JOYY Inc (YY) 2022 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the JOYY Incorporated Third Quarter 2022 Earnings Call. (Operator Instructions)

女士們，先生們，感謝你們的支持，歡迎來到 JOYY Incorporated 2022 年第三季度財報電話會議。 （操作員說明）

I would now like to hand the conference over to your host today, Jane Xie, the company's Senior Manager of Investor Relations. Please go ahead, Jane.

我現在想把會議交給今天的主持人，公司投資者關係高級經理 Jane Xie。請繼續，簡。

Thank you, operator. Hello, everyone. Welcome to JOYY's third quarter 2022 earnings conference call. Joining us today are Mr. David Xueling Li, Chairman and CEO of JOYY; Ms. Ting Li, our COO; and Mr. Alex Liu, the General Manager of Finance. For today's call, management will first provide a review of the quarter and then we will conduct a Q&A session. The financial results and webcast of this conference call are available at ir.joyy.com. A replay of this call will also be available on our website in a few hours.

謝謝你，運營商。大家好。歡迎來到 JOYY 2022 年第三季度財報電話會議。今天加入我們的是 JOYY 董事長兼首席執行官 David Xueling Li 先生；我們的首席運營官李婷女士；財務總經理Alex Liu先生。對於今天的電話會議，管理層將首先提供對本季度的回顧，然後我們將進行問答環節。本次電話會議的財務結果和網絡直播可在 ir.joyy.com 上獲取。幾個小時後，我們的網站上也將提供此次通話的重播。

Before we continue, I like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our latest annual report on Form 20F and other documents filed with the SEC. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in USD.

在我們繼續之前，我想提醒您，我們可能會做出前瞻性陳述，這些陳述本質上受到風險和不確定性的影響，可能導致實際結果與我們目前的預期不同。有關風險和不確定性的詳細討論，請參閱我們向美國證券交易委員會提交的最新 20F 表年度報告和其他文件。最後請注意，除非另有說明，否則本次電話會議中提及的所有數字均以美元為單位。

I will now turn the call over to our Chairman and CEO, Mr. David Xueling Li. Please go ahead, sir.

我現在將把電話轉給我們的董事長兼首席執行官李學凌先生。請繼續，先生。

Hello, everyone. Welcome to our third quarter 2022 earnings call. Let me start with an overview of our quarterly results. Despite global macroeconomic uncertainties, we recorded $586.7 million in revenues, including $483.3 million of revenues from BIGO, in line with our previous guidance. Our decisive and proactive optimization measures to improve our operational efficiency have been proven effective. During the third quarter, we generated a non-GAAP net profit of $76.9 million at the Group level, with a non-GAAP net margin of 13.1% when excluding YY Live. The BIGO segment recorded $84.1 million in non-GAAP net profit, with a non-GAAP net margin of 17.4%. More importantly, our operating cash inflow remained strong, reaching $117.1 million for the quarter.

大家好。歡迎來到我們的 2022 年第三季度財報電話會議。讓我首先概述一下我們的季度業績。儘管全球宏觀經濟存在不確定性，但我們的收入為 5.867 億美元，其中包括來自 BIGO 的 4.833 億美元收入，這與我們之前的指導一致。我們為提高運營效率而採取的果斷和主動的優化措施已被證明是有效的。第三季度，我們在集團層面產生了 7690 萬美元的非 GAAP 淨利潤，剔除 YY Live 後的非 GAAP 淨利潤率為 13.1%。 BIGO 部門的非 GAAP 淨利潤為 8410 萬美元，非 GAAP 淨利潤率為 17.4%。更重要的是，我們的經營現金流入保持強勁，本季度達到 1.171 億美元。

At present, increasing global macro uncertainty continues to impact our short-term monetization growth. Ongoing inflation and unfavorable exchange rates are adversely affecting users' purchasing power and discretionary spending. Meanwhile, as international travel restrictions in some regions are lifted and reopening trends continue, users' time and spending are being further diverted to offline activities. Since the first half of 2021, we have been comprehensively and consistently reviewing the cost structures and management processes of our core businesses. At the same time, we undertook a series of operational adjustments to enhance product synergies, improve operational efficiency, and ultimately ensure the health and sustainability of our business.

目前，全球宏觀不確定性的增加繼續影響我們的短期貨幣化增長。持續的通貨膨脹和不利的匯率正在對用戶的購買力和可自由支配的支出產生不利影響。同時，隨著一些地區國際旅行限制的解除和重新開放趨勢的持續，用戶的時間和支出正在進一步轉移到線下活動上。自 2021 年上半年以來，我們一直在全面、持續地審查核心業務的成本結構和管理流程。同時，我們進行了一系列的運營調整，以增強產品協同效應，提高運營效率，最終確保我們業務的健康和可持續發展。

Our forward-looking strategic planning and effective execution of our optimization measures to the above stated goals have equipped us to better navigate through the current macro challenges. As a result, we achieved full-year profitability in 2021, and further expanded our profits and improved our operational cash inflow during 2022, even as global macro conditions deteriorated. During the first three quarters of 2022, our BIGO segment expanded its non-GAAP net profit to $230.4 million, up 193.3% year-over-year. Given the current macro environment, we will continue to prioritize sustainable, high-quality growth while further enhancing our operational efficiencies. Going forward, we are confident that our increasing business resilience will position us to better capture long-term growth opportunities.

