JOYY Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results

SINGAPORE, March 19, 2024 (GLOBE NEWSWIRE) — JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”), a global technology company, today announced its unaudited financial results for the fourth quarter and full year of 2023.

Fourth Quarter 2023 Financial Highlights1

  • Net revenues were US$569.8 million, compared to US$604.9 million in the corresponding period of 2022.
  • Net income attributable to controlling interest of JOYY2 was US$45.8 million, compared to net loss of US$377.5 million in the corresponding period of 2022.
  • Non-GAAP net income attributable to controlling interest and common shareholders of JOYY3 was US$64.2 million, compared to US$50.0 million in the corresponding period of 2022.

Full Year 2023 Highlights

  • Net revenues were US$2,267.9 million, compared to US$2,411.5 million in 2022.
  • Net income attributable to controlling interest of JOYY was US$301.8 million, compared to US$128.9 million in 2022.
  • Non-GAAP net income attributable to controlling interest and common shareholders of JOYY was US$292.5 million, compared to US$199.3 million in 2022.

Fourth Quarter 2023 Operational Highlights

  • Average mobile MAUs of Bigo Live increased by 4.5% to 38.4 million from 36.8 million in the corresponding period of 2022.
  • Average mobile MAUs of Likee was 39.1 million, compared to 45.3 million in the corresponding period of 2022, primarily due to reduced spending on user acquisition via advertisement.
  • Average mobile MAUs of Hago was 4.6 million, compared to 6.7 million in the corresponding period of 2022, primarily due to reduced spending on user acquisition via advertisement.
  • Global average mobile MAUs4 increased by 2.6% to 274.9 million from 267.9 million in the corresponding period of 2022.
  • Total number of paying users of BIGO (including Bigo Live, Likee and imo)5 increased by 7.9% to 1.67 million from 1.55 million in the corresponding period of 2022.
  • Average revenue per paying user of BIGO (including Bigo Live, Likee and imo)6 was US$244.8, compared to US$251.3 in the corresponding period of 2022.

Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “2023 proved to be a year of progress. Our focus on continuous product enhancements, nimble operational strategies, and our strong execution yielded positive results, despite the prevailing macro challenges. Importantly, global average mobile MAUs have now resumed year-over-year growth for three consecutive quarters. Our relentless optimization of operational efficiency led to enhanced profitability for the third consecutive year. During the fourth quarter, BIGO sustained its top line recovery, with revenue increasing by 3.1% on an annual basis, driven by a steady 7.9% year-over-year growth in its number of paying users. As we move into 2024, globalization through localization remains our foremost strategy and the cornerstone of our global success. We will continue to cultivate our content and social ecosystems to steadily grow our thriving user community and reinforce our leadership in core geographic regions. We will dedicate our resources to build our core strengths, and carefully explore long-term growth opportunities. By driving innovations in both our products and operations, we expect to further diversify our revenue stream and capture long-term sustainable growth. We remain committed to creating and returning value to our shareholders, and our track record over the past three years is a testament to our long-term dedication.”

Fourth Quarter 2023 Financial Results

NET REVENUES

Net revenues were US$569.8 million in the fourth quarter of 2023, compared to US$604.9 million in the corresponding period of 2022.

Live streaming revenues were US$486.2 million in the fourth quarter of 2023, compared to US$527.4 million in the corresponding period of 2022, primarily due to our proactive adjustments to certain non-core products, partially offset by the increase in the live streaming revenues of BIGO.

Other revenues increased by 7.9% to US$83.6 million in the fourth quarter of 2023 from US$77.5 million in the corresponding period of 2022.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 6.2% to US$368.4 million in the fourth quarter of 2023 from US$392.6 million in the corresponding period of 2022. Revenue-sharing fees and content costs were US$242.2 million in the fourth quarter of 2023, compared to US$247.5 million in the corresponding period of 2022.

Gross profit was US$201.5 million in the fourth quarter of 2023, compared to US$212.3 million in the corresponding period of 2022. Gross margin was 35.4% in the fourth quarter of 2023, compared to 35.1% in the corresponding period of 2022.

OPERATING EXPENSES AND INCOME

Operating expenses were US$199.4 million in the fourth quarter of 2023, compared to US$231.2 million in the corresponding period of 2022. Among the operating expenses, sales and marketing expenses decreased to US$92.3 million in the fourth quarter of 2023 from US$100.8 million in the corresponding period of 2022, primarily due to the Company’s optimization of overall sales and marketing strategies across various product lines to focus more on return-on-investment and effectiveness of user acquisition. General and administrative expenses decreased to US$34.6 million in the fourth quarter of 2023 from US$41.9 million in the corresponding period of 2022, mainly due to the Company’s efforts in improving management efficiency during the year.

