Momo Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2018

BEIJING, March 12, 2019 /PRNewswire/ -- 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, 2018.

Starting from the fourth quarter of 2018, the Company changed its reporting currency from U.S.
dollar ("US$") to Renminbi ("RMB"), to reduce the impact of increased volatility of the RMB to
US$ exchange rate on the Company's reported operating results. The aligning of the reporting
currency with the underlying operations will better depict the Company's results of operations for
each period. This release contains translations of certain RMB amounts into US$ for convenience*.
Prior period numbers have been recast into the new reporting currency.

Fourth Quarter of 2018 Highlights

  • Net revenues increased 50% year over year to RMB3,843.9 million (US$559.1 million) in the fourth quarter of 2018.
  • Net income attributable to Momo Inc. increased to RMB660.8 million (US$96.1 million) in the fourth quarter of 2018 from RMB644.8 million in the same period of 2017.
  • Non-GAAP net income attributable to Momo Inc. (note 1) increased 22% to RMB887.4 million (US$129.1 million) in the fourth quarter of 2018 from RMB727.4 million in the same period of 2017.
  • Diluted net income per American Depositary Share ("ADS") was RMB3.04 (US$0.44), compared to RMB3.10 in the same period of 2017.
  • Non-GAAP diluted net income per ADS (note 1) was RMB4.05 (US$0.59), compared to RMB3.49 in the same period of 2017.
  • Monthly Active Users ("MAU") on Momo application were 113.3 million in December 2018, compared to 99.1 million in December 2017.
  • Total paying users of our live video service and value-added service, without double counting the overlap, including 3.9 million paying users of Tantan Limited ("Tantan"), were 13.0 million for the fourth quarter of 2018, compared to 7.8 million for the fourth quarter of 2017.

Full Year 2018 Highlights

  • Net revenues increased 51% year over year to RMB13,408.4 million (US$1,950.2 million) for the full year of 2018.
  • Net income attributable to Momo Inc. was RMB2,815.8 million (US$409.5 million) for the full year of 2018, compared with RMB2,148.1 million for 2017.
  • Non-GAAP net income attributable to Momo Inc. (note 1) was RMB3,462.1 million (US$503.5 million) for the full year of 2018, compared with RMB2,483.1 million for 2017.
  • Diluted net income per ADS was RMB13.18 (US$1.92) for the full year of 2018, compared with RMB10.35 for 2017.
  • Non-GAAP diluted net income per ADS (note 1) was RMB16.17 (US$2.35) for the full year of 2018, compared with RMB11.96 for 2017.

 

* Unless otherwise noted, 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.

"Q4 was a solid quarter, closing out a fruitful year of 2018," commented Yan Tang, Chairman and CEO of Momo. "I am pleased with the progress we made in 2018 in product innovation, monetization, financial performance and the strengthening of the Company's position as a leading player in China's open social space. We look forward to delivering more results to our shareholders in 2019."

Fourth Quarter of 2018 Financial Results

Net revenues

Total net revenues were RMB3,843.9 million (US$559.1 million) in the fourth quarter of 2018, an increase of 50% from RMB2,554.9 million in the fourth quarter of 2017.

Live video service revenues were RMB2,959.2 million (US$430.4 million) in the fourth quarter of 2018, an increase of 36% from RMB2,169.0 million during the same period of 2017. 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 RMB722.4 million (US$105.1 million) in the fourth quarter of 2018, an increase of 272% from RMB194.3 million during the same period of 2017. 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 use cases 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 fourth quarter of 2018.

Mobile marketing revenues were RMB 122.1 million (US$17.8 million) in the fourth quarter of 2018, a decrease of 15% from RMB144.4 million during the same period of 2017. The decrease in mobile marketing revenues was driven by the decreased demand from our advertising and marketing customers.

Mobile games revenues were RMB25.5 million (US$3.7 million) in the fourth quarter of 2018, a decrease of 44% from RMB45.6 million in the fourth quarter of 2017. The decrease in game revenues was mainly due to the continued decrease in quarterly paying users.

