JOYY Reports First Quarter 2024 Financial Results: Net Profit up 34.8% Year Over Year, BIGO Sustains Revenue Growth
SINGAPORE, May 28, 2024 /PRNewswire/ -- JOYY Inc. (NASDAQ:YY) ("JOYY" or the "Company"), a global leading technology company, announced its unaudited financial results for the first quarter of 2024.
During the first quarter, JOYY's revenue came in at US$564.6 million. The Company's core business segment BIGO continued its topline recovery trend, generating revenues of US$505.2 million, a year-over-year increase of 8.0%. JOYY recorded net profit and non-GAAP net profit1 of US$ 45.3 million and US$67.2 million, with GAAP and non-GAAP net margins1 of 8.0% and 11.9%, respectively. The BIGO segment's net profit and non-GAAP net profit1 reached US$61.0 million and US$71.2 million, with GAAP and non-GAAP net profit margins1 of 12.1% and 14.1%, respectively. JOYY sustained its positive operating cash flows, generating US$75.0 million in the first quarter.
Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, "We are off to a good start in 2024, executing on our strategic priorities and delivering results that exceeded our expectations. During the quarter, BIGO maintained its topline recovery momentum, with its revenues increasing by 8.0% year over year, driven by a steady 6.9% increase in paying users. In addition, as we continued to strategically expand and diversify our revenue streams, BIGO's non-livestreaming revenues grew substantially year over year. Ongoing cost discipline and efficiency improvement contributed to year-over-year increases of 61.8% and 34.8% in GAAP and non-GAAP net profits at the group level, respectively. Backed by our robust cash flow and strong financial position, we remain committed to returning value to our shareholders. In the first quarter of 2024, we repurchased an additional US$54.5 million worth of our shares, reflecting our confidence in the company's long-term prospects. Looking ahead, we will continue to enhance our product experience and drive operational innovations to generate a sustainable and profitable growth for our global business."
First Quarter 2024 Financial Highlights
- Net revenues for the first quarter of 2024 were US$564.6 million.
- Net income attributable to controlling interest of JOYY in the first quarter was US$45.3 million, compared to US$28.0 million in the corresponding period of 2023.
- Non-GAAP net income1 attributable to controlling interest and common shareholders of JOYY in the first quarter was US$67.2 million, compared to US$49.9 million in the corresponding period of 2023.
First Quarter 2024 Business Highlights
In the first quarter, Bigo Live's revenue continued its year-over-year rebound. Specifically, revenue from developed countries grew by 14.8%, accompanied by a 17.2% increase in paying users in these regions. During the quarter, Bigo Live remained focused on its user acquisition strategy, channeling more resources into developed countries and regions to enhance monetization efficiency, resulting in an 8.9% year-over-year MAU growth in these countries and regions.
Bigo Live continued to grow its content and optimize services for creators. In the first quarter, it organized a variety of innovative online and offline marketing initiatives. In February, Bigo Live participated in the Sanremo Music Festival, the world-famous Italian song contest and awards ceremony. As a partner organizer, Bigo Live showcased ten of its most talented streamers in a two-hour music extravaganza that was streamed worldwide.
Bigo Live launched an intelligent management system for streamers and agencies, which significantly streamlined the contracting and management processes. This efficiency boost led to a 4.9% quarter-over-quarter increase in newly contracted streamers. Family-based operational activities also played a key role this quarter, strengthening social bonds within Bigo Live's user community. On a sequential basis, its approach yielded a 1.1% increase in paying Family users, a 1.5% rise in contracted streamers within Families, and a 3.2% uptick in daily active users in Family groups. Bigo Live also simplified and upgraded its product features, which resulted in sequential increases of 1.1% in next-day user retention and of 5.4% in average viewer time spent per live session. Enhancements to livestreaming room tools and interactive features contributed to a 5.3% sequential rise in average duration per live session and a 4.4% sequential increase in the number of users going live in multi-guest rooms.
In the first quarter, Likee's revenue continued to recover year over year and it maintained its profitability. Advertising revenue grew by 1.1 times on an annual basis, and DAUs in the core European market maintained sequential growth.
Likee's recent launch of interactive gaming features has been instrumental in breaking the ice and fostering connections between users, leading to substantial growth in paying users. During the first quarter, Likee launched a series of engaging online and offline community events for creators, users, and brands. These included the global Likee Party and the MENA Gala in the Middle East co-hosted with Bigo Live. As Likee continued to enhance its creator services and expanded its monetization tools and incentives for premium creators, its number of core creators increased by 13.6% quarter-over-quarter.
Hago sustained positive operating cash flow during the first quarter. Hago's implementation of more gamified interactions and paid features has effectively boosted user engagement and monetization. A standout success was the rollout of the "Fly Across the World" event, spanning Hago's major operating countries. By participating in the event, users could "travel" virtually to various countries, collect treasures, claim and nurture their travel companion pets, and tip virtual gifts tailored to each location's unique culture and traditions. The event received enthusiastic feedback, with nearly one-third of Hago's total paid users participating. During the first quarter, user engagement on Hago also increased notably, with daily average time spent in social channels rising by 2.8% to 102 minutes, and time spent in multi-guest audio livestreaming rooms up by 2.9% from the previous quarter.
In parallel with its innovative product marketing strategies, JOYY remains steadfast in its commitment to integrating the principles of sustainable development into the core of its local operations worldwide. In March, BIGO launched a series of regional events in the Middle East and Southeast Asia to celebrate Ramadan, fostering a sense of community among users during this festive period. BIGO also forged partnerships with several international charitable organizations, including the Indonesian Cancer Foundation, Saudi Arabia's Namaa National Association, Bangladesh's JAAGO Foundation, and Pakistan's Alkhidmat Foundation. Together, BIGO and these charities initiated a number of charitable donation activities on BIGO's platforms, inspiring hundreds of thousands of its users to join the cause and provide assistance to local families, patients, and children in need.
JOYY has also actively engaged in dialogues with government agencies, industry leaders, entrepreneurs, and other stakeholders in its key markets to align the Company's regional operations with the economic and sustainable development goals of local communities. For example, in January, BIGO attended the Jordan-Singapore Tech Alliance Forum, where BIGO and the Information and Communications Technology Association of Jordan jointly signed an MoU. This partnership aims to promote regional technological innovation and facilitate economic growth. In March, BIGO participated in LEAP, the largest technology exhibition in the Middle East, where it showcased its technologies and AI-driven solutions. BIGO's presence at this prestigious event underscores the Company's support for the region's sustainable development and commitment to promoting entrepreneurship, innovation, and digital transformation.
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 First Quarter 2024 Unaudited Financial Results" issued by the Company on May 29, 2024.
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