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Momo Announces Unaudited Financial Results for the Second Quarter of 2019

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August 27, 2019 2:36 AM EDT

BEIJING, Aug. 27, 2019 /PRNewswire/ -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"), a leading mobile social networking platform in China, today announced its unaudited financial results for the second quarter of 2019.

Second Quarter of 2019 Highlights

  • Net revenues increased by 32% year over year to RMB4,152.6 million (US$604.9 million*) in the second quarter of 2019.
  • Net income attributable to Momo Inc. decreased to RMB731.8 million (US$106.6 million) in the second quarter of 2019 from RMB750.2 million in the same period of 2018. We recognized a total share-based compensation expense of RMB482.5 million (US$70.3 million) in the second quarter of 2019 including a share-based compensation expense of RMB323.7 million (US$47.1 million) regarding certain share options granted to the founders of Tantan Limited ("Tantan"), while the total share-based compensation expense recognized in the same period of 2018 was only RMB134.2 million. In August 2018, Tantan Limited granted 3,578,205 share options to its founders. The share options included a performance condition in which the founders have the right to receive fully vested options immediately upon achieving certain performance condition. During the second quarter of 2019, the performance condition was met and accordingly, we recognized a share-based compensation expense of RMB323.7 million (US$47.1 million) related to those options.
  • Non-GAAP net income attributable to Momo Inc. (note 1) increased to RMB1,242.5 million (US$181.0 million) in the second quarter of 2019, from RMB893.2 million in the same period of 2018.
  • Diluted net income per American Depositary Share ("ADS") was RMB3.33 (US$0.49) in the second quarter of 2019, compared to RMB3.55 in the same period of 2018.
  • Non-GAAP diluted net income per ADS (note 1) was RMB5.60 (US$0.82) in the second quarter of 2019, compared to RMB4.22 in the same period of 2018.
  • Monthly Active Users ("MAU") on Momo application were 113.5 million in June 2019, compared to 108.0 million in June 2018.
  • Total paying users of our live video service and value-added service, without double counting the overlap, including 3.2 million paying users of Tantan, were 11.8 million for the second quarter of 2019, compared to 11.6 million for the second quarter of 2018, which included 3.1 million paying users of Tantan in June 2018.

 

* 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 RMB6.865 to US$1.00, the effective noon buying rate for June 28, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

Recent Development

Tantan's download and payment services were fully restored by July 15, 2019. As of August 25, 2019, the number of paying users of Tantan was 4.1 million.

First Half of 2019 Highlights

  • Net revenues increased 33% year over year to RMB7,875.5 million (US$1,147.2 million) for the first half of 2019.
  • Net income attributable to Momo Inc. was RMB1,021.1 million (US$148.7 million) for the first half of 2019, compared with RMB1,575.4 million during the same period of 2018.
  • Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,152.8 million (US$313.6 million) for the first half of 2019, compared with RMB1,797.0 million during the same period of 2018.
  • Diluted net income per ADS was RMB4.71 (US$0.69) for the first half of 2019, compared with RMB7.52 during the same period of 2018.
  • Non-GAAP diluted net income per ADS (note 1) was RMB9.75 (US$1.42) for the first half of 2019, compared with RMB8.58 during the same period of 2018.

"The second quarter of 2019 was a good quarter. We continued to deliver strong financial results and make progress across all of our strategic priorities," commented Yan Tang, Chairman and CEO of Momo. "Since the full restoration of its download and payment service in mid-July, Tantan has been recovering with robust momentum across different user and revenue metrics. It demonstrated the strong demand for online dating service in China and Tantan's unique position in this sector. We expect Tantan to become an important driver of the company's growth in the coming few years."

Second Quarter of 2019 Financial Results

Net revenues

Total net revenues were RMB4,152.6 million (US$604.9 million) in the second quarter of 2019, an increase of 32% from RMB3,152.5 million in the second quarter of 2018.

Live video service revenues were RMB3,099.9 million (US$451.5 million) in the second quarter of 2019, an increase of 18% from RMB2,620.9 million during the same period of 2018. The growth in live video revenues was contributed by the increase in quarterly paying users, as well as the increase in average revenues per paying user per quarter.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. The total value-added service revenues were RMB948.4 million (US$138.1 million) in the second quarter of 2019, an increase of 169% from RMB352.6 million during the same period of 2018. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more paying scenarios introduced to enhance the social experience of Momo users, and the consolidation of Tantan's membership subscription revenues for the whole second quarter of 2019, compared to the single month of June 2018 in the second quarter of 2018.