Revenues from other services in the fourth quarter of 2018 mainly consisted of revenues from Phanta City, a TV variety show co-produced by the Company.

Cost and expenses

Cost and expenses were RMB3,195.7 million (US$464.8 million) in the fourth quarter of 2018, an increase of 65% from RMB1,939.5 million in the fourth quarter of 2017. The increase was primarily attributable to: (a) an increase in revenue sharing with the broadcasters related to our live video service and virtual gift recipients; (b) an increase in marketing and promotional expenses to enhance our brand awareness and attract users; (c) an increase in personnel related costs including share-based compensation expenses as a result of the Company's rapidly expanding talent pool; (d) an increase in fees to payment channels resulting from a higher volume of cash collection through such channels; and (e) an increase in amortization expenses related to the intangible assets from business acquisitions.

Non-GAAP cost and expenses (note 1) were RMB2,959.6 million (US$430.5 million) in the fourth quarter of 2018, an increase of 59% from RMB1,856.9 million during the same period of 2017.

Other operating income

Other operating income was RMB141.4 million (US$20.6 million) in the fourth quarter of 2018, a significant increase from RMB92.6 million during the fourth quarter of 2017. The increase was mainly due to more government incentives received in the fourth quarter of 2018.

Income from operations

Income from operations was RMB789.6 million (US$114.8 million) in the fourth quarter of 2018, compared to RMB708.1 million during the same period of 2017.

Non-GAAP income from operations (note 1) was RMB1,025.7 million (US$149.2 million) in the fourth quarter of 2018, compared to RMB790.6 million during the same period of 2017.

Income tax expenses

Income tax expenses were RMB183.3 million (US$26.7 million) in the fourth quarter of 2018 and increased from RMB126.0 million in the fourth quarter of 2017. The increase was mainly because we generated higher profit in the fourth quarter of 2018.

Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was RMB660.8 million (US$96.1 million) in the fourth quarter of 2018, compared to RMB644.8 million during the same period of 2017.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB887.4 million (US$129.1 million) in the fourth quarter of 2018, compared to RMB727.4 million during the same period of 2017.

Net income per ADS

Diluted net income per ADS was RMB3.04 (US$0.44) in the fourth quarter of 2018, compared to RMB 3.10 in the fourth quarter of 2017.

Non-GAAP diluted net income per ADS (note 1) was RMB4.05 (US$0.59) in the fourth quarter of 2018, compared to RMB3.49 in the fourth quarter of 2017.

Cash and cash flow

As of December 31, 2018, Momo's cash, cash equivalents, term deposits and short-term investment totaled RMB11,292.6 million (US$1,642.4 million), compared to RMB6,904.7 million as of December 31, 2017. Net cash provided by operating activities in the fourth quarter of 2018 was RMB1,163.4 million (US$169.2 million), compared to RMB790.8 million in the fourth quarter of 2017.

Full Year 2018 Financial Results

Net revenues for the full year of 2018 were RMB13,408.4 million (US$1,950.2 million), an increase of 51% from RMB8,886.4 million in the same period of 2017, primarily driven by the significant increase in net revenues from live video service and value-added service.

Net income attributable to Momo Inc. was RMB2,815.8 million (US$409.5 million) in the full year of 2018, compared to RMB2,148.1 million during the same period of 2017.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB3,462.1 million (US$503.5 million) in the full year of 2018, compared to RMB2,483.1 million during the same period of 2017.

Diluted net income per ADS was RMB13.18 (US$1.92) during the full year of 2018, compared to RMB10.35 in the same period of 2017.

Non-GAAP diluted net income per ADS (note 1) was RMB16.17 (US$2.35) during the full year of 2018, compared to RMB11.96 in the same period of 2017.

Net cash provided by operating activities was RMB3,327.7 million (US$484.0 million) during the full year of 2018, compared to RMB2,886.1 million in the same period of 2017.

