UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 2023

Commission File Number: 001-36765

 

 

Hello Group Inc.

 

 

20th Floor, Block B

Tower 2, Wangjing SOHO

No.1 Futongdong Street

Chaoyang District, Beijing 100102

People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Hello Group Inc.
By   :  

/s/ Cathy Hui Peng

Name   :   Cathy Hui Peng
Title   :   Chief Financial Officer

Date: December 8, 2023

Exhibit 99.1

Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2023

BEIJING, CHINA, December 8, 2023 – Hello Group Inc. (NASDAQ: MOMO) (“Hello Group” or the “Company”), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the third quarter of 2023.

Third Quarter of 2023 Highlights

 

  •  

Net revenues decreased by 5.9% year over year to RMB3,042.8 million (US$417.1 million*) in the third quarter of 2023.

 

  •  

Net income attributable to Hello Group Inc. increased to RMB546.4 million (US$74.9 million) in the third quarter of 2023, from RMB450.8 million in the same period of 2022.

 

  •  

Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB605.9 million (US$83.0 million) in the third quarter of 2023, from RMB535.8 million in the same period of 2022.

 

  •  

Diluted net income per American Depositary Share (“ADS”) was RMB2.75 (US$0.38) in the third quarter of 2023, compared to RMB2.20 in the same period of 2022.

 

  •  

Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.42) in the third quarter of 2023, compared to RMB2.60 in the same period of 2022.

 

  •  

Monthly Active Users (“MAU”) on Tantan application were 15.7 million in September 2023, compared to 20.9 million in September 2022.

 

  •  

For the Momo app total paying users was 7.8 million for the third quarter of 2023, compared to 8.4 million for the same period last year. Tantan had 1.4 million paying users for the third quarter of 2023 compared to 2.0 million from the year ago period.

First Nine Months of 2023 Highlights

 

  •  

Net revenues decreased by 5.2% year over year to RMB8,999.4 million (US$1,233.5 million) for the first nine months of 2023.

 

  •  

Net income attributable to Hello Group Inc. was RMB1,505.1 million (US$206.3 million) for the first nine months of 2023, compared to RMB1,086.3 million during the same period of 2022.

 

  •  

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,710.0 million (US$234.4 million) for the first nine months of 2023, compared to RMB1,397.8 million during the same period of 2022.

 

  •  

Diluted net income per ADS was RMB7.52 (US$1.03) for the first nine months of 2023, compared to RMB5.30 during the same period of 2022.

 

  •  

Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17) for the first nine months of 2023, compared to RMB6.75 during the same period of 2022.

“We are pleased to report strong financial results for the third quarter and steady progress on various strategic priorities across all business lines.” commented Yan Tang, Chairman and CEO of Hello Group. “The group level profitability continued to grow from the prior year period, thanks to our effective cost optimization and efficiency improvement initiatives, which enabled us to maintain the stability of Momo cash cow business, turn Tantan profitable as well as support the development of new endeavors.”

 

* 

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB7.2960 to US$1.00, the effective noon buying rate for September 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

1

Third Quarter of 2023 Financial Results

Net revenues

Total net revenues were RMB3,042.8 million (US$417.1 million) in the third quarter of 2023, a decrease of 5.9% from RMB3,233.0 million in the third quarter of 2022.

Live video service revenues were RMB1,530.8 million (US$209.8 million) in the third quarter of 2023, a decrease of 7.6% from RMB1,657.5 million during the same period of 2022. The decrease was primarily attributable to a soft consumer sentiment in the current macro environment, and to a lesser degree, Tantan pivoting away from the live video service which we deem not the priority for Tantan at this point for the dating service.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,466.7 million (US$201.0 million) in the third quarter of 2023, a decrease of 4.6% from RMB1,537.7 million during the same period of 2022. The decrease was primarily due to the impact of the macro economy on consumer sentiment as well as our proactive product adjustments to improve Momo app’s ecosystem, and to a lesser extent, the decline in Tantan’s paying user as we reduced marketing spending. However, the decrease was partially offset by the rapid revenue growth from the new standalone apps.

Mobile marketing revenues were RMB30.7 million (US$4.2 million) in the third quarter of 2023, an increase of 8.7% from RMB28.2 million during the same period of 2022.

Mobile games revenues were RMB7.9 million (US$1.1 million) in the third quarter of 2023, an increase of 1.9% from RMB7.7 million in the third quarter of 2022.

Net revenues from the Momo segment decreased from RMB2,891.0 million in the third quarter of 2022 to RMB2,743.1 million (US$376.0 million) in the third quarter of 2023, primarily due to the decrease in net revenues from value-added service and live video service on Momo application. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB341.3 million in the third quarter of 2022 to RMB295.0 million (US$40.4 million) in the third quarter of 2023, mainly due to the decrease in net revenues from value-added service, and to a lesser extent, the decrease from live video service.

