Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2024

, /PRNewswire/ -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"), a leading player in mainland China's online social networking space, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2024. Fourth Quarter of 2024 Highlights Net revenues decreased by 12.2% year over year to RMB2,636.5 million (US$361.2 million*) in the fourth quarter of 2024. Net income attributable to Hello Group Inc. decreased to RMB187.2 million (US$25.6 million) in the fourth quarter of 2024, from RMB452.5 million in the same period of 2023. Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB230.5 million (US$31.6 million) in the fourth quarter of 2024, from RMB514.7 million in the same period of 2023. Diluted net income per American Depositary Share ("ADS") was RMB1.05 (US$0.14) in the fourth quarter of 2024, compared to RMB2.32 in the same period of 2023. Non-GAAP diluted net income per ADS (note 1) was RMB1.30 (US$0.18) in the fourth quarter of 2024, compared to RMB2.63 in the same period of 2023. Monthly Active Users ("MAU") on Tantan app were 10.8 million in December 2024, compared to 13.7 million in December 2023. For the Momo app total paying users was 5.7 million for the fourth quarter of 2024, compared to 7.4 million for the same period last year. Tantan had 0.9 million paying users for the fourth quarter of 2024 compared to 1.2 million from the year ago period. Full Year 2024 Highlights Net revenues decreased by 12.0% year over year to RMB10,563.0 million (US$1,447.1 million) for the full year of 2024. Net income attributable to Hello Group Inc. was RMB1,039.6 million (US$142.4 million) for the full year of 2024, compared to RMB1,957.6 million during the same period of 2023. Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,232.9 million (US$168.9 million) for the full year of 2024, compared to RMB2,224.7 million during the same period of 2023. Diluted net income per ADS was RMB5.57(US$0.76) for the full year of 2024, compared to RMB9.84 during the same period of 2023. Non-GAAP diluted net income per ADS (note 1) was RMB6.60(US$0.90) for the full year of 2024, compared to RMB11.17 during the same period of 2023. "2024 was a year fraught with challenges and opportunities. Our team maneuvered through external uncertainties well and delivered satisfactory financial and operational results." commented Yan Tang, Chairman and CEO of Hello Group. "Momo cash cow business continues to be productive, with an ecosystem that is healthier in comparison to the previous year. Our overseas business maintained its robust growth momentum and made more meaningful contributions to the group's financial standing. This impels us to take bolder measures to propel growth and innovation in international markets in the future." * 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 RMB7.2993 to US$1.00, the effective noon buying rate for December 31, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board. Fourth Quarter of 2024 Financial Results Net revenues Total net revenues were RMB2,636.5 million (US$361.2 million) in the fourth quarter of 2024, a decrease of 12.2% from RMB3,002.9 million in the fourth quarter of 2023. Live video service revenues were RMB1,264.9 million (US$173.3 million) in the fourth quarter of 2024, a decrease of 17.0% from RMB1,523.9 million during the same period of 2023. The decrease was primarily attributable to our proactive operational adjustments to de-emphasize large scale competition events in the Momo app and a soft consumer sentiment in the current macro environment, and to a lesser degree, Tantan pivoting away from the less dating-centric live video service. Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,326.8 million (US$181.8 million) in the fourth quarter of 2024, a decrease of 6.9% from RMB1,424.9 million during the same period of 2023. The decrease was primarily due to our product adjustments to improve Momo app's ecosystem as well as the impact of the macro economy on consumer sentiment, and to a lesser extent, the decline in Tantan's paying users which was in turn due to the decline in user base. The decrease was partially offset by the revenue growth from the new standalone apps. Mobile marketing revenues were RMB43.6 million (US$6.0 million) in the fourth quarter of 2024, compared to RMB44.9 million during the same period of 2023. Net revenues from the Momo segment decreased from RMB2,728.7 million in the fourth quarter of 2023 to RMB2,423.1 million (US$332.0 million) in the fourth quarter of 2024, primarily due to the decrease in net revenues from live video service and value-added service on Momo app. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB272.2 million in the fourth quarter of 2023 to RMB213.4 million (US$29.2 million) in the fourth quarter of 2024, mainly due to the decrease in net revenues from live video service and value-added service. Cost and expenses Cost and expenses were RMB2,407.8 million (US$329.9 million) in the fourth quarter of 2024, a decrease of 1.0% from RMB2,431.8 million in the fourth quarter of 2023. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service on Momo app and Tantan app, and a decrease in revenue sharing with virtual gift recipients of virtual gift service on Momo app. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; and (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. The decrease was partially offset by an increase of RMB 94.1 million (US$12.9 million) in production costs in connection with films. Non-GAAP cost and expenses (note 1) were RMB2,364.6 million (US$323.9 million) in the fourth quarter of 2024, compared to RMB2,369.5 million during the same period of 2023. Other operating income, net Other operating income was RMB8.0 million (US$1.1 million) in the fourth quarter of 2024, compared to RMB30.8 million during the fourth quarter of 2023. The decrease was primarily due to reduced government incentives and input VAT super deduction in the fourth quarter of 2024. Income from operations Income from operations was RMB236.7 million (US$32.4 million) in the fourth quarter of 2024, compared to RMB602.0 million during the same period of 2023. Income from operations of the Momo segment was RMB226.4 million (US$31.0 million) in the fourth quarter of 2024, which decreased from RMB576.9 million in the fourth quarter of 2023. Income from operations of the Tantan segment was RMB11.1 million (US$1.5 million) in the fourth quarter of 2024, which decreased from RMB26.8 million in the fourth quarter of 2023. Non-GAAP income from operations (note 1) was RMB279.9 million (US$38.4 million) in the fourth quarter of 2024, compared to RMB664.2 million during the same period of 2023. Non-GAAP income from operations of the Momo segment was RMB269.4 million (US$36.9 million) in the fourth quarter of 2024, which decreased from RMB638.9 million in the fourth quarter of 2023. Non-GAAP income from operations of the Tantan segment was RMB11.4 million (US$1.6 million) in the fourth quarter of 2024, compared to RMB27.0 million in the fourth quarter of 2023. Income tax expenses Income tax expenses were RMB89.5 million (US$12.3 million) in the fourth quarter of 2024, compared to RMB183.4 million in the fourth quarter of 2023. The decrease in income tax expenses was primarily due to the lower profit in the third quarter of 2024, and to a lesser extent, lower withholding tax rate due to our eligibility for a preferential tax rate since the beginning of the year. Net income Net income was RMB187.2 million (US$25.6 million) in the fourth quarter of 2024, compared to RMB452.5 million during the same period of 2023. Net income from the Momo segment was RMB176.3 million (US$24.2 million) in the fourth quarter of 2024, compared to RMB430.0 million in the same period of 2023. Net income from the Tantan segment was RMB11.8 million (US$1.6 million) in the fourth quarter of 2024, compared to RMB24.2 million in the fourth quarter of 2023. Non-GAAP net income (note 1) was RMB230.5 million (US$31.6 million) in the fourth quarter of 2024, compared to RMB514.7 million during the same period of 2023. Non-GAAP net income from the Momo segment was RMB219.3 million (US$30.1 million) in the fourth quarter of 2024, which decreased from RMB492.1 million in the fourth quarter of 2023. Non-GAAP net income of the Tantan segment was RMB12.0 million (US$1.7 million) in the fourth quarter of 2024, compared to RMB24.4 million in the fourth quarter of 2023. Net income attributable to Hello Group Inc. Net income attributable to Hello Group Inc. was RMB187.2 million (US$25.6 million) in the fourth quarter of 2024, compared to RMB452.5 million during the same period of 2023. Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB230.5 million (US$31.6 million) in the fourth quarter of 2024, compared to RMB514.7 million during the same period of 2023. Net income per ADS Diluted net income per ADS was RMB1.05 (US$0.14) in the fourth quarter of 2024, compared to RMB2.32 in the fourth quarter of 2023. Non-GAAP diluted net income per ADS (note 1) was RMB1.30 (US$0.18) in the fourth quarter of 2024, compared to RMB2.63 in the fourth quarter of 2023. Cash and cash flow As of December 31, 2024, the Company's cash, cash equivalents, short-term deposits, long-term deposits, short-term restricted cash and long-term restricted cash totaled RMB14,728.5 million (US$2,017.8 million), compared to RMB13,478.5 million as of December 31, 2023. Net cash provided by operating activities in the fourth quarter of 2024 was RMB423.6 million (US$58.0 million), compared to RMB415.9 million in the fourth quarter of 2023. Full Year 2024 Financial Results Net revenues for the full year of 2024 were RMB10,563.0 million (US$1,447.1 million), a decrease of 12.0% from RMB12,002.3 million in the same period of 2023. Net income attributable to Hello Group Inc. was RMB1,039.6 million (US$142.4 million) for the full year of 2024, compared to RMB1,957.6 million during the same period of 2023. Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,232.9 million (US$168.9 million) for the full year of 2024, compared to RMB2,224.7 million during the same period of 2023. Diluted net income per ADS was RMB5.57 (US$0.76) during the full year of 2024, compared to RMB9.84 in the same period of 2023. Non-GAAP diluted net income per ADS (note 1) was RMB6.60 (US$0.90) during the full year of 2024, compared to RMB11.17 in the same period of 2023. Net cash provided by operating activities was RMB1,640.0 million (US$224.7 million) during the full year of 2024, compared to RMB2,277.2 million in the same period of 2023. Recent Development Declaration of a special cash dividend Hello Group's board of directors has declared a special cash dividend in the amount of US$0.30 per ADS, or US$0.15 per ordinary share. The cash dividend will be paid on April 30, 2025 to shareholders of record at the close of business on April 11, 2025. The ex-dividend date will be April 11, 2025. The aggregate amount of cash dividends to be paid is approximately US$50 million, which will be funded by available cash on the Company's balance sheet. 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 up to June 6, 2024 (the "Share Repurchase Program"). On March 14, 2024, Hello Group's board of directors approved to amend the Share Repurchase Program to (i) extend the term of the Share Repurchase Program up to June 30, 2026, and (ii) upsize the Share Repurchase Program to US$286.1 million. On March 12, 2025, Hello Group's board of directors approved an additional amendment to the Share Repurchase Program, to (i) extend the term of the Share Repurchase Program up to March 31, 2027, and (ii) upsize the Share Repurchase Program by another $200 million, so that the Company is authorized to, from time to time, acquire up to an aggregate of US$486.1 million worth of its shares in the form of ADSs and/or the ordinary shares of the Company in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. As of March 12, 2025, after the upsizing of the Share Repurchase Program, the remaining size of the program is US$222 million. As of March 12, 2025, the Company has repurchased 43.5 million ADSs for US$264.0 million on the open market under Share Repurchase Program announced on June 7, 2022 and amended on March 14, 2024, at an average purchase price of US$6.05 per ADS. Business Outlook For the first quarter of 2025, the Company expects total net revenues to be between RMB2.4 billion to RMB2.5 billion, representing a decrease of 6.3% to 2.4% 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 and amortization of intangible assets from business acquisitions, and such adjustments has no impact on income tax. 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, 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 and amortization of intangible assets from business acquisitions, and such adjustments has no impact on income tax. A limitation of using these non-GAAP financial measures is that share-based compensation and amortization of intangible assets from business acquisitions have 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 Wednesday, March 12, 2025, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on March 12, 2025). Participants can register for the conference call by navigating to: https://s1.c-conf.com/diamondpass/10045617-nl4uc8.