Hello Group Inc. Announces Unaudited Financial Results for the First Quarter of 2024

BEIJING, May 28, 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 first quarter of 2024.  

First Quarter of 2024 Highlights

  • Net revenues decreased by 9.2% year over year to RMB2,560.4 million (US$354.6 million*) in the first quarter of 2024.
  • Net income attributable to Hello Group Inc. decreased to RMB5.2 million (US$0.7 million) in the first quarter of 2024, from RMB390.3 million in the same period of 2023.
  • Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB59.9 million (US$8.3 million) in the first quarter of 2024, from RMB471.9 million in the same period of 2023, mainly due to the accrual of withholding income tax of RMB448.6 million (US$62.1 million) on historical undistributed earnings generated by our wholly-foreign owned enterprise (“WFOE”).
  • Diluted net income per American Depositary Share (“ADS”) was RMB0.03 (US$0.00) in the first quarter of 2024, compared to RMB1.96 in the same period of 2023.
  • Non-GAAP diluted net income per ADS (note 1) was RMB0.31 (US$0.04) in the first quarter of 2024, compared to RMB2.36 in the same period of 2023.
  • Monthly Active Users (“MAU”) on Tantan app were 13.7 million in March 2024, compared to 19.5 million in March 2023.
  • For the Momo app total paying users was 7.1 million for the first quarter of 2024, compared to 7.8 million for the same period last year. Tantan had 1.1 million paying users for the first quarter of 2024 compared to 1.6 million from the year ago period.

“We have made steady progress in implementing our strategic priorities for Momo, Tantan, and our new endeavors since the beginning of the year,” commented Yan Tang, Chairman and CEO of Hello Group. “Product innovation and our ability to leverage technological advancements have enabled Momo to play an important role in helping users discover new relationships and build meaningful interactions. This has laid a solid foundation for us to maintain user and revenue scale over the long term. I am also glad to see that our overseas team has accelerated the localization process to drive continued growth in the new endeavors. We look forward to delivering high quality social and entertainment services to a much broader user base global wise.” 

* 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 RMB7.2203 to US$1.00, the effective noon buying rate for March 29, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.

First Quarter of 2024 Financial Results

Net revenues

Total net revenues were RMB2,560.4 million (US$354.6 million) in the first quarter of 2024, a decrease of 9.2% from RMB2,818.9 million in the first quarter of 2023.

Live video service revenues were RMB1,238.5 million (US$171.5 million) in the first quarter of 2024, a decrease of 13.3% from RMB1,429.3 million during the same period of 2023. The decrease was primarily attributable to our proactive operational adjustments to de-emphasise 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 RMB1,294.4 million (US$179.3 million) in the first quarter of 2024, a decrease of 4.9% from RMB1,361.5 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. The decrease was partially offset by the rapid revenue growth from the new standalone apps.

Mobile marketing revenues were RMB26.6 million (US$3.7 million) in the first quarter of 2024, an increase of 26.2% from RMB21.1 million during the same period of 2023.

Mobile games revenues were RMB0.4 million (US$0.1 million) in the first quarter of 2024, a decrease of 88.3% from RMB3.7 million in the first quarter of 2023.

Net revenues from the Momo segment decreased from RMB2,510.1 million in the first quarter of 2023 to RMB2,318.9 million (US$321.2 million) in the first 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 RMB308.6 million in the first quarter of 2023 to RMB241.5 million (US$33.4 million) in the first quarter of 2024, mainly due to the decrease in net revenues from live video service, and to a lesser extent, the decrease from value-added service.

Cost and expenses

Cost and expenses were RMB2,120.0 million (US$293.6 million) in the first quarter of 2024, a decrease of 12.4% from RMB2,419.1 million in the first 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; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value; (c) a decrease in sales and marketing expenses due to less marketing and promotional spend on live video service and our strategy to trim inefficient channel marketing spend.

Non-GAAP cost and expenses (note 1) were RMB2,065.3 million (US$286.0 million) in the first quarter of 2024, a decrease of 11.6% from RMB2,337.4 million during the same period of 2023.

Income from operations

Income from operations was RMB460.3 million (US$63.8 million) in the first quarter of 2024, compared to RMB436.2 million during the same period of 2023. Income from operations of the Momo segment was RMB434.0 million (US$60.1 million) in the first quarter of 2024, which decreased from RMB435.0 million in the first quarter of 2023. Income from operations of the Tantan segment was RMB28.6 million (US$4.0 million) in the first quarter of 2024, which increased from RMB5.2 million in the first quarter of 2023.

