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

Rhea-AI Summary

Hello Group Inc. (NASDAQ: MOMO) reported a 5.9% decrease in net revenues to RMB3,042.8 million (US$417.1 million) in the third quarter of 2023. Net income attributable to Hello Group Inc. increased to RMB546.4 million (US$74.9 million), with non-GAAP net income at RMB605.9 million (US$83.0 million). Monthly Active Users on Tantan application decreased to 15.7 million in September 2023. The company's net revenues for the first nine months of 2023 decreased by 5.2% year over year to RMB8,999.4 million (US$1,233.5 million).

Positive

• Net income increased to RMB546.4 million (US$74.9 million) in the third quarter of 2023
• Non-GAAP net income increased to RMB605.9 million (US$83.0 million) in the third quarter of 2023
• Net cash provided by operating activities in the third quarter of 2023 was RMB582.5 million (US$79.8 million)

Negative

• Net revenues decreased by 5.9% year over year in the third quarter of 2023
• Monthly Active Users on Tantan application decreased to 15.7 million in September 2023

BEIJING, Dec. 8, 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 third quarter of 2023.   

Third Quarter of 2023 Highlights

• Net revenues decreased by 5.9% year over year to RMB3,042.8 million (US$417.1 million*) in the third quarter of 2023.
• Net income attributable to Hello Group Inc. increased to RMB546.4 million (US$74.9 million) in the third quarter of 2023, from RMB450.8 million in the same period of 2022.
• Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB605.9 million (US$83.0 million) in the third quarter of 2023, from RMB535.8 million in the same period of 2022.
• Diluted net income per American Depositary Share ("ADS") was RMB2.75 (US$0.38) in the third quarter of 2023, compared to RMB2.20 in the same period of 2022.
• Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.42) in the third quarter of 2023, compared to RMB2.60 in the same period of 2022.
• Monthly Active Users ("MAU") on Tantan application were 15.7 million in September 2023, compared to 20.9 million in September 2022.
• For the Momo app total paying users was 7.8 million for the third quarter of 2023, compared to 8.4 million for the same period last year. Tantan had 1.4 million paying users for the third quarter of 2023 compared to 2.0 million from the year ago period.

First Nine Months of 2023 Highlights

• Net revenues decreased by 5.2% year over year to RMB8,999.4 million (US$1,233.5 million) for the first nine months of 2023.
• Net income attributable to Hello Group Inc. was RMB1,505.1 million (US$206.3 million) for the first nine months of 2023, compared to RMB1,086.3 million during the same period of 2022.
• Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,710.0 million (US$234.4 million) for the first nine months of 2023, compared to RMB1,397.8 million during the same period of 2022.
• Diluted net income per ADS was RMB7.52 (US$1.03) for the first nine months of 2023, compared to RMB5.30 during the same period of 2022.
• Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17) for the first nine months of 2023, compared to RMB6.75 during the same period of 2022.

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

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

 

Third Quarter of 2023 Financial Results

Net revenues

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

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

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

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

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

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

Cost and expenses

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

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

Income from operations

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

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

Income tax expenses

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

Net income

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

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

Net income attributable to Hello Group Inc.

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

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

Net income per ADS

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

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

Cash and cash flow

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

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

First Nine Months of 2023 Financial Results

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

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

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

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

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

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

Recent Development

Execution of share repurchase program

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

Business Outlook

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

Note 1: Non-GAAP measures

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

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

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

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

Conference Call

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

Participants can register for the conference call by navigating to:

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

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

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

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

Hong Kong: 800-930-639
Passcode: 10035226

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

About Hello Group Inc.

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

For investor and media inquiries, please contact:

Hello Group Inc.

Investor Relations
Phone: +86-10-5731-0538
Email: ir@hellogroup.com

Christensen

In China
Ms. Xiaoyan Su
Phone: +86-10-5900-1548
E-mail: Xiaoyan.Su@christensencomms.com 

In U.S.

Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com 

Safe Harbor Statement

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

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the third quarter of 2023 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2023 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  Moreover, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, the impact of the COVID-19 pandemic on the Company's business operations and the economy in China, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company's cash flows from operations, general economic conditions, and other factors.  For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

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

 

Hello Group Inc.
Unaudited Condensed Consolidated Statement of Operations
(All amounts in thousands, except share and per share data)
	Three months						First nine months
	Ended September 30						Ended September 30
	2022		2023		2023		2022		2023		2023
	RMB		RMB		US$		RMB		RMB		US$
Net revenues:
Live video service	1,657,531		1,530,797		209,813		4,786,232		4,548,986		623,490
Value-added service	1,537,666		1,466,727		201,031		4,557,481		4,327,678		593,158
Mobile marketing	28,243		30,705		4,208		92,029		88,762		12,166
Mobile games	7,719		7,864		1,078		50,416		14,169		1,942
Other services	1,862		6,754		927		5,356		19,796		2,713
Total net revenues	3,233,021		3,042,847		417,057		9,491,514		8,999,391		1,233,469
Cost and expenses:
Cost of revenues	(1,886,135)		(1,771,530)		(242,808)		(5,505,369)		(5,255,277)		(720,296)
Research and development	(245,105)		(201,693)		(27,644)		(733,562)		(653,145)		(89,521)
Sales and marketing	(467,012)		(373,942)		(51,253)		(1,666,542)		(1,110,253)		(152,173)
General and administrative	(135,933)		(113,896)		(15,611)		(453,514)		(376,981)		(51,670)
Total cost and expenses	(2,734,185)		(2,461,061)		(337,316)		(8,358,987)		(7,395,656)		(1,013,660)
Other operating income, net	21,289		39,971		5,478		85,790		99,284		13,608
Income from operations	520,125		621,757		85,219		1,218,317		1,703,019		233,417
Interest income	89,274		96,791		13,266		280,761		311,899		42,749
Interest expense	(25,010)		(19,293)		(2,644)		(72,575)		(41,671)		(5,711)
Other gain or loss, net	40,403		-		-		118,325		4,565		626
Income before income tax    and share of income on    equity method investments	624,792		699,255		95,841		1,544,828		1,977,812		271,081
Income tax expenses	(156,041)		(158,064)		(21,664)		(452,860)		(446,646)		(61,218)
Income before share of income on equity method investments	468,751		541,191		74,177		1,091,968		1,531,166		209,863
Share of (loss) income on equity    method investments	(18,880)		974		133		(8,967)		(31,940)		(4,378)
Net income	449,871		542,165		74,310		1,083,001		1,499,226		205,485
Less: net loss attributable to   non-controlling interest	(964)		(4,263)		(584)		(3,288)		(5,886)		(807)
Net income attributable to the    shareholders of Hello    Group Inc.	450,835		546,428		74,894		1,086,289		1,505,112		206,292
Net income per share attributable to ordinary shareholders
Basic	1.15		1.44		0.20		2.75		3.98		0.55
Diluted	1.10		1.37		0.19		2.65		3.76		0.52
Weighted average shares used in calculating net income per ordinary share
Basic	391,027,485		379,292,110		379,292,110		394,333,009		378,085,030		378,085,030
Diluted	423,608,050		398,296,690		398,296,690		429,765,849		405,490,366		405,490,366

 

 

 

Hello Group Inc.
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in thousands, except share and per share data)
	Three months							First nine months
	Ended September 30							Ended September 30
	2022		2023		2023			2022		2023		2023
	RMB		RMB		US$			RMB		RMB		US$
Net income	449,871		542,165		74,310			1,083,001		1,499,226		205,485
Other comprehensive (loss) income, net    of tax:
Foreign currency translation adjustment	(188,343)		6,032		827			(328,832)		116,188		15,925
Comprehensive income	261,528		548,197		75,137			754,169		1,615,414		221,410
Less: comprehensive income (loss)     attributed to the non-controlling interest	10,831		(3,141)		(431)			17,710		5,377		737
Comprehensive income attributable to     Hello Group Inc.	250,697		551,338		75,568			736,459		1,610,037		220,673

 

 

 

