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JOYY Reports Second Quarter 2022 Unaudited Financial Results

SINGAPORE, Aug. 30, 2022 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company,” formerly known as YY Inc.), a global video-based social media company, today announced its unaudited financial results for the second quarter of 2022.

Second Quarter 2022 Financial Highlights1

  • Net revenues were US$596.1 million, compared to US$661.7 million in the corresponding period of 2021.

  • Net income from continuing operations attributable to controlling interest of JOYY2 was US$18.7 million, compared to net loss of US$109.3 million in the corresponding period of 2021, primarily as a result of BIGO turning profits since the second quarter of 2021.

  • Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYY3 was US$51.5 million, compared to non-GAAP net loss of US$0.5 million in the corresponding period of 2021, primarily as a result of improved gross margin, disciplined marketing spending and enhanced operating efficiency at the group level.

Second Quarter 2022 Operational Highlights

  • Average mobile MAUs4 of Bigo Live increased by 10.6% to 32.6 million from 29.5 million in the corresponding period of 2021.

  • Average mobile MAUs of Likee decreased by 37.5% to 57.7 million from 92.3 million in the corresponding period of 2021, primarily due to reduced spending on user acquisition via advertisement.

  • Average mobile MAUs of Hago decreased by 27.4% to 8.5 million from 11.8 million in the corresponding period of 2021, primarily due to reduced spending on user acquisition via advertisement.

  • Global average mobile MAUs decreased by 11.2% to 273.1 million from 307.5 million in the corresponding period of 2021, primarily due to the decrease in average mobile MAUs of Likee and Hago.

  • Total number of paying users of BIGO (including Bigo Live, Likee and imo)5 decreased by 8.1% to 1.45 million from 1.58 million in the corresponding period of 2021.

  • Average revenue per paying user of BIGO (including Bigo Live, Likee and imo)6 decreased to US$285.0 from US$316.0 in the corresponding period of 2021.

Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “The steady expansion in our profitability in the second quarter amidst the current market condition demonstrated the improved efficiency and resilience of our business. We saw some positive outcomes from our continued iteration of our product features and cultivation of our user community, as Bigo Live’s MAUs maintained its solid growth momentum, increasing by 10.6% year-over-year to 32.6 million. The current macro environment has not undermined our proven capabilities in capturing growth opportunities in the social entertainment sector nor our long-term outlook on the industry, and we view the current market fluctuations as opportunities to deepen our focus and plan in the long run. We will continue to cultivate diversified, premium content, innovate interactive features, and organize tailored local activities, in order to further improve user experience, and ultimately drive the growth of our user community and global business. We remain committed to generating value for our users and creators while improving efficiency and enhancing resilience. As we continue to invest in building our long-term capabilities, we firmly believe that JOYY as a company will emerge from the current uncertainties as a more focused and productive organization, and be well positioned to capture long-term growth opportunities and generate sustainable shareholder value.”

Second Quarter 2022 Financial Results

NET REVENUES

Net revenues were US$596.1 million in the second quarter of 2022, compared to US$661.7 million in the corresponding period of 2021.

Live streaming revenues were US$565.2 million in the second quarter of 2022, compared to US$629.6 million in the corresponding period of 2021, primarily due to the decreases in the number of paying users and average revenue per paying user of BIGO, as global macroeconomic uncertainties and the appreciation of U.S. dollars against certain other local currencies negatively affected users’ paying activities.

Other revenues decreased by 3.8% to US$30.9 million in the second quarter of 2022 from US$32.1 million in the corresponding period of 2021.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 17.6% to US$377.7 million in the second quarter of 2022 from US$458.3 million in the corresponding period of 2021. Revenue-sharing fees and content costs were US$247.0 million in the second quarter of 2022, compared to US$289.1 million in the corresponding period of 2021. Bandwidth costs decreased to US$20.0 million in the second quarter of 2022 from US$27.5 million in the corresponding period of 2021, primarily due to the improvement in bandwidth usage efficiency by the Company, partially offset by the increased bandwidth usage as a result of continued MAUs expansion of Bigo Live.

Gross profit increased by 7.4% to US$218.4 million in the second quarter of 2022 from US$203.4 million in the corresponding period of 2021. Gross margin improved to 36.6% in the second quarter of 2022 from 30.7% in the corresponding period of 2021, primarily due to optimization of revenue sharing cost and improved bandwidth usage efficiency.

OPERATING EXPENSES AND INCOME

Operating expenses decreased by 41.1% to US$185.0 million in the second quarter of 2022 from US$314.0 million in the corresponding period of 2021. Among the operating expenses, sales and marketing expenses decreased to US$98.4 million in the second quarter of 2022 from US$112.2 million in the corresponding period of 2021, primarily due to the Company’s reduced spending on user acquisition via advertisement for Likee and Hago. General and administrative expenses decreased to US$23.7 million for the second quarter of 2022 from US$101.1 million in the corresponding period of 2021. General and administrative expenses was higher in the second quarter of 2021 primarily due to one-off impairment loss arising from certain equity investments.

Operating income was US$38.7 million in the second quarter of 2022, compared to operating loss of US$101.1 million in the corresponding period of 2021. Operating income margin was 6.5% in the second quarter of 2022, compared to operating loss margin of 15.3% in the corresponding period of 2021, primarily as a result of BIGO turning profits since the second quarter of 2021.

Non-GAAP operating income7 was US$59.9 million in the second quarter of 2022, compared to non-GAAP operating loss of US$13.0 million in the corresponding period of 2021. Non-GAAP operating income margin8 was 10.0% in the second quarter of 2022, compared to non-GAAP operating loss margin of 2.0% in the corresponding period of 2021.

