Momo Announces Unaudited Financial Results for the Third Quarter of 2019

BEIJING,Nov. 26,2019 -- 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 2019.

ThirdQuarter of 2019 Highlights

Net revenues increased by 22% year over year to RMB4,451.6 million (US$622.8 million*) in the third quarter of 2019.

Net income attributable to Momo Inc. increased to RMB893.9 million (US$125.1 million) in the third quarter of 2019 from RMB579.5 million in the same period of 2018.

Non-GAAP net income attributable to Momo Inc. (note 1) increased to RMB1,088.1 million (US$152.2 million) in the third quarter of 2019,from RMB777.6 million in the same period of 2018.

Diluted net income per American Depositary Share ("ADS") was RMB4.04 (US$0.57) in the third quarter of 2019,compared to RMB2.69 in the same period of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB4.90 (US$0.69) in the third quarter of 2019,compared to RMB3.57 in the same period of 2018.

Monthly Active Users ("MAU") on Momo application were 114.1 million in September 2019,compared to 110.5 million in September 2018.

Total paying users of our live video service and value-added service,without double counting the overlap and including 4.5 million paying users of Tantan,were 13.4 million for the third quarter of 2019,compared to 12.5 million for the third quarter of 2018,which included 3.6 million paying users of Tantan.

* 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 RMB7.1477 to US$1.00,the effective noon buying rate for September 30,2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

First Nine Months of 2019 Highlights

Net revenues increased 29% year over year to RMB12,327.2 million (US$1,724.6million) for the first nine months of 2019.

Net incomeattributable to Momo Inc. was RMB1,915.0 million (US$267.9 million) for the first nine months of 2019,compared with RMB2,154.9 million during the same period of 2018.

Non-GAAP net income attributable to Momo Inc. (note 1)was RMB3,240.8 million (US$453.4 million) for the first nine months of 2019,574.6 million during the same period of 2018.

Dilutednet incomeper ADS was RMB8.76 (US$1.23) for the first nine months of 2019,compared with RMB10.16 during the same period of 2018.

Non-GAAP diluted net incomeper ADS (note 1)was RMB14.65 (US$2.05)for the first nine months of 2019,compared with RMB12.12 during the same period of 2018.

"The third quarter of 2019 was another robust quarter,"commented Yan Tang,Chairman and CEO of Momo. "We continued to deliver strong financial results both in terms of revenues and profitability. Moreover,we are also making solid progress with our product initiatives and sowing the seeds for future growth."

ThirdQuarter of 2019 Financial Results

Net revenues

Total net revenues were RMB4,451.6 million (US$622.8million) in the thirdquarter of 2019,an increase of 22% from RMB3,647.6 million in the thirdquarter of 2018.

Live video servicerevenueswere RMB3,275.4 million (US$458.2million) in the thirdquarter of 2019,an increase of 18% from RMB2,769.2 million during the same period of 2018,as a result of the successful strategy to apply different products and operational efforts to drive spending from different cohorts of users.

Value-addedservice revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,064.6 million (US$148.9million) in the thirdquarter of 2019,an increase of 86% from RMB573.1 million during the same period of 2018. 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 RMB81.9 million (US$11.5 million) in the thirdquarter of 2019,a decrease of 30% from RMB117.3 million during the same period of 2018. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers and the decrease in advertisement properties on Momo's platform.

Mobile games revenues were RMB15.8 million (US$2.2 million) in the thirdquarter of 2019,a decrease of 43% from RMB27.9 million in the thirdquarter of 2018. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Revenues from other services in the thirdquarter of 2018mainly consisted of revenues from Phanta City,a TV variety show co-produced by the Company,which did not generate revenues in the third quarter of 2019.

Net revenues from Momo segment increased from RMB3,325.1 million in the thirdquarter of 2018 to RMB4,138.9 million (US$579.1 million) in the thirdquarter of 2019,primarily driven by the significant increase in net revenues from live video service and value-added service. Net revenues from Tantan segment increased from RMB164.1 million in the thirdquarter of 2018 to RMB310.0 million (US$43.4million) in the thirdquarter of 2019,which was mainly due to the increase in the number of paying users of Tantan.

