JOYY Inc (YY) 2022 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to JOYY Inc.'s Fourth Quarter and Full Year 2022 Earnings Call. (Operator Instructions) I'd 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.

女士們，先生們，感謝你們的支持，歡迎來到 JOYY Inc. 的 2022 年第四季度和全年收益電話會議。 （操作員說明）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謝潔。請繼續，簡。

Thank you, operator. Hello, everyone. Welcome to JOYY's Fourth 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.

謝謝你，運營商。大家好。歡迎來到 JOYY 2022 年第四季度收益電話會議。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。

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.

對於今天的電話會議，管理層將首先提供季度回顧，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 would 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 expectations. For detailed discussions of the risks and uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the SEC.

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 20-F 表年度報告和其他文件。

Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in U.S. dollar.

最後請注意，除非另有說明，否則本次電話會議中提到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 fourth quarter 2022 earnings call. Let me start with an overview of our fourth quarter results. In the fourth quarter, we recorded a $604.9 million in revenues, include $476.5 million of revenue from BIGO and generated $ 50 million in non-GAAP net profit, include $57.7 million in non-GAAP net profit from BIGO. For the full year of 2022, we achieved $2.4 billion in revenues at the group level, about $2 billion of which come from BIGO. We further improved our non-GAAP profitability at the group level as we earn a non-GAAP net profit of $199.3 million with a non-GAAP net margin of 8.3%.

大家好。歡迎來到我們的 2022 年第四季度財報電話會議。讓我首先概述一下我們第四季度的業績。第四季度，我們錄得 6.049 億美元的收入，其中包括來自 BIGO 的 4.765 億美元收入，產生了 5000 萬美元的非 GAAP 淨利潤，其中包括來自 BIGO 的 5770 萬美元的非 GAAP 淨利潤。 2022 年全年，我們在集團層面實現了 24 億美元的收入，其中約 20 億美元來自 BIGO。我們在集團層面進一步提高了我們的非 GAAP 盈利能力，因為我們獲得了 1.993 億美元的非 GAAP 淨利潤和 8.3% 的非 GAAP 淨利潤率。

The BIGO segment recorded $288 million in non-GAAP net profit with a non-GAAP net margin of 14.4%. 2022 marked a year of uncertainty for multinational companies as we continue to be impacted by macroeconomic headwinds. The combination of post-COVID normalization, high inflation and the strong U.S. dollar created a downward pressure on our users' online entertainment spending and top line growth. Despite these short-term challenges, we've taken actions to focus on the contribution of our user community, improve content quality, deepen engagement on our various products and pursue sustainable high-quality growth. By concentrating on the factors that we could control and by our strong execution capabilities, our efforts yield significant results.

BIGO 部門的非 GAAP 淨利潤為 2.88 億美元，非 GAAP 淨利潤率為 14.4%。 2022 年對跨國公司來說是充滿不確定性的一年，因為我們繼續受到宏觀經濟逆風的影響。 COVID 後正常化、高通脹和強勢美元的結合給我們用戶的在線娛樂支出和收入增長帶來了下行壓力。儘管存在這些短期挑戰，但我們已採取行動，專注於用戶社區的貢獻，提高內容質量，深化對我們各種產品的參與，並追求可持續的高質量增長。通過專注於我們可以控制的因素和我們強大的執行能力，我們的努力取得了顯著成果。

First, we continued our path to sustainable profitability by generating $199.3 million in non-GAAP net profit to the group level of 2022, thanks to our continuous cost optimization efforts and improved operational efficiency. This represents 83% year-over-year growth in our non-GAAP net profit and the second consecutive year of positive non-GAAP net profit at a group level since our -- deconsolidation of YY Live.

首先，由於我們持續的成本優化努力和運營效率的提高，我們在 2022 年的集團水平上產生了 1.993 億美元的非 GAAP 淨利潤，從而繼續實現可持續盈利。這代表我們的非 GAAP 淨利潤同比增長 83%，並且是自 YY Live 拆分以來集團層面的非 GAAP 淨利潤連續第二年為正。

Second, we witnessed accelerating in user growth of Bigo Live as its MAU grew by 14.3% year-over-year in the fourth quarter of 2022, up from 11.9% in the last year. Such acceleration was noteworthy as it was achieved against the backdrop of the post-COVID normalization and during a period of a disciplined marketing spending.

其次，我們見證了 Bigo Live 的用戶增長加速，其 MAU 在 2022 年第四季度同比增長 14.3%，高於去年的 11.9%。這種加速是值得注意的，因為它是在後 COVID 正常化的背景下以及在嚴格的營銷支出期間實現的。

In highlight of Bigo Live, improved user acquisition capabilities, which are driven by our continuous cultivation of its content offerings and social experience.

Bigo Live 的重點是提高用戶獲取能力，這是由我們不斷培養其內容產品和社交體驗所驅動的。

Heading into 2023, visibility of the global macro environment remains limited and its possibility -- it's possible that micro headwinds maybe linger for another 1 or 2 quarters. However, this short-term volatilities will not reverse the secular trends of users pivoting an increasing amount of their time and their spending from offline to online.

進入 2023 年，全球宏觀環境的能見度及其可能性仍然有限——微觀逆風可能還會持續 1 或 2 個季度。然而，這種短期波動不會扭轉用戶將越來越多的時間和支出從線下轉向線上的長期趨勢。

And we remain committed to enrich our users' lives and facilitating their online activities through our products and service. This is a market with massive growth potential. As such, we need to find a strategic balance between navigating short-term micro uncertainties and actively pursue long-term growth.

