Momo Announces Unaudited Financial Results for the Third Quarter of 2020

BEIJING,Dec. 1,2020 -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"),a leading mobile social networking platform in China,today announced its unaudited financial results for the thirdquarterof 2020.

ThirdQuarter of 2020 Highlights

Net revenues decreased by 15.4% year over year to RMB3,766.7 million (US$554.8 million*) in the third quarter of 2020.

Net incomeattributable to Momo Inc. decreased to RMB456.7 million (US$67.3million) in the third quarter of 2020 from RMB893.9million in the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB653.8 million (US$96.3million) in the third quarter of 2020,from RMB1,088.1million in the same period of 2019.

Diluted net income per American Depositary Share ("ADS") was RMB2.11 (US$0.31) in the third quarter of 2020,compared to RMB4.04 in the same period of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB2.98 (US$0.44) in the thirdquarter of 2020,compared to RMB4.90 in the same period of 2019.

Monthly Active Users ("MAU") on Momo application were 113.6 million inSeptember2020,compared to 114.1 million in September2019.

Total paying users of our live video service and value-added service,without double counting the overlap and including 4.1 million paying users of Tantan Limited ("Tantan"),were 13.1 million for the third quarter of 2020,compared to 13.4 million for thethird quarter of 2019,which included 4.5 million paying users of Tantan.

First Nine Monthsof 2020 Highlights

Net revenues decreased by 8.9% year over year to RMB11,229.0 million (US$1,653.9 million) for the first nine monthsof 2020.

Net income attributable to Momo Inc. was RMB1,452.0 million (US$213.9 million) for the first nine months of 2020,compared with RMB1,915.0 million during the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1)was RMB2,059.8 million (US$303.4 million) for the first nine months of 2020,compared with RMB3,240.8 million during the same period of 2019.

Dilutednet incomeper ADS was RMB6.68 (US$0.98) for the first nine months of 2020,compared with RMB8.76 during the same period of 2019.

Non-GAAP diluted net incomeper ADS (note 1)was RMB9.36 (US$1.38)for the first nine months of 2020,compared with RMB14.65 during the same period of 2019.

"The third quarter of 2020 was a busy quarter for us. As a result of management's commitment and the persistence of our colleagues,the structural reform within the core live broadcasting business has achieved initial success."Commented Li Wang,CEO of Momo. "The critical metrics reflecting the healthiness of the ecosystem have been showing positive signs. As the content ecosystem gradually improved,non-event days'revenue is also seeing strong rebound. Although we have more hard work to do down the path,what we have achieved so far gives us the confidence that our live streaming business has entered into a virtuous cycle supported by a sustainable content ecosystem."

* 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 RMB6.7896 to US$1.00,the effective noon buying rate for September 30,2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

ThirdQuarter of 2020 Financial Results

Net revenues

Total net revenues were RMB3,766.7 million (US$554.8million) in the thirdquarter of 2020,a decrease of 15.4% from RMB4,451.6 million in the thirdquarter of 2019.

Live video service revenues were RMB2,374.8 million (US$349.8 million) in the thirdquarter of 2020,a decrease of 27% from RMB3,275.4 million during the same period of 2019. The decrease was primarily due to our structural reform on Momo's core live video business,which was used to revive the long tail content ecosystem and to a lesser extent,the impact of COVID-19 adversely affecting the sentiment of our paying users,especially among the top of the pyramid paying users. The decrease was partially offset by the growth from Tantan's live video service,and live video service revenues from Tantan were RMB396.7 million (US$58.4 million) in the thirdquarter of 2020.

Value-addedservice revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,330.8 million (US$196.0million) in the thirdquarter of 2020,an increase of 25% from RMB1,064.6 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 innovative products launched and more paying scenarios introduced to enhance the social entertainment experience of Momo users,and to a lesser extent,theincrease in the membership subscription revenues of Tantan.

Mobile marketing revenues were RMB50.4 million (US$7.4 million) in the thirdquarter of 2020,a decrease of 38% from RMB81.9 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 RMB8.0 million (US$1.2 million) in the thirdquarter of 2020,a decrease of 49% from RMB15.8 million in the thirdquarter 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 RMB4,138.9 million in the thirdquarter of 2019 to RMB3,037.0 million (US$447.3 million) in the thirdquarter of 2020,primarily due to 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 RMB310.0 million in the thirdquarter of 2019 to RMB728.9 million (US$107.4 million) in the thirdquarter of 2020,which was mainly due to the increase in net revenues from live video service and to a lesser extent,the increase in net revenues from value-added services.

