GlobeNewswire

JOYY Reports First Quarter 2024 Unaudited Financial Results

2024-05-28T23:00:14Z

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

  • Net revenues were US$564.6 million, compared to US$583.6 million in the corresponding period of 2023.
  • Net income attributable to controlling interest of JOYY2 was US$45.3 million, compared to US$28.0 million in the corresponding period of 2023.
  • Non-GAAP net income attributable to controlling interest and common shareholders of JOYY3 was US$67.2 million, compared to US$49.9 million in the corresponding period of 2023.

First Quarter 2024 Operational Highlights

  • Average mobile MAUs of Bigo Live was 37.1 million, compared to 37.7 million in the corresponding period of 2023.
  • Average mobile MAUs of Likee was 37.5 million, compared to 44.9 million in the corresponding period of 2023, primarily due to disciplined spending on user acquisition via advertisement.
  • Average mobile MAUs of Hago was 4.5 million, compared to 5.9 million in the corresponding period of 2023, primarily due to disciplined spending on user acquisition via advertisement.
  • Global average mobile MAUs4 was 277.3 million, compared to 272.9 million in the corresponding period of 2023.
  • Total number of paying users of BIGO (including Bigo Live, Likee and imo)5 was 1.67 million, compared to 1.57 million in the corresponding period of 2023.
  • Average revenue per paying user of BIGO (including Bigo Live, Likee and imo)6 was US$235.4, compared to US$244.8 in the corresponding period of 2023.

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 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
 December 31, 2023
        
 BIGO All other Elimination(1) Total
 US$ US$ US$ US$
Net revenues       
Live streaming459,152  27,044  -  486,196 
Others32,109  51,992  (458) 83,643 
        
Total net revenues491,261  79,036  (458) 569,839 
        
Cost of revenues(2)(308,977) (59,481) 98  (368,360)
        
Gross profit182,284  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 income2,003  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 income13,262  35,223  (1,340) 47,145 
Foreign currency exchange (losses) gains, net(8,176) 18  -  (8,158)
Gain on fair value change of investments1,060  5,203  -  6,263 
        
Income (loss) before income tax (expenses) benefits57,354  (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 taxes52,020  (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 streaming446,586  73,807  -  520,393 
Others21,356  41,909  (30) 63,235 
        
Total net revenues467,942  115,716  (30) 583,628 
        
Cost of revenues(2)(293,705) (85,327) 30  (379,002)
        
Gross profit174,237  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 income2,950  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 income9,216  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 investments688  597  -  1,285 
        
Income (loss) before income tax expenses46,951  (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 taxes43,382  (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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