Bay Street News

JOYY Reports First Quarter 2024 Unaudited Financial Results

SINGAPORE, May 29, 2024 (GLOBE NEWSWIRE) — JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”), a global technology company, today announced its unaudited financial results for the first quarter of 2024.

First Quarter 2024 Financial Highlights1

First Quarter 2024 Operational Highlights

Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “We are off to a strong start in 2024, executing on our strategic priorities and delivering results that exceeded our expectations. During the quarter, BIGO maintained its topline recovery momentum, achieving an 8.0% year-over-year increase in revenue, driven by a steady 6.9% year-over-year increase in paying users. In addition, as we continued to strategically expand and diversify our revenue streams, BIGO’s non-livestreaming revenues grew substantially year over year. Continued disciplined cost expenditures and efficiency improvement contributed to year-over-year increases of 61.8% and 34.8% in GAAP and non-GAAP net profits at the group level, respectively.”

“Backed by our robust cash flow and strong financial position, we remain committed to returning value to our shareholders. In the first quarter of 2024, we repurchased an additional US$54.5 million worth of our shares, reflecting our confidence in the company’s long-term prospects. Looking ahead, we will continue to enhance our product experience and drive operational innovations to generate a sustainable and profitable growth for our global business.”

First Quarter 2024 Financial Results

NET REVENUES

Net revenues were US$564.6 million in the first quarter of 2024, compared to US$583.6 million in the corresponding period of 2023.

Live streaming revenues were US$466.4 million in the first quarter of 2024, compared to US$520.4 million in the corresponding period of 2023, primarily due to our proactive adjustments to certain non-core products.

Other revenues increased by 55.2% to US$98.2 million in the first quarter of 2024 from US$63.2 million in the corresponding period of 2023, primarily due to the substantial growth of our advertisement revenues as we strategically expanded and diversified the revenue streams of BIGO.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 2.6% to US$369.2 million in the first quarter of 2024 from US$379.0 million in the corresponding period of 2023. Revenue-sharing fees and content costs were US$268.4 million in the first quarter of 2024, compared to US$248.1 million in the corresponding period of 2023.

Gross profit was US$195.4 million in the first quarter of 2024, compared to US$204.6 million in the corresponding period of 2023. Gross margin was 34.6% in the first quarter of 2024, compared to 35.1% in the corresponding period of 2023.

OPERATING EXPENSES AND INCOME

Operating expenses were US$195.4 million in the first quarter of 2024, compared to US$205.3 million in the corresponding period of 2023. Among the operating expenses, sales and marketing expenses decreased to US$94.6 million in the first quarter of 2024 from US$97.6 million in the corresponding period of 2023. Research and development expenses decreased to US$69.0 million in the first quarter of 2024 from US$75.8 million in the corresponding period of 2023, primarily due to decreased personnel-related expenses and share-based compensation expenses.

Operating income was US$3.5 million in the first quarter of 2024, compared to US$2.5 million in the corresponding period of 2023. Operating income margin was 0.6% in the first quarter of 2024, compared to 0.4% in the corresponding period of 2023.

Non-GAAP operating income7 was US$24.8 million in the first quarter of 2024, compared to US$27.8 million in the corresponding period of 2023. Non-GAAP operating income margin8 was 4.4% in the first quarter of 2024, compared to 4.8% in the corresponding period of 2023.

NET INCOME

Net income attributable to controlling interest of JOYY was US$45.3 million in the first quarter of 2024, compared to US$28.0 million in the corresponding period of 2023. Net income margin was 8.0% in the first quarter of 2024, compared to 4.8% in the corresponding period of 2023.

Non-GAAP net income attributable to controlling interest and common shareholders of JOYY was US$67.2 million in the first quarter of 2024, compared to US$49.9 million in the corresponding period of 2023. Non-GAAP net income margin9 was 11.9% in the first quarter of 2024, compared to non-GAAP net income margin of 8.5% in the corresponding period of 2023.