Mobile marketing revenues were RMB76.2 million (US$11.1 million) in the second quarter of 2019, a decrease of 46% from RMB142.0 million during the same period of 2018. The decrease in mobile marketing revenues was due to the decrease in advertisement properties on Momo's platform resulting from the suspension of certain user posting functions.

Mobile games revenues were RMB23.2 million (US$3.4 million) in the second quarter of 2019, a decrease of 33% from RMB34.8 million in the second quarter of 2018. 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 increased from RMB3,119.8 million in the second quarter of 2018 to RMB3,865.4 million (US$563.1 million) in the second quarter of 2019, primarily driven by the significant increase in net revenues from live video service and value-added service. Net revenues from Tantan segment increased from RMB31.0 million in the second quarter of 2018 to RMB284.8 million (US$41.5million) in the second quarter of 2019, which mainly included value-added service revenues. Tantan segment has been consolidated since June 2018.

Cost and expenses

Cost and expenses were RMB3,386.8 million (US$493.3 million) in the second quarter of 2019, an increase of 44% from RMB2,356.8 million in the second quarter of 2018. The increase was primarily attributable to: (a) an increase in personnel related costs including share-based compensation expenses, especially the share-based compensation expenses of RMB323.7 million (US$47.1 million) charged related to the options granted to Tantan's founders and the Company's rapidly expanding talent pool; (b) an increase in revenue sharing with broadcasters related to our live video service and virtual gift recipients; (c) an increase in marketing and promotional expenses to attract users and promote our live video services; (d) an increase in infrastructure-related spending, such as bandwidth costs and server depreciation costs, driven by more functions introduced on Momo's platform. The increase was partially offset by a decrease in production cost in connection with television program.

Non-GAAP cost and expenses (note 1) were RMB2,866.7 million (US$417.6 million) in the second quarter of 2019, an increase of 30% from RMB2,210.9 million during the same period of 2018.

Other operating income

Other operating income was RMB161.9 million (US$23.6 million) in the second quarter of 2019, a significant increase from RMB100.1 million during the second quarter of 2018. The increase was mainly due to more government incentives received in the second quarter of 2019.

Income from operations

Income from operations was RMB927.7 million (US$135.1 million) in the second quarter of 2019, compared to RMB895.8 million during the same period of 2018. Income from operations of Momo segment was RMB1,354.4 million (US$197.3 million) in the second quarter of 2019, increasing from RMB1,159.3 million in the second quarter of 2018. Loss from operations of Tantan segment was RMB431.4 million (US$62.8 million) in the second quarter of 2019, compared to loss from operations of RMB97.8 million in the second quarter of 2018. Tantan segment has been consolidated since June 2018.

Non-GAAP income from operations (note 1) was RMB1,447.9 million (US$210.9 million) in the second quarter of 2019, compared to RMB1,041.7 million during the same period of 2018. Non-GAAP income from operations of Momo segment was RMB1,488.5 million (US$216.8 million) in the second quarter of 2019, increasing from RMB1,258.9 million in the second quarter of 2018. Non-GAAP loss from operations of Tantan segment was RMB47.9 million (US$7.0 million) in the second quarter of 2019, compared to non-GAAP loss from operations of RMB51.5 million in the second quarter of 2018. Tantan segment has been consolidated since June 2018.

Income tax expenses

Income tax expenses were RMB283.9 million (US$41.4 million) in the second quarter of 2019, increasing from RMB198.6 million in the second quarter of 2018. The increase was mainly because we generated higher profit in the second quarter of 2019.

Net income

Net income was RMB731.1 million (US$106.5 million) in the second quarter of 2019, compared to RMB748.1 million during the same period of 2018. Net income from Momo segment was RMB1,149.5 million (US$167.4 million) in the second quarter of 2019, increasing from RMB1,008.6 million in the second quarter of 2018. Net loss from Tantan segment was RMB423.2 million (US$61.6 million) in the second quarter of 2019, compared to net loss of RMB94.8 million in the second quarter of 2018, which was mainly due to the share-based compensation expenses of RMB323.7 million (US$47.1 million) charged related to the options granted to Tantan's founders. Tantan segment has been consolidated since June 2018.

Non-GAAP net income (note 1) was RMB1,241.8 million (US$180.9 million) in the second quarter of 2019, compared to RMB891.0 million during the same period of 2018. Non-GAAP net income from Momo segment was RMB1,283.6 million (US$187.0 million) in the second quarter of 2019, increasing from RMB1,108.2 million in the second quarter of 2018. Non-GAAP net loss of Tantan segment was RMB49.1 million (US$7.1 million) in the second quarter of 2019, compared to non-GAAP net loss of RMB51.4 million in the second quarter of 2018. Tantan segment has been consolidated since June 2018.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB731.8 million (US$106.6 million) in the second quarter of 2019, compared to RMB750.2 million during the same period of 2018.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB1,242.5 million (US$181.0 million) in the second quarter of 2019, compared to RMB893.2 million during the same period of 2018.

