JOYY Inc.

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

Thank you, Operator. Hello, everyone. Welcome to Joy's third quarter 2024 earnings conference call. Joining us today are Ms. Ting Lee, Chairperson and CEO of Joy, 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 inherently subject to risk uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risk 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 chairperson and CEO, Ms. Ting Li. Please go ahead, Ms. Li.

Hello, everyone. I'm Li Ting. Welcome to our third quarter 2024 earnings call. Let's begin with a review of our overall performance during the third quarter. During the third quarter, we effectively executed our strategic priorities, maintaining a strong focus on optimizing our products, defending our market penetration in developed countries, and enhancing our global operational capabilities and efficiencies. These efforts yielded solid results in the third quarter, our group revenue reached $558.7 million. Our core business segment, Siegel, recorded revenues of $496 million, delivering a slight year-over-year increase. Our disciplined execution has led to improvements in operational efficiency at both the bigger segment and group level. Our group non-GAAP operating profit came in at $34.9 million, up 16.4% quarter-over-quarter. Bigger non-GAAP operating profit expanded to $72.9 million, up 5% quarter-over-quarter. exceeding our expectations excluding the impact of FX losses because non-GAAP net profit was also up quarter over quarter. We briefly outlined our strategic priorities in our previous earnings call. Now, let me quickly touch on each of these. we continued to advance our globalization strategy in rating users' interactions and content offerings, while building on our unique position as a global social platform. As we have previously mentioned, BeagleLive is a highly globalized product, offering content across 30 languages and fostering meaningful cross-regional connections. This is particularly evident among our users in diverse countries who actively engage in cross-cultural interactions. What truly sets us apart is the global nature of our user community and the organic social connections that flourish across our platform. a unique value proposition that we are committed to amplifying. To further enhance our global ecosystem, we have implemented a series of upgrades to boost the creation, quality, and distribution of content on our platform. For example, we fine-tuned our content recommendation algorithm to better facilitate content sharing within same language regions and expand cross-regional content flow between highly interactive markets such as North and South America. We also launched global cross-regional initiatives based on user interaction patterns, such as this quarter's Biggest Most Talent competition, organized by our North American team. The event brought together creatures from America, Southeast Asia, and Africa, highlighting our ability to unite diverse talent across high-engagement gradients. On the technology front, we are preparing to introduce standardized global content guidelines and comments over testing of AI-powered real-time caption translation in the select languages. This enhancement will streamline our cross-regional content delivery and better serve our users' growing appetite for global content and social connection. Second, we are listing forecasts on operational efficiency by optimizing every aspect of our global localized operations from user acquisition to KOL management to our user engagement and monetization mechanisms we aim to comprehensively strengthen the efficiencies and capabilities of our global operations and drive data expansion in product and group profitability. During the quarter, we conducted comprehensive ROI analysis across products, regions, and user acquisition channels. Leveraging this insight, we optimize our resource allocation, redirecting our advertising spending from underperforming regions toward developed countries, and forecast on the acquisition of premier users with greater monetization potential. As a result, Big O Life has achieved consistent year-over-year and sequential user growth in developed countries, with overall ROI improving by double digits from the previous quarter, even with a 7.3% sequential reduction in its total user acquisition spending. In other underperforming regimes, we have shifted some of our efforts from traditional advertising channels to more cost-effective user acquisition methods, such as KOL partnerships and elaborate social features like RealMatch to expand our product reach. These targeted initiatives underscore our commitment to cultivating a sustainable, high-quality user base will substantially enhance content quality and social experience to drive long-term user monetization potential. For Lighty, we have MendingTree, a strategy forecast on our core market in the Middle East and Europe. Successfully implementing monetization through both live streaming and advertising. This targeted approach has enabled us to achieve our initial milestone and profitability. To further unlock Lite's monetization potential, we recently redirected some of its operational resources, including personal and traffic. toward a new social live streaming product. This means that the resources currently allocated to non-core markets, which do not contribute much to LightEase monetization, will be further optimized, potentially leading to declines in LightEase user metrics in the near term. However, we believe this advertising strategy will accelerate our new product development, strengthen our position in Leica's core market, and ultimately enhance Leica's monetization potential in the long run. Third, we have continued to cultivate long-run initiatives that will further diversify our revenue streams. In the third quarter, our group non-live streaming revenue grew 13.1% sequentially to $119.2 million, representing 21.3% of group revenue. Because non-live streaming revenue primarily is generated