Cost and expenses

Cost and expenses were RMB3,487.9 million (US$488.0 million) in the thirdquarter of 2019,an increase of 16% from RMB3,009.1 million in the thirdquarter of 2018. The increase was primarily attributable to: (a) an increase in revenue sharing with broadcasters related to our live video service and virtual gift recipients; (b) an increase in marketing and promotional expenses to attract users on both Momo and Tantan platforms and promote our live video services; (c) an increase in personnel related costs as a result of the Company's rapidly expanding talent pool; (d) an increase in infrastructure-related spending,such as bandwidth costs and server depreciation costs,driven by more functions introduced on Momo's platform. The increase was partially offset by a decrease in production cost in connection with a television program.

Non-GAAP cost and expenses (note 1) were RMB3,284.0 million (US$459.5 million) in the thirdquarter of 2019,an increase of 17% from RMB2,801.6 million during the same period of 2018.

Incomefrom operations

Incomefrom operations was RMB993.1 million (US$138.9 million)in the thirdquarter of 2019,compared to RMB643.8 million during the same period of 2018. Incomefrom operations of Momo segment wasRMB1,227.2 million (US$171.7 million) in the thirdquarter of 2019,increasing from RMB943.9 million in the thirdquarter of 2018. Loss from operations of Tantan segment was RMB228.7 million (US$32.0 million) in the thirdquarter of 2019,compared to loss from operationsof RMB227.6 million in the thirdquarter of 2018.

Non-GAAP income from operations (note 1) was RMB1,196.9 million (US$167.5million) in the thirdquarter of 2019,compared to RMB851.3 million during the same period of 2018. Non-GAAPincomefrom operations of Momo segment wasRMB1,364.1 million (US$190.9 million)in the thirdquarter of 2019,increasing from RMB1,055.9 million in the thirdquarter of 2018. Non-GAAPlossfrom operations of Tantan segment was RMB164.4 million (US$23.0 million) in the thirdquarter of 2019,compared to non-GAAP loss from operations of RMB132.2 million in the thirdquarter of 2018.

Income tax expenses

Income tax expenses were RMB182.6million (US$25.5million) in the thirdquarter of 2019,increasing from RMB146.8 million in the thirdquarter of 2018. The increase was mainly because we generated higher profit in the thirdquarter of 2019.

Net income

Net incomewas RMB890.8 million (US$124.6 million) in the thirdquarter of 2019,compared toRMB571.9million during the same period of 2018. Net incomefromMomo segment was RMB1,110.2 million (US$155.3 million) in the thirdquarter of 2019,increasing fromRMB862.4million in the thirdquarter of 2018. Net loss from Tantan segment was RMB214.1 million (US$29.9 million) in the thirdquarter of 2019,compared tonet loss of RMB218.1 million in the thirdquarter of 2018.

Non-GAAP net income (note 1) was RMB1,084.9 million (US$151.8million) in the thirdquarter of 2019,compared to RMB770.0 million during the same period of 2018. Non-GAAPnet incomefrom Momo segment wasRMB1,247.2million(US$174.5 million) in the third quarter of 2019,increasing fromRMB974.4million in the thirdquarter of 2018. Non-GAAPnet lossof Tantan segment was RMB159.5 million (US$22.3 million) in the thirdquarter of 2019,compared tonon-GAAP net loss of RMB132.0 million in the thirdquarter of 2018.

Net income attributable to Momo Inc.

Net incomeattributable to Momo Inc. was RMB893.9 million (US$125.1 million) in the thirdquarter of 2019,compared toRMB579.5million during the same period of 2018.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB1,088.1 million (US$152.2million) in the thirdquarter of 2019,compared to RMB777.6 million during the same period of 2018.

Net incomeper ADS

Diluted net incomeper ADS was RMB4.04 (US$0.57) in the thirdquarter of 2019,compared toRMB2.69in the thirdquarter of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB4.90 (US$0.69) in the thirdquarter of 2019,compared to RMB3.57 in the thirdquarter of 2018.