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 March 19, 2025. The dial-in details for the replay are as follows: U.S. / Canada: 1-855-883-1031 Hong Kong: 800-930-639Passcode: 10045617 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 mainland China's online social networking 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. Starting from 2019, we have incubated a number of other new apps, such as Hertz, Soulchill, and Duidui, which target more niche markets and more selective demographics. For investor and media inquiries, please contact: Hello Group Inc. Investor RelationsPhone: +86-10-5731-0538Email: [email protected] Christensen In ChinaMs. Xiaoyan SuPhone: +86-10-5900-1548E-mail: [email protected] In U.S.Ms. Linda BergkampPhone: +1-480-614-3004Email: [email protected] 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 first quarter of 2025, 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 fourth quarter of 2024 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the first quarter of 2025 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 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 Year Ended December 31 Ended December 31 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$ Net revenues: Live video service 1,523,885 1,264,851 173,284 6,072,871 5,092,854 697,718 Value-added service 1,424,893 1,326,764 181,766 5,752,571 5,322,726 729,210 Mobile marketing 44,915 43,630 5,977 133,677 142,950 19,584 Mobile games 5,441 - - 19,610 432 59 Other services 3,798 1,251 171 23,594 4,009 550 Total net revenues 3,002,932 2,636,496 361,198 12,002,323 10,562,971 1,447,121 Cost and expenses: Cost of revenues (1,770,117) (1,724,821) (236,300) (7,025,394) (6,447,341) (883,282) Research and development (231,445) (222,684) (30,508) (884,590) (804,425) (110,206) Sales and marketing (304,696) (316,699) (43,388) (1,414,949) (1,329,780) (182,179) General and administrative (125,498) (143,621) (19,676) (502,479) (507,658) (69,549) Total cost and expenses (2,431,756) (2,407,825) (329,872) (9,827,412) (9,089,204) (1,245,216) Other operating income, net 30,821 8,015 1,098 130,105 59,003 8,083 Income from operations 601,997 236,686 32,424 2,305,016 1,532,770 209,988 Interest income 124,354 124,045 16,994 436,253 510,964 70,002 Interest expense (20,552) (36,846) (5,048) (62,223) (127,846) (17,515) Other gain or loss, net (31,250) (46,639) (6,390) (26,685) (90,509) (12,400) Income before income tax and share of (loss) income on equity method investments 674,549 277,246 37,980 2,652,361 1,825,379 250,075 Income tax expenses (183,377) (89,497) (12,261) (630,023) (845,022) (115,768) Income before share of (loss) income on equity method investments 491,172 187,749 25,719 2,022,338 980,357 134,307 Share of (loss) income on equity method investments (38,703) (514) (70) (70,643) 59,216 8,113 Net income 452,469 187,235 25,649 1,951,695 1,039,573 142,420 Less: net loss attributable to non-controlling interest - - - (5,886) - - Net income attributable to the shareholders of Hello Group Inc. 452,469 187,235 25,649 1,957,581 1,039,573 142,420 Net income per share attributable to ordinary shareholders Basic 1.20 0.54 0.07 5.18 2.81 0.39 Diluted 1.16 0.53 0.07 4.92 2.78 0.38 Weighted average shares used in calculating net income per ordinary share Basic 376,317,036 349,401,183 349,401,183 377,639,399 369,312,997 369,312,997 Diluted 390,956,175 355,325,921 355,325,921 401,833,328 373,591,974 373,591,974 Hello Group 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 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$ Net income 452,469 187,235 25,649 1,951,695 1,039,573 142,420 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustment (95,774) 322,935 44,242 20,414 132,248 18,118 Comprehensive income 356,695 510,170 69,891 1,972,109 1,171,821 160,538 Less: comprehensive (loss) income attributed to the non-controlling interest (5,020) 7,225 990 357 5,111 700 Comprehensive income attributable to Hello Group Inc. 361,715 502,945 68,901 1,971,752 1,166,710 159,838 Hello Group Inc. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except share and per share data) December 31 December 31 December 31 2023 2024 2024 RMB RMB US$ Assets Current assets Cash and cash equivalents 5,620,466 4,122,659 564,802 Short-term deposits 1,270,626 2,026,245 277,594 Restricted cash 10,147 4,566,477 625,605 Accounts receivable, net of allowance for doubtful accounts of RMB12,780 and RMB12,433 as of December 31, 2023 and 2024, respectively 201,517 192,317 26,347 Amounts due from related parties 7,258 - - Prepaid expenses and other current assets 723,364 1,104,172 151,271 Total current assets 7,833,378 12,011,870 1,645,619 Long-term deposits 3,924,975 3,059,860 419,199 Long-term restricted cash 2,652,299 953,285 130,600 Right-of-use assets, net 109,572 252,169 34,547 Property and equipment, net 659,033 897,036 122,893 Intangible assets, net 17,086 86,661 11,873 Rental deposits 12,962 13,280 1,819 Long-term investments 786,911 825,533 113,098 Amounts due from RPT-non current 20,000 - - Other non-current assets 180,052 110,960 15,201 Deferred tax assets 31,741 36,066 4,941 Goodwill - 136,250 18,666 Total assets 16,228,009 18,382,970 2,518,456 Liabilities and equity Current liabilities Accounts payable 616,681 615,254 84,288 Deferred revenue 442,805 427,702 58,595 Accrued expenses and other current liabilities 630,617 704,410 96,504 Amounts due to related parties 4,314 - - Lease liabilities due within one year 60,008 141,971 19,450 Income tax payable 94,719 157,057 21,517 Deferred consideration in connection with business acquisitions-current 27,261 28,027 3,840 Convertible Senior Notes-current - 20,191 2,766 Long-term borrowings, current portion 215,615 1,938,385 265,558 Short-term borrowings - 2,365,535 324,077 Total current liabilities 2,092,020 6,398,532 876,595 Deferred consideration in connection with business acquisitions-non current - 65,694 9,000 Lease liabilities 52,171 115,105 15,769 Deferred tax liabilities 24,987 241,915 33,142 Convertible Senior Notes 19,571 - - Long-term borrowings 1,938,385 - - Other non-current liabilities 114,085 129,051 17,680 Total liabilities 4,241,219 6,950,297 952,186 Shareholder's equity (i) 11,986,790 11,432,673 1,566,270 Total liabilities and shareholder's equity 16,228,009 18,382,970 2,518,456 (i): As of December 31, 2024, the number of ordinary shares outstanding was 328,185,708. Hello Group 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 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$ Cash flows from operating activities: Net income 452,469 187,235 25,649 1,951,695 1,039,573 142,420 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 15,394 11,868 1,626 74,492 52,847 7,240 Amortization of intangible assets 1,279 2,049 281 5,116 5,886 806 Share-based compensation 62,224 42,493 5,822 267,101 192,572 26,382 Share of loss (income) on equity method investments 38,703 514 70 70,643 (59,216) (8,113) Gain on repurchase of convertible senior notes - - - (4,565) - - Cash received on distributions from equity method investments - 730 100 2,067 1,927 264 Loss on long-term investments 31,250 46,639 6,390 31,250 90,509 12,400 Gain or loss on disposal of property and equipment 2 - - (518) (62) (8) Provision of loss (income) on receivable and other assets 1,553 (57) (8) 11,624 3,618 496 Changes in operating assets and liabilities: Accounts receivable (11,392) (4,347) (596) (21,308) 7,605 1,042 Prepaid expenses and other current assets (13,492) 27,035 3,704 84,802 (64,811) (8,879) Amounts due from related parties (144) - - (27,203) - - Rental deposits 5,524 - - 7,776 (309) (42) Deferred tax assets 1,728 (128) (18) 2,600 (4,323) (592) Other non-current assets 16,033 101,561 13,914 (11,606) (81,837) (11,212) Accounts payable (25,118) 8,139 1,115 13,707 (7,571) (1,037) Income tax payable 5,456 63,625 8,717 25,952 62,337 8,540 Deferred revenue (31,253) (26,219) (3,592) (42,390) (25,651) (3,514) Accrued expenses and other current liabilities (11,586) 78,250 10,720 (183,772) 139,607 19,126 Amount due to related parties 639 - - (4,865) - - Deferred tax liabilities (130,345) (81,498) (11,165) (147) 212,835 29,158 Other non-current liabilities 6,953 (34,247) (4,692) 24,710 74,458 10,201 Net cash provided by operating activities 415,877 423,642 58,037 2,277,161 1,639,994 224,678 Cash flows from investing activities: Purchase of property and equipment (316,847) (21,727) (2,977) (576,310) (285,541) (39,119) Payment for long-term investments (9,750) (35,959) (4,926) (18,750) (69,209) (9,482) Payment for business acquisition - (136,642) (18,720) - (136,642) (18,720) Purchase of short-term deposits - - - (1,028,556) (2,133,086) (292,232) Cash received on maturity of short-term deposits 800,000 1,047,165 143,461 6,209,820 2,128,181 291,560 Cash received from sales of short-term investment 308,550 - - 308,550 - - Cash received on investment income distribution - 120 16 1,517 120 16 Purchase of long-term deposits (361,165) - - (4,210,025) (718,860) (98,483) Cash received on maturity of long-term deposits - 200,000 27,400 1,700,000 918,860 125,883 Cash received from sales of long-term investment 10,000 - - 25,000 2,000 274 Loan to a third-party company - (168,933) (23,144) - (265,613) (36,389) Other investing activities 1 8 1 1,823 903 124 Net cash provided by (used in) investing activities 430,789 884,032 121,111 2,413,069 (558,887) (76,568) Cash flows from financing activities: Proceeds from exercise of share options 31 1 - 601 18 2 Repurchase of ordinary shares (150,191) (425,176) (58,249) (212,195) (1,197,439) (164,048) Repurchase of subsidiary's share options - - - (4,319) - - Dividends