BEIJING, Nov. 26, 2019 /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 third quarter of 2019.

Third Quarter of 2019 Highlights

  • Net revenues increased by 22% year over year to RMB4,451.6 million (US$622.8 million*) in the third quarter of 2019.
  • Net income attributable to Momo Inc. increased to RMB893.9 million (US$125.1 million) in the third quarter of 2019 from RMB579.5 million in the same period of 2018.
  • Non-GAAP net income attributable to Momo Inc. (note 1) increased to RMB1,088.1 million (US$152.2 million) in the third quarter of 2019, from RMB777.6 million in the same period of 2018.
  • Diluted net income per American Depositary Share ("ADS") was RMB4.04 (US$0.57) in the third quarter of 2019, compared to RMB2.69 in the same period of 2018.
  • Non-GAAP diluted net income per ADS (note 1) was RMB4.90 (US$0.69) in the third quarter of 2019, compared to RMB3.57 in the same period of 2018.
  • Monthly Active Users ("MAU") on Momo application were 114.1 million in September 2019, compared to 110.5 million in September 2018.
  • Total paying users of our live video service and value-added service, without double counting the overlap and including 4.5 million paying users of Tantan, were 13.4 million for the third quarter of 2019, compared to 12.5 million for the third quarter of 2018, which included 3.6 million paying users of Tantan.

* 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 RMB7.1477 to US$1.00, the effective noon buying rate for September 30, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

First Nine Months of 2019 Highlights

  • Net revenues increased 29% year over year to RMB12,327.2 million (US$1,724.6 million) for the first nine months of 2019.
  • Net income attributable to Momo Inc. was RMB1,915.0 million (US$267.9 million) for the first nine months of 2019, compared with RMB2,154.9 million during the same period of 2018.
  • Non-GAAP net income attributable to Momo Inc. (note 1) was RMB3,240.8 million (US$453.4 million) for the first nine months of 2019, compared with RMB2,574.6 million during the same period of 2018.
  • Diluted net income per ADS was RMB8.76 (US$1.23) for the first nine months of 2019, compared with RMB10.16 during the same period of 2018.
  • Non-GAAP diluted net income per ADS (note 1) was RMB14.65 (US$2.05) for the first nine months of 2019, compared with RMB12.12 during the same period of 2018.

"The third quarter of 2019 was another robust quarter," commented Yan Tang, Chairman and CEO of Momo. "We continued to deliver strong financial results both in terms of revenues and profitability. Moreover, we are also making solid progress with our product initiatives and sowing the seeds for future growth."

Third Quarter of 2019 Financial Results

Net revenues

Total net revenues were RMB4,451.6 million (US$622.8 million) in the third quarter of 2019, an increase of 22% from RMB3,647.6 million in the third quarter of 2018.

Live video service revenues were RMB3,275.4 million (US$458.2 million) in the third quarter of 2019, an increase of 18% from RMB2,769.2 million during the same period of 2018, as a result of the successful strategy to apply different products and operational efforts to drive spending from different cohorts of users.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,064.6 million (US$148.9 million) in the third quarter of 2019, an increase of 86% from RMB573.1 million during the same period of 2018. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more functions launched and more paying scenarios introduced to enhance the social experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB81.9 million (US$11.5 million) in the third quarter of 2019, a decrease of 30% from RMB117.3 million during the same period of 2018. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers and the decrease in advertisement properties on Momo's platform.

Mobile games revenues were RMB15.8 million (US$2.2 million) in the third quarter of 2019, a decrease of 43% from RMB27.9 million in the third quarter of 2018. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Revenues from other services in the third quarter of 2018 mainly consisted of revenues from Phanta City, a TV variety show co-produced by the Company, which did not generate revenues in the third quarter of 2019.

Net revenues from Momo segment increased from RMB3,325.1 million in the third quarter of 2018 to RMB4,138.9 million (US$579.1 million) in the third quarter of 2019, primarily driven by the significant increase in net revenues from live video service and value-added service. Net revenues from Tantan segment increased from RMB164.1 million in the third quarter of 2018 to RMB310.0 million (US$43.4million) in the third quarter of 2019, which was mainly due to the increase in the number of paying users of Tantan.

Cost and expenses

Cost and expenses were RMB3,487.9 million (US$488.0 million) in the third quarter of 2019, an increase of 16% from RMB3,009.1 million in the third quarter of 2018. The increase was primarily attributable to: (a) an increase in revenue sharing with broadcasters related to our live video service and virtual gift recipients; (b) an increase in marketing and promotional expenses to attract users on both Momo and Tantan platforms and promote our live video services; (c) an increase in personnel related costs as a result of the Company's rapidly expanding talent pool; (d) an increase in infrastructure-related spending, such as bandwidth costs and server depreciation costs, driven by more functions introduced on Momo's platform. The increase was partially offset by a decrease in production cost in connection with a television program.

