YY Inc.(YY) 首席执行官 David Xueling Li 在 2019年 第二季度业绩 - 收益电话会议记录

YY Inc. (NASDAQ:YY) Q2 2019 Earnings Conference Call August 13, 2019 9:00 PM ET

YY Inc.(纳斯达克股票代码:[YY])2019年第二季度收益电话会议2019年8月13日美国东部时间晚上9点


Matthew Zhao - Investor Relations, Director
David Xueling Li - Chairman and Chief Executive Officer
Bing Jin - Chief Financial Officer
Ting Li - Chief Operating Officer

  • Matthew Zhao - 投资者关系,董事
  • David Xueling Li - 董事长兼首席执行官
  • Bing Jin - 首席财务官
  • Ting Li - 首席运营官


Thomas Chong - Jefferies
Daniel Chen - JPMorgan
Natalie Wu - CICC
Jialong Shi - Nomura

  • Thomas Chong - Jefferies
  • Daniel Chen - 摩根大通
  • 娜塔莉吴 - 中金公司
  • Jialong Shi - 野村


Ladies and gentlemen, thank you for standing by and welcome to YY Inc. Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management’s prepared remarks, we will have a question-and-answer session. Please note, this event is being recorded.
I’d now like to hand the conference over to your speaker and host today Mr. Matthew Zhao, IR Director of YY. Thank you, sir. Please go ahead.

女士们,先生们,感谢您的支持,欢迎来到YY Inc. 2019年第二季度收益电话会议。 此时,所有参与者都处于只听模式。 在管理层准备好的评论之后,我们将有一个问答环节。 请注意,此活动正在录制中。

我现在想把会议交给你的发言人,今天主持YY的IR主任Matthew Zhao先生。 谢谢你,先生。 请继续。


Thank you, operator. Good morning, and good evening, everyone. Welcome to YY's second quarter 2019 earnings conference call. Joining us today are Mr. David Xueling Li, Chairman and CEO of YY; Mr. Bing Jin, CFO of YY; and Ms. Ting Li, COO of YY.
For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session.
The second quarter of 2019 financial results and webcast of this conference call are available at ir.yy.com. A replay of this call will also be available on our website in a few hours. Before we continue, I refer you to our Safe Harbor statement in our earnings press release, which applies to this call as we will make forward-looking statements. Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in renminbi.
I will now turn the call over to our Chairman and CEO, Mr. David Xueling Li. Please go ahead, sir.

谢谢运营商。 大家早上好,大家晚上好。 欢迎参加YY 2019年第二季度财报电话会议。 今天加入我们的是YY董事长兼首席执行官David Xueling Li先生; YY的首席财务官Bing Jin先生; 和YY的首席运营官Ting Li女士。


2019年第二季度的财务业绩和此次电话会议的网络直播可在ir.yy.com上获取。 我们的网站也会在几小时内重播此次电话会议。 在我们继续之前,我会在您的盈利新闻稿中向您推荐我们的安全港声明,该声明适用于此次电话会议,因为我们将做出前瞻性陈述。 最后请注意,除非另有说明,否则本次电话会议中提到的所有数字均以人民币计算。

我现在将把这个电话转给我们的董事长兼首席执行官David Xueling Li先生。 请继续,先生。

David Xueling Li

[Foreign Language]
Thank you, Matthew. Hello, everyone. Welcome to YY's earnings conference call for the second quarter of 2019.
[Foreign Language]
Following our successful acquisition of BIGO in March, the second quarter was the first time we had a full quarter consolidation of BIGO's financials. I would like to take this opportunity to share with you the latest business updates as well as the strategy and development focus for the YY group.
As you all know, after the acquisition of BIGO, YY has evolved into a world-leading social media platform, offering a comprehensive suite of video-centric products and services, including instant messaging, cellphone video, live streaming and et cetera.
[Foreign Language]
During the second quarter, we have achieved notable progress on three fronts, first, introduce short-form video content into our instant messaging product, IMO, and further enhance its user stickiness, second, drive rapid growth of overseas short-form video users through Likee, and third, further strengthen YY Live and BIGO Live operations and solidify our global leadership in the entertainment live streaming market.
Starting from this quarter, we have also revamped our disclosure of operating metrics. We believe that this heightened disclosure transparency will help investors to better understand and follow YY group's business development going forward.
[Foreign Language]
In the second quarter, our global average mobile MAUs reached 433.5 million. Our global short-form video mobile MAU increased by 431.2% year-over-year to 90.3 million and global live streaming mobile MAUs increased by 39.2% year-over-year to 140.9 million.
More importantly, IMO, our instant messaging product, achieved a massive user base of almost 212 million MAUs in the quarter. The increasing diversity of our user base offers great potential for future monetization and the development of synergies across our business units.
As a result, in the second quarter, our total revenues increased by 66.8% year-over-year to RMB6.3 billion, exceeding the high end of our previous guidance range. Revenue from our live streaming business grew by 66.4% year-over-year to RMB5.92 billion, of which RMB906 million came from overseas market.
[Foreign Language]
Next I will introduce the latest update for our key areas of business: IMO, short-form video and live streaming. IMO's goal is to become the instant messaging platform catered for young generation. As we embed a variety of content offerings into IMO, we continue to enhance IMO's product stickiness.
Meanwhile, the content offerings can also increase user engagement, which in turn, drives the scale and quantity and quality of our UGC production. In the second quarter, we started to gradually embed short-form videos from Likee into IMO.
As a pilot program, for example, we made Likee short-form video content services available to more than 17.5 million MAUs in over 40 countries and regions across South Asia, Central Asia and Europe on the IMO platform. We were very pleased to see that over 50% of IMO's users were converted into short-form video users.


