Momo Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2019

BEIJING,March 19,2020 -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"),a leading mobile social networking platform in China,today announced its unaudited financial results for the fourth quarter and the full year ended December 31,2019.

FourthQuarter of 2019 Highlights

Net revenues increased by 22% year over year to RMB4,687.9 million (US$673.4 million*) in the fourth quarter of 2019.

Net income attributable to Momo Inc. increased to RMB1,055.9 million (US$151.7 million) in the fourth quarter of 2019 from RMB660.8 million in the same period of 2018.

Non-GAAP net income attributable to Momo Inc. (note 1) increased to RMB1,252.5 million (US$179.9 million) in the fourth quarter of 2019,from RMB887.4 million in the same period of 2018.

Diluted net income per American Depositary Share ("ADS") was RMB4.74 (US$0.68) in the fourth quarter of 2019,compared to RMB3.04 in the same period of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB5.61 (US$0.81) in the fourth quarter of 2019,compared to RMB4.05 in the same period of 2018.

Monthly Active Users ("MAU") on Momo application were 114.5 million in December 2019,compared to 113.3 million in December 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 13.8 million for the fourth quarter of 2019,compared to 13.0 million for the fourth quarter of 2018,which included 3.9 million paying users of Tantan.

Full Year 2019 Highlights

Net revenues increased 27% year over year to RMB17,015.1 million (US$2,444.1million) for the full year of 2019.

Net incomeattributable to Momo Inc. was RMB2,970.9 million (US$426.7 million) for the full year of 2019,compared with RMB2,815.8 million for 2018.

Non-GAAP net income attributable to Momo Inc. (note 1)was RMB4,493.3 million (US$645.4 million) for the full year of 2019,compared with RMB3,462.1 million for 2018.

Dilutednet incomeper ADS was RMB13.52 (US$1.94) for the full year of 2019,compared with RMB13.18 for 2018.

Non-GAAP diluted net incomeper ADS (note 1)was RMB20.26 (US$2.91)for the full year of 2019,compared with RMB16.17 for 2018.

* 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 RMB6.9618 to US$1.00,the effective noon buying rate for December 31,2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

"2019 was a fruitful year,with total net revenue up by 27%,net income up by 6% and Non-GAAP net income up by 30%. The strong financial performance is a testament of the competence of our team,"commented Yan Tang,Chairman and CEO of Momo. "Looking into the year 2020,we are going to continue to focus on enhancing user experience and drive product innovations in order to capture the many growth opportunities ahead of us."

FourthQuarter of 2019 Financial Results

Net revenues

Total net revenues were RMB4,687.9 million (US$673.4million) in the fourth quarter of 2019,an increase of 22% from RMB3,843.9 million in the fourth quarter of 2018.

Live video servicerevenueswere RMB3,383.5 million (US$486.0million) in the fourth quarter of 2019,an increase of 14% from RMB2,959.2 million during the same period of 2018,as a result of the effective growth strategy to apply different products and operational efforts for different cohorts of users.

Value-addedservice revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,189.1 million (US$170.8million) in the fourth quarter of 2019,an increase of 65% from RMB722.4 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 RMB93.0 million (US$13.4 million) in the fourth quarter of 2019,a decrease of 24% from RMB122.1 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 RMB14.4 million (US$2.1 million) in the fourth quarter of 2019,a decrease of 43% from RMB25.5 million in the fourth quarter of 2018. 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 increased from RMB3,609.3 million in the fourth quarter of 2018 to RMB4,317.3 million (US$620.1 million) in the fourth quarter 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 RMB223.0 million in the fourth quarter of 2018 to RMB369.8 million (US$53.1million) in the fourth quarter of 2019,which was mainly due to the increase in the number of paying users of Tantan.

Cost and expenses

Cost and expenses were RMB3,581.1 million (US$514.4 million) in the fourth quarter of 2019,an increase of 12% from RMB3,195.7 million in the fourth quarter 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 to promote our live video services; (c) 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 RMB3,374.9 million (US$484.8 million) in the fourth quarter of 2019,959.6 million during the same period of 2018.

Other operating income

Other operating income was RMB142.6 million (US$20.5 million)in the fourthquarter of 2019,an increase from RMB141.4million during the fourthquarter of 2018. The other operating income mainly consisted of government incentives.