我們仍然致力於通過我們的產品和服務豐富用戶的生活並促進他們的在線活動。這是一個具有巨大增長潛力的市場。因此，我們需要在應對短期微觀不確定性和積極追求長期增長之間找到戰略平衡。

In the current macro uncertainties, we will remain -- we'll retain our focus on the quality and profitability of our entertainment business in the near term. This means we will continue to do better with less. We will maintain discipline in our marketing spending, further refine our localized operations in order to further improve our content and social experience, and ultimately boost our product's organic growth.

在當前的宏觀不確定性中，我們將繼續——我們將在短期內繼續關注我們娛樂業務的質量和盈利能力。這意味著我們將繼續事半功倍。我們將保持營銷支出的紀律，進一步完善我們的本地化運營，以進一步改善我們的內容和社交體驗，並最終促進我們產品的有機增長。

Optimizing efforts will continue as we strive to maintain steady high-quality growth of both our social business and its operating cash flow. In the meantime, we will continue to prioritize our resources and investments into high-potential business that align with our long-term strategy and which will shape our core capabilities. We are confident that we can remain self-sufficient in our cash flows, reinforce our strong financial position and act swiftly to seize long-term growth opportunities as they arise.

我們將繼續優化工作，努力保持社會業務和經營現金流的穩定高質量增長。與此同時，我們將繼續優先考慮我們的資源和投資於符合我們長期戰略並將塑造我們核心能力的高潛力業務。我們有信心，我們可以保持現金流的自給自足，鞏固我們強大的財務狀況，並迅速採取行動，抓住出現的長期增長機會。

Now let's take a closer look at our products. We will start with Bigo Live. In the fourth quarter, Bigo Live sustained its strong user growth trajectory, thanks to effective [local operations] and increased user acquisition efficiency during the quarter. Bigo Live's MAU increased by 18.3% (sic) [14.3%] year-over-year to 36.8 million. Notably MAUs in Southeast Asia and other emerging markets increased 21.6% year-over-year.

現在讓我們仔細看看我們的產品。我們將從 Bigo Live 開始。第四季度，Bigo Live 保持了強勁的用戶增長軌跡，這要歸功於本季度有效的 [本地運營] 和更高的用戶獲取效率。 Bigo Live 的 MAU 同比增長 18.3%（原文如此）[14.3%] 至 3680 萬。值得注意的是，東南亞和其他新興市場的 MAU 同比增長 21.6%。

During the 2022 World Cup Bigo Live rolled out a 1-month Match Day program to better engage the football players and fans around the globe. The program highlights Bigo Live's diverse localized content and resonates with local communities. In November, Bigo Live invited well-known professional football players such as England's Kieran Trippier and Netherland's Wesley Sneijder to join its live interviews. A group of local football creators were selected by Bigo Live as World Cup ambassadors to host the live commentary sessions. We also established the discussion groups and chat rooms, which support up to 500 concurrent speakers, to encourage to create and share original content.

在 2022 年世界杯期間，Bigo Live 推出了為期 1 個月的比賽日計劃，以更好地吸引全球足球運動員和球迷。該節目突出了 Bigo Live 多樣化的本地化內容，並引起了當地社區的共鳴。 11月，Bigo Live邀請了英格蘭球星特里皮爾、荷蘭球星斯內德等知名職業足球運動員參與直播採訪。 Bigo Live選出一批本土足球創作者作為世界杯大使，主持直播解說環節。我們還建立了支持多達 500 人同時發言的討論組和聊天室，以鼓勵創作和分享原創內容。

This effort successfully posted an engaging community experience on Bigo Live during the World Cup. In addition to connecting users, we remain fully dedicated to create value for our creators. In January, we hosted our first annual flagship event, the BIGO Awards Gala 2023 at Singapore's historical Capital Theater. During the event, Bigo Live honored over 270 Bigo Live creators and about 100 Bigo Live families for their contribution to the community in the past year.

這一努力在世界杯期間成功地在 Bigo Live 上發布了引人入勝的社區體驗。除了連接用戶之外，我們仍然完全致力於為我們的創作者創造價值。 1 月，我們在新加坡歷史悠久的首都劇院舉辦了首個年度旗艦活動 2023 年 BIGO 頒獎晚會。活動期間，Bigo Live 表彰了 270 多名 Bigo Live 創作者和大約 100 個 Bigo Live 家庭在過去一年中為社區做出的貢獻。

The gala also featured captivating performance from top talents from across the globe, with approximately 4 million viewers into the watch.

晚會還包括來自全球頂尖人才的精彩表演，約有 400 萬觀眾觀看。

Further boosting our creators' exposure on a worldwide stage, we will continue to recognize the contribution of our creators in making our platform what it is today. And the BIGO Award was just one facet of our efforts to incubate talent, building communities and promote inclusivity and diversity on our platform.

為了進一步提高我們的創作者在全球舞台上的曝光率，我們將繼續認可我們的創作者為使我們的平台成為今天的貢獻。 BIGO 獎只是我們在平台上培養人才、建設社區和促進包容性和多樣性的努力的一個方面。

In the fourth quarter, Bigo Live conducted a comprehensive upgrade of its live streaming tools and rooms and introduced a number of new interactive features. This improved the effectiveness of live session recommendation and the user go-live experience.

