UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2019

Commission File Number: 001-36765

 

 

Momo Inc.

 

 

20th Floor, Block B

Tower 2, Wangjing SOHO

No.1 Futongdong Street

Chaoyang District, Beijing 100102

People’s Republic of China

(Address of principal executive offices)

 

 

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

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 

SIGNATURES

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

 

Momo Inc.
By:  

/s/ Jonathan Xiaosong Zhang

Name:   Jonathan Xiaosong Zhang
Title:   Chief Financial Officer

Date: August 27, 2019

Exhibit Index

Exhibit 99.1—Press Release

EX-99.1

Exhibit 99.1

Momo Announces Unaudited Financial Results for the Second Quarter of 2019

BEIJING, CHINA, August 27, 2019 – Momo Inc. (NASDAQ: MOMO) (“Momo” or the “Company”), a leading mobile social networking platform in China, today announced its unaudited financial results for the second quarter of 2019.

Second Quarter of 2019 Highlights

 

  •  

Net revenues increased by 32% year over year to RMB4,152.6 million (US$604.9 million*) in the second quarter of 2019.

 

  •  

Net income attributable to Momo Inc. decreased to RMB731.8 million (US$106.6 million) in the second quarter of 2019 from RMB750.2 million in the same period of 2018. We recognized a total share-based compensation expense of RMB482.5 million (US$70.3 million) in the second quarter of 2019 including a share-based compensation expense of RMB323.7 million (US$47.1 million) regarding certain share options granted to the founders of Tantan Limited (“Tantan”), while the total share-based compensation expense recognized in the same period of 2018 was only RMB134.2 million. In August 2018, Tantan Limited granted 3,578,205 share options to its founders. The share options included a performance condition in which the founders have the right to receive fully vested options immediately upon achieving certain performance condition. During the second quarter of 2019, the performance condition was met and accordingly, we recognized a share-based compensation expense of RMB323.7 million (US$47.1 million) related to those options.

 

  •  

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

 

  •  

Diluted net income per American Depositary Share (“ADS”) was RMB3.33 (US$0.49) in the second quarter of 2019, compared to RMB3.55 in the same period of 2018.

 

  •  

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

 

  •  

Monthly Active Users (“MAU”) on Momo application were 113.5 million in June 2019, compared to 108.0 million in June 2018.

 

  •  

Total paying users of our live video service and value-added service, without double counting the overlap, including 3.2 million paying users of Tantan, were 11.8 million for the second quarter of 2019, compared to 11.6 million for the second quarter of 2018, which included 3.1 million paying users of Tantan in June 2018 .

Recent Development

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

 

* 

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.865 to US$1.00, the effective noon buying rate for June 28, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

1

First Half of 2019 Highlights

 

  •  

Net revenues increased 33% year over year to RMB7,875.5 million (US$1,147.2 million) for the first half of 2019.

 

  •  

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

 

  •  

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

 

  •  

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

 

  •  

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

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

Second Quarter of 2019 Financial Results

Net revenues

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

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

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

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

Mobile games revenues were RMB23.2 million (US$3.4 million) in the second quarter of 2019, a decrease of 33% from RMB34.8 million in the second quarter of 2018. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

 

2

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

Cost and expenses

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

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

Other operating income

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

Income from operations

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

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

 

3

Income tax expenses

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

Net income

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

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

Net income attributable to Momo Inc.

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

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

Net income per ADS

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

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

Cash and cash flow

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

First Half of 2019 Financial Results

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

 

4

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

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

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

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

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

Business Outlook

For the third quarter of 2019, the Company expects total net revenues to be between RMB4.25 billion to RMB4.35 billion, representing an increase of 17% to 19% year over year. These estimates reflect the Company’s current and preliminary view, which is subject to change.

Note 1: Non-GAAP measures

To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions.

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

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

 

5

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

Conference Call

Momo’s management will host an earnings conference call on Tuesday, August 27, 2019, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on August 27, 2019).

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

International: +65-6713-5090

U.S. Toll Free: +1-866-519-4004

Hong Kong Toll Free: 800-906601

Mainland China: 4006-208038

Passcode: Momo

Please dial in 15 minutes before the call is scheduled to begin.