Non-GAAP cost and expenses (note 1) were RMB3,284.0 million (US$459.5 million) in the third quarter of 2019, an increase of 17% from RMB2,801.6 million during the same period of 2018.

Income from operations

Income from operations was RMB993.1 million (US$138.9 million) in the third quarter of 2019, compared to RMB643.8 million during the same period of 2018. Income from operations of Momo segment was RMB1,227.2 million (US$171.7 million) in the third quarter of 2019, increasing from RMB943.9 million in the third quarter of 2018. Loss from operations of Tantan segment was RMB228.7 million (US$32.0 million) in the third quarter of 2019, compared to loss from operations of RMB227.6 million in the third quarter of 2018.

Non-GAAP income from operations (note 1) was RMB1,196.9 million (US$167.5 million) in the third quarter of 2019, compared to RMB851.3 million during the same period of 2018. Non-GAAP income from operations of Momo segment was RMB1,364.1 million (US$190.9 million) in the third quarter of 2019, increasing from RMB1,055.9 million in the third quarter of 2018. Non-GAAP loss from operations of Tantan segment was RMB164.4 million (US$23.0 million) in the third quarter of 2019, compared to non-GAAP loss from operations of RMB132.2 million in the third quarter of 2018.

Income tax expenses

Income tax expenses were RMB182.6 million (US$25.5 million) in the third quarter of 2019, increasing from RMB146.8 million in the third quarter of 2018. The increase was mainly because we generated higher profit in the third quarter of 2019.

Net income

Net income was RMB890.8 million (US$124.6 million) in the third quarter of 2019, compared to RMB571.9 million during the same period of 2018. Net income from Momo segment was RMB1,110.2 million (US$155.3 million) in the third quarter of 2019, increasing from RMB862.4 million in the third quarter of 2018. Net loss from Tantan segment was RMB214.1 million (US$29.9 million) in the third quarter of 2019, compared to net loss of RMB218.1 million in the third quarter of 2018.

Non-GAAP net income (note 1) was RMB1,084.9 million (US$151.8 million) in the third quarter of 2019, compared to RMB770.0 million during the same period of 2018. Non-GAAP net income from Momo segment was RMB1,247.2 million (US$174.5 million) in the third quarter of 2019, increasing from RMB974.4 million in the third quarter of 2018. Non-GAAP net loss of Tantan segment was RMB159.5 million (US$22.3 million) in the third quarter of 2019, compared to non-GAAP net loss of RMB132.0 million in the third quarter of 2018.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB893.9 million (US$125.1 million) in the third quarter of 2019, compared to RMB579.5 million during the same period of 2018.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB1,088.1 million (US$152.2 million) in the third quarter of 2019, compared to RMB777.6 million during the same period of 2018.

Net income per ADS

Diluted net income per ADS was RMB4.04 (US$0.57) in the third quarter of 2019, compared to RMB2.69 in the third quarter of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB4.90 (US$0.69) in the third quarter of 2019, compared to RMB3.57 in the third quarter of 2018.

Cash and cash flow

As of September 30, 2019, Momo's cash, cash equivalents, term deposits and short-term investment totaled RMB13,669.9 million (US$1,912.5 million), compared to RMB11,292.6 million as of December 31, 2018. Net cash provided by operating activities in the third quarter of 2019 was RMB1,175.9 million (US$164.5 million), compared to RMB346.5 million in the third quarter of 2018.

First Nine Months of 2019 Financial Results

Net revenues for the first nine months of 2019 were RMB12,327.2 million (US$1,724.6 million), an increase of 29% from RMB9,564.5 million in the same period of 2018, primarily driven by the significant increase in net revenues from live video service and value-added service.

Net income attributable to Momo Inc. was RMB1,915.0 million (US$267.9 million) for the first nine months of 2019, compared to RMB2,154.9 million during the same period of 2018.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB3,240.8 million (US$453.4 million) for the first nine months of 2019, compared to RMB2,574.6 million during the same period of 2018.

Diluted net income per ADS was RMB8.76 (US$1.23) during the first nine months of 2019, compared to RMB10.16 in the same period of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB14.65 (US$2.05) during the first nine months of 2019, compared to RMB12.12 in the same period of 2018.

