SINGAPORE, Nov. 29, 2022 — JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”, formerly known as YY Inc.), a global video-based social media company, announced its unaudited financial results for the third quarter of 2022.
JOYY’s total net revenues in the third quarter of 2022 were US$586.7 million, with BIGO’s revenues reaching US$483.3 million. In the third quarter of 2022, JOYY’s non-GAAP net income[1] (excluding YY Live) was US$76.9 million with a corresponding non-GAAP net income margin[1] of 13.1%. BIGO generated US$84.1 million in net income with a corresponding net income margin of 17.4% in the third quarter of 2022. For the first three quarters of 2022, BIGO’s non-GAAP net income[1] was US$230.4 million, an increase of 193.3% compared to the corresponding period of 2021. In the third quarter of 2022, JOYY continued to record positive net operating cash flow of US$117.1 million.
In the third quarter, the MAUs of Bigo Live, JOYY’s global livestreaming social platform, reached a new historic high of 35.4 million, increasing by 14.2% year-over-year.
David Xueling Li, Chairman and CEO of JOYY, commented, “Our forward-looking strategic planning and effective execution of our optimization measures delivered another quarter of improved profitability in spite of the volatile macro environment. We continued to execute on our long-term growth strategy, focusing on product upgrades and emphasizing diverse localized content offerings. As a result, we achieved a steady and efficient expansion of Bigo Live’s user community, growing Bigo Live’s MAUs by 14.2% year over year to 35.4 million.”
“Going forward, we remain focused on building our long-term capabilities and delivering value to users and creators by iterating and evolving our diversified global product matrix.” Li said. “We are confident that our long-term efforts will further enhance our users’ social and entertainment experience, and ultimately boost the growth of our user community and global business. Looking ahead, we will be adaptive and responsive to the macro environment and continue to bolster our resilience and optimize our efficiency. As we are becoming increasingly efficient, we will be better positioned to capture long-term growth opportunities and generate sustainable shareholder value.”
Third Quarter 2022 Financial Highlights
- Net revenues for the third quarter of 2022 were US$586.7 million.
- Non-GAAP net income[1] from continuing operations attributable to controlling interest and common shareholders of JOYY for the third quarter of 2022 was US$76.9 million, compared to US$35.1 million in the third quarter of 2021. Non-GAAP net income margin[1] for the third quarter of 2022 was 13.1%, compared to 5.4% in the third quarter of 2021.
- As of September 30, 2022, JOYY had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of US$4,276.7 million. For the third quarter of 2022, net cash inflow from operating activities was US$117.1 million.
Third Quarter 2022 Business Highlights
Bigo Live
Bigo Live’s MAUs increased by 14.2% year over year in the quarter, reaching a new historic high of 35.4 million. Notably, MAUs in Europe and in the Middle East increased by 9.8% and 7.8% respectively, while MAUs in Southeast Asia and other emerging markets increased by 19.2% year over year. In Malaysia, Bigo Live launched BIGO Gagaga, an all-new online variety show, featuring entertainment content including gaming and standup comedy. The show starred Bigo Live’s most popular streamers and some of Malaysia’s top radio broadcasters, and combined elements of livestreaming with pre-existing forms of mainstream media to create a fresh and unique viewing experience. In the Middle East, Bigo Live once again collaborated with Mobile Legends: Bang Bang to stream one of the largest fall professional tournaments in the Middle East and North Africa. Bigo Live also held a world tour for its mascot, Dino. The 16-foot-high mascot visited landmarks in dozens of countries in Southeast Asia, Europe, and North America. During the tour, Bigo Live invited popular local streamers to host a number of performances for local audiences, which helped stimulate interest in Bigo Live and promoted brand awareness among local communities.
Likee
Following the trial-launch of the “Loop” feature in the U.S. and Europe in the second quarter, Likee officially introduced “Loop” to other regions around the world in the third quarter. This feature has helped users with similar interests better connect and share content, and has further improved the quality of Likee’s user interactions. As a result, the number of videos shared per user per day in the anime community increased by 379% sequentially in the third quarter, while in-app instant messaging users grew by 7.1%. The average user time spent on Likee also increased by 21.5% sequentially in the third quarter. In addition to its regular localized activities, Likee expanded its operational efforts to include activities that have a positive impact on local communities. For example, after flooding in some Southeast Asian countries in July, Likee launched dedicated pages for local users to share information on government relief, emergency response, and other breaking details of the disaster in real time. Separately, Likee launched a campaign in South Asia aiming to raise public awareness of energy conservation, providing users with convenient access to important and useful information. The campaign attracted the participation of more than 1 million users.
Hago
During the third quarter, Hago’s livestreaming revenue and number of paying users both increased year over year. Hago launched a one-on-one voice chat feature and upgraded its user loyalty benefits, which promoted user interaction and improved the loyalty of its paying users. Both initiatives drove growth in long tail users’ spending. Hago also introduced further updates to its new feature, Hago Space. Users were granted greater freedom in designing the appearance and costumes of their 3D avatars, and given the opportunity to engage and interact in new 3D virtual scenes such as karaoke. Both updates contributed to an increasingly innovative, immersive, and interactive experience. Thanks to these upgrades, Hago Space’s penetration rate and average user time spent both improved significantly over the previous quarter. More importantly, revenues from Hago Space increased by 409% sequentially.
[1]. For details of the non-GAAP measures, including the reconciliations of GAAP measures to non-GAAP measures, please refer to the press release titled “JOYY Reports Third Quarter 2022 Unaudited Financial Results” issued by the Company on November 29, 2022.
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