Momo Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2020

BEIJING,March 25,2021 -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"),a leading mobile social networking platform in China,today announced its unaudited financial results for thefourthquarterand the full year ended December 31,2020.

FourthQuarter of 2020 Highlights

Net revenues decreased by 19.0% year over year to RMB3,795.2 million (US$581.6 million*) in the fourth quarter of 2020.

Net income attributable to Momo Inc. decreased to RMB651.5 million (US$99.8 million) in the fourth quarter of 2020 from RMB1,055.9 million in the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) decreased to RMB836.4 million (US$128.2 million) in the fourth quarter of 2020,from RMB1,252.5 million in the same period of 2019.

Diluted net income per American Depositary Share ("ADS") was RMB2.98 (US$0.46) in the fourth quarter of 2020,compared to RMB4.74 in the same period of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB3.80 (US$0.58) in the fourth quarter of 2020,compared to RMB5.61 in the same period of 2019.

Monthly Active Users ("MAU") on Momo application were 113.8 million in December 2020,compared to 114.5 million in December 2019.

Total paying users of our live video service and value-added service,without double counting the overlap and including 3.8 million paying users of Tantan Limited ("Tantan"),were 12.8 million for the fourth quarter of 2020,compared to 13.8 million for the fourth quarter of 2019,which included 4.5 million paying users of Tantan.

Full Year2020 Highlights

Net revenues decreased by 11.7% year over year to RMB15,024.2 million (US$2,302.6 million) for the full year of 2020.

Net income attributable to Momo Inc. was RMB2,103.5 million (US$322.4 million) for the full year of 2020,compared with RMB2,970.9 million during the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,896.2 million (US$443.9 million) for the full year of 2020,compared with RMB4,493.3 million during the same period of 2019.

Diluted net income per ADS was RMB9.65 (US$1.48) for the full year of 2020,compared with RMB13.52 during the same period of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB13.16 (US$2.02) for the full year of 2020,compared with RMB20.26 during the same period of 2019.

* 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 RMB6.525 to US$1.00,the effective noon buying rate for December 31,2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

"2020 was a tough year for us. I am proud that my teams were able to navigate through the many challenges with relentless focus on our core mission. Our commitment to the core mission enabled us to make difficult but right decision in the past year for the long term wellbeing of our company and our community,"commented Li Wang,CEO of Momo. "After several months of hard work,we have started seeing positive trends in the content ecosystem as well as business of the core Momo. Getting through the bumpy journey last year was a valuable growth experience for our team. I am happy to see we have finally come out of the temporary drawbacks,stronger and better poised to seize the growth opportunities ahead of us."

FourthQuarter of 2020 Financial Results

Net revenues

Total net revenues were RMB3,795.2 million (US$581.6million) in the fourth quarter of 2020,a decrease of 19.0% from RMB4,687.9 million in the fourth quarter of 2019.

Live video service revenues were RMB2,327.9 million (US$356.8 million) in the fourth quarter of 2020,a decrease of 31.2% from RMB3,383.5 million during the same period of 2019. The decrease was primarily due to our structural reform on Momo's core live video business,which was used to revive the long tail content ecosystem and to a lesser extent,the impact of COVID-19 adversely affecting the sentiment of our paying users,especially among the top of the pyramid paying users. The decrease was partially offset by the growth from Tantan's live video service,and live video service revenues from Tantan were RMB404.3 million (US$62.0 million) in the fourth quarter of 2020.

Value-addedservice revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,401.3 million (US$214.8million) in the fourth quarter of 2020,an increase of 17.8% from RMB1,189.1 million during the same period of 2019. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more innovative products and operational ideas launched,and more paying scenarios introduced to enhance the social entertainment experience of Momo users.

Mobile marketing revenues were RMB52.7 million (US$8.1 million) in the fourth quarter of 2020,a decrease of 43.4% from RMB93.0 million during the same period of 2019. The decrease in mobile marketing revenues was primarily caused by the decreased demand from our advertising and marketing customers as well as our strategy to underweight the line in terms of resource allocation.

Mobile games revenues were RMB7.3 million (US$1.1 million) in the fourth quarter of 2020,a decrease of 49.1% from RMB14.4 million in the fourth quarter of 2019. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.

Net revenues from the Momo segment decreased from RMB4,317.3 million in the fourth quarter of 2019 to RMB3,051.3 million (US$467.6 million) in the fourth quarter of 2020,primarily due to the decrease in net revenues from live video service,partially offset by the increase in net revenues from value-added service. Net revenues from the Tantan segment increased from RMB369.8 million in the fourth quarter of 2019 to RMB740.5 million (US$113.5 million) in the fourth quarter of 2020,which was mainly due to the increase in net revenues from live video service.

