Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $540 million, representing a 6.4% increase quarter-over-quarter [5][23] - Live streaming revenue reached $388 million, up 3.5% from Q2, marking two consecutive quarters of growth [5][24] - BIGO Ads generated $104 million in revenue, with a year-over-year growth of 33.1% [5][23] - Non-GAAP operating income was $41 million, up 16.6% year-over-year [5][28] - Non-GAAP EBITDA reached $51 million, reflecting a 16.8% increase year-over-year [5][28] - Operating cash flow for the quarter was $73 million, with a net cash position of $3.3 billion as of September 30 [5][28] Business Line Data and Key Metrics Changes - Live streaming revenues from BIGO segment were $367.7 million, contributing to the overall live streaming revenue growth [24][25] - Non-live streaming revenues totaled $151.7 million, up 27.3% year-over-year, now accounting for 28.1% of total group revenues [25][26] - BIGO Ads' advertising revenues increased by 33.1% year-over-year and 19.7% quarter-over-quarter [17][25] - The number of paying users for BIGO increased by 0.8% quarter-over-quarter, while app usage rose by 3.4% [15][24] Market Data and Key Metrics Changes - Global average mobile MAUs reached 266 million, up 1.4% quarter-over-quarter [14] - Revenue from North America grew 22% quarter-over-quarter, while Western Europe saw a 41% increase [19] Company Strategy and Development Direction - The company aims to strengthen ecosystem synergies, enhance organizational vitality, and reject growth [6][10] - Focus on diversifying revenue streams, particularly in EdTech and SaaS, while leveraging live streaming as a cash cow [6][10] - Plans to expand BIGO Ads as an AI-powered global platform for multi-channel advertising [8][10] - Anticipates significant growth in the SaaS-based e-commerce sector through Shopline [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the live streaming business returning to steady growth in 2026 [12][32] - BIGO Ads is expected to continue its rapid growth, driven by traffic expansion and improved advertising capabilities [21][39] - The company anticipates a return to year-over-year revenue growth starting in Q4 2025 and continuing into 2026 [13][30] Other Important Information - The company has repurchased $88.6 million worth of shares as part of its capital return strategy [21][29] - The group expects consolidated operating profit to improve, benefiting shareholders in the long term [21][29] Q&A Session Summary Question: Long-term trend of the live streaming business - Management noted that the live streaming business is on a steady recovery trajectory, with expectations for year-over-year growth in 2026 [31][32] Question: Long-term strategic goals for the advertising business - Management highlighted the transformation of BIGO Ads into a global platform for performance-driven advertising, with plans for diversification and geographic expansion [34][36] Question: User and revenue trend outlook for 2026 - Management indicated strong visibility for returning to positive year-over-year revenue growth, with expectations for live streaming and advertising to maintain strong performance [39][40] Question: Shareholder return initiatives - Management confirmed a commitment to a three-year shareholder return program, with active share buybacks expected to continue [44][45]

Core Insights - JOYY Inc. reported strong Q3 2025 performance with total revenue of $540 million, a 6.4% increase quarter-over-quarter [1] - The live streaming business generated $388 million, reflecting a 3.5% quarter-over-quarter growth, marking two consecutive quarters of growth [1] - BIGO Ads, the company's advertising technology platform, achieved $104 million in revenue, a 33.1% year-over-year increase and a 19.7% quarter-over-quarter increase [1] Financial Performance - Operating profit for Q3 reached $41 million, a 16.6% year-over-year increase and a 6.1% quarter-over-quarter increase [1] - EBITDA for the quarter was $51 million, showing a 16.8% year-over-year growth and a 4.9% quarter-over-quarter growth [1] - Operating cash flow for Q3 was $73 million, with net cash standing at $3.32 billion as of September 30 [1] Shareholder Returns - From January 1 to November 14, 2025, the company repurchased and distributed approximately $237 million to shareholders [2] - Management expressed high certainty regarding the company's growth in 2026 and plans to continue share buybacks to reward shareholders [2] - The market has increased confidence in JOYY's prospects for 2026, positioning it as a "low-risk + high-potential" value stock [2]

