JOYY Inc (YY) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the JOYY Inc.'s First Quarter 2024 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 2024 年第一季財報電話會議。 （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 First Quarter 2024 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, Vice President of Finance. For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session.

謝謝你，接線生。大家好。歡迎參加歡聚團 2024 年第一季財報電話會議。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。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。

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.

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.

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. 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 first quarter 2024 earnings call. To start, let me briefly review our performance in the fourth quarter. We kicked off 2024 with a solid quarter. Group's revenue currently at $565 million with our core business BIGO segment contributing $505 million. Group's non-GAAP net profit reached $65 million and BIGO's non-GAAP net profit hit $71 million, both surpassing our expectations. BIGO sustained its top line recovery trend for the third consecutive quarter, achieving at 8% year-over-year growth. Livestreaming revenues from our core global products, which include a big Bigo Live, likee, imo increased by 2.8% year-over-year, driven by a continued expansion of paying users, which was up by 6.9% on an annual basis.

大家好。歡迎參加我們的 2024 年第一季財報電話會議。首先，讓我簡單回顧一下我們第四季的表現。我們以穩健的季度業績拉開了 2024 年的序幕。該集團目前的收入為 5.65 億美元，其中我們的核心業務 BIGO 部門貢獻了 5.05 億美元。 Group 的非 GAAP 淨利潤達到 6,500 萬美元，BIGO 的非 GAAP 淨利潤達到 7,100 萬美元，均超出我們的預期。 BIGO 連續第三季維持營收復甦趨勢，較去年同期成長 8%。我們的核心全球產品（包括 Bigo Live、likee、imo）的直播收入年增 2.8%，付費用戶持續成長，較去年同期成長 6.9%。

We have prioritized and the channel that our advertising spend and other operational resources toward premium users and developed countries where we observed improved ROI and spending segment. Across all BIGO's markets developed countries continued to outperform with livestreaming revenues, achieving double-digit growth year-over-year.

我們優先考慮將廣告支出和其他營運資源用於優質用戶和已開發國家，我們觀察到這些國家的投資報酬率和支出部分有所改善。在 BIGO 的所有市場中，已開發國家的直播收入持續表現出色，與去年同期相比實現兩位數成長。

Importantly, as we continue to strategically expand and diversify our revenue streams, BIGO's non-live streaming revenues, primarily advertising revenues grew substantially year-over-year. At the same time, we continued to improve our profitability at group level. Our non-GAAP net profit reached $67 million in the fourth quarter after 34.8% year-over-year.

重要的是，隨著我們繼續策略性地擴大和多元化我們的收入來源，BIGO 的非直播收入（主要是廣告收入）同比大幅增長。同時，我們持續提高集團層面的獲利能力。第四季我們的非 GAAP 淨利潤達到 6,700 萬美元，較去年同期成長 34.8%。

Non-GAAP net margin increased by 3.4 percentage points to 11.9%. Notably, despite the negative impact of seasonality, the All Other segment is steadily narrowed its non-GAAP operation loss on a sequential basis. This improvement was driven by further cost optimization and enhance the operational and management efficiency at both the group and product levels.

非 GAAP 淨利率成長 3.4 個百分點，達到 11.9%。值得注意的是，儘管存在季節性的負面影響，但所有其他部門的非公認會計準則營運虧損環比穩步縮小。這項改進得益於進一步的成本優化以及集團和產品層面營運和管理效率的提升。

We sustained our positive operation cash flow in the first quarter, generating a robust $75 million with its foundation of healthy cash flows and our solid financial position. We repurchased an additional of $54.5 million worth of shares during the quarter. As we have outlined previously, despite the last developments with regard to the sales of YY Live, we remain committed to returning value to our shareholders.

我們在第一季保持了積極的營運現金流，憑藉著健康的現金流和穩健的財務狀況，創造了 7500 萬美元的強勁現金流。我們在本季額外回購了價值 5,450 萬美元的股票。正如我們之前所概述的，儘管 YY Live 的銷售取得了最新進展，但我們仍然致力於為股東回報價值。

We will continue to actively execute our current share repurchase program and enhance execution consistently. Looking ahead, well, we have seen some green shoots of recovery, global macroeconomic uncertainties persisted. Our livestreaming ARPU was still down slightly year-over-year. And the regional recovery [change] diverged and remained uneven. As such, we will maintain our efficiency-oriented approach to our operational investments. We will continue to focus on ROI and nimbly adjust our strategies to [fill in] with prevailing market dynamics. We expect to drive healthy and sustainable growth of our business while maintaining stable profitability and positive cash flow.

