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Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2021

Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2021

BEIJING, March 24, 2022 /PRNewswire/ — Hello Group Inc. (NASDAQ: MOMO) (“Hello Group” or the “Company”), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2021.  

Fourth Quarter of 2021 Highlights

  • Net revenues decreased by 3.2% year over year to RMB3,674.2 million (US$576.6 million*) in the fourth quarter of 2021.
  • Net loss attributable to Hello Group Inc. was RMB4,242.7 million (US$665.8 million) in the fourth quarter of 2021, compared to a net income of RMB651.5 million in the same period of 2020. Due to the fact that the Group’s fair market value as indicated by its market capitalization was significantly below its net book value of equity, the Group determined that a triggering event had occurred for impairment. The Group conducted a detailed impairment analysis and recorded RMB4,397.0 million (US$690.0 million) as impairment loss, which represented the total value of all the goodwill and intangible assets with the exception of its operational licenses and permits on the consolidated statement of operations for the year ended December 31, 2021.
  • Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB280.9 million (US$44.1 million) in the fourth quarter of 2021, from RMB836.4 million in the same period of 2020. Non-GAAP net income attributable to Hello Group Inc. included an accrual of withholding income tax of RMB207.4 million (US$32.5 million) on undistributed earnings generated in 2021 by our wholly-foreign owned enterprise (“WFOE”), due to our plan to remit WFOE’s earnings to its offshore parent company in the foreseeable future to fund its demand on US dollar in business operations, payments of dividends, potential investments, etc.. Without this item, non-GAAP net income attributable to Hello Group Inc. would have been RMB488.3 million (US$76.6 million) in the fourth quarter of 2021.
  • Diluted net loss per American Depositary Share (“ADS”) was RMB21.50 (US$3.37) in the fourth quarter of 2021, compared to a diluted net income per ADS of RMB2.98 in the same period of 2020.
  • Non-GAAP diluted net income per ADS (note 1) was RMB1.38 (US$0.22) in the fourth quarter of 2021, compared to RMB3.80 in the same period of 2020.
  • Monthly Active Users (“MAU”) on Momo application were 114.1 million in December 2021, compared to 113.8 million in December 2020. MAU on Tantan application were 27.0 million in December 2021.
  • Total paying users of live video service and value-added service, without double counting the overlap and including 2.5 million paying users of Tantan Limited (“Tantan”), were 11.4 million for the fourth quarter of 2021, compared to 12.8 million for the fourth quarter of 2020, which included 3.8 million paying users of Tantan.

Full Year 2021 Highlights

  • Net revenues decreased 3.0% year over year to RMB14,575.7 million (US$2,287.2 million) for the full year of 2021.
  • Net loss attributable to Hello Group Inc. was RMB2,913.7 million (US$457.2 million) for the full year of 2021, compared to a net income of RMB2,103.5 million during the same period of 2020.
  • Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,037.1 million (US$319.7 million) for the full year of 2021, compared with RMB2,896.2 million during the same period of 2020.
  • Diluted net loss per ADS was RMB14.40 (US$2.26) for the full year of 2021, compared to a diluted net income per ADS of RMB9.65 during the same period of 2020.
  • Non-GAAP diluted net income per ADS (note 1) was RMB9.56 (US$1.50) for the full year of 2021, compared with RMB13.16 during the same period of 2020.

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.3726 to US$1.00, the effective noon buying rate for December 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

 “2021 was a busy year for us. Despite a variety of external challenges, our team was able to methodically execute our strategic priorities and delivered solid results. I am confident that we’ll continue to navigate through the challenges ahead and capitalize on the growth opportunities down the road.” commented Li Wang, CEO of Hello Group.

Fourth Quarter of 2021 Financial Results

Net revenues

Total net revenues were RMB3,674.2 million (US$576.6 million) in the fourth quarter of 2021, a decrease of 3.2% from RMB3,795.2 million in the fourth quarter of 2020.

Live video service revenues were RMB2,148.8 million (US$337.2 million) in the fourth quarter of 2021, a decrease of 7.7% from RMB2,327.9 million during the same period of 2020. The decrease was primarily attributable to the decrease in Tantan’s live streaming revenues due to the shift of our strategic focus. The live steaming revenues on Momo application increased 1% year over year in the fourth quarter of 2021.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,475.7 million (US$231.6 million) in the fourth quarter of 2021, an increase of 5.3% from RMB1,401.3 million during the same period of 2020. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by the introduction of innovative features and operational events in the audio and video social entertainment experiences, and the rapid growth in the revenues generated by new standalone apps. The increase was partially offset by the decrease in the value-added service revenues of Tantan, due to our strategy to lower the monetization level to improve user experience and retention.

Mobile marketing revenues were RMB25.4 million (US$4.0 million) in the fourth quarter of 2021, a decrease of 51.8% from RMB52.7 million during the same period of 2020. The decrease in mobile marketing revenues was due to our product adjustment to address new regulation requirement.

Mobile games revenues were RMB19.3 million (US$3.0 million) in the fourth quarter of 2021, an increase of 163.1% from RMB7.3 million in the fourth quarter of 2020.

Net revenues from the Momo segment increased from RMB3,051.3 million in the fourth quarter of 2020 to RMB3,235.6 million (US$507.7 million) in the fourth quarter of 2021, primarily due to the increase in net revenues from value-added service. Net revenues from the Tantan segment decreased from RMB740.5 million in the fourth quarter of 2020 to RMB437.2 million (US$68.6 million) in the fourth quarter of 2021, due to our strategy to lower the monetization level in order to improve user experience and retention.

