JOYY Reports Second Quarter 2022 Unaudited Financial Results
JOYY Inc. (NASDAQ: YY) reported its second quarter 2022 financial results, achieving net revenues of US$596.1 million, down from US$661.7 million in Q2 2021. However, the company turned a net income of US$18.7 million, compared to a loss of US$109.3 million the previous year. Non-GAAP net income reached US$51.5 million. Despite a decline in mobile MAUs for Likee and Hago, Bigo Live's MAUs rose by 10.6%. JOYY anticipates Q3 revenues between US$561.5 million and US$593.5 million. A quarterly dividend of US$0.51 per ADS was declared, payable on October 6, 2022.
- Net income increased to US$18.7 million in Q2 2022 from a net loss of US$109.3 million in Q2 2021.
- Non-GAAP net income rose to US$51.5 million compared to a non-GAAP net loss of US$0.5 million in the same period last year.
- Gross profit improved by 7.4% to US$218.4 million, with gross margin up to 36.6%.
- Bigo Live's mobile MAUs increased by 10.6% year-over-year.
- Net revenues decreased by 10.5% from US$661.7 million in Q2 2021 to US$596.1 million in Q2 2022.
- Mobile MAUs for Likee decreased by 37.5% and for Hago by 27.4% due to reduced user acquisition spending.
- Total number of paying users for BIGO dropped by 8.1% to 1.45 million, while average revenue per paying user decreased to US$285 from US$316.
SINGAPORE, Aug. 30, 2022 (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 of 2022.
Second Quarter 2022 Financial Highlights1
- Net revenues were US
$596.1 million , compared to US$661.7 million in the corresponding period of 2021. - Net income from continuing operations attributable to controlling interest of JOYY2 was US
$18.7 million , compared to net loss of US$109.3 million in the corresponding period of 2021, primarily as a result of BIGO turning profits since the second quarter of 2021. - Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYY3 was US
$51.5 million , compared to non-GAAP net loss of US$0.5 million in the corresponding period of 2021, primarily as a result of improved gross margin, disciplined marketing spending and enhanced operating efficiency at the group level.
Second Quarter 2022 Operational Highlights
- Average mobile MAUs4 of Bigo Live increased by
10.6% to 32.6 million from 29.5 million in the corresponding period of 2021. - Average mobile MAUs of Likee decreased by
37.5% to 57.7 million from 92.3 million in the corresponding period of 2021, primarily due to reduced spending on user acquisition via advertisement. - Average mobile MAUs of Hago decreased by
27.4% to 8.5 million from 11.8 million in the corresponding period of 2021, primarily due to reduced spending on user acquisition via advertisement. - Global average mobile MAUs decreased by
11.2% to 273.1 million from 307.5 million in the corresponding period of 2021, primarily due to the decrease in average mobile MAUs of Likee and Hago. - Total number of paying users of BIGO (including Bigo Live, Likee and imo)5 decreased by
8.1% to 1.45 million from 1.58 million in the corresponding period of 2021. - Average revenue per paying user of BIGO (including Bigo Live, Likee and imo)6 decreased to US
$285.0 from US$316.0 in the corresponding period of 2021.
Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “The steady expansion in our profitability in the second quarter amidst the current market condition demonstrated the improved efficiency and resilience of our business. We saw some positive outcomes from our continued iteration of our product features and cultivation of our user community, as Bigo Live’s MAUs maintained its solid growth momentum, increasing by
Second Quarter 2022 Financial Results
NET REVENUES
Net revenues were US
Live streaming revenues were US
Other revenues decreased by
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by
Gross profit increased by
OPERATING EXPENSES AND INCOME
Operating expenses decreased by
Operating income was US
Non-GAAP operating income7 was US
NET INCOME
Net income from continuing operations attributable to controlling interest of JOYY was US
Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYY was US
NET INCOME PER ADS
Diluted net income from continuing operations per ADS10 was US
Non-GAAP diluted net income from continuing operations per ADS11 was US
BALANCE SHEET AND CASH FLOWS
As of June 30, 2022, 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, 2022, the Company had a total of 1,426.6 million common shares, or the equivalent of 71.3 million ADSs, outstanding.