Non-GAAP income from operations (note 1) was RMB515.0 million (US$71.3 million) in the first quarter of 2024, compared to RMB517.8 million during the same period of 2023. Non-GAAP income from operations of the Momo segment was RMB488.5 million (US$67.7 million) in the first quarter of 2024, which decreased from RMB507.5 million in the first quarter of 2023. Non-GAAP income from operations of the Tantan segment was RMB28.8 million (US$4.0 million) in the first quarter of 2024, compared to RMB14.5 million in the first quarter of 2023.  

Income tax expenses

Income tax expenses were RMB557.6 million (US$77.2 million) in the first quarter of 2024, compared to RMB122.6 million in the first quarter of 2023. In the first quarter of 2024, we accrued an income tax expenses of RMB109.0 million (US$15.1 million) associated with the profit generated in this quarter. Additionally, we accrued a withholding income tax of RMB448.6 million (US$62.1 million) associated with our WFOE’s historical undistributed earnings for the potential remittance of earnings from our WFOE to its offshore parent company in the form of dividend distribution. Because we believe that we might continue to distribute the WFOE’s undistributed earnings in the future to fund our demands in overseas business operations, payments of dividends, potential investments, etc, to be prudent, we accrued withholding tax on the total balance of undistributed earnings of our WFOE as of March 31, 2024. From the first quarter of 2024, dividends paid by our wholly foreign-owned subsidiary in the Chinese mainland to its offshore parent company in Hong Kong are qualified for the preferential withholding tax rate of 5% under the Arrangement between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income, instead of the normal withholding tax rate of 10%.

Net income

Net income was RMB5.2 million (US$0.7 million) in the first quarter of 2024, compared to RMB389.5 million during the same period of 2023. Net loss of the Momo segment was RMB20.8 million (US$2.9 million) in the first quarter of 2024, compared to a net income of RMB389.0 million in the same period of 2023. Net income from the Tantan segment was RMB28.2 million (US$3.9 million) in the first quarter of 2024, compared to RMB4.5 million in the first quarter of 2023.

Non-GAAP net income (note 1) was RMB59.9 million (US$8.3 million) in the first quarter of 2024, compared to RMB471.1 million during the same period of 2023. Non-GAAP net income from the Momo segment was RMB33.7 million (US$4.7 million) in the first quarter of 2024, which decreased from RMB461.5 million in the first quarter of 2023. Non-GAAP net income of the Tantan segment was RMB28.4 million (US$3.9 million) in the first quarter of 2024, compared to RMB13.7 million in the first quarter of 2023.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB5.2 million (US$0.7 million) in the first quarter of 2024, compared to RMB390.3 million during the same period of 2023.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB59.9 million (US$8.3 million) in the first quarter of 2024, compared to RMB471.9 million during the same period of 2023.

Net income per ADS

Diluted net income per ADS was RMB0.03 (US$0.00) in the first quarter of 2024, compared to RMB1.96 in the first quarter of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB0.31 (US$0.04) in the first quarter of 2024, compared to RMB2.36 in the first quarter of 2023.

Cash and cash flow

As of March 31, 2024, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB15,115.8 million (US$2,093.5 million), compared to RMB13,478.5 million as of December 31, 2023.

Net cash provided by operating activities in the first quarter of 2024 was RMB400.2 million (US$55.4 million), compared to RMB451.1 million in the first quarter of 2023.

Recent Development

Payment of a special cash dividend

In March 2024, Hello Group’s board of directors declared a special cash dividend in the amount of US$0.54 per ADS, or US$0.27 per ordinary share. The cash dividend was paid on April 30, 2024 to shareholders of record at the close of business on April 12, 2024. The aggregate amount of cash dividends paid was US$98.9 million.

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 May 28, 2024, the Company has repurchased 22.3 million ADSs for US$122.6 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$5.48 per ADS.

Business Outlook

For the second quarter of 2024, the Company expects total net revenues to be between RMB2.65 billion to RMB2.75 billion, representing a decrease of 15.5% to 12.4% 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.

Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.

Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Our non-GAAP information (including non-GAAP cost and operating expenses, income (loss) from operations, net income (loss), net income attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation. A limitation of using these non-GAAP financial measures is that share-based compensation has been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.

