JOYY Inc. (NASDAQ:YY) Q4 2023 Earnings Conference Call March 18, 2024 9:00 PM ET Company Participants Jane Xie - Senior Manager, Investor Relations David Li - Chairman of the Board, Director and CEO Alex Liu - Vice President, Finance Conference Call Participants Yiwen Zhang - China Renaissance Alex Poon - Morgan Stanley Brian Gong - Citi Henry Sun - JP Morgan Operator Ladies and gentlemen, thank you for standing by. And welcome to the JOYY Inc.’s Fourth Quarter and Full Year 2023 Earnings Call. At this time ...

SINGAPORE, March 18, 2024 /PRNewswire/ -- JOYY Inc. (NASDAQ: YY) ("JOYY" or the "Company"), a global leading technology company, announced its unaudited financial results for the fourth quarter and full year of 2023.During the fourth quarter, JOYY's revenue came in at US$570 million. The Company's core business segment BIGO generated revenues of US$491 million, up 3.1% year over year. For the full year of 2023, JOYY's revenue reached US$2.27 billion, with BIGO contributing US$1.92 billion. Due to continue ...

SINGAPORE, March 19, 2024 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ:YY) ("JOYY" or the "Company"), a global technology company, today announced its unaudited financial results for the fourth quarter and full year of 2023. Fourth Quarter 2023 Financial Highlights1 Net revenues were US$569.8 million, compared to US$604.9 million in the corresponding period of 2022.Net income attributable to controlling interest of JOYY2 was US$45.8 million, compared to net loss of US$377.5 million in the corresponding period of 2 ...

SINGAPORE, March 07, 2024 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ:YY) ("JOYY" or the "Company," formerly known as YY Inc.), a global technology company, today announced that it plans to release its fourth quarter and full year 2023 financial results after the U.S. market closes on March 18, 2024. The Company's management will host an earnings conference call at 9:00 PM U.S. Eastern Time on Monday, March 18, 2024 (9:00 AM Singapore/Hong Kong Time on Tuesday, March 19, 2024). Details for the conference call are ...

Core Viewpoint - The "Mass Village Evening" events in Xinjiang are a vibrant expression of local culture and community spirit, showcasing the rich traditions and aspirations of the residents as they celebrate the Lunar New Year [1][3]. Group 1: Event Overview - The "Mass Village Evening" in Moyu County features performances by local residents, highlighting the festive atmosphere and cultural pride [1][3]. - The event includes a variety of performances such as dragon and lion dances, and traditional folk dances, creating a lively celebration despite the cold weather [3]. - The series of events lasts nearly three months, with performances rotating among different towns and streets, incorporating local customs and sports activities [3]. Group 2: Cultural Significance - The "Mass Village Evening" reflects the cultural needs of the villagers, showcasing their desire for a better quality of life and cultural engagement [3]. - The events serve as a platform for villagers to express their talents and creativity, fostering a sense of community and cultural identity [3][4]. - The participation of diverse ethnic groups in the celebrations illustrates the unity and vibrancy of the local culture in the region [3].

