Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2024

2024-12-10 Hello Group Inc. HaiPress

BEIJING,Dec. 9,2024 -- Hello Group Inc. (NASDAQ: MOMO) ("Hello Group" or the "Company"),a leading player in mainland China's online social networking space,today announced its unaudited financial results for the third quarter of 2024.

Third Quarter of 2024 Highlights

Net revenues decreased by 12.1% year over year to RMB2,674.7 million (US$381.1 million*) in the third quarter of 2024.

Netincome attributable to Hello Group Inc. decreased to RMB449.4 million (US$64.0 million) in the third quarter of 2024,from RMB546.4 million in the same period of 2023.

Non-GAAP net income attributable to Hello Group Inc. (note 1) decreased to RMB493.3 million (US$70.3 million) in the third quarter of 2024,from RMB605.9 million in the same period of 2023.

Diluted net income per American Depositary Share ("ADS") was RMB2.46 (US$0.35) in the third quarter of 2024,compared to RMB2.75 in the same period of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB2.70 (US$0.38) in the third quarter of 2024,compared to RMB3.05 in the same period of 2023.

Monthly Active Users ("MAU") on Tantan app were 12.0 million in September 2024,compared to 15.7 million in September 2023.

For theMomo app total paying users was 6.9 million for the third quarter of 2024,compared to 7.8 million for the same period last year. Tantan had 0.9 million paying users for the third quarter of 2024 compared to 1.4 million from the year ago period.

First Nine Months of 2024 Highlights

Net revenues decreased by 11.9% year over year to RMB7,926.5 million (US$1,129.5 million) for the first nine months of 2024.

Net income attributable to Hello Group Inc. was RMB852.3 million (US$121.5 million) for the first nine months of 2024,compared to RMB1,505.1 million during the same period of 2023.

Non-GAAP net income attributable to Hello Group Inc. (note 1) was RMB1,002.4 million (US$142.8 million) for the first nine months of 2024,710.0 million during the same period of 2023.

Diluted net income per ADS was RMB4.51(US$0.64) for the first nine months of 2024,compared to RMB7.52 during the same period of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB5.31(US$0.76) for the first nine months of 2024,compared to RMB8.53 during the same period of 2023.

"Q3 2024 was a fruitful quarter for us. We delivered satisfactory financial results and executed well against our strategic priorities across all business lines," commented Yan Tang,Chairman and CEO of Hello Group. " Our overseas business reaccelerated growth thanks to improved operational efficiency. Our team made good progress in advancing the localization process and expanding our product offering. This gives us more confidence to continue to invest firmly in more diversified overseas markets."

* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rate solely for the convenience of readers. Unless otherwise noted,all translations from Renminbi to U.S. dollars,in this press release,were made at a rate of RMB7.0176 to US$1.00,the effective noon buying rate for September 30,2024 as set forth in the H.10 statistical release of the Federal Reserve Board.

Third Quarter of 2024 Financial Results

Net revenues

Total net revenues were RMB2,674.7 million (US$381.1 million) in the third quarter of 2024,a decrease of 12.1% from RMB3,042.8 million in the third quarter of 2023.

Live video service revenues were RMB1,286.4 million (US$183.3 million) in the third quarter of 2024,a decrease of 16.0% from RMB1,530.8 million during the same period of 2023. The decrease was primarily attributable to our proactive operational adjustments to de-emphasize large scale competition events in the Momo app and a soft consumer sentiment in the current macro environment,and to a lesser degree,Tantan pivoting away from the less dating-centric live video service.

Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. Total value-added service revenues were RMB1,356.3 million (US$193.3 million) in the third quarter of 2024,a decrease of 7.5% from RMB1,466.7 million during the same period of 2023. The decrease was primarily due to our product adjustments to improve Momo app's ecosystem as well as the impact of the macro economy on consumer sentiment,and to a lesser extent,the decline in Tantan's paying users which was in turn due to the decline in user base and the short-term impact of the product upgrade on new user paying conversions. The decrease was partially offset by the revenue growth from the new standalone apps.

Mobile marketing revenues were RMB30.7 million (US$4.4 million) in the third quarter of 2024,compared to RMB30.7 million during the same period of 2023.

Net revenues from the Momo segment decreased from RMB2,743.1 million in the third quarter of 2023 to RMB2,462.3 million (US$350.9 million) in the third quarter of 2024,primarily due to the decrease in net revenues from value-added service and live video service on Momo app. The decrease was partially offset by the revenue growth of the new standalone apps. Net revenues from the Tantan segment decreased from RMB295.0 million in the third quarter of 2023 to RMB212.1 million (US$30.2 million) in the third quarter of 2024,mainly due to the decrease in net revenues from live video service and value-added service.

