JOYY Inc (YY) 2023 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the JOYY Inc. Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session.

女士們、先生們，感謝大家的支持，歡迎參加 JOYY Inc. 2023 年第三季財報電話會議。此時，所有參與者都處於只聽模式。管理階層準備好發言後，將舉行問答環節。

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主持人，公司投資人關係資深經理謝珍。請繼續，簡。

Thank you, operator. Hello, everyone. Welcome to JOYY's third 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，接線生。大家好。歡迎參加歡聚團 2023 年第三季財報電話會議。今天加入我們的有歡聚董事長兼執行長李學凌先生；我們的營運長李婷女士；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表現和網路廣播可在 ir.joyy.com 上取得。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. 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。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執行長李學凌先生。請繼續，先生。

Hello, everyone. Welcome to our third quarter 2023 earnings call. First, we will provide a quick snapshot of our performance for the quarter. During the third quarter, we once again delivered a strong performance. Our Group revenue come in at $567.1 million at a 3.6% sequential increase. Approaching the high end of our guidance, [we see] a non-GAAP net profit of $81.2 million, a 5.5% year-over-year increase with a non-GAAP net margin of 14.3%.

大家好。歡迎參加我們的 2023 年第三季財報電話會議。首先，我們將提供本季業績的快速概覽。第三季度，我們再次取得了強勁的業績。我們集團的營收為 5.671 億美元，季增 3.6%。接近我們指引的上限，[我們看到]非 GAAP 淨利潤為 8,120 萬美元，較去年同期成長 5.5%，非 GAAP 淨利潤率為 14.3%。

Our core business segment, BIGO maintained its recovery momentum and recorded revenues of $494.1 million, a sequential increase for 4.9% and a year-over-year increase of 2.2%. The first year-over-year top line growth for BIGO in 6 quarters. BIGO's revenue (inaudible) was accompanied by improvements in user activity and monetization efficiency. At the Group level, our global average mobile MAUs grew by 2.6% year-over-year to $276.8 million. Notably, BIGO Live's MAUs maintained it's strong growth trajectory, increasing by 14% year-over-year to $40.3 million.

我們的核心業務部門 BIGO 維持復甦勢頭，營收達 4.941 億美元，季增 4.9%，年增 2.2%。 BIGO 6 季以來首次實現營收年增。 BIGO 的收入（聽不清楚）伴隨著使用者活動和貨幣化效率的提升。在集團層面，我們的全球平均移動月活躍用戶數較去年同期成長 2.6%，達到 2.768 億美元。值得注意的是，BIGO Live 的月活躍用戶數維持了強勁的成長軌跡，年增 14% 至 4,030 萬美元。

Bigo's number of paying users experienced a steady increase for 6.6% year-over-year. With ARPU also improving sequentially during the quarter, with monetization recovering, and as we continue to enhance our operational efficiency. BIGO's non-GAAP operation profit grew by 11.7% year-over-year, reaching $81.9 million, representing [expanded] non-GAAP operating profit margin of 16.6%.

Bigo的付費用戶數量較去年同期穩定成長6.6%。隨著貨幣化的恢復以及我們持續提高營運效率，本季的 ARPU 也持續改善。 BIGO 的非 GAAP 營運利潤年增 11.7%，達到 8,190 萬美元，[擴展]非 GAAP 營運利潤率為 16.6%。

As one of the leaders in the global social entertainment sector, we have always been committed to building [affordable] device and inclusive global user community. We aim to provide users with unique value and exceptional experience through our broad range of social entertainment products. We firmly believe that creating a positive user value and experience are the foundations of effective user management and monetization.

作為全球社交娛樂領域的領導者之一，我們始終致力於打造【實惠的】設備和包容性的全球用戶社群。我們的目標是透過我們廣泛的社交娛樂產品為用戶提供獨特的價值和卓越的體驗。我們堅信，創造正面的使用者價值和體驗是有效使用者管理和變現的基礎。

To maximize the product value for our users, we have always (technical difficulty) our highly localized operations and innovative product optimization, are our most effective instrument for enhancing user content and improving user social interaction experience. To give you a better understanding of our progress on those 2 fronts, I'd like to share some examples from the third quarter.

為了帶給用戶最大的產品價值，我們一直以來（技術難度）高度在地化的營運和創新的產品優化，是我們增強用戶內容、改善用戶社交體驗的最有效手段。為了讓您更了解我們在這兩個方面的進展，我想分享第三季的一些例子。

On the content front, BIGO Live expanded its collaborations with top KOLs and introduce more diverse and viral content. We also launched several major updates for our content segregation strategies and recommendation algorithm. These upgrades improved our ability to efficiently channel users to content they enjoy, particularly our new user cohorts.

在內容方面，BIGO Live擴大了與頂級KOL的合作，推出了更多元、病毒式的內容。我們也針對內容隔離策略和推薦演算法推出了多項重大更新。這些升級提高了我們有效引導用戶（尤其是新用戶群）獲取他們喜歡的內容的能力。

On the social interaction front, we prioritize the optimization of interactive tools within BIGO Live's Family Feature and allocated additional operational resources to support families. We also further integrated new social features, such as Real Match, which cater to different user cases and help users expand their social networks. These targeted initiatives have been actively driving positive progress in user engagement and monetization.

