Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2022

Rhea-AI Summary

Hello Group Inc. (NASDAQ: MOMO) reported its Q4 2022 results, showing a 12.6% decline in net revenues to RMB3,212.7 million (US$465.8 million). However, net income surged to RMB398.0 million (US$57.7 million), compared to a net loss of RMB4,242.7 million in Q4 2021. Non-GAAP net income also rose to RMB487.9 million (US$70.7 million). Full-year revenues fell 12.8% to RMB12,704.2 million (US$1,841.9 million). The company expects Q1 2023 revenues to drop 15.8% to 12.6% year-over-year. A special cash dividend of US$0.72 per ADS will be paid on May 22, 2023. Key metrics showed a decrease in active users and paying users across platforms.

Positive

• Net income increased to RMB398.0 million (US$57.7 million) from a loss of RMB4,242.7 million in Q4 2021.
• Non-GAAP net income rose to RMB487.9 million (US$70.7 million) from RMB280.9 million in Q4 2021.
• Cash dividend of US$0.72 per ADS declared, totaling approximately US$137 million.

Negative

• Net revenues down by 12.6% year-over-year in Q4 2022.
• Monthly Active Users (MAU) for Momo decreased to 94.6 million from 114.1 million YOY.
• Total paying users on Momo dropped to 7.8 million from 8.9 million YOY.

BEIJING, March 16, 2023 /PRNewswire/ -- 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 fourth quarter and the full year ended December 31, 2022.   

Fourth Quarter of 2022 Highlights

• Net revenues decreased by 12.6% year over year to RMB3,212.7 million (US$465.8 million*) in the fourth quarter of 2022.
• Net income attributable to Hello Group Inc. was RMB398.0 million (US$57.7 million) in the fourth quarter of 2022, compared to a net loss of RMB4,242.7 million in the same period of 2021.
• Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB487.9 million (US$70.7 million) in the fourth quarter of 2022, from RMB280.9 million in the same period of 2021.
• Diluted net income per American Depositary Share ("ADS") was RMB2.01 (US$0.29) in the fourth quarter of 2022, compared to a diluted net loss per ADS of RMB21.50 in the same period of 2021.
• Non-GAAP diluted net income per ADS (note 1) was RMB2.46 (US$0.36) in the fourth quarter of 2022, compared to RMB1.38 in the same period of 2021.
• Monthly Active Users ("MAU") on Momo application were 94.6 million in December 2022, compared to 114.1 million in December 2021. MAU on Tantan application were 18.4 million in December 2022, compared to 27.0 million in December 2021.
• For the Momo app total paying users was 7.8 million for the fourth quarter of 2022, compared to 8.9 million for the same period last year. Tantan had 1.7 million paying users for the fourth quarter of 2022 compared to 2.5 million from the year ago period.

Full Year 2022 Highlights

• Net revenues decreased 12.8% year over year to RMB12,704.2 million (US$1,841.9 million) for the full year of 2022.
• Net income attributable to Hello Group Inc. was RMB1,484.3 million (US$215.2 million) for the full year of 2022, compared to a net loss of RMB2,913.7 million during the same period of 2021.
• Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,885.8 million (US$273.4 million) for the full year of 2022, compared to RMB2,037.1 million during the same period of 2021.
• Diluted net income per ADS was RMB7.31 (US$1.06) for the full year of 2022, compared to a diluted net loss per ADS of RMB14.40 during the same period of 2021.
• Non-GAAP diluted net income per ADS (note 1) was RMB9.20 (US$1.33) for the full year of 2022, compared to RMB9.56 during the same period of 2021.

* 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 RMB6.8972 to US$1.00, the effective noon buying rate for December 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.

"2022 was an extremely challenging year. I am pleased to see that our team withstood external pressures by timely adjusting strategic priorities and corresponding execution plans with flexible product and operational measures." Commented Yan Tang, Chairman and CEO of Hello Group. "Despite the challenges, we delivered solid financial results for shareholders, enabling us to conclude the year on a satisfactory note."

Fourth Quarter of 2022 Financial Results

Net revenues

Total net revenues were RMB3,212.7 million (US$465.8 million) in the fourth quarter of 2022, a decrease of 12.6% from RMB3,674.2 million in the fourth quarter of 2021.

Live video service revenues were RMB1,724.2 million (US$250.0 million) in the fourth quarter of 2022, a decrease of 19.8% from RMB2,148.8 million during the same period of 2021. The decrease was primarily attributable to pressure on Momo application caused by COVID related factors and regulatory changes, and to a lesser extent, the negative impact of COVID infection surge and reduction of channel investments on Tantan's MAU and paying conversion.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,449.5 million (US$210.2 million) in the fourth quarter of 2022, a decrease of 1.8% from RMB1,475.7 million during the same period of 2021. The year over year decrease was primarily attributable to the negative impact of COVID to the virtual gift business on the Momo application, and the decrease in Tantan's value-added service due to the surge in COVID infections as well as channel investment reduction, which put pressure on user traffic and paying conversion. The decrease was partially offset by the rapid revenue growth from the new standalone apps.

Mobile marketing revenues were RMB32.9 million (US$4.8 million) in the fourth quarter of 2022, an increase of 29.8% from RMB25.4 million during the same period of 2021. The increase in mobile marketing revenues was due to the increased demand from brand marketers.

Mobile games revenues were RMB5.3 million (US$0.8 million) in the fourth quarter of 2022, a decrease of 72.4% from RMB19.3 million in the fourth quarter of 2021. The decrease in mobile game revenues was mainly due to the Company's strategic decision to pivot away from game distribution business.