Business Outlook
For the third quarter of 2022, 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 fourth quarter of 2020. On November 16, 2020, the Company’s board of directors announced an additional quarterly dividend policy. Based on these two dividend policies, the board of directors has accordingly declared a dividend of US
Recent Developments
Share Repurchase Program
In September 2021, the Company announced that its board of directors has authorized a new share repurchase plan under which the Company may repurchase up to US
Conference Call Information
The Company will hold a conference call at 9:00 PM U.S. Eastern Time on Monday, August 29, 2022 (9:00 AM Singapore/Hong Kong Time on Tuesday, August 30, 2022). Details for the conference call are as follows:
| Event Title: | JOYY Inc. Second Quarter 2022 Earnings Conference Call |
| Conference ID: | #10024616 |
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: https://s1.c-conf.com/diamondpass/10024616-kro0vn.html
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.joyy.com.
The replay will be accessible through September 6, 2022, by dialing the following numbers:
| United States: | 1-855-883-1031 |
| Singapore: | 800-101-3223 |
| Hong Kong: | 800-930-639 |
| Conference ID: | #10024616 |
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 multiplayer social networking, 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(refers to share of income (loss) from equity method investments resulting from non-recurring or non-cash items of the equity method investments), gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, and income tax effects of 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, gain (loss) on extinguishment of debt and derivative, 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, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders 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, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, which have been and will continue to be significant recurring expenses in its business, (ii) impairment of goodwill and investments, gain 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. Unaudited 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.com
ICR, Inc.
Robin Yang
Email: joyy@icrinc.com
1 On November 16, 2020, the Company entered into definitive agreements with Baidu, Inc. (“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, 2021, March 31, 2022 and June 30, 2022 as well as the continuing operations for the six months ended June 30, 2021 and June 30, 2022 as presented in this press release primarily consisted of BIGO, excluding Huya and YY Live.
2 Net income (loss) from continuing operations attributable to controlling interest of JOYY, is net income (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 income (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, gain (loss) on extinguishment of debt and derivative, 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 income (loss) is a non-GAAP financial measure, which is defined as operating income (loss) excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain on disposal of subsidiaries and business. Please refer to the section titled “Unaudited Reconciliation of GAAP and Non-GAAP Results” for details.
8 Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP operating income (loss) as a percentage of net revenues. Please refer to the section titled “Unaudited Reconciliation of GAAP and Non-GAAP Results” for details.
9 Non-GAAP net income (loss) margin is non-GAAP net income (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 income (loss) from continuing operations per ADS is a non-GAAP financial measure, which is defined as 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 non-GAAP diluted net income (loss) per ADS. Please refer to the section titled “Unaudited Reconciliation of GAAP and Non-GAAP Results” for details.
12 The current outlook does not consider the results of Shopline Corporation Limited, which will be consolidated upon the closing of the proposed financing transaction the Company announced on August 22, 2022.
