JOYY Inc (YY) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the JOYY Inc. First Quarter 2023 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. 2023 年第一季度財報電話會議。 （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 first quarter 2023 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 Vice President of Finance.

謝謝你，運營商。大家好。歡迎來到 JOYY 2023 年第一季度財報電話會議。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；財務副總裁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'd 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 20-F and other documents filed with the SEC. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in U.S. dollars.

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 20-F 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 first quarter 2023 earnings call. We kicked off 2023 with a strong quarter despite ongoing macro uncertainties. Let me first touch briefly upon some of our most notable achievements, which I will discuss in more detail shortly.

大家好。歡迎來到我們 2023 年第一季度的財報電話會議。儘管宏觀不確定性持續存在，但我們以強勁的季度開局 2023 年。首先讓我簡要介紹一下我們的一些最顯著的成就，稍後我將更詳細地討論這些成就。

First, during the quarter, we recorded $583.6 million in revenues, include $467.9 million of revenue from Bigo, exceeding the high end of our guidance. Notably, we maintained our profit growth momentum. Our group's non-GAAP net profit reached $49.9 million, representing a year-over-year increase of 138.7% with a non-GAAP net margin of 8.5%.

首先，在本季度，我們錄得 5.836 億美元的收入，其中包括來自 Bigo 的 4.679 億美元收入，超過了我們指導的上限。值得注意的是，我們保持了利潤增長勢頭。我們集團的非美國通用會計準則淨利潤達到 4990 萬美元，同比增長 138.7%，非美國通用會計準則淨利潤率為 8.5%。

The Bigo segment recorded a non-GAAP net profit of $56.8 million with a non-GAAP net margin of 12.1%. We also maintained a healthy positive operating cash flow of $67.5 million during the quarter, further enhancing our robust financial position.

Bigo 部門的非 GAAP 淨利潤為 5680 萬美元，非 GAAP 淨利潤率為 12.1%。本季度我們還保持了 6750 萬美元的健康正經營現金流，進一步增強了我們穩健的財務狀況。

Second, our global average mobile MAUs returned to positive quarter-over-quarter growth. In the fourth quarter, our global average mobile MAUs reached 272.9 million, increasing by 1.9% from the previous quarter. Bigo Live's MAUs grew steadily, increasing by 19% year-over-year.

其次，我們的全球平均移動 MAU 恢復了環比正增長。第四季度，我們的全球平均移動 MAU 達到 2.729 億，環比增長 1.9%。 Bigo Live 的 MAU 穩步增長，同比增長 19%。

And third, following 2 years of operational adjustment and optimization Likee continued to make significant progress. Importantly, Likee once again achieved the financial breakeven after first hit its milestone in the second half of last year. At the same time, Likee's revenue increased by 9% sequentially, and its core user base DAUs grew by 5.2% on a quarterly basis.

第三，經過2年的運營調整和優化，Likee不斷取得長足進步。重要的是，繼去年下半年首次達到里程碑後，Likee 再次實現了財務收支平衡。與此同時，Likee 的收入環比增長 9%，其核心用戶群 DAU 環比增長 5.2%。

While we have seen some green shoots of recovery, we remain curiously optimistic regarding industry outlook, given that ongoing micro economy uncertainties may still pressure consumers' confidence and user spending on online social entertainment.

雖然我們看到了一些復甦的萌芽，但我們對行業前景仍然持樂觀態度，因為持續的微觀經濟不確定性可能仍會對消費者的信心和在線社交娛樂的用戶支出造成壓力。

Looking to the future, we remain committed to our long-term growth strategy. Globalization remains a key driver of our business growth. We will continue to prioritize a high-quality, sustainable growth, improve monetization and profitability across all business units and further strengthen our financial resilience by generating robust operating cash flows. Harnessing our global technical and local lines operation capabilities continue to be our top priority and fundamental to our worldwide business success. We will cultivate our global user community and provide exceptional interactive experience to our users through product innovation, diverse content and localized offering.

展望未來，我們將繼續致力於我們的長期增長戰略。全球化仍然是我們業務增長的主要驅動力。我們將繼續優先考慮高質量、可持續的增長，提高所有業務部門的貨幣化和盈利能力，並通過產生強勁的經營現金流進一步增強我們的財務彈性。利用我們的全球技術和本地線路運營能力仍然是我們的首要任務，也是我們全球業務成功的基礎。我們將培養我們的全球用戶社區，並通過產品創新、多樣化內容和本地化產品為我們的用戶提供卓越的交互體驗。

In line with our global positioning and commitment to high-quality sustainable growth, we intend to further concentrate our resources on building our cost benefits and global business that align with our long-term strategies.

根據我們的全球定位和對高質量可持續增長的承諾，我們打算進一步集中資源建立符合我們長期戰略的成本效益和全球業務。

Involving our core competencies in both global, localized live operations and technically require continuous commitment, we have mentioned many of our recent efforts on localized operations. Today, I would like to take this opportunity to discuss some of our progress on technology, implementation and development.

