JOYY Inc (YY) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to JOYY Inc.'s third-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. 的 2024 年第三季財報電話會議。（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, Jane.

我現在想把會議交給今天的東道主，公司投資者關係高級經理謝珍。請繼續，簡。

Thank you, operator. Hello everyone, welcome to JOYY’s third-quarter 2024 earnings conference call. Joining us today are Ms. Ting Li, Chairperson and CEO of JOYY; and Mr. Alex Liu, the Vice President of Finance.

謝謝你，接線生。大家好，歡迎參加歡聚2024年第三季財報電話會議。今天加入我們的有歡聚董事長兼執行長李婷女士；劉先生，財務副總裁。

For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session. The financial results and webcast of this conference call are available at ir.joyy.com. A replay of this call will also be available on our website in a few hours.

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

Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our latest annual report on Form 20F 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 20F 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 US dollar.

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.

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。

Hello, everyone, I'm Li Ting. Welcome to our third-quarter 2024 earnings call. Let’s begin with a review of our overall performance during the third quarter.

大家好，我是李婷。歡迎參加我們的 2024 年第三季財報電話會議。讓我們先回顧一下我們第三季的整體業績。

During the third quarter, we effectively executed our strategic priorities, maintaining a strong focus on optimizing our products, deepening our market penetration in developed countries, and enhancing our global operational capabilities and efficiencies. These efforts yielded solid results.

第三季度，我們有效落實策略重點，重點優化產品，深化已開發國家市場滲透，提升全球營運能力與效率。這些努力取得了豐碩成果。

In the third quarter, our group revenue reached $558.7 million. Our core business segment, Bigo, recorded revenues of $496.0 million, delivering a slight year-over-year increase. Our disciplined execution has led to improvements in operational efficiency at both the BIGO segment and group level.

第三季度，我們集團營收達到 5.587 億美元。我們的核心業務部門 Bigo 的營收為 4.96 億美元，較去年同期略有成長。我們嚴格的執行力提高了 BIGO 部門和集團層面的營運效率。

Our group non-GAAP operating profit came in at $34.9 million, up 16.4% quarter over quarter. BIGO’s non-GAAP operating profit expanded to $72.9 million, up 5.0% quarter over quarter, exceeding our expectations. Excluding the impact of FX losses, BIGO’s non-GAAP net profit was also up quarter over quarter. We briefly outlined our strategic priorities in our previous earnings call.

我們集團的非 GAAP 營業利潤為 3,490 萬美元，較上季成長 16.4%。BIGO 的非 GAAP 營業利潤擴大至 7,290 萬美元，較上季成長 5.0%，超出了我們的預期。排除外匯損失的影響，BIGO 的非 GAAP 淨利潤也較上季成長。我們在先前的財報電話會議中簡要概述了我們的策略重點。

Now, let me quickly touch on each of these. First, we continued to advance our globalization strategy, enriching user interactions and content offerings while building on our unique position as a global social platform.

現在，讓我快速談談其中的每一個。首先，我們持續推動全球化策略，豐富用戶互動和內容，同時鞏固我們作為全球社交平台的獨特地位。

As we have previously mentioned, Bigo Live is a highly globalized product, offering content across 30 languages and fostering meaningful cross-regional connections. This is particularly evident among our users in developed countries, who actively engage in cross-cultural interactions. What truly sets us apart is the global nature of our user community and the organic social connections that flourish across our platform, a unique value proposition that we are committed to amplifying.

正如我們之前提到的，Bigo Live 是一款高度全球化的產品，提供 30 種語言的內容並促進有意義的跨區域連結。這在我們的已開發國家用戶中尤其明顯，他們積極參與跨文化互動。真正使我們與眾不同的是我們用戶社群的全球性以及我們平台上蓬勃發展的有機社交聯繫，這是我們致力於擴大的獨特價值主張。

To further enhance our global ecosystem, we have implemented a series of upgrades to boost the creation, quality, and distribution of content on our platform. For example, we fine-tuned our content recommendation algorithms to better facilitate content sharing within same-language regions and expand cross-regional content flow between highly interactive markets, such as North and South America.

為了進一步增強我們的全球生態系統，我們實施了一系列升級，以提高平台上內容的創作、品質和分發。例如，我們對內容推薦演算法進行了微調，以更好地促進同語言區域內的內容共享，並擴大北美和南美等高度互動的市場之間的跨區域內容流動。

We also launched global cross-regional initiatives based on user interaction patterns, such as this quarter's BIGO’s Most Talented competition. Organized by our North American team, the event brought together creators from the Americas, Southeast Asia, and Africa, highlighting our ability to unite diverse talent across high-engagement regions.

我們也推出了基於使用者互動模式的全球跨區域計劃，例如本季的 BIGO 最有才華競賽。該活動由我們的北美團隊組織，匯集了來自美洲、東南亞和非洲的創作者，凸顯了我們團結高參與度地區的多元化人才的能力。

On the technology front, we are preparing to introduce standardized global content guidelines and commence alpha testing of AI-powered real-time caption translation in select languages. These enhancements will streamline our cross-regional content delivery and better serve our users' growing appetite for global content and social connections.

在技​​術方面，我們正準備引入標準化的全球內容指南，並開始對選定語言的人工智慧即時字幕翻譯進行 Alpha 測試。這些增強功能將簡化我們的跨區域內容交付，並更好地滿足用戶對全球內容和社交聯繫日益增長的需求。

Second, we are laser-focused on operational efficiency. By optimizing every aspect of our global localized operations - from user acquisition, to KOL management, to our user engagement and monetization mechanisms - we aim to comprehensively strengthen the efficiencies and capabilities of our global operations and drive steady expansion in product and group profitability.