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS and per ADS data)
| December 31, 2021 | June 30, 2022 | |||
| US$ | US$ | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 1,837,185 | 1,393,670 | ||
| Restricted cash and cash equivalents | 297,022 | 296,696 | ||
| Short-term deposits | 1,604,198 | 2,130,462 | ||
| Restricted short-term deposits | 285 | 37,495 | ||
| Short-term investments | 946,543 | 430,901 | ||
| Accounts receivable, net | 114,372 | 114,129 | ||
| Amounts due from related parties | 56,984 | 98,809 | ||
| Prepayments and other current assets(1) | 213,733 | 206,113 | ||
| Total current assets | 5,070,322 | 4,708,275 | ||
| Non-current assets | ||||
| Investments | 1,022,455 | 1,073,124 | ||
| Property and equipment, net | 365,392 | 332,178 | ||
| Land use rights, net | 370,052 | 347,219 | ||
| Intangible assets, net | 312,082 | 285,131 | ||
| Right-of-use assets, net | 16,565 | 16,239 | ||
| Goodwill | 1,958,263 | 1,953,066 | ||
| Other non-current assets | 4,881 | 7,044 | ||
| Total non-current assets | 4,049,690 | 4,014,001 | ||
| Total assets | 9,120,012 | 8,722,276 | ||
| Liabilities, mezzanine equity and shareholders’ equity | ||||
| Current liabilities | ||||
| Short-term loan | - | 29,800 | ||
| Accounts payable | 18,011 | 20,544 | ||
| Deferred revenue | 60,910 | 59,228 | ||
| Advances from customers | 3,426 | 1,284 | ||
| Income taxes payable | 65,738 | 67,813 | ||
| Accrued liabilities and other current liabilities(1) | 2,345,838 | 2,296,304 | ||
| Amounts due to related parties | 6,931 | 3,180 | ||
| Lease liabilities due within one year | 11,041 | 7,034 | ||
| Convertible bonds | - | 448,910 | ||
| Total current liabilities | 2,511,895 | 2,934,097 | ||
| Non-current liabilities | ||||
| Convertible bonds | 924,077 | 402,798 | ||
| Lease liabilities | 5,734 | 9,198 | ||
| Deferred revenue | 6,422 | 7,661 | ||
| Deferred tax liabilities | 36,214 | 37,028 | ||
| Other non-current liabilities | 7,372 | 12,372 | ||
| Total non-current liabilities | 979,819 | 469,057 | ||
| Total liabilities | 3,491,714 | 3,403,154 |
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
| December 31 2021 | June 30 2022 | |||||
| US$ | US$ | |||||
| Mezzanine equity | 65,833 | 68,333 | ||||
| Shareholders’ equity | ||||||
| Class A common shares (US | 13 | 13 | ||||
| Class B common shares (US | 3 | 3 | ||||
| Treasury Shares (US | (526,724) | (614,224) | ||||
| Additional paid-in capital | 3,246,523 | 3,267,806 | ||||
| Statutory reserves | 26,804 | 26,804 | ||||
| Retained earnings | 2,712,534 | 2,627,458 | ||||
| Accumulated other comprehensive income | 69,175 | (82,341) | ||||
| Total JOYY Inc.’s shareholders’ equity | 5,528,328 | 5,225,519 | ||||
| Non-controlling interests | 34,137 | 25,270 | ||||
| Total shareholders’ equity | 5,562,465 | 5,250,789 | ||||
| Total liabilities, mezzanine equity and shareholders’ equity | 9,120,012 | 8,722,276 | ||||
(1) JOYY has ceased consolidation of YY Live business since February 8, 2021 and classified and presented all the related assets and liabilities related to YY Live business on a net basis within prepayments and other current assets. The considerations received by the Company so far were recorded as advance payments received within accrued liabilities and other current liabilities.
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2021 | March 31, 2022 | June 30, 2022 | June 30, 2021 | June 30, 2022 | |||||||||||
| US$ | US$ | US$ | US$ | US$ | |||||||||||
| Net revenues | |||||||||||||||
| Live streaming(1) | 629,626 | 590,099 | 565,239 | 1,243,759 | 1,155,338 | ||||||||||
