EX-99.1

EX-99.1 2 d894065dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Hello Group Inc. Announces Unaudited Financial Results for the Second Quarter of 2024

BEIJING, CHINA, September 3, 2024 – Hello Group Inc. (NASDAQ: MOMO) (“Hello Group” or the “Company”), a leading player in mainland China’s online social networking space, today announced its unaudited financial results for the second quarter of 2024.

Second Quarter of 2024 Highlights

•

Net revenues decreased by 14.2% year over year to RMB2,691.4 million (US$370.3 million^*) in the second quarter of 2024.

•

Net income attributable to Hello Group Inc. decreased to RMB397.8 million (US$54.7 million) in the second quarter of 2024, from RMB568.4 million in the same period of 2023.

•

Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB449.2 million (US$61.8 million) in the second quarter of 2024, from RMB632.1 million in the same period of 2023.

•

Diluted net income per American Depositary Share (“ADS”) was RMB2.11 (US$0.29) in the second quarter of 2024, compared to RMB2.82 in the same period of 2023.

•

Non-GAAP diluted net income per ADS (note 1) was RMB2.38 (US$0.33) in the second quarter of 2024, compared to RMB3.14 in the same period of 2023.

•

Monthly Active Users (“MAU”) on Tantan app were 12.9 million in June 2024, compared to 17.3 million in June 2023.

•

For the Momo app total paying users was 7.2 million for the second quarter of 2024, compared to 7.9 million for the same period last year. Tantan had 1.0 million paying users for the second quarter of 2024 compared to 1.4 million from the year ago period.

First Half of 2024 Highlights

•

Net revenues decreased by 11.8% year over year to RMB5,251.8 million (US$722.7 million) for the first half of 2024.

•

Net income attributable to Hello Group Inc. was RMB403.0 million (US$55.5 million) for the first half of 2024, compared to RMB958.7 million during the same period of 2023.

•

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB509.1 million (US$70.1 million) for the first half of 2024, compared to RMB1,104.1 million during the same period of 2023.

•

Diluted net income per ADS was RMB2.10 (US$0.29) for the first half of 2024, compared to RMB4.78 during the same period of 2023.

•

Non-GAAP diluted net income per ADS (note 1) was RMB2.65 (US$0.37) for the first half of 2024, compared to RMB5.49 during the same period of 2023.

“Q2 was a good quarter. I am pleased to see that our team has maintained the spirit of innovation and adaptation in a challenging environment,” commented Yan Tang, Chairman and CEO of Hello Group. “Momo’s cash cow business continued to be productive in a healthy community ecosystem. Regarding new endeavors, while strengthening the localization progress, we are more convinced of the revenue growth opportunities in overseas market.”

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate 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 RMB7.2672 to US$1.00, the effective noon buying rate for June 28, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.

Second Quarter of 2024 Financial Results

Net revenues

Total net revenues were RMB2,691.4 million (US$370.3 million) in the second quarter of 2024, a decrease of 14.2% from RMB3,137.7 million in the second quarter of 2023.

Live video service revenues were RMB1,303.0 million (US$179.3 million) in the second quarter of 2024, a decrease of 18.0% from RMB1,588.8 million during the same period of 2023. The decrease was primarily attributable to our proactive operational adjustments to de-emphasis large scale competition events in the Momo app and a soft consumer sentiment in the current macro environment, and to a lesser degree, Tantan pivoting away from the less dating-centric live video service.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,345.3 million (US$185.1 million) in the second quarter of 2024, a decrease of 10.3% from RMB1,499.5 million during the same period of 2023. The decrease was primarily due to our product adjustments to improve Momo app’s ecosystem as well as the impact of the macro economy on consumer sentiment, and to a lesser extent, the decline in Tantan’s paying users which was in turn due to the decrease in its user base, the recent product upgrade as well as adjustments in its membership auto renewal policy. The decrease was partially offset by the revenue growth from the new standalone apps.

Mobile marketing revenues were RMB42.0 million (US$5.8 million) in the second quarter of 2024, an increase of 13.5% from RMB37.0 million during the same period of 2023.

Net revenues from the Momo segment decreased from RMB2,816.6 million in the second quarter of 2023 to RMB2,457.2 million (US$338.1 million) in the second quarter of 2024, primarily due to the decrease in net revenues from value-added service and live video service on Momo app. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB320.7 million in the second quarter of 2023 to RMB233.7 million (US$32.2 million) in the second quarter of 2024, mainly due to the decrease in net revenues from live video service and value-added service.

