EX-99.1 2 d828376dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Momo Announces Unaudited Financial Results for the Third Quarter of 2019

BEIJING, CHINA, November 26, 2019 – 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.

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.

 

* 

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.

 

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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.

 

2


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.

 

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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.

 

4


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.

 

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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.

 

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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.

 

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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  

 

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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  
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

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Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

 

     December 31
2018
RMB
     September 30
2019
RMB
     September 30
2019
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, net1

     —          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.

 

10


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  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

11


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  

 

12


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.

 

13


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  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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  

 

14


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 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  

 

15


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  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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  

 

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.

 

16


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 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  

 

17


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:

 

     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  

 

18


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$  

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  

 

19


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  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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  

 

20


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, 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  

 

21