Recent Development - Declaration of Special Cash Dividend

Momo's board of directors has declared a special cash dividend in the amount of US$0.62 per ADS, or US$0.31 per ordinary share. The cash dividend will be paid on April 30, 2019 to shareholders of record at the close of business on April 5, 2019. The ex-dividend date will be April 4, 2019. The aggregate amount of cash dividends to be paid is approximately US$128 million, which will be funded by surplus cash on the Company's balance sheet.

Business Outlook

For the first quarter of 2019, the Company expects total net revenues to be between RMB3.55 billion to RMB3.65 billion, representing an increase of 28% to 32% year over year, on a constant currency basis. The Company is not providing the business outlook in USD terms due to the recent volatility and uncertainty in foreign exchange rate. 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 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, March 12, 2019, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 12, 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 8:00 a.m. U.S. Eastern Time, March 20, 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: 

3573546

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Momo's website at https://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 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 fourth quarter and full year of 2018 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first 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


Year


ended December 31


ended December 31


2017


2018


2018


2017


2018


2018


RMB


RMB


US$


RMB


RMB


US$

Net revenues:












   Live video service

2,168,998


2,959,222


430,401


7,429,906


10,709,491


1,557,631

   Value-added service

194,287


722,414


105,071


695,798


1,883,150


273,893

   Mobile marketing

144,360


122,143


17,765


514,279


500,321


72,769

   Mobile games

45,569


25,502


3,709


241,388


130,392


18,965

   Other services

1,722


14,635


2,128


5,019


185,067


26,916

Total net revenues

2,554,936


3,843,916


559,074


8,886,390


13,408,421


1,950,174

Cost and expenses:












   Cost of revenues

(1,323,876)


(2,099,265)


(305,325)


(4,373,377)


(7,182,897)


(1,044,709)

   Research and development

(124,056)


(243,499)


(35,415)


(346,144)


(760,644)


(110,631)

   Sales and marketing

(374,436)


(618,268)


(89,923)


(1,467,376)


(1,812,262)


(263,583)

   General and administrative

(117,124)


(234,700)


(34,136)


(422,005)


(640,023)


(93,087)

Total cost and expenses

(1,939,492)


(3,195,732)


(464,799)


(6,608,902)


(10,395,826)


(1,512,010)

Other operating income

92,634


141,420


20,569


156,764


253,697


36,899

Income from operations

708,078


789,604


114,844


2,434,252


3,266,292


475,063

Interest income

47,785


89,766


13,056


145,568


272,946


39,698

Interest expense

-


(19,646)


(2,857)


-


(56,503)


(8,218)

Impairment loss on long-term
    investments

-


(43,200)


(6,283)


(30,085)


(43,200)


(6,283)

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

755,863


816,524


118,760


2,549,735


3,439,535


500,260

Income tax expenses

(125,956)


(183,338)


(26,665)


(445,001)


(699,648)


(101,760)

Income before share of
   income on equity method
   investments

629,907


633,186


92,095


2,104,734


2,739,887


398,500

Share of income on equity
   method investments

13,398


13,221


1,923


39,729


48,660


7,077

Net income

643,305


646,407


94,018


2,144,463


2,788,547


405,577

Less: net loss attributable to
   non-controlling interest

(1,498)


(14,430)


(2,100)


(3,635)


(27,228)


(3,960)

Net income attributable to
   Momo Inc.

