BEIJING, Aug. 26, 2021 /PRNewswire/ — Hello Group Inc. (NASDAQ: MOMO) (the “Company”), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the second quarter of 2021.
Second Quarter of 2021 Highlights
- Net revenues decreased by 5.1% year over year to RMB3,671.7 million (US$568.7 million*) in the second quarter of 2021.
- Net income attributable to Hello Group Inc. increased to RMB464.2 million (US$71.9 million) in the second quarter of 2021 from RMB456.4 million in the same period of 2020.
- Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB551.0 million (US$85.3 million) in the second quarter of 2021, from RMB669.8 million in the same period of 2020.
- Diluted net income per American Depositary Share (“ADS”) was RMB2.15 (US$0.33) in the second quarter of 2021, compared to RMB2.11 in the same period of 2020.
- Non-GAAP diluted net income per ADS (note 1) was RMB2.54 (US$0.39) in the second quarter of 2021, compared to RMB3.05 in the same period of 2020.
- Monthly Active Users (“MAU”) on the Company application were 115.6 million in June 2021, compared to 111.5 million in June 2020.
- Total paying users of our live video service and value-added service, without double counting the overlap and including 3.1 million paying users of Tantan Limited (“Tantan”), were 12.4 million for the second quarter of 2021, compared to 12.8 million for the second quarter of 2020, which included 3.9 million paying users of Tantan.
First Half of 2021 Highlights
- Net revenues decreased 4.3% year over year to RMB7,142.3 million (US$1,106.2 million) for the first half of 2021.
- Net income attributable to Hello Group Inc. was RMB925.8 million (US$143.4 million) for the first half of 2021, compared with RMB995.3 million during the same period of 2020.
- Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,184.6 million (US$183.5 million) for the first half of 2021, compared with RMB1,406.0 million during the same period of 2020.
- Diluted net income per ADS was RMB4.29 (US$0.66) for the first half of 2021, compared with RMB4.57 during the same period of 2020.
- Non-GAAP diluted net income per ADS (note 1) was RMB5.45 (US$0.84) for the first half of 2021, compared with RMB6.39 during the same period of 2020.
“The second quarter of 2021 was a solid quarter with decent financial results and progress on all of our strategic priorities.” commented Li Wang, CEO of Hello Group. “The fundamentals of the core Momo as a social platform continued to strengthen. At the same time revenue performance and structure showed solid improvements. The healthy and productive core business gives us important leverage to plow new grounds and build longer term drivers for the group.”
Second Quarter of 2021 Financial Results
- 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 RMB6.4566 to US$1.00, the effective noon buying rate for June 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.
Net revenues
Total net revenues were RMB3,671.7 million (US$568.7 million) in the second quarter of 2021, a decrease of 5.1% from RMB3,868.3 million in the second quarter of 2020.
Live video service revenues were RMB2,101.3 million (US$325.5 million) in the second quarter of 2021, a decrease of 19.3% from RMB2,602.9 million during the same period of 2020. The decrease was primarily due to our structural reform on the Company’s core live video business, which was used to revive the long tail content ecosystem. The decrease was partially offset by the growth from Tantan’s live video service revenues, which were RMB216.5 million (US$33.5 million) in the second quarter of 2021, compared to RMB191.7 million in the same period of 2020.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,507.3 million (US$233.4 million) in the second quarter of 2021, an increase of 25.2% from RMB1,204.3 million during the same period of 2020. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more innovative products and operational ideas launched, and more paying scenarios introduced to enhance the social entertainment experience of Momo users, and to a lesser extent, the increase in the virtual gift revenues of new applications. The increase was partially offset by the decrease in the membership subscription revenues of Tantan, due to the decrease of paying users of Tantan.
Mobile marketing revenues were RMB51.6 million (US$8.0 million) in the second quarter of 2021, an increase of 35.9% from RMB38.0 million during the same period of 2020. The increase in mobile marketing revenues was primarily caused by the increased demand from brand marketers.