其次，我們高度重視營運效率。透過優化全球在地化營運的各個面向——從用戶獲取、到KOL管理、再到用戶參與和變現機制——我們旨在全面增強全球營運的效率和能力，推動產品和集團獲利能力的穩定擴張。

During the quarter, we conducted comprehensive ROI analyses across products, regions, and user acquisition channels. Leveraging these insights, we optimized our resource allocation, redirecting our advertising spending from underperforming regions towards developed countries, and focused on the acquisition of premium users with greater monetization potential.

本季度，我們跨產品、地區和用戶獲取管道進行了全面的投資回報率分析。利用這些洞察，我們優化了資源配置，將廣告支出從表現不佳的地區轉向已開發國家，並專注於獲取具有更大變現潛力的優質用戶。

As a result, Bigo Live has achieved consistent year over year and sequential user growth in developed countries, with overall ROI improving by double digits from the previous quarter, even with a 7.3% sequential reduction in its total user acquisition spending.

因此，Bigo Live 在已開發國家實現了持續的同比和環比用戶成長，整體投資回報率比上一季提高了兩位數，儘管其總用戶獲取支出環比減少了 7.3%。

In other underperforming regions, we have shifted some of our efforts from traditional advertising channels to more cost-effective user acquisition methods, such as KOL partnerships, and leveraged social features like Real Match to expand our product reach.

在其他表現不佳的地區，我們已將部分工作從傳統廣告管道轉向更具成本效益的用戶獲取方法，例如KOL合作夥伴關係，並利用Real Match等社交功能來擴大我們的產品覆蓋範圍。

These targeted initiatives underscore our commitment to cultivating a sustainable, high-quality user base while we simultaneously enhance content quality and social experiences to drive long-term user monetization potential.

這些有針對性的舉措強調了我們對培養可持續、高品質用戶群的承諾，同時提高內容品質和社交體驗，以推動長期用戶貨幣化潛力。

For Likee, we have maintained a strategic focus on our core markets in the Middle East and Europe, successfully implementing monetization through both livestreaming and advertising. This targeted approach has enabled us to achieve our initial milestone of profitability.

對Likee來說，我們維持了對中東和歐洲核心市場的策略重點，透過直播和廣告成功實現了變現。這種有針對性的方法使我們實現了盈利的最初里程碑。

To further unlock Likee’s monetization potential, we recently redirected some of its operational resources, including personnel and traffic, toward a new social livestreaming product. This means that the resources currently allocated to non-core markets, which do not contribute much to Likee’s monetization, will be further optimized, potentially leading to declines in Likee’s user metrics in the near term.

為了進一步釋放 Likee 的變現潛力，我們最近將部分營運資源（包括人員和流量）轉向新的社群直播產品。這意味著目前分配給非核心市場（對Likee的變現貢獻不大）的資源將會進一步優化，可能會導致Likee的使用者指標在短期內下降。

However, we believe this adaptive strategy will accelerate our new product development, strengthen our position in Likee’s core markets, and ultimately enhance Likee’s monetization potential in the long run.

然而，我們相信這種適應性策略將加速我們的新產品開發，加強我們在 Likee 核心市場的地位，並最終增強 Likee 的長期獲利潛力。

Third, we have continued to cultivate long-run initiatives that will further diversify our revenue streams. In the third quarter, our group non-livestreaming revenue grew 13.1% sequentially to $119.2 million, representing 21.3% of group revenue.

第三，我們繼續制定長期計劃，進一步實現收入來源多元化。第三季度，集團非直播收入較上季成長13.1%至1.192億美元，佔集團營收的21.3%。

BIGO’s non-livestreaming revenue, primarily generated from advertising, increased 15.5% quarter over quarter to $78.2 million. This growth was fueled by strong momentum in Europe and North America, underscoring our strategic initiatives and commitment to expanding our footprint in these markets.

BIGO 的非直播收入主要來自廣告，季增 15.5%，達到 7,820 萬美元。這一成長是由歐洲和北美的強勁勢頭推動的，突顯了我們的戰略舉措和擴大我們在這些市場的足跡的承諾。

Building these new initiatives into meaningful revenue streams requires patience and sustained investment. We remain committed to nurturing these opportunities to realize their full potential. We sustained our positive operating cash flow in the third quarter, generating $61.1 million at the group level. Supported by our strong cash flow and healthy financial position, we actively advanced our shareholder return initiatives.

將這些新措施轉化為有意義的收入流需要耐心和持續投資。我們仍然致力於培育這些機會，以充分發揮其潛力。第三季我們維持了正的營運現金流，集團層級產生了 6,110 萬美元的現金流。在強勁的現金流和健康的財務狀況的支持下，我們積極推進股東回報計劃。

In the third quarter, we accelerated our share repurchases, buying back an additional $117.8 million worth of our shares. With $283 million remaining unutilized under our repurchase program, we will continue to actively execute share buybacks to reward our shareholders' ongoing support.

第三季度，我們加速了股票回購，額外回購了價值 1.178 億美元的股票。由於我們的回購計畫仍有 2.83 億美元未使用，我們將繼續積極執行股票回購，以回報股東的持續支持。

Now, let’s take a closer look at our products, starting with Bigo Live. In the third quarter, we sharpened our operational strategy by prioritizing our advertising investments and operational resources toward developed countries and premium users. This targeted approach yielded strong results in developed countries, where MAUs grew 3.4% year over year and paying users increased 9.1% year over year.

現在，讓我們從 Bigo Live 開始仔細看看我們的產品。第三季度，我們強化了營運策略，將廣告投資和營運資源優先考慮針對已開發國家和優質用戶。這種有針對性的方法在已開發國家取得了良好的成果，其中每月活躍用戶年增 3.4%，付費用戶較去年同期成長 9.1%。

We also saw encouraging momentum in the Middle East, where Bigo Live’s revenue increased 5.6% sequentially. During the quarter, Bigo Live successfully organized the third season of BIGO’s Most Talented, featuring categories including music, dance, and beauty. The event attracted outstanding creators from around the world.

