SINGAPORE, Nov. 17, 2021 /PRNewswire/ -- JOYY Inc. (NASDAQ:
YY) ("JOYY" or the "Company", formerly known as YY Inc.), a global
video-based social media company, today announced its unaudited
financial results for the third quarter of 2021.
JOYY's total revenues in the third quarter of 2021 increased by
21.7% year over year to US$650.5
million, while BIGO's revenues in the third quarter of 2021
increased by 16.1% year over year to US$568.7 million. JOYY recorded net income from
continuing operations attributable to controlling interest of
US$7.5 million and attained non-GAAP
profitability at the group level for the first time since it
deconsolidated YY Live, recording US$35.1
million in non-GAAP net income[1], mainly attributable to BIGO's
margin expansion and improved operating leverage at the group
level. During the quarter, BIGO's non-GAAP net income expanded to
US$49.6 million, while its non-GAAP
net income margin1 improved to 8.7% from 3.3% in the
previous quarter.
David Xueling Li, Chairman and
CEO of JOYY, commented, "Despite the recent volatility in the macro
environment and the increased uncertainty due to COVID-19, our
persistent execution of our globalization strategy helped us
achieve substantial progress on multiple fronts. In the past
quarter, our efforts of enhancing our diversified and
localized content ecosystem have helped Bigo Live further expand
its product reach and user base, while continuing the cultivation
of talented content creators and effectively increasing
engagement levels in Likee's content community.
"Furthermore, through the combination of improved synergy among
various products, enhanced operating leverage, and prudent
marketing strategy, we have achieved a steady expansion in
profitability for the entire group," Mr. Li concluded.
Third Quarter Financial Highlights
Net revenues increased by 21.7% to US$650.5 million in the third quarter of
2021 from US$534.4 million in the
corresponding period of 2020, primarily driven by the growth of
livestreaming revenues from BIGO.
Gross profit increased by 35.5% to US$210.8 million in the third quarter of 2021
from US$155.5 million in the
corresponding period of 2020. Gross margin improved to 32.4% in the
third quarter of 2021 from 29.1% in the corresponding period of
2020.
Operating income was US$6.9 million in the third quarter of 2021,
compared to operating loss of US$89.3 million in the corresponding period
of 2020. Operating income margin was 1.1% in the third quarter
of 2021, compared to operating loss margin of 16.7% in the
corresponding period of 2020, primarily as a result of BIGO turning
profits for two consecutive quarter since the second
quarter of 2021.
Non-GAAP operating income[1] was US$31.3 million in the third quarter of 2021,
compared to non-GAAP operating loss of US$39.5million in the corresponding period of
2020. Non-GAAP operating income margin was 4.8% in the third
quarter of 2021, compared to non-GAAP operating loss margin 7.4% in
the corresponding period of 2020.
Net income from continuing operations attributable to
controlling interest of JOYY was US$7.5 million in the third quarter of 2021,
compared to US$191.0 million in the
corresponding period of 2020. Net income margin was 1.2% in the
third quarter of 2021, compared to 35.7% in the corresponding
period of 2020. Net income and net income margin were higher in the
third quarter of 2020, primarily due to the gain from partial
disposal of investments in Huya.
Non-GAAP net income from continuing
operations attributable to controlling interest and common
shareholders of JOYY[1] was US$35.1 million in the third quarter of 2021,
compared to non-GAAP net loss of US$26.6
million in the corresponding period of 2020. Non-GAAP net
income margin was 5.4% in the third quarter of 2021, compared to
non-GAAP net loss margin of 5.0% in the corresponding period of
2020.
Third Quarter Business Highlights
During the past quarter, the Company continued to
cultivate its global diversified content pool and
effectively expanded the reach of its global live streaming
product.
Bigo Live has achieved an increase in MAU by 10.7%
year over year to 31 million in the third quarter of 2021.