Cost and expenses

Cost and expenses were RMB3,290.0 million (US$504.2 million) in the fourth quarter of 2020,a decrease of 8.1% from RMB3,581.1 million in the fourth quarter of 2019. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to our live video service; (b) a decrease in professional fees related to technological service and bandwidth costs; (c) a decrease in commission fees paid to payment channels. These decreases were partially offset by an increase in revenue sharing with virtual gift recipients for our virtual gift service.

Non-GAAP cost and expenses (note 1) were RMB3,095.9 million (US$474.5 million) in the fourth quarter of 2020,a decrease of 8.3% from RMB3,374.9 million during the same period of 2019.

Other operating income

Other operating income was RMB88.4 million (US$13.5 million)in the fourthquarter of 2020,a decrease from RMB142.6million during the fourthquarter of 2019. The other operating income mainly consisted of government incentives.

Incomefrom operations

Incomefrom operations was RMB593.6 million (US$91.0 million)in the fourth quarter of 2020,compared to RMB1,249.4 million during the same period of 2019. Incomefrom operations of the Momo segment wasRMB650.9 million (US$99.8 million) in the fourth quarter of 2020,which decreased from RMB1,458.5 million in thefourth quarter of 2019. Loss from operations of the Tantan segment was RMB53.1 million (US$8.1 million) in the fourth quarter of 2020,compared to loss from operationsof RMB202.7 million in the fourth quarter of 2019.

Non-GAAP income from operations (note 1) was RMB787.7 million (US$120.7million) in the fourth quarter of 2020,455.7 million during the same period of 2019. Non-GAAPincomefrom operations of the Momo segment wasRMB791.8 million (US$121.4 million)in the fourth quarter of 2020,593.9 million in the fourth quarter of 2019. Non-GAAPlossfrom operations of the Tantan segment was RMB2.3 million (US$0.4 million) in the fourth quarter of 2020,compared to non-GAAP loss from operations of RMB135.0 million in the fourth quarter of 2019.

Income tax expenses

Income tax expenses were RMB5.5 million (US$0.8 million) in the fourth quarter of 2020,decreasing from RMB253.7 million in the fourth quarter of 2019. The decrease in income tax expenses was mainly due to (a) the preferential tax rateadjustment from 12.5% to 10.0% for one of our major profit generating entities,due to the approval in 2020 of the Key Software Enterprise application for the income tax of the fiscal year of 2019; and (b) the lower profit in the fourth quarter of 2020.

Net income

Net incomewas RMB651.1 million (US$99.8 million) in the fourth quarter of 2020,compared toRMB1,052.3million during the same period of 2019. Net incomefrom theMomo segment was RMB705.8 million (US$108.2 million) in the fourth quarter of 2020,which decreased fromRMB1,246.9million in the fourth quarter of 2019. Net loss from the Tantan segment was RMB50.5 million (US$7.7 million) in the fourth quarter of 2020,compared tonet loss of RMB188.2 million in the fourth quarter of 2019.

Non-GAAP net income (note 1) was RMB836.1 million (US$128.1million) in the fourth quarter of 2020,248.9 million during the same period of 2019. Non-GAAPnet incomefrom the Momo segment wasRMB846.7million(US$129.8 million) in the fourth quarter of 2020,382.3million in the fourth quarter of 2019. Non-GAAPnet lossof the Tantan segment was RMB8.8 million (US$1.4 million) in the fourth quarter of 2020,compared tonon-GAAP net loss of RMB130.2 million in the fourth quarter of 2019.

Net income attributable to Momo Inc.

Net incomeattributable to Momo Inc. was RMB651.5 million (US$99.8 million) in the fourth quarter of 2020,055.9million during the same period of 2019.

Non-GAAP net income (note 1) attributable to Momo Inc. was RMB836.4 million (US$128.2million) in thefourth quarter of 2020,252.5 million during the same period of 2019.

Net incomeper ADS

Diluted net incomeper ADS was RMB2.98 (US$0.46) in the fourth quarter of 2020,compared toRMB4.74in the fourth quarter of 2019.

Non-GAAP diluted net income per ADS (note 1) was RMB3.80 (US$0.58) in the fourth quarter of 2020,compared to RMB5.61 in the fourth quarter of 2019.

Cash and cash flow

As of December 31,2020,Momo's cash,cash equivalents,short-term deposits,long-term deposits and restricted cash totaled RMB16,482.3 million (US$2,526.0million),compared to RMB15,225.3 million as of December 31,2019. Net cash provided by operating activities in the fourth quarter of 2020 was RMB1,039.1 million (US$159.2million),675.1 million in the fourth quarter of 2019.

Full Year2020Financial Results

Net revenues for the full year of 2020 were RMB15,302.6 million),a decrease of 11.7% from RMB17,015.1 million in the same period of 2019.