Cost and expenses

Cost and expenses were RMB2,461.1 million (US$337.3 million) in the third quarter of 2023, a decrease of 10.0% from RMB2,734.2 million in the third quarter of 2022. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service and with virtual gift recipients of virtual gift service on the Momo application. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value; (c) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan’s channel marketing strategy and, to a lesser extent, Momo’s strategy to trim inefficient channel marketing spend.

 

2

Non-GAAP cost and expenses (note 1) were RMB2,401.6 million (US$329.2 million) in the third quarter of 2023, a decrease of 9.3% from RMB2,649.2 million during the same period of 2022.

Income from operations

Income from operations was RMB621.8 million (US$85.2 million) in the third quarter of 2023, compared to RMB520.1 million during the same period of 2022. Income from operations of the Momo segment was RMB618.6 million (US$84.8 million) in the third quarter of 2023, which increased from RMB569.4 million in the third quarter of 2022. Income from operations of the Tantan segment was RMB24.0 million (US$3.3 million) in the third quarter of 2023, compared to a loss from operations of RMB44.5 million in the third quarter of 2022.

Non-GAAP income from operations (note 1) was RMB681.2 million (US$93.4 million) in the third quarter of 2023, compared to RMB605.1 million during the same period of 2022. Non-GAAP income from operations of the Momo segment was RMB674.5 million (US$92.4 million) in the third quarter of 2023, which increased from RMB648.2 million in the third quarter of 2022. Non-GAAP income from operations of the Tantan segment was RMB27.6 million (US$3.8 million) in the third quarter of 2023, compared to a non-GAAP loss from operations of RMB38.3 million in the third quarter of 2022.

Income tax expenses

Income tax expenses were RMB158.1 million (US$21.7 million) in the third quarter of 2023, compared to RMB156.0 million in the third quarter of 2022. The increase in income tax expenses was primarily due to the higher profit in the third quarter of 2023.

Net income

Net income was RMB542.2 million (US$74.3 million) in the third quarter of 2023, compared to RMB449.9 million during the same period of 2022. Net income from the Momo segment was RMB540.0 million (US$74.0 million) in the third quarter of 2023, compared to RMB499.6 million in the same period of 2022. Net income from the Tantan segment was RMB23.0 million (US$3.2 million) in the third quarter of 2023, compared to a net loss of RMB45.0 million in the third quarter of 2022.

Non-GAAP net income (note 1) was RMB601.6 million (US$82.5 million) in the third quarter of 2023, compared to RMB534.8 million during the same period of 2022. Non-GAAP net income from the Momo segment was RMB595.9 million (US$81.7million) in the third quarter of 2023, which increased from RMB578.4 million in the third quarter of 2022. Non-GAAP net income of the Tantan segment was RMB26.6 million (US$3.6 million) in the third quarter of 2023, compared to a non-GAAP net loss of RMB38.8 million in the third quarter of 2022.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB546.4 million (US$74.9 million) in the third quarter of 2023, compared to RMB450.8 million during the same period of 2022.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB605.9 million (US$83.0 million) in the third quarter of 2023, compared to RMB535.8 million during the same period of 2022.

 

3

Net income per ADS

Diluted net income per ADS was RMB2.75 (US$0.38) in the third quarter of 2023, compared to RMB2.20 in the third quarter of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.42) in the third quarter of 2023, compared to RMB2.60 in the third quarter of 2022.

Cash and cash flow

As of September 30, 2023, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term investments, short-term restricted cash and long-term restricted cash totaled RMB13,644.6 million (US$1,870.1 million), compared to RMB13,398.8 million as of December 31, 2022.

Net cash provided by operating activities in the third quarter of 2023 was RMB582.5 million (US$79.8 million), compared to RMB444.5 million in the third quarter of 2022.

First Nine Months of 2023 Financial Results

Net revenues for the first nine months of 2023 were RMB8,999.4 million (US$1,233.5 million), a decrease of 5.2% from RMB9,491.5 million in the same period of 2022.

Net income attributable to Hello Group Inc. was RMB1,505.1 million (US$206.3 million) for the first nine months of 2023, compared to RMB1,086.3 million during the same period of 2022.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,710.0 million (US$234.4 million) for the first nine months of 2023, compared to RMB1,397.8 million during the same period of 2022.

Diluted net income per ADS was RMB7.52 (US$1.03) during the first nine months of 2023, compared to RMB5.30 in the same period of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17) during the first nine months of 2023, compared to RMB6.75 in the same period of 2022.

Net cash provided by operating activities was RMB1,861.3 million (US$255.1 million) during the first nine months of 2023, compared to RMB688.2 million in the same period of 2022.