Conference Call

Hello Group’s management will host an earnings conference call on Tuesday, May 28, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on May 28, 2024).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10039014-cp8m51.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 June 4, 2024. The dial-in details for the replay are as follows:

U.S. / Canada: 1-855-883-1031

Hong Kong: 800-930-639

Passcode: 10039014

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, Duidui and Tietie, 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 second 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 first quarter of 2024 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the second 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

Ended March 31

2023

2024

2024

RMB

RMB

US$

Net revenues:

Live video service

1,429,340

1,238,541

171,536

Value-added service

1,361,469

1,294,376

179,269

Mobile marketing

21,071

26,595

3,683

Mobile games

3,699

432

60

Other services

3,279

476

66

Total net revenues

2,818,858

2,560,420

354,614

Cost and expenses:

Cost of revenues

(1,664,188)

(1,503,008)

(208,164)

Research and development

(236,803)

(192,191)

(26,618)

Sales and marketing

(379,786)

(293,431)

(40,640)

General and administrative

(138,298)

(131,381)

(18,196)

Total cost and expenses

(2,419,075)

(2,120,011)

(293,618)

Other operating income, net

36,394

19,906

2,757

Income from operations

436,177

460,315

63,753

Interest income

99,787

121,107

16,773

Interest expense

(10,415)

(23,698)

(3,282)

Other gain or loss, net

(9,245)

(1,280)

Income before income tax and share of (loss) income on equity method
investments

525,549

548,479

75,964

Income tax expenses

(122,613)

(557,613)

(77,229)

Income (loss) before share of income on equity method investments

402,936

(9,134)

(1,265)

Share of (loss) income on equity method investments

(13,475)

14,318

1,983

Net income 

389,461

5,184

718

Less: net loss attributable to non-controlling interest

(828)

Net income attributable to the shareholders of Hello Group Inc.

390,289

5,184

718

Net income per share attributable to ordinary shareholders

Basic

1.04

0.01

0.00

Diluted

0.98

0.01

0.00

Weighted average shares used in calculating net income per ordinary share

Basic

377,017,080

374,650,649

374,650,649

Diluted

409,102,277

389,278,806

389,278,806

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

(All amounts in thousands, except share and per share data)

Three months

Ended March 31

2023

2024

2024

RMB

RMB

US$

Net income 

389,461

5,184

718

Other comprehensive income, net of tax:

Foreign currency translation adjustment

2,181

54,894

7,603

Comprehensive income 

391,642

60,078

8,321

Less: comprehensive (loss) income attributed to the non-controlling interest

(1,670)

3,084

427

Comprehensive income attributable to Hello Group Inc.

393,312

56,994

7,894

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except share and per share data)

December 31

March 31

March 31

2023

2024

2024

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

5,620,466

6,023,224

834,207

Short-term deposits

1,270,626

1,129,454

156,428

Restricted cash

10,147

1,504,307

208,344

Accounts receivable, net of allowance for doubtful accounts of
RMB12,780 and RMB12,497 as of December 31, 2023 and March 31,
2024, respectively

201,517

189,561

26,254

Amounts due from related parties

7,258

Prepaid expenses and other current assets

723,364

823,251

114,019

Total current assets

7,833,378

9,669,797

1,339,252

Long-term deposits

3,924,975

3,805,075

526,997

Long-term restricted cash

2,652,299

2,653,744

367,539

Right-of-use assets, net

109,572

116,607

16,150

Property and equipment, net

659,033

688,699

95,384

Intangible assets, net

17,086

15,806

2,189

Rental deposits

12,962

13,766

1,907

Long-term investments

786,911

710,557

98,411

Amounts due from RPT-non current

20,000

Other non-current assets

180,052

200,649

27,790

Deferred tax assets

31,741

34,240

4,742

Total assets

16,228,009

17,908,940

2,480,361

Liabilities and equity

Current liabilities

Accounts payable

616,681

604,398

83,711

Deferred revenue

442,805

459,797

63,681

Accrued expenses and other current liabilities

630,617

564,205

78,141

Amounts due to related parties

4,314

Lease liabilities due within one year

60,008

66,136

9,160

Income tax payable

94,719

100,756

13,955

Deferred consideration in connection with business acquisitions

27,261

27,723

3,840

Long-term borrowings, current portion

215,615

217,094

30,067

Dividends payable

714,120

98,904

Short-term borrowings

1,334,664

184,849

Total current liabilities

2,092,020

4,088,893

566,308

Deferred tax liabilities

24,987

391,502

54,222

Convertible Senior Notes

19,571

19,920

2,759

Long-term borrowings

1,938,385

1,938,169

268,433

Lease liabilities

52,171

52,487

7,269

Other non-current liabilities

114,085

139,721

19,351

Total liabilities

4,241,219

6,630,692

918,342

Shareholder’s equity (i)

11,986,790

11,278,248

1,562,019

Total liabilities and shareholder’s equity

16,228,009

17,908,940

2,480,361

(i): As of March 31, 2024, the number of ordinary shares outstanding was 370,162,906.