Cost and expenses

Cost and expenses were RMB2,275.2 million (US$313.1 million) in the second quarter of 2024, a decrease of 9.6% from RMB2,515.5 million in the second quarter of 2023. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service on Momo app and Tantan app, and a decrease in revenue sharing with virtual gift recipients of virtual gift service on Momo app. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value. The decrease was partially offset by an increase in sales and marketing expenses due to more marketing spend in connection with the annual gala event of Momo’s live streaming service. Non-GAAP cost and expenses (note 1) were RMB2,223.8 million (US$306.0 million) in the second quarter of 2024, a decrease of 9.3% from RMB2,451.8 million during the same period of 2023.

Income from operations

Income from operations was RMB425.0 million (US$58.5 million) in the second quarter of 2024, compared to RMB645.1 million during the same period of 2023. Income from operations of the Momo segment was RMB409.4 million (US$56.3 million) in the second quarter of 2024, which decreased from RMB618.8 million in the second quarter of 2023. Income from operations of the Tantan segment was RMB16.4 million (US$2.3 million) in the second quarter of 2024, which decreased from RMB30.2 million in the second quarter of 2023.

Non-GAAP income from operations (note 1) was RMB476.5 million (US$65.6 million) in the second quarter of 2024, compared to RMB708.8 million during the same period of 2023. Non-GAAP income from operations of the Momo segment was RMB456.7 million (US$62.8 million) in the second quarter of 2024, which decreased from RMB680.8 million in the second quarter of 2023. Non-GAAP income from operations of the Tantan segment was RMB20.6 million (US$2.8 million) in the second quarter of 2024, compared to RMB31.9 million in the second quarter of 2023.

Income tax expenses

Income tax expenses were RMB102.6 million (US$14.1 million) in the second quarter of 2024, compared to RMB166.0 million in the second quarter of 2023. The decrease in income tax expenses was primarily due to the lower profit in the second quarter of 2024, and to a lesser extent, lower withholding tax rate due to our eligibility for a preferential tax rate since the beginning of the year.

Net income

Net income was RMB397.8 million (US$54.7 million) in the second quarter of 2024, compared to RMB567.6 million during the same period of 2023. Net income from the Momo segment was RMB382.8 million (US$52.7 million) in the second quarter of 2024, compared to RMB542.4 million in the same period of 2023. Net income from the Tantan segment was RMB15.8 million (US$2.2 million) in the second quarter of 2024, compared to RMB29.1 million in the second quarter of 2023.

Non-GAAP net income (note 1) was RMB449.2 million (US$61.8 million) in the second quarter of 2024, compared to RMB631.3 million during the same period of 2023. Non-GAAP net income from the Momo segment was RMB430.0 million (US$59.2 million) in the second quarter of 2024, which decreased from RMB604.4 million in the second quarter of 2023. Non-GAAP net income of the Tantan segment was RMB20.0 million (US$2.8 million) in the second quarter of 2024, compared to RMB30.8 million in the second quarter of 2023.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB397.8 million (US$54.7 million) in the second quarter of 2024, compared to RMB568.4 million during the same period of 2023.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB449.2 million (US$61.8 million) in the second quarter of 2024, compared to RMB632.1 million during the same period of 2023.

Net income per ADS

Diluted net income per ADS was RMB2.11 (US$0.29) in the second quarter of 2024, compared to RMB2.82 in the second quarter of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB2.38 (US$0.33) in the second quarter of 2024, compared to RMB3.14 in the second quarter of 2023.

Cash and cash flow

As of June 30, 2024, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB14,316.4 million (US$1,970.0 million), compared to RMB13,478.5 million as of December 31, 2023.

Net cash provided by operating activities in the second quarter of 2024 was RMB475.2 million (US$65.4 million), compared to RMB827.7 million in the second quarter of 2023.

First Half of 2024 Financial Results

Net revenues for the first half of 2024 were RMB5,251.8 million (US$722.7 million), a decrease of 11.8% from RMB5,956.5 million in the same period of 2023.

Net income attributable to Hello Group Inc. was RMB403.0 million (US$55.5 million) for the first half of 2024, compared to RMB958.7 million during the same period of 2023.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB509.1 million (US$70.1 million) for the first half of 2024, compared to RMB1,104.1 million during the same period of 2023.

Diluted net income per ADS was RMB2.10 (US$0.29) during the first half of 2024, compared to RMB4.78 in the same period of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB2.65 (US$0.37) during the first half of 2024, compared to RMB5.49 in the same period of 2023.

Net cash provided by operating activities was RMB875.4 million (US$120.5 million) during the first half of 2024, compared to RMB1,278.8 million in the same period of 2023.

