Momo Announces Unaudited Financial Results for the First Quarter of 2020

BEIJING,May 28,2020 -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"),a leading mobile social networking platform in China,today announced its unaudited financial results for the firstquarterof 2020.

FirstQuarter of 2020 Highlights

Net revenues decreased by 3.5% year over year to RMB3,594.1 million (US$507.6 million*) in the first quarter of 2020.

Net income attributable to Momo Inc. increased to RMB538.9 million (US$76.1 million) in the first quarter of 2020 from RMB289.3 million in the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB736.3 million (US$104.0 million) in the first quarter of 2020,from RMB910.3 million in the same period of 2019.

Diluted net income per American Depositary Share ("ADS") was RMB2.46 (US$0.35) in the first quarter of 2020,compared to RMB1.36 in the same period of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47) in the first quarter of 2020,compared to RMB4.15 in the same period of 2019.

Monthly Active Users ("MAU") on Momo application were 108.0 million in March 2020,compared to 114.4 million in March 2019.

Total paying users of our live video service and value-added service,without double counting the overlap and including 4.2 million paying users of Tantan Limited ("Tantan"),were 12.8 million for the first quarter of 2020,compared to 14.0 million for the first quarter of 2019,which included 5.0 million paying users of Tantan.

"Q1 2020 was a challenging and yet very fruitful quarter for Momo."commented Yan Tang,Chairman and CEO of Momo. "I am proud that the team has been able to adapt well to the changing environment and navigate through the challenges with solid execution against our strategic goals. Despite the macro headwind,we are seeing plenty of growth opportunities ahead of us. We will continue to pursue these opportunities and drive value for our shareholders."

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unlessotherwise noted,all translations from Renminbi to U.S. dollars,in this press release,were made at a rate of RMB7.0808 to US$1.00,the effective noon buying rate for March 31,2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

FirstQuarter of 2020 Financial Results

Net revenues

Total net revenues were RMB3,594.1 million (US$507.6million) in the firstquarter of 2020,a decrease of 3.5% from RMB3,722.9 million in the firstquarter of 2019.

Live video service revenues were RMB2,332.0 million (US$329.3 million) in the first quarter of 2020,a decrease of 13% from RMB2,689.4 million during the same period of 2019,as a result of the impact of COVID-19 adversely affecting the sentiment of our paying users,especially among the top of the pyramid paying users.

Value-addedservice revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,175.8 million (US$166.0million) in the firstquarter of 2020,an increase of 30% from RMB903.8 million during the same period of 2019. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more functions launched and more paying scenarios introduced to enhance the social experience of Momo users,and to a lesser extent,theincrease in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB57.2 million (US$8.1 million) in the firstquarter of 2020,a decrease of 29% from RMB80.7 million during the same period of 2019. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers as well as our strategy to underweight the line in terms of resource allocation.

Mobile games revenues were RMB12.7 million (US$1.8 million) in the firstquarter of 2020,a decrease of 67% from RMB39.0 million in the firstquarter of 2019. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Net revenues from Momo segment decreased from RMB3,419.2 million in the firstquarter of 2019 to RMB3,202.1 million (US$452.2 million) in the firstquarter of 2020,primarily driven by the decrease in net revenues from live video service,partially offset by the increase in net revenues from value-added service. Net revenues from Tantan segment increased from RMB295.3 million in the firstquarter of 2019 to RMB381.7 million (US$53.9 million) in the first quarter of 2020,which was mainly due to the increase in the average revenues per paying user resulting from more features launched.

Cost and expenses

Cost and expenses were RMB3,026.1 million (US$427.4 million) in the firstquarter of 2020,a decrease of 10% from RMB3,349.4 million in the firstquarter of 2019. The decrease was primarily attributable to: (a) a decrease in share-based compensation expenses due to the related expense from the options granted to Tantan's founders amount of RMB466.9 million as the related share options vested in the first quarter of 2019 when the necessary performance conditions were satisfied; (b) a decrease in revenue sharing with broadcasters related to our live video service. The decrease was partially offset by an increase in marketing and promotional expenses to attract users on Momo and Tantan.

Non-GAAP cost and expenses (note 1) were RMB2,819.2 million (US$398.1 million) in the firstquarter of 2020,an increase of 4% from RMB2,719.2 million during the same period of 2019.