我們將繼續積極執行目前的股票回購計劃，並持續增強執行力。展望未來，我們已經看到了一些復甦的萌芽，但全球宏觀經濟的不確定性仍然存在。我們的直播 ARPU 年比仍略有下降。各地區的復甦[變化]出現分化，且仍不平衡。因此，我們將繼續以效率為導向的營運投資方式。我們將繼續專注於投資報酬率並靈活調整我們的策略以適應當前的市場動態。我們期望推動業務健康可持續成長，同時保持穩定的獲利能力和正現金流。

Based on our current operational plans, we expect BIGO to resume sequentially growth in the second half of the year and maintain its year-over-year revenue recovery for the full year. We anticipate that BIGO's revenue mix will become more diversified in 2024 with a further increase in the contribution from non-livestreaming revenue on a year-over-year basis.

根據我們目前的營運計劃，我們預計BIGO將在下半年恢復環比成長，並維持全年收入年比恢復。我們預計2024年BIGO的收入結構將更加多元化，非直播收入的貢獻將年增。

Now let's delve deeper into our regional strategies by optimizing product features, providing diverse premium content and leveraging innovative marketing activities. We continuously enhance our users' content and social experience. Notably, our global operations teams collaborated with KOLs and the industry partners to execute a range of innovative online and offline marketing activities in the fourth quarter.

現在，讓我們透過優化產品功能、提供多樣化的優質內容並利用創新的行銷活動來更深入地研究我們的區域策略。我們不斷增強用戶的內容和社交體驗。值得注意的是，我們的全球營運團隊在第四季度與KOL和產業合作夥伴合作，進行了一系列創新的線上和線下行銷活動。

In addition to hosting galas and cultural themed regional activities and resonate deeply with our users. We yet elevated our presence in the offline activities and roadshows. We also hosted [creator] parties and family events to further connect with our community. These initiatives drove deeper engagement with our global communities of users and significantly enhanced both product awareness and our brand awareness.

除了舉辦晚會和文化主題區域活動之外，與我們的用戶產生深刻的共鳴。我們也在線下活動和路演中提升了影響力。我們也舉辦了[創作者]聚會和家庭活動，以進一步與我們的社區建立聯繫。這些舉措推動了我們與全球用戶社群的更深入互動，並顯著提高了產品知名度和品牌知名度。

Furthermore, as a global technology company, we remained steadfast in our commitment to promoting corporate social responsibilities and sustainable development and integrating these principles into the core of our local operations worldwide. In March, we launched a series of regional events in Middle East and Southeast Asia to celebrate Ramadan fostering a sense of community among users during this festival period. We also forged partners with several international charitable organizations include the Indonesia Cancer Foundation; Saudi Arabia's Namaa National Association; and Bangladesh's JAAGO Foundations. We made a number of donations to those international charitable organizations, inspiring hundreds of -- thousands of our users to join our cause and provide assistance to local families' patients and children in need.

此外，作為一家全球科技公司，我們仍然堅定致力於促進企業社會責任和永續發展，並將這些原則融入我們全球本地營運的核心。 3月份，我們在中東和東南亞推出了一系列區域活動來慶祝齋戒月，在節日期間培養用戶的社區意識。我們也與多個國際慈善組織建立了合作夥伴，包括印尼癌症基金會；沙烏地阿拉伯納馬國家協會；和孟加拉的 JAAGO 基金會。我們向這些國際慈善組織提供了大量捐款，激勵了數百名用戶加入我們的事業，為當地家庭的患者和有需要的兒童提供幫助。

We have also actively engaged dialogues with government agencies, industry leaders, entrepreneurs and other stakeholders in our key markets to align our regional operations with the economic and sustainable development global of -- goals of local communities. For example, in January, we attended the Jordan-Singapore Tech Alliance Forum with BIGO and the Information and Communications Technology Associations of Jordan jointly signed an MoU. This partnership aimed to strengthen bilateral cooperation, promote regional technology called innovation and facilitate economic growth.

我們也積極與主要市場的政府機構、行業領導者、企業家和其他利益相關者進行對話，以使我們的區域業務與當地社區的全球經濟和永續發展目標保持一致。例如，今年1月，我們與BIGO共同出席約旦-新加坡科技聯盟論壇，並與約旦資訊通訊科技協會共同簽署了諒解備忘錄。這項夥伴關係旨在加強雙邊合作，促進區域技術創新並促進經濟成長。

In March, BIGO participated in LEAP, the largest technology exhibition in Middle East, where we showcased BIGO's technologies and AI-driven solutions. BIGO's presence underscores our support for the region's sustainable development and our commitment to promoting entrepreneurship, innovation and digital transforming -- transformation.