Incomefrom operations

Incomefrom operations was RMB1,249.4 million (US$179.5 million)in the fourth quarter of 2019,compared to RMB789.6 million during the same period of 2018. Incomefrom operations of Momo segment wasRMB1,458.5 million (US$209.5 million) in the fourth quarter of 2019,increasing from RMB1,092.6 million in the fourth quarter of 2018. Loss from operations of Tantan segment was RMB202.7 million (US$29.1 million) in the fourth quarter of 2019,compared to loss from operationsof RMB219.9 million in the fourth quarter of 2018.

Non-GAAP income from operations (note 1) was RMB1,455.7 million (US$209.1million) in the fourth quarter of 2019,compared to RMB1,025.7 million during the same period of 2018. Non-GAAPincomefrom operations of Momo segment wasRMB1,593.9 million (US$229.0 million)in the fourth quarter of 2019,200.8 million in the fourth quarter of 2018. Non-GAAPlossfrom operations of Tantan segment was RMB135.0 million (US$19.4 million) in the fourth quarter of 2019,compared to non-GAAP loss from operations of RMB92.6 million in the fourth quarter of 2018.

Income tax expenses

Income tax expenses were RMB253.7million (US$36.4million) in the fourth quarter of 2019,increasing from RMB183.3 million in the fourth quarter of 2018. The increase was mainly because we generated higher profit in the fourth quarter of 2019.

Net income

Net incomewas RMB1,052.3 million (US$151.2 million) in the fourth quarter of 2019,compared toRMB646.4million during the same period of 2018. Net incomefromMomo segment was RMB1,246.9 million (US$179.1 million) in the fourth quarter of 2019,increasing fromRMB940.5million in the fourth quarter of 2018. Net loss from Tantan segment was RMB188.2 million (US$27.0 million) in the fourth quarter of 2019,compared tonet loss of RMB206.4 million in the fourth quarter of 2018.

Non-GAAP net income (note 1) was RMB1,248.9 million (US$179.4million) in the fourth quarter of 2019,compared to RMB873.0 million during the same period of 2018. Non-GAAPnet incomefrom Momo segment wasRMB1,382.3million(US$198.6 million) in the fourthquarter of 2019,increasing fromRMB1,048.7million in the fourth quarter of 2018. Non-GAAPnet lossof Tantan segment was RMB130.2 million (US$18.7 million) in the fourth quarter of 2019,compared tonon-GAAP net loss of RMB88.5 million in the fourth quarter of 2018.

Net income attributable to Momo Inc.

Net incomeattributable to Momo Inc. was RMB1,055.9 million (US$151.7 million) in the fourth quarter of 2019,compared toRMB660.8million during the same period of 2018.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB1,252.5 million (US$179.9million) in the fourth quarter of 2019,compared to RMB887.4 million during the same period of 2018.

Net incomeper ADS

Diluted net incomeper ADS was RMB4.74 (US$0.68) in the fourth quarter of 2019,compared toRMB3.04in the fourth quarter of 2018.

Non-GAAP diluted net income per ADS (note 1) was RMB5.61 (US$0.81) in the fourth quarter of 2019,compared to RMB4.05 in the fourth quarter of 2018.

Cash and cash flow

As of December 31,2019,Momo's cash,cash equivalents and term deposits totaled RMB14,925.3 million (US$2,143.9million),compared to RMB11,292.6 million as of December 31,2018. Net cash provided by operating activities in the fourth quarter of 2019 was RMB1,675.1 million (US$240.6million),163.4 million in the fourth quarter of 2018.

Full Year2019Financial Results

Net revenues for the full year of 2019 were RMB17,444.1 million),an increase of 27% from RMB13,408.4 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 RMB2,compared to RMB2,815.8 million during the same period of 2018.

Non-GAAP net income attributable to Momo Inc. (note 1)was RMB4,compared to RMB3,462.1 million during the same period of 2018.

Dilutednet incomeper ADS was RMB13.52 (US$1.94) during the full year of 2019,compared to RMB13.18 in the same period of 2018.

Non-GAAP diluted net incomeper ADS (note 1) was RMB20.26 (US$2.91) during the full year of 2019,compared to RMB16.17inthe same period of 2018.

Net cash provided by operating activities was RMB5,448.9 million (US$782.7 million) during the full year of 2019,327.7 million in the same period of 2018.

