Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2022
BEIJING, March 16, 2023 /PRNewswire/ -- Hello Group Inc. (NASDAQ:MOMO) ("Hello Group" or the "Company"), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2022.
Fourth Quarter of 2022 Highlights
- Net revenues decreased by 12.6% year over year to RMB3,212.7 million (US$465.8 million*) in the fourth quarter of 2022.
- Net income attributable to Hello Group Inc. was RMB398.0 million (US$57.7 million) in the fourth quarter of 2022, compared to a net loss of RMB4,242.7 million in the same period of 2021.
- Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB487.9 million (US$70.7 million) in the fourth quarter of 2022, from RMB280.9 million in the same period of 2021.
- Diluted net income per American Depositary Share ("ADS") was RMB2.01 (US$0.29) in the fourth quarter of 2022, compared to a diluted net loss per ADS of RMB21.50 in the same period of 2021.
- Non-GAAP diluted net income per ADS (note 1) was RMB2.46 (US$0.36) in the fourth quarter of 2022, compared to RMB1.38 in the same period of 2021.
- Monthly Active Users ("MAU") on Momo application were 94.6 million in December 2022, compared to 114.1 million in December 2021. MAU on Tantan application were 18.4 million in December 2022, compared to 27.0 million in December 2021.
- For the Momo app total paying users was 7.8 million for the fourth quarter of 2022, compared to 8.9 million for the same period last year. Tantan had 1.7 million paying users for the fourth quarter of 2022 compared to 2.5 million from the year ago period.
Full Year 2022 Highlights
- Net revenues decreased 12.8% year over year to RMB12,704.2 million (US$1,841.9 million) for the full year of 2022.
- Net income attributable to Hello Group Inc. was RMB1,484.3 million (US$215.2 million) for the full year of 2022, compared to a net loss of RMB2,913.7 million during the same period of 2021.
- Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,885.8 million (US$273.4 million) for the full year of 2022, compared to RMB2,037.1 million during the same period of 2021.
- Diluted net income per ADS was RMB7.31 (US$1.06) for the full year of 2022, compared to a diluted net loss per ADS of RMB14.40 during the same period of 2021.
- Non-GAAP diluted net income per ADS (note 1) was RMB9.20 (US$1.33) for the full year of 2022, compared to RMB9.56 during the same period of 2021.
* 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 RMB6.8972 to US$1.00, the effective noon buying rate for December 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board. |
"2022 was an extremely challenging year. I am pleased to see that our team withstood external pressures by timely adjusting strategic priorities and corresponding execution plans with flexible product and operational measures." Commented Yan Tang, Chairman and CEO of Hello Group. "Despite the challenges, we delivered solid financial results for shareholders, enabling us to conclude the year on a satisfactory note."
Fourth Quarter of 2022 Financial Results
Net revenues
Total net revenues were RMB3,212.7 million (US$465.8 million) in the fourth quarter of 2022, a decrease of 12.6% from RMB3,674.2 million in the fourth quarter of 2021.
Live video service revenues were RMB1,724.2 million (US$250.0 million) in the fourth quarter of 2022, a decrease of 19.8% from RMB2,148.8 million during the same period of 2021. The decrease was primarily attributable to pressure on Momo application caused by COVID related factors and regulatory changes, and to a lesser extent, the negative impact of COVID infection surge and reduction of channel investments on Tantan's MAU and paying conversion.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,449.5 million (US$210.2 million) in the fourth quarter of 2022, a decrease of 1.8% from RMB1,475.7 million during the same period of 2021. The year over year decrease was primarily attributable to the negative impact of COVID to the virtual gift business on the Momo application, and the decrease in Tantan's value-added service due to the surge in COVID infections as well as channel investment reduction, which put pressure on user traffic and paying conversion. The decrease was partially offset by the rapid revenue growth from the new standalone apps.
Mobile marketing revenues were RMB32.9 million (US$4.8 million) in the fourth quarter of 2022, an increase of 29.8% from RMB25.4 million during the same period of 2021. The increase in mobile marketing revenues was due to the increased demand from brand marketers.
Mobile games revenues were RMB5.3 million (US$0.8 million) in the fourth quarter of 2022, a decrease of 72.4% from RMB19.3 million in the fourth quarter of 2021. The decrease in mobile game revenues was mainly due to the Company's strategic decision to pivot away from game distribution business.
Net revenues from the Momo segment decreased from RMB3,235.6 million in the fourth quarter of 2021 to RMB2,865.8 million (US$415.5 million) in the fourth quarter of 2022, primarily due to the decrease in net revenues from live video service, partially offset by the growth of value-added service business. Net revenues from the Tantan segment decreased from RMB437.2 million in the fourth quarter of 2021 to RMB346.7 million (US$50.3 million) in the fourth quarter of 2022, due to the negative impact of COVID and the reduction of channel investments on Tantan's user growth and paying conversion.
Cost and expenses
Cost and expenses were RMB2,738.3 million (US$397.0 million) in the fourth quarter of 2022, a decrease of 64.6% from RMB7,729.4 million in the fourth quarter of 2021. The decrease was primarily attributable to: (a) an impairment loss on goodwill and intangible assets amounting to RMB4,397.0 million in the fourth quarter of 2021; (b) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan's channel marketing strategy; (c) a decrease in revenue sharing with broadcasters related to Momo's core live video service and Tantan's live video service, which was partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service; (d) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs since the beginning of the year and the decreased fair value of newly granted share options.
Non-GAAP cost and expenses (note 1) were RMB2,648.3 million (US$384.0 million) in the fourth quarter of 2022, a decrease of 17.4% from RMB3,205.8 million during the same period of 2021.
Other operating (loss) income, net
Other operating loss was RMB65.2 million (US$9.4 million) in the fourth quarter of 2022, compared to an income of RMB38.6 million during the fourth quarter of 2021. The other operating loss in the fourth quarter of 2022 mainly included a contingent loss of RMB92.9 million (US$13.5 million) related to an ongoing investigation of the alleged illegal activity on the source of the funding consumed on Momo's platform.
Income (loss) from operations
Income from operations was RMB409.2 million (US$59.3 million) in the fourth quarter of 2022, compared to a loss from operations of RMB4,016.6 million during the same period of 2021. Income from operations of the Momo segment was RMB435.8 million (US$63.2 million) in the fourth quarter of 2022, which decreased from RMB549.3 million in the fourth quarter of 2021. Loss from operations of the Tantan segment was RMB21.7 million (US$3.1 million) in the fourth quarter of 2022, compared to loss from operations of RMB162.5 million in the fourth quarter of 2021.
