JOYY(US:YY)2023-08-29 16:00Financial 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]