from advertising, increased 15.5% quarter-over-quarter to 78.2 million. This growth was followed by strong momentum in Europe and North America, underscoring our strategic initiatives and commitment to expanding our footprint in this market. Building these new initiatives into meaningful revenue streams requires patience and sustained investment. We remain committed to nurturing these opportunities to realize their full potential. We sustained our positive operating cash flow in the third quarter. generating $61.1 million at the group level. Supported by our strong cash flow and healthy financial position, we actively advanced our shareholder return initiative. In the third quarter, we accelerated our share repurchase, buying back an additional $117.8 million worth of our shares, with $283 million remaining anonymized under our repurchase program. We will continue to actively execute share buybacks to reward our shareholders' ongoing support. Now, let's take a closer look at our product, starting with BeagleLive. In the third quarter, we sharpened our operational strategy by prioritizing our advertising, investment, and operational resources toward developed countries and premier users. This targeted approach yielded strong results in developed countries, where end-use grew 3.4% year-over-year and paying users increased 9.1% year-over-year. We also saw encouraging momentum in the Middle East, where big-of-life revenue increased 5.6% sequentially. During the quarter, Biggles Live successfully organized the third season of Biggles Most Talented, featuring categories including music, dance, and beauty. The event attracted outstanding creatures from around the world. Building on previous seasons, we introduced a more comprehensive judging system incorporating key audience engagement metrics. This allowed a seamless merger of interactive live streaming with traditional talent show elements. The season culminated in a grand final broadcast from Los Angeles on October 16th. Captivating a global audience, the event resonated strongly with viewers amassing an impressive 5.79 million audience votes, highlighting the high level of engagement surrounding the competition. We also strengthened bonds with our business partners and our user community through a series of mid-year gathers across Saudi Arabia, Vietnam, Thailand and the Philippines. These gatherings brought together the cornerstone members of our ecosystem, top creators, users and partners to celebrate their achievements and vital contributions to our progress in the first half of the year. Throughout the quarter, We further developed BeagleLive's social engagement features, prioritizing improvements to real-match and messaging functionality. These upgrades drove deeper user connections and more efficient follow-up conventions. Notably, real-match average DAU penetration rate increased significantly to 23.4%, where the number of direct chat messages rose by 15.9% from the previous quarter. We also saw a 4.3% rise in average new followers per user, indicating stronger community building. By directing traffic to premier hosts and upgrading interactive features, we saw broader creature participation and user engagement in multi-guest rooms. We achieved a 3.9% sequential increase in the penetration rate of user hosting a live session in multi-guest rooms. Alongside a 3.6% sequential increase in the overall rate of users going live as guest speakers. Next, moving to lighting. Our strategy for lighting remains rooted in the Middle East and European markets, where we continue to build momentum and enhance monetization across both live streaming and advertising. As a result, Leike's advertising revenue grew 33.4% year-over-year in the third quarter, and Leike mentioned its profitability. During the quarter, we elevated Leike's user experience across its core markets through enhanced content quality interactively, and community engagement. A standout community building initiative was our August music festival tour across five European cities, which brought together lighted top creators, from music bloggers to dance groups, alongside established performers and celebrities. This unique event delivered an unprecedented interactive experience for the Leike community. In September, Leike served as the official media partner for Physical Games 2024, providing eight days of live streaming coverage to immersed users. In the competitive prowess of top athletes, in digital football, basketball, laser shooting, and simulated dance. Our expanded premium content offerings and content diversity drove a 12.3% quarter-over-quarter increase in users' video time spent. Finally, turning to Huggle, in the third quarter, Our targeted incentive strategy across different paying user segments drove improved monetization metrics. We saw positive momentum in Haggle's paying users and approved, with its total revenue growing 6.1% quarter-over-quarter. Haggle's operating losses further narrowed from the previous quarter and its operating cash flow remained positive. HAGO's social engagement metrics remained strong in the third quarter. Average time spent in social channels increased 2.5% quarter-over-quarter to 105 minutes. And the next day, retention rates showed significant improvements. These positive trends underscore the success of our engagement strategy and reflect our commitment to enriching user experiences while advancing monetization efforts within the platform. Looking ahead, our strategic roadmap continues to center on three core priorities, strengthening our position as a distinctive global social platform through enhanced user experiences, developing diverse revenue streams to drive sustainable growth, and advancing excellence across our global operations. Anchored by our strong cash flow and solid financial footing, we are dedicated to driving profitable growth and creating enduring value for our shareholders. I will now turn the call over to Mr. X Liu, the Vice President of Finance, to provide our financial update. Thank you.