Momo Announces Unaudited Financial Results for the Third Quarter of 2020

BEIJING, Dec. 1, 2020 /PRNewswire/ -- Momo Inc. MOMO ("Momo" or the "Company"), a leading mobile social networking platform in China, today announced its unaudited financial results for the third quarter of 2020.

Third Quarter of 2020 Highlights

  • Net revenues decreased by 15.4% year over year to RMB3,766.7 million (US$554.8 million*) in the third quarter of 2020.
  • Net income attributable to Momo Inc. decreased to RMB456.7 million (US$67.3 million) in the third quarter of 2020 from RMB893.9 million in the same period of 2019.
  • Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB653.8 million (US$96.3 million) in the third quarter of 2020, from RMB1,088.1 million in the same period of 2019.
  • Diluted net income per American Depositary Share ("ADS") was RMB2.11 (US$0.31) in the third quarter of 2020, compared to RMB4.04 in the same period of 2019.
  • Non-GAAP diluted net income per ADS (note 1) was RMB2.98 (US$0.44) in the third quarter of 2020, compared to RMB4.90 in the same period of 2019.
  • Monthly Active Users ("MAU") on Momo application were 113.6 million in September 2020, compared to 114.1 million in September 2019.
  • Total paying users of our live video service and value-added service, without double counting the overlap and including 4.1 million paying users of Tantan Limited ("Tantan"), were 13.1 million for the third quarter of 2020, compared to 13.4 million for the third quarter of 2019, which included 4.5 million paying users of Tantan.

First Nine Months of 2020 Highlights

  • Net revenues decreased by 8.9% year over year to RMB11,229.0 million (US$1,653.9 million) for the first nine months of 2020.
  • Net income attributable to Momo Inc. was RMB1,452.0 million (US$213.9 million) for the first nine months of 2020, compared with RMB1,915.0 million during the same period of 2019.
  • Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,059.8 million (US$303.4 million) for the first nine months of 2020, compared with RMB3,240.8 million during the same period of 2019.
  • Diluted net income per ADS was RMB6.68 (US$0.98) for the first nine months of 2020, compared with RMB8.76 during the same period of 2019.
  • Non-GAAP diluted net income per ADS (note 1) was RMB9.36 (US$1.38) for the first nine months of 2020, compared with RMB14.65 during the same period of 2019.

"The third quarter of 2020 was a busy quarter for us. As a result of management's commitment and the persistence of our colleagues, the structural reform within the core live broadcasting business has achieved initial success." Commented Li Wang, CEO of Momo. "The critical metrics reflecting the healthiness of the ecosystem have been showing positive signs. As the content ecosystem gradually improved, non-event days' revenue is also seeing strong rebound. Although we have more hard work to do down the path, what we have achieved so far gives us the confidence that our live streaming business has entered into a virtuous cycle supported by a sustainable content ecosystem."

 

* 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 RMB6.7896 to US$1.00, the effective noon buying rate for September 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

Third Quarter of 2020 Financial Results

Net revenues

Total net revenues were RMB3,766.7 million (US$554.8 million) in the third quarter of 2020, a decrease of 15.4% from RMB4,451.6 million in the third quarter of 2019.

Live video service revenues were RMB2,374.8 million (US$349.8 million) in the third quarter of 2020, a decrease of 27% from RMB3,275.4 million during the same period of 2019. The decrease was primarily due to our structural reform on Momo's core live video business, which was used to revive the long tail content ecosystem and to a lesser extent, the impact of COVID-19 adversely affecting the sentiment of our paying users, especially among the top of the pyramid paying users. The decrease was partially offset by the growth from Tantan's live video service, and live video service revenues from Tantan were RMB396.7 million (US$58.4 million) in the third quarter of 2020.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,330.8 million (US$196.0 million) in the third quarter of 2020, an increase of 25% from RMB1,064.6 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 products 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 RMB50.4 million (US$7.4 million) in the third quarter of 2020, a decrease of 38% from RMB81.9 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 RMB8.0 million (US$1.2 million) in the third quarter of 2020, a decrease of 49% from RMB15.8 million in the third 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 RMB4,138.9 million in the third quarter of 2019 to RMB3,037.0 million (US$447.3 million) in the third 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 RMB310.0 million in the third quarter of 2019 to RMB728.9 million (US$107.4 million) in the third quarter of 2020, which was mainly due to the increase in net revenues from live video service and to a lesser extent, the increase in net revenues from value-added services.

