JOYY Inc (YY) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the JOYY Inc second-quarter 2024 earnings call. (Operator instructions)

女士們、先生們，感謝你們的支持，歡迎參加 JOYY Inc 2024 年第二季財報電話會議。 （操作員說明）

I'd now like to hand the conference over to your host today, Jane Xie, the company's Senior Manager of Investor Relations. Please go ahead, Jim.

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

Thank you, operator, and hello, everyone. Welcome to JOYY second-quarter 2024 earnings conference call. Joining us today are Ms. Ting Li, Chairperson and CEO of JOYY; Mr. David Xueling Li, Co-Founder and Director; and Mr. Fuyong Liu, Vice President of Finance.

謝謝接線員，大家好。歡迎參加歡聚 2024 年第二季財報電話會議。今天加入我們的有歡樂集團董事長兼執行長李婷女士；李學凌先生，共同創辦人兼董事；劉福勇先生，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.joyycom. 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.joyycom 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'd like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our latest annual report on Form-20 F and other documents filed with the SEC. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in USD.

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，請參閱我們向 SEC 提交的 Form-20 F 最新年度報告和其他文件。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 Chairperson and CEO, Ms. Ting Li. Please go ahead, Ms. Ting Li.

現在我將把電話轉給我們的董事長兼執行長李婷女士。請繼續，李婷女士。

Hello, everyone, and team. Welcome to our second quarter 2024 earnings call. This is my first time addressing you at JOYY's Chairperson and CEO. I'm truly excited to come back to and share ideas with you all. Today, we are pleased to be joined by our Founder, , who I would like to invite Xueling Li to say a few words to kick off our call. Xueling, over to you.

大家好，還有團隊。歡迎參加我們的 2024 年第二季財報電話會議。這是我第一次以 JOYY 董事長兼執行長的身份向大家發表演說。我真的很高興能回來與大家分享想法。今天，我們很高興邀請我們的創辦人李學凌加入我們的行列，我想請她說幾句話來開始我們的電話會議。雪靈，交給你了。

Thank you Li and team. Welcome, everyone. As we announced earlier this month with a Board approval, I have officially resigned this role, my role as Chairman of the Board and to Chief Executive Officer as of August history, passing the baton to Li team to oversee the company's daily management and operations. This carefully planned leadership transition marks an important milestone to drive development.

謝謝李和團隊。歡迎大家。正如我們本月稍早宣布並獲得董事會批准的那樣，我已正式辭去董事會主席和執行長的職務，並將接力棒交給李團隊，以監督公司的日常管理和營運。這次精心策劃的領導層過渡標誌著推動發展的一個重要里程碑。

It underscores our commitment to enhance our all three recovery to governments and the trends and our of advice divisional organizational capabilities to foster sustainable long-term growth. It has been an integral part of our leadership team as the (inaudible) 2016, and has played instrumental role in driving our strategic transformations and navigating key growth phases.

它強調了我們對加強對政府的所有三個復甦以及趨勢和建議部門組織能力的承諾，以促進可持續的長期成長。自 2016 年（聽不清楚）以來，它一直是我們領導團隊不可或缺的一部分，並在推動我們的策略轉型和引導關鍵成長階段方面發揮了重要作用。

Operational excellence makes her the ideal person to lead YY into its next chapter. I have complete confidence in the team and our current management team, and I'm pleased to entrust the company's leadership to her capable hands to ensure continuity and maintain our business momentum. I will remain actively involved as a member of our Board in this capacity. I look forward to offering strategic guidance and supporting (inaudible) as a way to prudently explore long-term opportunities.

卓越的營運能力使她成為帶領 YY 進入新篇章的理想人選。我對團隊和現任管理團隊充滿信心，我很高興將公司的領導權委託給她能幹的雙手，以確保連續性並保持我們的業務勢頭。我將繼續以董事會成員的身份積極參與其中。我期待提供策略指導和支持（聽不清楚），作為謹慎探索長期機會的一種方式。

With that, I'd like to hand the call back to Li team.

說到這裡，我想把電話轉給李團隊。

Thanks, (inaudible). I am grateful for your support and your trust. I look forward to building on the strong foundations you have laid. On the direct leadership, we've established our globalization strategy, and our business has achieved remarkable growth and worldwide scale. According to data AI, our flagship product ranked among the top social apps by consumer spend globally. And importantly, our business continues to generate robot cash flow together.

謝謝，（聽不清楚）。我感謝您的支持與信任。我期待著在您奠定的堅實基礎上再接再厲。在直接領導下，我們制定了全球化策略，我們的業務取得了顯著的成長和全球規模。根據 Data AI 的數據，我們的旗艦產品在全球消費者支出排名中名列前茅的社交應用程式。重要的是，我們的業務繼續共同產生機器人現金流。

This laid a strong foundation for our future, which empowers us to strike a balance between on focusing on our cost strategy in the near term, we are exploring long-term growth prospects. We uphold our coverage mission of enriching lives through technology. Moving forward, our strategy focus remains clear and the consistent.