Net cash provided by operating activities was RMB3,773.8 million (US$528.0 million) during the first nine months of 2019, compared to RMB2,164.4 million in the same period of 2018.

Business Outlook

For the fourth quarter of 2019, the Company expects total net revenues to be between RMB4.52 billion to RMB4.62 billion, representing an increase of 18% to 20% year over year. These estimates reflect the Company's current and preliminary view, which is 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 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 Tuesday, November 26, 2019, at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong Time on November 26, 2019).

Dial-in details for the earnings conference call are as follows:

International:

+65-6713-5090

U.S. Toll Free:

+1-866-519-4004

Hong Kong Toll Free:

800-906601

Mainland China: 

4006-208038

Passcode:

Momo

Please dial in 15 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 8:00 a.m. U.S. Eastern Time, December 4, 2019. The dial-in details for the replay are as follows:

International: 

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

9698746

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

Momo is a leading mobile social networking platform in China. Momo connects people in a personal and lively way through a revolutionary mobile-based social networking platform. With powerful and precise location-based features, Momo enables users to connect with each other and expand relationships from online to offline. Momo's platform includes the Momo mobile application and a variety of related features, functionalities, tools and services that it provides to users, customers and platform partners. Leveraging its social interest graph engine and analysis of user behavior data, Momo is able to provide users a customized experience based on their social preferences and needs. Momo users can maintain and strengthen their relationships through private and group communication tools, content creation and sharing functions, as well as the offline social activities promoted on Momo's platform. Momo users are also able to enjoy live video on our platform. In addition, in May 2018, Momo completed its acquisition of Tantan, a leading social and dating app for the younger generation. Tantan, whose primary users consist of young Chinese singles, 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: +86-10-5731-0538
Email: ir@immomo.com

Christensen

In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com

In US
Ms. Linda Bergkamp
Phone: +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 and our financial outlook for the fourth quarter of 2019. 

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the third quarter of 2019 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2019 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  In addition, 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, and our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers.  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 nine months

ended September  30


ended September  30


2018


2019


2019


2018


2019


2019



RMB


RMB


US$


RMB


RMB


US$


Net revenues:













Live video service

2,769,231


3,275,354


458,239


7,750,269


9,064,654


1,268,192


Value-added service

573,148


1,064,606


148,944


1,160,735


2,916,849


408,082


Mobile marketing

117,336


81,894


11,457


378,178


238,831


33,414


Mobile games

27,880


15,785


2,208


104,890


78,033


10,917


Other services

160,002


14,003


1,960


170,432


28,824


4,032


Total net revenues

3,647,597


4,451,642


622,808


9,564,504


12,327,191


1,724,637


Cost and expenses:













Cost of revenues

(2,031,652)


(2,203,350)


(308,260)


(5,083,632)


(6,140,787)


(859,128)


Research and development

(245,661)


(301,754)


(42,217)


(517,144)


(802,843)


(112,322)


Sales and marketing

(563,564)


(771,338)


(107,914)


(1,193,994)


(1,965,795)


(275,025)


General and administrative

(168,189)


(211,423)


(29,579)


(405,323)


(1,314,679)


(183,930)


Total cost and expenses

(3,009,066)


(3,487,865)


(487,970)


(7,200,093)


(10,224,104)


(1,430,405)


Other operating income

5,298


29,342


4,105


112,277


202,197


28,288


Income from operations

643,829


993,119


138,943


2,476,688


2,305,284


322,520


Interest income

82,728


105,384


14,744


183,180


299,337


41,879


Interest expense

(24,421)


(20,117)


(2,814)


(36,857)


(58,421)


(8,173)


Impairment loss on long-term
     investments

-


(11,211)


(1,568)


-


(15,711)


(2,198)


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

702,136


1,067,175


149,305


2,623,011


2,530,489


354,028


Income tax expenses

(146,776)


(182,578)


(25,544)


(516,310)


(630,097)


(88,154)


Income before share of
     income on equity method
     investments

555,360


884,597


123,761


2,106,701


1,900,392


265,874


Share of income on equity
     method investments

16,524


6,185


865


35,439


8,056


1,127


Net income

571,884


890,782


124,626


2,142,140


1,908,448


267,001


Less: net loss attributable to
     non-controlling interest

(7,655)


(3,115)


(436)


(12,798)


(6,543)


(915)


Net income attributable to
     Momo Inc.

