EX-99.1 2 d626983dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Momo Announces Unaudited Financial Results for the Third Quarter of 2018

BEIJING, December 5, 2018 / 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 third quarter of 2018.

Third Quarter of 2018 Highlights

 

   

Net revenues increased 51% year over year to $536.0 million in the third quarter of 2018.

 

   

Net income attributable to Momo Inc. increased to $85.2 million in the third quarter of 2018 from $79.1 million in the same period last year.

 

   

Non-GAAP net income attributable to Momo Inc. (note 1) increased 22% to $114.3 million in the third quarter of 2018 from $93.8 million in the same period last year.

 

   

Diluted net income per American Depositary Share (“ADS”) was $0.39, compared to $0.38 in the same period last year.

 

   

Non-GAAP diluted net income per ADS (note 1) was $0.53, compared to $0.45 in the same period last year.

 

   

Monthly Active Users (“MAU”) on Momo application were 110.5 million in September 2018, compared to 94.4 million in September 2017.

 

   

Total paying users of our live video service and value-added service, without double counting the overlap, including 3.6 million paying users of Tantan Limited (“Tantan”), were 12.5 million for the third quarter of 2018, compared to 7.3 million for the third quarter of 2017.

First Nine Months of 2018 Highlights

 

   

Net revenues increased 57% year over year to $1,465.4 million for the first nine months of 2018.

 

   

Net income attributable to Momo Inc. was $332.8 million for the first nine months of 2018, compared with $221.1 million during the same period of 2017.

 

   

Non-GAAP net income attributable to Momo Inc. (note 1) was $396.7 million for the first nine months of 2018, compared with $258.2 million during the same period of 2017.

 

   

Diluted net income per ADS was $1.57 for the first nine months of 2018, compared with $1.07 during the same period of 2017.

 

   

Non-GAAP diluted income per ADS (note 1) was $1.87 for the first nine months of 2018, compared with $1.24 during the same period of 2017.

“I am pleased that we delivered solid operational and financial results for the quarter.” Commented Yan Tang, Chairman and CEO of Momo. “At the same time we continued to push forward on product and operational fronts, in order to build up longer term growth drivers as we start to look beyond 2018 into next year.”

Third Quarter of 2018 Financial Results

Net revenues

Total net revenues were $536.0 million in the third quarter of 2018, an increase of 51% from $354.5 million in the third quarter of 2017.

 

1


Live video service revenues were $406.9 million in the third quarter of 2018, an increase of 34% from $302.6 million during the same period of 2017. The growth in live video revenues was contributed by the increase in the quarterly paying users, as well as the increase in the 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 $84.2 million in the third quarter of 2018, an increase of 221% from $26.3 million during the same period of 2017. The year over year increase was primarily attributable to the continuous growth of the virtual gift business on the Momo application and to a lesser extent, the consolidation of Tantan’s membership subscription revenues for the whole third quarter of 2018. The growth of the virtual gift business was driven by more paying use cases introduced to enhance the social experience for Momo users.

Mobile marketing revenues were $17.2 million in the third quarter of 2018, a decrease of 1% from $17.4 million during the same period of 2017.

Mobile games revenues were $4.1 million in the third quarter of 2018, a decrease of 49% from $8.0 million in the third quarter of 2017. The decrease in game revenues was mainly due to the decrease in quarterly paying users.

Revenues from other services in the third 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 $442.1 million in the third quarter of 2018, an increase of 66% from $266.3 million in the third 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) the produced contents in connection with Phanta City; (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 marketing and promotional expenses to enhance our brand awareness and attract users; and (e) an increase in amortization expenses related to the intangible assets from acquisitions.

Non-GAAP cost and expenses (note 1) were $411.7 million in the third quarter of 2018, an increase of 64% from $251.7 million during the same period last year.

Income from operations

Income from operations was $94.6 million in the third quarter of 2018, compared to $89.0 million during the same period last year.

Non-GAAP income from operations (note 1) was $125.1 million in the third quarter of 2018, compared to $103.7 million during the same period last year.

Income tax expenses

Income tax expenses were $21.6 million in the third quarter of 2018, increased from $17.2 million in the third quarter of 2017. The increase was mainly because we generated higher profit in the third quarter of 2018.

 

2


Net income attributable to Momo Inc.

Net income attributable to Momo Inc. was $85.2 million in the third quarter of 2018, compared to $79.1 million during the same period last year.

Non-GAAP net income (note 1) attributable to Momo Inc. was $114.3 million in the third quarter of 2018, compared to $93.8 million during the same period last year.

