JOYY Inc (YY) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the JOYY Inc.'s Fourth Quarter and Full Year 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，感謝大家的支持，並歡迎參加 JOYY Inc. 的 2023 年第四季和全年財報電話會議。 （操作員指示）我現在想把今天的會議交給你們的主持人，謝珍，公司投資者關係高級經理。請繼續，簡。

Thank you, operator. Hello, everyone. Welcome to JOYY's Fourth Quarter 2023 Earnings Conference Call. Joining us today are Mr. David Xueling Li, Chairman and CEO of Joy. Ms. Ting Li, our COO; and Mr. Alex Liu, the Vice President of Finance.

謝謝你，接線生。大家好。歡迎參加歡聚集團 2023 年第四季財報電話會議。今天加入我們的是久益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. 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。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. dollar. I will now turn the call over to our Chairman and CEO, Mr. David Xueling Li. Please go ahead, sir.

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。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 fourth quarter 2023 earnings call. First, we will provide a quick review of our performance for the quarter and the full year.

大家好。歡迎參加我們的 2023 年第四季財報電話會議。首先，我們將快速回顧本季和全年的業績。

During the fourth quarter, our group revenue comes at $570 million. Our core business segment, BIGO, recorded revenue for $491 million, a year-over-year increase for 3.1%. Group's non-GAAP net profit is $64.2 million, with BIGO contributing $63.5 million. For the full year of 2023, group's revenue reached $2.27 billion, with around $1.92 billion coming from BIGO. On reflection, 2023 provide to be a year of progress. Our focus on continuous product enhancement, nimble operational strategies and our strong execution yield positive results, despite the prevailing macro challenges.

第四季度，我們集團的營收為 5.7 億美元。我們的核心業務部門BIGO錄得營收4.91億美元，年增3.1%。集團的非公認會計準則淨利潤為 6,420 萬美元，其中 BIGO 貢獻了 6,350 萬美元。 2023年全年，集團收入達22.7億美元，其中約19.2億美元來自BIGO。回想起來，2023 年將是進步的一年。儘管面臨普遍的宏觀挑戰，我們對持續產品改進、靈活的營運策略和強大的執行力的關注產生了積極的成果。

First, our relentless optimization of operational efficiencies generated enhanced profitability for the third consecutive year. In 2023, our non-GAAP net profit reached $293 million, increased by 46.8% year-over-year. Our non-GAAP net margin was 12.9%, up by 4.6 percentage points year-over-year. BIGO's non-GAAP operation profit reached $288 million, representing a non-GAAP operating margin of 15% higher than our expectation. Notably, our social products under the BIGO segment include BIGO LIVE, Likee and other products were [quite stable] in 2023, Additionally, HAGO under the All Other segments generated a positive operation cash flow for the year.

首先，我們對營運效率的不懈優化使得獲利能力連續第三年提高。 2023年，我們的非公認會計準則淨利潤達到2.93億美元，年增46.8%。我們的非 GAAP 淨利率為 12.9%，年增 4.6 個百分點。 BIGO 的非 GAAP 營運利潤達到 2.88 億美元，非 GAAP 營運利潤率比我們的預期高出 15%。值得注意的是，我們BIGO板塊下的社交產品包括BIGO LIVE、Likee等產品在2023年表現[相當穩定]，此外，所有其他板塊下的HAGO全年產生了正的營運現金流。

Second, our global average mobile MAUs have now resumed year-over-year growth for the 3 consecutive quarters, even as we adhere to a disciplined marketing spending strategy. In the fourth quarter, our global average mobile MAUs increased by 2.6% year-over-year to $275 million.

其次，儘管我們堅持嚴格的行銷支出策略，但我們的全球平均行動月活躍用戶現已連續三個季度恢復同比增長。第四季度，我們的全球平均移動月活躍用戶數年增 2.6%，達到 2.75 億美元。

Third, we [solidly] defined our relationship position within the global social entertainment industry. According to Data.ai's State of Mobile report released in January 2024, BIGO LIVE retained its position as the world's second largest social app based on consumer spending on 2023.

第三，我們[堅定地]定義了我們在全球社交娛樂產業中的關係地位。根據 Data.ai 2024 年 1 月發布的行動狀況報告，以消費者支出計算，BIGO LIVE 到 2023 年仍維持全球第二大社群應用的地位。

Out of the 29 countries and regions spanning the Americas, Europe, the Middle East and Asia Pacific covered by Data.ai, BIGO LIVE ranked among the top 5 social apps in 18 countries and regions and among the top 10 social apps in 7 countries and the regions in terms of customer spending. Other social products also achieved a significant breakthrough in key markets in 2023. In terms of customer spending, Likee claimed the third place among social apps in Saudi, Arab, where HAGO secured a top 10 position in both Indonesia and the Philippines.

在Data.ai涵蓋的美洲、歐洲、中東和亞太地區的29個國家和地區中，BIGO LIVE在18個國家和地區躋身前5名社交應用，在7個國家和地區躋身前10名社交應用客戶支出方面的地區。 2023年，其他社群產品在重點市場也取得了重大突破。從用戶支出來看，Likee在沙烏地阿拉伯、阿拉伯社交應用中排名第三，HAGO在印尼和菲律賓排名前十。

Despite this progress, the group and BIGO segment revenues were down by 6% and 3.6% respectively, year-over-year. The decline was primarily due to 2 facts. First, despite middle single digit growth in BIGO's pay user throughout the fourth quarter, BIGO's ARPU was still down year-over-year, primarily due to high inflation, which negatively affected users, paying segment.

