JOYY Reports Second Quarter 2023 Results: US$155.1 Million Net Profit and Sustained User Growth
SINGAPORE, Aug. 30, 2023 /PRNewswire/ -- JOYY Inc. (NASDAQ: YY) ("JOYY" or the "Company"), a global technology company, announced its unaudited financial results for the second quarter of 2023.
During the second quarter of 2023, JOYY's total revenues were US$547.3 million, with the BIGO segment's revenue reaching US$471.1 million. JOYY recorded net profit and non-GAAP net profit[1] of US$155.1 million and US$97.3 million, with GAAP and non-GAAP net margins[1] of 28.3% and 17.8%, respectively. The BIGO segment generated US$60.4 million operating profit and US$75.5 million non-GAAP operating profit[1], and it further expanded its GAAP and non-GAAP operating profit margin[1] to 12.8% and 16.0%, respectively. JOYY also maintained a positive operating cash flow of US$61.8 million. At the same time, JOYY's global MAUs achieved both year-over-year and quarter-over-quarter growth to 275.6 million. Of particular note, Bigo Live's MAUs sustained its strong growth momentum. This was the fifth consecutive quarter in which Bigo Live recorded double-digit year-over-year MAU growth.
In addition, JOYY significantly stepped up its share repurchases during the second quarter and bought back an additional US$214.3 million of its shares. In total, it returned US$299.7 million to its shareholders through share buybacks and dividends during the first half of this year.
Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, "Powered by constant product improvements and operational enhancements, BIGO successfully navigated macro headwinds and improved its GAAP and non-GAAP operating margins. At the same time, our global MAUs achieved both year-over-year and quarter-over-quarter growth. Notably, Bigo Live sustained its strong user growth momentum, increasing its MAUs by 18.0% year over year to 38.5 million. Going forward, we will continue to drive effective, high-quality growth through ongoing product and operational innovations, and prioritize initiatives that align with our long-term strategies."
Second Quarter 2023 Financial Highlights
Net revenues were US$547.3 million, compared to US$596.1 million in the corresponding period of 2022.
Net income attributable to controlling interest of JOYY was US$155.1 million, compared to US$18.7 million in the corresponding period of 2022.
Non-GAAP net income[1] attributable to controlling interest and common shareholders of JOYY was US$97.3 million, compared to US$51.5 million in the corresponding period of 2022.
Second Quarter 2023 Business Highlights
During the second quarter, Bigo Live maintained its double-digit user growth momentum for the fifth consecutive quarter, with MAUs increasing by 18.0% year over year to 38.5 million. Growth was observed across several key regions, with year-over-year growth rates of 10.3% in Europe, 14.9% in the Middle East, and 20.8% in Southeast Asia and other emerging markets. During the quarter, Bigo Live launched a series of themed activities across various regions, delivering a continuous stream of diverse, local, and premium content to users. In April, Bigo Live partnered with a social media influencer and launched a reality dating show in North America. This was the second original reality show to have its production process, including script planning, filming, production, and marketing, carried out by Bigo Live's local team. Bigo Live's Family Month event introduced in May generated significant user interest and attention. The number of contracted streamers who are members of a Family grew by 5.1% from the first quarter, and daily paying users with Family membership rose by 3.8%. On the content development front, Bigo Live retained its focus on incentivizing the creation of video content in the BAR channel, which drove a 26.5% sequential increase in the amount of BAR video content produced in the second quarter, with the total number of video shares and downloads doubling over the same period. At the same time, Bigo Live enhanced social interactions, which fueled a 1.0% sequential increase in the number of users going live in multi-guest rooms, along with a 15.1% sequential increase in the number of users actively engaging per live session. Alongside these developments, Bigo Live is actively and progressively embedding social responsibility into its day-to-day operations. During the quarter, Bigo Live extended its support to various programs under several international charities such as the Indonesian Cancer Foundation (YKI) and the Children's Cancer Center of Lebanon (CCCL).
Likee's focus remains set on improving product monetization efficiency and organic user acquisition capabilities. During the second quarter, Likee increased its revenues by 11.2% sequentially, and continued to deliver profitability at the product level. This marks its second consecutive half-year of achieving breakeven, after initially doing so in the second half of last year. Likee also further enhanced user interactions within its community. In the second quarter, overall user engagement, as measured by the ratio of DAUs to MAUs, grew by 4.2% sequentially, while average user time spent increased by 15.8% in the same period. IM penetration rate continued to grow, increasing by 6.8% sequentially. In the second quarter, Likee further developed its creator services and improved user content and social experiences. To increase creators' efficiency, Likee rolled out a video collection feature to streamline the video production process. Likee also furnished creators with data and analytics tools to help them fine-tune their content and better align it with the interests of their audience. Likee has also supported its content creators by connecting them with e-commerce platforms and brand merchants to generate additional monetization channels. As a result of continuous and comprehensive creator support programs, the number of official creators on Likee increased by 4.0% sequentially in the second quarter.
During the second quarter, Hago's revenue increased by 6.4% sequentially, with continued optimization of monetization efficiency and user social engagement. To improve users' paying sentiment and enhance monetization, Hago launched Celebration Rooms, a new kind of multi-guest room themed for specific occasions such as birthday parties. It also introduced a voting feature to multi-guest rooms and enabled additional decorations and communication privileges for Hago couples. Hago also optimized the distribution of multi-guest, real-time interactive rooms across different regions, and effectively upgraded users' interactive social experiences through the gamification of dressing-up 3D avatars. These product development efforts resulted in a 1.2% sequential increase in the penetration rate of Hago's social channels. Average user time spent on Hago per day also rose, growing by 5.2% from the first quarter of 2023.
1. For details of the non-GAAP measures, including the reconciliations of GAAP measures to non-GAAP measures, please refer to the press release titled "JOYY Reports Second Quarter 2023 Unaudited Financial Results" issued by the Company on August 30, 2023.
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