Third Quarter 2023 Financial Highlights1
- Net revenues were
US$567.1 million , compared toUS$586.7 million in the corresponding period of 2022. - Net income attributable to controlling interest of
JOYY 2 wasUS$72.9 million , compared toUS$515.3 million in the corresponding period of 2022. - Non-GAAP net income attributable to controlling interest and common shareholders of
JOYY 3 wasUS$81.2 million , compared toUS$76.9 million in the corresponding period of 2022.
Third Quarter 2023 Operational Highlights
- Average mobile MAUs of
Bigo Live increased by 14.0% to 40.3 million from 35.4 million in the corresponding period of 2022. - Average mobile MAUs of Likee was 41.0 million, compared to 50.6 million in the corresponding period of 2022, primarily due to reduced spending on user acquisition via advertisement.
- Average mobile MAUs of Hago was 5.0 million, compared to 7.6 million in the corresponding period of 2022, primarily due to reduced spending on user acquisition via advertisement.
- Global average mobile MAUs4 increased by 2.6% to 276.8 million from 269.8 million in the corresponding period of 2022.
- Total number of paying users of BIGO (including
Bigo Live , Likee and imo)5 increased by 6.6% to 1.61 million from 1.51 million in the corresponding period of 2022. - Average revenue per paying user of BIGO (including
Bigo Live , Likee and imo)6 wasUS$253.4 , compared toUS$259.8 in the corresponding period of 2022.
Mr.
“During the third quarter, we maintained our commitment to return value to shareholders, as we repurchased an additional 43.5 million of our shares. In the first three quarters of 2023, we have returned an aggregate amount of
Third Quarter 2023 Financial Results
NET REVENUES
Net revenues were
Live streaming revenues were
Other revenues increased by 62.1% to
COST OF REVENUES AND GROSS PROFIT
Cost of revenues decreased by 2.3% to
Gross profit was
OPERATING EXPENSES AND INCOME
Operating expenses were
Operating income was
Non-GAAP operating income7 was
NET INCOME
Net income attributable to controlling interest of
Non-GAAP net income attributable to controlling interest and common shareholders of
NET INCOME PER ADS
Diluted net income per ADS10 was
Non-GAAP diluted net income per ADS11 was
BALANCE SHEET AND CASH FLOWS
As of
SHARES OUTSTANDING
As of
Business Outlook
For the fourth quarter of 2023, the Company expects net revenues to be between
Recent Developments
Share Repurchase Program
During the third quarter of 2023, the Company had repurchased
Director Appointment
The Company today announced the appointment of Ms.
Conference Call Information
The Company will hold a conference call at
Event Title:
Conference ID: #10035209
All participants may use the link provided below to complete the online registration process in advance of the conference call. Upon registration, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique PIN by email.
PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10035209-d2mxkh.html
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.joyy.com.
The replay will be accessible through
1-855-883-1031 | |
800-101-3223 | |
800-930-639 | |
Conference ID: | #10035209 |
About
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with
Investor Relations Contact
Email: joyy-ir@joyy.com
Email: joyy@icrinc.com
1 On
For the avoidance of confusion, the continuing operations for the three months ended
2 Net income (loss) attributable to controlling interest of
3 Non-GAAP net income (loss) attributable to controlling interest of
4 Refers to mobile average monthly active users of the social entertainment platforms operated by the Company, including
5 The number of paying users during a given period is calculated as the cumulative number of registered user accounts that have purchased virtual items or other products and services on platforms including
6 Average revenue per user is calculated by dividing our total revenues from live streaming on platforms including
7 Non-GAAP operating income (loss) is a non-GAAP financial measure, which is defined as operating income (loss) excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain on disposal of subsidiaries and business. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.
8 Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP operating income (loss) as a percentage of net revenues. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.