Operating income was US$4.8 million in the fourth quarter of 2023, compared to operating loss of US$14.2 million in the corresponding period of 2022. Operating income margin was 0.8% in the fourth quarter of 2023, compared to operating loss margin of 2.3% in the corresponding period of 2022.

Non-GAAP operating income7 was US$27.9 million in the fourth quarter of 2023, compared to US$27.8 million in the corresponding period of 2022. Non-GAAP operating income margin8 was 4.9% in the fourth quarter of 2023, compared to 4.6% in the corresponding period of 2022.

NET INCOME

Net income attributable to controlling interest of JOYY was US$45.8 million in the fourth quarter of 2023, compared to net loss of US$377.5 million in the corresponding period of 2022. The net loss in the fourth quarter of 2022 was primarily due to an impairment loss from an equity method investment recognized in that quarter. Net income margin was 8.0% in the fourth quarter of 2023, compared to net loss margin of 62.4% in the corresponding period of 2022.

Non-GAAP net income attributable to controlling interest and common shareholders of JOYY was US$64.2 million in the fourth quarter of 2023, compared to US$50.0 million in the corresponding period of 2022. Non-GAAP net income margin9 was 11.3% in the fourth quarter of 2023, compared to non-GAAP net income margin of 8.3% in the corresponding period of 2022.

NET INCOME PER ADS

Diluted net income per ADS10 was US$0.74 in the fourth quarter of 2023, compared to diluted net loss per ADS of US$5.38 in the corresponding period of 2022.

Non-GAAP diluted net income per ADS11 was US$1.01 in the fourth quarter of 2023, compared to US$0.65 in the corresponding period of 2022.

BALANCE SHEET AND CASH FLOWS

As of December 31, 2023, 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$3,685.6 million. For the fourth quarter of 2023, net cash from operating activities was US$97.2 million.

SHARES OUTSTANDING

As of December 31, 2023, the Company had a total of 1,217.4 million common shares outstanding, representing the equivalent of 60.9 million ADSs assuming the conversion of all common shares into ADSs.

Full Year 2023 Financial Results

Net revenues for the full year of 2023 were US$2,267.9 million, compared to US$2,411.5 million in 2022.

Operating income was US$28.8 million for the full year of 2023, compared to US$50.7 million in 2022. Operating income margin was 1.3 % in 2023, compared to 2.1% in 2022.

Non-GAAP operating income was US$130.5 million for the full year of 2023, compared to US$164.0 million in 2022. Non-GAAP operating income margin was 5.8 % in 2023, compared to 6.8% in 2022.

Net income attributable to controlling interest of JOYY for the full year of 2023 increased by 134.2% to US$301.8 million from US$128.9 million in 2022, primarily as a result of disciplined marketing spending, realized gains from the disposal of certain investments during the year, and increased interest income driven by higher market interest rates. Net income margin for the full year of 2023 was 13.3%, compared to 5.3% in 2022.

Non-GAAP net income attributable to controlling interest and common shareholders of JOYY for the full year of 2023 increased by 46.8% to US$292.5 million from US$199.3 million in 2022. Non-GAAP net income margin for the full year of 2023 was 12.9%, compared to 8.3% in 2022.

Diluted net income per ADS for the full year of 2023 was US$4.90, compared to US$1.59 in 2022. Non-GAAP diluted net income per ADS was US$4.13 in 2023, compared to US$2.54 in 2022.

Business Outlook

For the first quarter of 2024, the Company expects net revenues to be between US$543 million and US$560 million. This forecast reflects the Company’s current and preliminary views on the market, operational conditions and business strategies, which are subject to changes, particularly as to the potential impact from increasing macroeconomic uncertainties.

Recent Developments

Share Repurchase Program

In November 2023, the Company’s board of directors authorized the continued use of the unutilized quota under the pre-existing share repurchase program of US$530 million, for another 12-month period starting from the end of November 2023. As of March 15, 2024, the Company has repurchased US$25 million of its shares on the open market under this program.

