JOYY Reports First Quarter 2024 Unaudited Financial Results
JOYY (NASDAQ: YY) announced its unaudited financial results for Q1 2024. Net revenues were $564.6M, down from $583.6M in Q1 2023. Net income attributable to JOYY was $45.3M, up from $28.0M. Non-GAAP net income was $67.2M, compared to $49.9M in Q1 2023. Average mobile MAUs for Bigo Live, Likee, and Hago saw declines, while global MAUs slightly increased to 277.3M. The number of paying users grew to 1.67M. The company repurchased $54.5M worth of shares in Q1 2024. For Q2 2024, JOYY expects net revenues between $538M and $569M.
- Net income attributable to JOYY increased to $45.3M in Q1 2024, from $28.0M in Q1 2023.
- Non-GAAP net income rose to $67.2M from $49.9M in Q1 2023.
- Operating expenses decreased to $195.4M from $205.3M in Q1 2023.
- Sales and marketing expenses decreased to $94.6M from $97.6M.
- R&D expenses decreased to $69.0M from $75.8M.
- Operating income increased to $3.5M from $2.5M.
- The number of paying users grew to 1.67M from 1.57M.
- JOYY repurchased $54.5M worth of shares in Q1 2024.
- Bigo's non-livestreaming revenues grew substantially year-over-year.
- Net revenues decreased to $564.6M from $583.6M in Q1 2023.
- Live streaming revenues fell to $466.4M from $520.4M.
- Average mobile MAUs for Bigo Live decreased to 37.1M from 37.7M.
- Average mobile MAUs for Likee dropped to 37.5M from 44.9M.
- Average mobile MAUs for Hago declined to 4.5M from 5.9M.
- Gross profit decreased to $195.4M from $204.6M.
- Gross margin declined slightly to 34.6% from 35.1%.
- Average revenue per paying user dropped to $235.4 from $244.8.
Insights
Net revenues for the first quarter fell to
Gross profit margins contracted slightly from 35.1% to 34.6%. Such a contraction often signals higher costs or lower revenue efficiency. However, the company's strategic cost reductions, especially in R&D and sales/marketing, hint at a focused approach to streamline operations.
An important aspect for retail investors is the share repurchase. The company repurchased
While net revenue decline might be a red flag, the rise in net income and share repurchases are positive indicators for the long term.
The operational metrics reveal some mixed signals for JOYY. The decline in Average Mobile MAUs (Monthly Active Users) for Bigo Live, Likee and Hago suggests challenges in user acquisition, likely due to reduced advertising expenditure. This disciplined spending on ads might be prudent financially, but it can impact user base growth, which is critical for a tech company.
Interestingly, the global average MAUs still grew to 277.3 million from 272.9 million, indicating that while individual platforms faced user retention issues, the overall ecosystem remains strong. This suggests that diversification is working to some extent, allowing JOYY to sustain its broad user appeal despite setbacks in specific apps.
The increased revenue per paying user, despite a drop in the total number, underlines a focus on monetizing existing users more effectively. For retail investors, this could mean that the company is successfully enhancing user engagement and value extraction from its core user base. However, the sustainability of this model needs careful monitoring, especially if user growth continues to lag.
From a technological perspective, JOYY's strategy to expand and diversify its revenue streams, particularly in non-livestreaming avenues, is noteworthy. The 55.2% growth in 'other revenues' signifies successful adoption of alternative monetization strategies, possibly involving ads and new features that leverage the existing user base.
The decrease in R&D expenses is a double-edged sword. While it contributes to short-term profitability, it might impact long-term innovation. In the tech industry, continuous investment in R&D is important to stay competitive. The reduction could suggest a shift towards optimizing existing technologies rather than developing new ones.
For tech-savvy retail investors, the key takeaway is JOYY's ability to pivot and diversify revenue while maintaining cost efficiency. However, the reduced R&D spending could be a concern if it continues over the long haul, potentially stalling future technical advancements and competitive edge.
SINGAPORE, May 29, 2024 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”), a global technology company, today announced its unaudited financial results for the first quarter of 2024.
First Quarter 2024 Financial Highlights1
- Net revenues were US
$564.6 million , compared to US$583.6 million in the corresponding period of 2023. - Net income attributable to controlling interest of JOYY2 was US
$45.3 million , compared to US$28.0 million in the corresponding period of 2023. - Non-GAAP net income attributable to controlling interest and common shareholders of JOYY3 was US
$67.2 million , compared to US$49.9 million in the corresponding period of 2023.
First Quarter 2024 Operational Highlights
- Average mobile MAUs of Bigo Live was 37.1 million, compared to 37.7 million in the corresponding period of 2023.
- Average mobile MAUs of Likee was 37.5 million, compared to 44.9 million in the corresponding period of 2023, primarily due to disciplined spending on user acquisition via advertisement.
