JOYY Reports Second Quarter 2021 Unaudited Financial Results
JOYY Inc. (NASDAQ: YY) reported a strong Q2 2021, with net revenues rising by 39.7% to US$661.7 million from US$473.5 million year-over-year. Despite a net loss of US$109.3 million, the non-GAAP net loss significantly narrowed to US$0.5 million. The decrease in global average mobile MAUs was 26.0%, largely due to Indian government restrictions on Chinese apps. Notably, BIGO turned a profit, contributing to revenue growth. The company forecasts Q3 revenues between US$608 million and US$635 million, a 13.7% to 18.7% year-over-year increase.
- Net revenues increased by 39.7% to US$661.7 million.
- BIGO turned a profit, aiding revenue growth.
- Gross profit rose by 60.4% to US$203.4 million.
- Net loss from continuing operations was US$109.3 million.
- Global average mobile MAUs decreased by 26.0%.
SINGAPORE, Aug. 19, 2021 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”, formerly known as YY Inc.), a global video-based social media company, today announced its unaudited financial results for the second quarter 2021.
Second quarter 2021 Financial Highlights1
- Net revenues increased by
39.7% to US$661.7 million from US$473.5 million in the corresponding period of 2020. - Net loss from continuing operations attributable to controlling interest of JOYY2 was US
$109.3 million , compared to US$28.5 million in the corresponding period of 2020. - Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY3 decreased by
99.1% to US$0.5 million from US$50.5 million in the corresponding period of 2020, primarily as a result of BIGO turning a profit in this quarter.
Second Quarter 2021 Operational Highlights
- Global average mobile MAUs4 decreased by
26.0% to 307.5 million from 415.8 million in the corresponding period of 2020, 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 an increase in MAUs outside India. - Average mobile MAUs of Likee decreased by
38.6% to 92.3 million from 150.3 million in the corresponding period of 2020, primarily due to the impact of the Indian government’s measures to block Chinese-owned apps in its local market, and reduced spending on user acquisition via advertisement. - Average mobile MAUs of Bigo Live increased by
0.3% to 29.5 million from 29.4 million in the corresponding period of 2020, primarily due to the increase in MAUs outside India, partially offset by the negative impact of the Indian government’s measures to block Chinese apps in its local market. - Average mobile MAUs of Hago decreased by
62.9% to 11.8 million from 31.7 million in the corresponding period of 2020, primarily due to the impact of the Indian government’s measures to block Chinese-owned apps in its local market, and reduced spending on user acquisition via advertisement. - Total number of paying users of BIGO (including Bigo Live, Likee and imo)5 increased by
12.0% to 1.58 million from 1.41 million in the corresponding period of 2020. - Average revenue per paying user of BIGO (including Bigo Live, Likee and imo)6 increased by
23.9% to US$316.0 from US$255.1 in the corresponding period of 2020.
Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “Despite the negative impact from local holidays in certain regions, we maintained the growth trajectory of our global business, and managed to achieve significant progress in further enriching our localized content offering in the second quarter. With the enhancement in our product monetization, improvement in our operating leverage, and execution of a more prudent marketing strategy, we almost reached breakeven on a non-GAAP basis at the group level for the first time after we deconsolidated YY Live.
Despite the recent volatility in the macro environment and the increasing uncertainty due to COVID-19, we remain committed to our long-term vision and corporate mission. We will continue to deploy our resources to areas that can sharpen our competitive edge, including further optimization of our localized content and social ecosystems as well as enhancement of our research and development capabilities, so that we can create greater value for our shareholders.” Mr. David Xueling Li concluded.
Second Quarter 2021 Financial Results
NET REVENUES
Net revenues increased by
Live streaming revenues increased by
Other revenues increased by
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by
Gross profit increased by
OPERATING LOSS
Operating expenses were US
Operating loss was US
Non-GAAP operating loss7 decreased by
NET LOSS
Net loss from continuing operations attributable to controlling interest of JOYY was US
Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY was US
NET LOSS PER ADS
Diluted net loss from continuing operations per ADS10 was US
Non-GAAP diluted net loss from continuing operations per ADS11 was US
BALANCE SHEET AND CASH
As of June 30, 2021, 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 June 30, 2021, the Company had a total of 1,568.1 million common shares, or the equivalent of 78.4 million ADSs, outstanding.
Business Outlook
For the third quarter of 2021, the Company expects net revenues to be between US
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
Share Repurchase Program
In 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 Wednesday, August 18, 2021 (9:00 AM Hong Kong Time on Thursday, August 19, 2021). Details for the conference call are as follows:
Event Title: JOYY Inc. Second Quarter 2021 Earnings Conference Call
Conference ID: #8995467
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/8995467
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 August 25, 2021 by dialing the following numbers:
| United States: | +1-646-254-3697 |
| International: | +61-2-8199-0299 |
| Conference ID: | #8995467 |
About JOYY Inc.