Net income per ADS

Diluted net income per ADS was $0.39 in the third quarter of 2018, compared to $0.38 in the third quarter of 2017.

Non-GAAP diluted net income per ADS (note 1) was $0.53 in the third quarter of 2018, compared to $0.45 in the third quarter of 2017.

Cash and cash flow

As of September 30, 2018, Momo’s cash, cash equivalents, term deposits, restricted cash and short-term investment totaled $1,493.6 million, compared to $1,061.2 million as of December 31, 2017. Net cash provided by operating activities in the third quarter of 2018 was $50.9 million, compared to $104.6 million for the same quarter of 2017. The decrease in the operating cash flow for the quarter was primarily because revenues from the TV show Phanta City still sit as accounts receivable on the balance sheet while related costs have largely been paid.

First Nine Months of 2018 Financial Results

Net revenues for the first nine months of 2018 were $1,465.4 million, an increase of 57% from $931.9 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 $332.8 million in the first nine months of 2018, compared to $221.1 million during the same period of 2017.

Non-GAAP net income attributable to Momo Inc. (note 1) was $396.7 million in the first nine months of 2018, compared to $258.2 million during the same period of 2017.

Diluted net income per ADS was $1.57 during the first nine months of 2018, compared to $1.07 in the same period of 2017.

Non-GAAP diluted net income per ADS (note 1) was $1.87 during the first nine months of 2018, compared to $1.24 in the same period of 2017.

Net cash provided by operating activities was $336.5 million during the first nine months of 2018, compared to $308.0 million in the same period of 2017.

 

3


Recent Development - changes to the Board of Directors

The Company also announced several changes to its board of directors (the “Board”). Mr. Yongming Wu, a director and founding partner of Vision Plus Capital and a co-founder of Alibaba Group, has been appointed to be a director of Momo’s Board, effective on December 3, 2018. Mr. Wu founded Vision Plus Capital in 2015 and has led several key business segments of Alibaba Group. In addition, Mr. Neil Nanpeng Shen resigned from the Board on December 1, 2018, effective immediately. The resignation of Mr. Neil Nanpeng Shen was not due to any disagreement with the Company regarding its business, finance, accounting and/or any other affairs.

Business Outlook

For the fourth quarter of 2018, the Company expects total net revenues to be between RMB3,655.0 million to RMB3,755.0 million, representing an increase of 43% to 47% year over year and an increase of 0% to 3% quarter over quarter, on a constant currency basis. Excluding the revenues from Phanta City, the Company expects the total revenues for the fourth quarter of 2018 to be between RMB3,624.0 million to RMB3,724.0 million, representing an increase of 42% to 46% year over year and an increase of 4% to 7% quarter over quarter, 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 acquisitions, and provision for income tax related to the amortization of intangible assets.

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 earnings per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation, amortization of intangible assets from acquisitions, and provision for income tax related to the amortization of intangible assets. A limitation of using these non-GAAP financial measures is that share-based compensation, amortization of intangible assets from acquisitions and provision for income tax related to the amortization of intangible assets charge has 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.

 

4


Conference Call

Momo’s management will host an earnings conference call on Thursday, December 6, 2018 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong Time on December 6, 2018).

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, December 14, 2018. The dial-in details for the replay are as follows:

International: +61-2-8199-0299

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

Passcode: 3986625

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.

 

5


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 fourth quarter of 2018.

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 2018 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2018 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.

 

6


Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

(US dollars in thousands, except per share data)

 

     Three months     First nine months  
   ended September 30     ended September 30  
     2017     2018     2017     2018  

Net revenues:

        

Live video service

     302,603       406,905       774,597       1,189,378  

Value-added service

     26,256       84,216       73,759       176,428  

Mobile marketing

     17,441       17,241       54,348       58,214  

Mobile games

     8,024       4,097       28,728       16,198  

Other services

     129       23,511       483       25,151  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     354,453       535,970       931,915       1,465,369  

Cost and expenses:

        

Cost of revenues

     (177,967     (298,527     (449,079     (777,871

Research and development

     (13,855     (36,097     (32,731     (78,699

Sales and marketing

     (57,734     (82,809     (160,815     (181,704

General and administrative

     (16,792     (24,713     (44,870     (61,947
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost and expenses

     (266,348     (442,146     (687,495     (1,100,221

Other operating income

     897       779       9,371       17,558  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     89,002       94,603       253,791       382,706  

Interest income

     6,029       12,155       14,409       27,934  

Interest expense

     —         (3,588     —         (5,538

Impairment loss on long-term investments

     —         —         (4,386     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     95,031       103,170       263,814       405,102  

Income tax expenses

     (17,218     (21,567     (46,933     (79,615
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before share of income on equity method investments

     77,813       81,603       216,881       325,487  

Share of income on equity method investments

     1,166       2,428       3,863       5,399  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     78,979       84,031       220,744       330,886  
  

 

 

   

 

 

   

 

 

   

 

 

 

Less: net loss attributable to non-controlling interest

     (110     (1,125     (315     (1,933
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Momo Inc.