涉及我們在全球、本地化實時運營和技術上需要持續承諾的核心競爭力，我們已經提到了我們最近在本地化運營方面的許多努力。今天，我想藉此機會討論我們在技術、實施和開發方面的一些進展。

Our technological approach has always been leveraging cutting-edge technology to drive product innovations, improve user experience and optimize our operation efficiency. At Bigo, we employed around 1,400 R&D person, including approximately 115 experts and engineers especially in the development of AI. They expertise span a wide range of AI applications, including computer vision, facial recognition, image comprehension and natural language processing.

我們的技術方法一直是利用尖端技術來驅動產品創新，改善用戶體驗並優化我們的運營效率。在 Bigo，我們僱傭了大約 1,400 名研發人員，其中包括大約 115 名專家和工程師，尤其是在 AI 開發方面。他們的專長涵蓋廣泛的人工智能應用，包括計算機視覺、面部識別、圖像理解和自然語言處理。

Our team leverage the AI to advance our text, image and video recognition capabilities, analyze user behavior data, improve intelligent recommendations to users and manage content quality. In Bigo Live and Likee, we use AI to identify [content and] user interest and direct user towards more relevant and personalized content. It has also improved our discovery process for talented creators and allow us to more efficiently channel resources to them. This is highly valuable for developing our interest-based communities and driving content ecosystems.

我們的團隊利用人工智能來提升我們的文本、圖像和視頻識別能力，分析用戶行為數據，改進對用戶的智能推薦並管理內容質量。在 Bigo Live 和 Likee 中，我們使用 AI 來識別 [內容和] 用戶興趣，並將用戶引導至更相關和個性化的內容。它還改進了我們發現才華橫溢的創作者的過程，使我們能夠更有效地向他們輸送資源。這對於發展我們基於興趣的社區和推動內容生態系統非常有價值。

As we operate in over 150 countries and regions, we have established local regulatory teams and professional content moderators all over the world to ensure regulator complaints and [aligns] our content with local cultural norms. AI has proven to be a powerful tool for improving content quality and cultivating our content ecosystem. Utilizing AI, we have significantly improved the efficiency of our content moderation.

由於我們在 150 多個國家和地區開展業務，我們在世界各地建立了當地監管團隊和專業內容審核員，以確保監管機構投訴並[使]我們的內容符合當地文化規範。人工智能已被證明是提高內容質量和培育我們的內容生態系統的強大工具。利用人工智能，我們顯著提高了內容審核的效率。

We have developed the various AI recognization models based on our database of millions of policy valuations and create directory for filtering in proper rating content in more than 20 languages with approximately 1.5 to 1.6 million live streaming rooms and 4 to 5 million short videos on Bigo every day. We needed to review over 600 million images on a daily basis.

我們基於我們的數百萬保單估值數據庫開發了各種人工智能識別模型，並創建目錄用於過濾適當的評級內容，超過 20 種語言，Bigo 每年約有 1.5 至 160 萬個直播間和 4 至 500 萬個短視頻天。我們每天需要審核超過 6 億張圖片。

Our successful implementation of AI has reduced the manual moderation rate to a mere 0.05% and brought the accuracy rate of our AI detection system to over 99.8%.

AI的成功落地，人工審核率降至0.05%，AI檢測系統準確率達到99.8%以上。

We have also leveraged the technology to bring innovation, interactive experience to our users. For example, Hago's new 3D space empower the user to create virtual avatars and interact with each other in virtual -- 3D virtual sense, enabling users to engage in an immersive social experience. Hago's 3D avatar model can be generated and adjusting various official parameters all directly from photos upload by our users. Using deep learning technology, we synchronize multilingual pronunciations, mouth movements and facial expressions between users and their digital avatars in real time. For the [current key seen], virtual characters can even dance to the rhythm of musical beats.

我們還利用該技術為我們的用戶帶來創新的互動體驗。例如，Hago 的全新 3D 空間使用戶能夠創建虛擬化身並在虛擬中相互交互——3D 虛擬感，使用戶能夠參與身臨其境的社交體驗。 Hago的3D頭像模型可以直接從我們用戶上傳的照片生成和調整各種官方參數。使用深度學習技術，我們實時同步用戶和他們的數字化身之間的多語言發音、嘴部動作和麵部表情。對於【看到的當前鍵】，虛擬角色甚至可以隨著音樂節拍的節奏起舞。

The rapid evolution of AI technology is set to transform the industry and economies worldwide. It also presents a multitude of opportunities for companies to create value and enhance operational efficiency across various applications. We are committed to exploring and interacting ways to integrate AI into our business in order to deliver accessible and captivating interactive experience to our users across the global to further improve our operational efficiency.

人工智能技術的快速發展必將改變全球的行業和經濟。它還為公司提供了大量機會來創造價值並提高各種應用程序的運營效率。我們致力於探索將 AI 融入我們業務的交互方式，為全球用戶提供易於訪問且引人入勝的交互體驗，進一步提高我們的運營效率。

Now let's take a closer look at our products. We will start with Bigo Live. During the first quarter, Bigo Live sustained its double digital user growth momentum for the first (inaudible) Q2 quarter with its MAUs increased by 19.19% year-over-year to 37.7 million.

現在讓我們仔細看看我們的產品。我們將從 Bigo Live 開始。在第一季度，Bigo Live 在第一個（聽不清）第二季度保持了雙數字用戶增長勢頭，其 MAU 同比增長 19.19% 至 3770 萬。

Growth was observed across several key regions with 7.3% growth in Europe 13.2% growth in the Middle East and 23.6% growth in Southeast Asia and other emerging markets year-over-year.

