JOYY Reports Fourth Quarter and Full Year 2020 Unaudited Financial Results
JOYY Inc. (NASDAQ: YY) reported a 77.5% increase in net revenues for Q4 2020, totaling RMB3,783.5 million (US$579.9 million), driven by strong growth in live streaming. Despite this, the company recorded a net loss of RMB791.9 million (US$121.4 million). For the full year, revenues climbed 112.1% to RMB13,230.9 million (US$2,027.7 million), with a significant reduction in net loss to RMB105.1 million (US$16.1 million). Looking ahead, JOYY expects Q1 2021 revenues between US$590 million and US$605 million, indicating year-over-year growth of 72.5% to 76.9%.
- Net revenues increased by 77.5% to RMB3,783.5 million in Q4 2020.
- Full year 2020 revenues rose by 112.1% to RMB13,230.9 million.
- Non-GAAP net loss from continuing operations decreased significantly by 67.2% to RMB149.4 million in Q4 2020.
- Bigo Live revenues increased by 100.4%, and Likee revenues by 407.5% in Q4 2020.
- Positive outlook for Q1 2021 with expected revenues between US$590 million and US$605 million.
- Net loss from continuing operations for Q4 2020 was RMB791.9 million, despite revenue growth.
- Global average mobile MAUs decreased by 7.1% to 393.7 million.
- Total number of paying users of YY Live decreased by 1.1%.
GUANGZHOU, China, March 26, 2021 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”, formerly known as YY Inc.), a global video-based social media platform, today announced its unaudited financial results for the fourth quarter and full year of 2020.
Fourth Quarter 2020 Financial Highlights1
- Net revenues increased by
77.5% to RMB3,783.5 million (US$579.9 million ) from RMB2,131.9 million in the corresponding period of 2019. - Net loss from continuing operations attributable to controlling interest of JOYY2 was RMB791.9 million (US
$121.4 million ), compared to RMB816.6 million in the corresponding period of 2019, primarily due to the decrease in the operation loss of Bigo Inc (“BIGO”). - Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY3 decreased by
67.2% to RMB149.4 million (US$22.9 million ) from RMB455.7 million in the corresponding period of 2019, primarily due to the decrease in the operation loss of BIGO.
Full Year 2020 Highlights
- Net revenues increased by
112.1% to RMB13,230.9 million (US$2,027.7 million ) from RMB6,239.3 million in 2019. - Net loss from continuing operations attributable to controlling interest of JOYY was RMB105.1 million (US
$16.1 million ), compared to RMB516.7 million in 2019. - Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY was RMB1,142.3 million (US
$175.1 million ), compared to RMB1,963.2 million in 2019.
Fourth Quarter 2020 Operational Highlights
- Global average mobile MAUs4 decreased by
7.1% to 393.7 million from 423.6 million in the corresponding period of 2019, primarily due to the impact of the Indian government’s measures to block Chinese-owned apps in its local market, which included Bigo Live, Likee and Hago, partially offset by increases in MAUs outside India. - Average mobile MAUs of Likee increased by
4.2% to 120.1 million from 115.3 million in the corresponding period of 2019. - Average mobile MAUs of Bigo Live increased by
24.5% to 28.7 million from 23.1 million in the corresponding period of 2019. - Average mobile MAUs of Hago decreased by
49.9% to 16.5 million from 33.0 million in the corresponding period of 2019 primarily due to the impact of the Indian government’s measures to block Chinese-owned apps in its local market. - Total number of paying users of YY Live decreased by
1.1% to 4.25 million from 4.30 million in the corresponding period of 2019, mainly due to the impacts of COVID-19 adversely affecting the sentiment of some users on the live streaming platforms of YY Live.
Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “In the fourth quarter, we remained focused on executing our dual-engine growth strategy. Through a combination of globalized market reach and localized operations management, we continued to expand our international footprint and enhance our monetization capabilities. As a result, several of our platforms achieved solid revenue growth in the quarter, with revenues from Bigo Live increased by
Mr. Bing Jin, Chief Financial Officer of JOYY, further commented, “During the fourth quarter of 2020, we grew our total revenues by
Fourth Quarter 2020 Financial Results
NET REVENUES
Net revenues increased by
Live streaming revenues increased by
Other revenues decreased by
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by
Gross profit increased by
OPERATING INCOME
Operating expenses were RMB1,675.2 million (US
Operating loss was RMB557.6 million (US
Non-GAAP operating loss5 decreased by
NET INCOME
Net loss from continuing operations attributable to controlling interest of JOYY was RMB791.9 million (US
Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY was RMB149.4 million (US
NET INCOME PER ADS
Diluted net loss from continuing operations per ADS8 was RMB10.07 (US
Non-GAAP diluted net loss from continuing operations per ADS9 was RMB1.86 (US
BALANCE SHEET AND CASH
As of December 31, 2020, the Company had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of RMB23,503.6 million (US
SHARES OUTSTANDING
As of December 31, 2020, the Company had a total of 1,598.9 million common shares, or the equivalent of 79.9 million ADSs, outstanding.
Full Year 2020 Financial Results
Net revenues for the full year of 2020 increased by
Net loss from continuing operations attributable to controlling interest of JOYY for the full year of 2020 decreased by
Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY for the full year of 2020 was RMB1,142.3 (US
Diluted net loss from continuing operations per ADS for the full year of 2020 decreased by
Business Outlook
For the first quarter of 2021, the Company expects net revenues to be between USD
Quarterly Dividend
On August 11, 2020, the Company’s board of directors approved a quarterly dividend policy for the next three years commencing in the third quarter of 2020. Aggregating such quarterly cash dividend under another adopted quarterly dividend policy with the quarterly cash dividend announced on November 16, 2020, the board of directors has accordingly declared a dividend of US
Recent Developments
- Changes in Management Composition
Mr. Bing Jin is pursuing a new job opportunity and will leave his position as the Company’s Chief Financial Officer at the end of April 2021. Mr. Jin has served as the Company’s Chief Financial Officer since 2017 and in that role made significant contributions to the Company’s business, finance, and corporate governance. The Company greatly appreciates Mr. Jin’s many contributions and wishes him well. Although leaving the Chief Financial Officer position, Mr. Jin has agreed to continue on as an advisor to JOYY to assist with transition through April 2022. The Company has commenced a search process for a new Chief Financial Officer in which Mr. Jin will actively participate.
