JOYY Inc (YY) 2023 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the JOYY Inc.'s Second Quarter 2023 Earnings Call. (Operator Instructions)

女士們、先生們，感謝大家的支持，歡迎參加 JOYY Inc. 的 2023 年第二季度財報電話會議。 （操作員說明）

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.

現在我想把今天的會議交給你們的東道主謝珍，她是公司投資者關係高級經理。請繼續，簡。

Thank you, operator. Hello, everyone. Welcome to JOYY's Second 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，接線員。大家好。歡迎參加歡聚集團 2023 年第二季度收益電話會議。今天加入我們的有歡聚董事長兼首席執行官李學凌先生；我們的首席運營官李婷女士；劉先生，財務副總裁。

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.

在今天的電話會議中，管理層將首先對本季度進行回顧，然後我們將進行問答環節。本次電話會議的財務業績和網絡廣播可在 ir.joyy.com 上獲取。本次電話會議的重播也將在幾個小時後在我們的網站上提供。

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 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.

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當前的預期不同。有關風險和不確定性的詳細討論，請參閱我們最新的 20-F 表格年度報告以及向 SEC 提交的其他文件。

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

最後請注意，除非另有說明，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.

現在我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 second quarter 2023 earnings call. Let's begin by reviewing our overall performance for the second quarter.

大家好。歡迎參加我們的 2023 年第二季度財報電話會議。讓我們首先回顧一下我們第二季度的整體表現。

During the second quarter, we delivered a strong performance that was in line with our expectations. Our group revenue coming above the high end of our guidance to $547.3 million. We hit a non-GAAP net profit of $97.3 million and 89.1% year-over-year increase with a non-GAAP net margin of 17.8%. Importantly, we maintained a positive operating cash flow of $61.8 million, which boosted our already solid financial position.

第二季度，我們的表現強勁，符合我們的預期。我們的集團收入超過了我們指導的上限，達到 5.473 億美元。我們的非 GAAP 淨利潤為 9730 萬美元，同比增長 89.1%，非 GAAP 淨利潤率為 17.8%。重要的是，我們保持了 6180 萬美元的正運營現金流，這增強了我們本已穩固的財務狀況。

The BIGO segment recorded revenue of $471.1 million, a slight quarter-over-quarter increase, demonstrating further signs of stabilization. This non-GAAP operating profit reached $75.5 million, and it further expanded its non-GAAP operating profit margin to 16%.

BIGO 業務收入為 4.711 億美元，環比略有增長，顯示出進一步穩定的跡象。這一非 GAAP 營業利潤達到 7550 萬美元，並將其非 GAAP 營業利潤率進一步擴大至 16%。

In the second quarter, our global MAUs grew to 275.6 million, a quarterly increase of 1% and a slight annual increase, showing continued recovery and our effective product strategy, even as we adhered to our disciplined marketing spending. In particular, BIGO LIVE's MAU sustained its strong growth momentum, increasing by 18% year-over-year to 38.5 million. This was fifth consecutive quarter in which BIGO LIVE recorded a double digit year-over-year MAU growth.

第二季度，我們的全球月活躍用戶數增長至 2.756 億，季度增長 1%，年度略有增長，顯示出持續的複蘇和我們有效的產品策略，儘管我們堅持嚴格的營銷支出。尤其是BIGO LIVE的月活躍用戶保持強勁增長勢頭，同比增長18%至3850萬。這是 BIGO LIVE 連續第五個季度月活躍用戶數同比增長兩位數。

Our performance in the second quarter was largely driven by our effective product strategy as we continue to enhance our users' content and social experiences through cultivation of diverse premium content, product feature innovations and localized operations. On the product front, we constantly developed and strengthened our platform content and the social interaction features. For instance, we have harnessed AI to refine our understanding of user profiles on BIGO LIVE. This helps us optimize our recommendation algorithms, and deliver personal content that better suits users' individual interests. At the same time, we expanded interactive tools and social scenarios to enhance interactions between users and we enable user interaction in a range of virtual environments such as livestreaming sessions, interest-based communities and swipe-to-match channels where users meet and chat with new people.

我們第二季度的業績很大程度上得益於有效的產品策略，我們通過培育多元化的優質內容、產品功能創新和本地化運營，不斷增強用戶的內容和社交體驗。在產品方面，我們不斷開發和強化平台內容和社交互動功能。例如，我們利用人工智能來加深對 BIGO LIVE 上用戶資料的理解。這有助於我們優化推薦算法，並提供更適合用戶個人興趣的個人內容。同時，我們擴展了交互工具和社交場景，以增強用戶之間的互動，並在一系列虛擬環境中實現用戶交互，例如直播會話、基於興趣的社區以及用戶見面和聊天的刷卡匹配渠道。新人。

We cater to broader and much more diverse set of social needs. We are also actively developing and testing some new AIGC-related features to facility content creation and streamer-fan communication.

我們滿足更廣泛、更多樣化的社會需求。我們還積極開發和測試一些與 AIGC 相關的新功能，以促進內容創作和主播與粉絲的交流。

Heading into the second half of 2023, we will explore new ways to future improve users content and social experience through product upgrades. We believe continuous efforts to improve product experience and facilitate engaging social interactions are fundamental elements for sustainable user growth and paying user conversion.

進入2023年下半年，我們將探索未來通過產品升級改善用戶內容和社交體驗的新途徑。我們相信，不斷努力改善產品體驗和促進社交互動是可持續用戶增長和付費用戶轉化的基本要素。

On the operational activities front, we partnered with a diverse spectrum of KOLs and institutions during the quarter. This has increased our diverse, high-quality localized content and successfully enhanced our brand's influence within local communities. Meanwhile, as a global tech company dedicated to enriching lives and delivering value to our users and local communities, we are actively and progressively embedding social responsibility into our day-to-day operations. During the Ramadan, we launched wide range of online campaigns across the Middle East, South East Asia and other regions, encouraging users to participate and share their acts of kindness to embrace the festive spirit. We raised funds through multiple online campaigns on our platforms and extended our support to various programs under several international charities such as Indonesia Cancer Foundation, the Children's Cancer Center of Lebanon, and Jordan's TUA, being a community-driven platform, giving back to society a crucial part of our values such as we remain committed to operational innovation with emphasis on creating positive social impact.

