Q3 2021 JOYY Inc Earnings Call

Ladies and gentlemen, thank you for standing by and we'll come to the Joy Incorporated's third quarter 2021 earnings call. At this time, all participants are in a listen only mode.

After the managements prepared remarks, there will be a question and answer session.

I'd now like to.

She had a conference over to your host D change here the company's senior manager of Investor Relations. Please go ahead Shane.

Thank you operator, Hello, everyone welcome to Joy surgical which is 2021 earnings conference call joining.

Joining us today are Mr. David <unk>, Chairman and CEO of Joy it's.

Jamie our deal of and Mr. Alex smell the general manager of finance.

For today's call management will first provide a review of the quota and then we will conduct a Q&A session.

The third quarter 2021 financial results and webcast of this conference call are available at IR the Joy dotcom.

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 apply to this call as well as we will make forward looking statements.

Finally, please note that unless otherwise stated all figures mentioned during this conference call on U S dollar.

I would now turn the call that you all are chairman and CEO, Mr. David Shutting me.

Please go ahead Sir.

Hello, everyone and welcome to our so called for the attendees onto you want earnings call. Despite the increasing uncertainty due to COVID-19, we had another solid quarter as we grew our total quarterly revenues by 21, 7% year over year too.

$651 million Wow, because revenue increased by 61% year over year to 569 million.

Notably we attend to the non-GAAP profitability.

Ive level for the first time since way.

The consolidated YY live on the books.

Oh.

Certainly the $501 million.

Non-GAAP net profit this was mainly attributable.

<unk> margin expansion and improved.

Operating leverage at a group level during the quarter <unk> non-GAAP nonprofit expanded to $49.6 million well its non-GAAP net margin improved from three 3% to eight plants.

7% in the previous quarter.

The persistent execution of our globalization strategy.

Has enabled enabled us to deliver a steady progress.

Across multiple effects, including.

One the continued expansion of our global business to diversify content offering various.

Various products, that's a need for the interest rate.

Sure.

Sure.

<unk> interactive social connections.

Three and.

Bad for synergy among multiple products that's a draw.

With steady improvements in profitability.

Group level.

Now, let me share return detail on some quarterly updates for each of our call product line, let's start with <unk>.

The global economy, uncertainties and other challenges.

Posted by the <unk>.

Resurgence of COVID-19, our business demonstrated.

Resilience as we enter to the post pandemic era.

We go lives.

Streaming revenue increased by eight 6% year over year in the third quarter, our efforts to cultivate a global <unk>.

Diversified content pool has been effective in.

Further expanding the paradox.

The reach of the visualized as a big old lives increased by 10, 7% year over year to <unk>, one learning in the partner.

The continued execution of our local lies the operational strategy has contributed to that.

Gradual a gradual build up in the pain behaviors of our users as the number of paying users increased by 61% year over year.

We also.

Continue to deliver robust performance off the go lives in multiple regions.

Correct.

Year over year basis revenue and the paying user from Europe increased by 50 points is six.

50.6%.

26, 7% respectively.

While revenues and the paying users from southeast Asia and other emerging regions increased by 29, 6%.

So tier one 7% respectively.

As we extend the big go lives this operation into multiple regions our revenue mix.

<unk> to diversify.

Although dean.

Brilliance and individual markets.

Looking at the development of the global live streaming industry, we believe that the penetration rates for <unk>.

Live streaming remains at very low levels, leaving us with the tremendous growth opportunities ahead going forward, we will continue to deepen.

Penetration in multiple key markets include the North American and Europe Middle East and.

These term Pacific regions, and dedicate more resources towards the emerging markets as well.

In doing so we will further solidify our leading global market position in the social.

Patent entertainment live streaming sector.

With regards to our content efforts.

In the past afield part or we have been launching our talent pool of content creators and expanding our local lives the premium content library via various cross industry partnerships and a serious offer low.

Realize the operational activities.

We have focused on a handful of categories, including 10 entertainment gaming and lifestyles and further expanded our product reach.

For example for the Penn attainment to category.

Plus the library constant <unk> music.

Commutation voice off people.

Correct.

Recently, achieving a huge success in Taiwan.

<unk> more than 100000 people concurrent to reverse for is the final event.

In North American Eagle I've launched a new channel feature and attracted a <unk> service to create their own personal channels on the platform covering some of the hot.

Topics and pop culture.

Including <unk>, our singer Trisha <unk> Finance channel.

<unk>.

As the Haas.

And he is channel and American very cheap.

And the <unk>.

<unk> and his finger.

Sure.

Overall.

Mental health channel.

All of our hand for why the platform for those influencers to showcase their talent.

Productivity on the <unk>.

Other hand, we leverage our influencer to promote content diversification and high quality engagements. They go live platform.

In the gaming category, we partner with to mobile game.

Heavy weights in July further in reaching people lives gaming content.

In France, <unk> Leigh Palmer with popular mobile mobile RPG.

Our cost.

Each was globally by.

Hi, Kate in the hospital.

A series of incentives.

Events for Big go lives gaming content creators Meanwhile, through our cooperation with <unk>.

Reena with Hospira and streaming of the refi Ali.

National level E Sports tournament, and South Asia as a result, we have further enrich our gaming <unk> jewelry in the quarter.

We are also further expanding our connections while all keen Neil interact Q sectors.

In the lifestyle category, we made our initial.

Sorry.

Into E Commerce live streaming in Southeast Asia in August we launched the <unk> marketplace Channel, Indonesia, Malaysia independent and we conducted.

Control of that.

Based on past the off the <unk> shop feature which enable a small group of passionate users tool compete their purchases.

Thorough punch out.

Sure.

With phase.

<unk> third party merchants.

<unk> marketplace is steel.

The infancy in terms of development.

It has the potential to expand our product reach by providing diversified interactive expense experience for our users.

During the quarter, we continued to introduce in OE achieve products or features big alive to further improve our user experience. New features include the future in picture.

New live streaming mode moves <unk> trial.

<unk>.

Our streamers for multiyear the chat room.

And the mall as a result, the number also streamers of multi users chat rooms increased by <unk>, 3%.

Average duration per live streaming session increased by five.

Five points.

3% sequentially.

In addition, we update updated the Beagle lives non real time content sharing feature BR and improve it.

User engagement further achieving.

<unk>.

<unk>, 8.1% sequential increase in average user time spend the wheel.

Green host teams.

By optimizing its content rich.

The recommendation algorithm with more pressures user profiling.

He is.

Vivo live user discovery all four inches.

Interestingly the base the content beyond live streaming rooms, increasing is the next day user retention rates by <unk>, 5%.

Going forward, we plan to further enrich our localized content offerings. We believe is that either we will help our users establish some mall fulfilling enchase space the social connections further expand our product reach.

Our user base expansion and the.

Automated ultimately helped field.

Driver.

In <unk>.

<unk> global community.

Next the unlikely.

In line with our impressive long term growth and sustainability, we have been fined 10 10.

<unk>.

<unk> marketing strategy since the first quarter of this year.

<unk>.

<unk>, our investments on our content and social ecosystem.

As a result <unk> overall.

<unk> <unk>.

Short term.

Flu shot.

<unk> Flo acute patients.

And the decline there too.

76, 8 million. However, we are stopped team to see a slowdown in the.

Downward a churn, especially in the golf suites from the Middle East region.

Therefore likely is live streaming revenue growth further by 58, 1% year over year, mainly driven by the middle East a region as the revenues from the Middle East increased by a one five times year over year.

In the past quarter.

Our efforts have been.

Centered on identifying.

Cultivating and supporting talented content creators to cultivate.

<unk> delay and librarians content.

Accretion community, we launched a serious of SMT and programs offering both user traffic on other economy can reward to influential content appraisers with more than 10000.

At the same time, we continue to uncover the most talented content creators through various Archie offer localized.

<unk> events and challenges.

As a result, the number of certified <unk> increased by 70%, 17% sequentially in the third quarter.

As part of the answer.

Incentive programs like introduce the Aneel Hernando features call the silver line.

In Russia and Indonesia.

Immediately east and other regions.

With a new feature users.

To obtain a super like either through purchasing all building in asthma.

Commercials, and then ground to their favorites preserves and short videos essentially super lagging enables creators to engage with a large range of <unk> group.

In Nam.

Real time.

<unk>.

Stimulate GM, social interactions and adding diversify the monetization tools for creators motivating the production of mall premium content as a result in Russia. For example, <unk> launch of Super lack guarantee the wireless.

Fried.

Garnered widespread interest from traders and the evidence.

By seven 1% month to month increase the number of.

So defy the creatures joins the <unk> community.

Low can have with the.

The crew.

Recruitment of.

Increase the number of talent.

<unk>, we should be able to.

Arguments.

<unk>.

Reach and the dynamic of content ecosystem and pave the way toward the revival of its user base extension.

Lastly, our Hagen Dazs Huggers live streaming revenue continued its rapid growth momentum.

Momentum as its revenue hurdles spire.

78.7% year over year and is the number of paying user increase by 1.5 times.

