Momo Announces Unaudited Financial Results for the First Quarter of 2019

|PR Newswire|About: MOMO

BEIJING, May 28, 2019 /PRNewswire/ -- Momo Inc. (MOMO) ("Momo" or the "Company"), a leading mobile social networking platform in China, today announced its unaudited financial results for the first quarter of 2019.

First Quarter of 2019 Highlights

  • Net revenues increased 35% year over year to RMB3,722.9 million (US$554.7 million*) in the first quarter of 2019.
  • Net income attributable to Momo Inc. decreased to RMB289.3 million (US$43.1 million) in the first quarter of 2019 from RMB825.2 million in the same period of 2018, which was mainly due to the fact that we recognized a total share-based compensation expense of RMB593.1 million (US$88.4 million) in the first quarter of 2019 including a share-based compensation expense of RMB466.9 million (US$69.6 million) regarding to certain share options granted to Tantan's founders, while the total share-based compensation expense recognized in the same period of 2018 was only RMB78.7 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 first quarter of 2019, we determined that it became probable that the performance condition will be met and accordingly, recognized a share-based compensation expense of RMB466.9 million (US$69.6 million) related to those options.
  • Non-GAAP net income attributable to Momo Inc. (note 1) increased slightly to RMB910.3 million (US$135.6 million) in the first quarter of 2019 from RMB903.8 million in the same period of 2018.
  • Diluted net income per American Depositary Share ("ADS") was RMB1.36 (US$0.20) in the first quarter of 2019, compared to RMB3.98 in the same period of 2018.
  • Non-GAAP diluted net income per ADS (note 1) was RMB4.15 (US$0.62) in the first quarter of 2019, compared to RMB4.36 in the same period of 2018.
  • Monthly Active Users ("MAU") on Momo application were 114.4 million in March 2019, compared to 103.3 million in March 2018.
  • Total paying users of our live video service and value-added service, without double counting the overlap, including 5.0 million paying users of Tantan Limited ("Tantan"), were 14.0 million for the first quarter of 2019, compared to 8.1 million for the first quarter of 2018.

"Q1 was a solid quarter and a good start to the year 2019," commented Yan Tang, Chairman and CEO of Momo. "We have started to implement the strategies that we laid out at the beginning of the year. Some of the initiatives we took on the product and operational fronts have already generated good results in driving business growth. We will continue to execute against the strategic priorities and create value for our shareholders."

* 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 RMB6.7112 to US$1.00, the effective noon buying rate for March 29, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

First Quarter of 2019 Financial Results

Net revenues

Total net revenues were RMB3,722.9 million (US$554.7 million) in the first quarter of 2019, an increase of 35% from RMB2,764.4 million in the first quarter of 2018.

Live video service revenues were RMB2,689.4 million (US$400.7 million) in the first quarter of 2019, an increase of 14% from RMB2,360.1 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 membership subscription revenues and virtual gift revenues. The total value-added service revenues were RMB903.8 million (US$134.7 million) in the first quarter of 2019, an increase of 285% from RMB235.0 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 to a lesser extent, the consolidation of Tantan's membership subscription revenues for the whole first quarter of 2019.

Mobile marketing revenues were RMB80.7 million (US$12.0 million) in the first quarter of 2019, a decrease of 32% from RMB118.9 million during the same period of 2018. The decrease in mobile marketing revenues was driven by the decreased demand from our advertising and marketing customers.

Mobile games revenues were RMB39.0 million (US$5.8 million) in the first quarter of 2019, a decrease of 8% from RMB42.2 million in the first quarter of 2018. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users.

Net revenues from Momo segment increased from RMB2,758.3 million in the first quarter of 2018 to RMB3,419.2 million (US$509.5 million) in the first 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 was RMB295.3 million (US$44.0million) in the first quarter of 2019, which mainly included value -added service revenue.