第四季度，Bigo Live對直播工具和直播間進行了全面升級，並引入了多項新的互動功能。這提高了直播會話推薦的有效性和用戶上線體驗。

On a sequential basis, the number of live streaming -- live streamers on Bigo Live increased by 3.3% and the average during per live session increased by 4.5% in the first quarter.

第一季度，Bigo Live 上的直播人數環比增長了 3.3%，每場直播的平均直播人數增長了 4.5%。

Turning to Bigo Live's monetization. During the fourth quarter, monetization continued to be negatively impacted by macro headwinds. In the Middle East, we were also negatively impacted as user spending was diverted to offline entertainment activities during the World Cup.

轉向 Bigo Live 的貨幣化。第四季度，貨幣化繼續受到宏觀逆風的負面影響。在中東，我們也受到了負面影響，因為用戶支出在世界杯期間被轉移到線下娛樂活動中。

Nevertheless, the number of global paying user was stabilized and the number of paying users in Europe and North America have resumed the sequential growth for 2 consecutive quarters.

儘管如此，全球付費用戶數企穩，歐洲和北美付費用戶數已連續兩個季度恢復環比增長。

Looking aside in 2023, we aim to further improve Bigo Live's penetration rates and expand its current base in multiple regions around the world, include Europe, America and the Middle East, the Eastern Pacific and Southeast Asia. Improvement in user acquisition efficiency and user engagement will remain our priority as we continue to pivot Bigo Live's content and user interaction via product innovation and innovative local operations.

放眼2023年，我們的目標是進一步提高Bigo Live的滲透率，擴大其在全球多個地區的現有基地，包括歐洲、美洲和中東、東太平洋和東南亞。隨著我們繼續通過產品創新和創新的本地運營來推動 Bigo Live 的內容和用戶互動，提高用戶獲取效率和用戶參與度仍將是我們的首要任務。

Furthermore, Bigo Live will advance its efforts to boost the paying user and monetization growth by optimizing users' playing experience in live streaming session and BAR.

此外，Bigo Live 將通過優化用戶在直播會話和 BAR 中的播放體驗，進一步努力促進付費用戶和貨幣化增長。

Next, let's turn to Likee. Following a year of proactive optimization, Likee's operation loss in 2022 was in line with our expectation, narrowing by 83% year-over-year. More importantly, Likee hit another milestone by achieving breakeven in the second half of 2022.

接下來，讓我們轉向 Likee。經過一年的主動優化，Likee 2022 年的經營虧損符合我們的預期，同比收窄 83%。更重要的是，Likee 在 2022 年下半年實現了收支平衡，從而達到了另一個里程碑。

Following the initial launch of its Loop feature, Likee has expanded its efforts to collaborate with companies from a variety of industry verticals in order to further cultivate its interest-based communities. Take the gaming community as an example, which is one of the largest interest group on Likee. Likee partnered with various popular games include Conquerors, Lords Mobile and PUBG Mobile to offer gamers shared the space to interact with each other.

在首次推出 Loop 功能後，Likee 擴大了與來自各種垂直行業的公司的合作力度，以進一步培養其基於興趣的社區。以遊戲社區為例，它是 Likee 上最大的興趣群體之一。 Likee 與 Conquerors、Lords Mobile 和 PUBG Mobile 等多款熱門遊戲合作，為遊戲玩家提供共享的互動空間。

In December 2022, Likee become official streaming partners of the Game Awards 2022, and annual award ceremony honoring achievements in the video game industry. Millions of viewers from all over the world watched the event live and with each other on Likee's platform.

2022 年 12 月，Likee 成為 Game Awards 2022 以及表彰視頻遊戲行業成就的年度頒獎典禮的官方流媒體合作夥伴。來自世界各地的數百萬觀眾在 Likee 的平台上現場觀看了該活動並相互觀看。

Boosted by Loop and Likee's refined content offerings, we saw an increase in user interaction quality and [user stickiness] on Likee. In the fourth quarter, Likee's average user time spend grew by 13.4% and the 30-day user retention improved by 6.3% over the previous quarter.

在 Loop 和 Likee 的精緻內容產品的推動下，我們看到 Likee 上的用戶交互質量和 [用戶粘性] 有所提高。第四季度，Likee 的平均用戶時長環比增長 13.4%，30 天用戶留存率環比提升 6.3%。

Looking ahead as we enter into 2023, we intend to further enhance Likee's monetization efficiency, diversified monetization models and achieve constant profitability. We will continue to prioritize creator support, facilitate social interactions among our users and further refine our local [operations] centered on interest-based communities.

展望2023年，我們打算進一步提升Likee的變現效率，豐富變現模式，實現持續盈利。我們將繼續優先支持創作者，促進用戶之間的社交互動，並進一步完善以基於興趣的社區為中心的本地[運營]。

As we gradually improve Likee's operating cash flow, organic growth capabilities and user [stickiness], we believe Likee's user base will gradually stabilize and the user growth will resume in certain regions over time.

隨著我們逐步改善 Likee 的經營現金流、有機增長能力和用戶[粘性]，我們相信 Likee 的用戶基礎將逐漸穩定，並且隨著時間的推移，部分地區的用戶增長將恢復。

Next on Hago. During the fourth quarter, Hago's operation loss narrowed substantially over the previous quarter. [In terms of product strategy], we mentioned Hago's positioning upgrade about a year ago. Subsequently, Hago has transitioned away from being an interactive platform primarily focused on casual games. Now it is a multi-user social platform, where users can enjoy engaging interactions with a much more adverse range of tools.