這為我們的未來奠定了堅實的基礎，使我們能夠在專注於短期成本策略和探索長期成長前景之間取得平衡。我們秉持著透過科技豐富生活的報道使命。展望未來，我們的策略重點仍然清晰且一致。

First, we remain committed to executing on our global strategy. We will advance continue to protect innovation with a focus on the my timing, users' social interactions and accounting experience to enhance user satisfaction. We see significant growth potential in our global business, and we will leverage our strong product capabilities, and use centric approach to drive healthy expansion of our global user community.

首先，我們仍然致力於執行我們的全球策略。我們將持續推動創新，並專注於我的計時、用戶的社交互動和記帳體驗，以提升用戶滿意度。我們看到全球業務具有巨大的成長潛力，我們將利用強大的產品能力，以中心的方式推動全球用戶社群的健康擴張。

From day one, we have been dedicated to building inclusive diverse global communication. Our platform transcends geographical boundaries, allowing users from different cultures to connect, interact and form meaningful relationships. Today, what sets has apart is the truly global nature of our user community, and is the widespread crowd of (inaudible) social connections across our platform.

從第一天起，我們就致力於建立包容、多元化的全球溝通。我們的平台超越地理界限，讓來自不同文化的使用者聯繫、互動並形成有意義的關係。如今，與眾不同的是我們用戶社群的真正全球性，以及我們平台上廣泛的（聽不清楚）社交聯繫。

To fully leverage our platform's unique value, we are sharpening our ability to match our diverse global users, which we prefer content and the connection. Our R&D team constantly fine-tuned our commendation accretion to better understand our users and the content they engage ways. Our goal is to create more precise and effective connections between people and the content they love.

為了充分利用我們平台的獨特價值，我們正在增強匹配多元化全球用戶的能力，我們更喜歡內容和連結。我們的研發團隊不斷調整我們的獎勵積累，以便更好地了解我們的用戶及其參與內容的方式。我們的目標是在人們和他們喜愛的內容之間建立更精確、更有效的連結。

We are enhancing our recommendation, algorithm is crucial. It's just one part of our approach. We are also focused on innovative features that directly impact how users interact on our platforms and enhance their experience. Take a big (inaudible) last year, it creates a space for users to meet new people at several rounds of optimization.

我們正在加強我們的推薦，演算法至關重要。這只是我們方法的一部分。我們也專注於直接影響用戶在我們平台上互動方式並增強他們的體驗的創新功能。拿去年的一個大（聽不清楚）來說，它在幾輪優化中為用戶創造了結識新朋友的空間。

You match DAU penetration rate has nearly doubled in the past six months now exceeding 20%. This success has had a ripple effect, boasting Bigo Live user, trade instruction, payment conversion and (inaudible). Enhancements such as real match strengthen our competitive age and optimize that minding our user experience will remain a call moving forward.

You match DAU 滲透率在過去六個月中幾乎翻了一番，目前已超過 20%。這一成功產生了連鎖反應，包括 Bigo Live 用戶、交易指示、支付轉換和（聽不清楚）。諸如真實比賽之類的增強功能增強了我們的競爭時代，並優化了我們的用戶體驗仍然是我們前進的一個號召。

Second, validate our forecast. I'm balancing growth with operational efficiency to drive steady expansion in product and group profitability. Our global ambitions are complex, (inaudible) user acquisition and wage and payments infrastructure [scale] our management and monetization and marketing initiatives. In the long term, we aim to optimize every link in this chain to comprehensively strengthen in efficiencies and the capabilities of our global operation.

其次，驗證我們的預測。我正在平衡成長與營運效率，以推動產品和集團獲利能力的穩定擴張。我們的全球雄心壯志是複雜的（聽不清楚）用戶獲取以及工資和支付基礎設施[規模]我們的管理、貨幣化和行銷計劃。從長遠來看，我們的目標是優化鏈條上的每個環節，全面增強我們全球營運的效率和能力。

Third, we'll (inaudible) long run in major case that will further diversify our revenue and create sustainable growth. Having a year of effort of advertising, a bearing fruit with advertising playing an increasingly meaningful job in driving the bigger segment revenue recovery in 2024. However, we must acknowledge that as the scale of our new monetization streams, it currently still relatively small. We are taking a long-term view and we'll continue to nature the (inaudible) and maximize their potential.

第三，我們將（聽不清楚）長期來看，這將進一步使我們的收入多樣化並創造永續成長。經過一年的廣告努力，已取得成果，廣告在推動2024 年更大的細分市場收入復甦方面發揮著越來越重要的作用。言，目前仍相對較小。我們著眼於長遠，我們將繼續自然（聽不清楚）並最大限度地發揮其潛力。

Finally, we will continue to advance shareholder returns. In the second quarter, we repurchased additional 71.4 million worth of our shares. We will continue to actively utilize share repurchase to reward our shareholders for their long-term support.

最後，我們將繼續推進股東回報。第二季度，我們額外回購了價值 7,140 萬股的股票。我們將持續積極利用股份回購來回饋股東的長期支持。

Now let's review our operational performance during the second quarter. In the second quarter, our group revenue was $565.1 million year-over-year increase of 3.3%. Group non-GAAP net profit came in at $74 million, up 10.2% quarter-over-quarter. We also continued to record positive operating cash flow at the group level, generating a healthy $71.1 million.