- Average mobile MAUs of Hago was 4.5 million, compared to 5.9 million in the corresponding period of 2023, primarily due to disciplined spending on user acquisition via advertisement.
- Global average mobile MAUs4 was 277.3 million, compared to 272.9 million in the corresponding period of 2023.
- Total number of paying users of BIGO (including Bigo Live, Likee and imo)5 was 1.67 million, compared to 1.57 million in the corresponding period of 2023.
- Average revenue per paying user of BIGO (including Bigo Live, Likee and imo)6 was US
$235.4 , compared to US$244.8 in the corresponding period of 2023.
Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “We are off to a strong start in 2024, executing on our strategic priorities and delivering results that exceeded our expectations. During the quarter, BIGO maintained its topline recovery momentum, achieving an
“Backed by our robust cash flow and strong financial position, we remain committed to returning value to our shareholders. In the first quarter of 2024, we repurchased an additional US
First Quarter 2024 Financial Results
NET REVENUES
Net revenues were US
Live streaming revenues were US
Other revenues increased by
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by
Gross profit was US
OPERATING EXPENSES AND INCOME
Operating expenses were US
Operating income was US
Non-GAAP operating income7 was US
NET INCOME
Net income attributable to controlling interest of JOYY was US
Non-GAAP net income attributable to controlling interest and common shareholders of JOYY was US
NET INCOME PER ADS
Diluted net income per ADS10 was US
Non-GAAP diluted net income per ADS11 was US
BALANCE SHEET AND CASH FLOWS
As of March 31, 2024, the Company had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of US
SHARES OUTSTANDING
As of March 31, 2024, the Company had a total of 1,186.4 million common shares outstanding, representing the equivalent of 59.3 million ADSs assuming the conversion of all common shares into ADSs.
Business Outlook
For the second quarter of 2024, the Company expects net revenues to be between US
Share Repurchase Program
During the quarter ended March 31, 2024, the Company repurchased US
Conference Call Information
The Company will hold a conference call at 9:00 PM U.S. Eastern Time on Tuesday, May 28, 2024 (9:00 AM Singapore/Hong Kong Time on Wednesday, May 29, 2024). Details for the conference call are as follows:
Event Title: JOYY Inc. First Quarter 2024 Earnings Conference Call
Conference ID: #10039137
All participants may use the link provided below to complete the online registration process in advance of the conference call. Upon registration, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique PIN by email.
PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10039137-p4bm1f.html
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.joyy.com.
The replay will be accessible through June 5, 2024, by dialing the following numbers:
| United States: | 1-855-883-1031 |
| Singapore: | 800-101-3223 |
| Hong Kong: | 800-930-639 |
| Conference ID: | #10039137 |
About JOYY Inc.
JOYY is a leading global technology company with a mission to enrich lives through technology. JOYY currently operates several social products, including Bigo Live for live streaming, Likee for short-form videos, Hago for multiplayer social networking, an instant messaging product, and others. The Company has created a highly engaging and vibrant user community for users across the globe. JOYY’s ADSs have been listed on the NASDAQ since November 2012.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this press release, as well as JOYY’s strategic and operational plans, contain forward-looking statements. JOYY may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JOYY’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JOYY’s goals and strategies; JOYY’s future business development, results of operations and financial condition; the expected growth of the global online communication social platform market; the expectation regarding the rate at which to gain active users, especially paying users; JOYY’s ability to monetize the user base; the developments in the sale of YY Live; fluctuations in global economic and business conditions; and assumptions underlying or related to any of the foregoing. A more detailed and full discussion of those risks and other potential risks is included in JOYY’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JOYY does not undertake any obligation to update any forward- looking statement, except as required under applicable law.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). JOYY uses non-GAAP operating income, non-GAAP operating (loss) margin, non-GAAP net income (loss) attributable to controlling interest of JOYY, non-GAAP net income (loss) margin attributable to controlling interest of JOYY, non-GAAP net income (loss) attributable to common shareholders of JOYY, and basic and diluted non-GAAP net income (loss) per ADS, all of which are non-GAAP financial measures adjusted from the most comparable U.S. GAAP results. Non-GAAP operating income (loss) is operating income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, and gain (loss) on disposal of subsidiaries and business. Non-GAAP operating (loss) margin is non-GAAP operating income as a percentage of net revenues. Non-GAAP net income (loss) is net income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments (referring to share of income (loss) from equity method investments resulting from non-recurring or non-cash items of the equity method investments), gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, and income tax effects of the above non-GAAP reconciling items. Non-GAAP net income (loss) attributable to controlling interest of JOYY is net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income attributable to non-controlling interest shareholders. Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of JOYY as a percentage of net revenues. Non-GAAP net income (loss) attributable to common shareholders of JOYY is net income (loss) attributable to common shareholders of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders, gain on repurchase of redeemable convertible preferred shares of a subsidiary and income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net income (loss) attributable to non-controlling interest shareholders. After the non-GAAP adjustment, non-GAAP net income (loss) attributable to controlling interests of JOYY is equal to the non-GAAP net income (loss) attributable to common shareholders of JOYY. Basic and diluted non-GAAP net income (loss) per ADS is non-GAAP net income (loss) attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of basic and diluted net income per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of above reconciling items adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of (i) share-based compensation expenses and amortization of intangible assets from business acquisitions, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, which have been and will continue to be significant recurring expenses in its business, (ii) impairment of goodwill and investments, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders and gain on repurchase of redeemable convertible preferred shares of a subsidiary which may not be recurring in its business, and (iii) income tax expenses and non-GAAP adjustments for net income (loss) attributable to non-controlling interest shareholders, which are affected by the above non-GAAP reconciling items. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income (loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release.