接下來是哈戈。第四季度，Hago 的經營虧損較上一季度大幅收窄。 【在產品策略上】大約一年前我們提到了Hago的定位升級。隨後，Hago 不再是一個主要專注於休閒遊戲的互動平台。現在它是一個多用戶社交平台，用戶可以在其中享受與更不利的工具進行互動的樂趣。

Following the upgrade, our user socializing patterns on Hago become clear. First, [users] make new acquaintance by participating in multiplayer casual games. Then, after a few rounds of games, some users may choose to [interact] further by joining one of Hago's social channels, such as video and audio multiplayer chat rooms and Hago space, where they can interact with each other using a customized 3D avatars.

升級後，我們在 Hago 上的用戶社交模式變得清晰。首先，[用戶]通過參與多人休閒遊戲結識新朋友。然後，經過幾輪遊戲後，一些用戶可能會選擇加入 Hago 的社交渠道之一，例如視頻和音頻多人聊天室和 Hago 空間，他們可以使用定制的 3D 頭像進行互動，從而進一步 [互動] .

When the level of interaction reach a certain level, user may choose to join the same group of families, as their like-minded friends and engage with each other on a much more frequent basis. Hago has enhanced its monetization efficiencies throughout the process by developing a variety of monetization features as a pay-to-play games, advertisement, live streaming and virtual items.

當互動水平達到一定程度時，用戶可能會選擇加入同一家庭群，成為志同道合的朋友，並更加頻繁地互動。 Hago 通過開發付費遊戲、廣告、直播和虛擬物品等多種變現功能，在整個過程中提高了變現效率。

During the fourth quarter, we optimized our recommendation algorithm to help our users to locate social rooms. This initiative drove a sequential increase in the social channel's next-day user retention rate by 1.5% and user time spend by 5.3%. We also introduced a new 3D camping scene and launched a series of optimizations, [including] a beginner's guide to Hago Space. As a result, new user time spend on Hago space improved by 6.5%, and the revenues from virtual items increased by 13.4% over the previous quarter.

在第四季度，我們優化了推薦算法以幫助我們的用戶定位社交房間。這一舉措推動社交渠道的次日用戶保留率連續增加 1.5%，用戶時間花費增加 5.3%。我們還引入了一個新的 3D 露營場景並推出了一系列優化，[包括] Hago Space 新手指南。因此，Hago 空間的新用戶時長環比增長 6.5%，虛擬物品收入環比增長 13.4%。

In 2023, in alignment with our strategy of Likee, we intended to further enhance Hago's monetization efficiency, while maintaining our efforts to achieve consistent profitability at the product level. Hago will optimize its features throughout its users' socializing patterns and better facilitate user interactions. As such we expect to further improve Hago's user retention and organic growth capabilities, which are crucial [for the] gradual stabilization and eventual recovery of user growth over time.

2023年，根據我們的Likee戰略，我們打算進一步提高Hago的貨幣化效率，同時繼續努力在產品層面實現持續盈利。 Hago 將在其用戶的社交模式中優化其功能，並更好地促進用戶交互。因此，我們希望進一步提高 Hago 的用戶保留和有機增長能力，這對於 [對於] 隨著時間的推移逐步穩定和最終恢復用戶增長至關重要。

Finally, some updates on capital return. During the fourth quarter, we bought back an additional [$31.8 million] of our shares. In the full year of 2022, we have repurchased a total of $138.1 million of shares and paid cash dividends in aggregate amount of $145.9 million. We are confident in our long-term prospects, and we'll continue to actively utilize the remaining share repurchase program to reward the long-term support of our shareholders.

最後，關於資本回報的一些更新。在第四季度，我們回購了額外的 [3180 萬美元] 股票。 2022年全年，我們共回購了1.381億美元的股票，並支付了總額為1.459億美元的現金股息。我們對我們的長期前景充滿信心，我們將繼續積極利用剩餘的股份回購計劃來回報股東的長期支持。

To conclude, effective strategy planning and strong execution drove our solid performance in [2022] despite an uncertain macro environment. Looking ahead, we remain committed to enrich our users' lives and facilitate and improving their online activities through our diverse range of innovative products and services.

總而言之，儘管宏觀環境不確定，但有效的戰略規劃和強大的執行力推動了我們在 [2022] 年的穩健表現。展望未來，我們將繼續致力於通過我們多樣化的創新產品和服務來豐富用戶的生活，促進和改善他們的在線活動。

With our resilient business model, strong financial position and sharpened focus on building our core capabilities, we are well positioned to weather short-term macro headwinds while seizing long-term growth opportunities and creating lasting value for shareholders. Now Alex? Now I hand over to Alex Liu.

憑藉我們富有彈性的商業模式、強勁的財務狀況和更加專注於核心能力建設，我們有能力應對短期宏觀逆風，同時抓住長期增長機會並為股東創造持久價值。現在亞歷克斯？現在我交給Alex Liu。

Yes. 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.

是的。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。

Our total net revenues for the quarter was USD 604.9 million compared to USD 663.7 million in the same period of 2021, primarily due to macroeconomic uncertainties and unfavorable exchange rates, which negatively affected paying user sentiment. During the quarter, we have continued to optimize the cost structure and enhance operating efficiency [at the group level indiscernible] and on multiple product fronts.