在社交互動方面，我們優先優化BIGO Live家庭功能中的互動工具，並分配額外的營運資源來支援家庭。我們也進一步整合了新的社交功能，例如Real Match，以滿足不同的使用者場景，幫助使用者擴展社交網路。這些有針對性的措施一直在積極推動用戶參與度和貨幣化方面的積極進展。

The introduction of more diverse and viral content alongside the collaboration with KOLs and successfully enhance our brand exposure, is pending product outreach and fostered online -- organic user growth. This acceleration of organic traffic has been the primary reason for our robust user growth in recent quarters, even as we adhere to disciplined market expense. At the same time, our amplification of families' social functions has yielded positive results in terms of user acquisition, payment conversation and recruitment of long-tailed streamers.

引入更多樣化和病毒式傳播的內容以及與 KOL 的合作並成功提高我們的品牌曝光度，有待產品推廣並促進線上用戶的自然成長。儘管我們堅持嚴格的市場支出，但自然流量的加速是我們近幾季用戶強勁成長的主要原因。同時，我們對家庭社交功能的放大，在用戶獲取、付費對話、長尾主播招募等方面都取得了積極成效。

Our improved user engagement and user experience, coupled with exciting seasonal promotions, such as the regional mid-year galas have fulfilled recovery in user paying activity and overall monetization.

我們提高了用戶參與度和用戶體驗，再加上令人興奮的季節性促銷活動（例如區域年中晚會），實現了用戶付費活動和整體變現的恢復。

Looking ahead to the fourth quarter, we anticipate the people's global business will maintain its recovery trajectory on a year-over-year basis. However, given the ongoing uncertainty in the global macro landscape, we believe the pace of recovery across different markets will vary and short-term fluctuations in users' paying segment, [certain] sentiments may persist. We will remain cautiously optimistic.

展望第四季度，我們預期人民的全球業務將保持年比復甦軌跡。然而，鑑於全球宏觀情勢持續存在不確定性，我們認為不同市場的復甦步伐將有所不同，且用戶付費領域的短期波動，[某些]情緒可能會持續存在。我們將保持謹慎樂觀。

The focus on our operational strategy and priority high-quality growth. We will also continue to explore innovations across our products and operations and drive the steady recovery of our global business, with a sustained focus on improving operation cash flow.

聚焦經營策略，優先高品質發展。我們也將持續探索產品和營運創新，推動全球業務穩步復甦，持續專注於改善營運現金流。

Now let's take a closer look at our products. We will start with BIGO Live. BIGO Live maintained its double-digit user growth momentum in the third quarter, with MAUs increasing by 14% year-over-year to 40.3 million. We saw growth across several key regions, with the year-over-year increase by 12.9% in Europe and 15.3% in the Middle East; and 14.4% 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。 BIGO Live第三季維持兩位數的用戶成長勢頭，每月活躍用戶數較去年同期成長14%至4030萬。我們看到幾個關鍵地區的成長，其中歐洲年增 12.9%，中東成長 15.3%；東南亞等新興市場佔14.4%。

In the third quarter, BIGO Live recorded mid-single-digit revenue growth in a sequential basis. The developed country region, especially Europe and Eastern Pacific countries outpace the other markets and generated a high single-digit sequential growth in revenue. As mentioned earlier, BIGO Live introduced a diverse range of high-quality and virtual content during the third quarter. In the Middle East BIGO Live premiered The acting Coach exclusive show, in which legendary Jordanian actor shared his personal insight into the art of acting.

第三季度，BIGO Live 營收環比實現中個位數成長。已開發國家地區，特別是歐洲和東太平洋國家超過其他市場，實現了高個位數的收入環比增長。如前所述，BIGO Live 在第三季推出了各種高品質的虛擬內容。在中東，BIGO Live首播了表演教練獨家節目，約旦傳奇演員分享了他對錶演藝術的個人見解。

In Indonesia, BIGO Live debuted Friends for Live a collaborative min-series, features in 3 BIGO Live streamers and some local up and coming actors. The show was broadcast on a popular Indonesia video platform called Vidio, introducing BIGO Live streamers to new audience. BIGO Live also expanded its collaboration with top KOLs in the third quarter. We launched a summer wide campaign in the MENA region, and teamed up with several local KOLs, who have tons of millions of followers, to share the freshest summer fashion chains, and travel experience, significantly boosting user engagement and inspiring creativity.

在印度尼西亞，BIGO Live 推出了合作迷你劇《Friends for Live》，由 3 位 BIGO Live 主播和一些當地新晉演員出演。該節目在印尼流行的視訊平台 Vidio 上播出，向新觀眾介紹了 BIGO Live 主播。 BIGO Live第三季也擴大了與頂級KOL的合作。我們在中東和北非地區發起了夏季全局活動，並與當地數位擁有數百萬粉絲的KOL合作，分享最新鮮的夏季時尚連鎖和旅行體驗，顯著提高了用戶參與度並激發了創造力。

Building upon the success of last quarter's Family Month campaign, we continue to encourage users to explore and participate in family activities on BIGO Live. The third quarter saw a steady increase in the size of families, with a 5.1% sequential increase in DAUs and 17.4% sequential increase in the number of contracted streamers in Families.

在上季度家庭月活動成功的基礎上，我們繼續鼓勵使用者探索和參與 BIGO Live 上的家庭活動。第三季家庭規模穩定成長，DAU 環比成長 5.1%，家庭簽約主播數量較上季成長 17.4%。

With regards to interaction and optimization of our product features, we retain our focus on content enrichment and improve social interactions. We further refined our content recommendation algorithms and continue to incentivize the BAR creators. We started to develop a premier content pool on our BAR channel, covering popular genres such as K-pop, pet and work out in the third quarter. The number of users sharing videos on BAR, surged by 42.8% from the prior quarter. While the average effective views per person for video content rose by 29.3% in the same period.