In terms of product development over the last few quarters, we've made some strategic changes to <unk> positioning.

Transitioning from the <unk>.

<unk> platform, primarily focus on casual games too.

<unk> and the video multiplayer social interaction and entertainment platform.

He made a successful.

This assay launches all features of this in the past a few quarters, including the hustle full months zero updates.

As a major revamp all floor is channel feature full closed theme on.

On the improvement of multiuser social into <unk> activities.

Activities.

Virtual family group functions.

More recently the.

Kim audio live streaming services.

Service for mobile games.

Those new features enable user continue maintaining the in Antelope Entertainment and.

Interactions needs for our euro users.

Following a series of adjustments that we have achieved the preliminary transformation and <unk> traffic structure.

Driving significant improvements in user interaction.

All our sequential basis channel penetration rates increased by four points as a percent.

In the penetration of our virtual family group function increased by nine 9%.

Average duration of live chat room increased by 40 points is 3% too.

80 minutes.

Well the penetration rates offered.

<unk> audio live streaming service for mobile games increased significantly from zero to six point to see a four 4%.

In the future we will continue to provide users with a mall.

Diverse.

Mark key player Interactive entertainment experience and.

Car T H.

Inkjet space Social Entertainment community.

All in all during the quarter despite the recent.

Vale to volatility in the macro environment and the increased uncertainty during due to coal we the 19.

Our persistent execution of our global.

Strategy helped us to achieve.

Substantial progress in multiple fronts, our efforts of enhancing our diversified and localized content ecosystem.

<unk> helps <unk> further expanded its product reach and the user base well continue meetings calls TV all for talented content creators and the.

In fact, cumulated increasing engagement levels in lag is content in the community.

Through the combination of improved with the <unk>.

Synergy among various products that enhance the operation leverage and.

Prudent marketing strategy, we have achieved a steady expansion.

In profitability for both <unk> segment and for the entire group.

Going forward we.

We will continue to how to gauge our localize the content in the social ecosystems.

Not sure.

<unk> space interactive social connections and pursuing long term sustainable growth for our global business.

Lastly in light of the current market condition on top of the.

Current U S dollar to hundreds of meeting new share repurchase plan announced in September 2021, Our board of directors had adjust the authorized additional share purchase plan under which the company may.

<unk> off to U S dollar one billing of our chefs to November 2021.

To demonstrate our confidence in the company's long term growth perspective.

<unk> <unk>.

Prospects.

And to reward our shareholders for their long term support of the company.

This concludes.

My prepared remarks, I will now turn the call to our general manager all financed Alex Phil for a more detailed explanation of our quarterly financial results.

Thanks, David Hello, Hello, everyone at choice by National General manager Ivy would talk about the financial results.

So it's a majority of our revenues and expenses are now denominated in USD starting from January one contest.

When they buy they have changed the average Republican clarity from RMB to dollar to better illustrate our operational results.

<unk>.

Please note that the financial information on a non-GAAP financial information disclosed in our third quarter earnings press release.

As presented on a continuing basis.

Unless otherwise specifically stated.

The steel while alive was successfully completed on February eight 2020 Bucks.

Certain customary maters.

In the near future.

The historical financial results, while the life are reflected in the company's consolidated financial statements as discontinued operations Accordingly.

Starting from the fourth quarter of 10-K 10-K.

During the third quarter effective antiviral despite the recent volatility in the macro environment and increased uncertainty.

To COVID-19.

Continued to deliver promising financial results.

Our total net revenues for the third quarter increased by 25, 7% year over year to USD.

$658 5 million from USD $534 4 million in the same period typically pentair.

Primarily attributable to the continued payroll growth a beagle.

In particular, our live streaming revenues for the third quarter increased by 19, 7% year over year to USD 600 in TARP two immediate.

And other revenues.

The third quarter increased by 66, 8% to <unk> 38 four.

For me Dan.

Through the combination of improved synergy among multiple products.

First operating leverage and prudent marketing strategy they have a chip.

<unk> profitability.

Both vehicles segment and all of the entire group.

Cost of revenues for the third quarter increased by 16% year over year to USD $439 eight meeting.

Revenue sharing fees.

<unk> cost increased to just be to <unk> and not pay part of our media in the third quarter from USD 200.

34 million in the same period of time.

Yeah.

This was in line with the increase in live streaming revenues.

Bandwidth cost decreased to USD 19 million from USD $27 62.

That same period authentic pentair.

Primarily due to the company's improved efficacy and the termination of bandwidth usage for India yogurt. After the India campaigns of Chinese apps in later June 20 <unk>.

Partially offset by user based pricing upside of India.

Gross profit increased by 35, 5% year over year to USD $210 8 million.

Gross margin in the third quarter of 2020 by improved to 32, 4% from 29, 1% in the same period of 2020.

Operating expenses for the third quarter Big Chris to USD.

208, 7 million from USD 249 portable meeting in the same period of time at Pentair.

Among the operating expenses sales and marketing expenses decreased to USD $106 3 million from USD $134 6 million due to disciplined spending on Georgia.

<unk> via.

The advertisement for certain products, including <unk> and Hugo.

Our GAAP operating income for the third quarter was USD $6 9 million compared to operating loss of USD 89 Street media in the same period of 2020.

Operating income margin for the third quarter was one <unk> percent compared to operating loss margin up 60 ports.

In the same period of 'twenty pentair.

Our non-GAAP operating income for the third quarter, which excludes share based compensation expenses.

They set of intangible assets from business acquisitions.

As well as impairment of goodwill.

Best bands and the gain on disposal of subsidiary and business.

Was USD $63 million in the quarter.

Compared to non-GAAP operating loss of USD 39, 5 million in the same period of 2000.

Our non-GAAP operating income margin for the third quarter was four eight.

<unk> compared to non-GAAP operating loss margin of seven 4% in the prior year period.

GAAP net income from continuing operations.

<unk> two controller in chase of Joy in the third quarter of 2020 bond was USD seven 5 million compared to net income of USD 195 million. During the same period of 2000 10-Q.

Net income margin was one 2% in the third quarter of 2020 compared to 35, 7% is a corresponding period of 2020.

Net income was higher in the same period last year, mainly due to the gain from the partial disposal of equity interest.

Sure.

Non-GAAP net income from continue from continuing <unk> attributable to controlling interest of Joy was USD 35 points by media in the third quarter compared to non-GAAP net loss of USD 26 6 million.

In the same period of 2020.

Non-GAAP net income margin was five 4% in the third quarter of 2020 back.

Compared with non-GAAP net loss margin of 5% in the same period of 2000 pentair.

That they have.

<unk> non-GAAP profitability at group level for the first time this quarter.

The consolidated YY live.

Notably <unk> continued to achieve a positive non-GAAP net income for first three quarters.

Non-GAAP net income expanded to $49 6 million in the third quarter.

GAAP net income margin improved to eight seven.

Seven non-GAAP net loss.

Matter too.

Two 9% in the prior year period.

Diluted net income.

During the third quarter of 2020 volume was USD <unk> <unk> seven compared to USD 222 in the same period of 2020 non-GAAP diluted net income per ads.

Yes.

Zero point both too.

Compare to non-GAAP diluted net loss of just <unk> 30 Street parade, yet in the same period of 2020.

Yes.

According to our quarterly dividend plan approved August 11th 'twenty Pentair.

On November six 2010 to maybe distributing a dividend.

Yes.

Daryl.

S followed the third quarter of 2020 bonds.

It's expected to be paid December 23, 2025 to shareholders of record of the class.

On December 20 to come back.

Also would love to provide an update to our execution of the share repurchase program.

August 29, 2019 and.

Later extended in May 2020.

The board of directors has authorized a share repurchase program.

<unk> the company.

<unk> up to USD 300 media of Hcr's August 20 <unk>.

As of September <unk>.

<unk>.

Such share repurchase program already expired.

The company had almost a fuller execute this share repurchase program.

<unk> approximately USD 300 meeting of its shares.

The September 2020 by the company enough that it's part of directors has authorized a new <unk> repurchased lie.

And which the company may repurchase up to just the 200 meter of Hcr's till September 22.

As of September <unk> two.

2020 volume.

The company had repurchased approximately USD 16 7 million of its shares under this program.

Alright.

Today, our board of directors has.

Also drive additional share repurchase plan and the <unk>.

The company May repurchase up to USD 1 billion of average shares till November 2022.

To demonstrate our confidence in the company's long term growth prospects.

And to reward our shareholders.

<unk> long term support of the company.

At February supplements, and we will continue to further expand our global market rates.

<unk> base of highly engaged but Europe community and.

I have a high quality content offerings.

<unk> also continued to actively explore other ways to maximize shareholder value.

Beginning in the second quarter, we have anticipated some negative impact on users online social entertainment activities.

From the gradual lift of pandemic related lockdowns in certain countries.

We expect our net revenues for the fourth quarter to be between USD $652 million.

And at USD 660.

$61 million.

Representing a year over year increase between.

<unk> 14, 7% to 16, 3%.