Recent Development - Declaration of Special Cash Dividend

Momo's board of directors has declared a special cash dividend in the amount of US$0.76 per ADS,or US$0.38 per ordinary share. The cash dividend will be paid on April 30,2020 to shareholders of record at the close of business on April 8,2020. The ex-dividend date will be April 7,2020. The aggregate amount of cash dividends to be paid is approximately US$161 million,which will be funded by surplus cash on the Company's balance sheet.

Business Outlook

For the firstquarter of 2020,the Company expects total net revenues to be between RMB3.45 billion to RMB3.55 billion,representing a decrease of 7.3% to 4.6% year over year. This forecast considers the potential impact of the COVID-19 outbreak and reflects the Company's current and preliminary views on the market and operational conditions,which are subject to change,particularly as to the potential impact of the COVID-19 on the economy in China.

Note 1: Non-GAAP measures

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

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

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

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

Conference Call

Momo's management will host an earnings conference call on Thursday,2020,at8:00 a.m.U.S. Eastern Time (8:00 p.m. Beijing/Hong KongTime on March 19,2020).

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,March 26,2020. The dial-in details for the replay are as follows:

International:

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

3264508

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 firstquarter of 2020.

Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events,many of which,by their nature,are inherently uncertain and outside of our control. Our actual results and other circumstances may differ,possibly materially,from the anticipated results and events indicated in these forward-looking statements. Announced results for the fourth quarter and full year of 2019 are preliminary,unaudited and subject to audit adjustment. In addition,we may not meet our financial outlook for the first quarter of 2020 and may be unable to grow our business in the manner planned. We may also modifyour strategy for growth. In addition,there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate,including those relating to our ability to retain and grow our user base,our ability to attract and retain sufficiently trained professionals to support our operations,our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers,and the impact of the COVID-19 to Momo's business operations and the economy in China.For additional information on these and other important factors that could adversely affect our business,financial condition,results of operations,and prospects,please see our filings with the U.S. Securities and Exchange Commission.

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

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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

Three months

Year

ended December 31

ended December 31

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Net revenues:

Live video service

2,959,222

3,383,477

486,006

10,709,491

12,448,131

1,788,062

Value-added service

722,414

1,189,114

170,806

1,883,150

4,105,963

589,785

Mobile marketing

122,143

92,991

13,357

500,321

331,822

47,663

Mobile games

25,502

14,418

2,071

130,392

92,451

13,280

Other services

14,635

7,898

1,134

185,067

36,722

5,275

Total net revenues

3,843,916

4,687,898

673,374

13,408,421

17,015,089

2,444,065

Cost and expenses:

Cost of revenues

(2,099,265)

(2,351,309)

(337,744)

(7,182,897)

(8,492,096)

(1,219,813)

Research and development

(243,499)

(292,188)

(41,970)

(760,644)

(1,095,031)

(157,291)

Sales and marketing

(618,268)

(725,029)

(104,144)

(1,812,262)

(2,690,824)

(386,513)

General and administrative

(234,700)

(212,603)

(30,539)

(640,023)

(1,527,282)

(219,380)

Total cost and expenses

(3,195,732)

(3,581,129)

(514,397)

(10,395,826)

(13,805,233)

(1,982,997)

Other operating income

141,420

142,646

20,490

253,697

344,843

49,534

Income from operations

789,604

1,249,415

179,467

3,266,292

3,554,699

510,602

Interest income

89,766

108,205

15,543

272,946

407,542

58,540

Interest expense

(19,646)

(20,190)

(2,900)

(56,503)

(78,611)

(11,292)

Impairment loss on long-term

investments

(43,200)

-

-

(43,200)

(15,711)

(2,257)

Income before income tax

and share of income on

equity method

investments

816,524

1,337,430

192,110

3,439,535

3,867,919

555,593

Income tax expenses

(183,338)

(253,704)

(36,442)

(699,648)

(883,801)

(126,950)

Income before share of

income on equity method

investments

633,186

1,083,726

155,668

2,739,887

2,984,118

428,643

Share of income (loss) on

equity method investments

13,221

(31,406)

(4,511)

48,660

(23,350)

(3,354)

Net income

646,407

1,052,320

151,157

2,547

2,960,768

425,289

Less: net loss attributable to

non-controlling interest

(14,430)

(3,579)

(514)

(27,228)

(10,122)

(1,454)

Net income attributable to

Momo Inc.