幾個關鍵地區均出現增長，其中歐洲增長 7.3%，中東增長 13.2%，東南亞和其他新興市場增長 23.6%。

In terms of monetization, Bigo Live saw steady recovery in its paying user growth in the first quarter. The number of paying users in Europe and North America increased year-over-year by 9.9% and 10.2%, respectively. Bigo Live's live streaming revenues in Europe, North America and the Middle East all rebounded from the previous quarter.

變現方面，Bigo Live一季度付費用戶增速穩步回升。歐洲和北美的付費用戶數量分別同比增長 9.9% 和 10.2%。 Bigo Live在歐洲、北美和中東的直播收入均較上一季度有所回升。

We launched a series of operational events across major regions in the first quarter and successfully engaged with and encouraged active participation from our operators and users. In February, Bigo Live launched the Big Star Search event, a talent competition open in North American participants, and enable us to recruit the most exceptional creators across a wide range of categories such as dance, music, cosplay, cooking, et cetera. The event's 6 months' duration and a wide variety of content [generous] make it Bigo Live's largest, longest running, the most impactful talent [competition] to date.

第一季度，我們在主要地區開展了一系列運營活動，成功吸引並鼓勵運營商和用戶積極參與。 2 月，Bigo Live 推出了 Big Star Search 活動，這是一項面向北美參與者開放的人才競賽，使我們能夠在舞蹈、音樂、角色扮演、烹飪等廣泛類別中招募最傑出的創作者。該活動為期 6 個月，內容豐富 [慷慨]，是 Bigo Live 迄今為止規模最大、持續時間最長、影響力最大的才藝 [競賽]。

In the Middle East, Bigo Live boasted user engagement when it once again collaborated with Mobile Legends: Bang Bang to live streaming the M4 World Championship. The quarter also marked the first collaboration between Bigo Live and ULTRA ABU DHABI. ULTRA ABU DHABI is the first Middle East addition of the world-famous ULTRA Music Festival. Bigo Live love to (inaudible) live concert experience, exciting performances and behind the scenes footage to online audience, Bigo Live also set up booths at the festival venue to interact with thousands of audience, further enhancing its brand awareness in the local community.

在中東，Bigo Live 再次與 Mobile Legends: Bang Bang 合作直播 M4 世界錦標賽時，用戶參與度很高。該季度還標誌著 Bigo Live 與 ULTRA ABU DHABI 之間的首次合作。 ULTRA ABU DHABI 是世界著名的 ULTRA 音樂節首次在中東加入。 Bigo Live 喜歡（聽不清）現場音樂會體驗，將精彩的表演和幕後花絮呈現給在線觀眾，Bigo Live 還在音樂節場地設立展台與成千上萬的觀眾互動，進一步提升其在當地社區的品牌知名度。

In terms of content development, Bigo Live remain focused in incentivizing brand channel content product. In the first quarter, our strategic efforts to enhance creating and distribution of high-quality content result in 18.7% sequential increase in video content in BAR. Furthermore, by utilizing computer vision technology, we have also improved the channel's automatic content tagging and its recommendation algorithm. These improvements resulted in an 8.8% sequential growth in average impresser per user in the BAR channel.

在內容開發方面，Bigo Live 仍然專注於激勵品牌頻道內容產品。在第一季度，我們加強高質量內容創建和分發的戰略努力導致 BAR 的視頻內容環比增長 18.7%。此外，利用計算機視覺技術，我們還改進了頻道的自動內容標記和推薦算法。這些改進導致 BAR 頻道中每個用戶的平均印像數連續增長 8.8%。

For live streaming and social interaction, user engagement has continued to grow. This is mainly due to optimized multi-person room interfaces and [still] features include sound effects and interactive tools. Sequentially, the number of multi-user rooms hosted increased by 9.3%, and the number of users going live increased by 8.7%.

對於直播和社交互動，用戶參與度持續增長。這主要是由於優化的多人房間界面和 [仍然] 功能包括音效和交互工具。環比託管多用戶房間數增長9.3%，上線用戶數增長8.7%。

Next, let's turn to Likee. To ensure the healthiness and the sustainability of our ecosystem and growth model, we have been proactively adjusting Likee's marketing strategy since the first quarter of 2021, and focusing on enhancing its monetization efficiency and organic user acquisition capabilities. We are happy to announce that we have seen some meaningful progress during the first quarter.

接下來，讓我們轉向 Likee。為確保我們生態系統和增長模式的健康和可持續性，我們自2021年第一季度以來一直在積極調整Likee的營銷策略，並著重提升其貨幣化效率和有機用戶獲取能力。我們很高興地宣布，我們在第一季度看到了一些有意義的進展。

Likee's revenue increased by 9% sequentially in the first quarter. It also achieved breakeven during the quarter after the first hit of its milestone in the second half of last year. In terms of user engagement, Likee's interest-based community grew and the quality of user interactions improved.

