JOYY Inc.

Well, our ad tech platform bigger is accelerated top line growth with its total ad revenue growing over 19.7% quarter over quarter. Meanwhile, we maintain the robust cash flow generation and continued to actively return value to shareholders. Last quarter, I expressed our long-term commitment to building a meaningful and lasting presence in the ag-tech industry. This quarter, we made a concrete progress toward that goal. Beagle 8's daily growth revenue grew aggressively and reached new heights. As we further in scale and continuously increase our AI algorithm. We are confident we will soon reach new milestones. We achieved a total revenue of $540 million in the third quarter, up 6.4% quarter over quarter. our live streaming revenue was $388 million, up 3.5% QQ, making two consecutive quarters of sequential growth. Meanwhile, Beagle 8 recorded $104 million in revenue, with a year-over-year growth of 33.1%, bringing total non-live streaming revenues including ad revenues and others, to 28.1% of group revenues. Non-GAG operating income reached $41 million. Of 16.6% year-to-year, Non-GAG EBITDA reached $51 million. up 16.8% year-to-year and 4.9% KOQ. Operating cash flow for the quarter reached $73 million. As of September 30, we had $3.3 billion in net cash. This provides strong support for our ongoing competitive shareholders' returns. we will continue actively executing our share repurchase program. As we advance our strategic priorities alongside strong oppositional momentum, we are positioned to deliver long-term value for our shareholders. As we approach year end, I would like to outline our overall strategic direction for year 2026. In short, we will focus on three key priorities, strengthening ecosystem synergies, reinforcing organization, vitality, and budgeting goals. Beginning in 2022, we accelerated the diversification of our revenue stream, contributing our 2B initiatives in ad tech and SaaS. We have made steady progress advancing towards our strategic positioning as a global tech company powered by multiple growth engines in the past several years. Today, our live streaming business serves as a reliable cash call, providing a solid foundation for profitable growth. In the meantime, our advertising platform and e-commerce SaaS businesses have completed initial validation of their business models and are rapidly emerging as our next growth curve. In Q3, our total non-live streaming revenues exceeded 28.1% of group revenues. We have created a highly synergistic system where our global traffic, advertising, and e-commerce SaaS businesses reinforce each other. The R&D capabilities network infrastructure, local operations expertise, and fourth-party data access we commonly treat through global social live streaming are now powering our rapid 2B expansion. In turn, our 2B progress strengthens our competitive modes in both data and technology. We are just beginning to unlock the full strategic value of this integrated business ecosystem. We are transforming our high-growth ad tech business by establishing bigger aids as an AI-powered global platform for performance-driven, multi-channel advertising across different verticals. In 2026, we expect to substantially extend our traffic coverage. On mobile traffic, we are exploring partnerships with many Asian platforms and developers like Google AdMob to accelerate traffic expansion. On web traffic, we are extending traffic coverage through partnerships with channels like Microsoft Answer and Google ADX. On the diamond side, as we establish web-to-web advertising capabilities and integrate our web models, we expect to capture continued growth from web-based advertising. For mobile-based advertising, We are enhancing our IIA Day Saving Roads product to improve advertiser ROI for IIA, while advancing the optimization of our target CPE and other products for IAP to expand into area. Finally, On platform technology, we expect to establish and strengthen our iOS ecosystem in 2026, which will enable us to unlock substantial incremental growth potential from iOS high-quality traffic. We will also continue investing in AI, building our team and resources to accelerate model development and optimization. These enhanced models will leverage deep user behavior and conversion data across channels and verticals, enabling more precise targeting and better performance for our advertisers. We have clear strategies in place to drive continued growth in 2026 across all damage dimensions, including multi-channels, traffic expansion, vertical specific diamond development, and enhanced AI modeling capabilities. These initiatives will create powerful flywheel effects which will compound enabling us to deliver increasing value to advertisers while accelerating our own growth. We believe 2026 will be a milestone year for joint ag tech business, and we are excited about the possibilities ahead. Turning to Shopline, we