我們針對上述目標的前瞻性戰略規劃和優化措施的有效執行使我們能夠更好地應對當前的宏觀挑戰。因此，我們在 2021 年實現了全年盈利，並在 2022 年進一步擴大利潤並改善運營現金流，即使全球宏觀環境惡化。在 2022 年前三個季度，我們的 BIGO 部門將其非 GAAP 淨利潤擴大至 2.304 億美元，同比增長 193.3%。鑑於當前的宏觀環境，我們將繼續優先考慮可持續、高質量的增長，同時進一步提高我們的運營效率。展望未來，我們相信，我們不斷增強的業務彈性將使我們能夠更好地抓住長期增長機會。

Despite near-term macro headwinds, we remain focused on our long-term product strategy of delivering value to our users and creators. Our efforts have yielded positive results. Bigo Live's MAUs increased by 13.2% (sic) [14.2%] year-over-year in the quarter, reaching a new historic high of 35.4 million. Sequentially, growth was also encouraging, with the scale of growth comparable to that we witnessed during the pandemic period. This is particularly impressive considering such growth was achieved in a period of disciplined marketing spending, demonstrating the increasing efficiency and effectiveness of our user acquisition strategy.

儘管近期宏觀逆風，我們仍然專注於為我們的用戶和創作者提供價值的長期產品戰略。我們的努力取得了積極成果。 Bigo Live 的 MAU 在本季度同比增長 13.2%（原文如此）[14.2%]，達到 3540 萬的歷史新高。因此，增長也令人鼓舞，增長規模與我們在大流行期間所看到的相當。考慮到這種增長是在嚴格的營銷支出期間實現的，這表明我們的用戶獲取策略的效率和有效性不斷提高，這一點尤其令人印象深刻。

Looking ahead, we will continue to cultivate diverse premium content, innovate interactive product features, and organize activities tailored to local markets. These initiatives will further improve our user experience and ultimately, facilitate the growth of our user community and monetization, 2 factors that correlate positively with user satisfaction over time. In addition, our diversified operations across a number of regions, including North America, Europe, the Middle East, and Southeast Asia, have given us greater overall flexibility and allowed us to mitigate the risks that arise from relying on any single market. As markets and governments employ differing measures to contain the pandemic and tackle current macro challenges, we will closely monitor shifting market conditions and devote more resources towards outperforming markets.

展望未來，我們將繼續深耕多元化精品內容，創新產品互動功能，舉辦因地制宜的活動。這些舉措將進一步改善我們的用戶體驗，並最終促進我們用戶社區的增長和貨幣化，這兩個因素隨著時間的推移與用戶滿意度呈正相關。此外，我們在多個地區（包括北美、歐洲、中東和東南亞）的多元化經營為我們提供了更大的整體靈活性，並使我們能夠降低因依賴任何單一市場而產生的風險。隨著市場和政府採取不同的措施來遏制大流行和應對當前的宏觀挑戰，我們將密切關注不斷變化的市場狀況，並將更多資源投入到表現出色的市場。

Compared with a single-market-focus, this refined strategy of dynamic adjustments will enable us to generate a higher ROI against the backdrop of macro volatilities. Going forward, we remain committed to our globalization strategy. We will continue to enhance our international and localized operational capabilities by further strengthening our local talented teams' technological experience, global vision, and local knowledge.

與單一市場聚焦相比，這種動態調整的精細化策略將使我們能夠在宏觀波動的背景下產生更高的投資回報率。展望未來，我們將繼續致力於我們的全球化戰略。我們將通過進一步加強本地人才團隊的技術經驗、全球視野和本地知識，繼續提升我們的國際化和本地化運營能力。

Now let's take a closer look at the developments in each of our product lines. We will start with Bigo Live. Despite the macro headwinds and monetization challenges, Bigo Live maintained its user growth trajectory thanks to effective local operations and product feature upgrades. During the third quarter, Bigo Live's MAUs increased 14.2% year-over-year to 45.4 million (sic) [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. We also observed a recovery trend in Bigo Live's number of paying users across various regions, as the number of paying users in Europe, North America, the Middle East and Southeast Asia resumed sequential growth this quarter.

現在讓我們仔細看看我們每條產品線的發展情況。我們將從 Bigo Live 開始。儘管存在宏觀逆風和貨幣化挑戰，Bigo Live 憑藉有效的本地運營和產品功能升級保持了用戶增長軌跡。第三季度，Bigo Live 的 MAU 同比增長 14.2% 至 4540 萬（原文如此）[3540 萬]。值得注意的是，歐洲和中東的 MAU 分別增長 9.8% 和 7.8%，而東南亞和其他新興市場的 MAU 同比增長 19.2%。我們還觀察到Bigo Live各地區付費用戶數呈現回暖趨勢，本季度歐洲、北美、中東和東南亞地區付費用戶數恢復環比增長。

During the quarter, Bigo Live further cultivated its content ecosystem by emphasizing localized operations and developing diverse, premium content. For example, 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 region.

本季度，Bigo Live通過強調本地化運營和開發多樣化的優質內容，進一步培育了其內容生態系統。例如，在馬來西亞，Bigo Live 推出了全新的在線綜藝節目 BIGO Gagaga，其娛樂內容包括遊戲和單口相聲。該節目由 Bigo Live 最受歡迎的流媒體主播和馬來西亞一些頂級廣播公司主演，並將直播元素與主流媒體的既有形式相結合，創造出全新而獨特的觀看體驗。在中東，Bigo Live 再次與 Mobile Legends: Bang Bang 合作，直播中東和北非地區最大的秋季職業錦標賽之一。

Bigo Live also held a world tour for its mascot, Dino. The 16-foot high, 8-foot wide mascot visited landmarks in dozens of countries across the globe, including Singapore, Thailand, the UK, Italy, Germany, France, and the U.S., appearing at a series of on-site events to interact with local users. During the tour, Bigo Live invited popular local streamers to host a number of performances for local audiences. This helped stimulate interest in our product and promoted brand awareness among local communities.