Investor Relations Contact
JOYY Inc.
Jane Xie/Maggie Yan
Email: joyy-ir@joyy.com
ICR, Inc.
Robin Yang
Email: joyy@icrinc.com
1On November 16, 2020, the Company entered into definitive agreements with affiliates of Baidu, Inc. (“Baidu”), subsequently amended on February 7, 2021. Pursuant to the agreements, Baidu would acquire JOYY’s video-based entertainment live streaming business in mainland China, which the Company refers to as YY Live, including the YY mobile app, the YY.com website and the YY PC app, among others, for an aggregate purchase price of approximately US
The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated. For the avoidance of confusion, the continuing operations for the three months ended March 31, 2023, December 31, 2023 and March 31, 2024, as presented in this press release, primarily consisted of BIGO segment (primarily including Bigo Live, Likee and imo) and the All other segment, excluding YY Live.
2Net income (loss) attributable to controlling interest of JOYY is net income (loss) less net (loss) income attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders.
3Non-GAAP net income (loss) attributable to controlling interest of JOYY is a non-GAAP financial measure, which is defined as net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments which refer to those similar non-GAAP reconciling items of the Company, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds amortization to face value, income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for net (loss) income attributable to non-controlling interest shareholders. These adjustments amounted to US
4Refers to average mobile monthly active users of the social entertainment platforms operated by the Company, including Bigo Live, Likee, imo and Hago. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile active users for each month of such period, by (ii) the number of months in such period.
5The number of paying users during a given period is calculated as the cumulative number of registered user accounts that have purchased virtual items or other products and services on Bigo Live, Likee or imo at least once during the relevant period.
6Average revenue per user is calculated by dividing our total revenues from live streaming on Bigo Live, Likee and imo during a given period by the number of paying users for the Company’s live streaming services on these platforms for that period.
7 Non-GAAP operating income (loss) is a non-GAAP financial measure, which is defined as operating income (loss) excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain (loss) on disposal of subsidiaries and business. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.
8Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP operating income (loss) as a percentage of net revenues. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.
9Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of JOYY as a percentage of net revenues.
10 ADS refers to American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income (loss) per ADS is net income (loss) attributable to common shareholders of JOYY divided by weighted average number of diluted ADS.
11 Non-GAAP diluted net income (loss) per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of diluted net income (loss) per ADS. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.