Mobile games revenues were RMB9.2 million (US$1.4 million) in the second quarter of 2021, a decrease of 20.6% from RMB11.6 million in the second quarter of 2020. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.
Net revenues from the Momo segment decreased from RMB3,340.7 million in the second quarter of 2020 to RMB3,157.5 million (US$489.0 million) in the second quarter of 2021, primarily due to the decrease in net revenues from live video service, partially offset by the increase in net revenues from value-added service. Net revenues from the Tantan segment decreased from RMB517.2 million in the second quarter of 2020 to RMB513.5 million (US$79.5 million) in the second quarter of 2021, which was mainly due to the decrease in the membership subscription revenues.
Cost and expenses
Cost and expenses were RMB3,075.6 million (US$476.4 million) in the second quarter of 2021, a decrease of 2.3% from RMB3,146.9 million in the second quarter of 2020. The decrease was primarily attributable to: (a) a decrease in share-based compensation expenses due to the fair value remeasurement of liability classified options granted to Tantan’s founders; (b) a decrease in infrastructure-related spending, such as server depreciation costs; (c) a decrease in commission fees paid to payment channels. These decreases were partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service, an increase in revenue sharing with broadcasters related to Tantan’s live video service, and an increase in marketing and promotional expenses to promote our core live video services.
Non-GAAP cost and expenses (note 1) were RMB2,980.1 million (US$461.6 million) in the second quarter of 2021, an increase of 1.9% from RMB2,923.7 million during the same period of 2020.
Other operating income
Other operating income was RMB90.3 million (US$14.0 million) in the second quarter of 2021, a decrease from RMB91.3 million during the second quarter of 2020. The other operating income mainly consisted of government incentives.
Income from operations
Income from operations was RMB686.3 million (US$106.3 million) in the second quarter of 2021, compared to RMB812.7 million during the same period of 2020. Income from operations of the Momo segment was RMB711.3 million (US$110.2 million) in the second quarter of 2021, which decreased from RMB945.3 million in the second quarter of 2020. Loss from operations of the Tantan segment was RMB11.9 million (US$1.8 million) in the second quarter of 2021, compared to loss from operations of RMB125.6 million in the second quarter of 2020.
Non-GAAP income from operations (note 1) was RMB781.9 million (US$121.1 million) in the second quarter of 2021, compared to RMB1,035.8 million during the same period of 2020. Non-GAAP income from operations of the Momo segment was RMB835.8 million (US$129.5 million) in the second quarter of 2021, which decreased from RMB1,102.6 million in the second quarter of 2020. Non-GAAP loss from operations of the Tantan segment was RMB40.9 million (US$6.3 million) in the second quarter of 2021, compared to non-GAAP loss from operations of RMB62.4 million in the second quarter of 2020.
Income tax expenses
Income tax expenses were RMB291.5 million (US$45.1 million) in the second quarter of 2021, decreasing from RMB443.6 million in the second quarter of 2020. The decrease in income tax expenses was mainly due to (a) the lower profit in the second quarter of 2021; and (b) less payment of withholding income tax on dividends distributed by our wholly-foreign owned enterprise (“WFOE”) in China to our offshore entity in the second quarter of 2021. The dividends of RMB1,300.0 million (US$201.3 million) and withholding income tax of RMB130.0 million (US$20.1 million) were paid in the second quarter of 2021.
Net income
Net income was RMB461.5 million (US$71.5 million) in the second quarter of 2021, compared to RMB455.5 million during the same period of 2020. Net income from the Momo segment was RMB481.3 million (US$74.5 million) in the second quarter of 2021, which decreased from RMB586.7 million in the second quarter of 2020. Net loss from the Tantan segment was RMB6.7 million (US$1.0 million) in the second quarter of 2021, compared to net loss of RMB124.3 million in the second quarter of 2020.