Net income per ADS

Diluted net income per ADS was RMB3.33 (US$0.49) in the second quarter of 2019, compared to RMB3.55 in the second quarter of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB5.60 (US$0.82) in the second quarter of 2019, compared to RMB4.22 in the second quarter of 2018.

Cash and cash flow

As of June 30, 2019, Momo's cash, cash equivalents, term deposits and short-term investment totaled RMB12,489.8 million (US$1,819.4 million), compared to RMB11,292.6 million as of December 31, 2018. Net cash provided by operating activities in the second quarter of 2019 was RMB1,422.0 million (US$207.1 million), compared to RMB992.4 million in the second quarter of 2018.

First Half of 2019 Financial Results

Net revenues for the first half of 2019 were RMB7,875.5 million (US$1,147.2 million), an increase of 33% from RMB5,916.9 million in the same period of 2018, primarily driven by the significant increase in net revenues from live video service and value-added service.

Net income attributable to Momo Inc. was RMB1,021.1 million (US$148.7 million) for the first half of 2019, compared to RMB1,575.4 million during the same period of 2018.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,152.8 million (US$313.6 million) for the first half of 2019, compared to RMB1,797.0 million during the same period of 2018.

Diluted net income per ADS was RMB4.71 (US$0.69) during the first half of 2019, compared to RMB7.52 in the same period of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB9.75 (US$1.42) during the first half of 2019, compared to RMB8.58 in the same period of 2018.

Net cash provided by operating activities was RMB2,597.9 million (US$378.4 million) during the first half of 2019, compared to RMB1,817.9 million in the same period of 2018.

Business Outlook

For the third quarter of 2019, the Company expects total net revenues to be between RMB4.25 billion to RMB4.35 billion, representing an increase of 17% to 19% year over year. These estimates reflect the Company's current and preliminary view, which is 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 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, August 27, 2019, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on August 27, 2019).

Dial-in details for the earnings conference call are as follows:

International:

+65-6713-5090

U.S. Toll Free:

+1-866-519-4004

Hong Kong Toll Free:

800-906601

Mainland China: 

4006-208038

Passcode:

Momo

Please dial in 15 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 9:00 a.m. U.S. Eastern Time, September 4, 2019. The dial-in details for the replay are as follows:

International: 

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

8558826

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

Momo is a leading mobile social networking platform in China. Momo connects people in a personal and lively way through a revolutionary mobile-based social networking platform. With powerful and precise location-based features, Momo enables users to connect with each other and expand relationships from online to offline. Momo's platform includes the Momo mobile application and a variety of related features, functionalities, tools and services that it provides to users, customers and platform partners. Leveraging its social interest graph engine and analysis of user behavior data, Momo is able to provide users a customized experience based on their social preferences and needs. Momo users can maintain and strengthen their relationships through private and group communication tools, content creation and sharing functions, as well as the offline social activities promoted on Momo's platform. Momo users are also able to enjoy live video on our platform. In addition, in May 2018, Momo completed its acquisition of Tantan, a leading social and dating app for the younger generation. Tantan, whose primary users consist of young Chinese singles, 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: +86-10-5731-0538Email: [email protected]

Christensen

In ChinaMr. Christian Arnell Phone: +86-10-5900-1548 E-mail: [email protected] 

In US Ms. Linda BergkampPhone: +1-480-614-3004 Email: [email protected]

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes and our financial outlook for the third quarter of 2019.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the second quarter of 2019 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the third quarter of 2019 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. In addition, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, and our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

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

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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

Three months

First half year

ended June 30

ended June 30

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Net revenues:

Live video service

2,620,924

3,099,887

451,549

4,981,038

5,789,300

843,307

Value-added service

352,583

948,394

138,149

587,587

1,852,243

269,810

Mobile marketing

141,984

76,208

11,101

260,842

156,937

22,860

Mobile games

34,782

23,240

3,385

77,010

62,248

9,067

Other services

2,258

4,901

715

10,430

14,821

2,159

Total net revenues

3,152,531

4,152,630

604,899

5,916,907

7,875,549

1,147,203

Cost and expenses:

Cost of revenues

(1,720,340)

(2,063,863)

(300,636)

(3,051,980)

(3,937,437)

(573,552)

Research and development

(160,097)

(251,658)

(36,658)

(271,483)

(501,089)

(72,992)

Sales and marketing

(348,722)

(570,609)

(83,119)

(630,430)

(1,194,457)

(173,992)

General and administrative

(127,665)

(500,660)

(72,929)