Hello Group Inc.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except share and per share data)
	December 31		September 30		September 30
	2022		2023		2023
	RMB		RMB		US$
Assets
Current assets
Cash and cash equivalents	5,018,129		4,994,558		684,561
Short-term deposits	5,300,000		1,885,005		258,361
Restricted cash	97,706		9,245		1,267
Short-term investments	300,240		308,550		42,290
Accounts receivable, net of allowance for doubtful accounts of RMB5,870    and RMB13,365 as of December 31, 2022 and September 30, 2023,    respectively	188,711		192,849		26,432
Amounts due from related parties	55		7,114		975
Prepaid expenses and other current assets	819,706		712,236		97,620
Total current assets	11,724,547		8,109,557		1,111,506
Long-term deposits	2,600,000		3,809,200		522,094
Long-term restricted cash	82,766		2,638,015		361,570
Right-of-use assets, net	115,520		127,804		17,517
Property and equipment, net	172,984		358,361		49,117
Intangible assets, net	22,203		18,365		2,517
Rental deposits	20,737		18,486		2,534
Long-term investments	893,988		860,306		117,915
Amounts due from RPT-non current	-		20,000		2,741
Other non-current assets	162,499		177,853		24,377
Deferred tax assets	34,343		33,470		4,587
Total assets	15,829,587		16,171,417		2,216,475
Liabilities and equity
Current liabilities
Accounts payable	617,022		642,886		88,113
Deferred revenue	484,775		474,647		65,056
Accrued expenses and other current liabilities	797,504		648,156		88,837
Amounts due to related parties	9,178		3,675		504
Lease liabilities due within one year	88,352		56,681		7,769
Income tax payable	68,765		89,263		12,235
Dividends payable	-		21,012		2,879
Deferred consideration in connection with business acquisitions	26,483		28,014		3,840
Long-term borrowings, current portion	-		215,615		29,552
Convertible senior notes-current	2,646,168		-		-
Total current liabilities	4,738,247		2,179,949		298,785
Deferred tax liabilities	22,011		151,578		20,775
Convertible Senior Notes	-		20,094		2,754
Long-term borrowings	-		1,938,385		265,678
Lease liabilities	33,281		66,285		9,085
Other non-current liabilities	105,410		95,958		13,152
Total liabilities	4,898,949		4,452,249		610,229
Shareholder's equity (i)	10,930,638		11,719,168		1,606,246
Total liabilities and shareholder's equity	15,829,587		16,171,417		2,216,475
(i): As of September 30, 2023, the number of ordinary shares outstanding was 379,881,912.

 

 

 

Hello Group Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in thousands, except share and per share data)
	Three months						First nine months
	Ended September 30						Ended September 30
	2022		2023		2023		2022		2023		2023
	RMB		RMB		US$		RMB		RMB		US$
Cash flows from operating activities:
Net income	449,871		542,165		74,310		1,083,001		1,499,226		205,485
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	27,047		17,467		2,394		83,107		59,098		8,100
Amortization of intangible assets	1,279		1,279		175		3,837		3,837		526
Share-based compensation	84,976		59,472		8,151		311,540		204,877		28,081
Share of loss (income) on equity method    investments	18,880		(974)		(133)		8,967		31,940		4,378
Gain on repurchase of convertible senior notes	(51,653)		-		-		(129,575)		(4,565)		(626)
Loss on long-term investments	11,250		-		-		11,250		-		-
Cash received on distributions from equity method    investments	-		718		98		1,708		2,067		283
Gain or loss on disposal of property and equipment	(923)		(60)		(8)		(783)		(520)		(71)
Provision of (income) loss on receivable and other    assets	(820)		(133)		(18)		(453)		10,071		1,380
Changes in operating assets and liabilities:
Accounts receivable	22,973		10,749		1,473		15,695		(9,916)		(1,359)
Prepaid expenses and other current assets	41,418		(96,572)		(13,236)		(16,144)		98,294		13,472
Amounts due from related parties	-		(27,114)		(3,716)		-		(27,059)		(3,709)
Rental deposits	716		1,301		178		1,399		2,252		309
Deferred tax assets	590		415		57		(986)		872		120
Other non-current assets	16,130		(50,578)		(6,932)		76,820		(27,639)		(3,788)
Accounts payable	(438)		6,987		958		(106,392)		38,825		5,321
Income tax payable	(15,635)		24,215		3,319		(50,923)		20,496		2,809
Deferred revenue	(19,356)		11,736		1,609		(73,891)		(11,137)		(1,526)
Accrued expenses and other current liabilities	(108,513)		15,374		2,107		(304,346)		(172,186)		(23,600)
Amount due to related parties	7,824		(8,401)		(1,151)		4,427		(5,504)		(754)
Deferred tax liabilities	(14,425)		47,681		6,535		(171,752)		130,198		17,845
Other non-current liabilities	(26,655)		26,741		3,665		(58,311)		17,757		2,434
Net cash provided by operating activities	444,536		582,468		79,835		688,195		1,861,284		255,110
Cash flows from investing activities:
Purchase of property and equipment	(27,051)		(238,219)		(32,651)		(70,392)		(259,463)		(35,562)
Payment for long-term investments	-		-		-		(55,343)		(9,000)		(1,234)
Purchase of short-term deposits	(1,700,000)		(531,214)		(72,809)		(1,700,000)		(1,028,556)		(140,975)
Cash received on maturity of short-term deposits	2,700,000		1,900,000		260,417		3,710,000		5,409,820		741,478
Cash received on investment income distribution	-		-		-		3,523		1,517		208
Purchase of long-term deposits	(1,000,000)		(2,498,860)		(342,497)		(2,550,000)		(3,848,860)		(527,530)
Cash received on maturity of long-term deposits	-		1,700,000		233,004		1,200,000		1,700,000		233,004
Cash received from sales of long-term investment	-		15,000		2,056		-		15,000		2,056
Other investing activities	2,781		137		19		3,103		1,822		250
Net cash (used in) provided by investing activities	(24,270)		346,844		47,539		540,891		1,982,280		271,695
Cash flows from financing activities:
Deferred payment for business acquisition	(15,858)		-		-		(21,421)		-		-
Proceeds from exercise of share options	18		551		76		51		570		78
Repurchase of ordinary shares	(285,355)		(58,767)		(8,055)		(287,690)		(62,004)		(8,498)
Repurchase of subsidiary's share options	(14,330)		(223)		(31)		(39,867)		(4,319)		(592)
Dividends payment	-		-		-		(840,997)		(937,249)		(128,461)
Proceeds from long-term borrowings	-		2,154,000		295,230		-		2,154,000		295,230
Payment for redemption of convertible bonds	(1,024,443)		(86,932)		(11,915)		(2,136,987)		(2,679,942)		(367,317)
Net cash (used in) provided by financing activities	(1,339,968)		2,008,629		275,305		(3,326,911)		(1,528,944)		(209,560)
Effect of exchange rate changes	(6,190)		(7,837)		(1,075)		72,096		128,597		17,625
Net (decrease) increase in cash and cash equivalents	(925,892)		2,930,104		401,604		(2,025,729)		2,443,217		334,870
Cash, cash equivalents and restricted cash at the    beginning of period	4,547,197		4,711,714		645,794		5,647,034		5,198,601		712,528
Cash, cash equivalents and restricted cash at the end of    period	3,621,305		7,641,818		1,047,398		3,621,305		7,641,818		1,047,398

