Hello 6K Announces Unaudited Financial Results for the Third Quarter of 2023 | MOMO 8 Dec 23

Exhibit 99.1

Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2023

BEIJING, CHINA, December 8, 2023 – Hello Group Inc. (NASDAQ: MOMO) (“Hello Group” or the “Company”), a leading mobile social and entertainment platform in China, today announced its unaudited financial results for the third quarter of 2023.

Third Quarter of 2023 Highlights

•

Net revenues decreased by 5.9% year over year to RMB3,042.8 million (US$417.1 million^*) in the third quarter of 2023.

•

Net income attributable to Hello Group Inc. increased to RMB546.4 million (US$74.9 million) in the third quarter of 2023, from RMB450.8 million in the same period of 2022.

•

Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB605.9 million (US$83.0 million) in the third quarter of 2023, from RMB535.8 million in the same period of 2022.

•

Diluted net income per American Depositary Share (“ADS”) was RMB2.75 (US$0.38) in the third quarter of 2023, compared to RMB2.20 in the same period of 2022.

•

Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.42) in the third quarter of 2023, compared to RMB2.60 in the same period of 2022.

•

Monthly Active Users (“MAU”) on Tantan application were 15.7 million in September 2023, compared to 20.9 million in September 2022.

•

For the Momo app total paying users was 7.8 million for the third quarter of 2023, compared to 8.4 million for the same period last year. Tantan had 1.4 million paying users for the third quarter of 2023 compared to 2.0 million from the year ago period.

First Nine Months of 2023 Highlights

•

Net revenues decreased by 5.2% year over year to RMB8,999.4 million (US$1,233.5 million) for the first nine months of 2023.

•

Net income attributable to Hello Group Inc. was RMB1,505.1 million (US$206.3 million) for the first nine months of 2023, compared to RMB1,086.3 million during the same period of 2022.

•

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,710.0 million (US$234.4 million) for the first nine months of 2023, compared to RMB1,397.8 million during the same period of 2022.

•

Diluted net income per ADS was RMB7.52 (US$1.03) for the first nine months of 2023, compared to RMB5.30 during the same period of 2022.

•

Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17) for the first nine months of 2023, compared to RMB6.75 during the same period of 2022.

“We are pleased to report strong financial results for the third quarter and steady progress on various strategic priorities across all business lines.” commented Yan Tang, Chairman and CEO of Hello Group. “The group level profitability continued to grow from the prior year period, thanks to our effective cost optimization and efficiency improvement initiatives, which enabled us to maintain the stability of Momo cash cow business, turn Tantan profitable as well as support the development of new endeavors.”

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate 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 RMB7.2960 to US$1.00, the effective noon buying rate for September 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

Third Quarter of 2023 Financial Results

Net revenues

Total net revenues were RMB3,042.8 million (US$417.1 million) in the third quarter of 2023, a decrease of 5.9% from RMB3,233.0 million in the third quarter of 2022.

Live video service revenues were RMB1,530.8 million (US$209.8 million) in the third quarter of 2023, a decrease of 7.6% from RMB1,657.5 million during the same period of 2022. The decrease was primarily attributable to a soft consumer sentiment in the current macro environment, and to a lesser degree, Tantan pivoting away from the live video service which we deem not the priority for Tantan at this point for the dating service.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,466.7 million (US$201.0 million) in the third quarter of 2023, a decrease of 4.6% from RMB1,537.7 million during the same period of 2022. The decrease was primarily due to the impact of the macro economy on consumer sentiment as well as our proactive product adjustments to improve Momo app’s ecosystem, and to a lesser extent, the decline in Tantan’s paying user as we reduced marketing spending. However, the decrease was partially offset by the rapid revenue growth from the new standalone apps.

Mobile marketing revenues were RMB30.7 million (US$4.2 million) in the third quarter of 2023, an increase of 8.7% from RMB28.2 million during the same period of 2022.

Mobile games revenues were RMB7.9 million (US$1.1 million) in the third quarter of 2023, an increase of 1.9% from RMB7.7 million in the third quarter of 2022.

Net revenues from the Momo segment decreased from RMB2,891.0 million in the third quarter of 2022 to RMB2,743.1 million (US$376.0 million) in the third quarter of 2023, primarily due to the decrease in net revenues from value-added service and live video service on Momo application. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB341.3 million in the third quarter of 2022 to RMB295.0 million (US$40.4 million) in the third quarter of 2023, mainly due to the decrease in net revenues from value-added service, and to a lesser extent, the decrease from live video service.