現在讓我們回顧一下我們第二季的營運表現。第二季度，我們集團營收為5.651億美元，年增3.3%。集團非 GAAP 淨利為 7,400 萬美元，季增 10.2%。我們也繼續在集團層面記錄積極的營運現金流，創造了 7,110 萬美元的健康水準。

I will (inaudible) the next segment bigger, recorded revenues of $507.2 million, a year-over-year increase of 7.7% such training a top line recovery trend for the fourth consecutive quarter, notably because advertising revenue increased substantially year-over-year because non-GAAP operating profit reached $69.4 million, up 10.1% sequentially.

我將（聽不清楚）下一個細分市場規模擴大，收入達到 5.072 億美元，同比增長 7.7%，這樣的培訓將連續第四個季度實現營收復甦趨勢，特別是因為廣告收入同比大幅增長因為非GAAP 營業利潤達6,940 萬美元，較上一季成長10.1%。

Next, let's take a closer look at our products, starting with Bigo Live. In the second quarter (inaudible) recovered up by 1.6% quarter-over-quarter to $37.7 million. Our targeted strategy of relocation advertising budgets and the observation no resources to rating with high monetization potential paydown. (inaudible) year-over-year growth of 9.4% in (inaudible), 20.3% in paying users and 11% in revenue.

接下來，讓我們從 Bigo Live 開始仔細看看我們的產品。第二季（聽不清楚）季增 1.6%，達到 3,770 萬美元。我們的搬遷廣告預算的目標策略和觀察沒有資源來評級具有高貨幣化潛力的回報。 （聽不清楚）（聽不清楚）年增 9.4%，付費用戶較去年同期成長 20.3%，營收年增 11%。

While global macro uncertainties persist, where we will put (inaudible) high quality paying user growth and ROI to propel Bigo Live top line recovery. In the second quarter, we launched a series of innovative, marketing initiatives tailored to local customs and user preferences, which brought fresh diverse content to the platform and injected new energy into our user community.

儘管全球宏觀不確定性依然存在，但我們將把（聽不清楚）高品質付費用戶成長和投資報酬率放在哪裡，以推動 Bigo Live 營收復甦。第二季度，我們根據當地習俗和用戶喜好推出了一系列創新的行銷舉措，為平台帶來了新鮮多樣的內容，為我們的用戶社群注入了新的活力。

I stand out example with Bigo Live partnership with EWC from June to July. Bigo live broadcast of (inaudible) LPB and PLPG mobile event, offering users a much safe gaming experience and unique opportunities to interact directly with professional e-sports players. In June, Bigo Live also happy to package in the (inaudible) in the United States. This event allowed us to showcase Bigo Live event creator ecosystem and cutting age less dreaming features to top American content creators laying the groundwork Bigo Live to expand its [age and boots] it's performance in key markets.

我最突出的例子是 Bigo Live 與 EWC 從 6 月到 7 月的合作。 Bigo 直播（聽不清楚）LPB 和 PLPG 行動賽事，為用戶提供更安全的遊戲體驗以及與職業電競選手直接互動的獨特機會。六月，Bigo Live 也很高興在美國打包（聽不清楚）。這次活動使我們能夠向美國頂級內容創作者展示 Bigo Live 活動創作者生態系統和減少年齡夢想的功能，為 Bigo Live 擴大其在主要市場的[年齡和靴子]表現奠定基礎。

We've talked (inaudible) because live streaming experience with a suite of upgrades, including more dynamic emerging and question and simulates classroom engagement features. This enhancement (inaudible) sequential increases of 4.2% in the number of genes and 6.5% in number of users going live.

我們已經討論過（聽不清楚），因為直播串流體驗進行了一系列升級，包括更動態的新興議題和模擬課堂參與功能。這種增強（聽不清楚）使基因數量連續增加 4.2%，上線用戶數量增加 6.5%。

Finally, let's look at our other product. As we previously discussed, our other products currently contribute modestly to revenue and profit. Our main objective for this product is to enhance monetization efficiency, maintain strict cost pipeline and achieved profitability at product level. Meanwhile our observation no strategy remains focused on the core market to these products as we diverse to their fundamental features and their unique value proposition.

最後，讓我們看看我們的其他產品。正如我們之前討論的，我們的其他產品目前對收入和利潤的貢獻不大。我們對該產品的主要目標是提高貨幣化效率，保持嚴格的成本管道並在產品層面實現盈利。同時，我們觀察到，隨著我們對其基本特徵和獨特價值主張的多樣化，沒有任何策略仍然專注於這些產品的核心市場。

In the second quarter, likely remained profitable. (inaudible) growth in Europe and advertising inventory optimization contributed to a 34.7% year-over-year increase in it's (inaudible)advertising revenue. This quarter, we introduced significant upgrades to likely video to create by adding advanced to AI (inaudible) effects.