Constant currency basis.

Excluding the revenue contribution from above alive in the same period of last year.

They currently have limited visibility surrounding the COVID-19 epidemic long term impact impacts.

And the geopolitical uncertainties.

<unk> in the market.

Therefore, this forecast OLED reflects our current and preliminary deals on the market and operational conditions.

These are subject to change.

That concludes our prepared remarks.

Operator, we would now like to open up the call to questions. Thanks.

As a reminder to ask a question you will need to press star one on your telephone.

To withdraw your question press, the pound or hash key.

When asking a question. Please take your question in Chinese.

Then immediately repeat your question in English. Thank you.

Your first question comes from the line of Thomas Chong from Jefferies. Please ask your question.

Okay.

I'll take that one each day, so that you and what they bring to.

Well she signed up on me.

Sure.

Do you think the Eaton about tissue.

In late June.

Spain and engagement.

I've been saying the gains on that.

E <unk> something you saw acuity.

Yahoo Baidu open.

Nick what was the other unions on that.

Oh I see.

Goldman Sachs.

One of them in Q4 that make our guidance.

Got it.

You saw that dose.

Take our guidance.

Boats go up with them the metrics they make a trend.

So when you said one woman, but they do that.

To ensure that so today expense line they may be in Pennsylvania.

And from an instrument.

My questions I.

I have a question.

First question is about.

The COVID-19 situation.

With that.

The use of behavior.

Terms of the time spent and gauge men and that actually affects.

Our monetization and can we talk about.

Baidu woke up is all about that.

Pat.

These metrics and then my second question is about the Q4.

The new guidance, Okay management.

Give us a bit more about the trend.

When speaking with light and my third question is about the.

The cost and expense trends are how we should think about it going forward. Thank you.

With Eisai and <unk>, we can do.

<unk> in shoulder Sungard charter fees on part of the Union.

Industrial Air travel.

Uh huh.

So in order to go to the junior and onto the <unk> and also not traditionally alita.

Each and that Allison Dorval Caboodle.

The Bulldogs.

So when there are dislocations.

Okay.

Evil from radiology, the tier two years ago.

And those are the quota shares.

Chantal, who either change or are you looking to encourage in India. Meanwhile.

Alright.

I don't know if <unk> been on board.

Now I'm going to do your own fulfilling a surgical approach on leasing income.

To the Yo Yo Yo Yo Yo.

Well the opportunity Ciena as Johan.

Okay.

And those are the roadway on Hanmi loan purchase you Johan time, let's see angina when G&P volume was at one yesterday pushes also the ultra leader even with Dino.

Thanks Terry.

So youll be distributors or basically how it all the time.

She'd been challenged in our traditional C&I two LNG a poodle.

In the international regions here when we look also at <unk> hundred million, so <unk> turnarounds by munitions and she is all about <unk>.

They were mostly at that same moment, James because our triple it Archie.

And then she crunchy.

Thank you Tom.

I will answer your first question.

If you recall last year, we aligned very substantial growth.

Okay.

Our year over year growth in.

Many quarters actually to pass 100%.

Multiple accordingly.

On top of that on when covenants.

There has been some short term fluctuation caused by COVID-19. It has put some extra pressure to realign maintain such a high level of growth.

Thanks.

You can see that guidance.

Second at the end of second quarter.

Has encountered.

Increased uncertainty.

COVID-19 on the one hand, you see some countries gradually lifting knocked out then and there has been negative impact on unit online Central entertainment activity and on the other hand with the resurgence of COVID-19 in certain areas we've seen.

Can consumer confidence on the economy, which had a negative impact on user behavior and this is across different regions as well.

I've seen that.

Our assets to continue to introduce diversify content and new product features which have improved user engagement, we see bigger light user time spend and retention rate in key markets has remained stable.

There has been some short term fluctuation.

<unk> monetization capabilities, such as paying ratio and <unk> in certain regions, such as U S and middle East.

So far we do have limited visibility into the precise impact related to COVID-19, that's why we have provided a relatively conservative estimate for our Q4 revenue, which implies a year over year growth of 14, 7%.

He is 16, 3% at group level.

We will provide further updates once we have better visibility.

Okay.

Okay from a screen in the home and that the government is going to be closer cooler minion film Valerian, the PUC what appetite shop.

Colorado closely with short order.

It was one of my closest on shelf, so that whole rule I will shop with us.

<unk>, the non cat multi acuity Sergio <unk>.

Joseph <unk> Julia issues sounds like utilization on a non-GAAP that can lead to many of them cannot cock and I'll get to knit Eagle Downs basically they can leave.

Alrighty R&D like Cox.

Key to the toll pumps fluid a telco likely that some of the more moderate genotypes one hall, the phone channel partner with tissue likely that what you do.

The illustration qwaqwa minerals from time to time.

What helps Lockheed that pulp absolute numbers on the lifestyle alrighty arent, yet one more quick tissue Salt Lake.

Although Jim will change all year with the total knee <unk> colleagues on quote out on shelves. So the total quantum of what might change or the pundits zubair <unk> already arent equal on quite a gym salt don't tissue boxes by the kimpton top tissue about CMV.

To talk to you like on the policy that you took a <unk> solution.

And equate to maintain that Sundar just yet.

And this is Alex I will answer your second question.

As there would be an increased number of marketing and operating activities in Q4.

Our content costs and sales and marketing expenses.

<unk> modestly in the fourth quarter, both in terms of absolute amount and expense margin.

Oh Vegas headquarter level, resulting in a slight decrease.

In our gross margin and non-GAAP net margin for <unk> segment in Q4 on a sequential basis.

And as you can notice <unk> has achieved non-GAAP net profit negative upstream quota.

For the full year, we believe that Eagle segment.

<unk>, a low single digit non-GAAP net margin.

And full year 2020 Q.

Tim Cortes marketing spend adjustment can Nike, we have seen some positive preliminary results to the project. We will continue to observe likey user engagement level retention rate.

Content ecosystem progress and.

Flexibly adjust.

Marketing spend in the coming year.

So overall speaking, we will ensure a steady and balanced growth strategy balanced growth and profitability of our global business in 2022.

And increased investment in sales and marketing activity.

And our global local lines operational team.

Eco segment achieved steady growth in terms of revenue and will remain profitable in 2020.

And in the longer term with the multiple products gradually moving to rent breakeven to believe that the overall profit margin will be gradually increase thank you.

Thank you.

Okay.

Your next question comes from the line of Alex Poon from Morgan Stanley. Please ask your question.

Physical anytime soon so the tier one can see how the year T J.

<unk>.

Well the only other <unk> go lives for Nike.

<unk> seen that payroll has seen a condom you'll mail you said you won't hold off I'm quite.

So the constant Sunshine.

<unk>.

Yes.

<unk> seen the payroll hook them up if I may we can claim.

Some other gene Jonathan J D. The argon one piece of glass you take a J.

Well my gut Baidu take a trigger to go deal with it seems that the U S.

Yes.

My first question is related to <unk> life and <unk>.

Can management share some of the new features and content.

User feedback revenue contribution from these features in Q3.

And going forward.

New features and content, we are looking forward to to expand into my second question is related to our.

Do progress update with Baidu. Thank you very much.

Harsha Haynesville NCR pushout.

Actual woman to the Pico live referred to the light.

Natasha initiation and enrollment to the Ono.

<unk> Biodefense MLS Shan Shan logic be go live of the year, So the Laguna, Puerto Rico Botswana franchise.

Agenda. This opinion those are the pulmonary <unk>.

<unk> runs buyer in a moment.

I think the bigger line of EMEA.

Cable channels at a below market in place proven digital.

<unk> sure.

China vehicle marketplace.

So those are all Mohammad so choose.

Throughout the year.

Who do you won't dwell harder Neal also chime in here.

Enzo Mayo smartphones yet.

She will now give a comment on because of <unk>.

The pre go live with the BARDA the gondola.

Sanjay Darshan Buena team will trade on leave when they will notice some handful yet.

Going into the like the general many champions on the biodiesel side.

So you need May Watson Goldman would've Sean challenges of Super League.

Chandler.

So we have a <unk> diamonds that she didn't ship.

So let me summarize the agenda.

Gd hundreds of thoughtful yields in all her pound to <unk> its really long.

So in the two <unk> supervised silver silver like Kona to initial mail commissions, either ones that Google known <unk> ship.

While <unk> for the quick <unk>.

Supervisor Joanna <unk>.

They don't want to switch over to the team available now.

Hey.

The project.

Thank you that makes sense the statements I will answer your question.

Both for <unk> and 19, we have been trying out new content and new product features in the past few quarters.

So on in early August that Jeff mentioned that Eagle life, we have beta testing and vehicle pass them, along which is in nine markets E Commerce channel.

In Asia, and we see some preliminary plan.

Reaction.

Every user deals per live streaming session NIS 106 in.

<unk> hundred thousand.

Like an infection.

The response.

In August we assess.

Actually lines and vehicle marketplace channel in Malaysia, Indonesia, and Thailand.

