omniture

Momo Announces Unaudited Financial Results for the Second Quarter of 2020

2020-09-03 16:15 21437

BEIJING, Sept. 3, 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 second quarter of 2020.

Second Quarter of 2020 Highlights

  • Net revenues decreased by 6.8% year over year to RMB3,868.3 million (US$547.5 million*) in the second quarter of 2020.
  • Net income attributable to Momo Inc. decreased to RMB456.4 million (US$64.6 million) in the second quarter of 2020 from RMB731.8 million in the same period of 2019.
  • Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB669.8 million (US$94.8 million) in the second quarter of 2020, from RMB1,242.5 million in the same period of 2019.
  • Diluted net income per American Depositary Share ("ADS") was RMB2.11 (US$0.30) in the second quarter of 2020, compared to RMB3.33 in the same period of 2019.
  • Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.43) in the second quarter of 2020, compared to RMB5.60 in the same period of 2019.
  • Monthly Active Users ("MAU") on Momo application were 111.5 million in June 2020, compared to 113.5 million in June 2019.
  • Total paying users of our live video service and value-added service, without double counting the overlap and including 3.9 million paying users of Tantan Limited ("Tantan"), were 12.8 million for the second quarter of 2020, compared to 11.8 million for the second quarter of 2019, which included 3.2 million paying users of Tantan.

First Half of 2020 Highlights

  • Net revenues decreased 5.2% year over year to RMB7,462.3 million (US$1,056.2 million) for the first half of 2020.
  • Net income attributable to Momo Inc. was RMB995.3 million (US$140.9 million) for the first half of 2020, compared with RMB1,021.1 million during the same period of 2019.
  • Non-GAAP net income attributable to Momo Inc. (note 1) was RMB1,406.0 million (US$199.0 million) for the first half of 2020, compared with RMB2,152.8 million during the same period of 2019.
  • Diluted net income per ADS was RMB4.57 (US$0.65) for the first half of 2020, compared with RMB4.71 during the same period of 2019.
  • Non-GAAP diluted net income per ADS (note 1) was RMB6.39 (US$0.90) for the first half of 2020, compared with RMB9.75 during the same period of 2019.

* 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 RMB7.0651 to US$1.00, the effective noon buying rate for June 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

CEO statement

"The second quarter of 2020 was a busy quarter for us. With things gradually coming back to normal on the traffic side, starting from the second quarter of 2020, our teams have stepped up efforts to push toward our long term strategic goals." commented Yan Tang, Chairman and CEO of Momo. "I am glad to see that Tantan has reached a breakthrough with its testing of live video service. With the strength coming from Tantan and the value-added service on the core Momo, we can now focus more on driving structural changes to the core live broadcasting business so that it can grow healthily and steadily in the new macro environment."

Second Quarter of 2020 Financial Results

Net revenues

Total net revenues were RMB3,868.3 million (US$547.5 million) in the second quarter of 2020, a decrease of 6.8% from RMB4,152.6 million in the second quarter of 2019.

Live video service revenues were RMB2,602.9 million (US$368.4 million) in the second quarter of 2020, a decrease of 16% from RMB3,099.9 million during the same period of 2019. The decrease was primarily due to the impact of COVID-19 adversely affecting the sentiment of our paying users, especially among the top of the pyramid paying users. Meanwhile, Tantan has been accelerating the testing of its live video service since the middle of April, and live video service revenues from Tantan were 191.7 million (US$27.1 million) in the second quarter of 2020.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,204.3 million (US$170.5 million) in the second quarter of 2020, an increase of 27% from RMB948.4 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 innovative features launched and more paying scenarios introduced to enhance the social entertainment experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB38.0 million (US$5.4 million) in the second quarter of 2020, a decrease of 50% from RMB76.2 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 RMB11.6 million (US$1.6 million) in the second quarter of 2020, a decrease of 50% from RMB23.2 million in the second 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 RMB3,865.4 million in the second quarter of 2019 to RMB3,340.7 million (US$472.8 million) in the second quarter of 2020, primarily due to 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 RMB284.8 million in the second quarter of 2019 to RMB517.2 million (US$73.2 million) in the second quarter of 2020, which was mainly due to the increase in net revenues from live video service.

Cost and expenses

Cost and expenses were RMB3,146.9 million (US$445.4 million) in the second quarter of 2020, a decrease of 7.1% from RMB3,386.8 million in the second 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 in the amount of RMB323.7 million charged in the second 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 Tantan, and an increase in revenue sharing with virtual gift recipients for our virtual gift service.