在產品功能的互動和優化上，我們仍然注重內容的豐富和社交互動的改善。我們進一步完善了內容推薦演算法，並持續激勵 BAR 創作者。我們從第三季開始在 BAR 頻道上開發優質內容池，涵蓋韓國流行音樂、寵物和健身等流行類型。 BAR 上分享影片的用戶數量較上季成長 42.8%。而影片內容的人均有效觀看次數同期成長了29.3%。

At the same time, we fine-tuned features to enhance the appeal and interactivity inside livestreaming rooms. This drove an 8.5% sequential increase in the total number of livestreamers, along with a 3.7% sequential increase in the number of livestreamers in multi-guest rooms. In line with our commitment to fostering social interaction and forging relationships, we enhanced BIGO Live's Real Match feature to make it easier to connect with people nearby, by simply swiping through profiles. The upgrade fueled a [16.3%] sequential increase in the number of people mutually following each other through Real Match, and a 21% sequential increase in direct chat messages.

同時，我們對功能進行了微調，增強了直播間的吸引力和互動性。這帶動直播主播總數較上季成長8.5%，多客房直播主播數量較上季成長3.7%。為了履行我們促進社交互動和建立關係的承諾，我們增強了 BIGO Live 的真實匹配功能，讓您只需滑動個人資料即可輕鬆與附近的人聯繫。此次升級使透過 Real Match 互相關注的人數較上季增加了 [16.3%]，直接聊天訊息較上季增加了 21%。

Next, let me show some updates for our other products. As we have previously mentioned, compared to BIGO Live, our other products have a much larger aggregated user base. But they are generally in the early phase of monetization as their contributions to revenue and profit are relatively small. As such, our main objective of those products is to systematically enhance our monetization efficiency and feasibility well, strengthening their ability to organically acquire new users. Since this product started to generate consistent profit, we will have a solid foundation, from which we can [reinnovated] the user growth.

接下來，讓我展示我們其他產品的一些更新。正如我們之前提到的，與 BIGO Live 相比，我們的其他產品擁有更大的聚合用戶群。但它們普遍處於貨幣化的早期階段，對收入和利潤的貢獻相對較小。因此，我們這些產品的主要目標是系統性地提高我們的貨幣化效率和可行性，增強它們有機獲取新用戶的能力。既然這個產品開始產生持續的利潤，我們就有了堅實的基礎，我們可以透過這個基礎來[再創新]用戶成長。

Let's begin with Likee in the third quarter. Likee's revenue grew by mid-single digits sequentially, and it continued to be profitable at the product level. On the user front, despite a sequential decline, the Likee's MAUs in this quarter, it's still used in core regions, particularly in developed countries regions, maintaining a high single digital sequential growth.

讓我們從第三季的Likee開始。 Likee的營收季增中個位數，並且在產品層面持續獲利。用戶方面，儘管Likee本季月活躍用戶數季減，但在核心區域尤其是已開發國家區域仍保持較高的單數環比成長。

In September, Likee orchestrated a series of offline community events, in celebration of Saudi National Day. These included streamer parties and movie days, accompanied by online discussions designed to deepen connections among users, creators, and the platform.

9月，Likee精心策劃了一系列線下社區活動，慶祝沙烏地阿拉伯國慶日。其中包括主播派對和電影日，以及旨在加深用戶、創作者和平台之間聯繫的線上討論。

During the quarter, Likee also partnered with a number of popular creators to exhibit at the Asian Culture Festival, an event that captivated fans of anime, K-pop, and more, highlighting the ACG, that is an integral component of Likee's content ecosystem and community.

本季度，Likee 也與多位熱門創作者合作，在亞洲文化節上展出，該活動吸引了動漫、韓流等粉絲，凸顯了二次元作為 Likee 內容生態系統不可或缺的組成部分，社群。

At the product level, Likee remained dedicated to fostering community interaction, driving a 14.7% overall sequential increase in average user time spent. Overall user engagement, as measured by the ratio of DAUs to MAUs, increased by 1% sequentially, while the IM penetration rate rose by 1.5% over the same period.

在產品層面，Likee 仍致力於促進社群互動，推動平均用戶花費時間整體環比成長 14.7%。整體用戶參與度（以 DAU 與 MAU 之比衡量）環比增長了 1%，而 IM 滲透率同期增長了 1.5%。

Next, let's take a look at Hago. During the third quarter, Hago achieved sequential mid-single digit percentage increase in revenue, and its operating cash flow remained positive during the quarter. Efficient content remained a priority, along with a refined push notification strategy designed to boost participation in multi-guest interactive rooms across regions. Hago also iterated, and enhanced its IM and interactive features, helping to drive increased social activity among users.

接下來我們就來看看哈哥吧。第三季度，Hago 的營收實現了中個位數百分比連續成長，並且該季度的營運現金流保持正值。高效的內容仍然是優先事項，同時還有旨在提高跨地區多賓客互動室參與度的完善的推播通知策略。 Hago也迭代並增強了其IM和互動功能，有助於推動用戶社交活動的增加。

Notably, the average user time spent in social channels reached nearly 95.8 minutes per day, and the average time spent in multi-guest audio livestreaming rooms grew by 1.2% sequentially. Besides Hago 3D Space, Hago is actively exploring alternative social interactive applications and combining livestreaming and interactive gaming experience, powered by AI.