Cost and expenses

Cost and expenses were RMB7,729.4 million (US$1,212.9 million) in the fourth quarter of 2021, an increase of 134.9% from RMB3,290.0 million in the fourth quarter of 2020. The increase was primarily attributable to: (a) an increase in impairment loss on goodwill and intangible assets amounting to RMB4,397.0 million (US$690.0 million); and (b) an increase in revenue sharing with broadcasters related to Momo’s core live video service, and virtual gift recipients for our virtual gift service. These increases were partially offset by a decrease in revenue sharing with broadcasters related to Tantan’s live video service, and a decrease in personnel related costs including share-based compensation expenses resulting from the decreased number of employees and the decreased fair value of the share options granted during the period.

Non-GAAP cost and expenses (note 1) were RMB3,205.8 million (US$503.1 million) in the fourth quarter of 2021, an increase of 3.6% from RMB3,095.9 million during the same period of 2020.

Other operating income

Other operating income was RMB38.6 million (US$6.1 million) in the fourth quarter of 2021, a decrease from RMB88.4 million during the fourth quarter of 2020. The other operating income mainly consisted of government incentives.

Income (loss) from operations

Loss from operations was RMB4,016.6 million (US$630.3 million) in the fourth quarter of 2021, compared to an income from operations of RMB593.6 million during the same period of 2020. Income from operations of the Momo segment was RMB549.3 million (US$86.2 million) in the fourth quarter of 2021, which decreased from RMB650.9 million in the fourth quarter of 2020. Loss from operations of the Tantan segment was RMB162.5 million (US$25.5 million) in the fourth quarter of 2021, compared to loss from operations of RMB53.1 million in the fourth quarter of 2020.

Non-GAAP income from operations (note 1) was RMB507.0 million (US$79.6 million) in the fourth quarter of 2021, compared to RMB787.7 million during the same period of 2020. Non-GAAP income from operations of the Momo segment was RMB658.4 million (US$103.3 million) in the fourth quarter of 2021, which decreased from RMB791.8 million in the fourth quarter of 2020. Non-GAAP loss from operations of the Tantan segment was RMB145.0 million (US$22.8 million) in the fourth quarter of 2021, compared to non-GAAP loss from operations of RMB2.3 million in the fourth quarter of 2020.

Income tax expenses

Income tax expenses were RMB296.5 million (US$46.5 million) in the fourth quarter of 2021, compared to RMB5.5 million in the fourth quarter of 2020. The increase was primarily due to the following reasons: (a) in the fourth quarter of 2021, we accrued withholding income tax of RMB207.4 million (US$32.5 million) on undistributed earnings generated in 2021 by our WFOE, because we plan to remit WFOE’s earnings to its offshore parent company in the foreseeable future to fund its demand on US dollar in business operations, payments of dividends, potential investments, etc.; (b) in the fourth quarter of 2020, we reversed the over-accrued income tax expenses of RMB113.4 million, due to the preferential tax rate adjustment from 12.5% to 10.0% for WFOE, resulting from the fact that the application of the Key Software Enterprise for the fiscal year of 2019 was approved in 2020.

Net income (loss)

Net loss was RMB4,244.0 million (US$666.0 million) in the fourth quarter of 2021, compared to a net income of RMB651.1 million during the same period of 2020. Net income from the Momo segment was RMB306.7 million (US$48.1 million) in the fourth quarter of 2021, which decreased from RMB705.8 million in the fourth quarter of 2020. Net loss from the Tantan segment was RMB147.3 million (US$23.1 million) in the fourth quarter of 2021, compared to net loss of RMB50.5 million in the fourth quarter of 2020.

Non-GAAP net income (note 1) was RMB279.6 million (US$43.9 million) in the fourth quarter of 2021, compared to RMB836.1 million during the same period of 2020. Non-GAAP net income from the Momo segment was RMB415.8 million (US$65.3 million) in the fourth quarter of 2021, which decreased from RMB846.7 million in the fourth quarter of 2020. Non-GAAP net loss of the Tantan segment was RMB129.9 million (US$20.4 million) in the fourth quarter of 2021, compared to non-GAAP net loss of RMB8.8 million in the fourth quarter of 2020.

Net income (loss) attributable to Hello Group Inc.

Net loss attributable to Hello Group Inc. was RMB4,242.7 million (US$665.8 million) in the fourth quarter of 2021, compared to a net income of RMB651.5 million during the same period of 2020.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB280.9 million (US$44.1 million) in the fourth quarter of 2021, compared to RMB836.4 million during the same period of 2020.

Net income (loss) per ADS

Diluted net loss per ADS was RMB21.50 (US$3.37) in the fourth quarter of 2021, compared to a diluted net income per ADS of RMB2.98 in the fourth quarter of 2020.

Non-GAAP diluted net income per ADS (note 1) was RMB1.38 (US$0.22) in the fourth quarter of 2021, compared to RMB3.80 in the fourth quarter of 2020.

Cash and cash flow

As of December 31, 2021, the Company’s cash, cash equivalents, short-term deposits, long-term deposits and long-term restricted cash totaled RMB15,707.0 million (US$2,464.8 million), compared to RMB16,482.3 million as of December 31, 2020. Net cash provided by operating activities in the fourth quarter of 2021 was RMB665.5 million (US$104.4 million), compared to RMB1,039.1 million in the fourth quarter of 2020.

Full Year 2021 Financial Results

Net revenues for the full year of 2021 were RMB14,575.7 million (US$2,287.2 million), a decrease of 3.0% from RMB15,024.2 million in the same period of 2020.