| JOYY INC. | |||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||
| December 31, | March 31, | ||||||
| 2023 | 2024 | ||||||
| US$ | US$ | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 1,063,956 | 728,228 | |||||
| Restricted cash and cash equivalents | 319,250 | 374,111 | |||||
| Short-term deposits | 1,970,346 | 2,229,229 | |||||
| Restricted short-term deposits | 57,243 | 57,243 | |||||
| Short-term investments | 274,846 | 189,611 | |||||
| Accounts receivable, net | 130,700 | 126,703 | |||||
| Amounts due from related parties | 810 | 636 | |||||
| Prepayments and other current assets(1) | 255,489 | 264,875 | |||||
| Total current assets | 4,072,640 | 3,970,636 | |||||
| Non-current assets | |||||||
| Long-term deposits | 130,000 | 290,000 | |||||
| Investments | 544,542 | 555,825 | |||||
| Property and equipment, net | 390,681 | 415,044 | |||||
| Land use rights, net | 316,070 | 313,418 | |||||
| Intangible assets, net | 333,715 | 318,314 | |||||
| Right-of-use assets, net | 30,173 | 27,816 | |||||
| Goodwill | 2,649,281 | 2,649,278 | |||||
| Other non-current assets | 16,763 | 16,252 | |||||
| Total non-current assets | 4,411,225 | 4,585,947 | |||||
| Total assets | 8,483,865 | 8,556,583 | |||||
| Liabilities, mezzanine equity and shareholders’ equity | |||||||
| Short-term loan | 52,119 | 77,831 | |||||
| Accounts payable | 66,755 | 65,692 | |||||
| Deferred revenue | 73,673 | 73,333 | |||||
| Advances from customers | 6,047 | 7,249 | |||||
| Income taxes payable | 86,100 | 90,001 | |||||
| Accrued liabilities and other current liabilities(1) | 2,381,189 | 2,386,996 | |||||
| Amounts due to related parties | 2,533 | 2,658 | |||||
| Lease liabilities due within one year | 12,388 | 11,661 | |||||
| Convertible bonds | 405,603 | 405,840 | |||||
| Total current liabilities | 3,086,407 | 3,121,261 | |||||
| Non-current liabilities | |||||||
| Lease liabilities | 18,422 | 16,829 | |||||
| Deferred revenue | 12,932 | 13,567 | |||||
| Deferred tax liabilities | 53,955 | 50,264 | |||||
| Total non-current liabilities | 85,309 | 80,660 | |||||
| Total liabilities | 3,171,716 | 3,201,921 | |||||
| JOYY INC. | |||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||
| December 31, | March 31, | ||||||
| 2023 | 2024 | ||||||
| US$ | US$ | ||||||
| Mezzanine equity | 22,133 | 22,533 | |||||
| Shareholders’ equity | |||||||
| Class A common shares (US | 9 | 9 | |||||
| Class B common shares (US | 3 | 3 | |||||
| Treasury Shares (US | (913,939 | ) | (968,433 | ) | |||
| Additional paid-in capital | 3,282,754 | 3,330,791 | |||||
| Statutory reserves | 37,709 | 37,709 | |||||
| Retained earnings | 2,947,160 | 2,992,098 | |||||
| Accumulated other comprehensive loss | (197,010 | ) | (196,756 | ) | |||
| Total JOYY Inc.’s shareholders’ equity | 5,156,686 | 5,195,421 | |||||
| Non-controlling interests | 133,330 | 136,708 | |||||
| Total shareholders’ equity | 5,290,016 | 5,332,129 | |||||
| Total liabilities, mezzanine equity and shareholders’ equity | 8,483,865 | 8,556,583 | |||||
| (1) JOYY has ceased consolidation of YY Live business since February 8, 2021 and classified and presented all the related assets and liabilities related to YY Live business on a net basis within prepayments and other current assets. The consideration received by the Company to date has been recorded as advance payments received within accrued liabilities and other current liabilities. | |||||||
| JOYY INC. | |||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2023 | 2023 | 2024 | |||||||
| US$ | US$ | US$ | |||||||
| Net revenues | |||||||||
| Live streaming | 520,393 | 486,196 | 466,391 | ||||||
| Others | 63,235 | 83,643 | 98,169 | ||||||
| Total net revenues(1) | 583,628 | 569,839 | 564,560 | ||||||
| Cost of revenues(2) | (379,002 | ) | (368,360 | ) | (369,197 | ) | |||
| Gross profit | 204,626 | 201,479 | 195,363 | ||||||
| Operating expenses(2) | |||||||||
| Research and development expenses | (75,775 | ) | (72,580 | ) | (69,039 | ) | |||
| Sales and marketing expenses | (97,599 | ) | (92,258 | ) | (94,638 | ) | |||
| General and administrative expenses | (31,969 | ) | (34,587 | ) | (31,743 | ) | |||
| Total operating expenses | (205,343 | ) | (199,425 | ) | (195,420 | ) | |||
| Other income | 3,248 | 2,742 | 3,600 | ||||||
| Operating income | 2,531 | 4,796 | 3,543 | ||||||