Is the <unk> penetration rate.

As high as 25% in sentiment.

While vehicle marketplace.

Infancy intense development it has the potential to expand.

On a product by providing a diversified interactive experience.

Yeah.

We cannot charge dimensions.

<unk> at this stage yet.

With the no contribution to revenue at this stage in.

In Q4, we would be launching.

Gifting function under our non real time content community feature he said that includes the engagement level.

Our feature.

And for Nike.

As mentioned in my prepared remarks.

We introduced a feature called Super like Russia, Indonesia.

And I'll tell you back in late August.

Theme Super light and may yield penetration rate.

Seven 7% in the first month in certain region.

Hello, Ed.

The creators could actually obtained.

Revenue share from Super Light, we believe that the feature motivate the production of more premium content helped created that's an engaged with Danske bank groups.

So as of today as Darius you will then are favorable.

The new contribution from Super like at this stage has been limited and we will continue to monetize our user feedback and in addition to like in Q4, we are planning to launch subscription feature and are likely to continue our support for the <unk> and to help them succeed.

Content creation is a lifelong felicia.

Okay.

Okay.

According to the wall.

Among other things the YY.

I will do the deal.

The woman Naoshima Schindler shashi hazardous constantly churn so as ECP.

<unk> yeah.

Tissue of women and children.

First of all on the chair side <unk>.

Thanks.

Joining me from a longer Easter 20 until either people generally achieved to the whole year <unk>. Your team, but you know fairly easily so I'm wondering have awaiting approval.

And for.

The update.

YY ninth deal and there hasn't been new information from Galaxy. This communication.

As mentioned in the SEC filings at the company with me.

Have substantially completed the sale of our night to thank you.

I steal customer medicine.

Program.

On both sides of it.

Standalone update of the proposed transaction.

Mutually agreed upon by the parties.

Any offer that update we will disclose it when and as required by applicable securities laws.

Thank you.

Sure.

Selling toxicity J J.

Your next question comes from the line of Human Jang from China Renaissance. Please ask your question.

Hey, good morning, everyone.

Well I'm not sure.

Do you can scale.

Can it go down unless.

He kept telling me what a telephone call goodbye.

Okay great.

Took us a good chance we haven't quantified what that you don't go too quickly.

So number one.

Well there you go through like I said, you guys or that sort of thing.

Are you gonna Chooser handling though.

Just how much you're going to have questions Michelle.

I wanted to actually go.

That's basically I got cut off.

If I can.

So the first question here regarding <unk>.

You mentioned you had some more like basketball market strategy.

Okay.

That is dependent on Todd landscape.

Uh huh.

Alright perfect.

All right sounds good.

It came out.

And then secondly can you give us an update on the overseas live streaming video competition is good. Thank you.

Paul Susan Lynch.

Sure.

<unk>, let's just highlight John sure.

Sure Glenn it's reported as of yet.

Finally, a woman like key flagship you can look at the year.

These are global gelatin listen Im not sure if I had to each and every year with only of Eagle <unk> in June.

Sure.

<unk> please.

<unk> on our tubular sure dialysis readout.

Dynegy and concern.

I don't know <unk> Canadian.

Hi, Sheila.

But <unk> actually in.

So here's our triple Yes, yes, sure Charlie Calder.

Sure.

Sure sure.

200, <unk> component that genre.

<unk> had a challenging year.

<unk> has already done so.

Probably about <unk> <unk>.

So Olivia and Sharon Chen.

Hopefully the John let's turn on that Josh.

One particular title with the usual playbook.

So it was a July <unk>, so that you sure Ali.

<unk> kind of.

Julia will happen essentially youre familiar with the showroom shutoff ineligible hustle Hydrosol casino to the showroom, Russia Jose sure Sheila.

So long the showroom was generally don't publish.

Diligent in Russia.

So it all within one month.

The <unk> order to the challenges of general.

Hydrogen.

Sure thing.

First of all 19 separately two questions begin with.

And thoughts on Viking.

Well, we got the impression that the market is actually very concerned.

The potential.

Negative impact of life changing Kathleen my hats are from manga social platform with key.

<unk> traffic.

But actually based on our optimization.

Chinese.

No.

Competitors data, we've seen that for these.

Large scale social platform.

And monetization efficiency via vacuuming is actually very low.

It's lower than feed of life, and it's lower than the advertising business.

Why you never see.

For the social platforms to put flight shaming business as a priority.

And so because it believes that the efficiency and the ili is actually lower than than pursuing advertising clinical module.

What we'd like to emphasize hearing set for these mega relatively larger scale social platform and they do not actually compete with directly.

That is by nature a priority.

Our business model and we believe that we will still be able to.

Obtain a longer term sustainable growth from our 19.

And the like.

It likely will Miss one Daniel Furtado.

Shire College enrollment portfolio led to user to the certain lessors oregano, we're going to continue in addition, an archive.

Jerome good home nurses.

First I apologize.

<unk>, we all should lead to the slow down the turnaround school lead me.

The celebrity Alberta, sugar more quarter share.

She got her yolanda's water Bureau.

We are higher good ones will nonetheless likely mentioned <unk> Macquarie.

While most of the Super language here on the enhanced C U E.

The <unk> touch on that negotiation.

Sure Walnut pound tool celebrity it's home to the what are the Influencer Tonys comments all of those are the fundamental fulfill SNS.

Bob.

Just on <unk>.

Bill I know <unk> boundaries.

Yes.

Fulfill Athena emotional John Rudolf.

<unk> mentioned it.

Our <unk> are very low likelihood should average due to the <unk>.

And you guys are very sound and the final charging undersold national total G&A load on some of our more sure tomorrow.

I don't want to.

<unk>.

Wave <unk>.

Please.

The Magellan.

Hi.

For full year for Apache to the.

No doubt.

Can you maybe comment a little bit.

As of June <unk>, 2000, <unk> European Asher quantity.

There are no way unlikely that sort of an additional call it zeroed out.

<unk> got in the Angola partners, either fast a lot of licensing.

<unk> e-commerce of the band.

Ultra Super lack of terminal.

The logical chips, John that the hand going to be a higher bulk book to go through the <unk>.

Subscription.

This is obviously I won't do that.

As I said, our answers if you want to Mojave PL <unk> developing the surgical daus up there.

Nike premium Virginia ensure to those won't hold on until you hit on a woman to Jim dealer.

Homeowners earlier opinion <unk>.

Our general manager manager, who are likely in a triangular ECL.

How does this model showroom location tav the show the actual show so it will be more doubtful this onshore.

And all of those are that we'll either <unk> or monthly Jeremy Siegel.

<unk> heard some good help me understand that John that you can see you do damage pneumonia.

Walmart Jordan goes home colon government passed last year.

<unk>, you'll you'll see those super fans.

Long haul young adult likely Pinera Gena Wang Bing ship.

As for Nike, what I'd like to emphasize that we've not only.

EMEA adjusted marketing and Nike I'll say change.

James.

Product strategy and small you can see that as compared to all of the competitors were actually going to a different direction. We.

Advocating advocating private traffic.

Enabling kols and apathy gaming company.

Existing or established language cues to establish two attractive bandwidth onto <unk> and also to be able to monetize.

Via the platform.

If you look at the.

Yeah.

<unk> it looks like a gifting feature.

But actually in nature.

About helping these kols, helping it influences to be able to locate it.

Fan groups, who are willing to pay for their content and be able to enable these kols and influences to monetize.

And the introduction of the new feature subscription is also one of the monetization tools that we will provide for the kols.

So you can see that.

If you look at our competitors platforms, you can see that a lot of the traffic distribution is prioritizing the pop.

Domain.

<unk> emphasizing the platform's control all of our traffic distribution and diminishing the kols and Influencers.

Personally influenced on their bandwidth so what we'd like to do is if the opposite it would like to.

Advocates private traffic help the users have these kols and influences to drive.

Establish bandwidth from other product pipeline to Nike and we by providing such diversified monetization tools, including.

<unk>.

Can you provide a subscription and even e-commerce.

Diversified monetization toolbox, TV kols and influences.

With that we will be able to drive to further growth.

So all in all you can see that we'd love to see.

A big change to like model, where not only the marketing strategy and suggested but also.

We have a colorful and differentiated products.

Product strategy, which avoids direct competition with other platforms going forward, you'll be able to see that we'll be able to continue to grow nike's revenue.

With narrowing loss and in the future by continuing to remain private traffic.

Domain for the U K O out we'd be able to further empower these kols endpoint.

And be able to try and sort of expansion both for our user base and monetization level. Thank you.

Uh huh.

I would now like to had a conference back to the management for closing remarks. Please continue.

That concludes the end of the call and we look forward to speaking with everyone next quarter. Thank you.

This concludes.

This does conclude today's conference call. Thank you for participating you may now disconnect.

[music].

Yeah.

Okay.

[music].

Yes.

[music].

Okay.

Yeah.

[music].

Yes.

Yes.

Okay.

Okay.

Okay.

Okay.

[music].

Yes.

[music].

Yes.

Thanks.