Non-GAAP cost and expenses (note 1) were RMB2,923.7 million (US$413.8 million) in the second quarter of 2020, an increase of 2.0% from RMB2,866.7 million during the same period of 2019.

Other operating income

Other operating income was RMB91.3 million (US$12.9 million) in the second quarter of 2020, a decrease from RMB161.9 million during the second quarter of 2019. The decrease was mainly due to less government incentives received in the second quarter of 2020.

Income from operations

Income from operations was RMB812.7 million (US$115.0 million) in the second quarter of 2020, compared to RMB927.7 million during the same period of 2019. Income from operations of Momo segment was RMB945.3 million (US$133.8 million) in the second quarter of 2020, decreasing from RMB1,354.4 million in the second quarter of 2019. Loss from operations of Tantan segment was RMB125.6 million (US$17.8 million) in the second quarter of 2020, compared to loss from operations of RMB431.4 million in the second quarter of 2019.

Non-GAAP income from operations (note 1) was RMB1,035.8 million (US$146.6 million) in the second quarter of 2020, compared to RMB1,447.9 million during the same period of 2019. Non-GAAP income from operations of Momo segment was RMB1,102.6 million (US$156.1 million) in the second quarter of 2020, decreasing from RMB1,488.5 million in the second quarter of 2019. Non-GAAP loss from operations of Tantan segment was RMB62.4 million (US$8.8 million) in the second quarter of 2020, compared to non-GAAP loss from operations of RMB47.9 million in the second quarter of 2019.

Income tax expenses

Income tax expenses were RMB443.6 million (US$62.8 million) in the second quarter of 2020, increasing from RMB283.9 million in the second quarter of 2019. The increase in income tax expenses was mainly due to the payment of withholding income tax of 10% on dividends distributed by our wholly-foreign owned enterprise ("WFOE") in China to our offshore entity in the second quarter of 2020. The dividends of RMB2,200.0 million (US$311.4 million) and withholding income tax of RMB220.0 million (US$31.1 million) were paid in the second quarter of 2020.

Net income

Net income was RMB455.5 million (US$64.5 million) in the second quarter of 2020, compared to RMB731.1 million during the same period of 2019. Net income from Momo segment was RMB586.7 million (US$83.0 million) in the second quarter of 2020, decreasing from RMB1,149.5 million in the second quarter of 2019. Net loss from Tantan segment was RMB124.3 million (US$17.6 million) in the second quarter of 2020, compared to net loss of RMB423.2 million in the second quarter of 2019.

Non-GAAP net income (note 1) was RMB668.9 million (US$94.7 million) in the second quarter of 2020, compared to RMB1,241.8 million during the same period of 2019. Non-GAAP net income from Momo segment was RMB744.0 million (US$105.3 million) in the second quarter of 2020, decreasing from RMB1,283.6 million in the second quarter of 2019. Non-GAAP net loss of Tantan segment was RMB70.8 million (US$10.0 million) in the second quarter of 2020, compared to non-GAAP net loss of RMB49.1 million in the second quarter of 2019.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB456.4 million (US$64.6 million) in the second quarter of 2020, compared to RMB731.8 million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB669.8 million (US$94.8 million) in the second quarter of 2020, compared to RMB1,242.5 million during the same period of 2019.

Net income per ADS

Diluted net income per ADS was RMB2.11 (US$0.30) in the second quarter of 2020, compared to RMB3.33 in the second quarter of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.43) in the second quarter of 2020, compared to RMB5.60 in the second quarter of 2019.

Cash and cash flow

As of June 30, 2020, Momo's cash, cash equivalents, short-term deposits and long-term deposits totaled RMB15,376.5 million (US$2,176.4 million), compared to RMB15,225.3 million as of December 31, 2019. Net cash provided by operating activities in the second quarter of 2020 was RMB807.3 million (US$114.3 million), compared to RMB1,422.0 million in the second quarter of 2019.

First Half of 2020 Financial Results

Net revenues for the first half of 2020 were RMB7,462.3 million (US$1,056.2 million), a decrease of 5.2% from RMB7,875.5 million in the same period of 2019.

Net income attributable to Momo Inc. was RMB995.3 million (US$140.9 million) for the first half of 2020, compared to RMB1,021.1 million during the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB1,406.0 million (US$199.0 million) for the first half of 2020, compared to RMB2,152.8 million during the same period of 2019.

Diluted net income per ADS was RMB4.57 (US$0.65) during the first half of 2020, compared to RMB4.71 in the same period of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB6.39 (US$0.90) during the first half of 2020, compared to RMB9.75 in the same period of 2019.