NET INCOME

Net income from continuing operations attributable to controlling interest of JOYY was US$18.7 million in the second quarter of 2022, compared to net loss of US$109.3 million in the corresponding period of 2021. Net income margin was 3.1% in the second quarter of 2022, compared to net loss margin of 16.5% in the corresponding period of 2021.

Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYY was US$51.5 million in the second quarter of 2022, compared to non-GAAP net loss of US$0.5 million in the corresponding period of 2021. Non-GAAP net income margin9 was 8.6% in the second quarter of 2022, compared to non-GAAP net loss margin of 0.1% in the corresponding period of 2021.

NET INCOME PER ADS

Diluted net income from continuing operations per ADS10 was US$0.23 in the second quarter of 2022, compared to diluted net loss of US$1.43 in the corresponding period of 2021.

Non-GAAP diluted net income from continuing operations per ADS11 was US$0.65 in the second quarter of 2022, compared to diluted net loss of US$0.01 in the corresponding period of 2021.

BALANCE SHEET AND CASH FLOWS

As of June 30, 2022, the Company had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of US$4,289.2 million. For the second quarter of 2022, net cash inflow from operating activities was US$61.7 million.

SHARES OUTSTANDING

As of June 30, 2022, the Company had a total of 1,426.6 million common shares, or the equivalent of 71.3 million ADSs, outstanding.

Business Outlook

For the third quarter of 2022, the Company expects net revenues to be between US$561.5 million and US$593.5 million12. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to changes, particularly as to the potential impact from increasing macroeconomic uncertainties.

Quarterly Dividend

On August 11, 2020, the Company’s board of directors approved a quarterly dividend policy for the next three years commencing in the fourth quarter of 2020. On November 16, 2020, the Company’s board of directors announced an additional quarterly dividend policy. Based on these two dividend policies, the board of directors has accordingly declared a dividend of US$0.51 per ADS, or US$0.0255 per common share, for the second quarter of 2022, which is expected to be paid on October 6, 2022 to shareholders of record as of the close of business on September 22, 2022. The ex-dividend date will be September 21, 2022. Under the policy, the board of directors of the Company reserves the discretion relating to the determination to make dividend distributions and the amount of such distributions in any particular quarter, depending on the Company’s operations and earnings, cash flow, financial condition and other relevant factors.

Recent Developments

Share Repurchase Program

In September 2021, the Company announced that its board of directors has authorized a new share repurchase plan under which the Company may repurchase up to US$200 million of its shares between September 2021 and September 2022. In November 2021, the Company announced that its board of directors has authorized an additional share repurchase plan under which the Company may repurchase up to US$1 billion of its shares between November 2021 and November 2022. As of June 30, 2022, the Company had repurchased approximately US$327.9 million of its shares pursuant to those plans.

Conference Call Information

The Company will hold a conference call at 9:00 PM U.S. Eastern Time on Monday, August 29, 2022 (9:00 AM Singapore/Hong Kong Time on Tuesday, August 30, 2022). Details for the conference call are as follows:

Event Title:

JOYY Inc. Second Quarter 2022 Earnings Conference Call

Conference ID:

#10024616

All participants must use the link provided below to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique registrant ID by email.

PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10024616-kro0vn.html 
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.joyy.com.

The replay will be accessible through September 6, 2022, by dialing the following numbers:

United States:

1-855-883-1031

Singapore:

800-101-3223

Hong Kong:

800-930-639

Conference ID:

#10024616


 

 

About JOYY Inc.

JOYY is a leading global social media company that enables users to interact with each other in real time through online live media. On a mission to connect people and enrich their lives through video, JOYY currently operates several social products, including Bigo Live for live streaming, Likee for short-form videos, Hago for multiplayer social networking, and instant messaging product and others. The Company has created a highly engaging and vibrant user community for users across the globe. JOYY was listed on the NASDAQ in November 2012.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as JOYY’s strategic and operational plans, contain forward-looking statements. JOYY may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including statements about JOYY’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JOYY’s goals and strategies; JOYY’s future business development, results of operations and financial condition; the expected growth of the online communication social platform market in China; the expectation regarding the rate at which to gain active users, especially paying users; JOYY’s ability to monetize the user base; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to JOYY’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in JOYY’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JOYY does not undertake any obligation to update any forward- looking statement, except as required under applicable law.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). JOYY uses non-GAAP operating income, non-GAAP operating (loss) margin, non-GAAP net income (loss) from continuing operations attributable to controlling interest of JOYY, non-GAAP net (loss) margin attributable to controlling interest of JOYY, non-GAAP net income (loss) from continuing operations attributable to common shareholders of JOYY, and basic and diluted non-GAAP net income (loss) per ADS, which are non-GAAP financial measures. Non-GAAP operating income (loss) is operating income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, and gain on disposal of subsidiaries and business. Non-GAAP operating (loss) margin is non-GAAP operating income as a percentage of net revenues. Non-GAAP net income (loss) from continuing operations is net income (loss) from continuing operations excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain on disposal of subsidiaries and business, (loss) gain on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments(refers to share of income (loss) from equity method investments resulting from non-recurring or non-cash items of the equity method investments), gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, and income tax effects of above non-GAAP reconciling items. Non-GAAP net income (loss) from continuing operations attributable to controlling interest of JOYY is net income (loss) from continuing operations attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, (loss) gain on disposal and deemed disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income from continuing operations attributable to non-controlling interest shareholders. Non-GAAP net (loss) margin is non-GAAP net income (loss) from continuing operations attributable to controlling interest of JOYY as a percentage of net revenues. Non-GAAP net income (loss) from continuing operations attributable to common shareholders of JOYY is net income (loss) from continuing operations attributable to common shareholders of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, (loss) gain on disposal and deemed disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders and income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income from continuing operations attributable to non-controlling interest shareholders. After the non-GAAP reconciliation, non-GAAP net income (loss) from continuing operations attributable to controlling interests of JOYY is equal to the non-GAAP net income (loss) from continuing operations attributable to common shareholders of JOYY. Basic and diluted non-GAAP net income (loss) from continuing operations per ADS is non-GAAP net income (loss) from continuing operations attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of basic and diluted net income per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of above reconciling items adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of (i) share-based compensation expenses and amortization of intangible assets from business acquisitions, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, which have been and will continue to be significant recurring expenses in its business, (ii) impairment of goodwill and investments, gain on disposal of subsidiaries and business, (loss) gain on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, and accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders, which may not be recurring in its business, and (iii) income tax expenses and non-GAAP adjustments for net income (loss) from continuing operations attributable to non-controlling interest shareholders, which are affected by above non-GAAP reconciling items. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income (loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this release.