Cost and expenses

Cost and expenses were RMB2,286.2 million (US$325.8 million) in the third quarter of 2024,a decrease of 7.1% from RMB2,461.1 million in the third quarter of 2023. The decrease was primarily attributable to: (a) a decrease in revenue sharing with broadcasters related to live video service on Momo app and Tantan app,and a decrease in revenue sharing with virtual gift recipients of virtual gift service on Momo app. The decrease was partially offset by an increase in revenue sharing with virtual gift recipients for new standalone apps; and (b) a decrease in salary expenses and share-based compensation expenses,due to our continuous optimization in personnel costs and the newly granted share options which had lower fair value.

Non-GAAP cost and expenses (note 1) were RMB2,242.2 million (US$319.5 million) in the third quarter of 2024,a decrease of 6.6% from RMB2,401.6 million during the same period of 2023.

Income from operations

Income from operations was RMB410.7 million (US$58.5 million) in the third quarter of 2024,compared to RMB621.8 million during the same period of 2023. Income from operations of the Momo segment was RMB397.5 million (US$56.7 million) in the third quarter of 2024,which decreased from RMB618.6 million in the third quarter of 2023. Income from operations of the Tantan segment was RMB14.7 million (US$2.1 million) in the third quarter of 2024,which decreased from RMB24.0 million in the third quarter of 2023.

Non-GAAP income from operations (note 1) was RMB454.7 million (US$64.8 million) in the third quarter of 2024,compared to RMB681.2 million during the same period of 2023. Non-GAAP income from operations of the Momo segment was RMB441.0 million (US$62.8 million) in the third quarter of 2024,which decreased from RMB674.5 million in the third quarter of 2023. Non-GAAP income from operations of the Tantan segment was RMB15.2 million (US$2.2 million) in the third quarter of 2024,compared to RMB27.6 million in the third quarter of 2023.

Income tax expenses

Income tax expenses were RMB95.3 million (US$13.6 million) in the third quarter of 2024,compared to RMB158.1 million in the third quarter of 2023. The decrease in income tax expenses was primarily due to the lower profit in the third quarter of 2024,lower withholding tax rate due to our eligibility for a preferential tax rate since the beginning of the year.

Net income

Net income was RMB449.4 million (US$64.0 million) in the third quarter of 2024,compared to RMB542.2 million during the same period of 2023. Net income from the Momo segment was RMB436.4 million (US$62.2 million) in the third quarter of 2024,compared to RMB540.0 million in the same period of 2023. Net income from the Tantan segment was RMB14.4 million (US$2.1 million) in the third quarter of 2024,compared to RMB23.0 million in the third quarter of 2023.

Non-GAAP net income (note 1) was RMB493.3 million (US$70.3 million) in the third quarter of 2024,compared to RMB601.6 million during the same period of 2023. Non-GAAP net income from the Momo segment was RMB479.9 million (US$68.4 million) in the third quarter of 2024,which decreased from RMB595.9 million in the third quarter of 2023. Non-GAAP net income of the Tantan segment was RMB14.9 million (US$2.1 million) in the third quarter of 2024,compared to RMB26.6 million in the third quarter of 2023.

Net income attributable to Hello Group Inc.

Net income attributable to Hello Group Inc. was RMB449.4 million (US$64.0 million) in the third quarter of 2024,compared to RMB546.4 million during the same period of 2023.

Non-GAAP net income (note 1) attributable to Hello Group Inc. was RMB493.3 million (US$70.3 million) in the third quarter of 2024,compared to RMB605.9 million during the same period of 2023.

Net income per ADS

Diluted net income per ADS was RMB2.46 (US$0.35) in the third quarter of 2024,compared to RMB2.75 in the third quarter of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB2.70 (US$0.38) in the third quarter of 2024,compared to RMB3.05 in the third quarter of 2023.

Cash and cash flow

As of September 30,2024,the Company's cash,cash equivalents,short-term deposits,long-term deposits,short-term restricted cash and long-term restricted cash totaled RMB14,782.2 million (US$2,106.4 million),compared to RMB13,478.5 million as of December 31,2023.

Net cash provided by operating activities in the third quarter of 2024 was RMB341.0 million (US$48.6 million),compared to RMB582.5 million in the third quarter of 2023.