Cost and expenses

Cost and expenses were RMB3,258.5 million (US$479.9 million) in the thirdquarter of 2020,a decrease of 6.6% from RMB3,487.9 million in the thirdquarter of 2019. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to our live video service; (b) a decrease in personnel related costs,professional fees and infrastructure-related spending,such as bandwidth costs and server depreciation costs. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service,and an increase in marketing and promotional expenses to attract users onTantan.

Non-GAAP cost and expenses (note 1) were RMB3,052.0 million (US$449.5 million) in the thirdquarter of 2020,a decrease of 7.1% from RMB3,284.0 million during the same period of 2019.

Incomefrom operations

Incomefrom operations was RMB531.1 million (US$78.2 million)in the thirdquarter of 2020,compared to RMB993.1 million during the same period of 2019. Incomefrom operations of Momo segment wasRMB658.7 million (US$97.0 million) in the thirdquarter of 2020,decreasing from RMB1,227.2 million in thethirdquarter of 2019. Loss from operations of Tantan segment was RMB121.5 million (US$17.9 million) in the thirdquarter of 2020,compared to loss from operationsof RMB228.7 million in the thirdquarter of 2019.

Non-GAAP income from operations (note 1) was RMB737.6 million (US$108.6million) in the thirdquarter of 2020,compared to RMB1,196.9 million during the same period of 2019. Non-GAAPincomefrom operations of Momo segment wasRMB805.8 million (US$118.7 million)in the thirdquarter of 2020,364.1 million in the thirdquarter of 2019. Non-GAAPlossfrom operations of Tantan segment was RMB64.7 million (US$9.5 million) in the thirdquarter of 2020,compared to non-GAAP loss from operations of RMB164.4 million in the thirdquarter of 2019.

Income tax expenses

Income tax expenses were RMB143.6 million (US$21.2 million) in the thirdquarter of 2020,decreasing from RMB182.6 million in the thirdquarter of 2019. The decrease in income tax expenses was mainly due to the lower profit in the third quarter of 2020.

Net income

Net incomewas RMB456.0 million (US$67.2 million) in the thirdquarter of 2020,compared toRMB890.8million during the same period of 2019. Net incomefromMomo segment was RMB576.2 million (US$84.9 million) in the thirdquarter of 2020,decreasing fromRMB1,110.2million in the thirdquarter of 2019. Net loss from Tantan segment was RMB114.2 million (US$16.8 million) in the thirdquarter of 2020,compared tonet loss of RMB214.1 million in the thirdquarter of 2019.

Non-GAAP net income (note 1) was RMB653.1 million (US$96.2million) in the thirdquarter of 2020,084.9 million during the same period of 2019. Non-GAAPnet incomefrom Momo segment wasRMB723.4million(US$106.5 million) in the thirdquarter of 2020,247.2million in the thirdquarter of 2019. Non-GAAPnet lossof Tantan segment was RMB66.9 million (US$9.8 million) in the thirdquarter of 2020,compared tonon-GAAP net loss of RMB159.5 million in the thirdquarter of 2019.

Net income attributable to Momo Inc.

Net incomeattributable to Momo Inc. was RMB456.7 million (US$67.3 million) in the thirdquarter of 2020,compared toRMB893.9million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB653.8 million (US$96.3million) in the thirdquarter of 2020,088.1 million during the same period of 2019.

Net incomeper ADS

Diluted net incomeper ADS was RMB2.11 (US$0.31) in the thirdquarter of 2020,compared toRMB4.04in the thirdquarter of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB2.98 (US$0.44) in the thirdquarter of 2020,compared to RMB4.90 in the thirdquarter of 2019.

Cash and cash flow

As of September 30,2020,Momo's cash,cash equivalents,short-term deposits and long-term deposits totaled RMB15,764.1 million (US$2,321.8million),compared to RMB15,225.3 million as of December 31,2019. Net cash provided by operating activities in the thirdquarter of 2020 was RMB691.1 million (US$101.8million),175.9 million in the thirdquarter of 2019.

First Nine Months of 2020Financial Results

Net revenues for the first nine months of 2020 were RMB11,653.9 million),a decrease of 8.9% from RMB12,327.2 million in the same period of 2019.

Net income attributable to Momo Inc. was RMB1,compared to RMB3,240.8 million during the same period of 2019.

Dilutednet incomeper ADS was RMB6.68 (US$0.98) during the first nine months of 2020,compared to RMB8.76 in the same period of 2019.