我們本季度的總淨收入為 6.049 億美元，而 2021 年同期為 6.637 億美元，這主要是由於宏觀經濟的不確定性和不利的匯率，這對付費用戶的情緒產生了負面影響。在本季度，我們繼續優化成本結構並提高運營效率 [在集團層面，音頻不清晰] 以及多個產品領域。

Cost of revenues for the quarter decreased to USD 392.6 million. Among which, [our revenue] sharing fees and content costs decreased to USD 247.5 million. Gross profit was USD 212.3 million in the quarter, with our gross margin improved to 9.1% from 33.7% in the same period of 2021, primarily due to optimization of revenue selling cost and other operational costs.

本季度的收入成本降至 3.926 億美元。其中，[我們的收入]分享費和內容成本下降至 2.475 億美元。本季度毛利潤為 2.123 億美元，我們的毛利率從 2021 年同期的 33.7% 提高到 9.1%，這主要是由於收入銷售成本和其他運營成本的優化。

Our operating expenses for the quarter were USD 231.2 million, increased from [USD 168.2 million] in the same period of 2021.

我們本季度的運營費用為 2.312 億美元，高於 2021 年同期的 [1.682 億美元]。

Among the operating expenses, sales and marketing expenses decreased to USD 100.2 million from USD 112.6 million due to disciplined spending on user acquisition. R&D expenses increased to USD 73.6 million from USD 29.3 million in the corresponding period of 2021, primarily due to increased R&D personnel-related expenses of BIGO and recent consolidation of Shopline.

在運營費用中，銷售和營銷費用從 1.126 億美元減少到 1.002 億美元，這是由於用戶獲取方面的嚴格支出。研發費用從 2021 年同期的 2930 萬美元增加到 7360 萬美元，這主要是由於 BIGO 的研發人員相關費用增加以及近期對 Shopline 的整合。

Our GAAP operating loss for the quarter was USD 14.2 million compared to operating income, $60.6 million [in the same] period of 2021. Our non-GAAP operating income for the quarter, which excludes SBC expenses, amortization of intangible assets from business [acquisitions] as well as impairment of goodwill and investments and a gain on [disposal] of subsidiaries and business was USD 27.8 million in this quarter compared to USD 83.5 million in the same period of 2021. Our non-GAAP operating income margin for the quarter was 4.6% compared to 12.6% in the prior year period.

我們本季度的 GAAP 營業虧損為 1420 萬美元，而營業收入為 6060 萬美元，2021 年同期為 6060 萬美元。我們本季度的非 GAAP 營業收入不包括 SBC 費用、業務無形資產攤銷 [收購]以及本季度商譽和投資減值以及[處置]子公司和業務的收益為 2780 萬美元，而 2021 年同期為 8350 萬美元。我們本季度的非美國通用會計準則營業利潤率為4.6%，上年同期為 12.6%。

GAAP net loss from continuing business attributable to controlling interest of JOYY in the quarter was USD 377.5 million compared to net income of USD 73.2 million in the same period of 2021, primarily due to an impairment loss of USD 417.2 million from an equity method investment recognized in the quarter. The impairment loss is excluded from our non-GAAP calculations, as it is not reflective of the underlying trend in our current operating performance.

本季度可歸屬於 JOYY 控制權益的持續經營業務的 GAAP 淨虧損為 3.775 億美元，而 2021 年同期為淨收入 7320 萬美元，主要是由於確認的權益法投資減值虧損 4.172 億美元在本季度。減值損失不包括在我們的非 GAAP 計算中，因為它不能反映我們當前經營業績的基本趨勢。

Non-GAAP net income from continuing operations attributable to controlling interest of JOYY in the quarter was USD 50 million, [compared to] USD 98.3 million in the same period of 2021. The group's non-GAAP net income margin was 8.3% in the quarter compared to 14.8% in the same period of 2021.

Non-GAAP 本季度歸屬於 JOYY 控股權益的持續經營淨收入為 5000 萬美元，[相比] 2021 年同期為 9830 萬美元。本季度該集團的 Non-GAAP 淨利潤率為 8.3%相比之下，2021 年同期為 14.8%。

Together with our improving profitability, we have maintained a strong operating cash flow as well. For the fourth quarter of '22, we booked net cash inflows from operating activities of USD 75.6 million. We remain a healthy balance sheet with a strong cash position of USD 4.29 billion as of December 31, 2022.

隨著盈利能力的提高，我們也保持了強勁的經營現金流。對於 22 年第四季度，我們登記的經營活動現金流入淨額為 7560 萬美元。截至 2022 年 12 月 31 日，我們的資產負債表保持健康，現金狀況良好，為 42.9 億美元。

Now I would like to briefly walk through the full year financial highlights. Our total net revenues for the full year were USD 2,411.5 million compared to USD 2,619.1 million in 2021. We have sustained our path to sustainable profitability at the group level for the second consecutive year. Our non-GAAP net income attributable to controlling interest and company shareholders of JOYY for the full year of 2022 was $199.3 million, up by 83% from USD 108.9 million in 2021.