Net cash provided by operating activities was RMB1,350.7 million (US$191.2 million) during the first half of 2020, compared to RMB2,597.9 million in the same period of 2019.

Recent Development

On September 3, 2020, Momo's board of directors authorized a share repurchase program under which the Company may repurchase up to US$300 million of its shares over the next 12 months.

The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices, in 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. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The timing and conditions of the share repurchases will be subject to various factors, including the requirements under Rule 10b-18 and Rule 10b5-1 promulgated pursuant to the Securities Exchange Act of 1934, as amended. The Company plans to fund repurchases from its existing cash balance.

Business Outlook

For the third quarter of 2020, the Company expects total net revenues to be between RMB3.7 billion to RMB3.8 billion, representing a decrease of 16.9% to 14.6% 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, September 3, 2020, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on September 3, 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/9767454

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, September 11, 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:

9767454

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. Eric Yuan
Phone: +86-10-5900-1548
E-mail: Eyuan@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, our financial outlook for the third quarter of 2020, 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 2020 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the third quarter of 2020 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 to Momo's business operations and the economy in China, the market price of Momo's stock prevailing from time to time, the nature of other investment opportunities presented to Momo from time to time, Momo'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.

 

 

 


Momo 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


2019


2020


2020


2019


2020


2020



RMB


RMB


US$


RMB


RMB


US$


Net revenues:













Live video service

3,099,887


2,602,876


368,413


5,789,300


4,934,880


698,487


Value-added service

948,394


1,204,320


170,460


1,852,243


2,380,074


336,878


Mobile marketing

76,208


37,964


5,373


156,937


95,119


13,463


Mobile games

23,240


11,564


1,637


62,248


24,255


3,433


Other services

4,901


11,528


1,633


14,821


28,008


3,964


Total net revenues

4,152,630


3,868,252


547,516


7,875,549


7,462,336


1,056,225


Cost and expenses:













Cost of revenues

(2,063,863)


(2,036,305)


(288,220)


(3,937,437)


(3,913,221)


(553,880)


Research and development

(251,658)


(279,002)


(39,490)


(501,089)


(541,161)


(76,596)


Sales and marketing

(570,609)


(651,500)


(92,214)


(1,194,457)


(1,361,308)


(192,681)


General and administrative

(500,660)


(180,061)


(25,486)


(1,103,256)


(357,310)


(50,574)


Total cost and expenses

(3,386,790)


(3,146,868)


(445,410)


(6,736,239)


(6,173,000)


(873,731)


Other operating income

161,901


91,329


12,927


172,855


117,448


16,624


Income from operations

927,741


812,713


115,033


1,312,165


1,406,784


199,118


Interest income

100,175


108,536


15,362


193,953


239,359


33,879


Interest expense

(19,315)


(20,121)


(2,848)


(38,304)


(39,940)


(5,653)


Impairment loss on long-term
    investments

-


-


-


(4,500)


(6,000)


(849)


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

1,008,601


901,128


127,547


1,463,314


1,600,203


226,495


Income tax expenses

(283,868)


(443,633)


(62,792)


(447,519)


(606,524)


(85,848)


Income before share of
   income on equity method
   investments

724,733


457,495


64,755


1,015,795


993,679


140,647


Share of income (loss) on
   equity method investments

6,375


(1,967)


(278)


1,871


(440)


(62)


Net income

731,108


455,528


64,477


1,017,666


993,239


140,585


Less: net loss attributable to
   non-controlling interest

(669)


(872)


(123)


(3,428)


(2,067)


(293)


Net income attributable to
   the shareholders of
   Momo Inc.

731,777


456,400


64,600


1,021,094


995,306


140,878


 

Net income per share
   attributable to ordinary
   shareholders













Basic

1.76


1.09


0.15


2.46


2.38


0.34


Diluted

1.67


1.05


0.15


2.36


2.29


0.32


Weighted average shares
   used in calculating net
   income per ordinary share













Basic

414,769,943


417,559,984


417,559,984


414,370,874


417,427,113


417,427,113


Diluted

450,480,301


452,500,168


452,500,168


449,410,610


452,915,745


452,915,745

















 

 

 

Momo 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


ended June 30



2019


2020


2020


2019


2020


2020


RMB


RMB


US$


RMB


RMB


US$

Net income

731,108


455,528


64,477


1,017,666


993,239


140,585

Other comprehensive income
   (loss), net of tax












Foreign currency translation
   adjustment

40,899


8,818


1,248


(32,082)


7,951


1,125

Comprehensive income

772,007


464,346


65,725


985,584


1,001,190


141,710

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

2,271


(1,423)


(201)


(2,963)


(6,992)


(990)

Comprehensive income
   attributable to Momo Inc.