9 Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of
10 ADS is American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income (loss) per ADS is net income (loss) attributable to common shareholders of
11 Non-GAAP diluted net income (loss) per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) attributable to common shareholders of
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||
2022 | 2023 | ||||||
US$ | US$ | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | 1,214,449 | 1,239,733 | |||||
Restricted cash and cash equivalents | 303,370 | 317,105 | |||||
Short-term deposits | 2,360,545 | 1,911,162 | |||||
Restricted short-term deposits | 47,741 | 82,243 | |||||
Short-term investments | 362,640 | 272,542 | |||||
Accounts receivable, net | 117,927 | 119,884 | |||||
Amounts due from related parties | 1,794 | 1,290 | |||||
Prepayments and other current assets(1) | 236,183 | 228,250 | |||||
Total current assets | 4,644,649 | 4,172,209 | |||||
Non-current assets | |||||||
Investments | 660,404 | 544,203 | |||||
Property and equipment, net | 343,201 | 377,050 | |||||
Land use rights, net | 330,005 | 313,875 | |||||
Intangible assets, net | 398,300 | 349,716 | |||||
Right-of-use assets, net | 33,196 | 29,415 | |||||
2,649,307 | 2,649,260 | ||||||
Other non-current assets | 12,591 | 13,455 | |||||
Total non-current assets | 4,427,004 | 4,276,974 | |||||
Total assets | 9,071,653 | 8,449,183 | |||||
Liabilities, mezzanine equity and shareholders’ equity | |||||||
Short-term loan | 37,270 | 71,311 | |||||
Accounts payable | 56,000 | 57,101 | |||||
Deferred revenue | 86,014 | 75,766 | |||||
Advances from customers | 3,532 | 5,765 | |||||
Income taxes payable | 78,103 | 84,630 | |||||
Accrued liabilities and other current liabilities(1) | 2,360,002 | 2,341,376 | |||||
Amounts due to related parties | 3,225 | 2,388 | |||||
Lease liabilities due within one year | 12,451 | 10,460 | |||||
Convertible bonds | 435,087 | 405,364 | |||||
Total current liabilities | 3,071,684 | 3,054,161 | |||||
Non-current liabilities | |||||||
Convertible bonds | 401,173 | - | |||||
Lease liabilities | 21,601 | 19,654 | |||||
Deferred revenue | 9,765 | 11,032 | |||||
Deferred tax liabilities | 64,262 | 56,165 | |||||
Other non-current liabilities | 436 | - | |||||
Total non-current liabilities | 497,237 | 86,851 | |||||
Total liabilities | 3,568,921 | 3,141,012 | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||
2022 | 2023 | ||||||
US$ | US$ | ||||||
Mezzanine equity | 91,366 | 21,733 | |||||
Shareholders’ equity | |||||||
Class A common shares ( | 13 | 9 | |||||
Class B common shares ( | 3 | 3 | |||||
Treasury Shares ( | (655,141 | ) | (913,939 | ) | |||
Additional paid-in capital | 3,277,978 | 3,255,707 | |||||
Statutory reserves | 32,536 | 32,132 | |||||
Retained earnings | 2,685,063 | 2,907,253 | |||||
Accumulated other comprehensive loss | (162,235 | ) | (222,388 | ) | |||
Total JOYY Inc.’s shareholders’ equity | 5,178,217 | 5,058,777 | |||||
Non-controlling interests | 233,149 | 227,661 | |||||
Total shareholders’ equity | 5,411,366 | 5,286,438 | |||||
Total liabilities, mezzanine equity and shareholders’ equity | 9,071,653 | 8,449,183 | |||||
(1) | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | |||||||||||
US$ | US$ | US$ | US$ | US$ | |||||||||||
Net revenues | |||||||||||||||