現在我想簡要介紹一下全年的財務亮點。我們全年的淨收入總額為 24.115 億美元，而 2021 年為 26.191 億美元。我們連續第二年在集團層面保持可持續盈利。 2022 年全年，我們歸屬於歡聚控股股東和公司股東的非美國通用會計準則淨利潤為 1.993 億美元，比 2021 年的 1.089 億美元增長 83%。

Non-GAAP net income margin for the full year of 2022 was 8.3%, up from 4.2% in [2021.] Notably, BIGO's non-GAAP net income expanded to $288 million in 2022 with its non-GAAP net income margin improved to 14.4% from 7.8% in the prior year. Importantly, we have continued to enhance returns to shareholders through dividends and share repurchase. In the full year of 2022, we have in total repurchased approximately USD 138.1 million of our shares and paid cash dividends in an aggregate amount of USD 145.9 million, which altogether represent 142.5% of our non-GAAP net income.

2022 年全年的非美國通用會計準則淨利潤率為 8.3%，高於 [2021 年的 4.2%。]值得注意的是，BIGO 的非美國通用會計準則淨利潤在 2022 年擴大至 2.88 億美元，其非美國通用會計準則淨利潤率提高至 14.4 %，高於上一年的 7.8%。重要的是，我們繼續通過股息和股票回購來提高股東回報。 2022 年全年，我們共回購了約 1.381 億美元的股份並支付了總計 1.459 億美元的現金股息，占我們非美國通用會計準則淨收入的 142.5%。

As of the end of 2022, we still have around USD 800 million unutilized quota for 2021 share repurchase program. Given our current cash position, we will continue to balance between keeping sufficient cash to invest in building our long-term [capabilities] and enhancing return for our shareholders.

截至 2022 年底，我們仍有約 8 億美元的 2021 年股票回購計劃未動用額度。鑑於我們目前的現金狀況，我們將繼續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。

For our business outlook, we expect our net revenues for the first quarter of 2023 to be between USD 552 million and USD 570 million.

對於我們的業務前景，我們預計 2023 年第一季度的淨收入將在 5.52 億美元至 5.7 億美元之間。

Let me wrap up with some final thoughts. In 2022, despite the fact that global [macro weighed on our revenue growth], by taking decisive actions to focus on high-quality growth, we have successfully enhanced our operational [efficiency] and resilience of our business as well as the execution capabilities of our team.

讓我總結一些最後的想法。 2022年，在全球[宏觀影響收入增長]的情況下，果斷行動聚焦高質量增長，我們成功提升了經營[效率]和業務韌性，以及執行力。我們的隊伍。

As we head into 2023, given the low visibility around the global macro, we remain adaptive to the macro environment and [at the same time] prioritize our investments in building our core capabilities.

在我們進入 2023 年之際，鑑於全球宏觀環境的可見度較低，我們仍然適應宏觀環境，[同時]優先投資於建設我們的核心能力。

We remain confident in the long-term potentials of our global business, and we will actively pursue long-term growth opportunities and generate sustainable shareholder value.

我們對全球業務的長期潛力充滿信心，我們將積極尋求長期增長機會並創造可持續的股東價值。

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。

(Operator Instructions) Your first question comes from Thomas Chong with Jefferies.

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

(foreign language) I have 2 questions. The first question is about Bigo Live. Can you share about how the performance by geographies in Q4? And how should we think about the trend in 2023 among different geographies? And my second question is about 2023 revenue trend and when we should think about the inflection point.

（外語）我有兩個問題。第一個問題是關於 Bigo Live。您能否分享一下第四季度各地區的表現？我們應該如何看待2023年不同地域之間的趨勢？我的第二個問題是關於 2023 年的收入趨勢以及我們應該考慮拐點的時間。

(foreign language)

（外語）

[Interpreted] Thank you, Thomas, for your question. This is David. So in Q4, we believe that Bigo Live monetization was still negatively affected by the global macro uncertainties. Notice the different recovery trends by region. For example, we've seen Europe, North America and Southeast Asia resume sequential growth with Europe even recorded a double-digit growth Q-on-Q. We believe that was mainly due to our active operational year-end events in Q4, which promoted creator activity in the region.

[已翻譯] Thomas，謝謝你的問題。這是大衛。所以在第四季度，我們認為 Bigo Live 的貨幣化仍然受到全球宏觀不確定性的負面影響。請注意不同地區的不同復甦趨勢。例如，我們看到歐洲、北美和東南亞恢復連續增長，歐洲甚至實現了兩位數的環比增長。我們認為這主要是由於我們在第四季度積極開展年終活動，促進了該地區的創作者活動。

The middle East region underperformed as the hosting of the World Cup diverted part of users' time spend and -- time and spending offline during the period. But we saw paying activities in the region began to recover immediately after the event was concluded. So if we look back the full year performance across the different markets, some markets turn out to be more resilient against the macro headwinds and achieve positive year-over-year growth such as Australia, New Zealand, the Philippines, the U.K., Italy, et cetera.

中東地區表現不佳，因為世界杯的舉辦轉移了用戶在此期間花費的部分時間和離線時間。但我們看到該地區的付費活動在活動結束後立即開始恢復。因此，如果我們回顧不同市場的全年表現，一些市場在宏觀逆風面前更具彈性，並實現了同比正增長，例如澳大利亞、新西蘭、菲律賓、英國、意大利、等等。

So if we look ahead for the year of '23, we believe that the recovery trends across different regions should be highly related to their economic growth and the level of development of our operations in the local region.