| Others | 32,088 | 33,681 | 30,859 | 61,038 | 64,540 | ||||||||||
| Total net revenues | 661,714 | 623,780 | 596,098 | 1,304,797 | 1,219,878 | ||||||||||
| Cost of revenues(2) | (458,272 | ) | (422,624 | ) | (377,671 | ) | (901,202 | ) | (800,295 | ) | |||||
| Gross profit | 203,442 | 201,156 | 218,427 | 403,595 | 419,583 | ||||||||||
| Operating expenses(2) | |||||||||||||||
| Research and development expenses | (100,744 | ) | (64,098 | ) | (62,876 | ) | (187,749 | ) | (126,974 | ) | |||||
| Sales and marketing expenses | (112,151 | ) | (104,367 | ) | (98,415 | ) | (249,555 | ) | (202,782 | ) | |||||
| General and administrative expenses | (101,114 | ) | (32,095 | ) | (23,680 | ) | (155,714 | ) | (55,775 | ) | |||||
| Total operating expenses | (314,009 | ) | (200,560 | ) | (184,971 | ) | (593,018 | ) | (385,531 | ) | |||||
| Gain on disposal of subsidiaries | 4,959 | - | - | 4,959 | - | ||||||||||
| Other income | 4,526 | 5,741 | 5,286 | 10,344 | 11,027 | ||||||||||
| Operating (loss) income | (101,082 | ) | 6,337 | 38,742 | (174,120 | ) | 45,079 | ||||||||
| Interest expenses | (3,602 | ) | (3,069 | ) | (3,356 | ) | (7,760 | ) | (6,425 | ) | |||||
| Interest income and investment income | 23,489 | 18,219 | 17,942 | 45,499 | 36,161 | ||||||||||
| Foreign currency exchange (losses) gain, net | (5,909 | ) | (3,364 | ) | 12,509 | (7,418 | ) | 9,145 | |||||||
| Gain (loss) on disposal and deemed disposal of investments | 676 | 1,918 | (393 | ) | 5,019 | 1,525 | |||||||||
| (Loss) gain on fair value change of investments | (841 | ) | (20,132 | ) | 1,282 | (15,992 | ) | (18,850 | ) | ||||||
| Gain on extinguishment of debt and derivative | 1,649 | 2,115 | 4,017 | 1,266 | 6,132 | ||||||||||
| Other non-operating expenses | (381 | ) | - | - | (381 | ) | - | ||||||||
| (Loss) income before income tax (expenses) benefits | (86,001 | ) | 2,024 | 70,743 | (153,887 | ) | 72,767 | ||||||||
| Income tax (expenses) benefits | (2,700 | ) | 805 | (22,944 | ) | (18,449 | ) | (22,139 | ) | ||||||
| (Loss) income before share of loss in equity method investments, net of income taxes | (88,701 | ) | 2,829 | 47,799 | (172,336 | ) | 50,628 | ||||||||
| Share of loss in equity method investments, net of income taxes | (23,974 | ) | (35,689 | ) | (32,837 | ) | (29,425 | ) | (68,526 | ) | |||||
| Net (loss) income from continuing operations | (112,675 | ) | (32,860 | ) | 14,962 | (201,761 | ) | (17,898 | ) | ||||||
| Net income from discontinued operations | - | - | - | 35,567 | - | ||||||||||
| Net (loss) income | (112,675 | ) | (32,860 | ) | 14,962 | (166,194 | ) | (17,898 | ) | ||||||
| Net loss attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders | 3,327 | 5,383 | 3,689 | 5,114 | 9,072 | ||||||||||
| Net (loss) income attributable to controlling interest of JOYY Inc. | (109,348 | ) | (27,477 | ) | 18,651 | (161,080 | ) | (8,826 | ) | ||||||
| Including: | |||||||||||||||
| Net (loss) income from continuing operations attributable to controlling interest of JOYY Inc. | (109,348 | ) | (27,477 | ) | 18,651 | (196,647 | ) | (8,826 | ) | ||||||
| Net income from discontinued operations attributable to controlling interest of JOYY Inc. | - | - | - | 35,567 | - | ||||||||||
| Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value | (1,345 | ) | (1,250 | ) | (1,250 | ) | (2,736 | ) | (2,500 | ) | |||||
| Cumulative dividend on subsidiary’s Series A Preferred Shares | (1,000 | ) | (1,000 | ) | (1,000 | ) | (2,000 | ) | (2,000 | ) | |||||
| Net (loss) income attributable to common shareholders of JOYY Inc. | (111,693 | ) | (29,727 | ) | 16,401 | (165,816 | ) | (13,326 | ) | ||||||