644,803


660,837


96,118


2,148,098


2,815,775


409,537













Net income per share
   attributable to ordinary
   shareholders












Basic

1.62


1.60


0.23


5.44


6.92


1.01

Diluted

1.55


1.52


0.22


5.17


6.59


0.96

Weighted average shares
   used in calculating net
   income per ordinary share












Basic

397,753,884


413,732,538


413,732,538


394,549,323


407,009,875


407,009,875

Diluted

416,371,383


447,773,521


447,773,521


415,265,078


433,083,643


433,083,643

 

 

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


2017


2018


2018


2017


2018


2018


RMB


RMB


US$


RMB


RMB


US$













Net income 

643,305


646,407


94,018


2,144,463


2,788,547


405,577

Other comprehensive income
   (loss), net of tax of nil












Foreign currency translation
   adjustment

(53,534)


5,171


752


(155,368)


198,654


28,893

Comprehensive income 

589,771


651,578


94,770


1,989,095


2,987,201


434,470

Less: comprehensive loss
   attributed to the non-controlling
   interest

(1,498)


(14,535)


(2,114)


(3,635)


(24,613)


(3,580)

Comprehensive income
   attributable to Momo Inc.
   shareholders

591,269


666,113


96,884


1,992,730


3,011,814


438,050

 

 

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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



December 31


December 31


December 31


2017


2018


2018


RMB


RMB


US$

Assets






Current assets






   Cash and cash equivalents

4,462,194


2,468,034


358,961

   Term deposits

2,432,016


8,824,610


1,283,486

   Short-term investment

10,500


-


-

   Accounts receivable, net of allowance for
      doubtful accounts of RMB585 and RMB nil
      as of December 31, 2017 and 2018,
      respectively

257,633


719,606


104,662

   Prepaid expenses and other current assets

538,182


620,979


90,318

   Amount due from related parties 

33,460


-


-

Total current assets

7,733,985


12,633,229


1,837,427

   Property and equipment, net

258,704


387,532


56,364

   Intangible assets

48,553


1,036,986


150,823

   Rental deposits

17,249


24,192


3,519

   Long term investments

288,471


447,465


65,081

   Deferred tax assets

46,825


57,786


8,405

   Other non-current assets

55,271


71,519


10,402

   Goodwill

22,130


4,306,829


626,402

Total assets

8,471,188


18,965,538


2,758,423

Liabilities and equity






   Current liabilities






Accounts payable

484,945


718,362


104,481

   Deferred revenue

422,028


441,892


64,271

   Accrued expenses and other current
      liabilities

571,333


846,710


123,148

   Amount due to related parties

37,760


82,948


12,064

   Income tax payable

175,887


137,090


19,939

   Deferred consideration in connection with
      business acquisitions

-


469,274


68,253

Total current liabilities

1,691,953


2,696,276


392,156

Deferred tax liabilities

12,138


259,247


37,706

Convertible Senior Notes

-


4,877,116


709,347

Share-based compensation liability

-


86,767


12,620

Other non-current liabilities

14,997


23,273


3,385

Total liabilities

1,719,088


7,942,679


1,155,214

Shareholder's equity (Note a)

6,752,100


11,022,859


1,603,209

Total liabilities and shareholder's equity

8,471,188


18,965,538


2,758,423


Note a: As of December 31, 2018, the number of ordinary shares issued and outstanding was 413,876,480.

 

 

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


2017


2018


2018


2017


2018


2018


RMB


RMB


US$


RMB


RMB


US$

Cash flows from operating activities:












Net income

643,305


646,407


94,018


2,144,463


2,788,547


405,577

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












Depreciation of property and equipment

25,906


42,244


6,144


78,885


148,238


21,560

Amortization of intangible assets

1,735


39,522


5,748


4,784


93,030


13,531

Share-based compensation

82,563


198,013


28,800


334,973


580,813


84,476

Share of income on equity method
   investments

(13,398)


(13,221)


(1,923)


(39,729)


(48,660)


(7,077)

Impairment loss on long-term
   investments

-


43,200


6,283


30,085


43,200


6,283

Impairment loss on intangible assets

1,266


-


-


1,266


-


-

Loss(income) on disposal of property and
   equipment

128


(44)


(6)


112


(1,283)


(187)

Provision of allowance for doubtful accounts

-


-


-


585


(585)


(85)

Changes in operating assets and liabilities:












Accounts receivable

(49,685)