Cash and cash flow

As of September 30,2019,Momo's cash,cash equivalents,term deposits and short-term investment totaled RMB13,669.9 million (US$1,912.5million),compared to RMB11,292.6 million as of December 31,2018. Net cash provided by operating activities in the thirdquarter of 2019 was RMB1,175.9 million (US$164.5million),compared to RMB346.5 million in the thirdquarter of 2018.

First Nine Months of 2019Financial Results

Net revenues for the first nine months of 2019 were RMB12,724.6 million),an increase of 29% from RMB9,564.5 million in the same period of 2018,primarily driven by the significant increase in net revenues from live video service and value-addedservice.

Net income attributable to Momo Inc. was RMB1,compared to RMB2,574.6 million during the same period of 2018.

Dilutednet incomeper ADS was RMB8.76 (US$1.23) during the first nine months of 2019,compared to RMB10.16 in the same period of 2018.

Non-GAAP diluted net incomeper ADS (note 1) was RMB14.65 (US$2.05) during the first nine months of 2019,compared to RMB12.12inthe same period of 2018.

Net cash provided by operating activities was RMB3,773.8 million (US$528.0 million) during the first nine months of 2019,164.4 millioninthe same period of 2018.

Business Outlook

For the fourth quarter of 2019,the Company expects total net revenues to be between RMB4.52 billion to RMB4.62 billion,representing an increase of 18% to 20% year over year. These estimates reflect the Company's current and preliminary view,which is 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 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,November 26,at8:00 a.m.U.S. Eastern Time (9:00 p.m. Beijing/Hong KongTime on November 26,2019).

Dial-in details for the earnings conference call are as follows:

International:

+65-6713-5090

U.S. Toll Free:

+1-866-519-4004

Hong Kong Toll Free:

800-906601

Mainland China:

4006-208038

Passcode:

Momo

Please dial in 15 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 8:00 a.m.U.S. Eastern Time,December 4,2019. The dial-in details for the replay are as follows:

International:

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

9698746

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

Momo is a leading mobile social networking platform in China. Momo connects people in a personal and lively way through a revolutionary mobile-based social networking platform. With powerful and precise location-based features,Momo enables users to connect with each other and expand relationships from online to offline. Momo's platform includes the Momo mobile application and a variety of related features,functionalities,tools and services that it provides to users,customers and platform partners. Leveraging its social interest graph engine and analysis of user behavior data,Momo is able to provide users a customized experience based on their social preferences and needs. Momo users can maintain and strengthen their relationships through private and group communication tools,content creation and sharing functions,as well as the offline social activities promoted on Momo's platform. Momo users are also able to enjoy live video on our platform. In addition,in May 2018,Momo completed its acquisition of Tantan,a leading social and dating app for the younger generation. Tantan,whose primary users consist of young Chinese singles,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 fourth quarter of 2019.

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 third quarter of 2019 are preliminary,unaudited and subject to audit adjustment. In addition,we may not meet our financial outlook for the fourth quarter of 2019 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,and our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers. 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

ended September 30

ended September 30

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Net revenues:

Live video service

2,769,231

3,275,354

458,239

7,750,269

9,064,654

1,268,192

Value-added service

573,148

1,606

148,944

1,160,735

2,916,849

408,082

Mobile marketing

117,336

81,894

11,457

378,178

238,831

33,414

Mobile games

27,880

15,785

2,208

104,890

78,033

10,917

Other services

160,002

14,003

1,960

170,432

28,824

4,032

Total net revenues

3,647,597

4,451,642

622,808

9,564,504

12,327,191

1,724,637

Cost and expenses:

Cost of revenues

(2,031,652)

(2,203,350)

(308,260)

(5,083,632)

(6,140,787)

(859,128)

Research and development

(245,661)

(301,754)

(42,217)

(517,144)

(802,843)

(112,322)

Sales and marketing

(563,564)

(771,338)

(107,914)

(1,193,994)

(1,965,795)

(275,025)

General and administrative

(168,189)

(211,423)

(29,579)