660,837

1,055,899

151,671

2,815,775

2,970,890

426,743

Net income per share

attributable to ordinary

shareholders

Basic

1.60

2.53

0.36

6.92

7.15

1.03

Diluted

1.52

2.37

0.34

6.59

6.76

0.97

Weighted average shares

used in calculating net

income per ordinary share

Basic

413,732,538

416,878,784

416,784

407,009,875

415,316,627

415,627

Diluted

447,773,521

453,937,852

453,852

433,643

451,206,091

451,091

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

Year

ended December 31

ended December 31

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Net income

646,289

Other comprehensive income

(loss),net of tax

Foreign currency translation

adjustment

5,171

(39,524)

(5,677)

198,654

(8,835)

(1,269)

Comprehensive income

651,578

1,012,796

145,480

2,987,201

2,951,933

424,020

Less: comprehensive loss

attributed to the non-controlling

interest

(14,535)

(8,637)

(1,241)

(24,613)

(8,081)

(1,161)

Comprehensive income

attributable to Momo Inc.

666,113

1,021,433

146,721

3,011,814

2,014

425,181

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

December 31

December 31

2018

2019

2019

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

2,468,034

2,612,743

375,297

Term deposits

8,824,610

12,312,585

1,768,592

Accounts receivable,net of allowance for doubtful accounts of RMB

nil and RMB12,209 as of December 31,2018 and 2019,

respectively

719,606

265,155

38,087

Amounts due from a related party

-

4,382

629

Prepaid expenses and other current assets

620,979

599,000

86,041

Total current assets

12,633,229

15,793,865

2,268,646

Long-term deposit

-

300,000

43,092

Right-of-use assets,net[1]

-

190,552

27,371

Property and equipment,net

387,532

346,345

49,749

Intangible assets

1,036,986

890,303

127,884

Rental deposits

24,192

25,028

3,595

Long-term investments

447,465

495,905

71,232

Deferred tax assets

57,786

37,064

5,324

Other non-current assets

71,519

44,009

6,322

Goodwill

4,306,829

4,360,610

626,362

Total assets

18,965,538

22,483,681

3,229,577

Liabilities and equity

Current liabilities

Accounts payable

718,362

714,323

102,604

Deferred revenue

441,892

503,461

72,318

Accrued expenses and other current liabilities

846,710

985,873

141,611

Amount due to related parties

82,948

29,606

4,253

Lease liabilities due within one year[1]

-

135,169

19,416

Income tax payable

137,090

153,976

22,117

Deferred consideration in connection with business acquisitions

469,274

84,346

12,116

Total current liabilities

2,696,276

2,606,754

374,435

Deferred tax liabilities

259,247

222,576

31,971

Convertible senior notes

4,877,116

4,954,352

711,648

Share-based compensation liability

86,767

902,047

129,571

Lease liabilities[1]

-

56,498

8,115

Other non-current liabilities

23,273

22,672

3,257

Total liabilities

7,942,679

8,764,899

1,258,997

Shareholder's equity (i)

11,022,859

13,718,782

1,580

Total liabilities and shareholder's equity

18,577

(i): As of December 31,the number of ordinary shares issued and outstanding was 417,279,310.

[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)

Three months

Year

ended December 31

ended December 31

2018

2019

2019

2018

2019

2019

RMB

RMB

US$

RMB

RMB

US$

Cash flows from operating activities:

Net income

646,407

1,320

151,157

2,547

2,768

425,289

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation of property and equipment

42,244

51,385

7,381

148,238

198,237

28,475

Amortization of intangible assets

39,522

40,239

5,780

93,030

157,954

22,689

Share-based compensation

198,013

167,458

24,054

580,813

1,232

202,279

Share of (income) loss on equity method investments

(13,221)

31,406

4,511

(48,660)

23,350

3,354

Impairment loss on long-term investments

43,200

-

-

43,200

15,711

2,257

Income on disposal of property and equipment

(44)

-

-

(1,283)

(398)

(57)

Provision of allowance for doubtful accounts

-

-

-

(585)

12,209

1,754

Changes in operating assets and liabilities:

Accounts receivable

(84,973)

110,340

15,849

(440,644)

442,176

63,515

Prepaid expenses and other current assets

14,190

49,554

7,118

(67,304)

26,372

3,788

Amount due from related parties

56

(2,776)

(399)

33,463

(4,382)

(629)

Rental deposits

(4,062)

(474)

(68)

(3,817)

(836)

(120)

Deferred tax assets

(39,874)

(2,582)

(371)