First Nine Months of 2024 Financial Results

Net revenues for the first nine months of 2024 were RMB7,129.5 million),a decrease of 11.9% from RMB8,999.4 million in the same period of 2023.

Net income attributable to Hello Group Inc. was RMB852.3 million (US$121.5 million) for the first nine months of 2024,710.0 million during the same period of 2023.

Diluted net income per ADS was RMB4.51 (US$0.64) during the first nine months of 2024,compared to RMB7.52 in the same period of 2023.

Non-GAAP diluted net income per ADS (note 1) was RMB5.31 (US$0.76) during the first nine months of 2024,compared to RMB8.53 in the same period of 2023.

Net cash provided by operating activities was RMB1,216.4 million (US$173.3 million) during the first nine months of 2024,861.3 million in the same period of 2023.

Recent Development

Share repurchase program

On June 7,2022,Hello Group's board of directors authorized a share repurchase program under which the Company may repurchase up to US$200 million of its shares up to June 6,2024 (the "Share Repurchase Program"). On March 14,Hello Group's board of directors approved to amend the Share Repurchase Program to (i) extend the term of the Share Repurchase Program up to June 30,2026,and (ii) upsize the Share Repurchase Program so that the Company is authorized to,from time to time,acquire up to an aggregate of US$286.1 million worth of its shares in the form of ADSs and/or the ordinary shares of the Company in the open market and through privately negotiated transactions,in block trades and/or through other legally permissible means,depending on market conditions and in accordance with applicable rules and regulations.

As of December 9,the Company has repurchased 40.0 million ADSs for US$238.4 million on the open market under Share Repurchase Program announced on June 7,2022 and amended on March 14,at an average purchase price of US$5.94 per ADS.

Business Outlook

For the fourth quarter of 2024,the Company expects total net revenues to be between RMB2.56 billion to RMB2.66 billion,representing a decrease of 14.7% to 11.4% year over year. This forecast reflects the Company's current and preliminary views on the market and operational conditions,which are subject to change.

Note 1: Non-GAAP measures

To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"),we,Hello Group,use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and such adjustment has no impact on income tax.

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

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

Our non-GAAP information (including non-GAAP cost and operating expenses,income (loss) from operations,net income (loss),net income attributable to Hello Group Inc.,and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation and such adjustment has no impact on income tax. A limitation of using these non-GAAP financial measures is that share-based compensation has been and will continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for such limitation by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.

Conference Call

Hello Group's management will host an earnings conference call on Monday,December 9,at7:00 a.m.U.S. Eastern Time (8:00 p.m. Beijing/Hong KongTime on December 9,2024).

Participants can register for the conference call by navigating to:

https://s1.c-conf.com/diamondpass/10043397-w4b3f5.html.

Upon registration,each participant will receive details for the conference call,including dial-in numbers,conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.

A telephone replay of the call will be available after the conclusion of the conference call through December 16,2024. The dial-in details for the replay are as follows:

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

Hong Kong: 800-930-639

Passcode: 10043397

Additionally,a live and archived webcast of the conference call will be available on the Investor Relations section of Hello Group's website at https://ir.hellogroup.com.

About Hello Group Inc.

We are a leading player in mainland China's online social networking space. ThroughMomo,Tantan and other properties within our product portfolio,we enable users to discover new relationships,expand their social connections and build meaningful interactions.Momois a mobile application that connects people and facilitates social interactions based on location,interests and a variety of online recreational activities. Tantan,which was added into our family of applications through acquisition inMay 2018,is a leading social and dating application. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. Starting from 2019,we have incubated a number of other new apps,such as Hertz,Soulchill,and Duidui,which target more niche markets and more selective demographics.

For investor and media inquiries,please contact:

Hello Group Inc.

Investor Relations

Phone: +86-10-5731-0538

Email: ir@hellogroup.com

Christensen

In China

Ms. Xiaoyan Su

Phone: +86-10-5900-1548

E-mail: Xiaoyan.Su@christensencomms.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: linda.bergkamp@christensencomms.com

Safe Harbor Statement

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933,as amended,and Section 21E of the Securities Exchange Act of 1934,and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes,our financial outlook for the fourth quarter of 2024,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 third quarter of 2024 are preliminary,unaudited and subject to audit adjustment. In addition,we may not meet our financial outlook for the fourth quarter of 2024 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. Moreover,there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate,including those relating to our ability to retain and grow our user base,our ability to attract and retain sufficiently trained professionals to support our operations,our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers,the market price of the Company's stock prevailing from time to time,the nature of other investment opportunities presented to the Company from time to time,the Company's cash flows from operations,general economic conditions,and other factors. For additional information on these and other important factors that could adversely affect our business,financial condition,results of operations,and prospects,please see our filings with the U.S. Securities and Exchange Commission.