Cost and expenses

Cost and expenses were RMB3,258.5 million (US$479.9 million) in the third quarter of 2020, a decrease of 6.6% from RMB3,487.9 million in the third quarter of 2019. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to our live video service; (b) a decrease in personnel related costs, professional fees and infrastructure-related spending, such as bandwidth costs and server depreciation costs. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service, and an increase in marketing and promotional expenses to attract users on Tantan.

Non-GAAP cost and expenses (note 1) were RMB3,052.0 million (US$449.5 million) in the third quarter of 2020, a decrease of 7.1% from RMB3,284.0 million during the same period of 2019.

Income from operations

Income from operations was RMB531.1 million (US$78.2 million) in the third quarter of 2020, compared to RMB993.1 million during the same period of 2019. Income from operations of Momo segment was RMB658.7 million (US$97.0 million) in the third quarter of 2020, decreasing from RMB1,227.2 million in the third quarter of 2019. Loss from operations of Tantan segment was RMB121.5 million (US$17.9 million) in the third quarter of 2020, compared to loss from operations of RMB228.7 million in the third quarter of 2019.

Non-GAAP income from operations (note 1) was RMB737.6 million (US$108.6 million) in the third quarter of 2020, compared to RMB1,196.9 million during the same period of 2019. Non-GAAP income from operations of Momo segment was RMB805.8 million (US$118.7 million) in the third quarter of 2020, decreasing from RMB1,364.1 million in the third quarter of 2019. Non-GAAP loss from operations of Tantan segment was RMB64.7 million (US$9.5 million) in the third quarter of 2020, compared to non-GAAP loss from operations of RMB164.4 million in the third quarter of 2019.

Income tax expenses

Income tax expenses were RMB143.6 million (US$21.2 million) in the third quarter of 2020, decreasing from RMB182.6 million in the third quarter of 2019. The decrease in income tax expenses was mainly due to the lower profit in the third quarter of 2020.

Net income

Net income was RMB456.0 million (US$67.2 million) in the third quarter of 2020, compared to RMB890.8 million during the same period of 2019. Net income from Momo segment was RMB576.2 million (US$84.9 million) in the third quarter of 2020, decreasing from RMB1,110.2 million in the third quarter of 2019. Net loss from Tantan segment was RMB114.2 million (US$16.8 million) in the third quarter of 2020, compared to net loss of RMB214.1 million in the third quarter of 2019.

Non-GAAP net income (note 1) was RMB653.1 million (US$96.2 million) in the third quarter of 2020, compared to RMB1,084.9 million during the same period of 2019. Non-GAAP net income from Momo segment was RMB723.4 million (US$106.5 million) in the third quarter of 2020, decreasing from RMB1,247.2 million in the third quarter of 2019. Non-GAAP net loss of Tantan segment was RMB66.9 million (US$9.8 million) in the third quarter of 2020, compared to non-GAAP net loss of RMB159.5 million in the third quarter of 2019.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB456.7 million (US$67.3 million) in the third quarter of 2020, compared to RMB893.9 million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB653.8 million (US$96.3 million) in the third quarter of 2020, compared to RMB1,088.1 million during the same period of 2019.

Net income per ADS

Diluted net income per ADS was RMB2.11 (US$0.31) in the third quarter of 2020, compared to RMB4.04 in the third quarter of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB2.98 (US$0.44) in the third quarter of 2020, compared to RMB4.90 in the third quarter of 2019.

Cash and cash flow

As of September 30, 2020, Momo's cash, cash equivalents, short-term deposits and long-term deposits totaled RMB15,764.1 million (US$2,321.8 million), compared to RMB15,225.3 million as of December 31, 2019. Net cash provided by operating activities in the third quarter of 2020 was RMB691.1 million (US$101.8 million), compared to RMB1,175.9 million in the third quarter of 2019.

First Nine Months of 2020 Financial Results

Net revenues for the first nine months of 2020 were RMB11,229.0 million (US$1,653.9 million), a decrease of 8.9% from RMB12,327.2 million in the same period of 2019.

Net income attributable to Momo Inc. was RMB1,452.0 million (US$213.9 million) for the first nine months of 2020, compared to RMB1,915.0 million during the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,059.8 million (US$303.4 million) for the first nine months of 2020, compared to RMB3,240.8 million during the same period of 2019.

Diluted net income per ADS was RMB6.68 (US$0.98) during the first nine months of 2020, compared to RMB8.76 in the same period of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB9.36 (US$1.38) during the first nine months of 2020, compared to RMB14.65 in the same period of 2019.

Net cash provided by operating activities was RMB2,041.8 million (US$300.7 million) during the first nine months of 2020, compared to RMB3,773.8 million in the same period of 2019.