Recent Development

Share repurchase program

On June 7, 2022, Hello Group’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$200 million of its shares up to June 6, 2024 (the “Share Repurchase Program”). On March 14, 2024, Hello Group’s board of directors approved to amend the Share Repurchase Program to (i) extend the term of the Share Repurchase Program up to June 30, 2026, and (ii) upsize the Share Repurchase Program so that the Company is authorized to, from time to time, acquire up to an aggregate of US$286.1 million worth of its shares in the form of ADSs and/or the ordinary shares of the Company in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations.

As of September 3, the Company has repurchased 30.9 million ADSs for US$174.6 million on the open market under Share Repurchase Program announced on June 7, 2022 and amended on March 14, 2024, at an average purchase price of US$5.63 per ADS.

Business Outlook

For the third quarter of 2024, the Company expects total net revenues to be between RMB2.58 billion to RMB2.68 billion, representing a decrease of 15.2% to 11.9% year over year. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Note 1: Non-GAAP measures

To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and such adjustment has no impact on income tax.

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

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

Our non-GAAP information (including non-GAAP cost and operating expenses, income (loss) from operations, net income (loss), net income attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation and such adjustment has no impact on income tax. A limitation of using these non-GAAP financial measures is that share-based compensation has been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.

Conference Call

Hello Group’s management will host an earnings conference call on Tuesday, September 3, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on September 3, 2024).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10041441-w8sbhf.html.

Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.

A telephone replay of the call will be available after the conclusion of the conference call through September 10, 2024. The dial-in details for the replay are as follows:

U.S. / Canada: 1-855-883-1031

Hong Kong: 800-930-639

Passcode: 10041441

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Hello Group’s website at https://ir.hellogroup.com.

About Hello Group Inc.

We are a leading player in mainland China’s online social networking space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. Starting from 2019, we have incubated a number of other new apps, such as Hertz, Soulchill, Duidui and Tietie, which target more niche markets and more selective demographics.

For investor and media inquiries, please contact:

Hello Group Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: ir@hellogroup.com

Christensen

In China

Ms. Xiaoyan Su

Phone: +86-10-5900-1548

E-mail: Xiaoyan.Su@christensencomms.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.com

Safe Harbor Statement

This news release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the third quarter of 2024, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the second quarter of 2024 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the third quarter of 2024 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the market price of the Company’s stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company’s cash flows from operations, general economic conditions, and other factors. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

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

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Operations

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


	Three months									First half year
	Ended June 30									Ended June 30
	2023			2024			2024			2023			2024			2024
	RMB			RMB			US$			RMB			RMB			US$
Net revenues:
Live video service		1,588,849			1,303,020			179,302			3,018,189			2,541,561			349,730
Value-added service		1,499,482			1,345,316			185,121			2,860,951			2,639,692			363,234
Mobile marketing		36,986			41,990			5,778			58,057			68,585			9,438
Mobile games		2,606			—			—			6,305			432			59
Other services		9,763			1,065			147			13,042			1,541			212

Total net revenues		3,137,686			2,691,391			370,348			5,956,544			5,251,811			722,673
Cost and expenses:
Cost of revenues		(1,819,559	)		(1,595,789	)		(219,588	)		(3,483,747	)		(3,098,797	)		(426,409	)
Research and development		(214,649	)		(193,168	)		(26,581	)		(451,452	)		(385,359	)		(53,027	)
Sales and marketing		(356,525	)		(364,769	)		(50,194	)		(736,311	)		(658,200	)		(90,571	)
General and administrative		(124,787	)		(121,482	)		(16,716	)		(263,085	)		(252,863	)		(34,795	)

Total cost and expenses		(2,515,520	)		(2,275,208	)		(313,079	)		(4,934,595	)		(4,395,219	)		(604,802	)
Other operating income, net		22,919			8,861			1,219			59,313			28,767			3,958

Income from operations		645,085			425,044			58,488			1,081,262			885,359			121,829
Interest income		115,321			130,937			18,018			215,108			252,044			34,682
Interest expense		(11,963	)		(32,493	)		(4,471	)		(22,378	)		(56,191	)		(7,732	)
Other gain or loss, net		4,565			(34,625	)		(4,765	)		4,565			(43,870	)		(6,037	)

Income before income tax and share of (loss) income on equity method investments		753,008			488,863			67,270			1,278,557			1,037,342			142,742
Income tax expenses		(165,969	)		(102,614	)		(14,120	)		(288,582	)		(660,227	)		(90,850	)

Income before share of (loss) income on equity method investments		587,039			386,249			53,150			989,975			377,115			51,892
Share of (loss) income on equity method investments		(19,439	)		11,536			1,587			(32,914	)		25,854			3,558