Live streaming(1) | 542,757 | 476,981 | 495,801 | 1,698,095 | 1,493,175 | ||||||||||
Others | 43,972 | 70,353 | 71,268 | 108,512 | 204,856 | ||||||||||
Total net revenues | 586,729 | 547,334 | 567,069 | 1,806,607 | 1,698,031 | ||||||||||
Cost of revenues(2) | (366,514 | ) | (349,566 | ) | (357,914 | ) | (1,166,809 | ) | (1,086,482 | ) | |||||
Gross profit | 220,215 | 197,768 | 209,155 | 639,798 | 611,549 | ||||||||||
Operating expenses(2) | |||||||||||||||
Research and development expenses | (61,207 | ) | (75,540 | ) | (71,608 | ) | (188,181 | ) | (222,923 | ) | |||||
Sales and marketing expenses | (96,841 | ) | (87,205 | ) | (92,515 | ) | (299,623 | ) | (277,319 | ) | |||||
General and administrative expenses | (44,165 | ) | (28,966 | ) | (27,139 | ) | (99,940 | ) | (88,074 | ) | |||||
Total operating expenses | (202,213 | ) | (191,711 | ) | (191,262 | ) | (587,744 | ) | (588,316 | ) | |||||
Loss on deconsolidation and disposal of subsidiaries | - | - | (6,177 | ) | - | (6,177 | ) | ||||||||
Other income | 1,825 | 3,382 | 333 | 12,852 | 6,963 | ||||||||||
Operating income | 19,827 | 9,439 | 12,049 | 64,906 | 24,019 | ||||||||||
Interest expenses | (3,163 | ) | (3,057 | ) | (2,139 | ) | (9,588 | ) | (8,305 | ) | |||||
Interest income and investment income | 24,967 | 46,602 | 47,330 | 61,128 | 138,067 | ||||||||||
Foreign currency exchange gains (losses), net | 15,564 | 20,316 | (5,143 | ) | 24,709 | 5,252 | |||||||||
Gain (loss) on disposal and deemed disposal of investments | 223 | 77,737 | (2,673 | ) | 1,748 | 74,851 | |||||||||
Gain (loss) on fair value change of investments | 430,622 | (2,235 | ) | 7,112 | 411,772 | 6,162 | |||||||||
Gain on extinguishment of debt and derivative | 56,159 | - | - | 62,291 | - | ||||||||||
Income before income tax expenses | 544,199 | 148,802 | 56,536 | 616,966 | 240,046 | ||||||||||
Income tax expenses | (7,881 | ) | (5,382 | ) | (3,001 | ) | (30,020 | ) | (16,541 | ) | |||||
Income before share of (loss) income in equity method investments, net of income taxes | 536,318 | 143,420 | 53,535 | 586,946 | 223,505 | ||||||||||
Share of (loss) income in equity method investments, net of income taxes | (26,800 | ) | 3,885 | 11,545 | (95,326 | ) | 8,824 | ||||||||
Net income | 509,518 | 147,305 | 65,080 | 491,620 | 232,329 | ||||||||||
Net loss attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders | 5,735 | 7,798 | 7,812 | 14,807 | 23,652 | ||||||||||
Net income attributable to controlling interest of | 515,253 | 155,103 | 72,892 | 506,427 | 255,981 | ||||||||||
Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value | (1,396 | ) | (1,566 | ) | (1,566 | ) | (3,896 | ) | (4,698 | ) | |||||
Gain on repurchase of redeemable convertible preferred shares of a subsidiary | - | - | 52,583 | - | 52,583 | ||||||||||
Cumulative dividend on subsidiary’s Series A Preferred Shares | (1,000 | ) | (1,000 | ) | - | (3,000 | ) | (2,000 | ) | ||||||
Net income attributable to common shareholders of | 512,857 | 152,537 | 123,909 | 499,531 | 301,866 | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) | |||||||||||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | |||||||||||
US$ | US$ | US$ | US$ | US$ | |||||||||||
Net income per ADS | |||||||||||||||
——Basic | 7.12 | 2.27 | 1.99 | 6.90 | 4.53 | ||||||||||
——Diluted | 6.28 | 2.02 | 1.86 | 6.15 | 4.11 | ||||||||||