Cost and expenses

Cost and expenses were RMB3,349.4 million (US$499.1 million) in the first quarter of 2019, an increase of 83% from RMB1,834.2 million in the first 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 RMB466.9 million (US$69.6 million) charged from the options granted to Tantan's founders and the Company's rapidly expanding talent pool; (b) an increase in revenue sharing with the 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 amortization expenses related to the intangible assets from business acquisitions; and (e) an increase in fees to payment channels resulting from a higher volume of cash collection through such channels.

Non-GAAP cost and expenses (note 1) were RMB2,719.2 million (US$405.2 million) in the first quarter of 2019, an increase of 55% from RMB1,755.5 million during the same period of 2018.

Income from operations

Income from operations was RMB384.4 million (US$57.3 million) in the first quarter of 2019, compared to RMB937.1 million during the same period of 2018. Income from operations of Momo segment was RMB998.6 million (US$148.8 million) in the first quarter of 2019 and increased from RMB940.6 million in the first quarter of 2018. Loss from operations of Tantan segment was RMB604.6 million (US$90.1 million) in the first quarter of 2019.

Non-GAAP income from operations (note 1) was RMB1,014.7 million (US$151.2 million) in the first quarter of 2019, compared to RMB1,015.7 million during the same period of 2018. Non-GAAP income from operations of Momo segment was RMB1,098.9 million (US$163.7 million) in the first quarter of 2019 and increased from RMB1,019.3 million in the first quarter of 2018. Non-GAAP loss from operations of Tantan segment was RMB77.1 million (US$11.5 million) in the first quarter of 2019.

Income tax expenses

Income tax expenses were RMB163.7 million (US$24.4 million) in the first quarter of 2019 and decreased from RMB170.9 million in the first quarter of 2018. The decrease was mainly because profit before income tax decreased in the first quarter of 2019.

Net income

Net income was RMB286.6 million (US$42.7 million) in the first quarter of 2019, compared to RMB822.2 million during the same period of 2018. Net income from Momo segment was RMB893.9 million (US$133.2 million) in the first quarter of 2019 and increased from RMB825.7 million in the first quarter of 2018. Net loss from Tantan segment was 597.7 million (US$89.1 million) in the first quarter of 2019 which was mainly due to the share-based compensation expenses of RMB466.9 million (US$69.6 million) charged from the options granted to Tantan's founders.

Non-GAAP net income (note 1) was RMB907.5 million (US$135.2 million) in the first quarter of 2019, compared to RMB900.8 million during the same period of 2018. Non-GAAP net income from Momo segment was RMB994.2 million (US$148.1 million) in the first quarter of 2019 and increased from RMB904.3 million in the first quarter of 2018. Non-GAAP net loss of Tantan segment was RMB79.6 million (US$11.9 million) in the first quarter of 2019.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB289.3 million (US$43.1 million) in the first quarter of 2019, compared to RMB825.2 million during the same period of 2018.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB910.3 million (US$135.6 million) in the first quarter of 2019, compared to RMB903.8 million during the same period of 2018.

Net income per ADS

Diluted net income per ADS was RMB1.36 (US$0.20) in the first quarter of 2019, compared to RMB 3.98 in the first quarter of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB4.15 (US$0.62) in the first quarter of 2019, compared to RMB4.36 in the first quarter of 2018.

Cash and cash flow

As of March 31, 2019, Momo's cash, cash equivalents, term deposits and short-term investment totaled RMB12,015.9 million (US$1,790.4 million), compared to RMB11,292.6 million as of December 31, 2018. Net cash provided by operating activities in the first quarter of 2019 was RMB1,175.9 million (US$175.2 million), compared to RMB825.5 million in the first quarter of 2018.

Recent Development

On March 12, 2019, Momo's board of directors declared a special cash dividend in the amount of US$0.62 per ADS, or US$0.31 per ordinary share. The cash dividend was paid on April 30, 2019 to shareholders of record at the close of business on April 5, 2019. The aggregate amount of cash dividends paid was US$128.6 million.