我們在中東也看到了令人鼓舞的勢頭，Bigo Live 的營收季增了 5.6%。本季度，Bigo Live 成功舉辦了 BIGO 最有才華第三季，節目類別包括音樂、舞蹈和美容。這項活動吸引了來自世界各地的優秀創作者。

Building on previous seasons, we introduced a more comprehensive judging system incorporating key audience engagement metrics. This allowed a seamless merger of interactive livestreaming with traditional talent show elements.

在前幾季的基礎上，我們引入了更全面的評審系統，其中納入了關鍵的觀眾參與度指標。這使得互動直播與傳統選秀元素無縫融合。

The season culminated in a grand finale broadcast live from Los Angeles on October 16, captivating a global audience. The event resonated strongly with viewers, amassing an impressive 5.79 million audience votes, highlighting the high level of engagement surrounding the competition.

10 月 16 日，這一季的壓軸結局在洛杉磯現場直播，吸引了全球觀眾。這場活動引起了觀眾的強烈反響，累計獲得了579萬張觀眾投票，凸顯了賽事的高參與度。

We also strengthened bonds with our business partners and our user community through a series of mid-year galas across Saudi Arabia, Vietnam, Thailand, and the Philippines. These gatherings brought together the cornerstone members of our ecosystem, top creators, users, and partners, to celebrate their achievements and vital contributions to our progress in the first half of the year.

我們也透過在沙烏地阿拉伯、越南、泰國和菲律賓舉辦的一系列年中慶祝活動，加強了與業務合作夥伴和使用者社群的聯繫。這些聚會匯集了我們生態系統的基石成員、頂級創作者、使用者和合作夥伴，慶祝他們在上半年的成就和對我們進步的重要貢獻。

Throughout the quarter, we further developed Bigo Live’s social engagement features, prioritizing improvements to Real Match and messaging functionality. These upgrades drove deeper user connections and more efficient Follow conversions.

在整個季度中，我們進一步開發了 Bigo Live 的社交參與功能，優先改進 Real Match 和訊息功能。這些升級推動了更深層的用戶聯繫和更有效率的關注轉換。

Notably, Real Match's average DAU penetration rate increased significantly to 23.4%, while the number of direct chat messages rose by 15.9% from the previous quarter. We also saw a 4.3% rise in average new follows per user, indicating stronger community building.

值得注意的是，Real Match的平均DAU滲透率大幅提升至23.4%，而直接聊天訊息數量則是較上季增加15.9%。我們還發現每個用戶的平均新追蹤者成長了 4.3%，這表明社群建設更加強勁。

By directing traffic to premium hosts and upgrading interactive features, we saw broader creator participation and user engagement in multi-guest rooms. We achieved a 3.9% sequential increase in the penetration rate of users hosting a live session in multi-guest rooms, alongside a 3.6% sequential increase in the overall rate of users going live as guest speakers.

透過將流量引導至優質主機並升級互動功能，我們看到了更廣泛的創作者參與和用戶在多客房中的參與。我們在多會議室舉辦現場會議的用戶滲透率環比增長了 3.9%，同時作為特邀演講者進行現場直播的用戶總體比率環比增長了 3.6%。

Next, moving to Likee. Our strategy for Likee remains rooted in the Middle East and European markets, where we continue to build momentum and enhance monetization across both livestreaming and advertising. As a result, Likee's advertising revenue grew 33.4% year over year in the third quarter, and Likee maintained its profitability.

接下來，轉移到Likee。我們的 Likee 策略仍然植根於中東和歐洲市場，我們繼續在這些市場建立勢頭並增強直播和廣告的獲利能力。受此影響，Likee第三季廣告營收年增33.4%，Likee維持了獲利能力。

During the quarter, we elevated Likee’s user experience across its core markets through enhanced content quality, interactivity, and community engagement. A standout community-building initiative was our August music festival tour across five European cities, which brought together Likee's top creators, from music bloggers to dance groups, alongside established performers and celebrities.

本季度，我們透過提升內容品質、互動性和社群參與度，提升了 Likee 在其核心市場的使用者體驗。一項出色的社區建設舉措是我們在歐洲五個城市舉辦的八月音樂節巡演，匯聚了 Likee 的頂級創作者，從音樂博主到舞蹈團體，以及知名表演者和名人。

This unique event delivered an unprecedented interactive experience for the Likee community. In September, Likee served as the official media partner for Phygital Games 2024, providing eight days of livestreaming coverage to immerse users in the competitive prowess of top athletes in digital football, basketball, laser shooting, and simulated dance. Our expanded premium content offerings and content diversity drove a 12.3% quarter-over-quarter increase in users’ video time spent.

這項獨特的活動為 Likee 社群帶來了前所未有的互動體驗。9月，Likee成為Phygital Games 2024的官方媒體合作夥伴，提供為期八天的直播報道，讓用戶沉浸在數位足球、籃球、雷射射擊和模擬舞蹈等頂級運動員的競技實力中。我們擴展的優質內容產品和內容多樣性推動用戶觀看影片的時間較上季成長了 12.3%。

Finally, turning to Hago. In the third quarter, our targeted incentive strategy across different paying user segments drove improved monetization metrics. We saw positive momentum in Hago's paying users and ARPPU, with its total revenue growing 6.1% quarter over quarter. Hago’s operating losses further narrowed from the previous quarter, and its operating cash flow remained positive.

最後，轉向哈戈。第三季度，我們針對不同付費用戶群的針對性激勵策略推動了貨幣化指標的改善。我們看到 Hago 的付費用戶和 ARPPU 呈現正面勢頭，其總收入較上季成長 6.1%。Hago的營運虧損較上季進一步收窄，營運現金流仍為正值。

Hago's social engagement metrics remained strong in the third quarter. Average time spent in social channels increased 2.5% quarter over quarter to 105.8 minutes, and next-day retention rates showed sustained improvement. These positive trends underscore the success of our engagement strategy and reflect our commitment to enriching user experiences while advancing monetization efforts within the platform.

