cost of revenues (2,203,350) 18,751 6,738 (2,177,861) (2,020,779) 18,472 4,434 (1,997,873) (297,629) 2,721 653 (294,255)
Research and development (301,754) 2,381 45,345 (254,028) (299,221) 2,346 44,610 (252,265) (44,070) 346 6,570 (37,154)
Sales and marketing (771,338) 17,535 52,100 (701,703) (754,892) 17,275 41,583 (696,034) (111,184) 2,544 6,125 (102,515)
General and (211,423) - 60,980 (150,443) (183,649) 77,848 (105,801) (27,049) 11,466 (15,583)
administrative
Cost and operating (3,487,865) 38,667 165,163 (3,284,035) (3,258,541) 38,093 168,475 (3,051,973) (479,932) 5,611 24,814 (449,507)
expenses
Income from operations 993,119 38,667 165,163 1,196,949 531,054 38,093 168,475 737,622 78,215 5,611 24,814 108,640
Net income attributable to 893,897 38,667 165,163 (9,667) 1,088,060 456,728 38,093 168,475 (9,523) 653,773 67,268 5,611 24,814 (1,403) 96,290
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.
First nine months
First nine months
First nine months
ended September 30, 2019
ended September 30, 2020
ended September 30, 2020
---
Amortization of intangible assets Amortization of intangible Amortization
from business acquisitions RMB assets from business of
acquisitions RMB intangible
assets from
business
Share-
Tax impacts Non-GAAP
GAAP
Share-
Tax impacts Non-GAAP
GAAP acquisitions Share-
Tax impacts Non-GAAP
based compensation based compensation based
compensation
(ii) RMB
RMB
(ii) RMB
US$ US$
(ii) US$
RMB
RMB
US$
GAAP
RMB
RMB
US$
RMB
Cost of revenues (6,140,787) 54,999 16,371 (6,069,417) (5,934,000) 56,046 14,207 (5,863,747) (873,984) 8,255 2,092 (863,637)
Research and development (802,843) 6,985 129,598 (666,260) (840,382) 7,118 137,355 (695,909) (123,775) 1,048 20,231 (102,496)
Sales and marketing (1,965,795) 51,433 142,845 (1,771,517) (2,116,200) 52,413 131,780 (1,932,007) (311,683) 7,720 19,409 (284,554)
General and (1,314,679) - 951,960 (362,719) (540,959) 237,760 (303,199) (79,675) 35,019 (44,656)
administrative
Cost and operating (10,224,104) 113,417 1,240,774 (8,869,913) (9,431,541) 115,577 521,102 (8,794,862) (1,389,117) 17,023 76,751 (1,295,343)
expenses
Income from operations 2,305,284 113,417 1,240,774 3,659,475 1,937,838 115,577 521,102 2,574,517 285,412 17,023 76,751 379,186
Net income 1,914,991 113,417 1,240,774 (28,355) 3,240,827 1,452,034 115,577 521,102 (28,894) 2,059,819 213,860 17,023 76,751 (4,255) 303,379
attributable 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 Condensed Segment Report
(All amounts in thousands, except share and per share data)
Three months
ended September 30, 2020
---
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Net revenues:
Live video service 1,978,098 396,726 2,374,824 349,774
Value-added service 998,668 332,171 1,330,839 196,012
Mobile marketing 50,415 50,415 7,425
Mobile games 7,975 7,975 1,175
Other services 1,810 788 2,598 382
Total net revenues 3,036,966 728,897 788 3,766,651 554,768
Cost and expenses (iii):
Cost of revenues (1,660,806) (358,743) (1,230) (2,020,779) (297,629)
Research and development (214,597) (84,624) (299,221) (44,070)
Sales and marketing (361,448) (393,437) (7) (754,892) (111,184)
General and administrative (164,331) (13,620) (5,698) (183,649) (27,049)
Total cost and expenses (2,401,182) (850,424) (6,935) (3,258,541) (479,932)
Other operating income 22,893 51 22,944 3,379
Income (loss) from operations 658,677 (121,527) (6,096) 531,054 78,215
Interest income 103,477 706 49 104,232 15,352
Interest expense (19,885) (19,885) (2,929)
Income (loss) before income tax and share of 742,269 (120,821) (6,047) 615,401 90,638
income on equity method investments
Income tax (expenses) benefits (150,278) 6,663 (143,615) (21,152)
Income (loss) before share of income on 591,991 (114,158) (6,047) 471,786 69,486
equity method investments
Share of loss on equity method investments (15,763) (15,763) (2,322)
Net income (loss) 576,228 (114,158) (6,047) 456,023 67,164
(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
ended September 30, 2020
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Cost of revenues 3,338 1,096 4,434 653
Research and development 32,296 12,314 44,610 6,570
Sales and marketing 37,110 4,473 41,583 6,125
General and administrative 74,416 837 2,595 77,848 11,466
Total cost and expenses 147,160 18,720 2,595 168,475 24,814
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 September 30, 2020
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Operating income
(loss) 658,677 (121,527) (6,096) 531,054 78,215
Share-based
compensation 147,160 18,720 2,595 168,475 24,814