Non-GAAP income from operations (note 1) was RMB499.2 million (US$72.4 million) in the fourth quarter of 2022, compared to RMB507.0 million during the same period of 2021. Non-GAAP income from operations of the Momo segment was RMB519.2 million (US$75.3 million) in the fourth quarter of 2022, which decreased from RMB658.4 million in the fourth quarter of 2021. Non-GAAP loss from operations of the Tantan segment was RMB15.2 million (US$2.2 million) in the fourth quarter of 2022, compared to non-GAAP loss from operations of RMB145.0 million in the fourth quarter of 2021.
Income tax expenses
Income tax expenses were RMB109.4 million (US$15.9 million) in the fourth quarter of 2022, compared to RMB296.5 million in the fourth quarter of 2021. The decrease was primarily due to the fact that in the fourth quarter of 2022, we accrued withholding income tax of RMB39.7 million (US$5.8 million) on undistributed earnings generated in the fourth quarter of 2022 by our wholly-foreign owned enterprise ("WFOE"), because we planned to remit WFOE's earnings to its offshore parent company in the foreseeable future to fund its demand for US dollars in business operations, payments of dividends and debts, potential investments, share repurchase plan, etc., and in the fourth quarter of 2021, we accrued withholding income tax of RMB207.4 million on undistributed earnings generated in the full year of 2021 by WFOE.
Net income (loss)
Net income was RMB397.0 million (US$57.6 million) in the fourth quarter of 2022, compared to a net loss of RMB4,244.0 million during the same period of 2021. Net income from the Momo segment was RMB397.1 million (US$57.6 million) in the fourth quarter of 2022, compared to RMB306.7 million in the same period of 2021. Net income from the Tantan segment was RMB4.7 million (US$0.7 million) in the fourth quarter of 2022, compared to a net loss of RMB147.3 million in the fourth quarter of 2021.
Non-GAAP net income (note 1) was RMB487.0 million (US$70.6 million) in the fourth quarter of 2022, compared to RMB279.6 million during the same period of 2021. Non-GAAP net income from the Momo segment was RMB480.5 million (US$69.7 million) in the fourth quarter of 2022, which increased from RMB415.8 million in the fourth quarter of 2021. Non-GAAP net income of the Tantan segment was RMB11.3 million (US$1.6 million) in the fourth quarter of 2022, compared to a non-GAAP net loss of RMB129.9 million in the fourth quarter of 2021.
Net income (loss) attributable to Hello Group Inc.
Net income attributable to Hello Group Inc. was RMB398.0 million (US$57.7 million) in the fourth quarter of 2022, compared to a net loss of RMB4,242.7 million during the same period of 2021.
Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB487.9 million (US$70.7 million) in the fourth quarter of 2022, compared to RMB280.9 million during the same period of 2021.
Net income (loss) per ADS
Diluted net income per ADS was RMB2.01 (US$0.29) in the fourth quarter of 2022, compared to a diluted net loss per ADS of RMB21.50 in the fourth quarter of 2021.
Non-GAAP diluted net income per ADS (note 1) was RMB2.46 (US$0.36) in the fourth quarter of 2022, compared to RMB1.38 in the fourth quarter of 2021.
Cash and cash flow
As of December 31, 2022, the Company's cash, cash equivalents, short-term deposits, long-term deposits, short-term investments, short-term restricted cash and long-term restricted cash totaled RMB13,398.8 million (US$1,942.7 million), compared to RMB15,707.0 million as of December 31, 2021. The decrease was due to a number of cash outflow items, including our cash dividend payment of RMB841.0 million (US$121.9 million) to shareholders; an aggregate payment of RMB2,137.0 million (US$309.8 million) for the repurchase of the company's convertible notes; an aggregate payment of RMB392.4 million (US$56.9 million) in relation to the share repurchase program; and RMB360.0 million (US$52.2 million) payment to Chinese tax authorities to repatriate cash from our WFOE in China to our offshore entity during 2022.
Net cash provided by operating activities in the fourth quarter of 2022 was RMB538.7 million (US$78.1 million), compared to RMB665.5 million in the fourth quarter of 2021.
Full Year 2022 Financial Results
Net revenues for the full year of 2022 were RMB12,704.2 million (US$1,841.9 million), a decrease of 12.8% from RMB14,575.7 million in the same period of 2021.
Net income attributable to Hello Group Inc. was RMB1,484.3 million (US$215.2 million) for the full year of 2022, compared to a net loss of RMB2,913.7 million during the same period of 2021.
Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,885.8 million (US$273.4 million) for the full year of 2022, compared to a net loss of RMB2,037.1 million during the same period of 2021.
Diluted net income per ADS was RMB7.31 (US$1.06) during the full year of 2022, compared to a diluted net loss per ADS of RMB14.40 in the same period of 2021.
Non-GAAP diluted net income per ADS (note 1) was RMB9.20 (US$1.33) during the full year of 2022, compared to RMB9.56 in the same period of 2021.
Net cash provided by operating activities was RMB1,226.9 million (US$177.9 million) during the full year of 2022, compared to RMB1,559.2 million in the same period of 2021.
Recent Development
Declaration of a special cash dividend
Hello Group's board of directors has declared a special cash dividend in the amount of US$0.72 per ADS, or US$0.36 per ordinary share. The cash dividend will be paid on May 22, 2023 to shareholders of record at the close of business on April 28, 2023. The ex-dividend date will be April 27, 2023. The aggregate amount of cash dividends to be paid is approximately US$137 million, which will be funded by surplus cash on the Company's balance sheet.
Appointment of New Director and Chief Operating Officer
The board of directors has appointed Ms. Sichuan Zhang as a director and Chief Operating Officer of the Company, effective March 16, 2023.