(405,323)

(1,314,679)

(183,930)

Total cost and expenses

(3,009,066)

(3,487,865)

(487,970)

(7,200,093)

(10,224,104)

(1,430,405)

Other operating income

5,298

29,342

4,105

112,277

202,197

28,288

Income from operations

643,829

993,119

138,943

2,476,688

2,305,284

322,520

Interest income

82,728

105,384

14,744

183,180

299,337

41,879

Interest expense

(24,421)

(20,117)

(2,814)

(36,857)

(58,421)

(8,173)

Impairment loss on long-term

investments

-

(11,211)

(1,568)

-

(15,711)

(2,198)

Income before income tax

and share of income on

equity method

investments

702,136

1,067,175

149,305

2,623,011

2,530,489

354,028

Income tax expenses

(146,776)

(182,578)

(25,544)

(516,310)

(630,097)

(88,154)

Income before share of

income on equity method

investments

555,360

884,597

123,761

2,106,701

1,900,392

265,874

Share of income on equity

method investments

16,524

6,185

865

35,439

8,056

1,127

Net income

571,884

890,782

124,626

2,142,140

1,908,448

267,001

Less: net loss attributable to

non-controlling interest

(7,655)

(3,115)

(436)

(12,798)

(6,543)

(915)

Net income attributable to

Momo Inc.

579,539

893,897

125,062

2,154,938

1,914,991

267,916

Net incomeper share

attributable to ordinary

shareholders

Basic

1.42

2.15

0.30

5.32

4.62

0.65

Diluted

1.34

2.02

0.28

5.08

4.38

0.61

Weighted average shares

used in calculating net

incomeper ordinary share

Basic

409,378,536

415,615,139

415,139

404,744,362

414,790,186

414,186

Diluted

445,871,236

452,571,862

452,862

428,148,904

450,470,088

450,088

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

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Net income

571,001

Other comprehensive income,net

of tax

Foreign currency translation

adjustment

125,760

62,771

8,782

193,482

30,689

4,294

Comprehensiveincome

697,644

953,553

133,408

2,335,622

1,939,137

271,295

Less: comprehensive (loss)

income attributed to the non-

controlling interest

(6,041)

3,519

492

(10,078)

556

78

Comprehensive income

attributable to Momo Inc.

703,685

950,034

132,916

2,345,700

1,938,581

271,217

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

September 30

September 30

2018

2019

2019

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

2,468,034

2,870,923

401,657

Term deposits

8,824,610

10,759,505,240

Short-term investment

-

40,000

5,596

Accounts receivable,net of allowance for doubtful accounts of RMB

nil and RMB12,209 as of December 31,2018 andSeptember 30,

2019,respectively

719,606

375,575

52,545

Amounts due from a related party

-

1,606

225

Prepaid expenses and other current assets

620,979

649,563

90,877

Total current assets

12,633,229

14,696,670

2,056,140

Property and equipment,net

387,532

367,285

51,385

Intangible assets

1,036,986

953,901

133,456

Rental deposits

24,192

24,553

3,435

Long-term investments

447,465

505,810

70,765

Deferred tax assets

57,786

34,482

4,824

Other non-current assets

71,519

15,072

2,109

Right-of-use assets,net[1]

-

216,078

30,230

Goodwill

4,306,829

4,460

626,280

Total assets

18,538

21,290,311

2,978,624

Liabilities and equity

Current liabilities

Accounts payable

718,362

618,109

86,475

Deferred revenue

441,892

496,691

69,490

Accrued expenses and other current liabilities

846,710

911,963

127,588

Amount due to related parties

82,948

29,371

4,109

Income tax payable

137,090

114,039

15,955

Lease liabilities due within one year1

-

135,304

18,930

Deferred consideration in connection with business acquisitions

469,274

86,599

12,116

Total current liabilities

2,276

2,392,076

334,663

Deferred tax liabilities

259,247

238,475

33,364

Convertible senior notes

4,877,116

5,082,352

711,047

Share-based compensation liability

86,767

925,068

129,422

Lease liabilities1

-

79,723

11,154

Other non-current liabilities

23,273

29,294

4,098

Total liabilities

7,942,679

8,746,988

1,223,748

Shareholder's equity(i)

11,022,859

12,543,323

1,754,876

Total liabilities and shareholder's equity

18,624

(i): As ofSeptember 30,the number of ordinary shares issued and outstanding was 416,748,172.