Recent Development

Execution of share repurchase program

On June 7, 2022, Hello Group’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$200 million of its shares over the next 24 months. As of December 8, 2023, the Company has repurchased 16.2 million ADSs for US$86.1 million on the open market under this program, at an average purchase price of US$5.31 per ADS.

 

4

Business Outlook

For the fourth quarter of 2023, the Company expects total net revenues to be between RMB2.9 billion to RMB3.0 billion, representing a decrease of 9.7% to 6.6% year over year. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Note 1: Non-GAAP measures

To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation.

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

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

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

Conference Call

Hello Group’s management will host an earnings conference call on Friday, December 8, 2023, at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on December 8, 2023).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10035226-k7h0xo.html.

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

A telephone replay of the call will be available after the conclusion of the conference call through December 15, 2023. The dial-in details for the replay are as follows:

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

Hong Kong: 800-930-639

Passcode: 10035226

 

5

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

About Hello Group Inc.

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

For investor and media inquiries, please contact:

Hello Group Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: ir@hellogroup.com

Christensen

In China

Ms. Xiaoyan Su

Phone: +86-10-5900-1548

E-mail: Xiaoyan.Su@christensencomms.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.com

Safe Harbor Statement

This news release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes, our financial outlook for the fourth quarter of 2023, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.

 

6

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 2023 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2023 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the impact of the COVID-19 pandemic on the Company’s business operations and the economy in China, the market price of the Company’s stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company’s cash flows from operations, general economic conditions, and other factors. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

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

 

7

Hello Group 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  
     2022     2023     2023     2022     2023     2023  
     RMB     RMB     US$     RMB     RMB     US$  

Net revenues:

             

Live video service

      1,657,531       1,530,797       209,813       4,786,232       4,548,986       623,490  

Value-added service

      1,537,666       1,466,727       201,031       4,557,481       4,327,678       593,158  

Mobile marketing

      28,243       30,705       4,208       92,029       88,762       12,166  

Mobile games

      7,719       7,864       1,078       50,416       14,169       1,942  

Other services

      1,862       6,754       927       5,356       19,796       2,713  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      3,233,021       3,042,847       417,057       9,491,514       8,999,391       1,233,469  

Cost and expenses:

             

Cost of revenues

      (1,886,135 )      (1,771,530 )      (242,808 )      (5,505,369 )      (5,255,277 )      (720,296 ) 

Research and development

      (245,105 )      (201,693 )      (27,644 )      (733,562 )      (653,145 )      (89,521 ) 

Sales and marketing

      (467,012 )      (373,942 )      (51,253 )      (1,666,542 )      (1,110,253 )      (152,173 ) 

General and administrative

      (135,933 )      (113,896 )      (15,611 )      (453,514 )      (376,981 )      (51,670 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (2,734,185 )      (2,461,061 )      (337,316 )      (8,358,987 )      (7,395,656 )      (1,013,660 ) 

Other operating income, net

      21,289       39,971       5,478       85,790       99,284       13,608  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      520,125       621,757       85,219       1,218,317       1,703,019       233,417  

Interest income

      89,274       96,791       13,266       280,761       311,899       42,749  

Interest expense

      (25,010 )      (19,293 )      (2,644 )      (72,575 )      (41,671 )      (5,711 ) 

Other gain or loss, net

      40,403       —         —         118,325       4,565       626  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      624,792       699,255       95,841       1,544,828       1,977,812       271,081  

Income tax expenses

      (156,041 )      (158,064 )      (21,664 )      (452,860 )      (446,646 )      (61,218 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before share of income on equity method investments

      468,751       541,191       74,177       1,091,968       1,531,166       209,863  

Share of (loss) income on equity method investments

      (18,880 )      974       133       (8,967 )      (31,940 )      (4,378 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      449,871       542,165       74,310       1,083,001       1,499,226       205,485  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less: net loss attributable to non-controlling interest

      (964 )      (4,263 )      (584 )      (3,288 )      (5,886 )      (807 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to the shareholders of Hello Group Inc.

      450,835       546,428       74,894       1,086,289       1,505,112       206,292  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income per share attributable to ordinary shareholders

             

Basic

      1.15       1.44       0.20       2.75       3.98       0.55  

Diluted

      1.10       1.37       0.19       2.65       3.76       0.52  

Weighted average shares used in calculating net income per ordinary share

             

Basic

      391,027,485       379,292,110       379,292,110       394,333,009       378,085,030       378,085,030  

Diluted

      423,608,050       398,296,690       398,296,690       429,765,849       405,490,366       405,490,366  

 

8

Hello Group 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  
     2022     2023     2023     2022     2023      2023  
     RMB     RMB     US$     RMB     RMB      US$  

Net income

      449,871       542,165       74,310       1,083,001       1,499,226        205,485  

Other comprehensive (loss) income, net of tax:

              

Foreign currency translation adjustment

      (188,343 )      6,032       827       (328,832 )      116,188        15,925  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Comprehensive income

      261,528       548,197       75,137       754,169       1,615,414        221,410  

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

      10,831       (3,141 )      (431 )      17,710       5,377        737  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Comprehensive income attributable to Hello Group Inc.