Net revenues from the Momo segment decreased from RMB3,235.6 million in the fourth quarter of 2021 to RMB2,865.8 million (US$415.5 million) in the fourth quarter of 2022, primarily due to the decrease in net revenues from live video service, partially offset by the growth of value-added service business. Net revenues from the Tantan segment decreased from RMB437.2 million in the fourth quarter of 2021 to RMB346.7 million (US$50.3 million) in the fourth quarter of 2022, due to the negative impact of COVID and the reduction of channel investments on Tantan's user growth and paying conversion.

Cost and expenses

Cost and expenses were RMB2,738.3 million (US$397.0 million) in the fourth quarter of 2022, a decrease of 64.6% from RMB7,729.4 million in the fourth quarter of 2021. The decrease was primarily attributable to: (a) an impairment loss on goodwill and intangible assets amounting to RMB4,397.0 million in the fourth quarter of 2021; (b) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan's channel marketing strategy; (c) a decrease in revenue sharing with broadcasters related to Momo's core live video service and Tantan's live video service, which was partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service; (d) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs since the beginning of the year and the decreased fair value of newly granted share options.

Non-GAAP cost and expenses (note 1) were RMB2,648.3 million (US$384.0 million) in the fourth quarter of 2022, a decrease of 17.4% from RMB3,205.8 million during the same period of 2021.

Other operating (loss) income, net

Other operating loss was RMB65.2 million (US$9.4 million) in the fourth quarter of 2022, compared to an income of RMB38.6 million during the fourth quarter of 2021. The other operating loss in the fourth quarter of 2022 mainly included a contingent loss of RMB92.9 million (US$13.5 million) related to an ongoing investigation of the alleged illegal activity on the source of the funding consumed on Momo's platform.

Income (loss) from operations

Income from operations was RMB409.2 million (US$59.3 million) in the fourth quarter of 2022, compared to a loss from operations of RMB4,016.6 million during the same period of 2021. Income from operations of the Momo segment was RMB435.8 million (US$63.2 million) in the fourth quarter of 2022, which decreased from RMB549.3 million in the fourth quarter of 2021. Loss from operations of the Tantan segment was RMB21.7 million (US$3.1 million) in the fourth quarter of 2022, compared to loss from operations of RMB162.5 million in the fourth quarter of 2021.

Non-GAAP income from operations (note 1) was RMB499.2 million (US$72.4 million) in the fourth quarter of 2022, compared to RMB507.0 million during the same period of 2021. Non-GAAP income from operations of the Momo segment was RMB519.2 million (US$75.3 million) in the fourth quarter of 2022, which decreased from RMB658.4 million in the fourth quarter of 2021. Non-GAAP loss from operations of the Tantan segment was RMB15.2 million (US$2.2 million) in the fourth quarter of 2022, compared to non-GAAP loss from operations of RMB145.0 million in the fourth quarter of 2021.  

Income tax expenses

Income tax expenses were RMB109.4 million (US$15.9 million) in the fourth quarter of 2022, compared to RMB296.5 million in the fourth quarter of 2021. The decrease was primarily due to the fact that in the fourth quarter of 2022, we accrued withholding income tax of RMB39.7 million (US$5.8 million) on undistributed earnings generated in the fourth quarter of 2022 by our wholly-foreign owned enterprise ("WFOE"), because we planned to remit WFOE's earnings to its offshore parent company in the foreseeable future to fund its demand for US dollars in business operations, payments of dividends and debts, potential investments, share repurchase plan, etc., and in the fourth quarter of 2021, we accrued withholding income tax of RMB207.4 million on undistributed earnings generated in the full year of 2021 by WFOE.

Net income (loss)

Net income was RMB397.0 million (US$57.6 million) in the fourth quarter of 2022, compared to a net loss of RMB4,244.0 million during the same period of 2021. Net income from the Momo segment was RMB397.1 million (US$57.6 million) in the fourth quarter of 2022, compared to RMB306.7 million in the same period of 2021. Net income from the Tantan segment was RMB4.7 million (US$0.7 million) in the fourth quarter of 2022, compared to a net loss of RMB147.3 million in the fourth quarter of 2021.

Non-GAAP net income (note 1) was RMB487.0 million (US$70.6 million) in the fourth quarter of 2022, compared to RMB279.6 million during the same period of 2021. Non-GAAP net income from the Momo segment was RMB480.5 million (US$69.7 million) in the fourth quarter of 2022, which increased from RMB415.8 million in the fourth quarter of 2021. Non-GAAP net income of the Tantan segment was RMB11.3 million (US$1.6 million) in the fourth quarter of 2022, compared to a non-GAAP net loss of RMB129.9 million in the fourth quarter of 2021.

Net income (loss) attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB398.0 million (US$57.7 million) in the fourth quarter of 2022, compared to a net loss of RMB4,242.7 million during the same period of 2021.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB487.9 million (US$70.7 million) in the fourth quarter of 2022, compared to RMB280.9 million during the same period of 2021.

Net income (loss) per ADS

Diluted net income per ADS was RMB2.01 (US$0.29) in the fourth quarter of 2022, compared to a diluted net loss per ADS of RMB21.50 in the fourth quarter of 2021.

Non-GAAP diluted net income per ADS (note 1) was RMB2.46 (US$0.36) in the fourth quarter of 2022, compared to RMB1.38 in the fourth quarter of 2021.