值得注意的是，用戶每天在社群管道的平均花費時間達到近95.8分鐘，在多人音訊直播間的平均花費時間較上季成長1.2%。除了 Hago 3D Space 之外，Hago 還積極探索另類社交互動應用，將直播和互動遊戲體驗結合起來，並由人工智慧提供支援。

Finally, some updates on cash flow and capital return. We continue to drive -- to generate robust positive operating cash flow, reached $72.9 million in the third quarter. Meanwhile, we maintained an active pace of share repurchases, and bought back additional 43.5 million of our shares. Our Board has authorized an extension of the buyback program, which assumed at [$530 million], as of the end of the third quarter, until November 2024.

最後，關於現金流和資本回報的一些更新。我們持續努力產生強勁的正營運現金流，第三季達到 7,290 萬美元。同時，我們保持積極的股票回購步伐，回購了4,350萬股股票。我們的董事會已授權將回購計畫延長至 2024 年 11 月，假設截至第三季末回購計畫為 [5.3 億美元]。

To summarize effectively, conclusion of our operational strategy and driving the ongoing recovery of BIGO's revenue profit and user activity. Looking ahead into the remainder of 2023 and beyond, we remain committed to our long-term targeted strategies to pursue high-quality growth. We will continue to explore with innovations across all our products and operations and drive the steady recovery of our global business, with continued focus on improving operation cash flows. We will further concentrate our resources on building our core experiences, and the global business that align with our long-term strategy, and effectively pursue growth opportunities. And at the same time, we will continue to enhance shareholder returns through share buybacks.

有效總結，總結我們的營運策略並推動BIGO收入利潤和用戶活躍度的持續恢復。展望2023年剩餘時間及以後，我們仍致力於實施長期目標策略，追求高品質成長。我們將繼續探索所有產品和營運的創新，推動全球業務的穩定復甦，持續專注於改善營運現金流。我們將進一步集中資源打造我們的核心經驗以及符合我們長期策略的全球業務，並有效地尋求成長機會。同時，我們將繼續透過股票回購來提高股東回報。

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。我現在將致電我們的財務副總裁 Alex Liu，以了解我們的財務最新情況。

Thanks, David. Hello, everyone. Despite the ongoing macro uncertainties, we achieved solid progress in the third quarter.

謝謝，大衛。大家好。儘管宏觀不確定性持續存在，但我們在第三季度取得了紮實的進展。

Our global business segment, BIGO, booked positive year-over-year growth in both revenue and non-GAAP operating income during the quarter. We continued to grow our global MAUs, even as they adhere to our disciplined marketing spend. The monetization efficiency resource were also up during the quarter, with the number of BIGO's quarterly paying users, up by 5.1% and ARPPU up by 2.2% quarter-over-quarter. It's a result of our continuing dedicated strategy to optimize product value and the user experience, and the strong execution of our global operational team.

我們的全球業務部門 BIGO 在本季的營收和非 GAAP 營業收入均實現年比正成長。我們的全球月活躍用戶數持續成長，儘管他們遵守我們嚴格的行銷支出。本季資源變現效率也有所上升，BIGO 季度付費用戶數量較上季成長 5.1%，ARPPU 環比成長 2.2%。這是我們持續致力於優化產品價值和用戶體驗的專門策略以及我們全球營運團隊強大執行力的結果。

Now let's look at the numbers in detail; our total net revenues were $567.1 million in the third quarter. Revenues from BIGO segment were $494.1 million, up by 2.2% year-over-year. The first year-over-year top line growth in 6 quarters, mainly driven by strong growth in the developed countries.

現在讓我們詳細看看這些數字；第三季我們的總淨收入為 5.671 億美元。 BIGO部門的營收為4.941億美元，年增2.2%。六個季度以來首次實現營收年增，主要是由已開發國家的強勁成長所推動的。

Cost of revenues for the quarter decreased to $357.9 million, among which our revenue sharing fees and content costs decreased to $232.3 million. BIGO's cost of revenues were $299.2 million, which was up year-over-year, consistent with rebound in live streaming revenue.

本季營收成本下降至 3.579 億美元，其中我們的營收分成費和內容成本下降至 2.323 億美元。 BIGO 的收入成本為 2.992 億美元，年成長，與直播收入的反彈一致。

Gross profit was $209.2 million in the quarter, with a gross margin of 36.9%. BIGO's gross profit was $194.8 million, with a gross margin of 39.4%. Our Group's operating expenses for the quarter were $191.3 million compared with $202.2 million in the same period of 2022. Along with the operating expenses, sales and marketing expenses decreased to $92.5 million from $96.8 million in the same period of 2022, primarily due to the optimization of overall sales and marketing strategies across various product lines, to be more focused on ROI and effectiveness of user acquisition.

該季度毛利為2.092億美元，毛利率為36.9%。 BIGO的毛利為1.948億美元，毛利率為39.4%。我們集團本季的營運費用為 1.913 億美元，而 2022 年同期為 2.022 億美元。除營運費用外，銷售和行銷費用也從 2022 年同期的 9,680 萬美元減少至 9,250 萬美元，這主要是由於優化跨不同產品線的整體銷售和行銷策略，更重視投資報酬率和用戶獲取的有效性。

R&D expenses increased to $71.6 million from $61.2 million in the same period of 2022, primarily due to increased R&D personnel-related expenses, as we prioritized resources into building our technological capabilities.