Investor Relations Contact 
JOYY Inc.
Jane Xie/Maggie Yan
Email: joyy-ir@joyy.com

ICR, Inc.
Robin Yang
Email: joyy@icrinc.com

1 On November 16, 2020, the Company entered into definitive agreements with Baidu, Inc. (“Baidu”). Pursuant to the agreements, Baidu would acquire JOYY’s domestic video-based entertainment live streaming business (“YY Live”), which includes YY mobile app, YY.com website and PC YY, among others, for an aggregate purchase price of approximately US$3.6 billion in cash, subject to certain adjustments. Subsequently, the sale was substantially completed on February 8, 2021, with certain customary matters remaining to be completed in the future, including necessary regulatory approvals from government authorities. As a result, the historical financial results of YY Live are reflected in the Company’s consolidated financial statements as discontinued operations and the Company ceased consolidation of YY Live business since February 8, 2021. The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.

For the avoidance of confusion, the continuing operations for the three months ended June 30, 2021, March 31, 2022 and June 30, 2022 as well as the continuing operations for the six months ended June 30, 2021 and June 30, 2022 as presented in this press release primarily consisted of BIGO, excluding Huya and YY Live.

2 Net income (loss) from continuing operations attributable to controlling interest of JOYY, is net income (loss) from continuing operations less net (loss) income from continuing operations attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders.

3 Non-GAAP net income (loss) from continuing operations attributable to controlling interest of JOYY is a non-GAAP financial measure, which is defined as net loss from continuing operations attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investment, amortization of intangible assets from business acquisitions, gain on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments which refer to those similar non-GAAP reconciling items of the Company, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds amortization to face value, income tax effects on non-GAAP adjustments and non-GAAP adjustments for net (loss) income attributable to non-controlling interest shareholders. These adjustments amounted to US$32.8 million and US$108.9 million in the second quarter of 2022 and 2021, respectively. Please refer to the section titled “Unaudited Reconciliation of GAAP and Non-GAAP Results” for more details.

4 Refers to mobile average monthly active users. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile active users for each month of such period, by (ii) the number of months in such period.

5 The paying users are calculated by number of paying users during a given period as the cumulative number of registered user accounts that have purchased virtual items or other products and services on platforms including Bigo Live, Likee and imo at least once during the relevant period.

6 Average revenue per user is calculated by dividing our total revenues from live streaming on platforms including Bigo Live, Likee and imo during a given period by the number of paying users for our live streaming services on these platforms for that period.

7 Non-GAAP operating income (loss) is a non-GAAP financial measure, which is defined as operating income (loss) excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain on disposal of subsidiaries and business. Please refer to the section titled “Unaudited Reconciliation of GAAP and Non-GAAP Results” for details.

8 Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP operating income (loss) as a percentage of net revenues. Please refer to the section titled “Unaudited Reconciliation of GAAP and Non-GAAP Results” for details.

9 Non-GAAP net income (loss) margin is non-GAAP net income (loss) from continuing operations attributable to controlling interest of JOYY as a percentage of net revenues.

10 ADS is American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income (loss) per ADS is net income (loss) attributable to common shareholders of JOYY divided by weighted average number of diluted ADS.

11 Non-GAAP diluted net income (loss) from continuing operations per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) from continuing operations attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of non-GAAP diluted net income (loss) per ADS. Please refer to the section titled “Unaudited Reconciliation of GAAP and Non-GAAP Results” for details.

12 The current outlook does not consider the results of Shopline Corporation Limited, which will be consolidated upon the closing of the proposed financing transaction the Company announced on August 22, 2022.


JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS and per ADS data)

 

 

December
31,
2021

 

June
30,
2022

 

 

US$

 

US$

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

1,837,185

 

1,393,670

Restricted cash and cash equivalents

 

297,022

 

296,696

Short-term deposits

 

1,604,198

 

2,130,462

Restricted short-term deposits

 

285

 

37,495

Short-term investments

 

946,543

 

430,901

Accounts receivable, net

 

114,372

 

114,129

Amounts due from related parties

 

56,984

 

98,809

Prepayments and other current assets(1)

 

213,733

 

206,113

 

 

 

 

 

Total current assets

 

5,070,322

 

4,708,275

 

 

 

 

 

Non-current assets

 

 

 

 

Investments

 

1,022,455

 

1,073,124

Property and equipment, net

 

365,392

 

332,178

Land use rights, net

 

370,052

 

347,219

Intangible assets, net

 

312,082

 

285,131

Right-of-use assets, net

 

16,565

 

16,239

Goodwill

 

1,958,263

 

1,953,066

Other non-current assets

 

4,881

 

7,044

 

 

 

 

 

Total non-current assets

 

4,049,690

 

4,014,001

 

 

 

 

 

Total assets

 

9,120,012

 

8,722,276

 

 

 

 

 

Liabilities, mezzanine equity and shareholders’ equity

 

 

 

 

Current liabilities

 

 

 

 

Short-term loan

 

-

 

29,800

Accounts payable

 

18,011

 

20,544

Deferred revenue

 

60,910

 

59,228

Advances from customers

 

3,426

 

1,284

Income taxes payable

 

65,738

 

67,813

Accrued liabilities and other current liabilities(1)

 

2,345,838

 

2,296,304

Amounts due to related parties

 

6,931

 

3,180

Lease liabilities due within one year

 

11,041

 

7,034

Convertible bonds

 

-

 

448,910

 

 

 

 

 

Total current liabilities

 

2,511,895

 

2,934,097

 

 

 

 

 

Non-current liabilities

 

 

 

 

Convertible bonds

 

924,077

 

402,798

Lease liabilities

 

5,734

 

9,198

Deferred revenue

 

6,422

 

7,661

Deferred tax liabilities

 

36,214

 

37,028

Other non-current liabilities

 

7,372

 

12,372

 

 

 

 

 

Total non-current liabilities

 

979,819

 

469,057

 

 

 

 

 

Total liabilities

 

3,491,714

 

3,403,154


JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)

 

 

December
31
2021

 

 

June
30
2022

 

 

 

US$

 

 

US$

 

 

 

 

 

 

Mezzanine equity

 

65,833

 

 

68,333

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

Class A common shares (US$0.00001 par value; 10,000,000,000 and 10,000,000,000 shares authorized, 1,317,840,464 shares issued and 1,146,336,305 shares outstanding as of December 31, 2021; 1,317,840,464 shares issued and 1,100,059,298 shares outstanding as of June 30, 2022, respectively)

 

13

 

 

13

 

Class B common shares (US$0.00001 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 326,509,555 and 326,509,555 shares issued and outstanding as of December 31, 2021 and June 30, 2022, respectively)

 

3

 

 

3

 

Treasury Shares (US$0.00001 par value; 171,504,159 and 217,781,166 shares held as of December 31, 2021 and June 30, 2022, respectively)

 

(526,724)

 

 

(614,224)

 

Additional paid-in capital

 

3,246,523

 

 

3,267,806

 

Statutory reserves

 

26,804

 

 

26,804

 

Retained earnings

 

2,712,534

 

 

2,627,458

 

Accumulated other comprehensive income

 

69,175

 

 

(82,341)

 

 

 

 

 

 

 

 

Total JOYY Inc.’s shareholders’ equity

 

5,528,328

 

 

5,225,519

 

 

 

 

 

 

 

 

Non-controlling interests

 

34,137

 

 

25,270

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

5,562,465

 

 

5,250,789

 

 

 

 

 

 

 

 

Total liabilities, mezzanine equity and shareholders’ equity

 

9,120,012

 

 

8,722,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)   JOYY has ceased consolidation of YY Live business since February 8, 2021 and classified and presented all the related assets and liabilities related to YY Live business on a net basis within prepayments and other current assets. The considerations received by the Company so far were recorded as advance payments received within accrued liabilities and other current liabilities.

JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

Six Months Ended

 

 

June
30,
2021

 

 

March
31,
2022

 

 

June
30,
2022

 

 

June
30,
2021

 

 

June
30,
2022

 

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Live streaming(1)

 

629,626

 

 

590,099

 

 

565,239

 

 

1,243,759

 

 

1,155,338

 

Others

 

32,088

 

 

33,681

 

 

30,859

 

 

61,038

 

 

64,540

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

661,714

 

 

623,780

 

 

596,098

 

 

1,304,797

 

 

1,219,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues(2)

 

(458,272

)

 

(422,624

)

 

(377,671

)

 

(901,202

)

 

(800,295

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

203,442

 

 

201,156

 

 

218,427

 

 

403,595

 

 

419,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(100,744

)

 

(64,098

)

 

(62,876

)

 

(187,749

)

 

(126,974

)

Sales and marketing expenses

 

(112,151

)

 

(104,367

)

 

(98,415

)

 

(249,555

)

 

(202,782

)

General and administrative expenses

 

(101,114

)

 

(32,095

)

 

(23,680

)

 

(155,714

)

 

(55,775

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

(314,009

)

 

(200,560

)

 

(184,971

)

 

(593,018

)

 

(385,531

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on disposal of subsidiaries

 

4,959

 

 

-

 

 

-

 

 

4,959

 

 

-

 

Other income

 

4,526

 

 

5,741

 

 

5,286

 

 

10,344

 

 

11,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

(101,082

)

 

6,337

 

 

38,742

 

 

(174,120

)

 

45,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses

 

(3,602

)

 

(3,069

)

 

(3,356

)

 

(7,760

)

 

(6,425

)

Interest income and investment income

 

23,489

 

 

18,219

 

 

17,942

 

 

45,499

 

 

36,161

 

Foreign currency exchange (losses) gain, net

 

(5,909

)

 

(3,364

)

 

12,509

 

 

(7,418

)

 

9,145

 

Gain (loss) on disposal and deemed disposal of investments

 

676

 

 

1,918

 

 

(393

)