儘管取得了這些進展，但集團和 BIGO 部門的收入比去年同期分別下降了 6% 和 3.6%。下降主要是由於兩個事實。首先，儘管 BIGO 的付費用戶在第四季度實現了中等個位數成長，但 BIGO 的 ARPU 仍同比下降，這主要是由於高通膨對用戶和付費領域產生了負面影響。

Second, to strengthen our global positioning and foster sustainable growth, we proactively made proactive adjustments to certain noncore live streaming operations starting in the second quarter. Those adjustments had a negative impact on our live streaming revenues in certain regions. However, by fine tuning our operations and focusing resources on the more resilient, developed countries, region, we saw BIGO'S ARPU stabilize and a recovery in BIGO'S revenue in the 2 most recent quarters. With our more focused operational strategy, we believe BIGO will continue to recover and grow steadily during 2024.

其次，為了加強我們的全球定位並促進永續成長，我們從第二季開始對某些非核心直播業務進行了主動調整。這些調整對我們在某些​​地區的直播收入產生了負面影響。然而，透過微調我們的營運並將資源集中到更具彈性的已開發國家和地區，我們看到 BIGO 的 ARPU 穩定，並且在最近 2 個季度中 BIGO 的收入有所復甦。憑藉我們更專注的營運策略，我們相信 BIGO 將在 2024 年繼續復甦並穩定成長。

Looking ahead, we believe there is the simple rule for growth. To capture such potential, the key is to deliver unique experience and value to users, stay relevant and achieve sustainable growth. Such as our priorities for 2024 are as follows: First, we remain committed to our global valuation strategy, while we acknowledge queries regarding the potential impact of YY Live transaction on our future strategies.

展望未來，我們相信成長有一個簡單的規則。要抓住這種潛力，關鍵是為用戶提供獨特的體驗和價值，保持相關性並實現永續成長。例如我們2024年的優先事項如下：首先，我們仍然致力於我們的全球估值策略，同時我們承認有關YY直播交易對我們未來策略的潛在影響的質疑。

We are currently in discussion with Baidu on the next step following the termination of the SPA. And we are unable to disclose any further information at this time. However, we can confirm that our globalization strategy will remain unchanged. The globalization through localization was has been our foremost strategy and our strong global -- localized operational capabilities on the core zone of our global success.

我們目前正在與百度討論終止 SPA 後的下一步。目前我們無法透露任何進一步的資訊。不過，我們可以確認的是，我們的全球化策略將保持不變。透過在地化實現全球化一直是我們的首要策略，也是我們全球成功的核心領域強大的全球在地化營運能力。

In 2024, we will double down on our emphasize on local talent and drive innovative operations to further build our brand's global influence. Our, [albeit], collaborations with KOLs and local partners were instrumental in enhancing product awareness and capitalizing user growth in 2023. Building on this success, we will uphold our efforts to drive further steady rules of our global user community.

2024年，我們將加強對本土人才的重視，推動創新運營，進一步打造品牌的全球影響力。 [儘管如此]，我們與 KOL 和當地合作夥伴的合作對於提高產品知名度和利用 2023 年用戶成長發揮了重要作用。在此成功的基礎上，我們將繼續努力，進一步推動全球用戶社群的穩定規則。

Second, we will continue to strike a balance between growth and efficiency. In 2024, well, we anticipate the sustained recovery of BIGO. We also expect to maintain profitability and our positive cash flows at the group level. This year, we remain committed to dedicating resources to build our cost tranches, which encompass both our global operational capacity and our technology.

二是繼續平衡好成長和效率。 2024 年，我們預計 BIGO 將持續復甦。我們也期望在集團層面保持獲利能力和正現金流。今年，我們仍然致力於投入資源來建立我們的成本部分，其中包括我們的全球營運能力和技術。

At the same time, we will prudently explore long-term growth opportunities by driving innovations at the product and operational levels. We have been exploring new monetization models beyond live streaming and achieved a meaningful progress. In 2023, revenue from our nonlive streaming business made up to 12.7% of our total revenues, up from 5.4% in 2021. We expect this upward trend to continue in 2024, further expanding the diversifying our revenue streams, and ultimately, for refining multilevel growth engine for our long-term development.

同時，我們將透過推動產品和營運層面的創新，審慎探索長期成長機會。我們一直在探索直播以外的新變現模式，並且取得了有意義的進展。 2023 年，我們的非直播業務收入佔總收入的12.7%，高於2021 年的5.4%。我們預計這種上升趨勢將在2024 年持續下去，進一步擴大我們收入來源的多元化，並最終細化多層次的收入我們長期發展的成長引擎。

Now let's take a closer look at our products. We will start at BIGO LIVE. BIGO LIVE maintained its user growth momentum in the fourth quarter with MAUs increased by 4.5% year-over-year to 38.4 million. We saw growth across several regions, with year-over-year MAU increase of 10.9% in Europe, 8.4% in Eastern Pacific region and 12.6% in the Middle East. BIGO LIVE's revenue and pay users sustained their recovery chain and sequential growth. For the first quarter, it's typical, the peak reason of local operational activities worldwide to capitalize on this. BIGO LIVE organize a series of events to discover both outstanding creators across various domains and inspire new and diverse content creation.

現在讓我們仔細看看我們的產品。我們將從 BIGO LIVE 開始。 BIGO LIVE第四季維持用戶成長動能，每月活躍用戶數較去年同期成長4.5%至3,840萬。我們看到多個地區的成長，其中歐洲月活躍用戶數年增 10.9%，東太平洋地區成長 8.4%，中東地區成長 12.6%。 BIGO LIVE 的收入和付費用戶保持了復甦鍊和環比成長。對於第一季來說，這是全球本地業務活動利用這一點的典型原因。 BIGO LIVE 舉辦一系列活動，發掘各領域的傑出創作者，激發新穎多樣的內容創作。

On October, BIGO LIVE hosted the second season of its BIGO's most talented creator content in North America. This event attracts talented dancers, musicians, comedians and more. BIGO LIVE also introduced a brand-new Creator Incentive Program across major region around the world. While BIGO LIVE continues to support its experienced professional streamers and PUGC as program, place a stronger emphasis on major streamers and UGC as well as generous economic rewards, BIGO LIVE provides comprehensive training courses for immature streamers, helping newcomers to develop their skill and learn the ropes of successful streaming.