[1] On January 1,the Company adopted ASU 2016-02,the new lease standard,using the modified retrospective basis and did not restate comparative periods.

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

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Cash flows from operating activities:

Net income

571,884

890,782

124,626

2,140

1,448

267,001

Adjustments to reconcile net incometo net cash provided

by operating activities:

Depreciation of property and equipment

39,412

50,216

7,025

105,994

146,852

20,545

Amortization of intangible assets

38,930

40,100

5,610

53,508

117,715

16,469

Share-based compensation

169,959

165,163

23,107

382,800

1,240,774

173,590

Share of income on equity method investments

(16,524)

(6,185)

(865)

(35,439)

(8,056)

(1,127)

Impairment loss on long-term investments

-

11,211

1,568

-

15,711

2,198

Loss on disposal of property and equipment

(1,241)

(64)

(9)

(1,239)

(398)

(56)

Provision of allowance for doubtful accounts

-

2,900

406

(585)

12,209

1,708

Changes in operating assets and liabilities:

Accounts receivable

(420,015)

(103,290)

(14,451)

(355,671)

331,836

46,426

Prepaid expenses and other current assets

(171,185)

(24,378)

(3,411)

(81,494)

(23,182)

(3,243)

Amount due from related parties

13,379

(1,335)

(187)

33,407

(1,606)

(225)

Rental deposits

(577)

2,033

284

245

(362)

(51)

Deferred tax assets

342

(2,803)

(392)

28,913

23,304

3,260

Other non-current assets

(6,670)

(33,254)

(4,652)

(44,864)

(20,611)

(2,884)

Accounts payable

159,002

(133,863)

(18,728)

252,700

(45,775)

(6,404)

Income tax payable

(16,727)

(16,064)

(2,247)

(119,888)

(23,052)

(3,225)

Deferred revenue

32,601

84,711

11,852

(26,719)

54,789

7,665

Accrued expenses and other current liabilities

(52,348)

278,181

38,919

(183,201)

136,558

19,105

Amount due to related parties

17,256

(10,550)

(1,476)

17,675

(53,267)

(7,452)

Deferred tax liability

(9,732)

(10,025)

(1,403)

(13,376)

(35,322)

(4,942)

Other non-current liabilities

(1,238)

(7,556)

(1,057)

9,453

(2,762)

(386)

Net cash provided byoperating activities

346,508

1,175,930

164,519

2,164,359

3,773,803

527,972

Cash flows from investing activities:

Purchase of property and equipment

(71,399)

(59,933)

(8,385)

(161,600)

(154,413)

(21,603)

Proceeds from disposal of property and equipment

2,200

294

41

2,210

804

112

Payment for long-term investments

(8,000)

(19,000)

(2,658)

(62,125)

(43,000)

(6,016)

Prepayment of long-term investments

-

-

-

(47,000)

(15,099)

Payment for business acquisition,net of cash acquired

-

(759)

(106)

(3,278,209)

(379,507)

(53,095)

Purchase of term deposits

(7,418,072)

(4,786,130)

(669,604)

(14,987,302)

(14,501,135)

(2,028,783)

Cash received on maturity of term deposits

2,100,000

4,785,400

669,502

9,322,393

12,650,430

1,860

Payment for short-term investments

(354,200)

(30,000)

(4,197)

(354,200)

(280,000)

(39,173)

Cash received from sales of short-term investment

239,200

80,000

11,192

249,700

240,000

33,577

Net cash used in investing activities

(5,510,271)

(30,128)

(4,215)

(9,316,133)

(2,481,821)

(347,220)

Cash flows from financing activities:

Proceeds from exercise of options

2,820

71

10

5,312

186

26

Deferred payment of purchase of property and equipment

-

(16,893)