remain bullish on the long-term prospects of the SaaS-based e-commerce sector. Unlike World Garden Marketplace platforms, Shopline provides an open and extensible solution to merchants, through which merchants have full data ownership for advanced operations. For the past several years, ShopLine's commission has been product excellence. We have made a substantial investment in R&D to evolve from a storefront builder into a full-state e-commerce system seamlessly, combining SaaS, infrastructure, payments, and integrated making tools into one powerful closed loop. With this rise of AI, we are now unveiling advanced AI capabilities deeply into every part of the merchant's journey, continuously sharpening our product's edge to drive real business success for our customers. Since last year, we've seen accelerated growth in certain key regions, with steady expansion in growth margins. This is an important strategic milestone for Shopline. Our longstanding commitment to R&D, excellence, and talent recruitment has built the deep technological foundation that pours our success across all business segments. Through our modular organizational structure, we enhance synergies by sharing resources and capabilities across business lines. Our approach enables us to remain agile and the execution forecast will give new ventures competitive advantages from day one and creating significant operating leverage as we scale. As we expand and diversify into new initiatives, our results-driven incentive merchants provide our top talent with equitable opportunities and broader career development pathways by fostering an entrepreneurial spirit, embracing innovation, and leveraging competitive incentives to attract and retain excellent talents while Insuring high strategic goal adjustment between management and the core team members, we drive more efficient corporate development. From management strategy priorities standpoint, we have a balanced framework. incorporating both operating metrics and long-term shareholders' value creation, which promotes strong augments with shareholders' interest. After several quarters of adjustments, our live streaming business has returned to a sequential recovery trajectory. We believe it is positioned for steady year-over-year growth in 2026. Meanwhile, we expect our AgTech and SaaS business will sustain robust double-digit revenue growth year-over-year in the coming year. This sets the stage for year-over-year group revenue growth starting in Q4 2025. as reflected in our newly announced guidance, and continue into 2026 and beyond. This is not just the return to girls, but rather the launchpad for unlocking vastly large addressable markets. Next, let me share with you our latest operational updates and our outlook for the future. In the third quarter, our global average mobile MAUs reached 266 million, up 1.4% quarter over quarter. Our organic users' growth continued to be strong. driven by our instant manager. In Q3, IAM product admin use grew by 6,000,000 QOQ, with average time spent per user up 10.8% year-over-year. Product retention rate continued to improve year-to-year, driven by our ongoing enhancements to call IAM features. On user acquisition, we mentioned a disciplined ROI forecast, targeting users with strong monetization potential because 30-day ROI from new devices improved 6.7% quarter-over-quarter as a result. In Q3, Group live streaming revenues reached $388 million. People live streaming revenue was $368 million, up 3.5% QQ, maintaining their sequential growth trend. Because total paying users grew 0.8% QQ, while up increased 3.4% QQ. Big Alive delivered positive sequential growth for the second consecutive quarter. This recovery reflects our comprehensive integrated approach where we have leveraged effective streamer-inclusive programs, a healthy and diverse high-quality content ecosystem, AI-powered user touchpoint enhancements which improve content discovery and payment experiences, and strong local operational campaigns. These initial tips together drove renewed growth. Since the second half of last year, we have restructured our streamer incentive mechanisms across regions. Shifting support toward middle-tier streamers, we are now seeing significantly improved streamer engagement and content quality across platforms. In Q3, average streaming hours for newly signed streamers on BeagleLive rose 3.5% QQ and average viewer numbers increased 3.9% QQ. We continue advancing AI-powered improvement across content distribution and payment experiences by incorporating feature user signals through AI and optimizing strategies for cross-regional and in-app scenarios in bigger life. We enhanced viewing experiences and drove users' average viewing time up 3.4% QOQ. Meanwhile, our real-time translation subtitle now supports 15 languages, significantly improving users' interaction across different regions. We have also used