     79,089       85,156       221,059       332,819  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to ordinary shareholders

        

Basic

     0.20       0.21       0.56       0.82  

Diluted

     0.19        0.20 *       0.53        0.78 *  

Weighted average shares used in calculating net income per ordinary share

        

Basic

     395,926,878       409,378,536       393,469,398       404,744,362  

Diluted

     417,066,439       445,871,236       414,884,571       428,148,904  

 

* 

Net income attributable to Momo is adjusted for interest expense of Convertible Senior Notes for calculation of dilutive EPS.

 

7


Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

(US dollars in thousands, except per share data)

 

     Three months     First nine months  
   ended September 30     ended September 30  
     2017     2018     2017     2018  

Net income

     78,979       84,031       220,744       330,886  

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

        

Foreign currency translation adjustment

     9,021       (36,753     17,964       (60,755
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

     88,000       47,278       238,708       270,131  

Less: comprehensive loss attributed to the non-controlling interest

     (115     (1,192     (322     (2,017
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Momo Inc. shareholders

     88,115       48,470       239,030       272,148  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

8


Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

( US dollars in thousands)

 

     December 31
2017
     September 30
2018
 

Assets

     

Current assets

     

Cash and cash equivalents

     685,827        285,195  

Term deposits

     373,794        1,182,454  

Restricted cash

     —          9,208  

Short-term investment

     1,614        16,744  

Accounts receivable, net of allowance for doubtful accounts of $90 and $nil as of December 31, 2017 and September 30, 2018, respectively

     39,597        92,404  

Prepaid expenses and other current assets

     82,717        91,892  

Amount due from related parties

     5,143        8  
  

 

 

    

 

 

 

Total current assets

     1,188,692        1,677,905  

Property and equipment, net

     39,762        48,776  

Intangible assets

     7,462        156,549  

Rental deposits

     2,651        2,931  

Long term investments

     44,337        67,326  

Deferred tax assets, non-current

     7,197        2,608  

Other non-current assets

     8,495        10,898  

Goodwill

     3,401        626,406  
  

 

 

    

 

 

 

Total assets

     1,301,997        2,593,399  
  

 

 

    

 

 

 

Liabilities and equity

     

Current liabilities

     

Accounts payable

     74,535        104,836  

Deferred revenue

     64,865        62,525  

Accrued expenses and other current liabilities

     87,809        89,732  

Amount due to related parties

     5,804        8,380  

Income tax payable

     27,033        12,645  

Deferred consideration in connection with business acquisitions

     —          74,131  
  

 

 

    

 

 

 

Total current liabilities

     260,046        352,249  

Deferred tax liabilities, non-current

     1,866        39,137  

Share-based compensation liability

     —          4,323  

Convertible Senior Notes

     —          708,771  

Other non-current liabilities

     2,305        3,807  
  

 

 

    

 

 

 

Total liabilities

     264,217        1,108,287  

Shareholder’s equity (Note a)

     1,037,780        1,485,112  
  

 

 

    

 

 

 

Total liabilities and shareholder’s equity

     1,301,997        2,593,399  
  

 

 

    

 

 

 

Note a: As of September 30, 2018, the number of ordinary shares issued and outstanding was 413,200,744.

 

9


Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

(US dollars in thousands)

 

     Three months     First nine months  
     ended September 30     ended September 30  
     2017     2018     2017     2018  

Cash flows from operating activities:

        

Net income

     78,979       84,031       220,744       330,886  

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

        

Depreciation of property and equipment

     3,220       5,773       7,805       16,232  

Amortization of intangible assets

     269       5,720       452       8,007  

Share-based compensation

     14,664       24,974       37,171       58,367  

Share of income on equity method investment

     (1,166     (2,428     (3,863     (5,399

Impairment loss on long-term investments

     —         —         4,386       —    

Income on disposal of property and equipment

     —         (182     (2     (182

Provision of allowance for doubtful accounts

     —         —         85       (92

Changes in operating assets and liabilities:

        