在運營活動方面，本季度我們與各類 KOL 和機構合作。這增加了我們多樣化、高質量的本地化內容，並成功增強了我們的品牌在當地社區的影響力。與此同時，作為一家致力於豐富生活並為用戶和當地社區創造價值的全球科技公司，我們正在積極、逐步地將社會責任融入到我們的日常運營中。齋月期間，我們在中東、東南亞等地區開展了廣泛的在線活動，鼓勵用戶參與並分享他們的善舉，以擁抱節日氣氛。我們通過平台上的多次在線活動籌集資金，並為印度尼西亞癌症基金會、黎巴嫩兒童癌症中心和約旦 TUA 等多個國際慈善機構的各種項目提供支持，作為一個社區驅動的平台，回饋社會我們價值觀的重要組成部分，例如我們仍然致力於運營創新，強調創造積極的社會影響。

Looking ahead to the second half of 2023, while there have been some continued signs of recovery, we remain consciously optimistic regarding industry outlook, given that ongoing macroeconomic uncertainties may still pressure consumer spending. We will continue to drive effective high-quality growth through ongoing product and operational innovations. Moreover, as communicated in the previous quarter, globalization remains a key driver of our business growth and our top priority. We intend to further concentrate our resources on building our core strengths and global business that aligns with our long-term strategies and actively better growth opportunities -- pursue growth opportunities.

展望2023年下半年，雖然出現了一些持續復甦的跡象，但考慮到持續的宏觀經濟不確定性可能仍會給消費者支出帶來壓力，我們對行業前景仍保持自覺樂觀。我們將通過持續的產品和運營創新，繼續推動有效的高質量增長。此外，正如上一季度所傳達的那樣，全球化仍然是我們業務增長的關鍵驅動力和我們的首要任務。我們打算進一步集中資源，打造符合我們長期戰略的核心優勢和全球業務，並積極尋求更好的增長機會——追求增長機會。

Before we move on to the detailed product updates, I would like to provide an update on capital return. We significantly stepped up our share buyback during the second quarter and bought back additional $214.3 million of our shares. Since 2020, we have distributed around the USD 1.32 billion of capital to our shareholders through share buybacks and dividends. This reflected 5.4x of our total non-GAAP net profit, excluding discontinued operation over that period, a substantial amount, especially when compared to our market cap. It demonstrates our ongoing dedication to reward our shareholders' long-term support. We remain committed to create and return value to our shareholders and we will continue to actively utilize our share buyback programs going forward.

在我們繼續詳細的產品更新之前，我想先介紹一下資本回報的最新情況。我們在第二季度大幅加大了股票回購力度，額外回購了價值 2.143 億美元的股票。自2020年以來，我們已通過股票回購和股息向股東分配了約13.2億美元的資本。這反映了我們非公認會計原則淨利潤總額的 5.4 倍（不包括該期間已終止的業務），這是一個很大的數字，特別是與我們的市值相比。這體現了我們持續致力於回報股東的長期支持。我們仍然致力於為股東創造和回報價值，並將繼續積極利用我們的股票回購計劃。

Now let's take a closer look at our products, we will start with BIGO LIVE. In the second quarter, BIGO LIVE maintained its double digit user growth momentum for the fifth consecutive quarter with MAUs increasing by 18% year-over-year to 38.5 million. We observed growth across several key regions, with year-over-year growth rate of 10.3% in Europe, 16.9% in Middle East and 20.8% in Southeast Asia and other emerging markets.

現在讓我們仔細看看我們的產品，我們將從BIGO LIVE開始。第二季度，BIGO LIVE連續第五個季度保持兩位數用戶增長勢頭，月活躍用戶數同比增長18%至3850萬。我們觀察到幾個關鍵地區的增長，其中歐洲同比增長率為10.3%，中東為16.9%，東南亞和其他新興市場為20.8%。

BIGO LIVE's revenue continued to stabilize during the quarter, and we saw recovery from developed regions, especially Europe, Japan and Korea. BIGO LIVE launched a series of themed activities across various regions in the second quarter, delivering a continuous stream of the diverse local and premium content to users. In April, BIGO LIVE partnered with social media influencer Kway and launched reality dating show in North America. This innovative content proved extremely popular, drawing over 2.3 million in viewership. This was the second original BIGO LIVE reality show following the successful launch of its previous series Game Changer back in February.

本季度BIGO LIVE的收入繼續穩定，我們看到發達地區的複蘇，特別是歐洲、日本和韓國。 BIGO LIVE第二季度在各地區推出了一系列主題活動，源源不斷地為用戶帶來多元化的本地優質內容。 4月，BIGO LIVE與社交媒體紅人Kway合作，在北美推出真人秀相親節目。事實證明，這一創新內容非常受歡迎，吸引了超過 230 萬觀眾。這是繼二月份成功推出上一系列 Game Changer 後，BIGO LIVE 推出的第二部原創真人秀。

The production process for both shows include script planning, artist management, filming, production and marketing, carried out by BIGO LIVE's local team. The success of these series showcased our ongoing dedication to cultivating diverse, high-quality content to our local user communities. Similarly, in June, BIGO LIVE partnered with Ravolution Music Festival in Vietnam to provide users with eight-hour live broadcasting of the event. This gave users the ultimate music festival experience and attracted hundreds of thousands of viewers worldwide. We actively encouraged user engagements on BIGO LIVE's social communities through a number of organized events. Our family feature launched in 2019 brings together streamers, fans and others united by similar interests to uphold the honor of their respective families.

