Form 6-K

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 March 2020

Commission File Number: 001-36765

Momo Inc.

20^th 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: March 20, 2020

Exhibit Index

Exhibit 99.1—Press Release

EX-99.1

Exhibit 99.1

Momo Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2019

BEIJING, CHINA, March 20, 2020 – Momo Inc. (NASDAQ: MOMO) (“Momo” or the “Company”), a leading mobile social networking platform in China, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2019.

Fourth Quarter of 2019 Highlights

•

Net revenues increased by 22% year over year to RMB4,687.9 million (US$673.4 million^*) in the fourth quarter of 2019.

•

Net income attributable to Momo Inc. increased to RMB1,055.9 million (US$151.7 million) in the fourth quarter of 2019 from RMB660.8 million in the same period of 2018.

•

Non-GAAP net income attributable to Momo Inc. (note 1) increased to RMB1,252.5 million (US$179.9 million) in the fourth quarter of 2019, from RMB887.4 million in the same period of 2018.

•

Diluted net income per American Depositary Share (“ADS”) was RMB4.74 (US$0.68) in the fourth quarter of 2019, compared to RMB3.04 in the same period of 2018.

•

Non-GAAP diluted net income per ADS (note 1) was RMB5.61 (US$0.81) in the fourth quarter of 2019, compared to RMB4.05 in the same period of 2018.

•

Monthly Active Users (“MAU”) on Momo application were 114.5 million in December 2019, compared to 113.3 million in December 2018.

•

Total paying users of our live video service and value-added service, without double counting the overlap and including 4.5 million paying users of Tantan, were 13.8 million for the fourth quarter of 2019, compared to 13.0 million for the fourth quarter of 2018, which included 3.9 million paying users of Tantan.

Full Year 2019 Highlights

•

Net revenues increased 27% year over year to RMB17,015.1 million (US$2,444.1 million) for the full year of 2019.

•

Net income attributable to Momo Inc. was RMB2,970.9 million (US$426.7 million) for the full year of 2019, compared with RMB2,815.8 million for 2018.

•

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB4,493.3 million (US$645.4 million) for the full year of 2019, compared with RMB3,462.1 million for 2018.

•

Diluted net income per ADS was RMB13.52 (US$1.94) for the full year of 2019, compared with RMB13.18 for 2018.

•

Non-GAAP diluted net income per ADS (note 1) was RMB20.26 (US$2.91) for the full year of 2019, compared with RMB16.17 for 2018.

“2019 was a fruitful year, with total net revenue up by 27%, net income up by 6% and Non-GAAP net income up by 30%. The strong financial performance is a testament of the competence of our team,” commented Yan Tang, Chairman and CEO of Momo. “Looking into the year 2020, we are going to continue to focus on enhancing user experience and drive product innovations in order to capture the many growth opportunities ahead of us.”

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 RMB6.9618 to US$1.00, the effective noon buying rate for December 31, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

Fourth Quarter of 2019 Financial Results

Net revenues

Total net revenues were RMB4,687.9 million (US$673.4 million) in the fourth quarter of 2019, an increase of 22% from RMB3,843.9 million in the fourth quarter of 2018.

Live video service revenues were RMB3,383.5 million (US$486.0 million) in the fourth quarter of 2019, an increase of 14% from RMB2,959.2 million during the same period of 2018, as a result of the effective growth strategy to apply different products and operational efforts for different cohorts of users.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,189.1 million (US$170.8 million) in the fourth quarter of 2019, an increase of 65% from RMB722.4 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 functions launched and more paying scenarios introduced to enhance the social experience of Momo users, and to a lesser extent, the increase in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB93.0 million (US$13.4 million) in the fourth quarter of 2019, a decrease of 24% from RMB122.1 million during the same period of 2018. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers and the decrease in advertisement properties on Momo’s platform.

Mobile games revenues were RMB14.4 million (US$2.1 million) in the fourth quarter of 2019, a decrease of 43% from RMB25.5 million in the fourth quarter of 2018. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Net revenues from Momo segment increased from RMB3,609.3 million in the fourth quarter of 2018 to RMB4,317.3 million (US$620.1 million) in the fourth 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 RMB223.0 million in the fourth quarter of 2018 to RMB369.8 million (US$53.1million) in the fourth quarter of 2019, which was mainly due to the increase in the number of paying users of Tantan.

Cost and expenses

Cost and expenses were RMB3,581.1 million (US$514.4 million) in the fourth quarter of 2019, an increase of 12% from RMB3,195.7 million in the fourth quarter of 2018. The increase was primarily attributable to: (a) an increase in revenue sharing with broadcasters related to our live video service and virtual gift recipients; (b) an increase in marketing and promotional expenses to attract users on both Momo and Tantan platforms and to promote our live video services; (c) 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 a television program.