 

 

 

Hello Group Inc.
Reconciliation of Non-GAAP financial measures to comparable GAAP measures
(All amounts in thousands, except per share data)
1.	Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures.
	Three months				Three months				Three months
	Ended September 30, 2022				Ended September 30, 2023				Ended September 30, 2023
	GAAP RMB	Share-based compensation RMB	Non-GAAP RMB		GAAP RMB	Share-based compensation RMB	Non-GAAP RMB		GAAP US$	Share-based compensation US$	Non-GAAP US$
Cost of revenues	(1,886,135)	1,496	(1,884,639)		(1,771,530)	1,211	(1,770,319)		(242,808)	166	(242,642)
Research and development	(245,105)	21,713	(223,392)		(201,693)	14,993	(186,700)		(27,644)	2,055	(25,589)
Sales and marketing	(467,012)	8,453	(458,559)		(373,942)	5,854	(368,088)		(51,253)	802	(50,451)
General and administrative	(135,933)	53,314	(82,619)		(113,896)	37,414	(76,482)		(15,611)	5,128	(10,483)
Cost and operating expenses	(2,734,185)	84,976	(2,649,209)		(2,461,061)	59,472	(2,401,589)		(337,316)	8,151	(329,165)
Income from operations	520,125	84,976	605,101		621,757	59,472	681,229		85,219	8,151	93,370
Net income attributable to Hello    Group Inc.	450,835	84,976	535,811		546,428	59,472	605,900		74,894	8,151	83,045

 

 

 

