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JOYY Reports Second Quarter 2024 Unaudited Financial Results

Globe Newswire 27-Aug-2024 7:00 PM

SINGAPORE, Aug. 28, 2024 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ:YY) ("JOYY" or the "Company"), a global technology company, today announced its unaudited financial results for the second quarter of 2024.

Second Quarter 2024 Financial Highlights1

  • Net revenues were US$565.1 million, compared to US$547.3 million in the corresponding period of 2023.
  • Net income attributable to controlling interest of JOYY2 was US$52.1 million, compared to US$155.1 million in the corresponding period of 2023.
  • Non-GAAP net income attributable to controlling interest and common shareholders of JOYY3 was US$74.0 million, compared to US$97.3 million in the corresponding period of 2023.

Second Quarter 2024 Operational Highlights

  • Average mobile MAUs of Bigo Live was 37.7 million, compared to 38.5 million in the corresponding period of 2023.
  • Average mobile MAUs of Likee was 35.6 million, compared to 43.2 million in the corresponding period of 2023, primarily due to disciplined spending on user acquisition via advertisement.
  • Average mobile MAUs of Hago was 4.4 million, compared to 5.5 million in the corresponding period of 2023, primarily due to disciplined spending on user acquisition via advertisement.
  • Global average mobile MAUs4 was 275.2 million, compared to 275.6 million in the corresponding period of 2023.
  • Total number of paying users of BIGO (including Bigo Live, Likee and imo)5 was 1.66 million, compared to 1.53 million in the corresponding period of 2023.
  • Average revenue per paying user of BIGO (including Bigo Live, Likee and imo)6 was US$233.5, compared to US$248.0 in the corresponding period of 2023.

Ms. Ting Li, Chairperson and Chief Executive Officer of JOYY, commented, "In the second quarter, we continued to build on our growth momentum, delivering solid results. BIGO revenue reached US$507.2 million, a 7.7% year-over-year increase, marking the fourth consecutive quarter of recovery. By persistently expanding and diversifying our revenue streams, BIGO's advertising business maintained rapid growth, emerging as a key driver behind our topline recovery. Our focus on operational refinement across all areas and cost optimization has led to improved efficiency, driving a quarter-over-quarter increase in both GAAP and non-GAAP net profits. Furthermore, we continued to implement our share repurchase program, buying back an additional US$71.4 million worth of our shares during the quarter, demonstrating our commitment to delivering value to our shareholders."

"Globalization through localization remains a strategic priority, and we believe there is still ample room for expansion. Looking ahead, we will continue to innovate product features, enhance user experience, and drive operating efficiency to generate sustainable and profitable growth for our global business."

Second Quarter 2024 Financial Results

NET REVENUES

Net revenues were US$565.1 million in the second quarter of 2024, compared to US$547.3 million in the corresponding period of 2023.

Live streaming revenues were US$459.7 million in the second quarter of 2024, compared to US$477.0 million in the corresponding period of 2023.

Other revenues increased by 49.8% to US$105.4 million in the second quarter of 2024 from US$70.4 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 increased by 4.8% to US$366.2 million in the second quarter of 2024 from US$349.6 million in the corresponding period of 2023. Revenue-sharing fees and content costs increased to US$263.9 million in the second quarter of 2024 from US$222.6 million in the corresponding period of 2023, mainly driven by increased traffic acquisition costs paid to third-party partners in relation to our advertising business.

Gross profit was US$198.9 million in the second quarter of 2024, compared to US$197.8 million in the corresponding period of 2023. Gross margin was 35.2% in the second quarter of 2024, compared to 36.1% in the corresponding period of 2023.

OPERATING EXPENSES AND INCOME

Operating expenses were US$198.7 million in the second quarter of 2024, compared to US$191.7 million in the corresponding period of 2023. Among the operating expenses, research and development expenses decreased to US$69.9 million in the second quarter of 2024 from US$75.5 million in the corresponding period of 2023, primarily due to decreases in salaries and welfare of US$2.6 million and share-based compensation expenses of US$2.2 million. General and administrative expenses increased to US$40.7 million for the second quarter of 2024 from US$29.0 million in the corresponding period of 2023, primarily due to an impairment loss arising from equity investments.