Ms. Sichuan Zhang previously served as our director from April 2012 to November 2017. Ms. Zhang founded PUPUPULA, a children's furniture and design company, in 2017, and served as its Chief Executive Officer until 2022. Ms. Zhang first joined the Company in July 2011 and was responsible for product design, then marketing strategies and executions. Prior to joining our company, from June 2009 to February 2011, she co-founded 4 Degrees Motion Design, an advertising design firm. She was an art director of Modern Media, a Chinese media company, from January 2009 to May 2009, a senior designer of Phoenix New Media Limited (NYSE:FENG) from January 2008 to January 2009, and a web designer of NetEase, Inc. from March 2006 to April 2007. Ms. Zhang received her bachelor's degree in South China Normal University in 2005. Ms. Zhang is the spouse of Mr. Yan Tang, our co-founder, chairman and Chief Executive Officer.
Execution of 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 over the next 24 months. As of March 16, 2023, the Company has repurchased 12.0 million ADSs for US$56.7 million on the open market under this program, at an average purchase price of US$4.71 per ADS.
Business Outlook
For the first quarter of 2023, the Company expects total net revenues to be between RMB2.65 billion to RMB2.75 billion, representing a decrease of 15.8% to 12.6% 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, impairment loss on goodwill and intangible assets, 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 (loss) attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation, impairment loss on goodwill and intangible assets, 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, impairment loss on goodwill and intangible assets, 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 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 Thursday, March 16, 2023, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 16, 2023).
Participants can register for the conference call by navigating to:
https://s1.c-conf.com/diamondpass/10029147-tf6dtf.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 March 23, 2023. The dial-in details for the replay are as follows:
U.S. / Canada: 1-855-883-1031
Hong Kong: 800-930-639
Passcode: 10029147
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 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 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. We also operate a number of other applications to serve different social and entertainment demands from our users.
For investor and media inquiries, please contact:
Hello Group Inc.
Investor Relations
Phone: +86-10-5731-0538
Email: ir@hellogroup.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: eric.yuan@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 first quarter of 2023, 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 fourth quarter of 2022 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2023 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 pandemic on the Company's business operations and the economy in China, 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 | Year | |||||||||||
Ended December 31 | Ended December 31 | |||||||||||
2021 | 2022 | 2022 | 2021 | 2022 | 2022 | |||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Net revenues: | ||||||||||||
Live video service | 2,148,785 | 1,724,228 | 249,990 | 8,378,945 | 6,510,460 | 943,928 | ||||||
Value-added service | 1,475,733 | 1,449,537 | 210,164 | 5,971,792 | 6,007,018 | 870,936 | ||||||
Mobile marketing | 25,369 | 32,927 | 4,774 | 159,010 | 124,956 | 18,117 | ||||||
Mobile games | 19,294 | 5,316 | 771 | 47,712 | 55,732 | 8,080 | ||||||
Other services | 5,048 | 650 | 93 | 18,260 | 6,006 | 871 | ||||||
Total net revenues | 3,674,229 | 3,212,658 | 465,792 | 14,575,719 | 12,704,172 | 1,841,932 | ||||||
Cost and expenses: | ||||||||||||
Cost of revenues | (2,191,520) | (1,916,050) | (277,801) | (8,383,431) | (7,421,419) | (1,076,005) | ||||||
Research and development | (316,024) | (272,657) | (39,532) | (1,131,781) | (1,006,219) | (145,888) | ||||||
Sales and marketing | (659,604) | (407,075) | (59,020) | (2,604,309) | (2,073,617) | (300,646) | ||||||
General and administrative | (165,257) | (142,492) | (20,659) | (624,700) | (596,006) | (86,413) | ||||||
Impairment loss on goodwill and | (4,397,012) | - | - | (4,397,012) | - | - | ||||||
Total cost and expenses | (7,729,417) | (2,738,274) | (397,012) | (17,141,233) | (11,097,261) | (1,608,952) | ||||||
Other operating income (loss), net | 38,558 | (65,158) | (9,447) | 175,947 | 20,632 | 2,991 | ||||||
(Loss) income from operations | (4,016,630) | 409,226 | 59,333 | (2,389,567) | 1,627,543 | 235,971 | ||||||
Interest income | 99,573 | 88,118 | 12,776 | 384,279 | 368,879 | 53,482 | ||||||
Interest expense | (18,444) | (10,955) | (1,588) | (73,776) | (83,530) | (12,111) | ||||||
Other gain or loss, net | 2,000 | - | - | (16,000) | 118,325 | 17,156 | ||||||
(Loss) income before income | (3,933,501) | 486,389 | 70,521 | (2,095,064) | 2,031,217 | 294,498 | ||||||
Income tax expenses | (296,491) | (109,421) | (15,865) | (822,556) | (562,281) | (81,523) | ||||||
(Loss) income before share of | (4,229,992) | 376,968 | 54,656 | (2,917,620) | 1,468,936 | 212,975 | ||||||
Share of (loss) income on equity | (14,045) | 20,040 | 2,906 | (8,084) | 11,073 | 1,605 | ||||||
Net (loss) income | (4,244,037) | 397,008 | 57,562 | (2,925,704) | 1,480,009 | 214,580 | ||||||