(84,973)


(12,359)


(7,725)


(440,644)


(64,089)

Prepaid expenses and other current
   assets

(150,633)


14,190


2,064


(306,838)


(67,304)


(9,789)

Amount due from related parties

(25,948)


56


8


(32,846)


33,463


4,867

Rental deposits

(810)


(4,062)


(591)


(10,902)


(3,817)


(555)

Deferred tax assets

(45,383)


(39,874)


(5,799)


(44,883)


(10,961)


(1,594)

Other non-current assets

7,119


(670)


(97)


(5,234)


(45,534)


(6,623)

Accounts payable

(1,206)


(18,987)


(2,762)


174,290


233,713


33,992

Income tax payable

91,525


81,097


11,795


152,277


(38,791)


(5,642)

Deferred revenue

113,197


12,470


1,814


135,443


(14,249)


(2,072)

Accrued expenses and other current
   liabilities

156,071


235,104


34,194


292,054


51,903


7,549

Amount due to related parties

(41,941)


25,349


3,687


(16,070)


43,024


6,258

Deferred tax liability

(343)


(9,547)


(1,389)


(969)


(22,923)


(3,334)

Other non-current liabilities

(2,653)


(2,915)


(424)


2,086


6,538


951

Net cash provided by operating activities

790,815


1,163,359


169,205


2,886,107


3,327,718


483,997


 

 

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


2017


2018


2018


2017


2018


2018


RMB


RMB


US$


RMB


RMB


US$

Cash flows from investing activities:












Purchase of property and equipment

(86,183)


(81,243)


(11,816)


(218,627)


(242,843)


(35,320)

Proceeds from disposal of property and
   equipment

1


4


1


59


2,214


322

Payment for long term investments

(20,000)


(3,000)


(436)


(53,928)


(65,125)


(9,472)

Prepayment of long term investments

(50,000)


(8,000)


(1,164)


(50,000)


(55,000)


(7,999)

Payment for acquired intangible assets

-


-


-


(18,979)


-


-

Payment for business acquisition

-


(40,632)


(5,910)


-


(3,318,841)


(482,705)

Purchase of term deposits

(480,645)


(5,300,000)


(770,853)


(4,028,058)


(20,287,302)


(2,950,666)

Cash received on maturity of term deposits

882,645


4,600,000


669,042


4,191,859


13,922,393


2,024,928

Payment for short term investments

(10,000)


(103,000)


(14,981)


(15,700)


(457,200)


(66,497)

Cash received from sales of short term
   investment

5,200


218,000


31,707


5,200


467,700


68,024

Net cash provided by (used in) investing
   activities

241,018


(717,871)


(104,410)


(188,174)


(10,034,004)


(1,459,385)

Cash flows from financing activities:












Proceeds from exercise of options

680


1


-


3,839


5,313


773

Deferred payment of purchase of property
   and equipment

-


(157)


(23)


(1,496)


(8,562)


(1,245)

Capital contribution from non-controlling
   interest shareholder

-


12


2


490


12


2

Proceeds from bank loan

-


-


-


-


1,913,190


278,262

Repayment of bank loan

-


-


-


-


(2,041,680)


(296,950)

Proceeds from issuance of convertible
   notes, net of issuance cost of
   RMB113,673

-


-


-


-


4,820,387


701,096

Payment of issuance cost of convertible
   notes

-


(709)


(103)


-


(709)


(103)

Net cash provided by (used in) financing
   activities

680


(853)


(124)


2,833


4,687,951


681,835

Effect of exchange rate changes

(8,207)


1,439


208


(26,840)


24,175


3,515

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

1,024,306


446,074


64,879


2,673,926


(1,994,160)


(290,038)

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

3,437,888


2,021,960


294,082


1,788,268


4,462,194


648,999

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

4,462,194


2,468,034


358,961


4,462,194


2,468,034


358,961

 

 

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, 2017



ended December 31, 2018




ended December 31, 2018


 