JOYY is a leading global social media company 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 products, including Bigo Live for live streaming, Likee for short-form videos, Hago for casual games, and instant messaging product and others. The Company has created a highly engaging and vibrant user community 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 (loss) margin, non-GAAP net income (loss) from continuing operations attributable to controlling interest of JOYY, non-GAAP net (loss) margin attributable to controlling interest of JOYY, non-GAAP net income (loss) from continuing operations attributable to common shareholders of JOYY, and basic and diluted non-GAAP net income (loss) per ADS, which are non-GAAP financial measures. 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 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) from continuing operations is net income (loss) 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 (loss) from continuing operations attributable to controlling interest of JOYY is net income (loss) 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 (loss) margin is non-GAAP net income (loss) from continuing operations attributable to controlling interest of JOYY as a percentage of net revenues. Non-GAAP net income (loss) from continuing operations attributable to common shareholders of JOYY is net income (loss) 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 (loss) from continuing operations attributable to controlling interests of JOYY is equal to the non-GAAP net income (loss) from continuing operations attributable to common shareholders of JOYY. Basic and diluted non-GAAP net income (loss) from continuing operations per ADS is non-GAAP net income (loss) 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 income (loss) 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 (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. Reconciliation of GAAP and Non-GAAP Results” near the end of this release.
Investor Relations Contact
JOYY Inc.
Jane Xie/Maggie Yan
Email: joyy-ir@joyy.sg
ICR, Inc.
Robin Yang
Email: joyy@icrinc.com
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 of 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
For the avoidance of confusion, the continuing operations for the three months ended June 30, 2020, March 31, 2021 and June 30, 2021, the six months ended June 30, 2020 and June 30, 2021 as presented in this press release primarily consisted of BIGO, excluding Huya and YY Live. Due to the reasons mentioned above, the results of operations for the three months ended June 30, 2020 presented in this press release are not identical to the ones previously announced by the Company.
2 Net loss from continuing operations attributable to controlling interest of JOYY, is net loss 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 loss from continuing operations attributable to controlling interest of JOYY is a non-GAAP financial measure, which is defined as net loss 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 (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, 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 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 The paying users are calculated by number of paying users during a given period as the cumulative number of registered user accounts that have purchased virtual items or other products and services on platforms including Bigo Live, Likee and imo at least once during the relevant period.
6 Average revenue per user is calculated by dividing our total revenues from live streaming on platforms including Bigo Live, Likee and imo during a given period by the number of paying users for our live streaming services on these platforms for that period.
7 Non-GAAP operating loss is a non-GAAP financial measure, which is defined as operating loss 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.
8 Non-GAAP operating loss margin is a non-GAAP financial measure, which is defined as non-GAAP operating loss as a percentage of net revenues. Please refer to the section titled “Reconciliation of GAAP and Non-GAAP Results” for details.
9 Non-GAAP net loss margin is non-GAAP net loss from continuing operations attributable to controlling interest of JOYY as a percentage of net revenues.
10 ADS is 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 loss from continuing operations per ADS is a non-GAAP financial measure, which is defined as non-GAAP net loss from continuing operations attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of diluted net loss 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, 2020 | June 30, 2021 | |||
