JOYY Reports Fourth Quarter and Full Year 2024 Unaudited Financial Results

SINGAPORE, March 20, 2025 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”), a global technology company, today announced its unaudited financial results for the fourth quarter and full year of 2024. Fourth Quarter 2024 Financial Highlights1 Net revenues were US$549.4 million, compared to US$569.8 million in the corresponding period of 2023.Net loss attributable to controlling interest of JOYY2 was US$304.1 million, compared to net income of US$45.8 million in the corresponding period of 2023. This result includes the impact of a US$454.9 million non-cash goodwill impairment charge. Adjusted for this particular non-cash impact, net income excluding goodwill impairment attributable to controlling interest of JOYY3 was US$71.1 million.Non-GAAP net income attributable to controlling interest and common shareholders of JOYY4 was US$96.1 million, compared to US$64.2 million in the corresponding period of 2023. Full Year 2024 Highlights Net revenues were US$2,237.8 million, compared to US$2,267.9 million in 2023.Net loss attributable to controlling interest of JOYY was US$146.2 million, compared to net income of US$301.8 million in 2023. This result includes the impact of a US$454.9 million non-cash goodwill impairment charge. Adjusted for this particular non-cash impact, net income excluding goodwill impairment attributable to controlling interest of JOYY was US$229.0 million.Non-GAAP net income attributable to controlling interest and common shareholders of JOYY was US$298.5 million, compared to US$292.5 million in 2023. Fourth Quarter 2024 Operational Highlights Global average mobile MAUs5 was 263.1 million, compared to 274.9 million in the corresponding period of 2023, primarily due to the Company’s optimization of overall sales and marketing strategies to be more focused on return-on-investment and disciplined spending on advertising across various product lines.Average mobile MAUs of Bigo Live was 33.4 million, compared to 38.4 million in the corresponding period of 2023.Average mobile MAUs of Likee was 30.6 million, compared to 39.1 million in the corresponding period of 2023.Average mobile MAUs of Hago was 3.6 million, compared to 4.6 million in the corresponding period of 2023.Total number of paying users of BIGO (including Bigo Live, Likee and imo)6 was 1.54 million, compared to 1.67 million in the corresponding period of 2023.Average revenue per paying user, or ARPPU, of BIGO (including Bigo Live, Likee and imo)7 was US$237.1, compared to US$244.8 in the corresponding period of 2023. Ms. Ting Li, Chairperson and Chief Executive Officer of JOYY, commented, “In 2024, we made substantial progress in enhancing our operational efficiency and diversifying our revenue streams. Our group’s non-GAAP operating income for the full year of 2024 reached US$136.1 million, improving by 4.2% year over year. Our group’s non-livestreaming revenues grew by 55.9% to US$449.8 million year over year. In addition, we reaffirmed our commitment to returning value to shareholders by repurchasing 9.21 million ADS for a total of US$309.2 million during the year, representing 15.1% of our total shares outstanding as of the end of 2023.” “As we embark on a new chapter following the divestiture of YY Live, we have firmly established ourselves as a global technology company with remarkable international reach. Moving forward, we remain deeply committed to driving diversified growth across our global operations and deepening our penetration in key markets to build on this success. Through AI-driven innovation, we are comprehensively enhancing our operational efficiency and cultivating meaningful experiences for our users. Based on our solid operational execution, we remain confident in continuously driving sustainable growth of our global business and creating long-term value for our shareholders.” Fourth Quarter 2024 Financial Results NET REVENUES Net revenues were US$549.4 million in the fourth quarter of 2024, compared to US$569.8 million in the corresponding period of 2023. Live streaming revenues were US$422.4 million in the fourth quarter of 2024, compared to US$486.2 million in the corresponding period of 2023. The decrease was mainly due to the decline in the number of paying users and ARPPU of BIGO, as well as adjustments to the interactive features of our non-core audio livestreaming products to enhance compliance. Other revenues increased by 51.9% to US$127.0 million in the fourth quarter of 2024 from US$83.6 million in the corresponding period of 2023, primarily due to the substantial growth of our advertisement revenues. COST OF REVENUES AND GROSS PROFIT Cost of revenues decreased by 6.2% to US$345.7 million in the fourth quarter of 2024 from US$368.4 million in the corresponding period of 2023. BIGO’s cost of revenues decreased by 1.3% to US$304.9 million, primarily driven by a US$5.5 million decrease in payment handling costs. All other’s cost of revenues decreased by 31.4% to US$40.8 million, consistent with the decline in segment revenue. Gross profit was US$203.8 million in the fourth quarter of 2024, compared to US$201.5 million in the corresponding period of 2023. Gross margin was 37.1% in the fourth quarter of 2024, compared to 35.4% in the corresponding period of 2023. OPERATING EXPENSES AND INCOME Operating expenses were US$633.5 million in the fourth quarter of 2024, compared to US$199.4 million in the corresponding period of 2023. Among the operating expenses, sales and marketing expenses decreased to US$67.0 million in the