Non-GAAP cost and expenses (note 1) were RMB3,374.9 million (US$484.8 million) in the fourth quarter of 2019, an increase of 14% from RMB2,959.6 million during the same period of 2018.

Other operating income

Other operating income was RMB142.6 million (US$20.5 million) in the fourth quarter of 2019, an increase from RMB141.4 million during the fourth quarter of 2018. The other operating income mainly consisted of government incentives.

Income from operations

Income from operations was RMB1,249.4 million (US$179.5 million) in the fourth quarter of 2019, compared to RMB789.6 million during the same period of 2018. Income from operations of Momo segment was RMB1,458.5 million (US$209.5 million) in the fourth quarter of 2019, increasing from RMB1,092.6 million in the fourth quarter of 2018. Loss from operations of Tantan segment was RMB202.7 million (US$29.1 million) in the fourth quarter of 2019, compared to loss from operations of RMB219.9 million in the fourth quarter of 2018.

Non-GAAP income from operations (note 1) was RMB1,455.7 million (US$209.1 million) in the fourth quarter of 2019, compared to RMB1,025.7 million during the same period of 2018. Non-GAAP income from operations of Momo segment was RMB1,593.9 million (US$229.0 million) in the fourth quarter of 2019, increasing from RMB1,200.8 million in the fourth quarter of 2018. Non-GAAP loss from operations of Tantan segment was RMB135.0 million (US$19.4 million) in the fourth quarter of 2019, compared to non-GAAP loss from operations of RMB92.6 million in the fourth quarter of 2018.

Income tax expenses

Income tax expenses were RMB253.7 million (US$36.4 million) in the fourth quarter of 2019, increasing from RMB183.3 million in the fourth quarter of 2018. The increase was mainly because we generated higher profit in the fourth quarter of 2019.

Net income

Net income was RMB1,052.3 million (US$151.2 million) in the fourth quarter of 2019, compared to RMB646.4 million during the same period of 2018. Net income from Momo segment was RMB1,246.9 million (US$179.1 million) in the fourth quarter of 2019, increasing from RMB940.5 million in the fourth quarter of 2018. Net loss from Tantan segment was RMB188.2 million (US$27.0 million) in the fourth quarter of 2019, compared to net loss of RMB206.4 million in the fourth quarter of 2018.

Non-GAAP net income (note 1) was RMB1,248.9 million (US$179.4 million) in the fourth quarter of 2019, compared to RMB873.0 million during the same period of 2018. Non-GAAP net income from Momo segment was RMB1,382.3 million (US$198.6 million) in the fourth quarter of 2019, increasing from RMB1,048.7 million in the fourth quarter of 2018. Non-GAAP net loss of Tantan segment was RMB130.2 million (US$18.7 million) in the fourth quarter of 2019, compared to non-GAAP net loss of RMB88.5 million in the fourth quarter of 2018.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB1,055.9 million (US$151.7 million) in the fourth quarter of 2019, compared to RMB660.8 million during the same period of 2018.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB1,252.5 million (US$179.9 million) in the fourth quarter of 2019, compared to RMB887.4 million during the same period of 2018.

Net income per ADS

Diluted net income per ADS was RMB4.74 (US$0.68) in the fourth quarter of 2019, compared to RMB3.04 in the fourth quarter of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB5.61 (US$0.81) in the fourth quarter of 2019, compared to RMB4.05 in the fourth quarter of 2018.

Cash and cash flow

As of December 31, 2019, Momo’s cash, cash equivalents and term deposits totaled RMB14,925.3 million (US$2,143.9 million), compared to RMB11,292.6 million as of December 31, 2018. Net cash provided by operating activities in the fourth quarter of 2019 was RMB1,675.1 million (US$240.6 million), compared to RMB1,163.4 million in the fourth quarter of 2018.

Full Year 2019 Financial Results

Net revenues for the full year of 2019 were RMB17,015.1 million (US$2,444.1 million), an increase of 27% from RMB13,408.4 million in the same period of 2018, primarily driven by the significant increase in net revenues from live video service and value-added service.

Net income attributable to Momo Inc. was RMB2,970.9 million (US$426.7 million) for the full year of 2019, compared to RMB2,815.8 million during the same period of 2018.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB4,493.3 million (US$645.4 million) for the full year of 2019, compared to RMB3,462.1 million during the same period of 2018.

Diluted net income per ADS was RMB13.52 (US$1.94) during the full year of 2019, compared to RMB13.18 in the same period of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB20.26 (US$2.91) during the full year of 2019, compared to RMB16.17 in the same period of 2018.

Net cash provided by operating activities was RMB5,448.9 million (US$782.7 million) during the full year of 2019, compared to RMB3,327.7 million in the same period of 2018.