Cost and expenses

Cost and expenses were RMB2,461.1 million (US$337.3 million) in the third quarter of 2023, a decrease of 10.0% from RMB2,734.2 million in the third quarter of 2022. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service and with virtual gift recipients of virtual gift service on the Momo application. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (b) a decrease in salary expenses and share-based compensation expenses, due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value; (c) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan’s channel marketing strategy and, to a lesser extent, Momo’s strategy to trim inefficient channel marketing spend.

Non-GAAP cost and expenses (note 1) were RMB2,401.6 million (US$329.2 million) in the third quarter of 2023, a decrease of 9.3% from RMB2,649.2 million during the same period of 2022.

Income from operations

Income from operations was RMB621.8 million (US$85.2 million) in the third quarter of 2023, compared to RMB520.1 million during the same period of 2022. Income from operations of the Momo segment was RMB618.6 million (US$84.8 million) in the third quarter of 2023, which increased from RMB569.4 million in the third quarter of 2022. Income from operations of the Tantan segment was RMB24.0 million (US$3.3 million) in the third quarter of 2023, compared to a loss from operations of RMB44.5 million in the third quarter of 2022.

Non-GAAP income from operations (note 1) was RMB681.2 million (US$93.4 million) in the third quarter of 2023, compared to RMB605.1 million during the same period of 2022. Non-GAAP income from operations of the Momo segment was RMB674.5 million (US$92.4 million) in the third quarter of 2023, which increased from RMB648.2 million in the third quarter of 2022. Non-GAAP income from operations of the Tantan segment was RMB27.6 million (US$3.8 million) in the third quarter of 2023, compared to a non-GAAP loss from operations of RMB38.3 million in the third quarter of 2022.

Income tax expenses

Income tax expenses were RMB158.1 million (US$21.7 million) in the third quarter of 2023, compared to RMB156.0 million in the third quarter of 2022. The increase in income tax expenses was primarily due to the higher profit in the third quarter of 2023.

Net income

Net income was RMB542.2 million (US$74.3 million) in the third quarter of 2023, compared to RMB449.9 million during the same period of 2022. Net income from the Momo segment was RMB540.0 million (US$74.0 million) in the third quarter of 2023, compared to RMB499.6 million in the same period of 2022. Net income from the Tantan segment was RMB23.0 million (US$3.2 million) in the third quarter of 2023, compared to a net loss of RMB45.0 million in the third quarter of 2022.

Non-GAAP net income (note 1) was RMB601.6 million (US$82.5 million) in the third quarter of 2023, compared to RMB534.8 million during the same period of 2022. Non-GAAP net income from the Momo segment was RMB595.9 million (US$81.7million) in the third quarter of 2023, which increased from RMB578.4 million in the third quarter of 2022. Non-GAAP net income of the Tantan segment was RMB26.6 million (US$3.6 million) in the third quarter of 2023, compared to a non-GAAP net loss of RMB38.8 million in the third quarter of 2022.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB546.4 million (US$74.9 million) in the third quarter of 2023, compared to RMB450.8 million during the same period of 2022.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB605.9 million (US$83.0 million) in the third quarter of 2023, compared to RMB535.8 million during the same period of 2022.

Net income per ADS

Diluted net income per ADS was RMB2.75 (US$0.38) in the third quarter of 2023, compared to RMB2.20 in the third quarter of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB3.05 (US$0.42) in the third quarter of 2023, compared to RMB2.60 in the third quarter of 2022.

Cash and cash flow

As of September 30, 2023, the Company’s cash, cash equivalents, short-term deposits, long-term deposits, short-term investments, short-term restricted cash and long-term restricted cash totaled RMB13,644.6 million (US$1,870.1 million), compared to RMB13,398.8 million as of December 31, 2022.

Net cash provided by operating activities in the third quarter of 2023 was RMB582.5 million (US$79.8 million), compared to RMB444.5 million in the third quarter of 2022.

First Nine Months of 2023 Financial Results

Net revenues for the first nine months of 2023 were RMB8,999.4 million (US$1,233.5 million), a decrease of 5.2% from RMB9,491.5 million in the same period of 2022.

Net income attributable to Hello Group Inc. was RMB1,505.1 million (US$206.3 million) for the first nine months of 2023, compared to RMB1,086.3 million during the same period of 2022.

Diluted net income per ADS was RMB7.52 (US$1.03) during the first nine months of 2023, compared to RMB5.30 in the same period of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB8.53 (US$1.17) during the first nine months of 2023, compared to RMB6.75 in the same period of 2022.

Net cash provided by operating activities was RMB1,861.3 million (US$255.1 million) during the first nine months of 2023, compared to RMB688.2 million in the same period of 2022.

Recent Development

Execution of share repurchase program

On June 7, 2022, Hello Group’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$200 million of its shares over the next 24 months. As of December 8, 2023, the Company has repurchased 16.2 million ADSs for US$86.1 million on the open market under this program, at an average purchase price of US$5.31 per ADS.