(237,134)

(1,103,256)

(160,707)

Total cost and expenses

(2,356,824)

(3,386,790)

(493,342)

(4,191,027)

(6,736,239)

(981,243)

Other operating income

100,075

161,901

23,584

106,979

172,855

25,179

Income from operations

895,782

927,741

135,141

1,832,859

1,312,165

191,139

Interest income

52,547

100,175

14,592

100,452

193,953

28,252

Interest expense

(12,436)

(19,315)

(2,814)

(12,436)

(38,304)

(5,580)

Impairment loss on long-term     investments

-

-

-

-

(4,500)

(655)

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

935,893

1,008,601

146,919

1,920,875

1,463,314

213,156

Income tax expenses

(198,605)

(283,868)

(41,350)

(369,534)

(447,519)

(65,188)

Income before share of     income on equity method     investments

737,288

724,733

105,569

1,551,341

1,015,795

147,968

Share of income on equity     method investments

10,789

6,375

929

18,915

1,871

273

Net income

748,077

731,108

106,498

1,570,256

1,017,666

148,241

Less: net loss attributable to     non-controlling interest

(2,167)

(669)

(97)

(5,143)

(3,428)

(499)

Net income attributable to     Momo Inc.

750,244

731,777

106,595

1,575,399

1,021,094

148,740

 

Net income per share     attributable to ordinary     shareholders

Basic

1.85

1.76

0.26

3.92

2.46

0.36

Diluted

1.77

1.67

0.24

3.76

2.36

0.34

Weighted average shares     used in calculating net     income per ordinary share

Basic

405,737,852

414,769,943

414,769,943

402,388,870

414,370,874

414,370,874

Diluted

423,089,714

450,480,301

450,480,301

419,086,110

449,410,610

449,410,610

 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

First half year

ended June 30

ended June 30

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Net income

748,077

731,108

106,498

1,570,256

1,017,666

148,241

Other comprehensive income     (loss), net of tax

Foreign currency translation     adjustment

156,015

40,899

5,958

67,722

(32,082)

(4,673)

Comprehensive income

904,092

772,007

112,456

1,637,978

985,584

143,568

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

(1,061)

2,271

331

(4,037)

(2,963)

(432)

Comprehensive income     attributable to Momo Inc.

905,153

769,736

112,125

1,642,015

988,547

144,000

 

 

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

June 30

June 30

2018

2019

2019

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

2,468,034

1,735,743

252,839

Term deposits

8,824,610

10,664,100

1,553,401

Short-term investment

-

90,000

13,110

Accounts receivable, net of allowance for doubtful accounts of RMB     nil and RMB9,309 as of December 31, 2018 and June 30, 2019,     respectively

719,606

275,171

40,083

Amounts due from a related party

-

271

39

Prepaid expenses and other current assets

620,979

627,007

91,333

Total current assets

12,633,229

13,392,292

1,950,805

Property and equipment, net

387,532

368,503

53,679

Intangible assets

1,036,986

956,954

139,396

Rental deposits

24,192

26,586

3,873

Long-term investments

447,465

476,836

69,459

Deferred tax assets

57,786

31,679

4,615

Other non-current assets

71,519

18,768

2,734

Right-of-use assets, net[1]

-

194,126

28,278

Goodwill

4,306,829

4,300,285

626,407

Total assets

18,965,538

19,766,029

2,879,246

Liabilities and equity

Current liabilities

Accounts payable

718,362

778,682

113,427

Deferred revenue

441,892

411,970

60,011

Accrued expenses and other current liabilities

846,710

672,261

97,925

Amount due to related parties

82,948

39,921

5,815

Income tax payable

137,090

130,103

18,952

Lease liabilities due within one year[1]

-

103,648

15,098

Deferred consideration in connection with business acquisitions

469,274

83,916

12,224

Total current liabilities

2,696,276

2,220,501

323,452

Deferred tax liabilities

259,247

239,238

34,849

Convertible senior notes

4,877,116

4,877,214

710,446

Share-based compensation liability

86,767

887,511

129,281

Lease liabilities1

-

85,582

12,466

Other non-current liabilities

23,273

29,795

4,340

Total liabilities

7,942,679

8,339,841

1,214,834

Shareholder's equity (i)

11,022,859

11,426,188

1,664,412

Total liabilities and shareholder's equity

18,965,538

19,766,029

2,879,246

(i): As of June 30, 2019, the number of ordinary shares issued and outstanding was 415,264,580.

[1] On January 1, 2019, the Company adopted ASU 2016-02, the new lease standard, using the modified retrospective basis and did not restate comparative periods.