Recent Development - Declaration of Special Cash Dividend

Momo’s board of directors has declared a special cash dividend in the amount of US$0.76 per ADS, or US$0.38 per ordinary share. The cash dividend will be paid on April 30, 2020 to shareholders of record at the close of business on April 8, 2020. The ex-dividend date will be April 7, 2020. The aggregate amount of cash dividends to be paid is approximately US$161 million, which will be funded by surplus cash on the Company’s balance sheet.

Business Outlook

For the first quarter of 2020, the Company expects total net revenues to be between RMB3.45 billion to RMB3.55 billion, representing a decrease of 7.3% to 4.6% year over year. This forecast considers the potential impact of the COVID-19 outbreak and reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change, particularly as to the potential impact of the COVID-19 on the economy in China.

Note 1: Non-GAAP measures

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

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

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

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

Conference Call

Momo’s management will host an earnings conference call on Thursday, March 19, 2020, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 19, 2020).

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 8:00 a.m. U.S. Eastern Time, March 26, 2020. The dial-in details for the replay are as follows:

International: +61-2-8199-0299

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

Passcode: 3264508

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

About Momo

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

For investor and media inquiries, please contact:

Momo Inc.

Investor Relations

Phone: +86-10-5731-0538

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 first quarter of 2020.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the fourth quarter and full year of 2019 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2020 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, our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers, and the impact of the COVID-19 to Momo’s business operations and the economy in China. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

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

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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


	Three months									Year
	ended December 31									ended December 31
	2018			2019			2019			2018			2019			2019
	RMB			RMB			US$			RMB			RMB			US$
Net revenues:
Live video service		2,959,222			3,383,477			486,006			10,709,491			12,448,131			1,788,062
Value-added service		722,414			1,189,114			170,806			1,883,150			4,105,963			589,785
Mobile marketing		122,143			92,991			13,357			500,321			331,822			47,663
Mobile games		25,502			14,418			2,071			130,392			92,451			13,280
Other services		14,635			7,898			1,134			185,067			36,722			5,275

Total net revenues		3,843,916			4,687,898			673,374			13,408,421			17,015,089			2,444,065
Cost and expenses:
Cost of revenues		(2,099,265	)		(2,351,309	)		(337,744	)		(7,182,897	)		(8,492,096	)		(1,219,813	)
Research and development		(243,499	)		(292,188	)		(41,970	)		(760,644	)		(1,095,031	)		(157,291	)
Sales and marketing		(618,268	)		(725,029	)		(104,144	)		(1,812,262	)		(2,690,824	)		(386,513	)
General and administrative		(234,700	)		(212,603	)		(30,539	)		(640,023	)		(1,527,282	)		(219,380	)

Total cost and expenses		(3,195,732	)		(3,581,129	)		(514,397	)		(10,395,826	)		(13,805,233	)		(1,982,997	)
Other operating income		141,420			142,646			20,490			253,697			344,843			49,534

Income from operations		789,604			1,249,415			179,467			3,266,292			3,554,699			510,602
Interest income		89,766			108,205			15,543			272,946			407,542			58,540
Interest expense		(19,646	)		(20,190	)		(2,900	)		(56,503	)		(78,611	)		(11,292	)
Impairment loss on long-term investments		(43,200	)		—			—			(43,200	)		(15,711	)		(2,257	)

Income before income tax and share of income on equity method investments		816,524			1,337,430			192,110			3,439,535			3,867,919			555,593
Income tax expenses		(183,338	)		(253,704	)		(36,442	)		(699,648	)		(883,801	)		(126,950	)

Income before share of income on equity method investments		633,186			1,083,726			155,668			2,739,887			2,984,118			428,643
Share of income (loss) on equity method investments		13,221			(31,406	)		(4,511	)		48,660			(23,350	)		(3,354	)

Net income		646,407			1,052,320			151,157			2,788,547			2,960,768			425,289

Less: net loss attributable to non-controlling interest		(14,430	)		(3,579	)		(514	)		(27,228	)		(10,122	)		(1,454	)

Net income attributable to Momo Inc.		660,837			1,055,899			151,671			2,815,775			2,970,890			426,743

Net income per share attributable to ordinary shareholders
Basic		1.60			2.53			0.36			6.92			7.15			1.03
Diluted		1.52			2.37			0.34			6.59			6.76			0.97
Weighted average shares used in calculating net income per ordinary share
Basic		413,732,538			416,878,784			416,878,784			407,009,875			415,316,627			415,316,627
Diluted		447,773,521			453,937,852			453,937,852			433,083,643			451,206,091			451,206,091

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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


	Three months									Year
	ended December 31									ended December 31
	2018			2019			2019			2018			2019			2019
	RMB			RMB			US$			RMB			RMB			US$
Net income		646,407			1,052,320			151,157			2,788,547			2,960,768			425,289
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment		5,171			(39,524	)		(5,677	)		198,654			(8,835	)		(1,269	)

