omniture

Momo Announces Unaudited Financial Results for the First Quarter of 2020

2020-05-28 14:50 8882

BEIJING, May 28, 2020 /PRNewswire/ -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"), a leading mobile social networking platform in China, today announced its unaudited financial results for the first quarter of 2020.

First Quarter of 2020 Highlights

  • Net revenues decreased by 3.5% year over year to RMB3,594.1 million (US$507.6 million*) in the first quarter of 2020.
  • Net income attributable to Momo Inc. increased to RMB538.9 million (US$76.1 million) in the first quarter of 2020 from RMB289.3 million in the same period of 2019.
  • Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB736.3 million (US$104.0 million) in the first quarter of 2020, from RMB910.3 million in the same period of 2019.
  • Diluted net income per American Depositary Share ("ADS") was RMB2.46 (US$0.35) in the first quarter of 2020, compared to RMB1.36 in the same period of 2019.
  • Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47) in the first quarter of 2020, compared to RMB4.15 in the same period of 2019.
  • Monthly Active Users ("MAU") on Momo application were 108.0 million in March 2020, compared to 114.4 million in March 2019.
  • Total paying users of our live video service and value-added service, without double counting the overlap and including 4.2 million paying users of Tantan Limited ("Tantan"), were 12.8 million for the first quarter of 2020, compared to 14.0 million for the first quarter of 2019, which included 5.0 million paying users of Tantan.

"Q1 2020 was a challenging and yet very fruitful quarter for Momo." commented Yan Tang, Chairman and CEO of Momo. "I am proud that the team has been able to adapt well to the changing environment and navigate through the challenges with solid execution against our strategic goals. Despite the macro headwind, we are seeing plenty of growth opportunities ahead of us. We will continue to pursue these opportunities and drive value for our shareholders."

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB7.0808 to US$1.00, the effective noon buying rate for March 31, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

First Quarter of 2020 Financial Results

Net revenues

Total net revenues were RMB3,594.1 million (US$507.6 million) in the first quarter of 2020, a decrease of 3.5% from RMB3,722.9 million in the first quarter of 2019.

Live video service revenues were RMB2,332.0 million (US$329.3 million) in the first quarter of 2020, a decrease of 13% from RMB2,689.4 million during the same period of 2019, as a result of the impact of COVID-19 adversely affecting the sentiment of our paying users, especially among the top of the pyramid paying users.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,175.8 million (US$166.0 million) in the first quarter of 2020, an increase of 30% from RMB903.8 million during the same period of 2019. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more functions launched and more paying scenarios introduced to enhance the social experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB57.2 million (US$8.1 million) in the first quarter of 2020, a decrease of 29% from RMB80.7 million during the same period of 2019. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers as well as our strategy to underweight the line in terms of resource allocation.

Mobile games revenues were RMB12.7 million (US$1.8 million) in the first quarter of 2020, a decrease of 67% from RMB39.0 million in the first quarter of 2019. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Net revenues from Momo segment decreased from RMB3,419.2 million in the first quarter of 2019 to RMB3,202.1 million (US$452.2 million) in the first quarter of 2020, primarily driven by the decrease in net revenues from live video service, partially offset by the increase in net revenues from value-added service. Net revenues from Tantan segment increased from RMB295.3 million in the first quarter of 2019 to RMB381.7 million (US$53.9 million) in the first quarter of 2020, which was mainly due to the increase in the average revenues per paying user resulting from more features launched.

Cost and expenses

Cost and expenses were RMB3,026.1 million (US$427.4 million) in the first quarter of 2020, a decrease of 10% from RMB3,349.4 million in the first quarter of 2019. The decrease was primarily attributable to: (a) a decrease in share-based compensation expenses due to the related expense from the options granted to Tantan's founders amount of RMB466.9 million as the related share options vested in the first quarter of 2019 when the necessary performance conditions were satisfied; (b) a decrease in revenue sharing with broadcasters related to our live video service. The decrease was partially offset by an increase in marketing and promotional expenses to attract users on Momo and Tantan.