第二季度，可能仍保持獲利。歐洲（聽不清楚）的成長和廣告庫存優化使其（聽不清楚）廣告收入較去年同期成長 34.7%。本季度，我們對可能的影片進行了重大升級，透過添加高級 AI（聽不清楚）效果來創建。

This enhancements have enable the creation of a higher-quality video, leading to more diverse content and the driving 1.3% sequential increase in average DAU time spent. [Yanki] launched a series of creator (inaudible) check events and the interactive features. Having content creators deepen their connections with their core fan base. This strategy approach is yielding positive results with treasured community ties and enhanced user retention.

這些增強功能能夠創建更高品質的視頻，從而帶來更加多樣化的內容，並推動平均 DAU 花費時間環比增長 1.3%。 [Yanki]推出了一系列創作者（聽不清楚）檢視活動和互動功能。讓內容創作者加深與核心粉絲群的連結。這種策略方法正在透過珍貴的社群聯繫和增強的用戶保留率產生積極的成果。

In June, lighting hub has paid exports [spending music], (inaudible). We are standing ready. No creatures took the stage in indirect paid with (inaudible) in Europe, the event provided local users with live experience, centered around their love of animation, film, music and gaming. This initiatives underscore our commitment to involving likely into it deeply engaging platform.

六月，照明中心已支付出口[支出音樂]，（聽不清楚）。我們已做好準備。在歐洲，沒有任何生物以間接付費（聽不清楚）的方式登上舞台，該活動為當地用戶提供了現場體驗，圍繞著他們對動畫、電影、音樂和遊戲的熱愛。這些措施強調了我們對參與深度參與平台的承諾。

Finally, let's look at Hago. In the second quarter, Hago (inaudible)it's positive operating cash flow. We continued to enhance Hago with new features, including (inaudible) screens, interactive game invoid rooms and choose to click [someone] standing members into live sessions. These upgrades delivered a positive impact on user engagement during this second quarter.

最後我們來看看哈哥。在第二季度，Hago（聽不清楚）是正營運現金流。我們繼續透過新功能增強 Hago，包括（聽不清楚）螢幕、互動遊戲房間以及選擇點擊 [某人] 站立成​​員進入即時會話。這些升級對第二季度的用戶參與度產生了積極影響。

Average time spent per user in Hago social channels increased sequentially to run (inaudible) contains five steady improvement in the product next day retention rate. Hago also innovated on the monetization front, launching activities that are the future customized version data, along with collection and ranking features.

每位使用者在 Hago 社群管道上花費的平均時間連續增加（聽不清楚）包含五個產品隔日保留率的穩定提高。 Hago也在變現方面進行了創新，推出了未來定製版數據的活動，以及收藏和排名功能。

The campaign was a major hate, engaging more than 60% of total paying users. Looking ahead, we will adhere to our globalization strategy. How do we innovate and (inaudible) our products, enhance user experience and strengthen our unique value proposition. Operational excellence will remain at the core of our approach as we deliver sustainable skills and create long-term value for our global communities and our shareholder.

該活動引起了極大的反感，吸引了超過 60% 的付費用戶。展望未來，我們將堅持全球化策略。我們如何創新（聽不清楚）我們的產品、增強使用者體驗並強化我們獨特的價值主張。在我們提供永續技能並為全球社區和股東創造長期價值的過程中，卓越營運仍將是我們方法的核心。

Now let's welcome the VP of Finance (technical difficulty) financial update.

現在讓我們歡迎財務副總裁（技術難度）的財務更新。

Thanks, Misty. Hello, everyone. Before I go into the details, I would like to remind you that despite the latest investment in (inaudible) to the date of this press release, we have not often control over our life, and therefore, have not consolidated the business. The financial results presented in our press release and this conference call primarily consisted of people and of other segments, excluding Bigo Live.

謝謝，米斯蒂。大家好。在詳細介紹之前，我想提醒您，儘管截至本新聞稿發布之日進行了最新投資（聽不清楚），但我們通常無法控制自己的生活，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由人員和其他部門組成，不包括 Bigo Live。

I will now provide a recap of some key financial highlights for the second quarter. Our total net revenues were $565.1 million in the second quarter, up by 3.3% year-over-year. Revenues from vehicle segment were $507.2 million, up by 7.7% year-over-year. In particular, (inaudible) live streaming revenues were $67.8 million, which was up substantially year-over-year, primarily due to their increase of advertising revenues.

我現在將回顧第二季度的一些關鍵財務亮點。第二季我們的總淨收入為 5.651 億美元，年增 3.3%。汽車業務收入為5.072億美元，年增7.7%。特別是，（聽不清楚）直播收入為 6,780 萬美元，年比大幅成長，主要是因為廣告收入的增加。

Geographically speaking, as we prioritized to allocate our operational resources towards developed countries, our revenues from developed countries was up by double digits year-over-year. Bigo's Cost of revenues for the quarter increased to $366.2 million, among which our revenue share increased and content costs increase $263.9 million.