(10,961)

20,722

2,977

Other non-current assets

(670)

(3,411)

(490)

(45,534)

(24,022)

(3,451)

Accounts payable

(18,987)

98,021

14,080

233,713

52,246

7,505

Income tax payable

81,097

39,938

5,737

(38,791)

16,886

2,426

Deferred revenue

12,470

6,852

984

(14,249)

61,641

8,854

Accrued expenses and other current liabilities

235,104

75,791

10,887

51,903

212,349

30,502

Amount due to related parties

25,349

235

34

43,024

(53,032)

(7,618)

Deferred tax liability

(9,547)

(10,060)

(1,445)

(22,923)

(45,382)

(6,519)

Other non-current liabilities

(2,915)

(29,153)

(4,188)

6,538

(31,915)

(4,584)

Net cash provided by operating activities

1,163,359

1,675,083

240,611

3,327,718

5,886

782,686

Cash flows from investing activities:

Purchase of property and equipment

(81,243)

(32,109)

(4,612)

(242,843)

(186,522)

(26,792)

Proceeds from disposal of property and equipment

4

4

1

2,214

808

116

Payment for long-term investments

(3,000)

(21,500)

(3,088)

(65,125)

(64,500)

(9,265)

Prepayment of long-term investments

(8,000)

-

-

(55,000)

(15,000)

(2,155)

Payment for business acquisition,net of cash acquired

(40,632)

-

-

(3,318,841)

-

-

Purchase of term deposits

(5,300,000)

(7,650,000)

(1,098,854)

(20,287,302)

(22,151,135)

(3,181,811)

Cash received on maturity of term deposits

4,600,000

6,000

867,017

13,922,393

18,686,430

2,684,138

Payment for short-term investments

(103,000)

(80,000)

(11,491)

(457,200)

(360,000)

(51,711)

Cash received from sales of short-term investment

218,000

120,000

17,237

467,700

360,000

51,711

Purchase of long-term deposits

-

(300,000)

(43,092)

-

(300,092)

Net cash used in investing activities

(717,871)

(1,927,605)

(276,882)

(10,034,004)

(4,029,919)

(578,861)

Cash flows from financing activities:

Proceeds from exercise of options

1

1

-

5,313

187

27

Deferred payment of purchase of property and equipment

(157)

(127)

(18)

(8,562)

(17,114)

(2,458)

Capital contribution from non-controlling interest shareholder

12

-

-

12

-

-

Dividends payment

-

-

-

-

(877,346)

(126,023)

Proceeds from bank loan

-

-

-

1,913,190

-

-

Repayment of bank loan

-

-

-

(2,041,680)

-

-

Deferred payment for business acquisition

-

-

-

-

(379,507)

(54,513)

Proceeds from issuance of Convertible Senior Notes,net of issuance

cost of RMB113,673

-

-

-

4,820,387

-

-

Payment of issuance cost of convertible notes

(709)

-

-

(709)

-

-

Net cash (used in) provided byfinancing activities

(853)

(126)

(18)

4,951

(1,273,780)

(182,967)

Effect of exchange rate changes

1,439

(5,532)

(796)

24,175

(478)

(72)

Net increase (decrease) in cash,cash equivalents,and restricted

cash

446,074

(258,180)

(37,085)

(1,994,160)

144,709

20,786

Cash,and restricted cash at beginning of period

2,960

2,870,923

412,382

4,462,194

2,034

354,511

Cash,and restricted cash at end of period

2,297

2,297

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.

Three months

Three months

Three months

ended December 31,2018

ended December 31,2019

ended December 31,2019

GAAP

Amortization

of intangible

assets from

business

acquisitions

Share-

based

compensation

Tax

impacts

Non-GAAP

GAAP

Amortization

of intangible

assets from

business

acquisitions

Share-

based

compensation

Tax

impacts

Non-GAAP

GAAP

Amortization

of intangible

assets from

business

acquisitions

Share-

based

compensation

Tax

impacts

Non-GAAP

(ii)

(ii)

(ii)

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

US$

US$

US$

US$

US$

Cost of revenues

(2,265)

18,471

5,498

-

(2,075,296)

(2,309)

18,818

7,601

-

(2,324,890)

(337,744)

2,703

1,092

-

(333,949)

Research and

development

(243,499)

2,345

47,215

-

(193,939)

(292,188)

2,390

45,455

-

(244,343)

(41,970)