兩場節目的製作流程包括劇本策劃、藝人管理、拍攝、製作和營銷等，均由BIGO LIVE本地團隊負責。這些系列的成功展示了我們持續致力於為本地用戶社區培養多樣化、高質量的內容。同樣，6月，BIGO LIVE與越南Ravolution音樂節合作，為用戶提供八小時的賽事直播。這為用戶帶來了極致的音樂節體驗，並吸引了全球數十萬觀眾。我們通過一系列有組織的活動積極鼓勵用戶參與 BIGO LIVE 的社交社區。我們於 2019 年推出的家庭功能將主播、粉絲和其他有著相似興趣的人聚集在一起，共同維護各自家庭的榮譽。

It has become a vital bonding element of our user community. In May, we introduced Family Month to further strengthen these bonds. During this event, BIGO LIVE held a number of activities and contests with families ranked and awarded based on participation and interaction levels. In the Middle East, BIGO LIVE held an off-line meet up for the top local families which created a unique opportunity for family members to build off-line connections. Family Month generated significant user interest and attention and fostered rapid growth in family sizes. The number of contracted streamers who are members of family grew by 5.1% from the first quarter and daily paying users with family membership rose 3.8%.

它已成為我們用戶社區的重要紐帶元素。五月份，我們推出了家庭月來進一步加強這些聯繫。本次活動期間，BIGO LIVE舉辦了多項活動和競賽，根據家庭參與度和互動程度進行排名和獎勵。在中東，BIGO LIVE為當地頂級家庭舉辦了線下聚會，為家庭成員建立線下聯繫創造了獨特的機會。家庭月引起了用戶的極大興趣和關注，並促進了家庭規模的快速增長。家庭成員簽約主播數量較第一季度增長 5.1%，家庭成員日付費用戶增長 3.8%。

On the content development front, BIGO LIVE retained its focus on incentivizing the creation of video content in the BAR channel, our introduction of newly refined video creation tools and implementation of a reward system to encourage creation, consumption, and sharing on BAR, drove 26.5% sequential increase in the amount of BAR video content produced in the second quarter with the total number of video shares and downloads doubling over the same period.

在內容開發方面，BIGO LIVE 繼續專注於激勵 BAR 頻道的視頻內容創作，我們引入了新完善的視頻創作工具並實施獎勵系統以鼓勵 BAR 上的創作、消費和分享，推動了 26.5第二季度BAR 視頻內容製作量環比增長%，視頻共享和下載總數同期翻倍。

During the quarter, we also upgraded our user interface and optimized our content recommendation algorithms. These initiatives further improved users' overall viewing experience in BAR and average impressions per user increased by 5.7% sequentially in the second quarter. At the same time, we enhanced the social interactions by introducing the ability to send images and play games within live sessions on BIGO LIVE. This fueled 1% sequential increase in the number of users going live in multi-guest rooms along with a 15.1% sequential increase in the number of users actively engaging per live session.

在本季度，我們還升級了用戶界面並優化了內容推薦算法。這些舉措進一步改善了 BAR 用戶的整體觀看體驗，第二季度每位用戶的平均展示次數環比增長了 5.7%。同時，我們通過在 BIGO LIVE 的實時會話中引入發送圖像和玩遊戲的功能來增強社交互動。這使得多客房直播的用戶數量環比增加了 1%，並且每個直播會話中積極參與的用戶數量環比增加了 15.1%。

Next, let's move on to Likee. Likee's focus remains set on improving product monetization efficiency and organic user acquisition capabilities. During the second quarter, Likee increased its revenue by 11.2% sequentially and continued to deliver profitability at the product level. This marks its second consecutive half year of achieving breakeven. After initially doing so in the second half of last year, despite a sequential decline in Likee MAUs this quarter its DAUs saw a slight increase quarter-over-quarter, its DAUs even grew by double digits in some core regions.

接下來，我們繼續講Likee。 Likee 的重點仍然是提高產品變現效率和有機用戶獲取能力。第二季度，Likee 收入環比增長 11.2%，並繼續在產品層面實現盈利。這標誌著其連續第二年實現盈虧平衡。自去年下半年開始，儘管本季度Likee月活躍用戶數環比下降，但其DAU環比略有增長，在一些核心區域，其DAU甚至實現了兩位數增長。

In the second quarter, Likee further developed its creator services and improved user content and social experience. To increase creator efficiency, Likee rolled out video collection feature to streamline the video production process. Likee also furnished creators with data and analytics tools to help them fine-tune their content and better align it with the interest of their audience. Likee has also supported its content creators by connecting them with e-commerce platforms and brand merchants to generate additional monetization channels.

第二季度，Likee進一步發展創作者服務，提升用戶內容和社交體驗。為了提高創作者效率，Likee推出視頻採集功能，簡化視頻製作流程。 Likee 還為創作者提供了數據和分析工具，幫助他們微調內容並更好地滿足受眾的興趣。 Likee 還通過將內容創作者與電子商務平台和品牌商家聯繫起來來支持他們，以創造更多的貨幣化渠道。

In June, Likee hosted its first-ever Summer Party. The event aimed to acknowledge outstanding creators from the past year and boost their visibility on the platform. It brought together hundreds of top talents and brand representatives, encouraging in-person interactions and networking. As a result, the number of official creators on Likee increased by 4% sequentially in the second quarter.

六月，Likee 舉辦了首屆夏季派對。該活動旨在表彰過去一年中的傑出創作者並提高他們在平台上的知名度。它聚集了數百名頂尖人才和品牌代表，鼓勵面對面的互動和交流。受此影響，第二季度Likee官方創作者數量環比增長4%。

Likee also further enhanced user interactions within its community. In the second quarter, IM penetration rate continued to grow, increased by 6.8% sequentially. Overall, user engagement, as measured by the ratio of DAUs to MAUs grew by 4.2% sequentially. While average user time spending increased by 15.8%.

