Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2024
BEIJING, Dec. 9, 2024 /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading player in mainland China's online social networking space, today announced its unaudited financial results for the third quarter of 2024.
Third Quarter of 2024 Highlights
-- Net revenues decreased by 12.1% year over year to RMB2,674.7 million
(US$381.1 million*) in the third quarter of 2024.
-- Net income attributable to Hello Group Inc. decreased to RMB449.4
million (US$64.0 million) in the third quarter of 2024, from RMB546.4
million in the same period of 2023.
-- Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased
to RMB493.3 million (US$70.3 million) in the third quarter of 2024, from
RMB605.9 million in the same period of 2023.
-- Diluted net income per American Depositary Share ("ADS") was RMB2.46
(US$0.35) in the third quarter of 2024, compared to RMB2.75 in the same
period of 2023.
-- Non-GAAP diluted net income per ADS (note 1) was RMB2.70 (US$0.38) in
the third quarter of 2024, compared to RMB3.05 in the same period of
2023.
-- Monthly Active Users ("MAU") on Tantan app were 12.0 million in
September 2024, compared to 15.7 million in September 2023.
-- For the Momo app total paying users was 6.9 million for the third
quarter of 2024, compared to 7.8 million for the same period last year.
Tantan had 0.9 million paying users for the third quarter of 2024
compared to 1.4 million from the year ago period.
First Nine Months of 2024 Highlights
-- Net revenues decreased by 11.9% year over year to RMB7,926.5 million
(US$1,129.5 million) for the first nine months of 2024.
-- Net income attributable to Hello Group Inc. was RMB852.3 million
(US$121.5 million) for the first nine months of 2024, compared to
RMB1,505.1 million during the same period of 2023.
-- Non-GAAP net income attributable to Hello Group Inc. (note 1) was
RMB1,002.4 million (US$142.8 million) for the first nine months of 2024,
compared to RMB1,710.0 million during the same period of 2023.
-- Diluted net income per ADS was RMB4.51(US$0.64) for the first nine
months of 2024, compared to RMB7.52 during the same period of 2023.
-- Non-GAAP diluted net income per ADS (note 1) was RMB5.31(US$0.76) for
the first nine months of 2024, compared to RMB8.53 during the same
period of 2023.
"Q3 2024 was a fruitful quarter for us. We delivered satisfactory financial results and executed well against our strategic priorities across all business lines," commented Yan Tang, Chairman and CEO of Hello Group. " Our overseas business reaccelerated growth thanks to improved operational efficiency. Our team made good progress in advancing the localization process and expanding our product offering. This gives us more confidence to continue to invest firmly in more diversified overseas markets."
* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB7.0176 to US$1.00, the effective noon buying rate for September 30, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.
Third Quarter of 2024 Financial Results
Net revenues
Total net revenues were RMB2,674.7 million (US$381.1 million) in the third quarter of 2024, a decrease of 12.1% from RMB3,042.8 million in the third quarter of 2023.
Live video service revenues were RMB1,286.4 million (US$183.3 million) in the third quarter of 2024, a decrease of 16.0% from RMB1,530.8 million during the same period of 2023. The decrease was primarily attributable to our proactive operational adjustments to de-emphasize large scale competition events in the Momo app and a soft consumer sentiment in the current macro environment, and to a lesser degree, Tantan pivoting away from the less dating-centric live video service.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,356.3 million (US$193.3 million) in the third quarter of 2024, a decrease of 7.5% from RMB1,466.7 million during the same period of 2023. The decrease was primarily due to our product adjustments to improve Momo app's ecosystem as well as the impact of the macro economy on consumer sentiment, and to a lesser extent, the decline in Tantan's paying users which was in turn due to the decline in user base and the short-term impact of the product upgrade on new user paying conversions. The decrease was partially offset by the revenue growth from the new standalone apps.
Mobile marketing revenues were RMB30.7 million (US$4.4 million) in the third quarter of 2024, compared to RMB30.7 million during the same period of 2023.
Net revenues from the Momo segment decreased from RMB2,743.1 million in the third quarter of 2023 to RMB2,462.3 million (US$350.9 million) in the third quarter of 2024, primarily due to the decrease in net revenues from value-added service and live video service on Momo app. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB295.0 million in the third quarter of 2023 to RMB212.1 million (US$30.2 million) in the third quarter of 2024, mainly due to the decrease in net revenues from live video service and value-added service.