10 月，BIGO LIVE 舉辦了 BIGO 北美最有才華的創作者內容的第二季。這項活動吸引了才華橫溢的舞者、音樂家、喜劇演員等。 BIGO LIVE也在全球主要地區推出了全新的創作者獎勵計畫。 BIGO LIVE在繼續支持經驗豐富的專業主播和PUGC作為專案的同時，更加重視主播和UGC以及豐厚的經濟獎勵，BIGO LIVE為不成熟的主播提供全面的培訓課程，幫助新人發展技能並學習成功流的繩索。

As of the end of 2023, the UGC incentive program has already attracted over 300,000 major streamers. In January, we held our annual year-end flagship event, The BIGO Awards Gala in Las Vegas. The online live streaming of the event attracted over 1.2 million viewers from across the globe. This year, we also hosted supplementary region galas in various locations, including Indonesia, Milan and the Philippines, both the flagship and regional gala saw BIGO LIVE recognize the most outstanding streamers and families of 2023, and the talented creators were invited to give captivation, diverse performance.

截至2023年底，UGC激勵計畫已吸引超過30萬主播。一月份，我們在拉斯維加斯舉辦了年度年終旗艦活動 BIGO 頒獎晚會。該活動的線上直播吸引了來自全球超過120萬觀眾。今年，我們也在印尼、米蘭和菲律賓等地舉辦了補充地區盛典，無論是旗艦盛會還是地區盛典，BIGO LIVE都表彰了2023年最優秀的主播和家庭，並邀請了才華橫溢的創作者來給大家帶來精彩，多樣化的表現。

The BIGO Awards Gala, typically the streaming of BIGO LIVE has helped numbers of exceptional creators enhance their influence and gain exposure on the global stage. Our galas remains an essential component of our committee to support our creators in their growth journeys and help them maximize their value accretion.

BIGO Awards Gala，以BIGO LIVE直播為代表，幫助眾多優秀創作者提升了影響力，在全球舞台上獲得了曝光度。我們的盛會仍然是我們委員會的重要組成部分，以支持我們的創作者的成長之旅，並幫助他們最大限度地增值。

On the fourth quarter, our family-based activities encouraged the user to further explore and engaging in family events. Families provide a robust social contributors and reasonable with users, and we amplified this to drive user acquisition, nurturing long-tail streamers and convert free users to paying users.

第四季度，我們的家庭活動鼓勵使用者進一步探索和參與家庭活動。家庭提供了強大的社交貢獻者並與用戶進行了合理的合作，我們放大了這一點以推動用戶獲取，培育長尾串流媒體並將免費用戶轉變為付費用戶。

On a sequential basis, revenue contributed by family members increased by 5.7%. The number of contracted streamers in families rose by 16.5% and average DAUs in families increased by 5.5%. Throughout the first quarter, we personalized the user experience by refining recommendation algorithm for our diverse user base. Recommendations will continuously fine tune based on user behavior, ensuring each user receives the most relevant feed.

家庭成員貢獻的收入較上季成長5.7%。家庭簽約主播數量增加 16.5%，家庭平均 DAU 成長 5.5%。在整個第一季度，我們透過針對多元化用戶群完善推薦演算法來個人化用戶體驗。推薦將根據用戶行為不斷微調，確保每個用戶收到最相關的提要。

As a result, user engagement, user retention and average viewers' time spent per live sessions all improved. The net user retention rate in the fourth quarter rose by 2.3% sequentially, while average viewer time spent per session surged by 6.4%. BIGO LIVE's Real Match feature continues to foster high-quality social connections among users by refining and optimizing the overall matching progress, including user profiles and matching strategies, we successfully leveraged The Real Match to cultivate a great number of stable user connection. In the fourth quarter, the total number of connections increased by 23.3% sequentially. And the number of direct chat message between matched the user growth by 14.8%.

結果，用戶參與度、用戶保留率和平均觀眾在每次直播會話上花費的時間都得到了改善。第四季的淨用戶保留率較上季成長了 2.3%，而每次觀看的平均觀看時間則激增 6.4%。 BIGO LIVE的Real Match功能透過細化和優化整體配對流程，包括使用者畫像和配對策略，不斷在使用者之間培養高品質的社交關係，我們成功地利用The Real Match培養了大量穩定的使用者關係。第四季連線總數較上季成長23.3%。而彼此之間的直接聊天訊息數量也與用戶成長相匹配，成長了14.8%。

Next, let's take a look at Likee. Likee maintained its strategy focused on its core, Middle East and Europe markets. In recent quarters, Likee implement a series of targeted operational and product optimization to drive user recovery and stimulate monetization growth in its core regions. Although Likee's overall MAUs [turned] down sequentially during the first quarter, it's DAU deal in the core developed country, especially Europe and maintained high single digit growth for the past 4 quarters. In terms of monetization, Likee's revenue for the full year was up year-over-year in 2023. The recovery of DAUs in its core region and involving creator services ecosystem, and a more established business and creator marketplace all contributed to Likee's advertising revenue, growing by nearly 2.4x for the full year of 2023, despite a decline in its live streaming ARPU, which was a negative affected by macroeconomic uncertainties.