Core Viewpoint - JOYY's stock experienced a 60% increase in the last seven months of 2023, driven by strong buybacks and improved net income margins despite declining sales. However, the cancellation of Baidu's acquisition of YY Live has led to a 25% decline in JOYY's stock year-to-date in 2024 [1][2]. Group 1: Baidu Deal Cancellation - The $3.6 billion acquisition deal between Baidu and JOYY for YY Live was initially agreed upon in November 2020 but was never finalized due to regulatory issues from the Chinese State Administration for Market Regulation (SAMR) [3][5]. - Baidu had been operating YY Live as if it owned it for nearly three years, but the deal's cancellation has ended the uncertainty surrounding it, potentially allowing JOYY to pursue legal avenues for a cash payout from Baidu [6][10]. - JOYY is expected to receive approximately $700 million in offshore cash from Baidu, which could be used for share buybacks, alongside a potential $500 million from a spinoff of YY Live [12][13]. Group 2: JOYY's Business Segments - Bigo Live, JOYY's primary business, has shown growth with 40.3 million monthly active users, contributing 81% of JOYY's sales and virtually all profits, with 94.5% of livestreaming sales coming from Bigo Live [14][15]. - JOYY's sales from its Chinese business have significantly declined, indicating a strategic shift towards international markets [16]. - Shopline, an e-commerce platform in which JOYY holds a 70.4% stake, is projected to grow sales over 30% per year from 2022 to 2024, although it is still in the early stages of scaling [21][23]. Group 3: Financial Position and Capital Allocation - JOYY has a strong cash position with $3.8 billion on its balance sheet, which will be impacted by the return of $1.9 billion from Baidu due to the deal's cancellation [32]. - The company has returned $1.38 billion to investors through buybacks from 2020 to Q3 2023, with plans to continue enhancing shareholder returns through share buybacks [28][30]. - JOYY's management has indicated a preference for buybacks over dividends, especially given the current low valuation of the stock [30][29]. Group 4: Valuation and Market Outlook - JOYY is currently trading at 10.5 times its 2024 EPS estimates, with potential upside driven by its cash position, expected cash from Baidu, and the valuation of Shopline [33][34]. - The market cap of JOYY could realistically reach $6.3 billion if all cash is offshore, representing over 150% upside from its current valuation [34].

JOYY Inc. (NASDAQ:YY) Q3 2023 Earnings Conference Call November 29, 2023 9:00 PM ET Company Participants Jane Xie - Senior Manager, Investor Relations David Xueling Li - Chairman and CEO’ Ting Li - Chief Operating Officer Alex Liu - Vice President, Finance Conference Call Participants Thomas Chong - Jefferies Brian Gong - Citi Yiwen Zhang - China Renaissance Lei Zhang - Bank of America Securities Operator Ladies and gentlemen, thank you for standing by. And welcome to the JOYY Incorporates’ Third Quarter 20 ...