Net income attributable to Momo Inc. was RMB2,compared to RMB2,970.9 million during the same period of 2019.

Non-GAAP net income attributable to Momo Inc. (note 1)was RMB2,compared to RMB4,493.3 million during the same period of 2019.

Dilutednet incomeper ADS was RMB9.65 (US$1.48) during the full year of 2020,compared to RMB13.52 in the same period of 2019.

Non-GAAP diluted net incomeper ADS (note 1) was RMB13.16 (US$2.02) during the full year of 2020,compared to RMB20.26inthe same period of 2019.

Net cash provided by operating activities was RMB3,080.9 million (US$472.2 million) during the full year of 2020,compared to RMB5,448.9 million in the same period of 2019.

Recent Developments

Declaration of a special cash dividend

Momo's board of directors has declared a special cash dividend in the amount of US$0.64 per ADS,or US$0.32 per ordinary share. The cash dividend will be paid on April 30,2021 to shareholders of record at the close of business on April 13,2021. The ex-dividend date will be April 12,2021. The aggregate amount of cash dividends to be paid is approximately US$132 million,which will be funded by surplus cash on the Company's balance sheet.

Execution of share repurchase program

On September 3,Momo's board of directors authorized a share repurchase program under which the Company may repurchase up to US$300 million of its shares over the next 12 months. As of March 24,2021,the Company has repurchased approximately 3.61 million ADSs for approximately US$49.2 million on the open market under this program,at an average purchase price of US$13.63 per ADS.

Resignation of Chief Technology Officer

Mr. Chunlai Wang will resign from the Company's Chief Technology Officer position for personal reasons,effective April 30,and he will continue to serve as an advisor to the Company. The Company is grateful to Mr. Chunlai Wang for his valuable contributions over the past nine years.

Business Outlook

For the first quarter of 2021,the Company expects total net revenues to be between RMB3.36 billion to RMB3.46 billion,representing a decrease of 6.5% to 3.7% year-over-year. This forecast considers the potential impact of the COVID-19 pandemic and reflects the Company's current and preliminary views on the market and operational conditions,which are subject to change,particularly with respect to the potential lasting impact of COVID-19 on the economy in China.

Note 1: Non-GAAP measures

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

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

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

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

Conference Call

Momo's management will host an earnings conference call on Thursday,at8:00 a.m.U.S. Eastern Time (8:00 p.m. Beijing/Hong KongTime on March 25,2021).

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

PRE-REGISTER LINK http://apac.directeventreg.com/registration/event/2751618

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

A telephone replay of the call will be available after the conclusion of the conference call through 8:00 a.m.U.S. Eastern Time,April 1,2021. The dial-in details for the replay are as follows:

International:

+61-2-8199-0299

U.S. Toll Free:

+1-855-452-5696

Passcode:

2751618

Additionally,a live and archived webcast of the conference call will be available on the Investor Relations section of Momo's website at http://ir.immomo.com.

About Momo

We are a leading player in China's online social and entertainment space. Through Momo,Tantan and other properties within our product portfolio,we enable users to discover new relationships,expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates interactions based on location,interests and a variety of recreational activities including live talent shows,short videos,social games as well as other video- and audio-based interactive experiences,such as live chats and mobile karaoke experience. Tantan,which was added into our family of applications through acquisition in May 2018,is a leading social and dating application for the younger generation. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people.

For investor and media inquiries,please contact:

Momo Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: ir@immomo.com

Christensen

In China

Mr. Eric Yuan

Phone: +86-10-5900-1548

E-mail: Eyuan@christensenir.com

In US

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: lbergkamp@christensenir.com

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933,as amended,and Section 21E of the Securities Exchange Act of 1934,and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes,our financial outlook for the firstquarter of 2021,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 fourthquarter of 2020 are preliminary,unaudited and subject to audit adjustment. In addition,we may not meet our financial outlook for the firstquarter of 2021 and may be unable to grow our business in the manner planned. We may also modifyour strategy for growth. Moreover,there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate,including those relating to our ability to retain and grow our user base,our ability to attract and retain sufficiently trained professionals to support our operations,our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers,the impact of the COVID-19 pandemic on Momo's business operations and the economy in China,the market price of Momo's stock prevailing from time to time,the nature of other investment opportunities presented to Momo from time to time,Momo's cash flows from operations,general economic conditions,and other factors. For additional information on these and other important factors that could adversely affect our business,financial condition,results of operations,and prospects,please see our filings with the U.S. Securities and Exchange Commission.

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

Momo Inc.