接下來我們就來看看Likee吧。 Likee 維持其專注於核心、中東和歐洲市場的策略。近幾個季度，Likee實施了一系列有針對性的營運和產品最佳化，以推動核心區域的用戶恢復並刺激變現成長。儘管Likee的整體MAU在第一季環比下降，但在核心已開發國家，尤其是歐洲的DAU交易在過去4個季度保持了較高的個位數成長。變現方面，2023年Likee全年營收年增。核心區域DAU的回升以及創作者服務生態的恢復，以及更成熟的業務和創作者市場都為Likee的廣告收入做出了貢獻，儘管受到宏觀經濟不確定性的負面影響，其直播ARPU 有所下降，但2023 年全年仍成長近2.4 倍。

The member of Likee's pay user has grown for four consecutive quarters. Thanks to its [improved] monetization and disciplined spending, Likee maintained its profitability during the fourth quarter. This means Likee achieved the first full year profitability in 2024, another significant milestone.

Likee付費用戶規模連續四季成長。由於其[改善的]貨幣化和嚴格的支出，Likee 在第四季度保持了盈利能力。這意味著Likee在2024年首次實現全年獲利，又是另一個重要里程碑。

On the product front, Likee continues to focus on delivering comprehensive greater services incentive within diverse content creation and fostering community interactions. In the fourth quarter, Likee introduced text and image posting features alongside new monetization options, enabling user subscription for both video collections and individual videos. Those features offer greatest creator flexibility in terms of content formats and open up new opportunities for monetization. Likee also rolled out a variety of interactive games in the fourth quarter to better align with users' evolving entertainment preferences.

在產品方面，Likee 繼續專注於在多樣化的內容創建和促進社區互動中提供全面的、更大的服務激勵。在第四季度，Likee 推出了文字和圖像發布功能以及新的貨幣化選項，使用戶能夠訂閱影片集和個人影片。這些功能在內容格式方面為創作者提供了最大的靈活性，並開啟了新的獲利機會。 Likee也在第四季度推出了多種互動遊戲，以更好地滿足用戶不斷變化的娛樂偏好。

During the fourth quarter, Likee continued to enhance its content production and quality, leading to 2.7% sequential growth in average user time spent. Thanks to upgraded interactive features, overall user engagement as mirrored by the ratio of DUA's and MAUs improved by 2.2% in the same period.

第四季度，Likee 繼續提高內容製作和質量，導致平均用戶花費時間季增 2.7%。由於升級的互動功能，同期 DUA 和 MAU 比率反映的整體用戶參與度提高了 2.2%。

Now turning to HAGO. The fourth quarter, HAGO innovative year-end events and new operational features, strong middle single digit sequential revenue growth. HAGO continued to generate positive operating cash flow in the quarter and therefore, achieved its first full year operation cash flow breakeven in 2023. HAGO's users' social interactions also improved during the first quarter. Average time spending per user in social channels increased by 4% sequentially, surpassed 99 minutes. Average time spent in per user in multi-guest voice room saw similar change, increased by 4.9% Q-over-Q.

現在轉向HAGO。第四季度，HAGO 創新的年終活動和新的營運特色，實現強勁的中個位數環比收入成長。 HAGO 在本季度繼續產生正的營運現金流，因此在 2023 年首次實現全年營運現金流盈虧平衡。HAGO 用戶的社交互動在第一季也有所改善。每個用戶在社群管道上的平均花費時間較上季成長 4%，超過 99 分鐘。每個用戶在多客戶語音室中花費的平均時間也出現了類似的變化，環比增長了 4.9%。

Finally, let me provide some updates on cash flow and capital return. We continue to generate robust positive operational cash flow, reaching $97.2 million in the fourth quarter. Our commitment to create and retaining value to our shareholders remains an important priority. And our track record is a testament to our long-term dedication.

最後，讓我提供一些有關現金流和資本回報的最新情況。我們持續產生強勁的正營運現金流，第四季達到 9,720 萬美元。我們致力於為股東創造和保留價值仍然是我們的首要任務。我們的業績記錄證明了我們的長期奉獻。

Over the course of 2023, we repurchased share and distributed cash dividends, averaging an amount of $355 million, equivalent to 121.5% of our revenue non-GAAP net profit from 2020 to 2023, we have, in total, distributed approximately $1.38 billion in capital returns. As of the end of the fourth quarter, we still had approximately $530 million unutilized in the quarter under our current share repurchase program. We intend to steadily execute additional share buybacks under the program in 2024.

2023年，我們回購了股票並分配了現金股息，平均金額為3.55億美元，相當於我們2020年至2023年非公認會計準則淨利潤的121.5%，我們總共分配了約13.8億美元的資本返回。截至第四季末，我們目前的股票回購計畫仍有約 5.3 億美元未動用。我們計劃在 2024 年根據該計劃穩步執行額外的股票回購。

Looking ahead, we will continue to cultivate our content and social ecosystem to steadily grow our thriving user community and reinforce our leadership in core geographic regions. At the same time, we will further dedicate our resources to build our costs tranches and carefully explore long-term growth opportunities. By driving innovations in both our products and operations, we expect to further diversify our revenue streams and capture long-term sustainable growth.

展望未來，我們將繼續培養我們的內容和社交生態系統，以穩步發展我們蓬勃發展的用戶社區，並鞏固我們在核心地理區域的領導地位。同時，我們將進一步投入資源建立我們的成本部分，並仔細探索長期成長機會。透過推動產品和營運創新，我們期望進一步實現收入來源多元化並實現長期永續成長。

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. Before I go into our financial details, we would like to remind you that despite the latest development in the YY Live, to the date of this press release, we have not obtained control over YY Live and therefore, have not consolidated the business. The financial results presented in our press release and this conference call primarily consisted of BIGO excluding YY Live.