Cost and expenses
Cost and expenses were RMB2,286.2 million (US$325.8 million) in the third quarter of 2024, a decrease of 7.1% from RMB2,461.1 million in the third quarter of 2023. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service on Momo app and Tantan app, and a decrease in revenue sharing with virtual gift recipients of virtual gift service on Momo app. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; and (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value.
Non-GAAP cost and expenses (note 1) were RMB2,242.2 million (US$319.5 million) in the third quarter of 2024, a decrease of 6.6% from RMB2,401.6 million during the same period of 2023.
Income from operations
Income from operations was RMB410.7 million (US$58.5 million) in the third quarter of 2024, compared to RMB621.8 million during the same period of 2023. Income from operations of the Momo segment was RMB397.5 million (US$56.7 million) in the third quarter of 2024, which decreased from RMB618.6 million in the third quarter of 2023. Income from operations of the Tantan segment was RMB14.7 million (US$2.1 million) in the third quarter of 2024, which decreased from RMB24.0 million in the third quarter of 2023.
Non-GAAP income from operations (note 1) was RMB454.7 million (US$64.8 million) in the third quarter of 2024, compared to RMB681.2 million during the same period of 2023. Non-GAAP income from operations of the Momo segment was RMB441.0 million (US$62.8 million) in the third quarter of 2024, which decreased from RMB674.5 million in the third quarter of 2023. Non-GAAP income from operations of the Tantan segment was RMB15.2 million (US$2.2 million) in the third quarter of 2024, compared to RMB27.6 million in the third quarter of 2023.
Income tax expenses
Income tax expenses were RMB95.3 million (US$13.6 million) in the third quarter of 2024, compared to RMB158.1 million in the third quarter of 2023. The decrease in income tax expenses was primarily due to the lower profit in the third quarter of 2024, and to a lesser extent, lower withholding tax rate due to our eligibility for a preferential tax rate since the beginning of the year.
Net income
Net income was RMB449.4 million (US$64.0 million) in the third quarter of 2024, compared to RMB542.2 million during the same period of 2023. Net income from the Momo segment was RMB436.4 million (US$62.2 million) in the third quarter of 2024, compared to RMB540.0 million in the same period of 2023. Net income from the Tantan segment was RMB14.4 million (US$2.1 million) in the third quarter of 2024, compared to RMB23.0 million in the third quarter of 2023.
Non-GAAP net income (note 1) was RMB493.3 million (US$70.3 million) in the third quarter of 2024, compared to RMB601.6 million during the same period of 2023. Non-GAAP net income from the Momo segment was RMB479.9 million (US$68.4 million) in the third quarter of 2024, which decreased from RMB595.9 million in the third quarter of 2023. Non-GAAP net income of the Tantan segment was RMB14.9 million (US$2.1 million) in the third quarter of 2024, compared to RMB26.6 million in the third quarter of 2023.
Net income attributable to Hello Group Inc.
Net income attributable to Hello Group Inc. was RMB449.4 million (US$64.0 million) in the third quarter of 2024, compared to RMB546.4 million during the same period of 2023.
Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB493.3 million (US$70.3 million) in the third quarter of 2024, compared to RMB605.9 million during the same period of 2023.
Net income per ADS
Diluted net income per ADS was RMB2.46 (US$0.35) in the third quarter of 2024, compared to RMB2.75 in the third quarter of 2023.
Non-GAAP diluted net income per ADS (note 1) was RMB2.70 (US$0.38) in the third quarter of 2024, compared to RMB3.05 in the third quarter of 2023.
Cash and cash flow
As of September 30, 2024, the Company's cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB14,782.2 million (US$2,106.4 million), compared to RMB13,478.5 million as of December 31, 2023.
Net cash provided by operating activities in the third quarter of 2024 was RMB341.0 million (US$48.6 million), compared to RMB582.5 million in the third quarter of 2023.
First Nine Months of 2024 Financial Results
Net revenues for the first nine months of 2024 were RMB7,926.5 million (US$1,129.5 million), a decrease of 11.9% from RMB8,999.4 million in the same period of 2023.
Net income attributable to Hello Group Inc. was RMB852.3 million (US$121.5 million) for the first nine months of 2024, compared to RMB1,505.1 million during the same period of 2023.
Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,002.4 million (US$142.8 million) for the first nine months of 2024, compared to RMB1,710.0 million during the same period of 2023.
Diluted net income per ADS was RMB4.51 (US$0.64) during the first nine months of 2024, compared to RMB7.52 in the same period of 2023.
Non-GAAP diluted net income per ADS (note 1) was RMB5.31 (US$0.76) during the first nine months of 2024, compared to RMB8.53 in the same period of 2023.