Amortization of
intangible assets
from - 38,093 38,093 5,611
business acquisitions
Non-GAAP operating
income (loss) 805,837 (64,714) (3,501) 737,622 108,640
Net income (loss) 576,228 (114,158) (6,047) 456,023 67,164
Share-based
compensation 147,160 18,720 2,595 168,475 24,814
Amortization of
intangible assets
from - 38,093 38,093 5,611
business acquisitions
Tax impacts - (9,523) (9,523) (1,403)
Non-GAAP net income
(loss) 723,388 (66,868) (3,452) 653,068 96,186
Momo Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Three months
ended September 30, 2019
---
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB US$[1]
---
Net revenues:
Live video service 3,275,354 3,275,354 458,239
Value-added service 754,629 309,977 1,064,606 148,944
Mobile marketing 81,894 81,894 11,457
Mobile games 15,785 15,785 2,208
Other services 11,234 2,769 14,003 1,960
Total net revenues 4,138,896 309,977 2,769 4,451,642 622,808
Cost and expenses (iv):
Cost of revenues (2,101,678) (99,722) (1,950) (2,203,350) (308,260)
Research and
development (225,539) (76,215) (301,754) (42,217)
Sales and marketing (422,034) (349,274) (30) (771,338) (107,914)
General and
administrative (191,832) (13,425) (6,166) (211,423) (29,579)
Total cost and
expenses (2,941,083) (538,636) (8,146) (3,487,865) (487,970)
Other operating
income 29,342 29,342 4,105
Income (loss) from
operations 1,227,155 (228,659) (5,377) 993,119 138,943
Interest income 102,749 2,594 41 105,384 14,744
Interest expense (20,117) (20,117) (2,814)
Impairment loss on
long-term
investments (11,211) (11,211) (1,568)
Income (loss) before
income tax and 1,298,576 (226,065) (5,336) 1,067,175 149,305
share of income on equity method
investments
Income tax
(expenses) benefits (194,580) 12,002 (182,578) (25,544)
Income (loss) before
share of income 1,103,996 (214,063) (5,336) 884,597 123,761
on equity method investments
Share of income on
equity method 6,185 6,185 865
investments
Net income (loss) 1,110,181 (214,063) (5,336) 890,782 124,626
(iv) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
ended September 30, 2019
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Cost of revenues 5,917 821 6,738 943
Research and
development 27,375 17,970 45,345 6,344
Sales and marketing 46,831 5,269 52,100 7,289
General and
administrative 56,860 1,486 2,634 60,980 8,531
Total cost and
expenses 136,983 25,546 2,634 165,163 23,107
[1] All translations from RMB to U.S. dollars are made at a rate of RMB 7.1477 to US$1.00, the effective noon buying rate for September 30, 2019 as set forth in the H.10 statistical release
of the Federal Reserve Board.
Momo Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
Three months
ended September 30, 2019
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Operating income (loss) 1,227,155 (228,659) (5,377) 993,119 138,943
Share-based compensation 136,983 25,546 2,634 165,163 23,107
Amortization of intangible assets from - 38,667 38,667 5,409
business acquisitions
Non-GAAP operating income (loss) 1,364,138 (164,446) (2,743) 1,196,949 167,459
Net income (loss) 1,110,181 (214,063) (5,336) 890,782 124,626
Share-based compensation 136,983 25,546 2,634 165,163 23,107
Amortization of intangible assets from - 38,667 38,667 5,409
business acquisitions
Tax impacts - (9,667) (9,667) (1,352)
Non-GAAP net income (loss) 1,247,164 (159,517) (2,702) 1,084,945 151,790
Momo Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
First nine months
ended September 30, 2020
---
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Net revenues:
Live video service 6,715,266 594,438 7,309,704 1,076,603
Value-added service 2,677,575 1,033,338 3,710,913 546,559
Mobile marketing 145,534 145,534 21,435
Mobile games 32,230 32,230 4,747
Other services 9,168 21,438 30,606 4,507
Total net revenues 9,579,773 1,627,776 21,438 11,228,987 1,653,851
Cost and expenses (v):
Cost of revenues (5,189,765) (723,466) (20,769) (5,934,000) (873,984)
Research and development (601,271) (239,111) (840,382) (123,775)
Sales and marketing (1,093,008) (1,023,151) (41) (2,116,200) (311,683)
General and administrative (461,627) (61,128) (18,204) (540,959) (79,675)
Total cost and expenses (7,345,671) (2,046,856) (39,014) (9,431,541) (1,389,117)
Other operating income 140,202 190 140,392 20,678
Income (loss) from operations 2,374,304 (419,080) (17,386) 1,937,838 285,412
Interest income 340,531 2,867 193 343,591 50,605
Interest expense (59,825) (59,825) (8,811)
Impairment loss on long-term investments (6,000) (6,000) (884)