| Interest expenses | (3,109 | ) | (2,115 | ) | (2,136 | ) | |||
| Interest income and investment income | 44,135 | 47,145 | 48,927 | ||||||
| Foreign currency exchange (losses) gains, net | (9,921 | ) | (8,158 | ) | 768 | ||||
| Loss on disposal and deemed disposal of investments | (213 | ) | - | - | |||||
| Gain on fair value change of investments | 1,285 | 6,263 | 985 | ||||||
| Income before income tax expenses | 34,708 | 47,931 | 52,087 | ||||||
| Income tax expenses | (8,158 | ) | (2,315 | ) | (4,537 | ) | |||
| Income before share of loss in equity method investments, net of income taxes | 26,550 | 45,616 | 47,550 | ||||||
| Share of loss in equity method investments, net of income taxes | (6,606 | ) | (5,527 | ) | (7,395 | ) | |||
| Net income | 19,944 | 40,089 | 40,155 | ||||||
| Net loss attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders | 8,042 | 5,746 | 5,131 | ||||||
| Net income attributable to controlling interest of JOYY Inc. | 27,986 | 45,835 | 45,286 | ||||||
| Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value | (1,566 | ) | (350 | ) | (347 | ) | |||
| Cumulative dividend on subsidiary’s Series A Preferred Shares | (1,000 | ) | - | - | |||||
| Net income attributable to common shareholders of JOYY Inc. | 25,420 | 45,485 | 44,939 | ||||||
| JOYY INC. | |||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) | |||||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2023 | 2023 | 2024 | |||||||
| US$ | US$ | US$ | |||||||
| Net income per ADS | |||||||||
| ——Basic | 0.36 | 0.74 | 0.73 | ||||||
| ——Diluted | 0.35 | 0.70 | 0.69 | ||||||
| Weighted average number of ADS used in calculating net income per ADS | |||||||||
| ——Basic | 70,451,631 | 61,876,261 | 61,783,347 | ||||||
| ——Diluted | 80,846,062 | 67,384,074 | 67,152,622 | ||||||
| (1) Revenues by geographical areas were as follows: | |||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2023 | 2023 | 2024 | |||||||
| US$ | US$ | US$ | |||||||
| Developed countries and regions | 217,851 | 266,353 | 291,036 | ||||||
| Middle East | 118,786 | 103,020 | 87,458 | ||||||
| Mainland China | 122,819 | 68,886 | 59,801 | ||||||
| Southeast Asia and others | 124,172 | 131,580 | 126,265 | ||||||
| Note: Developed countries and region mainly included the United States of America, Great Britain, Japan, South Korea and Australia. Middle East mainly included Saudi Arabia and other countries located in the region. Southeast Asia and others mainly included Indonesia, Vietnam and rest of the world. | |||||||||
| (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2023 | 2023 | 2024 | |||||||
| US$ | US$ | US$ | |||||||
| Cost of revenues | 1,236 | 821 | 663 | ||||||
| Research and development expenses | 5,761 | 4,020 | 3,392 | ||||||
| Sales and marketing expenses | 234 | 133 | 131 | ||||||
| General and administrative expenses | 2,108 | 2,271 | 1,942 | ||||||
| JOYY INC. | |||||||||
| UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS | |||||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2023 | 2023 | 2024 | |||||||
| US$ | US$ | US$ | |||||||
| Operating income | 2,531 | 4,796 | 3,543 | ||||||
| Share-based compensation expenses | 9,339 | 7,245 | 6,128 | ||||||
| Amortization of intangible assets from business acquisitions | 15,890 | 15,890 | 15,132 | ||||||
| Non-GAAP operating income | 27,760 | 27,931 | 24,803 | ||||||
| Net income | 19,944 | 40,089 | 40,155 | ||||||
| Share-based compensation expenses | 9,339 | 7,245 | 6,128 | ||||||
| Amortization of intangible assets from business acquisitions | 15,890 | 15,890 | 15,132 | ||||||
| Loss on disposal and deemed disposal of investments | 213 | - | - | ||||||
| Gain on fair value change of investments | (1,285 | ) | (6,263 | ) | (985 | ) | |||
| Interest expenses related to the convertible bonds’ amortization to face value | 578 | 239 | 237 | ||||||
| Income tax effects on non-GAAP adjustments | (2,311 | ) | (2,095 | ) | (2,222 | ) | |||
| Reconciling items on the share of equity method investments | 724 | 4,278 | 4,434 | ||||||
| Non-GAAP net income | 43,092 | 59,383 | 62,879 | ||||||
| Net income attributable to common shareholders of JOYY Inc. | 25,420 | 45,485 | 44,939 | ||||||
| Share-based compensation expenses | 9,339 | 7,245 | 6,128 | ||||||