Okay.

Okay.

Okay.

[music].

Okay.

Okay.

[music].

Yes.

[music].

Okay.

[music].

Yes.

Okay.

[music].

Sure.

[music].

Yes.

[music].

Okay.

[music].

Yes.

[music].

Okay.

Okay.

[music].

Sure.

[music].

Okay.

Okay.

Okay.

[music].

Yes.

[music].

Yes.

Okay.

Okay.

[music].

Ladies and gentlemen, thank you for standing by and welcome to the Joy incorporated third quarter 2021 earnings call. At this time, all participants are in a listen only mode.

After the managements prepared remarks, there will be a question and answer session.

I'd now like to.

<unk> had a conference over to your host today James the <unk>.

Company's senior manager of Investor Relations. Please go ahead.

Sure.

Thank you operator, Hello, everyone welcome to join third quarter 2021 earnings conference call joining.

Joining us today are Mr. David <unk>, Chairman and CEO of.

<unk> our CEO.

And Mr. Alex Neil the general manager of Finance.

For today's call management will first provide a review obsequent chat and then we will conduct a Q&A session.

Third quarter 2021 financial results and webcast of this conference call are available at IR of Joy Dot Com and.

A replay of this call will also be available on our website in a few Alice.

Before we continue I would say to our safe Harbor statement in our earnings press release, which apply to this call as well as we will make forward looking statements.

Finally, please note that unless otherwise stated all figures mentioned during this conference call on U S dollar.

I will now turn the call that chairman and CEO, Mr. David <unk> Li. Please go ahead Sir.

Hello, everyone welcome to our third quarter 2021 earnings call.

The increasing uncertainty due to COVID-19, we had another solid quarter as we grew our total quarterly revenues by 21, 7% year over year to $651 million, while <unk> revenue increased by 60.

<unk>, 1% year over year to $569 million.

Notably we attended a non-GAAP profit profitability at the group level for the first time since way.

The consolidated YY live and booked.

<unk>.

Certainly $501 million in non-GAAP net profit this was mainly attributable to.

<unk> margin expansion and improved.

Operating leverage at group level during the quarter <unk> non-GAAP net profit expanded to 49 6 million well.

Non-GAAP net margin improved from three 3% to eight 7% in the previous quarter.

The persistent execution of our globalization strategy.

Has enabled enabled us to deliver a steady progress.

Across multiple effects, including.

One the continued expansion of our global business to diversify content offering.

Various products, that's a need for the interest.

Sure.

No news for.

<unk> interactive social connections.

Three and.

The banker synergy among multiple products that drive steady improvements in profitability at the group level.

Next let me share richer detail on some quarterly updates for each of our call product line, let's start with <unk>.

Despite the global economy, uncertainties and other challenges posted by the resurgence of COVID-19.

Our business <unk>.

<unk>.

Resilience as we entered it.

Post pandemic era.

If we go lives.

Live streaming revenue increased by eight 6% year over year in the third quarter, our efforts to cultivate a global.

Diversified content pool has been effective in.

Further expanding the products product reach off the big alive as a big old lives for Miu increased by 10, 7% year over year to 31 money in the pot here.

The continued execution of our local lies the operation strategy has contributed to that.

Grabbed Europe gradual build up in the pain behaviors of our users as the number of paying users increased by 61% year over year.

We also continue to deliver robust performance. After we go live in multiple regions in particular.

Year over year basis revenue and the paying user from Europe increased by 50.6.

50.6%.

26, 7% respectively.

While revenues and the paying users from southeast Asia, and other emerging regions increased by 29, 6% and 31, 7% respectively.

As we expand the big go lives this operation into multiple regions our revenue mix.

<unk> to diversify.

Although dean.

Brilliance.

Individual markets.

Looking at the development of the global live streaming industry, we believe that as the penetration rates for <unk>.

Live streaming remains at very low levels, leaving us with the tremendous growth opportunities ahead going forward, we will continue to deepen penetration in multiple key markets improve.

North American and Europe, Middle East and.

These 10 Pacific regions, and dedicate more resources towards the emerging markets as well.

In doing so we will further solidify our leading global market position in the social and the.

And the Tim <unk> livestream manufacturer.

With regards to our content efforts.

In the past afield partners, we have been in lodging, our talent pool of content creators and expanding our local lives the premium content library via various cross industry.

Our ships and a serious offer localized the operational.

Activity is.

We have focused on.

For all categories, including 10 entertainment gaming and <unk>.

<unk> styles and further expanded our product reach.

For example for the.

The Penn attainment to category.

First the library constant counting music.

Amortization voice off people.

Wrapped up recently, achieving a huge success and talent attracting more than 101000, the pillow concurrent to reverse.

It's the final event.

In North American <unk> launched a new channel feature and attracted a <unk> service to create their own personal channels on the platform covering some of the hot topics and pop culture.

Including <unk>, our singer Trisha <unk> Finance channel.

Then.

As the Haas.

<unk> channel and American Verity Star and.

<unk> and his finger.

Sure.

Overall hand.

Mental health channel.

All of our worldwide platform for those influencers to showcase their talent.

Creativity on the other hand, we leverage our influencer to promote content diversification and high quality engagements. They go live platform.

In the gaming category, we partner is to mobile game.

Heavy weights in July further in reaching people lives gaming content.

In France, <unk> partner with popular mobile mobile RPG.

<unk> cost.

Which was globally by.

So you'd have Kate in the hospital.

A series of incentive.

Events for Big go lives gaming content creators Meanwhile, through our cooperation with <unk>.

Reena with Hospira and Australia, the free Fai Lee.

National level swath tournament, and South Asia as a result, we have further enrich our gaming <unk> jewelry in the quarter.

We are also further expanding our connections while are all keen newly interact Q factors.

In the lifestyle category, we made our initial.

Sorry.

Into E Commerce live streaming in Southeast Asia in August we launched the <unk> marketplace channel in Indonesia, Malaysia, and independent and we conducted.

Control of the <unk>.

<unk> has to offer.

Ashok feature.

Enable a small group of passionate users tool compete their.

Purchase.

Peru punch out.

Thanks.

With the rate <unk>.

<unk> third party merchants.

<unk> marketplace is steel.

The infancy in terms of development.

It has the potential to expand our product reach by providing diversified interactive expense experience for our users.

During the quarter, we continued to introduce in OE achieve product features on big alive to further improve our user experience. New features include the future in picture.

New streaming mode moves supporting.

While the.

Simulated genius.

Our streamers for multiyear the chat room.

And the mall as a result, the number also streamers of multi users chat room increased by <unk>, 3%.

I am ready to duration per live streaming session increased by.

Five points.

3% sequentially.

In addition, we <unk>.

<unk> updated the big go lives non real time content to salary and feature.

Iraq and the improved.

User engagement further achieving.

Six.

Eight 1% sequential increase in average user time spend the meal.

<unk>.

Our postings also by optimizing is content.

Recommendation algorithm with more pressures user profiling.

He is.

V go live user discovery of <unk> interest.

Interestingly the base the content beyond live streaming rooms, increasing is the next the user retention rates by <unk>, 5%.

Going forward, we plan to further enrich our localize the content offerings, we believe that either we'll help our users establish the mall full saving interest space the social connections further extend our product reach.

Our user base expansion and the.

Automated ultimately helped fuel.

Drivers.

<unk> global community.

Next the unlikely.

In line with our impressive long term growth and sustainability, we have been fine Tien <unk>.

<unk>.

<unk> marketing strategy since the first quarter of this year.

<unk>.

<unk>, our investment on our content and social ecosystem.

As a result lastly, its overall.

<unk>.

Short term.

Flu.

Short term flow acute patients.

And the decline there too.

76 8 million however.

We are starting to see a slowdown in the.

Downward a churn, especially in the golf space from the Middle East region.

Therefore likely is live streaming revenue growth further by 58, 1% year over year, mainly driven by the middle East the region as the revenues from the Middle East increased by a one five times year over year.

In the past quarter.

Our efforts have been.

Centered on identifying.

Cultivating and supporting talented content creators to counting wage.

<unk> and <unk> content.

Accretion community, we launched a serious of incentive programs offering both user traffic on other economy rewards to influential content creators with more than 10000.

At the same time, we continue to uncover the most talented content creators through our various Archie offer localized.

<unk> events and challenges.

As a result, the number of certified <unk> increased by 70%, 17% sequentially in the third quarter.

As part of the answer.

Incentive programs like <unk> introduced a new <unk> features called silver along.

In Russia and Indonesia.

Immediately in other regions.

With the new feature users.

To obtain silver like either through purchasing all building in asthma.

Commercial and then ground to their favorites freezers and short videos essentially silver lagging enables creators to engage with a large range of the <unk> group.

In Nam.

Real time.

<unk>.

Stimulating and social interactions and adding diversify the monetization true for creators motivating the production of more premium content as a result in Russia. For example, like this launch of Super lack guarantee the wireless.

Fried.

Garnered widespread interest from traders and the arrogance.

By seven 1% March to amounts increased the number of.