3月，BIGO參加中東最大的科技展LEAP，展示了BIGO的技術和人工智慧驅動的解決方案。 BIGO 的存在凸顯了我們對該地區永續發展的支持以及我們對促進創業、創新和數位轉型的承諾。

Now let's take a closer look at our product, we will start with, Bigo Live. In the first quarter, Bigo Live's revenue continued its year-over-year rebound, especially revenue from developed country grew by 40.8% accompanied by 17.2% increase in pay user in those regions. During the quarter, we remain focused on Bigo Live user acquisition strategy channeling more resources into developed countries to enhance our monetization efficiency. As a result, Bigo Live's MAU was slightly down year-over-year, setting at 37.1 million.

現在讓我們仔細看看我們的產品，我們將從 Bigo Live 開始。第一季度，Bigo Live營收持續較去年同期反彈，特別是來自已開發國家的營收成長了40.8%，這些地區的付費用戶成長了17.2%。本季度，我們仍專注於 Bigo Live 用戶獲取策略，將更多資源引入已開發國家，以提高我們的變現效率。因此，Bigo Live 的月活躍用戶數較去年同期略有下降，為 3,710 萬。

However, MAU in developed countries rose by 8.9% on an annual basis. In contract -- in contrast with 4% decline in Southeast Asia and other emerging markets. Moving forward, we will continue to execution our focused user acquisition strategy as we strive to optimize Bigo Live's user mix. While we anticipate some short-term fluctuations in MAU growth, we are confident that this adjustment will enhance the long-term [validity] of Bigo Live.

然而，已開發國家的每月活躍用戶數較去年同期成長8.9%。合約方面—相較之下，東南亞和其他新興市場的跌幅為 4%。展望未來，我們將繼續執行重點用戶獲取策略，並努力優化 Bigo Live 的用戶組合。雖然我們預期每月活躍用戶數成長會出現一些短期波動，但我們相信這項調整將增強 Bigo Live 的長期[有效性]。

In the fourth quarter, Bigo Live organized a variety of innovative marketing initiatives in reaching the platform with diverse high-quality content and broadening our reach within the global community. A highlight was our participating in the Sanremo Music Festival, the world-famous Italian song contest and award ceremony held in early February. As part of organizer, Bigo Live showcased 10 of our most talented streamers in a 2-hour music extravaganza that was streamed worldwide.

第四季度，Bigo Live組織了多種創新行銷舉措，以多樣化的優質內容打入平台，擴大我們在全球社群的影響力。一個亮點是我們參加了聖雷莫音樂節，這是世界著名的義大利歌曲比賽和頒獎典禮，於二月初舉行。作為組織者的一部分，Bigo Live 在全球直播的 2 小時音樂盛宴中展示了 10 位最有才華的主播。

In addition, Bigo Live launched an intelligent management system for streamers and agencies which significantly streamlines the contracting and the management process by reducing the average duration from days to mere hours. This efficiency boost led to 4.9% quarter-over-quarter increase in newly contracted streamers. We anticipate the automation initiatives such as these will further improve our overall operational efficiency in the long run.

此外，Bigo Live 還為主播和代理商推出了智慧管理系統，透過將平均持續時間從幾天縮短到僅僅幾個小時，顯著簡化了簽約和管理流程。這種效率提升導致新簽約串流媒體數量較上季成長 4.9%。我們預計，從長遠來看，此類自動化措施將進一步提高我們的整體營運效率。

Family-based operational activities also played a key role in this quarter, strengthening social bonds within our user community in a sequential basis. Our approach yielded a 1.1% increase in paying Family user and 1.5% rise in contracted streamers within Families and [6.2%] uptick in daily active user in Family groups.

以家庭為基礎的營運活動在本季也發揮了關鍵作用，依序加強了我們用戶社群內的社會紐帶。我們的方法使付費家庭用戶增加了 1.1%，家庭內的簽約主播增加了 1.5%，家庭群組中的每日活躍用戶增加了 [6.2%]。

We also simplified and upgraded Bigo Live's homepage and rolled out -- refined the AI driving content recommendation algorithm that better catered to our users' preference and their real-time feedback. This resulted in sequentially increase of 1.1% in next-day user retention and 5.4% in average viewer time spent per live session. Enhancements to livestreaming rooms tools and interactive features contributed to a 5.3% sequential rise in average during per live session. And 4.4% sequential increase in the number of users going live in multi-guest rooms.

我們也對Bigo Live首頁進行了簡化和升級，並推出了——完善的AI駕駛內容推薦演算法，更能滿足用戶的喜好和即時回饋。這使得隔日用戶留存率較上季增加了 1.1%，觀看者每次直播會話的平均觀看時間較上季增加了 5.4%。直播間工具和互動功能的增強使得每次直播會話的平均觀看人數較上季增加了 5.3%。入住多客房的用戶數量較上季增加 4.4%。

Next, let's take a look at Likee. In the first quarter, Likee's revenue continued to recover year-over-year and then it maintained its profitability. Advertising revenue grew by 1.1x on an annual basis and the DAU in the core European market maintained sequential growth. Likee's recently launch of interactive gaming features has been instrumental in breaking the ice and fostering connections between users, leading to substantial growth in paying users.