Business Outlook

For the fourth quarter of 2023, the Company expects total net revenues to be between RMB2.9 billion to RMB3.0 billion, representing a decrease of 9.7% to 6.6% year over year. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are 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, Hello Group, use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation.

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 Hello Group Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation. A limitation of using these non-GAAP financial measures is that share-based compensation has been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation 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

Hello Group’s management will host an earnings conference call on Friday, December 8, 2023, at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on December 8, 2023).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10035226-k7h0xo.html.

Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 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 December 15, 2023. The dial-in details for the replay are as follows:

U.S. / Canada: 1-855-883-1031

Hong Kong: 800-930-639

Passcode: 10035226

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Hello Group’s website at https://ir.hellogroup.com.

About Hello Group Inc.

We are a leading player in China’s online social and entertainment space. Through Momo, Tantan and other properties within our product portfolio, we enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which was added into our family of applications through acquisition in May 2018, is a leading social and dating application. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. We also operate a number of other applications to serve different social and entertainment demands from our users.

For investor and media inquiries, please contact:

Hello Group Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: ir@hellogroup.com

Christensen

In China

Ms. Xiaoyan Su

Phone: +86-10-5900-1548

E-mail: Xiaoyan.Su@christensencomms.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.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, our financial outlook for the fourth quarter of 2023, as well as the amount of, timing, methods and funding sources for repurchases of our shares under the share repurchase program.

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 third quarter of 2023 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2023 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover, 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, the impact of the COVID-19 pandemic on the Company’s business operations and the economy in China, the market price of the Company’s stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company’s cash flows from operations, general economic conditions, and other factors. 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.

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Operations

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


	Three months									First nine months
	Ended September 30									Ended September 30
	2022			2023			2023			2022			2023			2023
	RMB			RMB			US$			RMB			RMB			US$
Net revenues:
Live video service		1,657,531			1,530,797			209,813			4,786,232			4,548,986			623,490
Value-added service		1,537,666			1,466,727			201,031			4,557,481			4,327,678			593,158
Mobile marketing		28,243			30,705			4,208			92,029			88,762			12,166
Mobile games		7,719			7,864			1,078			50,416			14,169			1,942
Other services		1,862			6,754			927			5,356			19,796			2,713

Total net revenues		3,233,021			3,042,847			417,057			9,491,514			8,999,391			1,233,469
Cost and expenses:
Cost of revenues		(1,886,135	)		(1,771,530	)		(242,808	)		(5,505,369	)		(5,255,277	)		(720,296	)
Research and development		(245,105	)		(201,693	)		(27,644	)		(733,562	)		(653,145	)		(89,521	)
Sales and marketing		(467,012	)		(373,942	)		(51,253	)		(1,666,542	)		(1,110,253	)		(152,173	)
General and administrative		(135,933	)		(113,896	)		(15,611	)		(453,514	)		(376,981	)		(51,670	)

Total cost and expenses		(2,734,185	)		(2,461,061	)		(337,316	)		(8,358,987	)		(7,395,656	)		(1,013,660	)
Other operating income, net		21,289			39,971			5,478			85,790			99,284			13,608

Income from operations		520,125			621,757			85,219			1,218,317			1,703,019			233,417
Interest income		89,274			96,791			13,266			280,761			311,899			42,749
Interest expense		(25,010	)		(19,293	)		(2,644	)		(72,575	)		(41,671	)		(5,711	)
Other gain or loss, net		40,403			—			—			118,325			4,565			626

Income before income tax and share of income on equity method investments		624,792			699,255			95,841			1,544,828			1,977,812			271,081
Income tax expenses		(156,041	)		(158,064	)		(21,664	)		(452,860	)		(446,646	)		(61,218	)

Income before share of income on equity method investments		468,751			541,191			74,177			1,091,968			1,531,166			209,863
Share of (loss) income on equity method investments		(18,880	)		974			133			(8,967	)		(31,940	)		(4,378	)

Net income		449,871			542,165			74,310			1,083,001			1,499,226			205,485

Less: net loss attributable to non-controlling interest		(964	)		(4,263	)		(584	)		(3,288	)		(5,886	)		(807	)

Net income attributable to the shareholders of Hello Group Inc.		450,835			546,428			74,894			1,086,289			1,505,112			206,292

Net income per share attributable to ordinary shareholders
Basic		1.15			1.44			0.20			2.75			3.98			0.55
Diluted		1.10			1.37			0.19			2.65			3.76			0.52
Weighted average shares used in calculating net income per ordinary share
Basic		391,027,485			379,292,110			379,292,110			394,333,009			378,085,030			378,085,030
Diluted		423,608,050			398,296,690			398,296,690			429,765,849			405,490,366			405,490,366

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

First nine months

Ended September 30

2022

2023

2022

2023

RMB

US$

RMB

US$

Net income

449,871

542,165

74,310

1,083,001

1,499,226

205,485

Other comprehensive (loss) income, net of tax:

Foreign currency translation adjustment

(188,343

)

6,032

827

(328,832

)

116,188

15,925

Comprehensive income

261,528

548,197

75,137

754,169

1,615,414

221,410

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

10,831

(3,141

)

(431

)

17,710

5,377

737

Comprehensive income attributable to Hello Group Inc.