Likee 還進一步增強了社區內的用戶互動。第二季度，IM滲透率繼續增長，環比增長6.8%。總體而言，以 DAU 與 MAU 之比衡量的用戶參與度環比增長了 4.2%。而平均用戶花費時間則增加了15.8%。

Finally, let's turn to HAGO. In the second quarter, HAGO's revenue increased by 6.4% sequentially and is further narrowed its operating loss through the continued cost optimization. Importantly, HAGO's operation cash flow turned positive during the quarter, reaching another milestone on the road towards self-sufficiency.

最後，讓我們轉向HAGO。第二季度，HAGO收入環比增長6.4%，並通過持續的成本優化進一步縮小經營虧損。重要的是，HAGO本季度運營現金流轉正，在自給自足的道路上達到了另一個里程碑。

During the quarter, HAGO upgraded a number of features to further enhance its monetization efficiency and improve user social engagement. To improve users paying sentiment and enhanced monetization, HAGO launched Celebration Room, a new kind of multi-guest room themed for specific occasions such as birthday parties. It also introduced a royalty feature to multi-guest rooms and enabled additional decoration and communication privileges to HAGO couples. HAGO also optimized the distribution of multi-guests real-time interactive rooms across in different regions and effectively upgraded the users interactive social experience through the gamification of dressing up 3Ds avatars. These product development efforts resulted in 1.2% sequential increase in the penetration rate of HAGO's social channels. Average user time spent on HAGO per day rose as well growing by 5.2% from the first quarter.

本季度，HAGO升級了多項功能，進一步提升變現效率，提高用戶社交參與度。為了提高用戶的付費意願並增強變現能力，HAGO推出了慶祝室，這是一種以生日派對等特定場合為主題的新型多客房主題房間。它還為多間客房引入了皇室功能，並為 HAGO 夫婦提供了額外的裝飾和通訊特權。 HAGO還優化了多客實時互動房間在不同區域的分佈，通過3D角色裝扮的遊戲化，有效升級了用戶的互動社交體驗。這些產品開發工作使 HAGO 社交渠道的滲透率環比增長了 1.2%。用戶每天在 HAGO 上花費的平均時間也比第一季度增長了 5.2%。

To summarize, despite ongoing macroeconomic uncertainties, our strong execution enabled us to deliver a solid financial performance in the second quarter. Through continuous product improvements and operational enhancements, BIGO successfully navigated the headwinds and improved its operating margin. With BIGO LIVE sustained its strong user growth momentum, we also significantly stepped up our share repurchase during the quarter underscoring our confidence in our future growth prospects and our commitment to reward the long-term support of our shareholders.

總而言之，儘管宏觀經濟持續存在不確定性，但我們強大的執行力使我們能夠在第二季度實現穩健的財務業績。通過不斷的產品改進和運營增強，BIGO 成功克服了逆風並提高了運營利潤率。隨著BIGO LIVE保持強勁的用戶增長勢頭，我們在本季度還大幅加大了股票回購力度，突顯了我們對未來增長前景的信心以及我們對回報股東長期支持的承諾。

Looking ahead to the second half of 2023, we will continue to drive effective high-quality growth through ongoing product and operational innovations. We will further concentrate our resources on building our core strengths and the global business that align with our long-term strategies, and actively pursue growth opportunities.

展望2023年下半年，我們將繼續通過持續的產品和運營創新，推動有效的高質量增長。我們將進一步集中資源打造我們的核心優勢和符合我們長期戰略的全球業務，並積極尋求增長機會。

With our proven execution capabilities and robust financial position, we are well positioned to seize growth opportunities and generate value for our shareholders. This concludes my prepared remarks. I will now turn the call to our Vice President of Finance, Alex Liu for our financial updates.

憑藉我們經過驗證的執行能力和穩健的財務狀況，我們有能力抓住增長機會並為股東創造價值。我準備好的發言到此結束。我現在將致電我們的財務副總裁 Alex Liu，了解我們的財務最新情況。

Thanks, David. Hello, everyone. Despite macro uncertainties, we achieved solid results in the second quarter. Our revenues in the second quarter exceeded the higher end of our guidance, and we continued to deliver better profits, thanks to our strong execution to enhance our product experience and improve operational efficiency. Notably, BIGO segment showed more signs of stabilization by delivering a slight positive sequential growth in its revenue, while further improving its non-GAAP operating margin to 16%.

謝謝，大衛。大家好。儘管存在宏觀不確定性，我們第二季度仍取得了穩健的業績。我們第二季度的收入超出了我們指導的上限，並且由於我們在增強產品體驗和提高運營效率方面的強大執行力，我們繼續實現更好的利潤。值得注意的是，BIGO 部門表現出更多穩定跡象，收入環比小幅正增長，同時將非 GAAP 運營利潤率進一步提高至 16%。

Our operating metrics are also continuing on its growth track. We booked a positive year-over-year and quarter-over-quarter growth for our total global MAU even as they adhere to our disciplined marketing spend. Importantly, BIGO LIVE maintained its strong user growth momentum, increasing its MAU by 18% year-over-year to 38.5 million in the second quarter, achieving double-digit year-over-year growth for fifth consecutive quarters. Both demonstrated our effective product strategy and enhanced user acquisition efficiency.

我們的運營指標也在繼續增長。儘管他們遵守我們嚴格的營銷支出，但我們的全球月活躍用戶總數仍實現了同比和環比積極增長。重要的是，BIGO LIVE保持了強勁的用戶增長勢頭，第二季度月活躍用戶數同比增長18%至3850萬，連續第五個季度實現兩位數同比增長。兩者都展示了我們有效的產品策略並提高了用戶獲取效率。

Next, let me walk you through our group performance for the second quarter of 2023 in detail. Our total net revenues were USD 547.3 million in the second quarter. Revenues from BIGO segment were USD 471.1 million. Cost of revenues for the quarter decreased to USD 349.6 million, among which our revenue sharing fees and the content costs decreased to USD 222.6 million.