Net loss attributable to Hello Group Inc. was RMB2,913.7 million (US$457.2 million) for the full year of 2021, compared to a net income of RMB2,103.5 million during the same period of 2020.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB2,037.1 million (US$319.7 million) for the full year of 2021, compared to RMB2,896.2 million during the same period of 2020.

Diluted net loss per ADS was RMB14.40 (US$2.26) during the full year of 2021, compared to a diluted net income per ADS of RMB9.65 in the same period of 2020.

Non-GAAP diluted net income per ADS (note 1) was RMB9.56 (US$1.50) during the full year of 2021, compared to RMB13.16 in the same period of 2020.

Net cash provided by operating activities was RMB1,559.2 million (US$244.7 million) during the full year of 2021, compared to RMB3,080.9 million in the same period of 2020.

Recent Development

Declaration of a special cash dividend

Hello Group’s board of directors has declared a special cash dividend in the amount of US$0.64 per ADS, or US$0.32 per ordinary share. The cash dividend will be paid on April 29, 2022 to shareholders of record at the close of business on April 13, 2022. The ex-dividend date will be April 12, 2022. The aggregate amount of cash dividends to be paid is approximately US$127 million, which will be funded by surplus cash on the Company’s balance sheet.

CFO Transition

The Company today announced that Jonathon Zhang, Chief Financial Officer, will retire effective June 30, 2022. Cathy Hui Peng, Senior Vice President of corporate finance, will assume the role of chief financial officer following Mr. Zhang’s retirement and Mr. Zhang will remain with the Company as a senior advisor.

“My tenure with Hello Group was such a gratifying journey. I consider the past 8 years with the Company as the most exciting part of my long career life. It has been an absolute privilege to work with the team and have built a great business.” said Jonathon Zhang. “I’m also pleased to pass the baton to Cathy. A long time deputy of mine, she is the right person to lead the team to continue their success.”

“Jonathon has made tremendous contribution to the Company over the past 8 years. He has been playing an indispensable role in transforming the company and guiding the team to enable our success. On behalf of the company, I want to thank Jonathon for his leadership and dedication and wish him much happiness in his next chapter.” said Li Wang, Chief Executive Officer of the Company. “At the same time, we are delighted that Cathy will transition into the CFO role. Her deep capital market experience, demonstrated financial acumen and leadership skills will serve her well in her new role.”

Prior to this expanded role, Ms. Peng serves as the Company’s Senior Vice President of corporate finance. In this role she is responsible for the company’s financial planning and analysis, strategic investment and acquisitions, as well as corporate strategy and investor communications. Ms. Peng joined the Company in 2015 as vice president of investor relations. Since then, she has played a key role in driving the company’s success in various capital market transactions. From 2007 to 2015, Ms. Peng worked for SINA Corporation as director of investor relations and a corporate treasurer. Prior to that, she worked for several public and private companies in TMT space where she served various roles in accounting, financial planning and analysis, M&As and corporate communications. Ms. Peng started her career in auditing at Ernst &Young from 2001. Ms. Peng received her bachelor degree in Economics from Peking University in 2001.

Business Outlook

For the first quarter of 2022, the Company expects total net revenues to be between RMB3.1 billion to RMB3.2 billion, representing a decrease of 10.7% to 7.8% 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, impairment loss on goodwill and intangible assets, 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 (loss) attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation, impairment loss on goodwill and intangible assets, 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, impairment loss on goodwill and intangible assets, 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 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 Thursday, March 24, 2022, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 24, 2022).

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

PRE-REGISTER LINK http://apac.directeventreg.com/registration/event/1244109

To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your registrant ID, and you will join the conference instantly.

A telephone replay of the call will be available after the conclusion of the conference call through 8:00 a.m. U.S. Eastern Time, April 1, 2022. The dial-in details for the replay are as follows:

International:     +61-2- 9003- 4211

U.S. Toll Free:   +1-855- 4525-696

Passcode:         1244109

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

About Hello Group Inc.

We are a leading player in China’s online social and entertainment space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. It is designed to help its users find and establish romantic connections as well as meet interesting people. We also operate a number of other applications to serve different social and entertainment demands from our users.

For investor and media inquiries, please contact:

Hello Group Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: [email protected]  

Christensen

In China

Mr. Eric Yuan

Phone: +86-10-5900-1548

E-mail: [email protected]  

In US

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: [email protected]

Safe Harbor Statement

This news release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the first quarter of 2022, 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 fourth quarter of 2021 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2022 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the impact of the COVID-19 pandemic on the Company’s business operations and the economy in China, the market price of the Company’s stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company’s cash flows from operations, general economic conditions, and other factors.  For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

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

 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Operations

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


Three months


Year

Ended December 31


Ended December 31


2020


2021


2021


2020


2021


2021


RMB


RMB


US$


RMB


RMB


US$

Net revenues:












Live video service

2,327,875


2,148,785


337,191


9,637,579


8,378,945


1,314,839

Value-added service

1,401,269


1,475,733


231,575


5,112,182


5,971,792


937,104

Mobile marketing

52,663


25,369


3,981


198,197


159,010


24,952

Mobile games

7,334


19,294


3,028


39,564


47,712


7,487

Other services

6,060


5,048


792


36,666


18,260


2,866

Total net revenues

3,795,201


3,674,229


576,567


15,024,188


14,575,719


2,287,248

Cost and expenses:












Cost of revenues

(2,042,781)


(2,191,520)


(343,897)


(7,976,781)


(8,383,431)


(1,315,543)

Research and development

(327,295)


(316,024)


(49,591)