769,736


465,769


65,926


988,547


1,008,182


142,700






















 

 

 

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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








December 31


June 30


June 30


2019


2020


2020

RMB

RMB


US$

Assets






Current assets






Cash and cash equivalents

2,612,743


2,977,583


421,450

Short-term deposits

12,312,585


9,298,879


1,316,171

Accounts receivable, net of allowance for doubtful accounts of RMB 12,209 and
RMB10,240 as of December 31, 2019 and June 30, 2020, respectively

265,155


254,710


36,052

Amount due from a related party

4,382


2,029


287

Prepaid expenses and other current assets

599,000


554,848


78,535

Total current assets

15,793,865


13,088,049


1,852,495

Long-term deposits

300,000


3,100,000


438,777

Right-of-use assets, net

190,552


144,313


20,426

Property and equipment, net

346,345


327,855


46,405

Intangible assets

890,303


821,860


116,327

Rental deposits

25,028


24,838


3,516

Long-term investments

495,905


492,578


69,720

Other non-current assets

44,009


71,998


10,191

Deferred tax assets

37,064


34,591


4,896

Goodwill

4,360,610


4,424,985


626,316

Total assets

22,483,681


22,531,067


3,189,069

Liabilities and equity






Current liabilities






Accounts payable

714,323


692,865


98,071

Deferred revenue

503,461


470,187


66,551

Accrued expenses and other current liabilities

985,873


785,415


111,169

Amount due to related parties

29,606


18,373


2,601

Lease liabilities due within one year

135,169


122,427


17,328

Income tax payable

153,976


219,032


31,002

Deferred consideration in connection with business acquisitions

84,346


67,293


9,525

Total current liabilities

2,606,754


2,375,592


336,247

Deferred tax liabilities

222,576


205,465


29,082

Convertible senior notes

4,954,352


5,035,982


712,797

Share-based compensation liability

902,047


931,401


131,831

Lease liabilities

56,498


21,226


3,004

Other non-current liabilities

22,672


38,662


5,472

Total liabilities

8,764,899


8,608,328


1,218,433

Shareholder's equity (i)

13,718,782


13,922,739


1,970,636

Total liabilities and shareholder's equity

22,483,681


22,531,067


3,189,069



(i): As of June 30, 2020, the number of ordinary shares issued and outstanding was 418,121,042.

 

 

 


Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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



Three months


First half year



ended June 30


ended June 30



2019


2020


2020


2019


2020


2020



RMB


RMB


US$


RMB


RMB


US$


Cash flows from operating activities:













Net income

731,108


455,528


64,477


1,017,666


993,239


140,585


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













Depreciation of property and equipment

48,236


52,210


7,390


96,636


104,591


14,804


Amortization of intangible assets

39,020


40,288


5,702


77,615


80,170


11,347


Share-based compensation

482,537


184,100


26,058


1,075,611


352,627


49,911


Share of (income) loss on equity method
   investments

(6,375)


1,967


278


(1,871)


440


62


Impairment loss on long-term investments

-


-


-


4,500


6,000


849


Gain on subsidiary deconsolidation

-


-


-


-


(6,676)


(945)


Gain on disposal of property and equipment

(338)


(1)


-


(334)


(1)


-


Provision of allowance for doubtful accounts

9,309


1,060


150


9,309


406


57


Cash received on investment income distribution

-


-


-


-


1,153


163


Changes in operating assets and liabilities:













Accounts receivable

25,712


39,725


5,623


435,126


1,746


247


Prepaid expenses and other current assets

19,385


42,671


6,040


1,196


43,833


6,204


Amount due from a related party

(271)


230


33


(271)


2,353


333


Rental deposits

(1,078)


363


51


(2,395)


190


27


Deferred tax assets

570


435


62


26,107


2,473


350


Other non-current assets

(18,796)


3,411


483


12,643


18,251


2,583


Accounts payable

55,573


63,598


9,002


88,088


(16,475)


(2,332)


Income tax payable

64,570


44,712


6,329


(6,988)


65,056


9,208


Deferred revenue

(48,764)


(12,249)


(1,734)


(29,922)


(33,272)


(4,709)


Accrued expenses and other current liabilities

43,872


(59,987)


(8,491)


(141,623)


(214,230)


(30,322)


Amount due to related parties

(16,752)


(16,217)


(2,295)