fourth quarter of 2024 from US$92.3 million in the corresponding period of 2023, primarily due to reduced spending on user acquisition through advertising. Research and development expenses decreased to US$67.5 million in the fourth quarter of 2024 from US$72.6 million in the corresponding period of 2023, primarily due to decreases in salary and welfare of US$2.6 million and decreases in share-based compensation expenses of US$1.2 million. General and administrative expenses increased to US$44.0 million for the fourth quarter of 2024 from US$34.6 million in the corresponding period of 2023 primarily due to an increase in expected credit loss of receivables. Goodwill impairment charges was US$454.9 million for the fourth quarter of 2024. The impairment was primarily attributable to goodwill associated with the Company’s prior acquisitions, mainly driven by lower valuations amid current market conditions. Operating loss was US$427.9 million in the fourth quarter of 2024, compared to operating income of US$4.8 million in the corresponding period of 2023, primarily due to goodwill impairment charges of US$454.9 million. This result includes the impact of a US$454.9 million non-cash goodwill impairment charge. Adjusted for this particular non-cash impact, operating income excluding goodwill impairment8 was US$27.1 million in the fourth quarter of 2024. Operating loss margin was 77.9% in the fourth quarter of 2024, compared to operating income margin of 0.8% in the corresponding period of 2023. Non-GAAP operating income9 was US$46.4 million in the fourth quarter of 2024, compared to US$27.9 million in the corresponding period of 2023. Non-GAAP operating income margin10 was 8.4% in the fourth quarter of 2024, compared to 4.9% in the corresponding period of 2023. NET INCOME Net loss attributable to controlling interest of JOYY was US$304.1 million in the fourth quarter of 2024, compared to net income of US$45.8 million in the corresponding period of 2023. This result includes the impact of a US$454.9 million non-cash goodwill impairment charges. Adjusted for this particular non-cash impact, net income excluding goodwill impairment attributable to controlling interest of JOYY was US$71.1 million in the fourth quarter of 2024. Net loss margin was 55.4% in the fourth quarter of 2024, compared to net income margin of 8.0% in the corresponding period of 2023. Non-GAAP net income attributable to controlling interest and common shareholders of JOYY was US$96.1 million in the fourth quarter of 2024, compared to US$64.2 million in the corresponding period of 2023. Non-GAAP net income margin11 was 17.5% in the fourth quarter of 2024, compared to non-GAAP net income margin of 11.3% in the corresponding period of 2023. NET INCOME PER ADS Diluted net loss per ADS12 was US$5.67 in the fourth quarter of 2024, compared to diluted net income per ADS of US$0.70 in the corresponding period of 2023. Non-GAAP diluted net income per ADS13 was US$1.77 in the fourth quarter of 2024, compared to US$0.97 in the corresponding period of 2023, up by 82.5% year over year. BALANCE SHEET AND CASH FLOWS As of December 31, 2024, the Company had net cash14 of US$3,300.4 million, compared with US$3,357.9 million as of December 31, 2023. For the fourth quarter of 2024, net cash from operating activities was US$110.5 million. SHARES OUTSTANDING As of December 31, 2024, the Company had a total of 1,041.2 million common shares outstanding, representing the equivalent of 52.1 million ADSs assuming the conversion of all common shares into ADSs. Full Year 2024 Financial Results Net revenues for the full year of 2024 were US$2,237.8 million, compared to US$2,267.9 million in 2023. Operating loss was US$405.6 million for the full year of 2024, compared to operating income of US$28.8 million in 2023. This result includes the impact of a US$454.9 million non-cash goodwill impairment charges. Adjusted for this particular non-cash impact, operating income excluding goodwill impairment was US$49.3 million for the full year of 2024. Operating loss margin was 18.1% in 2024, compared to operating income margin of 1.3% in 2023. Non-GAAP operating income was US$136.1 million for the full year of 2024, compared to US$130.5 million in 2023. Non-GAAP operating income margin was 6.1% in 2024, compared to 5.8% in 2023. Net loss attributable to controlling interest of JOYY for the full year of 2024 was US$146.2 million, compared to net income of US$301.8 million in 2023. This result includes the impact of a US$454.9 million non-cash goodwill impairment charges. Adjusted for this particular non-cash impact, net income excluding goodwill impairment attributable to controlling interest of JOYY for the full year of 2024 was US$229.0 million. Net loss margin for the full year of 2024 was 6.5%, compared to net income margin of 13.3% in 2023. Non-GAAP net income attributable to controlling interest and common shareholders of JOYY for the full year of 2024 was US$298.5 million, compared to US$292.5 million in 2023. Non-GAAP net income margin for the full year of 2024 was 13.3%, compared to 12.9% in 2023. Diluted net loss per ADS for the full year of 2024 was US$2.55, compared to diluted net income per ADS of US$4.87 in 2023. Non-GAAP diluted net income per ADS was US$4.96 in 2024, compared to US$4.10 in 2023. Business Outlook For the first quarter of 2025, the Company expects net revenues to be between US$482 million and US$490 million. This forecast reflects the Company’s current and preliminary views on the market, operational conditions and business strategies, which are