JOYY(US:YY)2022-11-29 13:45Financial Data and Key Metrics Changes - JOYY recorded revenues of $586.7 million in Q3 2022, down from $650.5 million in the same period of 2021, primarily due to macroeconomic uncertainties and unfavorable exchange rates [7][25] - Non-GAAP net profit for the group was $76.9 million, with a non-GAAP net margin of 13.1%, compared to $35.1 million and 5.4% in Q3 2021 [7][29] - BIGO segment achieved a non-GAAP net profit of $84.1 million, with a non-GAAP net margin of 17.4%, up from 8.7% in the prior year [29] Business Line Data and Key Metrics Changes - Bigo Live's MAUs increased by 14.2% year-over-year to 45.4 million, with significant growth in Europe and Southeast Asia [10][13] - Likee's operating loss was reduced by 86% compared to the same period last year, indicating progress in narrowing losses [17] - Hago's livestreaming revenue and number of paying users both increased year-over-year, with a significant revenue increase of 409% sequentially from Hago Space [20][21] Market Data and Key Metrics Changes - Bigo Live's MAUs in Europe and the Middle East increased by 9.8% and 7.8% respectively, while Southeast Asia saw a 19.2% increase year-over-year [13] - The company noted that macro uncertainties such as inflation and currency fluctuations are negatively affecting user spending sentiment across various markets [8][34] Company Strategy and Development Direction - JOYY aims to prioritize sustainable, high-quality growth while enhancing operational efficiencies, focusing on product upgrades and localized content offerings [9][22] - The company is committed to a globalization strategy, enhancing international and localized operational capabilities to mitigate risks from relying on any single market [12] - JOYY plans to continue cultivating diverse premium content and innovating interactive product features to improve user experience and community growth [11][22] Management Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic challenges but expressed confidence in the company's resilience and ability to capture long-term growth opportunities [9][22] - The company expects Q4 2022 revenues to be between $594 million and $619 million, reflecting limited visibility due to macroeconomic uncertainties [32] - Management highlighted the importance of adapting to shifting market conditions and focusing on high-quality growth despite external challenges [31][34] Other Important Information - JOYY repurchased $14.1 million of its shares in Q3 2022, with a total of $342 million repurchased under a $1.2 billion program [21][30] - The company plans to distribute a dividend of $0.51 per ADS for Q3 2022, reflecting its commitment to returning value to shareholders [30] Q&A Session Summary Question: Q4 revenue guidance breakdown and geographic trends - Management noted that macro uncertainties are affecting user sentiment, but operational activities in Q4, including BIGO's Annual Gala, are expected to offset some negative impacts [33][34] Question: Progress on cost discipline and margin outlook for 2023 - Management reported improved margins in Q3 2022, with BIGO achieving a non-GAAP net margin of 17.4%, and emphasized ongoing cost optimization efforts [36][37] Question: User growth outlook for next year - Management indicated that Bigo Live's user growth has been organic and effective, with plans to continue enhancing monetization capabilities for Likee and Hago [39][40] Question: Impact of the World Cup on operations - Management acknowledged potential negative impacts on user engagement but also highlighted opportunities for special content activities related to the World Cup [41][43] Question: Geopolitical risks and cash usage plans - Management stated that geopolitical risks are a normal operational factor for global companies and emphasized a balanced approach to cash usage, prioritizing core business investments and shareholder returns [44][46][47]