接下來我就給大家詳細介紹一下我們2023年第二季度的集團業績。第二季度我們的總淨收入為 5.473 億美元。 BIGO部門的收入為4.711億美元。本季度收入成本下降至 3.496 億美元，其中我們的收入分成費用和內容成本下降至 2.226 億美元。

BIGO's cost of revenues were USD 287.6 million, down by 7% year-over-year. Gross profit was USD 197.8 million in the quarter with a gross margin of 36.9%. BIGO's gross profit was $183.5 million with a gross margin of 38.9%, up from 38.5% in the same period last year.

BIGO的收入成本為2.876億美元，同比下降7%。該季度毛利潤為 1.978 億美元，毛利率為 36.9%。 BIGO的毛利潤為1.835億美元，毛利率為38.9%，高於去年同期的38.5%。

Our group's operating expenses for the quarter were USD 191.7 million, increased from USD 185 million in the same period of 2022. Among the operating expenses, sales and marketing expenses decreased to USD 87.2 million from USD 98.4 million due to our effective control over marketing expenses and optimization of overall sales and marketing strategy.

我們集團本季度的運營費用為1.917億美元，較2022年同期的1.85億美元有所增加。運營費用中，由於我們對營銷費用的有效控制，銷售和營銷費用從9840萬美元減少至8720萬美元以及優化整體銷售和營銷策略。

R&D expenses increased to USD 75.5 million from USD 62.9 million in the same period of 2022, primarily due to increased R&D personnel-related expenses as we prioritized the resources into building our technological capabilities.

研發費用從2022年同期的6290萬美元增加到7550萬美元，主要是由於我們將資源優先用於技術能力建設，研發人員相關費用增加。

BIGO's operating expenses for the quarter were USD 125 million, down by 8% year-over-year. Our group's net operating income for the quarter was USD 9.4 million. 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 34.4 million in this quarter, with a non-GAAP operating income margin of 6.3%.

BIGO本季度運營費用為1.25億美元，同比下降8%。我們集團本季度的淨營業收入為 940 萬美元。本季度我們的非 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商譽和投資減值）為 3,440 萬美元，非 GAAP 營業利潤率為 6.3%。

BIGO's GAAP operating income for the quarter was USD 60.4 million and BIGO's non-GAAP operating income were USD 75.5 million, representing a non-GAAP operating income margin of 16%, up from 15.5% in the same period last year. Our group's GAAP net income attributable to controlling interest of JOYY in the quarter was USD 155.1 million compared to net income of USD 18.7 million in the same period of 2022.

BIGO 本季度的 GAAP 營業收入為 6040 萬美元，BIGO 的非 GAAP 營業收入為 7550 萬美元，非 GAAP 營業利潤率為 16%，高於去年同期的 15.5%。本季度歸屬於歡樂集團控股權益的集團 GAAP 淨利潤為 1.551 億美元，而 2022 年同期淨利潤為 1,870 萬美元。

GAAP net income margin was 28.3% in the second quarter of 2023 compared to net income margin of 3.1% in the corresponding period of 2022. Our gross GAAP net income was larger in the second quarter this year, mainly due to the realized gains from the disposal of certain equity investment increased interest income driven by higher market interest rates and foreign currency exchange gains during the quarter.

2023 年第二季度的 GAAP 淨利潤率為 28.3%，而 2022 年同期的淨利潤率為 3.1%。今年第二季度我們的 GAAP 淨利潤總額較大，主要是由於由於市場利率上升和本季度外匯收益增加，處置某些股權投資增加了利息收入。

BIGO's GAAP net income in the quarter was USD 83.7 million, increasing by 26.6% year-over-year. BIGO's GAAP net margin was 17.8%, up from 13.1% in the same period last year. Non-GAAP net income attributable to controlling interest of JOYY in the quarter was USD 97.3 million compared to USD 51.5 million in the same period of 2022. The group's non-GAAP net income margin was 17.8% in the quarter compared to 8.6% in the same period of 2022.

BIGO 本季度 GAAP 淨利潤為 8370 萬美元，同比增長 26.6%。 BIGO 的 GAAP 淨利潤率為 17.8%，高於去年同期的 13.1%。本季度歸屬於歡樂集團控股權益的非 GAAP 淨利潤為 9,730 萬美元，而 2022 年同期為 5,150 萬美元。該集團本季度的非 GAAP 淨利潤率為 17.8%，而上一季度為 8.6%。 2022年同期。

BIGO's non-GAAP net income was USD 99.7 million, increasing by 15.5% year-over-year. BIGO's non-GAAP net margin was 21.2%, up from 17.2% in the same period last year.

BIGO的非GAAP淨利潤為9970萬美元，同比增長15.5%。 BIGO 的非 GAAP 淨利潤率為 21.2%，高於去年同期的 17.2%。

For the second quarter of 2023, we booked net cash inflows from operating activities of USD 61.2 million. We remain a healthy benefit with a strong cash position of USD 3.8 billion as of June 30, 2023. Our cash position decreased quarter-over-quarter as we repurchased USD 432 million of our 2025 convertible note and our accelerated share buyback, partially offset by proceeds received from disposal of certain equity investment during the quarter.

2023 年第二季度，我們的經營活動現金流入淨額為 6120 萬美元。截至2023 年6 月30 日，我們仍然保持健康的效益，擁有38 億美元的強勁現金頭寸。由於我們回購了4.32 億美元的2025 年可轉換票據以及加速股票回購，我們的現金頭寸環比下降，但部分抵消了本季度出售某些股權投資收到的收益。

In the second quarter, we continued to enhance returns to shareholders through dividends and share repurchase. We have substantially accelerated our share buyback and repurchased approximately USD 214.3 million of our shares and declared cash dividend in an aggregate amount of USD 34.2 million, which altogether representing to 155% of our non-GAAP net income. We will continue to actively utilize our share repurchase program in the coming quarters.