Net cash provided by operating activities was RMB1,216.4 million (US$173.3 million) during the first nine months of 2024, compared to RMB1,861.3 million in the same period of 2023.
Recent Development
Share repurchase program
On June 7, 2022, Hello Group's board of directors authorized a share repurchase program under which the Company may repurchase up to US$200 million of its shares up to June 6, 2024 (the "Share Repurchase Program"). On March 14, 2024, Hello Group's board of directors approved to amend the Share Repurchase Program to (i) extend the term of the Share Repurchase Program up to June 30, 2026, and (ii) upsize the Share Repurchase Program so that the Company is authorized to, from time to time, acquire up to an aggregate of US$286.1 million worth of its shares in the form of ADSs and/or the ordinary shares of the Company in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations.
As of December 9, 2024, the Company has repurchased 40.0 million ADSs for US$238.4 million on the open market under Share Repurchase Program announced on June 7, 2022 and amended on March 14, 2024, at an average purchase price of US$5.94 per ADS.
Business Outlook
For the fourth quarter of 2024, the Company expects total net revenues to be between RMB2.56 billion to RMB2.66 billion, representing a decrease of 14.7% to 11.4% year over year. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and such adjustment has no impact on income tax.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP cost and operating expenses, income (loss) from operations, net income (loss), net income attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation and such adjustment has no impact on income tax. A limitation of using these non-GAAP financial measures is that share-based compensation has been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.
Conference Call
Hello Group's management will host an earnings conference call on Monday, December 9, 2024, at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on December 9, 2024).
Participants can register for the conference call by navigating to:
https://s1.c-conf.com/diamondpass/10043397-w4b3f5.html.
Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.
A telephone replay of the call will be available after the conclusion of the conference call through December 16, 2024. The dial-in details for the replay are as follows:
U.S. / Canada: 1-855-883-1031
Hong Kong: 800-930-639
Passcode: 10043397
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Hello Group's website at https://ir.hellogroup.com.
About Hello Group Inc.
We are a leading player in mainland China's online social networking space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. Starting from 2019, we have incubated a number of other new apps, such as Hertz, Soulchill, and Duidui, which target more niche markets and more selective demographics.
For investor and media inquiries, please contact:
Hello Group Inc.
Investor Relations
Phone: +86-10-5731-0538
Email: ir@hellogroup.com
Christensen
In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: Xiaoyan.Su@christensencomms.com
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
Safe Harbor Statement
This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the fourth quarter of 2024, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the third quarter of 2024 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2024 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, general economic conditions, and other factors. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.
All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.
Hello Group Inc.
Unaudited Condensed Consolidated Statement of
Operations
(All amounts in thousands, except share and per share data)
Three months
First nine months
Ended September 30
Ended September 30
2023 2024 2024 2023 2024 2024
RMB RMB US$ RMB RMB US$
Net revenues:
Live video service 1,530,797 1,286,442 183,317 4,548,986 3,828,003 545,486
Value-added service 1,466,727 1,356,270 193,267 4,327,678 3,995,962 569,420
Mobile marketing 30,705 30,735 4,380 88,762 99,320 14,153
Mobile games 7,864 14,169 432 62
Other services 6,754 1,217 173 19,796 2,758 393
Total net revenues 3,042,847 2,674,664 381,137 8,999,391 7,926,475 1,129,514
Cost and expenses:
Cost of revenues (1,771,530) (1,623,723) (231,379) (5,255,277) (4,722,520) (672,954)
Research and development (201,693) (196,382) (27,984) (653,145) (581,741) (82,897)
Sales and marketing (373,942) (354,881) (50,570) (1,110,253) (1,013,081) (144,363)
General and administrative (113,896) (111,174) (15,842) (376,981) (364,037) (51,875)
Total cost and expenses (2,461,061) (2,286,160) (325,775) (7,395,656) (6,681,379) (952,089)
Other operating income, net 39,971 22,221 3,166 99,284 50,988 7,266
Income from operations 621,757 410,725 58,528 1,703,019 1,296,084 184,691
Interest income 96,791 134,875 19,220 311,899 386,919 55,136
Interest expense (19,293) (34,809) (4,960) (41,671) (91,000) (12,967)
Other gain or loss, net - 4,565 (43,870) (6,251)
Income before income tax and share of income (loss) on equity 699,255 510,791 72,788 1,977,812 1,548,133 220,609
method investments
Income tax expenses (158,064) (95,298) (13,580) (446,646) (755,525) (107,661)
Income before share of income (loss)on equity method 541,191 415,493 59,208 1,531,166 792,608 112,948
investments
Share of income (loss) on equity method investments 974 33,876 4,827 (31,940) 59,730 8,511
Net income 542,165 449,369 64,035 1,499,226 852,338 121,459
Less: net loss attributable to non-controlling interest (4,263) (5,886)
Net income attributable to the shareholders of Hello Group Inc. 546,428 449,369 64,035 1,505,112 852,338 121,459
Net income per share attributable to ordinary shareholders
Basic 1.44 1.29 0.18 3.98 2.36 0.34
Diluted 1.37 1.23 0.18 3.76 2.26 0.32
Weighted average shares used in calculating net income per ordinary
share
Basic 379,292,110 347,943,851 347,943,851 378,085,030 361,613,017 361,613,017
Diluted 398,296,690 365,942,405 365,942,405 405,490,366 377,697,017 377,697,017
Hello Group Inc.