Unaudited Condensed Consolidated Statement of Operations

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

Three months

Year

Ended December 31

endedDecember 31

2019

2020

2020

2019

2020

2020

RMB

RMB

US$

RMB

RMB

US$

Net revenues:

Live video service

3,383,477

2,327,875

356,762

12,448,131

9,637,579

1,477,024

Value-added service

1,189,114

1,401,269

214,754

4,105,963

5,112,182

783,476

Mobile marketing

92,991

52,663

8,071

331,822

198,197

30,375

Mobile games

14,418

7,334

1,124

92,451

39,564

6,063

Other services

7,898

6,060

929

36,722

36,666

5,620

Total net revenues

4,687,898

3,795,201

581,640

17,015,089

15,024,188

2,302,558

Cost and expenses:

Cost of revenues

(2,351,309)

(2,042,781)

(313,070)

(8,492,096)

(7,976,781)

(1,222,495)

Research and development

(292,188)

(327,295)

(50,160)

(1,095,031)

(1,167,677)

(178,954)

Sales and marketing

(725,029)

(697,722)

(106,931)

(2,690,824)

(2,813,922)

(431,252)

General and administrative

(212,603)

(222,191)

(34,052)

(1,527,282)

(763,150)

(116,958)

Total cost and expenses

(3,581,129)

(3,289,989)

(504,213)

(13,805,233)

(12,721,530)

(1,949,659)

Other operating income

142,646

88,385

13,546

344,843

228,777

35,062

Income from operations

1,249,415

593,597

90,973

3,554,699

2,531,435

387,961

Interest income

108,205

100,880

15,461

407,542

444,471

68,118

Interest expense

(20,190)

(19,047)

(2,919)

(78,611)

(78,872)

(12,088)

Other gain or loss,net

-

7,500

1,149

(15,711)

1,500

230

Income before income tax

and share of income on

equity method

investments

1,337,430

682,930

104,664

3,867,919

2,898,534

444,221

Income tax expenses

(253,704)

(5,481)

(840)

(883,801)

(755,620)

(115,804)

Income before share of

income on equity method

investments

1,083,726

677,449

103,824

2,984,118

2,142,914

328,417

Share of loss on equity

method investments

(31,406)

(26,319)

(4,034)

(23,350)

(42,522)

(6,517)

Net income

1,052,320

651,130

99,790

2,960,768

2,100,392

321,900

Less: net loss attributable to

non-controlling interest

(3,579)

(320)

(49)

(10,122)

(3,092)

(474)

Net income attributable to

the shareholders of

Momo Inc.

1,055,899

651,450

99,839

2,970,890

2,103,484

322,374

Net incomeper share

attributable to ordinary

shareholders

Basic

2.53

1.57

0.24

7.15

5.05

0.77

Diluted

2.37

1.49

0.23

6.76

4.83

0.74

Weighted average shares

used in calculating net

incomeper ordinary share

Basic

416,878,784

414,839,350

414,350

415,316,627

416,914,898

416,898

Diluted

453,937,852

449,683,596

449,596

451,206,091

452,081,642

452,642

Momo Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Threemonths

Year

endedDecember 31

ended December 31

2019

2020

2020

2019

2020

2020

RMB

RMB

US$

RMB

RMB

US$

Net income

1,900

Other comprehensive loss,net of

tax

Foreign currency translation

adjustment

(39,524)

(69,010)

(10,576)

(8,835)

(141,677)

(21,713)

Comprehensiveincome

1,012,796

582,120

89,214

2,951,933

1,958,715

300,187

Less: comprehensive loss

attributed to the non-controlling

interest

(8,637)

(9,059)

(1,388)

(8,081)

(26,004)

(3,985)

Comprehensive income

attributable to Momo Inc.

1,021,433

591,179

90,602

2,014

1,719

304,172

Momo Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

December 31

December 31

2019

2020

2020

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

2,612,743

3,363,942

515,547

Short-term deposits

12,312,585

7,566,250

1,159,579

Restricted cash

-

2,130

326

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

RMB15,390 as of December 31,2019 and 2020,respectively

265,155

200,831

30,779

Amount due from a related party

4,382

-

-

Prepaid expenses and other current assets

599,000

613,696

94,053

Total current assets

15,793,865

11,746,849

1,800,284

Long-term deposits

300,000

5,550,000

850,575

Right-of-use assets,net

190,552

278,175

42,632

Property and equipment,net

346,345

265,765

40,730

Intangible assets

890,303

687,211

105,320

Rental deposits

25,028

21,794

3,340

Long-term investments

495,905

454,996

69,731

Other non-current assets

44,009

94,868

14,539

Deferred tax assets

37,064

32,495

4,980

Goodwill

4,360,610

4,088,403

626,575

Total assets

22,483,681

23,220,556

3,558,706

Liabilities and equity

Current liabilities

Accounts payable

714,323

699,394

107,186

Deferred revenue

503,461

511,617

78,409

Accrued expenses and other current liabilities

985,873

854,835

131,009

Amount due to related parties

29,606

19,462

2,983

Lease liabilities due within one year

135,169

132,793

20,351

Income tax payable

153,976

236,490

36,244

Deferred consideration in connection with business acquisitions

84,346

62,149

9,525

Total current liabilities

2,606,754

2,516,740

385,707

Deferred tax liabilities

222,576

171,803

26,330

Convertible senior notes

4,954,352

4,658,966

714,018

Share-based compensation liability

902,047

875,616

134,194

Lease liabilities

56,498

136,436

20,910

Other non-current liabilities

22,672

25,666

3,933

Total liabilities

8,764,899

8,385,227

1,285,092

Shareholder's equity(i)

