JOYY(US:YY)2021-05-28 03:10Financial Data and Key Metrics Changes - JOYY's total revenue for Q1 2021 increased by 88.1% year-over-year to $643 million, exceeding market expectations [6][24] - Revenue from Bigo grew by 92.5% year-over-year to $581 million, with paying users increasing by 72.1% to 1.67 million [6][24] - Gross profit rose by 119.8% year-over-year to $200.2 million, with gross margin improving to 31.1% from 26.6% [25][28] - GAAP net loss from continuing operations was $87.3 million, compared to $62.3 million in the same period of 2020 [28] Business Line Data and Key Metrics Changes - Bigo Live's MAU grew by 9% year-over-year to 29.1 million, with revenue increasing by 106.2% year-over-year [12][24] - Likee's MAUs declined by 12.6% year-over-year to 115 million, but its revenue multiplied by 4.2 times year-over-year [16][24] - HAGO's MAUs were 13.1 million, with revenue increasing by 66.8% year-over-year [18][24] Market Data and Key Metrics Changes - Revenue from Europe grew by 227.8% year-over-year, with paying users increasing by 118.9% [13] - Revenue from the Eastern Pacific region grew by 147.5%, with paying users increasing by 63.2% [13] - Revenue from the Middle East grew by 46.1%, with paying users increasing by 39.9% [13] Company Strategy and Development Direction - The company aims to enhance its competitive edge through globalization and localization strategies, focusing on short-form video and live streaming [6][7] - JOYY plans to continue augmenting its localized content ecosystem and empower users with video production tools [9][10] - The company is exploring new business opportunities in cross-border e-commerce and cloud-based audio and video enterprise services [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Bigo's growth potential, indicating that it could achieve four to five times the revenue of YY Live in the near future [34] - The company is adjusting its advertising strategy to prioritize content ecosystem development over aggressive market share acquisition [35] - Management acknowledged geopolitical risks but emphasized compliance with local regulations and a diversified server network to mitigate these risks [46][47] Other Important Information - JOYY plans to distribute a dividend of $0.51 per ADS for Q1 2021, expected to be paid on June 28, 2021 [29] - The company has repurchased approximately $196.8 million of its shares as part of its share repurchase program [29] Q&A Session Summary Question: Management changes at Bigo and impact on operations - Management confirmed personnel changes at Bigo to better execute long-term strategies, emphasizing confidence in global market potential [34] Question: Update on the Baidu deal regarding YY Live - Management stated that the sale of YY Live to Baidu has been substantially completed, with customary matters still in progress [38] Question: Content cost trends and margin outlook - Management indicated that reduced advertising spending will be redirected to R&D and content ecosystem development, expecting improved operating margins for Bigo [40][41] Question: Monetization strategies and geopolitical risks - Management highlighted live streaming as a promising monetization tool and acknowledged challenges in advertising revenue, while emphasizing compliance with local regulations to mitigate geopolitical risks [44][46]