| Including: | |||||||||||||||
| Net (loss) income from continuing operations attributable to common shareholders of JOYY Inc. | (111,693 | ) | (29,727 | ) | 16,401 | (201,383 | ) | (13,326 | ) | ||||||
| Net income from discontinued operations attributable to common shareholders of JOYY Inc. | - | - | - | 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, 2021 | March 31, 2022 | June 30, 2022 | June 30, 2021 | June 30, 2022 | |||||||
| US$ | US$ | US$ | US$ | US$ | |||||||
| Net (loss) income per ADS | |||||||||||
| —Basic | (1.43 | ) | (0.41 | ) | 0.23 | (2.11 | ) | (0.18 | ) | ||
| Continuing operations | (1.43 | ) | (0.41 | ) | 0.23 | (2.56 | ) | (0.18 | ) | ||
| Discontinued operations | - | - | - | 0.45 | - | ||||||
| —Diluted | (1.43 | ) | (0.41 | ) | 0.23 | (2.11 | ) | (0.18 | ) | ||
| Continuing operations | (1.43 | ) | (0.41 | ) | 0.23 | (2.56 | ) | (0.18 | ) | ||
| Discontinued operations | - | - | - | 0.45 | - | ||||||
| Weighted average number of ADS used in calculating net (loss) income per ADS | |||||||||||
| —Basic | 77,997,827 | 72,881,330 | 71,893,282 | 78,596,888 | 72,604,421 | ||||||
| —Diluted | 77,997,827 | 72,881,330 | 72,586,310 | 78,596,888 | 72,604,421 | ||||||
(1) Live streaming revenues by geographical areas were as follows:
| Three Months Ended | Six Months Ended | ||||||||||
| June 30, 2021 | March 31, 2022 | June 30, 2022 | June 30, 2021 | June 30, 2022 | |||||||
| US$ | US$ | US$ | US$ | US$ | |||||||
| PRC | 111,479 | 134,130 | 137,246 | 223,039 | 271,376 | ||||||
| Non-PRC | 518,147 | 455,969 | 427,993 | 1,020,720 | 883,962 | ||||||
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
| Three Months Ended | Six Months Ended | ||||||||||
| June 30, 2021 | March 31, 2022 | June 30, 2022 | June 30, 2021 | June 30, 2022 | |||||||
| US$ | US$ | US$ | US$ | US$ | |||||||
| Cost of revenues | 3,075 | 4,545 | 1,344 | 4,563 | 5,889 | ||||||
| Research and development expenses | 7,921 | 6,410 | 5,093 | 12,923 | 11,503 | ||||||
| Sales and marketing expenses | 410 | 251 | 282 | 859 | 533 | ||||||
| General and administrative expenses | (20,501) | 3,330 | 2,026 | (4,382) | 5,356 | ||||||
JOYY INC.
UNAUDITED 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, 2021 | March 31, 2022 | June 30, 2022 | June 30, 2021 | June 30, 2022 | ||||||||
| US$ | US$ | US$ | US$ | US$ | ||||||||
| Operating (loss) income | (101,082) | 6,337 | 38,742 | (174,120) | 45,079 | |||||||
| Share-based compensation expenses | (9,095) | 14,536 | 8,745 | 13,963 | 23,281 | |||||||
| Amortization of intangible assets from business acquisitions | 11,683 | 12,409 | 12,365 | 31,986 | 24,774 | |||||||
| Impairment of investments | 90,499 | - | - | 90,499 | - | |||||||
| Gain on disposal of subsidiaries | (4,959) | - | - | (4,959) | - | |||||||
| Non-GAAP operating (loss) income | (12,954) | 33,282 | 59,852 | (42,631) | 93,134 | |||||||
| Net (loss) income from continuing operations | (112,675) | (32,860) | 14,962 | (201,761) | (17,898) | |||||||
| Share-based compensation expenses | (9,095) | 14,536 | 8,745 | 13,963 | 23,281 | |||||||
| Amortization of intangible assets from business acquisitions | 11,683 | 12,409 | 12,365 | 31,986 | 24,774 | |||||||
| Impairment of investments | 90,499 | - | - | 90,499 | - | |||||||
| Gain on disposal of subsidiaries | (4,959) | - | - | (4,959) | - | |||||||
| (Gain) loss on disposal and deemed disposal of investments | (676) | (1,918) | 393 | (5,019) | (1,525) | |||||||
| Loss (gain) on fair value change of investments | 841 | 20,132 | (1,282) | 15,992 | 18,850 | |||||||