Non-GAAP cost and expenses (note 1) were RMB2,819.2 million (US$398.1 million) in the first quarter of 2020, an increase of 4% from RMB2,719.2 million during the same period of 2019.

Income from operations

Income from operations was RMB594.1 million (US$83.9 million) in the first quarter of 2020, compared to RMB384.4 million during the same period of 2019. Income from operations of Momo segment was RMB770.3 million (US$108.8 million) in the first quarter of 2020, decreasing from RMB998.6 million in the first quarter of 2019. Loss from operations of Tantan segment was RMB171.9 million (US$24.3 million) in the first quarter of 2020, compared to loss from operations of RMB604.6 million in the first quarter of 2019.

Non-GAAP income from operations (note 1) was RMB801.0 million (US$113.1 million) in the first quarter of 2020, compared to RMB1,014.7 million during the same period of 2019. Non-GAAP income from operations of Momo segment was RMB903.1 million (US$127.5 million) in the first quarter of 2020, decreasing from RMB1,098.9 million in the first quarter of 2019. Non-GAAP loss from operations of Tantan segment was RMB100.4 million (US$14.2 million) in the first quarter of 2020, compared to non-GAAP loss from operations of RMB77.1 million in the first quarter of 2019.

Income tax expenses

Income tax expenses were RMB162.9 million (US$23.0 million) in the first quarter of 2020, decreasing from RMB163.7 million in the first quarter of 2019.

Net income

Net income was RMB537.7 million (US$75.9 million) in the first quarter of 2020, compared to RMB286.6 million during the same period of 2019. Net income from Momo segment was RMB707.1 million (US$99.9 million) in the first quarter of 2020, decreasing from RMB893.9 million in the first quarter of 2019. Net loss from Tantan segment was RMB165.1 million (US$23.3 million) in the first quarter of 2020, compared to net loss of RMB597.7 million in the first quarter of 2019.

Non-GAAP net income (note 1) was RMB735.1 million (US$103.8 million) in the first quarter of 2020, compared to RMB907.5 million during the same period of 2019. Non-GAAP net income from Momo segment was RMB839.9 million (US$118.6 million) in the first quarter of 2020, decreasing from RMB994.2 million in the first quarter of 2019. Non-GAAP net loss of Tantan segment was RMB103.2 million (US$14.6 million) in the first quarter of 2020, compared to non-GAAP net loss of RMB79.6 million in the first quarter of 2019.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB538.9 million (US$76.1 million) in the first quarter of 2020, compared to RMB289.3 million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB736.3 million (US$104.0 million) in the first quarter of 2020, compared to RMB910.3 million during the same period of 2019.

Net income per ADS

Diluted net income per ADS was RMB2.46 (US$0.35) in the first quarter of 2020, compared to RMB1.36 in the first quarter of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47) in the first quarter of 2020, compared to RMB4.15 in the first quarter of 2019.

Cash and cash flow

As of March 31, 2020, Momo's cash, cash equivalents and short-term deposits totaled RMB15,467.2 million (US$2,184.4 million), compared to RMB14,925.3 million as of December 31, 2019. Net cash provided by operating activities in the first quarter of 2020 was RMB543.5 million (US$76.8 million), compared to RMB1,175.9 million in the first quarter of 2019.

Recent Development

On March 19, 2020, Momo's board of directors declared a special cash dividend in the amount of US$0.76 per ADS, or US$0.38 per ordinary share. The cash dividend was paid in April 2020 to shareholders of record at the close of business on April 8, 2020. The aggregate amount of cash dividends paid was US$158.6 million.

Business Outlook

For the second quarter of 2020, the Company expects total net revenues to be between RMB3.8 billion to RMB3.9 billion, representing a decrease of 8.5% to 6.1% year over year. This forecast considers the potential impact of the COVID-19 outbreak and reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change, particularly as to the potential impact of the COVID-19 on the economy in China.

Note 1: Non-GAAP measures

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

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

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

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

Conference Call

Momo's management will host an earnings conference call on Thursday, May 28, 2020, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on May 28, 2020).