Latest Development in Sale of YY Live

On January 1, 2024, the Company received a written notice from an affiliate of Baidu, purporting to terminate the share purchase agreement, dated November 16, 2020, as subsequently amended or supplemented, in connection with the sale of YY Live to Baidu. Baidu asserted in the written notice that it has and exercised the right to terminate the referenced share purchase agreement and effectively cancel the transaction. The Company is in discussion with Baidu on the next steps following the termination of the share purchase agreement. The Company is also seeking legal advice and will consider all options at its disposal in response to Baidu’s written notice. From January 1, 2024 to the date of this press release, the Company has not obtained control over YY Live and has not consolidated YY Live.

Conference Call Information

The Company will hold a conference call at 9:00 PM U.S. Eastern Time on Monday, March 18, 2024 (9:00 AM Singapore/Hong Kong Time on Tuesday, March 19, 2024). Details for the conference call are as follows:

Event Title: JOYY Inc. Fourth Quarter and Full Year 2023 Earnings Conference Call
Conference ID:  #10037588

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

PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10037588-4kognc.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 March 26, 2024, by dialing the following numbers:

United States: 1-855-883-1031
Singapore: 800-101-3223
Hong Kong: 800-930-639
Conference ID: #10037588
   
   

About JOYY Inc.

JOYY is a leading global technology company with a mission to enrich lives through technology. JOYY currently operates several social products, including Bigo Live for live streaming, Likee for short-form videos, Hago for multiplayer social networking, an instant messaging product, and others. The Company has created a highly engaging and vibrant user community for users across the globe. JOYY’s ADSs have been listed on the NASDAQ since November 2012.

Safe Harbor Statement

This press release 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 press release, 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 third 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 global online communication social platform market; the expectation regarding the rate at which to gain active users, especially paying users; JOYY’s ability to monetize the user base; the developments in the sale of YY Live; fluctuations in global economic and business conditions; and assumptions underlying or related to any of the foregoing. A more detailed and full discussion of those risks and other potential 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) attributable to controlling interest of JOYY, non-GAAP net income (loss) margin attributable to controlling interest of JOYY, non-GAAP net income (loss) attributable to common shareholders of JOYY, and basic and diluted non-GAAP net income (loss) per ADS, all of which are non-GAAP financial measures adjusted from the most comparable U.S. GAAP results. 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 (loss) 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) is net income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) 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 (referring 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 the above non-GAAP reconciling items. Non-GAAP net income (loss) attributable to controlling interest of JOYY is net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) 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, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income attributable to non-controlling interest shareholders. Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of JOYY as a percentage of net revenues. Non-GAAP net income (loss) attributable to common shareholders of JOYY is net income (loss) attributable to common shareholders of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) 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, 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, gain on repurchase of redeemable convertible preferred shares of a subsidiary and income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net income (loss) attributable to non-controlling interest shareholders. After the non-GAAP adjustment, non-GAAP net income (loss) attributable to controlling interests of JOYY is equal to the non-GAAP net income (loss) attributable to common shareholders of JOYY. Basic and diluted non-GAAP net income (loss) per ADS is non-GAAP net income (loss) 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 (loss) 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, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders and gain on repurchase of redeemable convertible preferred shares of a subsidiary which may not be recurring in its business, and (iii) income tax expenses and non-GAAP adjustments for net income (loss) attributable to non-controlling interest shareholders, which are affected by the 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 press release.

Investor Relations Contact

JOYY Inc.
Jane Xie/Maggie Yan
Email: [email protected]

ICR, Inc.
Robin Yang
Email: [email protected]

1 On November 16, 2020, the Company entered into definitive agreements with affiliates of 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 matters remaining to be completed, 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. On January 1, 2024, the Company received a written notice from an affiliate of Baidu, purporting to terminate the share purchase agreement, dated November 16, 2020, as subsequently amended or supplemented, in connection with our sale of YY Live to Baidu. Baidu asserted in the written notice that it has and exercised the right to terminate the referenced share purchase agreement and effectively cancel the transaction. The Company is in discussion with Baidu on the next steps following the termination of the share purchase agreement. The Company is also seeking legal advice and will consider all options at its disposal in response to Baidu’s written notice. From January 1, 2024 to the date of this press release, the Company has not obtained control over YY Live and has not consolidated YY Live. To the date of this press release, the latest development of the transaction has not affected the Company’s operating activities or financial results.

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 December 31, 2022, September 30, 2023 and December 31, 2023 and for the twelve months ended December 31, 2022 and December 31, 2023, as presented in this press release, primarily consisted of BIGO, excluding YY Live.