Incomefrom operations

Incomefrom operations was RMB594.1 million (US$83.9 million)in the firstquarter of 2020,compared to RMB384.4 million during the same period of 2019. Incomefrom operations of Momo segment wasRMB770.3 million (US$108.8 million) in the firstquarter of 2020,decreasing from RMB998.6 million in the firstquarter of 2019. Loss from operations of Tantan segment was RMB171.9 million (US$24.3 million) in the firstquarter of 2020,compared to loss from operationsof RMB604.6 million in the firstquarter of 2019.

Non-GAAP income from operations (note 1) was RMB801.0 million (US$113.1million) in the firstquarter of 2020,compared to RMB1,014.7 million during the same period of 2019. Non-GAAPincomefrom operations of Momo segment wasRMB903.1 million (US$127.5 million)in the firstquarter of 2020,decreasing from RMB1,098.9 million in the firstquarter of 2019. Non-GAAPlossfrom operations of Tantan segment was RMB100.4 million (US$14.2 million) in the firstquarter of 2020,compared to non-GAAP loss from operations of RMB77.1 million in the firstquarter of 2019.

Income tax expenses

Income tax expenses were RMB162.9million (US$23.0million) in the firstquarter of 2020,decreasing from RMB163.7 million in the firstquarter of 2019.

Net income

Net incomewas RMB537.7 million (US$75.9 million) in the firstquarter of 2020,compared toRMB286.6million during the same period of 2019. Net incomefromMomo segment was RMB707.1 million (US$99.9 million) in the firstquarter of 2020,decreasing fromRMB893.9million in the firstquarter of 2019. Net loss from Tantan segment was RMB165.1 million (US$23.3 million) in the firstquarter of 2020,compared tonet loss of RMB597.7 million in the firstquarter of 2019.

Non-GAAP net income (note 1) was RMB735.1 million (US$103.8million) in the firstquarter of 2020,compared to RMB907.5 million during the same period of 2019. Non-GAAPnet incomefrom Momo segment wasRMB839.9million(US$118.6 million) in the firstquarter of 2020,decreasing fromRMB994.2million in the firstquarter of 2019. Non-GAAPnet lossof Tantan segment was RMB103.2 million (US$14.6 million) in the firstquarter of 2020,compared tonon-GAAP net loss of RMB79.6 million in the firstquarter of 2019.

Net income attributable to Momo Inc.

Net incomeattributable to Momo Inc. was RMB538.9 million (US$76.1 million) in the firstquarter of 2020,compared toRMB289.3million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB736.3 million (US$104.0million) in the firstquarter of 2020,compared to RMB910.3 million during the same period of 2019.

Net incomeper ADS

Diluted net incomeper ADS was RMB2.46 (US$0.35) in the firstquarter of 2020,compared toRMB1.36in the firstquarter of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB3.34 (US$0.47) in the firstquarter of 2020,compared to RMB4.15 in the firstquarter of 2019.

Cash and cash flow

As of March 31,2020,Momo's cash,cash equivalents and short-term deposits totaled RMB15,467.2 million (US$2,184.4million),compared to RMB14,925.3 million as of December 31,2019. Net cash provided by operating activities in the firstquarter of 2020 was RMB543.5 million (US$76.8million),175.9 million in the firstquarter of 2019.

Recent Development

On March 19,Momo's board of directors declared a special cash dividend in the amount of US$0.76 per ADS,or US$0.38 per ordinary share. The cash dividend was paid in April 2020 to shareholders of record at the close of business on April 8,2020. The aggregate amount of cash dividends paid was US$158.6 million.

Business Outlook

For the secondquarter of 2020,the Company expects total net revenues to be between RMB3.8 billion to RMB3.9 billion,representing a decrease of 8.5% to 6.1% year over year. This forecast considers the potential impact of the COVID-19 outbreak and reflects the Company's current and preliminary views on the market and operational conditions,which are subject to change,particularly as to the potential impact of the COVID-19 on the economy in China.

Note 1: Non-GAAP measures

To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"),we use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions,and tax impacts related to the amortization of intangible assets from business acquisitions.

Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release,which provide more details about the non-GAAP financial measures.

Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP,but should not be considered a substitute for or superior to the GAAP results. In addition,our calculation of the non-GAAP financial measures may be different from the calculation used by other companies,and therefore comparability may be limited.

Our non-GAAP information (including non-GAAP cost and operating expenses,income (loss) from operations,net income (loss)，net income attributable to Momo Inc.,and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation,amortization of intangible assets from business acquisitions,and tax impacts related to the amortization of intangible assets from business acquisitions. A limitation of using these non-GAAP financial measures is that share-based compensation,amortization of intangible assets from business acquisitions and tax impacts related to the amortization of intangible assets from business acquisitions have been and will continue to be for the foreseeable future a significant recurring expense in our results of operations. We compensate for these limitations by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.

Conference Call

Momo's management will host an earnings conference call on Thursday,at8:00 a.m.U.S. Eastern Time (8:00 p.m. Beijing/Hong KongTime on May 28,2020).

All participants must preregister online prior to the call to receive the dial-in details. Oncepreregistration has been complete,participants will receive dial-in numbers,direct event passcode,and a unique registrant ID.

PRE-REGISTER LINK http://apac.directeventreg.com/registration/event/4085667

To join the conference,simply dial the number in the calendar invite you receive after preregistering,enter the passcode followed by your registrant ID,and you will join the conference instantly.

A telephone replay of the call will be available after the conclusion of the conference call through 9:00 a.m.U.S. Eastern Time,June 5,2020. The dial-in details for the replay are as follows:

International:

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

4085667

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

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 interactions based on location,interests and a variety of recreational activities including live talent shows,short videos,social games as well as other video- and audio-based interactive experiences,such as live chats and mobile karaoke experience. Tantan,which was added into our family of applications through acquisition in May 2018,is a leading social and dating application for the younger generation. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. For investor and media inquiries,please contact:

Momo Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: ir@immomo.com

Christensen

In China

Mr. Christian Arnell

Phone: +86-10-5900-1548

E-mail: carnell@christensenir.com

In US

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: lbergkamp@christensenir.com

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933,as amended,and Section 21E of the Securities Exchange Act of 1934,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 secondquarter of 2020.

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 first quarter of 2020 are preliminary,unaudited and subject to audit adjustment. In addition,we may not meet our financial outlook for the second quarter of 2020 and may be unable to grow our business in the manner planned. We may also modifyour 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,our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers,and the impact of the COVID-19 to Momo's business operations and the economy in China. For additional information on these and other important factors that could adversely affect our business,financial condition,results of operations,and prospects,please see our filings with the U.S. Securities and Exchange Commission.

All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement,whether as a result of new information,future events or otherwise,after the date of this release,except as required by law. Such information speaks only as of the date of this release.

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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

Three months

ended March 31

2019

2020

2020

RMB

RMB

US$

Net revenues:

Live video service

2,689,413

2,332,004

329,342

Value-added service

903,849

1,175,754

166,049

Mobile marketing

80,729

57,155

8,072

Mobile games

39,008

12,691

1,792

Other services

9,920

16,480

2,327

Total net revenues

3,722,919

3,594,084

507,582

Cost and expenses:

Cost of revenues

(1,873,574)

(1,876,916)

(265,071)

Research and development

(249,431)

(262,159)

(37,024)

Sales and marketing

(623,848)

(709,808)

(100,244)

General and administrative

(602,596)

(177,249)

(25,032)

Total cost and expenses

(3,349,449)

(3,026,132)

(427,371)

Other operating income

10,954

26,119

3,689

Income from operations

384,424

594,071

83,900

Interest income

93,778

130,823

18,476

Interest expense

(18,989)

(19,819)

(2,799)

Impairment loss on long-term investments

(4,500)

(6,000)

(847)

Income before income tax and share of income on equity method

investments

454,713

699,075

98,730

Income tax expenses

(163,651)

(162,891)

(23,005)

Income before share of income on equity method investments

291,062

536,184

75,725

Share of (loss) income on equity method investments

(4,504)

1,527

216

Net income

286,558

537,711

75,941

Less: net loss attributable to non-controlling interest

(2,759)

(1,195)

(169)

Net income attributable to the shareholders of Momo Inc.