| Amortization of intangible assets from business acquisitions | 15,890 | 15,890 | 15,132 | ||||||
| Loss on disposal and deemed disposal of investments | 213 | - | - | ||||||
| Gain on fair value change of investments | (1,285 | ) | (6,263 | ) | (985 | ) | |||
| Interest expenses related to the convertible bonds’ amortization to face value | 578 | 239 | 237 | ||||||
| Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders | 2,566 | 350 | 347 | ||||||
| Income tax effects on non-GAAP adjustments | (2,311 | ) | (2,095 | ) | (2,222 | ) | |||
| Reconciling items on the share of equity method investments | 724 | 4,278 | 4,434 | ||||||
| Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders | (1,267 | ) | (929 | ) | (806 | ) | |||
| Non-GAAP net income attributable to controlling interest and common shareholders of JOYY Inc. | 49,867 | 64,200 | 67,204 | ||||||
| Non-GAAP net income per ADS | |||||||||
| ——Basic | 0.71 | 1.04 | 1.09 | ||||||
| ——Diluted | 0.64 | 0.97 | 1.02 | ||||||
| Weighted average number of ADS used in calculating Non-GAAP net income per ADS | |||||||||
| ——Basic | 70,451,631 | 61,876,261 | 61,783,347 | ||||||
| ——Diluted | 80,846,062 | 67,384,074 | 67,152,622 | ||||||
| JOYY INC. | |||||||||||
| UNAUDITED SEGMENT REPORT | |||||||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2024 | |||||||||||
| BIGO | All other | Elimination(1) | Total | ||||||||
| US$ | US$ | US$ | US$ | ||||||||
| Net revenues | |||||||||||
| Live streaming | 442,154 | 24,237 | - | 466,391 | |||||||
| Others | 63,049 | 35,518 | (398 | ) | 98,169 | ||||||
| Total net revenues | 505,203 | 59,755 | (398 | ) | 564,560 | ||||||
| Cost of revenues(2) | (328,583 | ) | (40,692 | ) | 78 | (369,197 | ) | ||||
| Gross profit | 176,620 | 19,063 | (320 | ) | 195,363 | ||||||
| Operating expenses(2) | |||||||||||
| Research and development expenses | (41,022 | ) | (28,258 | ) | 241 | (69,039 | ) | ||||
| Sales and marketing expenses | (74,430 | ) | (20,232 | ) | 24 | (94,638 | ) | ||||
| General and administrative expenses | (14,075 | ) | (17,723 | ) | 55 | (31,743 | ) | ||||
| Total operating expenses | (129,527 | ) | (66,213 | ) | 320 | (195,420 | ) | ||||
| Other income | 3,296 | 304 | - | 3,600 | |||||||
| Operating income (loss) | 50,389 | (46,846 | ) | - | 3,543 | ||||||
| Interest expenses | (1,765 | ) | (1,681 | ) | 1,310 | (2,136 | ) | ||||
| Interest income and investment income | 15,441 | 34,796 | (1,310 | ) | 48,927 | ||||||
| Foreign currency exchange gains, net | 379 | 389 | - | 768 | |||||||
| Gain (loss) on fair value change of investments | 1,267 | (282 | ) | - | 985 | ||||||
| Income (loss) before income tax (expenses) benefits | 65,711 | (13,624 | ) | - | 52,087 | ||||||
| Income tax (expenses) benefits | (4,662 | ) | 125 | - | (4,537 | ) | |||||
| Income (loss) before share of loss in equity method investments, net of income taxes | 61,049 | (13,499 | ) | - | 47,550 | ||||||
| Share of loss in equity method investments, net of income taxes | - | (7,395 | ) | - | (7,395 | ) | |||||
| Net income (loss) | 61,049 | (20,894 | ) | - | 40,155 | ||||||
| (1) The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments, and interest income and interest expenses generated from the loan between BIGO and All other segments. | |||||||||
| (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
| Three Months Ended | |||||||||
| March 31, 2024 | |||||||||
| BIGO | All other | Total | |||||||
| US$ | US$ | US$ | |||||||
| Cost of revenues | 391 | 272 | 663 | ||||||
| Research and development expenses | 1,641 | 1,751 | 3,392 | ||||||
| Sales and marketing expenses | 47 | 84 | 131 | ||||||
| General and administrative expenses | 96 | 1,846 | 1,942 | ||||||
| JOYY INC. | |||||||||
| UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT | |||||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||||
| Three Months Ended | |||||||||
| March 31, 2024 | |||||||||
| BIGO | All other | Total | |||||||
| US$ | US$ | US$ | |||||||
| Operating income (loss) | 50,389 | (46,846 | ) | 3,543 | |||||
| Share-based compensation expenses | 2,175 | 3,953 | 6,128 | ||||||
| Amortization of intangible assets from business acquisitions | 10,467 | 4,665 | 15,132 | ||||||
| Non-GAAP operating income (loss) | 63,031 | (38,228 | ) | 24,803 | |||||
| Net income (loss) | 61,049 | (20,894 | ) | 40,155 | |||||