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

3 Non-GAAP net income (loss) attributable to controlling interest of JOYY is a non-GAAP financial measure, which is defined as net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investment, amortization of intangible assets from business acquisitions, gain (loss) 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 of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for net (loss) income attributable to non-controlling interest shareholders. These adjustments amounted to US$18.4 million and US$427.6 million in the fourth quarter of 2023 and 2022, respectively. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

4 Refers to mobile average monthly active users of the social entertainment platforms operated by the Company, including Bigo Live, Likee, imo and Hago. 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 number of paying users during a given period is calculated 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 the Company’s 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 “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release 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 “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

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

10 ADS refers to 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) per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of diluted net income (loss) per ADS. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS and per ADS data)
               
      December 31,
  December 31,
      2022
  2023
      US$   US$
Assets            
Current assets            
  Cash and cash equivalents   1,214,449     1,063,956  
  Restricted cash and cash equivalents   303,370     319,250  
  Short-term deposits   2,360,545     1,970,346  
  Restricted short-term deposits   47,741     57,243  
  Short-term investments   362,640     274,846  
  Accounts receivable, net   117,927     130,700  
  Amounts due from related parties   1,794     810  
  Prepayments and other current assets(1)   236,183     255,489  
               
Total current assets   4,644,649     4,072,640  
               
Non-current assets            
  Long-term deposits       130,000  
  Investments   660,404     544,542  
  Property and equipment, net   343,201     390,681  
  Land use rights, net   330,005     316,070  
  Intangible assets, net   398,300     333,715  
  Right-of-use assets, net   33,196     30,173  
  Goodwill   2,649,307     2,649,281  
  Other non-current assets   12,591     16,763  
               
Total non-current assets   4,427,004     4,411,225  
               
Total assets   9,071,653     8,483,865  
               
Liabilities, mezzanine equity and shareholders’ equity            
  Short-term loan   37,270     52,119  
  Accounts payable   56,000     66,755  
  Deferred revenue   86,014     73,673  
  Advances from customers   3,532     6,047  
  Income taxes payable   78,103     86,100  
  Accrued liabilities and other current liabilities(1)   2,360,002     2,381,189  
  Amounts due to related parties   3,225     2,533  
  Lease liabilities due within one year   12,451     12,388  
  Convertible bonds   435,087     405,603  
               
Total current liabilities   3,071,684     3,086,407  
               
Non-current liabilities            
  Convertible bonds   401,173      
  Lease liabilities   21,601     18,422  
  Deferred revenue   9,765     12,932  
  Deferred tax liabilities   64,262     53,955  
  Other non-current liabilities   436      
               
Total non-current liabilities   497,237     85,309  
               
Total liabilities   3,568,921     3,171,716  
               
 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
           
      December 31,   December 31,
      2022   2023
      US$   US$
           
Mezzanine equity   91,366     22,133  
           
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 1,066,177,028 shares outstanding as of December 31, 2022; 1,317,840,464 shares issued and 890,843,639 shares outstanding as of December 31, 2023, respectively)   13     9  
  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, 2022 and December 31, 2023, respectively)   3     3  
  Treasury Shares (US$0.00001 par value; 251,663,436 and 426,996,825 shares held as of December 31, 2022 and December 31, 2023, respectively)   (655,141 )   (913,939 )
  Additional paid-in capital   3,277,978     3,282,754  
  Statutory reserves   32,536     37,709  
  Retained earnings   2,685,063     2,947,160  
  Accumulated other comprehensive loss   (162,235 )   (197,010 )
           
Total JOYY Inc.’s shareholders’ equity   5,178,217     5,156,686  
           
Non-controlling interests   233,149     133,330  
           
Total shareholders’ equity   5,411,366     5,290,016  
           
Total liabilities, mezzanine equity and shareholders’ equity   9,071,653     8,483,865  
           
(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 consideration received by the Company to date has been 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   Twelve Months Ended
    December 31,   September 30,   December 31,   December 31,   December 31,
    2022   2023   2023   2022   2023
    US$   US$   US$   US$   US$
Net revenues                    
Live streaming(1)   527,423     495,801     486,196     2,225,518     1,979,371  
Others   77,486     71,268     83,643     185,998     288,499  
                     
Total net revenues   604,909     567,069     569,839     2,411,516     2,267,870  
                     
Cost of revenues(2)   (392,579 )   (357,914 )   (368,360 )   (1,559,388 )   (1,454,842 )
                     