Non-GAAP diluted net incomeper ADS (note 1) was RMB9.36 (US$1.38) during the first nine months of 2020,compared to RMB14.65inthe same period of 2019.

Net cash provided by operating activities was RMB2,041.8 million (US$300.7 million) during the first nine months of 2020,773.8 million in the same period of 2019.

Recent Developments

On September 3,Momo's board of directors authorized a share repurchase program under which the Company may repurchase up to US$300 million of its shares over the next 12 months. As of November 30,the Company had repurchased approximately 1.66 million ADSs for approximately US$23.3 million on the open market under this program,at an average purchase price of US$14.03 per ADS.

Mr. Xiaoliang Lei will step down from the Company's Chief Strategy Officer position for personal reasons effective from December 2020,and he will continue to serve as a senior advisor to the Company.

Business Outlook

For the fourth quarter of 2020,the Company expects total net revenues to be between RMB3.65 billion to RMB3.75 billion,representing a decrease of 22.1% to 20.0% 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 Tuesday,December 1,at8:00 a.m.U.S. Eastern Time (9:00 p.m. Beijing/Hong KongTime on December 1,2020).

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/1217808

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 8:00 a.m.U.S. Eastern Time,December 9,2020. The dial-in details for the replay are as follows:

International:

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

1217808

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. Eric Yuan

Phone: +86-10-5900-1548

E-mail: Eyuan@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,our financial outlook for the fourth quarter of 2020,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 thirdquarter of 2020 are preliminary,unaudited and subject to audit adjustment. In addition,we may not meet our financial outlook for the fourth quarter of 2020 and may be unable to grow our business in the manner planned. We may also modifyour strategy for growth. Moreover,there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate,including those relating to our ability to retain and grow our user base,our ability to attract and retain sufficiently trained professionals to support our operations,our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers,the impact of the COVID-19 to Momo's business operations and the economy in China,the market price of Momo's stock prevailing from time to time,the nature of other investment opportunities presented to Momo from time to time,Momo'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

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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

Three months

First nine months

endedSeptember 30

endedSeptember 30

2019

2020

2020

2019

2020

2020

RMB

RMB

US$

RMB

RMB

US$

Net revenues:

Live video service

3,275,354

2,374,824

349,774

9,064,654

7,309,704

1,076,603

Value-added service

1,606

1,330,839

196,012

2,916,849

3,710,913

546,559

Mobile marketing

81,894

50,415

7,425

238,831

145,534

21,435

Mobile games

15,785

7,975

1,175

78,033

32,230

4,747

Other services

14,003

2,598

382

28,824

30,606

4,507

Total net revenues

4,451,642

3,766,651

554,768

12,327,191

11,228,987

1,653,851

Cost and expenses:

Cost of revenues

(2,203,350)

(2,020,779)

(297,629)

(6,140,787)

(5,934,000)

(873,984)

Research and development

(301,754)

(299,221)

(44,070)

(802,843)

(840,382)

(123,775)

Sales and marketing

(771,338)

(754,892)

(111,184)

(1,965,795)

(2,116,200)

(311,683)

General and administrative

(211,423)

(183,649)

(27,049)

(1,314,679)

(540,959)

(79,675)

Total cost and expenses

(3,487,865)

(3,258,541)

(479,932)

(10,224,104)

(9,431,541)

(1,389,117)

Other operating income

29,342

22,944

3,379

202,197

140,392

20,678

Income from operations

993,119

531,054

78,215

2,305,284

1,937,838

285,412

Interest income

105,384

104,232

15,352

299,337

343,591

50,605

Interest expense

(20,117)

(19,885)

(2,929)

(58,421)

(59,825)

(8,811)

Impairment loss on long-term

investments

(11,211)

-

-

(15,711)

(6,000)

(884)

Income before income tax

and share of income on

equity method

investments

1,067,175

615,401

90,638

2,530,489

2,215,604

326,322

Income tax expenses

(182,578)

(143,615)

(21,152)

(630,097)

(750,139)

(110,484)

Income before share of

income on equity method

investments

884,597

471,786

69,486

1,900,392

1,465,465

215,838

Share of income (loss) on

equity method investments

6,185

(15,763)

(2,322)

8,056

(16,203)

(2,386)

Net income

890,782

456,023

67,164

1,908,448

1,449,262

213,452

Less: net loss attributable to

non-controlling interest

(3,115)

(705)

(104)

(6,543)

(2,772)

(408)

Net income attributable to

the shareholders of

Momo Inc.