Comprehensive income		651,578			1,012,796			145,480			2,987,201			2,951,933			424,020
Less: comprehensive loss attributed to the non-controlling interest		(14,535	)		(8,637	)		(1,241	)		(24,613	)		(8,081	)		(1,161	)

Comprehensive income attributable to Momo Inc.		666,113			1,021,433			146,721			3,011,814			2,960,014			425,181

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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


	December 31 2018 RMB		December 31 2019 RMB		December 31 2019 US$
Assets
Current assets
Cash and cash equivalents		2,468,034		2,612,743		375,297
Term deposits		8,824,610		12,312,585		1,768,592
Accounts receivable, net of allowance for doubtful accounts of RMB nil and RMB12,209 as of December 31, 2018 and 2019, respectively		719,606		265,155		38,087
Amounts due from a related party		—		4,382		629
Prepaid expenses and other current assets		620,979		599,000		86,041

Total current assets		12,633,229		15,793,865		2,268,646
Long-term deposit		—		300,000		43,092
Right-of-use assets, net¹		—		190,552		27,371
Property and equipment, net		387,532		346,345		49,749
Intangible assets		1,036,986		890,303		127,884
Rental deposits		24,192		25,028		3,595
Long-term investments		447,465		495,905		71,232
Deferred tax assets		57,786		37,064		5,324
Other non-current assets		71,519		44,009		6,322
Goodwill		4,306,829		4,360,610		626,362

Total assets		18,965,538		22,483,681		3,229,577

Liabilities and equity
Current liabilities
Accounts payable		718,362		714,323		102,604
Deferred revenue		441,892		503,461		72,318
Accrued expenses and other current liabilities		846,710		985,873		141,611
Amount due to related parties		82,948		29,606		4,253
Lease liabilities due within one year¹		—		135,169		19,416
Income tax payable		137,090		153,976		22,117
Deferred consideration in connection with business acquisitions		469,274		84,346		12,116

Total current liabilities		2,696,276		2,606,754		374,435
Deferred tax liabilities		259,247		222,576		31,971
Convertible senior notes		4,877,116		4,954,352		711,648
Share-based compensation liability		86,767		902,047		129,571
Lease liabilities¹		—		56,498		8,115
Other non-current liabilities		23,273		22,672		3,257

Total liabilities		7,942,679		8,764,899		1,258,997
Shareholder’s equity (i)		11,022,859		13,718,782		1,970,580

Total liabilities and shareholder’s equity		18,965,538		22,483,681		3,229,577

(i): As of December 31, 2019, the number of ordinary shares issued and outstanding was 417,279,310.

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

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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


	Three months									Year
	ended December 31									ended December 31
	2018			2019			2019			2018			2019			2019
	RMB			RMB			US$			RMB			RMB			US$
Cash flows from operating activities:
Net income		646,407			1,052,320			151,157			2,788,547			2,960,768			425,289
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment		42,244			51,385			7,381			148,238			198,237			28,475
Amortization of intangible assets		39,522			40,239			5,780			93,030			157,954			22,689
Share-based compensation		198,013			167,458			24,054			580,813			1,408,232			202,279
Share of (income) loss on equity method investments		(13,221	)		31,406			4,511			(48,660	)		23,350			3,354
Impairment loss on long-term investments		43,200			—			—			43,200			15,711			2,257
Income on disposal of property and equipment		(44	)		—			—			(1,283	)		(398	)		(57	)
Provision of allowance for doubtful accounts		—			—			—			(585	)		12,209			1,754
Changes in operating assets and liabilities:
Accounts receivable		(84,973	)		110,340			15,849			(440,644	)		442,176			63,515
Prepaid expenses and other current assets		14,190			49,554			7,118			(67,304	)		26,372			3,788
Amount due from related parties		56			(2,776	)		(399	)		33,463			(4,382	)		(629	)
Rental deposits		(4,062	)		(474	)		(68	)		(3,817	)		(836	)		(120	)
Deferred tax assets		(39,874	)		(2,582	)		(371	)		(10,961	)		20,722			2,977
Other non-current assets		(670	)		(3,411	)		(490	)		(45,534	)		(24,022	)		(3,451	)
Accounts payable		(18,987	)		98,021			14,080			233,713			52,246			7,505
Income tax payable		81,097			39,938			5,737			(38,791	)		16,886			2,426
Deferred revenue		12,470			6,852			984			(14,249	)		61,641			8,854
Accrued expenses and other current liabilities		235,104			75,791			10,887			51,903			212,349			30,502
Amount due to related parties		25,349			235			34			43,024			(53,032	)		(7,618	)
Deferred tax liability		(9,547	)		(10,060	)		(1,445	)		(22,923	)		(45,382	)		(6,519	)
Other non-current liabilities		(2,915	)		(29,153	)		(4,188	)		6,538			(31,915	)		(4,584	)