subject to changes, particularly as to the potential impact from increasing macroeconomic uncertainties. Share Repurchase Programs During the quarter ended December 31, 2024, the Company repurchased 1.90 million of its ADSs for a total of US$65.5 million on the open market. During the full year of 2024, the Company has repurchased 9.21 million of its ADSs for a total of US$309.2 million. Pursuant to the share repurchase program which was extended by the board of directors in August 2024, or the 2024 Program, the Company may repurchase up to US$400 million of its shares until the end of November 2025. As of December 31, 2024, the Company has utilized US$183.3 million under the 2024 Program. On March 19, 2025, the Company's board of directors approved a new share repurchase program, or the 2025 Program, under which the Company is authorized to repurchase up to US$300 million of its shares (including in the form of ADSs) until the end of 2027. The 2025 Program is effective immediately upon approval and replaces the 2024 Program. Additional Quarterly Dividend Policy On March 19, 2025, the board of directors also authorized a quarterly dividend program from 2025 to 2027, under which a total of approximately US$600 million in cash will be distributed on a quarterly basis over the three-year period. The exact amount of each quarterly cash dividend is subject to minor adjustments based on our total issued and outstanding shares as of the applicable record dates. Pursuant to the quarterly dividend program, the Company's board of directors has declared a dividend of US$0.93 per ADS, or US$0.0465 per common share, which is expected to be paid on April 30, 2025 to shareholders of record as of the close of business on April 17, 2025. The ex-dividend date will be April 17, 2025. Update on the Sale of YY Live Business and Ticker Symbol Change On February 25, 2025, the Company entered into agreements with Baidu, Inc. and closed the sale of its video-based entertainment live streaming business in mainland China (known as YY Live) to Baidu, Inc. for an aggregate purchase price of approximately US$2.1 billion in cash. The Company previously received approximately US$1.86 billion in February 2021. On February 25, 2025, the Company received additional cash consideration of approximately US$240 million. The Company will change its ticker symbol on the Nasdaq Stock Market from "YY" to "JOYY." Trading under the new ticker symbol is expected to begin on March 31, 2025. Conference Call Information The Company will hold a conference call at 9:00 PM U.S. Eastern Time on Wednesday, March 19, 2025 (9:00 AM Singapore/Hong Kong Time on Thursday, March 20, 2025). Details for the conference call are as follows: Event Title: JOYY Inc. Fourth Quarter and Full Year 2024 Earnings Conference Call Conference ID: #10046092 All participants may use the link provided below to complete the online registration process in advance of the conference call. Upon registration, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique PIN by email. PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10046092-8k1rgs.html A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.joyy.com. The replay will be accessible through March 27, 2025, by dialing the following numbers: United States:1-855-883-1031Singapore:800-101-3223Hong Kong:800-930-639Conference ID:#10046092 About JOYY Inc. JOYY is a leading global technology company with a mission to enrich lives through technology. JOYY currently operates several social products, including Bigo Live for live streaming, Likee for short-form videos, Hago for multiplayer social networking, an instant messaging product, and others. The Company has created a highly engaging and vibrant user community for users across the globe. JOYY’s ADSs have been listed on the NASDAQ since November 2012. Safe Harbor Statement This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this press release, as well as JOYY’s strategic and operational plans, contain forward-looking statements. JOYY may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JOYY’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JOYY’s goals and strategies; JOYY’s future business development, results of operations and financial condition; the expected growth of the global online communication social platform market; the expectation regarding the rate at which to gain active users, especially paying users; JOYY’s ability to monetize the user base; fluctuations in global economic and business conditions; and assumptions underlying or related to any of the foregoing. A more detailed and full discussion of those risks and other potential risks is included in JOYY’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JOYY does not undertake any obligation to update any forward- looking statement, except as required under applicable law. Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). JOYY uses non-GAAP operating income, non-GAAP operating income (loss) margin, non-GAAP net income (loss) attributable to controlling interest of JOYY, non-GAAP net income (loss) margin attributable to controlling interest of JOYY, non-GAAP net income (loss) attributable to common shareholders of JOYY, basic and diluted non-GAAP net income (loss) per ADS, operating income excluding goodwill impairment, and net income excluding goodwill impairment attributable to controlling interest of JOYY, all of which are non-GAAP financial measures adjusted from the most comparable U.S. GAAP results. Non-GAAP operating income (loss) is operating income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, and gain (loss) on deconsolidation and disposal of subsidiaries and business. Non-GAAP operating income (loss) margin is non-GAAP operating income as a percentage of net revenues. Non-GAAP net income (loss) is net income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on deconsolidation and disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments (referring to share of income (loss) from equity method investments resulting from non-recurring or non-cash items of the equity method investments), gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, and income tax effects of the above non-GAAP reconciling items. Non-GAAP net income (loss) attributable to controlling interest of JOYY is net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on deconsolidation and disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income attributable to non-controlling interest shareholders. Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of JOYY as a percentage of net revenues. Non-GAAP net income (loss) attributable to common shareholders of JOYY is net income (loss) attributable to common shareholders of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on deconsolidation and disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders, gain on repurchase of redeemable convertible preferred shares of a subsidiary and income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net income (loss) attributable to non-controlling interest shareholders. After the non-GAAP adjustment, non-GAAP net income (loss) attributable to controlling interests of JOYY is equal to the non-GAAP net income (loss) attributable to common shareholders of JOYY. Basic and diluted non-GAAP net income (loss) per ADS is non-GAAP net income (loss) attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of basic and diluted net income per ADS. Operating income (loss) excluding goodwill impairment is operating income (loss) excluding impairment of goodwill. Net income excluding goodwill impairment attributable to controlling interest of JOYY Inc is net income (loss) attributable to controlling interest of JOYY excluding impairment of goodwill, and adjustments for goodwill impairment for the net income (loss) attributable to non-controlling interest shareholders. The Company believes that separate analysis and exclusion of the non-cash impact of above reconciling items adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of (i) share-based compensation expenses and amortization of intangible assets from business acquisitions, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, which have been and will continue to be significant recurring expenses in its business, (ii) impairment of goodwill and investments, gain (loss) on deconsolidation and disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders and gain on repurchase of redeemable convertible preferred shares of a subsidiary which may not be recurring in its business, and (iii) income tax expenses and non-GAAP adjustments for net income (loss) attributable to non-controlling interest shareholders, which are affected by the above non-GAAP reconciling items. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income (loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release. Investor Relations Contact JOYY Inc.Jane Xie/Maggie YanEmail: joyy-ir@joyy.com ICR, Inc.Robin YangEmail: joyy@icrinc.com 1 On November 16, 2020, the Company entered into definitive agreements with affiliates of Baidu, Inc. (“Baidu”), subsequently amended on February 7, 2021. Pursuant to the agreements, Baidu would acquire JOYY’s video-based entertainment live streaming business in mainland China, which the Company refers to as YY Live, including the YY mobile app, the YY.com website and the YY PC app, among others, for an aggregate purchase price of approximately US$3.6 billion in cash, subject to certain adjustments. Subsequently, the sale was substantially completed as of February 8, 2021, with certain matters remaining to be completed, including necessary regulatory approvals from government authorities. As a result, YY Live’s historical results were presented in the Company’s consolidated financial statements as discontinued operations and the Company ceased consolidation of YY Live’s business since February 8, 2021. On February 25, 2025, the Company entered into agreements with Baidu and closed the sale of YY Live to Baidu for an aggregate purchase price of approximately US$2.1 billion in cash. The Company previously received approximately US$1.86 billion in February 2021. On February 25, 2025, the Company received additional cash consideration of approximately US$240 million. The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated. For the avoidance of confusion, the continuing operations for the three months ended December 31, 2023, September 30, 2024 and December 31, 2024 and for the twelve months ended December 31, 2023 and December 31, 2024, as presented in this press release, primarily consisted of BIGO segment (primarily including Bigo Live, Likee and imo) and the All other segment. 2 Net income (loss) attributable to controlling interest of JOYY is net income (loss) less net (loss) income attributable to the non-controlling interest shareholders and the mezzanine equity classified non-controlling interest shareholders. 3 Net income excluding goodwill impairment attributable to controlling interest of JOYY Inc is net income (loss) attributable to controlling interest of JOYY excluding impairment of goodwill, and adjustments for goodwill impairment for the net income (loss) attributable to non-controlling interest shareholders. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details. 4 Non-GAAP net income (loss) attributable to controlling interest of JOYY is a non-GAAP financial measure, which is defined as net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on deconsolidation and disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments which refer to those similar non-GAAP reconciling items of the Company, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds amortization to face value, income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for net (loss) income attributable to non-controlling interest shareholders. These adjustments amounted to US$400.2 million and US$18.4 million in the fourth quarter of 2024 and 2023, respectively. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details. 5 Refers to average mobile monthly active users of the social entertainment platforms operated by the Company, including Bigo Live, Likee, imo and Hago. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile active users for each month of such period, by (ii) the number of months in such period. 6 The number of paying users during a given period is calculated as the cumulative number of registered user accounts that have purchased virtual items or other products and services on Bigo Live, Likee or imo at least once during the relevant period. 7 Average revenue per user is calculated by dividing our total revenues from live streaming on Bigo Live, Likee and imo during a given period by the number of paying users for the Company’s live streaming services on these platforms for that period. 8 Operating income (loss) excluding goodwill impairment is operating income (loss) excluding impairment of goodwill. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details. 9 Non-GAAP operating income (loss) is a non-GAAP financial measure, which is defined as operating income (loss) excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain (loss) on deconsolidation and disposal of subsidiaries and business. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details. 10 Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP operating income (loss) as a percentage of net revenues. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details. 11 Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of JOYY as a percentage of net revenues. 12 ADS refers to American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income (loss) per ADS is net income (loss) attributable to common shareholders of JOYY divided by weighted average number of diluted ADS. 13 Non-GAAP diluted net income (loss) per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of diluted net income (loss) per ADS. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details. 14 Net cash is calculated as the sum of cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits, short-term investments ,long-term deposits and held-to-maturity investments, less convertible bonds and short-term and long-term loans. JOYY INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands, except share, ADS and per ADS data) December 31, December 31, 2023 2024 US$ US$ Assets Current assets Cash and cash equivalents 1,063,956 444,761 Restricted cash and cash equivalents 319,250 371,332 Short-term deposits 1,970,346 1,076,321 Restricted short-term deposits 57,243 5,412 Short-term investments 274,846 288,589 Accounts receivable, net 130,700 121,861 Amounts due from related parties 810 467 Prepayments and other current assets(1) 255,489 247,538 Total current assets 4,072,640 2,556,281 Non-current assets Long-term deposits and held-to-maturity investments 130,000 1,124,308 Deferred tax assets - 2,563 Investments 544,542 530,685 Property and equipment, net 390,681 484,928 Land use rights, net 316,070 303,115 Intangible assets, net 333,715 277,257 Right-of-use assets, net 30,173 20,457 Goodwill 2,649,281 2,194,324 Other non-current assets 16,763 26,054 Total non-current assets 4,411,225 4,963,691 Total assets 8,483,865 7,519,972 Liabilities, mezzanine equity and shareholders’ equity Current liabilities Short-term loans 52,119 10,317 Accounts payable 66,755 100,726 Deferred revenue 73,673 66,813 Advances from customers 6,047 4,031 Income taxes payable 86,100 78,304 Accrued liabilities and other current liabilities(1) 2,381,189 2,393,923 Amounts due to related parties 2,533 1,378 Lease liabilities due within one year 12,388 10,775 Convertible bonds 405,603 - Total current liabilities 3,086,407 2,666,267 Non-current liabilities Lease liabilities 18,422 9,948 Deferred revenue 12,932 12,635 Deferred tax liabilities 53,955 47,631 Total non-current liabilities 85,309 70,214 Total liabilities 3,171,716 2,736,481 JOYY INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)(All amounts in thousands, except share, ADS and per ADS data) December 31, December 31, 2023 2024 US$ US$ Mezzanine equity 22,133 23,733 Shareholders’ equity Class A common shares (US$0.00001 par value; 10,000,000,000 and 10,000,000,000 shares authorized, 1,317,840,464 shares issued and 890,843,639 shares outstanding as of December 31, 2023; 1,317,840,464 shares issued and 714,663,197 shares outstanding as of December 31, 2024, respectively) 9 7 Class B common shares (US$0.00001 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 326,509,555 and 326,509,555 shares issued and outstanding as of December 31, 2023 and December 31, 2024, respectively) 3 3 Treasury shares (US$0.00001 par value; 426,996,825 and 603,177,267 shares held as of December 31, 2023 and December 