JOYY(US:YY)2019-03-05 08:57Financial Data and Key Metrics Changes - Total revenues for Q4 2018 increased by 28% year-over-year to RMB4.64 billion, exceeding previous guidance [8][14] - Live streaming revenues grew by 30.4% year-over-year to RMB4.39 billion, accounting for 94.6% of total revenues [14][15] - Gross profit for Q4 2018 increased by 13.8% year-over-year to RMB1.63 billion, with a gross margin of 35.1% compared to 39.4% in the prior year [16] - GAAP net income attributable to YY was RMB684 million, down from RMB740.4 million in the prior year [17][18] - Non-GAAP net income attributable to YY was RMB836.2 million, compared to RMB932.1 million in the prior period [18] Business Line Data and Key Metrics Changes - Revenue from game live streaming subsidiary Huya increased by 100.31% year-over-year to RMB1.5 billion [8] - Mobile live streaming monthly active users increased by 18.1% to 90.4 million, while live streaming paying users increased by 36.6% to 8.9 million [8][15] - Mobile contributed 64% of live streaming revenues [15] Market Data and Key Metrics Changes - Bigo's total MAUs reached around 69 million at the end of 2018, with rapid growth expected throughout 2019 [31] - HAGO, a casual game-oriented social media platform, reached 20.9 million monthly active users and topped app charts in Indonesia and Vietnam [10] Company Strategy and Development Direction - The acquisition of Bigo is seen as a significant milestone, enhancing YY's globalization strategy and expanding its global footprint [6][8] - Focus on international expansion, content upgrades, and AI technology enhancement to drive future growth [9][12] - Plans to diversify content offerings and improve monetization capabilities through advanced AI technology [12][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the live streaming market's potential, particularly in overseas markets [25][28] - The company anticipates continued growth in user engagement and monetization through strategic partnerships and product innovations [45][61] - Despite macroeconomic challenges, the live streaming sector remains resilient, with user stickiness increasing [59] Other Important Information - The company expects Q1 2019 net revenues to be between RMB4.01 billion and RMB4.16 billion, representing a year-over-year increase of 23.4% to 28% [20] - R&D expenses as a percentage of revenue are projected to increase from 5% to 7% in 2019, reflecting a focus on AI technology development [51] Q&A Session Summary Question: Strategies for overseas expansion post-Bigo acquisition - Management highlighted Bigo's focus on overseas expansion and the synergies between Bigo Live and LIKE, emphasizing the promising future of the live streaming business internationally [22][24] Question: Bigo financials and scalability - Management noted that Bigo's MAUs are growing rapidly, but specific financial details are still being streamlined [30][31] Question: AI investment and related areas - The company plans to focus on content understanding, recommendation systems, and internal management through AI technology, with increased R&D expenses anticipated [34][41] Question: Domestic business outlook and traffic acquisition - Management indicated that while international expansion is key, efforts to attract new traffic domestically will continue, with a focus on new product launches and partnerships [43][45] Question: Competition in the overseas market - Management acknowledged competition from TikTok but expressed confidence in LIKE's competitive position due to its unique features and user experience [53][55] Question: Macro impact on domestic business - Management stated that the live streaming industry is less impacted by economic slowdowns, with user engagement remaining strong [59]