NET INCOME PER ADS

Diluted net income per ADS10 was US$0.69 in the first quarter of 2024, compared to US$0.35 in the corresponding period of 2023.

Non-GAAP diluted net income per ADS11 was US$1.02 in the first quarter of 2024, compared to US$0.64 in the corresponding period of 2023.

BALANCE SHEET AND CASH FLOWS

As of March 31, 2024, the Company had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of US$3,578.4 million. For the first quarter of 2024, net cash from operating activities was US$75.0 million.

SHARES OUTSTANDING

As of March 31, 2024, the Company had a total of 1,186.4 million common shares outstanding, representing the equivalent of 59.3 million ADSs assuming the conversion of all common shares into ADSs.

Business Outlook

For the second quarter of 2024, the Company expects net revenues to be between US$538 million and US$569 million. This forecast reflects the Company’s current and preliminary views on the market, operational conditions and business strategies, which are subject to changes, particularly as to the potential impact from increasing macroeconomic uncertainties.

Share Repurchase Program

During the quarter ended March 31, 2024, the Company repurchased US$54.5 million of its ADSs on the open market under its current US$530 million share repurchase program, which is effective till the end of November 2024.

Conference Call Information

The Company will hold a conference call at 9:00 PM U.S. Eastern Time on Tuesday, May 28, 2024 (9:00 AM Singapore/Hong Kong Time on Wednesday, May 29, 2024). Details for the conference call are as follows:

Event Title: JOYY Inc. First Quarter 2024 Earnings Conference Call

Conference ID: #10039137

All participants may use the link provided below to complete the online registration process in advance of the conference call. Upon registration, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique PIN by email.

PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10039137-p4bm1f.html

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.joyy.com.

The replay will be accessible through June 5, 2024, by dialing the following numbers:

United States: 1-855-883-1031
Singapore: 800-101-3223
Hong Kong: 800-930-639
Conference ID: #10039137
   

About JOYY Inc.

JOYY is a leading global technology company with a mission to enrich lives through technology. JOYY currently operates several social products, including Bigo Live for live streaming, Likee for short-form videos, Hago for multiplayer social networking, an instant messaging product, and others. The Company has created a highly engaging and vibrant user community for users across the globe. JOYY’s ADSs have been listed on the NASDAQ since November 2012.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this press release, as well as JOYY’s strategic and operational plans, contain forward-looking statements. JOYY may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JOYY’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JOYY’s goals and strategies; JOYY’s future business development, results of operations and financial condition; the expected growth of the global online communication social platform market; the expectation regarding the rate at which to gain active users, especially paying users; JOYY’s ability to monetize the user base; the developments in the sale of YY Live; fluctuations in global economic and business conditions; and assumptions underlying or related to any of the foregoing. A more detailed and full discussion of those risks and other potential risks is included in JOYY’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JOYY does not undertake any obligation to update any forward- looking statement, except as required under applicable law.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). JOYY uses non-GAAP operating income, non-GAAP operating (loss) margin, non-GAAP net income (loss) attributable to controlling interest of JOYY, non-GAAP net income (loss) margin attributable to controlling interest of JOYY, non-GAAP net income (loss) attributable to common shareholders of JOYY, and basic and diluted non-GAAP net income (loss) per ADS, all of which are non-GAAP financial measures adjusted from the most comparable U.S. GAAP results. Non-GAAP operating income (loss) is operating income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, and gain (loss) on disposal of subsidiaries and business. Non-GAAP operating (loss) margin is non-GAAP operating income as a percentage of net revenues. Non-GAAP net income (loss) is net income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments (referring to share of income (loss) from equity method investments resulting from non-recurring or non-cash items of the equity method investments), gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, and income tax effects of the above non-GAAP reconciling items. Non-GAAP net income (loss) attributable to controlling interest of JOYY is net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income attributable to non-controlling interest shareholders. Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of JOYY as a percentage of net revenues. Non-GAAP net income (loss) attributable to common shareholders of JOYY is net income (loss) attributable to common shareholders of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders, gain on repurchase of redeemable convertible preferred shares of a subsidiary and income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net income (loss) attributable to non-controlling interest shareholders. After the non-GAAP adjustment, non-GAAP net income (loss) attributable to controlling interests of JOYY is equal to the non-GAAP net income (loss) attributable to common shareholders of JOYY. Basic and diluted non-GAAP net income (loss) per ADS is non-GAAP net income (loss) attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of basic and diluted net income per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of above reconciling items adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of (i) share-based compensation expenses and amortization of intangible assets from business acquisitions, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, which have been and will continue to be significant recurring expenses in its business, (ii) impairment of goodwill and investments, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders and gain on repurchase of redeemable convertible preferred shares of a subsidiary which may not be recurring in its business, and (iii) income tax expenses and non-GAAP adjustments for net income (loss) attributable to non-controlling interest shareholders, which are affected by the above non-GAAP reconciling items. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income (loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release.