343

6,529

-

(35,098)

Sales and marketing

(618,268)

17,273

43,707

-

(557,288)

(725,029)

17,598

53,466

-

(653,965)

(104,144)

2,528

7,680

-

(93,936)

General and

administrative

(234,700)

-

101,593

-

(133,107)

(212,603)

-

60,936

-

(151,667)

(30,539)

-

8,753

-

(21,786)

Cost and operating

expenses

(3,732)

38,089

198,013

-

(2,630)

(3,129)

38,806

167,458

-

(3,374,865)

(514,397)

5,574

24,054

-

(484,769)

Income from

operations

789,604

38,089

198,013

-

1,025,706

1,415

38,806

167,458

-

1,455,679

179,467

5,574

24,054

-

209,095

Net income attributable

toMomo Inc.

660,837

38,013

(9,522)

887,417

1,899

38,458

(9,701)

1,252,462

151,671

5,054

(1,394)

179,905

Momo Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

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

Year

Year

Year

ended December 31,2019

GAAP

Amortization

of intangible

assets from

business

acquisitions

Share-

based

compensation

Tax

impacts

Non-GAAP

GAAP

Amortization

of intangible

assets from

business

acquisitions

Share-

based

compensation

Tax

impacts

Non-GAAP

GAAP

Amortization

of intangible

assets from

business

acquisitions

Share-

based

compensation

Tax

impacts

Non-GAAP

(ii)

(ii)

(ii)

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

RMB

US$

US$

US$

US$

US$

Cost of revenues

(7,897)

42,336

21,661

-

(7,118,900)

(8,096)

73,817

23,972

-

(8,394,307)

(1,813)

10,603

3,443

-

(1,205,767)

Research and

development

(760,644)

5,375

152,806

-

(602,463)

(1,031)

9,375

175,053

-

(910,603)

(157,291)

1,347

25,145

-

(130,799)

Sales and marketing

(1,262)

39,589

-

(1,629,746)

(2,824)

69,031

196,311

-

(2,425,482)

(386,513)

9,916

28,198

-

(348,399)

142,927

General and

administrative

(640,023)

-

263,419

-

(376,604)

(1,282)

-

1,896

-

(514,386)

(219,380)

-

145,493

-

(73,887)

Cost and operating

expenses

(10,826)

87,300

580,813

-

(9,727,713)

(13,233)

152,223

1,232

-

(12,244,778)

(1,997)

21,866

202,279

-

(1,758,852)

Income from

operations

3,292

87,300

580,813

-

3,934,405

3,699

152,223

1,232

-

5,115,154

510,602

21,866

202,279

-

734,747

Net income attributable

to Momo Inc.

2,775

87,813

(21,823)

3,065

2,890

152,232

(38,056)

4,493,289

426,743

21,279

(5,466)

645,422

(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 December 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

3,477

-

-

3,006

Value-added service

819,325

369,789

-

1,806

Mobile marketing

92,991

-

-

92,357

Mobile games

14,418

-

-

14,071

Other services

7,111

-

787

7,134

Total net revenues

4,317,322

369,789

787

4,374

Cost and expenses (iii):

Cost of revenues

(2,222,912)

(127,748)

(649)

(2,744)

Research and development

(205,793)

(86,395)

-

(292,970)

Sales and marketing

(379,940)

(345,089)

-

(725,144)

General and administrative

(192,789)

(13,275)

(6,539)

(212,539)

Total cost and expenses

(3,001,434)

(572,507)

(7,188)

(3,397)

Other operating income

142,613

-

33

142,490

Income (loss) from operations

1,458,501

(202,718)

(6,368)

1,467

Interest income

105,947

2,197

61

108,543

Interest expense

(20,190)

-

-

(20,900)

Income (loss) before income tax

andshare of income on equity

method investments

1,544,258

(200,521)

(6,307)

1,110

Income tax (expenses) benefits

(265,981)

12,277

-

(253,442)

Income (loss) before share of

income on equity method

investments

1,278,277

(188,244)

(6,668

Share of loss on equity method

investments

(31,406)

-

-

(31,511)

Net income (loss)

1,246,871

(188,157

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

Three months

ended December 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

6,000

1,601

-

7,601

1,092

Research and development

26,980

18,475

-

45,455

6,529

Sales and marketing

45,971

7,495

-

53,466

7,680

General and administrative

56,467

1,384

3,085

60,936

8,753

Total cost and expenses

135,418

28,955

3,085

167,458

24,054

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

ended December 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

1,501

(202,718)