(42,717)


(11,233)


(1,590)


Deferred tax liability

(9,755)


(10,072)


(1,426)


(25,297)


(20,043)


(2,837)


Other non-current liabilities

4,201


(24,522)


(3,471)


4,794


(19,852)


(2,810)


Net cash provided by operating activities

1,421,964


807,250


114,261


2,597,873


1,350,746


191,185


Cash flows from investing activities:













Purchase of property and equipment

(41,682)


(45,803)


(6,483)


(94,480)


(83,970)


(11,885)


Proceeds from disposal of property and equipment

505


15


2


510


17


2


Payment for long-term investments

(12,000)


-


-


(24,000)


(4,500)


(637)


Prepayment of long-term investments

(15,000)


-


-


(15,000)


-


-


Cash dividend received

-


-


-


-


233


33


Cash outflow due to subsidiary deconsolidation

-


-


-


-


(1,026)


(145)


Purchase of short-term deposits

(6,230,000)


(4,941,858)


(699,475)


(9,715,005)


(8,241,858)


(1,166,559)


Cash received on maturity of short-term deposits

4,860,025


8,306,434


1,175,699


7,865,030


11,285,574


1,597,369


Payment for short-term investments

(40,000)


-


-


(250,000)


(10,000)


(1,415)


Cash received from sales of short-term investment

60,000


-


-


160,000


10,000


1,415


Purchase of long-term deposits

-


(2,800,000)


(396,314)


-


(2,800,000)


(396,314)


Net cash (used in) provided by investing activities

(1,418,152)


518,788


73,429


(2,072,945)


154,470


21,864


Cash flows from financing activities:













Deferred payment for business acquisition

(73,681)


(18,355)


(2,598)


(378,748)


(18,355)


(2,598)


Proceeds from exercise of share options

32


1


-


115


1


-


Deferred payment of purchase of property and
   equipment

-


-


-


(94)


-


-


Dividends payment

(877,346)


(1,123,983)


(159,089)


(877,346)


(1,123,983)


(159,089)


Net cash used in financing activities

(950,995)


(1,142,337)


(161,687)


(1,256,073)


(1,142,337)


(161,687)


Effect of exchange rate changes

4,584


(5,332)


(756)


(1,146)


1,961


278


Net (decrease) increase in cash and cash
   equivalents

(942,599)


178,369


25,247


(732,291)


364,840


51,640


Cash and cash equivalents at the beginning of period

2,678,342


2,799,214


396,203


2,468,034


2,612,743


369,810


Cash and cash equivalents at the end of period

1,735,743


2,977,583


421,450


1,735,743


2,977,583


421,450


 


 

 




Momo Inc.




Reconciliation of Non-GAAP financial measures to comparable GAAP measures




(All amounts in thousands, except per share data)








1.

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










Three months


Three months


Three months


ended June 30, 2019

ended June 30, 2020


ended June 30, 2020



 

 

GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-
based compensation

RMB

Tax impacts

(ii)
RMB

Non-GAAP

RMB


GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-
based compensation

RMB

Tax impacts

(ii)

RMB

Non-GAAP

RMB


GAAP

US$

Amortization of intangible assets from business acquisitions

US$

Share-
based compensation

US$

Tax impacts

(ii)

US$

Non-GAAP

US$


Cost of revenues

(2,063,863)

18,227

5,447

-

(2,040,189)


(2,036,305)

18,929

2,804

-

(2,014,572)


(288,220)

2,679

397

-

(285,144)


Research and
   development

(251,658)

2,315

44,523

-

(204,820)


(279,002)

2,404

49,985

-

(226,613)


(39,490)

340

7,075

-

(32,075)


Sales and marketing

(570,609)

17,045

51,293

-

(502,271)


(651,500)

17,702

43,123

-

(590,675)


(92,214)

2,506

6,104

-

(83,604)


General and
   administrative

(500,660)

-

381,274

-

(119,386)


(180,061)

-

88,188

-

(91,873)


(25,486)

-

12,482

-

(13,004)


Cost and operating
   expenses

(3,386,790)

37,587

482,537

-

(2,866,666)


(3,146,868)

39,035

184,100

-

(2,923,733)


(445,410)

5,525

26,058

-

(413,827)


Income from operations

927,741

37,587

482,537

-

1,447,865


812,713

39,035

184,100

-

1,035,848


115,033

5,525

26,058

-

146,616


Net income attributable to
   Momo Inc.

731,777

37,587

482,537

(9,397)

1,242,504


456,400

39,035

184,100

(9,759)

669,776


64,600

5,525

26,058

(1,381)

94,802
























































 

 

 




Momo Inc.