谢谢,马修。大家好。欢迎参加YY 2019年第二季度的收益电话会议。





在第二季度,我们在三个方面取得了显着进展,首先,将短片视频内容引入我们的即时通讯产品IMO,并进一步提升其用户粘性,其次,通过以下方式推动海外短片视频用户的快速增长另外,第三,进一步加强YY Live和BIGO Live运营,巩固我们在娱乐直播流媒体市场的全球领导地位。







接下来,我将介绍我们关键业务领域的最新更新:IMO,短片视频和直播。 IMO的目标是成为迎合年轻一代的即时通讯平台。当我们在IMO中嵌入各种内容产品时,我们会继续增强IMO的产品粘性。



[Foreign Language]
Going forward, in addition to the short form videos already embedded into IMO, we also plan to introduce moments, group chats, official accounts, mini games, live streaming and other categories of content and services within IMO to bolster social interactions among users.
Furthermore, on the monetization front, IMO's advertising business has already shown a very encouraging trend. And the content feeds within IMO will provide much bigger monetization potential for the advertising in the future.
[Foreign Language]
In the second quarter, Likee continued strong momentum for its users across the world. In Indonesia, for example, Likee's MAUs grew by 114% sequentially in June 2019, while constantly ranked at the top of Google Play's free apps list in Indonesia during the same month.
Likee has continuously expanded the content offerings in the form of high-quality user-generated short-form videos. In May 2019, Likee introduced a WeMedia support program to attract more content creators to cultivate an increasingly diverse, engaging and entertaining content library.
In the second quarter, Likee's daily active video uploaders remained above 10% of its total DAUs, outperforming the majority of other short-form video apps and platforms in the world.
[Foreign Language]
Moreover, in June 2019, Likee co-organized an awards ceremony for key inferences in digital world with local music radio stations, celebrity agencies and digital medias in India.
A large number of local artists, idols as well as key opinion leaders in fashion, beauty, travel, food and body building participated in the event. This event increased Likee's influence among young generation and contributed to the rapid expansion of Likee's user base in India.
[Foreign Language]
In addition to supercharging our growth engine through instant messaging and short-form videos, we continued to fortify our global leadership in live streaming through BIGO Live. To ensure operation efficiency and culture sensitivity in different markets and regions, we focused on developing BIGO Live's localization capabilities.
We also continued to enhance our footprint in developed world, and BIGO Live's revenue generated in developed markets during the quarter continued to increase as a result.
Revenues from North American and European countries, in particular, accounted for 16% of BIGO Live's total revenues compared to 14% in the previous quarter. For emerging markets, the light version of BIGO Live app lowered the entry barrier for users and drove BIGO Live's user growth in these markets simultaneously.
[Foreign Language]
Meanwhile, HAGO, our casual game-oriented social media platform, rapidly grew its user base and revenues during the second quarter of 2019, forming a closed loop monetization ecosystem as we continued to add new game titles and diversifying game prize on the platform.
We also embedded additional social features into HAGO, such as live streaming, chat rooms and karaoke, which further increased the platform's user stickiness. As a result, the average user time spent on a daily basis for HAGO exceeded 60 minutes in the second quarter of 2019.



此外,在货币化方面,IMO的广告业务已经呈现出非常令人鼓舞的趋势。 IMO内的内容提​​供将为未来的广告提供更大的货币化潜力。


在第二季度,Likee继续为全球用户提供强劲动力。例如,在印度尼西亚,Likee的MAU在2019年6月顺序增长了114%,同时在同一个月中一直在印度尼西亚的Google Play免费应用列表中排名第一。







除了通过即时消息和短片视频为增长引擎增压外,我们还通过BIGO Live巩固了我们在实时流媒体领域的全球领导地位。为了确保不同市场和地区的运营效率和文化敏感性,我们专注于开发BIGO Live的本地化功能。

我们还继续加强在发达国家的足迹,并且BIGO Live在本季度在发达市场产生的收入继续增加。

特别是北美和欧洲国家的收入占BIGO Live总收入的16%,而上一季度为14%。对于新兴市场,轻型版BIGO Live应用程序降低了用户的进入门槛,同时推动了BIGO Live在这些市场的用户增长。