接下來我們就來看看Likee吧。一季度，Likee的營收較去年同期繼續恢復，隨後保持了獲利能力。廣告收入較去年同期成長1.1倍，歐洲核心市場DAU維持較上季成長。 Likee 最近推出的互動遊戲功能有助於打破僵局並促進用戶之間的聯繫，從而導致付費用戶大幅成長。

During the fourth quarter, Likee launched a series of engaging community events for creators, users and brands. This includes the global Likee Party and MENA Gala in the Middle East cohosted with Bigo Live as Likee continued to enhance its creator services and expanded its optimization tools and incentives for premium creators, its number of core creators increased by 13.6% quarter-over-quarter.

第四季度，Likee 為創作者、用戶和品牌推出了一系列引人入勝的社群活動。其中包括與Bigo Live聯合舉辦的全球Likee Party和中東MENA Gala，Likee持續增強創作者服務，擴大對優質創作者的優化工具和激勵，核心創作者數量環比增長13.6% 。

Finally, turning to Hago, Hago sustained a positive operation cash flow during the first quarter. Hago's implementation of more gamified interactions and paid features has effectively boosted user engagement and monetization. A standout success was the rollout of the Fly Across the World event spanning Hago's major operation countries. By participating in the event users could travel virtually to various countries, collect treasures, claim and nurture their travel companion pets and tip virtual gifts tailored to each location's, unique culture and traditions. The event received enthusiastic feedback with nearly 1/3 of Hago's total paid user participating. User engagement on Hago also increased notably with daily average time spent in social channels, rising by 2.8% to 102 minutes. And the time spent in multi-guest audio livestreaming rooms up by 2.9% from the previous quarter.

最後，轉向哈戈，哈戈在第一季保持了正的營運現金流。 Hago實施更多遊戲化互動和付費功能，有效提升了用戶參與度和變現能力。在 Hago 的主要營運國家/地區推出「飛越世界」活動取得了巨大成功。透過參加活動，用戶可以虛擬地前往各個國家，收集寶藏，認領和飼養他們的旅行伴侶寵物，並贈送根據每個地點的獨特文化和傳統量身定制的虛擬禮物。此活動反應熱烈，Hago付費用戶總數近1/3參與。 Hago 上的用戶參與度也顯著增加，每日均在社群管道上花費的時間增加了 2.8% 至 102 分鐘。多人音訊直播間時長季增2.9%。

To sum up, we are off to a good start in 2022 (sic) [2024]. Bigo has sustained its year-over-year revenue recovery trajectory while further diversifying its revenue mix. The group has delivered profit growth. Looking ahead, we will continue to furnish our product experience and drive operational innovations. At the same time, we will further optimize our efficiencies to propel sustainable profitable growth across our global business.

總而言之，我們在 2022 年（原文如此）[2024] 有了一個好的開始。 Bigo 保持了同比收入復甦的軌跡，同時進一步實現了收入組合的多元化。該集團實現了利潤成長。展望未來，我們將繼續提供產品體驗並推動營運創新。同時，我們將進一步優化效率，推動全球業務的可持續獲利成長。

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 the details, we would like to remind you that despite the latest development in the sale of YY Live. To the date of this press release, they have not obtained control over YY Live, and therefore, have not consolidated the business.

謝謝，大衛。大家好。在詳細介紹之前，我們想提醒您，儘管 YY Live 的銷售取得了最新進展。截至本新聞稿發布之日，他們尚未獲得 YY Live 的控制權，因此尚未整合業務。

The financial results presented in our press release and this conference call primarily consisted of Bigo and all other segments, excluding YY Live. I will now provide a recap of some key financial highlights for the first quarter.

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 和所有其他部門，不包括 YY Live。我現在將回顧第一季的一些關鍵財務亮點。

Overall, we observed improving fundamentals supported by BIGO's continued top line recovery and efficiency improvement at the group level. Our total net revenues were $564.6 million in the first quarter. Revenues from BIGO segment were $505.2 million, up by 8% year-over-year. In particular, BIGO's non-live streaming revenues were $63 million, which was up substantially year-over-year primarily due to the increase of advertising revenues.