Bigo Live 還為其吉祥物 Dino 舉辦了世界巡迴演出。這個16英尺高、8英尺寬的吉祥物造訪了全球數十個國家的地標建築，包括新加坡、泰國、英國、意大利、德國、法國和美國，並出現在一系列現場活動中進行互動與本地用戶。巡演期間，Bigo Live 邀請當地人氣主播為當地觀眾舉辦多場演出。這有助於激發人們對我們產品的興趣，並提高當地社區的品牌知名度。

At the same time, Bigo Live launched a number of tour-related videos and online challenges, encouraging local users to join the festivities and meet their friends at these events. These efforts combined to create a unique, memorable experience for Bigo Live users, bridging online and offline interaction. Our iteration of the community feature and localized creator support continued to contribute to content diversification and user engagement improvements in the BAR channel. Sequentially, the volume of BAR's video content increased by 14.5%, and its average views per user increased by 16.4%.

同時，Bigo Live 推出了一系列與旅遊相關的視頻和在線挑戰，鼓勵本地用戶加入慶祝活動並在這些活動中結識朋友。這些努力相結合，為 Bigo Live 用戶創造了獨特、難忘的體驗，將線上和線下互動聯繫起來。我們的社區功能迭代和本地化創作者支持繼續為 BAR 頻道的內容多樣化和用戶參與度改進做出貢獻。 BAR 的視頻內容量環比增長了 14.5%，每位用戶的平均觀看次數增長了 16.4%。

Next, let's turn to Likee. As mentioned in the previous quarter, for products that are currently still loss-making, such as Likee and Hago, we continue to focus on the steady improvement of their respective monetization capabilities and organic growth. We aim to stick to a disciplined sales and marketing strategy, and to optimize their cost structures in order to steadily narrow their respective operating losses and ultimately achieve self-sufficiency. In the third quarter, in line with our expectations, we made further progress in narrowing Likee's operating loss. Likee's operating loss in the first three quarters this year was reduced by 86% compared to the same period last year.

接下來，讓我們轉向 Likee。正如上一季度所述，對於目前仍處於虧損狀態的產品，如Likee和Hago，我們繼續關注其各自變現能力的穩步提升和有機增長。我們的目標是堅持嚴格的銷售和營銷策略，優化成本結構，以穩步縮小各自的經營虧損，最終實現自給自足。第三季度，符合我們的預期，我們在縮小 Likee 的經營虧損方面取得了進一步進展。 Likee今年前三季度的經營虧損與去年同期相比減少了86%。

On the product update front, 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. This feature has helped users with similar interests better connected to 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, while in-app instant messaging users grew by 7.1% in the same period. Overall, average user time spent on Likee increased by 21.5% sequentially.

產品更新方面，繼第二季度在美國和歐洲試運行Loop功能後，Likee正式將Loop引入全球其他地區。此功能幫助具有相似興趣的用戶更好地聯繫起來分享內容，並進一步提高了 Likee 的用戶交互質量。因此，動漫社區中每個用戶每天分享的視頻數量環比增長了 379%，而同期應用內即時消息用戶增長了 7.1%。總體而言，用戶在 Likee 上花費的平均時間環比增長了 21.5%。

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, 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, as a number of Likee's users are currently facing an energy crisis, Likee partnered with 10 Minute School to launch a campaign aiming to raise public awareness of energy conservation. During the campaign, teachers from 10 Minute School and other creators posted videos about power-saving tips and the importance of conserving electricity, providing users with convenient access to important and useful information. The campaign attracted the participation of more than 1 million users.

除了常規的本地化活動外，Likee 還擴大了運營範圍，將對當地社區產生積極影響的活動納入其中。例如，在一些東南亞國家發生洪災後，Likee 為當地用戶推出了專門的頁面，實時分享政府救助、應急響應和其他災難細節信息。另外，由於 Likee 的一些用戶目前正面臨能源危機，Likee 與 10 Minute School 合作發起了一項旨在提高公眾節能意識的活動。活動期間，10分鐘學校的老師和其他創作者發布了關於節電技巧和節約用電重要性的視頻，為用戶提供了方便獲取重要有用信息的途徑。該活動吸引了超過 100 萬用戶的參與。

Next, we can turn to Hago. During the third quarter, Hago's livestreaming revenue and number of paying users both increased year-over-year, while its operating loss further narrowed substantially over the previous quarter thanks to enhanced monetization and disciplined spending. 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.

接下來，我們可以轉向 Hago。第三季度，Hago 的直播收入和付費用戶數量均同比增長，而由於變現能力增強和支出有紀律，營業虧損較上一季度進一步大幅收窄。 Hago 推出了一對一語音聊天功能併升級了用戶忠誠度優惠，促進了用戶互動並提高了付費用戶的忠誠度。這兩項舉措都推動了長尾用戶支出的增長。 Hago 還對其新功能 Hago Space 進行了進一步更新。用戶在設計 3D 化身的外觀和服裝方面獲得了更大的自由，並有機會參與和互動新的 3D 虛擬場景，例如卡拉 OK。這兩項更新都有助於提供越來越創新、身臨其境和互動的體驗。

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. Although, Hago Space's revenue contribution is still relatively small, we seeking to bring more innovations to the feature to further improve its user experience and further diversify Hago's monetization streams.