Unaudited Condensed Consolidated Statement of
Comprehensive Income
(All amounts in thousands, except share and per share data)
Three months
First nine months
Ended September 30 Ended September 30
2023 2024 2024 2023 2024 2024
RMB RMB US$ RMB RMB US$
Net income 542,165 449,369 64,035 1,499,226 852,338 121,459
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment 6,032 (287,150) (40,919) 116,188 (190,687) (27,173)
Comprehensive income 548,197 162,219 23,116 1,615,414 661,651 94,286
Less: comprehensive (loss) income attributed to the non- (3,141) (6,400) (912) 5,377 (2,114) (301)
controlling interest
Comprehensive income attributable to Hello Group Inc. 551,338 168,619 24,028 1,610,037 663,765 94,587
Hello Group Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except share and per share data)
December 31 September 30 September 30
2023 2024 2024
RMB RMB US$
Assets
Current assets
Cash and cash equivalents 5,620,466 3,301,235 470,422
Short-term deposits 1,270,626 2,840,310 404,741
Restricted cash 10,147 4,084,937 582,099
Accounts receivable, net of allowance for doubtful accounts of 201,517 186,374 26,558
RMB12,780 and RMB12,490 as of December 31, 2023 and September
30, 2024, respectively
Amounts due from related parties 7,258
Prepaid expenses and other current assets 723,364 1,008,208 143,668
Total current assets 7,833,378 11,421,064 1,627,488
Long-term deposits 3,924,975 3,354,400 477,998
Long-term restricted cash 2,652,299 1,201,311 171,185
Right-of-use assets, net 109,572 288,193 41,067
Property and equipment, net 659,033 879,996 125,398
Intangible assets, net 17,086 13,247 1,888
Rental deposits 12,962 13,257 1,889
Long-term investments 786,911 783,521 111,651
Amounts due from RPT-non current 20,000
Other non-current assets 180,052 161,702 23,042
Deferred tax assets 31,741 35,938 5,121
Total assets 16,228,009 18,152,629 2,586,727
Liabilities and equity
Current liabilities
Accounts payable 616,681 608,607 86,723
Deferred revenue 442,805 443,036 63,132
Accrued expenses and other current liabilities 630,617 600,435 85,561
Amounts due to related parties 4,314
Lease liabilities due within one year 60,008 154,969 22,083
Income tax payable 94,719 93,432 13,314
Deferred consideration in connection with business acquisitions 27,261 26,945 3,840
Convertible Senior Notes-current - 19,394 2,764
Long-term borrowings, current portion 215,615 1,938,385 276,218
Short-term borrowings - 2,365,535 337,086
Total current liabilities 2,092,020 6,250,738 890,721
Deferred tax liabilities 24,987 323,362 46,079
Convertible Senior Notes 19,571
Long-term borrowings 1,938,385
Lease liabilities 52,171 142,803 20,349
Other non-current liabilities 114,085 130,359 18,576
Total liabilities 4,241,219 6,847,262 975,725
Shareholder's equity (i) 11,986,790 11,305,367 1,611,002
Total liabilities and shareholder's equity 16,228,009 18,152,629 2,586,727
(i): As of September 30, 2024, the number of ordinary shares outstanding was 344,219,472.