289,317

538,906

76,110

Net income per share attributable to ordinary shareholders

Basic

0.70

1.29

0.18

Diluted

0.68

1.23

0.17

Weighted average shares used in calculating net income per ordinary

share

Basic

413,967,371

417,294,242

417,242

Diluted

425,890,818

453,331,322

453,322

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

ended March 31

2019

2020

2020

RMB

RMB

US$

Net income

286,941

Other comprehensive loss,net of tax

Foreign currency translation adjustment

(72,981)

(867)

(122)

Comprehensive income

213,577

536,844

75,819

Less: comprehensive loss attributed to the non-controlling interest

(5,234)

(5,569)

(786)

Comprehensive income attributable to Momo Inc.

218,811

542,413

76,605

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

March 31

March 31

2019

2020

2020

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

2,612,743

2,799,214

395,325

Short-term deposits

12,312,585

12,668,028

1,789,067

Accounts receivable,net of allowance for doubtful accounts of RMB 12,209 and

RMB11,555 as of December 31,2019 and March 31,respectively

265,155

295,513

41,734

Amount due from a related party

4,382

2,258

319

Prepaid expenses and other current assets

599,000

598,495

84,523

Total current assets

15,793,865

16,363,508

2,310,968

Long-term deposits

300,000

300,000

42,368

Right-of-use assets,net

190,552

163,926

23,151

Property and equipment,net

346,345

339,560

47,955

Intangible assets

890,303

863,878

122,003

Rental deposits

25,028

25,201

3,559

Long-term investments

495,905

494,545

69,843

Other non-current assets

44,009

55,796

7,880

Deferred tax assets

37,064

35,026

4,947

Goodwill

4,360,610

4,434,769

626,309

Total assets

22,483,681

23,076,209

3,258,983

Liabilities and equity

Current liabilities

Accounts payable

714,323

635,546

89,755

Deferred revenue

503,461

482,455

68,135

Accrued expenses and other current liabilities

985,873

838,913

118,477

Amount due to related parties

29,606

34,590

4,885

Lease liabilities due within one year

135,169

123,451

17,435

Income tax payable

153,976

174,320

24,619

Dividends payable

-

1,123,364

158,649

Deferred consideration in connection with business acquisitions

84,346

85,788

12,116

Total current liabilities

2,606,754

3,498,427

494,071

Deferred tax liabilities

222,576

215,970

30,501

Convertible senior notes

4,954,352

5,043,106

712,223

Share-based compensation liability

902,047

930,603

131,426

Lease liabilities

56,498

42,972

6,069

Other non-current liabilities

22,672

41,522

5,864

Total liabilities

8,764,899

9,772,600

1,380,154

Shareholder's equity (i)

13,718,782

13,303,609

1,878,829

Total liabilities and shareholder's equity

22,983

(i): As of March 31,the number of ordinary shares issued and outstanding was 417,412,368.

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

Three months

ended March 31

2019

2020

2020

RMB

RMB

US$

Cash flows from operating activities:

Net income

286,558

537,711

75,941

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation of property and equipment

48,400

52,381

7,398

Amortization of intangible assets

38,595

39,882

5,632

Share-based compensation

593,074

168,527

23,800

Share of loss (income) on equity method investments

4,504

(1,527)

(216)

Impairment loss on long-term investments

4,500

6,000

847

Gain on subsidiary deconsolidation

-

(6,676)

(943)

Loss on disposal of property and equipment

4

-

-

Provision of allowance for doubtful accounts

-

(654)

(92)

Cash received on investment income distribution

-

1,153

163

Changes in operating assets and liabilities:

Accounts receivable

409,414

(37,979)

(5,364)

Prepaid expenses and other current assets

(18,189)

1,162

164

Amount due from related parties

-

2,123

300

Rental deposits

(1,317)

(173)

(24)

Deferred tax assets

25,537

2,038

288

Other non-current assets

31,439

14,840

2,096

Accounts payable

32,515

(80,073)

(11,308)

Income tax payable

(71,558)

20,344

2,873

Deferred revenue

18,842

(21,023)

(2,969)

Accrued expenses and other current liabilities

(185,495)

(154,243)

(21,783)

Amount due to related parties

(25,965)

4,984

704

Deferred tax liability

(15,542)

(9,971)

(1,408)

Other non-current liabilities

593

4,670

660

Net cash provided by operating activities

1,909

543,496

76,759

Cash flows from investing activities:

Purchase of property and equipment

(52,798)

(38,167)

(5,390)

Proceeds from disposal of property and equipment

5

2

-

Payment for long-term investments

(12,000)

(4,500)

(636)

Cash dividend received

-

233

33

Cash outflow due to subsidiary deconsolidation

-

(1,026)

(145)

Purchase of short-term deposits

(3,485,005)

(3,300,000)

(466,049)

Cash received on maturity of short-term deposits

3,005,005

2,979,140

420,735

Payment for short-term investments

(210,000)

(10,000)

(1,412)

Cash received from sales of short-term investment

100,000

10,000

1,412

Net cash used in investing activities

(654,793)

(364,318)

(51,452)

Cash flows from financing activities:

Deferred payment for business acquisition

(305,067)

-

-

Proceeds from exercise of share options

83

-

-

Deferred payment of purchase of property and equipment

(94)

-

-

Net cash used in financing activities

(305,078)

-

-

Effect of exchange rate changes

(5,730)

7,293

1,028

Net increase in cash and cash equivalents

210,308

186,471

26,335

Cash and cash equivalents at the beginning of period

2,468,034

2,743

368,990

Cash and cash equivalents at the end of period

2,678,342

2,325

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 March 31,2019

ended March 31,2020

ended March 31,2020

GAAP

Amortization

of intangible

assets from

business

acquisitions

Share-

based

compensation

Tax

impacts

(ii)

Non-GAAP

GAAP

Amortization

of intangible

assets from

business

acquisitions

Share-

based

compensation

Tax

impacts

(ii)

Non-GAAP

GAAP

Amortization

of intangible

assets from

business

acquisitions

Share-

based

compensation

Tax

impacts

(ii)

Non-GAAP

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

US$

US$

US$

US$

US$

Cost of revenues

(1,574)

18,021

4,186

-

(1,851,367)

(1,916)

18,645

6,969

-

(1,302)

(265,071)

2,633

984

-

(261,454)

Research and

development

(249,431)

2,289

39,730

-

(207,412)

(262,159)

2,368

42,760

-

(217,031)

(37,024)

334

6,039

-

(30,651)

Sales and marketing

(623,848)

16,853

39,452

-

(567,543)

(709,808)

17,436

47,074

-

(645,298)

(100,244)

2,462

6,648

-

(91,134)

General and

administrative

(602,596)

-

509,706

-

(92,890)

(177,249)

-

71,724

-

(105,525)

(25,032)

-

10,129

-

(14,903)

Cost and operating

expenses

(3,449)

37,163

593,074

-

(2,719,212)

(3,132)

38,449

168,527

-

(2,819,156)

(427,371)

5,429

23,800

-

(398,142)

Income from operations

384,424

37,163

593,074

-

1,014,661

594,071

38,449

168,527

-

801,047

83,900

5,429

23,800

-

113,129

Net income attributable to

Momo Inc.

289,317

37,074

(9,291)

910,263

538,906

38,527

(9,612)

736,270

76,110

5,800

(1,357)

103,982

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

Momo Inc.

Unaudited Condensed Segment Report

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

Three months

ended March 31,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

2,325,945

6,059

-

2,342

Value-added service

800,103

375,651

-

1,049

Mobile marketing

57,155

-

-

57,072

Mobile games

12,691

-

-

12,792

Other services

6,195

-

10,285

16,202,089

381,710

10,285

3,582

Cost and expenses (iii):

Cost of revenues

(1,736,517)

(132,278)

(8,121)

(1,071)

Research and development

(183,900)

(78,259)

-

(262,024)

Sales and marketing

(394,364)

(315,421)

(23)

(709,244)

General and administrative

(143,135)

(27,680)

(6,434)

(177,032)

Total cost and expenses

(2,457,916)

(553,638)

(14,578)

(3,371)

Other operating income

26,119

-

-

26,689

Income (loss) from operations

770,292

(171,928)

(4,293)

594,900

Interest income

129,278

1,472

73

130,476

Interest expense

(19,819)

-

-

(19,799)

Impairment loss on long-term investments

(6,000)

-

-

(6,000)

(847)

Income (loss) before income tax and

share of income on equity method

investments

873,751

(170,456)

(4,220)

699,730

Income tax (expenses) benefits

(168,212)

5,321

-

(162,005)

Income (loss) before share of income

on equity method investments

705,539

(165,135)

(4,220)

536,725

Share of loss on equity method

investments

1,527

-

-

1,527

216

Net income (loss)

707,066

(165,220)

537,941

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

Three months

ended March 31,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

5,611

1,358

-

6,969

984

Research and development

26,802

15,958

-

42,760

6,039

Sales and marketing

45,441

1,633

-

47,074

6,648

General and administrative

54,984

14,121

2,619

71,724

10,129

Total cost and expenses

132,838

33,070

2,619

168,527

23,800

Momo Inc.