250,697

551,338

75,568

736,459

1,610,037

220,673

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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


	December 31		September 30		September 30
	2022		2023		2023
	RMB		RMB		US$
Assets
Current assets
Cash and cash equivalents		5,018,129		4,994,558		684,561
Short-term deposits		5,300,000		1,885,005		258,361
Restricted cash		97,706		9,245		1,267
Short-term investments		300,240		308,550		42,290
Accounts receivable, net of allowance for doubtful accounts of RMB5,870 and RMB13,365 as of December 31, 2022 and September 30, 2023, respectively		188,711		192,849		26,432
Amounts due from related parties		55		7,114		975
Prepaid expenses and other current assets		819,706		712,236		97,620

Total current assets		11,724,547		8,109,557		1,111,506
Long-term deposits		2,600,000		3,809,200		522,094
Long-term restricted cash		82,766		2,638,015		361,570
Right-of-use assets, net		115,520		127,804		17,517
Property and equipment, net		172,984		358,361		49,117
Intangible assets, net		22,203		18,365		2,517
Rental deposits		20,737		18,486		2,534
Long-term investments		893,988		860,306		117,915
Amounts due from RPT-non current		—		20,000		2,741
Other non-current assets		162,499		177,853		24,377
Deferred tax assets		34,343		33,470		4,587

Total assets		15,829,587		16,171,417		2,216,475

Liabilities and equity
Current liabilities
Accounts payable		617,022		642,886		88,113
Deferred revenue		484,775		474,647		65,056
Accrued expenses and other current liabilities		797,504		648,156		88,837
Amounts due to related parties		9,178		3,675		504
Lease liabilities due within one year		88,352		56,681		7,769
Income tax payable		68,765		89,263		12,235
Dividends payable		—		21,012		2,879
Deferred consideration in connection with business acquisitions		26,483		28,014		3,840
Long-term borrowings, current portion		—		215,615		29,552
Convertible senior notes-current		2,646,168		—		—

Total current liabilities		4,738,247		2,179,949		298,785
Deferred tax liabilities		22,011		151,578		20,775
Convertible Senior Notes		—		20,094		2,754
Long-term borrowings		—		1,938,385		265,678
Lease liabilities		33,281		66,285		9,085
Other non-current liabilities		105,410		95,958		13,152

Total liabilities		4,898,949		4,452,249		610,229
Shareholder’s equity (i)		10,930,638		11,719,168		1,606,246

Total liabilities and shareholder’s equity		15,829,587		16,171,417		2,216,475

(i):	As of September 30, 2023, the number of ordinary shares outstanding was 379,881,912.

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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


	Three months									First nine months
	Ended September 30									Ended September 30
	2022			2023			2023			2022			2023			2023
	RMB			RMB			US$			RMB			RMB			US$
Cash flows from operating activities:
Net income		449,871			542,165			74,310			1,083,001			1,499,226			205,485
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment		27,047			17,467			2,394			83,107			59,098			8,100
Amortization of intangible assets		1,279			1,279			175			3,837			3,837			526
Share-based compensation		84,976			59,472			8,151			311,540			204,877			28,081
Share of loss (income) on equity method investments		18,880			(974	)		(133	)		8,967			31,940			4,378
Gain on repurchase of convertible senior notes		(51,653	)		—			—			(129,575	)		(4,565	)		(626	)
Loss on long-term investments		11,250			—			—			11,250			—			—
Cash received on distributions from equity method investments		—			718			98			1,708			2,067			283
Gain or loss on disposal of property and equipment		(923	)		(60	)		(8	)		(783	)		(520	)		(71	)
Provision of (income) loss on receivable and other assets		(820	)		(133	)		(18	)		(453	)		10,071			1,380
Changes in operating assets and liabilities:
Accounts receivable		22,973			10,749			1,473			15,695			(9,916	)		(1,359	)
Prepaid expenses and other current assets		41,418			(96,572	)		(13,236	)		(16,144	)		98,294			13,472
Amounts due from related parties		—			(27,114	)		(3,716	)		—			(27,059	)		(3,709	)
Rental deposits		716			1,301			178			1,399			2,252			309
Deferred tax assets		590			415			57			(986	)		872			120
Other non-current assets		16,130			(50,578	)		(6,932	)		76,820			(27,639	)		(3,788	)
Accounts payable		(438	)		6,987			958			(106,392	)		38,825			5,321
Income tax payable		(15,635	)		24,215			3,319			(50,923	)		20,496			2,809
Deferred revenue		(19,356	)		11,736			1,609			(73,891	)		(11,137	)		(1,526	)
Accrued expenses and other current liabilities		(108,513	)		15,374			2,107			(304,346	)		(172,186	)		(23,600	)
Amount due to related parties		7,824			(8,401	)		(1,151	)		4,427			(5,504	)		(754	)
Deferred tax liabilities		(14,425	)		47,681			6,535			(171,752	)		130,198			17,845
Other non-current liabilities		(26,655	)		26,741			3,665			(58,311	)		17,757			2,434