So defy the creatures joins the <unk> community.

Looking ahead with the.

With crew.

Recruitment of.

Increase the number of talent.

<unk>, we should be able to.

Arguments.

<unk> reach and the dynamic content ecosystem and pave the way toward the revival of its user base expansion.

Lastly on <unk>, how it goes live streaming revenue continued its rapid growth momentum.

Momentum as its revenue hurdles spire.

78, <unk>, 7% year over year and is the number of paying user increase by 1.5 times in.

In terms of product development over the last few quarters, we have made us a more strategic churn to <unk> positioning.

<unk> from the.

Interactive platform, primarily focus on casual games too.

All of you in the video multiplayer social interaction and entertainment platform, we made a successful.

Successive launches are features of this in the past few quarters, including the <unk> <unk> zero updates.

With a major revamp all four is channel feature full close being on.

On the improvement optimal multiuser, social interact QM activities.

Activities, the virtual family group function and more most recently.

Kmart audio live streaming services.

Service for mobile games.

Those new features enable user continue maintaining the in Amarillo Entertainment and.

Interactions needs for our euro users.

Following a series of adjustments that we have achieved the preliminary transformation and <unk> traffic structure.

Diving in the significant improvements in user interaction.

On a sequential basis channel penetration rates increased by four points as a percent.

In the penetration of our virtual family group function increased by nine 9%.

Average duration of live chat room increased by 40 point is 3% too.

80 minutes.

Now the penetration rates offered team of audio live streaming service for mobile games increased significantly from zero to six point the C or four 4%.

In the future we will continue to provide our users with a mall.

Diverse.

Key player Interactive entertainment experience and.

Counting bache.

Enchase space Social Entertainment community.

All in all during the quarter despite the recent.

Vale volatility in the macro environment and the increased uncertainty during due to coal we the 19.

Our persistent execution of our global.

Strategy helped us to achieve.

Substantial progress in multiple fronts, our efforts of enhancing our diversified and localized content ecosystem.

Health <unk> further expanded its product reach and the user base.

I'll continue meetings cultivation and off the balance sheet of continental prisoners and.

In fact accumulate increasing engagement levels in <unk> content in the community through the combination of improved.

Synergy among various products that enhance the operation leverage and.

Prudent marketing strategy, we have achieved a steady expansion.

In profitability for both people and segment and for the entire group.

Going forward, we will continue to how to gauge our local lines the content on our social ecosystems.

Not sure.

<unk> space interactive social connections and <unk>.

I assume long term sustainable growth for our global business.

Lastly.

In light of the <unk>.

Current market condition on top of the.

Current U S dollar to hundreds of meeting new share repurchase plan announced in September 2021, our board of directors had adjust the authorized.

<unk> sure.

Is the plan under which the company may purchase up to USD, one billing of our chefs to November 2021.

To demonstrate our confidence in the company's long term growth perspective.

First Max prospects.

And to reward our shareholders for their long term support of the company.

This concludes.

My prepared remarks, I will now turn the call to our general manager all financed Alex Liu for a more detailed explanation of our quarterly financial results.

Thanks, David Hello, Hello, everyone at choice by National General manager Ivy would talk about the financial results.

So there's a majority of our revenues and expenses are now denominated in USD starting from January one 'twenty bonds.

<unk> changed our reporting currency from RMB to dollar to better illustrate our operational results.

Please note that the financial information on a non-GAAP financial information disclosed in our third quarter earnings press release.

Present is continuing.

Basis.

Unless otherwise specifically stated.

The sale of <unk> was successfully completed on February eight 2020 back this certain customary maters to be completed in the near future.

The historical financial results of our lives are reflected in the company's consolidated financial statements as discontinued operations Accordingly.

Starting from the fourth quarter up 10-K 10-K.

During the third quarter of <unk>. Despite the recent volatility in the macro environment and increased <unk>.

Due to COVID-19.

We continued to deliver promising financial results.

Our total net revenues for the third quarter increased by 27.

70% year over year to USD $658 5 million from USD $534 4 million in the same period 'twenty pentair.

Primarily attributable to the continued payroll growth a beagle.

In particular, our live streaming revenues for the third quarter increased by 19, 7% year over year to USD 600 in TARP to media.

And other revenues in the third quarter increased by 66.

8% to Jive circle portable.

All media.

Through the combination of improved synergy among multiple products.

First operating leverage and prudent marketing strategy, we have achieved a steady pace.

<unk> ability.

Both vehicles segment and for the entire group.

Cost of revenues for the third quarter increased by 15% year over year to USD $439 8 million.

Revenue sharing fees and content costs increased to just the 200 and not take portable media in the third quarter from USD 200.

34 million in the same period of time.

Yeah.

This was in line based on the increase in live streaming revenues.

Bandwidth costs decreased to USD 19 million from USD $27 6 million.

The same period of 2010 Pip.

Primarily due to the company's improved the emphasis there and the termination of bandwidth usage for India yogurt.

The India campaigns of Chinese apps in later June 'twenty Pentair.

Partially offset by user base extensive upside of India.

Gross profit increased by 35, 5% year over year to USD $210 8 million.

Gross margin in the third quarter of 2020 by improved two circuit two 4% from 29, 1% in the same period of 2020.

Operating expenses for the third quarter decreased to USD.

<unk>, two <unk> and eight 7 million from USD 249 portable meeting in the same period of 2000 pentair.

Among the operating expenses sales and marketing expenses decreased to USD $106 3 million from USD $134 6 million due to disciplined spending on user acquisition via.

The advertisement for certain products, including <unk> and Hugo.

Our GAAP operating income for the third quarter was USD $6 9 million compared to operating loss of USD 89 Street media in the same period of 2020.

Operating income margin for the third quarter was one <unk> percent compared to operating loss margin up 60 ports.

In the same period of 2020.

Our non-GAAP operating income for the third quarter, which excludes share based compensation expenses.

They set of intangible assets from business acquisitions.

As well as impairment of goodwill.

Best bands and the gay our disposal of.

Subsidiary and business.

Was USD Citibank Port stream media in the quarter compared to non-GAAP operating loss of USD 39, 5 million in the same period of 2020.

Our non-GAAP operating income margin for the third quarter was <unk> eight.

<unk> compared to non-GAAP operating loss margin of seven 4% in the prior year period.

GAAP net income from continuing operations attributable to controlling interest of joy in the third quarter of 2020 bond was USD seven 5 million compared to net income of USD 195 million in the same period of 2000.

Take care.

Net income margin was one 2% in the third quarter of 2020 compared to 35, 7% is a corresponding period of 2020.

Net income was higher in the same period last year, mainly due to the gain from the partial disposal of equity interest.

Non-GAAP net income from continue from continuing operations attributable to controlling interest of Joy was USD 35 part of our media in the third quarter compared to non-GAAP net loss of USD 26 fixed needed.

In the same period of 2020.

Non-GAAP net income margin was five 4% in the third quarter of 2013.

Compared to non-GAAP net loss margin of 5% in the same period of 2000 pentair.

That we have obtained non-GAAP profitability at group level for the first time this quarter.

The consolidated YY live.

Notably <unk> continued to achieve a positive non-GAAP net income for four straight quarters.

Non-GAAP net income expanded to $49 6 million in the third quarter with non-GAAP net income margin improved to eight seven.

Seven non-GAAP net loss.

Matter too.

Two 9% in the prior year period.

Diluted net income per ads.

During the third quarter of 2021 was USD <unk> <unk> seven compared to USD 222 in the same period of 2020 non-GAAP diluted net income per ads.

Yes.

Zero point both too.

Compare to non-GAAP diluted net loss of USD <unk> 33, <unk> in the same period of time.

Okay.

Yes.

In accordance with our quarterly dividend plan approved August 11 2020.

And on November 16, 2020, maybe distributing a dividend.

Yes.

<unk> pipeline.

<unk>, followed the third quarter of 2020 by visit.

Expected to be paid December 'twenty, three 2021 to shareholders of record as of the <unk>.

Claus.

On December 20 to come back.

Also.

We would like to provide an update to our execution of the share repurchase program.

In August 2010, not 2019, and later extended in May 2020.

The board of directors has authorized a share repurchase program in which the company may repurchase up to USD 300 media of its shares to August 20 <unk>.

As of September <unk>.

<unk>.

Such share repurchase program already expired.

The company had almost a fuller executed this share repurchase program.

We repurchased approximately USD 300 meeting of its shares.

The September 2021.

Enough that its board of directors has authorized a new <unk> repurchased lie.

The company May repurchase up to USD 200 immediate of Hcr's till September 22.

As of September <unk> 2020 bank.

The company had repurchased approximately USD 15 7 million of its shares under this program.

Alright.

Our board of directors authorized additional share repurchase plan and the <unk> the company.

Purchased up to USD 1 billion of avid Sheriffs show November 22.

To demonstrate our confidence in the company's long term growth prospects.

And to reward our shareholders.

<unk> long term support of the company.

At February supplements, and we will continue to further expand our global market rates.