Net cash provided by operating activities		1,163,359			1,675,083			240,611			3,327,718			5,448,886			782,686
Cash flows from investing activities:
Purchase of property and equipment		(81,243	)		(32,109	)		(4,612	)		(242,843	)		(186,522	)		(26,792	)
Proceeds from disposal of property and equipment		4			4			1			2,214			808			116
Payment for long-term investments		(3,000	)		(21,500	)		(3,088	)		(65,125	)		(64,500	)		(9,265	)
Prepayment of long-term investments		(8,000	)		—			—			(55,000	)		(15,000	)		(2,155	)
Payment for business acquisition, net of cash acquired		(40,632	)		—			—			(3,318,841	)		—			—
Purchase of term deposits		(5,300,000	)		(7,650,000	)		(1,098,854	)		(20,287,302	)		(22,151,135	)		(3,181,811	)
Cash received on maturity of term deposits		4,600,000			6,036,000			867,017			13,922,393			18,686,430			2,684,138
Payment for short-term investments		(103,000	)		(80,000	)		(11,491	)		(457,200	)		(360,000	)		(51,711	)
Cash received from sales of short-term investment		218,000			120,000			17,237			467,700			360,000			51,711
Purchase of long-term deposits		—			(300,000	)		(43,092	)		—			(300,000	)		(43,092	)

Net cash used in investing activities		(717,871	)		(1,927,605	)		(276,882	)		(10,034,004	)		(4,029,919	)		(578,861	)
Cash flows from financing activities:
Proceeds from exercise of options		1			1			—			5,313			187			27
Deferred payment of purchase of property and equipment		(157	)		(127	)		(18	)		(8,562	)		(17,114	)		(2,458	)
Capital contribution from non-controlling interest shareholder		12			—			—			12			—			—
Dividends payment		—			—			—			—			(877,346	)		(126,023	)
Proceeds from bank loan		—			—			—			1,913,190			—			—
Repayment of bank loan		—			—			—			(2,041,680	)		—			—
Deferred payment for business acquisition		—			—			—			—			(379,507	)		(54,513	)
Proceeds from issuance of Convertible Senior Notes, net of issuance cost of RMB113,673		—			—			—			4,820,387			—			—
Payment of issuance cost of convertible notes		(709	)		—			—			(709	)		—			—

Net cash (used in) provided by financing activities		(853	)		(126	)		(18	)		4,687,951			(1,273,780	)		(182,967	)
Effect of exchange rate changes		1,439			(5,532	)		(796	)		24,175			(478	)		(72	)

Net increase (decrease) in cash, cash equivalents, and restricted cash		446,074			(258,180	)		(37,085	)		(1,994,160	)		144,709			20,786
Cash, cash equivalents, and restricted cash at beginning of period		2,021,960			2,870,923			412,382			4,462,194			2,468,034			354,511

Cash, cash equivalents, and restricted cash at end of period		2,468,034			2,612,743			375,297			2,468,034			2,612,743			375,297

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

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


	Three months													Three months													Three months
	ended December 31, 2018													ended December 31, 2019													ended December 31, 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		(2,099,265	)		18,471		5,498		—			(2,075,296	)		(2,351,309	)		18,818		7,601		—			(2,324,890	)		(337,744	)		2,703		1,092		—			(333,949	)
Research and development		(243,499	)		2,345		47,215		—			(193,939	)		(292,188	)		2,390		45,455		—			(244,343	)		(41,970	)		343		6,529		—			(35,098	)
Sales and marketing		(618,268	)		17,273		43,707		—			(557,288	)		(725,029	)		17,598		53,466		—			(653,965	)		(104,144	)		2,528		7,680		—			(93,936	)
General and administrative		(234,700	)		—		101,593		—			(133,107	)		(212,603	)		—		60,936		—			(151,667	)		(30,539	)		—		8,753		—			(21,786	)

Cost and operating expenses		(3,195,732	)		38,089		198,013		—			(2,959,630	)		(3,581,129	)		38,806		167,458		—			(3,374,865	)		(514,397	)		5,574		24,054		—			(484,769	)
Income from operations		789,604			38,089		198,013		—			1,025,706			1,249,415			38,806		167,458		—			1,455,679			179,467			5,574		24,054		—			209,095
Net income attributable to Momo Inc.		660,837			38,089		198,013		(9,522	)		887,417			1,055,899			38,806		167,458		(9,701	)		1,252,462			151,671			5,574		24,054		(1,394	)		179,905

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.