Net cash provided by operating activities		444,536			582,468			79,835			688,195			1,861,284			255,110
Cash flows from investing activities:
Purchase of property and equipment		(27,051	)		(238,219	)		(32,651	)		(70,392	)		(259,463	)		(35,562	)
Payment for long-term investments		—			—			—			(55,343	)		(9,000	)		(1,234	)
Purchase of short-term deposits		(1,700,000	)		(531,214	)		(72,809	)		(1,700,000	)		(1,028,556	)		(140,975	)
Cash received on maturity of short-term deposits		2,700,000			1,900,000			260,417			3,710,000			5,409,820			741,478
Cash received on investment income distribution		—			—			—			3,523			1,517			208
Purchase of long-term deposits		(1,000,000	)		(2,498,860	)		(342,497	)		(2,550,000	)		(3,848,860	)		(527,530	)
Cash received on maturity of long-term deposits		—			1,700,000			233,004			1,200,000			1,700,000			233,004
Cash received from sales of long-term investment		—			15,000			2,056			—			15,000			2,056
Other investing activities		2,781			137			19			3,103			1,822			250

Net cash (used in) provided by investing activities		(24,270	)		346,844			47,539			540,891			1,982,280			271,695
Cash flows from financing activities:
Deferred payment for business acquisition		(15,858	)		—			—			(21,421	)		—			—
Proceeds from exercise of share options		18			551			76			51			570			78
Repurchase of ordinary shares		(285,355	)		(58,767	)		(8,055	)		(287,690	)		(62,004	)		(8,498	)
Repurchase of subsidiary’s share options		(14,330	)		(223	)		(31	)		(39,867	)		(4,319	)		(592	)
Dividends payment		—			—			—			(840,997	)		(937,249	)		(128,461	)
Proceeds from long-term borrowings		—			2,154,000			295,230			—			2,154,000			295,230
Payment for redemption of convertible bonds		(1,024,443	)		(86,932	)		(11,915	)		(2,136,987	)		(2,679,942	)		(367,317	)

Net cash (used in) provided by financing activities		(1,339,968	)		2,008,629			275,305			(3,326,911	)		(1,528,944	)		(209,560	)
Effect of exchange rate changes		(6,190	)		(7,837	)		(1,075	)		72,096			128,597			17,625

Net (decrease) increase in cash and cash equivalents		(925,892	)		2,930,104			401,604			(2,025,729	)		2,443,217			334,870
Cash, cash equivalents and restricted cash at the beginning of period		4,547,197			4,711,714			645,794			5,647,034			5,198,601			712,528
Cash, cash equivalents and restricted cash at the end of period		3,621,305			7,641,818			1,047,398			3,621,305			7,641,818			1,047,398

Hello Group 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 September 30, 2022								Ended September 30, 2023								Ended September 30, 2023
	GAAP RMB			Share-based compensation RMB		Non-GAAP RMB			GAAP RMB			Share-based compensation RMB		Non-GAAP RMB			GAAP US$			Share-based compensation US$		Non-GAAP US$
Cost of revenues		(1,886,135	)		1,496		(1,884,639	)		(1,771,530	)		1,211		(1,770,319	)		(242,808	)		166		(242,642	)
Research and development		(245,105	)		21,713		(223,392	)		(201,693	)		14,993		(186,700	)		(27,644	)		2,055		(25,589	)
Sales and marketing		(467,012	)		8,453		(458,559	)		(373,942	)		5,854		(368,088	)		(51,253	)		802		(50,451	)
General and administrative		(135,933	)		53,314		(82,619	)		(113,896	)		37,414		(76,482	)		(15,611	)		5,128		(10,483	)