Hello Group Inc.
Reconciliation of Non-GAAP financial measures to comparable GAAP measures
(All amounts in thousands, except per share data)
1.	Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures-continued.
	First nine months				First nine months				First nine months
	Ended September 30, 2022				Ended September 30, 2023				Ended September 30, 2023
	GAAP RMB	Share-based compensation RMB	Non-GAAP RMB		GAAP RMB	Share-based compensation RMB	Non-GAAP RMB		GAAP US$	Share-based compensation US$	Non-GAAP US$
Cost of revenues	(5,505,369)	12,488	(5,492,881)		(5,255,277)	4,398	(5,250,879)		(720,296)	603	(719,693)
Research and development	(733,562)	66,652	(666,910)		(653,145)	51,186	(601,959)		(89,521)	7,016	(82,505)
Sales and marketing	(1,666,542)	29,952	(1,636,590)		(1,110,253)	20,413	(1,089,840)		(152,173)	2,798	(149,375)
General and administrative	(453,514)	202,448	(251,066)		(376,981)	128,880	(248,101)		(51,670)	17,664	(34,006)
Cost and operating expenses	(8,358,987)	311,540	(8,047,447)		(7,395,656)	204,877	(7,190,779)		(1,013,660)	28,081	(985,579)
Income from operations	1,218,317	311,540	1,529,857		1,703,019	204,877	1,907,896		233,417	28,081	261,498
Net income attributable to Hello    Group Inc.	1,086,289	311,540	1,397,829		1,505,112	204,877	1,709,989		206,292	28,081	234,373

 

 

 

Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
	Three months
	Ended September 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Net revenues:
Live video service	1,410,844		119,953		-		1,530,797		209,813
Value-added service	1,298,329		168,398		-		1,466,727		201,031
Mobile marketing	24,039		6,666		-		30,705		4,208
Mobile games	7,864		-		-		7,864		1,078
Other services	1,981		-		4,773		6,754		927
Total net revenues	2,743,057		295,017		4,773		3,042,847		417,057
Cost and expenses (ii):
Cost of revenues	(1,606,261)		(145,346)		(19,923)		(1,771,530)		(242,808)
Research and development	(151,649)		(50,044)		-		(201,693)		(27,644)
Sales and marketing	(298,919)		(71,978)		(3,045)		(373,942)		(51,253)
General and administrative	(105,339)		(5,656)		(2,901)		(113,896)		(15,611)
Total cost and expenses	(2,162,168)		(273,024)		(25,869)		(2,461,061)		(337,316)
Other operating income, net	37,750		1,985		236		39,971		5,478
Income (loss) from operations	618,639		23,978		(20,860)		621,757		85,219
Interest income	96,680		94		17		96,791		13,266
Interest expense	(19,293)		-		-		(19,293)		(2,644)
Income (loss) before income tax and    share of income on equity method    investments	696,026		24,072		(20,843)		699,255		95,841
Income tax expenses	(156,992)		(1,072)		-		(158,064)		(21,664)
Income (loss) before share of income    on equity method investments	539,034		23,000		(20,843)		541,191		74,177
Share of loss on equity method    investments	974		-		-		974		133
Net income (loss)	540,008		23,000		(20,843)		542,165		74,310
(ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
	Three months
	Ended September 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues	1,207		4		-		1,211		166
Research and development	11,401		3,592		-		14,993		2,055
Sales and marketing	5,854		-		-		5,854		802
General and administrative	37,406		8		-		37,414		5,128
Total cost and expenses	55,868		3,604		-		59,472		8,151

 

 

 

Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
	Three months
	Ended September 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Income (loss) from operations	618,639		23,978		(20,860)		621,757		85,219
Share-based compensation	55,868		3,604		-		59,472		8,151
Non-GAAP income (loss) from operations	674,507		27,582		(20,860)		681,229		93,370
Net income (loss)	540,008		23,000		(20,843)		542,165		74,310
Share-based compensation	55,868		3,604		-		59,472		8,151
Non-GAAP net income (loss)	595,876		26,604		(20,843)		601,637		82,461

 

 

 

Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
	Three months
	Ended September 30, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$[1]
Net revenues:
Live video service	1,517,872		139,659		-		1,657,531		233,012
Value-added service	1,336,050		201,616		-		1,537,666		216,162
Mobile marketing	28,243		-		-		28,243		3,970
Mobile games	7,719		-		-		7,719		1,085
Other services	1,126		-		736		1,862		262
Total net revenues	2,891,010		341,275		736		3,233,021		454,491
Cost and expenses (iii):
Cost of revenues	(1,704,934)		(180,277)		(924)		(1,886,135)		(265,149)
Research and development	(176,727)		(68,378)		-		(245,105)		(34,456)
Sales and marketing	(335,350)		(130,222)		(1,440)		(467,012)		(65,652)
General and administrative	(124,184)		(8,574)		(3,175)		(135,933)		(19,109)
Total cost and expenses	(2,341,195)		(387,451)		(5,539)		(2,734,185)		(384,366)
Other operating income	19,563		1,722		4		21,289		2,993
Income (loss) from operations	569,378		(44,454)		(4,799)		520,125		73,118
Interest income	89,003		187		84		89,274		12,550
Interest expense	(25,010)		-		-		(25,010)		(3,516)
Other gain or loss, net	40,403		-		-		40,403		5,680
Income (loss) before income tax and    share of income on equity method    investments	673,774		(44,267)		(4,715)		624,792		87,832
Income tax expenses	(155,328)		(713)		-		(156,041)		(21,936)
Income (loss) before share of income on    equity method investments	518,446		(44,980)		(4,715)		468,751		65,896
Share of loss on equity method investments	(18,880)		-		-		(18,880)		(2,654)
Net income (loss)	499,566		(44,980)		(4,715)		449,871		63,242
(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
	Three months
	Ended September 30, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues	1,478		18		-		1,496		210
Research and development	15,640		6,073		-		21,713		3,052
Sales and marketing	8,446		7		-		8,453		1,188
General and administrative	53,272		42		-		53,314		7,495
Total cost and expenses	78,836		6,140		-		84,976		11,945
[1] All translations from RMB to U.S. dollars are made at a rate of RMB7.1135 to US$1.00, the effective noon buying rate for September 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

 

 

Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
	Three months
	Ended September 30, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Income (loss) from operations	569,378		(44,454)		(4,799)		520,125		73,118
Share-based compensation	78,836		6,140		-		84,976		11,945
Non-GAAP income (loss) from operations	648,214		(38,314)		(4,799)		605,101		85,063
Net income (loss)	499,566		(44,980)		(4,715)		449,871		63,242
Share-based compensation	78,836		6,140		-		84,976		11,945
Non-GAAP net income (loss)	578,402		(38,840)		(4,715)		534,847		75,187

 

 

 

Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
	First nine months
	Ended September 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Net revenues:
Live video service	4,144,164		404,822		-		4,548,986		623,490
Value-added service	3,821,183		506,495		-		4,327,678		593,158
Mobile marketing	75,730		13,032		-		88,762		12,166
Mobile games	14,169		-		-		14,169		1,942
Other services	14,577		-		5,219		19,796		2,713
Total net revenues	8,069,823		924,349		5,219		8,999,391		1,233,469
Cost and expenses (iv):
Cost of revenues	(4,765,127)		(469,111)		(21,039)		(5,255,277)		(720,296)
Research and development	(483,997)		(169,148)		-		(653,145)		(89,521)
Sales and marketing	(894,462)		(210,208)		(5,583)		(1,110,253)		(152,173)
General and administrative	(349,614)		(19,600)		(7,767)		(376,981)		(51,670)
Total cost and expenses	(6,493,200)		(868,067)		(34,389)		(7,395,656)		(1,013,660)
Other operating income	95,876		3,110		298		99,284		13,608
Income (loss) from operations	1,672,499		59,392		(28,872)		1,703,019		233,417
Interest income	311,157		656		86		311,899		42,749
Interest expense	(41,671)		-		-		(41,671)		(5,711)
Other gain or loss, net	4,565		-		-		4,565		626
Income (loss) before income tax    and share of income on equity    method investments	1,946,550		60,048		(28,786)		1,977,812		271,081
Income tax expenses	(443,175)		(3,471)		-		(446,646)		(61,218)
Income (loss) before share of    income on equity method    investments	1,503,375		56,577		(28,786)		1,531,166		209,863
Share of income on equity method investments	(31,940)		-		-		(31,940)		(4,378)
Net income (loss)	1,471,435		56,577		(28,786)		1,499,226		205,485
(iv) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
	First nine months
	Ended September 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues	4,262		136		-		4,398		603
Research and development	36,793		14,393		-		51,186		7,016
Sales and marketing	20,408		5		-		20,413		2,798
General and administrative	128,856		24		-		128,880		17,664
Total cost and expenses	190,319		14,558		-		204,877		28,081

 

 

Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
	First nine months
	ended September 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Operating income (loss)	1,672,498		59,392		(28,871)		1,703,019		233,417
Share-based compensation	190,319		14,558		-		204,877		28,081
Non-GAAP operating income (loss)	1,862,817		73,950		(28,871)		1,907,896		261,498
Net income (loss)	1,471,435		56,577		(28,786)		1,499,226		205,485
Share-based compensation	190,319		14,558		-		204,877		28,081
Non-GAAP net income (loss)	1,661,754		71,135		(28,786)		1,704,103		233,566

 

 

 

Hello Group Inc.
Unaudited Condensed Segment Report
(All amounts in thousands, except share and per share data)
	First nine months
	Ended September 30, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Net revenues:
Live video service	4,404,991		381,241		-		4,786,232		672,838
Value-added service	3,917,609		639,872		-		4,557,481		640,681
Mobile marketing	92,029		-		-		92,029		12,937
Mobile games	50,416		-		-		50,416		7,087
Other services	4,298		-		1,058		5,356		753
Total net revenues	8,469,343		1,021,113		1,058		9,491,514		1,334,296
Cost and expenses (v):
Cost of revenues	(4,981,345)		(522,188)		(1,836)		(5,505,369)		(773,933)
Research and development	(536,640)		(196,922)		-		(733,562)		(103,123)
Sales and marketing	(1,039,526)		(623,680)		(3,336)		(1,666,542)		(234,279)
General and administrative	(415,954)		(25,335)		(12,225)		(453,514)		(63,754)
Total cost and expenses	(6,973,465)		(1,368,125)		(17,397)		(8,358,987)		(1,175,089)
Other operating income	76,253		9,491		46		85,790		12,060
Income (loss) from operations	1,572,131		(337,521)		(16,293)		1,218,317		171,267
Interest income	280,252		291		218		280,761		39,469
Interest expense	(72,575)		-		-		(72,575)		(10,202)
Other gain or loss, net	118,325		-		-		118,325		16,634
Income (loss) before income tax    and share of income on equity    method investments	1,898,133		(337,230)		(16,075)		1,544,828		217,168
Income tax expenses	(451,061)		(1,799)		-		(452,860)		(63,662)
Income (loss) before share of    income on equity method    investments	1,447,072		(339,029)		(16,075)		1,091,968		153,506
Share of loss on equity method investments	(8,967)		-		-		(8,967)		(1,261)
Net income (loss)	1,438,105		(339,029)		(16,075)		1,083,001		152,245
(v) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
	First nine months
	Ended September 30, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues	5,477		7,011		-		12,488		1,756
Research and development	51,752		14,900		-		66,652		9,370
Sales and marketing	29,729		223		-		29,952		4,211
General and administrative	202,319		129		-		202,448		28,460
Total cost and expenses	289,277		22,263		-		311,540		43,797

     

 

 

Hello Group Inc.
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report
(All amounts in thousands, except share and per share data)
	First nine months
	ended September 30, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Operating income (loss)	1,572,131		(337,521)		(16,293)		1,218,317		171,267
Share-based compensation	289,277		22,263		-		311,540		43,797
Non-GAAP operating income (loss)	1,861,408		(315,258)		(16,293)		1,529,857		215,064
Net income (loss)	1,438,105		(339,029)		(16,075)		1,083,001		152,245
Share-based compensation	289,277		22,263		-		311,540		43,797
Non-GAAP net income (loss)	1,727,382		(316,766)		(16,075)		1,394,541		196,042

 

 

View original content:https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-third-quarter-of-2023-302009901.html

SOURCE Hello Group Inc.

FAQ

What were Hello Group Inc.'s net revenues in the third quarter of 2023?

Hello Group Inc.'s net revenues in the third quarter of 2023 were RMB3,042.8 million (US$417.1 million), a 5.9% decrease year over year.

What was the net income attributable to Hello Group Inc. in the third quarter of 2023?

The net income attributable to Hello Group Inc. in the third quarter of 2023 was RMB546.4 million (US$74.9 million), an increase from the same period of 2022.

How many Monthly Active Users did Tantan application have in September 2023?

Tantan application had 15.7 million Monthly Active Users in September 2023, compared to 20.9 million in September 2022.

What were Hello Group Inc.'s net revenues for the first nine months of 2023?

Hello Group Inc.'s net revenues for the first nine months of 2023 were RMB8,999.4 million (US$1,233.5 million), a 5.2% decrease year over year.

What was the net cash provided by operating activities in the third quarter of 2023?

The net cash provided by operating activities in the third quarter of 2023 was RMB582.5 million (US$79.8 million), an increase from the same period of 2022.