Gross profit   212,330     209,155     201,479     852,128     813,028  
                     
Operating expenses(2)                    
Research and development expenses   (73,626 )   (71,608 )   (72,580 )   (261,807 )   (295,503 )
Sales and marketing expenses   (100,812 )   (92,515 )   (92,258 )   (400,435 )   (369,577 )
General and administrative expenses   (41,886 )   (27,139 )   (34,587 )   (141,826 )   (122,661 )
Goodwill impairment   (14,830 )           (14,830 )    
                     
Total operating expenses   (231,154 )   (191,262 )   (199,425 )   (818,898 )   (787,741 )
                     
Loss on deconsolidation and disposal of subsidiaries       (6,177 )           (6,177 )
Other income   4,653     333     2,742     17,505     9,705  
                     
Operating (loss) income   (14,171 )   12,049     4,796     50,735     28,815  
                     
Interest expenses   (3,182 )   (2,139 )   (2,115 )   (12,770 )   (10,420 )
Interest income and investment income   32,020     47,330     47,145     93,148     185,212  
Foreign currency exchange (losses) gains, net   (13,043 )   (5,143 )   (8,158 )   11,666     (2,906 )
Gain (loss) on disposal and deemed disposal of investments   2,365     (2,673 )       4,113     74,851  
Gain on fair value change of investments   12,532     7,112     6,263     424,304     12,425  
Gain on extinguishment of debt and derivative   1,087             63,378      
                     
Income before income tax expenses   17,608     56,536     47,931     634,574     287,977  
                     
Income tax expenses   (4,555 )   (3,001 )   (2,315 )   (34,575 )   (18,856 )
                     
Income before share of (loss) income in equity method investments, net of income taxes   13,053     53,535     45,616     599,999     269,121  
                     
Share of (loss) income in equity method investments, net of income taxes   (403,105 )   11,545     (5,527 )   (498,431 )   3,297  
                     
Net (loss) income   (390,052 )   65,080     40,089     101,568     272,418  
                     
Net loss attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders   12,516     7,812     5,746     27,323     29,398  
                     
Net (loss) income attributable to controlling interest of JOYY Inc.   (377,536 )   72,892     45,835     128,891     301,816  
                     
Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value   (1,530 )   (1,566 )   (350 )   (5,426 )   (5,048 )
Cumulative dividend on subsidiary’s Series A Preferred Shares   (1,000 )           (4,000 )   (2,000 )
Gain on repurchase of redeemable convertible preferred shares of a subsidiary       52,583             52,583  
                     
Net (loss) income attributable to common shareholders of JOYY Inc.   (380,066 )   123,909     45,485     119,465     347,351  
                     
 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
                             
    Three Months Ended   Twelve Months Ended
    December 31,   September 30,
  December 31,
  December 31,
  December 31,
    2022   2023
  2023
  2022
  2023
    US$   US$   US$   US$   US$
                             
Net (loss) income per ADS                            
——Basic   (5.38 )   1.99     0.78     1.66     5.35  
——Diluted   (5.38 )   1.86     0.74     1.59     4.90  
                             
Weighted average number of ADS used in calculating net (loss) income per ADS                            
——Basic   70,629,666     62,266,339     61,876,261     71,969,510     65,434,782  
——Diluted   70,629,666     67,669,387     67,384,074     82,272,422     73,148,827  
                             
                             
(1)    Live streaming revenues by geographical areas were as follows:
                             
    Three Months Ended   Twelve Months Ended
    December 31,   September 30,
  December 31,
  December 31,
  December 31,
    2022   2023
  2023
  2022
  2023
    US$   US$   US$   US$   US$
                             
Mainland China   107,448     59,525     48,928     464,919     284,761  
Others   419,975     436,276     437,268     1,760,599     1,694,610  
                             
(2)    Share-based compensation was allocated in cost of revenues and operating expenses as follows:
                             
    Three Months Ended   Twelve Months Ended
    December 31,   September 30,
  December 31,
  December 31,
  December 31,
    2022   2023
  2023
  2022
  2023
    US$   US$   US$   US$   US$
                             
Cost of revenues   1,240     493     821     8,185     3,575  
Research and development expenses   7,018     4,108     4,020     25,170     19,415  
Sales and marketing expenses   306     110     133     777     797  
General and administrative expenses   2,426     1,586     2,271     9,964     8,192  
                             
 
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share, ADS and per ADS data)
                     
    Three Months Ended   Twelve Months Ended
    December 31,   September 30,   December 31,   December 31,   December 31,
    2022   2023   2023   2022   2023
    US$   US$   US$   US$   US$
                     