Likee 的收入在第一季度環比增長了 9%。在去年下半年首次達到里程碑之後，它還在本季度實現了盈虧平衡。在用戶參與度方面，Likee 的基於興趣的社區不斷壯大，用戶互動的質量得到改善。

During the fourth quarter, Likee's core user base DAUs increased by 5.2% sequentially. In the first quarter, Likee further optimized its creator services and delved deeper into understanding creators' needs. The number of official creators increased by 6.2% sequentially. Likee also reinforced its positioning as an interest-based community by collaborating with professionals in a variety of fields, including music, reading, food and sports. This actively encouraged them to create high-quality content on the platform, bolstering an already vibrant content ecosystem.

第四季度，Likee 的核心用戶群 DAU 環比增長 5.2%。一季度，Likee進一步優化創作者服務，深入理解創作者需求。官方創作者數量環比增長6.2%。 Likee 還通過與音樂、閱讀、食品和體育等各個領域的專業人士合作，鞏固了其作為興趣社區的定位。這積極鼓勵他們在平台上創建高質量的內容，支持已經充滿活力的內容生態系統。

We also continued to integrate corporate social responsibility into our daily operations and create a positive impact on the community. During Ramadan, Likee partnered with the Jordanian charitable organization, Tkiyet Um Ali, TUA, for the Share a Meal campaign. This initiative encouraged users to post videos of their Ramadan experience and share blessing during the holiday. For every user who participated in the campaign, Likee donated a certain amount of money to TUA on their behalf. Nearly 100,000 users participated in the event.

我們亦持續將企業社會責任融入日常營運，為社區帶來正面影響。在齋月期間，Likee 與約旦慈善組織 Tkiyet Um Ali, TUA 合作開展了 Share a Meal 活動。這一舉措鼓勵用戶發布他們齋月體驗的視頻，並在節日期間分享祝福。對於參與活動的每一位用戶，Likee 都會代表他們向 TUA 捐贈一定數量的資金。近10萬用戶參與了此次活動。

Next, on to Hago. During the quarter, HAGO remained dedicated to enhance user activity by both in social engagement. As we have mentioned previously, over the past 2 years, Hago has been gradually [translating] its strategic focus to become a multi-user social platform by utilizing social channels, including video and audio multiplayer chatroom. Hago space and groups are for families. Hago offers users a growing rate of social interaction opportunities and has created a highly interconnected user community.

接下來，前往Hago。在本季度，HAGO 繼續致力於通過社交參與來提高用戶活躍度。正如我們之前提到的，在過去的 2 年中，Hago 一直在逐漸[轉化]其戰略重點，利用包括視頻和音頻多人聊天室在內的社交渠道，成為一個多用戶社交平台。 Hago 空間和團體適合家庭。 Hago 為用戶提供了越來越多的社交互動機會，並創建了一個高度互聯的用戶社區。

In the first quarter, the penetration rate of Hago's social channels increased by 4.4% sequentially. In addition, the daily average time spent by users continued to grow, reaching 90.8 minutes. We have also conducted multiple rounds of net promoters for survey among users, the results of which indicated consistent enhancement of user satisfaction, particularly in Indonesia and the Philippines, Brazil and Mexico. Furthermore, many users have experienced their appreciation for how Hago enhanced their social experience.

第一季度，Hago 社交渠道的滲透率環比增長 4.4%。此外，用戶日均使用時長持續增長，達到90.8分鐘。我們還對用戶進行了多輪網絡推廣者調查，結果顯示用戶滿意度持續提升，尤其是在印度尼西亞和菲律賓、巴西和墨西哥。此外，許多用戶對 Hago 如何增強他們的社交體驗表示讚賞。

Hago will continue to adhere to disciplined marketing spending strategy and optimize its cost structures. We expect a gradual improvement in Hago's operating loss over the coming quarter.

Hago將繼續堅持嚴謹的營銷支出策略，優化成本結構。我們預計 Hago 的經營虧損在下一季度將逐步改善。

Finally, some updates on capital return. During the first quarter, we bought an additional 15.7 million of our shares. Given recent market volatility, we will step up our share repurchase in the second quarter to reward the long-term support of our shareholders.

最後，關於資本回報的一些更新。第一季度，我們又購買了 1570 萬股股票。鑑於近期市場波動，我們將在第二季度加強股票回購，以回報股東的長期支持。

To conclude, despite the near-term micro challenges, we delivered solid results in the first quarter as we maintain the strong profitability at the group level and achieved accelerated growth in Bigo Live's MAUs.

總而言之，儘管近期面臨微觀挑戰，但我們在第一季度取得了穩健的業績，因為我們在集團層面保持了強勁的盈利能力，並實現了 Bigo Live MAU 的加速增長。

Looking ahead, we remain committed to enrich lives through technology. We will continue to cultivate our global user community and provide exceptional interactive experience to our users through product innovations, diverse content and local live offerings. We are confident that we are well placed to seize long-term growth opportunities and generate sustainable shareholders' value.

展望未來，我們將繼續致力於通過技術豐富人們的生活。我們將繼續培養我們的全球用戶社區，並通過產品創新、多樣化的內容和本地直播產品為我們的用戶提供卓越的互動體驗。我們有信心，我們有能力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 Vice President of Finance, Alex Liu, for our 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副總裁 Alex Liu，了解我們的財務更新。

Thanks, David. Hello, everyone. Despite macro uncertainties, we achieved solid results in the first quarter. Our revenue in the first quarter exceeded the higher end of our guidance, and we continue to deliver better profit, both at group level and at product level, thanks to our effective execution of cost optimization matters and improved operational [position].