[Foreign Language]
Returning to the domestic market, we continued to optimize YY Live's content creation model during the quarter. In order to provide more innovative live streaming content, we focused on facilitating collaborations between different hosts and third-party content creators to encourage the joint production of creative content on our platform.
For example, we partnered with Yue Hua Entertainment to launch an exclusive online broadcast of Yue Hua family's concert in June. Since the concert featured performances and interactions from all the top celebrities under Yue Hua's management, we were able to leverage the exclusivity of our broadcast to attract a substantial number of fans and encourage them to interact and support their favorite celebrities through chatting on our platform.
Following this success, we will continue to explore the possibility of partnering with more artists and celebrities to attract and maintain different cohorts of celebrity fans through live streaming content on our platform.
[Foreign Language]
Moreover, as many of you have noticed, YY's stock price has currently reached its lowest level during the past 52 weeks. However, as management, we remain fully confident about the company's future growth prospects.
With the approval from the Board, today, we announced a share repurchase program, under which the company may repurchase up to US$300 million of shares over the next 12 months.
[Foreign Language]
In summary, our global video-based social media platform has taken good shape during the second quarter of 2019 and is zooming along its next phase of growth trajectory. We are only at the very initial stage of reaping benefits from our globalization strategy, and we are very excited about the unlimited potentials.
Today, overseas users account for 78% of our global user base, but contributed less than 20% of our total revenue, leaving substantial headroom for financial growth.
The capital infusion from our recent convertible bond offerings has supercharged our engine of innovation, creativity and growth. As we continue to enhance our AI technology capabilities and invent new monetization venues, we are very confident that we will achieve our vision to connect people and enrich their lives through video.


回到国内市场,我们在本季度继续优化YY Live的内容创作模式。为了提供更多创新的直播内容,我们专注于促进不同主持人和第三方内容创作者之间的协作,以鼓励在我们的平台上联合制作创意内容。











That concludes David's prepared remarks. Now as YY’s CFO, I will talk about the financial results.
We continued to deliver solid financial and operating metrics during the second quarter of 2019. Our total net revenue for the second quarter increased by 66.8% year-over-year to RMB6.3 billion. Specifically, our live streaming revenues for the second quarter increased by 66.4% year-over-year to RMB5.92 billion, accounting for 94.1% of our total net revenues for the quarter. In the second quarter, mobile contributed 71.7% of our live streaming revenues.
Cost of revenues for the second quarter increased by 80.4% year-over-year to RMB$4.17 billion. Revenue sharing fees and content costs paid to performers, guilds and content providers increased to RMB3.15 billion in the second quarter, which was in line with the increase in live streaming revenues of the company.
In addition, bandwidth cost for the second quarter increased to RMB423.8 million, primarily reflecting continued overseas user base expansion, mainly due to the impact of the consolidation of BIGO.
Gross profit for the second quarter increased by 45.4% year-over-year to RMB2.12 billion. Gross margin was 33.7% compared to 38.7% in the prior year period, primarily due to the impact caused by the relatively low gross margin of Huya and BIGO segments as their contribution to net revenues increased substantially year-over-year. The decrease in gross margin was also attributable to the increase in revenue sharing fees and content costs.
Operating expenses for the second quarter were RMB2.09 billion compared to RMB779.6 million in the prior year period, primarily due to the increase in sales and marketing expenses of RMB853.4 million and research and development expenses of RMB359.5 million.
Sales and marketing expenses for the second quarter were RMB1.1 billion or 17.5% of total revenue compared to RMB246.1 million or 6.5% of total revenue in the prior year period. The increase in sales and marketing expenses were primarily attributable to the company's increased efforts in sales and marketing activities in overseas markets and the impact of depreciation and amortization related to the consolidation of BIGO.
Our R&D expenses for the second quarter were RMB655.4 million or 10.4% of total revenues compared to RMB295.9 million or 7.8% of total revenues in the prior period, mainly due to the increase in staff-related expenses related to R&D.
G&A expenses were RMB336 million or 5.3% of total revenues in the second quarter compared to RMB237.5 million or 6.3% of total revenues in the prior year period.
Our GAAP operating income for the second quarter was RMB71.9 million compared to RMB713.8 million in the prior year period. Operating margin for the second quarter was 1.1% compared to 18.9% in the prior year period, primarily due to the decrease in gross margin, the consolidation of BIGO and other overseas expansion initiatives.
Our non-GAAP operating income for the second quarter, which excludes share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, as well as gain on deconsolidation and disposal of subsidiaries, was RMB524.9 million compared to RMB933.1 million in the prior year period. Our non-GAAP operating margin for the second quarter was 8.3% compared to 24.7% in the prior year period.