Hago 的社交參與度指標在第三季仍然強勁。在社群管道上花費的平均時間較上季成長 2.5% 至 105.8 分鐘，隔日留存率持續改善。這些正面趨勢凸顯了我們參與策略的成功，並反映了我們致力於豐富使用者體驗，同時推動平台內的貨幣化工作的承諾。

Looking ahead, our strategic roadmap continues to center on three core priorities: Strengthening our position as a distinctive global social platform through enhanced user experiences, developing diverse revenue streams to drive sustainable growth, and advancing excellence across our global operations. Anchored by our strong cash flow and solid financial footing, we are dedicated to driving profitable growth and creating enduring value for our shareholders.

展望未來，我們的策略路線圖繼續以三個核心優先事項為中心：透過增強用戶體驗來加強我們作為獨特的全球社交平台的地位，開發多樣化的收入來源以推動可持續增長，以及在我們的全球營運中推動卓越。憑藉強勁的現金流和堅實的財務基礎，我們致力於推動獲利成長並為股東創造持久價值。

I will now turn the call over to Mr. Alex Liu, the Vice President of Finance, to provide our financial updates.

我現在將電話轉給財務副總裁 Alex Liu 先生，以提供我們的最新財務資訊。

Thanks, Ms. Li. 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, 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 and All other segments, excluding YY Live.

謝謝李女士。大家好。在詳細介紹之前，我們想提醒您，儘管 YY Live 出售取得了最新進展，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 和所有其他部門，不包括 YY Live。

I will now provide a recap of some key financial highlights for the third quarter. Our total net revenues were $558.7 million in the third quarter, compared with $567.1 million in the same period last year. Revenues from BIGO segment were $496.0 million, up slightly year over year.

我現在將回顧第三季的一些關鍵財務亮點。第三季我們的總淨收入為 5.587 億美元，去年同期為 5.671 億美元。BIGO 部門的營收為 4.96 億美元，較去年同期小幅成長。

In particular, BIGO’s non-livestreaming revenues were $78.2 million, which was up substantially year over year, primarily due to the increase of advertising revenues. BIGO’s livestreaming revenue was down year over year, mainly due to our proactive actions to optimize Bigo Live’s content and user acquisition costs, and adjustments to BIGO’s non-core audio livestreaming product in certain markets. We believe these changes, in turn enhanced our margin profile and contributed to long-term business sustainability.

其中，BIGO的非直播收入為7,820萬美元，較去年同期大幅成長，主要得益於廣告收入的成長。BIGO直播收入年減，主要是由於我們積極採取行動優化Bigo Live內容和用戶獲取成本，以及在某些市場對BIGO非核心音訊直播產品進行調整。我們相信這些變化反過來提高了我們的利潤狀況並有助於長期業務可持續性。

Geographically speaking, as we prioritized to allocate our operational resources towards developed countries and the acquisition of premium users with greater monetization potential, our group revenues from developed countries and regions was up by 21.6% year over year, with revenues from Middle East back to sequential growth of 2.1%.

從地理上看，由於我們優先向已開發國家配置營運資源，獲取變現潛力更大的優質用戶，集團來自已開發國家和地區的收入年增21.6%，其中中東收入恢復到去年同期水平增長2.1%。

Cost of revenues for the quarter decreased by 2.1% to $350.5 million, primarily driven by a decrease in cost of revenues of our All other segment, which was consistent with its revenue trend, partially offset by increase in cost of revenues of BIGO. BIGO’s cost of revenues were $312.6 million, which was up by 4.5% year over year, mainly driven by increased traffic acquisition costs paid to third-party partners in relation to our advertising business.

本季收入成本下降 2.1% 至 3.505 億美元，主要是由於我們所有其他部門的收入成本下降，這與其收入趨勢一致，部分被 BIGO 收入成本的增加所抵消。BIGO 的收入成本為 3.126 億美元，年增 4.5%，主要是由於支付給與我們的廣告業務相關的第三方合作夥伴的流量獲取成本增加所致。

Gross profit was $208.1 million in the quarter, with a gross margin of 37.3%. BIGO’s gross profit was 183.4 million, with a gross margin of 37.0%. BIGO’s gross margin was lower year over year due to a shift in our revenue mix, which saw an increased contribution from our lower-margin Audience Network advertising revenues.

本季毛利為2.081億美元，毛利率為37.3%。BIGO毛利為1.834億美元，毛利率為37.0%。由於我們收入結構的轉變，利潤率較低的 Audience Network 廣告收入的貢獻增加，BIGO 的毛利率較去年同期下降。

However, during the third quarter, our disciplined execution has significantly improved the operational efficiency of BIGO’s livestreaming business, effectively offsetting the dilution impact on BIGO’s gross margin. As a result, we observed a meaningful sequential improvement in BIGO’s gross margin during the quarter.

然而，在第三季度，我們嚴格的執行力顯著提高了BIGO直播業務的營運效率，有效抵消了對BIGO毛利率的稀釋影響。因此，我們觀察到本季 BIGO 毛利率出現顯著連續改善。

Our group’s operating expenses for the quarter were $192.0million, compared with $191.3 million in the same period of 2023. Among the operating expenses, sales, and marketing expenses decreased to $83.5 million from $92.5 million in the same period of 2023, primarily due to our reduced spending on user acquisition through advertising as we continued to focus on ROI and effectiveness of user acquisition.

我們集團本季的營運支出為 1.920 億美元，而 2023 年同期為 1.913 億美元。在營運費用中，銷售和行銷費用從 2023 年同期的 9,250 萬美元減少到 8,350 萬美元，這主要是由於我們繼續專注於投資回報率和用戶獲取的有效性，從而減少了透過廣告獲取用戶的支出。

General and administrative expenses increased to $36.1 million from $27.1 million in the same period of 2023, primarily due to increases in salary and welfare expenses. BIGO’s total operating expenses for the quarter were $120.7 million, decreased from $126.7 million in the same period of 2023, primarily due to decreased in sales and marketing expenses.