Operating income was US$2.3 million in the second quarter of 2024, compared to US$9.4 million in the corresponding period of 2023. Operating income margin was 0.4% in the second quarter of 2024, compared to 1.7% in the corresponding period of 2023.

Non-GAAP operating income7 was US$30.0 million in the second quarter of 2024, compared to US$34.4 million in the corresponding period of 2023. Non-GAAP operating income margin8 was 5.3% in the second quarter of 2024, compared to 6.3% in the corresponding period of 2023.

NET INCOME

Net income attributable to controlling interest of JOYY was US$52.1 million in the second quarter of 2024, compared to US$155.1 million in the corresponding period of 2023. Net income margin was 9.2% in the second quarter of 2024, compared to 28.3% in the corresponding period of 2023. Our net income margin was higher in the previous year primarily due to realized gains from the disposal of certain equity investments of US$77.7 million and foreign currency exchange gains of US$20.3 million.

Non-GAAP net income attributable to controlling interest and common shareholders of JOYY was US$74.0 million in the second quarter of 2024, compared to US$97.3 million in the corresponding period of 2023. Non-GAAP net income margin9 was 13.1% in the second quarter of 2024, compared to non-GAAP net income margin of 17.8% in the corresponding period of 2023.

NET INCOME PER ADS

Diluted net income per ADS10 was US$0.83 in the second quarter of 2024, compared to US$2.02 in the corresponding period of 2023.

Non-GAAP diluted net income per ADS11 was US$1.17 in the second quarter of 2024, compared to US$1.29 in the corresponding period of 2023.

BALANCE SHEET AND CASH FLOWS

As of June 30, 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$3,256.8 million. For the second quarter of 2024, net cash from operating activities was US$71.1 million.

SHARES OUTSTANDING

As of June 30, 2024, the Company had a total of 1,142.2 million common shares outstanding, representing the equivalent of 57.1 million ADSs assuming the conversion of all common shares into ADSs.

Business Outlook

For the third quarter of 2024, the Company expects net revenues to be between US$555 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 June 30, 2024, the Company repurchased US$71.4 million of its ADSs on the open market under its current US$530 million share repurchase program, which is originally scheduled to expire by the end of November 2024. The board of directors of the Company has authorized to extend the existing share repurchase program of the Company for another 12-month period upon its original expiry date under which the Company may repurchase up to US$400 million of its shares until the end of November 2025.

Conference Call Information

The Company will hold a conference call at 9:00 PM U.S. Eastern Time on Tuesday, August 27, 2024 (9:00 AM Singapore/Hong Kong Time on Wednesday, August 28, 2024). Details for the conference call are as follows:

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

Conference ID: #10041392

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/10041392-jgh7y6.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 4, 2024, by dialing the following numbers:

United States:1-855-883-1031
Singapore:800-101-3223
Hong Kong:800-930-639
Conference ID:#10041392
  

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

1?On 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 June 30, 2023, March 31, 2024 and June 30, 2024 and for the six months ended June 30, 2023 and June 30, 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.

2?Net 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.

3?Non-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$22.0 million and US$57.8 million in the second 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.

4?Refers 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.

5?The 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.

6?Average 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.

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 "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.

9 Non-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, June 30,
   2023 2024
   US$ US$
Assets    
Current assets    
 Cash and cash equivalents 1,063,956 607,091
 Restricted cash and cash equivalents 319,250 385,813
 Short-term deposits 1,970,346 2,021,784
 Restricted short-term deposits 57,243 54,173
 Short-term investments 274,846 187,906
 Accounts receivable, net 130,700 115,962
 Amounts due from related parties 810 373
 Prepayments and other current assets(1) 255,489 251,546
      