GAAP net income attributable to controlling interest of YY for the second quarter of 2019 was RMB42.1 million compared to a net loss attributable to controlling interest of YY of RMB99.9 million in the prior year period. Non-GAAP net income attributable to controlling interest of YY was RMB424.2 million compared to RMB910.2 million in the prior year period.
Non-GAAP net margin in the second quarter of 2019 was 6.7% compared to 24.1% in the prior year period. Diluted net income per ADS in the second quarter of 2019 was RMB0.27 compared to a diluted net loss per ADS of RMB2.14 in the prior year period. Non-GAAP diluted net income per ADS was RMB5.14 compared to RMB13.75 in the prior period.
Looking forward to the third quarter of 2019, we expect our net revenues to be between RMB6.57 billion and RMB6.77 billion, representing a year-over-year increase of 60.2% to 65.1%. This forecast reflects our current and preliminary views on the market and operational conditions, which are subject to change.
That concludes our prepared remarks. Operator, we would now like to open up the call to questions.


2019年第二季度非美国通用会计准则净利润率为6.7%,而去年同期为24.1%。 2019年第二季度每股美国存托凭证摊薄净收益为人民币0.27元,而去年同期每股美国存托凭证摊薄净亏损为人民币2.14元。非美国通用会计准则每股ADS摊薄净收益为人民币5.14元,而上期则为人民币13.75元。




[Operator Instructions] Your first question comes from the line of Thomas Chong from Jefferies. Please ask your question.

[操作员说明]您的第一个问题来自Jefferies的Thomas Chong。 请问你的问题。

Thomas Chong

[Foreign Language] My question is about our competition in overseas market. As we see, our users are ramping up very quickly in overseas across different applications in BIGO Live and also IMO, how should we think about the competitive landscape and our spending in sales and marketing expenses in the second half and next year? Thank you.

[外语]我的问题是关于我们在海外市场的竞争。 正如我们所看到的,我们的用户在海外很快就在BIGO Live和IMO的不同应用中迅速增加,我们应该如何考虑竞争格局以及我们在下半年和明年的销售和营销支出? 谢谢。

David Xueling Li

[Foreign Language] This is David. Let me answer your first part of your question. So firstly, in terms of the competition for the instant messaging platforms globally, so when we monitor the trend, there always be two to three of the different platforms to stay -- to exist in the market simultaneously that makes the market bigger. They will not be -- have the similar situation that what happened in China, which is a winner-take-all situation.
So we are still very confident in terms of the futures of IMO's development. Especially in the future, firstly, we'll continue to bring in more technical forces to continue help BIGO to develop the different kind of functionalities.
And meanwhile, we also will, as I mentioned in the prepared remarks, we also will bring in the different - brought in the different kind of content as well as the services into IMO to continually improve the user stickiness as well as the user scale.
So - and meanwhile, if you look at our - the DNA of the company, we -- in the past decade, we actually has been accumulating a lot of experience in terms of develop instant messaging-related functionalities as well the services. So we -- from that perspective, we're also very confident in terms of future IMO's development.
[Foreign Language]
And from another perspective, if you look at the instant messaging services, it really looks like the visual ID card for each individual users from the Internet separately. So -- but when we look at the overseas peers' operations, we think that they didn't put that much of the effort in terms of the content operations.
But we -- but in terms of the content operation, we were really good about that. For example, as we mentioned in the prepared remarks, IMO's currently, the user's conversion rate from the instant messaging to the short-form video services has reached to over 50%.
So in the future, since we continue producing more different kind of content there, definitely, we can continue to improve the ID card functionalities as well as the people's participation into the instant messaging platform.
[Foreign Language]
We are very optimistic in terms of the synergies between Likee and IMO's platform in the future. For Likee's platform, the producers -- the short-form video producers' participation rate is much higher than other peers. And for IMO, since they have the video communication users, so they also have more motivation to consume more short-form video content in IMO's platform.
So the two part of the platform will continue interactive and bring more synergies in the future as Likee's producer short-form video content and IMO's users will consume as well as the produce short-form video content at the same time. So in the future, as I mentioned, we definitely will see more synergies happen between the two platforms.
[Foreign Language]
In the future, we also will bring in more different functionalities and so it's a change for IMO, such as live streaming, mini games, as well as the media account, et cetera. So through those kind of additional services, definitely, we will continue to see the user time spent as well as the user stickiness for IMO will continue to grow.