謝謝，大衛。大家好。在介紹我們的財務細節之前，我們想提醒您，儘管 YY Live 取得了最新進展，但截至本新聞稿發布之日，我們尚未獲得對 YY Live 的控制權，因此尚未整合業務。我們的新聞稿和本次電話會議中介紹的財務表現主要包括 BIGO，不包括 YY Live。

Now let me go through the details of our financial results. Despite the ongoing macro uncertainties that ended 2023 with another strong quarter, our total net revenues were $569.8 million in the fourth quarter. Revenues from BIGO segment were $491.3 million, up by 3.1% year-over-year, driven by strong annual increase of 7.9% in BIGO's quarterly paying users and stabilizing up, which was down by 2.6%.

現在讓我詳細介紹一下我們的財務表現。儘管宏觀不確定性持續存在，導致 2023 年季度又表現強勁，但我們第四季的總淨收入為 5.698 億美元。 BIGO 業務營收為 4.913 億美元，年增 3.1%，主要得益於 BIGO 季度付費用戶年增 7.9%，並在下降 2.6% 後趨於穩定。

Geographically speaking, as we always prioritized our operational resources towards developed countries and regions, revenues from developed countries was up by double digits year-over-year, outperforming other regions. Cost of revenues for the quarter decreased to $368.4 million, among which, our revenue-sharing fees and content costs decreased to $242.2 million. BIGO's cost of revenues was $309 million, which was up year-over-year, consistent with the rebound in live streaming revenue and elevated creator support during the quarter.

從地理來看，由於我們始終將經營資源向已開發國家和地區傾斜，來自已開發國家的營收則是年增兩位數，表現優於其他地區。本季營收成本下降至 3.684 億美元，其中，我們的營收分成費用和內容成本下降至 2.422 億美元。 BIGO 的收入成本為 3.09 億美元，年成長，這與本季直播收入的反彈和創作者支持的增加一致。

Gross profit was $201.5 million in the quarter, with a gross margin of 35.4%. BIGO's gross profit was $182.3 million, with a gross margin of 37.1%. Our gross operating expenses for the quarter were $199.4 million, compared with $231.2 million in the same period of 2022. Among the operating expenses, sales and marketing expenses decreased to $92.3 million from $100.8 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 the effectiveness of user acquisition.

該季度毛利為2.015億美元，毛利率為35.4%。 BIGO的毛利為1.823億美元，毛利率為37.1%。我們本季的總營運費用為 1.994 億美元，而 2022 年同期為 2.312 億美元。營運費用中，銷售和行銷費用從 2022 年同期的 1.008 億美元下降至 9,230 萬美元，主要是由於優化跨不同產品線的整體銷售和行銷策略，更關注投資回報率和用戶獲取的有效性。

R&D expenses was $72.6 million, compared with $73.6 million in the same period of 2022. General and administrative expenses decreased to $34.6 million from $41.9 million in the same period of 2022, mainly due to the company's efforts to improve management efficiency during the year. BIGO's operating expenses for the quarter were $131.3 million, compared with $127.8 million in the same period of 2022.

研發費用為7,260萬美元，而2022年同期為7,360萬美元。一般及行政費用從2022年同期的4,190萬美元減少至3,460萬美元，主要由於公司年內努力提高管理效率。 BIGO 本季的營運支出為 1.313 億美元，而 2022 年同期為 1.278 億美元。

Our group's GAAP operating income for the quarter was $4.8 million. Our non-GAAP operating income for the quarter, which excludes SBC expenses, amortization of intangible assets from business acquisitions, loss of the consolidation and disposal of subsidiaries as well as impairment of goodwill and investments was $27.9 million in the quarter, with a non-GAAP operating income margin of 4.9%.

我們集團本季的 GAAP 營業收入為 480 萬美元。我們本季的非 GAAP 營業收入（不包括 SBC 費用、業務收購產生的無形資產攤銷、子公司合併和處置損失以及商譽和投資減值）為 2,790 萬美元，非GAAP 營業利潤率為4.9% 。

BIGO's GAAP operating income for the quarter was $53 million and BIGO's non-GAAP operating income was $67 million, representing a non-GAAP operating income margin of 13.6%. Our gross GAAP net income attributable to controlling interest of JOYY in the quarter was $45.8 million, compared to net loss of $377.5 million in the same period of 2022.

BIGO 本季的 GAAP 營業收入為 5,300 萬美元，BIGO 的非 GAAP 營業收入為 6,700 萬美元，非 GAAP 營業利潤率為 13.6%。本季歸屬於歡樂集團控股權益的 GAAP 淨利潤總額為 4,580 萬美元，而 2022 年同期淨虧損為 3.775 億美元。

GAAP net income margin was 8% in the fourth quarter of 2023 compared to net loss margin of 62.4% in the same period of 2022. Our net loss last year was primarily due to an impairment loss from an active investment recognized in the quarter. BIGO's GAAP net income in the quarter was $52 million, with a GAAP net margin of 10.6%. Non-GAAP net income attributable to controlling interest of JOYY in the quarter was $64.2 million compared to $50 million in the same period of 2022.

2023 年第四季的 GAAP 淨利潤率為 8%，而 2022 年同期的淨虧損率為 62.4%。我們去年的淨虧損主要是由於本季確認的主動投資的減損損失。 BIGO 本季 GAAP 淨利為 5,200 萬美元，GAAP 淨利率為 10.6%。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 6,420 萬美元，而 2022 年同期為 5,000 萬美元。

The Group's non-GAAP net income margin was 11.3% in the quarter compared to 8.3% in the same period of 2022. BIGO's non-GAAP net income was $63.1 million, with a non-GAAP net margin of 12.9%. For the fourth quarter of 2023, we booked net cash inflows from operating activities of $97.2 million. We remain a healthy balance sheet with a strong cash position of $3.7 billion as of December 31, 2023.