 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

Three months

First half year

ended June 30

ended June 30

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Cash flows from operating activities:

Net income

748,077

731,108

106,498

1,570,256

1,017,666

148,241

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

Depreciation of property and equipment

35,110

48,236

7,026

66,582

96,636

14,077

Amortization of intangible assets

13,145

39,020

5,684

14,578

77,615

11,306

Share-based compensation

134,177

482,537

70,290

212,841

1,075,611

156,680

Share of income on equity method investments

(10,789)

(6,375)

(929)

(18,915)

(1,871)

(273)

Impairment loss on long-term investments

-

-

-

-

4,500

655

Loss (income) on disposal of property and equipment

-

(338)

(49)

2

(334)

(49)

Provision of allowance for doubtful accounts

(585)

9,309

1,356

(585)

9,309

1,356

Changes in operating assets and liabilities:

Accounts receivable

11,112

25,712

3,745

64,344

435,126

63,383

Prepaid expenses and other current assets

33,204

19,385

2,824

89,691

1,196

174

Amount due from related parties

27,452

(271)

(39)

20,028

(271)

(39)

Rental deposits

486

(1,078)

(157)

822

(2,395)

(349)

Deferred tax assets

20,606

570

83

28,571

26,107

3,803

Other non-current assets

(26,670)

(18,796)

(2,738)

(38,194)

12,643

1,842

Accounts payable

37,339

55,573

8,095

93,698

88,088

12,831

Income tax payable

(38,795)

64,570

9,406

(103,161)

(6,988)

(1,018)

Deferred revenue

(25,729)

(48,764)

(7,103)

(59,320)

(29,922)

(4,359)

Accrued expenses and other current liabilities

38,250

43,872

6,391

(130,853)

(141,623)

(20,630)

Amount due to related parties

451

(16,752)

(2,440)

419

(42,717)

(6,222)

Deferred tax liability

(3,286)

(9,755)

(1,421)

(3,644)

(25,297)

(3,685)

Other non-current liabilities

(1,160)

4,201

612

10,691

4,794

698

Net cash provided by operating activities

992,395

1,421,964

207,134

1,817,851

2,597,873

378,422

Cash flows from investing activities:

Purchase of property and equipment

(25,938)

(41,682)

(6,072)

(90,201)

(94,480)

(13,763)

Proceeds from disposal of property and equipment

1

505

75

10

510

75

Payment for long-term investments

(50,125)

(12,000)

(1,748)

(54,125)

(24,000)

(3,496)

Prepayment of long-term investments

-

(15,000)

(2,185)

(47,000)

(15,000)

(2,185)

Payment for business acquisition, net of cash acquired

(1,818,146)

(73,681)

(10,733)

(3,278,209)

(378,748)

(55,171)

Purchase of term deposits

(3,932,638)

(6,230,000)

(907,502)

(7,569,230)

(9,715,005)

(1,415,150)

Cash received on maturity of term deposits

4,839,433

4,860,025

707,942

7,222,393

7,865,030

1,145,671

Payment for short-term investments

-

(40,000)

(5,827)

-

(250,000)

(36,417)

Cash received from sales of short-term investment

-

60,000

8,740

10,500

160,000

23,307

Net cash used in investing activities

(987,413)

(1,491,833)

(217,310)

(3,805,862)

(2,451,693)

(357,129)

Cash flows from financing activities:

Proceeds from exercise of options

55

32

5

2,492

115

17

Deferred payment of purchase of property and equipment

(1,078)

-

-

(8,405)

(94)

(14)

Dividends payment

-

(877,346)

(127,800)

-

(877,346)

(127,800)

Proceeds from bank loan

1,913,190

-

-

1,913,190

-

-

Net cash provided by (used in) financing activities

1,912,167

(877,314)

(127,795)

1,907,277

(877,325)

(127,797)

Effect of exchange rate changes

23,222

4,584

665

8,286

(1,146)

(167)

Net increase (decrease)  in cash, cash equivalents, and     restricted cash

1,940,371

(942,599)

(137,306)

(72,448)

(732,291)

(106,671)

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

2,449,375

2,678,342

390,145

4,462,194

2,468,034

359,510

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

4,389,746

1,735,743

252,839

4,389,746

1,735,743

252,839

 

 

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

1.