Recent Developments

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. As of November 30, 2020, the Company had repurchased approximately 1.66 million ADSs for approximately US$23.3 million on the open market under this program, at an average purchase price of US$14.03 per ADS.

Mr. Xiaoliang Lei will step down from the Company's Chief Strategy Officer position for personal reasons effective from December 2020, and he will continue to serve as a senior advisor to the Company.

Business Outlook

For the fourth quarter of 2020, the Company expects total net revenues to be between RMB3.65 billion to RMB3.75 billion, representing a decrease of 22.1% to 20.0% 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 Tuesday, December 1, 2020, at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong Time on December 1, 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/1217808

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, December 9, 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:

1217808

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 fourth 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 third quarter of 2020 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth 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 nine months

ended September 30



ended  September  30



2019



2020



2020



2019



2020



2020





RMB



RMB



US$



RMB



RMB



US$



Net revenues:

























Live video service

3,275,354



2,374,824



349,774



9,064,654



7,309,704



1,076,603



Value-added service

1,064,606



1,330,839



196,012



2,916,849



3,710,913



546,559



Mobile marketing

81,894



50,415



7,425



238,831



145,534



21,435



Mobile games

15,785



7,975



1,175



78,033



32,230



4,747



Other services

14,003



2,598



382



28,824



30,606



4,507



Total net revenues

4,451,642



3,766,651



554,768



12,327,191



11,228,987



1,653,851



Cost and expenses:

























Cost of revenues

(2,203,350)



(2,020,779)



(297,629)



(6,140,787)



(5,934,000)



(873,984)



Research and development

(301,754)



(299,221)



(44,070)



(802,843)



(840,382)



(123,775)



Sales and marketing

(771,338)



(754,892)



(111,184)



(1,965,795)



(2,116,200)



(311,683)



General and administrative

(211,423)



(183,649)



(27,049)



(1,314,679)



(540,959)



(79,675)



Total cost and expenses

(3,487,865)



(3,258,541)



(479,932)



(10,224,104)



(9,431,541)



(1,389,117)



Other operating income

29,342



22,944



3,379



202,197



140,392



20,678



Income from operations

993,119



531,054



78,215



2,305,284



1,937,838



285,412



Interest income

105,384



104,232



15,352



299,337



343,591



50,605



Interest expense

(20,117)



(19,885)



(2,929)



(58,421)



(59,825)



(8,811)



Impairment loss on long-term

   investments

(11,211)



-



-



(15,711)



(6,000)



(884)



Income before income tax

   and share of income on

   equity method

   investments

1,067,175



615,401



90,638



2,530,489



2,215,604



326,322



Income tax expenses

(182,578)



(143,615)



(21,152)



(630,097)



(750,139)



(110,484)



Income before share of

   income on equity method

   investments

884,597



471,786



69,486



1,900,392



1,465,465



215,838



Share of income (loss) on

   equity method investments

6,185



(15,763)



(2,322)



8,056



(16,203)



(2,386)



Net income

890,782



456,023



67,164



1,908,448



1,449,262



213,452



Less: net loss attributable to

   non-controlling interest

(3,115)



(705)



(104)



(6,543)



(2,772)



(408)



Net income attributable to

   the shareholders of

   Momo Inc.

893,897



456,728



67,268



1,914,991



1,452,034



213,860



 

Net income per share

   attributable to ordinary

   shareholders

























Basic

2.15



1.09



0.16



4.62



3.48



0.51



Diluted

2.02



1.05



0.16



4.38



3.34



0.49



Weighted average shares

   used in calculating net

   income per ordinary share

























Basic

415,615,139



417,884,266



417,884,266



414,790,186



417,580,609



417,580,609



Diluted

452,571,862



452,724,863



452,724,863



450,470,088



452,854,314



452,854,314

































 

 

Momo Inc.



Unaudited Condensed Consolidated Statement of Comprehensive Income



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

















































Three months



First nine months



ended September 30



ended September 30





2019



2020



2020



2019



2020



2020



RMB



RMB



US$



RMB



RMB



US$

Net income

890,782



456,023



67,164



1,908,448



1,449,262



213,452

Other comprehensive income

   (loss), net of tax























Foreign currency translation

   adjustment

62,771



(80,618)



(11,874)



30,689



(72,667)



(10,703)

Comprehensive income

953,553



375,405



55,290



1,939,137



1,376,595



202,749

Less: comprehensive income

   (loss) attributed to the non-

   controlling interest

3,519



(9,953)



(1,466)



556



(16,945)



(2,496)

Comprehensive income

   attributable to Momo Inc.