(6,368)

1,415

179,467

Share-based compensation

135,418

28,955

3,085

167,054

Amortization of intangible assets from

business acquisitions

-

38,806

-

38,806

5,574

Non-GAAP operating income (loss)

1,593,919

(134,957)

(3,283)

1,679

209,095

Net income (loss)

1,871

(188,244)

(6,307)

1,157

Share-based compensation

135,574

Tax impacts

-

(9,701)

-

(9,701)

(1,394)

Non-GAAP net income (loss)

1,382,289

(130,184)

(3,222)

1,248,883

179,391

Momo Inc.

Unaudited Segment Report

(All amounts in thousands,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[2]

Net revenues:

Live video service

2,222

-

-

2,222

430,401

Value-added service

499,446

222,968

-

722,414

105,071

Mobile marketing

122,143

-

-

122,143

17,765

Mobile games

25,502

-

-

25,502

3,709

Other services

2,970

-

11,665

14,635

2,128

Total net revenues

3,609,283

222,968

11,665

3,916

559,074

Cost and expenses (iv):

Cost of revenues

(1,632)

(82,758)

(55,875)

(2,265)

(305,325)

Research and development

(202,486)

(41,013)

-

(243,499)

(35,415)

Sales and marketing

(363,798)

(251,286)

(3,184)

(618,268)

(89,923)

General and administrative

(130,062)

(67,935)

(36,703)

(234,700)

(34,136)

Total cost and expenses

(2,656,978)

(442,992)

(95,762)

(3,732)

(464,799)

Other operating income

140,269

85

1,066

141,420

20,569

Income (loss) from operations

1,092,574

(219,939)

(83,031)

789,604

114,844

Interest income

85,694

4,049

23

89,766

13,056

Interest expense

(19,646)

-

-

(19,646)

(2,857)

Impairment loss on long-term investments

(43,200)

(6,283)

Income (loss) before income tax and share

of income on equity method investments

1,422

(215,890)

(83,008)

816,524

118,760

Income tax (expenses) benefits

(188,117)

9,522

(4,743)

(183,338)

(26,665)

Income (loss) before share of income on

equity method investments

927,305

(206,368)

(87,751)

633,186

92,095

Share of income on equity method investments

13,221

-

-

13,221

1,923

Net income (loss)

940,526

(206,751)

646,407

94,018

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

Three months

ended December 31,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

4,126

1,372

-

5,498

800

Research and development

24,067

23,148

-

47,215

6,867

Sales and marketing

37,718

5,989

-

43,707

6,357

General and administrative

42,271

58,756

566

101,593

14,776

Total cost and expenses

108,182

89,265

566

198,013

28,800

[2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.8755 to US$1.00,the effective noon buying rate for

December 31,2018 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,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

1,574

(219,939)

(83,031)

789,604

114,844

Share-based compensation

108,182

89,265

566

198,013

28,800

Amortization of intangible assets from

business acquisitions

-

38,089

-

38,089

5,539

Non-GAAP operating income (loss)

1,200,756

(92,585)

(82,465)

1,706

149,183

Net income (loss)

940,526

(206,368)

(87,751)

646,407

94,018

Share-based compensation

108,539

Tax impacts

-

(9,522)

-

(9,522)

(1,385)

Non-GAAP net income (loss)

1,048,708

(88,536)

(87,185)

872,987

126,972

Momo Inc.

Unaudited Segment Report

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

Year

ended December 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

12,131

-

-

12,062

Value-added service

2,846,057

1,259,906

-

4,785

Mobile marketing

331,822

-

-

331,663

Mobile games

92,451

-

-

92,280

Other services

22,354

-

14,368

36,275

Total net revenues

15,740,815

1,906

14,368

17,065

Cost and expenses (v):

Cost of revenues

(8,065,300)

(415,688)

(11,108)

(8,813)

Research and development

(797,471)

(297,560)

-

(1,291)

Sales and marketing

(1,521,511)

(1,162,912)

(6,401)

(2,513)

General and administrative

(641,269)

(851,099)

(34,914)

(1,380)

Total cost and expenses

(11,551)

(2,259)

(52,423)

(13,997)

Other operating income

323,444

-

21,399

344,534

Income (loss) from operations

5,038,708

(1,467,353)

(16,656)