AIGC technology to efficiently generate localized virtual gifts. In October, AI-powered interactive GIFs represented 25% of total virtual gift consumption demonstrating strong user adoption of AI-enhanced features. We have used packages' strategies to further optimize Bill of Life's tiered paying users' benefits system. In Q3, mid-tier users approved increased 2% QQ, while the total numbers of premium paying users achieved double-digit QQ growth. Looking ahead to 2026, we are confident that our streamer incentives, content contribution, and AI-driven optimization will position bigger lives to regain momentum for growth. We are also advancing payment infrastructure improvements to deliver more diverse, localized payment options for global users. We believe this view will tailwind to drive payment rate improvements across all products over time. Overall, we are confident that live streaming will return to steady growth in 2026 and continue contributing sustainable cash flow for the group. Turning to figure eight. In Q3, Beagle 8 achieved $104 million in advertising revenue, up 33.1% year-to-year and 19.7% QQ. While first-party ad revenue and profit remained stable with single-digit QQ growth, our third-party Beagle audience network was particularly strong, recording mid-double-digit yield year and 25% sequential growth. On the traffic side, bigger audience network traffic continued to grow this quarter. SDK ad requests were up 228% yield year and 29% QQ, representing significant growth. On the technology front, we upgraded our IAA Day 7 rules, optimization with AI-driven real-time prediction and smart building capabilities. By leveraging cross-channel and cross-vertical user behavior and attrition data, the enhanced model delivers Significantly improved predation, equity, and generationization that enable advanced advertisers to scale budgets with greater competence, acquiring higher quality users while sustaining strong return efficiency. We saw strong growth across the board, driving the algorithm integration and featured traffic, new markets, expansion, and strong advertiser demand across multiple verticals. B2A's daily growth revenue reached new heights and continues on this upward trajectory with strong momentum. Web-based downloads primarily for lead generation maintained change growth QQ and we are optimistic on its Q4 growth prospects as we enter into the peak season. Meanwhile, improved IAA delivery and effectiveness substantially drove IAA advertisers spending up by mid double-digit QQ. During the third quarter, total spending from key cohorts increased by 30% QQ. At the same time, performance games attracted a steady influx of new advertisers, with the numbers of key cohorts up by 17% QQ. From regional perspective, we continued to depend on our penetration in the developed countries. With bigger audience, network revenue from North America grew in 22% QQ, while Western Europe grew in 41% QQ. We delivered exceptional results in Q3, driven by rapid network traffic expansion, continuous optimization, and delivery efficiency improvements and rapid growth in net verticals. As we outlined in last quarter's earnings call, bigger A's represent our second growth engine and a core long-term strategic initiative. We are committed to building a meaningful and lasting presence in this space and to see significant opportunities ahead. Turning to capital returns, as of November 14, we have reported US$88.6 million under our share buyback program. Given our strong financial position and operating momentum, we believe our shares remain undervalued, and we will continue actively executing share repurchases as part of our commitment to returning value to shareholders. Looking forward, with our live streaming business, stabilizing and the rising revenue and profit from advertising and other emerging businesses. We expect the company's consolidated operating profit to continue to improve and our shareholders to benefit from long-term profitable growth. In summary, we are optimistic about the positive change we are driving across our business units. Our core live streaming business is a trend-shattering and continued sequential growth, and we expect live streaming to gradually remain momentum for growth. BiggerAce is scaling rapidly as our second growth engine, driven by traffic, regional, and vertical expansion and algorithm optimization. And we are strengthening Shoplight's product capabilities and strategies at one stage as a fully integrated SaaS platform with anticipated synergies with our S-PAC platform on the horizon. As I mentioned earlier, We are just beginning to unlock the full strategic value of our integrated business ecosystem. We anticipate that 2026 will be a renewed program and serve as a jumping-off point into our next phase of growth. I will now turn the call over to Ms. Aglio, the Vice President of Finance, to provide our financial update.