Cash and cash flow

As of December 31, 2022, 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 RMB13,398.8 million (US$1,942.7 million), compared to RMB15,707.0 million as of December 31, 2021. The decrease was due to a number of cash outflow items, including our cash dividend payment of RMB841.0 million (US$121.9 million) to shareholders; an aggregate payment of RMB2,137.0 million (US$309.8 million) for the repurchase of the company's convertible notes; an aggregate payment of RMB392.4 million (US$56.9 million) in relation to the share repurchase program; and RMB360.0 million (US$52.2 million) payment to Chinese tax authorities to repatriate cash from our WFOE in China to our offshore entity during 2022.

Net cash provided by operating activities in the fourth quarter of 2022 was RMB538.7 million (US$78.1 million), compared to RMB665.5 million in the fourth quarter of 2021.

Full Year 2022 Financial Results

Net revenues for the full year of 2022 were RMB12,704.2 million (US$1,841.9 million), a decrease of 12.8% from RMB14,575.7 million in the same period of 2021.

Net income attributable to Hello Group Inc. was RMB1,484.3 million (US$215.2 million) for the full year of 2022, compared to a net loss of RMB2,913.7 million during the same period of 2021.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,885.8 million (US$273.4 million) for the full year of 2022, compared to a net loss of RMB2,037.1 million during the same period of 2021.

Diluted net income per ADS was RMB7.31 (US$1.06) during the full year of 2022, compared to a diluted net loss per ADS of RMB14.40 in the same period of 2021.

Non-GAAP diluted net income per ADS (note 1) was RMB9.20 (US$1.33) during the full year of 2022, compared to RMB9.56 in the same period of 2021.

Net cash provided by operating activities was RMB1,226.9 million (US$177.9 million) during the full year of 2022, compared to RMB1,559.2 million in the same period of 2021.

Recent Development

Declaration of a special cash dividend

Hello Group's board of directors has declared a special cash dividend in the amount of US$0.72 per ADS, or US$0.36 per ordinary share. The cash dividend will be paid on May 22, 2023 to shareholders of record at the close of business on April 28, 2023. The ex-dividend date will be April 27, 2023. The aggregate amount of cash dividends to be paid is approximately US$137 million, which will be funded by surplus cash on the Company's balance sheet.

Appointment of New Director and Chief Operating Officer

The board of directors has appointed Ms. Sichuan Zhang as a director and Chief Operating Officer of the Company, effective March 16, 2023.

Ms. Sichuan Zhang previously served as our director from April 2012 to November 2017. Ms. Zhang founded PUPUPULA, a children's furniture and design company, in 2017, and served as its Chief Executive Officer until 2022. Ms. Zhang first joined the Company in July 2011 and was responsible for product design, then marketing strategies and executions. Prior to joining our company, from June 2009 to February 2011, she co-founded 4 Degrees Motion Design, an advertising design firm. She was an art director of Modern Media, a Chinese media company, from January 2009 to May 2009, a senior designer of Phoenix New Media Limited (NYSE: FENG) from January 2008 to January 2009, and a web designer of NetEase, Inc. from March 2006 to April 2007. Ms. Zhang received her bachelor's degree in South China Normal University in 2005. Ms. Zhang is the spouse of Mr. Yan Tang, our co-founder, chairman and Chief Executive Officer.

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 March 16, 2023, the Company has repurchased 12.0 million ADSs for US$56.7 million on the open market under this program, at an average purchase price of US$4.71 per ADS.

Business Outlook

For the first quarter of 2023, the Company expects total net revenues to be between RMB2.65 billion to RMB2.75 billion, representing a decrease of 15.8% to 12.6% 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, impairment loss on goodwill and intangible assets, 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 (loss) attributable to Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation, impairment loss on goodwill and intangible assets, 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, impairment loss on goodwill and intangible assets, 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 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 Thursday, March 16, 2023, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 16, 2023).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10029147-tf6dtf.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 March 23, 2023. The dial-in details for the replay are as follows:

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

Hong Kong:      800-930-639

Passcode:        10029147

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
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: eric.yuan@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 first quarter of 2023, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the fourth quarter of 2022 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first 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.          

 

 

 