(1,167,677)


(1,131,781)


(177,601)

Sales and marketing

(697,722)


(659,604)


(103,506)


(2,813,922)


(2,604,309)


(408,673)

General and administrative

(222,191)


(165,257)


(25,932)


(763,150)


(624,700)


(98,029)

Impairment loss ongoodwill and intangible assets


(4,397,012)


(689,987)



(4,397,012)


(689,987)

Total cost and expenses

(3,289,989)


(7,729,417)


(1,212,913)


(12,721,530)


(17,141,233)


(2,689,833)

Other operating income

88,385


38,558


6,051


228,777


175,947


27,610

Income (loss) from operations

593,597


(4,016,630)


(630,295)


2,531,435


(2,389,567)


(374,975)

Interest income

100,880


99,573


15,625


444,471


384,279


60,302

Interest expense

(19,047)


(18,444)


(2,894)


(78,872)


(73,776)


(11,577)

Other gain or loss, net

7,500


2,000


314


1,500


(16,000)


(2,511)

Income (loss) before income tax and share of income on

equity method investments

682,930


(3,933,501)


(617,250)


2,898,534


(2,095,064)


(328,761)

Income tax expenses

(5,481)


(296,491)


(46,526)


(755,620)


(822,556)


(129,077)

Income (loss) before share of income on equity method

investments

677,449


(4,229,992)


(663,776)


2,142,914


(2,917,620)


(457,838)

Share of loss on equity method investments

(26,319)


(14,045)


(2,204)


(42,522)


(8,084)


(1,269)

Net income (loss)

651,130


(4,244,037)


(665,980)


2,100,392


(2,925,704)


(459,107)

Less: net loss attributable to non-controlling interest

(320)


(1,319)


(207)


(3,092)


(11,996)


(1,882)

Net income (loss) attributable to the shareholders of Hello

Group Inc.

651,450


(4,242,718)


(665,773)


2,103,484


(2,913,708)


(457,225)













Net income (loss) per share attributable to ordinary

shareholders

Basic

1.57


(10.75)


(1.69)


5.05


(7.20)


(1.13)

Diluted

1.49


(10.75)


(1.69)


4.83


(7.20)


(1.13)

Weighted average shares used in calculating net income (loss)

per ordinary share












Basic

414,839,350


394,694,993


394,694,993


416,914,898


404,701,910


404,701,910

Diluted

449,683,596


394,694,993


394,694,993


452,081,642


404,701,910


404,701,910

 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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








Three months


Year 

Ended December 31


Ended December 31


2020


2021


2021


2020


2021


2021


RMB


RMB


US$


RMB


RMB


US$

Net income (loss)

651,130


(4,244,037)


(665,980)


2,100,392


(2,925,704)


(459,107)

Other comprehensive loss, net of tax:












Foreign currency translation adjustment

(69,010)


(7,331)


(1,150)


(141,677)


(39,161)


(6,145)

Comprehensive income (loss)

582,120


(4,251,368)


(667,130)


1,958,715


(2,964,865)


(465,252)

Less: comprehensive loss attributed to the non-

controlling interest

(9,059)


(3,280)


(515)


(26,004)


(16,603)


(2,605)

Comprehensive income (loss) attributable to

Hello Group Inc.

591,179


(4,248,088)


(666,615)


1,984,719


(2,948,262)


(462,647)

 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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








December 31


December 31


December 31


2020


2021


2021

RMB

RMB


US$

Assets






Current assets






  Cash and cash equivalents

3,363,942


5,570,563


874,143

  Short-term deposits

7,566,250


2,860,000


448,796

  Restricted cash

2,130



Accounts receivable, net of allowance for doubtful accounts of

RMB15,390 and RMB15,127 as of December 31, 2020 and 2021,

respectively

200,831


205,225


32,204

  Prepaid expenses and other current assets

613,696


775,072


121,626

Total current assets

11,746,849


9,410,860


1,476,769

  Long-term deposits

5,550,000


7,200,000


1,129,837

  Long-term restricted cash


76,471


12,000

  Right-of-use assets, net

278,175


257,934


40,475

  Property and equipment, net

265,765


180,664


28,350

  Intangible assets, net

687,211


27,320


4,287

  Rental deposits

21,794


19,204


3,014

  Long-term investments

454,996


820,006


128,677

  Other non-current assets

94,868


83,930


13,170

  Deferred tax assets

32,495


34,849


5,469

  Goodwill

4,088,403



Total assets

23,220,556


18,111,238


2,842,048

Liabilities and equity






Current liabilities






Accounts payable

699,394


726,207


113,957

Deferred revenue

511,617


539,967


84,733

Accrued expenses and other current liabilities

854,835


911,050


142,964

Amount due to related parties

19,462


5,016


787

Lease liabilities due within one year

132,793


162,950


25,570

Income tax payable

236,490


125,773


19,737

Deferred consideration in connection with business acquisitions

62,149


44,802


7,030

Total current liabilities

2,516,740


2,515,765


394,778

  Deferred tax liabilities

171,803


213,384


33,485

  Convertible senior notes

4,658,966


4,565,292


716,394

  Share-based compensation liability

875,616



  Lease liabilities

136,436


103,105


16,179

  Other non-current liabilities

25,666


128,095


20,101

Total liabilities

8,385,227


7,525,641


1,180,937

Shareholder’s equity (i)

14,835,329


10,585,597


1,661,111

Total liabilities and shareholder’s equity

23,220,556


18,111,238


2,842,048







(i): As of December 31, 2021, the number of ordinary shares outstanding was 395,200,884.