Investor Relations Contact

JOYY Inc.
Jane Xie/Maggie Yan
Email: joyy-ir@joyy.com

ICR, Inc.
Robin Yang
Email: joyy@icrinc.com

1On November 16, 2020, the Company entered into definitive agreements with affiliates of Baidu, Inc. (“Baidu”), subsequently amended on February 7, 2021. Pursuant to the agreements, Baidu would acquire JOYY’s video-based entertainment live streaming business in mainland China, which the Company refers to as YY Live, including the YY mobile app, the YY.com website and the YY PC app, among others, for an aggregate purchase price of approximately US$3.6 billion in cash, subject to certain adjustments. Subsequently, the sale was substantially completed as of February 8, 2021, with certain matters remaining to be completed, including necessary regulatory approvals from government authorities. As a result, YY Live’s historical results were presented in the Company’s consolidated financial statements as discontinued operations and the Company ceased consolidation of YY Live’s business since February 8, 2021. On January 1, 2024, the Company received a written notice from an affiliate of Baidu, purporting to terminate the share purchase agreement. Baidu asserted in the written notice that it has and exercised the right to terminate the referenced share purchase agreement and effectively cancel the transaction. The Company is in discussion with Baidu on the next steps following the termination of the share purchase agreement. The Company is also seeking legal advice and will consider all options at its disposal in response to Baidu’s written notice and expressly reserve all rights. From January 1, 2024 to the date of this press release, the Company has not obtained control of YY Live and has not consolidated YY Live. To the date of this press release, the latest development of the transaction has not affected the Company’s operating activities or financial results.

The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated. For the avoidance of confusion, the continuing operations for the three months ended March 31, 2023, December 31, 2023 and March 31, 2024, as presented in this press release, primarily consisted of BIGO segment (primarily including Bigo Live, Likee and imo) and the All other segment, excluding YY Live.

2Net income (loss) attributable to controlling interest of JOYY is net income (loss) less net (loss) income attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders.

3Non-GAAP net income (loss) attributable to controlling interest of JOYY is a non-GAAP financial measure, which is defined as net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments which refer to those similar non-GAAP reconciling items of the Company, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds amortization to face value, income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for net (loss) income attributable to non-controlling interest shareholders. These adjustments amounted to US$21.9 million and US$21.9 million in the first quarter of 2024 and 2023, respectively. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

4Refers to average mobile monthly active users of the social entertainment platforms operated by the Company, including Bigo Live, Likee, imo and Hago. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile active users for each month of such period, by (ii) the number of months in such period.

5The number of paying users during a given period is calculated as the cumulative number of registered user accounts that have purchased virtual items or other products and services on Bigo Live, Likee or imo at least once during the relevant period.