Financial Highlights - Net revenues for Q3 2025 were US$540.2 million, a decrease from US$558.7 million in Q3 2024, but an increase of 6.4% from US$507.8 million in Q2 2025 [5][9] - Live streaming revenues were US$388.5 million, down from US$439.5 million in Q3 2024, but up 3.5% from US$375.4 million in Q2 2025 [11] - Advertising revenues increased by 29.2% to US$112.5 million from US$87.1 million in Q3 2024, and by 17.1% from US$96.1 million in Q2 2025 [12] - Other revenues rose by 22.3% to US$39.2 million from US$32.1 million in Q3 2024, and by 8.3% from US$36.2 million in Q2 2025 [13] - Operating income was US$19.6 million, up 19.1% from US$16.4 million in Q3 2024 and up 237.3% from US$5.8 million in Q2 2025 [17] - Non-GAAP EBITDA was US$50.6 million, an increase of 16.8% from US$43.3 million in Q3 2024 and up 4.9% from US$48.2 million in Q2 2025 [19] - Net income from continuing operations attributable to controlling interest was US$62.0 million, a 2.3% increase from US$60.6 million in Q3 2024 [20] - Net cash as of September 30, 2025, was US$3,320.9 million, compared to US$3,275.9 million as of December 31, 2024 [23] Business Highlights - Global average mobile MAUs reached 266.2 million in Q3 2025, down from 272.4 million in Q3 2024, but up 1.4% from 262.5 million in Q2 2025 [5] - Live streaming revenues from BIGO were US$367.7 million, marking a 3.5% increase from the previous quarter [11] - Total paying users of BIGO rose by 0.8% quarter-over-quarter to 1.50 million, with ARPPU increasing by 3.4% to US$222.6 [5] - The company implemented AI-powered improvements in content distribution and payment experiences, enhancing user interactions and viewing times [6] - BIGO Ads achieved approximately 33.1% year-over-year and 19.7% quarter-over-quarter revenue growth, driven by traffic expansion and algorithm optimization [8][10] Outlook and Shareholder Returns - For Q4 2025, the company expects net revenues to be between US$563 million and US$578 million [25] - The company distributed US$147.9 million in cash dividends and repurchased US$88.6 million worth of shares from January 1, 2025, to November 14, 2025 [8] - A quarterly dividend of US$0.97 per ADS has been declared for Q4 2025, expected to be paid on January 13, 2026 [28][29]

Core Viewpoint - JOYY Inc. plans to release its third quarter 2025 financial results on November 19, 2025, after the U.S. market closes, followed by an earnings conference call [1] Group 1: Earnings Release Details - The earnings conference call is scheduled for 9:00 PM U.S. Eastern Time on November 19, 2025 [1] - Participants can pre-register for the conference call using a provided link and will receive dial-in numbers and a unique PIN via email [2] - A live and archived webcast of the conference call will be available on the Company's investor relations website [2] Group 2: Company Overview - JOYY Inc. is a leading global technology company focused on enriching lives through technology [3] - The company has a diversified product portfolio that includes live streaming, short-form videos, instant messaging, and emerging initiatives like advertising and smart commerce SaaS [3] - JOYY has been listed on NASDAQ since November 2012 and operates globally from its headquarters in Singapore [3]

Core Insights - DBS Bank highlights that advertising technology is a mature application of AI, offering the highest return on investment in AI capital expenditures [1] Industry Summary - The global mobile app advertising market is projected to grow at a 9% compound annual growth rate (CAGR), reaching $534 billion by fiscal year 2029 [1] - Game, e-commerce, and other vertical applications (including social media) are expected to account for approximately 20%, 50%, and 30% of the market, respectively [1] - The demand for third-party advertising platforms, such as JOYY Inc. (欢聚集团), is increasing due to their strong AI bidding capabilities and higher advertising ROI, allowing them to capture market share in a fragmented environment [1] - The globalization of Asian gaming, e-commerce, and short video apps is providing strong momentum for the growth of third-party advertising platforms [1] Company Summary - JOYY Inc. is expanding its global advertising technology and cross-border e-commerce SaaS, with ample cash reserves and a high dividend yield providing a margin of safety for investors [1] - The rapidly growing advertising business further strengthens market bullish expectations for JOYY Inc. [1] - DBS Bank is optimistic about JOYY Inc.'s value and growth combination, noting that as of Q2 2025, the company holds $3.3 billion in net cash, covering a market capitalization greater than 100% [1] - JOYY Inc. plans to return up to $900 million to shareholders from 2025 to 2027, including $600 million in dividends (approximately 6% dividend yield) and up to $300 million in share buybacks (about 3% of market capitalization) [1] - The live streaming revenue continues to serve as a "cash cow," maintaining stability [1]