      250,697       551,338       75,568       736,459       1,610,037        220,673  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

9

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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

 

     December 31      September 30      September 30  
     2022      2023      2023  
   RMB      RMB      US$  

Assets

         

Current assets

         

Cash and cash equivalents

      5,018,129        4,994,558        684,561  

Short-term deposits

      5,300,000        1,885,005        258,361  

Restricted cash

      97,706        9,245        1,267  

Short-term investments

      300,240        308,550        42,290  

Accounts receivable, net of allowance for doubtful accounts of RMB5,870 and RMB13,365 as of December 31, 2022 and September 30, 2023, respectively

      188,711        192,849        26,432  

Amounts due from related parties

      55        7,114        975  

Prepaid expenses and other current assets

      819,706        712,236        97,620  
  

 

 

     

 

 

     

 

 

  

Total current assets

      11,724,547        8,109,557        1,111,506  

Long-term deposits

      2,600,000        3,809,200        522,094  

Long-term restricted cash

      82,766        2,638,015        361,570  

Right-of-use assets, net

      115,520        127,804        17,517  

Property and equipment, net

      172,984        358,361        49,117  

Intangible assets, net

      22,203        18,365        2,517  

Rental deposits

      20,737        18,486        2,534  

Long-term investments

      893,988        860,306        117,915  

Amounts due from RPT-non current

      —          20,000        2,741  

Other non-current assets

      162,499        177,853        24,377  

Deferred tax assets

      34,343        33,470        4,587  
  

 

 

     

 

 

     

 

 

  

Total assets

      15,829,587        16,171,417        2,216,475  
  

 

 

     

 

 

     

 

 

  

Liabilities and equity

         

Current liabilities

         

Accounts payable

      617,022        642,886        88,113  

Deferred revenue

      484,775        474,647        65,056  

Accrued expenses and other current liabilities

      797,504        648,156        88,837  

Amounts due to related parties

      9,178        3,675        504  

Lease liabilities due within one year

      88,352        56,681        7,769  

Income tax payable

      68,765        89,263        12,235  

Dividends payable

      —          21,012        2,879  

Deferred consideration in connection with business acquisitions

      26,483        28,014        3,840  

Long-term borrowings, current portion

      —          215,615        29,552  

Convertible senior notes-current

      2,646,168        —          —    
  

 

 

     

 

 

     

 

 

  

Total current liabilities

      4,738,247        2,179,949        298,785  

Deferred tax liabilities

      22,011        151,578        20,775  

Convertible Senior Notes

      —          20,094        2,754  

Long-term borrowings

      —          1,938,385        265,678  

Lease liabilities

      33,281        66,285        9,085  

Other non-current liabilities

      105,410        95,958        13,152  
  

 

 

     

 

 

     

 

 

  

Total liabilities

      4,898,949        4,452,249        610,229  

Shareholder’s equity (i)

      10,930,638        11,719,168        1,606,246  
  

 

 

     

 

 

     

 

 

  

Total liabilities and shareholder’s equity

      15,829,587        16,171,417        2,216,475  
  

 

 

     

 

 

     

 

 

  

 

(i):

As of September 30, 2023, the number of ordinary shares outstanding was 379,881,912.

 

10

Hello Group 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  
     2022     2023     2023     2022     2023     2023  
     RMB     RMB     US$     RMB     RMB     US$  

Cash flows from operating activities:

             

Net income

      449,871       542,165       74,310       1,083,001       1,499,226       205,485  

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

             

Depreciation of property and equipment

      27,047       17,467       2,394       83,107       59,098       8,100  

Amortization of intangible assets

      1,279       1,279       175       3,837       3,837       526  

Share-based compensation

      84,976       59,472       8,151       311,540       204,877       28,081  

Share of loss (income) on equity method investments

      18,880       (974 )      (133 )      8,967       31,940       4,378  

Gain on repurchase of convertible senior notes

      (51,653 )      —         —         (129,575 )      (4,565 )      (626 ) 

Loss on long-term investments

      11,250       —         —         11,250       —         —    

Cash received on distributions from equity method investments

      —         718       98       1,708       2,067       283  

Gain or loss on disposal of property and equipment

      (923 )      (60 )      (8 )      (783 )      (520 )      (71 ) 

Provision of (income) loss on receivable and other assets

      (820 )      (133 )      (18 )      (453 )      10,071       1,380  

Changes in operating assets and liabilities:

             

Accounts receivable

      22,973       10,749       1,473       15,695       (9,916 )      (1,359 ) 

Prepaid expenses and other current assets

      41,418       (96,572 )      (13,236 )      (16,144 )      98,294       13,472  

Amounts due from related parties

      —         (27,114 )      (3,716 )      —         (27,059 )      (3,709 ) 

Rental deposits

      716       1,301       178       1,399       2,252       309  

Deferred tax assets

      590       415       57       (986 )      872       120  

Other non-current assets

      16,130       (50,578 )      (6,932 )      76,820       (27,639 )      (3,788 ) 

Accounts payable

      (438 )      6,987       958       (106,392 )      38,825       5,321  

Income tax payable

      (15,635 )      24,215       3,319       (50,923 )      20,496       2,809  

Deferred revenue

      (19,356 )      11,736       1,609       (73,891 )      (11,137 )      (1,526 ) 

Accrued expenses and other current liabilities

      (108,513 )      15,374       2,107       (304,346 )      (172,186 )      (23,600 ) 

Amount due to related parties

      7,824       (8,401 )      (1,151 )      4,427       (5,504 )      (754 ) 

Deferred tax liabilities

      (14,425 )      47,681       6,535       (171,752 )      130,198       17,845  

Other non-current liabilities

      (26,655 )      26,741       3,665       (58,311 )      17,757       2,434  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      444,536       582,468       79,835       688,195       1,861,284       255,110  

Cash flows from investing activities:

             

Purchase of property and equipment

      (27,051 )      (238,219 )      (32,651 )      (70,392 )      (259,463 )      (35,562 ) 

Payment for long-term investments

      —         —         —         (55,343 )      (9,000 )      (1,234 ) 

Purchase of short-term deposits

      (1,700,000 )      (531,214 )      (72,809 )      (1,700,000 )      (1,028,556 )      (140,975 ) 

Cash received on maturity of short-term deposits

      2,700,000       1,900,000       260,417       3,710,000       5,409,820       741,478  

Cash received on investment income distribution

      —         —         —         3,523       1,517       208  

Purchase of long-term deposits

      (1,000,000 )      (2,498,860 )      (342,497 )      (2,550,000 )      (3,848,860 )      (527,530 ) 

Cash received on maturity of long-term deposits

      —         1,700,000       233,004       1,200,000       1,700,000       233,004  

Cash received from sales of long-term investment

      —         15,000       2,056       —         15,000       2,056  

Other investing activities

      2,781       137       19       3,103       1,822       250  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash (used in) provided by investing activities

      (24,270 )      346,844       47,539       540,891       1,982,280       271,695  

Cash flows from financing activities:

             

Deferred payment for business acquisition

      (15,858 )      —         —         (21,421 )      —         —    

Proceeds from exercise of share options

      18       551       76       51       570       78  

Repurchase of ordinary shares

      (285,355 )      (58,767 )      (8,055 )      (287,690 )      (62,004 )      (8,498 ) 

Repurchase of subsidiary’s share options

      (14,330 )      (223 )      (31 )      (39,867 )      (4,319 )      (592 ) 

Dividends payment

      —         —         —         (840,997 )      (937,249 )      (128,461 ) 

Proceeds from long-term borrowings

      —         2,154,000       295,230       —         2,154,000       295,230  

Payment for redemption of convertible bonds

      (1,024,443 )      (86,932 )      (11,915 )      (2,136,987 )      (2,679,942 )      (367,317 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash (used in) provided by financing activities

      (1,339,968 )      2,008,629       275,305       (3,326,911 )      (1,528,944 )      (209,560 ) 

Effect of exchange rate changes

      (6,190 )      (7,837 )      (1,075 )      72,096       128,597       17,625  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net (decrease) increase in cash and cash equivalents

      (925,892 )      2,930,104       401,604       (2,025,729 )      2,443,217       334,870  

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

      4,547,197       4,711,714       645,794       5,647,034       5,198,601       712,528  

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

      3,621,305       7,641,818       1,047,398       3,621,305       7,641,818       1,047,398  

 

11

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

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

 

     Three months     Three months     Three months  
   Ended September 30, 2022     Ended September 30, 2023     Ended September 30, 2023  
     GAAP
RMB		     Share-based
compensation
RMB		      Non-GAAP
RMB		     GAAP
RMB		     Share-based
compensation
RMB		      Non-GAAP
RMB		     GAAP
US$		     Share-based
compensation
US$		      Non-GAAP
US$		  

Cost of revenues

      (1,886,135 )      1,496        (1,884,639 )      (1,771,530 )      1,211        (1,770,319 )      (242,808 )      166        (242,642 ) 