得益於這些升級，Hago Space 的滲透率和平均用戶使用時長均較上一季度有了顯著提升。更重要的是，Hago Space 的收入環比增長了 409%。儘管 Hago Space 的收入貢獻仍然相對較小，但我們尋求對該功能進行更多創新，以進一步改善其用戶體驗並進一步豐富 Hago 的貨幣化渠道。

Finally, some updates on capital return. During the third quarter, we bought back an additional $14.1 million of our shares. As of September 30, we have repurchased a total of $342 million of our shares, out of the previously announced repurchase program of $1.2 billion. Our Board has extended the expiry date of the program, under which we may repurchase up to $800 million until November, 2023. We will continue to actively utilize our share repurchase program in order to reward the long-term support of our shareholders.

最後，關於資本回報的一些更新。第三季度，我們又回購了價值 1,410 萬美元的股票。截至 9 月 30 日，我們已經從之前宣布的 12 億美元回購計劃中回購了總計 3.42 億美元的股票。我們的董事會已將該計劃的到期日延長至 2023 年 11 月，根據該計劃我們最多可以回購 8 億美元。我們將繼續積極利用我們的股票回購計劃，以回報股東的長期支持。

To conclude, the combination of our forward-looking strategic planning and effective execution of our optimization measures drove a further improvement in our profitability during the third quarter, in spite of the volatile macro environment. By adhering to our long-term growth strategy, focusing on product upgrades, and emphasizing localized, diverse content offerings, we achieved steady, efficient growth of Bigo Live's user community. We will remain flexible and adaptive to the macro environment, continue to invest in building our long-term capabilities and focus on delivering value to users and creators via our products. We are confident that as we become increasingly efficient and resilient, we will be better positioned to capture long-term growth opportunities and generate sustainable shareholders' value.

總而言之，儘管宏觀環境動盪，我們前瞻性的戰略規劃和優化措施的有效執行相結合，推動我們在第三季度的盈利能力進一步提高。通過堅持長期發展戰略，聚焦產品升級，強調本地化、多元化的內容提供，我們實現了Bigo Live用戶群體的穩定、高效增長。我們將保持對宏觀環境的靈活性和適應性，繼續投資建設我們的長期能力，並專注於通過我們的產品為用戶和創作者創造價值。我們相信，隨著我們變得越來越高效和有彈性，我們將能夠更好地抓住長期增長機會並創造可持續的股東價值。

This concludes my prepared remarks. I will now turn the call to our General Manager of Finance, Alex Liu, for financial updates.

我準備好的發言到此結束。我現在將電話轉給我們的財務總經理 Alex Liu，了解財務更新。

Thanks, David. Hello, everyone. Now let me go through the details of our financial results. Please note that the financial information and non-GAAP financial information disclosed in our earnings press release is presented on a continuing operations basis, unless otherwise specifically stated. As the sale of YY Live was substantially completed on February 8, 2021 with certain customary matters to be completed in the future, we have ceased consolidation of YY Live business since February, 2021.

謝謝，大衛。大家好。現在讓我詳細介紹一下我們的財務業績。請注意，除非另有特別說明，否則我們的收益新聞稿中披露的財務信息和非 GAAP 財務信息是在持續經營的基礎上提供的。由於 YY 直播的出售已於 2021 年 2 月 8 日基本完成，一些慣例事項將在未來完成，我們自 2021 年 2 月起停止整合 YY 直播業務。

Our total net revenues for the third quarter was $586.7 million compared to $650.5 million in the same period of 2021, primarily due to macroeconomic uncertainties and unfavorable exchange rates which negatively affect paying user sentiment. As we continue to execute a sustainable growth strategy and proactively implemented a series of cost optimization measures, we maintained a healthy growth trajectory in our gross and operating profitability. Cost of revenues for the third quarter decreased by 16.7% year-over-year to $366.5 million. Revenue-sharing fees and content costs was $245.8 million in the third quarter compared with $290.1 million in the same period of 2021, primarily due to optimization of revenue sharing cost. Other operational costs, such as bandwidth costs also decreased year-over-year, as a result of our continued optimization of operational efficiency.

我們第三季度的總淨收入為 5.867 億美元，而 2021 年同期為 6.505 億美元，這主要是由於宏觀經濟的不確定性和不利的匯率對付費用戶的情緒產生了負面影響。隨著我們繼續執行可持續增長戰略並積極實施一系列成本優化措施，我們的毛利潤率和運營利潤率保持了健康的增長軌跡。第三季度的收入成本同比下降 16.7% 至 3.665 億美元。第三季度的收入分成費用和內容成本為 2.458 億美元，而 2021 年同期為 2.901 億美元，這主要是由於收入分成成本的優化。由於我們持續優化運營效率，帶寬成本等其他運營成本也同比下降。

Gross profit increased to $220.2 million in the third quarter, with our gross margin improved to 37.5% from 32.4% in the same period of 2021. Our operating expenses for the third quarter decreased by 3.1% to $202.2 million from $208.7 million in the same period of 2021. Among the operating expenses, sales and marketing expenses decreased to $96.8 million from $106.3 million due to disciplined and efficient spending on user acquisition. Our GAAP operating income for the third quarter was $19.8 million compared to $6.9 million in the same period of 2021.

第三季度毛利潤增至 2.202 億美元，毛利率從 2021 年同期的 32.4% 增至 37.5%。我們第三季度的運營費用從同期的 2.087 億美元減少 3.1% 至 2.022 億美元2021 年。在運營費用中，銷售和營銷費用從 1.063 億美元減少到 9680 萬美元，這是由於在用戶獲取方面有紀律和高效的支出。我們第三季度的 GAAP 營業收入為 1980 萬美元，而 2021 年同期為 690 萬美元。

Operating income margin for the third quarter was 3.4% compared to 1.1% in the same period of 2021. Our non-GAAP operating income for the third quarter, which excludes share-based compensation expenses, amortization of intangible assets from business acquisitions, as well as impairment of goodwill and investments and gain on disposal of subsidiaries and business, was $43.1 million in this quarter compared to $31.3 million in the same period of 2021. Our non-GAAP operating income margin for the third quarter was 7.4% compared to 4.8% in the prior year period.