一般及行政費用從 2023 年同期的 2,710 萬美元增加到 3,610 萬美元，主要是由於工資和福利費用的增加。BIGO 本季的總營運費用為 1.207 億美元，較 2023 年同期的 1.267 億美元有所下降，主要是由於銷售和行銷費用減少。

Our disciplined execution has driven enhanced operational efficiency at both the group and BIGO segment. Our group’s GAAP operating income for the quarter was $16.4 million, up by 623.5% quarter over quarter.

我們嚴格的執行力提高了集團和 BIGO 部門的營運效率。我們集團本季的 GAAP 營業收入為 1,640 萬美元，季增 623.5%。

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 disposal of subsidiaries, as well as impairment of goodwill and investments, was $34.9 million in this quarter, up by 16.4% quarter over quarter.

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、子公司分拆和處置收益以及商譽和投資減值）為 3,490 萬美元，環比增長16.4%。

BIGO’s GAAP operating income for the quarter was $62.7 million, and BIGO’s non-GAAP operating income was $72.9 million, up by 5% quarter over quarter.

本季 BIGO 的 GAAP 營業收入為 6,270 萬美元，BIGO 的非 GAAP 營業收入為 7,290 萬美元，季增 5%。

Our group’s GAAP net income attributable to controlling interest of JOYY in the quarter was $60.6 million compared to $72.9 million in the same period of 2023. GAAP net income margin was 10.8% in the third quarter of 2024, compared to 12.9% in the same period of 2023.

本季我們集團歸屬於歡樂集團控股權益的 GAAP 淨利為 6,060 萬美元，而 2023 年同期為 7,290 萬美元。2024 年第三季 GAAP 淨利率為 10.8%，而 2023 年同期為 12.9%。

Our GAAP net margin was lower this year due to larger foreign currency exchange losses and lower net interest income due to the decreased net cash balance after we fully repaid our CB in the second quarter. BIGO’s GAAP net income in the quarter was $63.3 million, compared to 70.2 million in the same period of 2023.

今年我們公認的會計準則淨利率較低，原因是外匯匯兌損失較大，而我們在第二季全額償還可換股債券後，淨現金餘額減少，導致淨利息收入減少。BIGO 本季的 GAAP 淨利潤為 6,330 萬美元，而 2023 年同期為 7,020 萬美元。

BIGO’s GAAP net margin was lower this year due to foreign currency exchange losses of $10.3 million in the third quarter of 2024. Non-GAAP net income attributable to controlling interest of JOYY in the quarter was $61.2 million, compared to $81.2 million in the same period of 2023.

由於 2024 年第三季匯兌損失 1,030 萬美元，BIGO 今年的 GAAP 淨利潤率較低。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 6,120 萬美元，而 2023 年同期為 8,120 萬美元。

The Group’s non-GAAP net income margin was 10.9% in the quarter, compared to 14.3% in the same period of 2023. BIGO’s non-GAAP net income was $67.1 million, compared with $81.9 million in the same period of 2023. BIGO’s non-GAAP net margin was 13.5% in the quarter, compared with 16.6% in the same period last year.

該集團本季非公認的會計準則淨利潤率為 10.9%，而 2023 年同期為 14.3%。BIGO 的非 GAAP 淨利潤為 6,710 萬美元，而 2023 年同期為 8,190 萬美元。本季 BIGO 的非 GAAP 淨利潤率為 13.5%，而去年同期為 16.6%。

For the third quarter of 2024, we booked net cash inflows from operating activities of $61.1 million. Our balance sheet remains healthy with a strong net cash position of $3.3 billion as of September 30, 2024.

2024 年第三季度，我們的經營活動現金流入淨額為 6,110 萬美元。截至 2024 年 9 月 30 日，我們的資產負債表保持健康，淨現金部位高達 33 億美元。

In the third quarter, we continued to enhance returns to shareholders, repurchasing an additional approximately $117.8 million worth of our shares. During the first three quarters of 2024, we have altogether repurchased 7.31 million of our ADSs for a total of $243.7 million, which was approximately 12% of our outstanding ADSs as of December 31, 2023.

第三季度，我們持續提高股東回報，額外回購了價值約1.178億美元的股票。2024年前三季度，我們總共回購了731萬股美國存託憑證，總金額為2.437億美元，約佔截至2023年12月31日流通在外美國存託憑證的12%。

Turning now to our business outlook. As mentioned previously, we are fully dedicated to strengthening the efficiencies and sustainability of our global operations. We have taken some proactive actions to optimize our content costs, and introduced certain adjustments to BIGO’s audio livestreaming product to enhance risk control in recent quarters. We anticipate such adjustments might negatively affect BIGO’s top line in Q4.

現在轉向我們的業務前景。如前所述，我們完全致力於提高全球營運的效率和永續性。在近幾個季度，我們採取了一些積極的行動來優化內容成本，並對 BIGO 音訊直播產品進行了一定的調整，以加強風險控制。我們預計此類調整可能會對 BIGO 第四季的營收產生負面影響。

At group level, we expect our net revenues for the fourth quarter of 2024 to be between $546 million and $563 million. This implies that for the full year of 2024, BIGO is still positioned for moderate top-line growth.

在集團層面，我們預計 2024 年第四季的淨收入將在 5.46 億美元至 5.63 億美元之間。這意味著 2024 年全年，BIGO 仍將實現溫和的營收成長。

Looking forward, we will remain dedicated to our strategic priorities, enhancing our unique value proposition as a global social platform, exploring diverse growth revenues, and actively driving operational efficiency at all levels. Supported by our strong cash flow and healthy financial position, we are well-positioned to deliver sustainable, profitable growth and create enduring value for our shareholders.

展望未來，我們將繼續致力於我們的策略重點，增強我們作為全球社交平台的獨特價值主張，探索多元化的成長收入，並積極提高各個層面的營運效率。在我們強勁的現金流和健康的財務狀況的支持下，我們有能力實現可持續的獲利成長，並為股東創造持久的價值。

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

我們準備好的演講到此結束。接線員，我們現在要開始提問。謝謝。

(Operator Instructions) Thomas Chong, Jefferies.

