Hello Group Inc. Announces Unaudited Financial Results for the First Quarter of 2023

BEIJING,June 6,2023 --Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"),a leading mobile social and entertainment platform in China,today announced its unaudited financial results for the first quarter of 2023.

First Quarter of 2023 Highlights

Net revenues decreased by 10.5% year over year to RMB2,818.9 million (US$410.5 million*) in the first quarter of 2023.

Net income attributable to Hello Group Inc. increased to RMB390.3 million (US$56.8 million) in the first quarter of 2023,from RMB289.9 million in the same period of 2022.

Non-GAAP net income attributable to Hello Group Inc. (note 1) increased to RMB471.9 million (US$68.7 million) in the first quarter of 2023,from RMB398.5 million in the same period of 2022.

Diluted net income per American Depositary Share ("ADS") was RMB1.96 (US$0.29) in the first quarter of 2023,compared to RMB1.42 in the same period of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB2.36 (US$0.34) in the first quarter of 2023,compared to RMB1.94 in the same period of 2022.

Monthly Active Users ("MAU") on Momo application were 106.5 million in March 2023,compared to 110.9 million in March 2022. MAU on Tantan application were 19.5 million in March 2023,compared to 25.6 million in March 2022.

For the Momo app total paying users was 7.8 million for the first quarter of 2023,compared to 8.6 million for the same period last year. Tantan had 1.6 million paying users for the first quarter of 2023 compared to 2.4 million from the year ago period.

"We delivered solid results in the first quarter,laying a good foundation for our business development in the post-pandemic era." Commented Yan Tang,Chairman and CEO of Hello Group. "I am happy to see that our team has been executing well against our strategic priorities across all business lines. Tantan delivered its first quarterly profit at the operating level,and the Momo cash cow business maintained its productivity thanks to our solid cost control,both of which contributed to the improvement of the Group's profitability."

First Quarter of 2023 Financial Results

Net revenues

Total net revenues were RMB2,818.9 million (US$410.5 million) in the first quarter of 2023,a decrease of 10.5% from RMB3,148.1 million in the first quarter of 2022.

Live video service revenues were RMB1,429.3 million (US$208.1 million) in the first quarter of 2023,a decrease of 11.2% from RMB1,608.7 million during the same period of 2022. The decrease was primarily attributable to pressure on Momo application caused by COVID related factors and products adjustments to meet regulatory changes in the second quarter of 2022.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,361.5 million (US$198.2 million) in the first quarter of 2023,a decrease of 8.2% from RMB1,483.4 million during the same period of 2022. The year over year decrease was primarily due to the negative impact of pandemic on traffic and users' propensity to pay,as well as channel investments reduction of Tantan. The decrease was partially offset by the rapid revenue growth from the new standalone apps.

Mobile marketing revenues were RMB21.1 million (US$3.1 million) in the first quarter of 2023,a decrease of 24.4% from RMB27.9 million during the same period of 2022. The decrease in mobile marketing revenues was due to the decreased demand from brand marketers.

Mobile games revenues were RMB3.7 million (US$0.5 million) in the first quarter of 2023,a decrease of 85.5% from RMB25.5 million in the first quarter of 2022. The decrease in mobile game revenues was mainly due to the Company's strategic decision to pivot away from game distribution business.

Net revenues from the Momo segment decreased from RMB2,798.9 million in the first quarter of 2022 to RMB2,510.1 million (US$365.5 million) in the first quarter of 2023,primarily due to the decrease in net revenues from live video service and value-added service on Momo application,partially offset by the growth of value-added service business from the new standalone apps. Net revenues from the Tantan segment decreased from RMB349.0 million in the first quarter of 2022 to RMB308.6 million (US$44.9 million) in the first quarter of 2023,due to the negative impact of COVID and the reduction in channel investments.

Cost and expenses

Cost and expenses were RMB2,419.1 million (US$352.2 million) in the first quarter of 2023,a decrease of 14.2% from RMB2,820.0 million in the first quarter of 2022. The decrease was primarily attributable to: (a) a decrease in sales and marketing expenses due to our initiatives to control cost and optimize Tantan's channel marketing strategy; (b) a decrease in revenue sharing with broadcasters related to Momo's core live video service and with virtual gift recipients for virtual gift service on the Momo application,which was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; (c) a decrease in salary expenses and share-based compensation expenses,due to our continuous optimization in personnel costs and the decreased fair value of newly granted share options.

Non-GAAP cost and expenses (note 1) were RMB2,337.4 million (US$340.4 million) in the first quarter of 2023,a decrease of 13.8% from RMB2,711.4 million during the same period of 2022.