第三季度的營業利潤率為 3.4%，而 2021 年同期為 1.1%。我們第三季度的非美國通用會計準則營業收入不包括股權激勵費用、企業收購的無形資產攤銷以及作為商譽和投資減值以及處置子公司和業務的收益，本季度為 4310 萬美元，而 2021 年同期為 3130 萬美元。我們第三季度的非美國通用會計準則營業利潤率為 7.4%，而 2021 年同期為 4.8%在上一年期間。

GAAP net income from continuing operations attributable to controlling interest of JOYY in the third quarter of 2022 was $515.3 million compared to net income of $7.5 million in the same period of 2021, mainly due to the one-off remeasurement gain of an equity investment recorded upon the company's consolidation of investees as announced on August 22, 2022. Net income margin was 87.8% in the third quarter of 2022 compared to net income margin of 1.2% in the corresponding period of 2021.

2022 年第三季度可歸屬於 JOYY 控制權益的持續經營業務的 GAAP 淨收入為 5.153 億美元，而 2021 年同期的淨收入為 750 萬美元，主要是由於在公司於 2022 年 8 月 22 日公佈的對被投資方的合併。2022 年第三季度的淨利潤率為 87.8%，而 2021 年同期的淨利潤率為 1.2%。

Non-GAAP net income from continuing operations attributable to controlling interest of JOYY in the third quarter was $76.9 million compared to $35.1 million in the same period of 2021. The Group's non-GAAP net income margin was 13.1% in the third quarter of 2022 compared to 5.4% in the same period of 2021. Notably, BIGO's non-GAAP net income expanded to $84.1 million in the third quarter, with its non-GAAP net income margin improved to 17.4% from 8.7% in the prior year period. It means that for the first three quarters of 2022, BIGO segment accumulated non-GAAP net profit has reached $230.4 million, up by 193.3% year-over-year.

第三季度非美國通用會計準則歸屬於歡聚控股權益的持續經營淨收入為 7690 萬美元，而 2021 年同期為 3510 萬美元。集團 2022 年第三季度的非美國通用會計準則淨利潤率為 13.1%，相比之下到 2021 年同期為 5.4%。值得注意的是，BIGO 第三季度的非 GAAP 淨收入擴大至 8410 萬美元，其非 GAAP 淨利潤率從去年同期的 8.7% 提高至 17.4%。這意味著，2022年前三季度，BIGO板塊累計非GAAP淨利潤達到2.304億美元，同比增長193.3%。

Together with our improving profitability, we have maintained a strong operating cash flow as well. For the third quarter of 2022, we booked net cash inflows from operating activities of $117.1 million. We remain a healthy balance sheet with a strong cash position of $4.28 billion as of September 30 of 2022. Importantly, we have continued to enhance returns to shareholders through dividends and share repurchases. In accordance with our previously announced quarterly dividend plans approved in August and November, 2020, we will be distributing a dividend of $0.51 per ADS for the third quarter of 2022, to shareholders of record as of the close of business on December 23, 2022. Additionally, we have repurchased $14.1 million of our shares under our previously announced share repurchase programs during the third quarter. As of September 30, 2022, we have in total repurchased approximately $342 million of our $1.2 billion share repurchase programs.

隨著盈利能力的提高，我們也保持了強勁的經營現金流。 2022 年第三季度，我們的經營活動現金流入淨額為 1.171 億美元。截至 2022 年 9 月 30 日，我們的資產負債表保持健康，現金狀況良好，為 42.8 億美元。重要的是，我們繼續通過股息和股票回購提高股東回報。根據我們之前宣布的於 2020 年 8 月和 11 月批准的季度股息計劃，我們將在 2022 年第三季度向截至 2022 年 12 月 23 日營業結束時登記在冊的股東派發每股 ADS 0.51 美元的股息。此外，我們在第三季度根據之前宣布的股票回購計劃回購了 1,410 萬美元的股票。截至 2022 年 9 月 30 日，我們在 12 億美元的股票回購計劃中總共回購了約 3.42 億美元。

Given our current cash position, we should be able to balance between keeping sufficient cash to invest in building our long-term capabilities and enhancing return for our shareholders. We will continue to actively utilize share repurchase to create value for our shareholders under the current market condition. Going forward, we remain committed to delivering value to our users and creators. We will remain adaptive to the macro environment, continue to prioritize investment into building our long-term capabilities, and drive effective and high-quality growth of our user community and global business.

鑑於我們目前的現金狀況，我們應該能夠在保持足夠的現金投資於建立我們的長期能力和提高股東回報之間取得平衡。在當前市場條件下，我們將繼續積極利用股份回購為股東創造價值。展望未來，我們將繼續致力於為我們的用戶和創作者創造價值。我們將適應宏觀環境，繼續將投資重點放在建設長期能力建設上，推動用戶社區和全球業務的有效和高質量增長。

For our business outlook, we expect our net revenues for the fourth quarter of 2022 to be between 594 and $619 million. We currently have limited visibility surrounding the macroeconomic uncertainties on our business and the markets in which we operate. Therefore, this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change.

對於我們的業務前景，我們預計 2022 年第四季度的淨收入將在 594 至 6.19 億美元之間。目前，我們對我們業務和我們經營所在市場的宏觀經濟不確定性的了解有限。因此，該預測僅反映我們對市場和運營狀況的當前和初步看法，這些看法可能會發生變化。

That concludes our prepared remarks. Operator, we would now like to open up the call to questions. Thanks.