Net income		567,600			397,785			54,737			957,061			402,969			55,450

Less: net loss attributable to non-controlling interest		(795	)		—			—			(1,623	)		—			—

Net income attributable to the shareholders of Hello Group Inc.		568,395			397,785			54,737			958,684			402,969			55,450

Net income per share attributable to ordinary shareholders
Basic		1.50			1.10			0.15			2.54			1.09			0.15
Diluted		1.41			1.05			0.14			2.39			1.05			0.14
Weighted average shares used in calculating net income per ordinary share
Basic		377,920,901			362,394,762			362,394,762			377,471,487			368,522,705			368,522,705
Diluted		409,201,815			377,903,589			377,903,589			409,151,850			383,528,002			383,528,002

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

First half year

Ended June 30

2023

2024

2023

2024

RMB

US$

RMB

US$

Net income

567,600

397,785

54,737

957,061

402,969

55,450

Other comprehensive income, net of tax:

Foreign currency translation adjustment

107,975

41,569

5,720

110,156

96,463

13,274

Comprehensive income

675,575

439,354

60,457

1,067,217

499,432

68,724

Less: comprehensive income attributed to the non-controlling interest

10,188

1,202

165

8,518

4,286

590

Comprehensive income attributable to Hello Group Inc.

665,387

438,152

60,292

1,058,699

495,146

68,134

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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


	December 31 2023 RMB		June 30 2024 RMB		June 30 2024 US$
Assets
Current assets
Cash and cash equivalents		5,620,466		5,958,586		819,929
Short-term deposits		1,270,626		350,000		48,162
Restricted cash		10,147		1,513,894		208,319
Accounts receivable, net of allowance for doubtful accounts of RMB12,780 and RMB12,615 as of December 31, 2023 and June 30, 2024, respectively		201,517		184,840		25,435
Amounts due from related parties		7,258		—		—
Prepaid expenses and other current assets		723,364		776,812		106,893

Total current assets		7,833,378		8,784,132		1,208,738
Long-term deposits		3,924,975		3,816,800		525,209
Long-term restricted cash		2,652,299		2,677,110		368,383
Right-of-use assets, net		109,572		304,301		41,873
Property and equipment, net		659,033		889,309		122,373
Intangible assets, net		17,086		14,527		1,999
Rental deposits		12,962		13,770		1,895
Long-term investments		786,911		726,981		100,036
Amounts due from RPT-non current		20,000		—		—
Other non-current assets		180,052		211,744		29,137
Deferred tax assets		31,741		35,820		4,929

Total assets		16,228,009		17,474,494		2,404,572

Liabilities and equity
Current liabilities
Accounts payable		616,681		607,035		83,532
Deferred revenue		442,805		444,657		61,187
Accrued expenses and other current liabilities		630,617		607,062		83,535
Amounts due to related parties		4,314		—		—
Lease liabilities due within one year		60,008		153,979		21,188
Income tax payable		94,719		58,224		8,012
Deferred consideration in connection with business acquisitions		27,261		27,904		3,840
Long-term borrowings, current portion		215,615		215,615		29,670
Short-term borrowings		—		1,331,635		183,239

Total current liabilities		2,092,020		3,446,111		474,203
Deferred tax liabilities		24,987		408,451		56,205
Convertible Senior Notes		19,571		20,067		2,761
Long-term borrowings		1,938,385		1,938,169		266,701
Lease liabilities		52,171		158,821		21,854
Other non-current liabilities		114,085		137,811		18,963

Total liabilities		4,241,219		6,109,430		840,687
Shareholder’s equity (i)		11,986,790		11,365,064		1,563,885

Total liabilities and shareholder’s equity		16,228,009		17,474,494		2,404,572

(i):	As of June 30, 2024, the number of ordinary shares outstanding was 352,650,980.

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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