31, 2024, respectively) (913,939) (1,223,186)Additional paid-in capital 3,282,754 3,345,536 Statutory reserves 37,709 40,500 Retained earnings 2,947,160 2,796,745 Accumulated other comprehensive loss (197,010) (247,615) Total JOYY Inc.’s shareholders’ equity 5,156,686 4,711,990 Non-controlling interests 133,330 47,768 Total shareholders’ equity 5,290,016 4,759,758 Total liabilities, mezzanine equity and shareholders’ equity 8,483,865 7,519,972 (1) JOYY has ceased consolidation of YY Live business since February 8, 2021 and classified and presented all the related assets and liabilities related to YY Live business on a net basis within prepayments and other current assets. The consideration received by the Company remains within cash and cash equivalents, restricted cash and cash equivalents, and short-term deposits as of December 31, 2023 and 2024. Correspondingly, the advanced payments received has been recorded as accrued liabilities and other current liabilities. JOYY INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(All amounts in thousands, except share, ADS and per ADS data) Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2023 2024 2024 2023 2024 US$ US$ US$ US$ US$ Net revenues Live streaming(1) 486,196 439,482 422,418 1,979,371 1,788,021 Others 83,643 119,172 127,028 288,499 449,767 Total net revenues 569,839 558,654 549,446 2,267,870 2,237,788 Cost of revenues(2) (368,360) (350,536) (345,663) (1,454,842) (1,431,585) Gross profit 201,479 208,118 203,783 813,028 806,203 Operating expenses(2) Research and development expenses (72,580) (72,360) (67,485) (295,503) (278,740)Sales and marketing expenses (92,258) (83,524) (67,040) (369,577) (333,334)General and administrative expenses (34,587) (36,073) (44,015) (122,661) (152,517)Goodwill impairment - - (454,935) - (454,935) Total operating expenses (199,425) (191,957) (633,475) (787,741) (1,219,526) (Loss) gain on deconsolidation and disposal of subsidiaries - - - (6,177) 1,643 Other income 2,742 255 1,839 9,705 6,055 Operating income (loss) 4,796 16,416 (427,853) 28,815 (405,625) Interest expenses (2,115) (535) (312) (10,420) (4,847)Interest income and investment income 47,145 41,067 38,860 185,212 175,556 Foreign currency exchange (losses) gains, net (8,158) (10,742) 9,613 (2,906) 764 Gain on disposal and deemed disposal of investments - - - 74,851 - Gain (loss) on fair value change of investments 6,263 9,281 (3,011) 12,425 6,636 Income (loss) before income tax expenses 47,931 55,487 (382,703) 287,977 (227,516) Income tax expenses (2,315) (6,279) (41) (18,856) (13,485) Income (loss) before share of (loss) income in equity method investments, net of income taxes 45,616 49,208 (382,744) 269,121 (241,001) Share of (loss) income in equity method investments, net of income taxes (5,527) 6,746 (3,793) 3,297 (1,637) Net income (loss) 40,089 55,954 (386,537) 272,418 (242,638) Net loss attributable to the non-controlling interest shareholders and the mezzanine equity classified non-controlling interest shareholders 5,746 4,603 82,392 29,398 96,402 Net income (loss) attributable to controlling interest of JOYY Inc. 45,835 60,557 (304,145) 301,816 (146,236) Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value (350) (347) (347) (5,048) (1,388)Cumulative dividend on subsidiary’s Series A Preferred Shares - - - (2,000) - Gain on repurchase of redeemable convertible preferred shares of a subsidiary - - - 52,583 - Net income (loss) attributable to common shareholders of JOYY Inc. 45,485 60,210 (304,492) 347,351 (147,624) JOYY INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)(All amounts in thousands, except share, ADS and per ADS data) Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2023 2024 2024 2023 2024 US$ US$ US$ US$ US$ Net income (loss) per ADS ——Basic 0.74 1.06 (5.67) 5.31 (2.55)——Diluted 0.70 1.05 (5.67) 4.87 (2.55) Weighted average number of ADS used in calculating net income per ADS ——Basic 61,876,261 56,573,411 53,737,863 65,434,782 57,892,728 ——Diluted 67,384,074 57,220,581 53,737,863 73,148,827 57,892,728 (1) Revenues by geographical areas were as follows: Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2023 2024 2024 2023 2024 US$ US$ US$ US$ US$ Developed countries and regions 266,353 306,633 302,911 968,225 1,206,679 Middle East 103,020 77,152 77,708 441,277 317,848 Mainland China 68,886 57,952 53,221 347,825 233,578 Southeast Asia and others 131,580 116,917 115,606 510,543 479,683 Note: Developed countries and region mainly included the United States of America, Singapore, Japan, South Korea and Great Britain. Middle East mainly included Saudi Arabia and other countries located in the region. Southeast Asia and others mainly included Indonesia, Vietnam and rest of the world. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2023 2024 2024 2023 2024 US$ US$ US$ US$ US$ Cost of revenues 821 (16) 295 3,575 1,720 Research and development expenses 4,020 2,960 2,774 19,415 12,408 Sales and marketing expenses 133 193 183 797 615 General and administrative expenses 2,271 1,778 2,554 8,192 8,457 JOYY INC.