- Independent Review Conclusion
As noted in the Company’s February 8, 2021 Form 6-K, the Company’s audit committee previously commenced an independent review of allegations raised in a November 18, 2020 short seller report targeting JOYY. With the assistance of independent counsel, working with a team of experienced forensic auditors and data analytics experts, the audit committee previously concluded that the allegations raised and conclusions reached in the report about the YY Live business were not substantiated. The audit committee has now also concluded its work as to the handful of claims in the report unrelated to the YY Live business (concerning BIGO) and likewise found the short seller allegations unsubstantiated. The audit committee’s review has thus concluded, with no adverse findings.
- Share Repurchase Program
On May 2020, the Company announced that its board of directors has authorized to extend its existing share repurchase program, as previously approved by the board of directors in August 2019, for another 12-month period upon its original expiry date under which the Company may repurchase up to US
Conference Call Information
The Company will hold a conference call on 9:00 PM U.S. Eastern Time on Thursday, March 25, 2021 (09:00 AM Beijing/Hong Kong Time on Friday, March 26, 2021). Details for the conference call are as follows:
| Event Title: | JOYY Inc. Fourth Quarter and Full Year 2020 Earnings Conference Call |
| Conference ID: | #4784747 |
All participants must use the link provided below to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique registrant ID by email.
PRE-REGISTER LINK:
http://apac.directeventreg.com/registration/event/4784747
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.joyy.sg/.
The replay will be accessible through April 2, 2021 by dialing the following numbers:
| United States: | +1-646-254-3697 |
| International: | +61-2-8199-0299 |
| Conference ID: | #4784747 |
Exchange Rate
This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.525 to US
About JOYY Inc.
JOYY is a leading global social media platform that enables users to interact with each other in real time through online live media. On a mission to connect people and enrich their lives through video, JOYY currently operates several social platforms, including Bigo live for live streaming, Likee for short-form videos, Hago for casual games, and instant messaging platform and others. The Company has created highly engaging and vibrant user communities for users across the globe. JOYY was listed on the NASDAQ in November 2012.
Safe Harbor Statement
This announcement 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 announcement, 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 fourth 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 online communication social platform market in China; the expectation regarding the rate at which to gain active users, especially paying users; JOYY’s ability to monetize the user base; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to JOYY’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other 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 margin, non-GAAP net income from continuing operations attributable to controlling interest of JOYY, non-GAAP net margin attributable to controlling interest of JOYY, non-GAAP net income from continuing operations attributable to common shareholders of JOYY, and basic and diluted non-GAAP net income per ADS, which are non-GAAP financial measures. Non-GAAP operating income is operating income excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, and gain on disposal of subsidiaries and business. Non-GAAP operating margin is non-GAAP operating income as a percentage of net revenues. Non-GAAP net income from continuing operations is net income from continuing operations excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain on disposal of subsidiaries and business, (loss) gain on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, fair value change on derivatives, interest expenses related to the convertible bonds’ amortization to face value, and income tax effects of above non-GAAP reconciling items. Non-GAAP net income from continuing operations attributable to controlling interest of JOYY is net income from continuing operations attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, (loss) gain on disposal and deemed disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, fair value change on derivatives, interest expenses related to the convertible bonds’ amortization to face value, income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income from continuing operations attributable to non-controlling interest shareholders. Non-GAAP net margin is non-GAAP net income from continuing operations attributable to controlling interest of JOYY as a percentage of net revenues. Non-GAAP net income from continuing operations attributable to common shareholders of JOYY is net income from continuing operations attributable to common shareholders of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, (loss) gain on disposal and deemed disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, fair value change on derivatives, interest expenses related to the convertible bonds’ amortization to face value, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders and income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income from continuing operations attributable to non-controlling interest shareholders. After the non-GAAP reconciliation, non-GAAP net income from continuing operations attributable to controlling interests of JOYY is equal to the non-GAAP net income from continuing operations attributable to common shareholders of JOYY. Basic and diluted non-GAAP net income from continuing operations per ADS is non-GAAP net income from continuing operations 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, fair value change on derivatives, 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 on disposal of subsidiaries and business, (loss) gain on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, and accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders, which may not be recurring in its business, and (iii) income tax expenses and non-GAAP adjustments for net (loss) income from continuing operations attributable to non-controlling interest shareholders, which are affected by 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 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. Reconciliation of GAAP and Non-GAAP Results” near the end of this release.
Investor Relations Contact
JOYY Inc.
Jane Xie/Maggie Yan
Tel: +86 (20) 8212-0000
Email: IR@joyy.sg
ICR, Inc.
Jack Wang
Tel: +1 (646) 915-1611
Email: IR@joyy.sg
1 Starting from the second quarter of 2020, the Company deconsolidated HUYA Inc. (NYSE: HUYA) (“Huya”) and Huya’s historical financial results were reflected in the Company’s consolidated financial statements as discontinued operations accordingly. The financial information and non-GAAP financial information of the Company disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated. After the deconsolidation of Huya, the Company accounted for its investment in Huya as an equity method investment and applied the equity method accounting one quarter in arrears. Share of income or loss from the investment in Huya was included in net income or loss from continuing operations.
On November 16, 2020, the Company entered into definitive agreements with Baidu, Inc. (Nasdaq: BIDU) (“Baidu”). Pursuant to the agreements, Baidu would acquire JOYY’s domestic video-based entertainment live streaming business (“YY Live”), which includes YY mobile app, YY.com website and PC YY, among others, for an aggregate purchase price of approximately US
2 Net income from continuing operations attributable to controlling interest of JOYY, is net income from continuing operations less net (loss) income from continuing operations attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders.
3 Non-GAAP net income from continuing operations attributable to controlling interest of JOYY is a non-GAAP financial measure, which is defined as net income from continuing operations attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investment, amortization of intangible assets from business acquisitions, gain on disposal of subsidiaries and business, gain on 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, fair value change on derivatives, interest expenses related to the convertible bonds amortization to face value, income tax effects on non-GAAP adjustments and non-GAAP adjustments for net (loss) income attributable to non-controlling interest shareholders. These adjustments amounted to RMB642.5 million (US
4 Refers to mobile average monthly active users. 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.
5 Non-GAAP operating income is a non-GAAP financial measure, which is defined as operating income excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain on disposal of subsidiaries and business. Please refer to the section titled “Reconciliation of GAAP and Non-GAAP Results” for details.
6 Non-GAAP operating margin is a non-GAAP financial measure, which is defined as non-GAAP operating income as a percentage of net revenues. Please refer to the section titled “Reconciliation of GAAP and Non-GAAP Results” for details.