A telephone replay of the call will be available after the conclusion of the conference call through 9:00 a.m. U.S. Eastern Time, September 4, 2019. The dial-in details for the replay are as follows:

International: +61-2-8199-0299

U.S. Toll Free: +1-855-452-5696

Passcode: 8558826

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Momo’s website at http://ir.immomo.com.

About Momo

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

 

6

For investor and media inquiries, please contact:

Momo Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: ir@immomo.com

Christensen

In China

Mr. Christian Arnell

Phone: +86-10-5900-1548

E-mail: carnell@christensenir.com

In US

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: lbergkamp@christensenir.com

Safe Harbor Statement

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

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

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

 

7

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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

 

     Three months     First half year  
   ended June 30     ended June 30  
     2018     2019     2019     2018     2019     2019  
     RMB     RMB     US$     RMB     RMB     US$  

Net revenues:

             

Live video service

      2,620,924       3,099,887       451,549       4,981,038       5,789,300       843,307  

Value-added service

      352,583       948,394       138,149       587,587       1,852,243       269,810  

Mobile marketing

      141,984       76,208       11,101       260,842       156,937       22,860  

Mobile games

      34,782       23,240       3,385       77,010       62,248       9,067  

Other services

      2,258       4,901       715       10,430       14,821       2,159  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      3,152,531       4,152,630       604,899       5,916,907       7,875,549       1,147,203  

Cost and expenses:

             

Cost of revenues

      (1,720,340 )      (2,063,863 )      (300,636 )      (3,051,980 )      (3,937,437 )      (573,552 ) 

Research and development

      (160,097 )      (251,658 )      (36,658 )      (271,483 )      (501,089 )      (72,992 ) 

Sales and marketing

      (348,722 )      (570,609 )      (83,119 )      (630,430 )      (1,194,457 )      (173,992 ) 

General and administrative

      (127,665 )      (500,660 )      (72,929 )      (237,134 )      (1,103,256 )      (160,707 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (2,356,824 )      (3,386,790 )      (493,342 )      (4,191,027 )      (6,736,239 )      (981,243 ) 

Other operating income

      100,075       161,901       23,584       106,979       172,855       25,179  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      895,782       927,741       135,141       1,832,859       1,312,165       191,139  

Interest income

      52,547       100,175       14,592       100,452       193,953       28,252  

Interest expense

      (12,436 )      (19,315 )      (2,814 )      (12,436 )      (38,304 )      (5,580 ) 

Impairment loss on long-term investments

      —         —         —         —         (4,500 )      (655 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      935,893       1,008,601       146,919       1,920,875       1,463,314       213,156  

Income tax expenses

      (198,605 )      (283,868 )      (41,350 )      (369,534 )      (447,519 )      (65,188 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before share of income on equity method investments

      737,288       724,733       105,569       1,551,341       1,015,795       147,968  

Share of income on equity method investments

      10,789       6,375       929       18,915       1,871       273  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      748,077       731,108       106,498       1,570,256       1,017,666       148,241  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less: net loss attributable to non-controlling interest

      (2,167 )      (669 )      (97 )      (5,143 )      (3,428 )      (499 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Momo Inc.

      750,244       731,777       106,595       1,575,399       1,021,094       148,740  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income per share attributable to ordinary shareholders

             

Basic

      1.85       1.76       0.26       3.92       2.46       0.36  

Diluted

      1.77       1.67       0.24       3.76       2.36       0.34  

Weighted average shares used in calculating net income per ordinary share

             

Basic

      405,737,852       414,769,943       414,769,943       402,388,870       414,370,874       414,370,874  

Diluted

      423,089,714       450,480,301       450,480,301       419,086,110       449,410,610       449,410,610  

 

8

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

 

     Three months      First half year  
     ended June 30      ended June 30  
     2018     2019      2019      2018     2019     2019  
     RMB     RMB      US$      RMB     RMB     US$  

Net income

      748,077       731,108        106,498        1,570,256       1,017,666       148,241  

Other comprehensive income (loss), net of tax

               

Foreign currency translation adjustment

      156,015       40,899        5,958        67,722       (32,082 )      (4,673 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Comprehensive income

      904,092       772,007        112,456        1,637,978       985,584       143,568  

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

      (1,061 )      2,271        331        (4,037 )      (2,963 )      (432 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Comprehensive income attributable to Momo Inc.