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

Hello Group 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

2023

2024

2023

2024

RMB

US$

RMB

US$

Net revenues:

Live video service

1,530,797

1,286,442

183,317

4,548,986

3,828,003

545,486

Value-added service

1,466,727

1,356,270

193,267

4,327,678

3,995,962

569,420

Mobile marketing

30,705

30,735

4,380

88,762

99,320

14,153

Mobile games

7,864

14,169

432

Other services

6,754

1,217

173

19,796

2,758

393

Total net revenues

3,042,847

2,674,664

381,137

8,999,391

7,926,475

1,129,514

Cost and expenses:

Cost of revenues

(1,771,530)

(1,623,723)

(231,379)

(5,255,277)

(4,722,520)

(672,954)

Research and development

(201,693)

(196,382)

(27,984)

(653,145)

(581,741)

(82,897)

Sales and marketing

(373,942)

(354,881)

(50,570)

(1,110,253)

(1,013,081)

(144,363)

General and administrative

(113,896)

(111,174)

(15,842)

(376,981)

(364,037)

(51,875)

Total cost and expenses

(2,461,061)

(2,160)

(325,775)

(7,395,656)

(6,681,379)

(952,089)

Other operating income,net

39,971

22,221

3,166

99,284

50,988

7,266

Income from operations

621,757

410,725

58,528

1,703,019

1,296,084

184,691

Interest income

96,791

134,875

19,220

311,899

386,919

55,136

Interest expense

(19,293)

(34,809)

(4,960)

(41,671)

(91,000)

(12,967)

Other gain or loss,net

4,565

(43,870)

(6,251)

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

method investments

699,255

510,791

72,788

1,977,812

1,133

220,609

Income tax expenses

(158,064)

(95,298)

(13,580)

(446,646)

(755,525)

(107,661)

Income before share of income (loss)on equity method

investments

541,191

415,493

59,208

1,531,166

792,608

112,948

Share of income (loss) on equity method investments

974

33,876

4,827

(31,940)

59,730

8,511

Net income

542,165

449,369

64,035

1,499,226

852,338

121,459

Less: net loss attributable to non-controlling interest

(4,263)

(5,886)

Net income attributable to the shareholders of Hello Group Inc.

546,428

449,505,112

852,459

Net income per share attributable to ordinary shareholders

Basic

1.44

1.29

0.18

3.98

2.36

0.34

Diluted

1.37

1.23

0.18

3.76

2.26

0.32

Weighted average shares used in calculating net income per ordinary

Basic

379,292,110

347,943,851

347,851

378,085,030

361,613,017

361,017

Diluted

398,690

365,942,405

365,405

405,490,366

377,697,017

377,017

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

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

Three months

First nine months

Ended September 30

2023

2024

2023

2024

RMB

US$

RMB

US$

Net income

542,459

Other comprehensive income (loss),net of tax:

Foreign currency translation adjustment

6,032

(287,150)

(40,919)

116,188

(190,687)

(27,173)

Comprehensive income

548,197

162,219

23,116

1,615,414

661,651

94,286

Less: comprehensive (loss) income attributed to the non-

controlling interest

(3,141)

(6,400)

(912)

5,377

(2,114)

(301)

Comprehensive income attributable to Hello Group Inc.

551,338

168,619

24,028

1,610,037

663,765

94,587

Hello Group Inc.