Hello Group Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in thousands, except share and per share data)
Three months
First nine months
Ended September 30
Ended September 30
2023 2024 2024 2023 2024 2024
RMB RMB US$ RMB RMB US$
Cash flows from operating activities:
Net income 542,165 449,369 64,035 1,499,226 852,338 121,459
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation of property and equipment 17,467 13,144 1,873 59,098 40,979 5,839
Amortization of intangible assets 1,279 1,279 182 3,837 3,837 547
Share-based compensation 59,472 43,951 6,264 204,877 150,079 21,385
Share of (income) loss on equity method investments (974) (33,876) (4,827) 31,940 (59,730) (8,511)
Gain on repurchase of convertible senior notes - (4,565)
Cash received on distributions from equity method investments 718 2,067 1,197 171
Loss on long-term investments - 43,870 6,251
Gain or loss on disposal of property and equipment (60) (142) (20) (520) (62) (9)
Provision of (income) loss on receivable and other assets (133) 1,754 250 10,071 3,675 524
Changes in operating assets and liabilities:
Accounts receivable 10,749 (3,876) (552) (9,916) 11,952 1,703
Prepaid expenses and other current assets (96,572) (97,212) (13,853) 98,294 (91,846) (13,088)
Amounts due from related parties (27,114) (27,059)
Rental deposits 1,301 493 70 2,252 (309) (44)
Deferred tax assets 415 (117) (17) 872 (4,195) (598)
Other non-current assets (50,578) 22,945 3,270 (27,639) (183,398) (26,134)
Accounts payable 6,987 16,036 2,285 38,825 (15,710) (2,239)
Income tax payable 24,215 35,209 5,017 20,496 (1,288) (184)
Deferred revenue 11,736 (838) (119) (11,137) 568 81
Accrued expenses and other current liabilities 15,374 (3,390) (483) (172,186) 61,357 8,743
Amount due to related parties (8,401) (5,504)
Deferred tax liabilities 47,681 (85,088) (12,125) 130,198 294,333 41,942
Other non-current liabilities 26,741 (18,688) (2,663) 17,757 108,705 15,490
Net cash provided by operating activities 582,468 340,953 48,587 1,861,284 1,216,352 173,328
Cash flows from investing activities:
Purchase of property and equipment (238,219) (19,796) (2,821) (259,463) (263,814) (37,593)
Payment for long-term investments - (28,000) (3,990) (9,000) (33,250) (4,738)
Purchase of short-term deposits (531,214) (2,133,086) (303,962) (1,028,556) (2,133,086) (303,962)
Cash received on maturity of short-term deposits 1,900,000 5,409,820 1,081,016 154,044
Cash received on investment income distribution - 1,517
Purchase of long-term deposits (2,498,860) (3,848,860) (718,860) (102,437)
Cash received on maturity of long-term deposits 1,700,000 1,700,000 718,860 102,437
Cash received from sales of long-term investment 15,000 15,000 2,000 285
Loan to a third-party company - (96,680) (13,777) (96,680) (13,777)
Other investing activities 137 212 30 1,822 895 128
Net cash provided by (used in) investing activities 346,844 (2,277,350) (324,520) 1,982,280 (1,442,919) (205,613)
Cash flows from financing activities:
Proceeds from exercise of share options 551 4 1 570 17 2
Repurchase of ordinary shares (58,767) (265,441) (37,825) (62,004) (772,263) (110,047)
Repurchase of subsidiary's share options (223) (4,319)
Dividends payment - (937,249) (716,302) (102,072)
Proceeds from short-term borrowings - 1,033,900 147,330 2,365,535 337,086
Proceeds from long-term borrowings 2,154,000 2,154,000
Repayment of long-term borrowings - (215,400) (30,694) (215,615) (30,725)
Payment for redemption of convertible bonds (86,932) (2,679,942)
Net cash provided by (used in) financing activities 2,008,629 553,063 78,812 (1,528,944) 661,372 94,244
Effect of exchange rate changes (7,837) (178,773) (25,478) 128,597 (130,234) (18,559)
Net increase (decrease) in cash and cash equivalents 2,930,104 (1,562,107) (222,599) 2,443,217 304,571 43,400
Cash, cash equivalents and restricted cash at the beginning of period 4,711,714 10,149,590 1,446,305 5,198,601 8,282,912 1,180,306
Cash, cash equivalents and restricted cash at the end of period 7,641,818 8,587,483 1,223,706 7,641,818 8,587,483 1,223,706
Hello Group Inc.
Reconciliation of Non-GAAP financial measures to comparable GAAP measures
(All amounts in thousands, except per share data)
1. Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to
comparable GAAP measures.