 

5,019

 

 

1,525

 

(Loss) gain on fair value change of investments

 

(841

)

 

(20,132

)

 

1,282

 

 

(15,992

)

 

(18,850

)

Gain on extinguishment of debt and derivative

 

1,649

 

 

2,115

 

 

4,017

 

 

1,266

 

 

6,132

 

Other non-operating expenses

 

(381

)

 

-

 

 

-

 

 

(381

)

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income tax (expenses) benefits

 

(86,001

)

 

2,024

 

 

70,743

 

 

(153,887

)

 

72,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expenses) benefits

 

(2,700

)

 

805

 

 

(22,944

)

 

(18,449

)

 

(22,139

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before share of loss in equity method investments, net of income taxes

 

(88,701

)

 

2,829

 

 

47,799

 

 

(172,336

)

 

50,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of loss in equity method investments, net of income taxes

 

(23,974

)

 

(35,689

)

 

(32,837

)

 

(29,425

)

 

(68,526

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

(112,675

)

 

(32,860

)

 

14,962

 

 

(201,761

)

 

(17,898

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income from discontinued operations

 

-

 

 

-

 

 

-

 

 

35,567

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

(112,675

)

 

(32,860

)

 

14,962

 

 

(166,194

)

 

(17,898

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders

 

3,327

 

 

5,383

 

 

3,689

 

 

5,114

 

 

9,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to controlling interest of JOYY Inc.

 

(109,348

)

 

(27,477

)

 

18,651

 

 

(161,080

)

 

(8,826

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Including:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations attributable to controlling interest of JOYY Inc.

 

(109,348

)

 

(27,477

)

 

18,651

 

 

(196,647

)

 

(8,826

)

Net income from discontinued operations attributable to controlling interest of JOYY Inc.

 

-

 

 

-

 

 

-

 

 

35,567

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value

 

(1,345

)

 

(1,250

)

 

(1,250

)

 

(2,736

)

 

(2,500

)

Cumulative dividend on subsidiary’s Series A Preferred Shares

 

(1,000

)

 

(1,000

)

 

(1,000

)

 

(2,000

)

 

(2,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common shareholders of JOYY Inc.

 

(111,693

)

 

(29,727

)

 

16,401

 

 

(165,816

)

 

(13,326

)

     

Including:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations attributable to common shareholders of JOYY Inc.

 

(111,693

)

 

(29,727

)

 

16,401

 

 

(201,383

)

 

(13,326

)

Net income from discontinued operations attributable to common shareholders of JOYY Inc.

 

-

 

 

-

 

 

-

 

 

35,567

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

Six Months Ended

 

 

June
30,
2021

 

March
31,
2022

 

June
30,
2022

 

June
30,
2021

 

June
30,
2022

 

 

 

US$

 

US$

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per ADS

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

(1.43

)

(0.41

)

0.23

 

(2.11

)

(0.18

)

Continuing operations

 

(1.43

)

(0.41

)

0.23

 

(2.56

)

(0.18

)

Discontinued operations

 

-

 

-

 

-

 

0.45

 

-

 

—Diluted

 

(1.43

)

(0.41

)

0.23

 

(2.11

)

(0.18

)

Continuing operations

 

(1.43

)

(0.41

)

0.23

 

(2.56

)

(0.18

)

Discontinued operations

 

-

 

-

 

-

 

0.45

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ADS used in calculating net (loss) income per ADS

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

77,997,827

 

72,881,330

 

71,893,282

 

78,596,888

 

72,604,421

 

—Diluted

 

77,997,827

 

72,881,330

 

72,586,310

 

78,596,888

 

72,604,421

 

(1)   Live streaming revenues by geographical areas were as follows:

 

 

Three Months Ended

 

Six Months Ended

 

 

June
30,
2021

 

March
31,
2022

 

June
30,
2022

 

June
30,
2021

 

June
30,
2022

 

 

 

US$

 

US$

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

PRC

 

111,479

 

134,130

 

137,246

 

223,039

 

271,376

 

Non-PRC

 

518,147

 

455,969

 

427,993

 

1,020,720

 

883,962

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)   Share-based compensation was allocated in cost of revenues and operating expenses as follows:

 

 

Three Months Ended

 

Six Months Ended

 

 

June
30,
2021

 

March
31,
2022

 

June
30,
2022

 

June
30,
2021

 

June
30,
2022

 

 

 

US$

 

US$

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

3,075

 

4,545

 

1,344

 

4,563

 

5,889

 

Research and development expenses

 

7,921

 

6,410

 

5,093

 

12,923

 

11,503

 

Sales and marketing expenses

 

410

 

251

 

282

 

859

 

533

 

General and administrative expenses

 

(20,501)

 

3,330

 

2,026

 

(4,382)

 

5,356

 


JOYY INC.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June
30,
2021

 

March
31,
2022

 

June
30,
2022

 

 

June
30,
2021

 

June
30,
2022

 

 

 

US$

 

US$

 

US$

 

 

US$

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

(101,082)

 

6,337

 

38,742

 

 

(174,120)

 

45,079

 

Share-based compensation expenses

 

(9,095)

 

14,536

 

8,745

 

 

13,963

 

23,281

 

Amortization of intangible assets from business acquisitions

 

11,683

 

12,409

 

12,365

 

 

31,986

 

24,774

 

Impairment of investments

 

90,499

 

-

 

-

 

 

90,499

 

-

 

Gain on disposal of subsidiaries

 

(4,959)

 

-

 

-

 

 

(4,959)

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating (loss) income

 

(12,954)

 

33,282

 