因此，如果我們展望23年，我們認為不同地區的複蘇趨勢應該與他們的經濟增長和我們在當地的業務發展水平高度相關。

Overall speaking, we intend to stick to our globalization strategy with a diversified exposure across the areas. We will remain operational flexibility as we can flexibly prioritize, allocate resources globally and locally into markets that are more efficient to achieve a higher ROI. We will continue to focus on key markets, such as Europe, America, Southeast Asia, the Middle East and the Eastern Pacific region, and we will closely track market changes and remain flexible and adaptive in our operational strategy. Thank you.

總體而言，我們打算堅持我們的全球化戰略，在各個領域進行多元化佈局。我們將保持運營靈活性，因為我們可以靈活地確定優先次序，在全球和本地將資源分配到更高效的市場，以實現更高的投資回報率。我們將繼續聚焦歐美、東南亞、中東、東太平洋等重點市場，密切跟踪市場變化，保持靈活應變的經營策略。謝謝。

(foreign language)

（外語）

[Interpreted] And to answer your second question, we believe that the visibility of the global macro environment remains limited, and there has been active news coming out recently as well. So we believe that it is possible that macro headwinds may affect us for another 1 or 2 quarters.

【解讀】回答你的第二個問題，我們認為全球宏觀環境的能見度仍然有限，近期也有活躍的消息傳出。因此，我們認為宏觀逆風可能會影響我們另外 1 或 2 個季度。

Given the current uncertainties, we believe that we will need to control short-term risks and at the same time, having a certain degree of operational flexibility, and making sure that we are fully prepared to swiftly take action and capture growth opportunities, especially when the macro or user paying sentiment takes a positive turn.

鑑於當前的不確定性，我們認為我們需要在控制短期風險的同時，具備一定的經營靈活性，並確保我們做好充分準備迅速採取行動並抓住增長機會，尤其是在宏觀或用戶支付情緒出現積極轉變。

And according to our previous seasonality experience, usually, Q1, it's a quieter season with less marketing activities. And we believe BIGO's top line should gradually stabilize in Q2 and resume sequential and year-over-year growth in the second half of the year.

根據我們之前的季節性經驗，通常第一季度是一個比較安靜的季節，營銷活動較少。我們認為 BIGO 的收入應該會在第二季度逐漸穩定下來，並在下半年恢復環比和同比增長。

Similarly, we believe that the Others segment should also resume sequential growth in Q2. So overall speaking, we believe that the year '23 should be a year of recovery in top line growth, especially in the second half, and we will continue to grossly track the evolving market dynamics and flexibly adjust our operating strategies. Thank you.

同樣，我們認為其他部門也應該在第二季度恢復環比增長。因此總體而言，我們認為 23 年應該是收入增長復甦的一年，尤其是在下半年，我們將繼續全面跟踪不斷變化的市場動態並靈活調整我們的經營策略。謝謝。

Your next question comes from Thomas Shen with Nomura.

你的下一個問題來自野村證券的 Thomas Shen。

(foreign language) I have 2 questions. The first one is could you share the margin trends for our key segments such as BIGO and the rest of business down the road? The second question is if you could mention and share more color on the expenses and the margins for the entire company in the year of 2023.

（外語）我有兩個問題。第一個是您能否分享我們關鍵部門（例如 BIGO）和未來其他業務的利潤率趨勢？第二個問題是，您是否可以提及並分享更多關於 2023 年整個公司的費用和利潤率的顏色。

(foreign language)

（外語）

Thank you for your question. This is Alex. I will take your question on the profitability and margin outlook. So looking at the full year of '22, our profits were better than expected. The group achieved a non-GAAP operating margin of 6.8%, up by 4 percentage points, and BIGO segment achieved a non-GAAP OP margin of 14.4%, up by 5.8 percentage points from 8.6% last year. So this was mainly attributed to our enhanced operating efficiency at group level and also improved profitability at almost all product levels.

謝謝你的問題。這是亞歷克斯。我會回答你關於盈利能力和利潤率前景的問題。所以看看 22 年的全年，我們的利潤好於預期。該集團的非美國通用會計準則營業利潤率為 6.8%，上升了 4 個百分點，BIGO 部門的非美國通用會計準則營業利潤率為 14.4%，較去年的 8.6% 上升了 5.8 個百分點。因此，這主要歸功於我們在集團層面提高了運營效率，並提高了幾乎所有產品層面的盈利能力。

And if we take a closer look at BIGO segment for the full year of '22, BIGO segment's gross margin was improved by 3.7 percentage points from 33.8% to 37.4% last year. And we see cost optimization happen at multiple cost and expense items, including our content cost, payment channel expenses and other operating expenses as well.

如果我們仔細觀察 22 年全年的 BIGO 部門，BIGO 部門的毛利率從去年的 33.8% 提高了 3.7 個百分點至 37.4%。我們看到成本優化發生在多個成本和費用項目上，包括我們的內容成本、支付渠道費用和其他運營費用。

And at product level, Bigo Live has maintained relatively stable when it comes to operating margin. Likee has continued to narrow its operating loss by 87% year-over-year. And other products under the BIGO segment also reverts its loss-making trend and began to make a profit in the full year.

而在產品層面，Bigo Live 的營業利潤率保持相對穩定。 Likee 繼續將其營業虧損同比減少 87%。而BIGO板塊旗下的其他產品也一改虧損態勢，全年開始盈利。

So looking forward to the year '23 for BIGO segment, we will still prioritize high-quality growth in the near term given the macro uncertainties. But at the same time, we will ensure sufficient operational flexibility when planning our resources allocation so as to swiftly take action and capture larger growth opportunities when user paying sentiment take a positive turn.