Total current assets 4,072,640 3,624,648
      
Non-current assets    
 Long-term deposits 130,000 185,000
 Investments 544,542 552,360
 Property and equipment, net 390,681 427,097
 Land use rights, net 316,070 309,924
 Intangible assets, net 333,715 304,430
 Right-of-use assets, net 30,173 25,328
 Goodwill 2,649,281 2,649,271
 Other non-current assets 16,763 21,784
      
Total non-current assets 4,411,225 4,475,194
      
Total assets 8,483,865 8,099,842
      
      
Liabilities, mezzanine equity and shareholders' equity    
 Short-term loan 52,119 77,609
 Accounts payable 66,755 72,959
 Deferred revenue 73,673 77,945
 Advances from customers 6,047 4,970
 Income taxes payable 86,100 81,669
 Accrued liabilities and other current liabilities(1) 2,381,189 2,364,420
 Amounts due to related parties 2,533 2,724
 Lease liabilities due within one year 12,388 11,520
 Convertible bonds 405,603 -
      
Total current liabilities 3,086,407 2,693,816
      
Non-current liabilities    
 Convertible bonds - 593
 Lease liabilities 18,422 14,510
 Deferred revenue 12,932 13,397
 Deferred tax liabilities 53,955 49,095
      
Total non-current liabilities 85,309 77,595
      
Total liabilities 3,171,716 2,771,411
      


 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
      
   December 31, June 30,
   2023 2024
   US$ US$
      
Mezzanine equity 22,133  22,933 
      
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 815,693,731 shares outstanding as of June 30, 2024, respectively) 9  8 
 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 June 30, 2024, respectively) 3  3 
 Treasury shares (US$0.00001 par value; 426,996,825 and 502,146,733 shares held as of December 31, 2023 and June 30, 2024, respectively) (913,939) (1,039,866)
 Additional paid-in capital 3,282,754  3,336,280 
 Statutory reserves 37,709  37,686 
 Retained earnings 2,947,160  3,043,841 
 Accumulated other comprehensive loss (197,010) (205,757)
      
Total JOYY Inc.'s shareholders' equity 5,156,686  5,172,195 
      
Non-controlling interests 133,330  133,303 
      
Total shareholders' equity 5,290,016  5,305,498 
      
Total liabilities, mezzanine equity and shareholders' equity 8,483,865  8,099,842 
      
      
(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 remains within cash and cash equivalents, restricted cash and cash equivalents, and short-term deposits. Correspondingly, the advanced payments received has been recorded as 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, March 31, June 30, June 30, June 30,
  2023 2024 2024 2023 2024
  US$ US$ US$ US$ US$
Net revenues          
Live streaming(1) 476,981  466,391  459,730  997,374  926,121 
Others 70,353  98,169  105,398  133,588  203,567 
           
Total net revenues 547,334  564,560  565,128  1,130,962  1,129,688 
           
Cost of revenues(2) (349,566) (369,197) (366,189) (728,568) (735,386)
           
Gross profit 197,768  195,363  198,939  402,394  394,302 
           
Operating expenses(2)          
Research and development expenses (75,540) (69,039) (69,856) (151,315) (138,895)
Sales and marketing expenses (87,205) (94,638) (88,132) (184,804) (182,770)
General and administrative expenses (28,966) (31,743) (40,686) (60,935) (72,429)
           
Total operating expenses (191,711) (195,420) (198,674) (397,054) (394,094)
           
Gain on disposal of subsidiary -  -  1,643  -  1,643 
Other income 3,382  3,600  361  6,630  3,961 
           
Operating income 9,439  3,543  2,269  11,970  5,812 
           
Interest expenses (3,057) (2,136) (1,864) (6,166) (4,000)
Interest income and investment income 46,602  48,927  46,702  90,737  95,629 
Foreign currency exchange gains, net 20,316  768  1,125  10,395  1,893 
Gain on disposal and deemed disposal of investments 77,737  -  -  77,524  - 
(Loss) gain on fair value change of investments (2,235) 985  (619) (950) 366 
           
Income before income tax expenses 148,802  52,087  47,613  183,510  99,700 
           
Income tax expenses (5,382) (4,537) (2,628) (13,540) (7,165)
           