 

 

 

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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


Three months


Year


Ended December 31


Ended December 31


2020


2021


2021


2020


2021


2021


RMB


RMB


US$


RMB


RMB


US$

Cash flows from operating activities:












  Net income (loss)

651,130


(4,244,037)


(665,980)


2,100,392


(2,925,704)


(459,107)

  Adjustments to reconcile net income (loss) to net cash provided by

  operating activities:












  Depreciation of property and equipment

55,375


34,226


5,371


208,990


155,537


24,407

  Amortization of intangible assets

37,741


1,279


201


157,258


109,062


17,114

  Share-based compensation

157,584


126,576


19,862


678,686


475,771


74,658

Share of loss on equity method investments

26,319


14,045


2,204


42,522


8,084


1,269

Impairment loss on goodwill and intangible assets


4,397,012


689,987



4,397,012


689,987

Gain or loss on long-term investments

(7,500)


(2,000)


(314)


(1,500)


16,000


2,511

Gain on subsidiary deconsolidation




(6,676)



Gain on disposal of subsidiaries





(15,526)


(2,436)

Loss or gain on disposal of property and equipment

3


(36)


(6)


(282)


1,236


194

Provision of  losses (income) on receivable and other assets

19,663


(505)


(79)


46,075


(263)


(41)

Cash received on investment income distribution




1,153



  Changes in operating assets and liabilities:












  Accounts receivable

34,533


13,984


2,194


52,247


(10,374)


(1,628)

Prepaid expenses and other current assets

104,636


52,504


8,239


(59,117)


(151,162)


(23,721)

  Amount due from a related party




4,382



  Rental deposits

(4,372)


1,171


184


(4,265)


(343)


(54)

  Deferred tax assets

1,535


(338)


(53)


4,569


(2,354)


(369)

  Other non-current assets

(166,665)


42,125


6,610


(138,484)


34,075


5,347

  Accounts payable

66,948


11,053


1,734


(11,716)


30,475


4,782

  Income tax payable

(95,341)


(39,285)


(6,165)


82,514


(110,716)


(17,374)

  Deferred revenue

24,740


9,652


1,515


8,910


35,106


5,509

Accrued expenses and other current liabilities

41,048


99,497


15,613


(120,363)


60,668


9,520

  Amount due to related parties

(12,406)


(9,751)


(1,530)


(10,144)


(14,447)


(2,267)

  Deferred tax liability

(9,435)


207,114


32,501


(39,315)


180,173


28,273

  Share-based compensation liability





(678,153)


(106,417)

  Other non-current liabilities

113,553


(48,777)


(7,654)


85,053


(34,959)


(5,486)

Net cash provided by operating activities

1,039,089


665,509


104,434


3,080,889


1,559,198


244,671

Cash flows from investing activities:












  Purchase of property and equipment

(16,095)


(19,201)


(3,013)


(124,143)


(95,323)


(14,958)

  Payment for long-term investments

(9,000)


(115,052)


(18,054)


(13,500)


(415,052)


(65,131)

  Purchase of short-term deposits

(3,654,500)


(400,000)


(62,769)


(14,949,665)


(4,976,688)


(780,951)

  Cash received on maturity of short-term deposits

3,954,500


3,550,000


557,072


19,577,159


9,667,570


1,517,053

  Payment for short-term investments




(10,000)



  Cash received from sales of short-term investment




10,000



  Cash received on investment income distribution





5,610


880

  Cash of disposed subsidiaries





(8,750)


(1,373)

  Cash received from sales of long term investment

12,000


20,000


3,138


12,000


20,000


3,138

  Purchase of long-term deposits

(900,000)


(1,600,000)


(251,075)


(5,250,000)


(1,850,000)


(290,305)

  Cash received on maturity of long term deposits


200,000


31,384



200,000


31,384

  Other investing activities

2


569


89


(317)


2,975


467

Net cash  (used in) provided by investing activities

(613,093)


1,636,316


256,772


(748,466)


2,550,342


400,204

Cash flows from financing activities:












  Deferred payment for business acquisition


(50)


(8)


(18,355)


(12,957)


(2,033)

  Proceeds from exercise of share options

171


5


1


226


776


122

Repurchase of ordinary shares

(197,799)




(330,206)


(862,865)


(135,402)

  Repurchase of subsidiary’s share options

(932)


(5,070)


(796)


(25,832)


(59,120)


(9,277)

  Dividends payment




(1,123,983)


(852,743)


(133,814)

Net cash used in financing activities

(198,560)


(5,115)


(803)


(1,498,150)


(1,786,909)


(280,404)

Effect of exchange rate changes

(37,770)


(12,972)


(2,035)


(80,944)


(41,669)


(6,538)

Net increase in cash and cash equivalents 

189,666


2,283,738


358,368


753,329


2,280,962


357,933

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

3,176,406


3,363,296


527,775


2,612,743


3,366,072


528,210

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

3,366,072


5,647,034


886,143


3,366,072


5,647,034


886,143

 

 

 

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 December 31, 2020

Ended December 31, 2021


Ended December 31, 2021



GAAP

Amortization of

intangible assets

from business

acquisitions 

Share-based

compensation

Tax impacts

Non-GAAP


GAAP

Impairment

loss on

goodwill and

intangible

assets

Share-

based

compensation

Non-GAAP


GAAP

Impairment loss

on goodwill and

intangible

assets 

Share-based

compensation

Non-GAAP





(ii)











RMB

RMB

RMB

RMB

RMB

RMB

 RMB

RMB 

RMB

US$

US$

US$

US$

Cost of revenues


(2,042,781)