Income (loss) before income tax and share of 2,649,010 (416,213) (17,193) 2,215,604 326,322
income on equity method
investments
Income tax (expenses) benefits (762,768) 12,629 (750,139) (110,484)
Income (loss) before share of income on equity method 1,886,242 (403,584) (17,193) 1,465,465 215,838
investments
Share of loss on equity method investments (16,203) (16,203) (2,386)
Net income (loss) 1,870,039 (403,584) (17,193) 1,449,262 213,452
(v) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
First nine months
ended September 30, 2020
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Cost of revenues 12,345 1,862 14,207 2,092
Research and development 95,768 41,587 137,355 20,231
Sales and marketing 121,456 10,324 131,780 19,409
General and administrative 207,650 22,238 7,872 237,760 35,019
Total cost and expenses 437,219 76,011 7,872 521,102 76,751
Momo Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
First nine months
ended September 30, 2020
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Operating income
(loss) 2,374,304 (419,080) (17,386) 1,937,838 285,412
Share-based
compensation 437,219 76,011 7,872 521,102 76,751
Amortization of
intangible assets - 115,577 115,577 17,023
from business acquisitions
Non-GAAP operating
income (loss) 2,811,523 (227,492) (9,514) 2,574,517 379,186
Net income (loss) 1,870,039 (403,584) (17,193) 1,449,262 213,452
Share-based
compensation 437,219 76,011 7,872 521,102 76,751
Amortization of
intangible assets - 115,577 115,577 17,023
from business acquisitions
Tax impacts - (28,894) (28,894) (4,255)
Non-GAAP net income
(loss) 2,307,258 (240,890) (9,321) 2,057,047 302,971
Momo Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
First nine months
ended September 30, 2019
---
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Net revenues:
Live video service 9,064,654 9,064,654 1,268,192
Value-added service 2,026,732 890,117 2,916,849 408,082
Mobile marketing 238,831 238,831 33,414
Mobile games 78,033 78,033 10,917
Other services 15,243 13,581 28,824 4,032
Total net revenues 11,423,493 890,117 13,581 12,327,191 1,724,637
Cost and expenses (vi):
Cost of revenues (5,842,388) (287,940) (10,459) (6,140,787) (859,128)
Research and development (591,678) (211,165) (802,843) (112,322)
Sales and marketing (1,141,571) (817,823) (6,401) (1,965,795) (275,025)
General and administrative (448,480) (837,824) (28,375) (1,314,679) (183,930)
Total cost and expenses (8,024,117) (2,154,752) (45,235) (10,224,104) (1,430,405)
Other operating income 180,831 21,366 202,197 28,288
Income (loss) from operations 3,580,207 (1,264,635) (10,288) 2,305,284 322,520
Interest income 290,725 8,509 103 299,337 41,879
Interest expense (58,421) (58,421) (8,173)
Impairment loss on long-term investments (15,711) (15,711) (2,198)
Income (loss) before income tax 3,796,800 (1,256,126) (10,185) 2,530,489 354,028
and share of income on equity
method investments
Income tax (expenses) benefits (651,284) 21,187 (630,097) (88,154)
Income (loss) before share of 3,145,516 (1,234,939) (10,185) 1,900,392 265,874
income on equity method
investments
Share of income on equity method 8,056 8,056 1,127
investments
Net income (loss) 3,153,572 (1,234,939) (10,185) 1,908,448 267,001
(vi) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
First nine months
ended September 30, 2019
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Cost of revenues 14,393 1,978 16,371 2,290
Research and development 76,675 52,923 129,598 18,131
Sales and marketing 129,686 13,159 142,845 19,985
General and administrative 150,586 793,649 7,725 951,960 133,184
Total cost and expenses 371,340 861,709 7,725 1,240,774 173,590
Momo Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
First nine months
ended September 30, 2019
Momo
Tantan
QOOL
Total
Total
RMB
RMB
RMB
RMB
US$
---
Operating income
(loss) 3,580,207 (1,264,635) (10,288) 2,305,284 322,520
Share-based
compensation 371,340 861,709 7,725 1,240,774 173,590
Amortization of
intangible assets - 113,417 113,417 15,869
from business acquisitions
Non-GAAP operating
income (loss) 3,951,547 (289,509) (2,563) 3,659,475 511,979
Net income (loss) 3,153,572 (1,234,939) (10,185) 1,908,448 267,001
Share-based
compensation 371,340 861,709 7,725 1,240,774 173,590
Amortization of
intangible assets - 113,417 113,417 15,869
from business acquisitions
Tax impacts - (28,355) (28,355) (3,967)
Non-GAAP net income
(loss) 3,524,912 (288,168) (2,460) 3,234,284 452,493
View original content:http://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-third-quarter-of-2020-301182266.html
SOURCE Momo Inc.