[外语]这是大卫。让我回答你问题的第一部分。首先,就全球即时通讯平台的竞争而言,当我们监控趋势时,总会有两到三种不同的平台需要保持 - 同时存在于市场中,使市场更大。他们不会 - 与中国发生的情况类似,这是赢家通吃的情况。


同时,正如我在准备好的评论中提到的那样,我们也将带来不同的东西 - 将不同类型的内容和服务引入IMO,以不断提高用户粘性和用户规模。

所以 - 同时,如果你看看我们 - 公司的DNA,我们 - 在过去十年中,我们实际上已经在开发即时消息相关功能以及服务方面积累了大量经验。所以我们 - 从这个角度来看,我们对未来IMO的发展也非常有信心。


从另一个角度来看,如果你看一下即时通讯服务,它看起来就像是互联网上每个用户的可视ID卡。所以 - 但是当我们看看海外同行的运营时,我们认为他们没有在内容运营方面付出太多努力。

但是我们 - 但就内容操作而言,我们真的很擅长。例如,正如我们在准备的评论中提到的那样,IMO目前用户从即时通讯到短片视频服务的转换率已达到50%以上。



我们对Likee和IMO未来平台之间的协同效应非常乐观。对于Likee的平台,制片人 - 短片视频制作人的参与率远远高于其他同行。而对于IMO来说,由于他们拥有视频通信用户,因此他们也有更多动力在IMO平台上消费更多短片形式的视频内容。




[Foreign Language]
We truly believe the business model, which is we bring in more synergies between the content production platform as well as the instant messaging platform, it's a very unique competitive edge for our company. So are still very confident in terms of the future IMO development.


我们真正相信商业模式,即我们在内容制作平台和即时通讯平台之间带来更多协同效应,这对我们公司来说是一个非常独特的竞争优势。 因此,对未来IMO的发展仍然非常有信心。


Okay. Let me address the second question in terms of the sales and marketing strategy. First of all, if you look at the second quarter margin impact, that is mainly due to the consolidated BIGO. And you have seen from the operating margins of BIGO business, the Likee, the shop-form video app has achieved rapid growth. And also, after we acquired IMO, as David has mentioned, we have gradually embedded more content in IMO and promote IMO product on a global basis. So the impact of margin came from the consolidation. That's the first point.
Secondly, for sales and marketing, we will be more prudent going forward after the acquisition of BIGO. We will track the ROI for every single product in different markets. And the second point is that if we look at the cost basis, the user acquisition and both user retention costs, those tend to be lower than China in many of those emerging markets. So I think the ROI tend to be better from that perspective.
Thirdly, going forward, we will embed more content into IMO and then the marketing campaign focus will be greater shifting to IMO. And to just take example, if we can achieve 50% user conversion from IMO to short-form video, that means for every two users we acquire into IMO, one of them will be converting to short-form video users.
Plus, that two users into IMO, they will not only become short-form video users, they could also become a Likee user. They could also become a WeChat kind of group users. So the efficiency of acquiring user into IMO will be much better than the other products. So I think those are the strategies around sales and marketing.






Your next question comes from the line of Daniel Chen from JPMorgan. Please ask your question.

你的下一个问题来自摩根大通的Daniel Chen。 请问你的问题。

Daniel Chen

[Foreign Language] I will translate myself. So my question is related to our overseas short video platform, Likee. We have seen a very robust growth in the user base. And we also see that in China, there's another short-form video -- short video platform, Kuaishou, who's doing like very well in terms of monetization.
So just wondering, how are we looking at the Likee's monetization outlook maybe in the next one to two years? And then recently, we see that we have just starting to test the live broadcasting function of Likee. So how -- what's the latest update in terms of like the user conversion and also monetization? Thank you.

[外语]我会翻译自己。 所以我的问题与我们的海外短视频平台Likee有关。 我们看到用户群的增长非常强劲。 而且我们也看到,在中国,还有另一个短片视频 - 短视频平台快快,在货币化方面表现得非常好。

所以只是想知道,在未来一到两年内,我们如何看待Likee的货币化前景? 最近,我们看到我们刚刚开始测试Likee的直播功能。 那么如何 - 用户转换和货币化方面的最新更新是什么? 谢谢。

David Xueling Li

[Foreign Language] Thank you for your question. This is David. Let me address your question. So firstly, YY or we, as a company, has very rich expertise in terms of the live streaming content operation as well as monetization in the world. So we're still -- so there has no doubt in terms of the Likee's future monetization, we will definitely leverage our capabilities in terms of the live streaming monetization in the future.
But currently, if you look at Likee's development stage, we have to agree we're still in the development stage, which is focused on grabbing bigger market share rather than monetization. So currently, if you look at our spendings, we actually had the main focus on the R&D expenses, especially for all of the short-form we do content, one of the competitive edges will definitely be coming from the very advanced AI capabilities.
So we also had the same kind of approach, which is spend a lot of effort and resources in terms of the AI development. At current stage, especially the synergies and the connections between Likee and IMO's platform also has been caused our -- a lot of the focus in terms of the technical development strategies.
So compared with the monetization at current stage, we're really focused on the -- to increase the market share. But in the future, if we look at the nature of Likee's -- the product seems to be providing the short-form video content streaming.
So those kind of format is very suitable for both of the live streaming monetization as well as constant monetizations. So in the long run, we are still very confident in terms of the Likee's monetization from the global market.
[Foreign Language]
When you look at both Likee and IMO, so in terms of the future monetization model, we actually I think -- since both of the products is focused on the content fees of the services. So in the future, definitely both of the product we'll using both of the live streaming and advertisement to monetize.
[Foreign Language]
We actually recently started to do a trial version as well as provide live streaming services for some of the Likee users in a very small scale. But it just started, but the performance is very well. So we will definitely continue to trial that.
[Foreign Language]
Probably after a while, two quarters, we'll have more colors we can share. And we have a more clear view in terms of the future monetization. Thank you.

