JOYY Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Joy Incorporates third 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 Xie, the company's senior manager of investor relations. Please go ahead, Jane.

Thank you, Operator. Hello, everyone. Welcome to Joy's third quarter 2023 earnings conference call. Joining us today are Mr. David Sherwin 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.joy.com. A replay of this call will also be available on our website in a few hours. Before we continue, I would like to remind you that we will make forward-looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, 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 Shillingly. Please go ahead, sir.

Hello, everyone. Welcome to our third quarter 2023 earnings call. First, we will provide a quick snapshot of our performance for the quarter. During the third quarter, we once again delivered a strong performance. Our group revenue coming at 567.1 million at 3.6% sequential increase. Approaching the high end of our guidance, We see a non-GAAP net profit of 81.2 million, a 5.5% year-over-year increase, with a non-GAAP net margin of 14.3%. Our core business segment, Beagle, maintained its recovery momentum and recorded revenues of for 494.1 million, a sequential increase for 4.9%, and a year-over-year increase of 2.2%. The first year-over-year top line growth for Bigelow in six quarters. Bigelow's revenue remuneration was accompanied by improvements in user activity and monetization efficiency. At the group level, our global average mobile MAUs grew by 2.6% year-over-year to $276.8 billion. Notably, Bitcoin Live's MAUs maintained its strong growth trajectory, increasing by 14% year-over-year to 40.3 million, because number of pain users experienced a steady increase for 6.6% year-over-year, with AR pool also improving sequentially during the quarter, with Monetization recovering and as we continue to enhance our operational efficiency because non-GAAP operation profits grew by 11.7% year-over-year, reaching 81.9 million, representing expanding non-GAAP operation profit margin of 16.6%. As one of the leaders in the global social entertainment sector, we have always been committed to building equitable device and inclusive global user community. We aim to provide users with unique value and exceptional experience through our broad range of social entertainment products. We firmly believe that creating of positive user value and experience are the foundations of effective user management and monetization. maximize product value for our users, we have always our highly localized operations and, you know, V2 product optimization are our most effective instrument for enhancing user content and improving user social interaction experience. To give you a better understanding of our progress on those two fronts, I'd like to share some examples from the third quarter. On the content front, Big O Live extends its collaborations with top POS and introduce more diverse and viral content. We also launched several major updates for our content separation strategies and recommendation algorithms. These upgrades improved our ability to effectively channel users to content they enjoy. particularly our new user cohorts. On the social interaction front, we prioritize the optimization of interactive tools within BeagleLive's family feature and allocated additional operation resources to support families. We also further integrate to insert new social features such as real match, which chatter to different user case and help user expand their social networks. These targeted initiatives have effectively driven positive progress in user engagement and motivation. the introduction of more diverse and viral content alongside the collaborations with POS and successfully enhance our brand exposure, expanding product outreach, and fostering organized user growth, organic user growth. This acceleration of organic traffic has been the primary reason for our robust user growth in recent quarters, even as we hide to a disciplined market extent. At the same time, our amplification of families' social functions has yielded positive results in terms of user acquisition, payment conversation, and recruitment of long-tail streamers. Our improved user engagement and user experience coupled with exciting seasonal promotions such as regional mid-year galas have fueled recovery in user paying activity and overall monetization. Looking ahead to the fourth quarter, we anticipate that Beagle's global business will maintain its recovery trajectory on a year-over-year basis. However, given the ongoing uncertainty in the global micro landscape, we believe the pace of recovery across different markets will vary, and short-term fluctuations in users' pain sentiments may persist. We will remain cautiously optimizing the focus on our operational strategy and priority high-quality growth. We will also continue to exposure innovations across our products and operations and drive the steady recovery of our global business with a sustained focus on improving operation cash flow. Now, let's take a closer look at our product. We will start with BeagleLight. BeagleLight maintained its double-digit user growth momentum in the third quarter, with MAUs increasing by 14% year-over-year to 40.3 million. We saw growth across several key regions, with year-over-year increase by 12.9% in Europe and 15.3 percent in the Middle East and 44, 40.4 percent in Southeast Asia and other emerging markets. In the third quarter, we call the single digital revenue growth in sequential basis that developed the country's region, especially Europe and Eastern Pacific countries outpaced other markets and generated high single digital sequential growth in revenue. As I mentioned earlier, Big O Live introduced a diverse range of high-quality and virtual content during the third quarter. In the Middle East, Big O Live premired the Acting Coach exclusive show in which legendary So then the actor shared his personal insights into the art of acting. In Vinicia, Beagle Live debuted Friends of Life, a collaborative needle series featured three Beagle Live streamers and some local up-and-coming actors. The show was broadcast on a popular Indonesia video platform called Video, introducing BeagleLive streamers to new audiences. BeagleLive also expanded its collaboration with top KOLs in the third quarter. We launched a summer-wide campaign in the MENA region and team up with several local KOLs who have tons of millions of followers to share the freshest summer fashion trends and travel experience, significantly boosting user engagement and inspiring creativity. Building upon the success of last quarter's Family Month campaign, we continue to encourage users to explore and participate in family activities on BeagleLine. The third quarter saw a steady increase in the size of families with a 5.1% sequential increase in DEUs and 17.4% sequential increase in the number of