JOYY Reports Second Quarter 2022 Results: Improving Profitability and Continuing User-Centric Innovation

SINGAPORE, Aug. 29, 2022 /PRNewswire/ -- JOYY Inc. (NASDAQ: YY) ("JOYY" or the "Company", formerly known as YY Inc.), a global video-based social media company, announced its unaudited financial results for the second quarter of 2022.

JOYY's total revenues in the second quarter of 2022 were US$596.1 million, with BIGO's revenues reaching US$502.6 million. In the second quarter of 2022, JOYY's non-GAAP net income^[1](excluding YY Live) was US$51.5 million with a corresponding non-GAAP net income margin^[1] of 8.6% (compared to -0.1% in the corresponding period in 2021). BIGO generated US$86.3 million in net income with a corresponding net income margin of 17.2% (compared to 3.3% in the corresponding period in 2021). In the second quarter of 2022, JOYY recorded positive net operating cash flow of US$61.7 million.

David Xueling Li, Chairman and CEO of JOYY, commented, "The steady expansion in our profitability in the second quarter amidst current market conditions demonstrated improved efficiency and resilience of our business. We saw positive outcomes from continued iteration of our product features and cultivation of our user community, as Bigo Live's MAU maintained its solid growth momentum, increasing by 10.6% year over year to 32.6 million. The current macro environment has not undermined our proven capabilities in capturing growth potential in the social entertainment sector nor our long-term outlook on the industry. We view the current market fluctuations as opportunities to deepen our focus and plan for the future. By continuing to cultivate diversified, premium content, innovate interactive features, and organize tailored local activities, we will further improve our user experience, and ultimately drive the growth of our user community and global business. We remain committed to generating value for our users and creators while improving efficiency and enhancing resilience. As we continue to invest in building our long-term capabilities, we firmly believe that JOYY will emerge from the current uncertainties as a more focused and productive company, and be well positioned to capture long-term growth and generate sustainable shareholder value."

Second Quarter 2022 Financial Highlights

• Net revenues for the second quarter of 2022 were US$596.1 million.
• Net income from continuing operations attributable to controlling interest of JOYY for the second quarter of 2022 were US$18.7 million, compared with net loss of US$109.3 million in the second quarter of 2021. Net income margin for the second quarter of 2022 was 3.1%, compared with net loss margin of 16.5% in the second quarter of 2021.
• Non-GAAP net income^[1] from continuing operations attributable to controlling interest and common shareholders of JOYY for the second quarter of 2022 was US$51.5 million, compared to non-GAAP net loss of US$0.5 million in the second quarter of 2021. Non-GAAP net income margin^[1] for the second quarter of 2022 was 8.6%, compared to non-GAAP net loss margin of 0.1% in the second quarter of 2021.
• As of June 30, 2022, JOYY had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of US$4,289.2 million. For the second quarter of 2022, net cash inflow from operating activities was US$61.7 million.

Second Quarter 2022 Business Highlights

Bigo Live

Bigo Live continued to focus on the innovation of product features and effective local operations. In the second quarter, Bigo Live's MAU grew by 10.6% year over year to 32.6 million, with its MAU in Southeast Asia and other regions increasing by 18.6%, and MAU in Europe increasing by 8.7%. To help users in the Middle East and certain Southeast Asian countries celebrate their Ramadan holiday, Bigo Live launched a series of live events tailored to local traditions, including cooking sessions, quiz shows, and singing contests, and invited local celebrities and influencers to demonstrate the unique cultural traditions of their regions. Bigo Live's new "Community" feature, which was launched last quarter, continued to contribute to content diversification and user engagement improvements in the BAR channel. BAR's average views per user and the volume of video content sequentially increased by 14.1% and 7.3%, respectively. Bigo Live also upgraded its "Virtual Live" feature to enable a trendier livestreaming experience for its users, driving up the number of users and cumulative time spent on Virtual Live sessions substantially compared to the previous quarter.

Likee

In mid-June, Likee launched a new feature called "Loop" in the U.S. and Europe. Loop is a community feature that connects users with similar interests. Shortly after Loop was launched, the anime community had shared more than 6 million episodes of video content, and over 50% of the users in the anime community were following one another.  Likee also achieved steady improvements in user engagement and stickiness, with the average time spent on Likee per user increasing sequentially by 10.2% globally and by 22.7% in the regions where Loop was introduced. During the second quarter, in addition to launching a variety of localized campaigns, Likee partnered with four charities in the Middle East and South Asia to launch a cross-regional donation campaign. More than 200,000 users participated in the "Ramadan" campaign by logging in to Likee and collecting "energy points", which were later converted into monetary donations made by Likee through local charities.

Hago

In the second quarter, Hago's livestreaming revenue increased by 7.1% year over year, and its number of paying users grew by 12.8% over the same period. As Hago continued to optimize its content recommendation algorithm, user engagement improved, as evidenced by a sequential increase in its featured channel penetration rate of 1.8%. During the quarter, Hago focused on updating its newly launched "3D Hago space" feature. Hago introduced more localized makeup, costumes, and accessories, enabling users to customize their 3D avatars according to their personal and cultural preferences. Additional interactive items and 3D virtual scenes were also launched, both of which were well received by Hago users, boosting Hago Space's next-day user retention rate by 14.9% on a quarter-over-quarter basis.

About JOYY Inc.

JOYY is a leading global social media company that enables users to interact with each other in real time through online live media. On a mission to connect people and enrich their lives through video, JOYY currently operates several social products, including Bigo Live for livestreaming, 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 was listed on the NASDAQ in November 2012.

Safe Harbor Statement

This announcement 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 announcement, 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 fourth 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; fluctuations in general economic and business conditions; the impact of the COVID-19 to JOYY's business operations and the global economy; and assumptions underlying or related to any of the foregoing. Further information regarding these and other 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.

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

[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 2022 Unaudited Financial Results" issued by the Company on August 30, 2022.

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SOURCE JOYY Inc