Income before share of income (loss) in equity method investments, net of income taxes 143,420  47,550  44,985  169,970  92,535 
           
Share of income (loss) in equity method investments, net of income taxes 3,885  (7,395) 2,805  (2,721) (4,590)
           
Net income 147,305  40,155  47,790  167,249  87,945 
           
Net loss attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders 7,798  5,131  4,276  15,840  9,407 
           
Net income attributable to controlling interest of JOYY Inc. 155,103  45,286  52,066  183,089  97,352 
           
Accretion of subsidiaries' redeemable convertible preferred shares to redemption value (1,566) (347) (347) (3,132) (694)
Cumulative dividend on subsidiary's Series A Preferred Shares (1,000) -  -  (2,000) - 
           
Net income attributable to common shareholders of JOYY Inc. 152,537  44,939  51,719  177,957  96,658 
           


 
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, March 31, June 30, June 30, June 30,
  2023 2024 2024 2023 2024
  US$ US$ US$ US$ US$
           
Net income per ADS          
——Basic 2.27 0.73 0.87 2.58 1.59
——Diluted 2.02 0.69 0.83 2.33 1.52
           
Weighted average number of ADS used in calculating net income per ADS          
——Basic 67,273,951 61,783,347 59,537,049 68,854,013 60,660,104
——Diluted 76,872,137 67,152,622 64,101,951 78,845,472 65,625,455
           
           
(1) Revenues by geographical areas were as follows:
           
  Three Months Ended Six Months Ended
  June 30, March 31, June 30, June 30, June 30,
  2023 2024 2024 2023 2024
  US$ US$ US$ US$ US$
           
Developed countries and regions 231,932 291,036 306,099 449,783 597,135
Middle East 111,172 87,458 75,530 229,958 162,988
Mainland China 81,595 59,801 62,604 204,414 122,405
Southeast Asia and others 122,635 126,265 120,895 246,807 247,160
           
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 Six Months Ended
  June 30, March 31, June 30, June 30, June 30,
  2023 2024 2024 2023 2024
  US$ US$ US$ US$ US$
           
Cost of revenues 1,025 663 778 2,261 1,441
Research and development expenses 5,526 3,392 3,282 11,287 6,674
Sales and marketing expenses 320 131 108 554 239
General and administrative expenses 2,227 1,942 2,183 4,335 4,125
           


 
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, March 31, June 30, June 30, June 30,
  2023 2024 2024 2023 2024
  US$ US$ US$ US$ US$
           
Operating income 9,439  3,543  2,269  11,970  5,812 
Share-based compensation expenses 9,098  6,128  6,351  18,437  12,479 
Amortization of intangible assets from business acquisitions 15,890  15,132  13,590  31,780  28,722 
Impairment of investments -  -  9,386  -  9,386 
Gain on disposal of subsidiary -  -  (1,643) -  (1,643)
           
Non-GAAP operating income 34,427  24,803  29,953  62,187  54,756 
           
           
Net income 147,305  40,155  47,790  167,249  87,945 
Share-based compensation expenses 9,098  6,128  6,351  18,437  12,479 
Amortization of intangible assets from business acquisitions 15,890  15,132  13,590  31,780  28,722 
Impairment of investments -  -  9,386  -  9,386 
Gain on disposal of subsidiary -  -  (1,643) -  (1,643)
Gain on disposal and deemed disposal of investments (77,737) -  -  (77,524) - 
Loss (gain) on fair value change of investments 2,235  (985) 619  950  (366)
Interest expenses related to the convertible bonds' amortization to face value 528  237  198  1,106  435 
Income tax effects on non-GAAP adjustments (3,128) (2,222) (1,883) (5,439) (4,105)
Reconciling items on the share of equity method investments (3,572) 4,434  (3,700) (2,848) 734 
           