893,897

456,728

67,268

1,914,991

1,452,034

213,860

Net incomeper share

attributable to ordinary

shareholders

Basic

2.15

1.09

0.16

4.62

3.48

0.51

Diluted

2.02

1.05

0.16

4.38

3.34

0.49

Weighted average shares

used in calculating net

incomeper ordinary share

Basic

415,615,139

417,884,266

417,266

414,790,186

417,580,609

417,609

Diluted

452,571,862

452,724,863

452,863

450,470,088

452,854,314

452,314

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Threemonths

First nine months

endedSeptember 30

ended September 30

2019

2020

2020

2019

2020

2020

RMB

RMB

US$

RMB

RMB

US$

Net income

890,452

Other comprehensive income

(loss),net of tax

Foreign currency translation

adjustment

62,771

(80,618)

(11,874)

30,689

(72,667)

(10,703)

Comprehensiveincome

953,553

375,405

55,290

1,939,137

1,376,595

202,749

Less: comprehensiveincome

(loss) attributed to the non-

controlling interest

3,519

(9,953)

(1,466)

556

(16,945)

(2,496)

Comprehensive income

attributable to Momo Inc.

950,034

385,358

56,756

1,938,581

1,393,540

205,245

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

September 30

September 30

2019

2020

2020

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

2,612,743

3,176,406

467,834

Short-term deposits

12,312,585

7,692

1,169,096

Accounts receivable,net of allowance for doubtful accounts of RMB12,209 and

RMB17,621 as of December 31,2019 and September 30,respectively

265,155

233,398

34,376

Amount due from a related party

4,382

-

-

Prepaid expenses and other current assets

599,000

738,502

108,769

Total current assets

15,793,865

12,085,998

1,780,075

Long-term deposits

300,000

4,650,000

684,871

Right-of-use assets,net

190,552

112,012

16,498

Property and equipment,net

346,345

305,420

44,983

Intangible assets

890,303

752,470

110,827

Rental deposits

25,028

24,922

3,671

Long-term investments

495,905

476,815

70,227

Other non-current assets

44,009

94,368

13,899

Deferred tax assets

37,064

34,031

5,012

Goodwill

4,360,610

4,253,297

626,443

Total assets

22,483,681

22,789,333

3,356,506

Liabilities and equity

Current liabilities

Accounts payable

714,323

634,249

93,415

Deferred revenue

503,461

487,234

71,761

Accrued expenses and other current liabilities

985,873

858,038

126,376

Amount due to related parties

29,606

31,868

4,694

Lease liabilities due within one year

135,169

92,500

13,624

Income tax payable

153,976

331,831

48,873

Deferred consideration in connection with business acquisitions

84,346

64,669

9,525

Total current liabilities

2,606,754

2,500,389

368,268

Deferred tax liabilities

222,576

188,118

27,707

Convertible senior notes

4,954,352

4,843,751

713,407

Share-based compensation liability

902,047

910,197

134,057

Lease liabilities

56,498

15,287

2,252

Other non-current liabilities

22,672

34,495

5,081

Total liabilities

8,764,899

8,492,237

1,250,772

Shareholder's equity(i)

13,718,782

14,297,096

2,105,734

Total liabilities and shareholder's equity

22,506

(i): As ofSeptember 30,the number of ordinary shares outstanding was 415,801,407.

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

Threemonths

First nine months

endedSeptember 30

ended September 30

2019

2020

2020

2019

2020

2020

RMB

RMB

US$

RMB

RMB

US$

Cash flows from operating activities:

Net income

890,782

456,023

67,164

1,448

1,262

213,452

Adjustments to reconcile net incometo net cash

provided by operating activities:

Depreciation of property and equipment

50,216

49,024

7,220

146,852

153,615

22,625

Amortization of intangible assets

40,100

39,347

5,795

117,715

119,517

17,603

Share-based compensation

165,163

168,475

24,814

1,240,774

521,102

76,751

Share of (income) loss on equity method investments

(6,185)

15,763

2,322

(8,056)

16,203

2,386

Impairment loss on long-term investments

11,211

-

-

15,711

6,000

884

Gain on subsidiary deconsolidation

-

-

-

-

(6,676)

(983)

Gain on disposal of property and equipment

(64)

(284)

(42)

(398)

(285)

(42)