950,034



385,358



56,756



1,938,581



1,393,540



205,245









































 

 



 

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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















December 31



September 30



September 30



2019



2020



2020

RMB

RMB



US$

Assets











Current assets











Cash and cash equivalents

2,612,743



3,176,406



467,834

Short-term deposits

12,312,585



7,937,692



1,169,096

Accounts receivable, net of allowance for doubtful accounts of RMB12,209 and

   RMB17,621 as of December 31, 2019 and September 30, 2020, respectively

265,155



233,398



34,376

Amount due from a related party

4,382



-



-

Prepaid expenses and other current assets

599,000



738,502



108,769

Total current assets

15,793,865



12,085,998



1,780,075

Long-term deposits

300,000



4,650,000



684,871

Right-of-use assets, net

190,552



112,012



16,498

Property and equipment, net

346,345



305,420



44,983

Intangible assets

890,303



752,470



110,827

Rental deposits

25,028



24,922



3,671

Long-term investments

495,905



476,815



70,227

Other non-current assets

44,009



94,368



13,899

Deferred tax assets

37,064



34,031



5,012

Goodwill

4,360,610



4,253,297



626,443

Total assets

22,483,681



22,789,333



3,356,506

Liabilities and equity











Current liabilities











Accounts payable

714,323



634,249



93,415

Deferred revenue

503,461



487,234



71,761

Accrued expenses and other current liabilities

985,873



858,038



126,376

Amount due to related parties

29,606



31,868



4,694

Lease liabilities due within one year

135,169



92,500



13,624

Income tax payable

153,976



331,831



48,873

Deferred consideration in connection with business acquisitions

84,346



64,669



9,525

Total current liabilities

2,606,754



2,500,389



368,268

Deferred tax liabilities

222,576



188,118



27,707

Convertible senior notes

4,954,352



4,843,751



713,407

Share-based compensation liability

902,047



910,197



134,057

Lease liabilities

56,498



15,287



2,252

Other non-current liabilities

22,672



34,495



5,081

Total liabilities

8,764,899



8,492,237



1,250,772

Shareholder's equity (i)

13,718,782



14,297,096



2,105,734

Total liabilities and shareholder's equity

22,483,681



22,789,333



3,356,506













     (i): As of September 30, 2020, the number of ordinary shares outstanding was 415,801,407.

 

 



Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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







Three months



First nine months





ended September 30



ended September 30





2019



2020



2020



2019



2020



2020





RMB



RMB



US$



RMB



RMB



US$



Cash flows from operating activities:

























Net income

890,782



456,023



67,164



1,908,448



1,449,262



213,452



Adjustments to reconcile net income to net cash

provided by operating activities:

























Depreciation of property and equipment

50,216



49,024



7,220



146,852



153,615



22,625



Amortization of intangible assets

40,100



39,347



5,795



117,715



119,517



17,603



Share-based compensation

165,163



168,475



24,814



1,240,774



521,102



76,751



Share of (income) loss on equity method investments

(6,185)



15,763



2,322



(8,056)



16,203



2,386



Impairment loss on long-term investments

11,211



-



-



15,711



6,000



884



Gain on subsidiary deconsolidation

-



-



-



-



(6,676)



(983)



Gain on disposal of property and equipment

(64)



(284)



(42)



(398)



(285)



(42)



Provision of allowance for doubtful accounts

2,900



26,006



3,830



12,209



26,412



3,890



Cash received on investment income distribution

-



-



-



-



1,153



170



Changes in operating assets and liabilities:

























Accounts receivable

(103,290)



15,968



2,352



331,836



17,714



2,609



Prepaid expenses and other current assets

(24,378)



(207,586)



(30,574)



(23,182)



(163,753)



(24,118)



Amount due from a related party

(1,335)



2,029



299



(1,606)



4,382



645



Rental deposits

2,033



(83)



(12)



(362)



107



16



Deferred tax assets

(2,803)



561



83



23,304



3,034



447



Other non-current assets

(33,254)



9,930



1,463



(20,611)



28,181



4,151



Accounts payable

(133,863)



(62,189)



(9,159)



(45,775)



(78,664)



(11,586)



Income tax payable

(16,064)



112,799



16,613



(23,052)



177,855



26,195



Deferred revenue

84,711



17,442



2,569



54,789



(15,830)



(2,332)



Accrued expenses and other current liabilities

278,181



52,819



7,779



136,558



(161,411)



(23,773)



Amount due to related parties

(10,550)



13,495



1,988



(53,267)



2,262



333



Deferred tax liability

(10,025)



(9,837)



(1,449)



(35,322)



(29,880)



(4,401)



Other non-current liabilities

(7,556)



(8,648)