payment (20,803) - - (958,052) (716,302) (98,133) Proceeds from short-term borrowings - - - - 2,365,535 324,077 Proceeds from long-term borrowings - - - 2,154,000 - - Repayment of long-term borrowings - - - - (215,615) (29,539) Payment for redemption of convertible bonds - - - (2,679,942) - - Net cash (used in) provided by financing activities (170,963) (425,175) (58,249) (1,699,907) 236,197 32,359 Effect of exchange rate changes (34,609) 172,439 23,628 93,988 42,205 5,784 Net increase in cash and cash equivalents 641,094 1,054,938 144,527 3,084,311 1,359,509 186,253 Cash, cash equivalents and restricted cash at the beginning of period 7,641,818 8,587,483 1,176,480 5,198,601 8,282,912 1,134,754 Cash, cash equivalents and restricted cash at the end of period 8,282,912 9,642,421 1,321,007 8,282,912 9,642,421 1,321,007 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 December 31, 2023 Ended December 31, 2024 Ended December 31, 2024 GAAP Share-based compensation Non-GAAP GAAP Amortization of intangible assets from business acquisitions Share-based compensation Non-GAAP GAAP Amortization of intangible assets from business acquisitions Share-based compensation Non-GAAP RMB RMB RMB RMB RMB RMB RMB US$ US$ US$ US$ Cost of revenues (1,770,117) 1,909 (1,768,208) (1,724,821) 128 1,822 (1,722,871) (236,300) 18 250 (236,032) Research and development (231,445) 13,375 (218,070) (222,684) 120 10,198 (212,366) (30,508) 16 1,397 (29,095) Sales and marketing (304,696) 8,653 (296,043) (316,699) 521 4,480 (311,698) (43,388) 71 614 (42,703) General and administrative (125,498) 38,287 (87,211) (143,621) - 25,993 (117,628) (19,676) - 3,561 (16,115) Cost and operating expenses (2,431,756) 62,224 (2,369,532) (2,407,825) 769 42,493 (2,364,563) (329,872) 105 5,822 (323,945) Income from operations 601,997 62,224 664,221 236,686 769 42,493 279,948 32,424 105 5,822 38,351 Net income attributable to Hello Group Inc. 452,469 62,224 514,693 187,235 769 42,493 230,497 25,649 105 5,822 31,576 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. Year Year Year Ended December 31, 2023 Ended December 31, 2024 Ended December 31, 2024 GAAP Share-based compensation Non-GAAP GAAP Amortization of intangible assets from business acquisitions Share-based compensation Non-GAAP GAAP Amortization of intangible assets from business acquisitions Share-based compensation Non-GAAP RMB RMB RMB RMB RMB RMB RMB US$ US$ US$ US$ Cost of revenues (7,025,394) 6,307 (7,019,087) (6,447,341) 128 7,643 (6,439,570) (883,282) 18 1,047 (882,217) Research and development (884,590) 64,561 (820,029) (804,425) 120 43,526 (760,779) (110,206) 16 5,963 (104,227) Sales and marketing (1,414,949) 29,066 (1,385,883) (1,329,780) 521 19,520 (1,309,739) (182,179) 71 2,674 (179,434) General and administrative (502,479) 167,167 (335,312) (507,658) - 121,883 (385,775) (69,549) - 16,698 (52,851) Cost and operating expenses (9,827,412) 267,101 (9,560,311) (9,089,204) 769 192,572 (8,895,863) (1,245,216) 105 26,382 (1,218,729) Income from operations 2,305,016 267,101 2,572,117 1,532,770 769 192,572 1,726,111 209,988 105 26,382 236,475 Net income attributable to Hello Group Inc. 1,957,581 267,101 2,224,682 1,039,573 769 192,572 1,232,914 142,420 105 26,382 168,907 Hello Group Inc. Unaudited Condensed Segment Report (All amounts in thousands, except share and per share data) Three months Ended December 31, 2024 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Net revenues: Live video service 1,189,118 75,733 - 1,264,851 173,284 Value-added service 1,198,951 127,813 - 1,326,764 181,766 Mobile marketing 33,772 9,858 - 43,630 5,977 Other services 1,222 - 29 1,251 171 Total net revenues 2,423,063 213,404 29 2,636,496 361,198 Cost and expenses (ii): Cost of revenues (1,621,151) (103,670) - (1,724,821) (236,300) Research and development (181,255) (41,429) - (222,684) (30,508) Sales and marketing (267,065) (48,978) (656) (316,699) (43,388) General and administrative (134,200) (9,124) (297) (143,621) (19,676) Total cost and expenses (2,203,671) (203,201) (953) (2,407,825) (329,872) Other operating income 7,032 928 55 8,015 1,098 Income (loss) from operations 226,424 11,131 (869) 236,686 32,424 Interest income 123,822 216 7 124,045 16,994 Interest expense (36,846) - - (36,846) (5,048) Other gain or loss, net (46,639) - - (46,639) (6,390) Income (loss) before income tax and share of loss on equity method investments 266,761 11,347 (862) 277,246 37,980 Income tax (expenses) benefits (89,919) 455 (33) (89,497) (12,261) Income (loss) before share of loss on equity method investments 176,842 11,802 (895) 187,749 