7 Non-GAAP net margin is non-GAAP net income from continuing operations attributable to controlling interest of JOYY as a percentage of net revenues.
8 ADS is American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income per ADS is net income attributable to common shareholders of JOYY divided by weighted average number of diluted ADS.
9 Non-GAAP diluted net income from continuing operations per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income from continuing operations attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of diluted net income per ADS. Please refer to the section titled “Reconciliation of GAAP and Non-GAAP Results” for details.
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS and per ADS data)
| December 31, 2019 | December 31, 2020 | December 31, 2020 | ||||
| RMB | RMB | US$ | ||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 2,710,623 | 11,371,264 | 1,742,722 | |||
| Restricted cash and cash equivalents | 3,500 | 89,604 | 13,732 | |||
| Short-term deposits | 10,027,440 | 8,645,939 | 1,325,048 | |||
| Restricted short-term deposits | 653,034 | 205,461 | 31,488 | |||
| Short-term investments | 3,332,331 | 3,191,338 | 489,094 | |||
| Accounts receivable, net | 668,342 | 933,057 | 142,997 | |||
| Amounts due from related parties | 1,709 | 3,986 | 611 | |||
| Financing receivables, net | 105,344 | 1,122 | 172 | |||
| Prepayments and other current assets | 538,089 | 671,230 | 102,871 | |||
| Assets held for sale(1) | 10,759,557 | 342,743 | 52,528 | |||
| Total current assets | 28,799,969 | 25,455,744 | 3,901,263 | |||
| Non-current assets | ||||||
| Deferred tax assets | 67,111 | - | - | |||
| Investments(2) | 1,983,483 | 8,086,663 | 1,239,335 | |||
| Property and equipment, net | 2,079,084 | 2,620,797 | 401,655 | |||
| Land use rights, net | 1,736,544 | 1,688,448 | 258,766 | |||
| Intangible assets, net | 3,082,259 | 2,245,962 | 344,209 | |||
| Right-of-use assets, net | 172,783 | 140,802 | 21,579 | |||
| Goodwill | 12,947,192 | 12,215,156 | 1,872,055 | |||
| Financing receivables, net | 129,380 | 128,644 | 19,716 | |||
| Other non-current assets | 275,957 | 70,196 | 10,758 | |||
| Assets held for sale(1) | 935,721 | 166,382 | 25,499 | |||
| Total non-current assets | 23,409,514 | 27,363,050 | 4,193,572 | |||
| Total assets | 52,209,483 | 52,818,794 | 8,094,835 | |||
| Liabilities, mezzanine equity and shareholders’ equity | ||||||
| Current liabilities | ||||||
| Accounts payable | 120,826 | 136,733 | 20,955 | |||
| Deferred revenue | 192,754 | 438,669 | 67,229 | |||
| Advances from customers | 7,908 | 5,058 | 775 | |||
| Income taxes payable | 422,113 | 397,334 | 60,894 | |||
| Accrued liabilities and other current liabilities | 2,420,588 | 3,160,985 | 484,442 | |||
| Amounts due to related parties | 205,921 | 24,941 | 3,822 | |||
| Lease liabilities due within one year | 83,686 | 93,513 | 14,331 | |||
| Short-term loans | 557,203 | 734,371 | 112,547 | |||
| Liabilities held for sale(1) | 3,626,622 | 1,168,667 | 179,106 | |||
| Total current liabilities | 7,637,621 | 6,160,271 | 944,101 | |||
| Non-current liabilities | ||||||
| Convertible bonds | 5,008,571 | 5,084,362 | 779,213 | |||
| Lease liabilities | 92,669 | 52,989 | 8,121 | |||
| Deferred revenue | 17,418 | 20,437 | 3,132 | |||
| Deferred tax liabilities | 264,639 | 276,802 | 42,422 | |||
| Other non-current liabilities | 11,495 | - | - | |||
| Liabilities held for sale(1) | 293,233 | 28,807 | 4,415 | |||
| Total non-current liabilities | 5,688,025 | 5,463,397 | 837,303 | |||
| Total liabilities | 13,325,646 | 11,623,668 | 1,781,404 |
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
| December 31, 2019 | December 31, 2020 | December 30, 2020 | |||||||
| RMB | RMB | US$ | |||||||
| Mezzanine equity | 466,071 | 473,816 | 72,615 | ||||||
| Shareholders’ equity | |||||||||
| Class A common shares (US | 80 | 78 | 12 | ||||||
| Class B common shares (US | 24 | 24 | 4 | ||||||
| Treasury Shares (US | (168,072 | ) | (938,038 | ) | (143,761 | ) | |||
| Additional paid-in capital | 21,921,562 | 22,853,665 | 3,502,477 | ||||||
| Statutory reserves | 149,961 | 114,871 | 17,605 | ||||||
| Retained earnings | 10,272,122 | 19,510,874 | 2,990,172 | ||||||
| Accumulated other comprehensive income | 890,209 | (856,032 | ) | (131,190 | ) | ||||
| Total JOYY Inc.’s shareholders’ equity | 33,065,886 | 40,685,442 | 6,235,319 | ||||||
| Non-controlling interests | 5,351,880 | 35,868 | 5,497 | ||||||
| Total shareholders’ equity(3) | 38,417,766 | 40,721,310 | 6,240,816 | ||||||
| Total liabilities, mezzanine equity and | |||||||||
| shareholders’ equity | 52,209,483 | 52,818,794 | 8,094,835 |
(1) As a result of the definitive agreements entered into with Baidu on the sale of YY Live, assets and liabilities to be disposed of in connection with this transaction were classified as held for sale as of December 31, 2020.
(2) Increase in the amounts of investments was mainly attributable to the Group’s investment in Huya. On April 3rd, 2020, Huya ceased to be a subsidiary of the Company and the Company recognized its investment in Huya as an equity method investment.
(3) On January 1, 2020, the Company adopted ASC326, “Financial Instruments-Credit Losses” using modified-retrospective transition approach. Following the adoption of this guidance, a cumulative-effect adjustment to shareholders’ equity, amounting to RMB12.1 million, was recognized as of January 1, 2020.