（操作員說明）Thomas Chong，Jefferies。

Good morning. Thanks, management, for taking my question. My question is about 2025 outlook. Can management comment about the trend in users as well as revenue? On top of that, management also comments about the trend in operating expenses and profit. Thank you.

早安.謝謝管理層回答我的問題。我的問題是關於 2025 年的展望。管理層能否評論用戶和收入的趨勢？除此之外，管理階層也評論了營運費用和利潤的趨勢。謝謝。

Thank you, Thomas, for your question. I will take your first question first. And, first of all, I'd like to add a few more comments regarding our performance in the third quarter. You can see that in Q3 BIGO’s non-live streaming revenue continued to grow substantially year over year, while our live streaming revenue experienced a year-over-year decline.

謝謝托馬斯的提問。我先回答你的第一個問題。首先，我想就我們第三季的業績添加一些評論。可以看到，第三季BIGO的非直播收入較去年同期持續大幅成長，而我們的直播收入則是年減。

And we've mentioned the reasons behind the decline of our live streaming revenues which reflect the combination of two factors. First, we have optimized content costs in certain regions of Bigo Live; and second, we have made proactive adjustments to the features of BIGO’s non-core audio live streaming product in Q3 to enhance compliance and also for building up a sustainable ecosystem.

我們已經提到了直播收入下降背後的原因，這反映了兩個因素的結合。首先，我們優化了Bigo Live某些地區的內容成本；其次，我們在第三季對BIGO非核心音訊直播產品的功能進行了主動調整，以增強合規性並建立可持續的生態系統。

These adjustments together did have led to a short-term fluctuation in BIGO’s live streaming revenue in Q3, which we believe would likely continue in Q4, and it has already been taken into account in our current revenue guidance in the fourth quarter.

這些調整確實導致了 BIGO 第三季度直播收入的短期波動，我們認為這種情況可能會在第四季度持續，並且我們已經將其考慮到了我們當前第四季度的收入指引中。

However, as we've mentioned in the last quarter, these proactive adjustments that we're making now are aimed at developing a healthier profit model for our products and also for building a sustainable growth ecosystem. We've already seen some positive outcomes from these adjustments in Q3, including sequential improvements in BIGO’s gross margin, ROI, and also operating profit.

然而，正如我們在上個季度所提到的，我們現在所做的這些主動調整旨在為我們的產品開發更健康的獲利模式，並建立可持續成長的生態系統。我們已經在第三季看到了這些調整的一些積極成果，包括 BIGO 毛利率、投資報酬率和營業利潤的連續改善。

And looking ahead to the year 2025 as we're still in the process of formulating detailed operational plans for the next year, and we believe that our expected growth would be varied based on the estimated operating resources that we intend to allocate. So I'd like to share a few key trends first.

展望 2025 年，我們仍在製定明年的詳細營運計劃，我們相信，我們的預期成長將根據我們打算分配的估計營運資源而有所不同。因此，我想先分享一些主要趨勢。

With a series of adjustments have already been implemented throughout the year '24, we believe that both Bigo and JOYY is poised for a fresh start for the year '25. For BIGO segment, we will continue to concentrate our operating resources on developed countries and the acquisition of premium users.

隨著24年一系列調整的實施，我們相信Bigo和JOYY都將在25年迎來新的開始。對於BIGO業務，我們將繼續將營運資源集中在已開發國家和優質用戶的獲取。

We expect BIGO’s paying user will gradually return to sequential and even year-over-year growth in year '25 together with a stabilizing ARPPU which we believe can drive the live streaming revenue of Bigo to be back on a growth trajectory compared to the previous year.

我們預計 BIGO 的付費用戶將在 25 年逐漸恢復環比甚至同比增長，同時 ARPPU 趨於穩定，我們相信這可以推動 Bigo 的直播收入重新回到增長軌道。

Additionally, we expect the non-live streaming revenue of BIGO segment will continue to maintain double-digit growth year over year. However, as we've mentioned just now, the adjustments to BIGO’s non-live streaming, non-core audio live streaming product would still exert certain negative impact on BIGO’s overall growth rate, particularly when you consider the high base in the first half of year '24 which could still possibly offset some of the positive momentum that we've just mentioned.

此外，我們預期BIGO業務的非直播收入將持續維持同比兩位數成長。不過，正如我們剛才提到的，BIGO非直播、非核心音訊直播產品的調整，仍然會對BIGO的整體成長產生一定的負面影響，特別是考慮到BIGO的高成長率。基礎，這仍然可能抵消我們剛才提到的一些積極勢頭。

And for the All other segment, we expect its non-live streaming revenue to continue to grow, driving a top-line growth of the whole segment.

對於所有其他細分市場，我們預計其非直播收入將繼續成長，推動整個細分市場的收入成長。

As for our group MAU, I believe you can observe that it's been under some fluctuation over the past two quarters. And this is primarily due to our current proactive strategy of prioritizing resources towards more developed countries and premium users while strategically direct some of our resources away from areas and users with limited long-term monetization potential.

至於我們集團的MAU，我相信大家可以看到，這兩季是有些波動的。這主要是由於我們目前的主動策略，即優先將資源分配給較發達國家和優質用戶，同時策略性地將部分資源從長期貨幣化潛力有限的地區和用戶轉移出去。

While this strategy might have a short-term negative impact on our overall MAU, we believe that by focusing on high-quality premium users and also an ROI-driven growth strategy, we would be able to enhance our user quality and monetization efficiency and therefore laying a more solid foundation for our long-term sustainable growth.

雖然這項策略可能會對我們的整體月活躍用戶產生短期負面影響，但我們相信，透過專注於優質優質用戶以及投資回報率驅動的成長策略，我們將能夠提高我們的用戶品質和變現效率，因此為我們的長期永續發展奠定更堅實的基礎。

And Alex will take your second question.