Weighted average number of ADS used in calculating net income per ADS | |||||||||||||||
——Basic | 72,060,234 | 67,273,951 | 62,266,339 | 72,421,032 | 66,633,991 | ||||||||||
——Diluted | 82,157,570 | 76,872,137 | 67,669,387 | 82,731,200 | 75,061,963 | ||||||||||
(1) Live streaming revenues by geographical areas were as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | |||||||||||
US$ | US$ | US$ | US$ | US$ | |||||||||||
Mainland | 118,598 | 67,535 | 59,525 | 357,471 | 235,833 | ||||||||||
Others | 424,159 | 409,446 | 436,276 | 1,340,624 | 1,257,342 | ||||||||||
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | |||||||||||
US$ | US$ | US$ | US$ | US$ | |||||||||||
Cost of revenues | 1,056 | 1,025 | 493 | 6,945 | 2,754 | ||||||||||
Research and development expenses | 6,649 | 5,526 | 4,108 | 18,152 | 15,395 | ||||||||||
Sales and marketing expenses | (62 | ) | 320 | 110 | 471 | 664 | |||||||||
General and administrative expenses | 2,182 | 2,227 | 1,586 | 7,538 | 5,921 | ||||||||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS | |||||||||||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2022 | 2023 | 2023 | 2022 | 2023 | |||||||||||
US$ | US$ | US$ | US$ | US$ | |||||||||||
Operating income | 19,827 | 9,439 | 12,049 | 64,906 | 24,019 | ||||||||||
Share-based compensation expenses | 9,825 | 9,098 | 6,297 | 33,106 | 24,734 | ||||||||||
Amortization of intangible assets from business acquisitions | 13,474 | 15,890 | 15,890 | 38,248 | 47,670 | ||||||||||
Loss on deconsolidation and disposal of subsidiaries | - | - | 6,177 | - | 6,177 | ||||||||||
Non-GAAP operating income | 43,126 | 34,427 | 40,413 | 136,260 | 102,600 | ||||||||||
Net income | 509,518 | 147,305 | 65,080 | 491,620 | 232,329 | ||||||||||
Share-based compensation expenses | 9,825 | 9,098 | 6,297 | 33,106 | 24,734 | ||||||||||
Amortization of intangible assets from business acquisitions | 13,474 | 15,890 | 15,890 | 38,248 | 47,670 | ||||||||||
Loss on deconsolidation and disposal of subsidiaries | - | - | 6,177 | - | 6,177 | ||||||||||
(Gain) loss on disposal and deemed disposal of investments | (223 | ) | (77,737 | ) | 2,673 | (1,748 | ) | (74,851 | ) | ||||||
(Gain) loss on fair value change of investments | (430,622 | ) | 2,235 | (7,112 | ) | (411,772 | ) | (6,162 | ) | ||||||
Gain on extinguishment of debt and derivative | (56,159 | ) | - | - | (62,291 | ) | - | ||||||||
Interest expenses related to the convertible bonds’ amortization to face value | 601 | 528 | 238 | 1,849 | 1,344 | ||||||||||
Income tax effects on non-GAAP adjustments | (2,591 | ) | (3,128 | ) | (4,070 | ) | (3,276 | ) | (9,509 | ) | |||||
Reconciling items on the share of equity method investments | 26,679 | (3,572 | ) | (10,521 | ) | 50,596 | (13,369 | ) | |||||||
Non-GAAP net income | 70,502 | 90,619 | 74,652 | 136,332 | 208,363 | ||||||||||
Net income attributable to common shareholders of | 512,857 | 152,537 | 123,909 | 499,531 | 301,866 | ||||||||||
Share-based compensation expenses | 9,825 | 9,098 | 6,297 | 33,106 | 24,734 | ||||||||||
Amortization of intangible assets from business acquisitions | 13,474 | 15,890 | 15,890 | 38,248 | 47,670 | ||||||||||
Loss on deconsolidation and disposal of subsidiaries | - | - | 6,177 | - | 6,177 | ||||||||||
(Gain) loss on disposal and deemed disposal of investments | (223 | ) | (77,737 | ) | 2,673 | (1,748 | ) | (74,851 | ) | ||||||