謝謝，大衛。大家好。儘管存在宏觀不確定性，但我們在第一季度取得了穩健的業績。我們第一季度的收入超過了我們指導的上限，並且由於我們有效執行了成本優化問題和改善了運營[狀況]，我們繼續在集團層面和產品層面提供更好的利潤。

We were also encouraged to see continued sequential recovery in Bigo's paying users for the third consecutive quarter as it increased by 7.8% year-over-year and 1.3% quarter-over-quarter to 1.57 million. As we continue to cultivate a diverse premium content and carried out effective localized operational activity, we boosted user engagement and drove further progress in user-based expansion in the quarter. We reversed the churn of our global MAU in the first quarter, which increased by 1.9% sequentially to 272.9 million.

我們也很高興看到 Bigo 的付費用戶連續第三個季度持續復甦，同比增長 7.8%，環比增長 1.3% 至 157 萬。隨著我們繼續培育多樣化的優質內容並開展有效的本地化運營活動，我們提高了用戶參與度，並推動本季度基於用戶的擴張取得進一步進展。我們在第一季度扭轉了全球 MAU 的流失，環比增長 1.9% 至 2.729 億。

Next, let me walk you through our performance for the first quarter of 2023 in detail. Average total net revenues were USD 583.6 million in the first quarter. Cost of revenues for the quarter decreased to USD 379 million, among which our revenue-sharing fees and content cost decreased to USD 148.1 million.

接下來，讓我為您詳細介紹一下我們2023年第一季度的表現。第一季度的平均總淨收入為 5.836 億美元。本季度的收入成本下降至 3.79 億美元，其中我們的收入分成費用和內容成本下降至 1.481 億美元。

Gross profit was USD 204.6 million in the quarter, with our gross margin improved to 35.1% from 32.2% in the same period of 2022, primarily due to optimization of revenue-sharing costs and other operational costs.

本季度毛利潤為 2.046 億美元，我們的毛利率從 2022 年同期的 32.2% 提高到 35.1%，這主要是由於收入分成成本和其他運營成本的優化。

Our operating expenses for the quarter were USD 205.3 million, increased from USD 200.6 million in the same period of 2022. Among the operating expenses, sales and marketing expenses decreased to USD 97.6 million from USD 104.4 million due to our effective control over marketing expenses and optimization of overall sales and marketing strategies.

我們本季度的運營費用為 2.053 億美元，高於 2022 年同期的 2.006 億美元。在運營費用中，銷售和營銷費用從 1.044 億美元減少到 9760 萬美元，這是由於我們有效控制了營銷費用和優化整體銷售和營銷策略。

R&D expenses increased to USD 75.8 million from USD 64.1 million in the same period of 2022, primarily due to increased R&D personnel-related expenses as we try organize the resources into building our technological capabilities.

研發費用從 2022 年同期的 6410 萬美元增加到 7580 萬美元，這主要是由於我們試圖組織資源以建設我們的技術能力，因此與研發人員相關的費用增加。

Our GAAP operating income for the quarter was USD 2.5 million compared to operating income USD 6.3 million in the same period of 2022. 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, was USD 27.8 million in this quarter compared to USD 33.3 million in the same period of 2022.

我們本季度的 GAAP 營業收入為 250 萬美元，而 2022 年同期的營業收入為 630 萬美元。我們本季度的非 GAAP 營業收入不包括 SBC 費用、業務收購產生的無形資產攤銷以及本季度商譽和投資減值為 2780 萬美元，而 2022 年同期為 3330 萬美元。

Our non-GAAP operating income margin for the quarter was 4.8% compared to 5.3% in the prior year period. GAAP net income attributable to controlling interest of JOYY in the quarter was USD 28 million compared to the net loss of USD 27.5 million in the same period of 2022. GAAP net income margin was 4.8% in the first quarter of 2023 compared to net loss margin of 4.4% in the corresponding period of 2022.

我們本季度的非美國通用會計準則營業利潤率為 4.8%，而去年同期為 5.3%。本季度歸屬於歡聚控股權益的 GAAP 淨利潤為 2800 萬美元，而 2022 年同期為淨虧損 2750 萬美元。與淨虧損率相比，2023 年第一季度的 GAAP 淨利潤率為 4.8% 2022 年同期為 4.4%。

Non-GAAP net income attributable to controlling interest of JOYY in the quarter was USD 49.9 million compared to USD 20.9 million in the same period of 2022. The group's non-GAAP net income margin was 8.5% in the quarter compared to 3.3% in the same period of 2022.

本季度可歸屬於歡聚控股權益的非美國通用會計準則淨利潤為 4990 萬美元，而 2022 年同期為 2090 萬美元。該集團本季度的非美國通用會計準則淨利潤率為 8.5%，而去年同期為 3.3% 2022年同期。

Together with our improving profitability, we have maintained a strong operating cash flow as well. For the first quarter of 2023, we booked net cash inflows from operating activities of USD 67.5 million. We remain a healthy balance sheet with a strong cash position of USD 4.29 billion as of March 31, 2023.