亞歷克斯將回答你的第二個問題。

Hi, Thomas. It's Alex. This is Alex. So in the third quarter, our disciplined execution has driven enhanced operational efficiency at both segment level and also the group level. The group's non-GAAP gross margin was 37.3% which is up by nearly 2 percentage points compared to 35.3% in Q2. And the group's non-GAAP operating profit margin was 6.2% which was up by 0.9 percentage points compared to Q2. And its absolute amount of non-GAAP operating profit increased by 16.4% quarter over quarter.

嗨，托馬斯。是亞歷克斯。這是亞歷克斯。因此，在第三季度，我們嚴格的執行力推動了部門層級和集團層級的營運效率的提升。該集團的非公認會計準則毛利率為37.3%，較第二季的35.3%上升近2個百分點。該集團的非公認會計準則營業利潤率為6.2%，較第二季上升0.9個百分點。其非 GAAP 營業利潤絕對值較上季成長 16.4%。

If you look at BIGO segment in Q3, we saw a non-GAAP gross margin of 36.9% which is up by 1.4 percentage points from 35.5% in Q2. And BIGO’s non-GAAP operating margin was now expanded to 14.7% up by 1 percentage points compared to Q2 with an absolute amount of non-GAAP operating profit extending by 5% quarter over quarter. And that was mainly due to optimized content cost of Bigo Live and also savings of our sales and marketing expenses, particularly our user acquisition spending.

如果你看看第三季的 BIGO 部門，我們會看到非 GAAP 毛利率為 36.9%，比第二季的 35.5% 上升了 1.4 個百分點。BIGO 的非 GAAP 營業利潤率現已擴大至 14.7%，較第二季提高 1 個百分點，非 GAAP 營業利潤絕對值較上季成長 5%。這主要是由於 Bigo Live 優化了內容成本，並且節省了我們的銷售和行銷費用，特別是我們的用戶獲取支出。

And if you look at all other segments, the non-GAAP gross margin was also substantially improved in the quarter, up from 34.5% in Q2 to 40% in Q3, which is up by 5.5 percentage points in the quarter. And that was mainly due to a sequential quarter-over-quarter revenue recovery.

如果你看看所有其他細分市場，本季非 GAAP 毛利率也大幅提高，從第二季的 34.5% 上升到第三季的 40%，季上升了 5.5 個百分點。這主要是由於收入環比連續復甦。

And the non-GAAP operating loss was $38 million during the quarter, narrowing by 3.7% compared to Q2, mainly due to our effective expenses control, particularly a steady decline in our R&D expenses as a percentage of our revenue.

本季非 GAAP 營運虧損為 3,800 萬美元，較第二季收窄 3.7%，主要得益於我們有效的費用控制，特別是研發費用佔營收的比例穩定下降。

So looking ahead to the fourth quarter for BIGO segment, we anticipate Bigo Live's profit contribution to remain relatively stable. However, due to the adjustment that we made to our non-core audio live streaming product, together with this seasonality impact as our sales and marketing expenses might increase in the end of the year, we expect a slight decline in BIGO’s non-GAAP operating profit as compared to Q3. For all other segments, we expect its non-GAAP operating loss amounts to further narrow in Q4.

因此，展望第四季BIGO業務，我們預期Bigo Live的獲利貢獻將保持相對穩定。然而，由於我們對非核心音訊直播產品進行了調整，加上年底銷售和行銷費用可能增加的季節性影響，我們預計 BIGO 的非核心收入將略有下降。準則營業利潤。對於所有其他部門，我們預計其非 GAAP 營運虧損在第四季度將進一步收窄。

Looking ahead for the year '25, we will continue to execute an ROI-oriented operational strategy, persistently optimizing content cost and user acquisition strategies within BIGO segment. We anticipate the profit margins and an absolute amount of profit contribution from Bigo Live to likely increase in the year '25.

展望25年，我們將持續執行以投資報酬率為導向的營運策略，持續優化BIGO細分市場的內容成本與使用者獲取策略。我們預計 Bigo Live 的利潤率和絕對利潤貢獻額可能會在 25 年增加。

Nonetheless, due to the adjustment that we just mentioned that we made to the non-core audio live streaming products under the BIGO segment, which we believe will have a negative impact on the segment's profit, considering the abovementioned two factors together, we expect that the overall non-GAAP operating profit for BIGO segment will likely remain stable, with certain potential for growth for the new year.

儘管如此，由於我們剛才提到我們對BIGO板塊下的非核心音頻直播產品進行了調整，我們認為這會對該板塊的利潤產生負面影響，綜合考慮上述兩個因素，我們預計： BIGO 業務的整體非GAAP 營業利潤可能會保持穩定，並在新的一年中具有一定的成長潛力。

And in terms of the All other segment, we expect that under the assumption of improving monetization and discipline spending, with our R&D expenses as a percentage of our revenue continue to likely decline in the new year, we would see a potential further narrowing of non-GAAP operating losses in the year '25 compared to '24.

就所有其他細分市場而言，我們預計，在貨幣化和紀律支出改善的假設下，隨著我們的研發費用佔收入的百分比在新的一年中可能繼續下降，我們將看到非-與24 年相比，25 年的GAAP 營運虧損。

Therefore, at group level, we believe that our non-GAAP operating profit amount will continue to show an improving trend in the year '25. All in all, we believe that efficiency optimization requires ongoing efforts. Therefore, we'll continue to optimize every aspect of our global localized operation, enhance our operational efficiency in order to drive a sustainable profitable growth of our business.

因此，在集團層面，我們相信我們的非公認會計原則營業利潤額將在25年繼續呈現改善趨勢。總而言之，我們認為效率優化需要持續努力。因此，我們將持續優化全球在地化營運的各個環節，提升營運效率，推動業務持續獲利成長。

Thank you. Next question, please.

謝謝。請下一個問題。

Raphael Chen, BOCI Research.

