JOYY(US:YY)2019-05-29 06:46Financial Data and Key Metrics Changes - Total revenues increased by 47.1% year-on-year to RMB4.78 billion in Q1 2019 [5][17] - Live streaming revenues grew by 47.9% year-over-year to RMB4.49 billion, accounting for 93.8% of total net revenues [17] - GAAP net income attributable to controlling interest was RMB3.1 billion, compared to RMB963.5 million in the prior period, mainly due to a measurement gain from Bigo [21] - Non-GAAP net income attributable to controlling interest was RMB653.5 million, down from RMB713 million in the prior period [21] Business Line Data and Key Metrics Changes - Revenue from game live streaming subsidiary Huya increased by 93.4% year-over-year to RMB1.63 billion [6] - Mobile contributed 69.6% of live streaming revenues, with mobile live streaming MAUs increasing by 65.6% to 59.8 million [17] - Live streaming paying users of YY increased by 17.1% to 4.1 million in Q1 2019 [17] Market Data and Key Metrics Changes - Over 400 million average mobile MAUs in Q1 2019, with more than 75% from outside China [5] - IMO, a global video communication application, had 211.8 million MAUs, with video communication services used over 55 million times per day [7][21] - Bigo's short form video and live streaming services saw average MAUs increase by 160.6% year-over-year to 78.7 million [9] Company Strategy and Development Direction - The company aims to strengthen its global presence and enhance its AI technology capabilities [5][16] - Plans to develop IMO into a super app by embedding diverse content functions and services [8] - Focus on expanding the user base and improving monetization strategies across different platforms [33][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong growth due to the successful integration of Bigo and ongoing globalization efforts [5][16] - The company anticipates net revenues for Q2 2019 to be between RMB6 billion and RMB6.2 billion, representing a year-over-year increase of 59% to 64.3% [22] - Management highlighted the importance of AI technology in enhancing user experience and content management [25][26] Other Important Information - Gross profit increased by 31.4% year-over-year to RMB1.62 billion, with a gross margin of 33.9% [18] - Operating expenses rose significantly due to increased sales and marketing efforts and R&D investments [19][20] Q&A Session Summary Question: How will the company utilize its global user data for products in the next few years? - Management emphasized the application of AI technology in content management and user experience enhancement [24][25][26] Question: Can management provide a breakdown of the second quarter guidance and Bigo's operating metrics? - Management indicated that the guidance includes contributions from YY, Huya, and Bigo, with Bigo's ARPU being high in the Middle East but lower in other emerging markets [29][30][31] Question: What is the full-year outlook for YY Life and Hago's monetization progress? - Management noted that YY Life's revenue grew over 10% in Q1 and expects similar patterns to continue throughout the year [35][36] Question: What are the challenges faced in overseas markets and the strategy for IMO? - Management highlighted the importance of localized marketing strategies and the potential for IMO to evolve into a super app [45][46][48] Question: How does the company envision marketing efforts abroad and the margin outlook? - Management stated that performance-based advertising will be a key strategy, with expectations of better ROI in foreign markets [51][52][54]