Hello Group Inc.
Unaudited Condensed Consolidated Statement of Operations
(All amounts in thousands, except share and per share data)
	Three months						Year
	Ended December 31						Ended December 31
	2021		2022		2022		2021		2022		2022
	RMB		RMB		US$		RMB		RMB		US$
Net revenues:
Live video service	2,148,785		1,724,228		249,990		8,378,945		6,510,460		943,928
Value-added service	1,475,733		1,449,537		210,164		5,971,792		6,007,018		870,936
Mobile marketing	25,369		32,927		4,774		159,010		124,956		18,117
Mobile games	19,294		5,316		771		47,712		55,732		8,080
Other services	5,048		650		93		18,260		6,006		871
Total net revenues	3,674,229		3,212,658		465,792		14,575,719		12,704,172		1,841,932
Cost and expenses:
Cost of revenues	(2,191,520)		(1,916,050)		(277,801)		(8,383,431)		(7,421,419)		(1,076,005)
Research and development	(316,024)		(272,657)		(39,532)		(1,131,781)		(1,006,219)		(145,888)
Sales and marketing	(659,604)		(407,075)		(59,020)		(2,604,309)		(2,073,617)		(300,646)
General and administrative	(165,257)		(142,492)		(20,659)		(624,700)		(596,006)		(86,413)
Impairment loss on goodwill and   intangible assets	(4,397,012)		-		-		(4,397,012)		-		-
Total cost and expenses	(7,729,417)		(2,738,274)		(397,012)		(17,141,233)		(11,097,261)		(1,608,952)
Other operating income (loss), net	38,558		(65,158)		(9,447)		175,947		20,632		2,991
(Loss) income from operations	(4,016,630)		409,226		59,333		(2,389,567)		1,627,543		235,971
Interest income	99,573		88,118		12,776		384,279		368,879		53,482
Interest expense	(18,444)		(10,955)		(1,588)		(73,776)		(83,530)		(12,111)
Other gain or loss, net	2,000		-		-		(16,000)		118,325		17,156
(Loss) income before income     tax and share of income on     equity method investments	(3,933,501)		486,389		70,521		(2,095,064)		2,031,217		294,498
Income tax expenses	(296,491)		(109,421)		(15,865)		(822,556)		(562,281)		(81,523)
(Loss) income before share of     income on equity method     investments	(4,229,992)		376,968		54,656		(2,917,620)		1,468,936		212,975
Share of (loss) income on equity     method investments	(14,045)		20,040		2,906		(8,084)		11,073		1,605
Net (loss) income	(4,244,037)		397,008		57,562		(2,925,704)		1,480,009		214,580
Less: net loss attributable to non-     controlling interest	(1,319)		(986)		(143)		(11,996)		(4,274)		(620)
Net (loss) income attributable to     the shareholders of Hello     Group Inc.	(4,242,718)		397,994		57,705		(2,913,708)		1,484,283		215,200
Net (loss) income per share     attributable to ordinary     shareholders
Basic	(10.75)		1.05		0.15		(7.20)		3.80		0.55
Diluted	(10.75)		1.01		0.15		(7.20)		3.65		0.53
Weighted average shares used in     calculating net (loss) income per     ordinary share
Basic	394,694,993		377,841,986		377,841,986		404,701,910		390,176,367		390,176,367
Diluted	394,694,993		406,152,757		406,152,757		404,701,910		423,810,279		423,810,279

 

 

 

Hello Group Inc.
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in thousands, except share and per share data)
	Three months									Year
	Ended December 31									Ended December 31
	2021		2022			2022				2021		2022				2022
	RMB		RMB			US$				RMB		RMB				US$
Net (loss) income	(4,244,037)		397,008			57,562				(2,925,704)		1,480,009				214,580
Other comprehensive (loss)     income, net of tax:
Foreign currency translation    adjustment	(7,331)		54,041			7,835				(39,161)		(274,791)				(39,841)
Comprehensive (loss) income	(4,251,368)		451,049			65,397				(2,964,865)		1,205,218				174,739
Less: comprehensive (loss)     income attributed to the non-     controlling interest	(3,280)		(7,154)			(1,037)				(16,603)		10,556				1,530
Comprehensive (loss) income     attributable to Hello Group     Inc.	(4,248,088)		458,203			66,434				(2,948,262)		1,194,662				173,209

 

 

 

Hello Group Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except share and per share data)
	December 31		December 31		December 31
	2021		2022		2022
	RMB		RMB		US$
Assets
Current assets
Cash and cash equivalents	5,570,563		5,018,129		727,560
Short-term deposits	2,860,000		5,300,000		768,428
Restricted cash	-		97,706		14,166
Short-term investments	-		300,240		43,531
Accounts receivable, net of allowance for doubtful accounts of RMB15,127 and    RMB5,870 as of December 31, 2021 and 2022, respectively	205,225		188,711		27,361
Amounts due from related parties	-		55		8
Prepaid expenses and other current assets	775,072		819,706		118,846
Total current assets	9,410,860		11,724,547		1,699,900
Long-term deposits	7,200,000		2,600,000		376,965
Long-term restricted cash	76,471		82,766		12,000
Right-of-use assets, net	257,934		115,520		16,749
Property and equipment, net	180,664		172,984		25,080
Intangible assets, net	27,320		22,203		3,219
Rental deposits	19,204		20,737		3,007
Long-term investments	820,006		893,988		129,616
Other non-current assets	83,930		162,499		23,560
Deferred tax assets	34,849		34,343		4,979
Total assets	18,111,238		15,829,587		2,295,075
Liabilities and equity
Current liabilities
Accounts payable	726,207		617,022		89,460
Deferred revenue	539,967		484,775		70,286
Accrued expenses and other current liabilities	911,050		797,504		115,627
Amounts due to related parties	5,016		9,178		1,331
Lease liabilities due within one year	162,950		88,352		12,810
Income tax payable	125,773		68,765		9,970
Deferred consideration in connection with business acquisitions	44,802		26,483		3,840
Convertible Senior Notes-current	-		2,646,168		383,658
Total current liabilities	2,515,765		4,738,247		686,982
Deferred tax liabilities	213,384		22,011		3,191
Convertible senior notes	4,565,292		-		-
Lease liabilities	103,105		33,281		4,825
Other non-current liabilities	128,095		105,410		15,283
Total liabilities	7,525,641		4,898,949		710,281
Shareholder's equity (i)	10,585,597		10,930,638		1,584,794
Total liabilities and shareholder's equity	18,111,238		15,829,587		2,295,075

(i): As of December 31, 2022, the number of ordinary shares outstanding was 376,971,336.