      905,153       769,736        112,125        1,642,015       988,547       144,000  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

9

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

 

     December 31
2018
RMB		      June 30
2019
RMB		      June 30
2019
US$		  

Assets

         

Current assets

         

Cash and cash equivalents

      2,468,034        1,735,743        252,839  

Term deposits

      8,824,610        10,664,100        1,553,401  

Short-term investment

      —          90,000        13,110  

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

      719,606        275,171        40,083  

Amounts due from a related party

      —          271        39  

Prepaid expenses and other current assets

      620,979        627,007        91,333  
  

 

 

     

 

 

     

 

 

  

Total current assets

      12,633,229        13,392,292        1,950,805  

Property and equipment, net

      387,532        368,503        53,679  

Intangible assets

      1,036,986        956,954        139,396  

Rental deposits

      24,192        26,586        3,873  

Long-term investments

      447,465        476,836        69,459  

Deferred tax assets

      57,786        31,679        4,615  

Other non-current assets

      71,519        18,768        2,734  

Right-of-use assets, net1

      —          194,126        28,278  

Goodwill

      4,306,829        4,300,285        626,407  
  

 

 

     

 

 

     

 

 

  

Total assets

      18,965,538        19,766,029        2,879,246  
  

 

 

     

 

 

     

 

 

  

Liabilities and equity

         

Current liabilities

         

Accounts payable

      718,362        778,682        113,427  

Deferred revenue

      441,892        411,970        60,011  

Accrued expenses and other current liabilities

      846,710        672,261        97,925  

Amount due to related parties

      82,948        39,921        5,815  

Income tax payable

      137,090        130,103        18,952  

Lease liabilities due within one year1

      —          103,648        15,098  

Deferred consideration in connection with business acquisitions

      469,274        83,916        12,224  
  

 

 

     

 

 

     

 

 

  

Total current liabilities

      2,696,276        2,220,501        323,452  

Deferred tax liabilities

      259,247        239,238        34,849  

Convertible senior notes

      4,877,116        4,877,214        710,446  

Share-based compensation liability

      86,767        887,511        129,281  

Lease liabilities1

      —          85,582        12,466  

Other non-current liabilities

      23,273        29,795        4,340  
  

 

 

     

 

 

     

 

 

  

Total liabilities

      7,942,679        8,339,841        1,214,834  

Shareholder’s equity (i)

      11,022,859        11,426,188        1,664,412  
  

 

 

     

 

 

     

 

 

  

Total liabilities and shareholder’s equity

      18,965,538        19,766,029        2,879,246  
  

 

 

     

 

 

     

 

 

  

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

 

1 

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

 

10

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

 

     Three months     First half year  
     ended June 30     ended June 30  
     2018     2019     2019     2018     2019     2019  
     RMB     RMB     US$     RMB     RMB     US$  

Cash flows from operating activities:

             

Net income

      748,077       731,108       106,498       1,570,256       1,017,666       148,241  

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

             

Depreciation of property and equipment

      35,110       48,236       7,026       66,582       96,636       14,077  

Amortization of intangible assets

      13,145       39,020       5,684       14,578       77,615       11,306  

Share-based compensation

      134,177       482,537       70,290       212,841       1,075,611       156,680  

Share of income on equity method investments

      (10,789 )      (6,375 )      (929 )      (18,915 )      (1,871 )      (273 ) 

Impairment loss on long-term investments

      —         —         —         —         4,500       655  

Loss (income) on disposal of property and equipment

      —         (338 )      (49 )      2       (334 )      (49 ) 

Provision of allowance for doubtful accounts

      (585 )      9,309       1,356       (585 )      9,309       1,356  

Changes in operating assets and liabilities:

             

Accounts receivable

      11,112       25,712       3,745       64,344       435,126       63,383  

Prepaid expenses and other current assets

      33,204       19,385       2,824       89,691       1,196       174  

Amount due from related parties

      27,452       (271 )      (39 )      20,028       (271 )      (39 ) 