Reconciliation of Non-GAAP financial measures to comparable GAAP measures




(All amounts in thousands, except per share data)








1.

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










First half year


First half year


First half year


ended June 30, 2019

ended June 30, 2020


ended June 30, 2020



 

 

GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-
based compensation

RMB

Tax impacts

(ii)
RMB

Non-GAAP

RMB


GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-
based compensation

RMB

Tax impacts

(ii)

RMB

Non-GAAP

RMB


GAAP

US$

Amortization of intangible assets from business acquisitions

US$

Share-
based compensation

US$

Tax impacts

(ii)

US$

Non-GAAP

US$


Cost of revenues

(3,937,437)

36,248

9,633

-

(3,891,556)


(3,913,221)

37,574

9,773

-

(3,865,874)


(553,880)

5,318

1,383

-

(547,179)


Research and
   development

(501,089)

4,604

84,253

-

(412,232)


(541,161)

4,772

92,745

-

(443,644)


(76,596)

675

13,127

-

(62,794)


Sales and marketing

(1,194,457)

33,898

90,745

-

(1,069,814)


(1,361,308)

35,138

90,197

-

(1,235,973)


(192,681)

4,973

12,767

-

(174,941)


General and 
   administrative

(1,103,256)

-

890,980

-

(212,276)


(357,310)

-

159,912

-

(197,398)


(50,574)

-

22,634

-

(27,940)


Cost and operating
   expenses

(6,736,239)

74,750

1,075,611

-

(5,585,878)


(6,173,000)

77,484

352,627

-

(5,742,889)


(873,731)

10,966

49,911

-

(812,854)


Income from
   operations

1,312,165

74,750

1,075,611

-

2,462,526


1,406,784

77,484

352,627

-

1,836,895


199,118

10,966

49,911

-

259,995


Net income attributable
    to Momo Inc.

1,021,094

74,750

1,075,611

(18,688)

2,152,767


995,306

77,484

352,627

(19,371)

1,406,046


140,878

10,966

49,911

(2,742)

199,013

























































































(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 June 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

2,411,223


191,653


-


2,602,876


368,413

Value-added service

878,804


325,516


-


1,204,320


170,460

Mobile marketing

37,964


-


-


37,964


5,373

Mobile games

11,564


-


-


11,564


1,637

Other services

1,163


-


10,365


11,528


1,633

Total net revenues

3,340,718


517,169


10,365


3,868,252


547,516

Cost and expenses (iii):










Cost of revenues

(1,792,442)


(232,445)


(11,418)


(2,036,305)


(288,220)

Research and development

(202,774)


(76,228)


-


(279,002)


(39,490)

Sales and marketing

(337,196)


(314,293)


(11)


(651,500)


(92,214)

General and administrative

(154,161)


(19,828)


(6,072)


(180,061)


(25,486)

Total cost and expenses

(2,486,573)


(642,794)


(17,501)


(3,146,868)


(445,410)

Other operating income

91,190


-


139


91,329


12,927

Income (loss) from operations

945,335


(125,625)


(6,997)


812,713


115,033

Interest income

107,776


689


71


108,536


15,362

Interest expense

(20,121)


-


-


(20,121)


(2,848)

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

1,032,990


(124,936)


(6,926)


901,128


127,547

Income tax (expenses) benefits

(444,278)


645


-


(443,633)


(62,792)

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

588,712


(124,291)


(6,926)


457,495


64,755

Share of loss on equity method
    investments

(1,967)


-


-


(1,967)


(278)

Net income (loss)

586,745


(124,291)


(6,926)


455,528


64,477





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






Three months


ended June 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

3,396


(592)


-


2,804


397

Research and development

36,670


13,315


-


49,985


7,075

Sales and marketing

38,905


4,218


-


43,123


6,104

General and administrative

78,250


7,280


2,658


88,188


12,482

Total cost and expenses

157,221


24,221


2,658


184,100


26,058

 

 

 

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 June 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

945,335


(125,625)


(6,997)


812,713


115,033

Share-based compensation

157,221


24,221


2,658


184,100


26,058

Amortization of intangible assets from
   business acquisitions

-


39,035


-


39,035


5,525

Non-GAAP operating income (loss)

1,102,556


(62,369)


(4,339)


1,035,848


146,616











Net income (loss)

586,745


(124,291)


(6,926)


455,528


64,477

Share-based compensation

157,221


24,221


2,658


184,100


26,058

Amortization of intangible assets from
   business acquisitions

-


39,035


-


39,035


5,525

Tax impacts

-


(9,759)


-


(9,759)


(1,381)

Non-GAAP net income (loss)

743,966


(70,794)


(4,268)


668,904


94,679

 

 

 

Momo Inc.