Provision of allowance for doubtful accounts

2,900

26,006

3,830

12,209

26,412

3,890

Cash received on investment income distribution

-

-

-

-

1,153

170

Changes in operating assets and liabilities:

Accounts receivable

(103,290)

15,968

2,352

331,836

17,714

2,609

Prepaid expenses and other current assets

(24,378)

(207,586)

(30,574)

(23,182)

(163,753)

(24,118)

Amount due from a related party

(1,335)

2,029

299

(1,606)

4,382

645

Rental deposits

2,033

(83)

(12)

(362)

107

16

Deferred tax assets

(2,803)

561

83

23,304

3,034

447

Other non-current assets

(33,254)

9,930

1,463

(20,611)

28,181

4,151

Accounts payable

(133,863)

(62,189)

(9,159)

(45,775)

(78,664)

(11,586)

Income tax payable

(16,064)

112,799

16,613

(23,052)

177,855

26,195

Deferred revenue

84,711

17,442

2,569

54,789

(15,830)

(2,332)

Accrued expenses and other current liabilities

278,181

52,819

7,779

136,558

(161,411)

(23,773)

Amount due to related parties

(10,550)

13,495

1,988

(53,267)

2,262

333

Deferred tax liability

(10,025)

(9,837)

(1,449)

(35,322)

(29,880)

(4,401)

Other non-current liabilities

(7,556)

(8,648)

(1,274)

(2,762)

(28,500)

(4,198)

Net cash provided byoperating activities

1,175,930

691,054

101,781

3,773,803

2,041,800

300,724

Cash flows from investing activities:

Purchase of property and equipment

(59,933)

(24,078)

(3,546)

(154,413)

(108,048)

(15,914)

Proceeds from disposal of property and equipment

294

457

67

804

474

70

Payment for long-term investments

(19,000)

-

-

(43,000)

(4,500)

(663)

Prepayment of long-term investments

-

-

-

(15,000)

-

-

Cash dividend received

-

-

-

-

233

34

Cash outflow due to subsidiary deconsolidation

-

-

-

-

(1,026)

(151)

Purchase of short-term deposits

(4,786,130)

(3,053,307)

(449,704)

(14,501,135)

(11,295,165)

(1,663,598)

Cash received on maturity of short-term deposits

4,785,400

4,337,085

638,784

12,430

15,622,659

2,300,969

Payment for short-term investments

(30,000)

-

-

(280,000)

(10,000)

(1,473)

Cash received from sales of short-term investment

80,000

-

-

240,000

10,000

1,473

Purchase of long-term deposits

-

(1,550,000)

(228,290)

-

(4,350,000)

(640,686)

Net cash used in investing activities

(29,369)

(289,843)

(42,689)

(2,102,314)

(135,373)

(19,939)

Cash flows from financing activities:

Deferred payment for business acquisition

(759)

-

-

(379,507)

(18,355)

(2,703)

Proceeds from exercise of share options

71

54

8

186

55

8

Deferred payment of purchase of property and

equipment

(16,893)

-

-

(16,987)

-

-

Repurchase of ordinary shares

-

(132,407)

(19,501)

-

(132,501)

Repurchase of subsidiary's share options

-

(24,900)

(3,667)

-

(24,667)

Dividends payment

-

-

-

(877,346)

(1,123,983)

(165,545)

Net cash used in financing activities

(17,581)

(157,253)

(23,160)

(1,273,654)

(1,299,590)

(191,408)

Effect of exchange rate changes

6,200

(45,135)

(6,649)

5,054

(43,174)

(6,358)

Net increase in cash and cash equivalents

1,135,180

198,823

29,283

402,889

563,663

83,019

Cash and cash equivalents at the beginning of period

1,735,743

2,977,583

438,551

2,468,034

2,743

384,815

Cash and cash equivalentsat the end of period

2,870,923

3,834

2,834

Momo 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.

Threemonths

Threemonths

Threemonths

endedSeptember 30,2019

endedSeptember 30,2020

endedSeptember 30,2020

GAAP

RMB

Amortization

of intangible

assets from

business

acquisitions

RMB

Share-

based

compensation

RMB

Tax

impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

RMB

Amortization

of intangible

assets from

business

acquisitions

RMB

Share-

based

compensation

RMB

Tax

impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

US$

Amortization

of intangible

assets from

business

acquisitions

US$

Share-

based

compensation

US$

Tax

impacts

(ii)

US$

Non-GAAP

US$

Cost of revenues

(2,350)

18,751

6,738

-

(2,177,861)

(2,779)

18,472

4,434

-

(1,997,873)