(Gain) loss on fair value change of investments | (430,622 | ) | 2,235 | (7,112 | ) | (411,772 | ) | (6,162 | ) | ||||||
Gain on extinguishment of debt and derivative | (56,159 | ) | - | - | (62,291 | ) | - | ||||||||
Interest expenses related to the convertible bonds’ amortization to face value | 601 | 528 | 238 | 1,849 | 1,344 | ||||||||||
Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders | 2,396 | 2,566 | 1,566 | 6,896 | 6,698 | ||||||||||
Gain on repurchase of redeemable convertible preferred shares of a subsidiary | - | - | (52,583 | ) | - | (52,583 | ) | ||||||||
Income tax effects on non-GAAP adjustments | (2,591 | ) | (3,128 | ) | (4,070 | ) | (3,276 | ) | (9,509 | ) | |||||
Reconciling items on the share of equity method investments | 26,679 | (3,572 | ) | (10,521 | ) | 50,596 | (13,369 | ) | |||||||
Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders | 698 | (1,115 | ) | (1,311 | ) | (1,861 | ) | (3,693 | ) | ||||||
Non-GAAP net income attributable to controlling interest and common shareholders of | 76,935 | 97,302 | 81,153 | 149,278 | 228,322 | ||||||||||
Non-GAAP net income per ADS | |||||||||||||||
——Basic | 1.07 | 1.45 | 1.30 | 2.06 | 3.43 | ||||||||||
——Diluted | 0.96 | 1.29 | 1.22 | 1.89 | 3.12 | ||||||||||
Weighted average number of ADS used in calculating Non-GAAP net income per ADS | |||||||||||||||
——Basic | 72,060,234 | 67,273,951 | 62,266,339 | 72,421,032 | 66,633,991 | ||||||||||
——Diluted | 82,157,570 | 76,872,137 | 67,669,387 | 82,731,200 | 75,061,963 | ||||||||||
UNAUDITED SEGMENT REPORT | |||||||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||||||
Three Months Ended | |||||||||||
BIGO | All other | Elimination(1) | Total | ||||||||
US$ | US$ | US$ | US$ | ||||||||
Net revenues | |||||||||||
Live streaming | 468,577 | 27,224 | - | 495,801 | |||||||
Others | 25,486 | 46,241 | (459 | ) | 71,268 | ||||||
Total net revenues | 494,063 | 73,465 | (459 | ) | 567,069 | ||||||
Cost of revenues(2) | (299,231 | ) | (58,785 | ) | 102 | (357,914 | ) | ||||
Gross profit | 194,832 | 14,680 | (357 | ) | 209,155 | ||||||
Operating expenses(2) | |||||||||||
Research and development expenses | (39,684 | ) | (32,191 | ) | 267 | (71,608 | ) | ||||
Sales and marketing expenses | (75,715 | ) | (16,828 | ) | 28 | (92,515 | ) | ||||
General and administrative expenses | (11,297 | ) | (15,904 | ) | 62 | (27,139 | ) | ||||
Total operating expenses | (126,696 | ) | (64,923 | ) | 357 | (191,262 | ) | ||||
Loss on deconsolidation and disposal of subsidiaries | - | (6,177 | ) | - | (6,177 | ) | |||||
Other income (expenses) | 373 | (40 | ) | - | 333 | ||||||
Operating income (loss) | 68,509 | (56,460 | ) | - | 12,049 | ||||||
Interest expenses | (1,768 | ) | (1,667 | ) | 1,296 | (2,139 | ) | ||||
Interest income and investment income | 11,158 | 37,468 | (1,296 | ) | 47,330 | ||||||
Foreign currency exchange losses, net | (4,349 | ) | (794 | ) | - | (5,143 | ) | ||||
Loss on disposal and deemed disposal of investments | - | (2,673 | ) | - | (2,673 | ) | |||||
Gain on fair value change of investments | 312 | 6,800 | - | 7,112 | |||||||
Income (loss) before income tax (expenses) benefits | 73,862 | (17,326 | ) | - | 56,536 | ||||||
Income tax (expenses) benefits | (3,626 | ) | 625 | - | (3,001 | ) | |||||