(2,363)

(8,405)

(16,987)

(2,377)

Dividends payment

-

-

-

-

(877,346)

(122,745)

Proceeds from bank loan

-

-

-

1,913,190

-

-

Repayment of bank loan

(2,041,680)

-

-

(2,680)

-

-

Proceeds from issuance of Convertible Senior Notes,net

of issuance cost of RMB113,673

4,820,387

-

-

4,387

-

-

Net cash provided by (used in) financing activities

2,781,527

(16,822)

(2,353)

4,688,804

(894,147)

(125,096)

Effect of exchange rate changes

14,450

6,200

867

22,736

5,054

710

Net (decrease) increase in cash,and

restricted cash

(2,367,786)

1,135,180

158,818

(2,440,234)

402,889

56,366

Cash,and restricted cash at beginning of

period

4,389,746

1,735,743

242,839

4,462,194

2,034

345,291

Cash,and restricted cashat end of period

2,021,960

2,657

2,657

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 30,2018

endedSeptember 30,2019

endedSeptember 30,2019

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

(2,652)

18,183

5,880

-

(2,007,589)

(2,350)

18,751

6,738

-

(2,177,861)

(308,260)

2,623

943

-

(304,694)

Research and

development

(245,661)

2,309

45,919

-

(197,433)

(301,754)

2,381

45,345

-

(254,028)

(42,217)

333

6,344

-

(35,540)

Sales and marketing

(563,564)

17,004

43,760

-

(502,800)

(771,338)

17,535

52,100

-

(701,703)

(107,914)

2,453

7,289

-

(98,172)

General and

administrative

(168,189)

-

74,400

-

(93,789)

(211,423)

-

60,980

-

(150,443)

(29,579)

-

8,531

-

(21,048)

Cost and operating

expenses

(3,066)

37,496

169,959

-

(2,801,611)

(3,865)

38,667

165,163

-

(3,284,035)

(487,970)

5,409

23,107

-

(459,454)

Income from operations

643,829

37,496

169,959

-

851,284

993,119

38,667

165,163

-

1,196,949

138,943

5,409

23,107

-

167,459

Net income attributable to

Momo Inc.

579,539

37,959

(9,374)

777,620

893,897

38,163

(9,667)

1,088,060

125,062

5,107

(1,352)

152,226

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 30,2019

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

(5,632)

23,865

16,163

-

(5,043,604)

(6,787)

54,999

16,371

-

(6,069,417)

(859,128)

7,695

2,290

-

(849,143)

Research and

development

(517,144)

3,030

105,591

-

(408,523)

(802,843)

6,985

129,598

-

(666,260)

(112,322)

978

18,131

-

(93,213)

Sales and marketing

(1,994)

22,316

99,220

-

(1,072,458)

(1,795)

51,433

142,845

-

(1,771,517)

(275,025)

7,196

19,985

-

(247,844)

General and

administrative

(405,323)

-

161,826

-

(243,497)

(1,679)

-

951,960

-

(362,719)

(183,930)

-

133,184

-

(50,746)

Cost and operating

expenses

(7,093)

49,211

382,800

-

(6,768,082)

(10,104)

113,417

1,774

-

(8,869,913)

(1,405)

15,869

173,590

-

(1,946)

Income from

operations

2,688

49,211

382,800

-

2,699

2,284

113,417

1,774

-

3,659,475

322,520

15,869

173,590

-

511,979

Net income attributable

to Momo Inc.