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, 2019 | September 30, 2020 | December 31, 2020 | December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2020 | |||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
| Net revenues | |||||||||||||||
| Live streaming(1) | 1,859,105 | 3,543,546 | 3,593,945 | 550,796 | 5,330,790 | 12,524,825 | 1,919,513 | ||||||||
| Others | 272,753 | 159,482 | 189,588 | 29,056 | 908,519 | 706,120 | 108,218 | ||||||||
| Total net revenues | 2,131,858 | 3,703,028 | 3,783,533 | 579,852 | 6,239,309 | 13,230,945 | 2,027,731 | ||||||||
| Cost of revenues(2) | (1,514,466 | ) | (2,625,634 | ) | (2,674,674 | ) | (409,912 | ) | (4,552,658 | ) | (9,509,589 | ) | (1,457,408 | ) | |
| Gross profit | 617,392 | 1,077,394 | 1,108,859 | 169,940 | 1,686,651 | 3,721,356 | 570,323 | ||||||||
| Operating expenses(2) | |||||||||||||||
| Research and development expenses | (474,404 | ) | (542,469 | ) | (465,133 | ) | (71,285 | ) | (1,633,668 | ) | (2,096,796 | ) | (321,348 | ) | |
| Sales and marketing expenses | (782,034 | ) | (933,110 | ) | (973,776 | ) | (149,238 | ) | (2,794,724 | ) | (3,484,814 | ) | (534,071 | ) | |
| General and administrative expenses | (319,760 | ) | (253,445 | ) | (236,270 | ) | (36,210 | ) | (938,219 | ) | (1,016,544 | ) | (155,792 | ) | |
| Total operating expenses | (1,576,198 | ) | (1,729,024 | ) | (1,675,179 | ) | (256,733 | ) | (5,366,611 | ) | (6,598,154 | ) | (1,011,211 | ) | |
| Gain on disposal of subsidiaries and business | 82,699 | - | - | - | 82,699 | - | - | ||||||||
| Other income | 12,801 | 31,756 | 8,724 | 1,337 | 39,306 | 56,111 | 8,599 | ||||||||
| Operating loss | (863,306 | ) | (619,874 | ) | (557,596 | ) | (85,456 | ) | (3,557,955 | ) | (2,820,687 | ) | (432,289 | ) | |
| Interest expenses | (124,574 | ) | (135,193 | ) | (130,651 | ) | (20,023 | ) | (266,517 | ) | (522,015 | ) | (80,002 | ) | |
| Interest income and investment income | 136,451 | 151,903 | 186,836 | 28,634 | 426,631 | 614,014 | 94,102 | ||||||||
| Foreign currency exchange (losses) gains, net | (21,830 | ) | (55,002 | ) | (55,124 | ) | (8,448 | ) | 8,639 | (118,859 | ) | (18,216 | ) | ||
| Gain (loss) on disposal and deemed disposal of investments(3) | - | 2,040,359 | (238,690 | ) | (36,581 | ) | - | 1,897,128 | 290,748 | ||||||
| Gain (loss) on fair value change of investments | 26,670 | (39,792 | ) | 125,079 | 19,169 | 2,679,312 | 1,127,714 | 172,830 | |||||||
| Fair value change on derivatives | (14,258 | ) | (29,664 | ) | (25,176 | ) | (3,858 | ) | (16,011 | ) | (42,320 | ) | (6,486 | ) | |
| Other non-operating expenses | - | (1,000 | ) | - | - | - | (17,257 | ) | (2,645 | ) | |||||
| (Loss) income before income tax expenses | (860,847 | ) | 1,311,737 | (695,322 | ) | (106,563 | ) | (725,901 | ) | 117,718 | 18,042 | ||||
| Income tax benefit (expenses) | 32,845 | (20,477 | ) | (57,574 | ) | (8,824 | ) | 141,108 | (192,337 | ) | (29,477 | ) | |||
| (Loss) income before share of income in equity method investments, net of income taxes | (828,002 | ) | 1,291,260 | (752,896 | ) | (115,387 | ) | (584,793 | ) | (74,619 | ) | (11,435 | ) | ||
| Share of income (loss) in equity method investments, net of income taxes | 5,978 | 26,550 | (42,674 | ) | (6,540 | ) | 41,315 | (51,759 | ) | (7,932 | ) | ||||
| Net (loss) income from continuing operations | (822,024 | ) | 1,317,810 | (795,570 | ) | (121,927 | ) | (543,478 | ) | (126,378 | ) | (19,367 | ) | ||
| Net income from discontinued operations(4) | 1,086,845 | 980,235 | 779,076 | 119,398 | 4,243,507 | 9,849,538 | 1,509,507 | ||||||||
| Net income (loss) | 264,821 | 2,298,045 | (16,494 | ) | (2,529 | ) | 3,700,029 | 9,723,160 | 1,490,140 | ||||||
| Less: Net income (loss) attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders | 92,024 | (5,148 | ) | (3,682 | ) | (565 | ) | 254,794 | 48,129 | 7,376 | |||||
| Net income (loss) attributable to controlling interest of JOYY Inc. | 172,797 | 2,303,193 | (12,812 | ) | (1,964 | ) | 3,445,235 | 9,675,031 | 1,482,764 | ||||||
| Including: | |||||||||||||||
| Net (loss) income from continuing operations attributable to controlling interest of JOYY Inc. | (816,566 | ) | 1,322,958 | (791,888 | ) | (121,362 | ) | (516,703 | ) | (105,112 | ) | (16,109 | ) | ||
| Net income from discontinued operations attributable to controlling interest of JOYY Inc. | 989,363 | 980,235 | 779,076 | 119,398 | 3,961,938 | 9,780,143 | 1,498,873 | ||||||||
| Less: Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value | 9,790 | 9,642 | 9,262 | 1,420 | 38,346 | 38,474 | 5,896 | ||||||||
| Cumulative dividend on subsidiary’s Series A Preferred Shares | 7,036 | 6,930 | 6,656 | 1,020 | 27,559 | 27,651 | 4,238 | ||||||||
| Net income (loss) attributable to common shareholders of JOYY Inc. | 155,971 | 2,286,621 | (28,730 | ) | (4,404 | ) | 3,379,330 | 9,608,906 | 1,472,630 | ||||||
| Including: | |||||||||||||||
| Net (loss) income from continuing operations attributable to common shareholders of JOYY Inc. | (833,392 | ) | 1,306,386 | (807,806 | ) | (123,802 | ) | (582,608 | ) | (171,237 | ) | (26,243 | ) | ||
| Net income from discontinued operations attributable to common shareholders of JOYY Inc. | 989,363 | 980,235 | 779,076 | 119,398 | 3,961,938 | 9,780,143 | 1,498,873 | ||||||||