Business Outlook

For the second quarter of 2019, the Company expects total net revenues to be between RMB4.0 billion to RMB4.1 billion, representing an increase of 27% to 30% year over year. These estimates reflect the Company's current and preliminary view, which is subject to change.

Note 1: Non-GAAP measures

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

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

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

Our non-GAAP information (including non-GAAP cost and operating expenses, income from operations, net income,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, May 28, 2019, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on May 28, 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, June 5, 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: 

9359493

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 second 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 first quarter of 2019 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the second quarter of 2019 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth.  In addition, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, and our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers.  For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.

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

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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


Three months


ended March 31



2018


2019


2019



RMB


RMB


US$


Net revenues:







Live video service

2,360,114


2,689,413


400,735


Value-added service

235,004


903,849


134,678


Mobile marketing

118,858


80,729


12,029


Mobile games

42,228


39,008


5,812


Other services

8,172


9,920


1,478


Total net revenues

2,764,376


3,722,919


554,732


Cost and expenses:







Cost of revenues

(1,331,640)


(1,873,574)


(279,171)


Research and development

(111,386)


(249,431)


(37,166)


Sales and marketing

(281,708)


(623,848)


(92,956)


General and administrative

(109,469)


(602,596)


(89,790)


Total cost and expenses

(1,834,203)


(3,349,449)


(499,083)


Other operating income

6,904


10,954


1,632


Income from operations

937,077


384,424


57,281


Interest income

47,905


93,778


13,973


Interest expense

-


(18,989)


(2,829)


Impairment loss on long-term investments

-


(4,500)


(671)


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

984,982


454,713


67,754


Income tax expenses

(170,929)


(163,651)


(24,385)


Income before share of income on equity method investments

814,053


291,062


43,369


Share of income (loss) on equity method investments

8,126


(4,504)


(671)


Net income

822,179


286,558


42,698


Less: net loss attributable to non-controlling interest

(2,976)


(2,759)


(411)


Net income attributable to Momo Inc.

825,155


289,317


43,109


Net income per share attributable to ordinary shareholders







Basic

2.07


0.70


0.10


Diluted

1.99


0.68


0.10


Weighted average shares used in calculating net income per ordinary share







Basic

399,002,678


413,967,371


413,967,371


Diluted

415,045,295


425,890,818


425,890,818


 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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


Three months



ended March 31




2018


2019


2019




RMB


RMB


US$











Net income

822,179


286,558


42,698



Other comprehensive loss, net of tax:








Foreign currency translation adjustment

(88,293)


(72,981)


(10,875)



Comprehensive income

733,886


213,577


31,823



Less: comprehensive loss attributed to the non-controlling interest

(2,976)


(5,234)


(780)



Comprehensive income attributable to Momo Inc.

736,862


218,811


32,603



 

 

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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








December 31


March 31


March 31


2018


2019


2019

RMB

RMB


US$

Assets






Current assets






Cash and cash equivalents

2,468,034


2,678,342


399,085

Term deposits

8,824,610


9,227,553


1,374,948

Short-term investment

-


110,000


16,391

Accounts receivable, net of allowance for doubtful
     accounts of RMB nil and RMB nil as of December 31,
     2018 and March 31, 2019, respectively

719,606


310,192


46,220

Prepaid expenses and other current assets

620,979


609,956


90,886

Total current assets

12,633,229


12,936,043


1,927,530

Property and equipment, net

387,532


362,062


53,949

Intangible assets

1,036,986


974,820


145,253

Rental deposits

24,192


25,508


3,801

Long-term investments

447,465


458,462


68,313

Deferred tax assets

57,786


32,249


4,805

Other non-current assets

71,519


43,988


6,554

Right-of-use assets, net[1]