13,718,782

14,835,329

2,273,614

Total liabilities and shareholder's equity

22,706

(i): As ofDecember 31,the number of ordinary shares outstanding was 411,981,508.

Momo Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

Threemonths

Year

endedDecember 31

ended December 31

2019

2020

2020

2019

2020

2020

RMB

RMB

US$

RMB

RMB

US$

Cash flows from operating activities:

Net income

1,320

651,130

99,790

2,768

2,392

321,900

Adjustments to reconcile net incometo net cash provided by o

perating activities:

Depreciation of property and equipment

51,385

55,375

8,487

198,237

208,990

32,029

Amortization of intangible assets

40,239

37,741

5,784

157,954

157,258

24,101

Share-based compensation

167,458

157,584

24,151

1,408,232

678,686

104,013

Share of loss on equity method investments

31,406

26,319

4,034

23,350

42,522

6,517

Gain or loss on long-term investments

-

(7,500)

(1,149)

15,711

(1,500)

(230)

Gain on subsidiary deconsolidation

-

-

-

-

(6,676)

(1,023)

Loss (gain) on disposal of property and equipment

-

3

-

(398)

(282)

(43)

Provision of losses on receivable and other assets

-

19,663

3,013

12,209

46,075

7,061

Cash received on investment income distribution

-

-

-

-

1,153

177

Changes in operating assets and liabilities:

Accounts receivable

110,340

34,533

5,292

442,176

52,247

8,007

Prepaid expenses and other current assets

49,554

104,636

16,036

26,372

(59,117)

(9,060)

Amount due from a related party

(2,776)

-

-

(4,382)

4,382

672

Rental deposits

(474)

(4,372)

(670)

(836)

(4,265)

(654)

Deferred tax assets

(2,582)

1,535

235

20,722

4,569

700

Other non-current assets

(3,411)

(166,665)

(25,543)

(24,022)

(138,484)

(21,224)

Accounts payable

98,021

66,948

10,260

52,246

(11,716)

(1,796)

Income tax payable

39,938

(95,341)

(14,612)

16,886

82,514

12,646

Deferred revenue

6,852

24,740

3,792

61,641

8,910

1,366

Accrued expenses and other current liabilities

75,791

41,048

6,291

212,349

(120,363)

(18,446)

Amount due to related parties

235

(12,406)

(1,901)

(53,032)

(10,144)

(1,555)

Deferred tax liability

(10,060)

(9,435)

(1,446)

(45,382)

(39,315)

(6,025)

Other non-current liabilities

(29,153)

113,553

17,403

(31,915)

85,053

13,035

Net cash provided byoperating activities

1,675,083

1,039,089

159,247

5,886

3,080,889

472,168

Cash flows from investing activities:

Purchase of property and equipment

(32,109)

(16,095)

(2,467)

(186,522)

(124,143)

(19,026)

Proceeds from disposal of property and equipment

4

2

-

808

476

73

Payment for long-term investments

(21,500)

(9,000)

(1,379)

(64,500)

(13,500)

(2,069)

Prepayment of long-term investments

-

-

-

(15,000)

-

-

Cash dividend received

-

-

-

-

233

36

Cash outflow due to subsidiary deconsolidation

-

-

-

-

(1,026)

(157)

Purchase of short-term deposits

(7,650,000)

(3,654,500)

(560,077)

(22,151,135)

(14,665)

(2,291,136)

Cash received on maturity of short-term deposits

6,036,000

3,500

606,054

18,686,430

19,577,159

3,000,331

Payment for short-term investments

(80,000)

-

-

(360,000)

(10,533)

Cash received from sales of short-term investment

120,000

-

-

360,000

10,000

1,533

Cash received from sales of long term investment

-

12,839

-

12,839

Purchase of long-term deposits

(300,000)

(900,000)

(137,931)

(300,000)

(5,250,000)

(804,598)

Net cash used in investing activities

(1,927,605)

(613,093)

(93,961)

(4,029,919)

(748,466)

(114,707)

Cash flows from financing activities:

Deferred payment for business acquisition

-

-

-

(379,507)

(18,355)

(2,813)

Proceeds from exercise of share options

1

171

26

187

226

35

Deferred payment of purchase of property and equipment

(127)