 

GAAP

RMB


Share-
based compens
ation

RMB


Non-GAAP

RMB


GAAP

RMB


Amortization
of intangible
assets from
business
acquisitions
RMB

Share-
based compensa
tion

RMB

Tax
impacts(a)
RMB


Non-GAAP

RMB


GAAP

US$


Amortization
of intangible
assets from
business
acquisitions

US$

Share-
based
compensa
tion

US$

Tax
impacts(a)
US$


Non-GAAP

US$

Cost of revenues

(1,323,876)


4,160


(1,319,716)


(2,099,265)


18,471

5,498

 

-


(2,075,296)


(305,325)


2,686

800

 

-


(301,839)

Research and
   development

(124,056)


17,028


(107,028)


(243,499)


2,345

47,215

 

 

-


(193,939)


(35,415)


341

6,867

 

 

-


(28,207)

Sales and
marketing

(374,436)


20,645


(353,791)


(618,268)


17,273

43,707

 

-


(557,288)


(89,923)


2,512

6,357

 

-


(81,054)

General and
   administrative

(117,124)


40,730


(76,394)


(234,700)


-

101,593

-


(133,107)


(34,136)


-

14,776

-


(19,360)

Cost and
   operating
   expenses

(1,939,492)


82,563


(1,856,929)


(3,195,732)


38,089

198,013

-


(2,959,630)


(464,799)


5,539

28,800

-


(430,460)

Income from
   operations

708,078


82,563


790,641


789,604


38,089

198,013

-


1,025,706


114,844


5,539

28,800

-


149,183

Net income
   attributable to
   Momo Inc.

644,803


82,563


727,366


660,837


38,089

 

 

198,013

(9,522)


887,417


96,118


5,539

 

 

28,800

(1,385)


129,072


















































 

 

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)



Year




Year


Year


ended December 31, 2017




ended December 31, 2018


ended December 31, 2018


 

 

GAAP

RMB


Share-
based
compen
sation

RMB


Non-GAAP

RMB


GAAP

RMB


Amortization
of intangible
assets from
business
acquisitions
RMB

Share-
based
compensa
tion

RMB

Tax
impacts(a)
RMB


Non-GAAP

RMB


GAAP

US$


Amortization
of intangible
assets from
business
acquisitions

US$

Share-
based
compensa
tion

US$

Tax
impacts(a)
US$


Non-GAAP

US$

Cost of revenues

(4,373,377)


13,547


(4,359,830)


(7,182,897)


42,336

21,661

 

-


(7,118,900)


(1,044,709)


6,158

3,150

 

-


(1,035,401)

Research and
development

(346,144)


59,190


(286,954)


(760,644)


5,375

152,806

 

 

-


(602,463)


(110,631)


782

22,225

 

 

-


(87,624)

Sales and
marketing

(1,467,376)


79,032


(1,388,344)


(1,812,262)


39,589

 

142,927

 

-


(1,629,746)


(263,583)


5,758

20,788

 

-


(237,037)

General and
   administrative

(422,005)


183,204


(238,801)


(640,023)


-

263,419

-


(376,604)


(93,087)


-

38,313

-


(54,774)

Cost and
   operating
   expenses

(6,608,902)


334,973


(6,273,929)


(10,395,826)


87,300

580,813

-


(9,727,713)


(1,512,010)


12,698

84,476

-


(1,414,836)

Income from
   operations

2,434,252


334,973


2,769,225


3,266,292


87,300

580,813

-


3,934,405


475,063


12,698

84,476

-


572,237

Net income
   attributable to
   Momo Inc.

2,148,098


334,973


2,483,071


2,815,775


87,300

580,813

(21,823)


3,462,065


409,537


12,698

84,476

(3,174)


503,537


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

 


Cision View original content:https://www.prnewswire.com/news-releases/momo-announces-unaudited-financial-results-for-the-fourth-quarter-and-fiscal-year-2018-300810713.html

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