Through various cross-industry collaborations and a
series of localized operational activities, the Company
broadened Bigo Live's talent pool of content creators and
expanded its localized premium content library, covering a
number of categories including pan-entertainment, gaming, and
lifestyle. In the lifestyle category, Bigo Live made its initial
foray into e-commerce live streaming in Southeast Asia and launched its Bigo Market Place channel in Indonesia, Malaysia, and Thailand, further expanding
Bigo Live's product outreach by providing a diversified
interactive experience for its users. The Company also introduced
several innovative product features leading to improvements in user
engagement on Bigo Live. As a result, the number of streamers for
multiuser chatrooms increased by 2.3% and the average duration per
live streaming session increased by 5.3% sequentially in the third
quarter.
Likee, the Company's global short-form videos product
continued to cultivate a friendly and vibrant content creation
community, concentrating its efforts on identifying, cultivating,
and supporting talented content creators. The Company launched a
series of incentive programs that offer both user traffic and other
economic rewards for Likee, targeting influential content creators
with more than 10,000 fans. As a result, the number of certified
content creators increased by 17.0% in the third quarter. In late
August, the Company introduced a new "Superlike" feature on
the Likee platform in certain regions, enabling content creators to
interact with a larger group of fans in a non-real-time manner,
enhancing social interactions and adding a monetization venue for
content creators. After launching the Superlike feature for a
month in Russia, the number of
certified content creators joining the Likee
community increased by 7.1%.
As the Company transitioned Hago from an interactive
platform primarily focused on casual games to an audio and video
multiplayer social interaction and entertainment platform, it
continued launching feature updates focusing on the
improvement of multiuser social interactive activities. As a
result, on a sequential basis, the penetration rate for Hago's
Channel featuring multi-users' social interactive
activities increased by 4.0% and the average duration of
the voice chat room increased by 14.3% to 80 minutes.
Business Outlook
For the fourth quarter of 2021, the Company expects net revenues
to be between US$652 million and
US$661 million, representing a
year-over-year growth of 14.7% to 16.3%. This guidance excludes the
revenue contribution from Huya and YY Live in the same period of
last year. This forecast considers the potential impact of the
COVID-19 pandemic and reflects the Company's current and
preliminary views on the market and operational conditions, which
are subject to changes, particularly as to the potential impact of
the COVID-19 on the global economy and users' paying
capabilities.
Share Repurchase Program
In May 2020, the Company announced
that its board of directors has authorized to extend its then
existing share repurchase program, as previously approved by the
board of directors in August 2019,
for another 12-month period upon its original expiry date under
which the Company may repurchase up to US$300 million of its shares between August 2019 and August
2021. As of September 30,
2021, such share repurchase program already expired. The
Company had almost fully executed this share repurchase program and
repurchased approximately US$300
million of its shares.
In September 2021, the Company
announced that its board of directors has authorized a new share
repurchase plan under which the Company may repurchase up to
US$200 million of its shares between
September 2021 and September 2022. As of September 30, 2021, the Company had repurchased
approximately US$16.7 million of its
shares.
In November 2021, the board of
directors of the Company has further authorized an additional share
repurchase plan under which the Company may repurchase up to
US$1 billion of its shares between
November 2021 and November 2022.
The share repurchases may be made from time to time in the open
market at prevailing market prices, in privately negotiated
transactions, in block trades and/or through other legally
permissible means, depending on market conditions and in accordance
with applicable rules and regulations. JOYY's board of directors
will review the share repurchase plan periodically, and may
authorize adjustment of its terms and size. The Company expects to
fund repurchases made under those plans from its existing
funds.
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 live streaming, Likee for short-form videos, Hago for
multiplayer social interaction and entertainment, and 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 online communication social platform market
in China; 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 in China; the impact of the COVID-19 to JOYY's
business operations and the economy in China and elsewhere generally; 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.
[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 2021 Unaudited Financial
Results" issued by the Company on November 18, 2021.
|
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
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