隨著盈利能力的提高，我們也保持了強勁的經營現金流。 2023 年第一季度，我們登記的經營活動現金流入淨額為 6750 萬美元。截至 2023 年 3 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。

Importantly, we have continued to enhance returns to shareholders through dividend and share repurchase. In the quarter, we have, in total, repurchased approximately USD 15.7 million of our shares and declared cash dividend in an aggregate amount of USD 35.5 million, which altogether represent 102.8% of our non-GAAP net income.

重要的是，我們繼續通過股息和股票回購來提高股東回報。本季度，我們總共回購了約 1570 萬美元的股票，並宣布了總計 3550 萬美元的現金股息，占我們非 GAAP 淨收入的 102.8%。

As of March 31, 2023, we still have around USD 784 million (inaudible) quarter and our 2025 share repurchase program. Given the current market circumstance and our current cash position, we will step up our share repurchase in the second quarter.

截至 2023 年 3 月 31 日，我們仍有約 7.84 億美元（聽不清）的季度和 2025 年股票回購計劃。鑑於當前的市場環境和我們目前的現金狀況，我們將在第二季度加強股票回購。

As David just mentioned, in line with our global positioning and commitment to high-quality sustainable growth, we plan to strategically streamline some of our noncore operations so that we can concentrate our resources, both financial and management, towards building our core spaces and business that leverage our long-term strategic goals. Therefore, partly as a result of the adjustment for our business outlook, we expect our net revenues for the second quarter of 2023 to be between USD 520 million and USD 541 million. This forecast reflects our preliminary views on the market and operational business and business adjustment [loss], which are subject to change.

正如大衛剛才提到的，根據我們的全球定位和對高質量可持續增長的承諾，我們計劃從戰略上精簡我們的一些非核心業務，以便我們可以集中我們的財務和管理資源來建設我們的核心空間和業務影響我們的長期戰略目標。因此，部分由於我們業務前景的調整，我們預計 2023 年第二季度的淨收入將在 5.2 億美元至 5.41 億美元之間。該預測反映了我們對市場和運營業務以及業務調整[損失]的初步看法，這些看法可能會發生變化。

In summary, technology and our global localized operational capabilities continues to be the backbone to our global business success. We will continue to cultivate our global user community and provide better interactive experiences to our users through product innovation, diverse content and localized offerings.

總之，技術和我們的全球本地化運營能力仍然是我們全球業務成功的支柱。我們將繼續培育我們的全球用戶社區，並通過產品創新、多樣化內容和本地化產品為我們的用戶提供更好的交互體驗。

In the meanwhile, we will continue to pursue high-quality growth and improve operating efficiency across our business units. We expect to continue to prioritize our resources into high potential business that align with our long-term strategies and building our core capabilities while maintaining self-sufficient in our cash flow.

同時，我們將繼續追求高質量發展，提升各業務單元的運營效率。我們希望繼續將我們的資源優先用於符合我們長期戰略的高潛力業務，並建立我們的核心能力，同時保持現金流的自給自足。

With our robust financial position, we are confident that we are in good position to benefit long-term growth opportunities and generate sustainable shareholder value.

憑藉我們穩健的財務狀況，我們相信我們有能力從長期增長機會中獲益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.

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。

(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) My question is about Bigo Live. Can management comment about the expected performance across different regions in the second half as well as the overall use and monetization trend?

（外語）我的問題是關於 Bigo Live。管理層能否評論下半年不同地區的預期表現以及整體使用和貨幣化趨勢？

(foreign language)

（外語）

[Interpreted] Thank you, Thomas, for the question. This is David. I will take your first question. First of all, if we look at the performance of the first quarter, Bigo Live actually beat our previous expectations. First of all, if you look at user growth, Bigo Live achieved elevated user growth than the previous quarter, increasing its MAUs by 19% year-over-year. And we saw that the growth momentum was almost in -- across all regions, including Europe, America, Middle East and Southeast Asia. All of these regions have recorded positive year-over-year and Q-o-Q growth. And this is mainly due to our effective user growth strategy, which empowers organic growth while we adhere to a disciplined marketing spend strategy.

[已翻譯] Thomas，謝謝你提出這個問題。這是大衛。我會回答你的第一個問題。首先，如果我們看第一季度的表現，Bigo Live實際上超出了我們之前的預期。首先，從用戶增長來看，Bigo Live 的用戶增長比上一季度有所提升，MAU 同比增長 19%。我們看到增長勢頭幾乎遍及所有地區，包括歐洲、美洲、中東和東南亞。所有這些地區都實現了同比和環比正增長。這主要歸功於我們有效的用戶增長戰略，該戰略在我們堅持嚴格的營銷支出戰略的同時實現了有機增長。

During the quarter, we further analyzed the interest of various regions and different user groups and carry out a deeper content layering and more targeted cultivation of our content offerings. In our collaboration with ML:BB and ULTRA ABU DHABI Music Festival, [it doubled up] our efforts to introduce premium and diverse content. And Bigo Big Star Search in North America is another example of our efforts to recruit top talents across the field.