Income from operations

Income from operations was RMB436.2 million (US$63.5 million) in the first quarter of 2023,compared to RMB352.0 million during the same period of 2022. Income from operations of the Momo segment was RMB435.0 million (US$63.3 million) in the first quarter of 2023,which decreased from RMB519.2 million in the first quarter of 2022. Income from operations of the Tantan segment was RMB5.2 million (US$0.8 million) in the first quarter of 2023,compared to loss from operations of RMB161.8 million in the first quarter of 2022.

Non-GAAP income from operations (note 1) was RMB517.8 million (US$75.4 million) in the first quarter of 2023,compared to RMB460.6 million during the same period of 2022. Non-GAAP income from operations of the Momo segment was RMB507.5 million (US$73.9 million) in the first quarter of 2023,which decreased from RMB624.0 million in the first quarter of 2022. Non-GAAP income from operations of the Tantan segment was RMB14.5 million (US$2.1 million) in the first quarter of 2023,compared to non-GAAP loss from operations of RMB157.9 million in the first quarter of 2022.

Income tax expenses

Income tax expenses were RMB122.6 million (US$17.9 million) in the first quarter of 2023,compared to RMB150.8 million in the first quarter of 2022. The decrease was primarily due to the lower profit in the first quarter of 2023 from Momo segment.

Net income

Net income was RMB389.5 million (US$56.7 million) in the first quarter of 2023,compared to RMB288.8 million during the same period of 2022. Net income from the Momo segment was RMB389.0 million (US$56.6 million) in the first quarter of 2023,compared to RMB456.5 million in the same period of 2022. Net income from the Tantan segment was RMB4.5 million (US$0.7 million) in the first quarter of 2023,compared to a net loss of RMB162.4 million in the first quarter of 2022.

Non-GAAP net income (note 1) was RMB471.1 million (US$68.6 million) in the first quarter of 2023,compared to RMB397.4 million during the same period of 2022. Non-GAAP net income from the Momo segment was RMB461.5 million (US$67.2 million) in the first quarter of 2023,which decreased from RMB561.3 million in the first quarter of 2022. Non-GAAP net income of the Tantan segment was RMB13.7 million (US$2.0 million) in the first quarter of 2023,compared to a non-GAAP net loss of RMB158.6 million in the first quarter of 2022.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB390.3 million (US$56.8 million) in the first quarter of 2023,compared to RMB289.9 million during the same period of 2022.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB471.9 million (US$68.7 million) in the first quarter of 2023,compared to RMB398.5 million during the same period of 2022.

Net income per ADS

Diluted net income per ADS was RMB1.96 (US$0.29) in the first quarter of 2023,compared to RMB1.42 in the first quarter of 2022.

Non-GAAP diluted net income per ADS (note 1) was RMB2.36 (US$0.34) in the first quarter of 2023,compared to RMB1.94 in the first quarter of 2022.

Cash and cash flow

As of March 31,2023,the Company's cash,cash equivalents,short-term deposits,long-term deposits,short-term investments,short-term restricted cash and long-term restricted cash totaled RMB13,352.2 million (US$1,944.2 million),compared to RMB13,398.8 million as of December 31,2022.

Net cash provided by operating activities in the first quarter of 2023 was RMB451.1 million (US$65.7 million),compared to RMB43.3 million in the first quarter of 2022.

Recent Development

Payment of a special cash dividend

In March 2023,Hello Group's board of directors declared a special cash dividend in the amount of US$0.72 per ADS,or US$0.36 per ordinary share. The cash dividend was paid in May 2023 to shareholders of record at the close of business on April 28,2023. The aggregate amount of cash dividends paid was US$136.6 million.

Execution of 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 over the next 24 months. As of June 6,the Company has repurchased 12.1 million ADSs for US$57.2 million on the open market under this program,at an average purchase price of US$4.72 per ADS.

Business Outlook

For the second quarter of 2023,the Company expects total net revenues to be between RMB3.0 billion to RMB3.1 billion,representing a decrease of 3.5% to 0.3% 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.

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 Hello Group Inc.,and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation. A limitation of using these non-GAAP financial measures is that share-based compensation has 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 Tuesday,at8:00 a.m.U.S. Eastern Time (8:00 p.m. Beijing/Hong KongTime on June 6,2023).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10030926-ahys7h.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 June 13,2023. The dial-in details for the replay are as follows:

U.S. / Canada: 1-855-883-1031

Hong Kong: 800-930-639

Passcode: 10030926

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 China's online social and entertainment space. ThroughMomo,Tantan and other properties within our product portfolio,we enable users to discover new relationships,expand their social connections and build meaningful interactions.Momois 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 inMay 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. We also operate a number of other applications to serve different social and entertainment demands from our users.

