Momo Announces Unaudited Financial Results for the Second Quarter of 2020

Published

BEIJING, Sept. 3, 2020 /PRNewswire/ -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"), a leading mobile social networking platform in China, today announced its unaudited financial results for the second quarter of 2020.

Second Quarter of 2020 Highlights

  • Net revenues decreased by 6.8% year over year to RMB3,868.3 million (US$547.5 million*) in the second quarter of 2020.
  • Net income attributable to Momo Inc. decreased to RMB456.4 million (US$64.6 million) in the second quarter of 2020 from RMB731.8 million in the same period of 2019.
  • Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB669.8 million (US$94.8 million) in the second quarter of 2020, from RMB1,242.5 million in the same period of 2019.
  • Diluted net income per American Depositary Share ("ADS") was RMB2.11 (US$0.30) in the second quarter of 2020, compared to RMB3.33 in the same period of 2019.
  • Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.43) in the second quarter of 2020, compared to RMB5.60 in the same period of 2019.
  • Monthly Active Users ("MAU") on Momo application were 111.5 million in June 2020, compared to 113.5 million in June 2019.
  • Total paying users of our live video service and value-added service, without double counting the overlap and including 3.9 million paying users of Tantan Limited ("Tantan"), were 12.8 million for the second quarter of 2020, compared to 11.8 million for the second quarter of 2019, which included 3.2 million paying users of Tantan.

First Half of 2020 Highlights

  • Net revenues decreased 5.2% year over year to RMB7,462.3 million (US$1,056.2 million) for the first half of 2020.
  • Net income attributable to Momo Inc. was RMB995.3 million (US$140.9 million) for the first half of 2020, compared with RMB1,021.1 million during the same period of 2019.
  • Non-GAAP net income attributable to Momo Inc. (note 1) was RMB1,406.0 million (US$199.0 million) for the first half of 2020, compared with RMB2,152.8 million during the same period of 2019.
  • Diluted net income per ADS was RMB4.57 (US$0.65) for the first half of 2020, compared with RMB4.71 during the same period of 2019.
  • Non-GAAP diluted net income per ADS (note 1) was RMB6.39 (US$0.90) for the first half of 2020, compared with RMB9.75 during the same period of 2019.

* 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 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.

CEO statement

"The second quarter of 2020 was a busy quarter for us. With things gradually coming back to normal on the traffic side, starting from the second quarter of 2020, our teams have stepped up efforts to push toward our long term strategic goals." commented Yan Tang, Chairman and CEO of Momo. "I am glad to see that Tantan has reached a breakthrough with its testing of live video service. With the strength coming from Tantan and the value-added service on the core Momo, we can now focus more on driving structural changes to the core live broadcasting business so that it can grow healthily and steadily in the new macro environment."

Second Quarter of 2020 Financial Results

Net revenues

Total net revenues were RMB3,868.3 million (US$547.5 million) in the second quarter of 2020, a decrease of 6.8% from RMB4,152.6 million in the second quarter of 2019.

Live video service revenues were RMB2,602.9 million (US$368.4 million) in the second quarter of 2020, a decrease of 16% from RMB3,099.9 million during the same period of 2019. The decrease was primarily due to the impact of COVID-19 adversely affecting the sentiment of our paying users, especially among the top of the pyramid paying users. Meanwhile, Tantan has been accelerating the testing of its live video service since the middle of April, and live video service revenues from Tantan were 191.7 million (US$27.1 million) in the second quarter of 2020.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,204.3 million (US$170.5 million) in the second quarter of 2020, an increase of 27% from RMB948.4 million during the same period of 2019. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more innovative features launched and more paying scenarios introduced to enhance the social entertainment experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB38.0 million (US$5.4 million) in the second quarter of 2020, a decrease of 50% from RMB76.2 million during the same period of 2019. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers as well as our strategy to underweight the line in terms of resource allocation.

Mobile games revenues were RMB11.6 million (US$1.6 million) in the second quarter of 2020, a decrease of 50% from RMB23.2 million in the second quarter of 2019. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Net revenues from Momo segment decreased from RMB3,865.4 million in the second quarter of 2019 to RMB3,340.7 million (US$472.8 million) in the second quarter of 2020, primarily due to the decrease in net revenues from live video service, partially offset by the increase in net revenues from value-added service. Net revenues from Tantan segment increased from RMB284.8 million in the second quarter of 2019 to RMB517.2 million (US$73.2 million) in the second quarter of 2020, which was mainly due to the increase in net revenues from live video service.