我們準備好的發言到此結束。接線員，我們現在想打開問題電話。謝謝。

Thank you. (Operator Instructions) Your first question comes from Thomas Chong at Jefferies.

謝謝你。 （操作員說明）您的第一個問題來自 Jefferies 的 Thomas Chong。

Thanks management for taking my questions. My question is about the Q4 revenue guidance. Can management provide a breakdown among BIGO and other business trends? And also, if we look into the current macro environment as well as the reopening, how should we think about the trend across different geographies?

感謝管理層回答我的問題。我的問題是關於第四季度的收入指導。管理層能否提供 BIGO 和其他業務趨勢的細分？另外，如果我們從當前的宏觀環境以及重新開放的角度來看，我們應該如何看待不同地區的趨勢？

[Interpreted] Thank you, Thomas. This is David. I will take your first question. From our latest observation, we can see the macro uncertainties such as inflation, aggressive appreciation of the U.S. dollar against local currencies and reopening trends post lifting of travel restrictions are still negatively affecting users' paying sentiment. The lower end of our current Q4 guidance reflects part of the negative macro impact. Yet in Q4, as our tradition, BIGO will host its Annual Gala and together with an increased number of operational activities in various regions around the world to promote user and create activity, so we expect that to offset some of the negative macro impacts.

[翻譯] 謝謝你，托馬斯。這是大衛。我會回答你的第一個問題。從我們最新的觀察來看，通貨膨脹、美元兌當地貨幣的大幅升值以及旅行限制解除後的重新開放趨勢等宏觀不確定性仍在對用戶的支付情緒產生負面影響。我們當前第四季度指引的下限反映了部分負面宏觀影響。而在第四季度，按照我們的傳統，BIGO將舉辦年度晚會，並在全球各地區增加運營活動，以促進用戶和創造活動，因此我們預計這將抵消一些負面的宏觀影響。

And if we are to take a closer look at the respective regions, we can see that each market is currently facing different levels of the macro challenges. But at the same time, we could also see that in the first 3 quarters of 2022, Bigo Live still managed to achieve positive year-over-year growth in some countries, like some countries in Asia Pacific regions such as Australia and New Zealand and also Philippines and also some Western European countries, such as the U.K. and Italy. So that might sometimes be related to their respective macro environment, the tools that the government has been employing to contain the pandemic and their fiscal policies and also it could be related to the level of development of our business in those markets. But ultimately, we believe that it improves that it's meaningful to remain diversified across different markets. We will continue to closely monitor the shifting market conditions and devote more resources towards those markets that outperform as compared to others in order to generate a higher ROI. Thank you.

如果我們仔細觀察各個地區，我們可以看到每個市場目前都面臨著不同程度的宏觀挑戰。但與此同時，我們也可以看到，2022年前3季度，Bigo Live在一些國家仍然實現了同比正增長，比如澳大利亞、新西蘭等亞太地區的一些國家和還有菲律賓和一些西歐國家，例如英國和意大利。因此，這有時可能與他們各自的宏觀環境、政府為遏制大流行所採用的工具及其財政政策有關，也可能與我們在這些市場的業務發展水平有關。但最終，我們相信它會改善在不同市場保持多元化的意義。我們將繼續密切關注不斷變化的市場狀況，並將更多資源投入到那些表現優於其他市場的市場，以產生更高的投資回報率。謝謝你。

Your next question comes from Alex Poon at Morgan Stanley.

你的下一個問題來自摩根士丹利的 Alex Poon。

My question is related to margins. Can management share with us the progress on cost discipline? And how should we look at margin in 2023?

我的問題與邊距有關。管理層能否與我們分享成本控制方面的進展？我們應該如何看待 2023 年的利潤率？

[Interpreted] Thank you, Alex, for the question. This is Alex Liu. I will take your question. Our profits were better than expected in the third quarter with BIGO segment achieved a non-GAAP net margin of 17.4% and the Group achieved a non-GAAP net margin of 13.1%. And if we take a closer look at the BIGO segment, you can see that BIGO segment's gross margin was improved year-over-year from 34.5% in last year in the third quarter to 39.4% in this quarter, up by 5%. And that was mainly due to our continued optimization of content costs, lower payment channel expenses as well as lowering operational personnel costs. And also, you can see that even when we stick to a disciplined marketing spending in the quarter, we still managed to achieve effective and efficient growth of Bigo Live MAU.

[解釋] 謝謝亞歷克斯提出的問題。我是亞歷克斯·劉。我會回答你的問題。我們第三季度的利潤好於預期，BIGO 部門實現了 17.4% 的非 GAAP 淨利潤率，集團實現了 13.1% 的非 GAAP 淨利潤率。如果我們仔細觀察 BIGO 細分市場，您會發現 BIGO 細分市場的毛利率從去年第三季度的 34.5% 同比提高到本季度的 39.4%，增長了 5%。這主要是由於我們持續優化內容成本，降低支付渠道費用以及降低運營人員成本。而且，您還可以看到，即使我們在本季度堅持有紀律的營銷支出，我們仍然設法實現了 Bigo Live MAU 的有效增長。

For the fourth quarter, considering the impact, the seasonality impact of our Annual Gala, we expect our gross margin and non-GAAP net margin for the BIGO segment to decrease over the previous quarter. Still, if you look at the first 3 quarters, the accumulated non-GAAP net margin for BIGO segment has already reached 15.1%, up from 7.8% for the full year of 2021. So, the improvement was quite significant and has profoundly outdone our original expectations. So, for the coming year in 2023, we will still remain flexible and adaptive to the global macro environment. We'll continue to prioritize high-quality growth and optimize our costs and expenses to further improve our operational efficiency. We believe that as an increasing number of our products are turning self-sufficient, we will be able to steadily improve our non-GAAP profitability on a constant currency basis. Thank you.