<unk> base of highly engaged but Europe community and enhance our high quality content offerings.

We will also continue to actively explore other ways to maximize shareholder value.

Beginning in the second quarter, we have anticipated some negative impact on users online social entertainment activities.

The greater lift of pandemic related lockdowns in certain countries.

We expect our net revenues for the fourth quarter to be between USD $652 million and USD 661 million.

Representing a year over year increase between.

<unk> 14, 7% to 16, 3%.

Constant currency basis.

Excluding the revenue contribution from above alive in the same period of last year.

They currently have limited visibility surrounding the COVID-19 epidemic long term impact impacts.

And the geopolitical uncertainties of our business and the markets you're in.

We operate therefore this forecast OLED reflects our current and preliminary deals on the market and operational conditions.

These are subject to change.

That concludes our prepared remarks.

Operator, we would now like to open up the call to questions. Thanks.

As a reminder to ask a question you will need to press star one on your telephone.

Withdraw your question press, the pound or hash key.

When asking a question. Please take your question in Chinese first.

Then immediately repeat your question in English. Thank you.

Your first question comes from the line of Thomas Chong from Jefferies. Please ask your question.

I'll take that one each one so that you as well.

<unk> signed up on me.

Sure.

The Eaton Bath tissue.

It may take a time spent and engagement.

<unk> been seeing the gains on that.

Goldman Sachs. He thought acuity Y'all I, you said Youll hold home Deco Baidu open.

What's that.

He was on that.

Okay.

Goldman Sachs.

One of them in Q4 that make our guidance.

Got it.

You saw that dose.

I think our guidance.

Youll put on the metrics that make a trend.

So when you said one.

One woman, but they do make a.

To ensure that so today expense line they may be.

Thanks management for taking my questions I.

I have a question.

First question is about.

The COVID-19 situation.

With that.

The use of behavior.

Terms of the time spent and gauge men and so that actually affects our monetization and can we talk about.

Walker beef out that impact these metrics and then my second question is about the Q4 revenue guidance can management.

You'd have to wait a bit more about the trend.

Speaking with light and my third question is about the.

The cost and expense trends.

That's how we should think about it going forward. Thank you.

Firstly, the ISR and Inova, MTR, which under <unk> in shoulder some docs 100 feet unclear in year two.

Social order troubled by the Nevada.

So in order to go to the junior and onto the digital economy, our genome and also not traditionally alita.

Each and that Ala and <unk>.

So when there are dislocations.

Okay.

Ebrahim.

Two years ago now.

And I Wanna homebuilder that quota share.

Current genital who either change out of your local to encourage in India. Meanwhile, you don't know.

When the channel each mpls transport homeland Indeed.

Dan Donlan.

Now I'm Gonna do you order fulfillment surgical approach on the reinsurance.

Yo Yo Yo Yo Yo change, although opportunity Ciena as the Ohio plant.

Settlement roadway on Hanmi loan purchases, you Johan <unk> angina <unk> Medina.

Thanks.

You should be distributed horizontal that are shipping in January in our traditional <unk> LNG a poodle.

In the engine not only kinship will move also <unk> <unk> turnaround <unk>.

They were mostly that maintains our trajectory of hope with our team.

And then she currency.

Thank you Tom.

I'll answer your first question.

If you recall last year, we realized very substantial growth in our global.

Our year over year growth in many quarters actually.

100%.

So.

So on top of that on the continent.

There has been some short term fluctuation caused by COVID-19, it has put some extra pressure to realign or maintain such a high level of growth.

So you can see that starting.

At the end of second quarter.

<unk> encountered increase.

Increased uncertainty due to COVID-19 on the one hand, you see some countries gradually lifting knocked out then and there has been a negative impact on using online social entertainment activity and on the other hand with the resurgence of COVID-19.

In areas, we've seen we can consumer confidence on the economy, which had a negative impact on user behavior and this then.

Across different regions as well.

I've seen that.

Our assets to continue to introduce diversify content and new product features which have improved user engagement, we see bigger light user time spend and retention rate in key markets has remained stable, but there has been some short term fluctuation.

With monetization capabilities, such as paying ratio and <unk> instead in regions, such as U S and middle East.

So far we do have limited visibility into the precise impact related to COVID-19, that's why we have provided a relatively conservative estimate for our Q4 revenue, which implies a year over year growth of 14, 7%.

He is 16, 3% at group level, we will provide further updates once we have better visibility.

Okay from a screen in the home and that the government is going to kill Sequela Minion film Valerian, the PUC what appetite shop.

<unk>, which our daughter.

It was one of my closest on shelf with the toll rule, John will shop with Us John <unk> noncash Molly <unk> <unk> <unk>.

FICO is Julia she sounds like utilization of non captive can leave China.

Now get to NIM, when we have a legal challenge to basically they can leave.

No much R&D R&D like hot side.

<unk> key to pull funds flow to the telco likely that some of the more moderately genotype one wholesale partner one quick tissue likely that when you do nutrition.

Nutrition, Qualcomm minerals from time to time.

Lockheed that pulp absolute numbers on the lifestyle audio <unk> tissue so Honda.

Jim will change will yield a total knee.

So don't quote out on shelves will get total Jamie what might change or the <unk>.

So when would you like are they arent equal quite a jump so don't tissue boxes by the champion top conduct tissue about CMV.

<unk> <unk> solution, something that is going to equate to what <unk> done.

Hey, Jeff.

And this is Alex I will answer your second question.

As there would be an increase number of marketing and operating activities in Q4.

Our content costs and sales and marketing expenses to increase modestly in the fourth quarter, both in terms of absolute amount and expense margin.

Oh Vegas third quarter level, resulting in a slight decrease.

In our gross margin and non-GAAP net margin for <unk> segment in Q4 on a sequential basis.

And as you can notice <unk> has achieved non-GAAP net profit for a consecutive quarter so for.

For the full year, we believe that <unk> segment will.

Achieved a low single digit non-GAAP net margin.

And full year 2020, Q after few quarters of marketing spend adjustment can Nike, we have seen some positive preliminary results.

The project, we will continue to observe Nike user engagement level retention rate.

Content ecosystem progress and flexibly adjust right.

Marketing spend in the coming year.

So overall speaking, we will ensure a steady and balanced growth strategy balanced growth and profitability of our global business in 2022.

And increased investment in sales and marketing activity.

And our global localized operations team.

Eco segment achieved steady growth in terms of revenue and will remain profitable in 2020.

And in the longer term with the with multiple products gradually moving to less breakeven to believe that the overall profit margin will be gradually increase thank you.

Thank you.

Okay.

Your next question comes from the line of Alex Poon from Morgan Stanley. Please ask your question.

So I think one is heng just all of the tier one can see how the year T J.

<unk>.

We only have a <unk> go lives or like T. J.

<unk> seen that payroll has seen a condom Youll mail you said you don't hold off on <unk>.

So the constant Sunshine.

It <unk> mean, yes.

<unk> seen the payroll hook them up if I may.

Some other gene J D.

The argon one piece of glass you take.

Chigger WOMAC, a baidu take a take a deal that <unk> seen it just yet.

My first question is related to go live and Nike.

Can management share some of the new features and content.

User feedback revenue contribution from these features in Q3.

And going forward.

What new features and content, we are looking forward to to expand into my second question is related to our.

Do progress update with Baidu. Thank you very much.

Harsha Haynesville NCR Pushout Diego judicial woman to the people live referred to the light.

The country is in the narrow incur to Laguna.

You referred to as the <unk> Bioscience <unk> Shan Shan logical if you go live of the Es Laguna, Puerto Rico, Botswana franchise simple agenda as his opinion those are the pulmonary <unk>.

<unk> runs the buyer in a moment.

I think the bigger line of EMEA.

Cable channels at a below market in place proven digital.

<unk> sure.

China vehicle marketplace.

As a trusted adult sheet Omaha, so choose.

Sure Alex.

Who do you won't dwell harder Neal also chime in here.

Enzo Mayo smartphones yet.

Does she want we've oriented our because of Jerusalem.

We go live with the BARDA the Sunshine.

Sanjay Dashon Buena, so you're able to trade on the email notices or some handful yet.

Going into the like the general many champions on the biodiesel side.

So indeed may welcome Don Wood Ashok challenges of Super League.

Well in China.

So we have a <unk> diamonds that she didn't sheet.

So youll just localized accreditation.

<unk> hundred five Biogen and all her pound to <unk> its really long.

So it's not a surprise.

Supervisor silver silver like Kona to initial mail <unk> the ones that we will now take on <unk>.

<unk> for the quick tour to the supervisor Joanna <unk>.

They don't want to treat food as a teenager mono joy.

Sure hope here on the on the product.

Thank you that makes sense the statements I will answer your question.

<unk> four <unk> and 19, we have been trying out new content and new product features in the past few fortune teller.

In early August that Jeff mentioned that Eagle life, we have beta tested at Eagle pass them, along which is in nine markets E Commerce channel in Malaysia, and we see some preliminary plan.

Any reaction.

The average user deals like streaming session NIS 106 in.