Research and development

      (245,105 )      21,713        (223,392 )      (201,693 )      14,993        (186,700 )      (27,644 )      2,055        (25,589 ) 

Sales and marketing

      (467,012 )      8,453        (458,559 )      (373,942 )      5,854        (368,088 )      (51,253 )      802        (50,451 ) 

General and administrative

      (135,933 )      53,314        (82,619 )      (113,896 )      37,414        (76,482 )      (15,611 )      5,128        (10,483 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Cost and operating expenses

      (2,734,185 )      84,976        (2,649,209 )      (2,461,061 )      59,472        (2,401,589 )      (337,316 )      8,151        (329,165 ) 

Income from operations

      520,125       84,976        605,101       621,757       59,472        681,229       85,219       8,151        93,370  

Net income attributable to Hello Group Inc.

      450,835       84,976        535,811       546,428       59,472        605,900       74,894       8,151        83,045  

 

12

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

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

 

     First nine months     First nine months     First nine months  
   Ended September 30, 2022     Ended September 30, 2023     Ended September 30, 2023  
     GAAP
RMB		     Share-based
compensation
RMB		      Non-GAAP
RMB		     GAAP
RMB		     Share-based
compensation
RMB		      Non-GAAP
RMB		     GAAP
US$		     Share-based
compensation
US$		      Non-GAAP
US$		  

Cost of revenues

      (5,505,369 )      12,488        (5,492,881 )      (5,255,277 )      4,398        (5,250,879 )      (720,296 )      603        (719,693 ) 

Research and development

      (733,562 )      66,652        (666,910 )      (653,145 )      51,186        (601,959 )      (89,521 )      7,016        (82,505 ) 

Sales and marketing

      (1,666,542 )      29,952        (1,636,590 )      (1,110,253 )      20,413        (1,089,840 )      (152,173 )      2,798        (149,375 ) 

General and administrative

      (453,514 )      202,448        (251,066 )      (376,981 )      128,880        (248,101 )      (51,670 )      17,664        (34,006 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Cost and operating expenses

      (8,358,987 )      311,540        (8,047,447 )      (7,395,656 )      204,877        (7,190,779 )      (1,013,660 )      28,081        (985,579 ) 

Income from operations

      1,218,317       311,540        1,529,857       1,703,019       204,877        1,907,896       233,417       28,081        261,498  

Net income attributable to Hello Group Inc.

      1,086,289       311,540        1,397,829       1,505,112       204,877        1,709,989       206,292       28,081        234,373  

 

13

Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     Three months  
   Ended September 30, 2023  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

           

Live video service

      1,410,844       119,953       —         1,530,797       209,813  

Value-added service

      1,298,329       168,398       —         1,466,727       201,031  

Mobile marketing

      24,039       6,666       —         30,705       4,208  

Mobile games

      7,864       —         —         7,864       1,078  

Other services

      1,981       —         4,773       6,754       927  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      2,743,057       295,017       4,773       3,042,847       417,057  

Cost and expenses (ii):

           

Cost of revenues

      (1,606,261 )      (145,346 )      (19,923 )      (1,771,530 )      (242,808 ) 

Research and development

      (151,649 )      (50,044 )      —         (201,693 )      (27,644 ) 

Sales and marketing

      (298,919 )      (71,978 )      (3,045 )      (373,942 )      (51,253 ) 

General and administrative

      (105,339 )      (5,656 )      (2,901 )      (113,896 )      (15,611 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (2,162,168 )      (273,024 )      (25,869 )      (2,461,061 )      (337,316 ) 

Other operating income, net

      37,750       1,985       236       39,971       5,478  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

      618,639       23,978       (20,860 )      621,757       85,219  

Interest income

      96,680       94       17       96,791       13,266  

Interest expense

      (19,293 )      —         —         (19,293 )      (2,644 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      696,026       24,072       (20,843 )      699,255       95,841  

Income tax expenses

      (156,992 )      (1,072 )      —         (158,064 )      (21,664 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      539,034       23,000       (20,843 )      541,191       74,177  

Share of loss on equity method investments

      974       —         —         974       133  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      540,008       23,000       (20,843 )      542,165       74,310  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(ii)

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

 

     Three months  
     Ended September 30, 2023  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

      1,207        4        —          1,211        166  

Research and development

      11,401        3,592        —          14,993        2,055  

Sales and marketing

      5,854        —          —          5,854        802  

General and administrative

      37,406        8        —          37,414        5,128  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total cost and expenses

      55,868        3,604        —          59,472        8,151  

 

14

Hello Group Inc.