Non-GAAP net income (note 1) was RMB548.3 million (US$84.9 million) in the second quarter of 2021, compared to RMB668.9 million during the same period of 2020. Non-GAAP net income from the Momo segment was RMB605.8 million (US$93.8 million) in the second quarter of 2021, which decreased from RMB744.0 million in the second quarter of 2020. Non-GAAP net loss of the Tantan segment was RMB44.5 million (US$6.9 million) in the second quarter of 2021, compared to non-GAAP net loss of RMB70.8 million in the second quarter of 2020.
Net income attributable to Hello Group Inc.
Net income attributable to Hello Group Inc. was RMB464.2 million (US$71.9 million) in the second quarter of 2021, compared to RMB456.4 million during the same period of 2020.
Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB551.0 million (US$85.3 million) in the second quarter of 2021, compared to RMB669.8 million during the same period of 2020.
Net income per ADS
Diluted net income per ADS was RMB2.15 (US$0.33) in the second quarter of 2021, compared to RMB2.11 in the second quarter of 2020.
Non-GAAP diluted net income per ADS (note 1) was RMB2.54 (US$0.39) in the second quarter of 2021, compared to RMB3.05 in the second quarter of 2020.
Cash and cash flow
As of June 30, 2021, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB15,450.0 million (US$2,392.9 million), compared to RMB16,482.3 million as of December 31, 2020. Net cash used in operating activities in the second quarter of 2021 was RMB167.8 million (US$26.0 million), compared to a net cash provided by operating activities of RMB807.3 million in the second quarter of 2020. The decrease in net cash provided by operating activities was mainly due to the cash payment of RMB678.2 million (US$105.0 million) we made to Tantan’s founders to settle the previously granted liability-classified share options upon their termination of services with Tantan in the second quarter of 2021.
First Half of 2021 Financial Results
Net revenues for the first half of 2021 were RMB7,142.3 million (US$1,106.2 million), a decrease of 4.3% from RMB7,462.3 million in the same period of 2020.
Net income attributable to Hello Group Inc. was RMB925.8 million (US$143.4 million) for the first half of 2021, compared to RMB995.3 million during the same period of 2020.
Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,184.6 million (US$183.5 million) for the first half of 2021, compared to RMB1,406.0 million during the same period of 2020.
Diluted net income per ADS was RMB4.29 (US$0.66) during the first half of 2021, compared to RMB4.57 in the same period of 2020.
Non-GAAP diluted net income per ADS (note 1) was RMB5.45 (US$0.84) during the first half of 2021, compared to RMB6.39 in the same period of 2020.
Net cash provided by operating activities was RMB333.8 million (US$51.7 million) during the first half of 2021, compared to RMB1,350.7 million in the same period of 2020.
Recent Developments
Execution of share repurchase program
On September 3, 2020, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$300 million of its shares over the next 12 months. As of August 26, 2021, the Company has repurchased 13.46 million ADSs for US$173.4 million on the open market under this program, at an average purchase price of US$12.87 per ADS.
Business Outlook
For the third quarter of 2021, the Company expects total net revenues to be between RMB3.65 billion to RMB3.75 billion, representing a decrease of 3.1% to 0.4% 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 use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP cost and operating expenses, income (loss) from operations, net income (loss)，net income attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation, amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions. A limitation of using these non-GAAP financial measures is that share-based compensation, amortization of intangible assets from business acquisitions and tax impacts related to the amortization of intangible assets from business acquisitions have been and will continue to be for the foreseeable future a significant recurring expense in our results of operations. We compensate for these limitations by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.
Conference Call
Hello Group’s management will host an earnings conference call on Thursday, August 26, 2021, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on August 26, 2021).
All participants must preregister online prior to the call to receive the dial-in details. Once preregistration has been complete, participants will receive dial-in numbers, direct event passcode, and a unique registrant ID.
PRE-REGISTER LINK http://apac.directeventreg.com/registration/event/5771017
To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your registrant ID, and you will join the conference instantly.
