2022-08-29 | NDAQ:AA | Press release
SINGAPORE, August 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 financial results unaudited for the second quarter of 2022.
JOYY’s total revenue in the second quarter of 2022 was US$596.1 millionBIGO’s revenue reaching $502.6 million. In the second quarter of 2022, JOYY’s non-GAAP net income(excluding YY Live) was $51.5 million with a corresponding non-GAAP net income margin 8.6% (compared to -0.1% over the corresponding period in 2021). BIGO generated $86.3 million in net income with a corresponding net income margin of 17.2% (compared to 3.3% for the corresponding period in 2021). In the second quarter of 2022, JOYY recorded a positive net operating cash flow of $61.7 million.
David Xueling Li, Chairman and CEO of JOYY, said, “Our steady increase in profitability in the second quarter under current market conditions demonstrated the improved efficiency and resilience of our business. We have seen positive results through the continuous iteration of our product features and the cultivation of our user community. , while Bigo Live’s MAU maintained its strong growth momentum, growing 10.6% year-over-year to reach 32.6 million. The current macroeconomic environment has not undermined our proven abilities to seize growth potential in the social entertainment sector, nor our long-term outlook for the industry. . We view current market fluctuations as opportunities to deepen our focus and plan for the future. By continuing to cultivate diverse and premium content, innovating interactive features and hosting tailored local activities, we will further enhance our user experience and ultimately drive the growth of our user community and business. world. We remain committed to driving value for o your users and creators while improving efficiency and building 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 that it will be well positioned to capture long-term growth. term and generate sustainable shareholder value. »
Second Quarter 2022 Financial Highlights
- Net income for the second quarter of 2022 were US$596.1 million.
- Net income from continuing operations attributable to the majority stake in JOYY for the second quarter of 2022 were $18.7 millioncompared to the net loss of $109.3 million in the second quarter of 2021. The net profit margin for the second quarter of 2022 was 3.1%, compared to a net loss margin of 16.5% in the second quarter of 2021.
- Non-GAAP net income from continuing operations attributable to controlling interest and ordinary shareholders of JOYY for the second quarter of 2022 was $51.5 millionvs. non-GAAP net loss of $0.5 million in the second quarter of 2021. Non-GAAP net profit margin for the second quarter of 2022 was 8.6%, compared to a non-GAAP net loss margin of 0.1% in the second quarter of 2021.
- From June 30, 2022JOYY 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 inflows from operating activities were $61.7 million.
Second Quarter 2022 Business Highlights
Bigo Live continued to focus on product feature innovation and efficient local operations. In the second quarter, Bigo Live’s MAU increased 10.6% year-over-year to 32.6 million, with its MAU in South East Asia and other regions up 18.6%, and MAU in Europe up 8.7%. To help users in the Middle East and some Southeast Asian countries celebrate their Ramadan holiday, Bigo Live launched a series of live events tailored to local traditions, including cooking sessions, quizzes and singing competitions, and invited celebrities and local influencers to demonstrate the unique cultural traditions of their regions. Bigo Live’s new “Community” feature, which was launched last quarter, continued to help diversify content and improve user engagement in the BAR channel. Average BAR views per user and video content volume increased sequentially by 14.1% and 7.3%, respectively. Bigo Live also updated its “Virtual Live” feature to enable a trendier live streaming experience for its users, significantly increasing the number of users and cumulative time spent on Virtual Live sessions compared to the previous quarter.
In mid-June, Likee launched a new feature called “Loop” in the United States and Europe. Loop is a community feature that connects users with similar interests. Soon after the launch of Loop, the anime community had shared over 6 million episodes of video content, and over 50% of users in the anime community were following each other. Likee also achieved steady improvements in user engagement and loyalty, with the average time spent on Likee per user increasing sequentially by 10.2% globally and 22.7% in regions where Loop was introduced . During the second quarter, in addition to launching various localized campaigns, Likee partnered with four charities in the Middle East and South Asia to launch an interregional donation campaign. More than 200,000 users participated in the “Ramadan” campaign by logging into Likee and collecting “energy points”, which were then converted into monetary donations made by Likee through local charities.
In the second quarter, Hago’s live streaming revenue grew 7.1% year-over-year, and its number of paying users increased 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 new “3D Hago space” feature. Hago introduced more localized makeup, costumes, and props, allowing users to customize their 3D avatars to suit their personal and cultural preferences. Additional interactive elements and 3D virtual scenes were also launched, both of which were well received by Hago users, stimulating Hago Space 14.9% next day user retention rate on a quarterly 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. With a mission to connect people and enrich their lives through video, JOYY currently operates several social products, including Bigo Live for live streaming, Likee for short videos, Hago for multiplayer social media, a product of instant messaging, etc. The company has created a very engaging and vibrant user community for users around the world. JOYY was listed on NASDAQ in November 2012.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “will”, “expect”, “anticipate” , “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Among other things, the business outlook and management quotes in this announcement, as well as JOYY’s strategic and operating 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 leaders. , 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 statements, including, but not limited to, the following: JOYY’s objectives and strategies; the future business development, results of operations and financial condition of JOYY; the expected growth of the global market for online social communication platforms; the expectation regarding the rate at which to gain active users, particularly paying users; JOYY’s ability to monetize the user base; fluctuations in general economic and business conditions; the impact of COVID-19 on JOYY’s business operations and the global economy; and assumptions underlying or relating 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 undertakes no obligation to update any forward-looking statements except as required by applicable law.
Contact with Investor Relations:
Jane Xie/Maggie Yan
Tel: (+1) 646 915-1611
. For further details on non-GAAP measures, including reconciliations of GAAP measures to non-GAAP measures, please refer to the press release titled “JOYY Announces Unaudited Second Quarter 2022 Financial Results” published by the company on August 30, 2022.
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SOURCE JOYY inc.