本季度，我們進一步分析了不同地區和不同用戶群體的興趣，對我們的內容產品進行更深層次的內容分層和更有針對性的培育。在我們與 ML:BB 和 ULTRA ABU DHABI 音樂節的合作中，我們[加倍]努力推出優質和多樣化的內容。而北美的Bigo Big Star Search是我們努力招募跨領域頂尖人才的另一個例子。

We also cooperated with influential KOLs and launched a series of online campaigns and off-line road shows, and that is consistent with our observation of users increasing off-line activities post-pandemic lockdown removal. And together, these assets have successfully enhanced our exposure and influence in the local user community, enabling us to reach a wider range of users and efficiently drive organic user growth. In the coming quarters, we expect Bigo Live to continue this strategy and maintain a strong user growth momentum.

我們還與有影響力的 KOL 合作，發起了一系列線上活動和線下路演，這與我們觀察到的用戶在大流行封鎖解除後線下活動增加的情況一致。這些資產共同成功提升了我們在當地用戶社區的曝光率和影響力，使我們能夠接觸到更廣泛的用戶並有效推動用戶有機增長。在未來幾個季度，我們預計 Bigo Live 將繼續這一戰略並保持強勁的用戶增長勢頭。

If we look at the regional trends, early signs of recovery can continue to be seen in Europe and North America. We saw that the number of paying users both substantially increased quarter-over-quarter, and the overall monetization improved for these regions -- in these regions for 2 consecutive quarters as well. In the Middle East, we saw monetization rebounded from the previous quarter, driven by strong user growth. While Southeast Asia appeared to be more affected by weaker seasonality in Q1, as there were some traditional holidays during the quarter.

如果我們看一下區域趨勢，可以在歐洲和北美繼續看到復甦的早期跡象。我們看到付費用戶數量環比大幅增長，這些地區的整體貨幣化也有所改善——這些地區也是連續兩個季度。在中東，我們看到在用戶強勁增長的推動下，貨幣化比上一季度有所反彈。而東南亞似乎受到第一季度較弱季節性的影響更大，因為該季度有一些傳統假期。

As for Q2, we expect Ramadan in April to affect Middle East and some Southeast Asian countries. However, we believe that Bigo Live will gradually stabilize and resume quarter-over-quarter growth in the second half of the year.

至於第二季度，我們預計 4 月的齋月將影響中東和一些東南亞國家。但我們認為，Bigo Live 將在下半年逐步企穩並恢復環比增長。

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) My question is about margin part. How should we think about our, for example, the cost optimization, operating expense trends and also margin outlook for second half?

（外語）我的問題是關於邊距部分。例如，我們應該如何考慮我們的成本優化、運營費用趨勢以及下半年的利潤率前景？

(foreign language)

（外語）

[Interpreted] Thank you, Yiwen. This is Alex. I will take your questions. First of all, I'd like to elaborate a little bit more about our Q2 guidance. There are mainly 2 considerations. First, there is the impact of seasonality. Although we've seen some recovery in Q1 in some regions, the recovery is still relatively moderate, and Ramadan may still have some effect on the monetization of some regions. And second is, we've just mentioned starting in Q2, in line with our global positioning, we plan to strategically streamline some of our noncore operations so that we can concentrate our resources towards our core global businesses. And the current guidance reflects the impact of seasonality and some impact from the above-mentioned business adjustments.

【解讀】謝謝你，一文。這是亞歷克斯。我會回答你的問題。首先，我想詳細說明一下我們的第二季度指南。主要有2個考慮。首先是季節性的影響。雖然我們看到一些地區在 Q1 有所復甦，但復甦仍然相對溫和，齋月可能仍會對一些地區的貨幣化產生一些影響。其次，我們剛剛提到從第二季度開始，根據我們的全球定位，我們計劃從戰略上精簡我們的一些非核心業務，以便我們可以將資源集中在我們的核心全球業務上。目前的指引反映了季節性的影響和上述業務調整的一些影響。

And second, on your question on profitability trends. If you look at our performance in the first quarter, we actually did better than our expectations. Bigo segment achieved a non-GAAP operating margin of 13.6%, which is up by 1.6 percentage points from 12% last year, and that was mainly due to higher gross margin, which was improved from 34.7% to 37.4%.

其次，關於盈利趨勢的問題。如果你看一下我們第一季度的表現，我們實際上做得比我們預期的要好。 Bigo 部門的非美國通用會計準則營業利潤率為 13.6%，比去年的 12% 上升了 1.6 個百分點，這主要是由於毛利率較高，從 34.7% 提高到 37.4%。

And if we look at the all other segment, the non-GAAP operating loss also further narrowed quite substantially by 18.2% despite the Q1 seasonality impact. And that was mainly due to our product's improved gross margin profile and also continued expenses optimization.

如果我們看看所有其他部分，儘管受到第一季度季節性影響，非 GAAP 營業虧損也進一步大幅收窄 18.2%。這主要是由於我們產品毛利率狀況的改善以及費用的持續優化。

So looking forward to Q2, we expect the above-mentioned business adjustment might cause a sequential decline in our margins during the quarter. But as we enter into the second half of the year, when business growth accelerates, we expect both business segments to resume sequential margin improvement.