該集團本季的非 GAAP 淨利潤率為 11.3%，而 2022 年同期為 8.3%。BIGO 的非 GAAP 淨利潤為 6,310 萬美元，非 GAAP 淨利潤率為 12.9%。 2023 年第四季度，我們的營運活動現金流入淨額為 9,720 萬美元。截至 2023 年 12 月 31 日，我們的資產負債表保持健康，擁有 37 億美元的強勁現金部位。

Now I would like to briefly walk through the full year financial highlights. Our total net revenues for the full year were $2,267.9 million compared to $2,411.5 million in 2022. BIGO's revenues for the full year were $1,924.3 million. We have enhanced profitability at the group level for the third consecutive year.

現在我想簡要介紹一下全年的財務亮點。我們全年的總淨收入為 22.679 億美元，而 2022 年為 24.115 億美元。BIGO 的全年收入為 19.243 億美元。我們連續第三年提高了集團層面的獲利能力。

Our non-GAAP net income attributable to controlling interest and common shareholders of JOYY for the full year of 2023 was $292.5 million, up by 46.8% from $199.3 million in 2022. Non-GAAP net income margin for the full year of 2023 was 12.9%, up from 8.3% in 2022. Notably, BIGO's non-GAAP net income expanded to $302 million in 2023, with its non-GAAP net income margin improved to 15.7% from 14.4% in the prior year. Importantly, we have continued to enhance returns to shareholders through dividends and share repurchase.

2023 年全年歸屬於歡樂集團控股權益和普通股股東的非 GAAP 淨利潤為 2.925 億美元，比 2022 年的 1.993 億美元增長 46.8%。2023 年全年非 GAAP 淨利潤率為 12.9% ，高於2022 年的8.3%。值得注意的是，BIGO 的非GAAP 淨利潤在2023 年擴大至3.02 億美元，其非GAAP 淨利潤率從上一年的14.4% 提高至15.7%。重要的是，我們繼續透過股利和股票回購來提高股東回報。

In the full year of 2023, we have retained an aggregate amount of $355.4 million to our shareholders through share buybacks and cash dividends, which, altogether, represent 121.5% of our non-GAAP net income. As of the end of 2023, we still have around $530 million unutilized quota under our current share repurchase program. We intend to proceed with a steady execution of additional share buyback in 2024.

2023 年全年，我們透過股票回購和現金股利向股東保留了總計 3.554 億美元的金額，合計占我們非 GAAP 淨利潤的 121.5%。截至 2023 年底，我們目前的股票回購計畫仍有約 5.3 億美元的未使用配額。我們打算在 2024 年繼續穩定執行額外股票回購。

Turning now to our business outlook. We anticipate continued top line recovery in the BIGO segment. 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 segments.

現在轉向我們的業務前景。我們預計 BIGO 業務的營收將持續復甦。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，用戶付費細分市場可能會出現短期波動。

Separately, as we have implemented some proactive adjustments to certain operations in the previous quarters, we have had and will continue to have a negative impact on our revenues. At the group level, we expect our net revenues for the first quarter of 2024 to be between $543 million and $560 million. This forecast reflects our preliminary views on the market and operational conditions and business adjustments, which are subject to changes.

另外，由於我們在前幾個季度對某些業務進行了一些主動調整，我們已經並將繼續對我們的收入產生負面影響。在集團層面，我們預計 2024 年第一季的淨收入將在 5.43 億美元至 5.6 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, balancing between growth and efficacy remains a priority in 2024. We remain committed to dedicating resources to build our cost benefits and prudently explore long-term growth opportunities. With our proven execution capabilities and robust financial position, we are confident that we are well positioned to save growth opportunities and deliver sustainable value to our shareholders. That concludes our prepared remarks.

總之，成長與效益之間的平衡仍是 2024 年的首要任務。我們仍致力於投入資源建立成本效益，並審慎探索長期成長機會。憑藉我們經過驗證的執行能力和穩健的財務狀況，我們相信我們有能力保存成長機會並為股東提供可持續的價值。我們準備好的演講到此結束。

Operator, we would now like to open up the call to questions. Thanks.

接線員，我們現在要開始提問。謝謝。

(Operator Instructions)

（操作員說明）

Your first question comes from Yiwen Zhang from China Renaissance.

你的第一個問題來自華興資本的張一文。

(foreign language). My question regarding FY 2024 user and the monetization cost trend. Could you discuss, like, BIGO LIVE and, like, ROIC, respectively?

（外語）。我關於 2024 財政年度用戶和貨幣化成本趨勢的問題。能分別討論一下 BIGO LIVE 和 ROIC 等嗎？

[Interpreted] Thank you, Yiwen. This is David. I will take your question. First of all, let's look back at the monetization trend in Q4 thanks to elevated operational activities such as our year-end gala, our revenue came in line with our expectation with BIGO sustaining its top line year-over-year growth for the second consecutive quarter. And in particular, BIGO's 3 core social global products achieved mid-single-digit year-over-year growth in terms of revenue. And this was mainly attributed to a strong growth in their number of paying users and a stabilizing ARPU.