從地理來看，由於我們的經營資源優先向已開發國家配置，我們來自已開發國家的營收年增了兩位數。 Bigo 本季的營收成本增加至 3.662 億美元，其中我們的營收份額增加，內容成本增加 2.639 億美元。

Bigo's cost of revenues was $327.7 million, which was up year-over-year, mainly driving by increased traffic acquisition costs paid to third party partners either you're releasing to our advertising business. Gross profit was $198.9 million in the quarter with a gross margin of 35.2%. Bigo's gross profit was $139.4 million with a gross margin of 35.4%. Bigo's gross margin was lower year-over-year due to change of revenue mix with higher contribution of Bigo's network advertising revenue.

Bigo 的收入成本為 3.277 億美元，年成長，主要是由於支付給第三方合作夥伴（無論您發布給我們的廣告業務）的流量獲取成本增加所致。該季度毛利為 1.989 億美元，毛利率為 35.2%。 Bigo的毛利為1.394億美元，毛利率為35.4%。由於收入結構的變化以及Bigo網路廣告收入的貢獻增加，Bigo的毛利率年減。

Our gross operating expenses for the quarter were $198.7 million compared with $191.7 million in the same period of 2023. Among the operating expenses, R&D expenses decreased to $69.9 million from $75.5 million, primarily due to decreased salary and welfare and share based compensation expenses.

我們本季的總營運費用為 1.987 億美元，而 2023 年同期為 1.917 億美元。

General and administrative expenses increased to $40.7 million from $29 million in the same period of 2023, primarily due to impairment losses of equity investments. Bigo's total operating expenses for the quarter $121.6 million decreased from $125 million in the same period of 2023, primarily due to decreased issues and marketing expenses.

一般及管理費用從 2023 年同期的 2,900 萬美元增加到 4,070 萬美元，主要是由於股權投資減損損失。 Bigo 本季的總營運費用為 1.216 億美元，較 2023 年同期的 1.25 億美元減少，主要是因為問題和行銷費用減少。

Our group's GAAP operating income for the quarter was $2.3 million. Our group's non-GAAP operating income for the quarter, which excludes SBC expenses, amortization of intangible assets from business acquisitions, gain on deconsolidation and the disposal of subsidiaries, as well as impairment of goodwill and investments was $13 million in this quarter with a non-GAAP operating income margin of 5.3%.

我們集團本季的 GAAP 營業收入為 230 萬美元。我們集團本季的非 GAAP 營業收入（不包括 SBC 費用、業務收購產生的無形資產攤銷、分拆收益和處置子公司以及商譽和投資減值）為 1,300 萬美元，非-公認會計原則營業利潤率為5.3%。

Bigo's GAAP operating income for the quarter was $58 million and Bigo's non-GAAP operating income was $69.4 million, representing a non-GAAP operating income margin of [30.7%]. Our gross GAAP net income attributable to controlling interest of JOYY in the quarter was $52.1 million compared to $155.1 million in the same period of 2023.

Bigo 本季的 GAAP 營業收入為 5,800 萬美元，Bigo 的非 GAAP 營業收入為 6,940 萬美元，非 GAAP 營業利潤率為 [30.7%]。本季歸屬於歡樂集團控股權益的 GAAP 淨利潤總額為 5,210 萬美元，而 2023 年同期為 1.551 億美元。

GAAP net income margin was 9.2% in the second quarter of 2024 compared to 28.3% in the same period of 2023. Our GAAP net margin was higher last year due to realized gains from the disposal of certain equity investments of $77.7 million, and the foreign currency exchange gains of $20.3 million.

2024 年第二季的 GAAP 淨利率為 9.2%，而 2023 年同期為 28.3%。貨幣匯兌收益為2,030 萬美元。

Bigo's GAAP net income in the quarter was $64.6 million with a GAAP net margin of 12.7%. Non-GAAP net income attributable to controlling interest of JOYY in the quarter was $74 million compared to $97.3 million in the same period of 2023. The gross non-GAAP net income margin was 13.1% in the quarter compared to 17.8% in the same period of 2023.

Bigo 本季的 GAAP 淨利潤為 6,460 萬美元，GAAP 淨利率為 12.7%。本季歸屬於歡樂集團控股權益的非 GAAP 淨利潤為 7,400 萬美元，而 2023 年同期為 9,730 萬美元。

Bigo's non-GAAP net income was [$77.8 million] compared with $99.7 million in the same period of 2023. Bigo's non-GAAP net margin was 15.3% in the quarter compared with 21.2% in the same period last year. Bigo's net (inaudible) margin was higher last year due to foreign currency exchange gains of $22 million.

Bigo 的非 GAAP 淨利潤為[7,780 萬美元]，而 2023 年同期為 9,970 萬美元。由於外匯收益達 2,200 萬美元，Bigo 去年的淨（聽不清楚）利潤率較高。

For the second quarter of 2024, we booked net cash inflows from operating activities of $71.1 million. We remain a (technical difficulty) with a strong cash producing $3.3 billion as of June 30 of 2024. In the second quarter, we continued to enhance returns to shareholders, and repurchased an additional approximately $71.4 million most of our shares.