(1,274)



(2,762)



(28,500)



(4,198)



Net cash provided by operating activities

1,175,930



691,054



101,781



3,773,803



2,041,800



300,724



Cash flows from investing activities:

























Purchase of property and equipment

(59,933)



(24,078)



(3,546)



(154,413)



(108,048)



(15,914)



Proceeds from disposal of property and equipment

294



457



67



804



474



70



Payment for long-term investments

(19,000)



-



-



(43,000)



(4,500)



(663)



Prepayment of long-term investments

-



-



-



(15,000)



-



-



Cash dividend received

-



-



-



-



233



34



Cash outflow due to subsidiary deconsolidation

-



-



-



-



(1,026)



(151)



Purchase of short-term deposits

(4,786,130)



(3,053,307)



(449,704)



(14,501,135)



(11,295,165)



(1,663,598)



Cash received on maturity of short-term deposits

4,785,400



4,337,085



638,784



12,650,430



15,622,659



2,300,969



Payment for short-term investments

(30,000)



-



-



(280,000)



(10,000)



(1,473)



Cash received from sales of short-term investment

80,000



-



-



240,000



10,000



1,473



Purchase of long-term deposits

-



(1,550,000)



(228,290)



-



(4,350,000)



(640,686)



Net cash used in investing activities

(29,369)



(289,843)



(42,689)



(2,102,314)



(135,373)



(19,939)



Cash flows from financing activities:

























Deferred payment for business acquisition

(759)



-



-



(379,507)



(18,355)



(2,703)



Proceeds from exercise of share options

71



54



8



186



55



8



Deferred payment of purchase of property and

   equipment

(16,893)



-



-



(16,987)



-



-



Repurchase of ordinary shares

-



(132,407)



(19,501)



-



(132,407)



(19,501)



Repurchase of subsidiary's share options

-



(24,900)



(3,667)



-



(24,900)



(3,667)



Dividends payment

-



-



-



(877,346)



(1,123,983)



(165,545)



Net cash used in financing activities

(17,581)



(157,253)



(23,160)



(1,273,654)



(1,299,590)



(191,408)



Effect of exchange rate changes

6,200



(45,135)



(6,649)



5,054



(43,174)



(6,358)



Net increase in cash and cash equivalents

1,135,180



198,823



29,283



402,889



563,663



83,019



Cash and cash equivalents at the beginning of period

1,735,743



2,977,583



438,551



2,468,034



2,612,743



384,815



Cash and cash equivalents at the end of period

2,870,923



3,176,406



467,834



2,870,923



3,176,406



467,834



 

 



 

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)















1.

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



















Three months



Three months



Three months



ended September 30, 2019

ended September 30, 2020



ended September 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

(2,203,350)

18,751

6,738

-

(2,177,861)



(2,020,779)

18,472

4,434

-

(1,997,873)



(297,629)

2,721

653

-

(294,255)



Research and development

(301,754)

2,381

45,345

-

(254,028)



(299,221)

2,346

44,610

-

(252,265)



(44,070)

346

6,570

-

(37,154)



Sales and marketing

(771,338)

17,535

52,100

-

(701,703)



(754,892)

17,275

41,583

-

(696,034)



(111,184)

2,544

6,125

-

(102,515)



General and 

   administrative

(211,423)

-

60,980

-

(150,443)



(183,649)

-

77,848

-

(105,801)



(27,049)

-

11,466

-

(15,583)



Cost and operating

   expenses

(3,487,865)

38,667

165,163

-

(3,284,035)



(3,258,541)

38,093

168,475

-

(3,051,973)



(479,932)

5,611

24,814

-

(449,507)



Income from operations

993,119

38,667

165,163

-

1,196,949



531,054

38,093

168,475

-

737,622



78,215

5,611

24,814

-

108,640



Net income attributable to

   Momo Inc.

893,897

38,667

165,163

(9,667)

1,088,060



456,728

38,093

168,475

(9,523)

653,773



67,268

5,611

24,814

(1,403)

96,290















































































































 

 

 

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)













1.