17,694

4,242

(2,020,845)


(2,191,520)

3,393

(2,188,127)


(343,897)

532

(343,365)

Research and development


(327,295)

2,247

38,515

(286,533)


(316,024)

36,303

(279,721)


(49,591)

5,697

(43,894)

Sales and marketing


(697,722)

16,547

27,122

(654,053)


(659,604)

11,024

(648,580)


(103,506)

1,730

(101,776)

General and administrative


(222,191)

87,705

(134,486)


(165,257)

75,856

(89,401)


(25,932)

11,903

(14,029)

Impairment loss on goodwill and intangible assets



(4,397,012)

4,397,012


(689,987)

689,987

Cost and operating expenses


(3,289,989)

36,488

157,584

(3,095,917)


(7,729,417)

4,397,012

126,576

(3,205,829)


(1,212,913)

689,987

19,862

(503,064)

Income (loss) from operations


593,597

36,488

157,584

787,669


(4,016,630)

4,397,012

126,576

506,958


(630,295)

689,987

19,862

79,554

Net income (loss) attributable to Hello Group Inc.

651,450

36,488

157,584

(9,122)

836,400


(4,242,718)

4,397,012

126,576

280,870


(665,773)

689,987

19,862

44,076

 

 

 

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.










Year


Year 


Year


Ended December 31, 2020

Ended December 31, 2021


Ended December 31, 2021



GAAP

Amortization of

intangible assets

from business

acquisitions 

Share-based

compensation

Tax

impacts

Non-GAAP


GAAP

Impairment

loss on

goodwill and

intangible

assets

Amortization of

intangible assets

from business

acquisitions

Share-based

compensation

Tax

impacts

Non-GAAP


GAAP

Impairment

loss on

goodwill and

intangible

assets 

Amortization of

intangible

assets from

business

acquisitions

Share-based

compensation

Tax impacts

Non-GAAP





(ii)






(ii)






(ii)



RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

US$

US$

US$

US$

US$

US$

Cost of revenues


(7,976,781)

73,740

18,449

(7,884,592)


(8,383,431)

51,853

17,941

(8,313,637)


(1,315,543)

8,137

2,815

(1,304,591)

Research and development


(1,167,677)

9,365

175,870

(982,442)


(1,131,781)

3,660

139,571

(988,550)


(177,601)

574

21,902

(155,125)

Sales and marketing


(2,813,922)

68,960

158,902

(2,586,060)


(2,604,309)

48,491

70,821

(2,484,997)


(408,673)

7,609

11,113

(389,951)

General and administrative


(763,150)

325,465

(437,685)


(624,700)

247,438

(377,262)


(98,029)

38,828

(59,201)

Impairment loss on goodwill and intangible assets



(4,397,012)

4,397,012


(689,987)

689,987

Cost and operating expenses


(12,721,530)

152,065

678,686

(11,890,779)


(17,141,233)

4,397,012

104,004

475,771

(12,164,446)


(2,689,833)

689,987

16,320

74,658

(1,908,868)

Income (loss)  from operations


2,531,435

152,065

678,686

3,362,186


(2,389,567)

4,397,012

104,004

475,771

2,587,220


(374,975)

689,987

16,320

74,658

405,990

Net income (loss)  attributable toHello Group Inc.

2,103,484

152,065

678,686

(38,016)

2,896,219


(2,913,708)

4,397,012

104,004

475,771

(26,002)

2,037,077


(457,225)

689,987

16,320

74,658

(4,080)

319,660










































































































(ii) Includes tax impacts related to the amortization of intangible assets from business acquisition. 

















 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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


Three months

  Ended December 31, 2021


Momo


Tantan


QOOL


Unallocated[1]


Total


Total


RMB


RMB


RMB


RMB


RMB


US$

Net revenues:











Live video service

1,947,958


200,827




2,148,785


337,191

Value-added service

1,239,351


236,382




1,475,733


231,575

Mobile marketing

25,369





25,369


3,981

Mobile games

19,294





19,294


3,028

Other services

3,667



1,381



5,048


792

Total net revenues

3,235,639


437,209


1,381



3,674,229


576,567

Cost and expenses (iii):












Cost of revenues

(1,962,718)


(228,290)


(512)



(2,191,520)


(343,897)

Research and development

(233,512)


(82,512)




(316,024)


(49,591)

Sales and marketing

(377,672)


(281,534)


(398)



(659,604)


(103,506)

General and administrative

(147,957)


(10,362)


(6,938)



(165,257)


(25,932)

Impairment loss on goodwill and intangible assets




(4,397,012)


(4,397,012)


(689,987)

Total cost and expenses

(2,721,859)


(602,698)


(7,848)


(4,397,012)


(7,729,417)


(1,212,913)

Other operating income

35,532


3,023


3



38,558


6,051

Income (loss) from operations

549,312


(162,466)


(6,464)


(4,397,012)


(4,016,630)


(630,295)

Interest income

99,399


139


35



99,573


15,625

Interest expense

(18,444)





(18,444)


(2,894)

Other gain or loss, net

2,000





2,000


314

Income (loss) before income tax and share of income on

equity method investments

632,267


(162,327)


(6,429)


(4,397,012)


(3,933,501)


(617,250)

Income tax (expenses) benefits

(311,479)


14,988




(296,491)


(46,526)

Income (loss) before share of income on equity method

investments

320,788


(147,339)


(6,429)


(4,397,012)


(4,229,992)


(663,776)

Share of loss on equity method investments

(14,045)





(14,045)


(2,204)

Net income (loss)

306,743


(147,339)


(6,429)


(4,397,012)


(4,244,037)


(665,980)

























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
































Three months




Ended December 31, 2021




Momo


Tantan


QOOL


Total


Total




RMB


RMB


RMB


RMB


US$



Cost of revenues

2,729


664



3,393


532



Research and development

19,569


16,734



36,303


5,697



Sales and marketing

10,997


27



11,024


1,730



General and administrative

75,808


48



75,856


11,903



Total cost and expenses

109,103


17,473



126,576


19,862































































[1] The impairment loss on goodwill and intangible assets  is presented as an unallocated item in the segment information because our management does not consider this as part of the segment operating performance measure.