	Year													Year													Year
	ended December 31, 2018													ended December 31, 2019													ended December 31, 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		(7,182,897	)		42,336		21,661		—			(7,118,900	)		(8,492,096	)		73,817		23,972		—			(8,394,307	)		(1,219,813	)		10,603		3,443		—			(1,205,767	)
Research and development		(760,644	)		5,375		152,806		—			(602,463	)		(1,095,031	)		9,375		175,053		—			(910,603	)		(157,291	)		1,347		25,145		—			(130,799	)
Sales and marketing		(1,812,262	)		39,589		142,927		—			(1,629,746	)		(2,690,824	)		69,031		196,311		—			(2,425,482	)		(386,513	)		9,916		28,198		—			(348,399	)
General and administrative		(640,023	)		—		263,419		—			(376,604	)		(1,527,282	)		—		1,012,896		—			(514,386	)		(219,380	)		—		145,493		—			(73,887	)

Cost and operating expenses		(10,395,826	)		87,300		580,813		—			(9,727,713	)		(13,805,233	)		152,223		1,408,232		—			(12,244,778	)		(1,982,997	)		21,866		202,279		—			(1,758,852	)
Income from operations		3,266,292			87,300		580,813		—			3,934,405			3,554,699			152,223		1,408,232		—			5,115,154			510,602			21,866		202,279		—			734,747
Net income attributable to Momo Inc.		2,815,775			87,300		580,813		(21,823	)		3,462,065			2,970,890			152,223		1,408,232		(38,056	)		4,493,289			426,743			21,866		202,279		(5,466	)		645,422

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

Momo Inc.

Unaudited Segment Report

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


	Three months
	ended December 31, 2019
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$
Net revenues:
Live video service		3,383,477			—			—			3,383,477			486,006
Value-added service		819,325			369,789			—			1,189,114			170,806
Mobile marketing		92,991			—			—			92,991			13,357
Mobile games		14,418			—			—			14,418			2,071
Other services		7,111			—			787			7,898			1,134

Total net revenues		4,317,322			369,789			787			4,687,898			673,374
Cost and expenses (iii):
Cost of revenues		(2,222,912	)		(127,748	)		(649	)		(2,351,309	)		(337,744	)
Research and development		(205,793	)		(86,395	)		—			(292,188	)		(41,970	)
Sales and marketing		(379,940	)		(345,089	)		—			(725,029	)		(104,144	)
General and administrative		(192,789	)		(13,275	)		(6,539	)		(212,603	)		(30,539	)

Total cost and expenses		(3,001,434	)		(572,507	)		(7,188	)		(3,581,129	)		(514,397	)
Other operating income		142,613			—			33			142,646			20,490

Income (loss) from operations		1,458,501			(202,718	)		(6,368	)		1,249,415			179,467
Interest income		105,947			2,197			61			108,205			15,543
Interest expense		(20,190	)		—			—			(20,190	)		(2,900	)

Income (loss) before income tax and share of income on equity method investments		1,544,258			(200,521	)		(6,307	)		1,337,430			192,110
Income tax (expenses) benefits		(265,981	)		12,277			—			(253,704	)		(36,442	)

Income (loss) before share of income on equity method investments		1,278,277			(188,244	)		(6,307	)		1,083,726			155,668
Share of loss on equity method investments		(31,406	)		—			—			(31,406	)		(4,511	)

Net income (loss)		1,246,871			(188,244	)		(6,307	)		1,052,320			151,157

(iii)

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


	Three months
	ended December 31, 2019
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		6,000		1,601		—		7,601		1,092
Research and development		26,980		18,475		—		45,455		6,529
Sales and marketing		45,971		7,495		—		53,466		7,680
General and administrative		56,467		1,384		3,085		60,936		8,753

Total cost and expenses		135,418		28,955		3,085		167,458		24,054

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 December 31, 2019
	Momo		Tantan			QOOL			Total			Total
	RMB		RMB			RMB			RMB			US$
Operating income (loss)		1,458,501		(202,718	)		(6,368	)		1,249,415			179,467
Share-based compensation		135,418		28,955			3,085			167,458			24,054
Amortization of intangible assets from business acquisitions		—		38,806			—			38,806			5,574

Non-GAAP operating income (loss)		1,593,919		(134,957	)		(3,283	)		1,455,679			209,095
Net income (loss)		1,246,871		(188,244	)		(6,307	)		1,052,320			151,157
Share-based compensation		135,418		28,955			3,085			167,458			24,054
Amortization of intangible assets from business acquisitions		—		38,806			—			38,806			5,574
Tax impacts		—		(9,701	)		—			(9,701	)		(1,394	)

Non-GAAP net income (loss)		1,382,289		(130,184	)		(3,222	)		1,248,883			179,391

Momo Inc.