Non-GAAP net income 90,619  62,879  70,708  133,711  133,587 
           
           
Net income attributable to common shareholders of JOYY Inc. 152,537  44,939  51,719  177,957  96,658 
Share-based compensation expenses 9,098  6,128  6,351  18,437  12,479 
Amortization of intangible assets from business acquisitions 15,890  15,132  13,590  31,780  28,722 
Impairment of investments -  -  9,386  -  9,386 
Gain on disposal of subsidiary -  -  (1,643) -  (1,643)
Gain on disposal and deemed disposal of investments (77,737) -  -  (77,524) - 
Loss (gain) on fair value change of investments 2,235  (985) 619  950  (366)
Interest expenses related to the convertible bonds' amortization to face value 528  237  198  1,106  435 
Accretion, cumulative dividend and deemed dividend to subsidiaries' preferred shareholders 2,566  347  347  5,132  694 
Income tax effects on non-GAAP adjustments (3,128) (2,222) (1,883) (5,439) (4,105)
Reconciling items on the share of equity method investments (3,572) 4,434  (3,700) (2,848) 734 
Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders (1,115) (806) (949) (2,382) (1,755)
           
Non-GAAP net income attributable to controlling interest and common shareholders of JOYY Inc. 97,302  67,204  74,035  147,169  141,239 
           
           
           
Non-GAAP net income per ADS          
——Basic 1.45  1.09  1.24  2.14  2.33 
——Diluted 1.29  1.02  1.17  1.92  2.19 
           
Weighted average number of ADS used in calculating Non-GAAP net income per ADS          
——Basic 67,273,951  61,783,347  59,537,049  68,854,013  60,660,104 
——Diluted 76,872,137  67,152,622  64,101,951  78,845,472  65,625,455 
           


 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
        
 Three Months Ended
 June 30, 2024
        
 BIGO All other Elimination(1) Total
 US$ US$ US$ US$
Net revenues       
Live streaming439,394  20,336  -  459,730 
Others67,760  38,024  (386) 105,398 
        
Total net revenues507,154  58,360  (386) 565,128 
        
Cost of revenues(2)(327,735) (38,530) 76  (366,189)
        
Gross profit179,419  19,830  (310) 198,939 
        
Operating expenses(2)       
Research and development expenses(42,715) (27,370) 229  (69,856)
Sales and marketing expenses(66,720) (21,435) 23  (88,132)
General and administrative expenses(12,180) (28,564) 58  (40,686)
        
Total operating expenses(121,615) (77,369) 310  (198,674)
        
Gain on disposal of subsidiary-  1,643  -  1,643 
Other income177  184  -  361 
        
Operating income (loss)57,981  (55,712) -  2,269 
        
Interest expenses(1,475) (1,400) 1,011  (1,864)
Interest income and investment income15,256  32,457  (1,011) 46,702 
Foreign currency exchange gains, net1,005  120  -  1,125 
(Loss) gain on fair value change of investments(2,610) 1,991  -  (619)
        
Income (loss) before income tax (expenses) benefits70,157  (22,544) -  47,613 
        
Income tax (expenses) benefits(5,575) 2,947  -  (2,628)
        
Income (loss) before share of income in equity method investments, net of income taxes64,582  (19,597) -  44,985 
        
Share of income in equity method investments, net of income taxes-  2,805  -  2,805 
        
Net income (loss)64,582  (16,792) -  47,790 
        


       
(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, 2024
       
  BIGO All other Total
  US$ US$ US$
       
Cost of revenues 446 332 778
Research and development expenses 1,543 1,739 3,282
Sales and marketing expenses 45 63 108
General and administrative expenses 408 1,775 2,183
       


 
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, 2024
       
  BIGO All other Total
  US$ US$ US$
       
Operating income (loss) 57,981  (55,712) 2,269 
Share-based compensation expenses 2,442  3,909  6,351 
Amortization of intangible assets from business acquisitions 8,950  4,640  13,590 
Impairment of investments -  9,386  9,386 
Gain on disposal of subsidiary -  (1,643) (1,643)
       