對於第四季度，考慮到年度盛會的影響和季節性影響，我們預計 BIGO 部門的毛利率和非 GAAP 淨利潤率將比上一季度有所下降。儘管如此，如果你看看前三個季度，BIGO 部門的累計非 GAAP 淨利潤率已經達到 15.1%，高於 2021 年全年的 7.8%。因此，改善非常顯著，遠遠超過了我們的預期原來的期望。所以，對於即將到來的2023年，我們仍然會保持靈活性，適應全球宏觀環境。我們將繼續把高質量增長放在首位，優化我們的成本和費用，以進一步提高我們的運營效率。我們相信，隨著我們越來越多的產品轉向自給自足，我們將能夠在固定貨幣基礎上穩步提高我們的非 GAAP 盈利能力。謝謝你。

Your next question comes from Jasmine Wang at Credit Suisse.

你的下一個問題來自瑞士信貸的 Jasmine Wang。

Thanks management for taking my question. My question is on the user side. So, what is the user growth outlook for next year and beyond? And what are the drivers?

感謝管理層提出我的問題。我的問題是在用戶方面。那麼，明年及以後的用戶增長前景如何？驅動因素是什麼？

[Interpreted] Thank you for your question. This is David. I will take your question. Firstly, we can look at Bigo Live, we can see that in the third quarter, Bigo Live's MAU increased by 14.2% with a Q-on-Q increase of 8.4%, achieved without meaningful increase of marketing spending in the products in the quarter. It means that a large proportion of its growth was organic and that our user acquisition strategy has become more effective. And that was mainly contributed to our continued cultivation of Bigo Live's diverse and premium content offerings and our continuous efforts to innovate our localized operational activities. For example, as I just highlighted in my prepared remarks in the quarter, we organized a world tour for Bigo Live with our local teams and live streamers visiting dozens of cities in various countries around the world interacting with users offline and promoting our brand awareness among the local communities in a cause effective manner.

[已翻譯] 謝謝你的問題。這是大衛。我會回答你的問題。首先，我們可以看一下 Bigo Live，我們可以看到，在第三季度，Bigo Live 的 MAU 增長了 14.2%，環比增長了 8.4%，在該季度沒有明顯增加產品營銷支出的情況下實現的.這意味著它的很大一部分增長是有機的，我們的用戶獲取策略變得更加有效。這主要得益於我們持續深耕 Bigo Live 的多元化優質內容產品，以及我們不斷努力創新我們的本地化運營活動。例如，正如我剛剛在本季度準備好的發言中強調的那樣，我們與當地團隊和現場直播者一起組織了一次 Bigo Live 世界巡迴演出，訪問了世界各國的數十個城市，與線下用戶互動並提升我們的品牌知名度。當地社區以一種有效的方式。

We will continue to explore innovation in our localized operational activities, both offline and online, together with innovation in our product features and content in order to help Bigo Live sustain its high quality and efficient user growth. For Likee and Hago, our current priority of these products is still to enhance their monetization capability and to achieve self-sufficiency. At the same time, we'll continue to focus on the fundamentals of these products and improve their organic growth. If we look at the operating loss of these 2 products in the recent quarter, we can see that both products' operating loss have narrowed and are one step further to breakeven at quarter level and their user retention rates were also improved on a sequential basis. So, we believe that with both Likee and Hago approaching self-sufficiency, they would be in a better position to revisit user base expansion after the adjustment. Thank you.

我們將繼續探索在線下和線上本地化運營活動的創新，以及我們產品功能和內容的創新，以幫助Bigo Live保持高質量和高效的用戶增長。對於Likee和Hago，我們目前對這些產品的優先考慮仍然是提升他們的變現能力，實現自給自足。與此同時，我們將繼續關注這些產品的基本面並改善它們的有機增長。如果我們看一下最近一個季度這兩款產品的運營虧損，我們可以看到這兩款產品的運營虧損都已經收窄，並且在季度水平上更進一步實現了盈虧平衡，而且它們的用戶保留率也環比有所提高。因此，我們認為，隨著 Likee 和 Hago 都接近自給自足，他們將更有能力在調整後重新審視用戶群擴張。謝謝你。

Your next question comes from Yiwen Zhang from China Renaissance.

你的下一個問題來自華興資本的張一文。

Thanks for taking my question. My question is regarding the World Cup. This year it was hosted in Middle East, which as well is our important market. Can management comment the impact on our operation, including the user engagement and also, user spending?

感謝您提出我的問題。我的問題是關於世界杯的。今年它在中東舉辦，中東也是我們的重要市場。管理層能否評論對我們運營的影響，包括用戶參與度和用戶支出？

[Interpreted] Thank you. This is David. I will answer your question. I believe that the World Cup both have positive and negative impacts on our business. During the World Cup, we expect users to spend more time watching the games through traditional media such as TV or engaged in an increased number of off-line entertainment activities, which will divert some of our users' time spent from mobile products such as our social entertainment products such as live streaming and short videos. Therefore, there might be some negative impact on our DAUs' user time spent, especially in the Middle East, where the event is held and possibly in countries with a participating team.