Unaudited Segment Report

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


	Three months
	ended December 31, 2018
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$²
Net revenues:
Live video service		2,959,222			—			—			2,959,222			430,401
Value-added service		499,446			222,968			—			722,414			105,071
Mobile marketing		122,143			—			—			122,143			17,765
Mobile games		25,502			—			—			25,502			3,709
Other services		2,970			—			11,665			14,635			2,128

Total net revenues		3,609,283			222,968			11,665			3,843,916			559,074
Cost and expenses (iv):
Cost of revenues		(1,960,632	)		(82,758	)		(55,875	)		(2,099,265	)		(305,325	)
Research and development		(202,486	)		(41,013	)		—			(243,499	)		(35,415	)
Sales and marketing		(363,798	)		(251,286	)		(3,184	)		(618,268	)		(89,923	)
General and administrative		(130,062	)		(67,935	)		(36,703	)		(234,700	)		(34,136	)

Total cost and expenses		(2,656,978	)		(442,992	)		(95,762	)		(3,195,732	)		(464,799	)
Other operating income		140,269			85			1,066			141,420			20,569

Income (loss) from operations		1,092,574			(219,939	)		(83,031	)		789,604			114,844
Interest income		85,694			4,049			23			89,766			13,056
Interest expense		(19,646	)		—			—			(19,646	)		(2,857	)
Impairment loss on long-term investments		(43,200	)		—			—			(43,200	)		(6,283	)

Income (loss) before income tax and share of income on equity method investments		1,115,422			(215,890	)		(83,008	)		816,524			118,760
Income tax (expenses) benefits		(188,117	)		9,522			(4,743	)		(183,338	)		(26,665	)

Income (loss) before share of income on equity method investments		927,305			(206,368	)		(87,751	)		633,186			92,095
Share of income on equity method investments		13,221			—			—			13,221			1,923

Net income (loss)		940,526			(206,368	)		(87,751	)		646,407			94,018

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


	Three months
	ended December 31, 2018
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		4,126		1,372		—		5,498		800
Research and development		24,067		23,148		—		47,215		6,867
Sales and marketing		37,718		5,989		—		43,707		6,357
General and administrative		42,271		58,756		566		101,593		14,776

Total cost and expenses		108,182		89,265		566		198,013		28,800

²	All translations from RMB to U.S. dollars are made at a rate of RMB 6.8755 to US$1.00, the effective noon buying rate for December 31, 2018 as set forth in the H.10 statistical release of the Federal Reserve Board.

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 December 31, 2018
	Momo		Tantan			QOOL			Total			Total
	RMB		RMB			RMB			RMB			US$
Operating income (loss)		1,092,574		(219,939	)		(83,031	)		789,604			114,844
Share-based compensation		108,182		89,265			566			198,013			28,800
Amortization of intangible assets from business acquisitions		—		38,089			—			38,089			5,539

Non-GAAP operating income (loss)		1,200,756		(92,585	)		(82,465	)		1,025,706			149,183
Net income (loss)		940,526		(206,368	)		(87,751	)		646,407			94,018
Share-based compensation		108,182		89,265			566			198,013			28,800
Amortization of intangible assets from business acquisitions		—		38,089			—			38,089			5,539
Tax impacts		—		(9,522	)		—			(9,522	)		(1,385	)

Non-GAAP net income (loss)		1,048,708		(88,536	)		(87,185	)		872,987			126,972

Momo Inc.

Unaudited Segment Report

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


	Year
	ended December 31, 2019
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$
Net revenues:
Live video service		12,448,131			—			—			12,448,131			1,788,062
Value-added service		2,846,057			1,259,906			—			4,105,963			589,785
Mobile marketing		331,822			—			—			331,822			47,663
Mobile games		92,451			—			—			92,451			13,280
Other services		22,354			—			14,368			36,722			5,275

Total net revenues		15,740,815			1,259,906			14,368			17,015,089			2,444,065
Cost and expenses (v):
Cost of revenues		(8,065,300	)		(415,688	)		(11,108	)		(8,492,096	)		(1,219,813	)
Research and development		(797,471	)		(297,560	)		—			(1,095,031	)		(157,291	)
Sales and marketing		(1,521,511	)		(1,162,912	)		(6,401	)		(2,690,824	)		(386,513	)
General and administrative		(641,269	)		(851,099	)		(34,914	)		(1,527,282	)		(219,380	)

Total cost and expenses		(11,025,551	)		(2,727,259	)		(52,423	)		(13,805,233	)		(1,982,997	)
Other operating income		323,444			—			21,399			344,843			49,534

Income (loss) from operations		5,038,708			(1,467,353	)		(16,656	)		3,554,699			510,602
Interest income		396,672			10,706			164			407,542			58,540
Interest expense		(78,611	)		—			—			(78,611	)		(11,292	)
Impairment loss on long-term investments		(15,711	)		—			—			(15,711	)		(2,257	)

Income (loss) before income tax and share of income on equity method investments		5,341,058			(1,456,647	)		(16,492	)		3,867,919			555,593
Income tax (expenses) benefits		(917,265	)		33,464			—			(883,801	)		(126,950	)

Income (loss) before share of income on equity method investments		4,423,793			(1,423,183	)		(16,492	)		2,984,118			428,643
Share of income on equity method investments		(23,350	)		—			—			(23,350	)		(3,354	)

Net income (loss)		4,400,443			(1,423,183	)		(16,492	)		2,960,768			425,289

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


	Year
	ended December 31, 2019
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		20,393		3,579		—		23,972		3,443
Research and development		103,655		71,398		—		175,053		25,145
Sales and marketing		175,657		20,654		—		196,311		28,198
General and administrative		207,053		795,033		10,810		1,012,896		145,493

Total cost and expenses		506,758		890,664		10,810		1,408,232		202,279

Momo Inc.