59,852

 

 

(42,631)

 

93,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

(112,675)

 

(32,860)

 

14,962

 

 

(201,761)

 

(17,898)

 

Share-based compensation expenses

 

(9,095)

 

14,536

 

8,745

 

 

13,963

 

23,281

 

Amortization of intangible assets from business acquisitions

 

11,683

 

12,409

 

12,365

 

 

31,986

 

24,774

 

Impairment of investments

 

90,499

 

-

 

-

 

 

90,499

 

-

 

Gain on disposal of subsidiaries

 

(4,959)

 

-

 

-

 

 

(4,959)

 

-

 

(Gain) loss on disposal and deemed disposal of investments

 

(676)

 

(1,918)

 

393

 

 

(5,019)

 

(1,525)

 

Loss (gain) on fair value change of investments

 

841

 

20,132

 

(1,282)

 

 

15,992

 

18,850

 

Reconciling items on the share of equity method investments

 

22,346

 

11,143

 

12,774

 

 

29,710

 

23,917

 

Gain on extinguishment of debt and derivative

 

(1,649)

 

(2,115)

 

(4,017)

 

 

(1,266)

 

(6,132)

 

Interest expenses related to the convertible bonds’ amortization to face value

 

713

 

629

 

619

 

 

1,407

 

1,248

 

Income tax effects on non-GAAP adjustments

 

(568)

 

(4,518)

 

3,833

 

 

25

 

(685)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net (loss) income from continuing operations

 

(3,540)

 

17,438

 

48,392

 

 

(29,423)

 

65,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations attributable to common shareholders of JOYY Inc.

 

(111,693)

 

(29,727)

 

16,401

 

 

(201,383)

 

(13,326)

 

Share-based compensation expenses

 

(9,095)

 

14,536

 

8,745

 

 

13,963

 

23,281

 

Amortization of intangible assets from business acquisitions

 

11,683

 

12,409

 

12,365

 

 

31,986

 

24,774

 

Impairment of investments

 

90,499

 

-

 

-

 

 

90,499

 

-

 

Gain on disposal of subsidiaries

 

(4,959)

 

-

 

-

 

 

(4,959)

 

-

 

(Gain) loss on disposal and deemed disposal of investments

 

(676)

 

(1,918)

 

393

 

 

(5,019)

 

(1,525)

 

Loss (gain) on fair value change of investments

 

841

 

20,132

 

(1,282)

 

 

15,992

 

18,850

 

Reconciling items on the share of equity method investments

 

22,346

 

11,143

 

12,774

 

 

29,710

 

23,917

 

Gain on extinguishment of debt and derivative

 

(1,649)

 

(2,115)

 

(4,017)

 

 

(1,266)

 

(6,132)

 

Interest expenses related to the convertible bonds’ amortization to face value

 

713

 

629

 

619

 

 

1,407

 

1,248

 

Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders

 

2,345

 

2,250

 

2,250

 

 

4,736

 

4,500

 

Income tax effects on non-GAAP adjustments

 

(568)

 

(4,518)

 

3,833

 

 

25

 

(685)

 

Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders

 

(256)

 

(1,930)

 

(629)

 

 

(223)

 

(2,559)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net (loss) income from continuing operations attributable to controlling interest and common shareholders of JOYY Inc.

 

(469)

 

20,891

 

51,452

 

 

(24,532)

 

72,343

 


Non-GAAP net (loss) income from continuing operations per ADS

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

(0.01)

 

0.29

 

0.72

 

 

(0.31)

 

1.00

 

—Diluted

 

(0.01)

 

0.28

 

0.65

 

 

(0.31)

 

0.93

 

Weighted average number of ADS used in calculating Non-GAAP net (loss) income from continuing operations per ADS

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

77,997,827

 

72,881,330

 

71,893,282

 

 

78,596,888

 

72,604,421

 

—Diluted

 

77,997,827

 

83,897,416

 

82,225,273

 

 

78,596,888

 

83,090,336

 


JOYY INC.

UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

 

 

June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Elimination(1)

 

Total

 

 

 

US$

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

Live streaming

 

480,446

 

84,793

 

-

 

565,239

 

Others

 

22,197

 

8,795

 

(133)

 

30,859

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

502,643

 

93,588

 

(133)

 

596,098

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues(2)

 

(309,271)

 

(68,533)

 

133

 

(377,671)

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

193,372

 

25,055

 

-

 

218,427

 

Operating expenses(2)

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(45,997)

 

(16,879)

 

-

 

(62,876)

 

Sales and marketing expenses

 

(78,690)

 

(19,725)

 

-

 

(98,415)

 

General and administrative expenses

 

(11,100)

 

(12,580)

 

-

 

(23,680)

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

(135,787)

 

(49,184)

 

-

 

(184,971)

 

 

 

 

 

 

 

 

 

 

 

Other income

 

3,601

 

1,685

 

-

 

5,286

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

61,186

 

(22,444)

 

-

 

38,742

 

 

 

 

 

 

 

 

 

 

 

Interest expenses

 

(1,117)

 

(3,096)

 

857

 

(3,356)

 

Interest income and investment income

 

1,750

 

17,049

 

(857)

 

17,942

 

Foreign currency exchange gain (losses), net

 

12,839

 

(330)

 

-

 

12,509

 

Gain on extinguishment of debt and derivative

 

-

 

4,017

 

-

 

4,017

 

Loss on disposal and deemed disposal of investments

 

-

 

(393)

 

-

 

(393)

 

Gain on fair value change of investments

 

-

 

1,282

 

-

 

1,282

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expenses

 

74,658

 

(3,915)

 

-

 

70,743

 

 

 

 

 

 

 

 

 

 

 

Income tax expenses

 

(8,583)

 

(14,361)

 

-

 

(22,944)

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before share of loss in equity method investments, net of income taxes

 

66,075

 

(18,276)

 

-

 

47,799

 

 

 

 

 

 

 

 

 

 

 

Share of loss in equity method investments, net of income taxes

 

-

 

(32,837)

 

-

 

(32,837)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

66,075

 

(51,113)

 

-

 

14,962

 

 

 

 

 

 

 

 

 

 

 

(1)   The elimination mainly consists of revenues and expenses generated from services among Bigo and all other segments, and interest income and interest expenses generated from the loan between Bigo and all other segments.