| Share-based compensation expenses | 2,175 | 3,953 | 6,128 | ||||||
| Amortization of intangible assets from business acquisitions | 10,467 | 4,665 | 15,132 | ||||||
| (Gain) loss on fair value change of investments | (1,267 | ) | 282 | (985 | ) | ||||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 237 | 237 | ||||||
| Income tax effects on non-GAAP adjustments | (1,203 | ) | (1,019 | ) | (2,222 | ) | |||
| Reconciling items on the share of equity method investments | - | 4,434 | 4,434 | ||||||
| Non-GAAP net income (loss) | 71,221 | (8,342 | ) | 62,879 | |||||
| JOYY INC. | |||||||||||
| UNAUDITED SEGMENT REPORT | |||||||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||||||
| Three Months Ended | |||||||||||
| December 31, 2023 | |||||||||||
| BIGO | All other | Elimination(1) | Total | ||||||||
| US$ | US$ | US$ | US$ | ||||||||
| Net revenues | |||||||||||
| Live streaming | 459,152 | 27,044 | - | 486,196 | |||||||
| Others | 32,109 | 51,992 | (458 | ) | 83,643 | ||||||
| Total net revenues | 491,261 | 79,036 | (458 | ) | 569,839 | ||||||
| Cost of revenues(2) | (308,977 | ) | (59,481 | ) | 98 | (368,360 | ) | ||||
| Gross profit | 182,284 | 19,555 | (360 | ) | 201,479 | ||||||
| Operating expenses(2) | |||||||||||
| Research and development expenses | (41,011 | ) | (31,839 | ) | 270 | (72,580 | ) | ||||
| Sales and marketing expenses | (74,944 | ) | (17,343 | ) | 29 | (92,258 | ) | ||||
| General and administrative expenses | (15,321 | ) | (19,327 | ) | 61 | (34,587 | ) | ||||
| Total operating expenses | (131,276 | ) | (68,509 | ) | 360 | (199,425 | ) | ||||
| Other income | 2,003 | 739 | - | 2,742 | |||||||
| Operating income (loss) | 53,011 | (48,215 | ) | - | 4,796 | ||||||
| Interest expenses | (1,803 | ) | (1,652 | ) | 1,340 | (2,115 | ) | ||||
| Interest income and investment income | 13,262 | 35,223 | (1,340 | ) | 47,145 | ||||||
| Foreign currency exchange (losses) gains, net | (8,176 | ) | 18 | - | (8,158 | ) | |||||
| Gain on fair value change of investments | 1,060 | 5,203 | - | 6,263 | |||||||
| Income (loss) before income tax (expenses) benefits | 57,354 | (9,423 | ) | - | 47,931 | ||||||
| Income tax (expenses) benefits | (5,334 | ) | 3,019 | - | (2,315 | ) | |||||
| Income (loss) before share of loss in equity method investments, net of income taxes | 52,020 | (6,404 | ) | - | 45,616 | ||||||
| Share of loss in equity method investments, net of income taxes | - | (5,527 | ) | - | (5,527 | ) | |||||
| Net income (loss) | 52,020 | (11,931 | ) | - | 40,089 | ||||||
| (1) The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments, and interest income and interest expenses generated from the loan between BIGO and All other segments. | |||||||||
| (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
| Three Months Ended | |||||||||
| December 31, 2023 | |||||||||
| BIGO | All other | Total | |||||||
| US$ | US$ | US$ | |||||||
| Cost of revenues | 492 | 329 | 821 | ||||||
| Research and development expenses | 1,856 | 2,164 | 4,020 | ||||||
| Sales and marketing expenses | 38 | 95 | 133 | ||||||
| General and administrative expenses | 351 | 1,920 | 2,271 | ||||||
| JOYY INC. | |||||||||
| UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT | |||||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||||
| Three Months Ended | |||||||||
| December 31, 2023 | |||||||||
| BIGO | All other | Total | |||||||
| US$ | US$ | US$ | |||||||
| Operating income (loss) | 53,011 | (48,215 | ) | 4,796 | |||||
| Share-based compensation expenses | 2,737 | 4,508 | 7,245 | ||||||
| Amortization of intangible assets from business acquisitions | 11,225 | 4,665 | 15,890 | ||||||
| Non-GAAP operating income (loss) | 66,973 | (39,042 | ) | 27,931 | |||||
| Net income (loss) | 52,020 | (11,931 | ) | 40,089 | |||||
| Share-based compensation expenses | 2,737 | 4,508 | 7,245 | ||||||
| Amortization of intangible assets from business acquisitions | 11,225 | 4,665 | 15,890 | ||||||
| Gain on fair value change of investments | (1,060 | ) | (5,203 | ) | (6,263 | ) | |||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 239 | 239 | ||||||
| Income tax effects on non-GAAP adjustments | (1,415 | ) | (680 | ) | (2,095 | ) | |||
| Reconciling items on the share of equity method investments | - | 4,278 | 4,278 | ||||||
| Non-GAAP net income (loss) | 63,507 | (4,124 | ) | 59,383 | |||||