Three months
Three months
Three months
Ended September 30, 2023 Ended September 30, 2024 Ended September 30, 2024
GAAP Share-based Non-GAAP GAAP Share-based Non-GAAP GAAP Share-based Non-GAAP
compensation compensation compensation
RMB RMB RMB RMB RMB RMB US$ US$ US$
Cost of revenues (1,771,530) 1,211 (1,770,319) (1,623,723) 2,143 (1,621,580) (231,379) 305 (231,074)
Research and development (201,693) 14,993 (186,700) (196,382) 11,030 (185,352) (27,984) 1,573 (26,411)
Sales and marketing (373,942) 5,854 (368,088) (354,881) 4,774 (350,107) (50,570) 680 (49,890)
General and administrative (113,896) 37,414 (76,482) (111,174) 26,004 (85,170) (15,842) 3,706 (12,136)
Cost and operating expenses (2,461,061) 59,472 (2,401,589) (2,286,160) 43,951 (2,242,209) (325,775) 6,264 (319,511)
Income from operations 621,757 59,472 681,229 410,725 43,951 454,676 58,528 6,264 64,792
Net income attributable to Hello Group Inc. 546,428 59,472 605,900 449,369 43,951 493,320 64,035 6,264 70,299
Hello Group Inc.
Reconciliation of Non-GAAP financial measures to comparable GAAP measures
(All amounts in thousands, except per share data)
1. Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable
GAAP measures-continued.
First nine months
First nine months
First nine months
Ended September 30, 2023
Ended September 30, 2024 Ended September 30, 2024
GAAP Share-based Non-GAAP GAAP Share-based Non-GAAP GAAP Share-based Non-GAAP
compensation compensation compensation
RMB RMB RMB RMB RMB RMB US$ US$ US$
Cost of revenues (5,255,277) 4,398 (5,250,879) (4,722,520) 5,821 (4,716,699) (672,954) 829 (672,125)
Research and development (653,145) 51,186 (601,959) (581,741) 33,328 (548,413) (82,897) 4,749 (78,148)
Sales and marketing (1,110,253) 20,413 (1,089,840) (1,013,081) 15,040 (998,041) (144,363) 2,143 (142,220)
General and administrative (376,981) 128,880 (248,101) (364,037) 95,890 (268,147) (51,875) 13,664 (38,211)
Cost and operating expenses (7,395,656) 204,877 (7,190,779) (6,681,379) 150,079 (6,531,300) (952,089) 21,385 (930,704)
Income from operations 1,703,019 204,877 1,907,896 1,296,084 150,079 1,446,163 184,691 21,385 206,076
Net income attributable to Hello Group Inc. 1,505,112 204,877 1,709,989 852,338 150,079 1,002,417 121,459 21,385 142,844
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Three months
Ended September 30, 2024
Momo Tantan QOOL Total Total
RMB RMB RMB RMB US$
Net revenues:
Live video service 1,219,890 66,552 1,286,442 183,317
Value-added service 1,219,115 137,155 1,356,270 193,267
Mobile marketing 22,368 8,367 30,735 4,380
Other services 899 318 1,217 173
Total net revenues 2,462,272 212,074 318 2,674,664 381,137
Cost and expenses (ii):
Cost of revenues (1,523,515) (100,171) (37) (1,623,723) (231,379)
Research and development (160,161) (36,221) (196,382) (27,984)
Sales and marketing (298,630) (55,033) (1,218) (354,881) (50,570)
General and administrative (103,438) (7,175) (561) (111,174) (15,842)
Total cost and expenses (2,085,744) (198,600) (1,816) (2,286,160) (325,775)
Other operating income 21,021 1,200 22,221 3,166
Income (loss) from operations 397,549 14,674 (1,498) 410,725 58,528
Interest income 134,605 268 2 134,875 19,220
Interest expense (34,809) (34,809) (4,960)
Income (loss) before income tax and share of income on equity method 497,345 14,942 (1,496) 510,791 72,788
investments
Income tax expenses (94,777) (521) (95,298) (13,580)
Income (loss) before share of income on equity method investments 402,568 14,421 (1,496) 415,493 59,208
Share of income on equity method investments 33,876 33,876 4,827
Net income (loss) 436,444 14,421 (1,496) 449,369 64,035
(ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
Ended September 30, 2024
Momo Tantan QOOL Total Total
RMB RMB RMB RMB US$
Cost of revenues 2,143 2,143 305
Research and development 10,533 497 11,030 1,573
Sales and marketing 4,774 4,774 680
General and administrative 26,002 2 26,004 3,706
Total cost and expenses 43,452 499 43,951 6,264
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment
Report
(All amounts in thousands, except share and per share data)