Unaudited Condensed Segment Report

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



Three months

ended June 30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$(2)

Net revenues:










Live video service

3,099,887


-


-


3,099,887


451,549

Value-added service

663,601


284,793


-


948,394


138,149

Mobile marketing

76,208


-


-


76,208


11,101

Mobile games

23,240


-


-


23,240


3,385

Other services

2,452


-


2,449


4,901


715

Total net revenues

3,865,388


284,793


2,449


4,152,630


604,899

Cost and expenses (iv):










Cost of revenues

(1,970,672)


(89,362)


(3,829)


(2,063,863)


(300,636)

Research and development

(181,866)


(69,792)


-


(251,658)


(36,658)

Sales and marketing

(356,578)


(212,628)


(1,403)


(570,609)


(83,119)

General and administrative

(142,384)


(344,434)


(13,842)


(500,660)


(72,929)

Total cost and expenses

(2,651,500)


(716,216)


(19,074)


(3,386,790)


(493,342)

Other operating income

140,535


-


21,366


161,901


23,584

Income (loss) from operations

1,354,423


(431,423)


4,741


927,741


135,141

Interest income

97,118


3,024


33


100,175


14,592

Interest expense

(19,315)


-


-


(19,315)


(2,814)

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

1,432,226


(428,399)


4,774


1,008,601


146,919

Income tax (expenses) benefits

(289,101)


5,233


-


(283,868)


(41,350)

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

1,143,125


(423,166)


4,774


724,733


105,569

Share of income on equity method investments

6,375


-


-


6,375


929

Net income (loss)

1,149,500


(423,166)


4,774


731,108


106,498





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






Three months


ended June 30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

4,870


577


-


5,447


793

Research and development

27,587


16,936


-


44,523


6,486

Sales and marketing

47,381


3,912


-


51,293


7,472

General and administrative

54,235


324,479


2,560


381,274


55,539

Total cost and expenses

134,073


345,904


2,560


482,537


70,290



(2) All translations from RMB to U.S. dollars are made at a rate of RMB 6.865 to US$1.00, the effective noon buying rate for June 28, 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 June 30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

1,354,423


(431,423)


4,741


927,741


135,141

Share-based compensation

134,073


345,904


2,560


482,537


70,290

Amortization of intangible assets from
business acquisitions

-


37,587


-


37,587


5,476

Non-GAAP operating income (loss)

1,488,496


(47,932)


7,301


1,447,865


210,907











Net income (loss)

1,149,500


(423,166)


4,774


731,108


106,498

Share-based compensation

134,073


345,904


2,560


482,537


70,290

Amortization of intangible assets from
business acquisitions

-


37,587


-


37,587


5,476

Tax impacts

-


(9,397)


-


(9,397)


(1,369)

Non-GAAP net income (loss)

1,283,573


(49,072)


7,334


1,241,835


180,895

 

 

 

Momo Inc.

Unaudited Condensed Segment Report

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



First half year

  ended June 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

4,737,168


197,712


-


4,934,880


698,487

Value-added service

1,678,907


701,167


-


2,380,074


336,878

Mobile marketing

95,119


-


-


95,119


13,463

Mobile games

24,255


-


-


24,255


3,433

Other services

7,358


-


20,650


28,008


3,964

Total net revenues

6,542,807


898,879


20,650


7,462,336


1,056,225

Cost and expenses (v):










Cost of revenues

(3,528,959)


(364,723)


(19,539)


(3,913,221)


(553,880)

Research and development

(386,674)


(154,487)


-


(541,161)


(76,596)

Sales and marketing

(731,560)


(629,714)


(34)


(1,361,308)


(192,681)

General and administrative

(297,296)


(47,508)


(12,506)


(357,310)


(50,574)

Total cost and expenses

(4,944,489)


(1,196,432)


(32,079)


(6,173,000)


(873,731)

Other operating income

117,309


-


139


117,448


16,624

Income (loss) from operations

1,715,627


(297,553)


(11,290)


1,406,784


199,118

Interest income

237,054


2,161


144


239,359


33,879

Interest expense

(39,940)


-


-


(39,940)


(5,653)

Impairment loss on long-term
   investments

(6,000)


-


-


(6,000)


(849)

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

1,906,741


(295,392)


(11,146)