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

PRE-REGISTER LINK http://apac.directeventreg.com/registration/event/4085667

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

A telephone replay of the call will be available after the conclusion of the conference call through 9:00 a.m. U.S. Eastern Time, June 5, 2020. The dial-in details for the replay are as follows:

International:

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

4085667

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

About Momo

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

Momo Inc.

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

Christensen

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

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

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes and our financial outlook for the second quarter of 2020.

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 first quarter of 2020 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the second quarter of 2020 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  In addition, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, and the impact of the COVID-19 to Momo's business operations and the economy in China.  For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.          

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

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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


Three months


ended   March 31


2019


2020


2020


RMB


RMB


US$

Net revenues:






   Live video service

2,689,413


2,332,004


329,342

   Value-added service

903,849


1,175,754


166,049

   Mobile marketing

80,729


57,155


8,072

   Mobile games

39,008


12,691


1,792

   Other services

9,920


16,480


2,327

Total net revenues

3,722,919


3,594,084


507,582

Cost and expenses:






   Cost of revenues

(1,873,574)


(1,876,916)


(265,071)

   Research and development

(249,431)


(262,159)


(37,024)

   Sales and marketing

(623,848)


(709,808)


(100,244)

   General and administrative

(602,596)


(177,249)


(25,032)

Total cost and expenses

(3,349,449)


(3,026,132)


(427,371)

Other operating income

10,954


26,119


3,689

Income from operations

384,424


594,071


83,900

Interest income

93,778


130,823


18,476

Interest expense

(18,989)


(19,819)


(2,799)

Impairment loss on long-term investments

(4,500)


(6,000)


(847)

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

454,713


699,075


98,730

Income tax expenses

(163,651)


(162,891)


(23,005)

Income before share of income on equity method investments

291,062


536,184


75,725

Share of (loss) income on equity method investments

(4,504)


1,527


216

Net income

286,558


537,711


75,941

Less: net loss attributable to non-controlling interest

(2,759)


(1,195)


(169)

Net income attributable to the shareholders of Momo Inc.

289,317


538,906


76,110

Net income per share attributable to ordinary shareholders






   Basic

0.70


1.29


0.18

   Diluted

0.68


1.23


0.17

Weighted average shares used in calculating net income per ordinary
     share






   Basic

413,967,371


417,294,242


417,294,242

   Diluted

425,890,818


453,331,322


453,331,322

 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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








Three months


ended March 31


2019


2020


2020


RMB


RMB


US$

Net income 

286,558


537,711


75,941

Other comprehensive loss, net of tax






Foreign currency translation adjustment

(72,981)


(867)


(122)

Comprehensive income 

213,577


536,844


75,819

Less: comprehensive loss attributed to the non-controlling interest

(5,234)


(5,569)


(786)

Comprehensive income attributable to Momo Inc.

218,811


542,413


76,605

 

 

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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








December 31


March 31


March 31


2019


2020


2020


RMB

RMB


US$

Assets






Current assets






     Cash and cash equivalents

2,612,743


2,799,214


395,325

     Short-term deposits

12,312,585


12,668,028


1,789,067

     Accounts receivable, net of allowance for doubtful accounts of RMB 12,209 and
       RMB11,555 as of December 31, 2019 and March 31, 2020, respectively