Accounts receivable

     6,605       (61,716     6,287       (51,595

Prepaid expenses and other current assets

     (10,429     (26,885     (23,045     (14,363

Amount due from related parties

     (506     1,966       (1,019     5,102  

Rental deposits

     (27     (85     (1,467     44  

Deferred tax assets

     —         50       73       4,535  

Other non-current assets

     (1,046     (980     (1,827     (6,976

Accounts payable

     14,339       23,363       25,960       38,089  

Income tax payable

     800       (726     8,843       (15,365

Deferred revenue

     1,966       4,790       3,299       (4,532

Accrued expenses and other current liabilities

     (5,574     (7,692     19,702       (28,312

Amount due to related parties

     2,638       2,536       3,846       2,602  

Deferred tax liability

     (47     (1,430     (93     (2,001

Other non-current liabilities

     (109     (182     684       1,501  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     104,576       50,897       308,021       336,548  

Cash flows from investing activities:

        

Purchase of property and equipment

     (7,937     (10,491     (19,281     (24,673

Payment for acquired intangible assets

     (228     —         (2,993     —    

Proceeds from disposal of property and equipment

     1       323       8       324  

Payment for long term investments

     (1,350     (1,176     (4,979     (9,666

Prepayment of long term investments

     —         —         —         (7,398

Payment for business acquisition

     —         —         —         (514,919

Purchase of term deposits

     (127,781     (1,089,995     (519,749     (2,279,078

Cash received on maturity of term deposits

     99,984       308,569       484,093       1,442,514  

Payment for short term investments

     (855     (52,045     (855     (52,045

Cash received from sales of short term investment

     —         35,148       —         36,801  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (38,166     (809,667     (63,756     (1,408,140

Cash flows from financing activities:

        

Proceeds from exercise of options

     51       414       461       807  

Deferred payment of purchase of property and equipment

     (13     —         (217     (1,322

Capital contribution from non-controlling interest shareholder

     73       —         73       —    

Proceeds from bank loan

     —         —         —         300,000  

Repayment of bank loan

     —         (300,000     —         (300,000

Proceeds from issuance of Convertible Senior Notes, net of issuance cost of $16,703

     —         708,297       —         708,297  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     111       408,711       317       707,782  

Effect of exchange rate changes

     7,110       (18,932     14,573       (27,614
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     73,631       (368,991     259,155       (391,424

Cash, cash equivalent and restricted cash at beginning of period

     443,088       663,394       257,564       685,827  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalent and restricted cash at end of period

     516,719       294,403       516,719       294,403  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10


Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(US dollars 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  
   ended September 30, 2017     ended September 30, 2018  
     GAAP     Share-based
compensation
     Non-GAAP     GAAP     Amortization
of intangible
assets from
acquisitions
    Share-based
compensation
     Non-GAAP  

Cost of revenues

     (177,967     632        (177,335     (298,527     2,672       864        (294,991

Research and development

     (13,855     2,751        (11,104     (36,097     339       6,747        (29,011

Sales and marketing

     (57,734     3,492        (54,242     (82,809     2,499       6,430        (73,880

General and administrative

     (16,792     7,789        (9,003     (24,713     —         10,933        (13,780
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cost and operating expenses

     (266,348     14,664        (251,684     (442,146     5,510       24,974        (411,662

Income from operations

     89,002       14,664        103,666       94,603       5,510       24,974        125,087  

Net income attributable to Momo Inc.

     79,089       14,664        93,753       85,156       4,133 (a)      24,974        114,263  

 

     First nine months     First nine months  
   ended September 30, 2017     ended September 30, 2018  
     GAAP     Share-based
compensation
     Non-GAAP     GAAP     Amortization
of intangible
assets from
acquisitions
    Share-based
compensation
     Non-GAAP  

Cost of revenues

     (449,079     1,385        (447,694     (777,871     3,563       2,478        (771,830

Research and development

     (32,731     6,218        (26,513     (78,699     452       16,097        (62,150

Sales and marketing

     (160,815     8,601        (152,214     (181,704     3,332       15,136        (163,236

General and administrative

     (44,870     20,967        (23,903     (61,947     —         24,656        (37,291
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Cost and operating expenses

     (687,495     37,171        (650,324     (1,100,221     7,347       58,367        (1,034,507

Income from operations

     253,791       37,171        290,962       382,706       7,347       58,367        448,420  

Net income attributable to Momo Inc.

     221,059       37,171        258,230       332,819       5,511 (b)      58,367        396,697  

Notes:

 

(a)

Adjustments to exclude the provision for income tax related to amortization of intangible assets from acquisitions of $1,377 from the unaudited condensed consolidated statements.

(b)

Adjustments to exclude the provision for income tax related to amortization of intangible assets from acquisitions of $1,836 from the unaudited condensed consolidated statements.

 

11