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

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

 

     Three months  
     Ended September 30, 2023  
     Momo      Tantan      QOOL     Total      Total  
     RMB      RMB      RMB     RMB      US$  

Income (loss) from operations

      618,639        23,978        (20,860 )      621,757        85,219  

Share-based compensation

      55,868        3,604        —         59,472        8,151  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Non-GAAP income (loss) from operations

      674,507        27,582        (20,860 )      681,229        93,370  

Net income (loss)

      540,008        23,000        (20,843 )      542,165        74,310  

Share-based compensation

      55,868        3,604        —         59,472        8,151  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Non-GAAP net income (loss)

      595,876        26,604        (20,843 )      601,637        82,461  

 

15

Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     Three months  
   Ended September 30, 2022  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$1  

Net revenues:

           

Live video service

      1,517,872       139,659       —         1,657,531       233,012  

Value-added service

      1,336,050       201,616       —         1,537,666       216,162  

Mobile marketing

      28,243       —         —         28,243       3,970  

Mobile games

      7,719       —         —         7,719       1,085  

Other services

      1,126       —         736       1,862       262  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      2,891,010       341,275       736       3,233,021       454,491  

Cost and expenses (iii):

           

Cost of revenues

      (1,704,934 )      (180,277 )      (924 )      (1,886,135 )      (265,149 ) 

Research and development

      (176,727 )      (68,378 )      —         (245,105 )      (34,456 ) 

Sales and marketing

      (335,350 )      (130,222 )      (1,440 )      (467,012 )      (65,652 ) 

General and administrative

      (124,184 )      (8,574 )      (3,175 )      (135,933 )      (19,109 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (2,341,195 )      (387,451 )      (5,539 )      (2,734,185 )      (384,366 ) 

Other operating income

      19,563       1,722       4       21,289       2,993  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

      569,378       (44,454 )      (4,799 )      520,125       73,118  

Interest income

      89,003       187       84       89,274       12,550  

Interest expense

      (25,010 )      —         —         (25,010 )      (3,516 ) 

Other gain or loss, net

      40,403       —         —         40,403       5,680  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      673,774       (44,267 )      (4,715 )      624,792       87,832  

Income tax expenses

      (155,328 )      (713 )      —         (156,041 )      (21,936 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      518,446       (44,980 )      (4,715 )      468,751       65,896  

Share of loss on equity method investments

      (18,880 )      —         —         (18,880 )      (2,654 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      499,566       (44,980 )      (4,715 )      449,871       63,242  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(iii)

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

 

     Three months  
     Ended September 30, 2022  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

      1,478        18        —          1,496        210  

Research and development

      15,640        6,073        —          21,713        3,052  

Sales and marketing

      8,446        7        —          8,453        1,188  

General and administrative

      53,272        42        —          53,314        7,495  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total cost and expenses

      78,836        6,140        —          84,976        11,945  

 

 

1 

All translations from RMB to U.S. dollars are made at a rate of RMB7.1135 to US$1.00, the effective noon buying rate for September 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

16

Hello Group Inc.

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

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

 

     Three months  
     Ended September 30, 2022  
     Momo      Tantan     QOOL     Total      Total  
     RMB      RMB     RMB     RMB      US$  

Income (loss) from operations

      569,378        (44,454 )      (4,799 )      520,125        73,118  

Share-based compensation

      78,836        6,140       —         84,976        11,945  
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-GAAP income (loss) from operations

      648,214        (38,314 )      (4,799 )      605,101        85,063  

Net income (loss)

      499,566        (44,980 )      (4,715 )      449,871        63,242  

Share-based compensation

      78,836        6,140       —         84,976        11,945  
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-GAAP net income (loss)

      578,402        (38,840 )      (4,715 )      534,847        75,187  

 

17

Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     First nine months  
   Ended September 30, 2023  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

           

Live video service

      4,144,164       404,822       —         4,548,986       623,490  

Value-added service

      3,821,183       506,495       —         4,327,678       593,158  

Mobile marketing

      75,730       13,032       —         88,762       12,166  

Mobile games

      14,169       —         —         14,169       1,942  

Other services

      14,577       —         5,219       19,796       2,713  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      8,069,823       924,349       5,219       8,999,391       1,233,469  

Cost and expenses (iv):

           

Cost of revenues

      (4,765,127 )      (469,111 )      (21,039 )      (5,255,277 )      (720,296 ) 

Research and development

      (483,997 )      (169,148 )      —         (653,145 )      (89,521 ) 

Sales and marketing

      (894,462 )      (210,208 )      (5,583 )      (1,110,253 )      (152,173 ) 

General and administrative

      (349,614 )      (19,600 )      (7,767 )      (376,981 )      (51,670 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (6,493,200 )      (868,067 )      (34,389 )      (7,395,656 )      (1,013,660 ) 

Other operating income

      95,876       3,110       298       99,284       13,608  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

      1,672,499       59,392       (28,872 )      1,703,019       233,417  

Interest income

      311,157       656       86       311,899       42,749  

Interest expense

      (41,671 )      —         —         (41,671 )      (5,711 ) 