[外语]谢谢你的提问。这是大卫。让我来解答你的问题。首先,YY或我们作为一家公司,在实时流媒体内容操作以及世界货币化方面拥有非常丰富的专业知识。所以我们仍然 - 所以毫无疑问,在Likee未来的货币化方面,我们肯定会利用我们在未来实时流媒体货币化方面的能力。


因此,我们也采用了同样的方法,即在人工智能开发方面花费了大量的精力和资源。在目前阶段,尤其是Likee和IMO平台之间的协同作用和联系也引起了我们的关注 - 这是技术发展战略的重点。

因此,与现阶段的货币化相比,我们真正专注于 - 增加市场份额。但是在未来,如果我们看看Likee的本质 - 该产品似乎提供了短视频内容流。



当你看到Likee和IMO时,就未来的货币化模式而言,我们实际上认为 - 因为这两种产品都专注于服务的内容费用。所以在未来,我们肯定会同时使用直播和广告两种产品来实现货币化。






Your next question comes from the line of Natalie Wu from CICC. Please ask your question.

您的下一个问题来自中金公司的Natalie Wu。 请问你的问题。


Hi. Good morning. Thanks for taking my question. I have two questions here. First one is regarding BIGO...

你好。 早上好。 谢谢你提出我的问题。 我这里有两个问题。 第一个是关于BIGO ......

David Xueling Li

[Foreign Language]



[Foreign Language] I will translate myself briefly. So I have mainly two questions. First one is regarding BIGO. Just want to get a sense about the revenue split among the different product lines that's Likee, IMO and BIGO Live and other platforms. Would appreciate if we can get a sense of respective year-on-year growth behind the different business lines as well.
And also can you actually help us understand what's the current user geographic overlapping status quo among those three major platforms: Likee, IMO and BIGO Live. Also, what's your focus of areas for user growth in the following six to 12 months for those three products?
And second question is related with HAGO. Just wondering, can you help us understand what your -- what's the related revenue contribution from HAGO and also the additional sales and marketing spending related with the global expansion, especially with HAGO this quarter. Also, the margin profile of the HAGO product, is there any difference versus your core live streaming business? Thank you.

[外语]我会简短地翻译一下自己。所以我主要有两个问题。第一个是关于BIGO。只想了解Likee,IMO和BIGO Live以及其他平台的不同产品线之间的收入分配情况。如果我们能够了解不同业务线背后各自的同比增长,我们将不胜感激。

您还可以帮助我们了解这三个主要平台当前用户的地理重叠现状:Likee,IMO和BIGO Live。此外,对于这三种产品,在接下来的6到12个月内,您对用户增长的关注点是什么?

第二个问题与HAGO有关。只是想知道,您能否帮助我们了解您的 - 与HAGO相关的收入贡献以及与全球扩张相关的额外销售和营销支出,尤其是本季度的HAGO。此外,HAGO产品的利润率与您的核心直播业务有何不同?谢谢。


Natalie, thanks. Let me address those questions. So the first question regarding BIGO's revenue composition. I would say, super majority is from live streaming. As I mentioned, IMO before acquisition, they have revenue coming from advertisement.
And after we acquired IMO, we have tried new ways to further enhance the advertising dollar revenue. But again, as a total, BIGO's differentiated revenue is due from live streaming. That's the first part of the first question.
Secondly, regarding the user -- original user composition for different products. IMO's user is mainly focused on South Asia. So the top markets are India, Bangladesh, Pakistan, and then Middle East, and then some of the Southeast Asian market. For the future user acquisition strategy, IMO would definitely focus on its key markets.
As I said, those key markets are South Asia and Middle East. So we will continue to attract further users through the friends and friend's friends circle to grow the user base in those markets first. And then once it reaches a critical mass and then once the content, we think IMO reach a critical mass in terms of quality and quantity, IMO definitely will reach out to other markets as well.
As you all know, IMO product tends to have a network effect. So for every one user you acquire, you're potentially going to acquire 5 or 6 new users, because those new users are friends and families of the existing user. So that's the -- about IMO.
For BIGO Live. Core markets are Southeast Asia markets, roughly 40%, and then roughly 30-something percent coming from Middle East, and then roughly over 20% from developed world, including U.S., Europe, Korea and Japan. In terms of future strategies, BIGO Live will focus on, as we mentioned in the prepared remarks, will focus on developed world because we see that developed world users tend to have more social features and then high ARPU and monetization potential.
So the U.S., European and Japan or Korean market will grow faster than the existing emerging markets. So that's about BIGO Live. For the next product, Likee. Likee's key markets are in India, Indonesia, Russia, U.S. and some of the Latin American countries. In terms of strategy, it will be more balanced. Likee, because it's very easy for user to access and create short-form videos so we will go parallel, both in terms of penetrating into emerging markets and developed world.
As we mentioned, we have organized - Likee has organized some of the offline events in India and also, in July, we organized a very popular event in Russia, attracts thousands of users, young generations, to play Likee in the offline setting and make friends and do social interaction. So we do see a lot of potential for Likee to acquire both developed world and emerging markets traffic. That's the long answer to your first questions.
Secondly, for HAGO business. HAGO's revenue is growing very rapidly. It's actually one of the main driver for YY's revenue growth. But again, in terms of percentage, it's still less than 10% of the total YY business. But again, we see very encouraging growth pattern. For the sales and marketing, we have spent, I would say, decent amount of spending in second quarter.