A telephone replay of the call will be available after the conclusion of the conference call through 9:00 a.m. U.S. Eastern Time, September 3, 2021. The dial-in details for the replay are as follows:
International: +61-2-8199-0299U.S. Toll Free: +1-855-452-5696Passcode: 5771017
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Company’s website at http://ir.immomo.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. It 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: +86-10-5731-0538Email: [email protected]
Christensen
In ChinaMr. Eric Yuan Phone: +86-10-5900-1548 E-mail: [email protected]
In US Ms. Linda BergkampPhone: +1-480-614-3004 Email: [email protected]
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 third quarter of 2021, 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 second quarter of 2021 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the third quarter of 2021 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
First half year
Ended June 30
2020
2021
RMB
US$
Net revenues:
Live video service
2,602,876
2,101,332
325,455
4,934,880
4,063,427
629,345
Value-added service
1,204,320
1,507,258
233,445
2,380,074
2,962,771
458,875
Mobile marketing
37,964
51,601
7,992
95,119
90,318
13,988
Mobile games
11,564
9,182
1,422
24,255
20,366
3,154
Other services
11,528
2,341
362
28,008
5,428
841
Total net revenues
3,868,252
3,671,714
568,676
7,462,336
7,142,310
1,106,203
Cost and expenses:
Cost of revenues
(2,036,305)
(2,070,329)
(320,653)
(3,913,221)
(4,008,574)
(620,849)
Research and development
(279,002)
(268,325)
(41,558)
(541,161)
(554,818)
(85,930)
Sales and marketing
(651,500)
(650,236)
(100,709)
(1,361,308)
(1,263,809)
(195,739)
General and administrative
(180,061)
(86,747)
(13,435)
(357,310)
(264,709)
(40,998)
Total cost and expenses
(3,146,868)
(3,075,637)
(476,355)
(6,173,000)
(6,091,910)
(943,516)
Other operating income
91,329
90,268
13,981
117,448
116,168
17,992
Income from operations
812,713
686,345
106,302
1,406,784
1,166,568
180,679
Interest income
108,536
94,448
14,628
239,359
191,142
29,604
Interest expense
(20,121)
(18,302)
(2,835)
(39,940)
(36,663)
(5,678)
Other gain or loss, net
–
(10,500)
(1,626)
(6,000)
(18,000)
(2,788)
Income before income tax and share of income on equity method investments
901,128
751,991
116,469
1,600,203
1,303,047
201,817
Income tax expenses
(443,633)
(291,509)
(45,149)
(606,524)
(382,907)
(59,305)
Income before share of income on equity method investments
457,495
460,482
71,320
993,679
920,140
142,512
Share of (loss) income on equity method investments
(1,967)
1,042
161
(440)
2,303
357
455,528
461,524
71,481
993,239
922,443
142,869
Less: net loss attributable to non-controlling interest
(872)
(2,636)
(408)
(2,067)
(3,376)
(523)
Net income attributable to the shareholders of Hello Group Inc.
456,400
464,160
71,889
995,306
925,819
143,392
Net income per share attributable to ordinary shareholders
Basic
1.09
1.13
0.17
2.38
2.25
0.35
Diluted
1.05
1.07
2.29
2.15
0.33
Weighted average shares used in calculating net income per ordinary share
417,559,984
411,540,714
417,427,113
411,753,583
452,500,168
449,020,572
452,915,745
448,597,242
Unaudited Condensed Consolidated Statement of Comprehensive Income
Net income
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment
8,818
(28,396)
(4,398)
7,951
(32,198)
(4,987)
Comprehensive income
464,346
433,128
67,083
1,001,190
890,245
137,882
Less: comprehensive loss attributed to the non-controlling interest
(1,423)
(6,162)
(954)
(6,992)
(5,783)
(896)
Comprehensive income attributable to Hello Group Inc.