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

Three months

Three months

Three months

ended June 30, 2018

ended June 30, 2019

ended June 30, 2019

 

 

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

(1,720,340)

5,682

7,246

-

(1,707,412)

(2,063,863)

18,227

5,447

-

(2,040,189)

(300,636)

2,656

793

-

(297,187)

Research and development

(160,097)

721

43,313

-

(116,063)

(251,658)

2,315

44,523

-

(204,820)

(36,658)

337

6,486

-

(29,835)

Sales and marketing

(348,722)

5,312

34,552

-

(308,858)

(570,609)

17,045

51,293

-

(502,271)

(83,119)

2,483

7,472

-

(73,164)

General and     administrative

(127,665)

-

49,066

-

(78,599)

(500,660)

-

381,274

-

(119,386)

(72,929)

-

55,539

-

(17,390)

Cost and operating expenses

(2,356,824)

11,715

134,177

-

(2,210,932)

(3,386,790)

37,587

482,537

-

(2,866,666)

(493,342)

5,476

70,290

-

(417,576)

Income from operations

895,782

11,715

134,177

-

1,041,674

927,741

37,587

482,537

-

1,447,865

135,141

5,476

70,290

-

210,907

Net income attributable to     Momo Inc.

750,244

11,715

134,177

(2,927)

893,209

731,777

37,587

482,537

(9,397)

1,242,504

106,595

5,476

70,290

(1,369)

180,992

 

 

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

1.

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

First half year

First half year

First half year

ended June 30, 2018

ended June 30, 2019

ended June 30, 2019

 

 

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$

Amortizationof intangible assets from business acquisitions

US$

Share-based compensation

US$

Tax Impacts

(ii)

US$

Non-GAAP

US$

Cost of revenues

(3,051,980)

5,682

10,283

-

(3,036,015)

(3,937,437)

36,248

9,633

-

(3,891,556)

(573,552)

5,280

1,403

-

(566,869)

Research and     development

(271,483)

721

59,672

-

(211,090)

(501,089)

4,604

84,253

-

(412,232)

(72,992)

671

12,273

-

(60,048)

Sales and marketing

(630,430)

5,312

55,460

-

(569,658)

(1,194,457)

33,898

90,745

-

(1,069,814)

(173,992)

4,938

13,218

-

(155,836)

General and     administrative

(237,134)

-

87,426

-

(149,708)

(1,103,256)

-

890,980

-

(212,276)

(160,707)

-

129,786

-

(30,921)

Cost and operating     expenses

(4,191,027)

11,715

212,841

-

(3,966,471)

(6,736,239)

74,750

1,075,611

-

(5,585,878)

(981,243)

10,889

156,680

-

(813,674)

Income from operations

1,832,859

11,715

212,841

-

2,057,415

1,312,165

74,750

1,075,611

-

2,462,526

191,139

10,889

156,680

-

358,708

Net income attributable to     Momo Inc.

1,575,399

11,715

212,841

(2,927)

1,797,028

1,021,094

74,750

1,075,611

(18,688)

2,152,767

148,740

10,889

156,680

(2,723)

313,586

(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 Segment Report

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

Three months

  ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

3,099,887

-

-

3,099,887

451,549

Value-added service

663,601

284,793

-

948,394

138,149

Mobile marketing

76,208

-

-

76,208

11,101

Mobile games

23,240

-

-

23,240

3,385

Other services

2,452

-

2,449

4,901

715

Total net revenues

3,865,388

284,793

2,449

4,152,630

604,899

Cost and expenses (iii):

Cost of revenues

(1,970,672)

(89,362)

(3,829)

(2,063,863)

(300,636)

Research and development

(181,866)

(69,792)

-

(251,658)

(36,658)

Sales and marketing

(356,578)

(212,628)

(1,403)

(570,609)

(83,119)

General and administrative

(142,384)

(344,434)

(13,842)

(500,660)

(72,929)

Total cost and expenses

(2,651,500)

(716,216)

(19,074)

(3,386,790)

(493,342)

Other operating income

140,535

-

21,366

161,901

23,584

Income (loss) from operations

1,354,423

(431,423)

4,741

927,741

135,141

Interest income

97,118

3,024

33

100,175

14,592

Interest expense

(19,315)

-

-

(19,315)

(2,814)

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

1,432,226

(428,399)

4,774

1,008,601

146,919

Income tax (expenses) benefits

(289,101)

5,233

-

(283,868)

(41,350)

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

1,143,125

(423,166)

4,774

724,733

105,569

Share of income on equity method     investments

6,375

-

-

6,375

929

Net income (loss)

1,149,500

(423,166)

4,774

731,108

106,498

 

 

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

Three months

ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

4,870

577

-

5,447

793

Research and development

27,587

16,936

-

44,523

6,486

Sales and marketing

47,381

3,912

-

51,293

7,472

General and administrative

54,235

324,479

2,560

381,274

55,539

Total cost and expenses

134,073

345,904

2,560

482,537

70,290

 

 

Momo Inc.