Unaudited Condensed Consolidated Balance Sheets

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

December 31

September 30

2023

2024

RMB

US$

Assets

Current assets

Cash and cash equivalents

5,620,466

3,301,235

470,422

Short-term deposits

1,270,626

2,840,310

404,741

Restricted cash

10,147

4,084,937

582,099

Accounts receivable,net of allowance for doubtful accounts of

RMB12,780 and RMB12,490 as of December 31,2023 and September

30,respectively

201,517

186,374

26,558

Amounts due from related parties

7,258

Prepaid expenses and other current assets

723,364

1,008,208

143,668

Total current assets

7,833,378

11,421,064

1,627,488

Long-term deposits

3,924,975

3,354,400

477,998

Long-term restricted cash

2,652,299

1,201,311

171,185

Right-of-use assets,net

109,572

288,193

41,067

Property and equipment,net

659,033

879,996

125,398

Intangible assets,net

17,086

13,247

1,888

Rental deposits

12,962

13,257

1,889

Long-term investments

786,911

783,521

111,651

Amounts due from RPT-non current

20,000

Other non-current assets

180,052

161,702

23,042

Deferred tax assets

31,741

35,938

5,121

Total assets

16,228,009

18,152,629

2,586,727

Liabilities and equity

Current liabilities

Accounts payable

616,681

608,607

86,723

Deferred revenue

442,805

443,036

63,132

Accrued expenses and other current liabilities

630,617

600,435

85,561

Amounts due to related parties

4,314

Lease liabilities due within one year

60,008

154,969

22,083

Income tax payable

94,719

93,432

13,314

Deferred consideration in connection with business acquisitions

27,261

26,945

3,840

Convertible Senior Notes-current

19,394

2,764

Long-term borrowings,current portion

215,615

1,938,385

276,218

Short-term borrowings

2,365,535

337,086

Total current liabilities

2,092,020

6,250,738

890,721

Deferred tax liabilities

24,987

323,362

46,079

Convertible Senior Notes

19,571

Long-term borrowings

1,385

Lease liabilities

52,171

142,803

20,349

Other non-current liabilities

114,085

130,359

18,576

Total liabilities

4,241,219

6,847,262

975,725

Shareholder's equity (i)

11,986,790

11,305,367

1,611,002

Total liabilities and shareholder's equity

16,727

(i): As of September 30,the number of ordinary shares outstanding was 344,219,472.

Hello Group Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

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

Three months

First nine months

Ended September 30

2023

2024

2023

2024

RMB

US$

RMB

US$

Cash flows from operating activities:

Net income

542,165

449,369

64,035

1,226

852,338

121,459

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation of property and equipment

17,467

13,144

1,873

59,098

40,979

5,839

Amortization of intangible assets

1,279

182

3,837

547

Share-based compensation

59,472

43,951

6,264

204,877

150,079

21,385

Share of (income) loss on equity method investments

(974)

(33,876)

(4,827)

31,940

(59,730)

(8,511)

Gain on repurchase of convertible senior notes

(4,565)

Cash received on distributions from equity method investments

718

2,067

1,197

171

Loss on long-term investments

43,870

6,251

Gain or loss on disposal of property and equipment

(60)

(142)

(20)

(520)

(62)

(9)

Provision of (income) loss on receivable and other assets

(133)

1,754

250

10,071

3,675

524

Changes in operating assets and liabilities:

Accounts receivable

10,749

(3,876)

(552)

(9,916)

11,952

1,703

Prepaid expenses and other current assets

(96,572)

(97,212)

(13,853)

98,294

(91,846)

(13,088)

Amounts due from related parties

(27,114)

(27,059)

Rental deposits

1,301

493

2,252

(309)

(44)

Deferred tax assets

415

(117)

(17)

872

(4,195)

(598)

Other non-current assets

(50,578)

22,270

(27,639)

(183,398)

(26,134)

Accounts payable

6,987

16,036

2,285

38,825

(15,710)

(2,239)

Income tax payable

24,215

35,209

5,017

20,496

(1,288)

(184)

Deferred revenue

11,736

(838)

(119)

(11,137)

568

Accrued expenses and other current liabilities

15,374

(3,390)

(483)

(172,186)

61,357

8,743

Amount due to related parties

(8,401)

(5,504)

Deferred tax liabilities

47,681

(85,088)

(12,125)

130,198

294,333

41,942

Other non-current liabilities

26,741

(18,688)

(2,663)

17,757

108,705

15,490

Net cash provided by operating activities

582,468

340,953

48,587

1,861,284

1,216,352

173,328

Cash flows from investing activities:

Purchase of property and equipment

(238,219)

(19,796)

(2,821)

(259,463)

(263,814)

(37,593)

Payment for long-term investments

(28,000)

(3,990)

(9,000)

(33,250)

(4,738)

Purchase of short-term deposits

(531,214)

(2,133,086)

(303,962)

(1,028,556)

(2,962)

Cash received on maturity of short-term deposits

1,900,000

5,409,820

1,081,016

154,044

Cash received on investment income distribution

1,517

Purchase of long-term deposits

(2,498,860)

(3,848,860)

(718,860)

(102,437)

Cash received on maturity of long-term deposits

1,700,000

1,000

718,860

102,437

Cash received from sales of long-term investment

15,000

2,000

285

Loan to a third-party company

(96,680)

(13,777)

(96,777)