Rental deposits

      486       (1,078 )      (157 )      822       (2,395 )      (349 ) 

Deferred tax assets

      20,606       570       83       28,571       26,107       3,803  

Other non-current assets

      (26,670 )      (18,796 )      (2,738 )      (38,194 )      12,643       1,842  

Accounts payable

      37,339       55,573       8,095       93,698       88,088       12,831  

Income tax payable

      (38,795 )      64,570       9,406       (103,161 )      (6,988 )      (1,018 ) 

Deferred revenue

      (25,729 )      (48,764 )      (7,103 )      (59,320 )      (29,922 )      (4,359 ) 

Accrued expenses and other current liabilities

      38,250       43,872       6,391       (130,853 )      (141,623 )      (20,630 ) 

Amount due to related parties

      451       (16,752 )      (2,440 )      419       (42,717 )      (6,222 ) 

Deferred tax liability

      (3,286 )      (9,755 )      (1,421 )      (3,644 )      (25,297 )      (3,685 ) 

Other non-current liabilities

      (1,160 )      4,201       612       10,691       4,794       698  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      992,395       1,421,964       207,134       1,817,851       2,597,873       378,422  

Cash flows from investing activities:

             

Purchase of property and equipment

      (25,938 )      (41,682 )      (6,072 )      (90,201 )      (94,480 )      (13,763 ) 

Proceeds from disposal of property and equipment

      1       505       75       10       510       75  

Payment for long-term investments

      (50,125 )      (12,000 )      (1,748 )      (54,125 )      (24,000 )      (3,496 ) 

Prepayment of long-term investments

      —         (15,000 )      (2,185 )      (47,000 )      (15,000 )      (2,185 ) 

Payment for business acquisition, net of cash acquired

      (1,818,146 )      (73,681 )      (10,733 )      (3,278,209 )      (378,748 )      (55,171 ) 

Purchase of term deposits

      (3,932,638 )      (6,230,000 )      (907,502 )      (7,569,230 )      (9,715,005 )      (1,415,150 ) 

Cash received on maturity of term deposits

      4,839,433       4,860,025       707,942       7,222,393       7,865,030       1,145,671  

Payment for short-term investments

      —         (40,000 )      (5,827 )      —         (250,000 )      (36,417 ) 

Cash received from sales of short-term investment

      —         60,000       8,740       10,500       160,000       23,307  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash used in investing activities

      (987,413 )      (1,491,833 )      (217,310 )      (3,805,862 )      (2,451,693 )      (357,129 ) 

Cash flows from financing activities:

             

Proceeds from exercise of options

      55       32       5       2,492       115       17  

Deferred payment of purchase of property and equipment

      (1,078 )      —         —         (8,405 )      (94 )      (14 ) 

Dividends payment

      —         (877,346 )      (127,800 )      —         (877,346 )      (127,800 ) 

Proceeds from bank loan

      1,913,190       —         —         1,913,190       —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) financing activities

      1,912,167       (877,314 )      (127,795 )      1,907,277       (877,325 )      (127,797 ) 

Effect of exchange rate changes

      23,222       4,584       665       8,286       (1,146 )      (167 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,940,371       (942,599 )      (137,306 )      (72,448 )      (732,291 )      (106,671 ) 

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

      2,449,375       2,678,342       390,145       4,462,194       2,468,034       359,510  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      4,389,746       1,735,743       252,839       4,389,746       1,735,743       252,839  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

11

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

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

 

    Three months
ended June 30, 2018		     Three months
ended June 30, 2019		     Three months
ended June 30, 2019		  
    GAAP
RMB		     Amortization
of intangible
assets from
business
acquisitions
RMB		     Share-based
compensation
RMB		     Tax
impacts
(ii)
RMB		     Non-GAAP
RMB		     GAAP
RMB		     Amortization
of intangible
assets from
business
acquisitions
RMB		     Share-based
compensation
RMB		     Tax
impacts
(ii)
RMB		     Non-GAAP
RMB		     GAAP
US$		     Amortization
of intangible
assets from
business
acquisitions
US$		     Share-based
compensation
US$		     Tax
impacts
(ii)
US$		     Non-GAAP
US$		  

