JOYY Reports Fourth Quarter and Full Year 2023 Financial Results: Third Consecutive Year of Profitability, Global MAU Resumes Growth

SINGAPORE, March 19, 2024 /PRNewswire/ — JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”), a global leading technology company, announced its unaudited financial results for the fourth quarter and full year of 2023.

During the fourth quarter, JOYY’s revenue came in at US$570 million. The Company’s core business segment BIGO generated revenues of US$491 million, up 3.1% year over year. For the full year of 2023, JOYY’s revenue reached US$2.27 billion, with BIGO contributing US$1.92 billion.

Due to continued optimization of operational efficiencies and strong execution, JOYY delivered continued profitability for the third consecutive year. The Company’s net profit and non-GAAP net profit¹ for the full year of 2023 reached US$302 million and US$293 million, with GAAP and non-GAAP net margins¹ of 13.3% and 12.9%, respectively. The BIGO segment’s operating profit and non-GAAP operating profit¹ for the full year of 2023 reached US$230 million and US$288 million, with GAAP and non-GAAP operating profit margins¹ of 12.0% and 15.0%, respectively. Notably, all social entertainment products under the BIGO segment were profitable in 2023. In addition, Hago generated its first-ever positive operating cash inflow for the year.

Creating and returning value to its shareholders remains an important priority for JOYY. Over the course of 2023, JOYY repurchased shares and distributed cash dividends in an aggregate amount of US$355 million, equivalent to 121.5% of its annual non-GAAP net profit¹. From 2020 to 2023, JOYY has in total distributed approximately US$1.38 billion in capital returns.

Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “2023 proved to be a year of progress. Importantly, global average mobile MAUs resumed year-over-year growth for three consecutive quarters. Our relentless optimization of operational efficiencies led to continued profitability for the third consecutive year. During the fourth quarter, BIGO sustained its top line recovery, with revenue increasing by 3.1% on an annual basis, driven by a steady 7.9% year-over-year growth in its number of paying users.”

“In 2024, globalization through localization remains our foremost strategy and the cornerstone for our global success. We will continue to cultivate our content and social ecosystems to steadily grow our thriving user community and reinforce our leadership in core geographic regions. We will dedicate our resources to build our core strengths, and carefully explore long-term growth opportunities. By driving innovations in both our products and operations, we expect to further diversify our revenue streams and capture long-term sustainable growth.”

Full Year 2023 Financial Highlights

• Net revenues for the full year of 2023 were US$2,267.9 million.
• Net income attributable to controlling interest of JOYY for the full year of 2023 was US$301.8 million, compared to US$128.9 million in 2022.
• Non-GAAP net income¹ attributable to controlling interest and common shareholders of JOYY for the full year of 2023 increased by 46.8% to US$292.5 million from US$199.3 million in 2022. Non-GAAP net income margin¹ for the full year of 2023 was 12.9%, compared to 8.3% in 2022.

Fourth Quarter 2023 Financial Highlights

• Net revenues were US$569.8 million in the fourth quarter of 2023.
• Net income attributable to controlling interest of JOYY in the fourth quarter was US$45.8 million, compared to net loss of US$377.5 million in the corresponding period of 2022. 
• Non-GAAP net income¹ attributable to controlling interest and common shareholders of JOYY in the fourth quarter was US$64.2 million, compared to US$50.0 million in the corresponding period of 2022.

Fourth Quarter and Full Year 2023 Business Highlights

According to data.ai (formerly known as App Annie), Bigo Live was ranked as the World’s #2 Social App by consumer spend in 2023². Bigo Live’s global success stems from its diversified content ecosystem and constantly evolving social interaction features.

In the fourth quarter, Bigo Live maintained its user growth momentum, with MAUs increasing by 4.5% year over year to 38.4 million. Growth was observed across several key regions, with year-over-year MAU increases of 10.9% in Europe, 8.4% in the Eastern Pacific Region, and 12.6% in the Middle East. Bigo Live’s revenue and paying users sustained their recovery trend and sequential growth.