Less: net loss attributable to non- | (1,319) | (986) | (143) | (11,996) | (4,274) | (620) | ||||||
Net (loss) income attributable to | (4,242,718) | 397,994 | 57,705 | (2,913,708) | 1,484,283 | 215,200 | ||||||
Net (loss) income per share | ||||||||||||
Basic | (10.75) | 1.05 | 0.15 | (7.20) | 3.80 | 0.55 | ||||||
Diluted | (10.75) | 1.01 | 0.15 | (7.20) | 3.65 | 0.53 | ||||||
Weighted average shares used in | ||||||||||||
Basic | 394,694,993 | 377,841,986 | 377,841,986 | 404,701,910 | 390,176,367 | 390,176,367 | ||||||
Diluted | 394,694,993 | 406,152,757 | 406,152,757 | 404,701,910 | 423,810,279 | 423,810,279 | ||||||
Hello Group Inc. | |||||||||||||||||||
Unaudited Condensed Consolidated Statement of Comprehensive Income | |||||||||||||||||||
(All amounts in thousands, except share and per share data) | |||||||||||||||||||
Three months | Year | ||||||||||||||||||
Ended December 31 | Ended December 31 | ||||||||||||||||||
2021 | 2022 | 2022 | 2021 | 2022 | 2022 | ||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
Net (loss) income | (4,244,037) | 397,008 | 57,562 | (2,925,704) | 1,480,009 | 214,580 | |||||||||||||
Other comprehensive (loss) | |||||||||||||||||||
Foreign currency translation | (7,331) | 54,041 | 7,835 | (39,161) | (274,791) | (39,841) | |||||||||||||
Comprehensive (loss) income | (4,251,368) | 451,049 | 65,397 | (2,964,865) | 1,205,218 | 174,739 | |||||||||||||
Less: comprehensive (loss) | (3,280) | (7,154) | (1,037) | (16,603) | 10,556 | 1,530 | |||||||||||||
Comprehensive (loss) income | (4,248,088) | 458,203 | 66,434 | (2,948,262) | 1,194,662 | 173,209 | |||||||||||||
Hello Group Inc. | |||||
Unaudited Condensed Consolidated Balance Sheets | |||||
(All amounts in thousands, except share and per share data) | |||||
December 31 | December 31 | December 31 | |||
2021 | 2022 | 2022 | |||
RMB | RMB | US$ | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 5,570,563 | 5,018,129 | 727,560 | ||
Short-term deposits | 2,860,000 | 5,300,000 | 768,428 | ||
Restricted cash | - | 97,706 | 14,166 | ||
Short-term investments | - | 300,240 | 43,531 | ||
Accounts receivable, net of allowance for doubtful accounts of RMB15,127 and | 205,225 | 188,711 | 27,361 | ||
Amounts due from related parties | - | 55 | 8 | ||
Prepaid expenses and other current assets | 775,072 | 819,706 | 118,846 | ||
Total current assets | 9,410,860 | 11,724,547 | 1,699,900 | ||
Long-term deposits | 7,200,000 | 2,600,000 | 376,965 | ||
Long-term restricted cash | 76,471 | 82,766 | 12,000 | ||
Right-of-use assets, net | 257,934 | 115,520 | 16,749 | ||
Property and equipment, net | 180,664 | 172,984 | 25,080 | ||
Intangible assets, net | 27,320 | 22,203 | 3,219 | ||
Rental deposits | 19,204 | 20,737 | 3,007 | ||
Long-term investments | 820,006 | 893,988 | 129,616 | ||
Other non-current assets | 83,930 | 162,499 | 23,560 | ||
Deferred tax assets | 34,849 | 34,343 | 4,979 | ||
Total assets | 18,111,238 | 15,829,587 | 2,295,075 | ||
Liabilities and equity | |||||
Current liabilities | |||||
Accounts payable | 726,207 | 617,022 | 89,460 | ||
Deferred revenue | 539,967 | 484,775 | 70,286 | ||
Accrued expenses and other current liabilities | 911,050 | 797,504 | 115,627 | ||
Amounts due to related parties | 5,016 | 9,178 | 1,331 | ||
Lease liabilities due within one year | 162,950 | 88,352 | 12,810 | ||
Income tax payable | 125,773 | 68,765 | 9,970 | ||
Deferred consideration in connection with business acquisitions | 44,802 | 26,483 | 3,840 | ||
Convertible Senior Notes-current | - | 2,646,168 | 383,658 | ||
Total current liabilities | 2,515,765 | 4,738,247 | 686,982 | ||
Deferred tax liabilities | 213,384 | 22,011 | 3,191 | ||
Convertible senior notes | 4,565,292 | - | - | ||
Lease liabilities | 103,105 | 33,281 | 4,825 | ||
Other non-current liabilities | 128,095 | 105,410 | 15,283 | ||
Total liabilities | 7,525,641 | 4,898,949 | 710,281 | ||
Shareholder's equity (i) | 10,585,597 | 10,930,638 | 1,584,794 | ||
Total liabilities and shareholder's equity | 18,111,238 | 15,829,587 | 2,295,075 | ||
(i): As of December 31, 2022, the number of ordinary shares outstanding was 376,971,336. |
Hello Group Inc. | |||||||||||||
Unaudited Condensed Consolidated Statement of Cash Flows | |||||||||||||
(All amounts in thousands, except share and per share data) | |||||||||||||
Three months | Year | ||||||||||||
Ended December 31 | Ended December 31 | ||||||||||||
2021 | 2022 | 2022 | 2021 | 2022 | 2022 | ||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
Cash flows from operating activities: | |||||||||||||
Net (loss) income | (4,244,037) | 397,008 | 57,562 | (2,925,704) | 1,480,009 | 214,580 | |||||||
Adjustments to reconcile net income to net cash | |||||||||||||
Depreciation of property and equipment | 34,226 | 23,908 | 3,466 | 155,537 | 107,015 | 15,516 | |||||||
Amortization of intangible assets | 1,279 | 1,279 | 185 | 109,062 | 5,116 | 742 | |||||||
Share-based compensation | 126,576 | 89,944 | 13,040 | 475,771 | 401,484 | 58,209 | |||||||
Share of loss (income) on equity method | 14,045 | (20,040) | (2,906) | 8,084 | (11,073) | (1,605) | |||||||
Impairment loss on goodwill and intangible assets | 4,397,012 | - | - | 4,397,012 | - | - | |||||||
Gain on repurchase of convertible senior notes | - | - | - | - | (129,575) | (18,787) | |||||||
Gain or loss on long-term investments | (2,000) | - | - | 16,000 | 11,250 | 1,631 | |||||||