Core Viewpoint - CITIC Securities has initiated coverage on JOYY Inc. (欢聚集团) with a "Buy" rating and set a target price of $97 for 2026, indicating significant upside potential from the current stock price [1] Group 1: Value Proposition - JOYY's current market capitalization is below its net cash on the balance sheet, which is approximately $3.3 billion as of Q2 2025 [1] - The company has announced a shareholder return plan for 2025-2027, including a share buyback of about $300 million and cash dividends of approximately $600 million ($50 million per quarter), resulting in an annualized shareholder return rate of around 10% [1] - The traditional live streaming business has stabilized after adjustments, with expectations of providing steady cash inflows in the future [1] Group 2: Growth Potential - The global third-party programmatic advertising market is experiencing rapid growth, with companies like Applovin and Mobvista showing strong performance [1] - JOYY's BIGO Ads platform benefits from its own data accumulated through a pan-entertainment and e-commerce ecosystem, allowing it to compete in third-party data with lower customer acquisition costs [1] - The advertising business is still in the early stages of accelerated growth, and analysts are optimistic about the rapid expansion of the third-party advertising business, which could drive a shift in the company's investment profile from value to growth [1][2] Group 3: Business Performance - JOYY's fundamentals are improving, with overseas live streaming business stabilizing quarter-on-quarter and overseas advertising business showing significant year-on-year growth [2] - As advertising business volume increases and profitability rebounds, JOYY is expected to undergo a valuation reassessment [2]

Summary of Earnings Preview for China Internet and Other Services Industry Overview - The report focuses on the China Internet and Other Services sector, particularly highlighting companies involved in gaming and entertainment, such as Damai Entertainment, 37 Interactive Entertainment, G-bits, Perfect World, IQIYI, JOYY, Huya, and Focus Media [2][10]. Key Company Insights Damai Entertainment (1060.HK) - Forecasted 27% YoY total revenue growth in 1HF26, driven by 90% growth in IP business and 13% growth in offline entertainment [3]. - Expected net profit growth of 45% YoY [3]. 37 Interactive Entertainment (002555.SZ) - Anticipated 14% YoY revenue growth and 30% YoY adjusted net profit growth, attributed to new game releases [4]. G-bits (603444.SS) - Forecast aligns with preliminary announcements, with a focus on deferred revenue and 2026 pipelines [4]. Perfect World (002624.SZ) - Expected 34% revenue growth with a shift from a net loss of Rmb189 in 3Q24 to a net profit of Rmb326 in 3Q25 [5]. IQIYI (IQ.O) - Total revenue expected to be largely flat QoQ (-7% YoY), with a forecasted non-GAAP operating loss of Rmb23 million [6]. - Membership revenue projected to increase by 3% QoQ [6]. JOYY (JOYY.O) - Total revenue expected to grow 6% QoQ (-4% YoY), with net income remaining flat [7]. - Focus on advertising revenue and expense control [7]. Huya (HUYA.N) - Anticipated total revenue rebound in 3Q25 with an 11% YoY increase and a narrowing net loss [7]. Focus Media (002027.SZ) - Forecasted revenue growth of 4% YoY, driven by stronger demand from internet advertisers [8]. - Expected net profit growth of 10% YoY [8]. Financial Metrics and Projections - **Damai Entertainment**: Total revenue projected at Rmb3,879 million for 1HF26, with a normalized net profit margin of 12.8% [14]. - **37IE**: Revenue expected at Rmb4,674 million for 3Q25, with a gross margin of 79% [15]. - **G-bits**: Revenue forecasted at Rmb1,631 million for 3Q25, with a gross margin of 92% [17]. - **Perfect World**: Revenue expected at Rmb1,766 million for 3Q25, with a gross margin of 65% [18]. - **IQIYI**: Total revenues projected at Rmb6,688 million for 3Q25, with a gross profit margin of 18% [20]. - **Huya**: Total revenues expected at USD 1,710 million for 3Q25, with a gross profit margin of 13% [21]. - **JOYY**: Total revenues projected at USD 537 million for 3Q25, with a gross margin of 36% [24]. Additional Insights - The report emphasizes the importance of management comments on revenue growth momentum and normalized margin levels across companies [3][4][5]. - The potential for upside surprises in revenue growth for several companies, particularly in the context of new game releases and advertising demand, is highlighted [12][13]. - The overall industry view remains attractive, with a focus on the evolving landscape and potential regulatory impacts [10]. This summary encapsulates the key points from the earnings preview, providing a comprehensive overview of the anticipated performance and strategic focus of the highlighted companies within the China Internet and Other Services sector.