579,539


893,897


125,062


2,154,938


1,914,991


267,916















Net income per share
     attributable to ordinary
     shareholders













Basic

1.42


2.15


0.30


5.32


4.62


0.65


Diluted

1.34


2.02


0.28


5.08


4.38


0.61


Weighted average shares
     used in calculating net
 income per ordinary share













Basic

409,378,536


415,615,139


415,615,139


404,744,362


414,790,186


414,790,186


Diluted

445,871,236


452,571,862


452,571,862


428,148,904


450,470,088


450,470,088


 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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



Three months


First nine months

ended September 30


ended September 30


2018


2019


2019


2018


2019


2019


RMB


RMB


US$


RMB


RMB


US$

Net income

571,884


890,782


124,626


2,142,140


1,908,448


267,001

Other comprehensive income, net
     of tax












Foreign currency translation
     adjustment

125,760


62,771


8,782


193,482


30,689


4,294

Comprehensive income

697,644


953,553


133,408


2,335,622


1,939,137


271,295

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

(6,041)


3,519


492


(10,078)


556


78

Comprehensive income
      attributable to Momo Inc.

703,685


950,034


132,916


2,345,700


1,938,581


271,217

 


 

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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








December 31


September 30


September 30


2018


2019


2019

RMB

RMB


US$

Assets






Current assets






Cash and cash equivalents

2,468,034


2,870,923


401,657

Term deposits

8,824,610


10,759,003


1,505,240

Short-term investment

-


40,000


5,596

Accounts receivable, net of allowance for doubtful accounts of RMB
     nil and RMB12,209 as of December 31, 2018 and September 30,
     2019, respectively

719,606


375,575


52,545

Amounts due from a related party

-


1,606


225

Prepaid expenses and other current assets

620,979


649,563


90,877

Total current assets

12,633,229


14,696,670


2,056,140

Property and equipment, net

387,532


367,285


51,385

Intangible assets

1,036,986


953,901


133,456

Rental deposits

24,192


24,553


3,435

Long-term investments

447,465


505,810


70,765

Deferred tax assets

57,786


34,482


4,824

Other non-current assets

71,519


15,072


2,109

Right-of-use assets, net[1]

-


216,078


30,230

Goodwill

4,306,829


4,476,460


626,280

Total assets

18,965,538


21,290,311


2,978,624

Liabilities and equity






Current liabilities






Accounts payable

718,362


618,109


86,475

Deferred revenue

441,892


496,691


69,490

Accrued expenses and other current liabilities

846,710


911,963


127,588

Amount due to related parties

82,948


29,371


4,109

Income tax payable

137,090


114,039


15,955

Lease liabilities due within one year1

-


135,304


18,930

Deferred consideration in connection with business acquisitions

469,274


86,599


12,116

Total current liabilities

2,696,276


2,392,076


334,663

Deferred tax liabilities

259,247


238,475


33,364

Convertible senior notes

4,877,116


5,082,352


711,047

Share-based compensation liability

86,767


925,068


129,422

Lease liabilities1

-


79,723


11,154

Other non-current liabilities

23,273


29,294


4,098

Total liabilities

7,942,679


8,746,988


1,223,748

Shareholder's equity (i)

11,022,859


12,543,323


1,754,876

Total liabilities and shareholder's equity

18,965,538


21,290,311


2,978,624


(i): As of September 30, 2019, the number of ordinary shares issued and outstanding was 416,748,172.


[1] On January 1, 2019, the Company adopted ASU 2016-02, the new lease standard, using the modified retrospective basis and did not restate comparative periods.

 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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


Three months


First nine months


ended September 30


ended September 30


2018


2019


2019


2018


2019


2019


RMB


RMB


US$


RMB


RMB


US$

Cash flows from operating activities:












Net income

571,884


890,782


124,626


2,142,140


1,908,448


267,001

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












Depreciation of property and equipment

39,412


50,216


7,025


105,994


146,852


20,545

Amortization of intangible assets

38,930


40,100


5,610


53,508


117,715


16,469

Share-based compensation

169,959


165,163


23,107


382,800


1,240,774


173,590

Share of income on equity method investments

(16,524)


(6,185)


(865)


(35,439)


(8,056)


(1,127)

Impairment loss on long-term investments

-


11,211


1,568


-


15,711


2,198

Loss on disposal of property and equipment

(1,241)


(64)


(9)


(1,239)


(398)


(56)

Provision of allowance for doubtful accounts

-


2,900


406


(585)


12,209


1,708

Changes in operating assets and liabilities:












Accounts receivable

(420,015)


(103,290)


(14,451)


(355,671)


331,836


46,426

Prepaid expenses and other current assets

(171,185)


(24,378)