整體而言，我們觀察到 BIGO 持續的營收復甦和集團層面效率的提升支撐著基本面的改善。第一季我們的總淨收入為 5.646 億美元。 BIGO 部門的營收為 5.052 億美元，年增 8%。其中，BIGO的非直播收入為6,300萬美元，較去年同期大幅成長，主要得益於廣告收入的成長。

Geographically speaking, as we prioritized to allocate our operational resources towards developed countries. Our revenues from developed countries was up by double digit year-over-year outperforming other regions. Cost of revenues for the quarter decreased to $369.2 million among which our revenue-sharing fees and content costs increased to $268.4 million. BIGO's cost of revenues was $328.6 million, which was up year-over-year, consistent with a rebound in revenue and elevated creator support during the quarter.

從地理位置上來說，我們優先將營運資源配置到已開發國家。我們來自已開發國家的營收年增兩位數，表現優於其他地區。本季收入成本下降至 3.692 億美元，其中收入分成費用和內容成本增加至 2.684 億美元。 BIGO 的收入成本為 3.286 億美元，同比增長，這與本季度收入的反彈和創作者支持的增加相一致。

Gross profit was $195.4 million in the quarter with a gross margin of 34.6%. BIGO's gross profit was [$176.6] million with a gross margin of 35%. BIGO's gross margin was lower year-over-year due to change of revenue mix and higher contribution of BIGO Audience Network advertising revenues.

該季度毛利為 1.954 億美元，毛利率為 34.6%。 BIGO 的毛利為[1.766 億美元]，毛利率為35%。由於收入結構的變化以及BIGO Audience Network廣告收入的貢獻增加，BIGO的毛利率較去年同期下降。

Our group's operating expenses for the quarter were $195.4 million compared with $205.3 million in the same period of 2023 Among the operating expenses, R&D expenses decreased to $69 million from $75.8 million, primarily due to decreased personnel expenses and share-based compensation expenses.

我們集團本季的營運費用為 1.954 億美元，而 2023 年同期為 2.053 億美元。

Our sales and marketing expenses decreased to $94.6 million from $97.6 million in the same period of 2023. BIGO's total operating expenses for the quarter were $129.5 million. This was slight year-over-year, while its total operating expenses ratio was 25.6% during the quarter, down from 27.6% last year.

我們的銷售和行銷費用從 2023 年同期的 9,760 萬美元減少到 9,460 萬美元。與去年同期相比略有下降，本季總營運費用率為 25.6%，低於去年的 27.6%。

Our group's GAAP operating income for the quarter was $3.5 million. And the group's non-GAAP operating income for the quarter which excludes SBC expenses, amortization of intangible assets from business acquisitions, not on the consolidation and the disposal of subsidiaries as well as impairment of goodwill and investments was $24.8 million in this quarter, with non-GAAP operating income margin of 4.4%. BIGO's GAAP operating income for the quarter was $50.4 million and BIGO's non-GAAP operating income was $63 million representing a non-GAAP operating income margin of 12.5% (sic) [12.9%]. The GAAP and non-GAAP operating loss for All Other segment during the quarter was further narrowed to $46.8 million and $38.2 million on a sequential basis. Respectively, despite the negative impact of seasonality.

我們集團本季的 GAAP 營業收入為 350 萬美元。該集團本季的非 GAAP 營業收入（不包括 SBC 費用、業務收購產生的無形資產攤銷、子公司合併和處置以及商譽和投資減值）為 2,480 萬美元，其中非-公認會計原則營業利潤率為4.4%。 BIGO 本季的 GAAP 營業收入為 5,040 萬美元，BIGO 的非 GAAP 營業收入為 6,300 萬美元，非 GAAP 營業利潤率為 12.5%（原文如此）[12.9%]。本季所有其他部門的 GAAP 和非 GAAP 營運虧損環比進一步收窄至 4,680 萬美元和 3,820 萬美元。分別儘管受到季節性的負面影響。

group's GAAP net income attributable to controlling interest of JOYY in the quarter was $45.3 million compared to $28 million in the same period of 2023. GAAP net income margin was 8% in the first quarter of 2024 compared to 4.8% in the same period of 2023. BIGO's GAAP net income in the quarter was $69 million with a GAAP net margin of 12.1%, up from 9.3% in the same period last year.

集團本季歸屬於歡樂集團控股權益的 GAAP 淨利為 4,530 萬美元，而 2023 年同期為 2,800 萬美元。 GAAP 淨利為6,900 萬美元，GAAP 淨利率為12.1%，高於去年同期的9.3%。

Non-GAAP net income attributable to controlling interest of JOYY in the quarter was $67.2 million, compared to $49.9 million in the same period of 2023. The group's non-GAAP net income margin was 11.9% in the quarter, compared to 8.5% in the same period of 2023. BIGO's non-GAAP net income was $71.2 million compared with $66.8 million in the same period of 2023. BIGO's non-GAAP net margin was 14.9% in the quarter, up from 12.1% in the same period last year.