| US$ | US$ | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 1,742,749 | 2,592,500 | ||
| Restricted cash and cash equivalents | 13,733 | 294,969 | ||
| Short-term deposits | 1,325,068 | 1,325,414 | ||
| Restricted short-term deposits | 31,489 | 472 | ||
| Short-term investments | 489,101 | 704,001 | ||
| Accounts receivable, net | 142,999 | 137,347 | ||
| Amounts due from related parties | 611 | 6,883 | ||
| Financing receivables, net | 172 | 20,032 | ||
| Prepayments and other current assets | 102,872 | 181,408 | ||
| Assets held for sale(1) | 52,528 | - | ||
| Total current assets | 3,901,322 | 5,263,026 | ||
| Non-current assets | ||||
| Investments | 1,239,354 | 1,000,436 | ||
| Property and equipment, net | 401,661 | 394,578 | ||
| Land use rights, net | 258,770 | 369,709 | ||
| Intangible assets, net | 344,214 | 336,485 | ||
| Right-of-use assets, net | 21,579 | 17,711 | ||
| Goodwill | 1,872,083 | 1,956,905 | ||
| Financing receivables, net | 19,716 | - | ||
| Other non-current assets | 10,758 | 4,427 | ||
| Assets held for sale(1) | 25,500 | - | ||
| Total non-current assets | 4,193,635 | 4,080,251 | ||
| Total assets | 8,094,957 | 9,343,277 | ||
| Liabilities, mezzanine equity and shareholders’ equity | ||||
| Current liabilities | ||||
| Accounts payable | 20,956 | 20,001 | ||
| Deferred revenue | 67,230 | 52,853 | ||
| Advances from customers | 775 | 3,933 | ||
| Income taxes payable | 60,895 | 58,735 | ||
| Accrued liabilities and other current liabilities | 484,450 | 2,333,646 | ||
| Amounts due to related parties | 3,822 | 2,677 | ||
| Lease liabilities due within one year | 14,332 | 13,667 | ||
| Short-term loans | 112,549 | 21,808 | ||
| Liabilities held for sale(1) | 179,109 | - | ||
| Total current liabilities | 944,118 | 2,507,320 | ||
| Non-current liabilities | ||||
| Convertible bonds(2) | 779,225 | 993,367 | ||
| Lease liabilities | 8,121 | 4,327 | ||
| Deferred revenue | 3,132 | 4,084 | ||
| Deferred tax liabilities | 42,422 | 33,618 | ||
| Liabilities held for sale(1) | 4,415 | - | ||
| Total non-current liabilities | 837,315 | 1,035,396 | ||
| Total liabilities | 1,781,433 | 3,542,716 | ||
| JOYY INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except share, ADS and per ADS data) | ||||||
| December 31 2020 | June 30 2021 | |||||
| US$ | US$ | |||||
| Mezzanine equity | 72,617 | 63,333 | ||||
| Shareholders’ equity | ||||||
| Class A common shares (US | 13 | 13 | ||||
| Class B common shares (US | 3 | 3 | ||||
| Treasury Shares (US | (139,528 | ) | (296,849 | ) | ||
| Additional paid-in capital | 3,456,844 | 3,230,182 | ||||
| Statutory reserves | 17,825 | 19,385 | ||||
| Retained earnings(2) | 2,881,782 | 2,720,816 | ||||
| Accumulated other comprehensive income | 18,471 | 33,912 | ||||
| Total JOYY Inc.’s shareholders’ equity | 6,235,410 | 5,707,462 | ||||
| Non-controlling interests | 5,497 | 29,766 | ||||
| Total shareholders’ equity | 6,240,907 | 5,737,228 | ||||
| Total liabilities, mezzanine equity and shareholders’ equity | 8,094,957 | 9,343,277 | ||||
(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. The transaction was substantially completed on February 8, 2021, with certain customary matters remaining to be completed in the near future. As a result, JOYY has ceased consolidation of YY Live business since February 8, 2021 and classified all the related assets and liabilities subject to disposal and presented them on a net basis within prepayments and other current assets. The considerations received by the Company so far were recorded as advance payments received within accrued liabilities and other current liabilities.
(2) On January 1, 2021, the Company adopted ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” using modified-retrospective transition approach. Following the adoption of this guidance, a cumulative effect adjustment of US
| JOYY INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in thousands, except share, ADS and per ADS data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2020 | March 31, 2021 | June 30, 2021 | June 30, 2020 | June 30, 2021 | |||||||||||
| US$ | US$ | US$ | US$ | US$ | |||||||||||
| Net revenues | |||||||||||||||
| Live streaming(1) | 450,659 | 614,133 | 629,626 | 764,679 | 1,243,759 | ||||||||||
| Others | 22,867 | 28,950 | 32,088 | 50,814 | 61,038 | ||||||||||