 

 

 

Hello Group Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in thousands, except share and per share data)
	Three months						Year
	Ended December 31						Ended December 31
	2021		2022		2022		2021		2022		2022
	RMB		RMB		US$		RMB		RMB		US$
Cash flows from operating activities:
Net (loss) income	(4,244,037)		397,008		57,562		(2,925,704)		1,480,009		214,580
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	34,226		23,908		3,466		155,537		107,015		15,516
Amortization of intangible assets	1,279		1,279		185		109,062		5,116		742
Share-based compensation	126,576		89,944		13,040		475,771		401,484		58,209
Share of loss (income) on equity method     investments	14,045		(20,040)		(2,906)		8,084		(11,073)		(1,605)
Impairment loss on goodwill and intangible assets	4,397,012		-		-		4,397,012		-		-
Gain on repurchase of convertible senior notes	-		-		-		-		(129,575)		(18,787)
Gain or loss on long-term investments	(2,000)		-		-		16,000		11,250		1,631
Gain on disposal of subsidiaries	-		-		-		(15,526)		-		-
Cash received on distributions from equity method     investments	-		-		-		-		1,708		248
Gain or loss on disposal of property and equipment	(36)		4		1		1,236		(779)		(113)
Provision of losses on receivable and other assets	(505)		(75)		(11)		(263)		(528)		(77)
Changes in operating assets and liabilities:
Accounts receivable	13,984		4,643		673		(10,374)		20,338		2,949
Prepaid expenses and other current assets	52,504		(36,784)		(5,333)		(151,162)		(52,928)		(7,674)
Amounts due from related parties	-		(55)		(8)		-		(55)		(8)
Rental deposits	1,171		-		-		(343)		1,399		203
Deferred tax assets	(338)		1,493		216		(2,354)		507		74
Other non-current assets	42,125		(15,907)		(2,306)		34,075		60,913		8,832
Accounts payable	11,053		(8,992)		(1,304)		30,475		(115,384)		(16,729)
Income tax payable	(39,285)		(6,081)		(882)		(110,716)		(57,004)		(8,265)
Deferred revenue	9,652		17,504		2,538		35,106		(56,387)		(8,175)
Accrued expenses and other current liabilities	99,497		121,638		17,636		60,668		(182,708)		(26,490)
Amount due to related parties	(9,751)		(265)		(38)		(14,447)		4,162		603
Deferred tax liabilities	207,114		(15,367)		(2,228)		180,173		(187,119)		(27,130)
Share-based compensation liability	-		-		-		(678,153)		-		-
Other non-current liabilities	(48,777)		(15,159)		(2,198)		(34,959)		(73,470)		(10,652)
Net cash provided by operating activities	665,509		538,696		78,103		1,559,198		1,226,891		177,882
Cash flows from investing activities:
Purchase of property and equipment	(19,201)		(10,053)		(1,458)		(95,323)		(80,445)		(11,663)
Payment for long-term investments	(115,052)		(15,000)		(2,175)		(415,052)		(70,343)		(10,199)
Purchase of short-term deposits	(400,000)		-		-		(4,976,688)		(1,700,000)		(246,477)
Cash received on maturity of short-term deposits	3,550,000		1,700,000		246,477		9,667,570		5,410,000		784,376
Payment for short term investments	-		(300,000)		(43,496)		-		(300,000)		(43,496)
Cash received on investment income distribution	-		-		-		5,610		3,523		511
Cash of disposed subsidiaries	-		-		-		(8,750)		-		-
Cash received from sales of long-term investment	20,000		-		-		20,000		-		-
Purchase of long-term deposits	(1,600,000)		(200,000)		(28,997)		(1,850,000)		(2,750,000)		(398,713)
Cash received on maturity of long-term deposits	200,000		-		-		200,000		1,200,000		173,984
Other investing activities	569		7		1		2,975		3,110		451
Net cash provided by investing activities	1,636,316		1,174,954		170,352		2,550,342		1,715,845		248,774
Cash flows from financing activities:
Deferred payment for business acquisition	(50)		-		-		(12,957)		(21,421)		(3,106)
Proceeds from exercise of share options	5		112		16		776		163		24
Payment in relation to the share repurchase program	-		(104,684)		(15,178)		(862,865)		(392,374)		(56,889)
Repurchase of subsidiary's share options	(5,070)		(1,076)		(156)		(59,120)		(40,943)		(5,936)
Dividends payment	-		-		-		(852,743)		(840,997)		(121,933)
Payment for redemption of convertible bonds	-		-		-		-		(2,136,987)		(309,834)
Net cash used in financing activities	(5,115)		(105,648)		(15,318)		(1,786,909)		(3,432,559)		(497,674)
Effect of exchange rate changes	(12,972)		(30,706)		(4,451)		(41,669)		41,390		6,001
Net increase (decrease) in cash and cash     equivalents	2,283,738		1,577,296		228,686		2,280,962		(448,433)		(65,017)
Cash, cash equivalents and restricted cash at the     beginning of period	3,363,296		3,621,305		525,040		3,366,072		5,647,034		818,743
Cash, cash equivalents and restricted cash at the end of     period	5,647,034		5,198,601		753,726		5,647,034		5,198,601		753,726

 

 

 