6Average revenue per user is calculated by dividing our total revenues from live streaming on Bigo Live, Likee and imo during a given period by the number of paying users for the Company’s live streaming services on these platforms for that period.

7 Non-GAAP operating income (loss) is a non-GAAP financial measure, which is defined as operating income (loss) excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain (loss) on disposal of subsidiaries and business. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

8Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP operating income (loss) as a percentage of net revenues. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

9Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of JOYY as a percentage of net revenues.

10  ADS refers to American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income (loss) per ADS is net income (loss) attributable to common shareholders of JOYY divided by weighted average number of diluted ADS.

11  Non-GAAP diluted net income (loss) per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of diluted net income (loss) per ADS. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS and per ADS data)
               
      December 31,
  March 31,
      2023
  2024
      US$   US$
Assets            
Current assets            
  Cash and cash equivalents   1,063,956     728,228  
  Restricted cash and cash equivalents   319,250     374,111  
  Short-term deposits   1,970,346     2,229,229  
  Restricted short-term deposits   57,243     57,243  
  Short-term investments   274,846     189,611  
  Accounts receivable, net   130,700     126,703  
  Amounts due from related parties   810     636  
  Prepayments and other current assets(1)   255,489     264,875  
               
Total current assets   4,072,640     3,970,636  
               
Non-current assets            
  Long-term deposits   130,000     290,000  
  Investments   544,542     555,825  
  Property and equipment, net   390,681     415,044  
  Land use rights, net   316,070     313,418  
  Intangible assets, net   333,715     318,314  
  Right-of-use assets, net   30,173     27,816  
  Goodwill   2,649,281     2,649,278  
  Other non-current assets   16,763     16,252  
               
Total non-current assets   4,411,225     4,585,947  
               
Total assets   8,483,865     8,556,583  
               
Liabilities, mezzanine equity and shareholders’ equity            
  Short-term loan   52,119     77,831  
  Accounts payable   66,755     65,692  
  Deferred revenue   73,673     73,333  
  Advances from customers   6,047     7,249  
  Income taxes payable   86,100     90,001  
  Accrued liabilities and other current liabilities(1)   2,381,189     2,386,996  
  Amounts due to related parties   2,533     2,658  
  Lease liabilities due within one year   12,388     11,661  
  Convertible bonds   405,603     405,840  
               
Total current liabilities   3,086,407     3,121,261  
               
Non-current liabilities            
  Lease liabilities   18,422     16,829  
  Deferred revenue   12,932     13,567  
  Deferred tax liabilities   53,955     50,264  
               
Total non-current liabilities   85,309     80,660  
               
Total liabilities   3,171,716     3,201,921  
               
 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
           
      December 31,   March 31,
      2023   2024
      US$   US$
           
Mezzanine equity   22,133     22,533  
           
Shareholders’ equity        
  Class A common shares (US$0.00001 par value; 10,000,000,000 and 10,000,000,000 shares authorized, 1,317,840,464 shares issued and 890,843,639 shares outstanding as of December 31, 2023; 1,317,840,464 shares issued and 859,936,179 shares outstanding as of March 31, 2024, respectively)   9     9  
  Class B common shares (US$0.00001 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 326,509,555 and 326,509,555 shares issued and outstanding as of December 31, 2023 and March 31, 2024, respectively)   3     3  
  Treasury Shares (US$0.00001 par value; 426,996,825 and 457,904,285 shares held as of December 31, 2023 and March 31, 2024, respectively)   (913,939 )   (968,433 )
  Additional paid-in capital   3,282,754     3,330,791  
  Statutory reserves   37,709     37,709  
  Retained earnings   2,947,160     2,992,098  
  Accumulated other comprehensive loss   (197,010 )   (196,756 )
           
Total JOYY Inc.’s shareholders’ equity   5,156,686     5,195,421  
           
Non-controlling interests   133,330     136,708  
           
Total shareholders’ equity   5,290,016     5,332,129  
           
Total liabilities, mezzanine equity and shareholders’ equity   8,483,865     8,556,583  
           
(1) JOYY has ceased consolidation of YY Live business since February 8, 2021 and classified and presented all the related assets and liabilities related to YY Live business on a net basis within prepayments and other current assets. The consideration received by the Company to date has been recorded as advance payments received within accrued liabilities and other current liabilities.
 
