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Hello (MOMO) - 2023 Q4 - Annual Report
MOMOHello (MOMO)2023-12-08 11:49
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Revenue Performance - Net revenues decreased by 5.9% year over year to RMB3,042.8 million (US417.1million)inQ32023[2]−TotalnetrevenuesforQ32023wereRMB3,042,847thousand(US417.1 million) in Q3 2023[2] - Total net revenues for Q3 2023 were RMB 3,042,847 thousand (US 417,057 thousand), a decrease of 5.9% compared to RMB 3,233,021 thousand in Q3 2022[34] - The company expects total net revenues for Q4 2023 to be between RMB2.9 billion to RMB3.0 billion, representing a decrease of 9.7% to 6.6% year over year[22] - Total net revenues for the first nine months of 2023 reached RMB 8,999,391 (US1,233,469),withlivevideoservicecontributingRMB4,548,986(US 1,233,469), with live video service contributing RMB 4,548,986 (US 623,490) and value-added service contributing RMB 4,327,678 (US593,158)[56]−Totalnetrevenuesforthefirstninemonthsof2022wereRMB9,491,514(US 593,158)[56] - Total net revenues for the first nine months of 2022 were RMB 9,491,514 (US 1,334,296), with live video service contributing RMB 4,786,232 (US672,838)andvalue−addedservicecontributingRMB4,557,481(US 672,838) and value-added service contributing RMB 4,557,481 (US 640,681)[61] Net Income and Profitability - Net income attributable to Hello Group Inc. increased to RMB546.4 million (US74.9million)inQ32023,upfromRMB450.8millioninQ32022[2]−NetincomeattributabletoshareholdersforQ32023wasRMB546,428thousand(US74.9 million) in Q3 2023, up from RMB450.8 million in Q3 2022[2] - Net income attributable to shareholders for Q3 2023 was RMB 546,428 thousand (US 74,894 thousand), an increase of 21.2% compared to RMB 450,835 thousand in Q3 2022[34] - Non-GAAP net income attributable to Hello Group Inc. increased to RMB605.9 million (US83.0million)inQ32023,upfromRMB535.8millioninQ32022[2]−ComprehensiveincomeattributabletoHelloGroupInc.forQ32023wasRMB551,338thousand(US83.0 million) in Q3 2023, up from RMB535.8 million in Q3 2022[2] - Comprehensive income attributable to Hello Group Inc. for Q3 2023 was RMB 551,338 thousand (US 75,568 thousand), an increase of 119.9% compared to RMB 250,697 thousand in Q3 2022[36] - Net income attributable to Hello Group Inc. on a Non-GAAP basis was RMB 605.9 million (US83.0million)inQ32023,comparedtoRMB535.8millionin2022[42]−Non−GAAPnetincomeforQ32023wasRMB601,637thousand,withMomosegmentcontributingRMB595,876thousandandTantansegmentcontributingRMB26,604thousand[49]−NetincomeforQ32023wasRMB542,165thousand,withMomosegmentcontributingRMB540,008thousandandTantansegmentcontributingRMB23,000thousand[46]−Non−GAAPnetincomeforthefirstninemonthsof2023wasRMB1,704,103(US 83.0 million) in Q3 2023, compared to RMB 535.8 million in 2022[42] - Non-GAAP net income for Q3 2023 was RMB 601,637 thousand, with Momo segment contributing RMB 595,876 thousand and Tantan segment contributing RMB 26,604 thousand[49] - Net income for Q3 2023 was RMB 542,165 thousand, with Momo segment contributing RMB 540,008 thousand and Tantan segment contributing RMB 23,000 thousand[46] - Non-GAAP net income for the first nine months of 2023 was RMB 1,704,103 (US 233,566), reflecting a strong performance despite challenges in certain segments[59] - Net income (loss) for the first nine months of 2023 was RMB 1,499,226 (US205,485),withMomocontributingRMB1,471,435(US 205,485), with Momo contributing RMB 1,471,435 (US 205,485) and Tantan contributing RMB 56,577 (US7,764)[56]−Non−GAAPnetincomeforthefirstninemonthsof2022wasRMB1,083,001(US 7,764)[56] - Non-GAAP net income for the first nine months of 2022 was RMB 1,083,001 (US 152,245), reflecting a decline compared to 2023 due to higher expenses and lower contributions from certain segments[63] - Total net income for the first nine months of 2022 was RMB 1,083,001 (US152,245)[64]−Non−GAAPnetincomeforMomowasRMB1,727,382,withTantanreportinganon−GAAPnetlossofRMB316,766[64]UserMetrics−MonthlyActiveUsers(MAU)onTantanappwere15.7millioninSeptember2023,downfrom20.9millioninSeptember2022[2]−TotalpayingusersforMomoappwere7.8millioninQ32023,comparedto8.4millioninQ32022[2]SegmentPerformance−Livevideoservicerevenuesdecreasedby7.6 152,245)[64] - Non-GAAP net income for Momo was RMB 