Operating (loss) income   (14,171 )   12,049     4,796     50,735     28,815  
Share-based compensation expenses   10,990     6,297     7,245     44,096     31,979  
Amortization of intangible assets from business acquisitions   16,108     15,890     15,890     54,356     63,560  
Impairment of goodwill and investments   14,830             14,830      
Loss on deconsolidation and disposal of subsidiaries       6,177             6,177  
                     
Non-GAAP operating income   27,757     40,413     27,931     164,017     130,531  
                     
Net (loss) income   (390,052 )   65,080     40,089     101,568     272,418  
Share-based compensation expenses   10,990     6,297     7,245     44,096     31,979  
Amortization of intangible assets from business acquisitions   16,108     15,890     15,890     54,356     63,560  
Impairment of goodwill and investments   14,830             14,830      
Loss on deconsolidation and disposal of subsidiaries       6,177             6,177  
(Gain) loss on disposal and deemed disposal of investments   (2,365 )   2,673         (4,113 )   (74,851 )
Gain on fair value change of investments   (12,532 )   (7,112 )   (6,263 )   (424,304 )   (12,425 )
Gain on extinguishment of debt and derivative   (1,087 )           (63,378 )    
Interest expenses related to the convertible bonds’ amortization to face value   601     238     239     2,450     1,583  
Income tax effects on non-GAAP adjustments   72     (4,070 )   (2,095 )   (3,204 )   (11,604 )
Reconciling items on the share of equity method investments   406,073     (10,521 )   4,278     456,669     (9,091 )
                     
Non-GAAP net income   42,638     74,652     59,383     178,970     267,746  
                     
Net (loss) income attributable to common shareholders of JOYY Inc.   (380,066 )   123,909     45,485     119,465     347,351  
Share-based compensation expenses   10,990     6,297     7,245     44,096     31,979  
Amortization of intangible assets from business acquisitions   16,108     15,890     15,890     54,356     63,560  
Impairment of goodwill and investments   14,830             14,830      
Loss on deconsolidation and disposal of subsidiaries       6,177             6,177  
(Gain) loss on disposal and deemed disposal of investments   (2,365 )   2,673         (4,113 )   (74,851 )
Gain on fair value change of investments   (12,532 )   (7,112 )   (6,263 )   (424,304 )   (12,425 )
Gain on extinguishment of debt and derivative   (1,087 )           (63,378 )    
Interest expenses related to the convertible bonds’ amortization to face value   601     238     239     2,450     1,583  
Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders   2,530     1,566     350     9,426     7,048  
Gain on repurchase of redeemable convertible preferred shares of a subsidiary       (52,583 )           (52,583 )
Income tax effects on non-GAAP adjustments   72     (4,070 )   (2,095 )   (3,204 )   (11,604 )
Reconciling items on the share of equity method investments   406,073     (10,521 )   4,278     456,669     (9,091 )
Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders   (5,134 )   (1,311 )   (929 )   (6,995 )   (4,622 )
                     
Non-GAAP net income attributable to controlling interest and common shareholders of JOYY Inc.   50,020     81,153     64,200     199,298     292,522  
                     
                     
Non-GAAP net income per ADS                    
——Basic   0.71     1.30     1.08     2.77     4.51  
——Diluted   0.65     1.22     1.01     2.54     4.13  
                     
Weighted average number of ADS used in calculating Non-GAAP net income per ADS                    
——Basic   70,629,666     62,266,339     61,876,261     71,969,510     65,434,782  
——Diluted   80,812,793     67,669,387     67,384,074     82,272,422     73,148,827  
                     
 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
               
  Three Months Ended
  December 31, 2023
               
  BIGO   All other   Elimination(1)   Total
  US$   US$   US$   US$
Net revenues              
Live streaming 459,152     27,044         486,196  
Others 32,109     51,992     (458 )   83,643  
               
Total net revenues 491,261     79,036     (458 )   569,839  
               
Cost of revenues(2) (308,977 )   (59,481 )   98     (368,360 )
               
Gross profit 182,284     19,555     (360 )   201,479  
               
Operating expenses(2)              
Research and development expenses (41,011 )   (31,839 )   270     (72,580 )
Sales and marketing expenses (74,944 )   (17,343 )   29     (92,258 )
General and administrative expenses (15,321 )   (19,327 )   61     (34,587 )
               
Total operating expenses (131,276 )   (68,509 )   360     (199,425 )
               