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, 2019 | September 30, 2020 | December 31, 2020 | December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2020 | |||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
| Net income (loss) per ADS | |||||||||||||||
| —Basic | 1.95 | 28.49 | (0.35 | ) | (0.05 | ) | 43.77 | 120.10 | 18.40 | ||||||
| Continuing operations | (10.43 | ) | 16.28 | (10.07 | ) | (1.54) 080.08. | (7.54 | ) | (2.14 | ) | (0.33 | ) | |||
| Discontinued operations | 12.38 | 12.21 | 9.72 | 1.49 | 51.31 | 122.24 | 18.73 | ||||||||
| —Diluted | 1.89 | 25.92 | (0.35 | ) | (0.05 | ) | 43.59 | 120.04 | 18.39 | ||||||
| Continuing operations | (10.43 | ) | 15.39 | (10.07 | ) | (1.54) 080.08. | (7.54 | ) | (2.14 | ) | (0.33 | ) | |||
| Discontinued operations | 12.32 | 10.53 | 9.72 | 1.49 | 51.13 | 122.18 | 18.72 | ||||||||
| Weighted average number of ADS used in calculating net income (loss) per ADS | |||||||||||||||
| —Basic | 79,917,791 | 80,262,892 | 80,191,367 | 80,191,367 | 77,219,846 | 80,009,988 | 80,009,988 | ||||||||
| —Diluted | 79,917,791 | 93,076,688 | 80,191,367 | 80,191,367 | 77,219,846 | 80,009,988 | 80,009,988 | ||||||||
(1) Live streaming revenues by geographical areas were as follows:
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, 2019 | September 30, 2020 | December 31, 2020 | December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2020 | |||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
| PRC | 448,898 | 604,907 | 672,976 | 103,138 | 1,555,879 | 2,361,042 | 361,846 | ||||||||
| Non-PRC | 1,410,207 | 2,938,639 | 2,920,969 | 447,658 | 3,774,911 | 10,163,783 | 1,557,667 | ||||||||
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, 2019 | September 30, 2020 | December 31, 2020 | December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2020 | |||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
| Cost of revenues | 13,501 | 9,372 | 11,270 | 1,727 | 41,006 | 39,910 | 6,116 | ||||||||
| Research and development expenses | 94,396 | 74,382 | 60,616 | 9,290 | 362,441 | 295,289 | 45,256 | ||||||||
| Sales and marketing expenses | 1,474 | 1,657 | 2,816 | 432 | 5,000 | 9,018 | 1,382 | ||||||||
| General and administrative expenses | 27,857 | 88,236 | 97,648 | 14,965 | 117,629 | 291,759 | 44,714 | ||||||||
(3) (Loss) gain on disposal and deemed disposal of investments in the third quarter of 2020 mainly represented the gain from our further disposal of our equity interest in Huya.
(4) Gain from the disposal and deconsolidation amounted to around RMB6.4 billion was reported as part of the net income from discontinued operations in the second quarter of 2020.
JOYY INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December | September | December | December | December | December | December | |||||||||
| 31, | 30, | 31, | 31, | 31, | 31, | 31, | |||||||||
| 2019 | 2020 | 2020 | 2020 | 2019 | 2020 | 2020 | |||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
| Operating loss | (863,306 | ) | (619,874 | ) | (557,596 | ) | (85,456 | ) | (3,557,955 | ) | (2,820,687 | ) | (432,289 | ) | |
| Share-based compensation expenses | 137,228 | 173,647 | 172,350 | 26,414 | 526,076 | 635,976 | 97,468 | ||||||||
| Impairment of goodwill and investments | 52,334 | - | - | - | 62,334 | 43,861 | 6,722 | ||||||||
| Amortization of intangible assets from business acquisitions | 194,982 | 171,085 | 164,550 | 25,218 | 639,209 | 696,867 | 106,800 | ||||||||
| Gain on deconsolidation and disposal of a subsidiary | (82,699 | ) | - | - | - | (82,699 | ) | - | - | ||||||
| Non-GAAP operating loss | (561,461 | ) | (275,142 | ) | (220,696 | ) | (33,824 | ) | (2,413,035 | ) | (1,443,983 | ) | (221,299 | ) | |
| Net (loss) income from continuing operations | (822,024 | ) | 1,317,810 | (795,570 | ) | (121,927 | ) | (543,478 | ) | (126,378 | ) | (19,367 | ) | ||
| Share-based compensation expenses | 137,228 | 173,647 | 172,350 | 26,414 | 526,076 | 635,976 | 97,468 | ||||||||
| Impairment of goodwill and investments | 52,334 | - | - | - | 62,334 | 43,861 | 6,722 | ||||||||
| Amortization of intangible assets from business acquisitions | 194,982 | 171,085 | 164,550 | 25,218 | 639,209 | 696,867 | 106,800 | ||||||||
| Gain on deconsolidation and disposal of a subsidiary | (82,699 | ) | - | - | - | (82,699 | ) | - | - | ||||||
| (Gain) loss on disposal and deemed disposal of investments | - | (2,040,359 | ) | 238,690 | 36,581 | - | (1,897,128 | ) | (290,748 | ) | |||||
| (Gain) loss on fair value change of investments(1) | (26,670 | ) | 39,792 | (125,079 | ) | (19,169 | ) | (2,679,312 | ) | (1,127,714 | ) | (172,830 | ) | ||
| Reconciling items on the share of equity method investments(1) | 2,060 | 25,879 | 81,137 | 12,435 | (11,937 | ) | 118,254 | 18,123 | |||||||
| Fair value change on derivatives | 14,258 | 29,664 | 25,176 | 3,858 | 16,011 | 42,320 | 6,486 | ||||||||
| Interest expenses related to the convertible bonds’ amortization to face value | 102,510 | 107,728 | 106,446 | 16,314 | 207,682 | 423,324 | 64,877 | ||||||||
| Income tax effects on non-GAAP adjustments | (30,889 | ) | (15,241 | ) | (20,835 | ) | (3,193 | ) | (119,942 | ) | 26,931 | 4,127 | |||
| Non-GAAP net loss from continuing operations | (458,910 | ) | (189,995 | ) | (153,135 | ) | (23,469 | ) | (1,986,056 | ) | (1,163,687 | ) | (178,342 | ) | |
| Net (loss) income from continuing operations attributable to common shareholders of JOYY Inc. | (833,392 | ) | 1,306,386 | (807,806 | ) | (123,802 | ) | (582,608 | ) | (171,237 | ) | (26,243 | ) | ||