For investor and media inquiries,please contact:

Hello Group Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: ir@hellogroup.com

Christensen

In China

Mr. Eric Yuan

Phone: +86-10-5900-1548

E-mail: eric.yuan@christensencomms.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.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 second quarter of 2023,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 first quarter of 2023 are preliminary,unaudited and subject to audit adjustment. In addition,we may not meet our financial outlook for the second quarter of 2023 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 impact of the COVID-19 pandemic on the Company's business operations and the economy in China,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.

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates 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 RMB 6.8676 to US$1.00,the effective noon buying rate for March 31,2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Operations

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

Three months

Ended March 31

2022

2023

2023

RMB

RMB

US$

Net revenues:

Live video service

1,608,723

1,429,340

208,128

Value-added service

1,483,431

1,361,469

198,246

Mobile marketing

27,873

21,071

3,068

Mobile games

25,497

3,699

539

Other services

2,554

3,279

477

Total net revenues

3,148,078

2,818,858

410,458

Cost and expenses:

Cost of revenues

(1,821,388)

(1,664,188)

(242,325)

Research and development

(250,195)

(236,803)

(34,481)

Sales and marketing

(588,577)

(379,786)

(55,301)

General and administrative

(159,835)

(138,298)

(20,138)

Total cost and expenses

(2,819,995)

(2,419,075)

(352,245)

Other operating income (loss),net

23,931

36,394

5,299

Income from operations

352,014

436,177

63,512

Interest income

97,857

99,787

14,530

Interest expense

(19,334)

(10,415)

(1,517)

Other gain or loss,net

11,619

-

-

Income before income tax and share of income on equity method

investments

442,156

525,549

76,525

Income tax expenses

(150,774)

(122,613)

(17,854)

Income before share of income on equity method investments

291,382

402,936

58,671

Share of loss income on equity method investments

(2,600)

(13,475)

(1,962)

Net income

288,782

389,461

56,709

Less: net loss attributable to non-controlling interest

(1,103)

(828)

(121)

Net income attributable to the shareholders of Hello Group Inc.

289,885

390,289

56,830

Net income per share attributable to ordinary shareholders

Basic

0.73

1.04

0.15

Diluted

0.71

0.98

0.14

Weighted average shares used in calculating net income per ordinary share

Basic

395,240,339

377,017,080

377,080

Diluted

407,034,988

409,102,277

409,277

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

Ended March 31

2022

2023

2023

RMB

RMB

US$

Net income

288,709

Other comprehensive income,net of tax:

Foreign currency translation adjustment

11,050

2,181

318

Comprehensive income

299,832

391,642

57,027

Less: comprehensive loss attributed to the non-controlling

interest

(2,036)

(1,670)

(243)

Comprehensive income attributable to Hello Group

Inc.

301,868

393,312

57,270

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

March 31

March 31

2022

2023

2023

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

5,018,129

5,369,904

781,919

Short-term deposits

5,300,000

5,199,364

757,086

Restricted cash

97,706

97,537

14,202

Short-term investments

300,240

302,970

44,116

Accounts receivable,net of allowance for doubtful accounts of

RMB5,870 and RMB12,060 as of December 31,2022 and

March 31,respectively

188,711

182,925

26,636

Amounts due from related parties

55

-

-

Prepaid expenses and other current assets

819,706

1,269,201

184,810

Total current assets

11,724,547

12,421,901

1,808,769

Long-term deposits

2,600,000

2,000

334,906

Long-term restricted cash

82,766

82,411

12,000

Right-of-use assets,net

115,520

103,461

15,065

Property and equipment,net

172,984

151,414

22,048

Intangible assets,net

22,203

20,923

3,047

Rental deposits

20,737

20,737

3,020

Long-term investments

893,988

879,914

128,125

Other non-current assets

162,499

182,042

26,507

Deferred tax assets

34,343

33,902

4,937

Total assets

15,829,587

16,196,705

2,358,424

Liabilities and equity

Current liabilities

Accounts payable

617,022

628,075

91,456

Deferred revenue

484,775

475,893

69,295

Accrued expenses and other current liabilities

797,504

698,250

101,673

Amounts due to related parties

9,178

12,347

1,798

Lease liabilities due within one year

88,352

59,650

8,686

Income tax payable

68,765

62,372

9,082

Dividends payable

-

937,805

136,554

Deferred consideration in connection with business

acquisitions

26,483

26,369

3,840

Convertible senior notes-current

2,646,168

2,636,964

383,972

Total current liabilities

4,738,247

5,537,725

806,356

Deferred tax liabilities

22,011

56,185

8,181

Lease liabilities

33,281

38,486

5,604

Other non-current liabilities

105,410

106,322

15,482

Total liabilities

4,898,949

5,718

835,623

Shareholder's equity (i)

10,930,638

10,457,987

1,522,801

Total liabilities and shareholder's equity

15,424

(i): As of March 31,the number of ordinary shares outstanding was 377,655,265.