Cost and expenses

Cost and expenses were RMB3,146.9 million (US$445.4 million) in the second quarter of 2020, a decrease of 7.1% from RMB3,386.8 million in the second quarter of 2019. The decrease was primarily attributable to: (a) a decrease in share-based compensation expenses due to the related expense from the options granted to Tantan's founders in the amount of RMB323.7 million charged in the second quarter of 2019 when the necessary performance conditions were satisfied; (b) a decrease in revenue sharing with broadcasters related to our live video service. The decrease was partially offset by an increase in marketing and promotional expenses to attract users on Tantan, and an increase in revenue sharing with virtual gift recipients for our virtual gift service.

Non-GAAP cost and expenses (note 1) were RMB2,923.7 million (US$413.8 million) in the second quarter of 2020, an increase of 2.0% from RMB2,866.7 million during the same period of 2019.

Other operating income

Other operating income was RMB91.3 million (US$12.9 million) in the second quarter of 2020, a decrease from RMB161.9 million during the second quarter of 2019. The decrease was mainly due to less government incentives received in the second quarter of 2020.

Income from operations

Income from operations was RMB812.7 million (US$115.0 million) in the second quarter of 2020, compared to RMB927.7 million during the same period of 2019. Income from operations of Momo segment was RMB945.3 million (US$133.8 million) in the second quarter of 2020, decreasing from RMB1,354.4 million in the second quarter of 2019. Loss from operations of Tantan segment was RMB125.6 million (US$17.8 million) in the second quarter of 2020, compared to loss from operations of RMB431.4 million in the second quarter of 2019.

Non-GAAP income from operations (note 1) was RMB1,035.8 million (US$146.6 million) in the second quarter of 2020, compared to RMB1,447.9 million during the same period of 2019. Non-GAAP income from operations of Momo segment was RMB1,102.6 million (US$156.1 million) in the second quarter of 2020, decreasing from RMB1,488.5 million in the second quarter of 2019. Non-GAAP loss from operations of Tantan segment was RMB62.4 million (US$8.8 million) in the second quarter of 2020, compared to non-GAAP loss from operations of RMB47.9 million in the second quarter of 2019.

Income tax expenses

Income tax expenses were RMB443.6 million (US$62.8 million) in the second quarter of 2020, increasing from RMB283.9 million in the second quarter of 2019. The increase in income tax expenses was mainly due to the payment of withholding income tax of 10% on dividends distributed by our wholly-foreign owned enterprise ("WFOE") in China to our offshore entity in the second quarter of 2020. The dividends of RMB2,200.0 million (US$311.4 million) and withholding income tax of RMB220.0 million (US$31.1 million) were paid in the second quarter of 2020.

Net income

Net income was RMB455.5 million (US$64.5 million) in the second quarter of 2020, compared to RMB731.1 million during the same period of 2019. Net income from Momo segment was RMB586.7 million (US$83.0 million) in the second quarter of 2020, decreasing from RMB1,149.5 million in the second quarter of 2019. Net loss from Tantan segment was RMB124.3 million (US$17.6 million) in the second quarter of 2020, compared to net loss of RMB423.2 million in the second quarter of 2019.

Non-GAAP net income (note 1) was RMB668.9 million (US$94.7 million) in the second quarter of 2020, compared to RMB1,241.8 million during the same period of 2019. Non-GAAP net income from Momo segment was RMB744.0 million (US$105.3 million) in the second quarter of 2020, decreasing from RMB1,283.6 million in the second quarter of 2019. Non-GAAP net loss of Tantan segment was RMB70.8 million (US$10.0 million) in the second quarter of 2020, compared to non-GAAP net loss of RMB49.1 million in the second quarter of 2019.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB456.4 million (US$64.6 million) in the second quarter of 2020, compared to RMB731.8 million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB669.8 million (US$94.8 million) in the second quarter of 2020, compared to RMB1,242.5 million during the same period of 2019.

Net income per ADS

Diluted net income per ADS was RMB2.11 (US$0.30) in the second quarter of 2020, compared to RMB3.33 in the second quarter of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.43) in the second quarter of 2020, compared to RMB5.60 in the second quarter of 2019.

Cash and cash flow

As of June 30, 2020, Momo's cash, cash equivalents, short-term deposits and long-term deposits totaled RMB15,376.5 million (US$2,176.4 million), compared to RMB15,225.3 million as of December 31, 2019. Net cash provided by operating activities in the second quarter of 2020 was RMB807.3 million (US$114.3 million), compared to RMB1,422.0 million in the second quarter of 2019.

First Half of 2020 Financial Results

Net revenues for the first half of 2020 were RMB7,462.3 million (US$1,056.2 million), a decrease of 5.2% from RMB7,875.5 million in the same period of 2019.

Net income attributable to Momo Inc. was RMB995.3 million (US$140.9 million) for the first half of 2020, compared to RMB1,021.1 million during the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB1,406.0 million (US$199.0 million) for the first half of 2020, compared to RMB2,152.8 million during the same period of 2019.