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



















First nine months



First nine months



First nine months



ended September 30, 2019

ended September 30, 2020



ended September 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

(6,140,787)

54,999

16,371

-

(6,069,417)



(5,934,000)

56,046

14,207

-

(5,863,747)



(873,984)

8,255

2,092

-

(863,637)



Research and development

(802,843)

6,985

129,598

-

(666,260)



(840,382)

7,118

137,355

-

(695,909)



(123,775)

1,048

20,231

-

(102,496)



Sales and marketing

(1,965,795)

51,433

142,845

-

(1,771,517)



(2,116,200)

52,413

131,780

-

(1,932,007)



(311,683)

7,720

19,409

-

(284,554)



General and

   administrative

(1,314,679)

-

951,960

-

(362,719)



(540,959)

-

237,760

-

(303,199)



(79,675)

-

35,019

-

(44,656)



Cost and operating

   expenses

(10,224,104)

113,417

1,240,774

-

(8,869,913)



(9,431,541)

115,577

521,102

-

(8,794,862)



(1,389,117)

17,023

76,751

-

(1,295,343)



Income from operations

2,305,284

113,417

1,240,774

-

3,659,475



1,937,838

115,577

521,102

-

2,574,517



285,412

17,023

76,751

-

379,186



Net income

   attributable to

   Momo Inc.

1,914,991

113,417

1,240,774

(28,355)

3,240,827



1,452,034

115,577

521,102

(28,894)

2,059,819



213,860

17,023

76,751

(4,255)

303,379















































































































(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 September 30, 2020



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Net revenues:



















Live video service

1,978,098



396,726



-



2,374,824



349,774

Value-added service

998,668



332,171



-



1,330,839



196,012

Mobile marketing

50,415



-



-



50,415



7,425

Mobile games

7,975



-



-



7,975



1,175

Other services

1,810



-



788



2,598



382

Total net revenues

3,036,966



728,897



788



3,766,651



554,768

Cost and expenses (iii):



















Cost of revenues

(1,660,806)



(358,743)



(1,230)



(2,020,779)



(297,629)

Research and development

(214,597)



(84,624)



-



(299,221)



(44,070)

Sales and marketing

(361,448)



(393,437)



(7)



(754,892)



(111,184)

General and administrative

(164,331)



(13,620)



(5,698)



(183,649)



(27,049)

Total cost and expenses

(2,401,182)



(850,424)



(6,935)



(3,258,541)



(479,932)

Other operating income

22,893



-



51



22,944



3,379

Income (loss) from operations

658,677



(121,527)



(6,096)



531,054



78,215

Interest income

103,477



706



49



104,232



15,352

Interest expense

(19,885)



-



-



(19,885)



(2,929)

Income (loss) before income tax and share of

   income on equity method investments

742,269



(120,821)



(6,047)



615,401



90,638

Income tax (expenses) benefits

(150,278)



6,663



-



(143,615)



(21,152)

Income (loss) before share of income on

   equity method investments

591,991



(114,158)



(6,047)



471,786



69,486

Share of loss on equity method investments

(15,763)



-



-



(15,763)



(2,322)

Net income (loss)

576,228



(114,158)



(6,047)



456,023



67,164









































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























Three months



ended September 30, 2020



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Cost of revenues

3,338



1,096



-



4,434



653

Research and development

32,296



12,314



-



44,610



6,570

Sales and marketing

37,110



4,473



-



41,583



6,125

General and administrative

74,416



837



2,595



77,848



11,466

Total cost and expenses

147,160



18,720



2,595



168,475



24,814

 

 

 

Momo Inc.

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

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











Three months



ended September 30, 2020



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Operating income (loss)

658,677



(121,527)



(6,096)



531,054



78,215

Share-based compensation

147,160



18,720



2,595



168,475



24,814

Amortization of intangible assets from

   business acquisitions

-



38,093



-



38,093



5,611

Non-GAAP operating income (loss)

805,837



(64,714)



(3,501)



737,622



108,640





















Net income (loss)

576,228



(114,158)



(6,047)



456,023



67,164

Share-based compensation

147,160



18,720



2,595



168,475



24,814

Amortization of intangible assets from

   business acquisitions

-



38,093



-



38,093



5,611

Tax impacts

-



(9,523)



-



(9,523)



(1,403)

Non-GAAP net income (loss)

723,388



(66,868)



(3,452)



653,068



96,186

 

 

 

Momo Inc.

Unaudited Condensed Segment Report

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







Three months

ended September 30, 2019



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$[1] 

Net revenues:



















Live video service

3,275,354



-



-



3,275,354



458,239

Value-added service

754,629



309,977



-



1,064,606



148,944

Mobile marketing

81,894



-



-



81,894



11,457

Mobile games

15,785



-



-



15,785



2,208

Other services

11,234



-



2,769



14,003



1,960

Total net revenues

4,138,896



309,977



2,769



4,451,642



622,808

Cost and expenses (iv):



















Cost of revenues

(2,101,678)



(99,722)



(1,950)



(2,203,350)



(308,260)

Research and development

(225,539)



(76,215)



-



(301,754)



(42,217)

Sales and marketing

(422,034)



(349,274)