Thanks, Misty. Hello, everyone. In the third quarter of 2025, we recorded total net revenues of 540.2 million, securing a quarter-over-quarter growth of 6.4%. Our live streaming business delivered its second sequential recovery with its live streaming revenues increasing by 3.5% quarter over quarter. Our advertising business, in particular Beagle Edge, has demonstrated accelerating growth. Beagle Edge revenues was up by 63.1% year over year and 19.7% quarter over quarter. Our Nungat EBITDA for the quarter was $50.6 million, up by 16.8% year-over-year and 4.9% quarter-over-quarter. Upgrading cash flow remained strong at $73.4 million in Q3, and we ended the quarter with $3.3 billion in net cash. We accelerated share buyback during the quarter. In Q3, we bought back $30.8 million worth of our shares. Between January 1st and November 14th, we had bought back $1.7 million of our ADS for $88.6 million in 2025. I will now dive deeper into our detailed financial performance. Looking at our live streaming business, our total live streaming revenue were $388.5 million for the third quarter, $367.7 million of which was from Beagle segment. Both up quarter over quarter. Global MAU was $266.2 million during the quarter. up by 1.4% quarter-over-quarter, driving by a heresy growth of the user pool of our instant messenger. Our ROI-oriented user acquisition, continued AI-driven optimization of our content quality and paying user experience have contributed to improved payment sentiment. With Pico's total paying user and app, increasing by 0.8% and 3.4% quarter over quarter. By rating, group's total live streaming revenues from developed countries increased by 7.6% quarter over quarter, while live streaming revenues from Southeast Asia increased by 4.4% quarter over quarter. Our total net non-live streaming revenues were 151.7 million during the third quarter, up by 27.3% year-over-year. Non-live streaming now contributes 28.1% of our total group revenues, up from only 21.3% contribution in the same period last year. We are presenting advertising revenues as a separate line item in the financial statements in this quarter to help investors better understand the performance of our emerging business. Beagle's advertising revenues increased by 33.1% year-over-year and 19.7% quarter-over-quarter to $103.9 million. In particular, our third-party big audience network delivered exceptional results, recorded made double-digit year-over-year and 25% sequential growth. We are making substantial progress on all fronts. On the traffic front, SDK network ad request was up by 250%. 28% year-over-year and 29% quarter-over-quarter in Q3, leveraging multi-channel and cross-industry user behavior and increasing data. We continued to train and optimize our algorithms to further improve our campaign performance, which drove advertiser spending. The number of key cohorts was up by 17% quarter over quarter, with total spending from key cohorts up by 30% quarter over quarter. EcoEdge has certainly emerged as our second major growth engine, and it continued to make a positive contribution to our bottom line. Groove's gross profit was 193.1 million in the quarter, with a gross margin of 35.8%, up by 4.3% quarter over quarter. Beagle's gross margin was slightly down quarter over quarter due to a safety in our revenue mix, which saw an increased contribution from our low margin network and revenues. All other segments' gross margin was upped by 3 percentage points year-over-year to 42.6% due to growth in high-margin sales revenues. Our group's operating expenses for the quarter were $134.2 million, compared with $192 million in the same period of 2024. For our sales and marketing expenses, we are consistently optimizing our user acquisition expenses to enhance ROI. For our R&D and G&A expenses, we maintained prudent and disciplined in our total spending through enhanced resources sharing and operational synergy across different business units. while strategically allocating incremental share of our R&D resources towards BQX. Our group's non-GAAP operating income for the quarter was $40.7 million, up by 16.6% year-over-year. Non-GAAP net income attributable to controlling interest of joint in the quarter was $72.4 million, up by 18.4% year-over-year. The group's non-GAAP net income margin was 13.4% in the quarter. For the third quarter of 2025, we booked net cash inflows from operating activities of $73.4 million. Our balance sheet remains healthy with a strong net cash position of $3.3 billion as of September 30, 2025. Shareholder return continued to be an important component of our capital allocation strategy. We have returned $147.9 million to our shareholders through dividends. and repurchased 88.6 million worth of our shares during the year as of November 14, 2025. We believe we are still substantially undervalued and we will remain firmly committed to actively utilize our outstanding share repurchase program. Turning now to our business outlook. At the group level, we expect our net revenues for the fourth quarter of 2025 to be between $563 million and $578 million. This implies a 2.5% to 5.2% year-over-year growth for the group's revenue in quarter four. As Misty highlighted in her prepared remarks, We are now representing for growth. In particular, with advertising entering into the peak season of the year, we are expecting continued accelerating growth from Beagle Edge. With its total advertising revenue, potentially delivering mid-to-double digits year-over-year growth in the first quarter. Based on the trends we are seeing across our business, We have clear visibility for the group to year-over-year revenue growth in year 2026, and we are extremely excited about the tremendous sensitive potential and powerful flat-wheel momentum that our business segments will deliver in the medium to long term. That concludes our prepared remarks. Operator, we now like to open up the call to questions. Thanks.

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