(3,411)


(81,494)


(23,182)


(3,243)

Amount due from related parties

13,379


(1,335)


(187)


33,407


(1,606)


(225)

Rental deposits

(577)


2,033


284


245


(362)


(51)

Deferred tax assets

342


(2,803)


(392)


28,913


23,304


3,260

Other non-current assets

(6,670)


(33,254)


(4,652)


(44,864)


(20,611)


(2,884)

Accounts payable

159,002


(133,863)


(18,728)


252,700


(45,775)


(6,404)

Income tax payable

(16,727)


(16,064)


(2,247)


(119,888)


(23,052)


(3,225)

Deferred revenue

32,601


84,711


11,852


(26,719)


54,789


7,665

Accrued expenses and other current liabilities

(52,348)


278,181


38,919


(183,201)


136,558


19,105

Amount due to related parties

17,256


(10,550)


(1,476)


17,675


(53,267)


(7,452)

Deferred tax liability

(9,732)


(10,025)


(1,403)


(13,376)


(35,322)


(4,942)

Other non-current liabilities

(1,238)


(7,556)


(1,057)


9,453


(2,762)


(386)

Net cash provided by operating activities

346,508


1,175,930


164,519


2,164,359


3,773,803


527,972

Cash flows from investing activities:












Purchase of property and equipment

(71,399)


(59,933)


(8,385)


(161,600)


(154,413)


(21,603)

Proceeds from disposal of property and equipment

2,200


294


41


2,210


804


112

Payment for long-term investments

(8,000)


(19,000)


(2,658)


(62,125)


(43,000)


(6,016)

Prepayment of long-term investments

-


-


-


(47,000)


(15,000)


(2,099)

Payment for business acquisition, net of cash acquired

-


(759)


(106)


(3,278,209)


(379,507)


(53,095)

Purchase of term deposits

(7,418,072)


(4,786,130)


(669,604)


(14,987,302)


(14,501,135)


(2,028,783)

Cash received on maturity of term deposits

2,100,000


4,785,400


669,502


9,322,393


12,650,430


1,769,860

Payment for short-term investments

(354,200)


(30,000)


(4,197)


(354,200)


(280,000)


(39,173)

Cash received from sales of short-term investment

239,200


80,000


11,192


249,700


240,000


33,577

Net cash used in investing activities

(5,510,271)


(30,128)


(4,215)


(9,316,133)


(2,481,821)


(347,220)

Cash flows from financing activities:












Proceeds from exercise of options

2,820


71


10


5,312


186


26

Deferred payment of purchase of property and equipment

-


(16,893)


(2,363)


(8,405)


(16,987)


(2,377)

Dividends payment

-


-


-


-


(877,346)


(122,745)

Proceeds from bank loan

-


-


-


1,913,190


-


-

Repayment of bank loan

(2,041,680)


-


-


(2,041,680)


-


-

Proceeds from issuance of Convertible Senior Notes, net
     of issuance cost of RMB113,673

4,820,387


-


-


4,820,387


-


-

Net cash provided by (used in) financing activities

2,781,527


(16,822)


(2,353)


4,688,804


(894,147)


(125,096)

Effect of exchange rate changes

14,450


6,200


867


22,736


5,054


710

Net (decrease) increase in cash, cash equivalents, and
     restricted cash

(2,367,786)


1,135,180


158,818


(2,440,234)


402,889


56,366

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

4,389,746


1,735,743


242,839


4,462,194


2,468,034


345,291

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

2,021,960


2,870,923


401,657


2,021,960


2,870,923


401,657

 

 

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 September 30, 2018

ended September 30, 2019


ended September 30, 2019


 

 

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

(2,031,652)

18,183

5,880

-

(2,007,589)


(2,203,350)

18,751

6,738

-

(2,177,861)


(308,260)

2,623

943

-

(304,694)

Research and
     development

(245,661)

2,309

45,919

-

(197,433)


(301,754)

2,381

45,345

-

(254,028)


(42,217)

333

6,344

-

(35,540)

Sales and marketing

(563,564)

17,004

43,760

-

(502,800)


(771,338)

17,535

52,100

-

(701,703)


(107,914)

2,453

7,289

-

(98,172)

General and
     administrative

(168,189)

-

74,400

-

(93,789)


(211,423)

-

60,980

-

(150,443)


(29,579)

-

8,531

-

(21,048)

Cost and operating
     expenses

(3,009,066)

37,496

169,959

-

(2,801,611)


(3,487,865)

38,667

165,163

-

(3,284,035)


(487,970)

5,409

23,107

-

(459,454)

Income from operations

643,829

37,496

169,959

-

851,284


993,119

38,667

165,163

-

1,196,949


138,943

5,409

23,107

-

167,459

Net income attributable to
     Momo Inc.