Other investing activities

137

212

1,822

895

128

Net cash provided by (used in) investing activities

346,844

(2,277,350)

(324,520)

1,982,280

(1,442,919)

(205,613)

Cash flows from financing activities:

Proceeds from exercise of share options

551

570

Repurchase of ordinary shares

(58,767)

(265,441)

(37,825)

(62,004)

(772,263)

(110,047)

Repurchase of subsidiary's share options

(223)

(4,319)

Dividends payment

(937,249)

(716,302)

(102,072)

Proceeds from short-term borrowings

1,033,900

147,330

2,086

Proceeds from long-term borrowings

2,154,000

2,000

Repayment of long-term borrowings

(215,400)

(30,694)

(215,615)

(30,725)

Payment for redemption of convertible bonds

(86,932)

(2,679,942)

Net cash provided by (used in) financing activities

2,629

553,063

78,812

(1,528,944)

661,372

94,244

Effect of exchange rate changes

(7,837)

(178,773)

(25,478)

128,597

(130,234)

(18,559)

Net increase (decrease) in cash and cash equivalents

2,930,104

(1,562,107)

(222,599)

2,443,217

304,571

43,400

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

4,711,714

10,149,590

1,446,305

5,198,601

8,282,912

1,180,306

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

7,641,818

8,587,483

1,223,706

7,706

Hello Group Inc.

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(All amounts in thousands,except per share data)

Reconciliation of Non-GAAP cost and operating expenses,income from operations,and net income to comparable GAAP measures.

Three months

Ended September 30,2023

Ended September 30,2024

GAAP

Share-based

compensation

Non-GAAP

GAAP

Share-based

compensation

Non-GAAP

GAAP

Share-based

compensation

Non-GAAP

RMB

US$

Cost of revenues

(1,530)

1,211

(1,770,319)

(1,723)

2,143

(1,621,580)

(231,379)

305

(231,074)

Research and development

(201,693)

14,993

(186,700)

(196,382)

11,030

(185,352)

(27,984)

1,573

(26,411)

Sales and marketing

(373,942)

5,854

(368,088)

(354,881)

4,774

(350,107)

(50,570)

680

(49,890)

General and administrative

(113,896)

37,414

(76,482)

(111,174)

26,004

(85,170)

(15,842)

3,706

(12,136)

Cost and operating expenses

(2,061)

59,472

(2,401,589)

(2,160)

43,951

(2,242,209)

(325,775)

6,264

(319,511)

Income from operations

621,757

59,472

681,229

410,725

43,951

454,676

58,528

6,264

64,792

Net income attributable to Hello Group Inc.

546,428

59,472

605,900

449,369

43,951

493,320

64,035

6,264

70,299

Hello Group 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

Ended September 30,2024

GAAP

Share-based

compensation

Non-GAAP

GAAP

Share-based

compensation

Non-GAAP

GAAP

Share-based

compensation

Non-GAAP

RMB

US$

Cost of revenues

(5,277)

4,398

(5,879)

(4,520)

5,821

(4,716,699)

(672,954)

829

(672,125)

Research and development

(653,145)

51,186

(601,959)

(581,741)

33,328

(548,413)

(82,897)

4,749

(78,148)

Sales and marketing

(1,253)

20,413

(1,089,840)

(1,081)

15,040

(998,041)

(144,363)

2,143

(142,220)

General and administrative

(376,981)

128,880

(248,101)

(364,037)

95,890

(268,147)

(51,875)

13,664

(38,211)

Cost and operating expenses

(7,656)

204,877

(7,190,779)

(6,379)

150,079

(6,300)

(952,089)

21,385

(930,704)

Income from operations

1,019

204,877

1,907,896

1,084

150,079

1,163

184,691

21,385

206,076

Net income attributable to Hello Group Inc.

1,112

204,709,989

852,338

150,002,417

121,459

21,385

142,844

Hello Group Inc.