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

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

Three months

ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

1,354,423

(431,423)

4,741

927,741

135,141

Share-based compensation

134,073

345,904

2,560

482,537

70,290

Amortization of intangible assets from     business acquisitions

-

37,587

-

37,587

5,476

Non-GAAP operating income (loss)

1,488,496

(47,932)

7,301

1,447,865

210,907

Net income (loss)

1,149,500

(423,166)

4,774

731,108

106,498

Share-based compensation

134,073

345,904

2,560

482,537

70,290

Amortization of intangible assets from     business acquisitions

-

37,587

-

37,587

5,476

Tax impacts

-

(9,397)

-

(9,397)

(1,369)

Non-GAAP net income (loss)

1,283,573

(49,072)

7,334

1,241,835

180,895

 

 

Momo Inc.

Unaudited Segment Report

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

Three months

ended June 30, 2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[2]

Net revenues:

Live video service

2,620,924

-

-

2,620,924

396,083

Value-added service

321,614

30,969

-

352,583

53,284

Mobile marketing

141,984

-

-

141,984

21,457

Mobile games

34,782

-

-

34,782

5,256

Other services

453

-

1,805

2,258

341

Total net revenues

3,119,757

30,969

1,805

3,152,531

476,421

Cost and expenses (iv):

Cost of revenues

(1,541,843)

(18,731)

(159,766)

(1,720,340)

(259,984)

Research and development

(132,044)

(28,053)

-

(160,097)

(24,194)

Sales and marketing

(275,920)

(67,703)

(5,099)

(348,722)

(52,700)

General and administrative

(110,690)

(14,304)

(2,671)

(127,665)

(19,293)

Total cost and expenses

(2,060,497)

(128,791)

(167,536)

(2,356,824)

(356,171)

Other operating income

100,014

61

-

100,075

15,124

Income (loss) from operations

1,159,274

(97,761)

(165,731)

895,782

135,374

Interest income

52,466

64

17

52,547

7,941

Interest expense

(12,436)

-

-

(12,436)

(1,879)

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

1,199,304

(97,697)

(165,714)

935,893

141,436

Income tax (expenses) benefits

(201,533)

2,928

-

(198,605)

(30,014)

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

997,771

(94,769)

(165,714)

737,288

111,422

Share of income on equity method investments

10,789

-

-

10,789

1,631

Net income (loss)

1,008,560

(94,769)

(165,714)

748,077

113,053

[2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.6171 to US$1.00, the effective noon buying rate for June 29, 2018 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

 

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

Three months

ended June 30, 2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

5,300

1,946

-

7,246

1,095

Research and development

24,559

18,754

-

43,313

6,546

Sales and marketing

30,783

3,769

-

34,552

5,222

General and administrative

38,997

10,069

-

49,066

7,415

Total cost and expenses

99,639

34,538

-

134,177

20,278

 

 

Momo Inc.

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

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

Three months

ended June 30, 2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

1,159,274

(97,761)

(165,731)

895,782

135,374

Share-based compensation

99,639

34,538

-

134,177

20,278

Amortization of intangible assets from business acquisitions

-

11,715

-

11,715

1,770

Non-GAAP operating income (loss)

1,258,913

(51,508)

(165,731)

1,041,674

157,422

Net income (loss)

1,008,560

(94,769)

(165,714)

748,077

113,053

Share-based compensation

99,639

34,538

-

134,177

20,278

Amortization of intangible assets from business acquisitions

-

11,715

-

11,715

1,770

Tax impacts

-

(2,927)

-

(2,927)

(442)

Non-GAAP net income (loss)

1,108,199

(51,443)

(165,714)

891,042

134,659

 

 

Momo Inc.

Unaudited Segment Report

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

First half year

  ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

5,789,300

-

-

5,789,300

843,307

Value-added service

1,272,103

580,140

-

1,852,243

269,810

Mobile marketing

156,937

-

-

156,937

22,860

Mobile games

62,248

-

-

62,248

9,067

Other services

4,009

-

10,812

14,821

2,159

Total net revenues

7,284,597

580,140

10,812

7,875,549

1,147,203

Cost and expenses (v):

Cost of revenues

(3,740,710)

(188,218)

(8,509)

(3,937,437)

(573,552)

Research and development

(366,139)

(134,950)

-

(501,089)

(72,992)

Sales and marketing

(719,536)

(468,549)

(6,372)

(1,194,457)

(173,992)

General and administrative

(256,648)

(824,399)

(22,209)

(1,103,256)

(160,707)

Total cost and expenses

(5,083,033)

(1,616,116)

(37,090)

(6,736,239)

(981,243)

Other operating income

151,489

-

21,366

172,855

25,179

Income (loss) from operations

2,353,053

(1,035,976)

(4,912)

1,312,165

191,139

Interest income

187,976

5,915

62

193,953

28,252

Interest expense

(38,304)