[譯]謝謝你，伊文。這是大衛。我會回答你的問題。 First of all, let's look back at the monetization trend in Q4 thanks to elevated operational activities such as our year-end gala, our revenue came in line with our expectation with BIGO sustaining its top line year-over-year growth for the second consecutive四分之一.尤其是BIGO的三大核心社交全球產品收入年增中個位數成長。這主要歸功於付費用戶數量的強勁成長和 ARPU 的穩定。

And geographically speaking, considering that we have a more targeted operational strategy with prioritizing high-end users in the developed countries, we can see a continued recovery in the developed countries region. In Q4, the top-line growth rate from developed countries actually reached double digits year-over-year for the BIGO segment.

而且從地理上來說，考慮到我們有更有針對性的營運策略，優先考慮已開發國家的高端用戶，我們可以看到已開發國家地區的持續復甦。第四季度，已開發國家 BIGO 業務的營收年增率實際上達到了兩位數。

In 2024, we expect to maintain our nimble and targeted operational strategy. Dependent on ROI and also the recovery pace of the global markets, we will continue to prioritize our resources towards regions with stronger growth, and we expect BIGO segment to continue its top line recovery trend in 2024.

2024年，我們預計將保持靈活且有針對性的營運策略。根據投資回報率以及全球市場的復甦步伐，我們將繼續將資源優先用於成長強勁的地區，我們預計 BIGO 業務將在 2024 年繼續其營收復甦趨勢。

And in terms of our growth drivers, as we mentioned earlier, in the past 2 years, we've been exploring new monetization models beyond live streaming and achieved meaningful progress. Revenue contributed by our non-live streaming businesses have contributed a higher percentage of our group's revenue in the year '23.

而就我們的成長動力而言，正如我們之前提到的，在過去的兩年裡，我們一直在探索直播以外的新的變現模式，並取得了有意義的進展。 23年，非直播業務貢獻的收入佔集團收入的比例較高。

And for the coming year of '24, to better satisfy the development needs of our non-live streaming business, we've made some business upgrades and strategy upgrades to these non-live streaming businesses, and we expect our non-live streaming business to further grow and to take up a higher percentage of the group's revenue in the year '24. Eventually, we'd like to fortify a multilevel growth engine for our long-term development.

而對於即將到來的24年，為了更好地滿足我們非直播業務的發展需求，我們對這些非直播業務做了一些業務升級和戰略升級，我們預計我們的非直播業務進一步增長並在24年佔集團收入的更高比例。最終，我們要為我們的長期發展打造多層次的成長引擎。

And in terms of user growth, our group's MAU has resumed positive year-over-year growth for 3 consecutive quarters. Going forward in -- even as we continue to adhere to a disciplined marketing spend and strategy. And going forward into the year '24, we expect to continue to adopt a balanced and sustainable growth strategy at all products, focusing on the quality of user growth and continue to enhance our overall user acquisition efficiency. Next question, please.

而在用戶成長方面，我們集團的MAU已連續3季恢復年比正成長。展望未來—即使我們繼續堅持嚴格的行銷支出和策略。展望24年，我們預期所有產品將持續採取平衡、永續的成長策略，關注用戶成長質量，持續提升整體用戶獲取效率。請下一個問題。

The next question comes from Alex Poon from Morgan Stanley.

下一個問題來自摩根士丹利的 Alex Poon。

(foreign language) My question is related to our margin trend for BIGO and overall group levels in 2024.

（外語）我的問題與我們 BIGO 的利潤趨勢以及 2024 年集團整體水準有關。

[Interpreted] This is Alex. I will take your question. If you look at our results for the full year, we actually delivered better-than-expected profits. In particular, if you're looking at BIGO segment, the non-GAAP gross margin of BIGO segment has been 38.3%, up from 37.6% in '22. And the non-GAAP operating margin has been improved to 15%, up from 14.4% in the prior year, and that was mainly due to our continued optimization of our payment channel expenses, server, depreciation expenses and also our sales and marketing expenses.

[翻譯] 這是亞歷克斯。我會回答你的問題。如果你看看我們全年的業績，我們實際上實現了好於預期的利潤。特別是，如果你關注 BIGO 部門，BIGO 部門的非 GAAP 毛利率為 38.3%，高於 22 年的 37.6%。非 GAAP 營業利潤率從前一年的 14.4% 提高至 15%，這主要歸功於我們對支付通路費用、伺服器、折舊費用以及銷售和行銷費用的持續優化。

And looking forward to the year '24, we will continue to optimize our cost structure and improve our operational and management efficiency. At the same time, we expect to prudently reinvest some of our operating profits into operational activities that can drive further revenue growth and also businesses that align with our long-term strategy.

展望24年，我們將持續優化成本結構，提高營運管理效率。同時，我們預計將謹慎地將部分營業利潤再投資到能夠推動收入進一步增長的營運活動以及符合我們長期策略的業務中。

For example, we intend to prudently expand our collaboration with KOL and their incentives. Therefore, specifically for the BIGO segment, while excluding the impact from the proactive adjustment to some noncore live streaming business that we made since the second half of the year '23, we expect BIGO to continue its top line recovery.

例如，我們打算謹慎擴大與KOL的合作及其激勵措施。因此，特別是對於BIGO細分市場，在排除我們自23年下半年以來對一些非核心直播業務主動調整的影響的同時，我們預計BIGO將繼續其營收復甦。

And with its non-GAAP operating profit, the amount of non-GAAP operating profit should be roughly stable compared to the year of '23. And for the all other segment, also excluding the impact from the proactive adjustments that we made to certain noncore live streaming businesses since the second quarter of 2023, we expect to continue to narrow the amount of non-GAAP operating loss of this segment for the year of '24 as well.