Gain on disposal of subsidiaries | - | - | - | (15,526) | - | - | |||||||
Cash received on distributions from equity method | - | - | - | - | 1,708 | 248 | |||||||
Gain or loss on disposal of property and equipment | (36) | 4 | 1 | 1,236 | (779) | (113) | |||||||
Provision of losses on receivable and other assets | (505) | (75) | (11) | (263) | (528) | (77) | |||||||
Changes in operating assets and liabilities: | |||||||||||||
Accounts receivable | 13,984 | 4,643 | 673 | (10,374) | 20,338 | 2,949 | |||||||
Prepaid expenses and other current assets | 52,504 | (36,784) | (5,333) | (151,162) | (52,928) | (7,674) | |||||||
Amounts due from related parties | - | (55) | (8) | - | (55) | (8) | |||||||
Rental deposits | 1,171 | - | - | (343) | 1,399 | 203 | |||||||
Deferred tax assets | (338) | 1,493 | 216 | (2,354) | 507 | 74 | |||||||
Other non-current assets | 42,125 | (15,907) | (2,306) | 34,075 | 60,913 | 8,832 | |||||||
Accounts payable | 11,053 | (8,992) | (1,304) | 30,475 | (115,384) | (16,729) | |||||||
Income tax payable | (39,285) | (6,081) | (882) | (110,716) | (57,004) | (8,265) | |||||||
Deferred revenue | 9,652 | 17,504 | 2,538 | 35,106 | (56,387) | (8,175) | |||||||
Accrued expenses and other current liabilities | 99,497 | 121,638 | 17,636 | 60,668 | (182,708) | (26,490) | |||||||
Amount due to related parties | (9,751) | (265) | (38) | (14,447) | 4,162 | 603 | |||||||
Deferred tax liabilities | 207,114 | (15,367) | (2,228) | 180,173 | (187,119) | (27,130) | |||||||
Share-based compensation liability | - | - | - | (678,153) | - | - | |||||||
Other non-current liabilities | (48,777) | (15,159) | (2,198) | (34,959) | (73,470) | (10,652) | |||||||
Net cash provided by operating activities | 665,509 | 538,696 | 78,103 | 1,559,198 | 1,226,891 | 177,882 | |||||||
Cash flows from investing activities: | |||||||||||||
Purchase of property and equipment | (19,201) | (10,053) | (1,458) | (95,323) | (80,445) | (11,663) | |||||||
Payment for long-term investments | (115,052) | (15,000) | (2,175) | (415,052) | (70,343) | (10,199) | |||||||
Purchase of short-term deposits | (400,000) | - | - | (4,976,688) | (1,700,000) | (246,477) | |||||||
Cash received on maturity of short-term deposits | 3,550,000 | 1,700,000 | 246,477 | 9,667,570 | 5,410,000 | 784,376 | |||||||
Payment for short term investments | - | (300,000) | (43,496) | - | (300,000) | (43,496) | |||||||
Cash received on investment income distribution | - | - | - | 5,610 | 3,523 | 511 | |||||||
Cash of disposed subsidiaries | - | - | - | (8,750) | - | - | |||||||
Cash received from sales of long-term investment | 20,000 | - | - | 20,000 | - | - | |||||||
Purchase of long-term deposits | (1,600,000) | (200,000) | (28,997) | (1,850,000) | (2,750,000) | (398,713) | |||||||
Cash received on maturity of long-term deposits | 200,000 | - | - | 200,000 | 1,200,000 | 173,984 | |||||||
Other investing activities | 569 | 7 | 1 | 2,975 | 3,110 | 451 | |||||||
Net cash provided by investing activities | 1,636,316 | 1,174,954 | 170,352 | 2,550,342 | 1,715,845 | 248,774 | |||||||
Cash flows from financing activities: | |||||||||||||
Deferred payment for business acquisition | (50) | - | - | (12,957) | (21,421) | (3,106) | |||||||
Proceeds from exercise of share options | 5 | 112 | 16 | 776 | 163 | 24 | |||||||
Payment in relation to the share repurchase program | - | (104,684) | (15,178) | (862,865) | (392,374) | (56,889) | |||||||
Repurchase of subsidiary's share options | (5,070) | (1,076) | (156) | (59,120) | (40,943) | (5,936) | |||||||
Dividends payment | - | - | - | (852,743) | (840,997) | (121,933) | |||||||
Payment for redemption of convertible bonds | - | - | - | - | (2,136,987) | (309,834) | |||||||
Net cash used in financing activities | (5,115) | (105,648) | (15,318) | (1,786,909) | (3,432,559) | (497,674) | |||||||
Effect of exchange rate changes | (12,972) | (30,706) | (4,451) | (41,669) | 41,390 | 6,001 | |||||||
Net increase (decrease) in cash and cash | 2,283,738 | 1,577,296 | 228,686 | 2,280,962 | (448,433) | (65,017) | |||||||
Cash, cash equivalents and restricted cash at the | 3,363,296 | 3,621,305 | 525,040 | 3,366,072 | 5,647,034 | 818,743 | |||||||
Cash, cash equivalents and restricted cash at the end of | 5,647,034 | 5,198,601 | 753,726 | 5,647,034 | 5,198,601 | 753,726 | |||||||
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 December 31, 2021 | Ended December 31, 2022 | Ended December 31, 2022 | ||||||||||||||
GAAP RMB | Impairment loss RMB | Share-based RMB | Non-GAAP RMB | GAAP RMB | Share-based RMB | Non-GAAP RMB | GAAP US$ | Share-based US$ | Non-GAAP US$ | |||||||
Cost of revenues | (2,191,520) | - | 3,393 | (2,188,127) | (1,916,050) | 1,707 | (1,914,343) | (277,801) | 247 | (277,554) | ||||||
Research and | (316,024) | - | 36,303 | (279,721) | (272,657) | 22,145 | (250,512) | (39,532) | 3,211 | (36,321) | ||||||
Sales and marketing | (659,604) | - | 11,024 | (648,580) | (407,075) | 8,480 | (398,595) | (59,020) | 1,229 | (57,791) | ||||||
General and | (165,257) | - | 75,856 | (89,401) | (142,492) | 57,612 | (84,880) | (20,659) | 8,353 | (12,306) | ||||||
Impairment loss on | (4,397,012) | 4,397,012 | - | - | - | - | - | - | - | - | ||||||
Cost and operating | (7,729,417) | 4,397,012 | 126,576 | (3,205,829) | (2,738,274) | 89,944 | (2,648,330) | (397,012) | 13,040 | (383,972) | ||||||