| JOYY INC. | |||||||||||
| UNAUDITED SEGMENT REPORT | |||||||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2023 | |||||||||||
| BIGO | All other | Elimination(1) | Total | ||||||||
| US$ | US$ | US$ | US$ | ||||||||
| Net revenues | |||||||||||
| Live streaming | 446,586 | 73,807 | - | 520,393 | |||||||
| Others | 21,356 | 41,909 | (30 | ) | 63,235 | ||||||
| Total net revenues | 467,942 | 115,716 | (30 | ) | 583,628 | ||||||
| Cost of revenues(2) | (293,705 | ) | (85,327 | ) | 30 | (379,002 | ) | ||||
| Gross profit | 174,237 | 30,389 | - | 204,626 | |||||||
| Operating expenses(2) | |||||||||||
| Research and development expenses | (41,212 | ) | (34,563 | ) | - | (75,775 | ) | ||||
| Sales and marketing expenses | (74,084 | ) | (23,515 | ) | - | (97,599 | ) | ||||
| General and administrative expenses | (13,701 | ) | (18,268 | ) | - | (31,969 | ) | ||||
| Total operating expenses | (128,997 | ) | (76,346 | ) | - | (205,343 | ) | ||||
| Other income | 2,950 | 298 | - | 3,248 | |||||||
| Operating income (loss) | 48,190 | (45,659 | ) | - | 2,531 | ||||||
| Interest expenses | (1,463 | ) | (2,797 | ) | 1,151 | (3,109 | ) | ||||
| Interest income and investment income | 9,216 | 36,070 | (1,151 | ) | 44,135 | ||||||
| Foreign currency exchange losses, net | (9,680 | ) | (241 | ) | - | (9,921 | ) | ||||
| Loss on disposal and deemed disposal of investments | - | (213 | ) | - | (213 | ) | |||||
| Gain on fair value change of investments | 688 | 597 | - | 1,285 | |||||||
| Income (loss) before income tax expenses | 46,951 | (12,243 | ) | - | 34,708 | ||||||
| Income tax expenses | (3,569 | ) | (4,589 | ) | - | (8,158 | ) | ||||
| Income (loss) before share of loss in equity method investments, net of income taxes | 43,382 | (16,832 | ) | - | 26,550 | ||||||
| Share of loss in equity method investments, net of income taxes | - | (6,606 | ) | - | (6,606 | ) | |||||
| Net income (loss) | 43,382 | (23,438 | ) | - | 19,944 | ||||||
| (1) The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments, and interest income and interest expenses generated from the loan between BIGO and All other segments. | |||||||||
| (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
| Three Months Ended | |||||||||
| March 31, 2023 | |||||||||
| BIGO | All other | Total | |||||||
| US$ | US$ | US$ | |||||||
| Cost of revenues | 650 | 586 | 1,236 | ||||||
| Research and development expenses | 2,827 | 2,934 | 5,761 | ||||||
| Sales and marketing expenses | 96 | 138 | 234 | ||||||
| General and administrative expenses | 758 | 1,350 | 2,108 | ||||||
| JOYY INC. | |||||||||
| UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT | |||||||||
| (All amounts in thousands, except share, ADS and per ADS data) | |||||||||
| Three Months Ended | |||||||||
| March 31, 2023 | |||||||||
| BIGO | All other | Total | |||||||
| US$ | US$ | US$ | |||||||
| Operating income (loss) | 48,190 | (45,659 | ) | 2,531 | |||||
| Share-based compensation expenses | 4,331 | 5,008 | 9,339 | ||||||
| Amortization of intangible assets from business acquisitions | 11,225 | 4,665 | 15,890 | ||||||
| Non-GAAP operating income (loss) | 63,746 | (35,986 | ) | 27,760 | |||||
| Net income (loss) | 43,382 | (23,438 | ) | 19,944 | |||||
| Share-based compensation expenses | 4,331 | 5,008 | 9,339 | ||||||
| Amortization of intangible assets from business acquisitions | 11,225 | 4,665 | 15,890 | ||||||
| Loss on disposal and deemed disposal of investments | - | 213 | 213 | ||||||
| Gain on fair value change of investments | (688 | ) | (597 | ) | (1,285 | ) | |||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 578 | 578 | ||||||
| Income tax effects on non-GAAP adjustments | (1,415 | ) | (896 | ) | (2,311 | ) | |||
| Reconciling items on the share of equity method investments | - | 724 | 724 | ||||||
| Non-GAAP net income (loss) | 56,835 | (13,743 | ) | 43,092 | |||||
FAQ
What were JOYY's net revenues for Q1 2024?
How did JOYY's Q1 2024 net income compare to Q1 2023?
What was JOYY's non-GAAP net income for Q1 2024?
How many paying users did JOYY have in Q1 2024?
What is JOYY's revenue guidance for Q2 2024?
How much did JOYY spend on share repurchases in Q1 2024?
What was JOYY's average mobile MAUs for Bigo Live in Q1 2024?
Did JOYY's live streaming revenues increase or decrease in Q1 2024?