| Share-based compensation expenses | 137,228 | 173,647 | 172,350 | 26,414 | 526,076 | 635,976 | 97,468 | ||||||||
| Impairment of goodwill and investments | 52,334 | - | - | - | 62,334 | 43,861 | 6,722 | ||||||||
| Amortization of intangible assets from business acquisitions | 194,982 | 171,085 | 164,550 | 25,218 | 639,209 | 696,867 | 106,800 | ||||||||
| Gain on deconsolidation and disposal of a subsidiary | (82,699 | ) | - | - | - | (82,699 | ) | - | - | ||||||
| (Gain) loss on disposal and deemed disposal of investments | - | (2,040,359 | ) | 238,690 | 36,581 | - | (1,897,128 | ) | (290,748 | ) | |||||
| (Gain) loss on fair value change of investments | (26,670 | ) | 39,792 | (125,079 | ) | (19,169 | ) | (2,679,312 | ) | (1,127,714 | ) | (172,830 | ) | ||
| Reconciling items on the share of equity method investments | 2,060 | 25,879 | 81,137 | 12,435 | (11,937 | ) | 118,254 | 18,123 | |||||||
| Fair value change on derivatives | 14,258 | 29,664 | 25,176 | 3,858 | 16,011 | 42,320 | 6,486 | ||||||||
| Interest expenses related to the convertible bonds’ amortization to face value | 102,510 | 107,728 | 106,446 | 16,314 | 207,682 | 423,324 | 64,877 | ||||||||
| Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders | 16,826 | 16,572 | 15,918 | 2,440 | 65,905 | 66,125 | 10,134 | ||||||||
| Income tax effects on non-GAAP adjustments | (30,889 | ) | (15,241 | ) | (20,835 | ) | (3,193 | ) | (119,942 | ) | 26,931 | 4,127 | |||
| Non-GAAP adjustments for net (loss) income attributable to the non-controlling interest shareholders | (2,205 | ) | (569 | ) | 87 | 13 | (3,871 | ) | 106 | 16 | |||||
| Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY Inc. | (455,657 | ) | (185,416 | ) | (149,366 | ) | (22,891 | ) | (1,963,152 | ) | (1,142,315 | ) | (175,068 | ) | |
| Non-GAAP net loss from continuing operations per ADS | |||||||||||||||
| —Basic | (5.70 | ) | (2.31 | ) | (1.86 | ) | (0.29 | ) | (25.42 | ) | (14.28 | ) | (2.19 | ) | |
| —Diluted | (5.70 | ) | (2.31 | ) | (1.86 | ) | (0.29 | ) | (25.42 | ) | (14.28 | ) | (2.19 | ) | |
| Weighted average number of ADS used in calculating Non-GAAP net loss from continuing operations per ADS | |||||||||||||||
| —Basic | 79,917,791 | 80,262,892 | 80,191,367 | 80,191,367 | 77,219,846 | 80,009,988 | 80,009,988 | ||||||||
| —Diluted | 79,917,791 | 80,262,892 | 80,191,367 | 80,191,367 | 77,219,846 | 80,009,988 | 80,009,988 | ||||||||
(1) (Gain) loss on fair value change of equity investees’ investments was reclassified to the reconciling items on the equity method investments from gain on fair value change of investments
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | |||||||||||
| December 31, 2020 | |||||||||||
| Bigo | All other(1) | Elimination(2) | Total | Total | |||||||
| RMB | RMB | RMB | RMB | US$ | |||||||
| Net revenues | |||||||||||
| Live streaming | 3,250,717 | 343,228 | - | 3,593,945 | 550,796 | ||||||
| Others | 139,117 | 50,471 | - | 189,588 | 29,056 | ||||||
| Total net revenues | 3,389,834 | 393,699 | - | 3,783,533 | 579,852 | ||||||
| Cost of revenues(3) | (2,338,161 | ) | (336,513 | ) | - | (2,674,674 | ) | (409,912 | ) | ||
| Gross profit | 1,051,673 | 57,186 | - | 1,108,859 | 169,940 | ||||||
| Operating expenses(3) | |||||||||||
| Research and development expenses | (313,673 | ) | (151,460 | ) | - | (465,133 | ) | (71,285 | ) | ||
| Sales and marketing expenses | (867,278 | ) | (106,498 | ) | - | (973,776 | ) | (149,238 | ) | ||
| General and administrative expenses | (139,675 | ) | (96,595 | ) | - | (236,270 | ) | (36,210 | ) | ||
| Total operating expenses | (1,320,626 | ) | (354,553 | ) | - | (1,675,179 | ) | (256,733 | ) | ||
| Other income | 3,669 | 5,055 | - | 8,724 | 1,337 | ||||||
| Operating loss | (265,284 | ) | (292,312 | ) | - | (557,596 | ) | (85,456 | ) | ||
| Interest expenses | (11,835 | ) | (125,066 | ) | 6,250 | (130,651 | ) | (20,023 | ) | ||
| Interest income and investment income | 268 | 192,818 | (6,250 | ) | 186,836 | 28,634 | |||||
| Foreign currency exchange gains (loss), net | (53,763 | ) | (1,361 | ) | - | (55,124 | ) | (8,448 | ) | ||
| Loss on disposal and deemed disposal of investments | - | (238,690 | ) | - | (238,690 | ) | (36,581 | ) | |||
| Gain on fair value change of investments | - | 125,079 | - | 125,079 | 19,169 | ||||||
| Fair value change on derivatives | (1,841 | ) | (23,335 | ) | - | (25,176 | ) | (3,858 | ) | ||
| Loss before income tax expenses | (332,455 | ) | (362,867 | ) | - | (695,322 | ) | (106,563 | ) | ||
| Income tax (expenses) benefit | 31,859 | (89,433 | ) | - | (57,574 | ) | (8,824 | ) | |||
| Loss before share of loss in equity method investments, net of income taxes | (300,596 | ) | (452,300 | ) | - | (752,896 | ) | (115,387 | ) | ||
| Share of gain in equity method investments, net of income taxes | - | (42,674 | ) | - | (42,674 | ) | (6,540 | ) | |||
| Net loss from continuing operations | (300,596 | ) | (494,974 | ) | - | (795,570 | ) | (121,927 | ) | ||
(1) As a result of the definitive agreements entered into with Baidu on the sale of YY Live, YY Live is represented as discontinued operations. YY segment is renamed as “all other” segment and has been recast to exclude the financial numbers of YY Live.
(2) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments.