二季度，我們繼續通過派息、股票回購等方式提升股東回報。我們大幅加快了股票回購速度，回購了約 2.143 億美元的股票，並宣布了總計 3,420 萬美元的現金股息，合計占我們非 GAAP 淨利潤的 155%。我們將在未來幾個季度繼續積極利用我們的股票回購計劃。

As communicated last quarter, in line with our global positioning and the commitment to high-quality sustainable growth, we have strategically streamlined and implemented certain proactive adjustments to some of our noncore regions since last quarter so that we can concentrate our resources towards building our (inaudible) and business that align with our long-term strategic goals and further enhance healthiness of our ecosystem. Therefore, possibly as a result of this adjustment for our business outlook, we expect our net revenues for the third quarter of 2023 to be between USD 537 million and USD 567 million.

正如上季度所傳達的，根據我們的全球定位和對高質量可持續增長的承諾，自上季度以來，我們對一些非核心區域進行了戰略性精簡和主動調整，以便我們能夠集中資源建設我們的（聽不清）以及符合我們長期戰略目標並進一步增強我們生態系統健康狀況的業務。因此，可能是由於我們對業務前景進行了調整，我們預計 2023 年第三季度的淨收入將在 5.37 億美元至 5.67 億美元之間。

This forecast reflects our preliminary views on the market and operational conditions and business adjustments, which are subject to change. In conclusion, we have made meaningful progress in the past several quarters in our efforts to enhance our efficiency, expand our profitability, improve our user experience and reaccelerate user growth. We have also strengthened our execution capabilities and improved the healthiness of our global ecosystem. Going forward, we will continue to cultivate our global user community and provide better and active experiences to our users through constant product innovation and operational enhancements.

該預測反映了我們對市場和運營狀況以及業務調整的初步看法，這些看法可能會發生變化。總之，過去幾個季度我們在提高效率、擴大盈利能力、改善用戶體驗和重新加速用戶增長方面取得了有意義的進展。我們還增強了執行能力，改善了全球生態系統的健康狀況。未來，我們將繼續培育全球用戶群體，通過不斷的產品創新和運營提升，為用戶提供更好、更活躍的體驗。

We expect to continue to prioritize our resources into high-potential business that align with our long-term strategic and build our core capabilities while maintaining self-sufficient in our cash flows. With our robust financial position, we are confident that we are well positioned to seize growth opportunities and generate sustainable shareholder value.

我們希望繼續將資源優先投入符合我們長期戰略的高潛力業務，並建立我們的核心能力，同時保持現金流自給自足。憑藉我們穩健的財務狀況，我們有信心能夠抓住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.

我們準備好的發言到此結束。接線員，我們現在要開始提問。

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

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

(foreign language) My question is on BIGO LIVE. Can management comment about the trend across different regions in the second half? How should we think about the overall user base as well as the monetization trend?

（外語）我的問題是在BIGO LIVE 上。管理層能否評論一下下半年不同地區的趨勢？我們應該如何考慮整體用戶基礎以及貨幣化趨勢？

(foreign language)

（外語）

[Interpreted] Thank you, Thomas, for your question. This is David. I will answer your first question. So first, let's look at the recent monetization trends across different regions. The developed countries regions have shown a gradual recovery trend in the past quarters. And in the second quarter, we saw that trend continue with Europe, Japan and Korea deliver a better Q-o-Q growth than other countries and regions. The fact that the development is at the first recover is related to the macro environment, which turned out -- with macro economy turned out to be much more resilient. And it's also related to our operational strategy in recent quarters.

[解釋] 謝謝托馬斯的提問。這是大衛。我會回答你的第一個問題。首先，我們來看看不同地區最近的貨幣化趨勢。發達國家地區在過去幾個季度呈現出逐步復甦的趨勢。在第二季度，我們看到這一趨勢仍在繼續，歐洲、日本和韓國的環比增長優於其他國家和地區。發展首次復蘇與宏觀環境有關，宏觀經濟的韌性明顯增強。這也與我們最近幾個季度的運營策略有關。

We consciously tilted our operation strategy including our user acquisition spending, operational resources and product optimizations towards users with higher paying potentials. The developed countries generally have more users with higher paying potential, therefore, benefited from such operational strategy and enjoy a faster revenue recovery.

我們有意識地將我們的運營策略（包括用戶獲取支出、運營資源和產品優化）向具有更高付費潛力的用戶傾斜。發達國家普遍擁有較多的用戶和較高的付費潛力，因此受益於這種運營策略，收入恢復較快。

Looking ahead to second half of the year, we expect BIGO LIVE's revenue to return to positive growth as we enter into a peak season of operational activities and the implied Q-o-Q growth for BIGO LIVE in our current Q3 guidance is in the low single digits to mid- and high single-digit range. Given the current macro uncertainties, I believe we still need to remain cautiously optimistic regarding industry outlook, and we will continue to closely monitor the changing environment, effectively adjust our operational strategy and steadily drive high-quality growth.

展望下半年，隨著我們進入運營活動旺季，我們預計 BIGO LIVE 的收入將恢復正增長，並且我們當前第三季度指導中 BIGO LIVE 隱含的環比增長處於低個位數到中位數- 和高個位數範圍。鑑於當前宏觀不確定性，我認為我們對行業前景仍需保持謹慎樂觀，我們將繼續密切關注環境變化，有效調整經營策略，穩步推動高質量發展。

(foreign language)

（外語）

Interpreted And for your second question on user growth. In the second quarter, you can see our group's MAU realized positive growth both year-on-year and quarter-over-quarter and importantly, BIGO LIVE sustained its strong user growth momentum with its MAU increasing by 18% year-over-year. And that was actually accelerated, especially when compared to the same period last year. And this was achieved even as we adhere to our disciplined marketing spend. And it means that we have a larger contribution from organic growth.