Diluted net income per ADS was RMB4.57 (US$0.65) during the first half of 2020, compared to RMB4.71 in the same period of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB6.39 (US$0.90) during the first half of 2020, compared to RMB9.75 in the same period of 2019.

Net cash provided by operating activities was RMB1,350.7 million (US$191.2 million) during the first half of 2020, compared to RMB2,597.9 million in the same period of 2019.

Recent Development

On September 3, 2020, Momo's board of directors authorized a share repurchase program under which the Company may repurchase up to US$300 million of its shares over the next 12 months.

The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices, in 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. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The timing and conditions of the share repurchases will be subject to various factors, including the requirements under Rule 10b-18 and Rule 10b5-1 promulgated pursuant to the Securities Exchange Act of 1934, as amended. The Company plans to fund repurchases from its existing cash balance.

Business Outlook

For the third quarter of 2020, the Company expects total net revenues to be between RMB3.7 billion to RMB3.8 billion, representing a decrease of 16.9% to 14.6% year over year. This forecast considers the potential impact of the COVID-19 outbreak and reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change, particularly as to the potential impact of the COVID-19 on the economy in China.

Note 1: Non-GAAP measures

To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions.

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

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

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

Conference Call

Momo's management will host an earnings conference call on Thursday, September 3, 2020, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on September 3, 2020).

All participants must preregister online prior to the call to receive the dial-in details. Once preregistration has been complete, participants will receive dial-in numbers, direct event passcode, and a unique registrant ID.

PRE-REGISTER LINK http://apac.directeventreg.com/registration/event/9767454

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 11, 2020. The dial-in details for the replay are as follows:

International:

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

9767454

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Momo's website at http://ir.immomo.com.

About Momo

We are a leading player in China's online social and entertainment space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates interactions based on location, interests and a variety of recreational activities including live talent shows, short videos, social games as well as other video- and audio-based interactive experiences, such as live chats and mobile karaoke experience. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application for the younger generation. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people.

For investor and media inquiries, please contact:

Momo Inc. Investor Relations Phone: +86-10-5731-0538Email: ir@immomo.com  

Christensen In ChinaMr. Eric Yuan Phone: +86-10-5900-1548 E-mail: Eyuan@christensenir.com  

In US Ms. Linda BergkampPhone: +1-480-614-3004 Email: lbergkamp@christensenir.com

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the third quarter of 2020, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the second quarter of 2020 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the third quarter of 2020 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the impact of the COVID-19 to Momo's business operations and the economy in China, the market price of Momo's stock prevailing from time to time, the nature of other investment opportunities presented to Momo from time to time, Momo's cash flows from operations, general economic conditions, and other factors.  For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.          

All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.

 

 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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

Three months

First half year

ended June 30

ended June 30

2019

2020

2020

2019

2020

2020

RMB

RMB

US$

RMB

RMB

US$

Net revenues:

Live video service

3,099,887

2,602,876

368,413

5,789,300

4,934,880

698,487

Value-added service

948,394

1,204,320

170,460

1,852,243

2,380,074

336,878

Mobile marketing

76,208

37,964

5,373

156,937

95,119

13,463

Mobile games

23,240

11,564

1,637

62,248

24,255

3,433

Other services

4,901

11,528

1,633

14,821

28,008

3,964

Total net revenues

4,152,630

3,868,252

547,516

7,875,549

7,462,336

1,056,225

Cost and expenses:

Cost of revenues

(2,063,863)

(2,036,305)

(288,220)

(3,937,437)

(3,913,221)

(553,880)

Research and development

(251,658)

(279,002)

(39,490)

(501,089)

(541,161)

(76,596)

Sales and marketing

(570,609)

(651,500)

(92,214)

(1,194,457)

(1,361,308)

(192,681)

General and administrative

(500,660)

(180,061)

(25,486)

(1,103,256)

(357,310)

(50,574)

Total cost and expenses

(3,386,790)

(3,146,868)

(445,410)

(6,736,239)

(6,173,000)

(873,731)

Other operating income

161,901

91,329

12,927

172,855

117,448

16,624

Income from operations

927,741

812,713

115,033

1,312,165

1,406,784

199,118

Interest income

100,175

108,536

15,362

193,953

239,359

33,879

Interest expense

(19,315)

(20,121)

(2,848)

(38,304)

(39,940)

(5,653)

Impairment loss on long-term    investments

-

-

-

(4,500)

(6,000)

(849)

Income before income tax    and share of income on    equity method   investments

1,008,601

901,128

127,547

1,463,314

1,600,203

226,495

Income tax expenses

(283,868)

(443,633)

(62,792)

(447,519)

(606,524)

(85,848)

Income before share of    income on equity method    investments

724,733

457,495

64,755

1,015,795

993,679

140,647

Share of income (loss) on    equity method investments

6,375

(1,967)

(278)

1,871

(440)

(62)

Net income

731,108

455,528

64,477

1,017,666

993,239

140,585

Less: net loss attributable to    non-controlling interest

(669)

(872)

(123)

(3,428)

(2,067)

(293)

Net income attributable to    the shareholders of    Momo Inc.