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

Three months

Ended March 31

2022

2023

2023

RMB

RMB

US$

Cash flows from operating activities:

Net income

288,782

389,461

56,709

Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation of property and equipment

27,979

22,844

3,326

Amortization of intangible assets

1,279

1,279

186

Share-based compensation

108,616

81,657

11,891

Share of loss on equity method investments

2,600

13,475

1,962

Gain on repurchase of convertible senior notes

(11,619)

-

-

Gain or loss on disposal of property and equipment

(40)

67

10

Provision of losses on receivable and other assets

2

9,182

1,337

Changes in operating assets and liabilities:

Accounts receivable

2,649

(548)

(80)

Prepaid expenses and other current assets

(43,978)

24,352

3,546

Amounts due from related parties

-

55

8

Rental deposits

(2,453)

-

-

Deferred tax assets

(1,576)

440

64

Other non-current assets

41,615

(7,485)

(1,090)

Accounts payable

(88,958)

20,379

2,967

Income tax payable

(4,574)

(6,393)

(931)

Deferred revenue

(42,614)

(8,811)

(1,283)

Accrued expenses and other current liabilities

(132,218)

(132,733)

(19,327)

Amount due to related parties

(157)

3,169

461

Deferred tax liabilities

(95,385)

34,120

4,968

Other non-current liabilities

(6,640)

6,564

956

Net cash provided by operating activities

43,310

451,074

65,680

Cash flows from investing activities:

Purchase of property and equipment

(21,647)

(10,234)

(1,490)

Purchase of short-term deposits

-

(497,342)

(72,419)

Cash received on maturity of short-term deposits

910,000

900,000

131,050

Cash received on investment income distribution

3,523

-

-

Purchase of long-term deposits

(1,150,000)

-

-

Other investing activities

4

738

107

Net cash (used in) provided by investing activities

(258,120)

393,162

57,248

Cash flows from financing activities:

Deferred payment for business acquisition

(5,563)

-

-

Proceeds from exercise of share options

31

3

-

Payment in relation to the share repurchase program

-

(3,237)

(471)

Repurchase of subsidiary's share options

(4,427)

(1,539)

(224)

Payment for redemption of convertible bonds

(110,007)

-

-

Prepayment in relation to redemption of convertible bonds

-

(478,786)

(69,717)

Net cash used in financing activities

(119,966)

(483,559)

(70,412)

Effect of exchange rate changes

(15,611)

(9,426)

(1,370)

Net (decrease) increase in cash and cash equivalents

(350,387)

351,251

51,146

Cash,cash equivalents and restricted cash at the beginning of period

5,647,034

5,198,601

756,975

Cash,cash equivalents and restricted cash at the end of period

5,296,647

5,549,852

808,121

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 March 31,2022

Ended March 31,2023

Ended March 31,2023

GAAP

Share-based

compensation

Non-GAAP

GAAP

Share-based

compensation

Non-GAAP

GAAP

Share-based

compensation

Non-GAAP

RMB

RMB

RMB

RMB

RMB

RMB

US$

US$

US$

Cost of revenues

(1,388)

3,078

(1,310)

(1,188)

1,635

(1,662,553)

(242,325)

238

(242,087)

Research and development

(250,195)

20,974

(229,221)

(236,803)

22,372

(214,431)

(34,481)

3,258

(31,223)

Sales and marketing

(588,577)

10,605

(577,972)

(379,786)

7,746

(372,040)

(55,301)

1,128

(54,173)

General and administrative

(159,835)

73,959

(85,876)

(138,298)

49,904

(88,394)

(20,138)

7,267

(12,871)

Cost and operating expenses

(2,995)

108,616

(2,711,379)

(2,075)

81,657

(2,337,418)

(352,245)

11,891

(340,354)

Income from operations

352,014

108,616

460,630

436,177

81,657

517,834

63,512

11,891

75,403

Net income attributable to Hello Group Inc.

289,885

108,616

398,501

390,289

81,657

471,946

56,830

11,891

68,721

Hello Group Inc.