 

 

 

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 December 31, 2021


Momo


Tantan


QOOL


Unallocated


Total


Total


RMB


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

549,312


(162,466)


(6,464)


(4,397,012)


(4,016,630)


(630,295)

Share-based compensation

109,103


17,473




126,576


19,862

Impairment loss on goodwill and intangible assets




4,397,012


4,397,012


689,987

Non-GAAP income (loss) from operations

658,415


(144,993)


(6,464)



506,958


79,554













Net income (loss)

306,743


(147,339)


(6,429)


(4,397,012)


(4,244,037)


(665,980)

Share-based compensation

109,103


17,473




126,576


19,862

Impairment loss on goodwill and intangible assets




4,397,012


4,397,012


689,987

Non-GAAP net income (loss)

415,846


(129,866)


(6,429)



279,551


43,869

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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


Three months

Ended December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$[2]

Net revenues:










Live video service

1,923,544


404,331



2,327,875


356,762

Value-added service

1,065,062


336,207



1,401,269


214,754

Mobile marketing

52,663




52,663


8,071

Mobile games

7,334




7,334


1,124

Other services

2,743



3,317


6,060


929

Total net revenues

3,051,346


740,538


3,317


3,795,201


581,640

Cost and expenses (iv):










Cost of revenues

(1,676,071)


(365,350)


(1,360)


(2,042,781)


(313,070)

Research and development

(243,555)


(83,740)



(327,295)


(50,160)

Sales and marketing

(361,115)


(336,558)


(49)


(697,722)


(106,931)

General and administrative

(202,831)


(11,891)


(7,469)


(222,191)


(34,052)

Total cost and expenses

(2,483,572)


(797,539)


(8,878)


(3,289,989)


(504,213)

Other operating income

83,110


3,945


1,330


88,385


13,546

Income (loss) from operations

650,884


(53,056)


(4,231)


593,597


90,973

Interest income

100,347


486


47


100,880


15,461

Interest expense

(19,047)




(19,047)


(2,919)

Other gain or loss, net

7,500




7,500


1,149

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

method investments

739,684


(52,570)


(4,184)


682,930


104,664

Income tax (expenses) benefits

(7,565)


2,084



(5,481)


(840)

Income (loss) before share of income on equity method

investments

732,119


(50,486)


(4,184)


677,449


103,824

Share of loss on equity method investments

(26,319)




(26,319)


(4,034)

Net income (loss)

705,800


(50,486)


(4,184)


651,130


99,790





















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

















Three months


Ended December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

2,844


1,398



4,242


650

Research and development

31,946


6,569



38,515


5,903

Sales and marketing

21,452


5,670



27,122


4,157

General and administrative

84,706


644


2,355


87,705


13,441

Total cost and expenses

140,948


14,281


2,355


157,584


24,151































[2] All translations from RMB to U.S. dollars are made at a rate of RMB6.525 to US$1.00, the effective noon buying rate for December 31, 2020 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 December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

650,884


(53,056)


(4,231)


593,597


90,973

Share-based compensation

140,948


14,281


2,355


157,584


24,151

Amortization of intangible assets from

business acquisitions


36,488



36,488


5,592

Non-GAAP income (loss) from operations

791,832


(2,287)


(1,876)


787,669


120,716











Net income (loss)

705,800


(50,486)


(4,184)


651,130


99,790

Share-based compensation

140,948


14,281


2,355


157,584


24,151

Amortization of intangible assets from

business acquisitions


36,488



36,488


5,592

Tax impacts


(9,122)



(9,122)


(1,398)

Non-GAAP net income (loss)

846,748


(8,839)


(1,829)


836,080


128,135

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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


Year

  Ended December 31, 2021


Momo


Tantan


QOOL


Unallocated


Total


Total


RMB


RMB


RMB


RMB


RMB


US$

Net revenues:











Live video service

7,475,809


903,136




8,378,945


1,314,839

Value-added service

4,845,744


1,126,048




5,971,792


937,104

Mobile marketing

159,010





159,010


24,952

Mobile games

47,712





47,712


7,487

Other services

12,930



5,330



18,260


2,866

Total net revenues

12,541,205


2,029,184


5,330



14,575,719


2,287,248

Cost and expenses (v):












Cost of revenues

(7,301,048)


(1,044,852)


(37,531)



(8,383,431)


(1,315,543)

Research and development

(828,688)


(303,093)




(1,131,781)


(177,601)

Sales and marketing

(1,420,130)


(1,180,146)


(4,033)



(2,604,309)


(408,673)

General and administrative

(619,922)


18,401


(23,179)



(624,700)


(98,029)

Impairment loss on goodwill and intangible assets




(4,397,012)


(4,397,012)


(689,987)

Total cost and expenses

(10,169,788)


(2,509,690)


(64,743)


(4,397,012)


(17,141,233)


(2,689,833)

Other operating income

138,884


37,029


34



175,947


27,610

Income (loss) from operations

2,510,301


(443,477)