2,938

49,800

(12,301)

2,574,648

1,991

113,774

(28,355)

3,827

267,916

15,590

(3,967)

453,408

(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 Segment Report

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

Three months

ended September 30,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

3,354

-

-

3,239

Value-added service

754,629

309,977

-

1,944

Mobile marketing

81,894

-

-

81,457

Mobile games

15,785

-

-

15,208

Other services

11,234

-

2,769

14,960

Total net revenues

4,138,896

309,977

2,769

4,808

Cost and expenses (iii):

Cost of revenues

(2,101,678)

(99,722)

(1,950)

(2,260)

Research and development

(225,539)

(76,215)

-

(301,217)

Sales and marketing

(422,034)

(349,274)

(30)

(771,914)

General and administrative

(191,832)

(13,425)

(6,166)

(211,579)

Total cost and expenses

(2,941,083)

(538,636)

(8,146)

(3,970)

Other operating income

29,342

-

-

29,105

Income (loss) from operations

1,227,155

(228,659)

(5,377)

993,943

Interest income

102,749

2,594

41

105,744

Interest expense

(20,117)

-

-

(20,814)

Impairment loss on long-term

investments

(11,211)

-

-

(11,568)

Income (loss) before income tax

and share of income on equity

method investments

1,298,576

(226,065)

(5,336)

1,305

Income tax (expenses) benefits

(194,580)

12,002

-

(182,544)

Income (loss) before share of

income on equity method

investments

1,103,996

(214,063)

(5,336)

884,761

Share of income on equity method

investments

6,185

-

-

6,185

865

Net income (loss)

1,110,181

(214,336)

890,626

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

Three months

endedSeptember 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

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 30,2019

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

165,107

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)

890,626

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 Segment Report

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

Three months

endedSeptember 30,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[2]

Net revenues:

Live video service

2,231

-

-

2,231

403,208

Value-added service

409,087

164,061

-

573,148

83,452

Mobile marketing

117,336

-

-

117,336

17,084

Mobile games

27,880

-

-

27,880

4,059

Other services

1,589

-

158,413

160,002

23,297

Total net revenues

3,325,123

164,061

158,413

3,597

531,100

Cost and expenses (iv):

Cost of revenues

(1,743,108)

(73,369)

(215,175)

(2,652)

(295,814)

Research and development

(168,147)

(77,514)

-

(245,661)

(35,769)

Sales and marketing

(350,985)

(201,172)

(11,407)

(563,564)

(82,056)

General and administrative

(124,281)

(39,648)

(4,260)

(168,189)

(24,489)

Total cost and expenses

(2,386,521)

(391,703)

(230,842)

(3,066)

(438,128)

Other operating income

5,271

27

-

5,298

771

Income (loss) from operations

943,873

(227,615)

(72,429)

643,829

93,743

Interest income

82,528

172

28

82,728

12,045

Interest expense

(24,421)

-

-

(24,421)

(3,556)

Income (loss) before income tax and share

of income on equity method investments

1,001,980

(227,443)

(72,401)

702,136

102,232

Income tax (expenses) benefits

(156,150)

9,374

-

(146,776)

(21,371)

Income (loss) before share of income on

equity method investments

845,830

(218,069)

(72,401)

555,360

80,861

Share of income on equity method investments

16,524

-

-

16,524

2,406

Net income (loss)

862,354

(218,401)

571,884

83,267

[2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.868 to US$1.00,the effective noon buying rate for September 28,

2018 as set forth in the H.10 statistical release of the Federal Reserve Board.

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

Three months

endedSeptember 30,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

3,777

2,103

-

5,880

856

Research and development

24,826

21,093

-

45,919

6,686

Sales and marketing

39,595

4,165

-

43,760

6,372

General and administrative

43,812

30,588

-

74,400

10,833

Total cost and expenses

112,010

57,949

-

169,959

24,747

Momo Inc.

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

(All amounts in thousands,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

943,873

(227,615)

(72,429)

643,829

93,743

Share-based compensation

112,010

57,949

-

169,959

24,747

Amortization of intangible assets from

business acquisitions

-

37,496

-

37,496

5,460

Non-GAAP operating income (loss)

1,055,883

(132,170)

(72,429)

851,284

123,950

Net income (loss)

862,354

(218,069)

(72,401)

571,884

83,267

Share-based compensation

112,460

Tax impacts

-

(9,374)

-

(9,374)

(1,365)

Non-GAAP net income (loss)

974,364

(131,998)

(72,401)

769,965

112,109

Momo Inc.