		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 December 31, 2021					Ended December 31, 2022						Ended December 31, 2022
			GAAP RMB	Impairment loss on goodwill and intangible assets  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			(2,191,520)	-	3,393	(2,188,127)		(1,916,050)	1,707	(1,914,343)				(277,801)	247	(277,554)
Research and     development			(316,024)	-	36,303	(279,721)		(272,657)	22,145	(250,512)				(39,532)	3,211	(36,321)
Sales and marketing			(659,604)	-	11,024	(648,580)		(407,075)	8,480	(398,595)				(59,020)	1,229	(57,791)
General and     administrative			(165,257)	-	75,856	(89,401)		(142,492)	57,612	(84,880)				(20,659)	8,353	(12,306)
Impairment loss on     goodwill and     intangible assets			(4,397,012)	4,397,012	-	-		-	-	-				-	-	-
Cost and operating     expenses			(7,729,417)	4,397,012	126,576	(3,205,829)		(2,738,274)	89,944	(2,648,330)				(397,012)	13,040	(383,972)
(Loss) income from     operations			(4,016,630)	4,397,012	126,576	506,958		409,226	89,944	499,170				59,333	13,040	72,373
Net (loss) income attributable to Hello     Group Inc.			(4,242,718)	4,397,012	126,576	280,870		397,994	89,944	487,938				57,705	13,040	70,745

 

 

 

		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.
			Year								Year					Year
			Ended December 31, 2021								Ended December 31, 2022					Ended December 31, 2022
			GAAP RMB	Impairment loss on goodwill and intangible assets  RMB	Amortization of intangible assets from business acquisitions RMB	Share- based compensation RMB	Tax impacts (ii) 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			(8,383,431)	-	51,853	17,941	-		(8,313,637)		(7,421,419)		14,195	(7,407,224)		(1,076,005)	2,058	(1,073,947)
Research and     development			(1,131,781)	-	3,660	139,571	-		(988,550)		(1,006,219)		88,797	(917,422)		(145,888)	12,874	(133,014)
Sales and     marketing			(2,604,309)	-	48,491	70,821	-		(2,484,997)		(2,073,617)		38,432	(2,035,185)		(300,646)	5,572	(295,074)
General and     administrative			(624,700)	-	-	247,438	-		(377,262)		(596,006)		260,060	(335,946)		(86,413)	37,705	(48,708)
Impairment loss on     goodwill and     intangible assets			(4,397,012)	4,397,012	-	-	-		-		-		-	-		-	-	-
Cost and     operating     expenses			(17,141,233)	4,397,012	104,004	475,771	-		(12,164,446)		(11,097,261)		401,484	(10,695,777)		(1,608,952)	58,209	(1,550,743)
(Loss) income from     operations			(2,389,567)	4,397,012	104,004	475,771	-		2,587,220		1,627,543		401,484	2,029,027		235,971	58,209	294,180
Net (loss) income attributable to    Hello Group Inc.			(2,913,708)	4,397,012	104,004	475,771	(26,002)		2,037,077		1,484,283		401,484	1,885,767		215,200	58,209	273,409

(ii)  Includes tax impacts related to the amortization of intangible assets from business acquisition.

 

 

 

Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
	Three months
	Ended December 31, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Net revenues:
Live video service	1,561,332		162,896		-		1,724,228		249,990
Value-added service	1,265,693		183,844		-		1,449,537		210,164
Mobile marketing	32,927		-		-		32,927		4,774
Mobile games	5,316		-		-		5,316		771
Other services	483		-		167		650		93
Total net revenues	2,865,751		346,740		167		3,212,658		465,792
Cost and expenses (iii):
Cost of revenues	(1,722,675)		(192,748)		(627)		(1,916,050)		(277,801)
Research and development	(200,740)		(71,917)		-		(272,657)		(39,532)
Sales and marketing	(307,166)		(98,209)		(1,700)		(407,075)		(59,020)
General and administrative	(131,844)		(7,899)		(2,749)		(142,492)		(20,659)
Total cost and expenses	(2,362,425)		(370,773)		(5,076)		(2,738,274)		(397,012)
Other operating (loss) income, net	(67,499)		2,339		2		(65,158)		(9,447)
Income (loss) from operations	435,827		(21,694)		(4,907)		409,226		59,333
Interest income	87,799		253		66		88,118		12,776
Interest expense	(10,955)		-		-		(10,955)		(1,588)
Income (loss) before income tax and     share of income on equity method     investments	512,671		(21,441)		(4,841)		486,389		70,521
Income tax (expenses) benefits	(135,602)		26,181		-		(109,421)		(15,865)
Income (loss) before share of income     on equity method investments	377,069		4,740		(4,841)		376,968		54,656
Share of income on equity method     investments	20,040		-		-		20,040		2,906
Net income (loss)	397,109		4,740		(4,841)		397,008		57,562
(iii)  Share-based compensation was allocated in cost of revenues and operating expenses as follows:

 

	Three months
	Ended December 31, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues	1,689		18		-		1,707		247
Research and development	15,907		6,238		-		22,145		3,211
Sales and marketing	8,473		7		-		8,480		1,229
General and administrative	57,350		262		-		57,612		8,353
Total cost and expenses	83,419		6,525		-		89,944		13,040

 

 

 

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 December 31, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Income (loss) from operations	435,827		(21,694)		(4,907)		409,226		59,333
Share-based compensation	83,419		6,525		-		89,944		13,040
Non-GAAP income (loss) from operations	519,246		(15,169)		(4,907)		499,170		72,373
Net income (loss)	397,109		4,740		(4,841)		397,008		57,562
Share-based compensation	83,419		6,525		-		89,944		13,040
Non-GAAP net income (loss)	480,528		11,265		(4,841)		486,952		70,602

 

 

 

Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
	Three months
	Ended December 31, 2021
	Momo		Tantan		QOOL		Unallocated[1]		Total		Total
	RMB		RMB		RMB		RMB		RMB		US$[2]
Net revenues:							-
Live video service	1,947,958		200,827		-		-		2,148,785		337,191
Value-added service	1,239,351		236,382		-		-		1,475,733		231,575
Mobile marketing	25,369		-		-		-		25,369		3,981
Mobile games	19,294		-		-		-		19,294		3,028
Other services	3,667		-		1,381		-		5,048		792
Total net revenues	3,235,639		437,209		1,381		-		3,674,229		576,567
Cost and expenses (iv):
Cost of revenues	(1,962,718)		(228,290)		(512)		-		(2,191,520)		(343,897)
Research and development	(233,512)		(82,512)		-		-		(316,024)		(49,591)
Sales and marketing	(377,672)		(281,534)		(398)		-		(659,604)		(103,506)
General and administrative	(147,957)		(10,362)		(6,938)		-		(165,257)		(25,932)
Impairment loss on goodwill and intangible    assets	-		-		-		(4,397,012)		(4,397,012)		(689,987)
Total cost and expenses	(2,721,859)		(602,698)		(7,848)		(4,397,012)		(7,729,417)		(1,212,913)
Other operating income	35,532		3,023		3		-		38,558		6,051
Income (loss) from operations	549,312		(162,466)		(6,464)		(4,397,012)		(4,016,630)		(630,295)
Interest income	99,399		139		35		-		99,573		15,625
Interest expense	(18,444)		-		-		-		(18,444)		(2,894)
Other gain or loss, net	2,000		-		-		-		2,000		314
Income (loss) before income tax and share     of income on equity method investments	632,267		(162,327)		(6,429)		(4,397,012)		(3,933,501)		(617,250)
Income tax (expenses) benefits	(311,479)		14,988		-		-		(296,491)		(46,526)
Income (loss) before share of income on     equity method investments	320,788		(147,339)		(6,429)		(4,397,012)		(4,229,992)		(663,776)
Share of loss on equity method investments	(14,045)		-		-		-		(14,045)		(2,204)
Net income (loss)	306,743		(147,339)		(6,429)		(4,397,012)		(4,244,037)		(665,980)
(iv)  Share-based compensation was allocated in cost of revenues and operating expenses as follows:

 

	Three months
	Ended December 31, 2021
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues	2,729		664		-		3,393		532
Research and development	19,569		16,734		-		36,303		5,697
Sales and marketing	10,997		27		-		11,024		1,730
General and administrative	75,808		48		-		75,856		11,903
Total cost and expenses	109,103		17,473		-		126,576		19,862

[1] The impairment loss on goodwill and intangible assets is presented as an unallocated item in the segment information because our management does not consider this as part of the segment operating performance measure.

[2] All translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00, the effective noon buying rate for December 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

 

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 December 31, 2021
	Momo		Tantan		QOOL		Unallocated		Total		Total
	RMB		RMB		RMB		RMB		RMB		US$
Income (loss) from operations	549,312		(162,466)		(6,464)		(4,397,012)		(4,016,630)		(630,295)
Share-based compensation	109,103		17,473		-		-		126,576		19,862
Impairment loss on goodwill and     intangible assets	-		-		-		4,397,012		4,397,012		689,987
Non-GAAP income (loss) from operations	658,415		(144,993)		(6,464)		-		506,958		79,554
Net income (loss)	306,743		(147,339)		(6,429)		(4,397,012)		(4,244,037)		(665,980)
Share-based compensation	109,103		17,473		-		-		126,576		19,862
Impairment loss on goodwill and     intangible assets	-		-		-		4,397,012		4,397,012		689,987
Non-GAAP net income (loss)	415,846		(129,866)		(6,429)		-		279,551		43,869

 

 

 

Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
	Year
	Ended December 31, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Net revenues:
Live video service	5,966,323		544,137		-		6,510,460		943,928
Value-added service	5,183,302		823,716		-		6,007,018		870,936
Mobile marketing	124,956		-		-		124,956		18,117
Mobile games	55,732		-		-		55,732		8,080
Other services	4,781		-		1,225		6,006		871
Total net revenues	11,335,094		1,367,853		1,225		12,704,172		1,841,932
Cost and expenses (v):
Cost of revenues	(6,704,020)		(714,936)		(2,463)		(7,421,419)		(1,076,005)
Research and development	(737,380)		(268,839)		-		(1,006,219)		(145,888)
Sales and marketing	(1,346,692)		(721,889)		(5,036)		(2,073,617)		(300,646)
General and administrative	(547,798)		(33,234)		(14,974)		(596,006)		(86,413)
Total cost and expenses	(9,335,890)		(1,738,898)		(22,473)		(11,097,261)		(1,608,952)
Other operating income	8,753		11,830		49		20,632		2,991
Income (loss) from operations	2,007,957		(359,215)		(21,199)		1,627,543		235,971
Interest income	368,051		544		284		368,879		53,482
Interest expense	(83,530)		-		-		(83,530)		(12,111)
Other gain or loss, net	118,325		-		-		118,325		17,156
Income (loss) before income tax and     share of income on equity method     investments	2,410,803		(358,671)		(20,915)		2,031,217		294,498
Income tax (expenses) benefits	(586,663)		24,382		-		(562,281)		(81,523)
Income (loss) before share of income     on equity method investments	1,824,140		(334,289)		(20,915)		1,468,936		212,975
Share of income on equity method     investments	11,073		-		-		11,073		1,605
Net income (loss)	1,835,213		(334,289)		(20,915)		1,480,009		214,580

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

 

	Year
	Ended December 31, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues	7,166		7,029		-		14,195		2,058
Research and development	67,659		21,138		-		88,797		12,874
Sales and marketing	38,202		230		-		38,432		5,572
General and administrative	259,669		391		-		260,060		37,705
Total cost and expenses	372,696		28,788		-		401,484		58,209