2024 年第二季度，我們登記的營業活動現金流入淨額為 7,110 萬美元。截至 2024 年 6 月 30 日，我們仍然擁有強勁的現金產出 33 億美元（技術難度）。

Our Board has also authorized to extend our existing share repurchase program for another 12 months period about each original expiry date and (inaudible) , we may repurchase up to 400 million of our shares till the end of November 2025.

我們的董事會也授權將我們現有的股票回購計畫在每個原定到期日再延長 12 個月（聽不清楚），我們可以在 2025 年 11 月底之前回購最多 4 億股股票。

Turning now to our business outlook. As we are fully dedicated to stressing the (inaudible) and sustainability of our global operations, we have taken some proactive actions to optimize our content costs and about gradually introducing some adjustments to Bigo's audio live streaming product to enhance risk control. We anticipate such adjustment might cause near-term fluctuation of Bigo's top line.

現在轉向我們的業務前景。由於我們全力強調全球營運的（聽不清楚）和永續性，因此我們採取了一些積極的行動來優化我們的內容成本，並逐步對 Bigo 的音訊直播產品進行一些調整，以加強風險控制。我們預計此類調整可能會導致 Bigo 營收的近期波動。

At group level, we expect our net revenues for the third quarter of 2024 to be between $555 million and $569 million. This forecast reflects our preliminary views on the market and operational conditions, which are subject to changes.

在集團層面，我們預計 2024 年第三季的淨收入將在 5.55 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 adhering to our globalization strategy, optimizing product and innovating our operations to create value for our users and shareholders. We will continue to exclude our (inaudible) intake of regional strength to able to deliver a profitable, sustainable growth.

展望未來，我們將持續聚焦策略重點，堅持全球化策略，優化產品、創新運營，為使用者和股東創造價值。我們將繼續排除我們（聽不清楚）吸收區域實力，以實現獲利、永續成長。

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

我們準備好的演講到此結束。接線員，我們想開始提問。

Thomas Chong, Jefferies.

托馬斯莊，杰弗里斯。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

Thanks, management, for taking my question. My first question is about the company strategy in the future. Should we expect there will be any changes after the recent management change?

謝謝管理層回答我的問題。我的第一個問題是關於公司未來的策略。在最近的管理層變動之後，我們是否應該預期會有任何變化？

And my second question is about the Bigo outlook. Can management share about the revenue trend in the second half as well as the trend, of course, of different geographies. Thank you.

我的第二個問題是關於 Bigo 的前景。管理階層能否分享下半年的營收趨勢，當然還有不同地區的趨勢。謝謝。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

Thank you. Thomas, this is Ting Li. I will answer your first question and then (inaudible) can answer your second question. For the first question, I think we have go through this in the prepared remarks that our strategic priorities will remain quite consistent and I will elaborate in my following parts.

謝謝。湯瑪斯，這是李婷。我將回答您的第一個問題，然後（聽不清楚）可以回答您的第二個問題。關於第一個問題，我想我們在準備好的發言中已經講過這一點，我們的策略重點將保持相當一致，我將在下面的部分詳細闡述。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

First, we will remain committed to our globalization strategy day.

首先，我們將繼續致力於我們的全球化策略日。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

And second specifically regarding to our product operations, we will continue to strengthen our unique value proposition as a truly global social platform. If you take an example, Bigo Live is in itself, it's a highly globalized product and our users can actually watch content in over 30 languages. And our users have actually demonstrated a content consumption platform where they enjoy cross-regional social interactions.

其次，特別是關於我們的產品運營，我們將繼續加強我們作為真正的全球社交平台的獨特價值主張。舉個例子，Bigo Live 本身就是一個高度全球化的產品，我們的使用者實際上可以觀看 30 多種語言的內容。我們的用戶實際上已經展示了一個享受跨區域社交互動的內容消費平台。

For example, if you look at our users from US, UK or other developed countries, actually around 35% to 50% of their virtual gifts go to creators from other regions. So going forward, the next phase of our operational optimization will be basing on our users across regional social activities in their pattern to ensure an effective content cultivation, and also a matching of their social networks.

例如，如果你看看我們來自美國、英國或其他已開發國家的用戶，實際上他們大約 35% 到 50% 的虛擬禮物都流向了來自其他地區的創作者。所以接下來我們下一階段的營運優化將會根據不同區域的使用者的社交活動模式來保證有效的內容培育，以及他們的社群網路的匹配。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

And thirdly, given the current macro environment, we will continue to have higher demand over the sophistication of our localized operations, and we will demand a further improvement of our operating efficiency. Our goal is to achieve a steady profitability growth of our core business.

第三，在目前的宏觀環境下，我們對在地化經營的精細程度將繼續提出更高的要求，要求進一步提高我們的營運效率。我們的目標是實現核心業務獲利能力的穩定成長。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

And lastly, we will continue to explore new revenue streams and profit streams. Currently we do have some development in our new businesses, but they're still relatively young and early in an early stage of development. We will take a long-term view and continue to nurture them, while we will continuously push for improvement in their economic and financial health every year. Our goal is to develop a sustainable and multi tier growth engine for the group's sustainable long-term growth.

