Financial Data and Key Metrics Changes - The company recorded total revenue of $507.8 million, representing a quarter-over-quarter growth of 2.7% [31] - Non-GAAP operating profit reached $38.3 million, up 27.9% year-over-year, while non-GAAP EBITDA was $48.2 million, growing 25.7% year-over-year [32][38] - The company maintained a strong net cash position of $3.3 billion as of June 30, 2025 [39] Business Line Data and Key Metrics Changes - Live streaming revenue was $375.4 million, with BIGO's segment contributing $355.3 million, both stabilizing quarter-over-quarter [33] - Non-live streaming revenue was $132.4 million, up 25.6% year-over-year, now contributing 26.1% of total revenues, compared to 18.7% in the same period last year [34] - BIGO's non-live streaming revenues, primarily from advertising, increased by 29% year-over-year and 8.9% quarter-over-quarter [34] Market Data and Key Metrics Changes - Live streaming revenue from developed countries increased by 3.4% quarter-over-quarter, while revenue from Southeast Asia rose by 2.1% [33] - The advertising business achieved $87 million in revenue, representing 29% year-over-year growth and 9% quarter-over-quarter growth [21] Company Strategy and Development Direction - The company is focusing on high-quality operations, sustainable growth, AI-driven innovation, and organizational vitality as key pillars for future growth [10] - The advertising business is positioned as a second major growth engine, with plans for expansion in North America, Japan, and Europe [25][26] - The company aims to leverage AI to enhance user engagement and improve advertising algorithms [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the live streaming business, expecting continued sequential growth in the second half of the year [48] - The advertising segment is anticipated to maintain double-digit year-over-year growth, particularly as it enters a peak season [50] - Overall, the company expects consolidated operating profit to continue improving, benefiting shareholders with long-term profitable growth [28][40] Other Important Information - The company returned $49.4 million to shareholders through dividends and repurchased $36.5 million of shares during the year [39] - The introduction of non-GAAP EBITDA is aimed at providing a clearer picture of operational performance and cash flow generation [54] Q&A Session Summary Question: Long-term development trend for the live streaming business and second half outlook - Management noted that Q1 was a bottom for live streaming revenue, with Q2 showing sequential recovery driven by growth in paying users, particularly in developed countries [45][46] - For the second half, management expects continued recovery in live streaming revenue and strong growth in non-live streaming revenue due to advertising peak season [50] Question: Consideration behind the addition of non-GAAP EBITDA - Management explained that EBITDA is a core operating metric that excludes non-operational factors, providing a better proxy for cash flow generation and peer comparison [53] Question: Trend in operating expenses and profit outlook for the second half - Management indicated that while operating expenses may slightly widen, significant year-over-year improvement is expected, with overall non-GAAP operating profit and EBITDA showing an improving trend [56] Question: Drivers behind the robust growth of the advertising business - Management highlighted technical optimizations in algorithms and market opportunities as key drivers, along with proprietary data assets and synergies across business segments [58][62]