(3) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
| Three Months Ended | |||||
| December 31, 2020 | |||||
| Bigo | All other | Total | Total | ||
| RMB | RMB | RMB | US$ | ||
| Cost of revenues | 6,891 | 4,379 | 11,270 | 1,727 | |
| Research and development expenses | 50,528 | 10,088 | 60,616 | 9,290 | |
| Sales and marketing expenses | 1,553 | 1,263 | 2,816 | 432 | |
| General and administrative expenses | 91,148 | 6,500 | 97,648 | 14,965 | |
JOYY INC.
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, 2020 | |||||||||
| Bigo | All other | Total | Total | ||||||
| RMB | RMB | RMB | US$ | ||||||
| Operating loss | (265,284 | ) | (292,312 | ) | (557,596 | ) | (85,456 | ) | |
| Share-based compensation expenses | 150,120 | 22,230 | 172,350 | 26,414 | |||||
| Amortization of intangible assets from business acquisitions | 164,327 | 223 | 164,550 | 25,218 | |||||
| Non-GAAP operating income(loss) | 49,163 | (269,859 | ) | (220,696 | ) | (33,824 | ) | ||
| Net loss from continuing operations | (300,596 | ) | (494,974 | ) | (795,570 | ) | (121,927 | ) | |
| Share-based compensation expenses | 150,120 | 22,230 | 172,350 | 26,414 | |||||
| Amortization of intangible assets from business acquisitions | 164,327 | 223 | 164,550 | 25,218 | |||||
| Loss on disposal and deemed disposal of investments | - | 238,690 | 238,690 | 36,581 | |||||
| Gain on fair value change of investments | - | (125,079 | ) | (125,079 | ) | (19,169 | ) | ||
| Reconciling items on the share of equity method investments | - | 81,137 | 81,137 | 12,435 | |||||
| Fair value change on derivatives | 1,841 | 23,335 | 25,176 | 3,858 | |||||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 106,446 | 106,446 | 16,314 | |||||
| Income tax effects on non-GAAP adjustments | (28,364 | ) | 7,529 | (20,835 | ) | (3,193 | ) | ||
| Non-GAAP net loss from continuing operations | (12,672 | ) | (140,463 | ) | (153,135 | ) | (23,469 | ) | |
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | |||||||||||
| September 30, 2020 | |||||||||||
| Bigo | All other | Elimination(1) | Total | Total | |||||||
| RMB | RMB | RMB | RMB | US$ | |||||||
| Net revenues | |||||||||||
| Live streaming | 3,278,214 | 265,332 | - | 3,543,546 | 521,908 | ||||||
| Others | 116,624 | 42,858 | - | 159,482 | 23,489 | ||||||
| Total net revenues | 3,394,838 | 308,190 | - | 3,703,028 | 545,397 | ||||||
| Cost of revenues(2) | (2,337,547 | ) | (288,087 | ) | - | (2,625,634 | ) | (386,714 | ) | ||
| Gross profit | 1,057,291 | 20,103 | - | 1,077,394 | 158,683 | ||||||
| Operating expenses(2) | |||||||||||
| Research and development expenses | (332,868 | ) | (209,601 | ) | - | (542,469 | ) | (79,897 | ) | ||
| Sales and marketing expenses | (852,808 | ) | (80,302 | ) | - | (933,110 | ) | (137,432 | ) | ||
| General and administrative expenses | (190,079 | ) | (63,366 | ) | - | (253,445 | ) | (37,328 | ) | ||
| Total operating expenses | (1,375,755 | ) | (353,269 | ) | - | (1,729,024 | ) | (254,657 | ) | ||
| Other income | 6,515 | 25,241 | - | 31,756 | 4,677 | ||||||
| Operating loss | (311,949 | ) | (307,925 | ) | - | (619,874 | ) | (91,297 | ) | ||
| Other non-operating expenses | - | (1,000 | ) | - | (1,000 | ) | (147 | ) | |||
| Interest expenses | (12,516 | ) | (127,167 | ) | 4,490 | (135,193 | ) | (19,912 | ) | ||
| Interest income and investment income | 139 | 156,254 | (4,490 | ) | 151,903 | 22,373 | |||||
| Foreign currency exchange gains, net | (56,016 | ) | 1,014 | - | (55,002 | ) | (8,101 | ) | |||
| Fair value change on derivatives | - | (29,664 | ) | - | (29,664 | ) | (4,369 | ) | |||
| Gain on disposal and deemed disposal of investments | - | 2,040,359 | - | 2,040,359 | 300,512 | ||||||
| Gain on fair value change of investments | - | (39,792 | ) | - | (39,792 | ) | (5,861 | ) | |||
| (Loss) income before income tax expenses | (380,342 | ) | 1,692,079 | - | 1,311,737 | 193,198 | |||||
| Income tax expenses | (2,636 | ) | (17,841 | ) | - | (20,477 | ) | (3,016 | ) | ||
| (Loss) income before share of loss in equity method investments, net of income taxes | (382,978 | ) | 1,674,238 | - | 1,291,260 | 190,182 | |||||
| Share of income in equity method investments, net of income taxes | - | 26,550 | - | 26,550 | 3,910 | ||||||
| Net (loss) income from continuing operations | (382,978 | ) | 1,700,788 | - | 1,317,810 | 194,092 | |||||
(1) The elimination mainly consists of 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 | |||||
| September 30, 2020 | |||||
| Bigo | All other | Total | Total | ||
| RMB | RMB | RMB | US$ | ||
| Cost of revenues | 3,938 | 5,434 | 9,372 | 1,380 | |
| Research and development expenses | 49,861 | 24,521 | 74,382 | 10,955 | |
| Sales and marketing expenses | 972 | 685 | 1,657 | 244 | |
| General and administrative expenses | 93,114 | (4,878) | 88,236 | 12,996 | |
JOYY INC.