-

-

(17,114)

-

-

Repurchase of ordinary shares

-

(197,799)

(30,314)

-

(330,206)

(50,606)

Repurchase of subsidiary's share options

-

(932)

(143)

-

(25,832)

(3,959)

Dividends payment

-

-

-

(877,346)

(1,123,983)

(172,258)

Net cash used in financing activities

(126)

(198,560)

(30,431)

(1,780)

(1,498,150)

(229,601)

Effect of exchange rate changes

(5,532)

(37,770)

(5,788)

(478)

(80,944)

(12,407)

Net (decrease) increase in cash and cash equivalents

(258,180)

189,666

29,067

144,709

753,329

115,453

Cash and cash equivalents at the beginning of period

2,870,923

3,176,406

486,806

2,468,034

2,743

400,420

Cash,cash equivalent and restricted cashat the end of

period

2,366,072

515,873

2,873

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

endedDecember 31,2019

endedDecember 31,2020

endedDecember 31,2020

GAAP

RMB

Amortization

of intangible

assets from

business

acquisitions

RMB

Share-

based

compensation

RMB

Tax

impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

RMB

Amortization

of intangible

assets from

business

acquisitions

RMB

Share-

based

compensation

RMB

Tax

impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

US$

Amortization

of intangible

assets from

business

acquisitions

US$

Share-

based

compensation

US$

Tax

impacts

(ii)

US$

Non-GAAP

US$

Cost of revenues

(2,309)

18,818

7,601

-

(2,324,890)

(2,781)

17,694

4,242

-

(2,020,845)

(313,070)

2,712

650

-

(309,708)

Research and

development

(292,188)

2,390

45,455

-

(244,343)

(327,295)

2,247

38,515

-

(286,533)

(50,160)

344

5,903

-

(43,913)

Sales and marketing

(725,029)

17,598

53,466

-

(653,965)

(697,722)

16,547

27,122

-

(654,053)

(106,931)

2,536

4,157

-

(100,238)

General and

administrative

(212,603)

-

60,936

-

(151,667)

(222,191)

-

87,705

-

(134,486)

(34,052)

-

13,441

-

(20,611)

Cost and operating

expenses

(3,129)

38,806

167,458

-

(3,374,865)

(3,989)

36,488

157,584

-

(3,917)

(504,213)

5,592

24,151

-

(474,470)

Income from

operations

1,415

38,806

167,458

-

1,455,679

593,597

36,488

157,584

-

787,669

90,973

5,592

24,151

-

120,716

Net income

attributable to

Momo Inc.

1,899

38,458

(9,701)

1,252,462

651,450

36,584

(9,122)

836,400

99,839

5,151

(1,398)

128,184

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

endedDecember 31,2020

GAAP

RMB

Amortization

of intangible

assets from

business

acquisitions

RMB

Share-

based

compensation

RMB

Tax

impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

RMB

Amortization

of intangible

assets from

business

acquisitions

RMB

Share-

based

compensation

RMB

Tax

impacts

(ii)

RMB

Non-GAAP

RMB

GAAP

US$

Amortization

of intangible

assets from

business

acquisitions

US$

Share-

based

compensation

US$

Tax

impacts

(ii)

US$

Non-GAAP

US$

Cost of revenues

(8,096)

73,817

23,972

-

(8,394,307)

(7,781)

73,740

18,449

-

(7,884,592)

(1,495)

11,301

2,827

-

(1,208,367)

Research and

development

(1,031)

9,375

175,053

-

(910,603)

(1,677)

9,365

175,870

-

(982,442)

(178,954)

1,435

26,953

-

(150,566)

Sales and marketing

(2,824)

69,031

196,311

-

(2,425,482)

(2,922)

68,960

158,902

-

(2,586,060)

(431,252)

10,569

24,353

-

(396,330)

General and

administrative

(1,282)

-

1,896

-

(514,386)

(763,150)

-

325,465

-

(437,685)

(116,958)

-

49,880

-

(67,078)

Cost and operating

expenses

(13,233)

152,223

1,232

-

(12,244,778)

(12,530)

152,065

678,686

-

(11,890,779)

(1,659)

23,305

104,013

-

(1,822,341)

Income from

operations

3,699

152,223

1,232

-

5,115,154

2,435

152,065

678,686

-

3,362,186

387,961

23,305

104,013

-

515,279

Net income

attributable to

Momo Inc.

2,890

152,232

(38,056)

4,493,289

2,484

152,686

(38,016)

2,896,219

322,374

23,013

(5,826)

443,866

(ii)Includes tax impacts related to the amortization of intangible assets from business acquisition.

Momo Inc.