Unaudited Condensed Segment Report

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

Three months

Ended March 31,2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

1,289,718

139,622

-

1,193,544

167,925

-

1,246

Mobile marketing

20,021

1,050

-

21,068

Mobile games

3,699

-

-

3,699

539

Other services

3,137

-

142

3,279

477

Total net revenues

2,510,119

308,597

142

2,458

Cost and expenses (ii):

Cost of revenues

(1,500,531)

(163,114)

(543)

(1,325)

Research and development

(169,308)

(67,495)

-

(236,481)

Sales and marketing

(312,640)

(65,852)

(1,294)

(379,301)

General and administrative

(128,078)

(7,746)

(2,474)

(138,110,557)

(304,207)

(4,311)

(2,245)

Other operating income,net

35,478

854

62

36,299

Income (loss) from operations

435,040

5,244

(4,107)

436,512

Interest income

99,531

204

52

99,530

Interest expense

(10,415)

-

-

(10,517)

Income (loss) before income tax and share of income on equity method

investments

524,156

5,448

(4,055)

525,525

Income tax expenses

(121,642)

(971)

-

(122,854)

Income (loss) before share of income on equity method investments

402,514

4,477

(4,055)

402,671

Share of loss on equity method investments

(13,475)

-

-

(13,962)

Net income (loss)

389,039

4,055)

389,709

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

Three months

Ended March 31,2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

1,618

17

-

1,635

238

Research and development

13,170

9,202

-

22,372

3,258

Sales and marketing

7,741

5

-

7,746

1,128

General and administrative

49,896

8

-

49,904

7,267

Total cost and expenses

72,425

9,232

-

81,657

11,891

Hello Group Inc.

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

(All amounts in thousands,2023

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

435,040

5,244

(4,107)

436,177

63,512

Share-based compensation

72,425

9,232

-

81,891

Non-GAAP income (loss) from

operations

507,465

14,476

(4,107)

517,834

75,403

Net income (loss)

389,039

4,477

(4,055)

389,709

Share-based compensation

72,891

Non-GAAP net income (loss)

461,464

13,709

(4,055)

471,118

68,600

Hello Group Inc.

Unaudited Condensed Segment Report

(All amounts in thousands,2022

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[1]

Net revenues:

Live video service

1,523

125,200

-

1,723

253,770

Value-added service

1,259,592

223,839

-

1,431

234,006

Mobile marketing

27,873

-

-

27,873

4,397

Mobile games

25,497

-

-

25,497

4,022

Other services

2,390

-

164

2,554

402

Total net revenues

2,798,875

349,039

164

3,078

496,597

Cost and expenses (iii):

Cost of revenues

(1,644,827)

(176,215)

(346)

(1,388)

(287,317)

Research and development

(188,299)

(61,896)

-

(250,195)

(39,467)

Sales and marketing

(317,680)

(270,147)

(750)

(588,577)

(92,846)

General and administrative

(147,196)

(8,076)

(4,563)

(159,835)

(25,213)

Total cost and expenses

(2,298,002)

(516,334)

(5,659)

(2,995)

(444,843)

Other operating income

18,346

5,544

41

23,931

3,775

Income (loss) from operations

519,219

(161,751)

(5,454)

352,014

55,529

Interest income

97,743

52

62

97,857

15,437

Interest expense

(19,334)

-

-

(19,334)

(3,050)

Other gain or loss,619

-

-

11,619

1,833

Income (loss) before income tax and share of income on equity method

investments

609,247

(161,699)

(5,392)

442,156

69,749

Income tax expenses

(150,105)

(669)

-

(150,774)

(23,784)

Income (loss) before share of income on equity method investments

459,142

(162,368)

(5,392)

291,382

45,965

Share of loss on equity method investments

(2,600)

-

-

(2,600)

(410)

Net income (loss)

456,542

(162,392)

288,782

45,555

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

Three months

Ended March 31,2022

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

1,847

1,231

-

3,078

486

Research and development

18,453

2,521

-

20,974

3,309

Sales and marketing

10,590

15

-

10,605

1,673

General and administrative

73,913

46

-

73,959

11,667

Total cost and expenses

104,803

3,813

-

108,616

17,135

[1] All translations from RMB to U.S. dollars are made at a rate of RMB6.3393 to US$1.00,2022 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,2022

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

519,219

(161,751)

(5,454)

352,014

55,529

Share-based compensation

104,803

3,813

-

108,616

17,135

Non-GAAP income (loss) from

operations

624,022

(157,938)

(5,454)

460,630

72,664

Net income (loss)

456,542

(162,368)

(5,392)

288,782

45,555

Share-based compensation

104,135

Non-GAAP net income (loss)

561,345

(158,555)

(5,392)

397,398

62,690