731,777

456,400

64,600

1,021,094

995,306

140,878

 

Net income per share    attributable to ordinary    shareholders

Basic

1.76

1.09

0.15

2.46

2.38

0.34

Diluted

1.67

1.05

0.15

2.36

2.29

0.32

Weighted average shares    used in calculating net    income per ordinary share

Basic

414,769,943

417,559,984

417,559,984

414,370,874

417,427,113

417,427,113

Diluted

450,480,301

452,500,168

452,500,168

449,410,610

452,915,745

452,915,745

 

 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

First half year

ended June 30

ended June 30

2019

2020

2020

2019

2020

2020

RMB

RMB

US$

RMB

RMB

US$

Net income

731,108

455,528

64,477

1,017,666

993,239

140,585

Other comprehensive income    (loss), net of tax

Foreign currency translation    adjustment

40,899

8,818

1,248

(32,082)

7,951

1,125

Comprehensive income

772,007

464,346

65,725

985,584

1,001,190

141,710

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

2,271

(1,423)

(201)

(2,963)

(6,992)

(990)

Comprehensive income    attributable to Momo Inc.

769,736

465,769

65,926

988,547

1,008,182

142,700

 

 

 

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

June 30

June 30

2019

2020

2020

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

2,612,743

2,977,583

421,450

Short-term deposits

12,312,585

9,298,879

1,316,171

Accounts receivable, net of allowance for doubtful accounts of RMB 12,209 and RMB10,240 as of December 31, 2019 and June 30, 2020, respectively

265,155

254,710

36,052

Amount due from a related party

4,382

2,029

287

Prepaid expenses and other current assets

599,000

554,848

78,535

Total current assets

15,793,865

13,088,049

1,852,495

Long-term deposits

300,000

3,100,000

438,777

Right-of-use assets, net

190,552

144,313

20,426

Property and equipment, net

346,345

327,855

46,405

Intangible assets

890,303

821,860

116,327

Rental deposits

25,028

24,838

3,516

Long-term investments

495,905

492,578

69,720

Other non-current assets

44,009

71,998

10,191

Deferred tax assets

37,064

34,591

4,896

Goodwill

4,360,610

4,424,985

626,316

Total assets

22,483,681

22,531,067

3,189,069

Liabilities and equity

Current liabilities

Accounts payable

714,323

692,865

98,071

Deferred revenue

503,461

470,187

66,551

Accrued expenses and other current liabilities

985,873

785,415

111,169

Amount due to related parties

29,606

18,373

2,601

Lease liabilities due within one year

135,169

122,427

17,328

Income tax payable

153,976

219,032

31,002

Deferred consideration in connection with business acquisitions

84,346

67,293

9,525

Total current liabilities

2,606,754

2,375,592

336,247

Deferred tax liabilities

222,576

205,465

29,082

Convertible senior notes

4,954,352

5,035,982

712,797

Share-based compensation liability

902,047

931,401

131,831

Lease liabilities

56,498

21,226

3,004

Other non-current liabilities

22,672

38,662

5,472

Total liabilities

8,764,899

8,608,328

1,218,433

Shareholder's equity (i)

13,718,782

13,922,739

1,970,636

Total liabilities and shareholder's equity

22,483,681

22,531,067

3,189,069

(i): As of June 30, 2020, the number of ordinary shares issued and outstanding was 418,121,042.

 

 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

Three months

First half year

ended June 30

ended June 30

2019

2020

2020

2019

2020

2020

RMB

RMB

US$

RMB

RMB

US$

Cash flows from operating activities:

Net income

731,108

455,528

64,477

1,017,666

993,239

140,585

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

Depreciation of property and equipment

48,236

52,210

7,390

96,636

104,591

14,804

Amortization of intangible assets

39,020

40,288

5,702

77,615

80,170

11,347

Share-based compensation

482,537

184,100

26,058

1,075,611

352,627

49,911

Share of (income) loss on equity method    investments

(6,375)

1,967

278

(1,871)

440

62

Impairment loss on long-term investments

-

-

-

4,500

6,000

849

Gain on subsidiary deconsolidation

-

-

-

-

(6,676)

(945)

Gain on disposal of property and equipment

(338)

(1)

-

(334)

(1)

-

Provision of allowance for doubtful accounts

9,309

1,060

150

9,309

406

57

Cash received on investment income distribution

-

-

-

-

1,153

163

Changes in operating assets and liabilities:

Accounts receivable

25,712

39,725

5,623

435,126

1,746

247

Prepaid expenses and other current assets

19,385

42,671

6,040

1,196

43,833

6,204

Amount due from a related party

(271)

230

33

(271)

2,353

333

Rental deposits

(1,078)

363

51

(2,395)

190

27

Deferred tax assets

570

435

62

26,107

2,473

350

Other non-current assets

(18,796)

3,411

483

12,643

18,251

2,583

Accounts payable

55,573

63,598

9,002

88,088

(16,475)

(2,332)

Income tax payable

64,570

44,712

6,329

(6,988)

65,056

9,208

Deferred revenue

(48,764)

(12,249)

(1,734)

(29,922)

(33,272)

(4,709)

Accrued expenses and other current liabilities

43,872

(59,987)

(8,491)

(141,623)

(214,230)

(30,322)

Amount due to related parties

(16,752)

(16,217)

(2,295)

(42,717)

(11,233)

(1,590)

Deferred tax liability

(9,755)

(10,072)

(1,426)

(25,297)

(20,043)

(2,837)

Other non-current liabilities

4,201

(24,522)

(3,471)

4,794

(19,852)

(2,810)

Net cash provided by operating activities

1,421,964

807,250

114,261

2,597,873

1,350,746

191,185

Cash flows from investing activities:

Purchase of property and equipment

(41,682)

(45,803)

(6,483)

(94,480)

(83,970)

(11,885)

Proceeds from disposal of property and equipment

505

15

2

510

17

2

Payment for long-term investments

(12,000)

-

-

(24,000)

(4,500)

(637)

Prepayment of long-term investments

(15,000)

-

-

(15,000)

-

-

Cash dividend received

-

-

-

-

233

33

Cash outflow due to subsidiary deconsolidation

-

-

-

-

(1,026)

(145)

Purchase of short-term deposits

(6,230,000)

(4,941,858)

(699,475)

(9,715,005)

(8,241,858)

(1,166,559)

Cash received on maturity of short-term deposits

4,860,025

8,306,434

1,175,699

7,865,030

11,285,574

1,597,369

Payment for short-term investments

(40,000)

-

-

(250,000)

(10,000)

(1,415)

Cash received from sales of short-term investment

60,000

-

-

160,000

10,000

1,415

Purchase of long-term deposits

-

(2,800,000)

(396,314)

-

(2,800,000)

(396,314)

Net cash (used in) provided by investing activities

(1,418,152)

518,788

73,429

(2,072,945)

154,470

21,864

Cash flows from financing activities:

Deferred payment for business acquisition

(73,681)

(18,355)

(2,598)

(378,748)

(18,355)

(2,598)

Proceeds from exercise of share options

32

1

-

115

1

-

Deferred payment of purchase of property and    equipment

-

-

-

(94)

-

-

Dividends payment

(877,346)

(1,123,983)

(159,089)

(877,346)

(1,123,983)

(159,089)

Net cash used in financing activities

(950,995)

(1,142,337)

(161,687)

(1,256,073)

(1,142,337)

(161,687)

Effect of exchange rate changes

4,584

(5,332)

(756)

(1,146)

1,961

278

Net (decrease) increase in cash and cash    equivalents

(942,599)

178,369

25,247

(732,291)

364,840

51,640

Cash and cash equivalents at the beginning of period

2,678,342

2,799,214

396,203

2,468,034

2,612,743

369,810

Cash and cash equivalents at the end of period

1,735,743

2,977,583

421,450

1,735,743

2,977,583

421,450

 

 

 

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

1.

Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures.

Three months

Three months

Three months

ended June 30, 2019

ended June 30, 2020

ended June 30, 2020

 

 

GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-based compensation

RMB

Tax impacts

(ii)RMB

Non-GAAP

RMB

GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-based compensation

RMB

Tax impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

US$

Amortization of intangible assets from business acquisitions

US$

Share-based compensation

US$

Tax impacts

(ii)

US$

Non-GAAP

US$

Cost of revenues

(2,063,863)

18,227

5,447

-

(2,040,189)

(2,036,305)

18,929

2,804

-

(2,014,572)

(288,220)

2,679

397

-

(285,144)

Research and   development

(251,658)

2,315

44,523

-

(204,820)

(279,002)

2,404

49,985

-

(226,613)

(39,490)

340

7,075

-

(32,075)

Sales and marketing

(570,609)

17,045

51,293

-

(502,271)

(651,500)

17,702

43,123

-

(590,675)

(92,214)

2,506

6,104

-

(83,604)

General and    administrative

(500,660)

-

381,274

-

(119,386)

(180,061)

-

88,188

-

(91,873)

(25,486)

-

12,482

-

(13,004)

Cost and operating    expenses

(3,386,790)

37,587

482,537

-

(2,866,666)

(3,146,868)

39,035

184,100

-

(2,923,733)

(445,410)

5,525

26,058

-

(413,827)

Income from operations

927,741

37,587

482,537

-

1,447,865

812,713

39,035

184,100

-

1,035,848

115,033

5,525

26,058

-

146,616

Net income attributable to    Momo Inc.