最後，我們將繼續探索新的收入來源和利潤來源。目前我們的新業務確實有了一些發展，但它們還相對年輕，還處於早期發展階段。我們將著眼長遠，繼續培育他們，同時不斷推動他們經濟金融健康狀況逐年改善。我們的目標是為集團的可持續長期成長開發可持續的、多層次的成長引擎。

Thank you, Alex will answer the second question.

謝謝，亞歷克斯將回答第二個問題。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

This is Alex, I will take your second question on based on our second, our performance in the second quarter, the live streaming revenue, Bigo's three core global products has actually maintained a positive growth. And if we look behind the main driver, it's still the growth of paying users. It is driving our revenue recovery, which has maintained a high single digit growth year-over-year.

這是Alex，我根據我們的第二個，我們第二季度的表現，直播收入，Bigo的三大核心全球產品實際上保持了正增長來回答你的第二個問題。如果我們看看背後的主要驅動力，它仍然是付費用戶的成長。它正在推動我們的收入復甦，使我們的收入比去年同期保持較高的個位數成長。

While our RPU has, our live streaming RPU has continued to fluctuate. Looking at the performances among different regions, developed countries have consistently outperform other regions both in terms of sequential and year-over-year growth rates in the past quarters. While looking ahead to the second quarter to the second half of the year, while we enter into a period of elevated operating activities, we expect the streamers and users to be more active on indirect activities likely to increase. Therefore, some regions might be likely to return to positive revenue growth sequentially.

雖然我們的 RPU 有所變化，但我們的直播 RPU 仍在持續波動。從不同地區的表現來看，已開發國家在過去幾季的環比成長率和年成長率上始終優於其他地區。展望第二季到下半年，雖然我們進入了經營活動增加的時期，但我們預期主播和使用者在間接活動上會更加活躍，可能會增加。因此，一些地區的收入可能會連續恢復正成長。

And that's what we are seeing, already seeing in the Middle East. However, to improve efficiency and enhance the sustainability of our global business, we have taken some proactive actions to optimize Bigo live content costs and also we are gradually making some additional adjustments on to Bigo's non-core audio live streaming products starting in Q3.

這就是我們所看到的，已經在中東看到的。然而，為了提高效率並增強我們全球業務的可持續性，我們已經採取了一些積極的行動來優化Bigo直播內容成本，並且我們從第三季度開始逐步對Bigo的非核心音頻直播產品進行一些額外的調整。

We expect these adjustments mainly to short-term fluctuation of Bigo's live streaming revenue, which we have already taken those into account when we deliver the current revenue guidance for Q3. But we like to emphasize that on the adjustments that we're making today, aiming at refining a healthier profit model and building our sustainable business ecosystem and these short-term fluctuations will not affect our long-term commitment to continuously drive for a long-term growth of our revenue and profit of our global business.

我們預計這些調整主要是由於 Bigo 直播收入的短期波動，我們在提供當前第三季收入指引時已經考慮到了這些波動。但我們想強調的是，我們今天所做的調整，旨在完善更健康的盈利模式，建立可持續的商業生態系統，這些短期波動不會影響我們持續推動長期發展的長期承諾。收入和利潤的長期成長。

And lastly, on for the full year, of the year '24, given that this our advertising business has maintained such a strong growth momentum, we still expect the Bigo segment to achieve single digit revenue growth for the full year.

最後，就24年全年而言，鑑於我們的廣告業務保持瞭如此強勁的成長勢頭，我們仍然預計Bigo業務將全年實現個位數收入成長。

Next question, please.

請下一個問題。

Lei Zhang, Bank of America.

張磊，美國銀行。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

Thanks, management for taking my question. Just I want to get more color on the margin trend for Bigo and as a group in second half. Thank you.

謝謝管理層回答我的問題。只是我想在下半場對比戈和整個團隊的利潤率趨勢有更多的了解。謝謝。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

Thank you Lei Zhang. This is Alex, I will answer your question. First, let's look at our profit details in the second quarter. The group's non-GAAP net profit achieved a 10.2% Q-o-Q growth. And within that, Bigo segment, non-GAAP operating profit was up by 10.1% sequentially, mainly due to the optimization of Bigo Live content cost, which drove an improvement in Bigo's gross margin and on the operating expense side, Bigo's sales and marketing expenses were also down meaningfully Q-o-Q on primarily due to our reduced spending on user acquisition due to our higher our requirements on ROI.

謝謝張磊。我是亞歷克斯，我來回答你的問題。首先，我們來看看我們第二季的利潤明細。該集團的非公認會計準則淨利潤季增10.2%。其中，Bigo部門的非GAAP營業利潤環比增長10.1%，主要得益於Bigo Live內容成本的優化，帶動了Bigo毛利率的改善，而在營業費用方面，Bigo的銷售和營銷費用環比也大幅下降，主要是由於我們對投資回報率的要求更高，因此我們在用戶獲取方面的支出減少了。

Looking ahead to the second half of the year, as we continuing to optimize our content cost and our user acquisition strategy, we expect Bigo Live's margins to remain stable or even deliver a slight increase. However, considering the accumulated negative impact of the adjustment that we made to Bigo's non-core audio live streaming product, we expect on our profits, we expect the absolute amounts of Bigo's segment non-GAAP operating profit to modestly decline compared to last year. And for the all other segment, we're expecting the amount of its total non-GAAP operating loss for the full year to also narrowed slightly compared to last year.