本季歸屬於歡樂集團控股權益的非 GAAP 淨利潤為 6,720 萬美元，而 2023 年同期為 4,990 萬美元。年同期。

For the first quarter of 2024, we booked net cash inflows from operating activities of $75 million. We made a healthy balance sheet with a strong cash position of $3.6 billion as of March 31, 2024. In the first quarter, we continued to enhance returns to shareholders and repurchased an additional of approximately $54.5 million of our shares. As of the end of March, we still have around $472 million unutilized quota under our current share repurchase program. We intend to actively utilize our current share repurchase program and proceed with steady execution of additional share buyback in 2024.

2024 年第一季度，我們登記的營業活動現金流入淨額為 7,500 萬美元。截至 2024 年 3 月 31 日，我們的資產負債表狀況良好，擁有 36 億美元的強勁現金狀況。截至 3 月底，我們目前的股票回購計畫仍有約 4.72 億美元未使用配額。我們打算積極利用目前的股票回購計劃，並在 2024 年穩步執行額外的股票回購。

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 be uneven across different markets and there may be short-term fluctuations in user paying segment. At group level, we expect our net revenues for the second quarter of 2024 to be between $538 million and $569 million. This forecast reflects our preliminary views on the market and operational conditions, which are subject to changes.

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，由於全球宏觀情勢持續存在不確定性，我們意識到不同市場的復甦步伐可能不平衡，用戶付費領域可能會出現短期波動。在集團層面，我們預計 2024 年第二季的淨收入將在 5.38 億美元至 5.69 億美元之間。該預測反映了我們對市場和營運狀況的初步看法，這些看法可能會改變。

Looking forward, we will remain dedicated to our strategic priorities, optimizing product and innovating our business to create value for our users and stakeholders. We continue to execute our ROI-oriented operational strategy to deliver profitable, sustainable growth.

展望未來，我們將繼續致力於我們的策略重點，優化產品和創新我們的業務，為我們的用戶和利害關係人創造價值。我們持續執行以投資報酬率為導向的營運策略，以實現獲利、永續成長。

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 Henry Sun with JPMorgan.

（操作員指令）您的第一個問題來自摩根大通的 Henry Sun。

(foreign language) My question is about the revenue in Bigo Live. Could the management share the revenue outlook for 2024? And what are the expected trend for Bigo Live by region in the second half of this year?

（外語）我的問題是關於Bigo Live的收入。管理階層能否分享2024年的收入展望？今年下半年Bigo Live各地區的預期走勢如何？

(foreign language)

（外語）

[Interpreted] This is David. I will take a question. First, let's review the monetization trend for Q1. In the first quarter, BIGO's 3 core products saw positive year-over-year growth in their live streaming revenue, although there was a Q-on-Q decline primarily due to the impact of a low season. The current revenue recovery is primarily driven by the growth in paying users while our ARPU is still showing a year-over-year decline looking at the trends across different markets.

[翻譯] 這是大衛。我將提出一個問題。首先，我們回顧一下第一季的變現趨勢。一季度，BIGO 3大核心產品直播營收年增，但主要受淡季影響較上季有所下降。目前的營收復甦主要是由付費用戶的成長所推動的，而從不同市場的趨勢來看，我們的 ARPU 仍呈現同比下降趨勢。

The revenue in developed countries maintained double-digit growth year-over-year in the first quarter, while other regions such as Middle East and Southeast Asia, have not yet returned to recovery trends.

已開發國家第一季營收年增兩位數成長，而中東、東南亞等其他地區尚未恢復復甦趨勢。

Taking the ARPU decline and uneven trend across different regions, we believe that uncertainties and risks still persist regarding the global macro environment. Therefore, we still need to remain focused and targeted, spend our money wisely with our ROI and efficiency as the top priorities, seeking a healthy growth based on stable profitability and healthy cash flow, maintaining a targeted and focused operational strategy actually requires the combined efforts of multiple teams, including our user acquisition, our content operation and our content recommendation algorithm team.

從ARPU下降以及不同地區的不平衡趨勢來看，我們認為全球宏觀環境的不確定性和風險仍然存在。所以，我們還是要保持專注、有針對性，把錢花在刀刃上，把投資回報率和效率放在第一位，在穩定的盈利能力和健康的現金流的基礎上尋求健康的增長，保持有針對性、有針對性的經營策略其實需要大家共同努力。

And these actually involves the in-depth analysis of different demographics of users, content and also [chipping] behavior and their ROI. And based on those data, we then flexibly adjust our advertising spend, our content recommendation and our monetization-driven activities accordingly, making sure these adjustments are coordinated and synchronized while -- during that process, we figured that actually our platform's diverse culture provides extra and unique emotional value to users. And those who value such [ad spends] tend to have a higher ARPU than the overall average and exhibit very strong loyalty, therefore, we will continue to uphold our value to cultivate a diverse and inclusive culture. And combined with our targeted operational strategy and amplify our advantages of diverse culture and multi-market operation.