Cost of revenues

     (1,720,340 )      5,682       7,246       —         (1,707,412 )      (2,063,863 )      18,227       5,447       —         (2,040,189 )      (300,636 )      2,656       793       —         (297,187 ) 

Research and development

     (160,097 )      721       43,313       —         (116,063 )      (251,658 )      2,315       44,523       —         (204,820 )      (36,658 )      337       6,486       —         (29,835 ) 

Sales and marketing

     (348,722 )      5,312       34,552       —         (308,858 )      (570,609 )      17,045       51,293       —         (502,271 )      (83,119 )      2,483       7,472       —         (73,164 ) 

General and administrative

     (127,665 )      —         49,066       —         (78,599 )      (500,660 )      —         381,274       —         (119,386 )      (72,929 )      —         55,539       —         (17,390 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cost and operating expenses

     (2,356,824 )      11,715       134,177       —         (2,210,932 )      (3,386,790 )      37,587       482,537       —         (2,866,666 )      (493,342 )      5,476       70,290       —         (417,576 ) 

Income from operations

     895,782       11,715       134,177       —         1,041,674       927,741       37,587       482,537       —         1,447,865       135,141       5,476       70,290       —         210,907  

Net income attributable to Momo Inc.

     750,244       11,715       134,177       (2,927 )      893,209       731,777       37,587       482,537       (9,397 )      1,242,504       106,595       5,476       70,290       (1,369 )      180,992  

 

12

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

 

1.

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

 

    First half year
ended June 30, 2018		     First half year
ended June 30, 2019		     First half year
ended June 30, 2019		  
    GAAP
RMB		     Amortization
of intangible
assets from
business
acquisitions
RMB		     Share-based
compensation
RMB		     Tax
impacts
(ii)
RMB		     Non-GAAP
RMB		     GAAP
RMB		     Amortization
of intangible
assets from
business
acquisitions
RMB		     Share-based
compensation
RMB		     Tax
impacts
(ii)
RMB		     Non-GAAP
RMB		     GAAP
US$		     Amortization
of intangible
assets from
business
acquisitions
US$		     Share-based
compensation
US$		     Tax
impacts
(ii)
US$		     Non-GAAP
US$		  

Cost of revenues

     (3,051,980 )      5,682       10,283       —         (3,036,015 )      (3,937,437 )      36,248       9,633       —         (3,891,556 )      (573,552 )      5,280       1,403       —         (566,869 ) 

Research and development

     (271,483 )      721       59,672       —         (211,090 )      (501,089 )      4,604       84,253       —         (412,232 )      (72,992 )      671       12,273       —         (60,048 ) 

Sales and marketing

     (630,430 )      5,312       55,460       —         (569,658 )      (1,194,457 )      33,898       90,745       —         (1,069,814 )      (173,992 )      4,938       13,218       —         (155,836 ) 

General and administrative

     (237,134 )      —         87,426       —         (149,708 )      (1,103,256 )      —         890,980       —         (212,276 )      (160,707 )      —         129,786       —         (30,921 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cost and operating expenses

     (4,191,027 )      11,715       212,841       —         (3,966,471 )      (6,736,239 )      74,750       1,075,611       —         (5,585,878 )      (981,243 )      10,889       156,680       —         (813,674 ) 

Income from operations

     1,832,859       11,715       212,841       —         2,057,415       1,312,165       74,750       1,075,611       —         2,462,526       191,139       10,889       156,680       —         358,708  

Net income attributable to Momo Inc.

     1,575,399       11,715       212,841       (2,927 )      1,797,028       1,021,094       74,750       1,075,611       (18,688 )      2,152,767       148,740       10,889       156,680       (2,723 )      313,586  

 

  (ii)

Includes tax impacts related to the amortization of intangible assets from business acquisition. There is no tax impact related to share-based compensation.

 

13

Momo Inc.

