JOYY Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Joy, Inc.' 's first quarter 2024 earnings call. At this time, all participants are in listen-only mode. After the 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 2024 earnings conference call. Joining us today are Mr. David Shirling 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 may make forward-looking statements, which are entirely 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 on U.S. dollar. I will now turn the call over to our Chairman and CEO, Mr. David Hsieh-Ling Lee. Please go ahead, sir.

David Hsieh- Hello, everyone. Welcome to our first quarter 2022 earnings call. To start, let me briefly review our performance in the first quarter. We kick off 2024 with a solid quarter. Group's revenue coming at $565 million, with our core Bitcoin segment contributing $505 million. Group's non-GAAP net profit reached $67 million, and Bitcoin's non-GAAP net profit hit $71 million, both surpassing our expectations. BigGo sustained its top-line recovery trend for the third consecutive quarter, achieving at 8% year-over-year growth. Live streaming revenues from our core global products, which include BigGo Live, Likey, Emo, increased by 2.8% year-over-year, driven by a continued expansion of paying users, which was upped by 6.9% on an annual basis. We have prioritized and channeled our advertising spend and other operational resources toward premium users and developed countries where we observe improved ROI and spending sentiment across all big gold markets developed countries continue to outperform with live streaming revenues achieving double digital growth year over year. Importantly, as we continue to strategically expand and diversify our revenue streams. Because non-live streaming revenues, primarily advertising revenues, grows substantially year over year. At the same time, we continue to improve our profitability at group level. Our non-GAAP net profit reached 67 million in the first quarter, up 34.8% year-over-year. Non-GAAP net margin increased by 3.4%, points to 11.9%. Notably, despite the negative impact of seasonality, The all-over segment steadily narrowed its non-GAAP operation loss on a sequential basis. This improvement was driven by further cost optimization and enhanced operational and management efficiency at both the group and the product levels. We sustained our positive operation cash flow in the first quarter. Generating a robust $75 million with its foundation of healthy cash flows and our solid financial position. We repurchased an additional of $554.5 million worth of shares during the quarter. have outlined previously, despite the last developments regarding the sales of YY Live, we remain committed to retaining value to our shareholders. We will continue to actively execute our current share reporting program and enhance execution consistently. Looking ahead, well, we have seen some green shots of recovery. Global macroeconomic uncertainties persisted. Our live streaming ARPO was sealed down slightly year over year, and the regional recovery trends diverged and remained uneven. As such, we will maintain our efficiency-oriented approach to our operational investments. We will continue to focus on ROI and nimbly adjust our strategies to alien with prevailing market dynamics. Prevailing market dynamics, we expect to drive healthy sustainable growth of our business while maintaining stable profitability and positive cash flow. Based on our current operational plans, we expect Bigel to resume sequential growth in the second half of the year and maintain its year-over-year revenue recovery for the full year. We anticipate that Beagle's revenue mix will become more diversified in 2024 with a further increase in the contribution from non-livestreaming revenue on a year-over-year basis. Now, let's delve deeper into our operational strategies by optimizing product features, providing diverse premium content, and leveraging innovative marketing activities. We continuously enhance our users' content and the social experience. Notably, our global operations teams collaborated with KOLs and industry partners to execute a range innovative online and offline marketing activities in the first quarter. In addition to hosting galleries and culture themes region activities and resonate deeply with our users, we elevated our presence in the offline exhibitions and roadshows We also hosted creature parties and family events to further connect with our community. These initiatives drove deeper engagement with our global communities of users and significantly enhanced both product awareness and our brand influence. Furthermore, as a global technology company, we remain steadfast in our commitment to promoting corporate social responsibilities and sustainable development, and integrating these principles into the core of our local operations worldwide. In March, we launched a series of regional events in Middle East and Southeast Asia to celebrate Ramada, fostering a sense of community among users during this festival period. We also forged partners with several international charitable organizations, including the Indonesia cancer foundations saudi arabia's nama national association and bangladesh's jaguar foundations we made a number of donations to those international charitable organizations inspiring hundreds of thousands of our users to join our costs and provide assistance to local families, patients, and children in need. We have also actively engaged in biologics with government agencies, industry leaders, entrepreneurs, and other stakeholders in our key markets to