這些實際上涉及對不同用戶群體、內容以及[碎片]行為及其投資回報率的深入分析。然後，根據這些數據，我們相應地靈活調整我們的廣告支出、內容推薦和貨幣化驅動的活動，確保這些調整是協調和同步的，同時，在此過程中，我們發現實際上我們平台的多元化文化提供了額外的價值以及對使用者獨特的情感價值。而那些重視這種[廣告支出]的人往往擁有高於整體平均水準的ARPU，並且表現出非常強的忠誠度，因此，我們將繼續秉承我們的價值觀，培養多元化和包容性的文化。並結合我們有針對性的營運策略，放大我們多元文化和多市場運作的優勢。

And looking ahead to the revenue trend in the following quarters, first of all, for Q2 because of the influence of Ramadan and the celebration of Eid during which we believe users' offline social activities will increase and also together with some of our optimization of content policies in certain regions, we expect a relatively softer Q2, and that was reflected in our current guidance.

展望接下來幾季的營收趨勢，首先是Q2，因為齋戒月和開齋節的影響，我們相信期間用戶的線下社交活動會增加，再加上我們對內容的一些優化在某些地區的政策中，我們預計第二季將相對疲軟，這也反映在我們當前的指導中。

However, our -- given that we expect to have elevated level of operational activities and marketing activities in the second half of the year, we do expect Bigo's revenue growth will be better in the second half of the year. And for the full year of '24, we're still expecting BIGO to maintain revenue recovery trend on a year-over-year basis.

然而，鑑於我們預計下半年營運活動和行銷活動水準將會提高，我們確實預期 Bigo 下半年的營收成長將會更好。對於24年全年，我們仍然預期BIGO將維持年比收入復甦的趨勢。

Your next question comes from Alex Poon with Morgan Stanley.

您的下一個問題來自摩根士丹利的 Alex Poon。

(foreign language) My question is related to our group margin trend and BIGO margin trend in the rest of the year.

（外語）我的問題是關於我們今年剩餘時間的集團利潤率趨勢和BIGO利潤率趨勢。

(foreign language)

（外語）

[Interpreted] Thank you. This is Alex. I will take your question. In the first quarter, the group's non-GAAP net profit achieved a year-over-year increase of 34.8% on first looking at BIGO's segment. BIGO's non-GAAP net profit grew by 25.3% year-over-year. And the amount of non-GAAP operating profit was flattish in line with our expectations.

[已翻譯] 謝謝。這是亞歷克斯。我會回答你的問題。第一季度，從BIGO業務來看，該集團的非公認會計準則淨利潤年增34.8%。 BIGO 的非 GAAP 淨利潤年增 25.3%。非公認會計原則營業利潤與我們的預期持平。

In Q1, BIGO's non-GAAP gross margin was 35% declining year-over-year, mainly due to the strategic upgrade of BIGO's advertising business and some change in the revenue mix. Excluding that impact, BIGO's Q1 gross margin is consistent with our expectation for a low season.

第一季度，BIGO 的非 GAAP 毛利率年減 35%，主要是由於 BIGO 廣告業務的策略升級以及收入結構的一些變化。排除這一影響，BIGO 第一季的毛利率與我們對淡季的預期一致。

In terms of operating expenses, thanks to our continued cost optimization and improvement of our operational efficiency, BIGO's operating expenses increased by a slower rate than its revenue growth. Regarding the all other segments, despite the impact of a low season and also the proactive adjustment of certain noncore audio live streaming business that we did in last year, the segment continued to book reduced losses -- reduced operating losses in Q1 on a sequential basis with its non-GAAP operating losses narrowing by 2.1% Q-o-Q.

營運費用方面，得益於持續的成本優化和營運效率的提升，BIGO的營運費用增幅低於收入增幅。至於其他板塊，儘管受到淡季的影響，並且去年我們對某些非核心音頻直播業務進行了主動調整，但該板塊的虧損繼續減少——一季度經營虧損環比減少其非GAAP 運營虧損環比收窄2.1 %。

So looking ahead to the rest of 2024, we expect to continue to focus on ROI and efficiency. For BIGO segment, we expect Bigo to continue its top line recovery year-over-year and deliver a stable amount of non-GAAP operating losses, while excluding the impact of some adjustments to noncore audio live streaming business.