Other income 2,003     739         2,742  
               
Operating income (loss) 53,011     (48,215 )       4,796  
               
Interest expenses (1,803 )   (1,652 )   1,340     (2,115 )
Interest income and investment income 13,262     35,223     (1,340 )   47,145  
Foreign currency exchange (losses) gains, net (8,176 )   18         (8,158 )
Gain on fair value change of investments 1,060     5,203         6,263  
               
Income (loss) before income tax (expenses) benefits 57,354     (9,423 )       47,931  
               
Income tax (expenses) benefits (5,334 )   3,019         (2,315 )
               
Income (loss) before share of loss in equity method investments, net of income taxes 52,020     (6,404 )       45,616  
               
Share of loss in equity method investments, net of income taxes     (5,527 )       (5,527 )
               
Net income (loss) 52,020     (11,931 )       40,089  
               
                   
(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
    December 31, 2023
                   
    BIGO
  All other
  Total
    US$   US$   US$
                   
Cost of revenues   492     329     821  
Research and development expenses   1,856     2,164     4,020  
Sales and marketing expenses   38     95     133  
General and administrative expenses   351     1,920     2,271  
                   
 
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
    December 31, 2023
             
    BIGO   All other   Total
    US$   US$   US$
             
Operating income (loss)   53,011     (48,215 )   4,796  
Share-based compensation expenses   2,737     4,508     7,245  
Amortization of intangible assets from business acquisitions   11,225     4,665     15,890  
             
Non-GAAP operating income (loss)   66,973     (39,042 )   27,931  
             
             
Net income (loss)   52,020     (11,931 )   40,089  
Share-based compensation expenses   2,737     4,508     7,245  
Amortization of intangible assets from business acquisitions   11,225     4,665     15,890  
Gain on fair value change of investments   (1,060 )   (5,203 )   (6,263 )
Interest expenses related to the convertible bonds’ amortization to face value       239     239  
Income tax effects on non-GAAP adjustments   (1,415 )   (680 )   (2,095 )
Reconciling items on the share of equity method investments       4,278     4,278  
             
Non-GAAP net income (loss)   63,507     (4,124 )   59,383  
             
 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
               
  Three Months Ended
  September 30, 2023
               
  BIGO   All other   Elimination(1)   Total
  US$   US$   US$   US$
Net revenues              
Live streaming 468,577     27,224         495,801  
Others 25,486     46,241     (459 )   71,268  
               
Total net revenues 494,063     73,465     (459 )   567,069  
               
Cost of revenues(2) (299,231 )   (58,785 )   102     (357,914 )
               
Gross profit 194,832     14,680     (357 )   209,155  
               
Operating expenses(2)              
Research and development expenses (39,684 )   (32,191 )   267     (71,608 )
Sales and marketing expenses (75,715 )   (16,828 )   28     (92,515 )
General and administrative expenses (11,297 )   (15,904 )   62     (27,139 )
               
Total operating expenses (126,696 )   (64,923 )   357     (191,262 )
               
Loss on deconsolidation and disposal of subsidiaries     (6,177 )       (6,177 )
Other income (expenses) 373     (40 )       333  
               
Operating income (loss) 68,509     (56,460 )       12,049  
               
Interest expenses (1,768 )   (1,667 )   1,296     (2,139 )
Interest income and investment income 11,158     37,468     (1,296 )   47,330  
Foreign currency exchange losses, net (4,349 )   (794 )       (5,143 )
Loss on disposal and deemed disposal of investments     (2,673 )       (2,673 )
Gain on fair value change of investments 312     6,800         7,112  
               
Income (loss) before income tax (expenses) benefits 73,862     (17,326 )       56,536  
               
Income tax (expenses) benefits (3,626 )   625         (3,001 )
               
Income (loss) before share of income in equity method investments, net of income taxes 70,236     (16,701 )       53,535  
               
Share of income in equity method investments, net of income taxes     11,545         11,545  
               
Net income (loss) 70,236     (5,156 )       65,080  
               
                   
(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
    September 30, 2023
                   
    BIGO
  All other
  Total
    US$   US$   US$
                   
Cost of revenues   406     87     493  
Research and development expenses   1,752     2,356     4,108  
Sales and marketing expenses   37     73     110  
General and administrative expenses   20     1,566     1,586  
                   