	Three months Ended June 30									First half year Ended June 30
	2023			2024			2024			2023			2024			2024
	RMB			RMB			US$			RMB			RMB			US$
Cash flows from operating activities:
Net income		567,600			397,785			54,737			957,061			402,969			55,450
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment		18,787			13,525			1,861			41,631			27,835			3,830
Amortization of intangible assets		1,279			1,279			176			2,558			2,558			352
Share-based compensation		63,748			51,458			7,081			145,405			106,128			14,604
Share of loss (income) on equity method investments		19,439			(11,536	)		(1,587	)		32,914			(25,854	)		(3,558	)
Gain on repurchase of convertible senior notes		(4,565	)		—			—			(4,565	)		—			—
Cash received on distributions from equity method investments		1,349			1,197			165			1,349			1,197			165
Loss on long-term investments		—			34,625			4,765			—			43,870			6,037
Gain or loss on disposal of property and equipment		(527	)		(178	)		(24	)		(460	)		80			11
Provision of loss on receivable and other assets		1,022			145			20			10,204			1,921			264
Changes in operating assets and liabilities:
Accounts receivable		(20,117	)		4,848			667			(20,665	)		15,828			2,178
Prepaid expenses and other current assets		170,514			15,043			2,070			194,866			5,366			738
Amounts due from related parties		—			—			—			55			—			—
Rental deposits		951			—			—			951			(802	)		(110	)
Deferred tax assets		17			(1,580	)		(217	)		457			(4,078	)		(561	)
Other non-current assets		30,424			(198,746	)		(27,348	)		22,939			(206,343	)		(28,394	)
Accounts payable		11,459			(14,292	)		(1,967	)		31,838			(31,746	)		(4,368	)
Income tax payable		2,674			(42,533	)		(5,853	)		(3,719	)		(36,497	)		(5,022	)
Deferred revenue		(14,062	)		(15,268	)		(2,101	)		(22,873	)		1,406			193
Accrued expenses and other current liabilities		(54,827	)		121,547			16,725			(187,560	)		64,747			8,909
Amount due to related parties		(272	)		—			—			2,897			—			—
Deferred tax liabilities		48,397			14,410			1,983			82,517			379,421			52,210
Other non-current liabilities		(15,548	)		103,500			14,242			(8,984	)		127,393			17,530

Net cash provided by operating activities		827,742			475,229			65,395			1,278,816			875,399			120,458
Cash flows from investing activities:
Purchase of property and equipment		(11,010	)		(199,842	)		(27,499	)		(21,244	)		(244,018	)		(33,578	)
Payment for long-term investments		(9,000	)		(5,250	)		(722	)		(9,000	)		(5,250	)		(722	)
Purchase of short-term deposits		—			—			—			(497,342	)		—			—
Cash received on maturity of short-term deposits		2,609,820			781,016			107,471			3,509,820			1,081,016			148,753
Cash received on investment income distribution		1,517			—			—			1,517			—			—
Purchase of long-term deposits		(1,350,000	)		—			—			(1,350,000	)		(718,860	)		(98,918	)
Cash received on maturity of long-term deposits		—			—			—			—			718,860			98,918
Cash received from sales of long-term investment		—			—			—			—			2,000			275
Other investing activities		947			298			41			1,685			683			94

Net cash provided by investing activities		1,242,274			576,222			79,291			1,635,436			834,431			114,822
Cash flows from financing activities:
Proceeds from exercise of share options		16			2			—			19			13			2
Payment in relation to the share repurchase program		—			(394,561	)		(54,293	)		(3,237	)		(506,822	)		(69,741	)
Repurchase of subsidiary’s share options		(2,557	)		—			—			(4,096	)		—			—
Dividends payment		(937,249	)		(716,302	)		(98,566	)		(937,249	)		(716,302	)		(98,566	)
Proceeds from short-term borrowings		—			—			—			—			1,331,635			183,239
Repayment of long-term borrowings		—			—			—			—			(215	)		(30	)
Payment for redemption of convertible bonds		(2,114,224	)		—			—			(2,593,010	)		—			—

Net cash (used in) provided by financing activities		(3,054,014	)		(1,110,861	)		(152,859	)		(3,537,573	)		108,309			14,904
Effect of exchange rate changes		145,860			27,725			3,814			136,434			48,539			6,680

Net (decrease) increase in cash and cash equivalents		(838,138	)		(31,685	)		(4,359	)		(486,887	)		1,866,678			256,864
Cash, cash equivalents and restricted cash at the beginning of period		5,549,852			10,181,275			1,400,990			5,198,601			8,282,912			1,139,767
Cash, cash equivalents and restricted cash at the end of period		4,711,714			10,149,590			1,396,631			4,711,714			10,149,590			1,396,631

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

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


	Three months								Three months								Three months
	Ended June 30, 2023								Ended June 30, 2024								Ended June 30, 2024
	GAAP RMB			Share-based compensation RMB		Non-GAAP RMB			GAAP RMB			Share-based compensation RMB		Non-GAAP RMB			GAAP US$			Share-based compensation US$		Non-GAAP US$
Cost of revenues		(1,819,559	)		1,552		(1,818,007	)		(1,595,789	)		1,796		(1,593,993	)		(219,588	)		247		(219,341	)
Research and development		(214,649	)		13,821		(200,828	)		(193,168	)		13,512		(179,656	)		(26,581	)		1,860		(24,721	)
Sales and marketing		(356,525	)		6,813		(349,712	)		(364,769	)		4,149		(360,620	)		(50,194	)		571		(49,623	)
General and administrative		(124,787	)		41,562		(83,225	)		(121,482	)		32,001		(89,481	)		(16,716	)		4,403		(12,313	)

