JOYY Reports Third Quarter 2023 Results: Profitability Sustains, BIGO Regains Revenue Growth

SINGAPORE, Nov. 30, 2023 /PRNewswire/ -- JOYY Inc. (NASDAQ:YY) ("JOYY" or the "Company"), a global leading technology company, announced its unaudited financial results for the third quarter of 2023.

During the third quarter of 2023, JOYY's total revenues rose 3.6% sequentially to US$567.1 million. The Company's core business segment BIGO generated revenues of US$494.1 million, a sequential increase of 4.9% and a year-over-year increase of 2.2%, its first year-over-year top-line growth in six quarters. JOYY recorded net profit and non-GAAP net profit¹ of US$72.9 million and US$81.2 million, with GAAP and non-GAAP net margins¹ of 12.9% and 14.3%, respectively. The BIGO segment's operating profit and non-GAAP operating profit¹ reached US$68.5 million and US$81.9 million, and it further expanded its GAAP and non-GAAP operating profit margin¹ to 13.9% and 16.6%, respectively. JOYY continued to generate positive operating cash flows, reaching US$72.9 million in the third quarter.

In addition, JOYY maintained its commitment to return value to shareholders, as it repurchased an additional US$43.5 million of its shares during the third quarter. In the first three quarters of 2023, JOYY had returned an aggregate amount of US$355.4 million to its shareholders through dividends and share buybacks.

Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, "Effective execution of our operational strategies to optimize users' content and social experiences drove BIGO's enhanced user engagement and monetization. At the group level, our global average mobile MAUs grew by 2.6% year over year to 276.8 million in the third quarter. Notably, Bigo Live's MAUs maintained its strong growth trajectory, increasing by 14% year over year to 40.3 million. BIGO's number of paying users experienced a steady increase of 6.6% year over year, with ARPPU (Average Revenue Per Paying User) also improving sequentially during the quarter. Moving forward, we remain committed to our long-term, targeted strategy to pursue high-quality growth. We will continue to explore ways to innovate across our products and operations, and drive the steady recovery of our global business with a continued focus on improving operating cash flows. We will further concentrate our resources on building our core strengths and global businesses that align with our long-term strategies, and effectively pursue growth opportunities."

Third Quarter 2023 Business Highlights

Bigo Live maintained its double-digit user growth momentum in the third quarter, with MAUs increasing by 14% year over year to 40.3 million. Growth was observed across several key regions, with year-over-year increases of 12.9% in Europe, 15.3% in the Middle East, and 14.4% in Southeast Asia and other emerging markets. Bigo Live also recorded sequential revenue growth. The Developed Countries Region, especially Europe and Eastern Pacific countries, outpaced other markets and generated high-single-digit sequential growth in revenue.

Bigo Live introduced a diverse range of high-quality and viral content during the third quarter. In the Middle East, Bigo Live premiered "The Acting Coach", an exclusive show in which Monther Rayahneh, a famous Jordanian actor, shared his personal insights into the art of acting. In Indonesia, Bigo Live debuted "Friends for Live", a collaborative mini-series featuring three Bigo Live streamers and some new local actors. The show was broadcast on a popular Indonesian video platform called Vidio, introducing Bigo Live's streamers to new audiences. Bigo Live also launched a "Summer Vibe" campaign in the MENA region and teamed up with several local KOLs who have tens of millions of followers, significantly boosting user engagement and inspiring creativity. Bigo Live continued to encourage users to explore and participate in Family activities. The third quarter saw a steady increase in the size of Families, with a 5.1% sequential increase in DAUs and a 17.4% sequential increase in the number of contracted streamers in Families.

Bigo Live further refined its content recommendation algorithms and continued to incentivize BAR creators. It also started to develop a premium content pool on its BAR channel, covering popular genres such as K-pop, pets, and workout. In the third quarter, the number of users sharing videos on BAR surged by 42.8% from the prior quarter, while the average effective views per person for video content rose by 29.3% in the same period. At the same time, Bigo Live fine-tuned features to enhance the appeal and interactivity inside livestreaming rooms. This drove an 8.5% sequential increase in the total number of livestreamers, along with a 3.7% sequential increase in the number of livestreamers in multi-guest rooms. In line with its commitment to fostering social interaction and forging relationships, Bigo Live enhanced its Real Match feature to make it easier to connect with people nearby by simply swiping through profiles. The upgrade fueled a 16.3% sequential increase in the number of people mutually following each other through Real Match, and a 21% sequential increase in direct chat messages.

In the third quarter, Likee's revenue continued to grow sequentially, and it continued to be profitable at the product level. In September, Likee orchestrated a series of offline community events in celebration of Saudi National Day. These included streamer parties and movie days, accompanied by online discussions designed to deepen connections among users, creators, and the platform. During the quarter, Likee also partnered with a number of popular creators to exhibit at the Asian Culture Festival, an event that captivated fans of anime, K-pop, and more, highlighting the ACG (Anime, Comics, and Games) that is an integral component of Likee's content ecosystem and community. At the product level, Likee remained dedicated to fostering community interaction, driving a 14.7% overall sequential increase in average user time spent. Overall user engagement, as measured by the ratio of DAUs to MAUs, increased by 1% sequentially, while the IM penetration rate rose by 1.5% over the same period.

During the third quarter, Hago maintained sequential revenue growth, and its operating cash flow remained positive during the quarter. Efficient content distribution remained a priority, along with a refined push notification strategy designed to boost participation in multi-guest interactive rooms across regions. Hago also iterated and enhanced its IM and interactive features, helping to drive increased social activity among users. Notably, the average user time spent in social channels reached nearly 95.8 minutes per day, and the average time spent in multi-guest audio livestreaming rooms grew by 1.2% sequentially. Besides Hago 3D Space, Hago is actively exploring alternative social interactive applications and combining livestreaming and interactive gaming experiences powered by AI.

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 Third Quarter 2023 Unaudited Financial Results" issued by the Company on November 30, 2023.