Unaudited Segment Report

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

 

     Three months  
     ended June 30, 2019  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

           

Live video service

      3,099,887       —         —         3,099,887       451,549  

Value-added service

      663,601       284,793       —         948,394       138,149  

Mobile marketing

      76,208       —         —         76,208       11,101  

Mobile games

      23,240       —         —         23,240       3,385  

Other services

      2,452       —         2,449       4,901       715  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      3,865,388       284,793       2,449       4,152,630       604,899  

Cost and expenses (iii):

           

Cost of revenues

      (1,970,672 )      (89,362 )      (3,829 )      (2,063,863 )      (300,636 ) 

Research and development

      (181,866 )      (69,792 )      —         (251,658 )      (36,658 ) 

Sales and marketing

      (356,578 )      (212,628 )      (1,403 )      (570,609 )      (83,119 ) 

General and administrative

      (142,384 )      (344,434 )      (13,842 )      (500,660 )      (72,929 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (2,651,500 )      (716,216 )      (19,074 )      (3,386,790 )      (493,342 ) 

Other operating income

      140,535       —         21,366       161,901       23,584  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

      1,354,423       (431,423 )      4,741       927,741       135,141  

Interest income

      97,118       3,024       33       100,175       14,592  

Interest expense

      (19,315 )      —         —         (19,315 )      (2,814 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,432,226       (428,399 )      4,774       1,008,601       146,919  

Income tax (expenses) benefits

      (289,101 )      5,233       —         (283,868 )      (41,350 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,143,125       (423,166 )      4,774       724,733       105,569  

Share of income on equity method investments

      6,375       —         —         6,375       929  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      1,149,500       (423,166 )      4,774       731,108       106,498  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(iii)

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

 

     Three months  
     ended June 30, 2019  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

      4,870        577        —          5,447        793  

Research and development

      27,587        16,936        —          44,523        6,486  

Sales and marketing

      47,381        3,912        —          51,293        7,472  

General and administrative

      54,235        324,479        2,560        381,274        55,539  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total cost and expenses

      134,073        345,904        2,560        482,537        70,290  

 

14

Momo Inc.

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

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

 

     Three months  
     ended June 30, 2019  
     Momo      Tantan     QOOL      Total     Total  
     RMB      RMB     RMB      RMB     US$  

Operating income (loss)

      1,354,423        (431,423 )      4,741        927,741       135,141  

Share-based compensation

      134,073        345,904       2,560        482,537       70,290  

Amortization of intangible assets from business acquisitions

      —          37,587       —          37,587       5,476  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-GAAP operating income (loss)

      1,488,496        (47,932 )      7,301        1,447,865       210,907  

Net income (loss)

      1,149,500        (423,166 )      4,774        731,108       106,498  

Share-based compensation

      134,073        345,904       2,560        482,537       70,290  

Amortization of intangible assets from business acquisitions

      —          37,587       —          37,587       5,476  

Tax impacts

      —          (9,397 )      —          (9,397 )      (1,369 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Non-GAAP net income (loss)

      1,283,573        (49,072 )      7,334        1,241,835       180,895  

 

15

Momo Inc.

Unaudited Segment Report

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

 

     Three months  
   ended June 30, 2018  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$2  

Net revenues:

           

Live video service

      2,620,924       —         —         2,620,924       396,083  

Value-added service

      321,614       30,969       —         352,583       53,284  

Mobile marketing

      141,984       —         —         141,984       21,457  

Mobile games

      34,782       —         —         34,782       5,256  

Other services

      453       —         1,805       2,258       341  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      3,119,757       30,969       1,805       3,152,531       476,421  

Cost and expenses (iv):

           

Cost of revenues

      (1,541,843 )      (18,731 )      (159,766 )      (1,720,340 )      (259,984 ) 

Research and development

      (132,044 )      (28,053 )      —         (160,097 )      (24,194 ) 

Sales and marketing

      (275,920 )      (67,703 )      (5,099 )      (348,722 )      (52,700 ) 

General and administrative

      (110,690 )      (14,304 )      (2,671 )      (127,665 )      (19,293 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (2,060,497 )      (128,791 )      (167,536 )      (2,356,824 )      (356,171 ) 

Other operating income

      100,014       61       —         100,075       15,124  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

      1,159,274       (97,761 )      (165,731 )      895,782       135,374  

Interest income

      52,466       64       17       52,547       7,941  

Interest expense

      (12,436 )      —         —         (12,436 )      (1,879 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,199,304       (97,697 )      (165,714 )      935,893       141,436  

