JOYY Reports First Quarter 2023 Results: Sustained Growth in Profitability and Users

SINGAPORE, May 31, 2023 /PRNewswire/ -- JOYY Inc. (NASDAQ: YY) ("JOYY" or the "Company", formerly known as YY Inc.), a global leading technology internet company, announced its unaudited financial results for the first quarter of 2023.

JOYY's total revenues in the first quarter of 2023 were US$583.6 million, including US$467.9 million of revenue from BIGO. During the first quarter of 2023, JOYY's non-GAAP net profit^[1] was US$49.9 million, representing a year-over-year increase of 138.7%, with a non-GAAP net margin^[1] of 8.5%. BIGO generated a non-GAAP net profit^[1] of US$56.8 million, with a non-GAAP net margin^[1] of 12.1%. JOYY recorded a positive operating cash flow of US$67.5 million. JOYY's global average mobile MAUs grew by 1.9% quarter over quarter, with Bigo Live's MAUs increasing by 19.0% year over year. Likee's core user base DAUs grew by 5.2% on a quarterly basis.

Mr. David Xueling Li, Chairman and CEO of JOYY, commented, "Despite near-term macro challenges, we remain committed to our strategic priorities and delivered solid results in the first quarter, as we maintained strong profitability at the group level and achieved accelerated growth in Bigo Live's MAUs. Looking ahead, harnessing our global technological and localized operational capabilities continues to be our top priority and fundamental to our worldwide business success. We will cultivate our global user community and provide exceptional interactive experiences to our users through product innovation, diverse content, and localized offerings. We are confident that we are well-placed to seize long-term growth opportunities and generate sustainable shareholder value."

First Quarter 2023 Financial Highlights

• Net revenues were US$583.6 million, compared to US$623.8 million in the corresponding period of 2022.
• Net income attributable to controlling interest of JOYY was US$28.0 million, compared to net loss of US$27.5 million in the corresponding period of 2022.
• Non-GAAP net income^[1] attributable to controlling interest and common shareholders of JOYY was US$49.9 million, compared to US$20.9 million in the corresponding period of 2022.

First Quarter 2023 Operational Highlights

During the first quarter, Bigo Live sustained its double-digit user growth momentum for the fourth consecutive quarter, with its MAUs increasing by 19.0% year-over-year to 37.7 million. Growth was observed across several key regions, with 7.3% growth in Europe, 13.2% growth in the Middle East, and 23.6% growth in Southeast Asia and other emerging markets, year over year. Bigo Live saw steady recovery in its paying user growth in the first quarter. The number of paying users in Europe and North America increased year over year by 9.9% and 10.2%, respectively. Bigo Live's livestreaming revenues in Europe, North America, and the Middle East all rebounded from the previous quarter. Bigo Live launched a series of operational events across major regions in the first quarter, and successfully engaged with and encouraged active participation from its creators and users. In February, Bigo Live launched the "Big Star Search" event, a talent competition open to North American participants that enables Bigo Live to recruit the most exceptional creators. The event's six-month duration and wide variety of content genres make it Bigo Live's largest, longest-running, and most impactful talent competition to date. In the Middle East, Bigo Live boosted user engagement when it once again collaborated with Mobile Legends: Bang Bang to livestream the M4 World Championships. The quarter also marked the first collaboration between Bigo Live and ULTRA ABU DHABI, the first Middle Eastern edition of the world-famous Ultra Music Festival. During the festival, Bigo Live brought exclusive live concert experiences to online audiences. In terms of content development, video content in BAR increased by 18.7% from the previous quarter, and the average impressions per user achieved an 8.8% sequential growth. Sequentially, the number of multi-person room hosts increased by 9.3%, and the number of users going live increased by 8.7%.

Likee made meaningful progress in the first quarter. Likee's revenues increased by 9.0% sequentially and it achieved breakeven during the quarter, after first hitting this milestone in the second half of last year. In terms of user engagement, Likee's core user base DAUs increased by 5.2% sequentially. Importantly, Likee's number of official creators increased by 6.2% sequentially. Likee also reinforced its positioning as an interest-based community by collaborating with professionals in various fields, including music, racing, food, and sports. It also continued to integrate corporate social responsibility into its daily operations. During Ramadan, Likee partnered with the Jordanian charitable organization Tkiyet Um Ali (TUA) for the "Share a Meal" campaign. This initiative encouraged users to post videos of their Ramadan experience and share blessings during the holiday. For every user who participated in the campaign, Likee donated a certain amount of money to TUA on their behalf. Nearly 100,000 users participated in the event.

During the quarter, Hago remained dedicated to enhancing user activity and boosting social engagement. By utilizing social channels including video and audio multiplayer chat rooms, Hago Space, and Groups and Families, Hago offers users a growing range of social interaction opportunities and has created a highly interconnected user community. In the first quarter, the penetration rate of Hago's social channels increased by 4.4% sequentially. In addition, the daily average time spent by users continued to grow, reaching 90.8 minutes. Hago has also conducted multiple rounds of Net Promoter Score surveys among users, the result of which indicated consistent enhancement of user satisfaction, particularly in Indonesia, the Philippines, Brazil, and Mexico. Furthermore, many users have expressed their appreciation for how Hago enhances their social experiences.

Investor Relations Contact:

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

ICR, LLC
Robin Yang
Tel: (+1) 646 915-1611
Email: joyy@icrinc.com