3,602

Interest income

396,672

10,706

164

407,540

Interest expense

(78,611)

-

-

(78,292)

Impairment loss on long-term

investments

(15,711)

-

-

(15,257)

Income (loss) before income tax

and share of income on equity

method investments

5,341,058

(1,456,647)

(16,492)

3,593

Income tax (expenses) benefits

(917,265)

33,464

-

(883,950)

Income (loss) before share of

income on equity method

investments

4,423,793

(1,183)

(16,492)

2,643

Share of income on equity method

investments

(23,350)

-

-

(23,354)

Net income (loss)

4,400,443

(1,289

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

Year

ended December 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

20,393

3,579

-

23,972

3,443

Research and development

103,655

71,398

-

175,053

25,145

Sales and marketing

175,657

20,654

-

196,311

28,198

General and administrative

207,053

795,033

10,810

1,896

145,493

Total cost and expenses

506,758

890,664

10,810

1,232

202,279

Momo Inc.

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

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

Year

ended December 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

5,708

(1,353)

(16,656)

3,699

510,602

Share-based compensation

506,758

890,664

10,279

Amortization of intangible assets

from business acquisitions

-

152,223

-

152,223

21,866

Non-GAAP operating income(loss)

5,545,466

(424,466)

(5,846)

5,154

734,747

Net income (loss)

4,443

(1,183)

(16,492)

2,289

Share-based compensation

506,866

Tax impacts

-

(38,056)

-

(38,056)

(5,466)

Non-GAAP net income (loss)

4,907,201

(418,352)

(5,682)

4,167

643,968

Momo Inc.

Unaudited Segment Report

(All amounts in thousands,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

10,491

-

-

10,491

1,557,631

Value-added service

1,465,152

417,998

-

1,150

273,893

Mobile marketing

500,321

-

-

500,321

72,769

Mobile games

130,392

-

-

130,392

18,965

Other services

7,065

-

178,002

185,067

26,916

Total net revenues

12,421

417,998

178,002

13,421

1,950,174

Cost and expenses (vi):

Cost of revenues

(6,572,954)

(174,858)

(435,085)

(7,897)

(1,044,709)

Research and development

(614,064)

(146,580)

-

(760,644)

(110,631)

Sales and marketing

(1,269,493)

(520,161)

(22,608)

(1,262)

(263,583)

General and administrative

(472,057)

(121,887)

(46,079)

(640,023)

(93,087)

Total cost and expenses

(8,928,568)

(963,486)

(503,772)

(10,826)

(1,512,010)

Other operating income

252,458

173

1,066

253,697

36,899

Income (loss) from operations

4,136,311

(545,315)

(324,704)

3,292

475,063

Interest income

268,583

4,285

78

272,946

39,698

Interest expense

(56,503)

-

-

(56,503)

(8,218)

Impairment loss on long-term investments

(43,283)

Income (loss) before income tax and share

of income on equity method investments

4,305,191

(541,030)

(324,626)

3,535

500,260

Income tax (expenses) benefits

(716,729)

21,824

(4,743)

(699,648)

(101,760)

Income (loss) before share of income on

equity method investments

3,588,462

(519,206)

(329,369)

2,887

398,500

Share of income on equity method

investments

48,660

-

-

48,660

7,077

Net income (loss)

3,637,122

(519,547

405,577

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

Year

ended December 31,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

16,240

5,421

-

21,661

3,150

Research and development

89,811

62,995

-

152,806

22,225

Sales and marketing

129,004

13,923

-

142,927

20,788

General and administrative

163,440

99,413

566

263,419

38,313

Total cost and expenses

398,495

181,752

566

580,813

84,476

Momo Inc.

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

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

Year

endedDecember 31,2018

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Operating income (loss)

4,311

(545,315)

(324,704)

3,292

475,063

Share-based compensation

398,495

181,752

566

580,813

84,476

Amortization of intangible assets

frombusiness acquisitions

-

87,300

-

87,300

12,698

Non-GAAP operating income (loss)

4,534,806

(276,263)

(324,138)

3,405

572,237

Net income (loss)

3,122

(519,206)

(329,369)

2,547

405,577

Share-based compensation

398,476

Amortization of intangible assets

from business acquisitions

-

87,698

Tax impacts

-

(21,823)

-

(21,823)

(3,174)

Non-GAAP net income (loss)

4,035,617

(271,977)

(328,803)

3,434,837

499,577

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