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 | |||||||||
| September 30, 2020 | |||||||||
| Bigo | All other | Total | Total | ||||||
| RMB | RMB | RMB | US$ | ||||||
| Operating loss | (311,949 | ) | (307,925 | ) | (619,874 | ) | (91,297 | ) | |
| Share-based compensation expenses | 147,885 | 25,762 | 173,647 | 25,575 | |||||
| Amortization of intangible assets from business acquisitions | 171,085 | - | 171,085 | 25,198 | |||||
| Non-GAAP operating income (loss) | 7,021 | (282,163 | ) | (275,142 | ) | (40,524 | ) | ||
| Net (loss) income from continuing operations | (382,978 | ) | 1,700,788 | 1,317,810 | 194,092 | ||||
| Share-based compensation expenses | 147,885 | 25,762 | 173,647 | 25,575 | |||||
| Amortization of intangible assets from business acquisitions | 171,085 | - | 171,085 | 25,198 | |||||
| Loss on fair value change of investments | - | 39,792 | 39,792 | 5,861 | |||||
| Gain on deemed disposal and disposal of investments | - | (2,040,359 | ) | (2,040,359 | ) | (300,512 | ) | ||
| Reconciling items on the share of equity method investments | - | 25,879 | 25,879 | 3,812 | |||||
| Fair value change on derivatives | - | 29,664 | 29,664 | 4,369 | |||||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 107,728 | 107,728 | 15,867 | |||||
| Income tax effects on non-GAAP adjustments | (7,993 | ) | (7,248 | ) | (15,241 | ) | (2,245 | ) | |
| Non-GAAP net loss from continuing operations | (72,001 | ) | (117,994 | ) | (189,995 | ) | (27,983 | ) | |
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | |||||||||||
| December 31, 2019 | |||||||||||
| Bigo | All other | Elimination(1) | Total | Total | |||||||
| RMB | RMB | RMB | RMB | US$ | |||||||
| Net revenues | |||||||||||
| Live streaming | 1,638,731 | 220,374 | - | 1,859,105 | 267,044 | ||||||
| Others | 165,550 | 107,203 | - | 272,753 | 39,179 | ||||||
| Total net revenues | 1,804,281 | 327,577 | - | 2,131,858 | 306,223 | ||||||
| Cost of revenues(2) | (1,257,845 | ) | (256,621 | ) | - | (1,514,466 | ) | (217,539 | ) | ||
| Gross profit | 546,436 | 70,956 | - | 617,392 | 88,684 | ||||||
| Operating expenses(2) | |||||||||||
| Research and development expenses | (302,737 | ) | (171,667 | ) | - | (474,404 | ) | (68,144 | ) | ||
| Sales and marketing expenses | (608,108 | ) | (173,926 | ) | - | (782,034 | ) | (112,332 | ) | ||
| General and administrative expenses | (126,364 | ) | (193,396 | ) | - | (319,760 | ) | (45,931 | ) | ||
| Total operating expenses | (1,037,209 | ) | (538,989 | ) | - | (1,576,198 | ) | (226,407 | ) | ||
| Gain on disposal of subsidiaries and business | - | 82,699 | - | 82,699 | 11,879 | ||||||
| Other income | 1,315 | 11,486 | - | 12,801 | 1,839 | ||||||
| Operating loss | (489,458 | ) | (373,848 | ) | - | (863,306 | ) | (124,005 | ) | ||
| Interest expenses | (15,282 | ) | (123,570 | ) | 14,278 | (124,574 | ) | (17,894 | ) | ||
| Interest income and investment income | 714 | 150,015 | (14,278 | ) | 136,451 | 19,600 | |||||
| Foreign currency exchange (losses) gains, net | (19,609 | ) | (2,221 | ) | - | (21,830 | ) | (3,136 | ) | ||
| Fair value change on derivatives | - | (14,258 | ) | - | (14,258 | ) | (2,048 | ) | |||
| Gain on fair value change of investments | - | 26,670 | - | 26,670 | 3,831 | ||||||
| Loss before income tax expenses | (523,635 | ) | (337,212 | ) | - | (860,847 | ) | (123,652 | ) | ||
| Income tax benefits | 5,529 | 27,316 | - | 32,845 | 4,717 | ||||||
| Loss before share of income in equity method investments, net of income taxes | (518,106 | ) | (309,896 | ) | - | (828,002 | ) | (118,935 | ) | ||
| Share of income in equity method investments, net of income taxes | - | 5,978 | - | 5,978 | 859 | ||||||
| Net loss from continuing operations | (518,106 | ) | (303,918 | ) | - | (822,024 | ) | (118,076 | ) | ||
(1) The elimination mainly consists of 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, 2019 | |||||||||
| Bigo | All other | Total | Total | ||||||
| RMB | RMB | RMB | US$ | ||||||
| Cost of revenues | 8,738 | 4,763 | 13,501 | 1,939 | |||||
| Research and development expenses | 71,307 | 23,089 | 94,396 | 13,559 | |||||
| Sales and marketing expenses | 1,090 | 384 | 1,474 | 212 | |||||
| General and administrative expenses | 9,392 | 18,465 | 27,857 | 4,001 | |||||
JOYY INC.
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, 2019 | |||||||||
| Bigo | All other | Total | Total | ||||||
| RMB | RMB | RMB | US$ | ||||||
| Operating loss | (489,458 | ) | (373,848 | ) | (863,306 | ) | (124,005 | ) | |
| Share-based compensation expenses | 90,527 | 46,701 | 137,228 | 19,711 | |||||
| Impairment of goodwill and investments | - | 52,334 | 52,334 | 7,517 | |||||
| Amortization of intangible assets from business acquisitions | 194,982 | - | 194,982 | 28,007 | |||||
| Gain on deconsolidation and disposal of a subsidiary | - | (82,699 | ) | (82,699 | ) | (11,879 | ) | ||
| Non-GAAP operating loss | (203,949 | ) | (357,512 | ) | (561,461 | ) | (80,649 | ) | |
| Net loss from continuing operations | (518,106 | ) | (303,918 | ) | (822,024 | ) | (118,076 | ) | |
| Share-based compensation expenses | 90,527 | 46,701 | 137,228 | 19,711 | |||||
| Impairment of goodwill and investments | - | 52,334 | 52,334 | 7,517 | |||||
| Amortization of intangible assets from business acquisitions | 194,982 | - | 194,982 | 28,007 | |||||
| Gain on deconsolidation and disposal of a subsidiary | - | (82,699 | ) | (82,699 | ) | (11,879 | ) | ||
| Gain on fair value change of investments | - | (26,670 | ) | (26,670 | ) | (3,831 | ) | ||
| Reconciling items on the share of equity method investments | - | 2,060 | 2,060 | 296 | |||||
| Fair value change on derivatives | - | 14,258 | 14,258 | 2,048 | |||||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 102,510 | 102,510 | 14,725 | |||||
| Income tax effects on non-GAAP adjustments | (40,124 | ) | 9,235 | (30,889 | ) | (4,437 | ) | ||
| Non-GAAP net loss from continuing operations | (272,721 | ) | (186,189 | ) | (458,910 | ) | (65,919 | ) | |
FAQ
What were JOYY's earnings results for the fourth quarter of 2020?
How did JOYY perform financially in 2020?
What was JOYY's net loss for the fourth quarter of 2020?
What is JOYY's revenue guidance for the first quarter of 2021?
What key factors affected JOYY's user engagement in Q4 2020?