(297,629)

2,721

653

-

(294,255)

Research and development

(301,754)

2,381

45,345

-

(254,028)

(299,221)

2,346

44,610

-

(252,265)

(44,070)

346

6,570

-

(37,154)

Sales and marketing

(771,338)

17,535

52,100

-

(701,703)

(754,892)

17,275

41,583

-

(696,034)

(111,184)

2,544

6,125

-

(102,515)

General and

administrative

(211,423)

-

60,980

-

(150,443)

(183,649)

-

77,848

-

(105,801)

(27,049)

-

11,466

-

(15,583)

Cost and operating

expenses

(3,865)

38,667

165,163

-

(3,284,035)

(3,541)

38,093

168,475

-

(3,051,973)

(479,932)

5,611

24,814

-

(449,507)

Income from operations

993,119

38,667

165,163

-

1,196,949

531,054

38,093

168,475

-

737,622

78,215

5,611

24,814

-

108,640

Net income attributable to

Momo Inc.

893,897

38,163

(9,667)

1,088,060

456,728

38,475

(9,523)

653,773

67,268

5,814

(1,403)

96,290

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands,and net income to comparable GAAP measures-continued.

First nine months

First nine months

First nine months

endedSeptember 30,2020

GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-

based compensation

RMB

Tax impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

RMB

Amortization of intangible assets from business acquisitions RMB

Share-

based compensation

RMB

Tax impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

US$

Amortization of intangible assets from business acquisitions

US$

Share-

based compensation

US$

Tax impacts

(ii)

US$

Non-GAAP

US$

Cost of revenues

(6,787)

54,999

16,371

-

(6,069,417)

(5,000)

56,046

14,207

-

(5,863,747)

(873,984)

8,255

2,092

-

(863,637)

Research and development

(802,843)

6,985

129,598

-

(666,260)

(840,382)

7,118

137,355

-

(695,909)

(123,775)

1,048

20,231

-

(102,496)

Sales and marketing

(1,795)

51,433

142,845

-

(1,771,517)

(2,200)

52,413

131,780

-

(1,932,007)

(311,683)

7,720

19,409

-

(284,554)

General and

administrative

(1,679)

-

951,960

-

(362,719)

(540,959)

-

237,760

-

(303,199)

(79,675)

-

35,019

-

(44,656)

Cost and operating

expenses

(10,104)

113,417

1,774

-

(8,869,913)

(9,541)

115,577

521,102

-

(8,794,862)

(1,117)

17,023

76,751

-

(1,343)

Income from operations

2,284

113,417

1,774

-

3,659,475

1,838

115,577

521,102

-

2,574,517

285,412

17,023

76,751

-

379,186

Net income

attributable to

Momo Inc.

1,991

113,774

(28,355)

3,827

1,034

115,102

(28,894)

2,059,819

213,860

17,751

(4,255)

303,379

(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 September 30,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

1,978,098

396,726

-

2,774

Value-added service

998,668

332,171

-

1,012

Mobile marketing

50,415

-

-

50,425

Mobile games

7,975

-

-

7,175

Other services

1,810

-

788

2,598

382

Total net revenues

3,036,966

728,897

788

3,768

Cost and expenses (iii):

Cost of revenues

(1,660,806)

(358,743)

(1,230)

(2,629)

Research and development

(214,597)

(84,624)

-

(299,070)

Sales and marketing

(361,448)

(393,437)

(7)

(754,184)

General and administrative

(164,331)

(13,620)

(5,698)

(183,049)

Total cost and expenses

(2,401,182)

(850,424)

(6,935)

(3,932)

Other operating income

22,893

-

51

22,379

Income (loss) from operations

658,677

(121,527)

(6,096)

531,215

Interest income

103,477

706

49

104,352

Interest expense

(19,885)

-

-

(19,929)

Income (loss) before income tax and share of

income on equity method investments

742,269

(120,821)

(6,047)

615,638

Income tax (expenses) benefits

(150,278)

6,663

-

(143,152)

Income (loss) before share of income on

equity method investments

591,991

(114,158)

(6,047)

471,486

Share of loss on equity method investments

(15,763)

-

-

(15,322)

Net income (loss)

576,228

(114,047)

456,164

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

Three months

ended September 30,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

3,338

1,096

-

4,434

653

Research and development

32,296

12,314

-

44,610

6,570

Sales and marketing

37,110

4,473

-

41,583

6,125

General and administrative

74,416

837

2,595

77,848

11,466

Total cost and expenses

147,160

18,720

2,595

168,475

24,814

Momo Inc.