Unaudited Condensed Segment Report

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

Three months

Ended September 30,2024

Momo

Tantan

QOOL

Total

RMB

US$

Net revenues:

Live video service

1,890

66,552

1,317

Value-added service

1,115

137,155

1,267

Mobile marketing

22,368

8,367

30,380

Other services

899

318

1,217

173

Total net revenues

2,462,272

212,074

318

2,137

Cost and expenses (ii):

Cost of revenues

(1,523,515)

(100,171)

(37)

(1,379)

Research and development

(160,161)

(36,221)

(196,984)

Sales and marketing

(298,630)

(55,033)

(1,218)

(354,570)

General and administrative

(103,438)

(7,175)

(561)

(111,842)

Total cost and expenses

(2,744)

(198,600)

(1,816)

(2,775)

Other operating income

21,021

1,200

22,166

Income (loss) from operations

397,549

14,674

(1,498)

410,528

Interest income

134,605

268

134,220

Interest expense

(34,809)

(34,960)

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

investments

497,345

14,942

(1,496)

510,788

Income tax expenses

(94,777)

(521)

(95,580)

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

402,568

14,421

(1,496)

415,208

Share of income on equity method investments

33,876

33,827

Net income (loss)

436,444

14,496)

449,035

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

Three months

Ended September 30,2024

Momo

Tantan

QOOL

Total

RMB

US$

Cost of revenues

2,143

305

Research and development

10,533

497

11,030

1,573

Sales and marketing

4,774

680

General and administrative

26,002

26,004

3,706

Total cost and expenses

43,452

499

43,951

6,264

Hello Group 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 September 30,2024

Momo

Tantan

QOOL

Total

RMB

US$

Income (loss) from operations

397,549

14,674

(1,498)

410,725

58,528

Share-based compensation

43,452

499

43,264

Non-GAAP income (loss) from

operations

441,001

15,173

(1,498)

454,676

64,792

Net income (loss)

436,444

14,421

(1,496)

449,035

Share-based compensation

43,264

Non-GAAP net income (loss)

479,896

14,920

(1,496)

493,320

70,299

Hello Group Inc.

Unaudited Condensed Segment Report

(All amounts in thousands,2023

Momo

Tantan

QOOL

Total

RMB

US$[1]

Net revenues:

Live video service

1,410,844

119,953

1,797

209,813

Value-added service

1,298,329

168,398

1,727

201,031

Mobile marketing

24,039

6,666

30,705

4,208

Mobile games

7,864

1,078

Other services

1,981

4,773

6,754

927

Total net revenues

2,743,057

295,017

4,773

3,847

417,057

Cost and expenses (iii):

Cost of revenues

(1,606,261)

(145,346)

(19,923)

(1,530)

(242,808)

Research and development

(151,649)

(50,044)

(201,693)

(27,644)

Sales and marketing

(298,919)

(71,978)

(3,045)

(373,942)

(51,253)

General and administrative

(105,339)

(5,656)

(2,901)

(113,896)

(15,611)

Total cost and expenses

(2,162,168)

(273,024)

(25,869)

(2,061)

(337,316)

Other operating income,net

37,750

1,985

236

39,971

5,478

Income (loss) from operations

618,639

23,978

(20,860)

621,757

85,219

Interest income

96,680

96,791

13,266

Interest expense

(19,293)

(2,644)

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

method investments

696,026

24,072

(20,843)

699,255

95,841

Income tax expenses

(156,992)

(1,072)

(158,064)

(21,664)

Income (loss) before share of income on equity method

investments

539,034

23,000

(20,843)

541,191

74,177

Share of income on equity method investments

974

133

Net income (loss)

540,008

23,843)

542,165

74,310

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

Three months

Ended September 30,2023

Momo

Tantan

QOOL

Total

RMB

US$

Cost of revenues

1,207

1,211

166

Research and development

11,401

3,592

14,993

2,055

Sales and marketing

5,854

802

General and administrative

37,406

37,414

5,128

Total cost and expenses

55,868

3,604

59,472

8,151

[1] All translations from RMB to U.S. dollars are made at a rate of RMB7.2960 to US$1.00,the effective noon buying rate for September 29,2023 as set forth in the H.10 statistical release of the

Federal Reserve Board.

Hello Group Inc.

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

(All amounts in thousands,2023

Momo

Tantan

QOOL

Total

RMB

US$

Income (loss) from operations

618,639

23,978

(20,860)

621,757

85,219

Share-based compensation

55,868

3,604

59,472

8,151

Non-GAAP income (loss) from

operations

674,507

27,582

(20,860)

681,229

93,370

Net income (loss)

540,008

23,000

(20,843)

542,165

74,310

Share-based compensation

55,151

Non-GAAP net income (loss)

595,876

26,604

(20,843)

601,637

82,461

Hello Group Inc.