Income (loss) before share of income in equity method investments, net of income taxes | 70,236 | (16,701 | ) | - | 53,535 | ||||||
Share of income in equity method investments, net of income taxes | - | 11,545 | - | 11,545 | |||||||
Net income (loss) | 70,236 | (5,156 | ) | - | 65,080 | ||||||
(1) The elimination mainly consists of revenues and expenses generated from services among BIGO and all other segments, and interest income and interest expenses generated from the loan between BIGO and all other segments. | |||||||||
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
Three Months Ended | |||||||||
BIGO | All other | Total | |||||||
US$ | US$ | US$ | |||||||
Cost of revenues | 406 | 87 | 493 | ||||||
Research and development expenses | 1,752 | 2,356 | 4,108 | ||||||
Sales and marketing expenses | 37 | 73 | 110 | ||||||
General and administrative expenses | 20 | 1,566 | 1,586 | ||||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT | |||||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||||
Three Months Ended | |||||||||
BIGO | All other | Total | |||||||
US$ | US$ | US$ | |||||||
Operating income (loss) | 68,509 | (56,460 | ) | 12,049 | |||||
Share-based compensation expenses | 2,215 | 4,082 | 6,297 | ||||||
Amortization of intangible assets from business acquisitions | 11,225 | 4,665 | 15,890 | ||||||
Loss on deconsolidation and disposal of subsidiaries | - | 6,177 | 6,177 | ||||||
Non-GAAP operating income (loss) | 81,949 | (41,536 | ) | 40,413 | |||||
Net income (loss) | 70,236 | (5,156 | ) | 65,080 | |||||
Share-based compensation expenses | 2,215 | 4,082 | 6,297 | ||||||
Amortization of intangible assets from business acquisitions | 11,225 | 4,665 | 15,890 | ||||||
Loss on deconsolidation and disposal of subsidiaries | - | 6,177 | 6,177 | ||||||
Loss on disposal and deemed disposal of investments | - | 2,673 | 2,673 | ||||||
Gain on fair value change of investments | (312 | ) | (6,800 | ) | (7,112 | ) | |||
Interest expenses related to the convertible bonds’ amortization to face value | - | 238 | 238 | ||||||
Income tax effects on non-GAAP adjustments | (1,415 | ) | (2,655 | ) | (4,070 | ) | |||
Reconciling items on the share of equity method investments | - | (10,521 | ) | (10,521 | ) | ||||
Non-GAAP net income (loss) | 81,949 | (7,297 | ) | 74,652 | |||||
UNAUDITED SEGMENT REPORT | |||||||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||||||
Three Months Ended | |||||||||||
BIGO | All other | Elimination(1) | Total | ||||||||
US$ | US$ | US$ | US$ | ||||||||
Net revenues | |||||||||||
Live streaming | 445,169 | 31,812 | - | 476,981 | |||||||
Others | 25,885 | 44,860 | (392 | ) | 70,353 | ||||||
Total net revenues | 471,054 | 76,672 | (392 | ) | 547,334 | ||||||
Cost of revenues(2) | (287,587 | ) | (62,069 | ) | 90 | (349,566 | ) | ||||
Gross profit | 183,467 | 14,603 | (302 | ) | 197,768 | ||||||
Operating expenses(2) | |||||||||||
Research and development expenses | (41,727 | ) | (34,042 | ) | 229 | (75,540 | ) | ||||
Sales and marketing expenses | (70,652 | ) | (16,574 | ) | 21 | (87,205 | ) | ||||
General and administrative expenses | (12,587 | ) | (16,431 | ) | 52 | (28,966 | ) | ||||
Total operating expenses | (124,966 | ) | (67,047 | ) | 302 | (191,711 | ) | ||||
Other income | 1,914 | 1,468 | - | 3,382 | |||||||
Operating income (loss) | 60,415 | (50,976 | ) | - | 9,439 | ||||||