研發費用從 2022 年同期的 6,120 萬美元增加到 7,160 萬美元，主要是由於我們將資源優先用於建立技術能力，因此與研發人員相關的費用增加。

BIGO's operating expenses for the quarter were $126.7 million, down by 5.3% year-over-year. Our gross GAAP operating income for the quarter was $12 million. Our non-GAAP operating income for the quarter, which excludes expenses, amortization of intangible assets from business acquisitions, loss on the consolidation and disposal of subsidiaries, as well as impairment of goodwill and investments, was $40.4 million in this quarter, with a non-GAAP operating income margin of [7.1%].

BIGO 本季營運費用為 1.267 億美元，年減 5.3%。我們本季的 GAAP 營業總收入為 1,200 萬美元。我們本季的非 GAAP 營業收入（不包括費用、業務收購產生的無形資產攤銷、子公司合併和處置損失以及商譽和投資減值）為 4,040 萬美元，非-公認會計準則營業利潤率為[7.1%]。

BIGO's GAAP operating income for the quarter was $68.5 million, and BIGO's non-GAAP operating income was $81.9 million, representing a non-GAAP operating income margin of 16.6%, up from 15.2% in the same period last year.

BIGO 本季的 GAAP 營業收入為 6,850 萬美元，BIGO 的非 GAAP 營業收入為 8,190 萬美元，非 GAAP 營業利潤率為 16.6%，高於去年同期的 15.2%。

Our Group's GAAP net income attributable to controlling interest of JOYY in the quarter was $72.9 million compared to net income of $515.3 million in the same period of 2022. GAAP net income margin was 12.9% in the third quarter of 2023, compared to net income margin of 87.8% in the corresponding period of 2022. Our Group's GAAP net income was larger in the third quarter last year, primarily due to a one-off remeasurement gain of active investment.

本季歸屬於歡樂集團控股權益的集團 GAAP 淨利為 7,290 萬美元，而 2022 年同期淨利潤為 5.153 億美元。2023 年第三季 GAAP 淨利率為 12.9%，相較於 2022 年同期成長87.8%。去年第三季度，本集團GAAP 淨利潤較大，主要是由於主動投資的一次性重新計量收益。

BIGO's GAAP net income in the quarter was $70.2 million, with a GAAP net margin of 14.2%. Non-GAAP net income attributable to controlling interest of JOYY in the quarter was $81.2 million compared to $76.9 million in the same period of 2022. The Group's non-GAAP net income margin was 14.3% in the quarter compared to 13.1% in the same period of 2022. BIGO's non-GAAP net income was $81.9 million with a non-GAAP net margin of 16.6%.

BIGO 本季 GAAP 淨利為 7,020 萬美元，GAAP 淨利率為 14.2%。本季歸屬於歡樂集團控股權益的非公認會計準則淨利潤為 8,120 萬美元，而 2022 年同期為 7,690 萬美元。該集團本季非公認會計準則淨利潤率為 14.3%，而去年同期為 13.1% 2022 年。BIGO 的非GAAP 淨利為8,190 萬美元，非GAAP 淨利率為16.6%。

For the third quarter of 2023, we booked net cash inflows from operating activities of $72.9 million. We [remain] a healthy balance sheet with a strong cash [provision] of $3.8 billion as of September 30 of 2023.

2023 年第三季度，我們的營運活動現金流入淨額為 7,290 萬美元。截至 2023 年 9 月 30 日，我們[維持]健康的資產負債表，擁有 38 億美元的強勁現金[儲備]。

In the third quarter, we continued to enhance returns to shareholders and repurchased an additional of approximately 43.5 million of our shares. In the first 3 quarters of 2023, we have retained an aggregate amount of $355.4 million to our shareholders through dividends and share buybacks, which altogether represent 155.6% of our aggregated non-GAAP net income during the corresponding period. We will continue to actively utilize our share repurchase program in the coming quarters.

第三季度，我們持續提高股東回報，額外回購了約4,350萬股股票。 2023 年前 3 季度，我們透過股利和股票回購為股東保留了總計 3.554 億美元的金額，合計占同期非 GAAP 淨利潤總額的 155.6%。我們將在未來幾季繼續積極利用我們的股票回購計劃。

Turning now to our business outlook; we anticipate continued recovery in our global operations. However, due to the ongoing uncertainty in the global macro landscape, we recognize that the pace of recovery may vary across different markets, and there may be short-term fluctuations in users paying sentiment.

現在談談我們的業務前景；我們預計我們的全球業務將持續復甦。然而，由於全球宏觀格局持續存在不確定性，我們意識到不同市場的復甦步伐可能有所不同，用戶付費情緒可能會出現短期波動。

Separately, as previously communicated, we had made proactive adjustments to certain non-core operations, in line with our commitment to high-quality growth and global [revenue].

另外，如同先前所傳達的，我們對某些非核心業務進行了主動調整，以符合我們對高品質成長和全球[收入]的承諾。

Taking all factors into consideration, we expect our net revenues for the fourth quarter of 2023 to be between [$551 million and $579 million]. This forecast reflects our preliminary views on the market and operational conditions and business adjustments, which are subject to changes.