Unaudited Condensed Segment Report

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

First nine months

Ended September 30,2024

Momo

Tantan

QOOL

Total

RMB

US$

Net revenues:

Live video service

3,590,747

237,256

3,486

Value-added service

3,573,860

422,102

3,420

Mobile marketing

71,397

27,923

99,153

Mobile games

432

Other services

1,915

843

2,758

393

Total net revenues

7,238,351

687,281

843

7,514

Cost and expenses (iv):

Cost of revenues

(4,408,264)

(314,217)

(39)

(4,954)

Research and development

(462,202)

(119,539)

(581,897)

Sales and marketing

(836,410)

(171,988)

(4,683)

(1,363)

General and administrative

(339,578)

(23,744)

(715)

(364,875)

Total cost and expenses

(6,046,454)

(629,488)

(5,437)

(6,089)

Other operating income

49,037

1,925

50,266

Income (loss) from operations

1,240,934

59,718

(4,568)

1,691

Interest income

386,340

573

386,136

Interest expense

(91,000)

(91,net

(43,870)

(43,251)

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

investments

1,492,404

60,291

(4,562)

1,609

Income tax expenses

(753,721)

(1,804)

(755,661)

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

738,683

58,487

(4,562)

792,948

Share of income on equity method investments

59,730

59,511

Net income (loss)

798,413

58,562)

852,459

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

First nine months

Ended September 30,2024

Momo

Tantan

QOOL

Total

RMB

US$

Cost of revenues

5,817

5,821

829

Research and development

28,496

4,832

33,328

4,749

Sales and marketing

15,040

2,143

General and administrative

95,874

95,890

13,664

Total cost and expenses

145,227

4,852

150,079

21,385

Hello Group Inc.

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

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

First nine months

Ended September 30,2024

Momo

Tantan

QOOL

Total

RMB

US$

Income (loss) from operations

1,934

59,718

(4,568)

1,084

184,691

Share-based compensation

145,227

4,852

150,385

Non-GAAP income (loss) from

operations

1,386,161

64,570

(4,163

206,076

Net income (loss)

798,413

58,487

(4,562)

852,459

Share-based compensation

145,385

Non-GAAP net income (loss)

943,640

63,339

(4,417

142,844

Hello Group Inc.

Unaudited Condensed Segment Report

(All amounts in thousands,2023

Momo

Tantan

QOOL

Total

RMB

US$

Net revenues:

Live video service

4,144,164

404,822

4,986

623,490

Value-added service

3,821,183

506,495

4,678

593,158

Mobile marketing

75,730

13,032

88,762

12,166

Mobile games

14,169

1,942

Other services

14,577

5,219

19,713

Total net revenues

8,069,823

924,349

5,219

8,391

1,233,469

Cost and expenses (v):

Cost of revenues

(4,765,127)

(469,111)

(21,039)

(5,277)

(720,296)

Research and development

(483,997)

(169,148)

(653,145)

(89,521)

Sales and marketing

(894,462)

(210,208)

(5,583)

(1,253)

(152,173)

General and administrative

(349,614)

(19,600)

(7,767)

(376,981)

(51,670)

Total cost and expenses

(6,493,200)

(868,067)

(34,389)

(7,656)

(1,660)

Other operating income

95,876

3,110

298

99,284

13,608

Income (loss) from operations

1,672,499

59,392

(28,872)

1,019

233,417

Interest income

311,157

656

311,899

42,749

Interest expense

(41,671)

(5,711)

Other gain or loss,net

4,565

626

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

investments

1,946,550

60,048

(28,786)

1,812

271,081

Income tax expenses

(443,175)

(3,471)

(446,646)

(61,218)

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

1,503,375

56,577

(28,166

209,863

Share of loss on equity method investments

(31,940)

(4,378)

Net income (loss)

1,471,435

56,226

205,485

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

First nine months

Ended September 30,2023

Momo

Tantan

QOOL

Total

RMB

US$

Cost of revenues

4,262

136

4,398

603

Research and development

36,793

14,393

51,186

7,016

Sales and marketing

20,408

20,413

2,798

General and administrative

128,856

128,880

17,664

Total cost and expenses

190,319

14,558

204,877

28,081

Hello Group Inc.

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

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

First nine months

ended September 30,2023

Momo

Tantan

QOOL

Total

RMB

US$

Operating income (loss)

1,499

59,392

(28,872)

1,019

233,417

Share-based compensation

190,319

14,558

204,877

28,081

Non-GAAP operating income (loss)

1,862,818

73,950

(28,896

261,498

Net income (loss)

1,435

56,577

(28,786)

1,226

205,485

Share-based compensation

190,081

Non-GAAP net income (loss)

1,661,754

71,135

(28,704,103

233,566

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Hello Group Inc. Announces Unaudited Financial Results for the Third Quarter of 2024

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