265,155


295,513


41,734

     Amount due from a related party

4,382


2,258


319

     Prepaid expenses and other current assets

599,000


598,495


84,523

Total current assets

15,793,865


16,363,508


2,310,968

     Long-term deposits

300,000


300,000


42,368

     Right-of-use assets, net

190,552


163,926


23,151

     Property and equipment, net

346,345


339,560


47,955

     Intangible assets

890,303


863,878


122,003

     Rental deposits

25,028


25,201


3,559

     Long-term investments

495,905


494,545


69,843

     Other non-current assets

44,009


55,796


7,880

     Deferred tax assets

37,064


35,026


4,947

     Goodwill

4,360,610


4,434,769


626,309

Total assets

22,483,681


23,076,209


3,258,983

Liabilities and equity






Current liabilities






     Accounts payable

714,323


635,546


89,755

     Deferred revenue

503,461


482,455


68,135

     Accrued expenses and other current liabilities

985,873


838,913


118,477

     Amount due to related parties

29,606


34,590


4,885

     Lease liabilities due within one year

135,169


123,451


17,435

     Income tax payable

153,976


174,320


24,619

     Dividends payable

-


1,123,364


158,649

     Deferred consideration in connection with business acquisitions

84,346


85,788


12,116

Total current liabilities

2,606,754


3,498,427


494,071

     Deferred tax liabilities

222,576


215,970


30,501

     Convertible senior notes

4,954,352


5,043,106


712,223

     Share-based compensation liability

902,047


930,603


131,426

     Lease liabilities

56,498


42,972


6,069

     Other non-current liabilities

22,672


41,522


5,864

Total liabilities

8,764,899


9,772,600


1,380,154

Shareholder's equity (i)

13,718,782


13,303,609


1,878,829

Total liabilities and shareholder's equity

22,483,681


23,076,209


3,258,983







      (i): As of March 31, 2020, the number of ordinary shares issued and outstanding was 417,412,368.

 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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








Three months


ended March 31


2019


2020


2020


RMB


RMB


US$

Cash flows from operating activities:






   Net income 

286,558


537,711


75,941

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






     Depreciation of property and equipment

48,400


52,381


7,398

     Amortization of intangible assets

38,595


39,882


5,632

     Share-based compensation

593,074


168,527


23,800

     Share of loss (income) on equity method investments

4,504


(1,527)


(216)

     Impairment loss on long-term investments

4,500


6,000


847

     Gain on subsidiary deconsolidation

-


(6,676)


(943)

     Loss on disposal of property and equipment

4


-


-

     Provision of allowance for doubtful accounts

-


(654)


(92)

     Cash received on investment income distribution

-


1,153


163

   Changes in operating assets and liabilities:






     Accounts receivable

409,414


(37,979)


(5,364)

     Prepaid expenses and other current assets

(18,189)


1,162


164

     Amount due from related parties

-


2,123


300

     Rental deposits

(1,317)


(173)


(24)

     Deferred tax assets

25,537


2,038


288

     Other non-current assets

31,439


14,840


2,096

     Accounts payable

32,515


(80,073)


(11,308)

     Income tax payable

(71,558)


20,344


2,873

     Deferred revenue

18,842


(21,023)


(2,969)

     Accrued expenses and other current liabilities

(185,495)


(154,243)


(21,783)

     Amount due to related parties

(25,965)


4,984


704

     Deferred tax liability

(15,542)


(9,971)


(1,408)

     Other non-current liabilities

593


4,670


660

Net cash provided by operating activities

1,175,909


543,496


76,759

Cash flows from investing activities:






     Purchase of property and equipment

(52,798)


(38,167)


(5,390)

     Proceeds from disposal of property and equipment

5


2


-

     Payment for long-term investments

(12,000)


(4,500)


(636)

     Cash dividend received

-


233


33

     Cash outflow due to subsidiary deconsolidation

-


(1,026)


(145)

     Purchase of short-term deposits

(3,485,005)


(3,300,000)


(466,049)

     Cash received on maturity of short-term deposits

3,005,005


2,979,140


420,735

     Payment for short-term investments

(210,000)


(10,000)


(1,412)

     Cash received from sales of short-term investment

100,000


10,000


1,412

Net cash used in investing activities

(654,793)


(364,318)


(51,452)

Cash flows from financing activities:






     Deferred payment for business acquisition

(305,067)


-


-

     Proceeds from exercise of share options

83


-


-

     Deferred payment of purchase of property and equipment

(94)


-


-

Net cash used in financing activities

(305,078)


-


-

Effect of exchange rate changes

(5,730)


7,293


1,028

Net increase in cash and cash equivalents 

210,308


186,471


26,335

Cash and cash equivalents at the beginning of period

2,468,034


2,612,743


368,990

Cash and cash equivalents at the end of period

2,678,342


2,799,214


395,325

 