 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share, ADS and per ADS data)
             
    Three Months Ended
    March 31,   December 31,   March 31,
    2023   2023   2024
    US$   US$   US$
Net revenues            
Live streaming   520,393     486,196     466,391  
Others   63,235     83,643     98,169  
             
Total net revenues(1)   583,628     569,839     564,560  
             
Cost of revenues(2)   (379,002 )   (368,360 )   (369,197 )
             
Gross profit   204,626     201,479     195,363  
             
Operating expenses(2)            
Research and development expenses   (75,775 )   (72,580 )   (69,039 )
Sales and marketing expenses   (97,599 )   (92,258 )   (94,638 )
General and administrative expenses   (31,969 )   (34,587 )   (31,743 )
             
Total operating expenses   (205,343 )   (199,425 )   (195,420 )
             
Other income   3,248     2,742     3,600  
             
Operating income   2,531     4,796     3,543  
             
Interest expenses   (3,109 )   (2,115 )   (2,136 )
Interest income and investment income   44,135     47,145     48,927  
Foreign currency exchange (losses) gains, net   (9,921 )   (8,158 )   768  
Loss on disposal and deemed disposal of investments   (213 )        
Gain on fair value change of investments   1,285     6,263     985  
             
Income before income tax expenses   34,708     47,931     52,087  
             
Income tax expenses   (8,158 )   (2,315 )   (4,537 )
             
Income before share of loss in equity method investments, net of income taxes   26,550     45,616     47,550  
             
Share of loss in equity method investments, net of income taxes   (6,606 )   (5,527 )   (7,395 )
             
Net income   19,944     40,089     40,155  
             
Net loss attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders   8,042     5,746     5,131  
             
Net income attributable to controlling interest of JOYY Inc.   27,986     45,835     45,286  
             
Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value   (1,566 )   (350 )   (347 )
Cumulative dividend on subsidiary’s Series A Preferred Shares   (1,000 )        
             
Net income attributable to common shareholders of JOYY Inc.   25,420     45,485     44,939  
             
 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
                   
    Three Months Ended
    March 31,
  December 31,
  March 31,
    2023
  2023
  2024
    US$     US$     US$  
                   
Net income per ADS                  
——Basic   0.36     0.74     0.73  
——Diluted   0.35     0.70     0.69  
                   
Weighted average number of ADS used in calculating net income per ADS                  
——Basic   70,451,631     61,876,261     61,783,347  
——Diluted   80,846,062     67,384,074     67,152,622  
                   
                   
(1)    Revenues by geographical areas were as follows:
                   
    Three Months Ended
    March 31,
  December 31,
  March 31,
    2023
  2023
  2024
    US$     US$     US$  
                   
Developed countries and regions   217,851     266,353     291,036  
Middle East   118,786     103,020     87,458  
Mainland China   122,819     68,886     59,801  
Southeast Asia and others   124,172     131,580     126,265  
                   
Note: Developed countries and region mainly included the United States of America, Great Britain, Japan, South Korea and Australia. Middle East mainly included Saudi Arabia and other countries located in the region. Southeast Asia and others mainly included Indonesia, Vietnam and rest of the world.
                   