(59,379)


(4,397,012)


(2,389,567)


(374,975)

Interest income

383,028


1,091


160



384,279


60,302

Interest expense

(73,776)





(73,776)


(11,577)

Other gain or loss, net

(16,000)





(16,000)


(2,511)

Income (loss) before income tax and share of income on

equity method investments

2,803,553


(442,386)


(59,219)


(4,397,012)


(2,095,064)


(328,761)

Income tax (expenses) benefits

(844,987)


22,431




(822,556)


(129,077)

Income (loss) before share of income on equity method

investments

1,958,566


(419,955)


(59,219)


(4,397,012)


(2,917,620)


(457,838)

Share of loss on equity method investments

(8,084)





(8,084)


(1,269)

Net income (loss)

1,950,482


(419,955)


(59,219)


(4,397,012)


(2,925,704)


(459,107)

























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





































Year




Ended December 31, 2021




Momo


Tantan


QOOL


Total


Total




RMB


RMB


RMB


RMB


US$



Cost of revenues

10,541


7,400



17,941


2,815



Research and development

97,828


41,743



139,571


21,902



Sales and marketing

48,154


22,667



70,821


11,113



General and administrative

314,216


-66,778



247,438


38,828



Total cost and expenses

470,739


5,032



475,771


74,658



 

 

 

Hello Group Inc.



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



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
































































Year


Ended December 31, 2021


Momo


Tantan


QOOL


Unallocated


Total


Total


RMB


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

2,510,301


(443,477)


(59,379)


(4,397,012)


(2,389,567)


(374,975)

Share-based compensation

470,739


5,032




475,771


74,658

Impairment loss on goodwill and intangible

assets




4,397,012


4,397,012


689,987

Amortization of intangible assets from

business acquisitions


104,004




104,004


16,320

Non-GAAP income (loss) from operations

2,981,040


(334,441)


(59,379)



2,587,220


405,990













Net income (loss)

1,950,482


(419,955)


(59,219)


(4,397,012)


(2,925,704)


(459,107)

Share-based compensation

470,739


5,032




475,771


74,658

Impairment loss on goodwill and intangible

assets




4,397,012


4,397,012


689,987

Amortization of intangible assets from

business acquisitions


104,004




104,004


16,320

Tax impacts


(26,002)




(26,002)


(4,080)

Non-GAAP net income (loss)

2,421,221


(336,921)


(59,219)



2,025,081


317,778

 

 

 

Hello Group Inc.

Unaudited Condensed Segment Report

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


Year

Ended December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

8,638,810


998,769



9,637,579


1,477,024

Value-added service

3,742,637


1,369,545



5,112,182


783,476

Mobile marketing

198,197




198,197


30,375

Mobile games

39,564




39,564


6,063

Other services

11,911



24,755


36,666


5,620

Total net revenues

12,631,119


2,368,314


24,755


15,024,188


2,302,558

Cost and expenses (vi):










Cost of revenues

(6,865,836)


(1,088,816)


(22,129)


(7,976,781)


(1,222,495)

Research and development

(844,826)


(322,851)




(1,167,677)


(178,954)

Sales and marketing

(1,454,123)


(1,359,709)


(90)


(2,813,922)


(431,252)

General and administrative

(664,458)


(73,019)


(25,673)


(763,150)


(116,958)

Total cost and expenses

(9,829,243)


(2,844,395)


(47,892)


(12,721,530)


(1,949,659)

Other operating income

223,312


3,945


1,520


228,777


35,062

Income (loss) from operations

3,025,188


(472,136)


(21,617)


2,531,435


387,961

Interest income

440,878


3,353


240


444,471


68,118

Interest expense

(78,872)




(78,872)


(12,088)

Other gain or loss, net

1,500




1,500


230

Income (loss) before income tax and share of

income on equity method investments

3,388,694


(468,783)


(21,377)


2,898,534


444,221

Income tax (expenses) benefits

(770,333)


14,713



(755,620)


(115,804)

Income (loss) before share of income on equity

method investments

2,618,361


(454,070)


(21,377)


2,142,914


328,417

Share of loss on equity method investments

(42,522)




(42,522)


(6,517)

Net income (loss)

2,575,839


(454,070)


(21,377)


2,100,392


321,900





















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























Year


Ended December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

15,189


3,260



18,449


2,827

Research and development

127,714


48,156



175,870


26,953

Sales and marketing

142,908


15,994



158,902


24,353

General and administrative

292,356


22,882


10,227


325,465


49,880

Total cost and expenses

578,167


90,292


10,227


678,686


104,013

 

 

Hello Group Inc.

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

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










































Year


Ended December 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Income (loss) from operations

3,025,188


(472,136)


(21,617)


2,531,435


387,961

Share-based compensation

578,167


90,292


10,227


678,686


104,013

Amortization of intangible assets from business

acquisitions


152,065



152,065


23,305

Non-GAAP income (loss) from operations

3,603,355


(229,779)


(11,390)


3,362,186


515,279











Net income (loss)

2,575,839


(454,070)


(21,377)


2,100,392


321,900

Share-based compensation

578,167


90,292


10,227


678,686


104,013

Amortization of intangible assets from business

acquisitions


152,065



152,065


23,305

Tax impacts


(38,016)



(38,016)


(5,826)

Non-GAAP net income (loss)

3,154,006


(249,729)


(11,150)


2,893,127


443,392

 

 

 

View original content:https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-fourth-quarter-and-fiscal-year-2021-301509804.html

SOURCE Hello Group Inc.

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