During the fourth quarter, Bigo Live organized a series of events to discover both outstanding creators across various domains and inspire new and diverse content creation. In October, Bigo Live hosted the second season of its BIGO’s Most Talented creator contest in North America. This event attracted talented dancers, singers, musicians, magicians, comedians, and more. Bigo Live also unveiled a brand-new creator incentive program across major regions around the world. While Bigo Live continued to support experienced professional streamers and PUGC, this program placed a stronger emphasis on new amateur streamers and UGC. As well as generous economic rewards, Bigo Live provided comprehensive training courses for amateur streamers, helping newcomers to develop their skills and learn the ropes of successful streaming. The UGC incentive program has already attracted over 300,000 amateur streamers as of the end of 2023. In January, BIGO successfully held its annual flagship event, the BIGO Awards Gala, in Las Vegas. The online livestream of the event attracted over 1.2 million viewers from across the globe. This year, Bigo Live also hosted regional galas in various locations, including Indonesia, Vietnam, and the Philippines.

In the fourth quarter, Bigo Live’s Family-based activities encouraged users to further explore and engage in Family events. On a sequential basis, revenue contributed by Family members increased by 5.7%. The number of contracted streamers in Families rose by 16.5% and average DAUs in Families increased by 5.5%. Throughout the fourth quarter, Bigo Live personalized the user experience by refining recommendation algorithms for its diverse user base. The next-day user retention rate in the fourth quarter rose by 2.3% sequentially, while average viewer time spent per session surged by 6.4%. By refining and optimizing the overall matching process, Bigo Live successfully leveraged Real Match to cultivate a greater number of stable user connections. In the fourth quarter, the total number of connections increased by 23.3% sequentially, and the number of direct chat messages between matched users grew by 14.8%.

In 2023, Likee maintained its strategic focus on its core Middle East and Europe markets and implemented a series of targeted operational and product optimizations to drive user recovery and stimulate monetization growth. The number of Likee’s paying users grew for four consecutive quarters during 2023. In terms of monetization, Likee’s revenue for the full year was up year over year in 2023. Additionally, the recovery of DAUs in the Developed Countries Region (especially Europe), an evolving creator services ecosystem, and a more established business and creator marketplace, all contributed to Likee’s advertising revenues growing by nearly 2.5  times for the full year of 2023. Thanks to the steady progress on diversifying its monetization channels and disciplined spending, Likee has achieved its first full-year profitability in 2023. Likee also achieved significant breakthroughs in key markets in 2023. According to data.ai (formerly known as App Annie), Likee was ranked as Saudi Arabia’s #3 Social App by consumer spend in 2023².

In the fourth quarter, Likee introduced text and image posting features alongside new monetization options, enabling user subscriptions for both video collections and individual videos. These features offer creators greater flexibility in terms of content formats, opening up new opportunities for monetization. During the fourth quarter, Likee continued to enhance its content production quality, leading to 2.7% sequential growth in average user time spent. Thanks to upgraded interactive features, overall user engagement, as measured by the ratio of DAUs to MAUs, improved by 2.2% in the same period.

According to data.ai (formerly known as App Annie), Hago secured Top 10 positions in both Indonesia and the Philippines among social apps, in terms of consumer spending². Thanks to enhanced monetization in its core markets, Hago achieved its first full-year operating cash flow break-even in 2023.

During the fourth quarter, Hago’s innovative year-end events and compelling new operational features drove sequential revenue growth. Furthermore, user social interactions also improved during the fourth quarter. Average time spent per user in social channels increased by 4% sequentially, surpassing 99 minutes. Average time spent per user in multi-guest voice rooms saw a similar trend, increasing by 4.9% over the same period. 

1. For details of the non-GAAP measures, including the reconciliations of GAAP measures to non-GAAP measures, please refer to the press release titled “JOYY Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results” issued by the Company on March 19, 2024.

2. Based on data.ai (formerly known as App Annie)’s State of Mobile report published in January 2024.