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

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

Three months

endedSeptember 30,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

658,677

(121,527)

(6,096)

531,054

78,215

Share-based compensation

147,160

18,720

2,595

168,814

Amortization of intangible assets from

business acquisitions

-

38,093

-

38,093

5,611

Non-GAAP operating income (loss)

805,837

(64,714)

(3,501)

737,622

108,640

Net income (loss)

576,228

(114,158)

(6,047)

456,164

Share-based compensation

147,611

Tax impacts

-

(9,523)

-

(9,523)

(1,403)

Non-GAAP net income (loss)

723,388

(66,868)

(3,452)

653,068

96,186

Momo Inc.

Unaudited Condensed Segment Report

(All amounts in thousands,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[1]

Net revenues:

Live video service

3,354

-

-

3,354

458,239

Value-added service

754,629

309,977

-

1,606

148,944

Mobile marketing

81,894

-

-

81,894

11,457

Mobile games

15,785

-

-

15,785

2,208

Other services

11,234

-

2,769

14,003

1,960

Total net revenues

4,138,896

309,977

2,769

4,642

622,808

Cost and expenses (iv):

Cost of revenues

(2,101,678)

(99,722)

(1,950)

(2,350)

(308,260)

Research and development

(225,539)

(76,215)

-

(301,754)

(42,217)

Sales and marketing

(422,034)

(349,274)

(30)

(771,338)

(107,914)

General and administrative

(191,832)

(13,425)

(6,166)

(211,423)

(29,579)

Total cost and expenses

(2,941,083)

(538,636)

(8,146)

(3,865)

(487,970)

Other operating income

29,342

-

-

29,342

4,105

Income (loss) from operations

1,227,155

(228,659)

(5,377)

993,119

138,943

Interest income

102,749

2,594

41

105,384

14,744

Interest expense

(20,117)

-

-

(20,117)

(2,814)

Impairment loss on long-term investments

(11,211)

-

-

(11,211)

(1,568)

Income (loss) before income tax and

share of income on equity method

investments

1,298,576

(226,065)

(5,336)

1,175

149,305

Income tax (expenses) benefits

(194,580)

12,002

-

(182,578)

(25,544)

Income (loss) before share of income

on equity method investments

1,103,996

(214,063)

(5,336)

884,597

123,761

Share of income on equity method

investments

6,185

-

-

6,185

865

Net income (loss)

1,110,181

(214,336)

890,782

124,626

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

Three months

ended September 30,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

5,917

821

-

6,738

943

Research and development

27,375

17,970

-

45,345

6,344

Sales and marketing

46,831

5,269

-

52,100

7,289

General and administrative

56,860

1,486

2,634

60,980

8,531

Total cost and expenses

136,983

25,546

2,634

165,163

23,107

[1]All translations from RMB to U.S. dollars are made at a rate of RMB 7.1477 to US$1.00,2019 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)

1,155

(228,659)

(5,377)

993,119

138,943

Share-based compensation

136,983

25,546

2,634

165,163

23,107

Amortization of intangible assets from

business acquisitions

-

38,667

-

38,667

5,409

Non-GAAP operating income (loss)

1,364,138

(164,446)

(2,743)

1,949

167,459

Net income (loss)

1,181

(214,063)

(5,336)

890,782

124,626

Share-based compensation

136,409

Tax impacts

-

(9,667)

-

(9,667)

(1,352)

Non-GAAP net income (loss)

1,247,164

(159,517)

(2,702)

1,084,945

151,790

Momo Inc.

Unaudited Condensed Segment Report

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

First nine months

ended September 30,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

6,715,266

594,438

-

7,603

Value-added service

2,677,575

1,033,338

-

3,559

Mobile marketing

145,534

-

-

145,435

Mobile games

32,230

-

-

32,747

Other services

9,168

-

21,438

30,507

Total net revenues

9,579,773

1,627,776

21,438

11,851

Cost and expenses (v):

Cost of revenues

(5,189,765)

(723,466)

(20,769)

(5,984)

Research and development

(601,271)

(239,111)

-

(840,775)

Sales and marketing

(1,093,008)

(1,023,151)

(41)

(2,683)

General and administrative

(461,627)

(61,128)

(18,204)

(540,675)

Total cost and expenses

(7,345,671)

(2,046,856)

(39,014)

(9,117)

Other operating income

140,202

-

190

140,678

Income (loss) from operations

2,304

(419,080)