Cost and operating expenses		(2,734,185	)		84,976		(2,649,209	)		(2,461,061	)		59,472		(2,401,589	)		(337,316	)		8,151		(329,165	)
Income from operations		520,125			84,976		605,101			621,757			59,472		681,229			85,219			8,151		93,370
Net income attributable to Hello Group Inc.		450,835			84,976		535,811			546,428			59,472		605,900			74,894			8,151		83,045

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands, except per share data)

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


	First nine months								First nine months								First nine months
	Ended September 30, 2022								Ended September 30, 2023								Ended September 30, 2023
	GAAP RMB			Share-based compensation RMB		Non-GAAP RMB			GAAP RMB			Share-based compensation RMB		Non-GAAP RMB			GAAP US$			Share-based compensation US$		Non-GAAP US$
Cost of revenues		(5,505,369	)		12,488		(5,492,881	)		(5,255,277	)		4,398		(5,250,879	)		(720,296	)		603		(719,693	)
Research and development		(733,562	)		66,652		(666,910	)		(653,145	)		51,186		(601,959	)		(89,521	)		7,016		(82,505	)
Sales and marketing		(1,666,542	)		29,952		(1,636,590	)		(1,110,253	)		20,413		(1,089,840	)		(152,173	)		2,798		(149,375	)
General and administrative		(453,514	)		202,448		(251,066	)		(376,981	)		128,880		(248,101	)		(51,670	)		17,664		(34,006	)

Cost and operating expenses		(8,358,987	)		311,540		(8,047,447	)		(7,395,656	)		204,877		(7,190,779	)		(1,013,660	)		28,081		(985,579	)
Income from operations		1,218,317			311,540		1,529,857			1,703,019			204,877		1,907,896			233,417			28,081		261,498
Net income attributable to Hello Group Inc.		1,086,289			311,540		1,397,829			1,505,112			204,877		1,709,989			206,292			28,081		234,373

Hello Group Inc.

Unaudited Condensed Segment Report

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


	Three months
	Ended September 30, 2023
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$
Net revenues:
Live video service		1,410,844			119,953			—			1,530,797			209,813
Value-added service		1,298,329			168,398			—			1,466,727			201,031
Mobile marketing		24,039			6,666			—			30,705			4,208
Mobile games		7,864			—			—			7,864			1,078
Other services		1,981			—			4,773			6,754			927

Total net revenues		2,743,057			295,017			4,773			3,042,847			417,057
Cost and expenses (ii):
Cost of revenues		(1,606,261	)		(145,346	)		(19,923	)		(1,771,530	)		(242,808	)
Research and development		(151,649	)		(50,044	)		—			(201,693	)		(27,644	)
Sales and marketing		(298,919	)		(71,978	)		(3,045	)		(373,942	)		(51,253	)
General and administrative		(105,339	)		(5,656	)		(2,901	)		(113,896	)		(15,611	)

Total cost and expenses		(2,162,168	)		(273,024	)		(25,869	)		(2,461,061	)		(337,316	)
Other operating income, net		37,750			1,985			236			39,971			5,478

Income (loss) from operations		618,639			23,978			(20,860	)		621,757			85,219
Interest income		96,680			94			17			96,791			13,266
Interest expense		(19,293	)		—			—			(19,293	)		(2,644	)

Income (loss) before income tax and share of income on equity method investments		696,026			24,072			(20,843	)		699,255			95,841
Income tax expenses		(156,992	)		(1,072	)		—			(158,064	)		(21,664	)

Income (loss) before share of income on equity method investments		539,034			23,000			(20,843	)		541,191			74,177
Share of loss on equity method investments		974			—			—			974			133

Net income (loss)		540,008			23,000			(20,843	)		542,165			74,310

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


	Three months
	Ended September 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		1,207		4		—		1,211		166
Research and development		11,401		3,592		—		14,993		2,055
Sales and marketing		5,854		—		—		5,854		802
General and administrative		37,406		8		—		37,414		5,128

Total cost and expenses		55,868		3,604		—		59,472		8,151

Hello Group 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 September 30, 2023
	Momo		Tantan		QOOL			Total		Total
	RMB		RMB		RMB			RMB		US$
Income (loss) from operations		618,639		23,978		(20,860	)		621,757		85,219
Share-based compensation		55,868		3,604		—			59,472		8,151

Non-GAAP income (loss) from operations		674,507		27,582		(20,860	)		681,229		93,370
Net income (loss)		540,008		23,000		(20,843	)		542,165		74,310
Share-based compensation		55,868		3,604		—			59,472		8,151

Non-GAAP net income (loss)		595,876		26,604		(20,843	)		601,637		82,461

Hello Group Inc.