(Loss) income from | (4,016,630) | 4,397,012 | 126,576 | 506,958 | 409,226 | 89,944 | 499,170 | 59,333 | 13,040 | 72,373 | ||||||
Net (loss) income attributable to Hello | (4,242,718) | 4,397,012 | 126,576 | 280,870 | 397,994 | 89,944 | 487,938 | 57,705 | 13,040 | 70,745 | ||||||
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. | |||||||||||||||||
Year | Year | Year | ||||||||||||||||
Ended December 31, 2021 | Ended December 31, 2022 | Ended December 31, 2022 | ||||||||||||||||
GAAP RMB | Impairment RMB | Amortization of | Share- RMB | Tax (ii) RMB | Non-GAAP RMB | GAAP RMB | Share- RMB | Non-GAAP RMB | GAAP US$ | Share-based US$ | Non-GAAP US$ | |||||||
Cost of revenues | (8,383,431) | - | 51,853 | 17,941 | - | (8,313,637) | (7,421,419) | 14,195 | (7,407,224) | (1,076,005) | 2,058 | (1,073,947) | ||||||
Research and | (1,131,781) | - | 3,660 | 139,571 | - | (988,550) | (1,006,219) | 88,797 | (917,422) | (145,888) | 12,874 | (133,014) | ||||||
Sales and | (2,604,309) | - | 48,491 | 70,821 | - | (2,484,997) | (2,073,617) | 38,432 | (2,035,185) | (300,646) | 5,572 | (295,074) | ||||||
General and | (624,700) | - | - | 247,438 | - | (377,262) | (596,006) | 260,060 | (335,946) | (86,413) | 37,705 | (48,708) | ||||||
Impairment loss on | (4,397,012) | 4,397,012 | - | - | - | - | - | - | - | - | - | - | ||||||
Cost and | (17,141,233) | 4,397,012 | 104,004 | 475,771 | - | (12,164,446) | (11,097,261) | 401,484 | (10,695,777) | (1,608,952) | 58,209 | (1,550,743) | ||||||
(Loss) income from | (2,389,567) | 4,397,012 | 104,004 | 475,771 | - | 2,587,220 | 1,627,543 | 401,484 | 2,029,027 | 235,971 | 58,209 | 294,180 | ||||||
Net (loss) income attributable to | (2,913,708) | 4,397,012 | 104,004 | 475,771 | (26,002) | 2,037,077 | 1,484,283 | 401,484 | 1,885,767 | 215,200 | 58,209 | 273,409 | ||||||
(ii) Includes tax impacts related to the amortization of intangible assets from business acquisition. |
Hello Group Inc. | ||||||||||
Unaudited Condensed Segment Report | ||||||||||
(All amounts in thousands, except share and per share data) | ||||||||||
Three months | ||||||||||
Ended December 31, 2022 | ||||||||||
Momo | Tantan | QOOL | Total | Total | ||||||
RMB | RMB | RMB | RMB | US$ | ||||||
Net revenues: | ||||||||||
Live video service | 1,561,332 | 162,896 | - | 1,724,228 | 249,990 | |||||
Value-added service | 1,265,693 | 183,844 | - | 1,449,537 | 210,164 | |||||
Mobile marketing | 32,927 | - | - | 32,927 | 4,774 | |||||
Mobile games | 5,316 | - | - | 5,316 | 771 | |||||
Other services | 483 | - | 167 | 650 | 93 | |||||
Total net revenues | 2,865,751 | 346,740 | 167 | 3,212,658 | 465,792 | |||||
Cost and expenses (iii): | ||||||||||
Cost of revenues | (1,722,675) | (192,748) | (627) | (1,916,050) | (277,801) | |||||
Research and development | (200,740) | (71,917) | - | (272,657) | (39,532) | |||||
Sales and marketing | (307,166) | (98,209) | (1,700) | (407,075) | (59,020) | |||||
General and administrative | (131,844) | (7,899) | (2,749) | (142,492) | (20,659) | |||||
Total cost and expenses | (2,362,425) | (370,773) | (5,076) | (2,738,274) | (397,012) | |||||
Other operating (loss) income, net | (67,499) | 2,339 | 2 | (65,158) | (9,447) | |||||
Income (loss) from operations | 435,827 | (21,694) | (4,907) | 409,226 | 59,333 | |||||
Interest income | 87,799 | 253 | 66 | 88,118 | 12,776 | |||||
Interest expense | (10,955) | - | - | (10,955) | (1,588) | |||||
Income (loss) before income tax and | 512,671 | (21,441) | (4,841) | 486,389 | 70,521 | |||||
Income tax (expenses) benefits | (135,602) | 26,181 | - | (109,421) | (15,865) | |||||
Income (loss) before share of income | 377,069 | 4,740 | (4,841) | 376,968 | 54,656 | |||||
Share of income on equity method | 20,040 | - | - | 20,040 | 2,906 | |||||
Net income (loss) | 397,109 | 4,740 | (4,841) | 397,008 | 57,562 | |||||
(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | ||||||||||
Three months | ||||||||||
Ended December 31, 2022 | ||||||||||
Momo | Tantan | QOOL | Total | Total | ||||||
RMB | RMB | RMB | RMB | US$ | ||||||
Cost of revenues | 1,689 | 18 | - | 1,707 | 247 | |||||
Research and development | 15,907 | 6,238 | - | 22,145 | 3,211 | |||||
Sales and marketing | 8,473 | 7 | - | 8,480 | 1,229 | |||||
General and administrative | 57,350 | 262 | - | 57,612 | 8,353 | |||||
Total cost and expenses | 83,419 | 6,525 | - | 89,944 | 13,040 | |||||
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 December 31, 2022 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Income (loss) from operations | 435,827 | (21,694) | (4,907) | 409,226 | 59,333 | ||||
Share-based compensation | 83,419 | 6,525 | - | 89,944 | 13,040 | ||||
Non-GAAP income (loss) from | 519,246 | (15,169) | (4,907) | 499,170 | 72,373 | ||||
Net income (loss) | 397,109 | 4,740 | (4,841) | 397,008 | 57,562 | ||||
Share-based compensation | 83,419 | 6,525 | - | 89,944 | 13,040 | ||||
Non-GAAP net income (loss) | 480,528 | 11,265 | (4,841) | 486,952 | 70,602 | ||||
Hello Group Inc. | |||||||||||
Unaudited Condensed Segment Report | |||||||||||
(All amounts in thousands, except share and per share data) | |||||||||||
Three months | |||||||||||
Ended December 31, 2021 | |||||||||||
Momo | Tantan | QOOL | Unallocated[1] | Total | Total | ||||||
RMB | RMB | RMB | RMB | RMB | US$[2] | ||||||
Net revenues: | - | ||||||||||
Live video service | 1,947,958 | 200,827 | - | - | 2,148,785 | 337,191 | |||||
Value-added service | 1,239,351 | 236,382 | - | - | 1,475,733 | 231,575 | |||||