[Third Quarter 2023 Highlights](index=1&type=section&id=Third%20Quarter%202023%20Highlights) JOYY achieved solid performance in Q3 2023 with a slight year-over-year decrease in total revenue but a year-over-year increase in Non-GAAP net income, driven by strong user growth in Bigo Live Q3 2023 Key Financial Metrics | Metric | Q3 2023 (Million USD) | Q3 2022 (Million USD) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Net Revenues | 567.1 | 586.7 | -3.3% | | Net Income Attributable to JOYY Inc. Shareholders (GAAP) | 72.9 | 515.3 | -85.8% | | Net Income Attributable to JOYY Inc. Shareholders (Non-GAAP) | 81.2 | 76.9 | +5.6% | Q3 2023 Key Operating Metrics | Metric | Q3 2023 | Q3 2022 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Global Average Mobile MAU | 276.8 million | 269.8 million | +2.6% | | Bigo Live Average Mobile MAU | 40.3 million | 35.4 million | +14.0% | | Likee Average Mobile MAU | 41.0 million | 50.6 million | -19.0% | | BIGO Paying Users | 1.61 million | 1.51 million | +6.6% | | BIGO Average Revenue Per Paying User (USD) | 253.4 | 259.8 | -2.5% | - The significant year-over-year decrease in GAAP net income was primarily due to a one-time gain from the revaluation of equity investments recorded in the prior year period[8](index=8&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Chairman and CEO Mr. David Xueling Li highlighted the solid third-quarter results, with continued recovery in BIGO segment revenue, profit, and user engagement - BIGO segment revenue increased by **2.2% year-over-year** and **4.9% quarter-over-quarter** in the third quarter, indicating a sustained recovery trend[3](index=3&type=chunk) - Core product Bigo Live's MAU grew **14.0% year-over-year** to **40.3 million**, with healthy growth in paying users and improved average revenue per paying user quarter-over-quarter[3](index=3&type=chunk) - The company is committed to shareholder returns, having cumulatively returned **$355.4 million** to shareholders through dividends and share repurchases in the first three quarters of 2023, including **$43.5 million** in share repurchases during the third quarter[3](index=3&type=chunk) [Third Quarter 2023 Detailed Financial Results](index=2&type=section&id=Third%20Quarter%202023%20Financial%20Results) In Q3 2023, the company's net revenues were $567.1 million, a 3.3% year-over-year decrease, with a decline in live streaming revenues partially offset by strong 62.1% growth in other revenues [Net Revenues](index=2&type=section&id=Net%20Revenues) Third-quarter net revenues were $567.1 million, a 3.3% year-over-year decrease, primarily due to a decline in live streaming revenues partially offset by strong growth in other revenues Q3 2023 Revenue Composition | Revenue Category | Q3 2023 (Million USD) | Q3 2022 (Million USD) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Live Streaming Revenues | 495.8 | 542.8 | -8.7% | | Other Revenues | 71.3 | 44.0 | +62.1% | | **Total Net Revenues** | **567.1** | **586.7** | **-3.3%** | [Cost of Revenues and Gross Profit](index=2&type=section&id=Cost%20of%20Revenues%20and%20Gross%20Profit) Third-quarter cost of revenues decreased by 2.3% year-over-year to $357.9 million, resulting in a gross profit of $209.2 million and a slight decrease in gross margin to 36.9% Q3 2023 Gross Profit Analysis | Metric | Q3 2023 (Million USD) | Q3 2022 (Million USD) | | :--- | :--- | :--- | | Cost of Revenues | 357.9 | 366.5 | | Gross Profit | 209.2 | 220.2 | | Gross Margin | 36.9% | 37.5% | [Operating Expenses and Income](index=2&type=section&id=Operating%20Expenses%20and%20Income) Total operating expenses decreased year-over-year to $191.3 million in the third quarter, with reduced sales and marketing expenses offset by increased research and development expenses Q3 2023 Operating Expenses Breakdown | Expense Category | Q3 2023 (Million USD) | Q3 2022 (Million USD) | | :--- | :--- | :--- | | Research and Development Expenses | 71.6 | 61.2 | | Sales and Marketing Expenses | 92.5 | 96.8 | | **Total Operating Expenses** | **191.3** | **202.2** | Q3 2023 Operating Income | Metric | Q3 2023 (Million USD) | Q3 2022 (Million USD) | | :--- | :--- | :--- | | Operating Income (GAAP) | 12.0 | 19.8 | | Operating Margin (GAAP) | 2.1% | 3.4% | | Operating Income (Non-GAAP) | 40.4 | 43.1 | | Operating Margin (Non-GAAP) | 7.1% | 7.4% | [Net Income and EPS](index=2&type=section&id=Net%20Income%20and%20EPS) Third-quarter GAAP net income significantly decreased year-over-year due to a one-time investment gain in the prior year, while Non-GAAP net income increased by 5.6% to $81.2 million Q3 2023 Net Income and Earnings Per ADS | Metric | Q3 2023 (Million USD) | Q3 2022 (Million USD) | | :--- | :--- | :--- | | Net Income (GAAP) | 72.9 | 515.3 | | Net Margin (GAAP) | 12.9% | 87.8% | | Net Income (Non-GAAP) | 81.2 | 76.9 | | Net Margin (Non-GAAP) | 14.3% | 13.1% | | Diluted Earnings Per ADS (GAAP) | 1.86 | 6.28 | | Diluted Earnings Per ADS (Non-GAAP) | 1.22 | 0.96 | [Balance Sheet and Cash Flows](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flows) As of September 30, 2023, the company maintained a strong financial position with $3.8228 billion in cash, cash equivalents, and short-term investments, generating $72.9 million in net cash from operating activities during the third quarter - As of September 30, 2023, the company's total cash, cash equivalents, restricted cash, short-term deposits, and short-term investments amounted to **$3.8228 billion**[10](index=10&type=chunk) - In the third quarter of 2023, the company generated **$72.9 million** in net cash from operating activities[10](index=10&type=chunk)[11](index=11&type=chunk) [Business Outlook and Recent Developments](index=4&type=section&id=Business%20Outlook%20and%20Recent%20Developments) The company anticipates Q4 2023 net revenues to be between $551 million and $579 million, and its board has extended the existing share repurchase program by 12 months - The company expects its net revenues for the fourth quarter of 2023 to be between **$551 million** and **$579 million**[12](index=12&type=chunk) - The board of directors approved extending the validity of the remaining **$530 million** under the existing share repurchase program for an additional 12 months[13](index=13&type=chunk) - The company appointed Ms. Ting Li, its Chief Operating Officer, as a director of the company, effective November 30, 2023[14](index=14&type=chunk) [Appendix: Financial Statements](index=10&type=section&id=Appendix%3A%20Financial%20Statements) This section provides the company's unaudited consolidated balance sheets, statements of operations, GAAP to Non-GAAP reconciliation, and segment report, highlighting BIGO as the primary revenue and profit driver [Unaudited Condensed Consolidated Balance Sheets](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, the company's total assets were $8.449 billion, a decrease from $9.072 billion at the end of 2022, with total liabilities decreasing to $3.141 billion and total shareholders' equity at $5.286 billion Balance Sheet Key Items (As of September 30, 2023) | Item | September 30, 2023 (Billion USD) | December 31, 2022 (Billion USD) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 1.240 | 1.214 | | Total Current Assets | 4.172 | 4.645 | | Total Assets | 8.449 | 9.072 | | Total Liabilities | 3.141 | 3.569 | | Total Shareholders' Equity | 5.286 | 5.411 | [Unaudited Condensed Consolidated Statements of Operations](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The financial statements detail the company's revenues, costs, expenses, and profits for Q3 2023 compared to the prior year, showing a decrease in total net revenues and operating income Q3 2023 Statements of Operations Overview | Item | Q3 2023 (Million USD) | Q3 2022 (Million USD) | | :--- | :--- | :--- | | Total Net Revenues | 567.1 | 586.7 | | Gross Profit | 209.2 | 220.2 | | Operating Income | 12.0 | 19.8 | | Net Income | 65.1 | 509.5 | | Net Income Attributable to Controlling Interests | 72.9 | 515.3 | [Unaudited Reconciliation of GAAP and Non-GAAP Results](index=15&type=section&id=Unaudited%20Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides a detailed reconciliation from GAAP to Non-GAAP metrics, with key adjustments including share-based compensation expenses, amortization of intangible assets, and loss from disposal of a subsidiary Q3 2023 GAAP to Non-GAAP Operating Income Reconciliation | Item | Amount (Thousand USD) | | :--- | :--- | | Operating Income (GAAP) | 12,049 | | Add: Share-based Compensation Expenses | 6,297 | | Add: Amortization of Intangible Assets | 15,890 | | Add: Loss from Disposal of a Subsidiary | 6,177 | | **Operating Income (Non-GAAP)** | **40,413** | [Unaudited Segment Report](index=17&type=section&id=Unaudited%20Segment%20Report) The company's business is divided into BIGO and All Other segments, with BIGO contributing the vast majority of revenue and all operating profit in Q3 2023, underscoring its role as the core earnings engine Q3 2023 Segment Performance | Item | BIGO (Million USD) | All Other (Million USD) | Total (Million USD) | | :--- | :--- | :--- | :--- | | Total Net Revenues | 494.1 | 73.5 | 567.1 | | Operating Profit (Loss) | 68.51 | (56.46) | 12.05 | | Net Profit (Loss) | 70.24 | (5.16) | 65.08 |