Income tax (expenses) benefits

      (201,533 )      2,928       —         (198,605 )      (30,014 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      997,771       (94,769 )      (165,714 )      737,288       111,422  

Share of income on equity method investments

      10,789       —         —         10,789       1,631  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      1,008,560       (94,769 )      (165,714 )      748,077       113,053  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(iv)

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

 

     Three months  
     ended June 30, 2018  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

      5,300        1,946        —          7,246        1,095  

Research and development

      24,559        18,754        —          43,313        6,546  

Sales and marketing

      30,783        3,769        —          34,552        5,222  

General and administrative

      38,997        10,069        —          49,066        7,415  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total cost and expenses

      99,639        34,538        —          134,177        20,278  

 

 

2 

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

 

16

Momo Inc.

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

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

 

     Three months  
     ended June 30, 2018  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Operating income (loss)

      1,159,274        (97,761 )      (165,731 )      895,782       135,374  

Share-based compensation

      99,639        34,538       —         134,177       20,278  

Amortization of intangible assets from business acquisitions

      —          11,715       —         11,715       1,770  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP operating income (loss)

      1,258,913        (51,508 )      (165,731 )      1,041,674       157,422  

Net income (loss)

      1,008,560        (94,769 )      (165,714 )      748,077       113,053  

Share-based compensation

      99,639        34,538       —         134,177       20,278  

Amortization of intangible assets from business acquisitions

      —          11,715       —         11,715       1,770  

Tax impacts

      —          (2,927 )      —         (2,927 )      (442 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income (loss)

      1,108,199        (51,443 )      (165,714 )      891,042       134,659  

 

17

Momo Inc.

Unaudited Segment Report

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

 

     First half year  
   ended June 30, 2019  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

           

Live video service

      5,789,300       —         —         5,789,300       843,307  

Value-added service

      1,272,103       580,140       —         1,852,243       269,810  

Mobile marketing

      156,937       —         —         156,937       22,860  

Mobile games

      62,248       —         —         62,248       9,067  

Other services

      4,009       —         10,812       14,821       2,159  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      7,284,597       580,140       10,812       7,875,549       1,147,203  

Cost and expenses (v):

           

Cost of revenues

      (3,740,710 )      (188,218 )      (8,509 )      (3,937,437 )      (573,552 ) 

Research and development

      (366,139 )      (134,950 )      —         (501,089 )      (72,992 ) 

Sales and marketing

      (719,536 )      (468,549 )      (6,372 )      (1,194,457 )      (173,992 ) 

General and administrative

      (256,648 )      (824,399 )      (22,209 )      (1,103,256 )      (160,707 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (5,083,033 )      (1,616,116 )      (37,090 )      (6,736,239 )      (981,243 ) 

Other operating income

      151,489       —         21,366       172,855       25,179  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

      2,353,053       (1,035,976 )      (4,912 )      1,312,165       191,139  

Interest income

      187,976       5,915       62       193,953       28,252  

Interest expense

      (38,304 )      —         —         (38,304 )      (5,580 ) 

Impairment loss on long-term investments

      (4,500 )      —         —         (4,500 )      (655 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      2,498,225       (1,030,061 )      (4,850 )      1,463,314       213,156  

Income tax (expenses) benefits

      (456,704 )      9,185       —         (447,519 )      (65,188 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      2,041,521       (1,020,876 )      (4,850 )      1,015,795       147,968  

Share of income on equity method investments

      1,871       —         —         1,871       273  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      2,043,392       (1,020,876 )      (4,850 )      1,017,666       148,241  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(v)

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

 

     First half year  
     ended June 30, 2019  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

      8,476        1,157        —          9,633        1,403  

Research and development

      49,300        34,953        —          84,253        12,273  

Sales and marketing

      82,855        7,890        —          90,745        13,218  

General and administrative

      93,726        792,163        5,091        890,980        129,786  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total cost and expenses

      234,357        836,163        5,091        1,075,611        156,680  

 

18

Momo Inc.