Unaudited Condensed Segment Report

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


	Three months
	Ended September 30, 2022
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$¹
Net revenues:
Live video service		1,517,872			139,659			—			1,657,531			233,012
Value-added service		1,336,050			201,616			—			1,537,666			216,162
Mobile marketing		28,243			—			—			28,243			3,970
Mobile games		7,719			—			—			7,719			1,085
Other services		1,126			—			736			1,862			262

Total net revenues		2,891,010			341,275			736			3,233,021			454,491
Cost and expenses (iii):
Cost of revenues		(1,704,934	)		(180,277	)		(924	)		(1,886,135	)		(265,149	)
Research and development		(176,727	)		(68,378	)		—			(245,105	)		(34,456	)
Sales and marketing		(335,350	)		(130,222	)		(1,440	)		(467,012	)		(65,652	)
General and administrative		(124,184	)		(8,574	)		(3,175	)		(135,933	)		(19,109	)

Total cost and expenses		(2,341,195	)		(387,451	)		(5,539	)		(2,734,185	)		(384,366	)
Other operating income		19,563			1,722			4			21,289			2,993

Income (loss) from operations		569,378			(44,454	)		(4,799	)		520,125			73,118
Interest income		89,003			187			84			89,274			12,550
Interest expense		(25,010	)		—			—			(25,010	)		(3,516	)
Other gain or loss, net		40,403			—			—			40,403			5,680

Income (loss) before income tax and share of income on equity method investments		673,774			(44,267	)		(4,715	)		624,792			87,832
Income tax expenses		(155,328	)		(713	)		—			(156,041	)		(21,936	)

Income (loss) before share of income on equity method investments		518,446			(44,980	)		(4,715	)		468,751			65,896
Share of loss on equity method investments		(18,880	)		—			—			(18,880	)		(2,654	)

Net income (loss)		499,566			(44,980	)		(4,715	)		449,871			63,242

(iii)

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


	Three months
	Ended September 30, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		1,478		18		—		1,496		210
Research and development		15,640		6,073		—		21,713		3,052
Sales and marketing		8,446		7		—		8,453		1,188
General and administrative		53,272		42		—		53,314		7,495

Total cost and expenses		78,836		6,140		—		84,976		11,945

¹	All translations from RMB to U.S. dollars are made at a rate of RMB7.1135 to US$1.00, the effective noon buying rate for September 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.

Hello Group 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 September 30, 2022
	Momo		Tantan			QOOL			Total		Total
	RMB		RMB			RMB			RMB		US$
Income (loss) from operations		569,378		(44,454	)		(4,799	)		520,125		73,118
Share-based compensation		78,836		6,140			—			84,976		11,945

Non-GAAP income (loss) from operations		648,214		(38,314	)		(4,799	)		605,101		85,063
Net income (loss)		499,566		(44,980	)		(4,715	)		449,871		63,242
Share-based compensation		78,836		6,140			—			84,976		11,945

Non-GAAP net income (loss)		578,402		(38,840	)		(4,715	)		534,847		75,187

Hello Group Inc.

Unaudited Condensed Segment Report

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


	First nine months
	Ended September 30, 2023
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$
Net revenues:
Live video service		4,144,164			404,822			—			4,548,986			623,490
Value-added service		3,821,183			506,495			—			4,327,678			593,158
Mobile marketing		75,730			13,032			—			88,762			12,166
Mobile games		14,169			—			—			14,169			1,942
Other services		14,577			—			5,219			19,796			2,713

Total net revenues		8,069,823			924,349			5,219			8,999,391			1,233,469
Cost and expenses (iv):
Cost of revenues		(4,765,127	)		(469,111	)		(21,039	)		(5,255,277	)		(720,296	)
Research and development		(483,997	)		(169,148	)		—			(653,145	)		(89,521	)
Sales and marketing		(894,462	)		(210,208	)		(5,583	)		(1,110,253	)		(152,173	)
General and administrative		(349,614	)		(19,600	)		(7,767	)		(376,981	)		(51,670	)

Total cost and expenses		(6,493,200	)		(868,067	)		(34,389	)		(7,395,656	)		(1,013,660	)
Other operating income		95,876			3,110			298			99,284			13,608

Income (loss) from operations		1,672,499			59,392			(28,872	)		1,703,019			233,417
Interest income		311,157			656			86			311,899			42,749
Interest expense		(41,671	)		—			—			(41,671	)		(5,711	)
Other gain or loss, net		4,565			—			—			4,565			626

Income (loss) before income tax and share of income on equity method investments		1,946,550			60,048			(28,786	)		1,977,812			271,081
Income tax expenses		(443,175	)		(3,471	)		—			(446,646	)		(61,218	)

Income (loss) before share of income on equity method investments		1,503,375			56,577			(28,786	)		1,531,166			209,863
Share of income on equity method investments		(31,940	)		—			—			(31,940	)		(4,378	)

Net income (loss)		1,471,435			56,577			(28,786	)		1,499,226			205,485

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


	First nine months
	Ended September 30, 2023
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		4,262		136		—		4,398		603
Research and development		36,793		14,393		—		51,186		7,016
Sales and marketing		20,408		5		—		20,413		2,798
General and administrative		128,856		24		—		128,880		17,664

Total cost and expenses		190,319		14,558		—		204,877		28,081

Hello Group Inc.

