MOMO Q2 2018 Earnings Report — Hello Group Inc. Revenue & Financial Results | Market Cap Arena

Hello Group Inc.MOMO

Q2 2018 Earnings

Reported August 23, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2018	Q1 2018	Q2 2017	QoQ Change	YoY Change
Revenue	$478M	$399M	$310M	19.8%	54.3%
Op. Income	$121M	$134M	$66M	-10.2%	83.7%
Gross Margin	45.4%	51.8%	51.7%	-6.4pp	-6.3pp
Net Margin	23.8%	29.8%	19.5%	-6.1pp	4.3pp
EPS (Diluted)	$0.52	$0.58	$0.30	-11.1%	73.5%
Free Cash Flow	$147M	$110M	$103M	33.4%	42.5%

Revenue Flow

Item	Amount
REVENUE	$478M
Cost of Revenue	$261M
GROSS PROFIT	$217M
R&D Expenses	$24M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$72M
Other Expenses	$1
Operating Expenses	$97M
Cost & Expenses	$357M
OPERATING INCOME	$121M
Interest Income	$8M
Interest Expense	$2M
Other Income/Expenses	$23M
INCOME BEFORE TAX	$144M
Income Tax Expense	$30M
Net Income from Continuing Ops	$113M
Net Income from Discontinued Ops	$0
Other Adjustments	$1
NET INCOME	$114M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$114M
D&A	$7M
EBIT	$121M
EBITDA	$128M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$478M
Cost of Revenue	$261M
GROSS PROFIT	$217M
R&D Expenses	$24M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$72M
Other Expenses	$1
Operating Expenses	$97M
Cost & Expenses	$357M
OPERATING INCOME	$121M
Interest Income	$8M
Interest Expense	$2M
Other Income/Expenses	$23M
INCOME BEFORE TAX	$144M
Income Tax Expense	$30M
Net Income from Continuing Ops	$113M
Net Income from Discontinued Ops	$0
Other Adjustments	$1
NET INCOME	$114M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$114M
D&A	$7M
EBIT	$121M
EBITDA	$128M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$114M
Depreciation & Amortization	$7M
Stock-Based Compensation	$20M
Deferred Income Tax	$0
Other Non-Cash Items	-$2M
Change in Working Capital	$11M
OPERATING CASH FLOW	$151M
Capital Expenditure	-$4M
Acquisitions (Net)	-$276M
Purchases of Investments	-$605M
Sales/Maturities of Investments	$735M
Other Investing Activities	$138M
NET CASH FROM INVESTING	-$150M
Net Debt Issuance	$280M
Common Stock Repurchased	$0
Common Dividends Paid	$0
Other Financing Activities	-$149.5K
NET CASH FROM FINANCING	$290M
FREE CASH FLOW	$147M
Net Change in Cash	$264M

Balance Sheet

Item	Amount
Cash & Equivalents	$297M
Short-Term Investments	$403M
Net Receivables	$33M
Inventory	$346M
Other Current Assets	$346M
TOTAL CURRENT ASSETS	$1.1B
PP&E (Net)	$47M
Goodwill	$607M
Intangible Assets	$157M
Long-Term Investments	$60M
Tax Assets	$3M
Other Non-Current Assets	$16M
TOTAL NON-CURRENT ASSETS	$890M
TOTAL ASSETS	$2.0B
Account Payables	$65M
Short-Term Debt	$0
Deferred Revenue	$58M
Other Current Liabilities	$91M
TOTAL CURRENT LIABILITIES	$331M
Long-Term Debt	$291M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$39M
Other Non-Current Liabilities	$4M
TOTAL NON-CURRENT LIABILITIES	$334M
TOTAL LIABILITIES	$665M
Common Stock	$1.4B
Additional Paid-In Capital	$0
Retained Earnings	$0
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	-$455.1K
TOTAL STOCKHOLDERS' EQUITY	$1.4B
Minority Interest	$0
TOTAL EQUITY	$1.4B
TOTAL LIABILITIES & EQUITY	$2.0B
Total Debt	$291M
Net Debt	-$6M