(30)



(771,338)



(107,914)

General and administrative

(191,832)



(13,425)



(6,166)



(211,423)



(29,579)

Total cost and expenses

(2,941,083)



(538,636)



(8,146)



(3,487,865)



(487,970)

Other operating income

29,342



-



-



29,342



4,105

Income (loss) from operations

1,227,155



(228,659)



(5,377)



993,119



138,943

Interest income

102,749



2,594



41



105,384



14,744

Interest expense

(20,117)



-



-



(20,117)



(2,814)

Impairment loss on long-term investments

(11,211)



-



-



(11,211)



(1,568)

Income (loss) before income tax and

   share of income on equity method

   investments

1,298,576



(226,065)



(5,336)



1,067,175



149,305

Income tax (expenses) benefits

(194,580)



12,002



-



(182,578)



(25,544)

Income (loss) before share of income

   on equity method investments

1,103,996



(214,063)



(5,336)



884,597



123,761

Share of income on equity method

   investments

6,185



-



-



6,185



865

Net income (loss)

1,110,181



(214,063)



(5,336)



890,782



124,626









































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























Three months



ended September 30, 2019



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Cost of revenues

5,917



821



-



6,738



943

Research and development

27,375



17,970



-



45,345



6,344

Sales and marketing

46,831



5,269



-



52,100



7,289

General and administrative

56,860



1,486



2,634



60,980



8,531

Total cost and expenses

136,983



25,546



2,634



165,163



23,107









































[1] All translations from RMB to U.S. dollars are made at a rate of RMB 7.1477 to US$1.00, the effective noon buying rate for September 30, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

 

 

Momo Inc.

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

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











Three months



ended September 30, 2019



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Operating income (loss)

1,227,155



(228,659)



(5,377)



993,119



138,943

Share-based compensation

136,983



25,546



2,634



165,163



23,107

Amortization of intangible assets from

business acquisitions

-



38,667



-



38,667



5,409

Non-GAAP operating income (loss)

1,364,138



(164,446)



(2,743)



1,196,949



167,459





















Net income (loss)

1,110,181



(214,063)



(5,336)



890,782



124,626

Share-based compensation

136,983



25,546



2,634



165,163



23,107

Amortization of intangible assets from

business acquisitions

-



38,667



-



38,667



5,409

Tax impacts

-



(9,667)



-



(9,667)



(1,352)

Non-GAAP net income (loss)

1,247,164



(159,517)



(2,702)



1,084,945



151,790

 

 

Momo Inc.

Unaudited Condensed Segment Report

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







First nine months

  ended  September  30, 2020



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Net revenues:



















Live video service

6,715,266



594,438



-



7,309,704



1,076,603

Value-added service

2,677,575



1,033,338



-



3,710,913



546,559

Mobile marketing

145,534



-



-



145,534



21,435

Mobile games

32,230



-



-



32,230



4,747

Other services

9,168



-



21,438



30,606



4,507

Total net revenues

9,579,773



1,627,776



21,438



11,228,987



1,653,851

Cost and expenses (v):



















Cost of revenues

(5,189,765)



(723,466)



(20,769)



(5,934,000)



(873,984)

Research and development

(601,271)



(239,111)



-



(840,382)



(123,775)

Sales and marketing

(1,093,008)



(1,023,151)



(41)



(2,116,200)



(311,683)

General and administrative

(461,627)



(61,128)



(18,204)



(540,959)



(79,675)

Total cost and expenses

(7,345,671)



(2,046,856)



(39,014)



(9,431,541)



(1,389,117)

Other operating income

140,202



-



190



140,392



20,678

Income (loss) from operations

2,374,304



(419,080)



(17,386)



1,937,838



285,412

Interest income

340,531



2,867



193



343,591



50,605

Interest expense

(59,825)



-



-



(59,825)



(8,811)

Impairment loss on long-term investments

(6,000)



-



-



(6,000)



(884)

Income (loss) before income tax and share of

   income on equity method

   investments

2,649,010



(416,213)



(17,193)



2,215,604



326,322

Income tax (expenses) benefits

(762,768)



12,629



-



(750,139)



(110,484)

Income (loss) before share of income on equity method

   investments

1,886,242



(403,584)



(17,193)



1,465,465



215,838

Share of loss on equity method investments

(16,203)



-



-



(16,203)



(2,386)

Net income (loss)

1,870,039



(403,584)



(17,193)



1,449,262



213,452





















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























First nine months



ended September 30, 2020



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Cost of revenues

12,345



1,862



-



14,207



2,092

Research and development

95,768



41,587



-



137,355



20,231

Sales and marketing

121,456



10,324



-



131,780



19,409

General and administrative

207,650



22,238



7,872



237,760



35,019

Total cost and expenses

437,219



76,011



7,872



521,102



76,751

 

 

Momo Inc.