| Total net revenues | 473,526 | 643,083 | 661,714 | 815,493 | 1,304,797 | ||||||||||
| Cost of revenues(2) | (346,656 | ) | (442,930 | ) | (458,272 | ) | (597,574 | ) | (901,202 | ) | |||||
| Gross profit | 126,870 | 200,153 | 203,442 | 217,919 | 403,595 | ||||||||||
| Operating expenses(2) | |||||||||||||||
| Research and development expenses | (85,588 | ) | (87,005 | ) | (100,744 | ) | (154,736 | ) | (187,749 | ) | |||||
| Sales and marketing expenses | (110,512 | ) | (137,404 | ) | (112,151 | ) | (224,441 | ) | (249,555 | ) | |||||
| General and administrative expenses | (51,489 | ) | (54,600 | ) | (101,114 | ) | (74,673 | ) | (155,714 | ) | |||||
| Total operating expenses | (247,589 | ) | (279,009 | ) | (314,009 | ) | (453,850 | ) | (593,018 | ) | |||||
| Gain on disposal of subsidiaries | - | - | 4,959 | - | 4,959 | ||||||||||
| Other income | 869 | 5,818 | 4,526 | 2,217 | 10,344 | ||||||||||
| Operating loss | (119,850 | ) | (73,038 | ) | (101,082 | ) | (233,714 | ) | (174,120 | ) | |||||
| Interest expenses | (18,568 | ) | (4,158 | ) | (3,602 | ) | (36,420 | ) | (7,760 | ) | |||||
| Interest income and investment income | 22,832 | 22,010 | 23,489 | 39,089 | 45,499 | ||||||||||
| Foreign currency exchange gain (losses), net | 457 | (1,509 | ) | (5,909 | ) | (1,269 | ) | (7,418 | ) | ||||||
| (Loss) gain on disposal and deemed disposal of investments | (1,896 | ) | 4,343 | 676 | 13,717 | 5,019 | |||||||||
| Gain (loss) on fair value change of investments | 99,944 | (15,151 | ) | (841 | ) | 147,800 | (15,992 | ) | |||||||
| Fair value change on derivatives | 307 | (383 | ) | 1,649 | 1,790 | 1,266 | |||||||||
| Other non-operating expenses | (600 | ) | - | (381 | ) | (2,323 | ) | (381 | ) | ||||||
| Loss before income tax expenses | (17,374 | ) | (67,886 | ) | (86,001 | ) | (71,330 | ) | (153,887 | ) | |||||
| Income tax expenses | (8,941 | ) | (15,749 | ) | (2,700 | ) | (16,247 | ) | (18,449 | ) | |||||
| Loss before share of income in equity method investments, net of income taxes | (26,315 | ) | (83,635 | ) | (88,701 | ) | (87,577 | ) | (172,336 | ) | |||||
| Share of loss in equity method investments, net of income taxes | (3,321 | ) | (5,451 | ) | (23,974 | ) | (5,054 | ) | (29,425 | ) | |||||
| Net loss from continuing operations | (29,636 | ) | (89,086 | ) | (112,675 | ) | (92,631 | ) | (201,761 | ) | |||||
| Net income from discontinued operations | 1,010,564 | 35,567 | - | 1,143,180 | 35,567 | ||||||||||
| Net income (loss) | 980,928 | (53,519 | ) | (112,675 | ) | 1,050,549 | (166,194 | ) | |||||||
| Net loss (income) attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders | 6,073 | 1,787 | 3,327 | (8,267 | ) | 5,114 | |||||||||
| Net income (loss) attributable to controlling interest of JOYY Inc. | 987,001 | (51,732 | ) | (109,348 | ) | 1,042,282 | (161,080 | ) | |||||||
| Including: | |||||||||||||||
| Net loss from continuing operations attributable to controlling interest of JOYY Inc. | (28,542 | ) | (87,299 | ) | (109,348 | ) | (90,866 | ) | (196,647 | ) | |||||
| Net income from discontinued operations attributable to controlling interest of JOYY Inc. | 1,015,543 | 35,567 | - | 1,133,148 | 35,567 | ||||||||||
| Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value | (1,391 | ) | (1,391 | ) | (1,345 | ) | (2,782 | ) | (2,736 | ) | |||||
| Cumulative dividend on subsidiary’s Series A Preferred Shares | (1,000 | ) | (1,000 | ) | (1,000 | ) | (2,000 | ) | (2,000 | ) | |||||
| Net income (loss) attributable to common shareholders of JOYY Inc. | 984,610 | (54,123 | ) | (111,693 | ) | 1,037,500 | (165,816 | ) | |||||||
| Including: | |||||||||||||||
| Net loss from continuing operations attributable to common shareholders of JOYY Inc. | (30,933 | ) | (89,690 | ) | (111,693 | ) | (95,648 | ) | (201,383 | ) | |||||
| Net income from discontinued operations attributable to common shareholders of JOYY Inc. | 1,015,543 | 35,567 | - | 1,133,148 | 35,567 | ||||||||||
| JOYY INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (All amounts in thousands, except share, ADS and per ADS data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2020 | March 31, 2021 | June 30, 2021 | June 30, 2020 | June 30, 2021 | |||||||||||
| US$ | US$ | US$ | US$ | US$ | |||||||||||
| Net income (loss) per ADS | |||||||||||||||
| —Basic | 12.37 | (0.68 | ) | (1.43 | ) | 13.00 | (2.11 | ) | |||||||
| Continuing operations | (0.39 | ) | (1.13 | ) | (1.43 | ) | (1.20 | ) | (2.56 | ) | |||||
| Discontinued operations | 12.76 | 0.45 | - | 14.20 | 0.45 | ||||||||||
