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Segment Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Information
20
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SEGMENT INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Group’s chief operating decision maker has been identified as the Chief Executive Officer (“CEO”) who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Group.
During the year ended December 31, 2017, the Group operated and managed its business as a single reporting segment, which included the provision of live video service
s
, value-added services, mobile marketing services, mobile games and other services. The Group did not have discrete financial information of costs and expenses between various services in its internal reporting, and reported costs and expenses by nature as a whole. Therefore, the Group had one operating segment.
During the year
s
ended December 31, 2018 and 2019, as a result of the Tantan acquisition discussed in Note 3, the Group determined that Tantan met the criteria for separate reportable segment given its financial information is separately reviewed by the Group’s CEO. Additionally, the Group started its entertainment business that included TV content production through one of its subsidiary QOOL, for which the Group’s CEO started to review discrete financial information. As a result, the Group determined that for the year
s
ended December 31, 2018 and 2019,
it operated in
three
operating segments namely
Momo
,
Tantan
and QOOL.
Momo
’s services mostly include live video services, value-added service
s
, mobile marketing services and mobile games derived from the
Momo
’s platform.
Tantan
’s services
mainly
include value-added services provided on
Tantan
’s platform. QOOL services mainly include advertisement services generated from the Group’s broadcasting of content television.
The Group primarily operates in the PRC and substantially all of the Group’s long-lived assets are located in the PRC.
The Group’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, operating cost and expenses, operating income and net income. Prior to Tantan acquisition, Tantan’s financial information was not consolidated to the Group’s financial statements, therefore Tantan’s service lines do not have comparable financial information in 2017. QOOL started its entertainment business in 2017 and the comparable financial information in 2017 account for an insignificant portion to the Group’s consolidated financial statements.
 
Net revenues, operating cost and expenses, operating income, and net income by segment for the years ended
December 31, 2017, 2018 and 2019 were as follows:
                                 
 
For the year ended December 31, 2017
 
 
Momo
   
Tantan
   
QOOL
   
Consolidated
 
 
RMB
   
RMB
   
RMB
   
RMB
 
Net revenues:
   
8,884,823
      
—  
      
1,567
      
8,886,390
  
Cost and expenses:
   
     
     
     
 
Cost of revenues
   
(4,373,377
 )    
—  
      
—  
      
(4,373,377
 )
Research and development
   
(346,144
 )    
—  
      
—  
      
(346,144
 )
Sales and marketing
   
(1,457,658
 )    
—  
      
(9,718
 )    
(1,467,376
 )
General and administrative
   
(417,866
 )    
—  
      
(4,139
 )    
(422,005
 )
Total cost and expenses
   
(6,595,045
 )    
—  
      
(13,857
 )    
(6,608,902
 )
Other operating income
   
156,764
      
—  
      
—
      
156,764
  
Income (loss) from operations
   
2,446,542
      
—  
      
(12,290
 )    
2,434,252
  
Interest income
   
145,568
      
—  
      
—  
      
145,568
  
Impairment loss on long-term investments
   
(30,085
 )    
—  
      
—  
      
(30,085
 )
Income tax expense
   
(445,001
 )    
—  
      
—  
      
(445,001
 )
Share of income on equity method investments
   
39,729
      
—  
      
—  
      
39,729
  
Net income (loss)
   
2,156,753
      
—  
      
(12,290
 )    
2,144,463
  
 
 
 
 
 
 
 
 
                                 
 
For the year ended December 31, 2018
 
 
Momo
   
Tantan
   
QOOL
   
Consolidated
 
 
RMB
   
RMB
   
RMB
   
RMB
 
Net revenues:
   
12,812,421
      
417,998
      
178,002
      
13,408,421
  
Cost and expenses:
   
     
     
     
 
Cost of revenues
   
(6,572,954
 )    
(174,858
 )    
(435,085
 )    
(7,182,897
 )
Research and development
   
(614,064
 )    
(146,580
 )    
—  
      
(760,644
 )
Sales and marketing
   
(1,269,493
 )    
(520,161
 )    
(22,608
 )    
(1,812,262
 )
General and administrative
   
(472,057
 )    
(121,887
 )    
(46,079
 )    
(640,023
 )
                                 
Total cost and expenses
   
(8,928,568
 )    
(963,486
 )    
(503,772
 )    
(10,395,826
 )
Other operating income
   
252,458
      
173
      
1,066
      
253,697
  
                                 
Income (loss) from operations
   
4,136,311
      
(545,315
 )    
(324,704
 )    
3,266,292
  
Interest income
   
268,583
      
4,285
      
78
      
272,946
  
Interest expense
   
(56,503
 )    
—  
      
—  
      
(56,503
 )
Impairment loss on long-term investments
   
(43,200
 )    
—  
      
—  
      
(43,200
 )
Income tax expense
   
(716,729
 )    
21,824
      
(4,743
 )    
(699,648
 )
Share of income on equity method investments
   
48,660
      
—  
      
—  
      
48,660
  
                                 
Net income (loss)
   
3,637,122
      
(519,206
 )    
(329,369
 )    
2,788,547
  
                                 
       
 
For the year ended December 31, 2019
 
 
Momo
   
Tantan
   
QOOL
   
Consolidated
 
 
RMB
   
RMB
   
RMB
   
RMB
 
Net revenues:
   
15,740,815
      
1,259,906
      
14,368
      
17,015,089
  
Cost and expenses:
   
     
     
     
 
Cost of revenues
   
(8,065,300
 )     
(415,688
 )     
(11,108
 )     
(8,492,096
 ) 
Research and development
   
(797,471
 )     
(297,560
 )     
—
     
(1,095,031
 ) 
Sales and marketing
   
(1,521,511
 )     
(1,162,912
 )     
(6,401
 )     
(2,690,824
 ) 
General and administrative
   
(641,269
 )     
(851,099
 )     
(34,914
 )     
(1,527,282
 ) 
                                 
Total cost and expenses
   
(11,025,551
 )     
(2,727,259
 )     
(52,423
 )     
(13,805,233
 ) 
Other operating income
   
323,444
      
—
     
21,399
      
344,843
  
                                 
Income (loss) from operations
   
5,038,708
      
(1,467,353
 )     
(16,656
 )     
3,554,699
  
Interest income
   
396,672
      
10,706
      
164
      
407,542
  
Interest expense
   
(78,611
 )     
—
     
—
     
(78,611
 ) 
Impairment loss on long-term investments
   
(15,711
 )     
—
     
—
     
(15,711
 ) 
Income tax expense
   
(917,265
 )     
33,464
      
—
     
(883,801
 ) 
Share of loss on equity method investments
   
(23,350
 )     
—
     
—
     
(23,350
 ) 
                                 
Net income (loss)
   
4,400,443
      
(1,423,183
 )     
(16,492
 )     
2,960,768