因此，展望 BIGO 部門的 23 年，鑑於宏觀不確定性，我們仍將在短期內優先考慮高質量增長。但與此同時，我們會在規劃資源分配時確保足夠的運營靈活性，以便在用戶付費情緒出現積極轉變時迅速採取行動並抓住更大的增長機會。

Therefore, for the full year of '23, on a constant currency basis, we expect the non-GAAP operating profit margin for BIGO segment to remain roughly stable when compared to the level of '22, retaining certain resources for potential growth. And overall speaking, at the group level, we intend to strike a strategic balance between navigating short-term uncertainties and actively pursue long-term growth. We expect to remain profitable and self-sufficient in our operating cash flow in the year '23. Thank you.

因此，對於 23 年全年，在固定匯率的基礎上，我們預計 BIGO 部門的非 GAAP 營業利潤率與 22 年的水平相比將保持大致穩定，為潛在增長保留一定的資源。總體而言，在集團層面，我們打算在應對短期不確定性和積極追求長期增長之間取得戰略平衡。我們預計 23 年的經營現金流將保持盈利和自給自足。謝謝。

Your next question comes from Jasmine Wang with Credit Suisse.

你的下一個問題來自瑞士信貸的 Jasmine Wang。

(foreign language) My question is about user willingness. Management mentioned that global macro visibility remains limited. What is your view on the trend of paying user number, engagement and the ARPPU this year?

（外語）我的問題是關於用戶意願的。管理層提到全球宏觀能見度仍然有限。您如何看待今年付費用戶數、參與度和ARPPU的趨勢？

(foreign language)

（外語）

[Interpreted] Thank you for your question. This is David. I will take your question on the paying user and ARPPU trend. So based on our -- in the past few quarters, we've seen that global macroeconomic uncertainties have negatively affected user paying sentiment as implied in the recent trend of our paying users and ARPPU. However, we did have observed that the number of paying users have gradually stabilized since Q3 in the year '22 and that the paying users in Europe and North America have resumed sequential growth for 2 consecutive quarters.

[已翻譯] 謝謝你的問題。這是大衛。我會回答你關於付費用戶和 ARPPU 趨勢的問題。因此，基於我們 - 在過去幾個季度中，我們已經看到全球宏觀經濟的不確定性對用戶支付情緒產生了負面影響，正如我們的付費用戶和 ARPPU 的近期趨勢所暗示的那樣。但我們確實觀察到，自22年Q3以來，付費用戶數量逐漸趨於穩定，歐洲和北美的付費用戶已連續2個季度恢復環比增長。

We believe this could be an early sign of recovery for our monetization. If we look at the phase of development and also from a mid- to long-term perspective, we believe our user penetration rate and also the paying ratio of our products are still relatively low with empty room for further improvement.

我們相信這可能是我們貨幣化復甦的早期跡象。如果從發展階段和中長期的角度來看，我們認為我們的用戶滲透率和產品付費率仍然較低，還有進一步提升的空間。

So in the year '23, we will still focus on our user growth and also the conversion of paying users. We continue to cultivate our products and our user community and improve user satisfaction, which we believe are the fundamental driver for user -- paying user and also ARPPU growth in the long term. And we don't believe that the recent trends will change our long-term product strategy.

因此，在 23 年，我們仍將專注於用戶增長以及付費用戶的轉化。我們繼續培育我們的產品和我們的用戶社區並提高用戶滿意度，我們認為這是用戶——付費用戶和 ARPPU 長期增長的根本驅動力。而且我們認為最近的趨勢不會改變我們的長期產品戰略。

Your next question comes from Yiwen Zhang with China Renaissance.

你的下一個問題來自 China Renaissance 的 Yiwen Zhang。

(foreign language) So my question is regarding the user growth projection for 2023. What's our view on the Likee and Hago user trend, the monetization update?

（外語）所以我的問題是關於 2023 年的用戶增長預測。我們對 Likee 和 Hago 用戶趨勢、貨幣化更新有何看法？

(foreign language)

（外語）

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Thank you, Yiwen. This is David. Regarding our outlook for Likee and Hago, both products have prioritized and also considered breakeven as a key operating priority in the year '22. And we've seen positive results come out from both products as well, especially with Likee achieving breakeven in the second half of year '22. We believe that given that the product is now approaching breakeven, we believe that the product will be able to explore potential user recovery on the basis of consistent profitability.

【解讀】謝謝你，一文。這是大衛。關於我們對 Likee 和 Hago 的展望，這兩種產品都優先考慮收支平衡，並將其視為 22 年的關鍵運營重點。我們也看到這兩種產品都取得了積極的成果，尤其是 Likee 在 22 年下半年實現了收支平衡。我們認為，鑑於該產品目前已接近盈虧平衡，我們相信該產品將能夠在持續盈利的基礎上挖掘潛在的用戶恢復。

That's all the time we have for our question-and-answer session today. I'll now hand back to management for closing remarks.

這就是我們今天問答環節的全部時間。我現在將交還給管理層作結束語。

Thank you so much for your time, and we look forward to seeing everyone next quarter. Thank you.

非常感謝您的寶貴時間，我們期待下個季度與大家見面。謝謝。

That does conclude our conference for today. Thank you for participating. You may now disconnect.

我們今天的會議到此結束。感謝您的參與。您現在可以斷開連接。