(17,386)

1,412

Interest income

340,531

2,867

193

343,605

Interest expense

(59,825)

-

-

(59,811)

Impairment loss on long-term investments

(6,000)

-

-

(6,000)

(884)

Income (loss) before income tax and share of

income on equity method

investments

2,649,010

(416,213)

(17,193)

2,322

Income tax (expenses) benefits

(762,768)

12,629

-

(750,484)

Income (loss) before share of income on equity method

investments

1,886,242

(403,584)

(17,193)

1,838

Share of loss on equity method investments

(16,203)

-

-

(16,386)

Net income (loss)

1,039

(403,452

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

First nine months

ended September 30,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

12,345

1,862

-

14,207

2,092

Research and development

95,768

41,587

-

137,355

20,231

Sales and marketing

121,456

10,324

-

131,780

19,409

General and administrative

207,650

22,238

7,872

237,760

35,019

Total cost and expenses

437,219

76,011

7,872

521,102

76,751

Momo Inc.

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

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

First nine months

ended September 30,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

2,304

(419,080)

(17,386)

1,838

285,412

Share-based compensation

437,219

76,011

7,872

521,751

Amortization of intangible assets

from business acquisitions

-

115,577

-

115,577

17,023

Non-GAAP operating income (loss)

2,811,523

(227,492)

(9,514)

2,517

379,186

Net income (loss)

1,039

(403,584)

(17,193)

1,452

Share-based compensation

437,023

Tax impacts

-

(28,894)

-

(28,894)

(4,255)

Non-GAAP net income (loss)

2,307,258

(240,890)

(9,321)

2,057,047

302,971

Momo Inc.

Unaudited Condensed Segment Report

(All amounts in thousands,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

9,654

-

-

9,654

1,268,192

Value-added service

2,026,732

890,117

-

2,849

408,082

Mobile marketing

238,831

-

-

238,831

33,414

Mobile games

78,033

-

-

78,033

10,917

Other services

15,243

-

13,581

28,824

4,032

Total net revenues

11,423,493

890,117

13,581

12,191

1,637

Cost and expenses (vi):

Cost of revenues

(5,842,388)

(287,940)

(10,459)

(6,787)

(859,128)

Research and development

(591,678)

(211,165)

-

(802,843)

(112,322)

Sales and marketing

(1,141,571)

(817,823)

(6,401)

(1,795)

(275,025)

General and administrative

(448,480)

(837,824)

(28,375)

(1,679)

(183,930)

Total cost and expenses

(8,024,117)

(2,154,752)

(45,235)

(10,104)

(1,430,405)

Other operating income

180,831

-

21,366

202,197

28,288

Income (loss) from operations

3,207

(1,264,635)

(10,288)

2,284

322,520

Interest income

290,725

8,509

103

299,337

41,879

Interest expense

(58,421)

-

-

(58,421)

(8,173)

Impairment loss on long-term investments

(15,711)

-

-

(15,711)

(2,198)

Income (loss) before income tax

and share of income on equity

method investments

3,796,800

(1,256,126)

(10,185)

2,489

354,028

Income tax (expenses) benefits

(651,284)

21,187

-

(630,097)

(88,154)

Income (loss) before share of

income on equity method

investments

3,145,516

(1,234,939)

(10,185)

1,392

265,874

Share of income on equity method

investments

8,056

-

-

8,056

1,127

Net income (loss)

3,153,572

(1,448

267,001

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

First nine months

ended September 30,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

14,393

1,978

-

16,371

2,290

Research and development

76,675

52,923

-

129,598

18,131

Sales and marketing

129,686

13,159

-

142,845

19,985

General and administrative

150,586

793,649

7,725

951,960

133,184

Total cost and expenses

371,340

861,709

7,725

1,774

173,590

Momo Inc.

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

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

First nine months

endedSeptember 30,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

3,207

(1,635)

(10,288)

2,284

322,520

Share-based compensation

371,340

861,709

7,725

1,774

173,590

Amortization of intangible assets

from business acquisitions

-

113,417

-

113,417

15,869

Non-GAAP operating income (loss)

3,951,547

(289,509)

(2,563)

3,475

511,979

Net income (loss)

3,572

(1,939)

(10,185)

1,448

267,001

Share-based compensation

371,869

Tax impacts

-

(28,355)

-

(28,355)

(3,967)

Non-GAAP net income (loss)

3,524,912

(288,168)

(2,460)

3,284

452,493

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