579,539

37,496

169,959

(9,374)

777,620


893,897

38,667

165,163

(9,667)

1,088,060


125,062

5,409

23,107

(1,352)

152,226

 

 

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 nine months


First nine months


First nine months

ended September 30, 2018

ended September 30, 2019


ended September 30, 2019


 

 

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

(5,083,632)

23,865

16,163

-

(5,043,604)


(6,140,787)

54,999

16,371

-

(6,069,417)


(859,128)

7,695

2,290

-

(849,143)

Research and
     development

(517,144)

3,030

105,591

-

(408,523)


(802,843)

6,985

129,598

-

(666,260)


(112,322)

978

18,131

-

(93,213)

Sales and marketing

(1,193,994)

22,316

99,220

-

(1,072,458)


(1,965,795)

51,433

142,845

-

(1,771,517)


(275,025)

7,196

19,985

-

(247,844)

General and
     administrative

(405,323)

-

161,826

-

(243,497)


(1,314,679)

-

951,960

-

(362,719)


(183,930)

-

133,184

-

(50,746)

Cost and operating
     expenses

(7,200,093)

49,211

382,800

-

(6,768,082)


(10,224,104)

113,417

1,240,774

-

(8,869,913)


(1,430,405)

15,869

173,590

-

(1,240,946)

Income from
     operations

2,476,688

49,211

382,800

-

2,908,699


2,305,284

113,417

1,240,774

-

3,659,475


322,520

15,869

173,590

-

511,979

Net income attributable
     to Momo Inc.

2,154,938

49,211

382,800

(12,301)

2,574,648


1,914,991

113,417

1,240,774

(28,355)

3,240,827


267,916

15,869

173,590

(3,967)

453,408


(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 Segment Report

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



Three months

  ended  September  30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

3,275,354


-


-


3,275,354


458,239

Value-added service

754,629


309,977


-


1,064,606


148,944

Mobile marketing

81,894


-


-


81,894


11,457

Mobile games

15,785


-


-


15,785


2,208

Other services

11,234


-


2,769


14,003


1,960

Total net revenues

4,138,896


309,977


2,769


4,451,642


622,808

Cost and expenses (iii):










Cost of revenues

(2,101,678)


(99,722)


(1,950)


(2,203,350)


(308,260)

Research and development

(225,539)


(76,215)


-


(301,754)


(42,217)

Sales and marketing

(422,034)


(349,274)


(30)


(771,338)


(107,914)

General and administrative

(191,832)


(13,425)


(6,166)


(211,423)


(29,579)

Total cost and expenses

(2,941,083)


(538,636)


(8,146)


(3,487,865)


(487,970)

Other operating income

29,342


-


-


29,342


4,105

Income (loss) from operations

1,227,155


(228,659)


(5,377)


993,119


138,943

Interest income

102,749


2,594


41


105,384


14,744

Interest expense

(20,117)


-


-


(20,117)


(2,814)

Impairment loss on long-term
      investments

(11,211)


-


-


(11,211)


(1,568)

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

1,298,576


(226,065)


(5,336)


1,067,175


149,305

Income tax (expenses) benefits

(194,580)


12,002


-


(182,578)


(25,544)

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

1,103,996


(214,063)


(5,336)


884,597


123,761

Share of income on equity method
     investments

6,185


-


-


6,185


865

Net income (loss)

1,110,181


(214,063)


(5,336)


890,782


124,626

 

 

Momo Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

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


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



Three months


ended September 30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

5,917


821


-


6,738


943

Research and development

27,375


17,970


-


45,345


6,344

Sales and marketing

46,831


5,269


-


52,100


7,289

General and administrative

56,860


1,486


2,634


60,980


8,531

Total cost and expenses

136,983


25,546


2,634


165,163


23,107




Three months


ended September 30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

1,227,155


(228,659)


(5,377)


993,119


138,943

Share-based compensation

136,983


25,546


2,634


165,163


23,107

Amortization of intangible assets from
      business acquisitions

-


38,667


-


38,667


5,409

Non-GAAP operating income (loss)

1,364,138


(164,446)


(2,743)


1,196,949


167,459











Net income (loss)

1,110,181


(214,063)


(5,336)


890,782


124,626

Share-based compensation

136,983


25,546


2,634


165,163


23,107

Amortization of intangible assets from
     business acquisitions

-


38,667


-


38,667


5,409

Tax impacts

-


(9,667)


-


(9,667)


(1,352)

Non-GAAP net income (loss)

1,247,164


(159,517)


(2,702)


1,084,945


151,790

 

 

Momo Inc.