(2)    Share-based compensation was allocated in cost of revenues and operating expenses as follows:
                   
    Three Months Ended
    March 31,
  December 31,
  March 31,
    2023
  2023
  2024
    US$     US$     US$  
                   
Cost of revenues   1,236     821     663  
Research and development expenses   5,761     4,020     3,392  
Sales and marketing expenses   234     133     131  
General and administrative expenses   2,108     2,271     1,942  
                   
 
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share, ADS and per ADS data)
             
    Three Months Ended
    March 31,   December 31,   March 31,
    2023   2023   2024
    US$   US$   US$
             
Operating income   2,531     4,796     3,543  
Share-based compensation expenses   9,339     7,245     6,128  
Amortization of intangible assets from business acquisitions   15,890     15,890     15,132  
             
Non-GAAP operating income   27,760     27,931     24,803  
             
             
Net income   19,944     40,089     40,155  
Share-based compensation expenses   9,339     7,245     6,128  
Amortization of intangible assets from business acquisitions   15,890     15,890     15,132  
Loss on disposal and deemed disposal of investments   213          
Gain on fair value change of investments   (1,285 )   (6,263 )   (985 )
Interest expenses related to the convertible bonds’ amortization to face value   578     239     237  
Income tax effects on non-GAAP adjustments   (2,311 )   (2,095 )   (2,222 )
Reconciling items on the share of equity method investments   724     4,278     4,434  
             
Non-GAAP net income   43,092     59,383     62,879  
             
             
Net income attributable to common shareholders of JOYY Inc.   25,420     45,485     44,939  
Share-based compensation expenses   9,339     7,245     6,128  
Amortization of intangible assets from business acquisitions   15,890     15,890     15,132  
Loss on disposal and deemed disposal of investments   213          
Gain on fair value change of investments   (1,285 )   (6,263 )   (985 )
Interest expenses related to the convertible bonds’ amortization to face value   578     239     237  
Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders   2,566     350     347  
Income tax effects on non-GAAP adjustments   (2,311 )   (2,095 )   (2,222 )
Reconciling items on the share of equity method investments   724     4,278     4,434  
Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders   (1,267 )   (929 )   (806 )
             
Non-GAAP net income attributable to controlling interest and common shareholders of JOYY Inc.   49,867     64,200     67,204  
             
             
             
Non-GAAP net income per ADS            
——Basic   0.71     1.04     1.09  
——Diluted   0.64     0.97     1.02  
             
Weighted average number of ADS used in calculating Non-GAAP net income per ADS            
——Basic   70,451,631     61,876,261     61,783,347  
——Diluted   80,846,062     67,384,074     67,152,622  
             
 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
               
  Three Months Ended
  March 31, 2024
               
  BIGO   All other   Elimination(1)   Total
  US$   US$   US$   US$
Net revenues              
Live streaming 442,154     24,237         466,391  
Others 63,049     35,518     (398 )   98,169  
               
Total net revenues 505,203     59,755     (398 )   564,560  
               
Cost of revenues(2) (328,583 )   (40,692 )   78     (369,197 )
               
Gross profit 176,620     19,063     (320 )   195,363  
               
Operating expenses(2)              
Research and development expenses (41,022 )   (28,258 )   241     (69,039 )
Sales and marketing expenses (74,430 )   (20,232 )   24     (94,638 )
General and administrative expenses (14,075 )   (17,723 )   55     (31,743 )
               
Total operating expenses (129,527 )   (66,213 )   320     (195,420 )
               
Other income 3,296     304         3,600  
               
Operating income (loss) 50,389     (46,846 )       3,543  
               
Interest expenses (1,765 )   (1,681 )   1,310     (2,136 )
Interest income and investment income 15,441     34,796     (1,310 )   48,927  
Foreign currency exchange gains, net 379     389         768  
Gain (loss) on fair value change of investments 1,267     (282 )       985  
               
Income (loss) before income tax (expenses) benefits 65,711     (13,624 )       52,087  
               
Income tax (expenses) benefits (4,662 )   125         (4,537 )
               
Income (loss) before share of loss in equity method investments, net of income taxes 61,049     (13,499 )       47,550  
               
Share of loss in equity method investments, net of income taxes     (7,395 )       (7,395 )
               
Net income (loss) 61,049     (20,894 )       40,155  
               
                   
(1) The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments, and interest income and interest expenses generated from the loan between BIGO and All other segments.
                   