所以展望第二季度，我們預計上述業務調整可能會導致本季度我們的利潤率環比下降。但隨著我們進入下半年，當業務增長加速時，我們預計這兩個業務部門將恢復連續的利潤率改善。

To sum up, we will still prioritize high-quality growth, and for the full year of '23, we expect the non-GAAP operating profit margin of the Bigo segment to remain roughly stable when compared with what we achieved in the year '22. And at group level, we expect to remain profitable and self-sufficient in our operating cash flows.

總而言之，我們仍將優先考慮高質量增長，對於 23 年全年，我們預計 Bigo 部門的非 GAAP 營業利潤率與我們 22 年取得的成績相比將保持大致穩定.在集團層面，我們預計我們的經營現金流將保持盈利和自給自足。

Next question comes from Henry Sun with JPMorgan.

下一個問題來自摩根大通的 Henry Sun。

(foreign language) So I have a question regarding the share repurchase program. Could management share some details on your execution plan going forward?

（外語）所以我有一個關於股票回購計劃的問題。管理層能否分享您未來執行計劃的一些細節？

(foreign language)

（外語）

[Interpreted] Thank you, Henry, for your question. This is David. Regarding your question on capital return, if we look at the Q1 numbers, we have, in total, repurchased approximately 15.7 million of our shares and declared cash dividends in an amount of 35.5 million and altogether representing approximately 103% of our non-GAAP net profit.

[已翻譯] 亨利，謝謝你的問題。這是大衛。關於你關於資本回報的問題，如果我們看一下第一季度的數字，我們總共回購了大約 1570 萬股股票並宣布了 3550 萬股現金股息，總共占我們非 GAAP 淨額的大約 103%利潤。

As of the end of Q1, we have around 718 million unutilized quota under our existing share repurchase program. Given the current market circumstances, we will step up our share repurchases in the second quarter. And overall speaking, we will continue to maintain financially flexible and strike a balance between keeping sufficient cash and investing in our core businesses while enhancing returns for our shareholders.

截至第一季度末，我們現有的股票回購計劃下還有大約 7.18 億未使用的配額。鑑於當前的市場情況，我們將在第二季度加大股票回購力度。總體而言，我們將繼續保持財務靈活性，並在保持充足現金和投資於我們的核心業務之間取得平衡，同時提高股東回報。

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 related to the overall product metrics strategy, such as Likee. So can management share with us any color on the update of Likee's development and the outlook? And then looking ahead, when are we going to see the year-on-year resumption of user growth?

（外語）我的問題是關於整體產品指標策略的，比如Likee。那麼管理層能否與我們分享一下Likee的最新發展和前景？然後展望未來，我們什麼時候才能看到用戶同比恢復增長？

(foreign language)

（外語）

[Interpreted] Thank you, Jasmine, for the question. This is David. As I've mentioned in my prepared remarks, Likee made quite some significant progress during the quarter.

[已翻譯] 謝謝 Jasmine 提出的問題。這是大衛。正如我在準備好的發言中提到的那樣，Likee 在本季度取得了相當大的進步。

First of all, we can see that Likee's core user base, its DAUs, grew by 5.2% on a quarterly basis. And secondly, if we look at monetization despite the weak seasonality in Q1, Likee's revenue increased by 9% sequentially, and that was mainly due to an uptick in live streaming penetration rate and also the substantial increase of its advertising revenue from the previous quarter. And thirdly, Likee once again achieved financial breakeven in the first quarter and even made a small profit after hitting this milestone in the second half of last year. These are all meaningful progress and should be considered a positive answer to our proactive strategy adjustments in the past 2 years.

首先，我們可以看到 Likee 的核心用戶群，即 DAU，按季度增長了 5.2%。其次，如果我們看一下貨幣化，儘管第一季度季節性疲軟，但 Likee 的收入環比增長了 9%，這主要是由於直播滲透率的上升以及廣告收入較上一季度的大幅增長。第三，Likee在第一季度再次實現財務收支平衡，甚至在去年下半年達到這一里程碑後實現微利。這些都是有意義的進展，應該算是對我們過去兩年主動調整戰略的積極回應。

And yet, we are also aware that it still takes a few additional steps for Likee to get back on the full recovery track. And going forward, Likee will continue to focus on key markets such as the Middle East and Europe and continue to work on creator support, cultivating interest-based content offerings and user community and also advancing users' social interactions. So these are the fundamental drivers for sustainable organic growth of its user base and also monetization and profitability improvement.

然而，我們也意識到 Likee 還需要一些額外的步驟才能回到完全康復的軌道上。展望未來，Likee 將繼續專注於中東和歐洲等關鍵市場，並繼續致力於創作者支持、培養基於興趣的內容產品和用戶社區，並促進用戶的社交互動。因此，這些是其用戶群可持續有機增長以及貨幣化和盈利能力改善的基本驅動力。

With our progress in Q1, we believe Likee has taken one step forward towards achieving full year breakeven and also reversing a user growth trend in some key markets shortly.

隨著我們在第一季度取得的進展，我們相信 Likee 已經朝著實現全年收支平衡以及短期內扭轉一些關鍵市場的用戶增長趨勢邁出了一步。

So that's the end of our Q&A. And thank you so much for joining our call today. We look forward to speaking with everyone in the next quarter. Thank you.

我們的問答到此結束。非常感謝您今天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。

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

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。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]