Three months
Ended September 30, 2024
Momo Tantan QOOL Total Total
RMB RMB RMB RMB US$
Income (loss) from operations 397,549 14,674 (1,498) 410,725 58,528
Share-based compensation 43,452 499 43,951 6,264
Non-GAAP income (loss) from 441,001 15,173 (1,498) 454,676 64,792
operations
Net income (loss) 436,444 14,421 (1,496) 449,369 64,035
Share-based compensation 43,452 499 43,951 6,264
Non-GAAP net income (loss) 479,896 14,920 (1,496) 493,320 70,299
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
Three months
Ended September 30, 2023
Momo Tantan QOOL Total Total
RMB RMB RMB
RMB US$[1]
Net revenues:
Live video service 1,410,844 119,953 1,530,797 209,813
Value-added service 1,298,329 168,398 1,466,727 201,031
Mobile marketing 24,039 6,666 30,705 4,208
Mobile games 7,864 7,864 1,078
Other services 1,981 4,773 6,754 927
Total net revenues 2,743,057 295,017 4,773 3,042,847 417,057
Cost and expenses (iii):
Cost of revenues (1,606,261) (145,346) (19,923) (1,771,530) (242,808)
Research and development (151,649) (50,044) (201,693) (27,644)
Sales and marketing (298,919) (71,978) (3,045) (373,942) (51,253)
General and administrative (105,339) (5,656) (2,901) (113,896) (15,611)
Total cost and expenses (2,162,168) (273,024) (25,869) (2,461,061) (337,316)
Other operating income, net 37,750 1,985 236 39,971 5,478
Income (loss) from operations 618,639 23,978 (20,860) 621,757 85,219
Interest income 96,680 94 17 96,791 13,266
Interest expense (19,293) (19,293) (2,644)
Income (loss) before income tax and share of income on equity 696,026 24,072 (20,843) 699,255 95,841
method investments
Income tax expenses (156,992) (1,072) (158,064) (21,664)
Income (loss) before share of income on equity method 539,034 23,000 (20,843) 541,191 74,177
investments
Share of income on equity method investments 974 974 133
Net income (loss) 540,008 23,000 (20,843) 542,165 74,310
(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
Three months
Ended September 30, 2023
Momo Tantan QOOL Total Total
RMB RMB RMB
RMB US$
Cost of revenues 1,207 4 1,211 166
Research and development 11,401 3,592 14,993 2,055
Sales and marketing 5,854 5,854 802
General and administrative 37,406 8 37,414 5,128
Total cost and expenses 55,868 3,604 59,472 8,151
[1] All translations from RMB to U.S. dollars are made at a rate of RMB7.2960 to US$1.00, the effective noon buying rate for September 29, 2023 as set forth in the H.10 statistical release of the
Federal Reserve Board.
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment
Report
(All amounts in thousands, except share and per share data)
Three months
Ended September 30, 2023
Momo Tantan QOOL Total Total
RMB RMB RMB RMB US$
Income (loss) from operations 618,639 23,978 (20,860) 621,757 85,219
Share-based compensation 55,868 3,604 59,472 8,151
Non-GAAP income (loss) from 674,507 27,582 (20,860) 681,229 93,370
operations
Net income (loss) 540,008 23,000 (20,843) 542,165 74,310
Share-based compensation 55,868 3,604 59,472 8,151
Non-GAAP net income (loss) 595,876 26,604 (20,843) 601,637 82,461
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
First nine months
Ended September 30, 2024
Momo Tantan QOOL Total Total
RMB RMB RMB RMB US$
Net revenues:
Live video service 3,590,747 237,256 3,828,003 545,486
Value-added service 3,573,860 422,102 3,995,962 569,420
Mobile marketing 71,397 27,923 99,320 14,153
Mobile games 432 432 62
Other services 1,915 843 2,758 393
Total net revenues 7,238,351 687,281 843 7,926,475 1,129,514
Cost and expenses (iv):
Cost of revenues (4,408,264) (314,217) (39) (4,722,520) (672,954)
Research and development (462,202) (119,539) (581,741) (82,897)
Sales and marketing (836,410) (171,988) (4,683) (1,013,081) (144,363)
General and administrative (339,578) (23,744) (715) (364,037) (51,875)
Total cost and expenses (6,046,454) (629,488) (5,437) (6,681,379) (952,089)
Other operating income 49,037 1,925 26 50,988 7,266
Income (loss) from operations 1,240,934 59,718 (4,568) 1,296,084 184,691
Interest income 386,340 573 6 386,919 55,136