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
                   
    Three Months Ended
    March 31, 2024
                   
    BIGO
  All other
  Total
    US$   US$   US$
                   
Cost of revenues   391     272     663  
Research and development expenses   1,641     1,751     3,392  
Sales and marketing expenses   47     84     131  
General and administrative expenses   96     1,846     1,942  
                   
 
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
             
    Three Months Ended
    March 31, 2024
             
    BIGO   All other   Total
    US$   US$   US$
             
Operating income (loss)   50,389     (46,846 )   3,543  
Share-based compensation expenses   2,175     3,953     6,128  
Amortization of intangible assets from business acquisitions   10,467     4,665     15,132  
             
Non-GAAP operating income (loss)   63,031     (38,228 )   24,803  
             
             
Net income (loss)   61,049     (20,894 )   40,155  
Share-based compensation expenses   2,175     3,953     6,128  
Amortization of intangible assets from business acquisitions   10,467     4,665     15,132  
(Gain) loss on fair value change of investments   (1,267 )   282     (985 )
Interest expenses related to the convertible bonds’ amortization to face value       237     237  
Income tax effects on non-GAAP adjustments   (1,203 )   (1,019 )   (2,222 )
Reconciling items on the share of equity method investments       4,434     4,434  
             
Non-GAAP net income (loss)   71,221     (8,342 )   62,879  
             
 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
               
  Three Months Ended
  December 31, 2023
               
  BIGO   All other   Elimination(1)   Total
  US$   US$   US$   US$
Net revenues              
Live streaming 459,152     27,044         486,196  
Others 32,109     51,992     (458 )   83,643  
               
Total net revenues 491,261     79,036     (458 )   569,839  
               
Cost of revenues(2) (308,977 )   (59,481 )   98     (368,360 )
               
Gross profit 182,284     19,555     (360 )   201,479  
               
Operating expenses(2)              
Research and development expenses (41,011 )   (31,839 )   270     (72,580 )
Sales and marketing expenses (74,944 )   (17,343 )   29     (92,258 )
General and administrative expenses (15,321 )   (19,327 )   61     (34,587 )
               
Total operating expenses (131,276 )   (68,509 )   360     (199,425 )
               
Other income 2,003     739         2,742  
               
Operating income (loss) 53,011     (48,215 )       4,796  
               
Interest expenses (1,803 )   (1,652 )   1,340     (2,115 )
Interest income and investment income 13,262     35,223     (1,340 )   47,145  
Foreign currency exchange (losses) gains, net (8,176 )   18         (8,158 )
Gain on fair value change of investments 1,060     5,203         6,263  
               
Income (loss) before income tax (expenses) benefits 57,354     (9,423 )       47,931  
               
Income tax (expenses) benefits (5,334 )   3,019         (2,315 )
               
Income (loss) before share of loss in equity method investments, net of income taxes 52,020     (6,404 )       45,616  
               
Share of loss in equity method investments, net of income taxes     (5,527 )       (5,527 )
               
Net income (loss) 52,020     (11,931 )       40,089  
               
                   
(1) The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments, and interest income and interest expenses generated from the loan between BIGO and All other segments.
                   
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
                   
    Three Months Ended
    December 31, 2023
                   
    BIGO
  All other
  Total
    US$   US$   US$
                   
Cost of revenues   492     329     821  
Research and development expenses   1,856     2,164     4,020  
Sales and marketing expenses   38     95     133  
General and administrative expenses   351     1,920     2,271  
                   
 
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
             
    Three Months Ended
    December 31, 2023
             
    BIGO   All other   Total
    US$   US$   US$
             
Operating income (loss)   53,011     (48,215 )   4,796  
Share-based compensation expenses   2,737     4,508     7,245  
Amortization of intangible assets from business acquisitions   11,225     4,665     15,890  
             