Mobile marketing | 25,369 | - | - | - | 25,369 | 3,981 | |||||
Mobile games | 19,294 | - | - | - | 19,294 | 3,028 | |||||
Other services | 3,667 | - | 1,381 | - | 5,048 | 792 | |||||
Total net revenues | 3,235,639 | 437,209 | 1,381 | - | 3,674,229 | 576,567 | |||||
Cost and expenses (iv): | |||||||||||
Cost of revenues | (1,962,718) | (228,290) | (512) | - | (2,191,520) | (343,897) | |||||
Research and development | (233,512) | (82,512) | - | - | (316,024) | (49,591) | |||||
Sales and marketing | (377,672) | (281,534) | (398) | - | (659,604) | (103,506) | |||||
General and administrative | (147,957) | (10,362) | (6,938) | - | (165,257) | (25,932) | |||||
Impairment loss on goodwill and intangible | - | - | - | (4,397,012) | (4,397,012) | (689,987) | |||||
Total cost and expenses | (2,721,859) | (602,698) | (7,848) | (4,397,012) | (7,729,417) | (1,212,913) | |||||
Other operating income | 35,532 | 3,023 | 3 | - | 38,558 | 6,051 | |||||
Income (loss) from operations | 549,312 | (162,466) | (6,464) | (4,397,012) | (4,016,630) | (630,295) | |||||
Interest income | 99,399 | 139 | 35 | - | 99,573 | 15,625 | |||||
Interest expense | (18,444) | - | - | - | (18,444) | (2,894) | |||||
Other gain or loss, net | 2,000 | - | - | - | 2,000 | 314 | |||||
Income (loss) before income tax and share | 632,267 | (162,327) | (6,429) | (4,397,012) | (3,933,501) | (617,250) | |||||
Income tax (expenses) benefits | (311,479) | 14,988 | - | - | (296,491) | (46,526) | |||||
Income (loss) before share of income on | 320,788 | (147,339) | (6,429) | (4,397,012) | (4,229,992) | (663,776) | |||||
Share of loss on equity method investments | (14,045) | - | - | - | (14,045) | (2,204) | |||||
Net income (loss) | 306,743 | (147,339) | (6,429) | (4,397,012) | (4,244,037) | (665,980) | |||||
(iv) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||||
Three months | |||||||||
Ended December 31, 2021 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Cost of revenues | 2,729 | 664 | - | 3,393 | 532 | ||||
Research and development | 19,569 | 16,734 | - | 36,303 | 5,697 | ||||
Sales and marketing | 10,997 | 27 | - | 11,024 | 1,730 | ||||
General and administrative | 75,808 | 48 | - | 75,856 | 11,903 | ||||
Total cost and expenses | 109,103 | 17,473 | - | 126,576 | 19,862 | ||||
[1] The impairment loss on goodwill and intangible assets is presented as an unallocated item in the segment information because our management |
[2] All translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00, the effective noon buying rate for December 30, 2021 as |
Hello Group Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data) | |||||||||||
Three months | |||||||||||
Ended December 31, 2021 | |||||||||||
Momo | Tantan | QOOL | Unallocated | Total | Total | ||||||
RMB | RMB | RMB | RMB | RMB | US$ | ||||||
Income (loss) from operations | 549,312 | (162,466) | (6,464) | (4,397,012) | (4,016,630) | (630,295) | |||||
Share-based compensation | 109,103 | 17,473 | - | - | 126,576 | 19,862 | |||||
Impairment loss on goodwill and | - | - | - | 4,397,012 | 4,397,012 | 689,987 | |||||
Non-GAAP income (loss) from | 658,415 | (144,993) | (6,464) | - | 506,958 | 79,554 | |||||
Net income (loss) | 306,743 | (147,339) | (6,429) | (4,397,012) | (4,244,037) | (665,980) | |||||
Share-based compensation | 109,103 | 17,473 | - | - | 126,576 | 19,862 | |||||
Impairment loss on goodwill and | - | - | - | 4,397,012 | 4,397,012 | 689,987 | |||||
Non-GAAP net income (loss) | 415,846 | (129,866) | (6,429) | - | 279,551 | 43,869 | |||||
Hello Group Inc. | |||||||||
Unaudited Condensed Segment Report | |||||||||
(All amounts in thousands, except share and per share data) | |||||||||
Year | |||||||||
Ended December 31, 2022 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Net revenues: | |||||||||
Live video service | 5,966,323 | 544,137 | - | 6,510,460 | 943,928 | ||||
Value-added service | 5,183,302 | 823,716 | - | 6,007,018 | 870,936 | ||||
Mobile marketing | 124,956 | - | - | 124,956 | 18,117 | ||||
Mobile games | 55,732 | - | - | 55,732 | 8,080 | ||||
Other services | 4,781 | - | 1,225 | 6,006 | 871 | ||||
Total net revenues | 11,335,094 | 1,367,853 | 1,225 | 12,704,172 | 1,841,932 | ||||
Cost and expenses (v): | |||||||||
Cost of revenues | (6,704,020) | (714,936) | (2,463) | (7,421,419) | (1,076,005) | ||||
Research and development | (737,380) | (268,839) | - | (1,006,219) | (145,888) | ||||
Sales and marketing | (1,346,692) | (721,889) | (5,036) | (2,073,617) | (300,646) | ||||
General and administrative | (547,798) | (33,234) | (14,974) | (596,006) | (86,413) | ||||
Total cost and expenses | (9,335,890) | (1,738,898) | (22,473) | (11,097,261) | (1,608,952) | ||||
Other operating income | 8,753 | 11,830 | 49 | 20,632 | 2,991 | ||||
Income (loss) from operations | 2,007,957 | (359,215) | (21,199) | 1,627,543 | 235,971 | ||||
Interest income | 368,051 | 544 | 284 | 368,879 | 53,482 | ||||
Interest expense | (83,530) | - | - | (83,530) | (12,111) | ||||
Other gain or loss, net | 118,325 | - | - | 118,325 | 17,156 | ||||
Income (loss) before income tax and | 2,410,803 | (358,671) | (20,915) | 2,031,217 | 294,498 | ||||
Income tax (expenses) benefits | (586,663) | 24,382 | - | (562,281) | (81,523) | ||||
Income (loss) before share of income | 1,824,140 | (334,289) | (20,915) | 1,468,936 | 212,975 | ||||
Share of income on equity method | 11,073 | - | - | 11,073 | 1,605 | ||||