 

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 March 31, 2019


ended March 31, 2020


ended March 31, 2020


GAAP

Amortization
of intangible
assets from
business

acquisitions 

Share-
based
compensation

Tax
impacts

(ii)

Non-GAAP


GAAP

Amortization
of intangible
assets from
business
acquisitions

Share-
based
compensation

Tax
impacts

(ii)

Non-GAAP


GAAP

Amortization
of intangible
assets from
business
acquisitions

Share-
based
compensation

Tax
impacts

(ii)

Non-GAAP


RMB

RMB

RMB

RMB

RMB


RMB

RMB

RMB

RMB

RMB


US$

US$

US$

US$

US$

Cost of revenues

(1,873,574)

18,021

4,186

-

(1,851,367)


(1,876,916)

18,645

6,969

-

(1,851,302)


(265,071)

2,633

984

-

(261,454)

Research and
     development

(249,431)

2,289

39,730

-

(207,412)


(262,159)

2,368

42,760

-

(217,031)


(37,024)

334

6,039

-

(30,651)

Sales and marketing

(623,848)

16,853

39,452

-

(567,543)


(709,808)

17,436

47,074

-

(645,298)


(100,244)

2,462

6,648

-

(91,134)

General and
     administrative

(602,596)

-

509,706

-

(92,890)


(177,249)

-

71,724

-

(105,525)


(25,032)

-

10,129

-

(14,903)

Cost and operating
     expenses

(3,349,449)

37,163

593,074

-

(2,719,212)


(3,026,132)

38,449

168,527

-

(2,819,156)


(427,371)

5,429

23,800

-

(398,142)

Income from operations

384,424

37,163

593,074

-

1,014,661


594,071

38,449

168,527

-

801,047


83,900

5,429

23,800

-

113,129

Net income attributable to
     Momo Inc.

289,317

37,163

593,074

(9,291)

910,263


538,906

38,449

168,527

(9,612)

736,270


76,110

5,429

23,800

(1,357)

103,982
















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

 

Momo Inc.

Unaudited Condensed Segment Report

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



Three months


  ended   March 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










   Live video service

2,325,945


6,059


-


2,332,004


329,342

   Value-added service

800,103


375,651


-


1,175,754


166,049

   Mobile marketing

57,155


-


-


57,155


8,072

   Mobile games

12,691


-


-


12,691


1,792

   Other services

6,195


-


10,285


16,480


2,327

Total net revenues

3,202,089


381,710


10,285


3,594,084


507,582

Cost and expenses (iii):










   Cost of revenues

(1,736,517)


(132,278)


(8,121)


(1,876,916)


(265,071)

   Research and development

(183,900)


(78,259)


-


(262,159)


(37,024)

   Sales and marketing

(394,364)


(315,421)


(23)


(709,808)


(100,244)

   General and administrative

(143,135)


(27,680)


(6,434)


(177,249)


(25,032)

Total cost and expenses

(2,457,916)


(553,638)


(14,578)


(3,026,132)


(427,371)

Other operating income

26,119


-


-


26,119


3,689

Income (loss) from operations

770,292


(171,928)


(4,293)


594,071


83,900

Interest income

129,278


1,472


73


130,823


18,476

Interest expense

(19,819)


-


-


(19,819)


(2,799)

Impairment loss on long-term investments

(6,000)


-


-


(6,000)


(847)

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

873,751


(170,456)


(4,220)


699,075


98,730

Income tax (expenses) benefits

(168,212)


5,321


-


(162,891)


(23,005)

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

705,539


(165,135)


(4,220)


536,184


75,725

Share of loss on equity method
     investments

1,527


-


-


1,527


216

Net income (loss)

707,066


(165,135)


(4,220)


537,711


75,941











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












Three months


ended March 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

5,611


1,358


-


6,969


984

Research and development

26,802


15,958


-


42,760


6,039

Sales and marketing

45,441


1,633


-


47,074


6,648

General and administrative

54,984


14,121


2,619


71,724


10,129

Total cost and expenses

132,838


33,070


2,619


168,527


23,800

 

Momo Inc.