-

-

(38,304)

(5,580)

Impairment loss on long-term     investments

(4,500)

-

-

(4,500)

(655)

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

2,498,225

(1,030,061)

(4,850)

1,463,314

213,156

Income tax (expenses) benefits

(456,704)

9,185

-

(447,519)

(65,188)

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

2,041,521

(1,020,876)

(4,850)

1,015,795

147,968

Share of income on equity method     investments

1,871

-

-

1,871

273

Net income (loss)

2,043,392

(1,020,876)

(4,850)

1,017,666

148,241

 

 

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

First half year

ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

8,476

1,157

-

9,633

1,403

Research and development

49,300

34,953

-

84,253

12,273

Sales and marketing

82,855

7,890

-

90,745

13,218

General and administrative

93,726

792,163

5,091

890,980

129,786

Total cost and expenses

234,357

836,163

5,091

1,075,611

156,680

 

 

Momo Inc.

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

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

First half year

ended June 30, 2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

2,353,053

(1,035,976)

(4,912)

1,312,165

191,139

Share-based compensation

234,357

836,163

5,091

1,075,611

156,680

Amortization of intangible assets     from business acquisitions

-

74,750

-

74,750

10,889

Non-GAAP operating income     (loss)

2,587,410

(125,063)

179

2,462,526

358,708

Net income (loss)

2,043,392

(1,020,876)

(4,850)

1,017,666

148,241

Share-based compensation

234,357

836,163

5,091

1,075,611

156,680

Amortization of intangible assets     from business acquisitions

-

74,750

-

74,750

10,889

Tax impacts

-

(18,688)

-

(18,688)

(2,723)

Non-GAAP net income (loss)

2,277,749

(128,651)

241

2,149,339

313,087

 

 

Momo Inc.

Unaudited Segment Report

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

First half year

ended June 30, 2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

4,981,038

-

-

4,981,038

752,752

Value-added service

556,618

30,969

-

587,587

88,798

Mobile marketing

260,842

-

-

260,842

39,419

Mobile games

77,010

-

-

77,010

11,638

Other services

2,506

-

7,924

10,430

1,576

Total net revenues

5,878,014

30,969

7,924

5,916,907

894,183

Cost and expenses (vi):

Cost of revenues

(2,869,214)

(18,731)

(164,035)

(3,051,980)

(461,226)

Research and development

(243,430)

(28,053)

-

(271,483)

(41,027)

Sales and marketing

(554,710)

(67,703)

(8,017)

(630,430)

(95,273)

General and administrative

(217,714)

(14,304)

(5,116)

(237,134)

(35,837)

Total cost and expenses

(3,885,068)

(128,791)

(177,168)

(4,191,027)

(633,363)

Other operating income

106,918

61

-

106,979

16,167

Income (loss) from operations

2,099,864

(97,761)

(169,244)

1,832,859

276,987

Interest income

100,361

64

27

100,452

15,181

Interest expense

(12,436)

-

-

(12,436)

(1,879)

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

2,187,789

(97,697)

(169,217)

1,920,875

290,289

Income tax (expenses) benefits

(372,462)

2,928

-

(369,534)

(55,845)

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

1,815,327

(94,769)

(169,217)

1,551,341

234,444

Share of income on equity method investments

18,915

-

-

18,915

2,859

Net income (loss)

1,834,242

(94,769)

(169,217)

1,570,256

237,303

 

 

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

First half year

ended June 30, 2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

8,337

1,946

-

10,283

1,554

Research and development

40,918

18,754

-

59,672

9,018

Sales and marketing

51,691

3,769

-

55,460

8,381

General and administrative

77,357

10,069

-

87,426

13,212

Total cost and expenses

178,303

34,538

-

212,841

32,165

 

 

Momo Inc.

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

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

First half year

ended June 30, 2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

2,099,864

(97,761)

(169,244)

1,832,859

276,987

Share-based compensation

178,303

34,538

-

212,841

32,165

Amortization of intangible assets from business acquisitions

-

11,715

-

11,715

1,770

Non-GAAP operating income (loss)

2,278,167

(51,508)

(169,244)

2,057,415

310,922

Net income (loss)

1,834,242

(94,769)

(169,217)

1,570,256

237,303

Share-based compensation

178,303

34,538

-

212,841

32,165

Amortization of intangible assets from business acquisitions

-

11,715

-

11,715

1,770

Tax impacts

-

(2,927)

-

(2,927)

(442)

Non-GAAP net income (loss)

2,012,545

(51,443)

(169,217)

1,791,885

270,796

 

 

Cision View original content:http://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-second-quarter-of-2019-300907406.html

SOURCE Momo Inc.


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