Non-GAAP operating income (loss) 69,373  (39,420) 29,953 
       
       
Net income (loss) 64,582  (16,792) 47,790 
Share-based compensation expenses 2,442  3,909  6,351 
Amortization of intangible assets from business acquisitions 8,950  4,640  13,590 
Impairment of investments -  9,386  9,386 
Gain on disposal of subsidiary -  (1,643) (1,643)
Loss (gain) on fair value change of investments 2,610  (1,991) 619 
Interest expenses related to the convertible bonds' amortization to face value -  198  198 
Income tax effects on non-GAAP adjustments (778) (1,105) (1,883)
Reconciling items on the share of equity method investments -  (3,700) (3,700)
       
Non-GAAP net income (loss) 77,806  (7,098) 70,708 
       


 
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 streaming442,154  24,237  -  466,391 
Others63,049  35,518  (398) 98,169 
        
Total net revenues505,203  59,755  (398) 564,560 
        
Cost of revenues(2)(328,583) (40,692) 78  (369,197)
        
Gross profit176,620  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 income3,296  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 income15,441  34,796  (1,310) 48,927 
Foreign currency exchange gains, net379  389  -  768 
Gain (loss) on fair value change of investments1,267  (282) -  985 
        
Income (loss) before income tax (expenses) benefits65,711  (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 taxes61,049  (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
 June 30, 2023
        
 BIGO All other Elimination(1) Total
 US$ US$ US$ US$
Net revenues       
Live streaming445,169  31,812  -  476,981 
Others25,885  44,860  (392) 70,353 
        
Total net revenues471,054  76,672  (392) 547,334 
        
Cost of revenues(2)(287,587) (62,069) 90  (349,566)
        
Gross profit183,467  14,603  (302) 197,768 
        
Operating expenses(2)       
Research and development expenses(41,727) (34,042) 229  (75,540)
Sales and marketing expenses(70,652) (16,574) 21  (87,205)
General and administrative expenses(12,587) (16,431) 52  (28,966)
        
Total operating expenses(124,966) (67,047) 302  (191,711)
        
Other income1,914  1,468  -  3,382 
        
Operating income (loss)60,415  (50,976) -  9,439 
        
Interest expenses(1,727) (2,643) 1,313  (3,057)
Interest income and investment income9,882  38,033  (1,313) 46,602 
Foreign currency exchange gains (losses), net22,031  (1,715) -  20,316 
Gain on disposal and deemed disposal of investments-  77,737  -  77,737 
(Loss) gain on fair value change of investments(2,460) 225  -  (2,235)
        
Income before income tax expenses88,141  60,661  -  148,802 
        
Income tax expenses(4,478) (904) -  (5,382)
        
Income before share of income in equity method investments, net of income taxes83,663  59,757  -  143,420 
        
Share of income in equity method investments, net of income taxes-  3,885  -  3,885 
        
Net income83,663  63,642  -  147,305 
        


       
(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, 2023
       
  BIGO All other Total
  US$ US$ US$
       
Cost of revenues 410 615 1,025
Research and development expenses 2,532 2,994 5,526
Sales and marketing expenses 170 150 320
General and administrative expenses 700 1,527 2,227
       


 
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, 2023
       
  BIGO All other Total
  US$ US$ US$
       
Operating income (loss) 60,415  (50,976) 9,439 
Share-based compensation expenses 3,812  5,286  9,098 
Amortization of intangible assets from business acquisitions 11,225  4,665  15,890 
       
Non-GAAP operating income (loss) 75,452  (41,025) 34,427 
       
       
Net income 83,663  63,642  147,305 
Share-based compensation expenses 3,812  5,286  9,098 
Amortization of intangible assets from business acquisitions 11,225  4,665  15,890 
Gain on disposal and deemed disposal of investments -  (77,737) (77,737)
Loss (gain) on fair value change of investments 2,460  (225) 2,235 
Interest expenses related to the convertible bonds' amortization to face value -  528  528 
Income tax effects on non-GAAP adjustments (1,415) (1,713) (3,128)
Reconciling items on the share of equity method investments -  (3,572) (3,572)
       
Non-GAAP net income (loss) 99,745  (9,126) 90,619 
       
Image for Press Release 1955646
Image for Press Release 1955646