| —Diluted | 12.37 | (0.68 | ) | (1.43 | ) | 12.99 | (2.11 | ) | |||||||
| Continuing operations | (0.39 | ) | (1.13 | ) | (1.43 | ) | (1.20 | ) | (2.56 | ) | |||||
| Discontinued operations | 12.76 | 0.45 | - | 14.19 | 0.45 | ||||||||||
| Weighted average number of ADS used in calculating net income (loss) per ADS | |||||||||||||||
| —Basic | 79,609,517 | 79,202,606 | 77,997,827 | 79,795,181 | 78,596,888 | ||||||||||
| —Diluted | 79,609,517 | 79,202,606 | 77,997,827 | 79,795,181 | 78,596,888 | ||||||||||
| (1) Live streaming revenues by geographical areas were as follows: | ||||||||||
| Three Months Ended | Six Months Ended | |||||||||
| June 30, 2020 | March 31, 2021 | June 30, 2021 | June 30, 2020 | June 30, 2021 | ||||||
| US$ | US$ | US$ | US$ | US$ | ||||||
| PRC | 78,039 | 111,560 | 111,479 | 153,754 | 223,039 | |||||
| Non-PRC | 372,620 | 502,573 | 518,147 | 610,925 | 1,020,720 | |||||
| (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, 2020 | March 31, 2021 | June 30, 2021 | June 30, 2020 | June 30, 2021 | ||||||||
| US$ | US$ | US$ | US$ | US$ | ||||||||
| Cost of revenues | 1,143 | 1,488 | 3,075 | 2,744 | 4,563 | |||||||
| Research and development expenses | 11,612 | 5,002 | 7,921 | 22,796 | 12,923 | |||||||
| Sales and marketing expenses | 253 | 449 | 410 | 647 | 859 | |||||||
| General and administrative expenses | 10,290 | 16,119 | (20,501 | ) | 14,999 | (4,382 | ) | |||||
| JOYY INC. RECONCILIATION OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except share, ADS and per ADS data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2020 | March 31, 2021 | June 30, 2021 | June 30, 2020 | June 30, 2021 | |||||||||||
| US$ | US$ | US$ | US$ | US$ | |||||||||||
| Operating loss | (119,850 | ) | (73,038 | ) | (101,082 | ) | (233,714 | ) | (174,120 | ) | |||||
| Share-based compensation expenses | 23,298 | 23,058 | (9,095 | ) | 41,186 | 13,963 | |||||||||
| Amortization of intangible assets from business acquisitions | 24,688 | 20,303 | 11,683 | 51,392 | 31,986 | ||||||||||
| Impairment of investments | 6,186 | - | 90,499 | 6,186 | 90,499 | ||||||||||
| Gain on disposal of subsidiaries | - | - | (4,959 | ) | - | (4,959 | ) | ||||||||
| Non-GAAP operating loss | (65,678 | ) | (29,677 | ) | (12,954 | ) | (134,950 | ) | (42,631 | ) | |||||
| Net loss from continuing operations | (29,636 | ) | (89,086 | ) | (112,675 | ) | (92,631 | ) | (201,761 | ) | |||||
| Share-based compensation expenses | 23,298 | 23,058 | (9,095 | ) | 41,186 | 13,963 | |||||||||
| Amortization of intangible assets from business acquisitions | 24,688 | 20,303 | 11,683 | 51,392 | 31,986 | ||||||||||
| Impairment of investments | 6,186 | - | 90,499 | 6,186 | 90,499 | ||||||||||
| Gain on disposal of subsidiaries | - | - | (4,959 | ) | - | (4,959 | ) | ||||||||
| Loss (gain) on disposal and deemed disposal of investments | 1,896 | (4,343 | ) | (676 | ) | (13,717 | ) | (5,019 | ) | ||||||
| (Gain) loss on fair value change of investments | (99,944 | ) | 15,151 | 841 | (147,800 | ) | 15,992 | ||||||||
| Reconciling items on the share of equity method investments | 1,242 | 7,364 | 22,346 | 1,591 | 29,710 | ||||||||||
| Fair value change on derivatives | (307 | ) | 383 | (1,649 | ) | (1,790 | ) | (1,266 | ) | ||||||
| Interest expenses related to the convertible bonds’ amortization to face value | 15,078 | 694 | 713 | 29,736 | 1,407 | ||||||||||
| Income tax effects on non-GAAP adjustments | 5,988 | 593 | (568 | ) | 8,938 | 25 | |||||||||
| Non-GAAP net loss from continuing operations | (51,511 | ) | (25,883 | ) | (3,540 | ) | (116,909 | ) | (29,423 | ) | |||||
| Net loss from continuing operations attributable to common shareholders of JOYY Inc. | (30,933 | ) | (89,690 | ) | (111,693 | ) | (95,648 | ) | (201,383 | ) | |||||
| Share-based compensation expenses | 23,298 | 23,058 | (9,095 | ) | 41,186 | 13,963 | |||||||||
| Amortization of intangible assets from business acquisitions | 24,688 | 20,303 | 11,683 | 51,392 | 31,986 | ||||||||||
| Impairment of investments | 6,186 | - | 90,499 | 6,186 | 90,499 | ||||||||||
| Gain on disposal of subsidiaries | - | - | (4,959 | ) | - | (4,959 | ) | ||||||||
| Loss (gain) on disposal and deemed disposal of investments | 1,896 | (4,343 | ) | (676 | ) | (13,717 | ) | (5,019 | ) | ||||||
| (Gain) loss on fair value change of investments | (99,944 | ) | 15,151 | 841 | (147,800 | ) | 15,992 | ||||||||
| Reconciling items on the share of equity method investments | 1,242 | 7,364 | 22,346 | 1,591 | 29,710 | ||||||||||