陳拉斐爾，中銀國際研究部。

I will translate myself. Thanks, management, for taking my question. Could management share the general monetization trends across different key regions in fiscal year 2025? Thank you.

我自己翻譯一下。謝謝管理層回答我的問題。管理階層能否分享 2025 財年不同關鍵地區的整體貨幣化趨勢？謝謝。

This is Li Ting. I will take your question. At group level, the developed countries region continues to provide momentum of growth in the third quarter. Revenues from developed countries increased by 21.6% year over year, outperforming all other regions with its revenue contribution to the group increasing to 54.9%.

這是李婷。我會回答你的問題。在集團層面，已開發國家地區第三季持續提供成長動力。來自已開發國家的營收年增21.6%，表現優於其他地區，對集團的營收貢獻增至54.9%。

In terms of sequential trends, the group's revenues from the Middle East region grew by 2.1% quarter over quarter, showing signs of rebound.

從環比趨勢來看，集團來自中東地區的營收季增2.1%，呈現反彈跡象。

Looking at the long term, as we continue to execute on our ROI-oriented operational strategy and prioritizing operational resources towards regions with high monetization potential, we expect that both the developed countries and also the Middle East will remain our top priority.

長遠來看，隨著我們繼續執行以投資回報率為導向的營運策略，並將營運資源優先投向具有高貨幣化潛力的地區，我們預計已開發國家和中東仍將是我們的首要任務。

Thank you. Next question, please.

謝謝。請下一個問題。

Derek Fei, Morgan Stanley.

德瑞克費，摩根士丹利。

I'll translate myself. Thank you, management, for taking my question. My question is, could you give us a little bit more color on the progress in capital return? Should we expect the company to fully utilize the repurchase program in 2025? Thanks.

我自己來翻譯一下。謝謝管理層回答我的問題。我的問題是，您能給我們更多關於資本回報進展的資訊嗎？我們是否應該預期公司在 2025 年充分利用回購計畫？謝謝。

Thank you, Derek, for your question. This is Alex. I will answer your question. So if you look at our full-year’s execution, so far, we've been very, very active in our shareholder return initiatives throughout the year. And in Q3, we repurchased an additional of $118 million worth of our shares.

謝謝你，德瑞克，你的問題。這是亞歷克斯。我會回答你的問題。因此，如果你看看我們全年的執行情況，到目前為止，我們全年都非常非常積極地實施股東回報計畫。在第三季度，我們額外回購了價值 1.18 億美元的股票。

And for the first three quarters of the year, we have in total bought back 7.31 million ADSs for a total of $244 million. Which accounts for an impressive 12% of our total shares outstanding as of the end of last year.

今年前三季度，我們總共回購了731萬股ADS，總金額為2.44億美元。截至去年底，該股占我們已發行股票總數的 12%，令人印象深刻。

While looking ahead to the year 2025, we will continue to consider shareholder returns as one of our strategic priorities and continue to create value for our shareholders.

展望2025年，我們將繼續將股東回報作為我們的策略重點之一，繼續為股東創造價值。

Next question, please. And due to the limited time, I believe this will be our last question.

請下一個問題。由於時間有限，我相信這將是我們的最後一個問題。

Yiwen Zhang, China Renaissance.

張藝文，中國文藝復興。

So thanks for taking my question. Can management discuss the outlook for our advertising and other new initiative business into 2025? Thank you.

謝謝你提出我的問題。管理層能否討論我們的廣告和其他新舉措業務到 2025 年的前景？謝謝。

Thank you for your question. This is Li Ting. I will take a question. In the third quarter of BIGO’s advertising revenue remained robust growth which significantly increased its contribution to the segment's total revenue, now reaching 15.8%. Among which, the advertising revenue from our own social platform, Likee, delivered year-over-year growth of 33.4% and a sequential growth of 8.9%. Revenues from our advertising platform, Bigo Audience Network, continue to show strong momentum with a sequential growth exceeding 20% primarily driven by Europe and North America.

謝謝你的提問。這是李婷。我將提出一個問題。第三季度，BIGO 的廣告收入保持強勁成長，對該部門總收入的貢獻顯著增加，目前達到 15.8%。其中，自有社群平台Likee的廣告收入較去年同期成長33.4%，較上季成長8.9%。我們的廣告平台 Bigo Audience Network 的營收持續呈現強勁勢頭，環比成長超過 20%，主要由歐洲和北美推動。

Notably, the operating profit and op margins of BIGO’s Audience Network business have been improved sequentially during the quarter.

值得注意的是，BIGO Audience Network 業務的營業利潤和營運利潤率在本季連續改善。

Well, so far, the growth in our advertising revenue from our own social platforms such as Likee is mainly attributed to optimization of our ad inventory, and our bidding strategies. Future sustained growth will be dependent on the expansion of its own DAU.

那麼到目前為止，我們來自Likee等自有社群平台的廣告收入的成長主要歸功於我們的廣告庫存和競價策略的最佳化。未來的持續成長將依賴自身DAU的擴大。

While the growth of our advertising platform, or Bigo Audience Network, has been driven by multiple factors including the expanding network DAU pool, entering into new markets, or the exploration of new verticals or new clients.

我們的廣告平台（或 Bigo Audience Network）的成長受到多種因素的推動，包括擴大網路 DAU 池、進入新市場或探索新垂直產業或新客戶。

However, it always takes time to accumulate scale in order to drive further profit growth. In order to drive further growth, we will again take a long-term view, continue to explore and refine our operations, and drive a steady increase of our market share over time.

然而，規模的累積總是需要時間來推動利潤的進一步成長。為了進一步推動成長，我們將再次著眼長遠，不斷探索和改善我們的業務，推動我們的市場份額穩步提升。

So that's the end of our questions and thank you so much for joining our call. We look forward to speaking with everyone next quarter. Thank you.

我們的問題到此結束，非常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。

This conference is now concluded.

本次會議現已結束。