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

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


	First nine months
	ended September 30, 2023
	Momo		Tantan		QOOL			Total		Total
	RMB		RMB		RMB			RMB		US$
Operating income (loss)		1,672,498		59,392		(28,871	)		1,703,019		233,417
Share-based compensation		190,319		14,558		—			204,877		28,081

Non-GAAP operating income (loss)		1,862,817		73,950		(28,871	)		1,907,896		261,498
Net income (loss)		1,471,435		56,577		(28,786	)		1,499,226		205,485
Share-based compensation		190,319		14,558		—			204,877		28,081

Non-GAAP net income (loss)		1,661,754		71,135		(28,786	)		1,704,103		233,566

Hello Group Inc.

Unaudited Condensed Segment Report

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


	First nine months
	Ended September 30, 2022
	Momo			Tantan			QOOL			Total			Total
	RMB			RMB			RMB			RMB			US$
Net revenues:
Live video service		4,404,991			381,241			—			4,786,232			672,838
Value-added service		3,917,609			639,872			—			4,557,481			640,681
Mobile marketing		92,029			—			—			92,029			12,937
Mobile games		50,416			—			—			50,416			7,087
Other services		4,298			—			1,058			5,356			753

Total net revenues		8,469,343			1,021,113			1,058			9,491,514			1,334,296
Cost and expenses (v):
Cost of revenues		(4,981,345	)		(522,188	)		(1,836	)		(5,505,369	)		(773,933	)
Research and development		(536,640	)		(196,922	)		—			(733,562	)		(103,123	)
Sales and marketing		(1,039,526	)		(623,680	)		(3,336	)		(1,666,542	)		(234,279	)
General and administrative		(415,954	)		(25,335	)		(12,225	)		(453,514	)		(63,754	)

Total cost and expenses		(6,973,465	)		(1,368,125	)		(17,397	)		(8,358,987	)		(1,175,089	)
Other operating income		76,253			9,491			46			85,790			12,060

Income (loss) from operations		1,572,131			(337,521	)		(16,293	)		1,218,317			171,267
Interest income		280,252			291			218			280,761			39,469
Interest expense		(72,575	)		—			—			(72,575	)		(10,202	)
Other gain or loss, net		118,325			—			—			118,325			16,634

Income (loss) before income tax and share of income on equity method investments		1,898,133			(337,230	)		(16,075	)		1,544,828			217,168
Income tax expenses		(451,061	)		(1,799	)		—			(452,860	)		(63,662	)

Income (loss) before share of income on equity method investments		1,447,072			(339,029	)		(16,075	)		1,091,968			153,506
Share of loss on equity method investments		(8,967	)		—			—			(8,967	)		(1,261	)

Net income (loss)		1,438,105			(339,029	)		(16,075	)		1,083,001			152,245

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


	First nine months
	Ended September 30, 2022
	Momo		Tantan		QOOL		Total		Total
	RMB		RMB		RMB		RMB		US$
Cost of revenues		5,477		7,011		—		12,488		1,756
Research and development		51,752		14,900		—		66,652		9,370
Sales and marketing		29,729		223		—		29,952		4,211
General and administrative		202,319		129		—		202,448		28,460

Total cost and expenses		289,277		22,263		—		311,540		43,797

Hello Group Inc.

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

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


	First nine months
	ended September 30, 2022
	Momo		Tantan			QOOL			Total		Total
	RMB		RMB			RMB			RMB		US$
Operating income (loss)		1,572,131		(337,521	)		(16,293	)		1,218,317		171,267
Share-based compensation		289,277		22,263			—			311,540		43,797

Non-GAAP operating income (loss)		1,861,408		(315,258	)		(16,293	)		1,529,857		215,064
Net income (loss)		1,438,105		(339,029	)		(16,075	)		1,083,001		152,245
Share-based compensation		289,277		22,263			—			311,540		43,797

Non-GAAP net income (loss)		1,727,382		(316,766	)		(16,075	)		1,394,541		196,042

Hello (MOMO) 6-KHello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2023