Cost and operating expenses		(2,515,520	)		63,748		(2,451,772	)		(2,275,208	)		51,458		(2,223,750	)		(313,079	)		7,081		(305,998	)
Income from operations		645,085			63,748		708,833			425,044			51,458		476,502			58,488			7,081		65,569
Net income attributable to Hello Group Inc.		568,395			63,748		632,143			397,785			51,458		449,243			54,737			7,081		61,818

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

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


	First half year								First half year								First half year
	Ended June 30, 2023								Ended June 30, 2024								Ended June 30, 2024
	GAAP RMB			Share-based compensation RMB		Non-GAAP RMB			GAAP RMB			Share-based compensation RMB		Non-GAAP RMB			GAAP US$			Share-based compensation US$		Non-GAAP US$
Cost of revenues		(3,483,747	)		3,187		(3,480,560	)		(3,098,797	)		3,678		(3,095,119	)		(426,409	)		506		(425,903	)
Research and development		(451,452	)		36,193		(415,259	)		(385,359	)		22,298		(363,061	)		(53,027	)		3,068		(49,959	)
Sales and marketing		(736,311	)		14,559		(721,752	)		(658,200	)		10,266		(647,934	)		(90,571	)		1,413		(89,158	)
General and administrative		(263,085	)		91,466		(171,619	)		(252,863	)		69,886		(182,977	)		(34,795	)		9,617		(25,178	)

Cost and operating expenses		(4,934,595	)		145,405		(4,789,190	)		(4,395,219	)		106,128		(4,289,091	)		(604,802	)		14,604		(590,198	)
Income from operations		1,081,262			145,405		1,226,667			885,359			106,128		991,487			121,829			14,604		136,433
Net income attributable to Hello Group Inc.		958,684			145,405		1,104,089			402,969			106,128		509,097			55,450			14,604		70,054

Hello Group Inc.

Unaudited Condensed Segment Report

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


	Three months Ended June 30, 2024
	Momo RMB			Tantan RMB			QOOL RMB			Total RMB			Total US$
Net revenues:
Live video service		1,220,013			83,007			—			1,303,020			179,302
Value-added service		1,205,460			139,856			—			1,345,316			185,121
Mobile marketing		31,136			10,854			—			41,990			5,778
Other services		582			—			483			1,065			147

Total net revenues		2,457,191			233,717			483			2,691,391			370,348
Cost and expenses (ii):
Cost of revenues		(1,491,925	)		(103,862	)		(2	)		(1,595,789	)		(219,588	)
Research and development		(151,180	)		(41,988	)		—			(193,168	)		(26,581	)
Sales and marketing		(301,121	)		(62,473	)		(1,175	)		(364,769	)		(50,194	)
General and administrative		(112,387	)		(8,978	)		(117	)		(121,482	)		(16,716	)

Total cost and expenses		(2,056,613	)		(217,301	)		(1,294	)		(2,275,208	)		(313,079	)
Other operating income		8,858			1			2			8,861			1,219

Income (loss) from operations		409,436			16,417			(809	)		425,044			58,488
Interest income		130,777			158			2			130,937			18,018
Interest expense		(32,493	)		—			—			(32,493	)		(4,471	)
Other gain or loss, net		(34,625	)		—			—			(34,625	)		(4,765	)

Income (loss) before income tax and share of income on equity method investments		473,095			16,575			(807	)		488,863			67,270
Income tax expenses		(101,865	)		(749	)		—			(102,614	)		(14,120	)

Income (loss) before share of income on equity method investments		371,230			15,826			(807	)		386,249			53,150
Share of income on equity method investments		11,536			—			—			11,536			1,587

Net income (loss)		382,766			15,826			(807	)		397,785			54,737

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


	Three months Ended June 30, 2024
	Momo RMB		Tantan RMB		QOOL RMB		Total RMB		Total US$
Cost of revenues		1,796		—		—		1,796		247
Research and development		9,325		4,187		—		13,512		1,860
Sales and marketing		4,149		—		—		4,149		571
General and administrative		31,998		3		—		32,001		4,403

Total cost and expenses		47,268		4,190		—		51,458		7,081

Hello Group Inc.