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except share, ADS and per ADS data) Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2023 2024 2024 2023 2024 US$ US$ US$ US$ US$ Operating income (loss) 4,796 16,416 (427,853) 28,815 (405,625)Share-based compensation expenses 7,245 4,915 5,806 31,979 23,200 Amortization of intangible assets from business acquisitions 15,890 13,540 13,540 63,560 55,802 Impairment of goodwill and investments - - 454,935 - 464,321 Loss (gain) on deconsolidation and disposal of subsidiaries - - - 6,177 (1,643) Non-GAAP operating income 27,931 34,871 46,428 130,531 136,055 Net income (loss) 40,089 55,954 (386,537) 272,418 (242,638)Share-based compensation expenses 7,245 4,915 5,806 31,979 23,200 Amortization of intangible assets from business acquisitions 15,890 13,540 13,540 63,560 55,802 Impairment of goodwill and investments - - 454,935 - 464,321 Loss (gain) on deconsolidation and disposal of subsidiaries - - - 6,177 (1,643)Gain on disposal and deemed disposal of investments - - - (74,851) - (Gain) loss on fair value change of investments (6,263) (9,281) 3,011 (12,425) (6,636)Interest expenses related to the convertible bonds’ amortization to face value 239 - - 1,583 435 Income tax effects on non-GAAP adjustments (2,095) (1,574) (427) (11,604) (6,106)Reconciling items on the share of equity method investments 4,278 (6,167) 3,802 (9,091) (1,631) Non-GAAP net income 59,383 57,387 94,130 267,746 285,104 Net income (loss) attributable to common shareholders of JOYY Inc. 45,485 60,210 (304,492) 347,351 (147,624)Share-based compensation expenses 7,245 4,915 5,806 31,979 23,200 Amortization of intangible assets from business acquisitions 15,890 13,540 13,540 63,560 55,802 Impairment of goodwill and investments - - 454,935 - 464,321 Loss (gain) on deconsolidation and disposal of subsidiaries - - - 6,177 (1,643)Gain on disposal and deemed disposal of investments - - - (74,851) - (Gain) loss on fair value change of investments (6,263) (9,281) 3,011 (12,425) (6,636)Interest expenses related to the convertible bonds’ amortization to face value 239 - - 1,583 435 Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders 350 347 347 7,048 1,388 Gain on repurchase of redeemable convertible preferred shares of a subsidiary - - - (52,583) - Income tax effects on non-GAAP adjustments (2,095) (1,574) (427) (11,604) (6,106)Reconciling items on the share of equity method investments 4,278 (6,167) 3,802 (9,091) (1,631)Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders (929) (819) (80,434) (4,622) (83,008) Non-GAAP net income attributable to controlling interest and common shareholders of JOYY Inc. 64,200 61,171 96,088 292,522 298,498 Non-GAAP net income per ADS ——Basic 1.04 1.08 1.79 4.47 5.16 ——Diluted 0.97 1.07 1.77 4.10 4.96 Weighted average number of ADS used in calculating Non-GAAP net income per ADS ——Basic 61,876,261 56,573,411 53,737,863 65,434,782 57,892,728 ——Diluted 67,384,074 57,220,581 54,263,057 73,148,827 60,654,393 Operating income (loss) 4,796 16,416 (427,853) 28,815 (405,625)Impairment of goodwill - - 454,935 - 454,935 Operating income excluding goodwill impairment 4,796 16,416 27,082 28,815 49,310 Net income (loss) attributable to controlling interest of JOYY Inc. 45,835 60,557 (304,145) 301,816 (146,236)Impairment of goodwill - - 454,935 - 454,935 Adjustments attributable to the non-controlling interest shareholders - - (79,715) - (79,715) Net income excluding goodwill impairment attributable to controlling interest of JOYY Inc. 45,835 60,557 71,075 301,816 228,984 JOYY INC.UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data) Three Months Ended December 31, 2024 BIGO All other Elimination(1) Total US$ US$ US$ US$Net revenues Live streaming 400,281 22,137 - 422,418 Others 79,693 47,738 (403) 127,028 Total net revenues 479,974 69,875 (403) 549,446 Cost of revenues(2) (304,926) (40,822) 85 (345,663) Gross profit 175,048 29,053 (318) 203,783 Operating expenses(2) Research and development expenses (43,641) (24,072) 228 (67,485)Sales and marketing expenses (44,990) (22,076) 26 (67,040)General and administrative expenses (17,025) (27,054) 64 (44,015)Goodwill impairment - (454,935) - (454,935) Total operating expenses (105,656) (528,137) 318 (633,475) Other income 398 1,441 - 1,839 Operating income (loss) 69,790 (497,643) - (427,853) Interest expenses (1,153) (41) 882 (312)Interest income and investment income 11,905 27,837 (882) 38,860 Foreign currency exchange gains (losses), net 10,359 (746) - 9,613 (Loss) gain on fair value change of investments (4,156) 1,145 - (3,011) Income (loss) before income tax (expenses) benefits 86,745 (469,448) - (382,703) Income tax (expenses) benefits (2,926) 2,885 - (41) Income (loss) before share of loss in equity method investments, net of income taxes 83,819 (466,563) - (382,744) Share of loss in equity method investments, net of income taxes - (3,793) - (3,793) Net income (loss) 83,819 (470,356) - (386,537) (1) The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments, and interest income and interest expenses generated from the loan between BIGO and All other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Three Months Ended December 31, 2024 BIGO All other Total US$ US$ US$ Cost of revenues 140 155 295 Research and development expenses 1,639 1,135 2,774 Sales and marketing expenses 39 144 183 General and administrative expenses 463 2,091 2,554 JOYY INC.