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

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























First nine months



ended September 30, 2020



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Operating income (loss)

2,374,304



(419,080)



(17,386)



1,937,838



285,412

Share-based compensation

437,219



76,011



7,872



521,102



76,751

Amortization of intangible assets

   from business acquisitions

-



115,577



-



115,577



17,023

Non-GAAP operating income (loss)

2,811,523



(227,492)



(9,514)



2,574,517



379,186





















Net income (loss)

1,870,039



(403,584)



(17,193)



1,449,262



213,452

Share-based compensation

437,219



76,011



7,872



521,102



76,751

Amortization of intangible assets

   from business acquisitions

-



115,577



-



115,577



17,023

Tax impacts

-



(28,894)



-



(28,894)



(4,255)

Non-GAAP net income (loss)

2,307,258



(240,890)



(9,321)



2,057,047



302,971

 

 

Momo Inc.

Unaudited Condensed Segment Report

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







First nine months

  ended  September  30, 2019



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Net revenues:



















Live video service

9,064,654



-



-



9,064,654



1,268,192

Value-added service

2,026,732



890,117



-



2,916,849



408,082

Mobile marketing

238,831



-



-



238,831



33,414

Mobile games

78,033



-



-



78,033



10,917

Other services

15,243



-



13,581



28,824



4,032

Total net revenues

11,423,493



890,117



13,581



12,327,191



1,724,637

Cost and expenses (vi):



















Cost of revenues

(5,842,388)



(287,940)



(10,459)



(6,140,787)



(859,128)

Research and development

(591,678)



(211,165)



-



(802,843)



(112,322)

Sales and marketing

(1,141,571)



(817,823)



(6,401)



(1,965,795)



(275,025)

General and administrative

(448,480)



(837,824)



(28,375)



(1,314,679)



(183,930)

Total cost and expenses

(8,024,117)



(2,154,752)



(45,235)



(10,224,104)



(1,430,405)

Other operating income

180,831



-



21,366



202,197



28,288

Income (loss) from operations

3,580,207



(1,264,635)



(10,288)



2,305,284



322,520

Interest income

290,725



8,509



103



299,337



41,879

Interest expense

(58,421)



-



-



(58,421)



(8,173)

Impairment loss on long-term investments

(15,711)



-



-



(15,711)



(2,198)

Income (loss) before income tax

   and share of income on equity

   method investments

3,796,800



(1,256,126)



(10,185)



2,530,489



354,028

Income tax (expenses) benefits

(651,284)



21,187



-



(630,097)



(88,154)

Income (loss) before share of

   income on equity method

   investments

3,145,516



(1,234,939)



(10,185)



1,900,392



265,874

Share of income on equity method

   investments

8,056



-



-



8,056



1,127

Net income (loss)

3,153,572



(1,234,939)



(10,185)



1,908,448



267,001









































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

























First nine months



ended September 30, 2019



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Cost of revenues

14,393



1,978



-



16,371



2,290

Research and development

76,675



52,923



-



129,598



18,131

Sales and marketing

129,686



13,159



-



142,845



19,985

General and administrative

150,586



793,649



7,725



951,960



133,184

Total cost and expenses

371,340



861,709



7,725



1,240,774



173,590

 

 

 

Momo Inc.

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

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









First nine months



ended September 30, 2019



Momo



Tantan



QOOL



Total



Total



RMB



RMB



RMB



RMB



US$

Operating income (loss)

3,580,207



(1,264,635)



(10,288)



2,305,284



322,520

Share-based compensation

371,340



861,709



7,725



1,240,774



173,590

Amortization of intangible assets

   from business acquisitions

-



113,417



-



113,417



15,869

Non-GAAP operating income (loss)

3,951,547



(289,509)



(2,563)



3,659,475



511,979





















Net income (loss)

3,153,572



(1,234,939)



(10,185)



1,908,448



267,001

Share-based compensation

371,340



861,709



7,725



1,240,774



173,590

Amortization of intangible assets

   from business acquisitions

-



113,417



-



113,417



15,869

Tax impacts

-



(28,355)



-



(28,355)



(3,967)

Non-GAAP net income (loss)

3,524,912



(288,168)



(2,460)



3,234,284



452,493

 



 

Cision View original content:http://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-third-quarter-of-2020-301182266.html

SOURCE Momo Inc.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress ReleasesBanking/Financial Servicesentertainmentsocial media
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!