-


175,911


26,211

Goodwill

4,306,829


4,204,440


626,481

Total assets

18,965,538


19,213,483


2,862,897

Liabilities and equity






Current liabilities






Accounts payable

718,362


720,924


107,419

Deferred revenue

441,892


460,734


68,652

Accrued expenses and other current liabilities

846,710


655,174


97,625

Amount due to related parties

82,948


56,034


8,349

Income tax payable

137,090


65,533


9,765

Lease liabilities due within one year1

-


74,499


11,101

Dividends payable

-


863,110


128,607

Deferred consideration in connection with business
     acquisitions

469,274


154,521


23,024

Total current liabilities

2,696,276


3,050,529


454,542

Deferred tax liabilities

259,247


243,705


36,313

Convertible senior notes

4,877,116


4,764,259


709,897

Share-based compensation liability

86,767


549,207


81,834

Lease liabilities1

-


79,731


11,880

Other non-current liabilities

23,273


30,751


4,582

Total liabilities

7,942,679


8,718,182


1,299,048

Shareholder's equity(i)

11,022,859


10,495,301


1,563,849

Total liabilities and shareholder's equity

18,965,538


19,213,483


2,862,897


[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.

(i): As of March 31, 2019, the number of ordinary shares issued and outstanding was 414,698,540.

 

 

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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



Three months




ended March 31




2018


2019


2019




RMB


RMB


US$



Cash flows from operating activities:








Net income

822,179


286,558


42,698



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








Depreciation of property and equipment

31,472


48,400


7,212



Amortization of intangible assets

1,433


38,595


5,751



Share-based compensation

78,664


593,074


88,372



Share of (income) loss on equity method investments

(8,126)


4,504


671



Impairment loss on long-term investments

-


4,500


671



Loss on disposal of property and equipment

2


4


1



Changes in operating assets and liabilities:








Accounts receivable

53,232


409,414


61,005



Prepaid expenses and other current assets

56,487


(18,189)


(2,710)



Amount due from related parties

(7,424)


-


-



Rental deposits

336


(1,317)


(196)



Deferred tax assets

7,965


25,537


3,805



Other non-current assets

(11,524)


31,439


4,684



Accounts payable

56,359


32,515


4,845



Income tax payable

(64,366)


(71,558)


(10,662)



Deferred revenue

(33,591)


18,842


2,808



Accrued expenses and other current liabilities

(169,103)


(185,495)


(27,640)



Amount due to related parties

(32)


(25,965)


(3,869)



Deferred tax liability

(358)


(15,542)


(2,316)



Other non-current liabilities

11,851


593


88



Net cash provided by operating activities

825,456


1,175,909


175,218



Cash flows from investing activities:








Purchase of property and equipment

(64,263)


(52,798)


(7,867)



Proceeds from disposal of property and equipment

9


5


1



Payment for long-term investments

(4,000)


(12,000)


(1,788)



Prepayment of long-term investments

(47,000)


-


-



Payment for business acquisition, net of cash acquired

(1,460,063)


(305,067)


(45,456)



Purchase of term deposits

(3,636,592)


(3,485,005)


(519,282)



Cash received on maturity of term deposits

2,382,960


3,005,005


447,760



Payment for short-term investments

-


(210,000)


(31,291)



Cash received from sales of short-term investment

10,500


100,000


14,900



Net cash used in investing activities

(2,818,449)


(959,860)


(143,023)



Cash flows from financing activities:








Proceeds from exercise of share options

2,437


83


12



Deferred payment of purchase of property and equipment

(7,327)


(94)


(14)



Net cash used in financing activities

(4,890)


(11)


(2)



Effect of exchange rate changes

(14,936)


(5,730)


(857)



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

(2,012,819)


210,308


31,336



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

4,462,194


2,468,034


367,749



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

2,449,375


2,678,342


399,085



 

 

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 March 31, 2018



ended March 31, 2019




ended March 31, 2019


 

 