| Reconciling items on the share of equity method investments | 22,346 | 11,143 | 12,774 | 29,710 | 23,917 | |||||||
| Gain on extinguishment of debt and derivative | (1,649) | (2,115) | (4,017) | (1,266) | (6,132) | |||||||
| Interest expenses related to the convertible bonds’ amortization to face value | 713 | 629 | 619 | 1,407 | 1,248 | |||||||
| Income tax effects on non-GAAP adjustments | (568) | (4,518) | 3,833 | 25 | (685) | |||||||
| Non-GAAP net (loss) income from continuing operations | (3,540) | 17,438 | 48,392 | (29,423) | 65,830 | |||||||
| Net (loss) income from continuing operations attributable to common shareholders of JOYY Inc. | (111,693) | (29,727) | 16,401 | (201,383) | (13,326) | |||||||
| Share-based compensation expenses | (9,095) | 14,536 | 8,745 | 13,963 | 23,281 | |||||||
| Amortization of intangible assets from business acquisitions | 11,683 | 12,409 | 12,365 | 31,986 | 24,774 | |||||||
| Impairment of investments | 90,499 | - | - | 90,499 | - | |||||||
| Gain on disposal of subsidiaries | (4,959) | - | - | (4,959) | - | |||||||
| (Gain) loss on disposal and deemed disposal of investments | (676) | (1,918) | 393 | (5,019) | (1,525) | |||||||
| Loss (gain) on fair value change of investments | 841 | 20,132 | (1,282) | 15,992 | 18,850 | |||||||
| Reconciling items on the share of equity method investments | 22,346 | 11,143 | 12,774 | 29,710 | 23,917 | |||||||
| Gain on extinguishment of debt and derivative | (1,649) | (2,115) | (4,017) | (1,266) | (6,132) | |||||||
| Interest expenses related to the convertible bonds’ amortization to face value | 713 | 629 | 619 | 1,407 | 1,248 | |||||||
| Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders | 2,345 | 2,250 | 2,250 | 4,736 | 4,500 | |||||||
| Income tax effects on non-GAAP adjustments | (568) | (4,518) | 3,833 | 25 | (685) | |||||||
| Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders | (256) | (1,930) | (629) | (223) | (2,559) | |||||||
| Non-GAAP net (loss) income from continuing operations attributable to controlling interest and common shareholders of JOYY Inc. | (469) | 20,891 | 51,452 | (24,532) | 72,343 | |||||||
| Non-GAAP net (loss) income from continuing operations per ADS | ||||||||||||
| —Basic | (0.01) | 0.29 | 0.72 | (0.31) | 1.00 | |||||||
| —Diluted | (0.01) | 0.28 | 0.65 | (0.31) | 0.93 | |||||||
| Weighted average number of ADS used in calculating Non-GAAP net (loss) income from continuing operations per ADS | ||||||||||||
| —Basic | 77,997,827 | 72,881,330 | 71,893,282 | 78,596,888 | 72,604,421 | |||||||
| —Diluted | 77,997,827 | 83,897,416 | 82,225,273 | 78,596,888 | 83,090,336 |
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | |||||||||
| June 30, 2022 | |||||||||
| Bigo | All other | Elimination(1) | Total | ||||||
| US$ | US$ | US$ | US$ | ||||||
| Net revenues | |||||||||
| Live streaming | 480,446 | 84,793 | - | 565,239 | |||||
| Others | 22,197 | 8,795 | (133) | 30,859 | |||||
| Total net revenues | 502,643 | 93,588 | (133) | 596,098 | |||||
| Cost of revenues(2) | (309,271) | (68,533) | 133 | (377,671) | |||||
| Gross profit | 193,372 | 25,055 | - | 218,427 | |||||
| Operating expenses(2) | |||||||||
| Research and development expenses | (45,997) | (16,879) | - | (62,876) | |||||
| Sales and marketing expenses | (78,690) | (19,725) | - | (98,415) | |||||
| General and administrative expenses | (11,100) | (12,580) | - | (23,680) | |||||
| Total operating expenses | (135,787) | (49,184) | - | (184,971) | |||||
| Other income | 3,601 | 1,685 | - | 5,286 | |||||
| Operating income (loss) | 61,186 | (22,444) | - | 38,742 | |||||
| Interest expenses | (1,117) | (3,096) | 857 | (3,356) | |||||