解釋一下關於用戶增長的第二個問題。第二季度，大家可以看到我們集團的月活躍用戶同比和環比都實現了正增長，重要的是BIGO LIVE保持了強勁的用戶增長勢頭，月活躍用戶同比增長了18%。這實際上是加速的，特別是與去年同期相比。即使我們堅持嚴格的營銷支出，我們還是實現了這一目標。這意味著我們從有機增長中獲得了更大的貢獻。

And we attribute the enhanced user growth efficiency to several aspects. First of all, we conducted in-depth analysis of user profiles in each region and introduced a more refined content segregation and differentiated recommendation algorithm on BIGO LIVE, which we believe improves user experience and retention. And for BIGO LIVE, this is a product that operates in more than 150 countries with content in 30 languages and a very diverse user community. We believe there is plenty of room for refined and differentiated operation of content. And technically, there is no end to the continuous optimization of operations in this regard. So we'll continue to work on that, and we expect that to continue to drive better user experience and also retention.

我們將用戶增長效率的提升歸因於幾個方面。首先，我們對各個地區的用戶畫像進行了深入分析，並在BIGO LIVE上引入了更精細的內容隔離和差異化推薦算法，我們相信這會提高用戶體驗和留存。對於 BIGO LIVE 來說，這是一款在 150 多個國家/地區運營的產品，擁有 30 種語言的內容和非常多元化的用戶社區。我們認為內容的精細化、差異化運營還有很大的空間。而且從技術上來說，這方面運營的不斷優化是沒有止境的。因此，我們將繼續致力於此，我們期望這將繼續帶來更好的用戶體驗和保留率。

And second, our innovative local operations, we believe, have successfully brought increased amount of organic traffic. During the quarter, we continue to work with a diverse spectrum of KOLs and those events continue to bring abundant traffic, especially in Southeast Asia. And as I just mentioned in my prepared remarks, our local campaigns such as the [original reality show] in North America, the Ravolution Music Festival in Vietnam, all help us reach a wider user base.

其次，我們相信，我們創新的本地運營已成功帶來了自然流量的增加。本季度，我們繼續與各類 KOL 合作，這些活動繼續帶來充足的流量，尤其是在東南亞。正如我剛才在準備好的發言中提到的，我們的本地活動，例如北美的[原創真人秀]、越南的 Ravolution 音樂節，都有助於我們覆蓋更廣泛的用戶群。

And lastly, as a result of our enhanced user experience, our ratings in the app stores have indeed improved and therefore, we obtained greater traffic due to the recommendations by these app stores. So to conclude, given our performance in the past few quarters, I believe BIGO LIVE's user growth strategy has been effective. We will continue to enhance our user experience through product optimization, future innovation and refined operations and drive efficient user growth.

最後，由於我們增強了用戶體驗，我們在應用商店的評分確實有所提高，因此，由於這些應用商店的推薦，我們獲得了更大的流量。綜上所述，考慮到我們過去幾個季度的表現，我相信BIGO LIVE的用戶增長策略是有效的。我們將持續通過產品優化、未來創新和精細化運營提升用戶體驗，驅動用戶高效增長。

Your next question comes from Henry Sun with JPMorgan.

你的下一個問題來自摩根大通的孫亨利。

(foreign language) Can management share more details on deployment of AIGC application into the product planning? What are the current progress and application?

（外語）管理層能否分享更多關於將 AIGC 應用程序部署到產品規劃中的細節？目前的進展和應用情況如何？

(foreign language)

（外語）

[Interpreted] This is David. I will answer your question on AI and AIGC. Actually, we have been having a huge commitment in AI and heavily invested into our AI team as well. And as we've shared in our previous quarters, our team mainly leverages AI for in-depth user profiling, differentiated intelligent recommendations and content quality management. And AI has enabled us to identify user interest and direct users towards a more relevant and personalized content. And it has also improved our users' social and content experience.

[翻譯] 這是大衛。我來回答你關於AI和AIGC的問題。事實上，我們一直在人工智能方面做出了巨大的承諾，並對我們的人工智能團隊也投入了大量資金。正如我們在前幾個季度所分享的，我們的團隊主要利用人工智能進行深度用戶分析、差異化智能推薦和內容質量管理。人工智能使我們能夠識別用戶興趣並引導用戶獲取更相關和個性化的內容。它還改善了我們用戶的社交和內容體驗。

We believe that AI has been very valuable for developing our interest-based community. And we're also actively exploring other applications, especially in improving user interactions and also helping users to freely express their digital personality. For example, in HAGO's previously launched 3D-based feature, it empowers users to create their own 3D virtual avatars and interact with each other in various virtual themes and it actually enables users to engage in an immersive social experience.

我們相信人工智能對於發展我們基於興趣的社區非常有價值。我們也在積極探索其他應用，特別是在改善用戶交互以及幫助用戶自由表達他們的數字個性方面。例如，HAGO此前推出的基於3D的功能，可以讓用戶創建自己的3D虛擬形象，並在各種虛擬主題中進行互動，真正讓用戶獲得身臨其境的社交體驗。

And by simply uploading a photo or videos of those users, users can easily create their personalized 3D digital avatar. And you could drive at the movement of mouse, facial expressions, body gestures of the avatar in real time within -- with the input of text and audio. And recently -- and we can also recreate the voice of a real person through the -- in the 3D avatar as well. And recently at BIGO LIVE, we're testing our AI-enabled chatbot, which can serve as an assistant to streamers and interact intelligently with the fans, improving the efficiency of streamer fan communication and potentially helping the KOL to further expand their fan base.