GAAP

RMB


Share-
based
compensation

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

(1,331,640)


3,037


(1,328,603)


(1,873,574)


18,021

4,186

-


(1,851,367)


(279,171)


2,685

624

-


(275,862)

Research and
     development

(111,386)


16,359


(95,027)


(249,431)


2,289

39,730

-


(207,412)


(37,166)


341

5,920

-


(30,905)

Sales and
     marketing

(281,708)


20,908


(260,800)


(623,848)


16,853

39,452

-


(567,543)


(92,956)


2,511

5,879

-


(84,566)

General and
     administrative

(109,469)


38,360


(71,109)


(602,596)


-

509,706

-


(92,890)


(89,790)


-

75,949

-


(13,841)

Cost and
     operating
     expenses

(1,834,203)


78,664


(1,755,539)


(3,349,449)


37,163

593,074

-


(2,719,212)


(499,083)


5,537

88,372

-


(405,174)

Income from
     operations

937,077


78,664


1,015,741


384,424


37,163

593,074

-


1,014,661


57,281


5,537

88,372

-


151,190

Net income
     attributable to
     Momo Inc.

825,155


78,664


903,819


289,317


37,163

593,074

(9,291)


910,263


43,109


5,537

88,372

(1,384)


135,634























(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.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)


2. Reconciliation of diluted EPS to Non-GAAP diluted EPS



Three months


Three months


Three months


ended March 31, 2018

ended March 31, 2019


ended March 31, 2019



 

GAAP

RMB


Adjustment


Non-GAAP

RMB


 

GAAP

RMB


Adjustment


 

Non-GAAP

RMB


 

GAAP

US$


Adjustment


 

Non-GAAP

US$


Weighted average ordinary shares outstanding
     used in computing
     diluted EPS

415,045,295


-


415,045,295


425,890,818


22,442,346(iii)


448,333,164


425,890,818


22,442,346(iii)


448,333,164


Diluted earnings per share

1.99




2.18


0.68




2.07


0.10




0.31


Diluted earnings per ADS

3.98




4.36


1.36




4.15


0.20




0.62



(iii) The adjustment represents an incremental weighted average number of 22,442,346 ordinary shares resulting from the assumed conversion of convertible senior notes.

 

 

Momo Inc.

Unaudited Segment Report

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


Three months

Ended March 31, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Net revenues:










Live video service

2,689,413


-


-


2,689,413


400,735

Value-added service

608,502


295,347


-


903,849


134,678

Mobile marketing

80,729


-


-


80,729


12,029

Mobile games

39,008


-


-


39,008


5,812

Other services

1,557


-


8,363


9,920


1,478

Total net revenues

3,419,209


295,347


8,363


3,722,919


554,732

Cost and expenses(iv):










Cost of revenues

(1,770,038)


(98,856)


(4,680)


(1,873,574)


(279,171)

Research and development

(184,273)


(65,158)


-


(249,431)


(37,166)

Sales and marketing

(362,958)


(255,921)


(4,969)


(623,848)


(92,956)

General and administrative

(114,264)


(479,965)


(8,367)


(602,596)


(89,790)

Total cost and expenses

(2,431,533)


(899,900)


(18,016)


(3,349,449)


(499,083)

Other operating income

10,954


-


-


10,954


1,632

Income (loss) from
operations

998,630


(604,553)


(9,653)


384,424


57,281

Interest income

90,858


2,891


29


93,778


13,973

Interest expense

(18,989)


-


-


(18,989)


(2,829)

Impairment loss on long-term
     investments

(4,500)


-


-


(4,500)


(671)

Income (loss) before income
     tax and share of income

     on equity method
     investments

1,065,999


(601,662)


(9,624)


454,713


67,754

Income tax expenses

(167,603)


3,952


-


(163,651)


(24,385)

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

898,396


(597,710)


(9,624)


291,062


43,369

Share of loss on equity
     method investments

(4,504)