25,719 Share of loss on equity method investments (514) - - (514) (70) Net income (loss) 176,328 11,802 (895) 187,235 25,649 (ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Three months Ended December 31, 2024 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Cost of revenues 1,822 - - 1,822 250 Research and development 9,956 242 - 10,198 1,397 Sales and marketing 4,480 - - 4,480 614 General and administrative 25,993 - - 25,993 3,561 Total cost and expenses 42,251 242 - 42,493 5,822 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 December 31, 2024 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Income (loss) from operations 226,424 11,131 (869) 236,686 32,424 Share-based compensation 42,251 242 - 42,493 5,822 Amortization of intangible assets from business acquisitions 769 - - 769 105 Non-GAAP income (loss) from operations 269,444 11,373 (869) 279,948 38,351 Net income (loss) 176,328 11,802 (895) 187,235 25,649 Share-based compensation 42,251 242 - 42,493 5,822 Amortization of intangible assets from business acquisitions 769 - - 769 105 Non-GAAP net income (loss) 219,348 12,044 (895) 230,497 31,576 Hello Group Inc. Unaudited Condensed Segment Report (All amounts in thousands, except share and per share data) Three months Ended December 31, 2023 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$[1] Net revenues: Live video service 1,423,730 100,155 - 1,523,885 214,635 Value-added service 1,264,358 160,535 - 1,424,893 200,692 Mobile marketing 33,395 11,520 - 44,915 6,326 Mobile games 5,441 - - 5,441 766 Other services 1,760 - 2,038 3,798 535 Total net revenues 2,728,684 272,210 2,038 3,002,932 422,954 Cost and expenses (iii): Cost of revenues (1,638,915) (130,237) (965) (1,770,117) (249,316) Research and development (180,343) (51,102) - (231,445) (32,598) Sales and marketing (244,043) (58,444) (2,209) (304,696) (42,916) General and administrative (117,923) (6,882) (693) (125,498) (17,676) Total cost and expenses (2,181,224) (246,665) (3,867) (2,431,756) (342,506) Other operating income, net 29,442 1,301 78 30,821 4,341 Income (loss) from operations 576,902 26,846 (1,751) 601,997 84,789 Interest income 124,294 57 3 124,354 17,515 Interest expense (20,552) - - (20,552) (2,895) Other gain or loss, net (31,250) - - (31,250) (4,401) Income (loss) before income tax and share of loss on equity method investments 649,394 26,903 (1,748) 674,549 95,008 Income tax expenses (180,669) (2,708) - (183,377) (25,828) Income (loss) before share of loss on equity method investments 468,725 24,195 (1,748) 491,172 69,180 Share of loss on equity method investments (38,703) - - (38,703) (5,451) Net income (loss) 430,022 24,195 (1,748) 452,469 63,729 (iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Three months Ended December 31, 2023 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Cost of revenues 1,905 4 - 1,909 269 Research and development 13,194 181 - 13,375 1,884 Sales and marketing 8,653 - - 8,653 1,219 General and administrative 38,279 8 - 38,287 5,393 Total cost and expenses 62,031 193 - 62,224 8,765 [1] All translations from RMB to U.S. dollars are made at a rate of RMB7.0999 to US$1.00, the effective noon buying rate for December 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board. Hello Group Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data) Three months Ended December 31, 2023 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Income (loss) from operations 576,902 26,846 (1,751) 601,997 84,789 Share-based compensation 62,031 193 - 62,224 8,765 Non-GAAP income (loss) from operations 638,933 27,039 (1,751) 664,221 93,554 Net income (loss) 430,022 24,195 (1,748) 452,469 63,729 Share-based compensation 62,031 193 - 62,224 8,765 Non-GAAP net income (loss) 492,053 24,388 (1,748) 514,693 72,494 Hello Group Inc. Unaudited Condensed Segment Report (All amounts in thousands, except share and per share data) Year Ended December 31, 2024 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Net revenues: Live video service 4,779,865 312,989 - 5,092,854 697,718 Value-added service 4,772,811 549,915 - 5,322,726 729,210 Mobile marketing 105,169 37,781 - 142,950 19,584 Mobile games 432 - - 432 59 Other services 3,137 - 872 4,009 550 Total net revenues 9,661,414 900,685 872 10,562,971 1,447,121 Cost and expenses (iv): Cost of revenues (6,029,415) (417,887) (39) (6,447,341) (883,282) Research and development (643,457) (160,968) - (804,425) (110,206) Sales and marketing (1,103,475) (220,966) (5,339) (1,329,780) (182,179) General and administrative (473,778) (32,868) (1,012) (507,658) (69,549) Total cost