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

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


	Three months Ended June 30, 2024
	Momo RMB		Tantan RMB		QOOL RMB			Total RMB		Total US$
Income (loss) from operations		409,436		16,417		(809	)		425,044		58,488
Share-based compensation		47,268		4,190		—			51,458		7,081

Non-GAAP income (loss) from operations		456,704		20,607		(809	)		476,502		65,569
Net income (loss)		382,766		15,826		(807	)		397,785		54,737
Share-based compensation		47,268		4,190		—			51,458		7,081

Non-GAAP net income (loss)		430,034		20,016		(807	)		449,243		61,818

Hello Group Inc.

Unaudited Condensed Segment Report

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


	Three months
	Ended June 30, 2023
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$¹
Net revenues:
Live video service		1,443,602			145,247			—			1,588,849			219,112
Value-added service		1,329,310			170,172			—			1,499,482			206,788
Mobile marketing		31,670			5,316			—			36,986			5,101
Mobile games		2,606			—			—			2,606			359
Other services		9,459			—			304			9,763			1,347

Total net revenues		2,816,647			320,735			304			3,137,686			432,707
Cost and expenses (iii):
Cost of revenues		(1,658,335	)		(160,651	)		(573	)		(1,819,559	)		(250,929	)
Research and development		(163,040	)		(51,609	)		—			(214,649	)		(29,601	)
Sales and marketing		(282,903	)		(72,378	)		(1,244	)		(356,525	)		(49,167	)
General and administrative		(116,197	)		(6,198	)		(2,392	)		(124,787	)		(17,209	)

Total cost and expenses		(2,220,475	)		(290,836	)		(4,209	)		(2,515,520	)		(346,906	)
Other operating income, net		22,648			271			—			22,919			3,161

Income (loss) from operations		618,820			30,170			(3,905	)		645,085			88,962
Interest income		114,946			358			17			115,321			15,903
Interest expense		(11,963	)		—			—			(11,963	)		(1,650	)
Other gain or loss, net		4,565			—			—			4,565			630

Income (loss) before income tax and share of loss on equity method investments		726,368			30,528			(3,888	)		753,008			103,845
Income tax expenses		(164,541	)		(1,428	)		—			(165,969	)		(22,888	)

Income (loss) before share of loss on equity method investments		561,827			29,100			(3,888	)		587,039			80,957
Share of loss on equity method investments		(19,439	)		—			—			(19,439	)		(2,681	)

Net income (loss)		542,388			29,100			(3,888	)		567,600			78,276

(iii)

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


	Three months
	Ended June 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		1,437		115		—		1,552		214
Research and development		12,222		1,599		—		13,821		1,906
Sales and marketing		6,813		—		—		6,813		940
General and administrative		41,554		8		—		41,562		5,732

Total cost and expenses		62,026		1,722		—		63,748		8,792

¹	All translations from RMB to U.S. dollars are made at a rate of RMB7.2513 to US$1.00, the effective noon buying rate for June 30, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

Hello Group Inc.

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

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


	Three months
	Ended June 30, 2023
	Momo		Tantan		QOOL			Total		Total
	RMB		RMB		RMB			RMB		US$
Income (loss) from operations		618,820		30,170		(3,905	)		645,085		88,962
Share-based compensation		62,026		1,722		—			63,748		8,792

Non-GAAP income (loss) from operations		680,846		31,892		(3,905	)		708,833		97,754
Net income (loss)		542,388		29,100		(3,888	)		567,600		78,276
Share-based compensation		62,026		1,722		—			63,748		8,792

Non-GAAP net income (loss)		604,414		30,822		(3,888	)		631,348		87,068

Hello Group Inc.

Unaudited Condensed Segment Report

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


	First half year
	Ended June 30, 2024
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$
Net revenues:
Live video service		2,370,857			170,704			—			2,541,561			349,730
Value-added service		2,354,745			284,947			—			2,639,692			363,234
Mobile marketing		49,029			19,556			—			68,585			9,438
Mobile games		432			—			—			432			59
Other services		1,016			—			525			1,541			212

Total net revenues		4,776,079			475,207			525			5,251,811			722,673
Cost and expenses (iv):
Cost of revenues		(2,884,749	)		(214,046	)		(2	)		(3,098,797	)		(426,409	)
Research and development		(302,041	)		(83,318	)		—			(385,359	)		(53,027	)
Sales and marketing		(537,780	)		(116,955	)		(3,465	)		(658,200	)		(90,571	)
General and administrative		(236,139	)		(16,569	)		(155	)		(252,863	)		(34,795	)

Total cost and expenses		(3,960,709	)		(430,888	)		(3,622	)		(4,395,219	)		(604,802	)
Other operating income		28,016			725			26			28,767			3,958