-


-


(4,504)


(671)

Net income (loss)

893,892


(597,710)


(9,624)


286,558


42,698



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



Three months


ended March 31, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Cost of revenues

3,606


580


-


4,186


624

Research and development

21,713


18,017


-


39,730


5,920

Sales and marketing

35,474


3,978


-


39,452


5,879

General and administrative

39,491


467,684


2,531


509,706


75,949

Total cost and expenses

100,284


490,259


2,531


593,074


88,372

 

 

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 March 31, 2019


Momo


Tantan


QOOL


Total


Total


RMB


RMB


RMB


RMB


US$

Operating income (loss)

998,630


(604,553)


(9,653)


384,424


57,281

Share-based compensation

100,284


490,259


2,531


593,074


88,372

Amortization of intangible assets from
     business acquisitions

-


37,163


-


37,163


5,537

Non-GAAP operating income (loss)

1,098,914


(77,131)


(7,122)


1,014,661


151,190











Net income (loss)

893,892


(597,710)


(9,624)


286,558


42,698

Share-based compensation

100,284


490,259


2,531


593,074


88,372

Amortization of intangible assets from
     business acquisitions

-


37,163


-


37,163


5,537

Tax impacts

-


(9,291)


-


(9,291)


(1,384)

Non-GAAP net income (loss)

994,176


(79,579)


(7,093)


907,504


135,223

 

 

Momo Inc.

Unaudited Segment Report

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


Three months

ended March 31, 2018


Momo




QOOL


Total


Total


RMB




RMB


RMB


US$[2]

Net revenues:










Live video service

2,360,114




-


2,360,114


376,258

Value-added service

235,004




-


235,004


37,465

Mobile marketing

118,858




-


118,858


18,949

Mobile games

42,228




-


42,228


6,732

Other services

2,053




6,119


8,172


1,303

Total net revenues

2,758,257




6,119


2,764,376


440,707

Cost and expenses(v):










Cost of revenues

(1,327,371)




(4,269)


(1,331,640)


(212,295)

Research and development

(111,386)




-


(111,386)


(17,758)

Sales and marketing

(278,790)




(2,918)


(281,708)


(44,911)

General and administrative

(107,024)




(2,445)


(109,469)


(17,452)

Total cost and expenses

(1,824,571)




(9,632)


(1,834,203)


(292,416)

Other operating income

6,904




-


6,904


1,101

Income (loss) from operations

940,590




(3,513)


937,077


149,392

Interest income

47,895




10


47,905


7,637

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

988,485




(3,503)


984,982


157,029

Income tax expenses

(170,929)




-


(170,929)


(27,250)

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

817,556




(3,503)


814,053


129,779

Share of income on equity method investments

8,126




-


8,126


1,296

Net income (loss)

825,682




(3,503)


822,179


131,075


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



Three months


ended March 31, 2018


Momo




QOOL


Total


Total


RMB




RMB


RMB


US$[2]

Cost of revenues

3,037




-


3,037


484

Research and development

16,359




-


16,359


2,608

Sales and marketing

20,908




-


20,908


3,333

General and administrative

38,360




-


38,360


6,116

Total cost and expenses

78,664




-


78,664


12,541

 

 

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 March 31, 2018


Momo




QOOL


Total


Total


RMB




RMB


RMB


US$[2]

Operating income (loss)

940,590




(3,513)


937,077


149,392

Share-based compensation

78,664




-


78,664


12,541

Non-GAAP operating income (loss)

1,019,254




(3,513)


1,015,741


161,933











Net income (loss)

825,682




(3,503)


822,179


131,075

Share-based compensation

78,664




-


78,664


12,541

Non-GAAP net income (loss)

904,346




(3,503)


900,843


143,616

 

 

[2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.2726 to US$1.00, the effective noon buying rate for March 30, 2018 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

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SOURCE Momo Inc.