Net profit increases 34.8% year over year, BIGO sustains revenue growth

SINGAPORE, May 29, 2024 /PRNewswire/ — JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”), a leading global technology company, announced its unaudited financial results for the first quarter of 2024 .

During the first quarter, JOYY’s revenue was $564.6 million. The company’s main business segment, BIGO, continued its revenue recovery trend, generating revenues of US$505.2 million, an increase of 8.0% year-over-year. JOYY reported net income and non-GAAP1 net income of $45.3 million and $67.2 million, with GAAP and non-GAAP1 net margins of 8.0% and 11.9%, respectively. BIGO segment net income and non-GAAP1 net income reached $61.0 million and $71.2 million, with GAAP and non-GAAP1 net income margins of 12.1% and 14.1%, respectively . JOYY sustained its positive operating cash flows, generating $75.0 million in the first quarter.

David Xueling Li, President and CEO of JOYY, commented: “We are off to a strong start in 2024, executing on our strategic priorities and delivering results that exceeded our expectations. During the quarter, BIGO maintained its revenue recovery momentum, with its revenue increasing by 8 .0% year over year, driven by a steady 6.9% increase in paying users Additionally, as we continue to strategically expand and diversify our revenue streams, BIGO’s non-live streaming revenues have grown substantially. year-over-year cost discipline and improved efficiency contributed to annual increases of 61.8% and 34.8% in group-wide GAAP and non-GAAP net profits, respectively. strong financial position, we remain committed to returning value to our shareholders. In the first quarter of 2024, we repurchased an additional $54.5 million worth of our shares, reflecting our confidence in the company’s long-term prospects. Looking to the future, we will continue to enhance our product experience and drive operational innovations. to generate sustainable and profitable growth for our global business.”

First Quarter 2024 Financial Highlights

• Net revenue in the first quarter of 2024 was US$564.6 million.

• Net profit attributable to controlling interest in JOYY in the first quarter was US$45.3 million, compared to US$28.0 million in the corresponding period of 2023.

• Non-GAAP1 net income attributable to JOYY’s controlling and common shareholders in the first quarter was $67.2 million, compared to $49.9 million in the corresponding period of 2023.

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Ffirst Quarter 2024 Business Highlights

In the first quarter, Bigo Live’s revenue continued its year-over-year recovery. Specifically, revenues from developed countries grew by 14.8%, accompanied by a 17.2% increase in paying users in these regions. During the quarter, Bigo Live remained focused on its user acquisition strategy, channeling more resources to developed countries and regions to improve monetization efficiency, resulting in MAU growth of 8.9% year-over-year in these countries and regions .

Bigo Live continued to expand its content and optimize services for creators. In the first quarter, it organized several innovative online and offline marketing initiatives. In February, Bigo Live participated in the Sanremo Music Festival, the world-famous Italian music competition and awards ceremony. As partner organizer, Bigo Live showcased ten of its most talented streamers in a two-hour music extravaganza that was broadcast around the world.

Bigo Live launched an intelligent management system for streamers and agencies, which significantly streamlined the hiring and management processes. This increase in efficiency led to a 4.9% quarter-over-quarter increase in newly hired streamers. Family-based operational activities also played a fundamental role this quarter, strengthening social ties within the Bigo Live user community. On a sequential basis, their approach resulted in a 1.1% increase in paying household users, a 1.5% increase in contracted streamers within households, and a 3.2% increase in daily active users in household groups. Bigo Live also simplified and updated its product features, which resulted in sequential increases of 1.1% in next-day user retention and 5.4% in average viewer time spent per live session. Improvements to live room tools and interactive features contributed to a 5.3% sequential increase in average duration per live session and a 4.4% sequential increase in the number of live users in multi-room guests.

In the first quarter, Likee’s revenue continued to recover year over year and maintained its profitability. Advertising revenues grew 1.1x on an annual basis and DAUs in the key European market maintained sequential growth.

Likee’s recent launch of interactive gaming features was instrumental in breaking the ice and fostering connections between users, leading to substantial growth in the number of paying users. During Q1, Likee launched a series of engaging online and offline community events for creators, users and brands. These included the global Likee Party and the Middle East MENA Gala co-hosted with Bigo Live. As Likee continued to enhance its services for creators and expanded its monetization tools and incentives for premium creators, its number of top creators increased 13.6% from the previous quarter.

Hago maintained positive operating cash flow during the first quarter. Hago’s implementation of more gamified interactions and paid features has effectively increased user engagement and monetization. A notable success was the launch of the “Fly Across the World” event, covering the main countries where Hago operates. By participating in the event, users could virtually “travel” to multiple countries, collect treasures, claim and care for their pet travel companions, and tip virtual gifts tailored to each location’s unique culture and traditions. The event received enthusiastic feedback, with almost a third of Hago’s total paid users participating. During the first quarter, user engagement on Hago also increased notably, with the average daily time spent on social channels increasing 2.8% to 102 minutes, and time spent in live audio streaming rooms with multiple guests increasing 2.9% compared to the previous quarter.

Alongside its innovative product marketing strategies, JOYY remains steadfast in its commitment to integrating the principles of sustainable development at the core of its local operations around the world. In March, BIGO launched a series of regional events across the Middle East and Southeast Asia to celebrate Ramadan, fostering a sense of community among users during this festive period. BIGO has also established partnerships with several international charities, including the Indonesian Cancer Foundation, Saudi Arabia’s Namaa National Association, Bangladesh’s JAAGO Foundation and Pakistan’s Alkhidmat Foundation. Together, BIGO and these charities have initiated a series of charitable giving activities on BIGO’s platforms, inspiring hundreds of thousands of its users to join the cause and provide assistance to local families, patients and children in need.

JOYY has also actively engaged in dialogues with government agencies, industry leaders, entrepreneurs and other stakeholders in its key markets to align the Company’s regional operations with the economic and sustainable development goals of local communities. For example, in January, BIGO participated in the Jordan-Singapore Technology Alliance Forum, where BIGO and the Jordan Information and Communication Technology Association jointly signed a memorandum of understanding. This partnership aims to promote regional technological innovation and facilitate economic growth. In March, BIGO participated in LEAP, the largest technology exhibition in the Middle East, where it showcased its AI-based technologies and solutions. BIGO’s presence at this prestigious event highlights the Company’s support for the sustainable development of the region and its commitment to promoting entrepreneurship, innovation and digital transformation.

1. For details on non-GAAP measures, including reconciliations of GAAP measures to non-GAAP measures, see the press release entitled “JOYY Reports First Quarter 2024 Unaudited Financial Results” issued by the Company on May 29, 2024 .

(PRNewsfoto/JOYY Inc)

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