(2)   Share-based compensation was allocated in cost of revenues and operating expenses as follows:

 

 

Three Months Ended

 

 

June 30, 2022

 

 

 

 

 

Bigo

 

All other

 

Total

 

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

Cost of revenues

 

918

 

426

 

1,344

Research and development expenses

 

2,994

 

2,099

 

5,093

Sales and marketing expenses

 

193

 

89

 

282

General and administrative expenses

 

1,357

 

669

 

2,026


JOYY INC.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

 

June 30, 2022

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Total

 

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

Operating income (loss)

 

61,186

 

(22,444)

 

38,742

Share-based compensation expenses

 

5,462

 

3,283

 

8,745

Amortization of intangible assets from business acquisitions

 

11,225

 

1,140

 

12,365

 

 

 

 

 

 

 

Non-GAAP operating income (loss)

 

77,873

 

(18,021)

 

59,852

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

66,075

 

(51,113)

 

14,962

Share-based compensation expenses

 

5,462

 

3,283

 

8,745

Amortization of intangible assets from business acquisitions

 

11,225

 

1,140

 

12,365

Gain on fair value change of investments

 

-

 

(1,282)

 

(1,282)

Loss on disposal and deemed disposal of investments

 

-

 

393

 

393

Reconciling items on the share of equity method investments

 

-

 

12,774

 

12,774

Gain on extinguishment of debt and derivative

 

-

 

(4,017)

 

(4,017)

Interest expenses related to the convertible bonds’ amortization to face value

 

-

 

619

 

619

Income tax effects on non-GAAP adjustments

 

3,578

 

255

 

3,833

 

 

 

 

 

 

 

Non-GAAP net income (loss) from continuing operations

 

86,340

 

(37,948)

 

48,392

 

 

 

 

 

 

 

JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

 

 

March 31 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Elimination(1)

 

Total

 

 

 

US$

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

Live streaming

 

513,154

 

76,945

 

-

 

590,099

 

Others

 

21,429

 

12,283

 

(31)

 

33,681

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

534,583

 

89,228

 

(31)

 

623,780

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues(2)

 

(350,563)

 

(72,092)

 

31

 

(422,624)

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

184,020

 

17,136

 

-

 

201,156

 

 

 

 

 

 

 

 

 

 

 

Operating expenses(2)

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(46,606)

 

(17,492)

 

-

 

(64,098)

 

Sales and marketing expenses

 

(81,937)

 

(22,430)

 

-

 

(104,367)

 

General and administrative expenses

 

(14,634)

 

(17,461)

 

-

 

(32,095)

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

(143,177)

 

(57,383)

 

-

 

(200,560)

 

 

 

 

 

 

 

 

 

 

 

Other income

 

4,351

 

1,390

 

-

 

5,741

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

45,194

 

(38,857)

 

-

 

6,337

 

 

 

 

 

 

 

 

 

 

 

Interest expenses

 

(788)

 

(3,069)

 

788

 

(3,069)

 

Interest income and investment income

 

1,003

 

18,004

 

(788)

 

18,219

 

Foreign currency exchange losses, net

 

(2,857)

 

(507)

 

-

 

(3,364)

 

Gain on extinguishment of debt and derivative

 

-

 

2,115

 

-

 

2,115

 

Gain on disposal and deemed disposal of investments

 

-

 

1,918

 

-

 

1,918

 

Loss on fair value change of investments

 

-

 

(20,132)

 

-

 

(20,132)

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax benefits (expenses)

 

42,552

 

(40,528)

 

-

 

2,024

 

 

 

 

 

 

 

 

 

 

 

Income tax benefits (expenses)

 

2,108

 

(1,303)

 

-

 

805

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before share of loss in equity method investments, net of income taxes

 

44,660

 

(41,831)

 

-

 

2,829

 

 

 

 

 

 

 

 

 

 

 

Share of loss in equity method investments, net of income taxes

 

-

 

(35,689)

 

-

 

(35,689)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

44,660

 

(77,520)

 

-

 

(32,860)

 

 

 

 

 

 

 

 

 

 

 

(1)   The elimination mainly consists of revenues and expenses generated from services among Bigo and all other segments, and interest income and interest expenses generated from the loan between Bigo and all other segments.