| Fair value change on derivatives | (307 | ) | 383 | (1,649 | ) | (1,790 | ) | (1,266 | ) | ||||||
| Interest expenses related to the convertible bonds’ amortization to face value | 15,078 | 694 | 713 | 29,736 | 1,407 | ||||||||||
| Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders | 2,391 | 2,391 | 2,345 | 4,782 | 4,736 | ||||||||||
| Income tax effects on non-GAAP adjustments | 5,988 | 593 | (568 | ) | 8,938 | 25 | |||||||||
| Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders | (97 | ) | 33 | (256 | ) | 86 | (223 | ) | |||||||
| Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY Inc. | (50,514 | ) | (24,063 | ) | (469 | ) | (115,058 | ) | (24,532 | ) | |||||
| Non-GAAP net loss from continuing operations per ADS | |||||||||||||||
| —Basic | (0.63 | ) | (0.30 | ) | (0.01 | ) | (1.44 | ) | (0.31 | ) | |||||
| —Diluted | (0.63 | ) | (0.30 | ) | (0.01 | ) | (1.44 | ) | (0.31 | ) | |||||
| Weighted average number of ADS used in calculating Non-GAAP net loss from continuing operations per ADS | |||||||||||||||
| —Basic | 79,609,517 | 79,202,606 | 77,997,827 | 79,795,181 | 78,596,888 | ||||||||||
| —Diluted | 79,609,517 | 79,202,606 | 77,997,827 | 79,795,181 | 78,596,888 | ||||||||||
| JOYY INC. UNAUDITED SEGMENT REPORT (All amounts in thousands, except share, ADS and per ADS data) | ||||||||||||
| Three Months Ended | ||||||||||||
| June 30, 2021 | ||||||||||||
| Bigo | All other | Elimination(1) | Total | |||||||||
| US$ | US$ | US$ | US$ | |||||||||
| Net revenues | ||||||||||||
| Live streaming | 576,498 | 53,128 | - | 629,626 | ||||||||
| Others | 21,273 | 10,815 | - | 32,088 | ||||||||
| Total net revenues | 597,771 | 63,943 | - | 661,714 | ||||||||
| Cost of revenues(2) | (406,359 | ) | (51,913 | ) | - | (458,272 | ) | |||||
| Gross profit | 191,412 | 12,030 | - | 203,442 | ||||||||
| Operating expenses(2) | ||||||||||||
| Research and development expenses | (73,061 | ) | (27,683 | ) | - | (100,744 | ) | |||||
| Sales and marketing expenses | (96,673 | ) | (15,478 | ) | - | (112,151 | ) | |||||
| General and administrative expenses | 6,126 | (107,240 | ) | - | (101,114 | ) | ||||||
| Total operating expenses | (163,608 | ) | (150,401 | ) | - | (314,009 | ) | |||||
| Gain on disposal of subsidiaries | - | 4,959 | - | 4,959 | ||||||||
| Other income | 1,262 | 3,264 | - | 4,526 | ||||||||
| Operating income (loss) | 29,066 | (130,148 | ) | - | (101,082 | ) | ||||||
| Other non-operating expenses | - | (381 | ) | - | (381 | ) | ||||||
| Interest expenses | (624 | ) | (3,348 | ) | 370 | (3,602 | ) | |||||
| Interest income and investment income | 245 | 23,614 | (370 | ) | 23,489 | |||||||
| Foreign currency exchange losses, net | (5,360 | ) | (549 | ) | - | (5,909 | ) | |||||
| Fair value change on derivatives | (45 | ) | 1,694 | - | 1,649 | |||||||
| Gain on disposal and deemed disposal of investments | - | 676 | - | 676 | ||||||||
| Loss on fair value change of investments | - | (841 | ) | - | (841 | ) | ||||||
| Income (loss) before income tax expenses | 23,282 | (109,283 | ) | - | (86,001 | ) | ||||||
| Income tax benefits (expenses) | 352 | (3,052 | ) | - | (2,700 | ) | ||||||
| Income (loss) before share of loss in equity method investments, net of income taxes | 23,634 | (112,335 | ) | - | (88,701 | ) | ||||||
| Share of loss in equity method investments, net of income taxes | - | (23,974 | ) | - | (23,974 | ) | ||||||
| Net income (loss) from continuing operations | 23,634 | (136,309 | ) | - | (112,675 | ) | ||||||
(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 | ||||||||
| June 30, 2021 | ||||||||
| Bigo | All other | Total | ||||||
| US$ | US$ | US$ | ||||||
| Cost of revenues | 2,330 | 745 | 3,075 | |||||
| Research and development expenses | 4,489 | 3,432 | 7,921 | |||||
| Sales and marketing expenses | 208 | 202 | 410 | |||||
| General and administrative expenses | (22,619 | ) | 2,118 | (20,501 | ) | |||
| 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 | |||||||||
| June 30, 2021 | |||||||||
| Bigo | All other | Total | |||||||
| US$ | US$ | US$ | |||||||
| Operating income (loss) | 29,066 | (130,148 | ) | (101,082 | ) | ||||
| Share-based compensation expenses | (15,592 | ) | 6,497 | (9,095 | ) | ||||
| Amortization of intangible assets from business acquisitions | 11,225 | 458 | 11,683 | ||||||
| Impairment of investments | - | 90,499 | 90,499 | ||||||
| Gain on disposal of subsidiaries | - | (4,959 | ) | (4,959 | ) | ||||
| Non-GAAP operating income (loss) | 24,699 | (37,653 | ) | (12,954 | ) | ||||
