JOYY(US:YY)2021-11-18 09:51Financial Data and Key Metrics Changes - Total quarterly revenues increased by 21.7% year-over-year to $651 million, with BIGO's revenue rising by 60.1% year-over-year to $569 million [5][23] - Non-GAAP net profit reached $35.1 million, marking the first non-GAAP profitability at the group level since deconsolidating YY Live [5][28] - Gross profit increased by 35.5% year-over-year to $210.8 million, with gross margin improving to 32.4% from 29.1% [25] - GAAP net income from continuing operations was $7.5 million, compared to $91 million in the same period of 2020 [27] Business Line Data and Key Metrics Changes - Bigo Live's revenue increased by 8.6% year-over-year, with MAU rising by 10.7% to 31 million [7][8] - Likee's MAU declined to $76.8 million, but live streaming revenue grew by 58.1% year-over-year, driven by the Middle East [14][15] - HAGO's live streaming revenue grew by 78.7% year-over-year, with the number of paying users increasing by 1.5 times [17] Market Data and Key Metrics Changes - Revenue from Europe for Bigo Live increased by 50.6%, while Southeast Asia and other emerging regions saw revenue growth of 29.6% and 31.7% respectively [8] - The penetration rates for live streaming remain low, indicating significant growth opportunities ahead [8] Company Strategy and Development Direction - The company is focused on globalization, diversifying content offerings, and enhancing synergy among products to improve profitability [6][20] - Plans to deepen penetration in key markets including North America, Europe, and the Middle East, while dedicating resources to emerging markets [9] - Emphasis on cultivating a community of content creators and enhancing user engagement through innovative features [12][20] Management's Comments on Operating Environment and Future Outlook - Management noted increased uncertainty due to COVID-19, impacting user behavior and monetization capabilities [36] - Q4 revenue guidance is projected between $652 million and $661 million, reflecting a year-over-year increase of 14.7% to 16.3% [31][32] - The company aims for steady growth while balancing profitability, with expectations for Bigo to remain profitable in 2022 [38][49] Other Important Information - The company announced a new share repurchase plan, allowing for the repurchase of up to $1 billion of shares to demonstrate confidence in long-term growth [21][30] - A dividend of $0.51 per ADS is expected to be paid on December 23, 2021 [29] Q&A Session Summary Question: Impact of COVID-19 on user behavior and monetization - Management acknowledged fluctuations in user engagement due to COVID-19, with some regions experiencing weakened consumer confidence affecting payment behavior [36] Question: Q4 revenue guidance and business line trends - Management expects modest increases in content costs and sales and marketing expenses in Q4, leading to slight decreases in gross margin [37] Question: New features and content for Bigo Live and Likee - Management highlighted the introduction of new features like BIGO Marketplace and Super Like, which have received positive user feedback [40][42] Question: Likee's marketing strategy and market trends - Management emphasized a shift towards private traffic and supporting KOLs to monetize their fan groups, differentiating from competitors [46][48]