| Interest income and investment income | 1,750 | 17,049 | (857) | 17,942 | |||||
| Foreign currency exchange gain (losses), net | 12,839 | (330) | - | 12,509 | |||||
| Gain on extinguishment of debt and derivative | - | 4,017 | - | 4,017 | |||||
| Loss on disposal and deemed disposal of investments | - | (393) | - | (393) | |||||
| Gain on fair value change of investments | - | 1,282 | - | 1,282 | |||||
| Income (loss) before income tax expenses | 74,658 | (3,915) | - | 70,743 | |||||
| Income tax expenses | (8,583) | (14,361) | - | (22,944) | |||||
| Income (loss) before share of loss in equity method investments, net of income taxes | 66,075 | (18,276) | - | 47,799 | |||||
| Share of loss in equity method investments, net of income taxes | - | (32,837) | - | (32,837) | |||||
| Net income (loss) from continuing operations | 66,075 | (51,113) | - | 14,962 | |||||
(1) The elimination mainly consists of revenues and expenses generated from services among Bigo and all other segments, and interest income and interest expenses generated from the loan between Bigo and all other segments.
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
| Three Months Ended | ||||||
| June 30, 2022 | ||||||
| Bigo | All other | Total | ||||
| US$ | US$ | US$ | ||||
| Cost of revenues | 918 | 426 | 1,344 | |||
| Research and development expenses | 2,994 | 2,099 | 5,093 | |||
| Sales and marketing expenses | 193 | 89 | 282 | |||
| General and administrative expenses | 1,357 | 669 | 2,026 | |||
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | ||||||
| June 30, 2022 | ||||||
| Bigo | All other | Total | ||||
| US$ | US$ | US$ | ||||
| Operating income (loss) | 61,186 | (22,444) | 38,742 | |||
| Share-based compensation expenses | 5,462 | 3,283 | 8,745 | |||
| Amortization of intangible assets from business acquisitions | 11,225 | 1,140 | 12,365 | |||
| Non-GAAP operating income (loss) | 77,873 | (18,021) | 59,852 | |||
| Net income (loss) from continuing operations | 66,075 | (51,113) | 14,962 | |||
| Share-based compensation expenses | 5,462 | 3,283 | 8,745 | |||
| Amortization of intangible assets from business acquisitions | 11,225 | 1,140 | 12,365 | |||
| Gain on fair value change of investments | - | (1,282) | (1,282) | |||
| Loss on disposal and deemed disposal of investments | - | 393 | 393 | |||
| Reconciling items on the share of equity method investments | - | 12,774 | 12,774 | |||
| Gain on extinguishment of debt and derivative | - | (4,017) | (4,017) | |||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 619 | 619 | |||
| Income tax effects on non-GAAP adjustments | 3,578 | 255 | 3,833 | |||
| Non-GAAP net income (loss) from continuing operations | 86,340 | (37,948) | 48,392 | |||
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | |||||||||
| March 31 2022 | |||||||||
| Bigo | All other | Elimination(1) | Total | ||||||
| US$ | US$ | US$ | US$ | ||||||
| Net revenues | |||||||||
| Live streaming | 513,154 | 76,945 | - | 590,099 | |||||
| Others | 21,429 | 12,283 | (31) | 33,681 | |||||
| Total net revenues | 534,583 | 89,228 | (31) | 623,780 | |||||
| Cost of revenues(2) | (350,563) | (72,092) | 31 | (422,624) | |||||
| Gross profit | 184,020 | 17,136 | - | 201,156 | |||||
| Operating expenses(2) | |||||||||
| Research and development expenses | (46,606) | (17,492) | - | (64,098) | |||||
| Sales and marketing expenses | (81,937) | (22,430) | - | (104,367) | |||||
| General and administrative expenses | (14,634) | (17,461) | - | (32,095) | |||||
| Total operating expenses | (143,177) | (57,383) | - | (200,560) | |||||