Other gain or loss, net

      4,565       —         —         4,565       626  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,946,550       60,048       (28,786 )      1,977,812       271,081  

Income tax expenses

      (443,175 )      (3,471 )      —         (446,646 )      (61,218 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,503,375       56,577       (28,786 )      1,531,166       209,863  

Share of income on equity method investments

      (31,940 )      —         —         (31,940 )      (4,378 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      1,471,435       56,577       (28,786 )      1,499,226       205,485  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(iv)

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

 

     First nine months  
     Ended September 30, 2023  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

      4,262        136        —          4,398        603  

Research and development

      36,793        14,393        —          51,186        7,016  

Sales and marketing

      20,408        5        —          20,413        2,798  

General and administrative

      128,856        24        —          128,880        17,664  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total cost and expenses

      190,319        14,558        —          204,877        28,081  

 

18

Hello Group Inc.

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

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

 

     First nine months  
     ended September 30, 2023  
     Momo      Tantan      QOOL     Total      Total  
     RMB      RMB      RMB     RMB      US$  

Operating income (loss)

      1,672,498        59,392        (28,871 )      1,703,019        233,417  

Share-based compensation

      190,319        14,558        —         204,877        28,081  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Non-GAAP operating income (loss)

      1,862,817        73,950        (28,871 )      1,907,896        261,498  

Net income (loss)

      1,471,435        56,577        (28,786 )      1,499,226        205,485  

Share-based compensation

      190,319        14,558        —         204,877        28,081  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Non-GAAP net income (loss)

      1,661,754        71,135        (28,786 )      1,704,103        233,566  

 

19

Hello Group Inc.

Unaudited Condensed Segment Report

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

 

     First nine months  
   Ended September 30, 2022  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

           

Live video service

      4,404,991       381,241       —         4,786,232       672,838  

Value-added service

      3,917,609       639,872       —         4,557,481       640,681  

Mobile marketing

      92,029       —         —         92,029       12,937  

Mobile games

      50,416       —         —         50,416       7,087  

Other services

      4,298       —         1,058       5,356       753  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      8,469,343       1,021,113       1,058       9,491,514       1,334,296  

Cost and expenses (v):

           

Cost of revenues

      (4,981,345 )      (522,188 )      (1,836 )      (5,505,369 )      (773,933 ) 

Research and development

      (536,640 )      (196,922 )      —         (733,562 )      (103,123 ) 

Sales and marketing

      (1,039,526 )      (623,680 )      (3,336 )      (1,666,542 )      (234,279 ) 

General and administrative

      (415,954 )      (25,335 )      (12,225 )      (453,514 )      (63,754 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (6,973,465 )      (1,368,125 )      (17,397 )      (8,358,987 )      (1,175,089 ) 

Other operating income

      76,253       9,491       46       85,790       12,060  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

      1,572,131       (337,521 )      (16,293 )      1,218,317       171,267  

Interest income

      280,252       291       218       280,761       39,469  

Interest expense

      (72,575 )      —         —         (72,575 )      (10,202 ) 

Other gain or loss, net

      118,325       —         —         118,325       16,634  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,898,133       (337,230 )      (16,075 )      1,544,828       217,168  

Income tax expenses

      (451,061 )      (1,799 )      —         (452,860 )      (63,662 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,447,072       (339,029 )      (16,075 )      1,091,968       153,506  

Share of loss on equity method investments

      (8,967 )      —         —         (8,967 )      (1,261 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      1,438,105       (339,029 )      (16,075 )      1,083,001       152,245  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(v)

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

 

     First nine months  
     Ended September 30, 2022  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

      5,477        7,011        —          12,488        1,756  

Research and development

      51,752        14,900        —          66,652        9,370  

Sales and marketing

      29,729        223        —          29,952        4,211  

General and administrative

      202,319        129        —          202,448        28,460  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total cost and expenses

      289,277        22,263        —          311,540        43,797  

 

20

Hello Group Inc.

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

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

 

     First nine months  
     ended September 30, 2022  
     Momo      Tantan     QOOL     Total      Total  
     RMB      RMB     RMB     RMB      US$  

Operating income (loss)

      1,572,131        (337,521 )      (16,293 )      1,218,317        171,267  

Share-based compensation

      289,277        22,263       —         311,540        43,797  
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-GAAP operating income (loss)

      1,861,408        (315,258 )      (16,293 )      1,529,857        215,064  

Net income (loss)

      1,438,105        (339,029 )      (16,075 )      1,083,001        152,245  

Share-based compensation

      289,277        22,263       —         311,540        43,797  
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Non-GAAP net income (loss)

      1,727,382        (316,766 )      (16,075 )      1,394,541        196,042  

 

21

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