465,769
439,290
68,037
1,008,182
896,028
138,778
Unaudited Condensed Consolidated Balance Sheets
December 31
June 30
Assets
Current assets
Cash and cash equivalents
3,363,942
2,204,455
341,427
Short-term deposits
7,566,250
7,365,886
1,140,830
Restricted cash
2,130
2,133
330
Accounts receivable, net of allowance for doubtful accounts of RMB15,390 and RMB15,954 as of December 31, 2020 and June 30, 2021, respectively
200,831
217,063
33,619
Prepaid expenses and other current assets
613,696
733,792
113,650
Total current assets
11,746,849
10,523,329
1,629,856
Long-term deposits
5,550,000
5,800,000
898,306
Long-term restricted cash
77,479
12,000
Right-of-use assets, net
278,175
223,901
34,678
Property and equipment, net
265,765
224,964
34,842
Intangible assets, net
687,211
607,411
94,076
Rental deposits
21,794
22,386
3,467
Long-term investments
454,996
733,689
113,634
Other non-current assets
94,868
100,054
15,496
Deferred tax assets
32,495
33,729
5,224
Goodwill
4,088,403
4,045,777
626,611
Total assets
23,220,556
22,392,719
3,468,190
Liabilities and equity
Current liabilities
Accounts payable
699,394
752,474
116,545
Deferred revenue
511,617
517,921
80,216
Accrued expenses and other current liabilities
854,835
752,881
116,606
Amount due to related parties
19,462
12,906
1,999
Lease liabilities due within one year
132,793
129,044
19,986
Income tax payable
236,490
140,111
21,700
Deferred consideration in connection with business acquisitions
62,149
45,443
7,038
Total current liabilities
2,516,740
2,350,780
364,090
Deferred tax liabilities
171,803
151,853
23,519
Convertible senior notes
4,658,966
4,617,465
715,154
Share-based compensation liability
875,616
Lease liabilities
136,436
99,858
15,466
Other non-current liabilities
25,666
135,050
20,916
Total liabilities
8,385,227
7,355,006
1,139,145
Shareholder’s equity (i)
14,835,329
15,037,713
2,329,045
Total liabilities and shareholder’s equity
(i): As of June 30, 2021, the number of ordinary shares outstanding was 411,632,190.
Unaudited Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment
52,210
40,072
6,206
104,591
82,615
12,795
Amortization of intangible assets
40,288
36,108
5,592
80,170
73,061
11,316
Share-based compensation
184,100
60,658
9,395
352,627
205,915
31,891
Share of loss (income) on equity method investments
1,967
(1,042)
(161)
440
(2,303)
(357)
Loss on long-term investments
10,500
1,626
6,000
18,000
2,788
Gain on subsidiary deconsolidation
(6,676)
Gain on disposal of subsidiaries
(15,526)
(2,405)
Loss on disposal of property and equipment
(1)
(1,101)
(171)
(1,079)
(167)
Provision of losses on receivable and other assets
1,060
169
26
406
564
87
Cash received on investment income distribution
1,153
Changes in operating assets and liabilities:
Accounts receivable
39,725
(15,162)
(2,348)
1,746
(22,742)
(3,522)
42,671
(31,941)
(4,947)
43,833
(118,618)
(18,372)
Amount due from a related party
230
2,353
363
(1,951)
(302)
190
(592)
(92)
435
(627)
(97)
2,473
(1,234)
(191)
3,411
36,720
5,687
18,251
49,050
7,597
63,598
48,889
7,572
(16,475)
47,822
7,407
44,712
(119,269)
(18,472)
65,056
(96,378)
(14,927)
(12,249)
16,464
2,550
(33,272)
16,085
2,491
(59,987)
23,189
3,592
(214,230)
(95,783)
(14,835)
(16,217)
600
93
(11,233)
(6,556)
(1,015)
Deferred tax liability