因此，展望 2024 年剩餘時間，我們預期將繼續專注於投資報酬率和效率。對於 BIGO 業務，我們預計 Bigo 的營收將繼續同比恢復，並實現穩定的非 GAAP 營運虧損，同時排除非核心音訊直播業務的一些調整的影響。

And for the other segment -- for the all other segment, we expect it to further narrow its non-GAAP operating losses Q-on-Q.

對於其他部門——對於所有其他部門，我們預計其非 GAAP 營運虧損將環比進一步縮小。

Your next question comes from Lei Zhang with Bank of America.

你的下一個問題來自美國銀行的張磊。

(foreign language) I want to follow up on the share repurchase plan [returned back] in the following quarter since we have repurchased U.S. dollar about $55 million in the fourth quarter.

（外語）由於我們在第四季度回購了約5500萬美元的美元，因此我想跟進下個季度的股票回購計劃。

(foreign language)

（外語）

[Interpreted] Thank you, Lei. This is Alex. I will take the question. As we've just mentioned, although that the sale of YY Live is not yet conclusive, we remain committed to returning value to our shareholders. In the first quarter, you can see that we have repurchased an additional $54.5 million worth of our shares. As of the end of Q1, we still have around $772 million unutilized quota under our current share repurchase program. We intend to continue to execute additional share repurchases and we'll strive to improve our execution consistency in '24. Our last question, please.

[翻譯]謝謝你，雷。這是亞歷克斯。我來回答這個問題。正如我們剛才提到的，儘管 YY Live 的出售尚未最終確定，但我們仍然致力於為股東回報價值。在第一季度，您可以看到我們額外回購了價值 5,450 萬美元的股票。截至第一季末，我們目前的股票回購計畫仍有約 7.72 億美元的未使用配額。我們打算繼續執行額外的股票回購，並將努力提高 24 年執行的一致性。請回答我們的最後一個問題。

Your last question comes from Yiwen Zhang with China Renaissance.

你的最後一個問題來自華興資本的張一文。

(foreign language) My question is regarding our non-livestreaming [revenue]. Can you discuss the trend there and our future plan.

（外語）我的問題是關於我們的非直播[收入]。您能談談那裡的趨勢以及我們未來的計劃嗎？

(foreign language)

（外語）

[Interpreted] Thank you. This is David. I will answer your question. Currently, our non-livestreaming revenue primarily includes advertising revenues, which could be further diverted into 2 categories, including advertising revenue generated on our own social platform and advertising revenues generated on BIGO Audience Network where we work with third-party traffic. Looking back at the year '23, we've made some progress regarding our non-livestreaming business. With BIGO's non-livestreaming revenue increased by 14% year-over-year and Likee's advertising revenue increased by nearly 2.5x year-over-year.

[已翻譯] 謝謝。這是大衛。我會回答你的問題。目前，我們的非直播收入主要包括廣告收入，可以進一步分為兩類，包括我們自己的社群平台產生的廣告收入和我們與第三方流量合作的BIGO Audience Network產生的廣告收入。回顧23年，我們的非直播業務取得了一些進展。其中BIGO的非直播收入較去年同期成長14%，Likee的廣告收入較去年同期成長近2.5倍。

And in Q1, we continue to see significant year-over-year growth in BIGO's non-livestreaming revenues. That was partially driven by the strategic upgrade of our BIGO Audience Network advertising business. Excluding the -- our network advertising revenues, BIGO's non-livestreaming revenue grew by over 50% year-over-year. Among this Likee's advertising revenue increased by 1.1x in the quarter. However, I would like to acknowledge that our advertising business is still in a relatively early stage.

在第一季度，我們繼續看到 BIGO 的非直播收入較去年同期大幅成長。這在一定程度上是由我們的 BIGO Audience Network 廣告業務的策略升級所推動的。剔除我們的網路廣告收入，BIGO 的非直播收入年增超過 50%。其中Likee的廣告收入本季成長了1.1倍。然而，我想承認我們的廣告業務仍處於相對早期的階段。

We will continue to optimize our products and services focused on growing our core market, DAU, and also our merchant advertiser corporation network. We expect to continue to expand and diversify our revenue streams and drive a long-term sustainable growth with a much diversified engine. So that was the last question. Thank you so much for joining our call. We look forward to speaking with everyone next quarter.

我們將繼續優化我們的產品和服務，專注於發展我們的核心市場、DAU 以及我們的商業廣告商公司網路。我們期望繼續擴大我們的收入來源並使其多元化，並透過多元化的引擎推動長期可持續成長。這是最後一個問題。非常感謝您加入我們的通話。我們期待下個季度與大家交談。

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

我們今天的會議到此結束。感謝您的參與。您現在可以斷開連線。

[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。