Core Insights - Morgan Stanley has raised its target price for JOYY to US$62 from US$40, indicating improving fundamentals in JOYY's core business, accelerating advertising growth, and attractive shareholder returns [1] Business Performance - JOYY's live-streaming business may have bottomed out since 2Q25, with a reported 1% quarter-over-quarter growth and positive management comments on revenue growth, expecting further improvement in 2H25 and more growth in 2026-2027 [2] - The advertising business is projected to be the main growth driver in 2026-2027, with strong revenue momentum in the first half of 2025, following over 175% year-over-year growth in 2024. Forecasts include 26% year-over-year growth in 2H25 and 20% in 2026 [3] Shareholder Returns - JOYY has announced a three-year quarterly dividend policy totaling approximately US$600 million, along with a share repurchase program of up to US$300 million during 2025-2027. In 1H25, JOYY allocated US$135 million to dividends and share buybacks, with Morgan Stanley assuming US$300 million in annual investor returns [4]

Core Insights - BIGO Ads has successfully maintained compliance certification of the IAB Tech Lab Open Measurement SDK for five consecutive years, underscoring its leadership in transparency and standardization in the programmatic advertising industry [1][4]. Group 1: Compliance and Standards - The OM SDK, developed by IAB Tech Lab, serves as a unified standard for the global programmatic advertising industry, allowing third-party verification providers to collect key metrics such as ad viewability and impression measurement [2]. - The OM SDK adheres to Media Rating Council-approved methodologies, ensuring compliance with recognized industry standards for metrics like exposure rates and viewable pixel percentages [2]. Group 2: Advertising Environment and Efficiency - BIGO Ads is dedicated to creating a verifiable and reliable advertising environment, enabling advertisers to accurately identify genuine user traffic and achieve consistent cross-platform measurement [3]. - The OM SDK facilitates one-time integration with multi-party verification, enhancing technical efficiency by eliminating redundant SDK implementations [3]. Group 3: Financial Performance - In Q2 2025, BIGO Ads reported approximately 29% year-over-year revenue growth and 9% quarter-over-quarter growth, with a nearly 80% increase in traffic compared to the second half of 2024, indicating strong growth momentum [4]. Group 4: Global Presence and Industry Engagement - BIGO Ads is expanding its global presence and recently participated in DMEXCO 2025, Europe's largest digital marketing and programmatic advertising event, to share insights on programmatic advertising growth [5].

Core Viewpoint - JOYY Inc. (欢聚) has seen a significant increase in its stock price, reaching a new high since May 2021, driven by strong revenue growth in its non-live streaming business and overall positive financial performance in Q2 [1] Financial Performance - JOYY's Q2 revenue reached $508 million, reflecting a quarter-over-quarter growth of 2.7% [1] - Live streaming revenue was $375.4 million, with a quarter-over-quarter increase of 1.1% [1] - Non-live streaming business revenue grew by 25.6% year-over-year, contributing to 26.1% of total revenue, an increase of 7.4 percentage points year-over-year [1] Stock Performance - The stock closed at $62.04, up 3.62%, marking the highest closing price in over four years [1] - Pre-market trading showed a further increase to $62.66, up 1% [1] - The stock has a market capitalization of $3.187 billion [1]