Interest expenses | (1,727 | ) | (2,643 | ) | 1,313 | (3,057 | ) | ||||
Interest income and investment income | 9,882 | 38,033 | (1,313 | ) | 46,602 | ||||||
Foreign currency exchange gains (losses), net | 22,031 | (1,715 | ) | - | 20,316 | ||||||
Gain on disposal and deemed disposal of investments | - | 77,737 | - | 77,737 | |||||||
(Loss) gain on fair value change of investments | (2,460 | ) | 225 | - | (2,235 | ) | |||||
Income before income tax expenses | 88,141 | 60,661 | - | 148,802 | |||||||
Income tax expenses | (4,478 | ) | (904 | ) | - | (5,382 | ) | ||||
Income before share of income in equity method investments, net of income taxes | 83,663 | 59,757 | - | 143,420 | |||||||
Share of income in equity method investments, net of income taxes | - | 3,885 | - | 3,885 | |||||||
Net income | 83,663 | 63,642 | - | 147,305 | |||||||
(1) The elimination mainly consists of revenues and expenses generated from services among BIGO and all other segments, and interest income and interest expenses generated from the loan between BIGO and all other segments. | |||||||||
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
Three Months Ended | |||||||||
BIGO | All other | Total | |||||||
US$ | US$ | US$ | |||||||
Cost of revenues | 410 | 615 | 1,025 | ||||||
Research and development expenses | 2,532 | 2,994 | 5,526 | ||||||
Sales and marketing expenses | 170 | 150 | 320 | ||||||
General and administrative expenses | 700 | 1,527 | 2,227 | ||||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT | |||||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||||
Three Months Ended | |||||||||
BIGO | All other | Total | |||||||
US$ | US$ | US$ | |||||||
Operating income (loss) | 60,415 | (50,976 | ) | 9,439 | |||||
Share-based compensation expenses | 3,812 | 5,286 | 9,098 | ||||||
Amortization of intangible assets from business acquisitions | 11,225 | 4,665 | 15,890 | ||||||
Non-GAAP operating income (loss) | 75,452 | (41,025 | ) | 34,427 | |||||
Net income | 83,663 | 63,642 | 147,305 | ||||||
Share-based compensation expenses | 3,812 | 5,286 | 9,098 | ||||||
Amortization of intangible assets from business acquisitions | 11,225 | 4,665 | 15,890 | ||||||
Gain on disposal and deemed disposal of investments | - | (77,737 | ) | (77,737 | ) | ||||
Loss (gain) on fair value change of investments | 2,460 | (225 | ) | 2,235 | |||||
Interest expenses related to the convertible bonds’ amortization to face value | - | 528 | 528 | ||||||
Income tax effects on non-GAAP adjustments | (1,415 | ) | (1,713 | ) | (3,128 | ) | |||
Reconciling items on the share of equity method investments | - | (3,572 | ) | (3,572 | ) | ||||
Non-GAAP net income (loss) | 99,745 | (9,126 | ) | 90,619 | |||||
UNAUDITED SEGMENT REPORT | |||||||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||||||
Three Months Ended | |||||||||||
BIGO | All other | Elimination(1) | Total | ||||||||
US$ | US$ | US$ | US$ | ||||||||
Net revenues | |||||||||||
Live streaming | 459,020 | 83,737 | - | 542,757 | |||||||
Others | 24,312 | 19,709 | (49 | ) | 43,972 | ||||||
Total net revenues | 483,332 | 103,446 | (49 | ) | 586,729 | ||||||
Cost of revenues(2) | (292,662 | ) | (73,901 | ) | 49 | (366,514 | ) | ||||
Gross profit | 190,670 | 29,545 | - | 220,215 | |||||||
Operating expenses(2) | |||||||||||
Research and development expenses | (35,618 | ) | (25,589 | ) | - | (61,207 | ) | ||||