考慮到所有因素，我們預計 2023 年第四季的淨收入將在 [5.51 億美元至 5.79 億美元]之間。該預測反映了我們對市場和營運狀況以及業務調整的初步看法，這些看法可能會改變。

In conclusion, our dedicated efforts to enhance product value and optimize user experience, are yielding positive results, as shown in our accelerating user growth and top line recovery. Simultaneously, our financial discipline has allowed us to further expand profitability and fortify our financial standing.

總而言之，我們在提升產品價值和優化用戶體驗方面的不懈努力正在取得積極成果，從我們加速的用戶成長和營收恢復就可以看出。同時，我們的財務紀律使我們能夠進一步擴大盈利能力並鞏固我們的財務狀況。

Moving forward, we will maintain a focused operational strategy and direct our resources towards high potential business, that align with our long-term objectives. We will also strive for a steady recovery in our global operation, while prioritizing improvement in operating cash flows, with a strong foundation and other proven execution capabilities. We are confident that we are well positioned to seize growth opportunities and deliver sustainable value to our shareholders.

展望未來，我們將保持專注的營運策略，並將我們的資源用於高潛力業務，這與我們的長期目標一致。我們也將憑藉著堅實的基礎和其他經過驗證的執行能力，努力實現全球業務的穩定復甦，同時優先改善經營現金流。我們相信，我們有能力抓住成長機會，為股東創造永續價值。

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

我們準備好的演講到此結束。接線員，我們現在要開始提問。

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

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

[Interpreted]

[解讀]

My first question is about the margin trend for BIGO in 2024, as well as the outlook for the Group's blended margin? And my second question is about shareholders' capital return. Can management share your thoughts on this front? Thank you.

我的第一個問題是關於BIGO 2024年的利潤率趨勢，以及集團混合利潤率的前景？我的第二個問題是關於股東的資本回報。管理階層可以分享一下您在這方面的想法嗎？謝謝。

[Interpreted]

[解讀]

Thank you, Thomas. This is Alex. I will take your first question. So if you look at our Q3 results, we actually delivered better than our previous expectation. BIGO segment non-GAAP gross margin was improved from 39% to 39.5% this quarter, with a non-GAAP OP margin improved from 16% to 16.6%. Although we did spend more on content incentives and sales and marketing for our midyear gala, our better-than-expected profit was mainly due to accelerating top line recovery.

謝謝你，托馬斯。這是亞歷克斯。我將回答你的第一個問題。因此，如果你看看我們第三季的業績，我們實際上比我們之前的預期要好。本季 BIGO 部門非 GAAP 毛利率從 39% 提高至 39.5%，非 GAAP 營運利潤率從 16% 提高至 16.6%。儘管我們確實在年中晚會的內容激勵以及銷售和行銷方面投入了更多資金，但我們的利潤好於預期主要是由於營收加速復甦。

Looking ahead to Q4, as we enter the year-end peak of operational activities, we expect BIGO's content cost and sales and marketing expenses to be sequentially up. Therefore, BIGO will have a slightly lower gross margin and non-GAAP operating margin in Q4 as a result. However, if you look at our progress so far in the first 3 quarters of '23, we have already -- for BIGO segment, we have already achieved a non-GAAP OP of 15.4%. So for the full year of '23, we're still expecting the non-GAAP OP of BIGO segment should be higher than the level of 22%, which was 14.4%.

展望第四季度，隨著我們進入年末營運活動高峰，我們預計BIGO的內容成本以及銷售和行銷費用將環比上升。因此，BIGO 第四季的毛利率和非 GAAP 營業利潤率將略有下降。然而，如果你看看我們在 23 年前 3 個季度迄今為止的進展，我們已經——對於 BIGO 業務，我們已經實現了 15.4% 的非 GAAP OP。因此，對於 23 年全年，我們仍然預期 BIGO 部門的非 GAAP OP 應高於 22% 的水平，即 14.4%。

And as for the outlook for '24, we believe it's still early to give a detailed guidance, as our profit potential also depends on the pace of top line recovery. In general, we aim to strike a balance between scale and efficiency, and on a constant currency basis, we expect BIGO segment to pursue steadily top line recovery, while maintain a relatively stable OP margin, non-GAAP OP margin.

至於 24 年的前景，我們認為現在給予詳細指引還為時過早，因為我們的利潤潛力也取決於營收復甦的速度。整體而言，我們的目標是在規模和效率之間取得平衡，在固定匯率的基礎上，我們預期BIGO 業務將追求穩定的營收復甦，同時維持相對穩定的營業利潤率、非GAAP 營業利潤率。

As for the all other segment, excluding the impact from our proactive adjustments to certain products, it has been on a continuing trend of narrowing operating losses, which we expect to continue in 2024. So to sum up, we continue to value profit and positive cash flow, and drive further improvement in our operating efficiency. And at Group level, we still expect to remain profitable and continue to generate positive operating cash flows.

至於所有其他細分市場，排除我們對某些產品主動調整的影響，經營虧損一直處於持續縮小的趨勢，我們預計這種趨勢將在2024年持續下去。綜上所述，我們繼續看重利潤並積極現金流，帶動經營效率進一步提升。在集團層面，我們仍然預計將保持獲利並繼續產生正的營運現金流。

As for your second question on capital return, if you look at Q3, we have repurchased approximately 43.5 million of our shares during the quarter. And in the first 3 quarters of 2023, our aggregated capital return has reached USD 355 million, through dividends and share buyback, which is representing 156% of our aggregated non-GAAP net income during the corresponding period. So as of the end of Q3, we still have $530 million unutilized quota under our previous share buyback plan. And our board has just authorized an extension of the program for another year. So shareholder returns will remain one of our top focuses, and we will continue to steadily execute our share buyback.