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

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












Three months


ended March 31, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

770,292


(171,928)


(4,293)


594,071


83,900

Share-based compensation

132,838


33,070


2,619


168,527


23,800

Amortization of intangible assets from
     business acquisitions

-


38,449


-


38,449


5,429

Non-GAAP operating income (loss)

903,130


(100,409)


(1,674)


801,047


113,129











Net income (loss)

707,066


(165,135)


(4,220)


537,711


75,941

Share-based compensation

132,838


33,070


2,619


168,527


23,800

Amortization of intangible assets from
     business acquisitions

-


38,449


-


38,449


5,429

Tax impacts

-


(9,612)


-


(9,612)


(1,357)

Non-GAAP net income (loss)

839,904


(103,228)


(1,601)


735,075


103,813

 

Momo Inc.

Unaudited Condensed Segment Report

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


Three months

ended March 31, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$[2]

Net revenues:










   Live video service

2,689,413


-


-


2,689,413


400,735

   Value-added service

608,502


295,347


-


903,849


134,678

   Mobile marketing

80,729


-


-


80,729


12,029

   Mobile games

39,008


-


-


39,008


5,812

   Other services

1,557


-


8,363


9,920


1,478

Total net revenues

3,419,209


295,347


8,363


3,722,919


554,732

Cost and expenses (iv):










   Cost of revenues

(1,770,038)


(98,856)


(4,680)


(1,873,574)


(279,171)

   Research and development

(184,273)


(65,158)


-


(249,431)


(37,166)

   Sales and marketing

(362,958)


(255,921)


(4,969)


(623,848)


(92,956)

   General and administrative

(114,264)


(479,965)


(8,367)


(602,596)


(89,790)

Total cost and expenses

(2,431,533)


(899,900)


(18,016)


(3,349,449)


(499,083)

Other operating income

10,954


-


-


10,954


1,632

Income (loss) from operations

998,630


(604,553)


(9,653)


384,424


57,281

Interest income

90,858


2,891


29


93,778


13,973

Interest expense

(18,989)


-


-


(18,989)


(2,829)

Impairment loss on long-term investments

(4,500)


-


-


(4,500)


(671)

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

1,065,999


(601,662)


(9,624)


454,713


67,754

Income tax (expenses) benefits

(167,603)


3,952


-


(163,651)


(24,385)

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

898,396


(597,710)


(9,624)


291,062


43,369

Share of income on equity method
     investments

(4,504)


-


-


(4,504)


(671)

Net income (loss)

893,892


(597,710)


(9,624)


286,558


42,698











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












Three months


ended March 31, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

3,606


580


-


4,186


624

Research and development

21,713


18,017


-


39,730


5,920

Sales and marketing

35,474


3,978


-


39,452


5,879

General and administrative

39,491


467,684


2,531


509,706


75,949

Total cost and expenses

100,284


490,259


2,531


593,074


88,372





















[2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.7112 to US$1.00, the effective noon buying rate for March 29, 2019
as set forth in the H.10 statistical release of the Federal Reserve Board.

 

Momo Inc.

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

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












Three months


ended March 31, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

998,630


(604,553)


(9,653)


384,424


57,281

Share-based compensation

100,284


490,259


2,531


593,074


88,372

Amortization of intangible assets from
business acquisitions

-


37,163


-


37,163


5,537

Non-GAAP operating income (loss)

1,098,914


(77,131)


(7,122)


1,014,661


151,190











Net income (loss)

893,892


(597,710)


(9,624)


286,558


42,698

Share-based compensation

100,284


490,259


2,531


593,074


88,372

Amortization of intangible assets from
business acquisitions

-


37,163


-


37,163


5,537

Tax impacts

-


(9,291)


-


(9,291)


(1,384)

Non-GAAP net income (loss)

994,176


(79,579)


(7,093)


907,504


135,223

 

Cision View original content:http://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-first-quarter-of-2020-301066759.html

Source: Momo Inc.
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