只需上傳這些用戶的照片或視頻，用戶就可以輕鬆創建自己的個性化 3D 數字化身。通過輸入文本和音頻，您可以實時控制虛擬人物的鼠標移動、面部表情、身體姿勢。最近，我們還可以通過 3D 頭像重新創建真人的聲音。最近在BIGO LIVE上，我們正在測試我們的人工智能聊天機器人，它可以作為主播的助手，與粉絲智能互動，提高主播粉絲溝通的效率，並有可能幫助KOL進一步擴大粉絲群。

So currently, these AIGC-related features are still in the early stage of development, and therefore, we need to continue to iterate and optimize based on user feedback. We remain committed to bring innovative, interactive experiences to our users.

所以目前這些AIGC相關的功能還處於開發的早期階段，因此我們需要根據用戶的反饋不斷迭代和優化。我們仍然致力於為用戶帶來創新的互動體驗。

Your next question comes from Thomas Chong with Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) My question is about the cost side. Can management comment about our cost optimization strategy as well as the trend in operating expenses and -- as well as margin outlook in the second half and 2024?

（外語）我的問題是關於成本方面的。管理層能否評論我們的成本優化策略以及運營費用趨勢以及下半年和 2024 年的利潤前景？

(foreign language)

（外語）

[Interpreted] This is Alex. I will answer your question. So for the second quarter, we actually delivered better-than-expected profits, especially for BIGO segment, it achieved a non-GAAP operating margin of 16%, up by 2.4 percentage points from 13.6% in Q1. And BIGO's non-GAAP gross margin was improved from 37.4% to 39%, and that was mainly due to optimization of content cost, our server depreciation expenses and payment channel expenses.

[翻譯] 這是亞歷克斯。我會回答你的問題。所以第二季度，我們實際上實現了好於預期的利潤，特別是BIGO業務，其非公認會計原則營業利潤率為16%，比第一季度的13.6%上升了2.4個百分點。 BIGO的非GAAP毛利率從37.4%提高到39%，這主要歸功於內容成本、服務器折舊費用和支付渠道費用的優化。

And in addition, Likee continue to deliver profitability in Q2 and contributed to profit improvement in the BIGO segment. As I've just mentioned in my prepared remarks, starting from Q2, in line with our global positioning, we have strategically streamlined and implemented certain proactive adjustments to some of our noncore operations so that we can concentrate our resources towards our core global business and further enhance the healthiness of our global ecosystem. We expect these adjustments would have adverse impacts on our top line and bottom line in Q2 and the following quarters.

此外，Likee 在第二季度繼續實現盈利，並為 BIGO 業務的利潤改善做出了貢獻。正如我剛才在準備好的發言中提到的，從第二季度開始，我們根據我們的全球定位，對一些非核心業務進行了戰略性精簡和主動調整，以便我們能夠將資源集中到我們的全球核心業務上，進一步增強我們全球生態系統的健康。我們預計這些調整將對我們第二季度及隨後幾個季度的營收和利潤產生不利影響。

Looking ahead to the second half of the year, we expect BIGO's revenue to resume positive Q-o-Q growth. And as we enter the peak season of operational activities, we expect BIGO's sales and marketing expenses to increase Q-o-Q as well. Therefore, BIGO's non-GAAP operating margin in the second half will likely be lower as compared to the first half of the year. However, given that how much we have already achieved in the first half of the year regarding operational efficiency improvement, for the full year of '23, we still expect the non-GAAP operating profit margin of BIGO to remain roughly stable compared to last year.

展望下半年，我們預計BIGO收入將恢復環比正增長。隨著我們進入運營活動旺季，我們預計 BIGO 的銷售和營銷費用也會環比增加。因此，BIGO下半年的非公認會計原則營業利潤率可能會低於上半年。然而，考慮到我們上半年在運營效率改善方面已經取得的成績，對於 23 年全年，我們仍然預計 BIGO 的非 GAAP 運營利潤率與去年相比將保持大致穩定。

To sum up, we'll continue to value profit and cash flow self-sufficiency. And we will drive further improvement in our operational efficiency. And at a group level, we expect to remain profitable and continue to generate positive operating cash flow.

綜上所述，我們將繼續重視利潤和現金流的自給自足。我們將推動運營效率的進一步提高。在集團層面，我們預計將保持盈利並繼續產生正的運營現金流。

Your next question comes from Yiwen Zhang with China Renaissance.

你的下一個問題來自華興資本的張一文。

(foreign language) My question is on shareholder return. So can you update us on our latest progress on share buybacks? And how should we think about future buyback pace?

（外語）我的問題是關於股東回報的問題。您能否向我們介紹一下股票回購的最新進展？我們應該如何考慮未來的回購步伐？

(foreign language)

（外語）

[Interpreted] Thank you for your question. This is Alex. In Q2, as mentioned, last quarter, we substantially accelerated our share repurchases and buy back approximately $214 million of our shares during the quarter. So for the first half of this year in total, including our share buybacks and dividends, we have returned around $300 million to our shareholders. You may also infer our commitment to reward the long-term support of our shareholders from that number.

[解釋]謝謝你的提問。這是亞歷克斯。如前所述，在第二季度，我們大幅加快了股票回購速度，並在本季度回購了約 2.14 億美元的股票。因此，今年上半年，包括股票回購和股息在內，我們總共向股東返還了約 3 億美元。您還可以從這個數字中推斷出我們對回報股東長期支持的承諾。

As of the end of Q2, we still have around $570 million unutilized quota under our current share repurchase program. We will continue to actively utilize share buyback in the following quarters to reward support of our shareholders.

截至第二季度末，我們當前的股票回購計劃仍有約 5.7 億美元的未使用額度。我們將在接下來的幾個季度繼續積極利用股票回購來回饋股東的支持。

So that was the end of our call. Thank you so much for joining today. We look forward to speaking with everyone next quarter. Thank you.

我們的通話就這樣結束了。非常感謝您今天的加入。我們期待下個季度與大家交談。謝謝。