[翻譯] 謝謝。這是大衛。我會回答你的問題。我相信世界杯對我們的業務既有積極影響，也有消極影響。在世界杯期間，我們預計用戶會花更多時間通過電視等傳統媒體觀看比賽或參與更多的線下娛樂活動，這將轉移部分用戶在我們的移動產品上花費的時間直播、短視頻等社交娛樂產品。因此，可能會對我們的 DAU 用戶花費的時間產生一些負面影響，尤其是在舉辦活動的中東地區以及可能有參賽團隊的國家/地區。

However, this also could be an opportunity for us to bring in a special content activity for our users. For example, to help our users better enjoy the World Cup, we have launched a series of special activities related to the theme, such as inviting football KOLs to host World Cup commentary sessions on Bigo Live and also Likee and also launching World Cup team-specific and event-specific live streaming rooms, et cetera. So, considering that in Q4 Bigo Live will host its Annual Gala, together with an increased number of operational activities to promote user and creator activity, we expect the impact from World Cup on user activity and monetization should be neutralized. Thank you.

然而，這也可能是我們為用戶帶來特殊內容活動的機會。例如，為了幫助我們的用戶更好地享受世界杯，我們推出了一系列與主題相關的特別活動，例如邀請足球KOL在Bigo Live和Likee舉辦世界杯解說會，並推出世界杯團隊-特定和特定事件的直播間等。因此，考慮到 Bigo Live 將在第 4 季度舉辦其年度晚會，以及為促進用戶和創作者活動而開展的更多運營活動，我們預計世界杯對用戶活動和貨幣化的影響應該會被抵消。謝謝你。

Your next question comes from Brian Gong at Citi.

你的下一個問題來自花旗的 Brian Gong。

I will translate myself. How does management view the geopolitical risks to our business and what is the regulatory trend in different overseas markets? And also can management update any plan on usage of our strong cash on hand?

我會自己翻譯。管理層如何看待我們業務的地緣政治風險以及不同海外市場的監管趨勢如何？管理層還可以更新我們手頭大量現金的使用計劃嗎？

[Interpreted] Thank you, Brian, for your question. This is David. I will answer your questions. For your first question on geopolitical risk, I'd say that global geopolitical risk does not just emerge today, but there are always long-lasting risk for a global company. And we would like to say that it's a normal operational risk factor for a global company with global exposure. But we would say that it's also created a positive impact for global players as compared to a single market player because of the fact that we have operations in various regions. And usually, it means that for some reason, there would be growth opportunities, but for some reasons and some time, such geopolitical risk might emerge. And then when you look at the global level, it's actually neutralized and better. When it comes to risk diversification, we are in a better position as compared to a single market player in the industry.

[已翻譯] 謝謝 Brian，提出你的問題。這是大衛。我會回答你的問題。關於地緣政治風險的第一個問題，我想說的是，全球地緣政治風險不僅是今天才出現的，而且對於一家全球性公司而言，風險始終存在。我們想說的是，對於一家擁有全球業務的跨國公司來說，這是一個正常的運營風險因素。但我們會說，與單一市場參與者相比，它也對全球參與者產生了積極影響，因為我們在不同地區開展業務。通常，這意味著由於某種原因，會有增長機會，但由於某些原因和一段時間，這種地緣政治風險可能會出現。然後，當您查看全球級別時，它實際上已經中和並且更好。在分散風險方面，我們比行業內的單一市場參與者更有優勢。

With regards to our cash usage, given the current macro uncertainties, we have been reviewing and sharpening our focus on a clear set of business priorities and become more selective in our expenditure. We have prioritized investments in our core businesses and also businesses that we believe that will be crucial for our mid- to long-term growth. So, it's a matter of balancing, balancing between making sure that we ensure sufficient capital for our own organic growth of our core businesses and also making sure that we have enough capital to return to our holders. You can see that from our operating cash flow, we have been very healthily improving our operating cash flow and have a very strong cash position. As a company that is still seeking growth, we have been very generous in enhancing shareholder returns.

關於我們的現金使用，鑑於當前的宏觀不確定性，我們一直在審查和加強我們對一組明確的業務優先事項的關注，並在我們的支出中變得更有選擇性。我們優先投資於我們的核心業務以及我們認為對我們的中長期增長至關重要的業務。因此，這是一個平衡的問題，在確保我們確保我們核心業務的有機增長有足夠的資本以及確保我們有足夠的資本回報給我們的持有人之間取得平衡。你可以從我們的運營現金流中看到，我們一直在非常健康地改善我們的運營現金流，並且擁有非常強大的現金狀況。作為一家仍在尋求增長的公司，我們一直非常慷慨地提高股東回報。

If you look at the first 3 quarters, we have already distributed in total $216.7 million via dividends and share repurchases, which is equivalent to 145% of our non-GAAP net profit in the first 3 quarters. And as of today, we still have the remaining share repurchase program of up to $800 million and dividend program of approximately $150 million, which is very sizable, especially when you compare it to our market cap. So to sum up, we will continue to remain financially flexible and strike a balance between keeping sufficient cash to invest in our business and enhancing return for our shareholders.

如果你看看前 3 個季度，我們已經通過股息和股票回購總共分配了 2.167 億美元，相當於我們前 3 個季度非 GAAP 淨利潤的 145%。截至今天，我們仍有高達 8 億美元的剩餘股票回購計劃和約 1.5 億美元的股息計劃，這是非常可觀的，尤其是當你將其與我們的市值進行比較時。因此，總而言之，我們將繼續保持財務靈活性，並在保持足夠的現金投資於我們的業務和提高股東回報之間取得平衡。

So, I believe that we have already taken all of the questions and thank you very much for joining our call. We look forward to speaking with everyone next quarter. Thank you.

所以，我相信我們已經回答了所有問題，非常感謝您加入我們的電話會議。我們期待在下個季度與大家交談。謝謝你。

Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝你。會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。