| Net income (loss) from continuing operations | 23,634 | (136,309 | ) | (112,675 | ) | ||||
| Share-based compensation expenses | (15,592 | ) | 6,497 | (9,095 | ) | ||||
| Amortization of intangible assets from business acquisitions | 11,225 | 458 | 11,683 | ||||||
| Impairment of investments | - | 90,499 | 90,499 | ||||||
| Gain on disposal of subsidiaries | - | (4,959 | ) | (4,959 | ) | ||||
| Loss on fair value change of investments | - | 841 | 841 | ||||||
| Gain on disposal and deemed disposal of investments | - | (676 | ) | (676 | ) | ||||
| Reconciling items on the share of equity method investments | - | 22,346 | 22,346 | ||||||
| Fair value change on derivatives | 45 | (1,694 | ) | (1,649 | ) | ||||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 713 | 713 | ||||||
| Income tax effects on non-GAAP adjustments | 128 | (696 | ) | (568 | ) | ||||
| Non-GAAP net income (loss) from continuing operations | 19,440 | (22,980 | ) | (3,540 | ) | ||||
| JOYY INC. UNAUDITED SEGMENT REPORT (All amounts in thousands, except share, ADS and per ADS data) | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31 2021 | ||||||||||||
| Bigo | All other | Elimination(1) | Total | |||||||||
| US$ | US$ | US$ | US$ | |||||||||
| Net revenues | ||||||||||||
| Live streaming | 561,386 | 52,747 | - | 614,133 | ||||||||
| Others | 19,723 | 9,227 | - | 28,950 | ||||||||
| Total net revenues | 581,109 | 61,974 | - | 643,083 | ||||||||
| Cost of revenues(2) | (389,858 | ) | (53,072 | ) | - | (442,930 | ) | |||||
| Gross profit | 191,251 | 8,902 | - | 200,153 | ||||||||
| Operating expenses(2) | ||||||||||||
| Research and development expenses | (62,427 | ) | (24,578 | ) | - | (87,005 | ) | |||||
| Sales and marketing expenses | (125,022 | ) | (12,382 | ) | - | (137,404 | ) | |||||
| General and administrative expenses | (32,641 | ) | (21,959 | ) | - | (54,600 | ) | |||||
| Total operating expenses | (220,090 | ) | (58,919 | ) | - | (279,009 | ) | |||||
| Other income | 435 | 5,383 | - | 5,818 | ||||||||
| Operating loss | (28,404 | ) | (44,634 | ) | - | (73,038 | ) | |||||
| Interest expenses | (1,885 | ) | (3,464 | ) | 1,191 | (4,158 | ) | |||||
| Interest income and investment income | 50 | 23,151 | (1,191 | ) | 22,010 | |||||||
| Foreign currency exchange losses, net | (1,267 | ) | (242 | ) | - | (1,509 | ) | |||||
| Fair value change on derivatives | (8 | ) | (375 | ) | - | (383 | ) | |||||
| Gain on disposal and deemed disposal of investments | - | 4,343 | - | 4,343 | ||||||||
| Loss on fair value change of investments | - | (15,151 | ) | - | (15,151 | ) | ||||||
| Loss income before income tax expenses | (31,514 | ) | (36,372 | ) | - | (67,886 | ) | |||||
| Income tax expenses | (4,511 | ) | (11,238 | ) | - | (15,749 | ) | |||||
| Loss before share of loss in equity method investments, net of income taxes | (36,025 | ) | (47,610 | ) | - | (83,635 | ) | |||||
| Share of loss in equity method investments, net of income taxes | - | (5,451 | ) | - | (5,451 | ) | ||||||
| Net loss from continuing operations | (36,025 | ) | (53,061 | ) | - | (89,086 | ) | |||||
(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 | ||||||||
| March 31 2021 | ||||||||
| Bigo | All other | Total | ||||||
| US$ | US$ | US$ | ||||||
| Cost of revenues | 1,411 | 77 | 1,488 | |||||
| Research and development expenses | 6,585 | (1,583 | ) | 5,002 | ||||
| Sales and marketing expenses | 317 | 132 | 449 | |||||
| General and administrative expenses | 15,403 | 716 | 16,119 | |||||
| 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 | |||||||||
| March 31 2021 | |||||||||
| Bigo | All other | Total | |||||||
| US$ | US$ | US$ | |||||||
| Operating loss | (28,404 | ) | (44,634 | ) | (73,038 | ) | |||
| Share-based compensation expenses | 23,716 | (658 | ) | 23,058 | |||||
| Amortization of intangible assets from business acquisitions | 20,200 | 103 | 20,303 | ||||||
| Non-GAAP operating income (loss) | 15,512 | (45,189 | ) | (29,677 | ) | ||||
| Net loss from continuing operations | (36,025 | ) | (53,061 | ) | (89,086 | ) | |||
| Share-based compensation expenses | 23,716 | (658 | ) | 23,058 | |||||
| Amortization of intangible assets from business acquisitions | 20,200 | 103 | 20,303 | ||||||
| Loss on fair value change of investments | - | 15,151 | 15,151 | ||||||
| Gain on disposal and deemed disposal of investments | - | (4,343 | ) | (4,343 | ) | ||||
| Reconciling items on the share of equity method investments | - | 7,364 | 7,364 | ||||||