Unaudited Segment Report

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



Three months

ended September 30, 2018


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$[2]

Net revenues:










Live video service

2,769,231


-


-


2,769,231


403,208

Value-added service

409,087


164,061


-


573,148


83,452

Mobile marketing

117,336


-


-


117,336


17,084

Mobile games

27,880


-


-


27,880


4,059

Other services

1,589


-


158,413


160,002


23,297

Total net revenues

3,325,123


164,061


158,413


3,647,597


531,100

Cost and expenses (iv):










Cost of revenues

(1,743,108)


(73,369)


(215,175)


(2,031,652)


(295,814)

Research and development

(168,147)


(77,514)


-


(245,661)


(35,769)

Sales and marketing

(350,985)


(201,172)


(11,407)


(563,564)


(82,056)

General and administrative

(124,281)


(39,648)


(4,260)


(168,189)


(24,489)

Total cost and expenses

(2,386,521)


(391,703)


(230,842)


(3,009,066)


(438,128)

Other operating income

5,271


27


-


5,298


771

Income (loss) from operations

943,873


(227,615)


(72,429)


643,829


93,743

Interest income

82,528


172


28


82,728


12,045

Interest expense

(24,421)


-


-


(24,421)


(3,556)

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

1,001,980


(227,443)


(72,401)


702,136


102,232

Income tax (expenses) benefits

(156,150)


9,374


-


(146,776)


(21,371)

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

845,830


(218,069)


(72,401)


555,360


80,861

Share of income on equity method investments

16,524


-


-


16,524


2,406

Net income (loss)

862,354


(218,069)


(72,401)


571,884


83,267


[2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.868 to US$1.00, the effective noon buying rate for September 28,
2018 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)


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



Three months


ended September 30, 2018


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

3,777


2,103


-


5,880


856

Research and development

24,826


21,093


-


45,919


6,686

Sales and marketing

39,595


4,165


-


43,760


6,372

General and administrative

43,812


30,588


-


74,400


10,833

Total cost and expenses

112,010


57,949


-


169,959


24,747




Three months


ended September 30, 2018


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

943,873


(227,615)


(72,429)


643,829


93,743

Share-based compensation

112,010


57,949


-


169,959


24,747

Amortization of intangible assets from
business acquisitions

-


37,496


-


37,496


5,460

Non-GAAP operating income (loss)

1,055,883


(132,170)


(72,429)


851,284


123,950











Net income (loss)

862,354


(218,069)


(72,401)


571,884


83,267

Share-based compensation

112,010


57,949


-


169,959


24,747

Amortization of intangible assets from
business acquisitions

-


37,496


-


37,496


5,460

Tax impacts

-


(9,374)


-


(9,374)


(1,365)

Non-GAAP net income (loss)

974,364


(131,998)


(72,401)


769,965


112,109

 

 

Momo Inc.

Unaudited Segment Report

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



First nine months

  ended  September  30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

9,064,654


-


-


9,064,654


1,268,192

Value-added service

2,026,732


890,117


-


2,916,849


408,082

Mobile marketing

238,831


-


-


238,831


33,414

Mobile games

78,033


-


-


78,033


10,917

Other services

15,243


-


13,581


28,824


4,032

Total net revenues

11,423,493


890,117


13,581


12,327,191


1,724,637

Cost and expenses (v):










Cost of revenues

(5,842,388)


(287,940)


(10,459)


(6,140,787)


(859,128)

Research and development

(591,678)


(211,165)


-


(802,843)


(112,322)

Sales and marketing

(1,141,571)


(817,823)


(6,401)


(1,965,795)


(275,025)

General and administrative

(448,480)


(837,824)


(28,375)


(1,314,679)


(183,930)

Total cost and expenses

(8,024,117)


(2,154,752)


(45,235)


(10,224,104)


(1,430,405)

Other operating income

180,831


-


21,366


202,197


28,288

Income (loss) from operations

3,580,207


(1,264,635)


(10,288)


2,305,284


322,520

Interest income

290,725


8,509


103


299,337


41,879

Interest expense

(58,421)


-


-


(58,421)


(8,173)

Impairment loss on long-term investments

(15,711)


-


-


(15,711)


(2,198)

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

3,796,800


(1,256,126)


(10,185)