展望下半年，隨著我們繼續優化內容成本和用戶獲取策略，我們預計Bigo Live的利潤率將保持穩定，甚至略有成長。然而，考慮到我們對 Bigo 非核心音訊直播產品進行的調整所帶來的累積負面影響，我們預計，在利潤方面，我們預計 Bigo 分部非 GAAP 營業利潤的絕對值將較去年小幅下降。對於所有其他部門，我們預計全年非公認會計原則營業虧損總額也將比去年略有收窄。

Next question, please.

請下一個問題。

[Derek Faye], Morgan Stanley.

[德瑞克·費耶]，摩根士丹利。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

Thank you management. My question would be could you showed us the latest progress of your share repurchase program and your outlook for the capital return in the future? Thanks.

謝謝管理。我的問題是，您能否向我們介紹一下您的股票回購計劃的最新進展以及您對未來資本回報的展望？謝謝。

(spoken in foreign languahe) (interpreted)

（外語）（翻譯）

Thank you. This is Tingi Li, I will answer your question. Regarding our capital return, we remain committed to return value to our shareholders. In the second quarter, we have altogether repurchased an additional of $2.3 million of our ADS and for a total consideration of USD71.4 million, which represents 3.9% of our outstanding ADS as of the end of Q1.

謝謝。我是李廷宜，我來回答你的問題。關於我們的資本回報，我們仍然致力於為股東回報價值。第二季度，我們總共回購了 230 萬美元的 ADS，總代價為 7,140 萬美元，佔截至第一季末已發行 ADS 的 3.9%。

And the Board has just authorized an extension of our unutilized share repurchase program, under which we may repurchase up to 400 million of our share. We will remain active executing our share repurchase program and continue to reward the long standing support of our shareholders.

董事會剛剛授權延長我們未使用的股票回購計劃，根據該計劃，我們可以回購最多 4 億股的股票。我們將繼續積極執行股票回購計劃，並繼續回報股東的長期支持。

Last question, please.

最後一個問題，請。

Brian Gong, Citi.

布萊恩·龔，花旗銀行。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

Thank you management for taking my question. I have a quick question on (inaudible) business, could management comment on the business trend and your sort of outlook for our ag business? Thank you.

感謝管理層回答我的問題。我有一個關於（聽不清楚）業務的快速問題，管理層能否評論一下業務趨勢以及您對我們農業業務的展望？謝謝。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

This is Tin Li, I will take your question. Looking at our advertising business performance in the second quarter, you can see that Bigo has maintained, Bigo's advertising revenue has maintained a strong growth momentum and specifically advertising revenue increased by 34.7% year-over-year.

我是李天，我來回答你的問題。看看我們第二季的廣告業務表現，可以看到Bigo一直保持著，Bigo的廣告收入保持了強勁的成長勢頭，具體來說廣告收入同比增長了34.7%。

And Bigo's Audience Network revenue increased by 12.8% quarter-over-quarter. The contribution of our non live streaming revenue, primarily advertising revenue has now contributed to 13.4% on to Bigo segment total revenue.

Bigo 的 Audience Network 營收季增 12.8%。我們的非直播收入（主要是廣告收入）目前已佔 Bigo 部門總收入的 13.4%。

(spoken in foreign language) (interpreted)

（用外語發言）（口譯）

And looking out ahead for this second half of the year, which is traditionally a peak season for advertising. We're expecting our advertising revenue to continue to grow on a sequential basis. However, it's worth noting that Bigo Audience Network, it's new adventure under it's development of our advertising business. It has grown quite substantially in the past few years, but still it is still in an early stage of development.

展望今年下半年，這通常是廣告的旺季。我們預計我們的廣告收入將繼續環比成長。不過，值得注意的是Bigo Audience Network，它是我們廣告業務發展下的新冒險。在過去幾年中，它已經有了相當大的成長，但仍處於發展的早期階段。

And although that it has already managed to achieve a positive gross margin and operating margin, it still takes time for us to accumulate scale on to drive further profit growth. We aim to continue to find our differentiated value proposition and continue to take a long-term deal to explore and refine our operations and products and steadily drive a further improvement of our market share over time.

儘管我們已經實現了正的毛利率和營業利潤率，但我們仍然需要時間來累積規模以推動利潤的進一步成長。我們的目標是繼續尋找差異化的價值主張，並繼續採取長期協議來探索和完善我們的業務和產品，並隨著時間的推移穩步推動我們的市場份額進一步提高。

Okay. So that was the last question. And thank you for joining our call. We look forward to speaking with everyone next quarter. Thank you.

好的。這是最後一個問題。感謝您加入我們的電話會議。我們期待下個季度與大家交談。謝謝。

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

謝謝。本次會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。