Unaudited Condensed Segment Report

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

Three months

ended December 31,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

1,923,544

404,331

-

2,762

Value-added service

1,065,062

336,207

-

1,754

Mobile marketing

52,663

-

-

52,071

Mobile games

7,334

-

-

7,124

Other services

2,743

-

3,317

6,060

929

Total net revenues

3,051,346

740,538

3,317

3,640

Cost and expenses (iii):

Cost of revenues

(1,676,071)

(365,350)

(1,360)

(2,070)

Research and development

(243,555)

(83,740)

-

(327,160)

Sales and marketing

(361,115)

(336,558)

(49)

(697,931)

General and administrative

(202,831)

(11,891)

(7,469)

(222,052)

Total cost and expenses

(2,572)

(797,539)

(8,878)

(3,213)

Other operating income

83,110

3,945

1,330

88,546

Income (loss) from operations

650,884

(53,056)

(4,231)

593,973

Interest income

100,347

486

47

100,461

Interest expense

(19,047)

-

-

(19,919)

Other gain or loss,net

7,500

-

-

7,149

Income (loss) before income tax and

share of income on equity method

investments

739,684

(52,570)

(4,184)

682,664

Income tax (expenses) benefits

(7,565)

2,084

-

(5,481)

(840)

Income (loss) before share of income

on equity method investments

732,119

(50,486)

(4,184)

677,824

Share of loss on equity method

investments

(26,319)

-

-

(26,034)

Net income (loss)

705,800

(50,184)

651,790

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

Three months

endedDecember 31,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

2,844

1,398

-

4,242

650

Research and development

31,946

6,569

-

38,515

5,903

Sales and marketing

21,452

5,670

-

27,122

4,157

General and administrative

84,706

644

2,355

87,705

13,441

Total cost and expenses

140,948

14,281

2,355

157,584

24,151

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

endedDecember 31,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

650,884

(53,056)

(4,231)

593,597

90,973

Share-based compensation

140,948

14,281

2,355

157,151

Amortization of intangible assets from business

acquisitions

-

36,488

-

36,488

5,592

Non-GAAP income (loss) from operations

791,832

(2,287)

(1,876)

787,669

120,716

Net income (loss)

705,800

(50,486)

(4,184)

651,790

Share-based compensation

140,592

Tax impacts

-

(9,122)

-

(9,122)

(1,398)

Non-GAAP net income (loss)

846,748

(8,839)

(1,829)

836,080

128,135

Momo Inc.

Unaudited Condensed Segment Report

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

Three months

endedDecember 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$[1]

Net revenues:

Live video service

3,477

-

-

3,477

486,006

Value-added service

819,325

369,789

-

1,114

170,806

Mobile marketing

92,991

-

-

92,991

13,357

Mobile games

14,418

-

-

14,418

2,071

Other services

7,111

-

787

7,898

1,134

Total net revenues

4,317,322

369,789

787

4,898

673,374

Cost and expenses (iv):

Cost of revenues

(2,912)

(127,748)

(649)

(2,309)

(337,744)

Research and development

(205,793)

(86,395)

-

(292,188)

(41,970)

Sales and marketing

(379,940)

(345,089)

-

(725,029)

(104,144)

General and administrative

(192,789)

(13,275)

(6,539)

(212,603)

(30,539)

Total cost and expenses

(3,001,434)

(572,507)

(7,188)

(3,129)

(514,397)

Other operating income

142,613

-

33

142,646

20,490

Income (loss) from operations

1,458,501

(202,718)

(6,368)

1,415

179,467

Interest income

105,947

2,197

61

108,205

15,543

Interest expense

(20,190)

-

-

(20,190)

(2,900)

Income (loss) before income tax and

share of income on equity method

investments

1,544,258

(200,521)

(6,307)

1,430

192,110

Income tax (expenses) benefits

(265,981)

12,277

-

(253,704)

(36,442)

Income (loss) before share of income

on equity method investments

1,278,277

(188,244)

(6,726

155,668

Share of loss on equity method

investments

(31,406)

-

-

(31,406)

(4,511)

Net income (loss)

1,246,871

(188,320

151,157

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

Three months

endedDecember 31,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

6,601

-

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

[1] All translations from RMB to U.S. dollars are made at a rate of RMB 6.9618 to US$1.00,2019 as set forth in the H.10 statistical release of the Federal Reserve Board.

Momo Inc.