(10,072)
(9,027)
(1,398)
(20,043)
(18,265)
(2,829)
Share-based compensation liability
(678,153)
(105,033)
(24,522)
(28,877)
(4,472)
(19,852)
(24,517)
(3,797)
Net cash provided by (used in) operating activities
807,250
(167,783)
(25,986)
1,350,746
333,809
51,699
Cash flows from investing activities:
Purchase of property and equipment
(45,803)
(20,020)
(3,101)
(83,970)
(45,203)
(7,001)
Payment for long-term investments
(300,000)
(46,464)
(4,500)
Purchase of short-term deposits
(4,941,858)
(1,566,688)
(242,649)
(8,241,858)
(2,476,688)
(383,590)
Cash received on maturity of short-term deposits
8,306,434
2,089,618
323,641
11,285,574
2,658,912
411,813
Payment for short-term investments
(10,000)
Cash received from sales of short-term investment
10,000
5,610
869
Cash of disposed subsidiaries
(8,750)
(1,355)
Purchase of long-term deposits
(2,800,000)
(250,000)
(38,720)
Other investing activities
15
2,390
370
(776)
2,393
371
Net cash provided by (used in) investing activities
518,788
(53,450)
(8,278)
154,470
(413,726)
(64,077)
Cash flows from financing activities:
Deferred payment for business acquisition
(18,355)
(12,907)
(1,999)
Proceeds from exercise of share options
1
310
48
Repurchase of ordinary shares
(103,072)
(15,964)
(106,151)
(16,441)
Repurchase of subsidiary’s share options
(2,780)
(431)
(5,561)
(861)
Dividends payment
(1,123,983)
(852,743)
(132,073)
Net cash used in financing activities
(1,142,337)
(958,285)
(148,420)
(977,052)
(151,326)
Effect of exchange rate changes
(5,332)
(28,952)
(4,484)
1,961
(25,036)
(3,877)
Net increase (decrease) in cash and cash equivalents
178,369
(1,208,470)
(187,168)
364,840
(1,082,005)
(167,581)
Cash, cash equivalents and restricted cash at the beginning of period
2,799,214
3,492,537
540,925
2,612,743
3,366,072
521,338
Cash, cash equivalents and restricted cash at the end of period
2,977,583
2,284,067
353,757
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.
Ended June 30, 2020
Ended June 30, 2021
GAAP
Amortization of intangible assets from business acquisitions
Tax impacts
Non-GAAP
(ii)
18,929
2,804
(2,014,572)
17,256
4,201
(2,048,872)
2,673
651
(317,329)
Research and development
2,404
49,985
(226,613)
1,461
33,965
(232,899)
226
5,261
(36,071)
17,702
43,123
(590,675)
16,137
14,588
(619,511)
2,499
2,259
(95,951)
General and administrative
88,188
(91,873)
7,904
(78,843)
1,224
(12,211)
Cost and operating expenses
39,035
(2,923,733)
34,854
(2,980,125)
5,398
(461,562)
1,035,848
781,857
121,095
Net income attributable to Hello Group Inc.
(9,759)
669,776
(8,714)
550,958
(1,351)
85,331
Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures-continued.
Amortization of intangible assets from business acquisitions
37,574
9,773
(3,865,874)
34,567
7,925
(3,966,082)
5,354
1,227
(614,268)
4,772
92,745
(443,644)
3,660
74,174
(476,984)
567
11,488
(73,875)
35,138
90,197
(1,235,973)
32,326
32,144
(1,199,339)
5,007
4,978
(185,754)
159,912
(197,398)
91,672
(173,037)
14,198
(26,800)
77,484
(5,742,889)
70,553
(5,815,442)
10,928
(900,697)
Income from operations
1,836,895
1,443,036
223,498
Net income attributable to Hello Group Inc.
(19,371)
1,406,046
(17,639)
1,184,648
(2,732)
183,479
(ii) Includes tax impacts related to the amortization of intangible assets from business acquisition.