731,777

37,587

482,537

(9,397)

1,242,504

456,400

39,035

184,100

(9,759)

669,776

64,600

5,525

26,058

(1,381)

94,802

 

 

 

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

1.

Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures-continued.

First half year

First half year

First half year

ended June 30, 2019

ended June 30, 2020

ended June 30, 2020

 

 

GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-based compensation

RMB

Tax impacts

(ii)RMB

Non-GAAP

RMB

GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-based compensation

RMB

Tax impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

US$

Amortization of intangible assets from business acquisitions

US$

Share-based compensation

US$

Tax impacts

(ii)

US$

Non-GAAP

US$

Cost of revenues

(3,937,437)

36,248

9,633

-

(3,891,556)

(3,913,221)

37,574

9,773

-

(3,865,874)

(553,880)

5,318

1,383

-

(547,179)

Research and    development

(501,089)

4,604

84,253

-

(412,232)

(541,161)

4,772

92,745

-

(443,644)

(76,596)

675

13,127

-

(62,794)

Sales and marketing

(1,194,457)

33,898

90,745

-

(1,069,814)

(1,361,308)

35,138

90,197

-

(1,235,973)

(192,681)

4,973

12,767

-

(174,941)

General and    administrative

(1,103,256)

-

890,980

-

(212,276)

(357,310)

-

159,912

-

(197,398)

(50,574)

-

22,634

-

(27,940)

Cost and operating    expenses

(6,736,239)

74,750

1,075,611

-

(5,585,878)

(6,173,000)

77,484

352,627

-

(5,742,889)

(873,731)

10,966

49,911

-

(812,854)

Income from    operations

1,312,165

74,750

1,075,611

-

2,462,526

1,406,784

77,484

352,627

-

1,836,895

199,118

10,966

49,911

-

259,995

Net income attributable    to Momo Inc.

1,021,094

74,750

1,075,611

(18,688)

2,152,767

995,306

77,484

352,627

(19,371)

1,406,046

140,878

10,966

49,911

(2,742)

199,013

(ii)            Includes tax impacts related to the amortization of intangible assets from business acquisition. There is no tax impact related to share-based compensation.

 

 

 

Momo Inc.

Unaudited Condensed Segment Report

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

Three months

  ended June 30, 2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

2,411,223

191,653

-

2,602,876

368,413

Value-added service

878,804

325,516

-

1,204,320

170,460

Mobile marketing

37,964

-

-

37,964

5,373

Mobile games

11,564

-

-

11,564

1,637

Other services

1,163

-

10,365

11,528

1,633

Total net revenues

3,340,718

517,169

10,365

3,868,252

547,516

Cost and expenses (iii):

Cost of revenues

(1,792,442)

(232,445)

(11,418)

(2,036,305)

(288,220)

Research and development

(202,774)

(76,228)

-

(279,002)

(39,490)

Sales and marketing

(337,196)

(314,293)

(11)

(651,500)

(92,214)

General and administrative

(154,161)

(19,828)

(6,072)

(180,061)

(25,486)

Total cost and expenses

(2,486,573)

(642,794)

(17,501)

(3,146,868)

(445,410)

Other operating income

91,190

-

139

91,329

12,927

Income (loss) from operations

945,335

(125,625)

(6,997)

812,713

115,033

Interest income

107,776

689

71

108,536

15,362

Interest expense

(20,121)

-

-

(20,121)

(2,848)

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

1,032,990

(124,936)

(6,926)

901,128

127,547

Income tax (expenses) benefits

(444,278)

645

-

(443,633)

(62,792)

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

588,712

(124,291)

(6,926)

457,495

64,755

Share of loss on equity method    investments

(1,967)

-

-

(1,967)

(278)

Net income (loss)

586,745

(124,291)

(6,926)

455,528

64,477

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

Three months

ended June 30, 2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

3,396

(592)

-

2,804

397

Research and development

36,670

13,315

-

49,985

7,075

Sales and marketing

38,905

4,218

-

43,123

6,104

General and administrative

78,250

7,280

2,658

88,188

12,482

Total cost and expenses

157,221

24,221

2,658

184,100

26,058

 

 

 

Momo Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data)

Three months

ended June 30, 2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

945,335

(125,625)

(6,997)

812,713

115,033

Share-based compensation

157,221

24,221

2,658

184,100

26,058

Amortization of intangible assets from    business acquisitions

-

39,035

-

39,035

5,525

Non-GAAP operating income (loss)

1,102,556

(62,369)

(4,339)

1,035,848

146,616

Net income (loss)

586,745

(124,291)

(6,926)

455,528

64,477

Share-based compensation

157,221

24,221

2,658

184,100

26,058

Amortization of intangible assets from    business acquisitions

-

39,035

-

39,035

5,525

Tax impacts

-

(9,759)

-

(9,759)

(1,381)

Non-GAAP net income (loss)

743,966

(70,794)

(4,268)

668,904

94,679

 

 

 

Momo Inc.