Non-GAAP operating income (loss)   66,973     (39,042 )   27,931  
             
             
Net income (loss)   52,020     (11,931 )   40,089  
Share-based compensation expenses   2,737     4,508     7,245  
Amortization of intangible assets from business acquisitions   11,225     4,665     15,890  
Gain on fair value change of investments   (1,060 )   (5,203 )   (6,263 )
Interest expenses related to the convertible bonds’ amortization to face value       239     239  
Income tax effects on non-GAAP adjustments   (1,415 )   (680 )   (2,095 )
Reconciling items on the share of equity method investments       4,278     4,278  
             
Non-GAAP net income (loss)   63,507     (4,124 )   59,383  
             
 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
               
  Three Months Ended
  March 31, 2023
               
  BIGO   All other   Elimination(1)   Total
  US$   US$   US$   US$
Net revenues              
Live streaming 446,586     73,807         520,393  
Others 21,356     41,909     (30 )   63,235  
               
Total net revenues 467,942     115,716     (30 )   583,628  
               
Cost of revenues(2) (293,705 )   (85,327 )   30     (379,002 )
               
Gross profit 174,237     30,389         204,626  
               
Operating expenses(2)              
Research and development expenses (41,212 )   (34,563 )       (75,775 )
Sales and marketing expenses (74,084 )   (23,515 )       (97,599 )
General and administrative expenses (13,701 )   (18,268 )       (31,969 )
               
Total operating expenses (128,997 )   (76,346 )       (205,343 )
               
Other income 2,950     298         3,248  
               
Operating income (loss) 48,190     (45,659 )       2,531  
               
Interest expenses (1,463 )   (2,797 )   1,151     (3,109 )
Interest income and investment income 9,216     36,070     (1,151 )   44,135  
Foreign currency exchange losses, net (9,680 )   (241 )       (9,921 )
Loss on disposal and deemed disposal of investments     (213 )       (213 )
Gain on fair value change of investments 688     597         1,285  
               
Income (loss) before income tax expenses 46,951     (12,243 )       34,708  
               
Income tax expenses (3,569 )   (4,589 )       (8,158 )
               
Income (loss) before share of loss in equity method investments, net of income taxes 43,382     (16,832 )       26,550  
               
Share of loss in equity method investments, net of income taxes     (6,606 )       (6,606 )
               
Net income (loss) 43,382     (23,438 )       19,944  
               
                   
(1) The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments, and interest income and interest expenses generated from the loan between BIGO and All other segments.
                   
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
                   
    Three Months Ended
    March 31, 2023
                   
    BIGO
  All other
  Total
    US$   US$   US$
                   
Cost of revenues   650     586     1,236  
Research and development expenses   2,827     2,934     5,761  
Sales and marketing expenses   96     138     234  
General and administrative expenses   758     1,350     2,108  
                   
 
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
             
    Three Months Ended
    March 31, 2023
             
    BIGO   All other   Total
    US$   US$   US$
             
Operating income (loss)   48,190     (45,659 )   2,531  
Share-based compensation expenses   4,331     5,008     9,339  
Amortization of intangible assets from business acquisitions   11,225     4,665     15,890  
             
Non-GAAP operating income (loss)   63,746     (35,986 )   27,760  
             
             
Net income (loss)   43,382     (23,438 )   19,944  
Share-based compensation expenses   4,331     5,008     9,339  
Amortization of intangible assets from business acquisitions   11,225     4,665     15,890  
Loss on disposal and deemed disposal of investments       213     213  
Gain on fair value change of investments   (688 )   (597 )   (1,285 )
Interest expenses related to the convertible bonds’ amortization to face value       578     578  
Income tax effects on non-GAAP adjustments   (1,415 )   (896 )   (2,311 )
Reconciling items on the share of equity method investments       724     724  
             
Non-GAAP net income (loss)   56,835     (13,743 )   43,092  
             


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