Unaudited Condensed Segment Report
Ended June 30, 2021
Momo
Tantan
QOOL
Total
1,884,821
216,511
1,210,220
297,038
1,706
635
3,157,530
513,549
Cost and expenses (iii):
(1,796,504)
(266,197)
(7,628)
(195,371)
(72,954)
(378,938)
(270,266)
(1,032)
(140,905)
59,205
(5,047)
(2,511,718)
(550,212)
(13,707)
65,445
24,798
25
Income (loss) from operations
711,257
(11,865)
(13,047)
94,112
291
45
Income (loss) before income tax and share of income on equity method investments
776,567
(11,574)
(13,002)
Income tax (expenses) benefits
(296,344)
4,835
Income (loss) before share of income on equity method investments
480,223
(6,739)
Share of income on equity method investments
Net income (loss)
481,265
(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
2,640
1,561
29,663
4,302
12,971
1,617
79,308
(71,404)
124,582
(63,924)
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
Amortization of intangible assets from business acquisitions
Non-GAAP income (loss) from operations
835,839
(40,935)
Non-GAAP net income (loss)
605,847
(44,523)
548,322
84,923
US$[1]
2,411,223
191,653
368,413
878,804
325,516
170,460
5,373
1,637
1,163
10,365
1,633
3,340,718
517,169
547,516
Cost and expenses (iv):
(1,792,442)
(232,445)
(11,418)
(288,220)
(202,774)
(76,228)
(39,490)
(337,196)
(314,293)
(11)
(92,214)
(154,161)
(19,828)
(6,072)
(25,486)
(2,486,573)
(642,794)
(17,501)
(445,410)
91,190
139
12,927
945,335
(125,625)
(6,997)
115,033
107,776
689
71
15,362
(2,848)
1,032,990
(124,936)
(6,926)
127,547
(444,278)
645
(62,792)
588,712
(124,291)
64,755
Share of loss on equity method investments
(278)
586,745
64,477
(iv) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
3,396
397
36,670
13,315
7,075
38,905
4,218
6,104
78,250
7,280
2,658
12,482
157,221
24,221
26,058
[1] All translations from RMB to U.S. dollars are made at a rate of RMB7.0651 to US$1.00, the effective noon buying rate for June 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board.
5,525
1,102,556
(62,369)
(4,339)
146,616
(1,381)
743,966
(70,794)
(4,268)
668,904
94,679
3,595,710
467,717
2,349,235
613,536
3,674
1,754
6,059,303
1,081,253
Cost and expenses (v):
(3,453,399)
(547,186)
(7,989)
(400,701)
(154,117)
(705,767)
(556,976)
(1,066)
(300,356)
45,084
(9,437)
(4,860,223)
(1,213,195)
(18,492)
85,406
30,736
1,284,486
(101,206)
(16,712)
190,455
596
91
1,420,278
(100,610)
(16,621)
(389,946)
7,039
1,030,332
(93,571)
Share of income on equity method investments
1,032,635
(v) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
4,965
2,960
60,188
13,986
25,877
6,267
160,792
(69,120)
251,822
(45,907)
ended June 30, 2021
Operating income (loss)
Amortization of intangible assets from business acquisitions
Non-GAAP operating income (loss)
1,536,308
(76,560)
1,284,457
(86,564)
1,181,272
182,956
4,737,168
197,712
698,487
1,678,907
701,167
336,878
13,463
3,433
7,358
20,650
3,964
6,542,807
898,879
1,056,225
Cost and expenses (vi):
(3,528,959)
(364,723)
(19,539)
(553,880)
(386,674)
(154,487)
(76,596)
(731,560)
(629,714)
(34)
(192,681)
(297,296)
(47,508)
(12,506)
(50,574)
(4,944,489)
(1,196,432)
(32,079)
(873,731)
117,309
16,624
1,715,627
(297,553)
(11,290)
199,118
237,054
2,161
144
33,879
(5,653)
(849)
1,906,741
(295,392)
(11,146)
226,495
(612,490)
5,966
(85,848)
1,294,251
(289,426)
140,647
(62)
1,293,811
140,585
(vi) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
ended June 30, 2020
9,007
766
1,383
63,472
29,273
13,127
84,346
5,851
12,767
133,234
21,401
5,277
22,634
290,059
57,291
49,911
10,966
2,005,686
(162,778)
(6,013)
259,995
(2,742)
1,583,870
(174,022)
(5,869)
1,403,979
198,720
View original content:https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-second-quarter-of-2021-301363441.html
SOURCE Hello Group Inc.
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