其次,关于用户 - 不同产品的原始用户组成。 IMO的用户主要关注南亚。因此,顶级市场是印度,孟加拉国,巴基斯坦,然后是中东,然后是一些东南亚市场。对于未来的用户获取策略,IMO肯定会关注其主要市场。


众所周知,IMO产品往往具有网络效应。因此,对于您获得的每个用户,您可能会获得5或6个新用户,因为这些新用户是现有用户的朋友和家人。这就是 - 关于IMO。

对于BIGO Live。核心市场是东南亚市场,大约40%,然后大约30%来自中东,然后大约20%来自发达国家,包括美国,欧洲,韩国和日本。就未来战略而言,正如我们在准备好的评论中所提到的,BIGO Live将重点关注发达国家,因为我们看到发达国家用户往往具有更多的社交功能,然后具有高ARPU和货币化潜力。

因此,美国,欧洲和日本或韩国市场的增长速度将超过现有的新兴市场。这就是BIGO Live。对于下一个产品,Likee。 Likee的主要市场是印度,印度尼西亚,俄罗斯,美国和一些拉丁美洲国家。在战略方面,它将更加平衡。喜欢,因为用户访问和创建短片视频非常容易,所以我们将在进入新兴市场和发达国家方面保持平行。


其次,对于HAGO业务。 HAGO的收入增长非常迅速。这实际上是YY收入增长的主要动力之一。但同样,就百分比而言,它仍然不到YY总业务的10%。但同样,我们看到非常令人鼓舞的增长模式。对于销售和市场营销,我想说,第二季度我们花了相当多的支出。

But again, but right now, it's still not breaking even yet on a business stand-alone perspective, but we do see margin will improve and see a breakeven point coming in the foreseeable future. So that's the question to the HAGO - the answers to the HAGO question.

但同样,但就目前而言,从业务独立的角度来看,它仍然没有实现盈亏平衡,但我们确实看到利润率会有所改善,并且在可预见的未来会出现盈亏平衡点。 这就是HAGO的问题 - HAGO问题的答案。


Your next question comes from the line of Jialong Shi from Nomura. Please ask your question.

你的下一个问题来自野村的贾龙石。 请问你的问题。


[Foreign Language] First of all, thank you very much for the data points shared by management about overseas businesses. And we think this user engagement data about YY's overseas business are quite impressive. I have a few questions about your overseas businesses. And for the four overseas apps, IMO, Likee, BIGO Live and HAGO, so which of the apps may have the biggest financial potential in the long run in the real management?
Also, just wondering if management can provide more colors on the competition landscape for the four overseas apps, such as who you guys are competing with in each of the 4 verticals.
And finally, if we think the overseas expansion may require multiple years investment. So I just wonder where YY is now in that investment cycle and when will we see a positive earnings contribution from your overseas business based on management best estimates? Thank you.

[外语]首先,非常感谢管理层就海外业务分享的数据点。 我们认为这个关于YY海外业务的用户参与数据令人印象深刻。 我对你的海外业务有几个问题。 对于四个海外应用程序,IMO,Likee,BIGO Live和HAGO,那么哪些应用程序在实际管理中可能具有最大的财务潜力?