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

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

 

     First half year  
     ended June 30, 2019  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Operating income (loss)

      2,353,053        (1,035,976 )      (4,912 )      1,312,165       191,139  

Share-based compensation

      234,357        836,163       5,091       1,075,611       156,680  

Amortization of intangible assets from business acquisitions

      —          74,750       —         74,750       10,889  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP operating income (loss)

      2,587,410        (125,063 )      179       2,462,526       358,708  

Net income (loss)

      2,043,392        (1,020,876 )      (4,850 )      1,017,666       148,241  

Share-based compensation

      234,357        836,163       5,091       1,075,611       156,680  

Amortization of intangible assets from business acquisitions

      —          74,750       —         74,750       10,889  

Tax impacts

      —          (18,688 )      —         (18,688 )      (2,723 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income (loss)

      2,277,749        (128,651 )      241       2,149,339       313,087  

 

19

Momo Inc.

Unaudited Segment Report

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

 

     First half year  
   ended June 30, 2018  
     Momo     Tantan     QOOL     Total     Total  
     RMB     RMB     RMB     RMB     US$  

Net revenues:

           

Live video service

      4,981,038       —         —         4,981,038       752,752  

Value-added service

      556,618       30,969       —         587,587       88,798  

Mobile marketing

      260,842       —         —         260,842       39,419  

Mobile games

      77,010       —         —         77,010       11,638  

Other services

      2,506       —         7,924       10,430       1,576  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

      5,878,014       30,969       7,924       5,916,907       894,183  

Cost and expenses (vi):

           

Cost of revenues

      (2,869,214 )      (18,731 )      (164,035 )      (3,051,980 )      (461,226 ) 

Research and development

      (243,430 )      (28,053 )      —         (271,483 )      (41,027 ) 

Sales and marketing

      (554,710 )      (67,703 )      (8,017 )      (630,430 )      (95,273 ) 

General and administrative

      (217,714 )      (14,304 )      (5,116 )      (237,134 )      (35,837 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total cost and expenses

      (3,885,068 )      (128,791 )      (177,168 )      (4,191,027 )      (633,363 ) 

Other operating income

      106,918       61       —         106,979       16,167  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

      2,099,864       (97,761 )      (169,244 )      1,832,859       276,987  

Interest income

      100,361       64       27       100,452       15,181  

Interest expense

      (12,436 )      —         —         (12,436 )      (1,879 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      2,187,789       (97,697 )      (169,217 )      1,920,875       290,289  

Income tax (expenses) benefits

      (372,462 )      2,928       —         (369,534 )      (55,845 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,815,327       (94,769 )      (169,217 )      1,551,341       234,444  

Share of income on equity method investments

      18,915       —         —         18,915       2,859  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      1,834,242       (94,769 )      (169,217 )      1,570,256       237,303  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(vi)

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

 

     First half year  
     ended June 30, 2018  
     Momo      Tantan      QOOL      Total      Total  
     RMB      RMB      RMB      RMB      US$  

Cost of revenues

      8,337        1,946        —          10,283        1,554  

Research and development

      40,918        18,754        —          59,672        9,018  

Sales and marketing

      51,691        3,769        —          55,460        8,381  

General and administrative

      77,357        10,069        —          87,426        13,212  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total cost and expenses

      178,303        34,538        —          212,841        32,165  

 

20

Momo Inc.

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

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

 

     First half year  
     ended June 30, 2018  
     Momo      Tantan     QOOL     Total     Total  
     RMB      RMB     RMB     RMB     US$  

Operating income (loss)

      2,099,864        (97,761 )      (169,244 )      1,832,859       276,987  

Share-based compensation

      178,303        34,538       —         212,841       32,165  

Amortization of intangible assets from business acquisitions

      —          11,715       —         11,715       1,770  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP operating income (loss)

      2,278,167        (51,508 )      (169,244 )      2,057,415       310,922  

Net income (loss)

      1,834,242        (94,769 )      (169,217 )      1,570,256       237,303  

Share-based compensation

      178,303        34,538       —         212,841       32,165  

Amortization of intangible assets from business acquisitions

      —          11,715       —         11,715       1,770  

Tax impacts

      —          (2,927 )      —         (2,927 )      (442 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income (loss)

      2,012,545        (51,443 )      (169,217 )      1,791,885       270,796  

 

21