(2)   Share-based compensation was allocated in cost of revenues and operating expenses as follows:

 

 

Three Months Ended

 

 

 

March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Total

 

 

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

 

 

Cost of revenues

 

1,386

 

3,159

 

4,545

 

Research and development expenses

 

4,629

 

1,781

 

6,410

 

Sales and marketing expenses

 

77

 

174

 

251

 

General and administrative expenses

 

1,443

 

1,887

 

3,330

 


JOYY INC.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

 

 

March 31 2022

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Total

 

 

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

45,194

 

(38,857)

 

6,337

 

Share-based compensation expenses

 

7,535

 

7,001

 

14,536

 

Amortization of intangible assets from business acquisitions

 

11,225

 

1,184

 

12,409

 

 

 

 

 

 

 

 

 

Non-GAAP operating income (loss)

 

63,954

 

(30,672)

 

33,282

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

44,660

 

(77,520)

 

(32,860)

 

Share-based compensation expenses

 

7,535

 

7,001

 

14,536

 

Amortization of intangible assets from business acquisitions

 

11,225

 

1,184

 

12,409

 

Loss on fair value change of investments

 

-

 

20,132

 

20,132

 

Gain on disposal and deemed disposal of investments

 

-

 

(1,918)

 

(1,918)

 

Reconciling items on the share of equity method investments

 

-

 

11,143

 

11,143

 

Gain on extinguishment of debt and derivative

 

-

 

(2,115)

 

(2,115)

 

Interest expenses related to the convertible bonds’ amortization to face value

 

-

 

629

 

629

 

Income tax effects on non-GAAP adjustments

 

(3,517)

 

(1,001)

 

(4,518)

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss) from continuing operations

 

59,903

 

(42,465)

 

17,438

 

 

 

 

 

 

 

 

 

JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

 

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Elimination(1)

 

Total

 

 

 

US$

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

Live streaming

 

576,498

 

53,128

 

-

 

629,626

 

Others

 

21,273

 

10,815

 

-

 

32,088

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

597,771

 

63,943

 

-

 

661,714

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues(2)

 

(406,359)

 

(51,913)

 

-

 

(458,272)

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

191,412

 

12,030

 

-

 

203,442

 

Operating expenses(2)

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(73,061)

 

(27,683)

 

-

 

(100,744)

 

Sales and marketing expenses

 

(96,673)

 

(15,478)

 

-

 

(112,151)

 

General and administrative expenses

 

6,126

 

(107,240)

 

-

 

(101,114)

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

(163,608)

 

(150,401)

 

-

 

(314,009)

 

 

 

 

 

 

 

 

 

 

 

Gain on disposal of subsidiaries

 

-

 

4,959

 

-

 

4,959

 

Other income

 

1,262

 

3,264

 

-

 

4,526

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

29,066

 

(130,148)

 

-

 

(101,082)

 

 

 

 

 

 

 

 

 

 

 

Other non-operating expenses

 

-

 

(381)

 

-

 

(381)

 

Interest expenses

 

(624)

 

(3,348)

 

370

 

(3,602)

 

Interest income and investment income

 

245

 

23,614

 

(370)

 

23,489

 

Foreign currency exchange losses, net

 

(5,360)

 

(549)

 

-

 

(5,909)

 

(Loss) gain on extinguishment of debt and derivative

 

(45)

 

1,694

 

-

 

1,649

 

Gain on disposal and deemed disposal of investments

 

-

 

676

 

-

 

676

 

Loss on fair value change of investments

 

-

 

(841)

 

-

 

(841)

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expenses

 

23,282

 

(109,283)

 

-

 

(86,001)

 

 

 

 

 

 

 

 

 

 

 

Income tax benefits (expenses)

 

352

 

(3,052)

 

-

 

(2,700)

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before share of loss in equity method investments, net of income taxes

 

23,634

 

(112,335)

 

-

 

(88,701)

 

 

 

 

 

 

 

 

 

 

 

Share of loss in equity method investments, net of income taxes

 

-

 

(23,974)

 

-

 

(23,974)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

23,634

 

(136,309)

 

-

 

(112,675)

 

 

 

 

 

 

 

 

 

 

 

(1) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments.

(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

 

 

Three Months Ended

 

 

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

Total

 

 

 

US$

 

US$

US$

 

 

 

 

 

 

 

 

Cost of revenues

 

2,330

 

745

3,075

 

Research and development expenses

 

4,489

 

3,432

7,921

 

Sales and marketing expenses

 

208

 

202

410

 

General and administrative expenses

 

(22,619)

 

2,118

(20,501)

 


JOYY INC.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

 

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Total

 

 

 

US$

 

US$

 

US$

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

29,066

 

(130,148)

 

(101,082)

 

Share-based compensation expenses

 

(15,592)

 

6,497

 

(9,095)

 

Amortization of intangible assets from business acquisitions

 

11,225

 

458

 

11,683

 

Impairment of investments

 

-

 

90,499

 

90,499

 

Gain on disposal of subsidiaries

 

-

 

(4,959)

 

(4,959)

 

 

 

 

 

 

 

 

 

Non-GAAP operating income (loss)

 

24,699

 

(37,653)

 

(12,954)

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

23,634

 

(136,309)

 

(112,675)

 

Share-based compensation expenses

 

(15,592)

 

6,497

 

(9,095)

 

Amortization of intangible assets from business acquisitions

 

11,225

 

458

 

11,683

 

Impairment of investments

 

-

 

90,499

 

90,499

 

Gain on disposal of subsidiaries

 

-

 

(4,959)

 

(4,959)

 

Loss on fair value change of investments

 

-

 

841

 

841

 

Gain on disposal and deemed disposal of investments

 

-

 

(676)

 

(676)

 

Reconciling items on the share of equity method investments

 

-

 

22,346

 

22,346

 

Loss (gain) on extinguishment of debt and derivative

 

45

 

(1,694)

 

(1,649)

 

Interest expenses related to the convertible bonds’ amortization to face value

 

-

 

713

 

713

 

Income tax effects on non-GAAP adjustments

 

128

 

(696)

 

(568)

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss) from continuing operations

 

19,440

 

(22,980)

 

(3,540)