JOYY Inc. (NASDAQ: YY) («JOYY» or the «Company»), formerly known as YY Inc., a leading global internet technology company, announced its unaudited financial results for the first quarter of 2023.

The total revenues of JOYY in the first quarter of 2023 were $583.6 million, including $467.9 million in BIGO revenues. During the first quarter of 2023, JOYY’s non-GAAP[1] net income was $49.9 million, representing a year-on-year increase of 138.7%, with a non-GAAP[1] net margin of 8.5%. BIGO generated a non-GAAP[1] net income of $56.8 million, with a non-GAAP[1] net margin of 12.1%. JOYY recorded positive operational cash flow of $67.5 million. JOYY’s global average mobile monthly active users (MAUs) grew by 1.9% quarter-on-quarter, and Bigo Live’s MAUs increased by 19.0% year-on-year. DAUs of Likee primary user base grew by 5.2% quarterly.

«The first quarter saw us achieving solid profitability at the group level and delivering accelerated growth in Bigo Live MAUs. Looking ahead, leveraging our localized operational and global technological capabilities remains our key priority and fundamental to the success of our business worldwide. We will cultivate our global user community and deliver exceptional interactive experiences to our users through product innovation, diverse content, and localized offerings. We are confident that we are well positioned to seize long-term growth opportunities and generate sustainable value for our shareholders,» said Mr. David Xueling Li, Chairman and CEO of JOYY.

Financial Highlights, First Quarter 2023

– Net revenues were $583.6 million, compared to $623.8 million in the corresponding period of 2022.

– Net income attributable to JOYY’s controlling interest was $28.0 million, compared to a net loss of $27.5 million in the corresponding period of 2022.

– Non-GAAP[1] net income attributable to JOYY’s controlling interest and common shareholders was $49.9 million, compared to $20.9 million in the corresponding period of 2022.

Operational Highlights, First Quarter 2023

During the first quarter, Bigo Live maintained its double-digit user growth momentum for the fourth consecutive quarter, and its MAUs increased by 19.0% year-on-year to 37.7 million. Growth was observed in various key regions with growth of 7.3% in Europe, 13.2% in the Middle East, and 23.6% in Southeast Asia and other emerging markets year-on-year. Bigo Live experienced a steady recovery in its paying user growth in the first quarter. The number of paying users in Europe and North America increased year-on-year by 9.9% and 10.2%, respectively. Live streaming revenues of Bigo Live in Europe, North America, and the Middle East recovered from the previous quarter. Bigo Live launched a series of operational events in major regions in the first quarter and successfully engaged 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 allows Bigo Live to recruit exceptional creators. The six-month duration of the event and the wide variety of content genres make it Bigo Live’s largest, longest, and most impactful talent competition to date. In the Middle East, Bigo Live drove user engagement when it once again collaborated with Mobile Legends: Bang Bang to live stream the M4 World Championship. The quarter also marked the first collaboration between Bigo Live and ULTRA ABU DHABI, the Middle East’s first edition of the globally renowned Ultra Music Festival. During the festival, Bigo Live brought exclusive live concert experiences to online audiences. In terms of content development, BAR video content increased 18.7% sequentially over the previous quarter, while the average impressions per user achieved sequential growth of 8.8%. Sequentially, the number of multi-person room hosts increased by 9.3%, and the number of live users increased by 8.7%.

Likee made significant progress in the first quarter. Likee’s revenues increased 9.0% sequentially and reached the break-even point during the quarter, following its achievement of this milestone for the first time in the latter half of last year. In terms of user engagement, primary user base DAUs of Likee increased 5.2% sequentially. It is noteworthy that the number of official creators of Likee increased 6.2% sequentially. Likee also reinforced its positioning as an interest-based community by collaborating with professionals in various fields, including music, careers, food, and sports. It also continued to integrate corporate social responsibility into its daily operations. During Ramadan, Likee partnered with Jordanian charity 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 improving user activity and driving social engagement. By utilizing social channels including video and audio multiplayer chat rooms, Hago Space, and Groups and Families, Hago offers users an increasingly diverse range of social interaction opportunities and has created a highly interconnected user community. In the first quarter, Hago’s social channel penetration rate increased 4.4% sequentially. In addition, users’ average daily dwell time continued to grow, reaching 90.8 minutes. Hago has also conducted several rounds of Net Promoter Score surveys among users, whose result indicated a constant improvement in user satisfaction, particularly in Indonesia, the Philippines, Brazil, and Mexico. Moreover, many users have expressed appreciation for how Hago enhances their social experiences.

Investor Relations Contact:

JOYY Inc.

Jane Xie/Maggie Yan

Email: [email protected]

ICR, LLC

Robin Yang

Phone: (+1) 646 915-1611

Email: [email protected]

[1]. For details of the non-GAAP measures, including reconciliations of the GAAP measures to the non-GAAP measures, please refer to the press release titled «JOYY Reports Unaudited First Quarter 2023 Financial Results» issued by the Company on May 31, 2023.