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

(All amounts in thousands,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

770,292

(171,928)

(4,293)

594,071

83,900

Share-based compensation

132,838

33,070

2,619

168,800

Amortization of intangible assets from

business acquisitions

-

38,449

-

38,449

5,429

Non-GAAP operating income (loss)

903,130

(100,409)

(1,674)

801,047

113,129

Net income (loss)

707,066

(165,135)

(4,220)

537,941

Share-based compensation

132,429

Tax impacts

-

(9,612)

-

(9,612)

(1,357)

Non-GAAP net income (loss)

839,904

(103,228)

(1,601)

735,075

103,813

Momo Inc.

Unaudited Condensed Segment Report

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

Three months

ended March 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[2]

Net revenues:

Live video service

2,413

-

-

2,413

400,735

Value-added service

608,502

295,347

-

903,849

134,678

Mobile marketing

80,729

-

-

80,729

12,029

Mobile games

39,008

-

-

39,008

5,812

Other services

1,557

-

8,363

9,920

1,478

Total net revenues

3,419,209

295,347

8,363

3,919

554,732

Cost and expenses (iv):

Cost of revenues

(1,770,038)

(98,856)

(4,680)

(1,574)

(279,171)

Research and development

(184,273)

(65,158)

-

(249,431)

(37,166)

Sales and marketing

(362,958)

(255,921)

(4,969)

(623,848)

(92,956)

General and administrative

(114,264)

(479,965)

(8,367)

(602,596)

(89,790)

Total cost and expenses

(2,431,533)

(899,900)

(18,016)

(3,449)

(499,083)

Other operating income

10,954

-

-

10,954

1,632

Income (loss) from operations

998,630

(604,553)

(9,653)

384,424

57,281

Interest income

90,858

2,891

29

93,778

13,973

Interest expense

(18,989)

-

-

(18,989)

(2,829)

Impairment loss on long-term investments

(4,500)

-

-

(4,500)

(671)

Income (loss) before income tax and share

of income on equity method

investments

1,065,999

(601,662)

(9,624)

454,713

67,754

Income tax (expenses) benefits

(167,603)

3,952

-

(163,651)

(24,385)

Income (loss) before share of income on

equity method investments

898,396

(597,710)

(9,624)

291,062

43,369

Share of income on equity method

investments

(4,504)

-

-

(4,504)

(671)

Net income (loss)

893,892

(597,624)

286,558

42,698

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

Three months

ended March 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

3,606

580

-

4,186

624

Research and development

21,713

18,017

-

39,730

5,920

Sales and marketing

35,474

3,978

-

39,452

5,879

General and administrative

39,491

467,684

2,531

509,706

75,949

Total cost and expenses

100,284

490,259

2,531

593,074

88,372

[2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.7112 to US$1.00,the effective noon buying rate for March 29,2019

as set forth in the H.10 statistical release of the Federal Reserve Board.

Momo Inc.

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

(All amounts in thousands,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

998,630

(604,553)

(9,653)

384,424

57,281

Share-based compensation

100,284

490,259

2,531

593,074

88,372

Amortization of intangible assets from

business acquisitions

-

37,163

-

37,163

5,537

Non-GAAP operating income (loss)

1,098,914

(77,131)

(7,122)

1,661

151,190

Net income (loss)

893,892

(597,710)

(9,624)

286,558

42,698

Share-based compensation

100,537

Tax impacts

-

(9,291)

-

(9,291)

(1,384)

Non-GAAP net income (loss)

994,176

(79,579)

(7,093)

907,504

135,223

View original content:/news-releases/momo-announces-unaudited-financial-results-for-the-first-quarter-of-2020-301066759.html