至於你關於資本回報的第二個問題，如果你看看第三季度，我們本季回購了約4,350萬股股票。 2023 年前 3 季度，透過股利和股票回購，我們的資本報酬總額已達 3.55 億美元，占同期非 GAAP 淨利總額的 156%。因此，截至第三季末，我們先前的股票回購計畫仍有 5.3 億美元未使用配額。我們的董事會剛剛授權將該計劃再延長一年。因此，股東回報仍將是我們最關注的焦點之一，我們將繼續穩步執行股票回購。

Next question comes from Brian Gong from Citi.

下一個問題來自花旗銀行的 Brian Kong。

[Interpreted]

[解讀]

I will translate myself. Regarding BIGO Live's recovery, can you elaborate a little bit more on the expected growth momentum across different regions in 2024? What factors are driving this recovery?

我自己翻譯一下。關於BIGO Live的復甦，您能否詳細說明2024年不同地區的預期成長動能？哪些因素推動了這項復甦？

[Interpreted]

[解讀]

Thank you, Brian. This is David. On your question about BIGO Live's recovery, if you look at our Q3 results, you can see that our revenue recovery in the quarter was better than expected. Looking at a product standalone basis, BIGO Live actually delivered a higher Q-on-Q growth than the BIGO segment, and that was mainly driven by a high single-digit Q-o-Q growth from the developed countries region. Actually, the developed countries have been on a sequential recovery momentum for quite a few quarters already. And we've also booked a positive growth, a decent Q-o-Q recovery for the Southeast Asia region as well during the quarter.

謝謝你，布萊恩。這是大衛。關於你關於BIGO Live復甦的問題，如果你看我們第三季的業績，你可以看到我們這個季度的營收復甦比預期要好。從產品獨立的角度來看，BIGO Live 實際上比 BIGO 細分市場實現了更高的環比增長，這主要是由已開發國家地區的高個位數環比增長推動的。事實上，已開發國家已經連續幾季呈現復甦勢頭。我們也預計東南亞地區在本季實現了正成長和良好的環比復甦。

And if we look at the driving factors, we believe it's mainly attributed to strong MAU growth and also ARPU recovery. I think it's the result of our continued implementation of highly targeted operational strategies, which actually prioritizes our user acquisition spending, product optimization and other operational resources towards premium end users and also the developed countries.

如果我們看看驅動因素，我們認為這主要歸因於 MAU 的強勁成長以及 ARPU 的恢復。我認為這是我們持續實施針對性很強的營運策略的結果，該策略實際上將我們的用戶獲取支出、產品優化和其他營運資源優先考慮到優質最終用戶和已開發國家。

However, as I've just mentioned, given the global macro uncertainties, we believe the pace of recovery across different regions do vary, and that users paying sentiment are still in a fluctuating status. Therefore our -- in our current Q4 guidance, we actually expect BIGO Live to achieve a modest growth year-over-year. I think it's still early to give guidance on '24, but generally speaking, we expect BIGO Live to resume top line year-over-year recovery gradually, driven by MAU growth, together with stabilizing monetization efficiency.

但正如我剛才提到的，考慮到全球宏觀的不確定性，我們認為不同地區的復甦速度存在差異，用戶的付費情緒仍處於波動狀態。因此，在我們目前的第四季度指導中，我們實際上預計 BIGO Live 將實現同比適度增長。我認為現在對 24 年給出指導還為時過早，但總的來說，我們預計 BIGO Live 在月活躍用戶增長以及穩定的貨幣化效率的推動下，將逐步恢復營收同比復甦。

Your next question comes from Yiwen Zhang from China Renaissance.

你的下一個問題來自華興資本的張一文。

[Interpreted]

[解讀]

So a couple of questions. First, on user side. How should we think about overall user trend into 2024? And then secondly, we see the ongoing impact of the global macro environment. How should we think about this impact to our business, such as in Europe? And what has the company done to mitigate such adverse [effects]?

有幾個問題。首先，在用戶端。我們該如何看待 2024 年的整體用戶趨勢？其次，我們看到全球宏觀環境的持續影響。我們應該如何看待這種對我們業務（例如歐洲業務）的影響？公司採取了哪些措施來減輕這種不利[影響]？

[Interpreted]

[解讀]

Thank you, Yiwen. This is David. So on user growth, if we look at our progress in the past 2 quarters, we managed to achieve a rebound in our Group's MAU year-over-year, while we maintain a relatively disciplined marketing spend. Our Group's MAU rebound achieved positive year-over-year growth for 2 consecutive quarters, and BIGO Live's continued double-digit user growth for the 6 consecutive quarters. I believe that overall speaking, our user acquisition efficiency has steadily improved, as shown by an increasing trend in our organic traffic, influencer led traffic and also a higher percentage of premium users.

謝謝你，伊文。這是大衛。因此，在用戶成長方面，如果我們看看過去兩個季度的進展，我們集團的每月活躍用戶數同比實現了反彈，同時我們保持了相對嚴格的行銷支出。集團月活躍用戶數反彈連續2季實現年比正成長，BIGO Live連續6季持續兩位數用戶成長。我認為，總體而言，我們的用戶獲取效率穩步提高，這體現在我們的自然流量、網紅主導流量的成長趨勢以及優質用戶比例的提高。

So I think I believe that the current user growth strategy of BIGO Live has been effective. And moving forward, we believe that there are a few actionable points for continuing our user growth. First of all, we will continue to remain targeted in terms of our user acquisition strategy and prioritizing quality of user growth, with a focus on ROI.