Interest expense (91,000) (91,000) (12,967)
Other gain or loss, net (43,870) (43,870) (6,251)
Income (loss) before income tax and share of income on equity method 1,492,404 60,291 (4,562) 1,548,133 220,609
investments
Income tax expenses (753,721) (1,804) (755,525) (107,661)
Income (loss) before share of income on equity method investments 738,683 58,487 (4,562) 792,608 112,948
Share of income on equity method investments 59,730 59,730 8,511
Net income (loss) 798,413 58,487 (4,562) 852,338 121,459
(iv) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
First nine months
Ended September 30, 2024
Momo Tantan QOOL Total Total
RMB RMB RMB RMB US$
Cost of revenues 5,817 4 5,821 829
Research and development 28,496 4,832 33,328 4,749
Sales and marketing 15,040 15,040 2,143
General and administrative 95,874 16 95,890 13,664
Total cost and expenses 145,227 4,852 150,079 21,385
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment
Report
(All amounts in thousands, except share and per share data)
First nine months
Ended September 30, 2024
Momo Tantan QOOL Total Total
RMB RMB RMB
RMB US$
Income (loss) from operations 1,240,934 59,718 (4,568) 1,296,084 184,691
Share-based compensation 145,227 4,852 150,079 21,385
Non-GAAP income (loss) from 1,386,161 64,570 (4,568) 1,446,163 206,076
operations
Net income (loss) 798,413 58,487 (4,562) 852,338 121,459
Share-based compensation 145,227 4,852 150,079 21,385
Non-GAAP net income (loss) 943,640 63,339 (4,562) 1,002,417 142,844
Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
First nine months
Ended September 30, 2023
Momo Tantan QOOL Total Total
RMB RMB RMB RMB US$
Net revenues:
Live video service 4,144,164 404,822 4,548,986 623,490
Value-added service 3,821,183 506,495 4,327,678 593,158
Mobile marketing 75,730 13,032 88,762 12,166
Mobile games 14,169 14,169 1,942
Other services 14,577 5,219 19,796 2,713
Total net revenues 8,069,823 924,349 5,219 8,999,391 1,233,469
Cost and expenses (v):
Cost of revenues (4,765,127) (469,111) (21,039) (5,255,277) (720,296)
Research and development (483,997) (169,148) (653,145) (89,521)
Sales and marketing (894,462) (210,208) (5,583) (1,110,253) (152,173)
General and administrative (349,614) (19,600) (7,767) (376,981) (51,670)
Total cost and expenses (6,493,200) (868,067) (34,389) (7,395,656) (1,013,660)
Other operating income 95,876 3,110 298 99,284 13,608
Income (loss) from operations 1,672,499 59,392 (28,872) 1,703,019 233,417
Interest income 311,157 656 86 311,899 42,749
Interest expense (41,671) (41,671) (5,711)
Other gain or loss, net 4,565 4,565 626
Income (loss) before income tax and share of loss on equity method 1,946,550 60,048 (28,786) 1,977,812 271,081
investments
Income tax expenses (443,175) (3,471) (446,646) (61,218)
Income (loss) before share of loss on equity method investments 1,503,375 56,577 (28,786) 1,531,166 209,863
Share of loss on equity method investments (31,940) (31,940) (4,378)
Net income (loss) 1,471,435 56,577 (28,786) 1,499,226 205,485
(v) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
First nine months
Ended September 30, 2023
Momo Tantan QOOL Total Total
RMB RMB RMB RMB US$
Cost of revenues 4,262 136 4,398 603
Research and development 36,793 14,393 51,186 7,016
Sales and marketing 20,408 5 20,413 2,798
General and administrative 128,856 24 128,880 17,664
Total cost and expenses 190,319 14,558 204,877 28,081
Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment
Report
(All amounts in thousands, except share and per share data)
First nine months
ended September 30, 2023
Momo Tantan QOOL Total Total
RMB RMB RMB RMB US$
Operating income (loss) 1,672,499 59,392 (28,872) 1,703,019 233,417
Share-based compensation 190,319 14,558 204,877 28,081
Non-GAAP operating income (loss) 1,862,818 73,950 (28,872) 1,907,896 261,498
Net income (loss) 1,471,435 56,577 (28,786) 1,499,226 205,485
Share-based compensation 190,319 14,558 204,877 28,081
Non-GAAP net income (loss) 1,661,754 71,135 (28,786) 1,704,103 233,566
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SOURCE Hello Group Inc.