Unaudited Condensed Segment Report

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

Three months

ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$(2)

Net revenues:

Live video service

3,099,887

-

-

3,099,887

451,549

Value-added service

663,601

284,793

-

948,394

138,149

Mobile marketing

76,208

-

-

76,208

11,101

Mobile games

23,240

-

-

23,240

3,385

Other services

2,452

-

2,449

4,901

715

Total net revenues

3,865,388

284,793

2,449

4,152,630

604,899

Cost and expenses (iv):

Cost of revenues

(1,970,672)

(89,362)

(3,829)

(2,063,863)

(300,636)

Research and development

(181,866)

(69,792)

-

(251,658)

(36,658)

Sales and marketing

(356,578)

(212,628)

(1,403)

(570,609)

(83,119)

General and administrative

(142,384)

(344,434)

(13,842)

(500,660)

(72,929)

Total cost and expenses

(2,651,500)

(716,216)

(19,074)

(3,386,790)

(493,342)

Other operating income

140,535

-

21,366

161,901

23,584

Income (loss) from operations

1,354,423

(431,423)

4,741

927,741

135,141

Interest income

97,118

3,024

33

100,175

14,592

Interest expense

(19,315)

-

-

(19,315)

(2,814)

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

1,432,226

(428,399)

4,774

1,008,601

146,919

Income tax (expenses) benefits

(289,101)

5,233

-

(283,868)

(41,350)

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

1,143,125

(423,166)

4,774

724,733

105,569

Share of income on equity method investments

6,375

-

-

6,375

929

Net income (loss)

1,149,500

(423,166)

4,774

731,108

106,498

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

Three months

ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

4,870

577

-

5,447

793

Research and development

27,587

16,936

-

44,523

6,486

Sales and marketing

47,381

3,912

-

51,293

7,472

General and administrative

54,235

324,479

2,560

381,274

55,539

Total cost and expenses

134,073

345,904

2,560

482,537

70,290

(2) All translations from RMB to U.S. dollars are made at a rate of RMB 6.865 to US$1.00, the effective noon buying rate for June 28, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

 

 

Momo Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data)

Three months

ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

1,354,423

(431,423)

4,741

927,741

135,141

Share-based compensation

134,073

345,904

2,560

482,537

70,290

Amortization of intangible assets from business acquisitions

-

37,587

-

37,587

5,476

Non-GAAP operating income (loss)

1,488,496

(47,932)

7,301

1,447,865

210,907

Net income (loss)

1,149,500

(423,166)

4,774

731,108

106,498

Share-based compensation

134,073

345,904

2,560

482,537

70,290

Amortization of intangible assets from business acquisitions

-

37,587

-

37,587

5,476

Tax impacts

-

(9,397)

-

(9,397)

(1,369)

Non-GAAP net income (loss)

1,283,573

(49,072)

7,334

1,241,835

180,895

 

 

 

Momo Inc.

Unaudited Condensed Segment Report

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

First half year

  ended June 30, 2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

4,737,168

197,712

-

4,934,880

698,487

Value-added service

1,678,907

701,167

-

2,380,074

336,878

Mobile marketing

95,119

-

-

95,119

13,463

Mobile games

24,255

-

-

24,255

3,433

Other services

7,358

-

20,650

28,008

3,964

Total net revenues

6,542,807

898,879

20,650

7,462,336

1,056,225

Cost and expenses (v):

Cost of revenues

(3,528,959)

(364,723)

(19,539)

(3,913,221)

(553,880)

Research and development

(386,674)

(154,487)

-

(541,161)

(76,596)

Sales and marketing

(731,560)

(629,714)

(34)

(1,361,308)

(192,681)

General and administrative

(297,296)

(47,508)

(12,506)

(357,310)

(50,574)

Total cost and expenses

(4,944,489)

(1,196,432)

(32,079)

(6,173,000)

(873,731)

Other operating income

117,309

-

139

117,448

16,624

Income (loss) from operations

1,715,627

(297,553)

(11,290)

1,406,784

199,118

Interest income

237,054

2,161

144

239,359

33,879

Interest expense

(39,940)