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

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


	Year
	ended December 31, 2019
	Momo		Tantan			QOOL			Total			Total
	RMB		RMB			RMB			RMB			US$
Operating income (loss)		5,038,708		(1,467,353	)		(16,656	)		3,554,699			510,602
Share-based compensation		506,758		890,664			10,810			1,408,232			202,279
Amortization of intangible assets from business acquisitions		—		152,223			—			152,223			21,866

Non-GAAP operating income (loss)		5,545,466		(424,466	)		(5,846	)		5,115,154			734,747
Net income (loss)		4,400,443		(1,423,183	)		(16,492	)		2,960,768			425,289
Share-based compensation		506,758		890,664			10,810			1,408,232			202,279
Amortization of intangible assets from business acquisitions		—		152,223			—			152,223			21,866
Tax impacts		—		(38,056	)		—			(38,056	)		(5,466	)

Non-GAAP net income (loss)		4,907,201		(418,352	)		(5,682	)		4,483,167			643,968

Momo Inc.

Unaudited Segment Report

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


	Year
	ended December 31, 2018
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$
Net revenues:
Live video service		10,709,491			—			—			10,709,491			1,557,631
Value-added service		1,465,152			417,998			—			1,883,150			273,893
Mobile marketing		500,321			—			—			500,321			72,769
Mobile games		130,392			—			—			130,392			18,965
Other services		7,065			—			178,002			185,067			26,916

Total net revenues		12,812,421			417,998			178,002			13,408,421			1,950,174
Cost and expenses (vi):
Cost of revenues		(6,572,954	)		(174,858	)		(435,085	)		(7,182,897	)		(1,044,709	)
Research and development		(614,064	)		(146,580	)		—			(760,644	)		(110,631	)
Sales and marketing		(1,269,493	)		(520,161	)		(22,608	)		(1,812,262	)		(263,583	)
General and administrative		(472,057	)		(121,887	)		(46,079	)		(640,023	)		(93,087	)

Total cost and expenses		(8,928,568	)		(963,486	)		(503,772	)		(10,395,826	)		(1,512,010	)
Other operating income		252,458			173			1,066			253,697			36,899

Income (loss) from operations		4,136,311			(545,315	)		(324,704	)		3,266,292			475,063
Interest income		268,583			4,285			78			272,946			39,698
Interest expense		(56,503	)		—			—			(56,503	)		(8,218	)
Impairment loss on long-term investments		(43,200	)		—			—			(43,200	)		(6,283	)

Income (loss) before income tax and share of income on equity method investments		4,305,191			(541,030	)		(324,626	)		3,439,535			500,260
Income tax (expenses) benefits		(716,729	)		21,824			(4,743	)		(699,648	)		(101,760	)

Income (loss) before share of income on equity method investments		3,588,462			(519,206	)		(329,369	)		2,739,887			398,500
Share of income on equity method investments		48,660			—			—			48,660			7,077

Net income (loss)		3,637,122			(519,206	)		(329,369	)		2,788,547			405,577

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


	Year
	ended December 31, 2018
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		16,240		5,421		—		21,661		3,150
Research and development		89,811		62,995		—		152,806		22,225
Sales and marketing		129,004		13,923		—		142,927		20,788
General and administrative		163,440		99,413		566		263,419		38,313

Total cost and expenses		398,495		181,752		566		580,813		84,476

Momo Inc.

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

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


	Year
	ended December 31, 2018
	Momo		Tantan			QOOL			Total			Total
	RMB		RMB			RMB			RMB			US$
Operating income (loss)		4,136,311		(545,315	)		(324,704	)		3,266,292			475,063
Share-based compensation		398,495		181,752			566			580,813			84,476
Amortization of intangible assets from business acquisitions		—		87,300			—			87,300			12,698

Non-GAAP operating income (loss)		4,534,806		(276,263	)		(324,138	)		3,934,405			572,237
Net income (loss)		3,637,122		(519,206	)		(329,369	)		2,788,547			405,577
Share-based compensation		398,495		181,752			566			580,813			84,476
Amortization of intangible assets from business acquisitions		—		87,300			—			87,300			12,698
Tax impacts		—		(21,823	)		—			(21,823	)		(3,174	)

Non-GAAP net income (loss)		4,035,617		(271,977	)		(328,803	)		3,434,837			499,577