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

(All amounts in thousands,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

1,501

(202,718)

(6,368)

1,415

179,467

Share-based compensation

135,418

28,955

3,085

167,458

24,054

Amortization of intangible assets from business

acquisitions

-

38,806

-

38,806

5,574

Non-GAAP income (loss) from operations

1,593,919

(134,957)

(3,283)

1,679

209,095

Net income (loss)

1,871

(188,244)

(6,307)

1,320

151,157

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 Condensed Segment Report

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

Year

ended December 31,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

8,638,810

998,769

-

9,024

Value-added service

3,742,637

1,369,545

-

5,476

Mobile marketing

198,197

-

-

198,375

Mobile games

39,564

-

-

39,063

Other services

11,911

-

24,755

36,620

Total net revenues

12,631,119

2,368,314

24,755

15,558

Cost and expenses (v):

Cost of revenues

(6,865,836)

(1,816)

(22,129)

(7,495)

Research and development

(844,826)

(322,851)

(1,954)

Sales and marketing

(1,454,123)

(1,359,709)

(90)

(2,252)

General and administrative

(664,458)

(73,019)

(25,673)

(763,958)

Total cost and expenses

(9,829,243)

(2,844,395)

(47,892)

(12,659)

Other operating income

223,312

3,520

228,062

Income (loss) from operations

3,025,188

(472,136)

(21,617)

2,961

Interest income

440,878

3,353

240

444,118

Interest expense

(78,872)

-

-

(78,088)

Other gain or loss,net

1,500

-

-

1,500

230

Income (loss) before income tax

and share of income on equity

method investments

3,388,694

(468,783)

(21,377)

2,221

Income tax (expenses) benefits

(770,333)

14,713

-

(755,804)

Income (loss) before share of

income on equity method

investments

2,618,361

(454,070)

(21,417

Share of loss on equity method

investments

(42,522)

-

-

(42,517)

Net income (loss)

2,575,839

(454,900

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

Year

endedDecember 31,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Cost of revenues

15,189

3,260

-

18,449

2,827

Research and development

127,714

48,156

-

175,870

26,953

Sales and marketing

142,908

15,994

-

158,902

24,353

General and administrative

292,356

22,882

10,227

325,465

49,880

Total cost and expenses

578,167

90,292

10,227

678,686

104,013

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 31,2020

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

3,188

(472,136)

(21,617)

2,435

387,961

Share-based compensation

578,167

90,292

10,227

678,013

Amortization of intangible assets from business

acquisitions

-

152,065

-

152,065

23,305

Non-GAAP income (loss) from operations

3,603,355

(229,779)

(11,390)

3,186

515,279

Net income (loss)

2,839

(454,070)

(21,377)

2,900

Share-based compensation

578,305

Tax impacts

-

(38,016)

-

(38,016)

(5,826)

Non-GAAP net income (loss)

3,154,006

(249,729)

(11,150)

2,893,127

443,392

Momo Inc.

Unaudited Condensed Segment Report

(All amounts in thousands,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Net revenues:

Live video service

12,131

-

-

12,131

1,788,062

Value-added service

2,846,057

1,259,906

-

4,963

589,785

Mobile marketing

331,822

-

-

331,822

47,663

Mobile games

92,451

-

-

92,451

13,280

Other services

22,354

-

14,368

36,722

5,275

Total net revenues

15,740,815

1,906

14,368

17,089

2,444,065

Cost and expenses (vi):

Cost of revenues

(8,300)

(415,688)

(11,108)

(8,096)

(1,219,813)

Research and development

(797,471)

(297,560)

-

(1,031)

(157,291)

Sales and marketing

(1,521,511)

(1,162,912)

(6,401)

(2,824)

(386,513)

General and administrative

(641,269)

(851,099)

(34,914)

(1,282)

(219,380)

Total cost and expenses

(11,551)

(2,727,259)

(52,423)

(13,233)

(1,982,997)

Other operating income

323,444

-

21,399

344,843

49,534

Income (loss) from operations

5,038,708

(1,467,353)

(16,656)

3,699

510,602

Interest income

396,672

10,706

164

407,542

58,540

Interest expense

(78,611)

-

-

(78,611)

(11,292)

Other gain or loss,net

(15,711)

-

-

(15,711)

(2,257)

Income (loss) before income tax

and share of income on equity

method investments

5,341,058

(1,456,647)

(16,492)

3,919

555,593

Income tax (expenses) benefits

(917,265)

33,464

-

(883,801)

(126,950)

Income (loss) before share of

income on equity method

investments

4,423,793

(1,183)

(16,492)

2,118

428,643

Share of income on equity method

investments

(23,350)

-

-

(23,350)

(3,354)

Net income (loss)

4,400,443

(1,768

425,289

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

Year

endedDecember 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,2019

Momo

Tantan

QOOL

Total

Total

RMB

RMB

RMB

RMB

US$

Income (loss) from operations

5,708

(1,353)

(16,656)

3,699

510,602

Share-based compensation

506,758

890,664

10,232

202,279

Amortization of intangible assets from business

acquisitions

-

152,223

-

152,223

21,866

Non-GAAP income (loss) from operations

5,545,466

(424,466)

(5,846)

5,154

734,747

Net income (loss)

4,443

(1,183)

(16,492)

2,768

425,289

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

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