Income (loss) from operations		843,386			45,044			(3,071	)		885,359			121,829
Interest income		251,735			305			4			252,044			34,682
Interest expense		(56,191	)		—			—			(56,191	)		(7,732	)
Other gain or loss, net		(43,870	)		—			—			(43,870	)		(6,037	)

Income (loss) before income tax and share of income on equity method investments		995,060			45,349			(3,067	)		1,037,342			142,742
Income tax expenses		(658,944	)		(1,283	)		—			(660,227	)		(90,850	)

Income (loss) before share of income on equity method investments		336,116			44,066			(3,067	)		377,115			51,892
Share of income on equity method investments		25,854			—			—			25,854			3,558

Net income (loss)		361,970			44,066			(3,067	)		402,969			55,450

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


	First half year
	Ended June 30, 2024
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		3,674		4		—		3,678		506
Research and development		17,963		4,335		—		22,298		3,068
Sales and marketing		10,266		—		—		10,266		1,413
General and administrative		69,872		14		—		69,886		9,617

Total cost and expenses		101,775		4,353		—		106,128		14,604

Hello Group Inc.

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

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


	First half year
	Ended June 30, 2024
	Momo		Tantan		QOOL			Total		Total
	RMB		RMB		RMB			RMB		US$
Income (loss) from operations		843,386		45,044		(3,071	)		885,359		121,829
Share-based compensation		101,775		4,353		—			106,128		14,604

Non-GAAP income (loss) from operations		945,161		49,397		(3,071	)		991,487		136,433
Net income (loss)		361,970		44,066		(3,067	)		402,969		55,450
Share-based compensation		101,775		4,353		—			106,128		14,604

Non-GAAP net income (loss)		463,745		48,419		(3,067	)		509,097		70,054

Hello Group Inc.

Unaudited Condensed Segment Report

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


	First half year
	Ended June 30, 2023
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$
Net revenues:
Live video service		2,733,320			284,869			—			3,018,189			416,227
Value-added service		2,522,854			338,097			—			2,860,951			394,543
Mobile marketing		51,691			6,366			—			58,057			8,006
Mobile games		6,305			—			—			6,305			869
Other services		12,596			—			446			13,042			1,800

Total net revenues		5,326,766			629,332			446			5,956,544			821,445
Cost and expenses (v):
Cost of revenues		(3,158,866	)		(323,765	)		(1,116	)		(3,483,747	)		(480,431	)
Research and development		(332,348	)		(119,104	)		—			(451,452	)		(62,258	)
Sales and marketing		(595,543	)		(138,230	)		(2,538	)		(736,311	)		(101,542	)
General and administrative		(244,275	)		(13,944	)		(4,866	)		(263,085	)		(36,281	)

Total cost and expenses		(4,331,032	)		(595,043	)		(8,520	)		(4,934,595	)		(680,512	)
Other operating income		58,126			1,125			62			59,313			8,180

Income (loss) from operations		1,053,860			35,414			(8,012	)		1,081,262			149,113
Interest income		214,477			562			69			215,108			29,665
Interest expense		(22,378	)		—			—			(22,378	)		(3,086	)
Other gain or loss, net		4,565			—			—			4,565			630

Income (loss) before income tax and share of loss on equity method investments		1,250,524			35,976			(7,943	)		1,278,557			176,322
Income tax expenses		(286,183	)		(2,399	)		—			(288,582	)		(39,797	)

Income (loss) before share of loss on equity method investments		964,341			33,577			(7,943	)		989,975			136,525
Share of loss on equity method investments		(32,914	)		—			—			(32,914	)		(4,539	)

Net income (loss)		931,427			33,577			(7,943	)		957,061			131,986

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


	First half year
	Ended June 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		3,055		132		—		3,187		440
Research and development		25,392		10,801		—		36,193		4,991
Sales and marketing		14,554		5		—		14,559		2,008
General and administrative		91,450		16		—		91,466		12,614

Total cost and expenses		134,451		10,954		—		145,405		20,053

Hello Group Inc.

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

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


	First half year
	ended June 30, 2023
	Momo		Tantan		QOOL			Total		Total
	RMB		RMB		RMB			RMB		US$
Operating income (loss)		1,053,860		35,414		(8,012	)		1,081,262		149,113
Share-based compensation		134,451		10,954		—			145,405		20,053

Non-GAAP operating income (loss)		1,188,311		46,368		(8,012	)		1,226,667		169,166
Net income (loss)		931,427		33,577		(7,943	)		957,061		131,986
Share-based compensation		134,451		10,954		—			145,405		20,053

Non-GAAP net income (loss)		1,065,878		44,531		(7,943	)		1,102,466		152,039