alien our regional operations with the economic and sustainable development global goals of local communities. For example, in January, we attended the Jordan-Singapore Tech Aliens Forum. with FIGO and the Information and Communications of Technology Associations of Jordan jointly signed MOU. This partnership aims to strengthen bilateral cooperation, promote regional technological innovation, and facilitate economic growth. In March, Beagle participated in LEAP, the largest technology exhibition in the Middle East, where we showcased Beagle's technologies and AI-driven solutions. Beagle's presence underscores our support for the region's sustainable development and our commitment to promoting entrepreneurship, innovation, and digital transformation. Now, let's take a closer look at our product. We will start with Big O Line. In the first quarter, Big O Line's revenue continued its year-over-year rebound, especially Revenue from developed countries grew by 40.8%, accompanied by a 17.2% increase in paid users in those regions. During the quarter, we remain focused on Big O Line's user acquisition strategy. channeling more resources into developed countries to enhance our monetization efficiency. As a result, legalized MAU was slightly down year over year, starting at 37.1 million. However, MAU in developed countries rose by 8%. 8.9% on an annual basis, in contrast with a 4% decline in Southeast Asia and other emerging markets. Moving forward, we will continue to execution our focus user acquisition strategy as we strive to optimize BeagleLive's user mix. While we anticipate some short-term fluctuations in MAU growth, we are confident that these adjustments will enhance the long-term variety of BeagleLive. In the fourth quarter, BeagleLive organized a variety of innovative marketing initiatives enriching the platform with diverse the high quality content and broadening our reach within the global community a highlight was our participating in the ceremonial music festival the word famous italian song contest and award ceremony, held in early February. As a part of Agonizer, Beagle Live showcased 10 of our most talented streamers in a two-hour music extravaganza that was streamed worldwide. In addition, Beagle Live launched an intelligent management system for streamers and agencies which significantly streamlines the contracting and the management process by reducing the average duration from days to mere hours. This efficiency both lead to 4.9 percent, quarter-over-quarter increase in newly contract streamers. We anticipate the automation initiatives such as these will further improve our overall operational efficiency in the long run. Family-based operational activities also played a key role in this quarter, strengthening social balance within our user community in a sequential basis. Our approach yield 1.1% increase in paying family user and 1.5% raise in contacted streamers within families and 6.2% uptake in daily active user in family groups. We also simplified and upgraded BigoLive's homepage and rolled out a refined AI-driven content recommendation algorithm that better catered to our core users' preferences and their real-time feedback. This resulted in an increase of 1.1 percent in next-day user retention and 5.4 percent in average viewers' time spent per live session. Enhancement to live streaming room tools and interactive features contribute to 5.3 percent sequential rates in average during per live session. 4.4% sequential increase in the number of users going live in multi-gathrooms. Next, let's take a look at Leckie. In the first quarter, Leckie'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 the DAU in the core European market maintained sequential growth. LACC'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 fourth quarter, Leike launched a series of engaging community events for creators, users, and brands. This included the Global Leike Party and MENA Gala in the Middle East, co-hosted with Big O Live. As Leike continued to enhance its creators and expanded its optimization tools and incentives for premium creatures. Its number of core creatures increased by 30.6%, quarter over quarter. Finally, turning to HAGO, HAGO sustained a positive operation cash flow during the first quarter. HAGO's implementation of more gaming field interactions and paid features has effectively boosted user engagement and monetization. Standout success was the role of the Fly Across the World event, spanning HAGO's major operation countries. By participating in the event, users could travel virtually to various countries, collect treasures, claim and nurture their travel company's past, and keep virtual gift trailers to each location's unique culture and traditions. The event received Enthusiastic feedback with nearly one-third of our HAGO's total paid user participating. User engagement on HAGO also increased noticeably with daily average time spent in social channels raising by 2.8% to 102 minutes, and the time spent Multi-guest audio live streaming rooms upped by 2.9% from the previous quarter. To sum up, we are off a good start in 2022. Figo has sustained its year-over-year revenue recovery trajectory while further diversifying its revenue mix. The group has a delivered profit growth. Look ahead. We will continue to harness our product experience and drive operational innovations. At the same time, we will further optimize our efficiencies to propel sustainable, profitable growth across our global business. This concludes my prepared remarks. I will now turn the call to our Vice President of Finance, Alex Liu, for our financial updates.