200000.

Liking session in response.

In August we officially lines and vehicle marketplace channel in Malaysia, Indonesia, and Thailand.

The USD <unk> penetration rate.

As high as 25% in sentiment.

While vehicle marketplace is still in its infancy intense development. It has the potential to expand our product offerings by providing a diversify interacted experience.

We cannot charge dimensions.

Commission at this stage yet.

The <unk> contribution to revenue at this stage.

In Q4, we would be launching gifting function under our non real time content community.

He said that includes the engagement level.

Our feature.

And for Nike.

As mentioned in my prepared remarks.

We introduced a feature called Super like in Russia, Indonesia.

And also in the West in late August.

That's been Super light and May yield penetration rate reached seven 7% in the first month in certain region.

Hello, Ed.

The creators could actually obtained.

Revenue share from Super Light, we believe that the feature to motivate the production of more premium content helped created that's an engaged with Danske bank groups.

So as of today as serious.

A favorable rent.

Revenue contribution from Super like at this stage is very limited and we will continue to monetize our user feedback.

And in addition, like in Q4, we are planning to launch subscription feature and the like.

To continue our support for the <unk> and to help them to fuel our content creation is a lifelong career.

Yeah.

Okay.

Clearly these are though.

I think the <unk> to the deal.

<unk> has a <unk> 10.

ECP closer to the <unk> year.

Tissue of warm weather E&C onshore homecare, sorry open somewhere in that region.

Joining me from a longer Easter 20 until either <unk> two the <unk> team between monthly EG. So I'm wondering are awaiting approval.

As for.

The update.

YY ninth deal.

It hasn't been new information from Galaxy This communication.

As mentioned in the SEC filings at the company with me.

<unk> substantially completed the scale up online.

I'd like to thank you and then a steel customer medicine.

Program.

On both sides.

Standalone update of the proposed transaction to date mutually agreed upon my departure date.

Any offer that update we will disclose it when and as required by applicable security laws.

Thank you.

Sure.

Selling don't forget JJ.

Your next question comes from the line of Hubert Chen from China Renaissance. Please ask your question.

Hey, good morning, everyone.

Q what demand upon launch.

Please go ahead.

Oh, yes.

So what else unless he kept telling me what a telephone call goodbye.

Please please go ahead.

So we haven't quantified what that you don't go too.

So number one.

Well there you go through like I said, you guys should all show sort of a chooser handling oh.

Thank you Michelle.

Yeah.

I wanted to ask you.

Because once you make the.

Hi, Bob.

If I can start.

So the first question here regarding <unk>.

You mentioned you have some more like basketball market strategy.

Thanks.

That is dependent on landscape.

Our user acquisition cost or other factors.

All right.

All.

I came out here.

And then secondly can you give us an update on the overseas live streaming video competition is good. Thank you.

Susan Lynch.

Wilson.

<unk>, let's just highlight John D virtual sure Glenn it's reported in the year.

Finally, a woman vertical like key flagship you can look at the year.

D var <unk> with oil Eagle contributed Tahira <unk>. Please hold.

<unk> on our <unk>.

Dynegy and concern.

Parallel to the <unk> International accounts.

<unk> actually.

So here's one example of that.

Yes, yes, sure Charlie Calder.

Sure George.

Sure sure.

Generally, though televisa showed the algae blooms that chartwell <unk> triple will be again, a solid year for.

<unk> has already done so.

Probably a dog when mortgages showed up in Georgia.

So it is a civil avia and <unk>.

John Let's turn on that Josh.

Anna.

Pretty good title future playbook.

So no <unk> Sadat you sure Ali.

<unk>, Canada.

What are the tripwire will hire potentially youre familiar with the showroom shutoff in eligible households, Hydro <unk> has emerged as a showroom, Russia Jose sure Sheila Davis of Russia.

The solar module to general earlier, so we don't publish a user together unless you.

So it all with enrollment.

<unk> order to the challenges of general.

Hydrogen is changing.

Yes.

Sure thing.

First of all as Nike separately, two question and begin with.

And thoughts on banking.

We got the impression that the market is actually very concerned.

The potential.

Negative impact of live streaming platform my hats off from manga social platform.

Key traffic.

But actually based on our optimization.

Chinese PMI.

No.

Competitor data, we've seen that for these.

Larger scale, social platform and monetization efficiency via <unk> is actually very low.

It's lower than the go lives and it's lower than the advertising business.

Why you never see for.

For the social platform to put flight shaming business as a priority.

And so because it believes that the efficiency and the ili is actually lower than than pursuing a advertising commitment module.

What we love Anthony Thank you instead for these mega relatively larger scale social platform and they do not actually compete with directly.

That is by nature a priority.

And that business model and we believe that we still will be able to.

Obtain a longer term sustainable growth from our 19.

Finally, the light.

It likely will mesh home <unk> charge off loans.

I'll answer the Shire college enrollment even portfolio like user to the certain lessors Arca Continental we're going to continue in addition, an archive yugo gem political nurses.

First I apologize for it.

Like you, we all should lead to the <unk>.

I'll now turn it up slowly to the amendment to the <unk>.

Celebrity output or attribute of our Hawaiian shirt.

Yolanda.

Usable way of hydrocodone soldier, Nonetheless, likely <unk> timber climbing Amit to answer you in a while many of the super lack of seizure.

You sure you go to that.

To the <unk>.

On the Yugo simulation.

Sure Walnut pound tool celebrity it's home to the what are the Influencer Tonys comments, where are those are they all fully mentor and fulfill the SNS.

Sure.

It's Patricia <unk> Vale will mostly boundaries.

Yes.

The narrow fulfill athena them, which are not yet John Rudolf.

Like <unk> mentioned.

Our <unk> are very low likelihood should average due to the general days of each liner.

Industrial versus owned benefiting our charging under assault National Shuttle 10 diluted in terms of our Moshe <unk>.

Donna.

<unk>.

Hey, Bill.

Please.

Magellan play.

For full year for Apache to the <unk>.

Lola.

Net income in the P&L.

The Luna <unk> singular Susana European actual quantity.

There are no way unlikely that's probably an additional call. It series rollout we had good loan growth.

In the NGO partners, either fast a lot of like if you can diagnose Vincent <unk> pulpwood e-commerce of the band.

Ultra Super lack of terminal to the well.

Virtual chips, John let me hand going to be a higher bulk book to go through the to the subscription.

<unk>.

As I said are answered she want to Mojave PL <unk>.

Developing the surgical daus up there. So you don't watch all Nike premium Virginia sure to those wont hold off until you hit on a woman to jam dealer to the tumor Australia opinion <unk> the other than our general management easier who are likely in a triangular easier or harder. This model showroom location tav the show the actual show.

So we'll be more thoughtful vishal and all of them.

Alexander will either <unk> or monthly Johnny Chi.

When D&O <unk> damage pneumonia.

John.

Jordan goes home colon government passed last year.

We'll use our lead you'll you'll see those as offense.

While hall.

<unk> likely Pinera GM Guan <unk>.

As for Nike, what I'd like to emphasize that we've not.

And the adjusted marketing and I'll.

I'll say on chains.

James.

Product strategy as well you can see that as compared to our competitors, we are actually going to a different direction. We.

Advocating advocating private traffic.

Enabling kols and apathy gaming.

Gaming company.

With.

Existing or established language choose to establish attractive bandwidth onto Nike and also to be able to monetize and fan groups.

Viator platform.

If you look at that.

Yes.

<unk> and that's like a gifting feature.

But actually in nature, it's about helping these kols, helping these influences to be able to locate.

The fan groups, who are willing to pay for their content and be able to enable these kols and influences to monetize.

And the introduction of the new feature subscription is also one of the monetization tools that we will provide for the Kols. So you can see that.

If you look at our competitors that plan you can see that a lot of the traffic distribution.

Prioritizing the public domain centering emphasizing the platform's control all of our traffic distribution and diminishing the kols and Influencers and personally influenced on their bandwidth. So what we'd like to do is we would like to.

Yes.

Advocates private traffic help the users have these kols and influences.

Driver Inc.

Fangled established bandwidth from other product pipeline to Nike and we by providing such diversified monetization tools, including the existing <unk>.

Can you provide a subscription and even e-commerce diver.

Diversified monetization toolbox, TV kols and influences.

That we will be able to drive further growth.

So all in all you can see that we'd love to see.

Big change to like model, where not only the marketing strategy and suggested but also.

We have go for a differentiated our product strategy, which avoids direct competition with other platforms going forward, you'll be able to see that we'll be able to continue to grow nike's revenue.

With narrowing loss and in the <unk>.

Sure by continuing central vein type of traffic.

Maine for the scale out we'd be able to further empower these kols endpoint MBA.

And be able to drive that expansion both for our user base and monetization level. Thank you.

Alright.

I would now like to had a conference back to the management for closing remarks. Please continue.

That concludes the end of this call and we look forward to speaking with everyone next quarter. Thank you.

This concludes.

This concludes today's conference call. Thank you for participating you may now disconnect.