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

(All amounts in thousands, except share and per share data)

Three months

Ended March 31

2023

2024

2024

RMB

RMB

US$

Cash flows from operating activities:

Net income 

389,461

5,184

718

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of property and equipment

22,844

14,310

1,982

Amortization of intangible assets

1,279

1,279

177

Share-based compensation

81,657

54,670

7,572

Share of loss (income) on equity method investments

13,475

(14,318)

(1,983)

Loss on long-term investments

9,245

1,280

Gain or loss on disposal of property and equipment

67

258

36

Provision of loss on receivable and other assets

9,182

1,776

246

Changes in operating assets and liabilities:

Accounts receivable

(548)

10,980

1,521

Prepaid expenses and other current assets

24,352

(9,677)

(1,340)

Amounts due from related parties

55

Rental deposits

(802)

(111)

Deferred tax assets

440

(2,498)

(346)

Other non-current assets

(7,485)

(7,597)

(1,052)

Accounts payable

20,379

(17,454)

(2,417)

Income tax payable

(6,393)

6,036

836

Deferred revenue

(8,811)

16,674

2,309

Accrued expenses and other current liabilities

(132,733)

(56,800)

(7,867)

Amount due to related parties

3,169

Deferred tax liabilities

34,120

365,011

50,553

Other non-current liabilities

6,564

23,893

3,309

Net cash provided by operating activities

451,074

400,170

55,423

Cash flows from investing activities:

Purchase of property and equipment

(10,234)

(44,176)

(6,118)

Purchase of short-term deposits

(497,342)

Cash received on maturity of short-term deposits

900,000

300,000

41,550

Purchase of long-term deposits

(718,860)

(99,561)

Cash received on maturity of long-term deposits

718,860

99,561

Cash received from sales of long-term investment

2,000

277

Other investing activities

738

385

53

Net cash provided by investing activities

393,162

258,209

35,762

Cash flows from financing activities:

Proceeds from exercise of share options

3

11

2

Payment in relation to the share repurchase program

(3,237)

(112,261)

(15,548)

Repurchase of subsidiary’s share options

(1,539)

Proceeds from short-term borrowings

1,331,635

184,429

Repayment of long-term borrowings

(215)

(30)

Payment for redemption of convertible bonds

(478,786)

Net cash (used in) provided by financing activities

(483,559)

1,219,170

168,853

Effect of exchange rate changes

(9,426)

20,814

2,882

Net increase in cash and cash equivalents 

351,251

1,898,363

262,920

Cash, cash equivalents and restricted cash at the beginning of period

5,198,601

8,282,912

1,147,170

Cash, cash equivalents and restricted cash at the end of period

5,549,852

10,181,275

1,410,090

 

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 March 31, 2023

Ended March 31, 2024

Ended March 31, 2024

GAAP

Share-based
compensation

Non-GAAP

GAAP

Share-based
compensation

Non-GAAP

GAAP

Share-based
compensation

Non-GAAP

RMB

RMB

RMB

RMB

RMB 

RMB

US$

US$

US$

Cost of revenues

(1,664,188)

1,635

(1,662,553)

(1,503,008)

1,882

(1,501,126)

(208,164)

261

(207,903)

Research and development

(236,803)

22,372

(214,431)

(192,191)

8,786

(183,405)

(26,618)

1,217

(25,401)

Sales and marketing

(379,786)

7,746

(372,040)

(293,431)

6,117

(287,314)

(40,640)

847

(39,793)

General and administrative

(138,298)

49,904

(88,394)

(131,381)

37,885

(93,496)

(18,196)

5,247

(12,949)

Cost and operating expenses

(2,419,075)

81,657

(2,337,418)

(2,120,011)

54,670

(2,065,341)

(293,618)

7,572

(286,046)

Income from operations

436,177

81,657

517,834

460,315

54,670

514,985

63,753

7,572

71,325

Net income attributable to Hello Group Inc.