 
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
    September 30, 2023
             
    BIGO   All other   Total
    US$   US$   US$
             
Operating income (loss)   68,509     (56,460 )   12,049  
Share-based compensation expenses   2,215     4,082     6,297  
Amortization of intangible assets from business acquisitions   11,225     4,665     15,890  
Loss on deconsolidation and disposal of subsidiaries       6,177     6,177  
             
Non-GAAP operating income (loss)   81,949     (41,536 )   40,413  
             
Net income (loss)   70,236     (5,156 )   65,080  
Share-based compensation expenses   2,215     4,082     6,297  
Amortization of intangible assets from business acquisitions   11,225     4,665     15,890  
Loss on deconsolidation and disposal of subsidiaries       6,177     6,177  
Loss on disposal and deemed disposal of investments       2,673     2,673  
Gain on fair value change of investments   (312 )   (6,800 )   (7,112 )
Interest expenses related to the convertible bonds’ amortization to face value       238     238  
Income tax effects on non-GAAP adjustments   (1,415 )   (2,655 )   (4,070 )
Reconciling items on the share of equity method investments       (10,521 )   (10,521 )
             
Non-GAAP net income (loss)   81,949     (7,297 )   74,652  
             
 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
               
  Three Months Ended
  December 31, 2022
               
  BIGO   All other   Elimination(1)   Total
  US$   US$   US$   US$
Net revenues              
Live streaming 452,425     74,998         527,423  
Others 24,038     53,480     (32 )   77,486  
               
Total net revenues 476,463     128,478     (32 )   604,909  
               
Cost of revenues(2) (296,865 )   (95,746 )   32     (392,579 )
               
Gross profit 179,598     32,732         212,330  
               
Operating expenses(2)              
Research and development expenses (39,927 )   (33,699 )       (73,626 )
Sales and marketing expenses (75,458 )   (25,354 )       (100,812 )
General and administrative expenses (12,394 )   (29,492 )       (41,886 )
Goodwill impairment     (14,830 )       (14,830 )
               
Total operating expenses (127,779 )   (103,375 )       (231,154 )
               
Other income 3,904     749         4,653  
               
Operating income (loss) 55,723     (69,894 )       (14,171 )
               
Interest expenses (1,311 )   (2,884 )   1,013     (3,182 )
Interest income and investment income 4,400     28,633     (1,013 )   32,020  
Foreign currency exchange losses, net (12,250 )   (793 )       (13,043 )
Gain on disposal and deemed disposal of investments     2,365         2,365  
Gain on fair value change of investments 1,612     10,920         12,532  
Gain on extinguishment of debt and derivative     1,087         1,087  
               
Income (loss) before income tax expenses 48,174     (30,566 )       17,608  
               
Income tax expenses (3,523 )   (1,032 )       (4,555 )
               
Income (loss) before share of loss in equity method investments, net of income taxes 44,651     (31,598 )       13,053  
               
Share of loss in equity method investments, net of income taxes     (403,105 )       (403,105 )
               
Net income (loss) 44,651     (434,703 )       (390,052 )
               
                   
(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
    December 31, 2022
                   
    BIGO
  All other
  Total
    US$   US$   US$
                   
Cost of revenues   680     560     1,240  
Research and development expenses   3,158     3,860     7,018  
Sales and marketing expenses   122     184     306  
General and administrative expenses   850     1,576     2,426  
                   
 
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
    December 31, 2022
             
    BIGO   All other   Total
    US$   US$   US$
             
Operating income (loss)   55,723     (69,894 )   (14,171 )
Share-based compensation expenses   4,810     6,180     10,990  
Amortization of intangible assets from business acquisitions   11,225     4,883     16,108  
Impairment of goodwill and investments       14,830     14,830  
             
Non-GAAP operating income (loss)   71,758     (44,001 )   27,757  
             
Net income (loss)   44,651     (434,703 )   (390,052 )
Share-based compensation expenses   4,810     6,180     10,990  
Amortization of intangible assets from business acquisitions   11,225     4,883     16,108  
Impairment of goodwill and investments       14,830     14,830  
Gain on disposal and deemed disposal of investments       (2,365 )   (2,365 )
Gain on fair value change of investments   (1,612 )   (10,920 )   (12,532 )
Gain on extinguishment of debt and derivative       (1,087 )   (1,087 )
Interest expenses related to the convertible bonds’ amortization to face value       601     601  
Income tax effects on non-GAAP adjustments   (1,415 )   1,487     72  
Reconciling items on the share of equity method investments       406,073     406,073  
             
Non-GAAP net income (loss)   57,659     (15,021 )   42,638  
             

 


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