最后,如果我们认为海外扩张可能需要多年投资。 所以我只想知道YY现在处于投资周期的哪个阶段,我们何时会根据管理层的最佳估算看到海外业务的盈利贡献? 谢谢。

David Xueling Li

[Foreign Language] This is David. Let me address your questions. So firstly, if you have to ask me to pick up one of the favorable products in the future, especially in terms of my vision, so the choice definitely will IMO. Because IMO, if you look at the nature of the platform, it's an instant messaging platform with a very -- with very strong growth potential in terms of the users as well as future in my vision.
And currently, since IMO is still in the very early stage, so we actually didn't put very aggressive actions in terms of true money as currency users. But since we already have over 200 million MAUs, which is a massive user base, so in the long run, definitely, we are more confident in terms of future's IMO's monetization.
[Foreign Language]
When we look at the competitive conditions in terms of the instant messaging product in China, outside of China, which actually is quite different. So in China, in most of the cases, the company will allocate a large scale of the research development teams, which is even over 1,000 people to develop the different functionalities or other services into the IMO product.
But by contrast, if you look at the overseas product operation, normally, it's coming from very small teams, like dozens of people, but develop a very focused functionality. But definitely compare the two part of the research and development capabilities, it has a huge gap.
So for the Chinese company, we definitely have the expertise in terms of how we can better embed a content as well as develop the different kind of functionality into -- of the instant messaging product to continue to improve the user stickiness. So for that part, we have a very always competitive compared with the overseas peers.
[Foreign Language]
So in the first part, definitely, we see a lot of opportunities in the instant messaging area. But meanwhile, if you look at the other products, especially I want to highlight BIGO Live, which is our major live streaming platform outside of China.
So BIGO Live actually has been profitable in the past one to two years already. And actually, their profitability is -- used to be good enough to support of Likee's development.
But very recently, we have more aggressive campaign in terms of the Likee's investment since we actually see the better ROI from the user acquisition part for the short-form video platform. So that is why we have relatively more operating spendings.
And meanwhile, it doesn't mean we spend money blindly. We actually look at -- close monitor a lot of different kind of features and operation metrics. So when we look at the better and the positive ROI coming from the -- those part of the investment, so definitely, that brings us more confident to continue spend kind of robustly into of the Likee's development in the future.
But as I mentioned before, so we actually can -- the overall BIGO business could be profitable at any time if we cut out the spendings from the Likee part. So that means we have very flexible of the control for this part of the business. So we can dynamically take control of the financial budget and close monitor that on a quarterly basis.








所以在第一部分中,我们肯定会在即时通讯领域看到很多机会。但同时,如果你看看其他产品,特别是我想要突出BIGO Live,这是我们在中国以外的主流直播平台。

所以BIGO Live在过去的一到两年里实际上已经盈利了。事实上,他们的盈利能力 - 曾经足以支持Likee的发展。


同时,这并不意味着我们盲目地花钱。我们实际看一下 - 关闭监视许多不同类型的功能和操作指标。因此,当我们看到来自投资的那些更好和积极的投资回报率时,那么肯定会让我们更有信心继续在未来继续花费大量资金进入Likee的发展。

但正如我之前提到的那样,我们实际上可以 - 如果我们从Likee部分削减支出,整个BIGO业务可以随时盈利。这意味着我们对这部分业务的控制非常灵活。因此,我们可以动态控制财务预算,并按季度密切监控。

[Foreign Language]
Our short form video users has been growing up several times on a year-over-year basis into 90 million in the second quarter. So it's very - so if we look at the massive user base, definitely, that has a lot of potential.
And meanwhile, going forward, since we have more synergies happen between IMO and Likee, so definitely, you will see the short form video users converted from IMO, which is an instant messaging products, will rapidly grow.
So since we - in the foreseeable future, once we build out the close loop for the - and the ecosystem for the short-form video product, definitely, we will see better financial leverage from this product as well.
[Foreign Language]
And for the product such as HAGO - HAGO, sorry, H-A-G-O, so since HAGO will continue - will become more mature for the product and is focused on the monetization progress so definitely, it also will be start breakeven and then generate positive cash in the foreseeable future.
[Foreign Language]
In terms of the profitability road map for the overall BIGO business, we actually still stick on the original plan, which means until the end of next year, hopefully, we can achieve that single amount breakeven for the overall BIGO business, and we'll continue to work on that goal. Thank you.


我们的短片视频用户在第二季度已经连续多年成长为9000万。所以它非常 - 所以如果我们看一下庞大的用户群,肯定会有很大的潜力。


因此,我们 - 在可预见的未来,一旦我们为短片视频产品构建了闭环 - 以及短片形式的生态系统,我们肯定会从这个产品中看到更好的财务杠杆。


对于像HAGO - HAGO这样的产品,对不起,HAGO,所以既然HAGO将继续 - 将对产品变得更加成熟并且专注于货币化进程,所以肯定,它也将开始盈亏平衡,然后产生积极的现金可预见的未来。




There are no further questions at this time. I'll now hand the conference back to the management team for the closing remarks.

目前没有其他问题。 我现在将会议交回管理团队,收到闭幕词。


Thank you, operator. Thank you for joining our call. We look forward to speaking with everyone next quarter. Thank you.

谢谢运营商。 感谢您加入我们的电话。 我们期待下个季度与大家交流。 谢谢。


Thank you.



Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may now all disconnect.

女士们,先生们,今天的会议结束了。 感谢您的参与。 你现在可能都断开了。


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