Net income (loss) | 1,835,213 | (334,289) | (20,915) | 1,480,009 | 214,580 | ||||
(v) Share-based compensation was allocated in cost of revenues and operating expenses as follows: |
Year | |||||||||
Ended December 31, 2022 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Cost of revenues | 7,166 | 7,029 | - | 14,195 | 2,058 | ||||
Research and development | 67,659 | 21,138 | - | 88,797 | 12,874 | ||||
Sales and marketing | 38,202 | 230 | - | 38,432 | 5,572 | ||||
General and administrative | 259,669 | 391 | - | 260,060 | 37,705 | ||||
Total cost and expenses | 372,696 | 28,788 | - | 401,484 | 58,209 | ||||
Hello Group Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data) | |||||||||
Year | |||||||||
ended December 31, 2022 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Operating income (loss) | 2,007,957 | (359,215) | (21,199) | 1,627,543 | 235,971 | ||||
Share-based compensation | 372,696 | 28,788 | - | 401,484 | 58,209 | ||||
Non-GAAP operating income (loss) | 2,380,653 | (330,427) | (21,199) | 2,029,027 | 294,180 | ||||
Net income (loss) | 1,835,213 | (334,289) | (20,915) | 1,480,009 | 214,580 | ||||
Share-based compensation | 372,696 | 28,788 | - | 401,484 | 58,209 | ||||
Non-GAAP net income (loss) | 2,207,909 | (305,501) | (20,915) | 1,881,493 | 272,789 | ||||
Hello Group Inc. | |||||||||||
Unaudited Condensed Segment Report | |||||||||||
(All amounts in thousands, except share and per share data) | |||||||||||
Year | |||||||||||
Ended December 31, 2021 | |||||||||||
Momo | Tantan | QOOL | Unallocated | Total | Total | ||||||
RMB | RMB | RMB | RMB | RMB | US$ | ||||||
Net revenues: | |||||||||||
Live video service | 7,475,809 | 903,136 | - | - | 8,378,945 | 1,314,839 | |||||
Value-added service | 4,845,744 | 1,126,048 | - | - | 5,971,792 | 937,104 | |||||
Mobile marketing | 159,010 | - | - | - | 159,010 | 24,952 | |||||
Mobile games | 47,712 | - | - | - | 47,712 | 7,487 | |||||
Other services | 12,930 | - | 5,330 | - | 18,260 | 2,866 | |||||
Total net revenues | 12,541,205 | 2,029,184 | 5,330 | - | 14,575,719 | 2,287,248 | |||||
Cost and expenses (vi): | |||||||||||
Cost of revenues | (7,301,048) | (1,044,852) | (37,531) | - | (8,383,431) | (1,315,543) | |||||
Research and development | (828,688) | (303,093) | - | - | (1,131,781) | (177,601) | |||||
Sales and marketing | (1,420,130) | (1,180,146) | (4,033) | - | (2,604,309) | (408,673) | |||||
General and administrative | (619,922) | 18,401 | (23,179) | - | (624,700) | (98,029) | |||||
Impairment loss on goodwill and | - | - | - | (4,397,012) | (4,397,012) | (689,987) | |||||
Total cost and expenses | (10,169,788) | (2,509,690) | (64,743) | (4,397,012) | (17,141,233) | (2,689,833) | |||||
Other operating income | 138,884 | 37,029 | 34 | - | 175,947 | 27,610 | |||||
Income (loss) from operations | 2,510,301 | (443,477) | (59,379) | (4,397,012) | (2,389,567) | (374,975) | |||||
Interest income | 383,028 | 1,091 | 160 | - | 384,279 | 60,302 | |||||
Interest expense | (73,776) | - | - | - | (73,776) | (11,577) | |||||
Other gain or loss, net | (16,000) | - | - | - | (16,000) | (2,511) | |||||
Income (loss) before income tax | 2,803,553 | (442,386) | (59,219) | (4,397,012) | (2,095,064) | (328,761) | |||||
Income tax (expenses) benefits | (844,987) | 22,431 | - | - | (822,556) | (129,077) | |||||
Income (loss) before share of | 1,958,566 | (419,955) | (59,219) | (4,397,012) | (2,917,620) | (457,838) | |||||
Share of loss on equity method | (8,084) | - | - | - | (8,084) | (1,269) | |||||
Net income (loss) | 1,950,482 | (419,955) | (59,219) | (4,397,012) | (2,925,704) | (459,107) | |||||
(vi) Share-based compensation was allocated in cost of revenues and operating expenses as follows: |
Year | |||||||||
Ended December 31, 2021 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Cost of revenues | 10,541 | 7,400 | - | 17,941 | 2,815 | ||||
Research and development | 97,828 | 41,743 | - | 139,571 | 21,902 | ||||
Sales and marketing | 48,154 | 22,667 | - | 70,821 | 11,113 | ||||
General and administrative | 314,216 | (66,778) | - | 247,438 | 38,828 | ||||
Total cost and expenses | 470,739 | 5,032 | - | 475,771 | 74,658 | ||||
Hello Group Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data) | |||||||||||
Year | |||||||||||
Ended December 31, 2021 | |||||||||||
Momo | Tantan | QOOL | Unallocated | Total | Total | ||||||
RMB | RMB | RMB | RMB | RMB | US$ | ||||||
Income (loss) from operations | 2,510,301 | (443,477) | (59,379) | (4,397,012) | (2,389,567) | (374,975) | |||||
Share-based compensation | 470,739 | 5,032 | - | - | 475,771 | 74,658 | |||||
Impairment loss on goodwill and | - | - | - | 4,397,012 | 4,397,012 | 689,987 | |||||
Amortization of intangible assets | - | 104,004 | - | - | 104,004 | 16,320 | |||||
Non-GAAP income (loss) from | 2,981,040 | (334,441) | (59,379) | - | 2,587,220 | 405,990 | |||||
Net income (loss) | 1,950,482 | (419,955) | (59,219) | (4,397,012) | (2,925,704) | (459,107) | |||||
Share-based compensation | 470,739 | 5,032 | - | - | 475,771 | 74,658 | |||||
Impairment loss on goodwill and | - | - | - | 4,397,012 | 4,397,012 | 689,987 | |||||
Amortization of intangible assets | - | 104,004 | - | - | 104,004 | 16,320 | |||||
Tax impacts | - | (26,002) | - | - | (26,002) | (4,080) | |||||
Non-GAAP net income (loss) | 2,421,221 | (336,921) | (59,219) | - | 2,025,081 | 317,778 | |||||
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SOURCE Hello Group Inc.