1,727,382, with Tantan reporting a non-GAAP net loss of RMB 316,766[64] User Metrics - Monthly Active Users (MAU) on Tantan app were 15.7 million in September 2023, down from 20.9 million in September 2022[2] - Total paying users for Momo app were 7.8 million in Q3 2023, compared to 8.4 million in Q3 2022[2] Segment Performance - Live video service revenues decreased by 7.6% year over year to RMB1,530.8 million (US209.8 million) in Q3 2023[5] - Value-added service revenues decreased by 4.6% year over year to RMB1,466.7 million (US201.0million)inQ32023[6]−LivevideoservicerevenueforQ32023wasRMB1,530,797thousand(US201.0 million) in Q3 2023[6] - Live video service revenue for Q3 2023 was RMB 1,530,797 thousand (US 209,813 thousand), a decrease of 7.6% compared to RMB 1,657,531 thousand in Q3 2022[34] - Value-added service revenue for Q3 2023 was RMB 1,466,727 thousand (US201,031thousand),adecreaseof4.6 201,031 thousand), a decrease of 4.6% compared to RMB 1,537,666 thousand in Q3 2022[34] - Mobile marketing revenue for Q3 2023 was RMB 30,705 thousand (US 4,208 thousand), an increase of 8.7% compared to RMB 28,243 thousand in Q3 2022[34] - Total net revenues for Q3 2023 reached RMB 3,042,847 thousand, with Live video service contributing RMB 1,530,797 thousand and Value-added service contributing RMB 1,466,727 thousand[46] - Cost of revenues for Q3 2023 was RMB 1,771,530 thousand, with Momo segment accounting for RMB 1,606,261 thousand and Tantan segment accounting for RMB 145,346 thousand[46] - Research and development expenses for Q3 2023 totaled RMB 201,693 thousand, with Momo segment contributing RMB 151,649 thousand and Tantan segment contributing RMB 50,044 thousand[46] - Sales and marketing expenses for Q3 2023 were RMB 373,942 thousand, with Momo segment accounting for RMB 298,919 thousand and Tantan segment accounting for RMB 71,978 thousand[46] - Non-GAAP income from operations for Q3 2023 was RMB 681,229 thousand, with Momo segment contributing RMB 674,507 thousand and Tantan segment contributing RMB 27,582 thousand[49] - Income from operations for Q3 2023 was RMB 621,757 thousand, with Momo segment contributing RMB 618,639 thousand and Tantan segment contributing RMB 23,978 thousand[46] - Operating income for Momo reached RMB 1,572,131, while Tantan reported a loss of RMB 337,521[64] - Total operating income for the first nine months of 2022 was RMB 1,218,317 (US171,267)[64]−Non−GAAPoperatingincomeforMomowasRMB1,861,408,withTantanreportinganon−GAAPlossofRMB315,258[64]−NetincomeforMomowasRMB1,438,105,whileTantanrecordedanetlossofRMB339,029[64]ExpensesandCosts−ResearchanddevelopmentexpensesforQ32023wereRMB201,693thousand(US 171,267)[64] - Non-GAAP operating income for Momo was RMB 1,861,408, with Tantan reporting a non-GAAP loss of RMB 315,258[64] - Net income for Momo was RMB 1,438,105, while Tantan recorded a net loss of RMB 339,029[64] Expenses and Costs - Research and development expenses for Q3 2023 were RMB 201,693 thousand (US 27,644 thousand), a decrease of 17.7% compared to RMB 245,105 thousand in Q3 2022[34] - Sales and marketing expenses for Q3 2023 were RMB 373,942 thousand (US51,253thousand),adecreaseof19.9 51,253 thousand), a decrease of 19.9% compared to RMB 467,012 thousand in Q3 2022[34] - Research and development expenses on a Non-GAAP basis were RMB 186.7 million (US 25.6 million) in Q3 2023, down from RMB 223.4 million in 2022[42] - General and administrative expenses on a Non-GAAP basis were RMB 76.5 million (US10.5million)inQ32023,comparedtoRMB82.6millionin2022[42]−TotalcostandexpensesforQ32023wereRMB2,461,061thousand,withMomosegmentaccountingforRMB2,162,168thousandandTantansegmentaccountingforRMB273,024thousand[46]−Researchanddevelopmentexpensesforthefirstninemonthsof2023totaledRMB653,145(US 10.5 million) in Q3 2023, compared to RMB 82.6 million in 2022[42] - Total cost and expenses for Q3 2023 were RMB 2,461,061 thousand, with Momo segment accounting for RMB 2,162,168 thousand and Tantan segment accounting for RMB 273,024 thousand[46] - Research and development expenses for the first nine months of 2023 totaled RMB 653,145 (US 89,521), indicating continued investment in innovation[56] - Total cost and expenses for the first nine months of 2023 amounted to RMB 7,395,656 (US1,013,660),withcostofrevenuesbeingthelargestcomponentatRMB5,255,277(US 1,013,660), with cost of revenues being the largest component at RMB 5,255,277 (US 720,296)[56] - Research and development expenses for the first nine months of 2022 totaled RMB 733,562 (US103,123),showingadecreasecomparedto2023[61]CashFlowandFinancialPosition−NetcashprovidedbyoperatingactivitiesinQ32023wasRMB582.5million(US 103,123), showing a decrease compared to 2023[61] Cash Flow and Financial Position - Net cash provided by operating activities in Q3 2023 was RMB582.5 million (US79.8 million), up from RMB444.5 million in Q3 2022[18] - Net cash provided by operating activities increased to RMB 582.5 million (US79.8million)inQ32023,upfromRMB444.5millionin2022[40]−NetcashusedininvestingactivitieswasRMB346.8million(US 79.8 million) in Q3 2023, up from RMB 444.5 million in 2022[40] - Net cash used in investing activities was RMB 346.8 million (US 47.5 million) in Q3 2023, compared to a net cash outflow of RMB 24.3 million in 2022[40] - Proceeds from long-term borrowings in Q3 2023 were RMB 2.15 billion (US295.2million),contributingtoanetcashinflowfromfinancingactivitiesofRMB2.01billion(US 295.2 million), contributing to a net cash inflow from financing activities of RMB 2.01 billion (US 275.3 million)[40] - Cash, cash equivalents, and restricted cash at the end of Q3 2023 stood at RMB 7.64 billion (US1.05billion),upfromRMB3.62billionattheendof2022[40]−CashandcashequivalentsdecreasedfromRMB5,018,129inDecember2022toRMB4,994,558inSeptember2023,adecreaseof0.47 1.05 billion), up from RMB 3.62 billion at the end of 2022[40] - Cash and cash equivalents decreased from RMB 5,018,129 in December 2022 to RMB 4,994,558 in September 2023, a decrease of 0.47%[38] - Short-term deposits decreased significantly from RMB 5,300,000 in December 2022 to RMB 1,885,005 in September 2023, a decrease of 64.43%[38] - Total current assets decreased from RMB 11,724,547 in December 2022 to RMB 8,109,557 in September 2023, a decrease of 30.83%[38] - Long-term deposits increased from RMB 2,600,000 in December 2022 to RMB 3,809,200 in September 2023, an increase of 46.51%[38] - Total assets increased slightly from RMB 15,829,587 in December 2022 to RMB 16,171,417 in September 2023, an increase of 2.16%[38] - Total current liabilities decreased from RMB 4,738,247 in December 2022 to RMB 2,179,949 in September 2023, a decrease of 53.99%[38] - Long-term borrowings increased from RMB 0 in December 2022 to RMB 1,938,385 in September 2023[38] - Shareholder's equity increased from RMB 10,930,638 in December 2022 to RMB 11,719,168 in September 2023, an increase of 7.21%[38] - Accounts receivable increased slightly from RMB 188,711 in December 2022 to RMB 192,849 in September 2023, an increase of 2.19%[38] - Property and equipment, net increased from RMB 172,984 in December 2022 to RMB 358,361 in September 2023, an increase of 107.17%[38] Share Repurchase and Compensation - As of December 8, 2023, the company has repurchased 16.2 million ADSs for US86.1 million under its share repurchase program[21] - Share-based compensation for Q3 2023 was RMB 59.5 million (US 8.2 million), a decrease from RMB 85.0 million in 2022[42] - Share-based compensation for Q3 2023 totaled RMB 59,472 thousand, allocated across cost of revenues (RMB 1,211 thousand), R&D (RMB 14,993 thousand), sales and marketing (RMB 5,854 thousand), and general and administrative expenses (RMB 37,414 thousand)[47] - Share-based compensation allocated to cost of revenues and operating expenses for the first nine months of 2023 was RMB 204,877 (US 28,081)[57] - Share-based compensation for Momo was RMB 289,277, and Tantan reported RMB 22,263[64] - Total share-based compensation for the first nine months of 2022 was RMB 311,540 (US43,797)[64]DepreciationandOtherFinancialMetrics−DepreciationofpropertyandequipmentdecreasedtoRMB17.5million(US 43,797)[64] Depreciation and Other Financial Metrics - Depreciation of property and equipment decreased to RMB 17.5 million (US 2.4 million) in Q3 2023, down from RMB 27.0 million in 2022[40] - Income from operations on a Non-GAAP basis increased to RMB 681.2 million (US$ 93.4 million) in Q3 2023, up from RMB 605.1 million in 2022[42] - As of September 30, 2023, the number of ordinary shares outstanding was 379,881,912[37]