 

 

Hello Group Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data)
	Year
	ended December 31, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Operating income (loss)	2,007,957		(359,215)		(21,199)		1,627,543		235,971
Share-based compensation	372,696		28,788		-		401,484		58,209
Non-GAAP operating income (loss)	2,380,653		(330,427)		(21,199)		2,029,027		294,180
Net income (loss)	1,835,213		(334,289)		(20,915)		1,480,009		214,580
Share-based compensation	372,696		28,788		-		401,484		58,209
Non-GAAP net income (loss)	2,207,909		(305,501)		(20,915)		1,881,493		272,789

 

 

 

Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
	Year
	Ended December 31, 2021
	Momo		Tantan		QOOL		Unallocated		Total		Total
	RMB		RMB		RMB		RMB		RMB		US$
Net revenues:
Live video service	7,475,809		903,136		-		-		8,378,945		1,314,839
Value-added service	4,845,744		1,126,048		-		-		5,971,792		937,104
Mobile marketing	159,010		-		-		-		159,010		24,952
Mobile games	47,712		-		-		-		47,712		7,487
Other services	12,930		-		5,330		-		18,260		2,866
Total net revenues	12,541,205		2,029,184		5,330		-		14,575,719		2,287,248
Cost and expenses (vi):
Cost of revenues	(7,301,048)		(1,044,852)		(37,531)		-		(8,383,431)		(1,315,543)
Research and development	(828,688)		(303,093)		-		-		(1,131,781)		(177,601)
Sales and marketing	(1,420,130)		(1,180,146)		(4,033)		-		(2,604,309)		(408,673)
General and administrative	(619,922)		18,401		(23,179)		-		(624,700)		(98,029)
Impairment loss on goodwill and intangible assets	-		-		-		(4,397,012)		(4,397,012)		(689,987)
Total cost and expenses	(10,169,788)		(2,509,690)		(64,743)		(4,397,012)		(17,141,233)		(2,689,833)
Other operating income	138,884		37,029		34		-		175,947		27,610
Income (loss) from operations	2,510,301		(443,477)		(59,379)		(4,397,012)		(2,389,567)		(374,975)
Interest income	383,028		1,091		160		-		384,279		60,302
Interest expense	(73,776)		-		-		-		(73,776)		(11,577)
Other gain or loss, net	(16,000)		-		-		-		(16,000)		(2,511)
Income (loss) before income tax     and share of income on equity     method investments	2,803,553		(442,386)		(59,219)		(4,397,012)		(2,095,064)		(328,761)
Income tax (expenses) benefits	(844,987)		22,431		-		-		(822,556)		(129,077)
Income (loss) before share of     income on equity method     investments	1,958,566		(419,955)		(59,219)		(4,397,012)		(2,917,620)		(457,838)
Share of loss on equity method     investments	(8,084)		-		-		-		(8,084)		(1,269)
Net income (loss)	1,950,482		(419,955)		(59,219)		(4,397,012)		(2,925,704)		(459,107)

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

 

	Year
	Ended December 31, 2021
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues	10,541		7,400		-		17,941		2,815
Research and development	97,828		41,743		-		139,571		21,902
Sales and marketing	48,154		22,667		-		70,821		11,113
General and administrative	314,216		(66,778)		-		247,438		38,828
Total cost and expenses	470,739		5,032		-		475,771		74,658

 

 

Hello Group Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data)
	Year
	Ended December 31, 2021
	Momo		Tantan		QOOL		Unallocated		Total		Total
	RMB		RMB		RMB		RMB		RMB		US$
Income (loss) from operations	2,510,301		(443,477)		(59,379)		(4,397,012)		(2,389,567)		(374,975)
Share-based compensation	470,739		5,032		-		-		475,771		74,658
Impairment loss on goodwill and     intangible assets	-		-		-		4,397,012		4,397,012		689,987
Amortization of intangible assets     from business acquisitions	-		104,004		-		-		104,004		16,320
Non-GAAP income (loss) from operations	2,981,040		(334,441)		(59,379)		-		2,587,220		405,990
Net income (loss)	1,950,482		(419,955)		(59,219)		(4,397,012)		(2,925,704)		(459,107)
Share-based compensation	470,739		5,032		-		-		475,771		74,658
Impairment loss on goodwill and     intangible assets	-		-		-		4,397,012		4,397,012		689,987
Amortization of intangible assets     from business acquisitions	-		104,004		-		-		104,004		16,320
Tax impacts	-		(26,002)		-		-		(26,002)		(4,080)
Non-GAAP net income (loss)	2,421,221		(336,921)		(59,219)		-		2,025,081		317,778

 

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SOURCE Hello Group Inc.

FAQ

What were Hello Group's Q4 2022 financial results for MOMO and FENG?

Hello Group reported Q4 2022 net revenues of RMB3,212.7 million, a 12.6% decrease, but net income increased to RMB398.0 million.

How did Hello Group perform in 2022 overall?

For the full year 2022, Hello Group's net revenues decreased by 12.8% to RMB12,704.2 million, with a net income of RMB1,484.3 million.

What is the forecast for Hello Group's Q1 2023 revenues?

Hello Group expects total net revenues for Q1 2023 to range between RMB2.65 billion to RMB2.75 billion, representing a decline of 15.8% to 12.6% year-over-year.

When will the special cash dividend for Hello Group be paid?

The special cash dividend of US$0.72 per ADS will be paid on May 22, 2023, with the ex-dividend date on April 27, 2023.