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data) Three Months Ended December 31, 2024 BIGO All other Total US$ US$ US$ Operating income (loss) 69,790 (497,643) (427,853)Share-based compensation expenses 2,281 3,525 5,806 Amortization of intangible assets from business acquisitions 8,950 4,590 13,540 Goodwill impairment - 454,935 454,935 Non-GAAP operating income (loss) 81,021 (34,593) 46,428 Net income (loss) 83,819 (470,356) (386,537)Share-based compensation expenses 2,281 3,525 5,806 Amortization of intangible assets from business acquisitions 8,950 4,590 13,540 Goodwill impairment - 454,935 454,935 Loss (gain) on fair value change of investments 4,156 (1,145) 3,011 Income tax effects on non-GAAP adjustments (778) 351 (427)Reconciling items on the share of equity method investments - 3,802 3,802 Non-GAAP net income (loss) 98,428 (4,298) 94,130 JOYY INC. UNAUDITED SEGMENT REPORT (All amounts in thousands, except share, ADS and per ADS data) Three Months Ended September 30, 2024 BIGO All other Elimination(1) Total US$ US$ US$ US$Net revenues Live streaming 417,762 21,720 - 439,482 Others 78,247 41,317 (392) 119,172 Total net revenues 496,009 63,037 (392) 558,654 Cost of revenues(2) (312,561) (38,050) 75 (350,536) Gross profit 183,448 24,987 (317) 208,118 Operating expenses(2) Research and development expenses (44,884) (27,702) 226 (72,360)Sales and marketing expenses (61,582) (21,968) 26 (83,524)General and administrative expenses (14,249) (21,889) 65 (36,073) Total operating expenses (120,715) (71,559) 317 (191,957) Other income 6 249 - 255 Operating income (loss) 62,739 (46,323) - 16,416 Interest expenses (1,335) (117) 917 (535)Interest income and investment income 13,107 28,877 (917) 41,067 Foreign currency exchange losses, net (10,290) (452) - (10,742)Gain on fair value change of investments 5,466 3,815 - 9,281 Income (loss) before income tax (expenses) benefits 69,687 (14,200) - 55,487 Income tax (expenses) benefits (6,408) 129 - (6,279) Income (loss) before share of income in equity method investments, net of income taxes 63,279 (14,071) - 49,208 Share of income in equity method investments, net of income taxes - 6,746 - 6,746 Net income (loss) 63,279 (7,325) - 55,954 (1) The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments, and interest income and interest expenses generated from the loan between BIGO and All other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Three Months Ended September 30, 2024 BIGO All other Total US$ US$ US$ Cost of revenues (261) 245 (16)Research and development expenses 1,571 1,389 2,960 Sales and marketing expenses 39 154 193 General and administrative expenses (186) 1,964 1,778 JOYY INC.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data) Three Months Ended September 30, 2024 BIGO All other Total US$ US$ US$ Operating income (loss) 62,739 (46,323) 16,416 Share-based compensation expenses 1,163 3,752 4,915 Amortization of intangible assets from business acquisitions 8,950 4,590 13,540 Non-GAAP operating income (loss) 72,852 (37,981) 34,871 Net income (loss) 63,279 (7,325) 55,954 Share-based compensation expenses 1,163 3,752 4,915 Amortization of intangible assets from business acquisitions 8,950 4,590 13,540 Gain on fair value change of investments (5,466) (3,815) (9,281)Income tax effects on non-GAAP adjustments (778) (796) (1,574)Reconciling items on the share of equity method investments - (6,167) (6,167) Non-GAAP net income (loss) 67,148 (9,761) 57,387 JOYY INC.UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data) Three Months Ended December 31, 2023 BIGO All other Elimination(1) Total US$ US$ US$ US$Net revenues Live streaming 459,152 27,044 - 486,196 Others 32,109 51,992 (458) 83,643 Total net revenues 491,261 79,036 (458) 569,839 Cost of revenues(2) (308,977) (59,481) 98 (368,360) Gross profit 182,284 19,555 (360) 201,479 Operating expenses(2) Research and development expenses (41,011) (31,839) 270 (72,580)Sales and marketing expenses (74,944) (17,343) 29 (92,258)General and administrative expenses (15,321) (19,327) 61 (34,587) Total operating expenses (131,276) (68,509) 360 (199,425) Other income 2,003 739 - 2,742 Operating income (loss) 53,011 (48,215) - 4,796 Interest expenses (1,803) (1,652) 1,340 (2,115)Interest income and investment income 13,262 35,223 (1,340) 47,145 Foreign currency exchange (losses) gains, net (8,176) 18 - (8,158)Gain on fair value change of investments 1,060 5,203 - 6,263 Income (loss) before income tax (expenses) benefits 57,354 (9,423) - 47,931 Income tax (expenses) benefits (5,334) 3,019 - (2,315) Income (loss) before share of loss in equity method investments, net of income taxes 52,020 (6,404) - 45,616 Share of loss in equity method investments, net of income taxes - (5,527) - (5,527) Net income (loss) 52,020 (11,931) - 40,089 (1) The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments, and interest income and interest expenses generated from the loan between BIGO and All other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Three Months Ended December 31, 2023 BIGO All other Total US$ US$ US$ Cost of revenues 492 329 821 Research and development expenses 1,856 2,164 4,020 Sales and marketing expenses 38 95 133 General and administrative expenses 351 1,920 2,271 JOYY INC.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data) Three Months Ended December 31, 2023 BIGO All other Total US$ US$ US$ Operating income (loss) 53,011 (48,215) 4,796 Share-based compensation expenses 2,737 4,508 7,245 Amortization of intangible assets from business acquisitions 11,225 4,665 15,890 Non-GAAP operating income (loss) 66,973 (39,042) 27,931 Net income (loss) 52,020 (11,931) 40,089 Share-based compensation expenses 2,737 4,508 7,245 Amortization of intangible assets from business acquisitions 11,225 4,665 15,890 Gain on fair value change of investments (1,060) (5,203) (6,263)Interest expenses related to the convertible bonds’ amortization to face value - 239 239 Income tax effects on non-GAAP adjustments (1,415) (680) (2,095)Reconciling items on the share of equity method investments - 4,278 4,278 Non-GAAP net income (loss) 63,507 (4,124) 59,383

JOYY Reports Fourth Quarter and Full Year 2024 Unaudited Financial Results

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