Sales and marketing expenses | (75,460 | ) | (21,381 | ) | - | (96,841 | ) | ||||
General and administrative expenses | (22,715 | ) | (21,450 | ) | - | (44,165 | ) | ||||
Total operating expenses | (133,793 | ) | (68,420 | ) | - | (202,213 | ) | ||||
Other income | 1,088 | 737 | - | 1,825 | |||||||
Operating income (loss) | 57,965 | (38,138 | ) | - | 19,827 | ||||||
Interest expenses | (1,242 | ) | (2,873 | ) | 952 | (3,163 | ) | ||||
Interest income and investment income | 2,439 | 23,480 | (952 | ) | 24,967 | ||||||
Foreign currency exchange gains, net | 15,388 | 176 | - | 15,564 | |||||||
Gain on disposal and deemed disposal of investments | - | 223 | - | 223 | |||||||
Gain on fair value change of investments | 367 | 430,255 | - | 430,622 | |||||||
Gain on extinguishment of debt and derivative | - | 56,159 | - | 56,159 | |||||||
Income before income tax expenses | 74,917 | 469,282 | - | 544,199 | |||||||
Income tax expenses | (4,435 | ) | (3,446 | ) | - | (7,881 | ) | ||||
Income before share of loss in equity method investments, net of income taxes | 70,482 | 465,836 | - | 536,318 | |||||||
Share of loss in equity method investments, net of income taxes | - | (26,800 | ) | - | (26,800 | ) | |||||
Net income | 70,482 | 439,036 | - | 509,518 | |||||||
(1) The elimination mainly consists of revenues and expenses generated from services among BIGO and all other segments, and interest income and interest expenses generated from the loan between BIGO and all other segments. | |||||||||
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
Three Months Ended | |||||||||
BIGO | All other | Total | |||||||
US$ | US$ | US$ | |||||||
Cost of revenues | 357 | 699 | 1,056 | ||||||
Research and development expenses | 3,231 | 3,418 | 6,649 | ||||||
Sales and marketing expenses | (158 | ) | 96 | (62 | ) | ||||
General and administrative expenses | 766 | 1,416 | 2,182 | ||||||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT | |||||||||
(All amounts in thousands, except share, ADS and per ADS data) | |||||||||
Three Months Ended | |||||||||
BIGO | All other | Total | |||||||
US$ | US$ | US$ | |||||||
Operating income (loss) | 57,965 | (38,138 | ) | 19,827 | |||||
Share-based compensation expenses | 4,196 | 5,629 | 9,825 | ||||||
Amortization of intangible assets from business acquisitions | 11,225 | 2,249 | 13,474 | ||||||
Non-GAAP operating income (loss) | 73,386 | (30,260 | ) | 43,126 | |||||
Net income | 70,482 | 439,036 | 509,518 | ||||||
Share-based compensation expenses | 4,196 | 5,629 | 9,825 | ||||||
Amortization of intangible assets from business acquisitions | 11,225 | 2,249 | 13,474 | ||||||
Gain on disposal and deemed disposal of investments | - | (223 | ) | (223 | ) | ||||
Gain on fair value change of investments | (367 | ) | (430,255 | ) | (430,622 | ) | |||
Gain on extinguishment of debt and derivative | - | (56,159 | ) | (56,159 | ) | ||||
Interest expenses related to the convertible bonds’ amortization to face value | - | 601 | 601 | ||||||
Income tax effects on non-GAAP adjustments | (1,415 | ) | (1,176 | ) | (2,591 | ) | |||
Reconciling items on the share of equity method investments | - | 26,679 | 26,679 | ||||||
Non-GAAP net income (loss) | 84,121 | (13,619 | ) | 70,502 | |||||
Source:
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