1,600,203


226,495

Income tax (expenses) benefits

(612,490)


5,966


-


(606,524)


(85,848)

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

1,294,251


(289,426)


(11,146)


993,679


140,647

Share of loss on equity method
    investments

(440)


-


-


(440)


(62)

Net income (loss)

1,293,811


(289,426)


(11,146)


993,239


140,585





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






First half year


ended June 30, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

9,007


766


-


9,773


1,383

Research and development

63,472


29,273


-


92,745


13,127

Sales and marketing

84,346


5,851


-


90,197


12,767

General and administrative

133,234


21,401


5,277


159,912


22,634

Total cost and expenses

290,059


57,291


5,277


352,627


49,911

 

 

 

Momo 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, 2020


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

1,715,627


(297,553)


(11,290)


1,406,784


199,118

Share-based compensation

290,059


57,291


5,277


352,627


49,911

Amortization of intangible assets
   from business acquisitions

-


77,484


-


77,484


10,966

Non-GAAP operating income
   (loss)

2,005,686


(162,778)


(6,013)


1,836,895


259,995











Net income (loss)

1,293,811


(289,426)


(11,146)


993,239


140,585

Share-based compensation

290,059


57,291


5,277


352,627


49,911

Amortization of intangible assets
   from business acquisitions

-


77,484


-


77,484


10,966

Tax impacts

-


(19,371)


-


(19,371)


(2,742)

Non-GAAP net income (loss)

1,583,870


(174,022)


(5,869)


1,403,979


198,720

 

 

 

Momo Inc.

Unaudited Condensed Segment Report

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


First half year

  ended June 30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

5,789,300


-


-


5,789,300


843,307

Value-added service

1,272,103


580,140


-


1,852,243


269,810

Mobile marketing

156,937


-


-


156,937


22,860

Mobile games

62,248


-


-


62,248


9,067

Other services

4,009


-


10,812


14,821


2,159

Total net revenues

7,284,597


580,140


10,812


7,875,549


1,147,203

Cost and expenses (vi):










Cost of revenues

(3,740,710)


(188,218)


(8,509)


(3,937,437)


(573,552)

Research and development

(366,139)


(134,950)


-


(501,089)


(72,992)

Sales and marketing

(719,536)


(468,549)


(6,372)


(1,194,457)


(173,992)

General and administrative

(256,648)


(824,399)


(22,209)


(1,103,256)


(160,707)

Total cost and expenses

(5,083,033)


(1,616,116)


(37,090)


(6,736,239)


(981,243)

Other operating income

151,489


-


21,366


172,855


25,179

Income (loss) from operations

2,353,053


(1,035,976)


(4,912)


1,312,165


191,139

Interest income

187,976


5,915


62


193,953


28,252

Interest expense

(38,304)


-


-


(38,304)


(5,580)

Impairment loss on long-term
   investments

(4,500)


-


-


(4,500)


(655)

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

2,498,225


(1,030,061)


(4,850)


1,463,314


213,156

Income tax (expenses) benefits

(456,704)


9,185


-


(447,519)


(65,188)

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

2,041,521


(1,020,876)


(4,850)


1,015,795


147,968

Share of income on equity method
   investments

1,871


-


-


1,871


273

Net income (loss)

2,043,392


(1,020,876)


(4,850)


1,017,666


148,241





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






First half year


ended June 30, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

8,476


1,157


-


9,633


1,403

Research and development

49,300


34,953


-


84,253


12,273

Sales and marketing

82,855


7,890


-


90,745


13,218

General and administrative

93,726


792,163


5,091


890,980


129,786

Total cost and expenses

234,357


836,163


5,091


1,075,611


156,680

 

 

 

Momo 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, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

2,353,053


(1,035,976)


(4,912)


1,312,165


191,139

Share-based compensation

234,357


836,163


5,091


1,075,611


156,680

Amortization of intangible assets
   from business acquisitions

-


74,750


-


74,750


10,889

Non-GAAP operating income 
(loss)

2,587,410


(125,063)


179


2,462,526


358,708











Net income (loss)

2,043,392


(1,020,876)


(4,850)


1,017,666


148,241

Share-based compensation

234,357


836,163


5,091


1,075,611


156,680

Amortization of intangible assets
   from business acquisitions

-


74,750


-


74,750


10,889

Tax impacts

-


(18,688)


-


(18,688)


(2,723)

Non-GAAP net income (loss)

2,277,749


(128,651)


241


2,149,339


313,087

 


Cision View original content:http://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-second-quarter-of-2020-301123701.html

Source: Momo Inc.
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