2,530,489


354,028

Income tax (expenses) benefits

(651,284)


21,187


-


(630,097)


(88,154)

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

3,145,516


(1,234,939)


(10,185)


1,900,392


265,874

Share of income on equity method investments

8,056


-


-


8,056


1,127

Net income (loss)

3,153,572


(1,234,939)


(10,185)


1,908,448


267,001

 

 

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


Momo Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

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



First nine months


ended September 30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

14,393


1,978


-


16,371


2,290

Research and development

76,675


52,923


-


129,598


18,131

Sales and marketing

129,686


13,159


-


142,845


19,985

General and administrative

150,586


793,649


7,725


951,960


133,184

Total cost and expenses

371,340


861,709


7,725


1,240,774


173,590




First nine months


ended September 30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

3,580,207


(1,264,635)


(10,288)


2,305,284


322,520

Share-based compensation

371,340


861,709


7,725


1,240,774


173,590

Amortization of intangible assets
     from business acquisitions

-


113,417


-


113,417


15,869

Non-GAAP operating income (loss)

3,951,547


(289,509)


(2,563)


3,659,475


511,979











Net income (loss)

3,153,572


(1,234,939)


(10,185)


1,908,448


267,001

Share-based compensation

371,340


861,709


7,725


1,240,774


173,590

Amortization of intangible assets
     from business acquisitions

-


113,417


-


113,417


15,869

Tax impacts

-


(28,355)


-


(28,355)


(3,967)

Non-GAAP net income (loss)

3,524,912


(288,168)


(2,460)


3,234,284


452,493

 

 

Momo Inc.

Unaudited Segment Report

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



First nine months

ended September 30, 2018


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

7,750,269


-


-


7,750,269


1,128,461

Value-added service

965,705


195,030


-


1,160,735


169,006

Mobile marketing

378,178


-


-


378,178


55,064

Mobile games

104,890


-


-


104,890


15,272

Other services

4,095


-


166,337


170,432


24,815

Total net revenues

9,203,137


195,030


166,337


9,564,504


1,392,618

Cost and expenses (vi):










Cost of revenues

(4,612,322)


(92,100)


(379,210)


(5,083,632)


(740,191)

Research and development

(411,577)


(105,567)


-


(517,144)


(75,298)

Sales and marketing

(905,695)


(268,875)


(19,424)


(1,193,994)


(173,849)

General and administrative

(341,995)


(53,952)


(9,376)


(405,323)


(59,016)

Total cost and expenses

(6,271,589)


(520,494)


(408,010)


(7,200,093)


(1,048,354)

Other operating income

112,189


88


-


112,277


16,348

Income (loss) from operations

3,043,737


(325,376)


(241,673)


2,476,688


360,612

Interest income

182,889


236


55


183,180


26,671

Interest expense

(36,857)


-


-


(36,857)


(5,366)

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

3,189,769


(325,140)


(241,618)


2,623,011


381,917

Income tax (expenses) benefits

(528,612)


12,302


-


(516,310)


(75,176)

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

2,661,157


(312,838)


(241,618)


2,106,701


306,741

Share of income on equity method
     investments

35,439


-


-


35,439


5,160

Net income (loss)

2,696,596


(312,838)


(241,618)


2,142,140


311,901

 

 

Momo Inc.

Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report

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


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



First nine months


ended September 30, 2018


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

12,114


4,049


-


16,163


2,353

Research and development

65,744


39,847


-


105,591


15,374

Sales and marketing

91,286


7,934


-


99,220


14,447

General and administrative

121,169


40,657


-


161,826


23,562

Total cost and expenses

290,313


92,487


-


382,800


55,736






















First nine months


ended September 30, 2018


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

3,043,737


(325,376)


(241,673)


2,476,688


360,612

Share-based compensation

290,313


92,487


-


382,800


55,736

Amortization of intangible assets from
business acquisitions

-


49,211


-


49,211


7,165

Non-GAAP operating income (loss)

3,334,050


(183,678)


(241,673)


2,908,699


423,513











Net income (loss)

2,696,596


(312,838)


(241,618)


2,142,140


311,901

Share-based compensation

290,313


92,487


-


382,800


55,736

Amortization of intangible assets from
business acquisitions

-


49,211


-


49,211


7,165

Tax impacts

-


(12,301)


-


(12,301)


(1,791)

Non-GAAP net income (loss)

2,986,909


(183,441)


(241,618)


2,561,850


373,011


 

 

Cision View original content:http://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-third-quarter-of-2019-300965223.html

SOURCE Momo Inc.


Source: Momo Inc.