| Fair value change on derivatives | 8 | 375 | 383 | ||||||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 694 | 694 | ||||||
| Income tax effects on non-GAAP adjustments | 1,566 | (973 | ) | 593 | |||||
| Non-GAAP net income (loss) from continuing operations | 9,465 | (35,348 | ) | (25,883 | ) | ||||
| JOYY INC. UNAUDITED SEGMENT REPORT (All amounts in thousands, except share, ADS and per ADS data) | ||||||||||||
| Three Months Ended | ||||||||||||
| June 30, 2020 | ||||||||||||
| Bigo | All other(1) | Elimination(2) | Total | |||||||||
| US$ | US$ | US$ | US$ | |||||||||
| Net revenues | ||||||||||||
| Live streaming | 415,418 | 35,241 | - | 450,659 | ||||||||
| Others | 16,459 | 6,408 | - | 22,867 | ||||||||
| Total net revenues | 431,877 | 41,649 | - | 473,526 | ||||||||
| Cost of revenues(3) | (308,251 | ) | (38,405 | ) | - | (346,656 | ) | |||||
| Gross profit | 123,626 | 3,244 | - | 126,870 | ||||||||
| Operating expenses(3) | ||||||||||||
| Research and development expenses | (56,537 | ) | (29,051 | ) | - | (85,588 | ) | |||||
| Sales and marketing expenses | (96,578 | ) | (13,934 | ) | - | (110,512 | ) | |||||
| General and administrative expenses | (25,409 | ) | (26,080 | ) | - | (51,489 | ) | |||||
| Total operating expenses | (178,524 | ) | (69,065 | ) | - | (247,589 | ) | |||||
| Other income (loss), net | 1,207 | (338 | ) | - | 869 | |||||||
| Operating loss | (53,691 | ) | (66,159 | ) | - | (119,850 | ) | |||||
| Other non-operating expenses | (600 | ) | - | - | (600 | ) | ||||||
| Interest expenses | (2,007 | ) | (17,810 | ) | 1,249 | (18,568 | ) | |||||
| Interest income and investment income | 11 | 24,070 | (1,249 | ) | 22,832 | |||||||
| Foreign currency exchange losses, net | 57 | 400 | - | 457 | ||||||||
| Fair value change on derivatives | - | 307 | - | 307 | ||||||||
| Loss on disposal and deemed disposal of investments | - | (1,896 | ) | - | (1,896 | ) | ||||||
| Gain on fair value change of investments | - | 99,944 | - | 99,944 | ||||||||
| (Loss) income before income tax expenses | (56,230 | ) | 38,856 | - | (17,374 | ) | ||||||
| Income tax benefits (expense) | 2,287 | (11,228 | ) | - | (8,941 | ) | ||||||
| (Loss) income before share of loss in equity method investments, net of income taxes | (53,943 | ) | 27,628 | - | (26,315 | ) | ||||||
| Share of loss in equity method investments, net of income taxes | - | (3,321 | ) | - | (3,321 | ) | ||||||
| Net (loss) income from continuing operations | (53,943 | ) | 24,307 | - | (29,636 | ) | ||||||
(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 | ||||||||
| June 30, 2020 | ||||||||
| Bigo | All other | Total | ||||||
| US$ | US$ | US$ | ||||||
| Cost of revenues | 1,204 | (61 | ) | 1,143 | ||||
| Research and development expenses | 9,301 | 2,311 | 11,612 | |||||
| Sales and marketing expenses | 170 | 83 | 253 | |||||
| General and administrative expenses | 5,325 | 4,965 | 10,290 | |||||
| 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 | |||||||||
| June 30, 2020 | |||||||||
| Bigo | All other | Total | |||||||
| US$ | US$ | US$ | |||||||
| Operating loss | (53,691 | ) | (66,159 | ) | (119,850 | ) | |||
| Share-based compensation expenses | 16,000 | 7,298 | 23,298 | ||||||
| Amortization of intangible assets from business acquisitions | 24,688 | - | 24,688 | ||||||
| Impairment of investments | - | 6,186 | 6,186 | ||||||
| Non-GAAP operating loss | (13,003 | ) | (52,675 | ) | (65,678 | ) | |||
| Net (loss) income from continuing operations | (53,943 | ) | 24,307 | (29,636 | ) | ||||
| Share-based compensation expenses | 16,000 | 7,298 | 23,298 | ||||||
| Amortization of intangible assets from business acquisitions | 24,688 | - | 24,688 | ||||||
| Impairment of investments | - | 6,186 | 6,186 | ||||||
| Loss on disposal and deemed disposal of investments | - | 1,896 | 1,896 | ||||||
| Gain on fair value change of investments | - | (99,944 | ) | (99,944 | ) | ||||
| Reconciling items on the share of equity method investments | - | 1,242 | 1,242 | ||||||
| Fair value change on derivatives | - | (307 | ) | (307 | ) | ||||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 15,078 | 15,078 | ||||||
| Income tax effects on non-GAAP adjustments | (3,204 | ) | 9,192 | 5,988 | |||||
| Non-GAAP net loss from continuing operations | (16,459 | ) | (35,052 | ) | (51,511 | ) | |||
FAQ
What was JOYY's revenue for Q2 2021?
What was the net loss reported by JOYY in Q2 2021?
How did COVID-19 impact JOYY's business?
What are JOYY's revenue expectations for Q3 2021?
What was the change in JOYY's MAUs in Q2 2021?