所以我認為BIGO Live目前的使用者成長策略是有效的。展望未來，我們相信有一些可行的點可以繼續我們的用戶成長。首先，我們將持續保持用戶獲取策略的針對性，優先考慮用戶成長的質量，並專注於投資報酬率。

And second, we continue to leverage our localized operations, with primary focuses on content and social experiences as the key drivers of our user acquisition. In the recent quarters, you can see that BIGO Live has successfully expanded product outreach by -- with our original content. For example, our variety shows mini-series, as well as some third-party high-quality content. And our new feature, Real Match, actually, we see very positive user feedback in Southeast Asia and drove an increase of downloads in those markets. And by collaborating with KOLs, we have maintained a positive momentum in influencer led traffic, especially in Southeast Asia and Latin America and other emerging countries.

其次，我們繼續利用在地化運營，主要關注內容和社交體驗，作為我們獲取用戶的關鍵驅動力。在最近幾季中，您可以看到 BIGO Live 透過我們的原創內容成功擴大了產品範圍。例如我們的綜藝迷你劇，還有一些第三方的優質內容。事實上，我們的新功能「真實匹配」在東南亞得到了非常積極的用戶回饋，並推動了這些市場的下載量成長。透過與KOL的合作，我們在影響者主導的流量方面保持了積極的勢頭，特別是在東南亞和拉丁美洲等新興國家。

And thirdly, we will continue to work on product features and user experiences, for targeting user Groups to further improve our user retention. In the recent quarters, we have actually introduced refined content segregation policies and differentiated recommendation algorithm for -- tailored to different target user groups. And after several rounds of iterations, focusing on premium users, new users and female user cohorts, we've actually found that the retention rate and also their user time spend has been consequently improved within those target groups.

第三，我們會繼續在產品功能和使用者體驗上下功夫，針對使用者群體，進一步提高使用者留存率。最近幾個季度，我們實際上針對不同的目標用戶群體推出了精細化的內容隔離政策和差異化的推薦演算法。經過幾輪迭代，專注於優質用戶、新用戶和女性用戶群體，我們發現這些目標群體的留存率和用戶長度都得到了相應的提高。

And as we previously mentioned, BIGO Live has a very diverse global user community, and there is empty room for targeted optimization and we aim to continue to make perfection in each and every dimension and further enhance user experiences within each and every user groups.

而如同我們先前所提到的，BIGO Live擁有非常多元化的全球使用者群體，有針對性的最佳化空間，我們的目標是在各個維度上繼續精益求精，進一步提升各個使用者群體的使用者體驗。

To sum up, we expect BIGO Live to maintain a relatively healthy and steady user growth in the year '24, for other products. I believe that our goal is still to focus on the core functionalities and contribution of core product value, and once they start to generate a consistent process, then we can -- then we will have a solid foundation to revisit user growth. The actual time line may vary. Some might be slightly ahead. The others may be slightly behind. However, I don't think that it will interfere with the big picture here, which is recovering user growth at Group level.

綜上所述，我們預期 BIGO Live 24 年其他產品將維持相對健康穩定的使用者成長。我相信我們的目標仍然是專注於核心功能和核心產品價值的貢獻，一旦它們開始產生一致的流程，那麼我們就可以——然後我們將擁有堅實的基礎來重新審視用戶成長。實際時間軸可能會有所不同。有些可能會稍微領先一些。其他人可能稍微落後一些。不過，我認為這不會影響集團層面用戶成長的整體情況。

Next question comes from Lei Zhang from Bank of America Securities.

下一個問題來自美國銀行證券的張磊。

[Interpreted]

[解讀]

Want to see any updates on your global business in terms of regulatory risk?

想了解您的全球業務在監管風險方面的最新情況嗎？

[Interpreted]

[解讀]

This is Alex. I will take the question. For a global social entertainment company, the regulatory landscape across different markets actually varies and have been -- and it's subject to constant evolvement, and we have always considered business compliance and business safety as the crucial prerequisites for high-quality growth of our global business. And to achieve that, we will remain vigilant in monitoring the regulatory developments, and actively engage with the local regulatory authorities. And internally, we'll continue to optimize our compliance framework and execution, and more proactively adapt our business and operations with the regulatory changes to ensure alignment with the evolving regulatory and industry requirements.

這是亞歷克斯。我來回答這個問題。對於一家全球性的社交娛樂公司來說，不同市場的監管環境實際上是不同的，而且一直在不斷變化，我們始終將業務合規性和業務安全視為全球業務高質量增長的重要前提。 。為了實現這一目標，我們將保持警惕，監控監管動態，並積極與當地監管機構合作。在內部，我們將繼續優化我們的合規框架和執行，並更主動地根據監管變化調整我們的業務和運營，以確保符合不斷變化的監管和行業要求。

So that was the end of our Q&A session. It's been great catching up with everyone. Thank you so much for joining our call. We look forward to speaking with you next quarter.

我們的問答環節就這樣結束了。能跟大家見面真是太好了。非常感謝您加入我們的通話。我們期待下個季度與您交談。

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

本次會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。

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

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。]