Unaudited Segment Report

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

First nine months

ended September 30,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

9,654

-

-

9,192

Value-added service

2,026,732

890,117

-

2,082

Mobile marketing

238,831

-

-

238,414

Mobile games

78,033

-

-

78,917

Other services

15,243

-

13,581

28,032

Total net revenues

11,423,493

890,117

13,581

12,637

Cost and expenses (v):

Cost of revenues

(5,842,388)

(287,940)

(10,459)

(6,128)

Research and development

(591,678)

(211,165)

-

(802,322)

Sales and marketing

(1,141,571)

(817,823)

(6,401)

(1,025)

General and administrative

(448,480)

(837,824)

(28,375)

(1,930)

Total cost and expenses

(8,024,117)

(2,752)

(45,235)

(10,405)

Other operating income

180,831

-

21,366

202,288

Income (loss) from operations

3,580,207

(1,264,635)

(10,288)

2,520

Interest income

290,725

8,509

103

299,879

Interest expense

(58,421)

-

-

(58,173)

Impairment loss on long-term investments

(15,711)

-

-

(15,198)

Income (loss) before income tax and share

of income on equity method investments

3,796,800

(1,256,126)

(10,185)

2,028

Income tax (expenses) benefits

(651,284)

21,187

-

(630,154)

Income (loss) before share of income on

equity method investments

3,145,516

(1,234,939)

(10,185)

1,874

Share of income on equity method investments

8,056

-

-

8,127

Net income (loss)

3,153,572

(1,001

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

First nine months

endedSeptember 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

1,590

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)

1,001

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

Momo Inc.

Unaudited Segment Report

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

First nine months

endedSeptember 30,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

7,269

-

-

7,269

1,128,461

Value-added service

965,705

195,030

-

1,735

169,006

Mobile marketing

378,178

-

-

378,178

55,064

Mobile games

104,890

-

-

104,890

15,272

Other services

4,095

-

166,337

170,432

24,815

Total net revenues

9,137

195,030

166,337

9,504

1,618

Cost and expenses (vi):

Cost of revenues

(4,612,322)

(92,100)

(379,210)

(5,632)

(740,191)

Research and development

(411,577)

(105,567)

-

(517,144)

(75,298)

Sales and marketing

(905,695)

(268,875)

(19,424)

(1,994)

(173,849)

General and administrative

(341,995)

(53,952)

(9,376)

(405,323)

(59,016)

Total cost and expenses

(6,271,589)

(520,494)

(408,010)

(7,093)

(1,048,354)

Other operating income

112,189

88

-

112,277

16,348

Income (loss) from operations

3,737

(325,376)

(241,673)

2,688

360,612

Interest income

182,889

236

55

183,180

26,671

Interest expense

(36,857)

-

-

(36,857)

(5,366)

Income (loss) before income tax and share

of income on equity method investments

3,189,769

(325,140)

(241,618)

2,011

381,917

Income tax (expenses) benefits

(528,612)

12,302

-

(516,310)

(75,176)

Income (loss) before share of income on

equity method investments

2,661,157

(312,838)

(241,701

306,741

Share of income on equity method

investments

35,439

-

-

35,439

5,160

Net income (loss)

2,596

(312,140

311,901

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

First nine months

endedSeptember 30,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

12,114

4,049

-

16,163

2,353

Research and development

65,744

39,847

-

105,591

15,374

Sales and marketing

91,286

7,934

-

99,220

14,447

General and administrative

121,169

40,657

-

161,826

23,562

Total cost and expenses

290,313

92,487

-

382,800

55,736

Momo Inc.

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

(All amounts in thousands,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

3,737

(325,376)

(241,673)

2,688

360,612

Share-based compensation

290,313

92,487

-

382,800

55,736

Amortization of intangible assets from

business acquisitions

-

49,211

-

49,211

7,165

Non-GAAP operating income (loss)

3,334,050

(183,678)

(241,699

423,513

Net income (loss)

2,596

(312,838)

(241,618)

2,140

311,901

Share-based compensation

290,165

Tax impacts

-

(12,301)

-

(12,301)

(1,791)

Non-GAAP net income (loss)

2,986,909

(183,441)

(241,561,850

373,011

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