and expenses (8,250,125) (832,689) (6,390) (9,089,204) (1,245,216) Other operating income 56,069 2,853 81 59,003 8,083 Income (loss) from operations 1,467,358 70,849 (5,437) 1,532,770 209,988 Interest income 510,162 789 13 510,964 70,002 Interest expense (127,846) - - (127,846) (17,515) Other gain or loss, net (90,509) - - (90,509) (12,400) Income (loss) before income tax and share of income on equity method investments 1,759,165 71,638 (5,424) 1,825,379 250,075 Income tax expenses (843,640) (1,349) (33) (845,022) (115,768) Income (loss) before share of income on equity method investments 915,525 70,289 (5,457) 980,357 134,307 Share of income on equity method investments 59,216 - - 59,216 8,113 Net income (loss) 974,741 70,289 (5,457) 1,039,573 142,420 (iv) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Year Ended December 31, 2024 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Cost of revenues 7,639 4 - 7,643 1,047 Research and development 38,452 5,074 - 43,526 5,963 Sales and marketing 19,520 - - 19,520 2,674 General and administrative 121,867 16 - 121,883 16,698 Total cost and expenses 187,478 5,094 - 192,572 26,382 Hello Group Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data) Year Ended December 31, 2024 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Income (loss) from operations 1,467,358 70,849 (5,437) 1,532,770 209,988 Share-based compensation 187,478 5,094 - 192,572 26,382 Amortization of intangible assets from business acquisitions 769 - - 769 105 Non-GAAP income (loss) from operations 1,655,605 75,943 (5,437) 1,726,111 236,475 Net income (loss) 974,741 70,289 (5,457) 1,039,573 142,420 Share-based compensation 187,478 5,094 - 192,572 26,382 Amortization of intangible assets from business acquisitions 769 - - 769 105 Non-GAAP net income (loss) 1,162,988 75,383 (5,457) 1,232,914 168,907 Hello Group Inc. Unaudited Condensed Segment Report (All amounts in thousands, except share and per share data) Year Ended December 31, 2023 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Net revenues: Live video service 5,567,894 504,977 - 6,072,871 855,346 Value-added service 5,085,541 667,030 - 5,752,571 810,233 Mobile marketing 109,125 24,552 - 133,677 18,828 Mobile games 19,610 - - 19,610 2,762 Other services 16,337 - 7,257 23,594 3,323 Total net revenues 10,798,507 1,196,559 7,257 12,002,323 1,690,492 Cost and expenses (v): Cost of revenues (6,404,042) (599,348) (22,004) (7,025,394) (989,506) Research and development (664,340) (220,250) - (884,590) (124,592) Sales and marketing (1,138,505) (268,652) (7,792) (1,414,949) (199,291) General and administrative (467,537) (26,482) (8,460) (502,479) (70,773) Total cost and expenses (8,674,424) (1,114,732) (38,256) (9,827,412) (1,384,162) Other operating income 125,318 4,411 376 130,105 18,325 Income (loss) from operations 2,249,401 86,238 (30,623) 2,305,016 324,655 Interest income 435,451 713 89 436,253 61,445 Interest expense (62,223) - - (62,223) (8,764) Other gain or loss, net (26,685) - - (26,685) (3,759) Income (loss) before income tax and share of loss on equity method investments 2,595,944 86,951 (30,534) 2,652,361 373,577 Income tax expenses (623,844) (6,179) - (630,023) (88,737) Income (loss) before share of loss on equity method investments 1,972,100 80,772 (30,534) 2,022,338 284,840 Share of loss on equity method investments (70,643) - - (70,643) (9,950) Net income (loss) 1,901,457 80,772 (30,534) 1,951,695 274,890 (v) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Year Ended December 31, 2023 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Cost of revenues 6,167 140 - 6,307 888 Research and development 49,987 14,574 - 64,561 9,093 Sales and marketing 29,061 5 - 29,066 4,094 General and administrative 167,135 32 - 167,167 23,545 Total cost and expenses 252,350 14,751 - 267,101 37,620 Hello Group Inc. Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report (All amounts in thousands, except share and per share data) Year ended December 31, 2023 Momo Tantan QOOL Total Total RMB RMB RMB RMB US$ Operating income (loss) from operations 2,249,401 86,238 (30,623) 2,305,016 324,655 Share-based compensation 252,350 14,751 - 267,101 37,620 Non-GAAP operating income (loss) from operations 2,501,751 100,989 (30,623) 2,572,117 362,275 Net income (loss) 1,901,457 80,772 (30,534) 1,951,695 274,890 Share-based compensation 252,350 14,751 - 267,101 37,620 Non-GAAP net income (loss) 2,153,807 95,523 (30,534) 2,218,796 312,510 SOURCE Hello Group Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2024

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