| Other income | 4,351 | 1,390 | - | 5,741 | |||||
| Operating income (loss) | 45,194 | (38,857) | - | 6,337 | |||||
| Interest expenses | (788) | (3,069) | 788 | (3,069) | |||||
| Interest income and investment income | 1,003 | 18,004 | (788) | 18,219 | |||||
| Foreign currency exchange losses, net | (2,857) | (507) | - | (3,364) | |||||
| Gain on extinguishment of debt and derivative | - | 2,115 | - | 2,115 | |||||
| Gain on disposal and deemed disposal of investments | - | 1,918 | - | 1,918 | |||||
| Loss on fair value change of investments | - | (20,132) | - | (20,132) | |||||
| Income (loss) before income tax benefits (expenses) | 42,552 | (40,528) | - | 2,024 | |||||
| Income tax benefits (expenses) | 2,108 | (1,303) | - | 805 | |||||
| Income (loss) before share of loss in equity method investments, net of income taxes | 44,660 | (41,831) | - | 2,829 | |||||
| Share of loss in equity method investments, net of income taxes | - | (35,689) | - | (35,689) | |||||
| Net income (loss) from continuing operations | 44,660 | (77,520) | - | (32,860) | |||||
(1) The elimination mainly consists of revenues and expenses generated from services among Bigo and all other segments, and interest income and interest expenses generated from the loan between Bigo and all other segments.
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
| Three Months Ended | |||||||
| March 31, 2022 | |||||||
| Bigo | All other | Total | |||||
| US$ | US$ | US$ | |||||
| Cost of revenues | 1,386 | 3,159 | 4,545 | ||||
| Research and development expenses | 4,629 | 1,781 | 6,410 | ||||
| Sales and marketing expenses | 77 | 174 | 251 | ||||
| General and administrative expenses | 1,443 | 1,887 | 3,330 | ||||
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | |||||||
| March 31 2022 | |||||||
| Bigo | All other | Total | |||||
| US$ | US$ | US$ | |||||
| Operating income (loss) | 45,194 | (38,857) | 6,337 | ||||
| Share-based compensation expenses | 7,535 | 7,001 | 14,536 | ||||
| Amortization of intangible assets from business acquisitions | 11,225 | 1,184 | 12,409 | ||||
| Non-GAAP operating income (loss) | 63,954 | (30,672) | 33,282 | ||||
| Net income (loss) from continuing operations | 44,660 | (77,520) | (32,860) | ||||
| Share-based compensation expenses | 7,535 | 7,001 | 14,536 | ||||
| Amortization of intangible assets from business acquisitions | 11,225 | 1,184 | 12,409 | ||||
| Loss on fair value change of investments | - | 20,132 | 20,132 | ||||
| Gain on disposal and deemed disposal of investments | - | (1,918) | (1,918) | ||||
| Reconciling items on the share of equity method investments | - | 11,143 | 11,143 | ||||
| Gain on extinguishment of debt and derivative | - | (2,115) | (2,115) | ||||
| Interest expenses related to the convertible bonds’ amortization to face value | - | 629 | 629 | ||||
| Income tax effects on non-GAAP adjustments | (3,517) | (1,001) | (4,518) | ||||
| Non-GAAP net income (loss) from continuing operations | 59,903 | (42,465) | 17,438 | ||||
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) | |||||
| (Loss) gain on extinguishment of debt and derivative | (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.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
| Three Months Ended | |||||||
| 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 | ||||
| Loss (gain) on extinguishment of debt and derivative | 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) | ||||
FAQ
What were JOYY's financial results for Q2 2022?
How did JOYY perform compared to Q2 2021?
What is JOYY's forecast for Q3 2022 revenue?
What dividend did JOYY declare for Q2 2022?
