JOYY Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Joy Incorporated's first quarter 2023 earnings call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. I'd now like to hand the conference over to your host today, Jane Zee, the company's senior manager of investor relations. Please go ahead, Jane.

Thank you, operator. Hello, everyone. Welcome to Joy's first quarter 2023 earnings conference call. Joining us today are Mr. David Sherling Lee, Chairman and CEO of Joy, Ms. Ting Lee, our COO, and Mr. Alex Liu, the Vice President of Finance. For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session. The financial results and webcasts of this conference call are available at ir.joi.com. A replay of this call will also be available on our website in a few hours. Before we continue, I'd like to remind you that we may make forward-looking statements, which are entirely subject to risks and certainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and certainties, please refer to our latest annual report on Form 20F, and other documents filed with the SEC. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in U.S. dollar. I will now turn the call over to our Chairman and CEO, Mr. David Schillingly. Please go ahead, sir.

Hello, everyone. Welcome to our first quarter 2023 earnings call. We kick off 2023 with a strong quarter despite ongoing micro uncertainties. Let me first touch briefly upon some of our most notable achievements, which I will discuss in more detail shortly. First, during the quarter, we recorded $583.6 million in revenues, including 467.9 million of revenue from Beagle is sitting in the high end of our guidance. Notably, we maintained our profit growth momentum. Our group's non-GAAP net profit reached 49.9 million. Representing year-over-year increase of 138.7%, with a non-GAAP net margin of 8.5%. The big gold segment recorded a non-GAAP net profit of 56.8 million, with a non-GAAP net margin of 12.1%. We also maintained a healthy positive operating cash flow of 67.5 million during the quarter, further enhancing our robust financial position. Second, our global average mobile MAUs returned to positive quarter-over-quarter growth. In the first quarter, our global average mobile MAUs reached 272.9 million, increasing by 1.9% from the previous quarter. Big old lives MAUs grew steadily, increasing by 19% year-over-year. And third, Following two years of operational adjustment and optimization, Leakey continued to make significant progress. Importantly, Leakey once again achieved financial break-even after first hit its milestone in the second half of last year. At the same time, Leakey's revenue increased by 9% sequentially, and its core user base by 5.2% on a quarterly basis. While we have seen some green shots of recovery, we remain curiously optimistic regarding industry outlook. Given that ongoing microeconomy uncertainties may still pressure consumers confidence, and user spending on online social entertainment. Looking to the future, we remain committed to our long-term growth strategy. Globalization remains a key driver of our business growth. We will continue to prioritize a high-quality, sustainable growth, improve monetization and profitability across all business units and further strengthen our financial resilience by generating robust operation cash flows. Harnessing our global technical and localized operation capabilities continue to be our top priority and fundamental to our worldwide business success. We will cultivate our global user community and provide exceptional interactive experience to our users through product innovation, drivers, content, and localized offering. In line with our global positioning and commitment to high-quality, substantial We intend to further concentrate our resources on building our core strategies and the global business that align with our long-term strategies.