考慮到其非 GAAP 營業利潤，與 23 年相比，非 GAAP 營業利潤應大致穩定。對於所有其他細分市場，也排除我們自 2023 年第二季度以來對某些非核心直播業務主動調整的影響，我們預計該細分市場的非 GAAP 營運虧損金額將繼續縮小也是'24年。

So all in all, at group level, we will continue to strike a balance between profit and growth. And we will value profit and cash flow self-sufficiency and drive further improvement of our operational efficiencies. All in all, at group level, we expect to maintain profitable, maintain a positive operating cash flow and drive a long-term sustainable growth of the group's business.

所以總而言之，在集團層面，我們將繼續在利潤和成長之間取得平衡。我們將重視利潤和現金流的自給自足，推動營運效率的進一步提高。總而言之，在集團層面，我們期望保持獲利，維持正的經營現金流，並推動集團業務的長期永續成長。

Your next question comes from Brian Gong from Citi.

您的下一個問題來自花旗銀行的布萊恩龔。

(foreign language)

（外語）

[Interpreted] Thank you, Brian. I will take your -- this is David, I will take your question. So since we established our globalization strategy, it's been 9 years. And you can see that we have actually built a very global business with a diversified and balanced revenue mix across different regions. And looking at our group's live streaming revenue for the year '23, developed countries and regions actually contributed around 38%; Middle East, around 22%; Mainland China, around 14%; and the remaining 25% came from Southeast Asia and other areas, which you can see is very, very diversified and balanced.

[翻譯]謝謝你，布萊恩。我會回答你的問題——這是大衛，我會回答你的問題。那麼從我們制定全球化策略到現在，已經有9年了。你可以看到，我們實際上已經建立了一個非常全球化的業務，在不同地區擁有多元化和平衡的收入組合。而從我們集團23年的直播收入來看，已開發國家和地區實際上貢獻了38%左右；中東，約22%；中國大陸，約14%；剩下的25%來自東南亞等地區，可以看到非常非常的多元化和均衡。

And even within the developed countries region, we can further break it down into second-tier sub regions such as North America, Europe, Eastern Pacific and others and the contribution among these second-tier subregions are also very dispersed, taking North America as an example, it only accounts for low teens in terms of percentage contribution to the group's overall revenue.

而即使在已開發國家區域內，我們還可以進一步細分為北美、歐洲、東太平洋等二線次區域，而這些二線次區域之間的貢獻也很分散，以北美為主要區域。例如，就對集團總收入的貢獻百分比而言，它僅佔低十幾歲。

Therefore, you can see that due to the comprehensive differences across the markets, either in terms of politics, economics, cultural and industry development differences, a multinational company will definitely encounter more operational complexity and greater macroeconomic and geopolitical uncertainties in terms of business operation than those who operate in a single market. However, as we have established our own global operational capacity and accumulated business of scale and also have a relatively proven business model, a globalization strategy with a balanced mix can actually significantly lower the concentration risk of operating in a single market, and it also enables us to tap into a much greater growth opportunities at the global level.

因此，可以看到，由於各市場的綜合差異，無論是政治、經濟、文化或產業發展的差異，跨國公司在經營上肯定會比跨國公司遇到更多的營運複雜性和更大的宏觀經濟、地緣政治不確定性。那些在單一市場運作的人。但由於我們已經建立了自己的全球營運能力和規模業務積累，也擁有了相對成熟的商業模式，均衡組合的全球化策略實際上可以顯著降低單一市場經營的集中度風險，也使得我們將在全球範圍內挖掘更大的成長機會。

Therefore, moving forward, we will continue to pursue a balanced globalization strategy and remain nimble and targeted in our operational strategy. We will continue to prioritize our resources investment into regions with a stronger growth potential dependent on ROI and also market recovery. Next question -- final question, please.

因此，展望未來，我們將繼續奉行平衡的全球化策略，維持營運策略的彈性和針對性。我們將繼續根據投資報酬率和市場復甦，優先將資源投資到具有更強成長潛力的地區。下一個問題——最後一個問題。

Your next question comes from Henry Sun from JPMorgan.

你的下一個問題來自摩根大通的孫亨利。

(foreign language) My question is about shareholder return. Could you share any new thoughts and outlook in this area?

（外語）我的問題是關於股東回報的。能分享一下在這方面有什麼新的想法和展望嗎？

[Interpreted] This is Alex. I will answer your question. In the year '23, we remain very active in returning value to our shareholders. For the full year, we have dedicated around $355 million in shareholder return, which contributed -- which is equivalent to around 121.5% of the group's annual non-GAAP net profit.

[翻譯] 這是亞歷克斯。我會回答你的問題。 23 年，我們仍然非常積極地為股東回報價值。全年，我們投入了約 3.55 億美元的股東回報，相當於集團年度非 GAAP 淨利潤的 121.5% 左右。

And for the year '24, we'll say that creating and returning value to our shareholders remain an important priority for the management. As of the end of '23 we will have around $530 million unutilized quota under our share repurchase program. And actually, from January to March 15, we have already repurchased an additional 25 million of our shares. And for the year '24, we expect to continue to execute additional share buybacks and strive to improve our execution consistency in the new year.

對於 24 年，我們會說，為股東創造和回報價值仍然是管理層的重要優先事項。截至 23 年底，我們的股票回購計畫將有約 5.3 億美元的未使用配額。事實上，從1月到3月15日，我們已經額外回購了2,500萬股。對於 24 年，我們預計將繼續執行額外的股票回購，並努力提高新一年執行的一致性。

So that was the end of this conference call. Thank you so much for joining today, and we expect to be speaking with everyone next quarter. Thank you.

本次電話會議到此結束。非常感謝您今天加入，我們預計下季將與大家交談。謝謝。

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

謝謝。我們今天的會議到此結束。感謝您的參與。您現在可以斷開連線。

[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。]