390,289

81,657

471,946

5,184

54,670

59,854

718

7,572

8,290

 

Unaudited Condensed Segment Report

(All amounts in thousands, except share and per share data)

Three months

  Ended March 31, 2024

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

1,150,844

87,697

1,238,541

171,536

Value-added service

1,149,285

145,091

1,294,376

179,269

Mobile marketing

17,893

8,702

26,595

3,683

Mobile games

432

432

60

Other services

434

42

476

66

Total net revenues

2,318,888

241,490

42

2,560,420

354,614

Cost and expenses (ii):

Cost of revenues

(1,392,824)

(110,184)

(1,503,008)

(208,164)

Research and development

(150,861)

(41,330)

(192,191)

(26,618)

Sales and marketing

(236,659)

(54,482)

(2,290)

(293,431)

(40,640)

General and administrative

(123,752)

(7,591)

(38)

(131,381)

(18,196)

Total cost and expenses

(1,904,096)

(213,587)

(2,328)

(2,120,011)

(293,618)

Other operating income

19,158

724

24

19,906

2,757

Income (loss) from operations

433,950

28,627

(2,262)

460,315

63,753

Interest income

120,958

147

2

121,107

16,773

Interest expense

(23,698)

(23,698)

(3,282)

Other gain or loss, net

(9,245)

(9,245)

(1,280)

Income (loss) before income tax and share of income on equity
method investments

521,965

28,774

(2,260)

548,479

75,964

Income tax expenses

(557,079)

(534)

(557,613)

(77,229)

(Loss) income before share of income on equity method
investments

(35,114)

28,240

(2,260)

(9,134)

(1,265)

Share of income on equity method investments

14,318

14,318

1,983

Net (loss) income

(20,796)

28,240

(2,260)

5,184

718

(ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three months

Ended March 31, 2024

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

1,878

4

1,882

261

Research and development

8,638

148

8,786

1,217

Sales and marketing

6,117

6,117

847

General and administrative

37,874

11

37,885

5,247

Total cost and expenses

54,507

163

54,670

7,572

 

 

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 March 31, 2024

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

433,950

28,627

(2,262)

460,315

63,753

Share-based compensation

54,507

163

54,670

7,572

Non-GAAP income (loss) from operations

488,457

28,790

(2,262)

514,985

71,325

Net (loss) income 

(20,796)

28,240

(2,260)

5,184

718

Share-based compensation

54,507

163

54,670

7,572

Non-GAAP net income (loss)

33,711

28,403

(2,260)

59,854

8,290

   

 

Hello Group Inc.

Unaudited Condensed Segment Report

(All amounts in thousands, except share and per share data)

Three months

  Ended March 31, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[1]

Net revenues:

Live video service

1,289,718

139,622

1,429,340

208,128

Value-added service

1,193,544

167,925

1,361,469

198,246

Mobile marketing

20,021

1,050

21,071

3,068

Mobile games

3,699

3,699

539

Other services

3,137

142

3,279

477

Total net revenues

2,510,119

308,597

142

2,818,858

410,458

Cost and expenses (iii):

Cost of revenues

(1,500,531)

(163,114)

(543)

(1,664,188)

(242,325)

Research and development

(169,308)

(67,495)

(236,803)

(34,481)

Sales and marketing

(312,640)

(65,852)

(1,294)

(379,786)

(55,301)

General and administrative

(128,078)

(7,746)

(2,474)

(138,298)

(20,138)

Total cost and expenses

(2,110,557)

(304,207)

(4,311)

(2,419,075)

(352,245)

Other operating income, net

35,478

854

62

36,394

5,299

Income (loss) from operations

435,040

5,244

(4,107)

436,177

63,512

Interest income

99,531

204

52

99,787

14,530

Interest expense

(10,415)

(10,415)

(1,517)

Income (loss) before income tax and share of income on equity 
method investments

524,156

5,448

(4,055)

525,549

76,525

Income tax expenses

(121,642)

(971)

(122,613)

(17,854)

Income (loss) before share of income on equity method investments

402,514

4,477

(4,055)

402,936

58,671

Share of loss on equity method investments

(13,475)

(13,475)

(1,962)

Net income (loss)

389,039

4,477

(4,055)

389,461

56,709

(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three months

Ended March 31, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

1,618

17

1,635

238

Research and development

13,170

9,202

22,372

3,258

Sales and marketing

7,741

5

7,746

1,128

General and administrative

49,896

8

49,904

7,267

Total cost and expenses

72,425

9,232

81,657

11,891

[1] All translations from RMB to U.S. dollars are made at a rate of RMB6.8676 to US$1.00, the effective noon buying rate for March 31, 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 March 31, 2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

435,040

5,244

(4,107)

436,177

63,512

Share-based compensation

72,425

9,232

81,657

11,891

Non-GAAP income (loss) from operations

507,465

14,476

(4,107)

517,834

75,403

Net income (loss)

389,039

4,477

(4,055)

389,461

56,709

Share-based compensation

72,425

9,232

81,657

11,891

Non-GAAP net income (loss)

461,464

13,709

(4,055)

471,118

68,600

 

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