JOYY Inc. (NASDAQ:YY) Q2 2023 Earnings Conference Call August 29, 2023 9:00 PM ET Company Participants Jane Xie - Senior Manager of Investor Relations David Xueling Li - Chairman and Chief Executive Officer Alex Liu - Vice President of Finance Conference Call Participants Thomas Chong - Jefferies LLC Henry Sun - JPMorgan Chase & Co. Yiwen Zhang - China Renaissance Operator Ladies and gentlemen, thank you for standing by and welcome to the JOYY Inc.'s Second Quarter 2023 Earnings Call. At this time, all part ...

Financial Performance - Net revenues for Q2 2023 were US$547.3 million, a decrease of 8.2% from US$596.1 million in Q2 2022[1] - Net income attributable to controlling interest was US$155.1 million, compared to US$18.7 million in the same period last year, resulting in a net income margin of 28.3%[8] - Gross profit was US$197.8 million with a gross margin of 36.1%, slightly down from 36.6% in Q2 2022[5] - Operating income was US$9.4 million, down from US$38.7 million in the same period last year, with an operating income margin of 1.7%[7] - Non-GAAP net income attributable to controlling interest was US$97.3 million, compared to US$51.5 million in Q2 2022, with a non-GAAP net income margin of 17.8%[8] - Total net revenues for Q2 2023 were $547,334, a decrease of 8.4% compared to $596,098 in Q2 2022[33] - Live streaming revenues in Q2 2023 were $476,981, down 15.6% from $565,239 in Q2 2022[33] - Operating income for Q2 2023 was $9,439, compared to $38,742 in Q2 2022, indicating a significant decline[33] - Net income attributable to common shareholders for Q2 2023 was $152,537, a substantial increase from $16,401 in Q2 2022[33] User Metrics - Average mobile MAUs of Bigo Live increased by 18.0% year-over-year to 38.5 million, while Likee and Hago saw declines in MAUs due to reduced user acquisition spending[2] - Total number of paying users of BIGO increased by 5.4% to 1.53 million, but average revenue per paying user decreased to US$248.0 from US$285.0[2] - The average mobile monthly active users (MAU) across JOYY's platforms, including Bigo Live, Likee, imo, and Hago, is calculated by dividing the sum of mobile active users for each month by the number of months in the period[23] Shareholder Returns - The company repurchased US$214.3 million worth of shares in Q2 2023, totaling US$299.7 million returned to shareholders in the first half of the year[3] Future Outlook - For Q3 2023, the company expects net revenues to be between US$537 million and US$567 million, reflecting current market conditions[12] Expenses and Investments - Research and development expenses for Q2 2023 were $75,540, up from $62,876 in Q2 2022, reflecting increased investment in innovation[33] - Research and development expenses for the three months ended June 30, 2023, totaled $75,540, up from $41,727 in the same period last year, representing an increase of 80.9%[45] Assets and Liabilities - JOYY's total current assets decreased from US$4.64 billion as of December 31, 2022, to US$4.15 billion as of June 30, 2023[28] - The company reported a total of US$3.57 billion in liabilities as of June 30, 2023, down from US$3.57 billion as of December 31, 2022[30] - JOYY's cash and cash equivalents decreased from US$1.21 billion as of December 31, 2022, to US$759.2 million as of June 30, 2023[28] - The total assets of JOYY decreased from US$9.07 billion as of December 31, 2022, to US$8.42 billion as of June 30, 2023[28] - Total shareholders' equity as of June 30, 2023, was $5,198,547, compared to $5,411,366 as of December 31, 2022[31] - Total liabilities, mezzanine equity, and shareholders' equity amounted to $9,071,653 as of June 30, 2023[31] Segment Performance - Total net revenues for BIGO reached $467,942 thousand, while all other segments contributed $115,716 thousand, resulting in total revenues of $583,628 thousand[51] - Gross profit for BIGO was $174,237 thousand, and for all other segments, it was $30,389 thousand, leading to a total gross profit of $204,626 thousand[51] - Operating income for BIGO was $48,190 thousand, while all other segments reported an operating loss of $45,659 thousand, resulting in a total operating income of $2,531 thousand[55] - Net income for BIGO was $43,382 thousand, compared to a net loss of $23,438 thousand for all other segments, yielding a total net income of $19,944 thousand[51] - Non-GAAP operating income for BIGO was $63,746 thousand, while all other segments reported a loss of $35,986 thousand, resulting in a total non-GAAP operating income of $27,760 thousand[55] Non-GAAP Adjustments - JOYY's non-GAAP net income attributable to controlling interest for Q2 2023 was adjusted by US$57.8 million, compared to US$32.8 million in Q2 2022[22] - JOYY's non-GAAP operating income (loss) is defined as operating income (loss) excluding share-based compensation expenses and other specified items[25] - Non-GAAP net income for the three months ended June 30, 2023, was $90,619, a significant increase from $43,092 in the same period last year, representing a growth of 109%[42] - Non-GAAP operating income for the three months ended June 30, 2023, was $34,427, compared to $59,852 in the same period last year, reflecting a decrease of 42.5%[42]