-

-

(39,940)

(5,653)

Impairment loss on long-term    investments

(6,000)

-

-

(6,000)

(849)

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

1,906,741

(295,392)

(11,146)

1,600,203

226,495

Income tax (expenses) benefits

(612,490)

5,966

-

(606,524)

(85,848)

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

1,294,251

(289,426)

(11,146)

993,679

140,647

Share of loss on equity method    investments

(440)

-

-

(440)

(62)

Net income (loss)

1,293,811

(289,426)

(11,146)

993,239

140,585

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

First half year

ended June 30, 2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

9,007

766

-

9,773

1,383

Research and development

63,472

29,273

-

92,745

13,127

Sales and marketing

84,346

5,851

-

90,197

12,767

General and administrative

133,234

21,401

5,277

159,912

22,634

Total cost and expenses

290,059

57,291

5,277

352,627

49,911

 

 

 

Momo Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data)

First half year

ended June 30, 2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

1,715,627

(297,553)

(11,290)

1,406,784

199,118

Share-based compensation

290,059

57,291

5,277

352,627

49,911

Amortization of intangible assets    from business acquisitions

-

77,484

-

77,484

10,966

Non-GAAP operating income    (loss)

2,005,686

(162,778)

(6,013)

1,836,895

259,995

Net income (loss)

1,293,811

(289,426)

(11,146)

993,239

140,585

Share-based compensation

290,059

57,291

5,277

352,627

49,911

Amortization of intangible assets    from business acquisitions

-

77,484

-

77,484

10,966

Tax impacts

-

(19,371)

-

(19,371)

(2,742)

Non-GAAP net income (loss)

1,583,870

(174,022)

(5,869)

1,403,979

198,720

 

 

 

Momo Inc.

Unaudited Condensed Segment Report

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

First half year

  ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

5,789,300

-

-

5,789,300

843,307

Value-added service

1,272,103

580,140

-

1,852,243

269,810

Mobile marketing

156,937

-

-

156,937

22,860

Mobile games

62,248

-

-

62,248

9,067

Other services

4,009

-

10,812

14,821

2,159

Total net revenues

7,284,597

580,140

10,812

7,875,549

1,147,203

Cost and expenses (vi):

Cost of revenues

(3,740,710)

(188,218)

(8,509)

(3,937,437)

(573,552)

Research and development

(366,139)

(134,950)

-

(501,089)

(72,992)

Sales and marketing

(719,536)

(468,549)

(6,372)

(1,194,457)

(173,992)

General and administrative

(256,648)

(824,399)

(22,209)

(1,103,256)

(160,707)

Total cost and expenses

(5,083,033)

(1,616,116)

(37,090)

(6,736,239)

(981,243)

Other operating income

151,489

-

21,366

172,855

25,179

Income (loss) from operations

2,353,053

(1,035,976)

(4,912)

1,312,165

191,139

Interest income

187,976

5,915

62

193,953

28,252

Interest expense

(38,304)

-

-

(38,304)

(5,580)

Impairment loss on long-term    investments

(4,500)

-

-

(4,500)

(655)

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

2,498,225

(1,030,061)

(4,850)

1,463,314

213,156

Income tax (expenses) benefits

(456,704)

9,185

-

(447,519)

(65,188)

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

2,041,521

(1,020,876)

(4,850)

1,015,795

147,968

Share of income on equity method    investments

1,871

-

-

1,871

273

Net income (loss)

2,043,392

(1,020,876)

(4,850)

1,017,666

148,241

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

First half year

ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

8,476

1,157

-

9,633

1,403

Research and development

49,300

34,953

-

84,253

12,273

Sales and marketing

82,855

7,890

-

90,745

13,218

General and administrative

93,726

792,163

5,091

890,980

129,786

Total cost and expenses

234,357

836,163

5,091

1,075,611

156,680

 

 

 

Momo Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data)

First half year

ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

2,353,053

(1,035,976)

(4,912)

1,312,165

191,139

Share-based compensation

234,357

836,163

5,091

1,075,611

156,680

Amortization of intangible assets    from business acquisitions

-

74,750

-

74,750

10,889

Non-GAAP operating income (loss)

2,587,410

(125,063)

179

2,462,526

358,708

Net income (loss)

2,043,392

(1,020,876)

(4,850)

1,017,666

148,241

Share-based compensation

234,357

836,163

5,091

1,075,611

156,680

Amortization of intangible assets    from business acquisitions

-

74,750

-

74,750

10,889

Tax impacts

-

(18,688)

-

(18,688)

(2,723)

Non-GAAP net income (loss)

2,277,749

(128,651)

241

2,149,339

313,087

 

Cision View original content:http://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-second-quarter-of-2020-301123701.html

SOURCE Momo Inc.

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