Q4 2021 JOYY Inc Earnings Call

Ladies and gentlemen, thank you for standing by and welcome to the Joy Ink says fourth quarter and full year 2021 earnings call.

At this time all participants are in a listen only mode.

After the management's prepared remarks, there'll be a question and answer session.

I'd now like to hand, the conference over to your host today James Chi The company Senior manager of Investor Relations. Please go ahead Jean.

Thank you operator.

Hello, everyone welcome to join <unk> fourth quarter, and full year 2021 earnings conference call.

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

MS Ting, Li our COO and Mr. Alex Liu the general manager of Finance.

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

The financial results and webcast of this conference call are available at IR Doc Joy Dot 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 apply to this call as well as we will make forward looking statements.

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

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

Hello, everyone and welcome to our first quarter 2021 earnings call.

Let me start the call with overview of our first quarter results. We grew our total revenues by 16 16, 8% year over year to $663 7 million.

So quickly.

Quickly equals revenue increased by 30 points to year over year to $576 1 million. Meanwhile, we further improved our non-GAAP profitability at the group level when exclude the YY live.

We.

non-GAAP net profit for.

Not now.

Eight points is $3 million.

Through our non-GAAP net.

Margin too.

Four key points.

8%.

<unk> non-GAAP net profit expanded to 100.

$3 4 million, while its non-GAAP net margin improved to 18%.

From a <unk>, 7% in the previous quarter.

As a result for the full year offer frontage on Q1, we generated.

Two points.

Six two.

Two points to six 2 billion in total revenue an increase of 36, 5% from 2020.

Notably we grow Big also full year 2021 revenues by 30.

Four 1% to two point to three 2 billion.

Group level, our global business reached another.

Major milestone as we attended full year non-GAAP profitability for the first time when he screw the YY live a hiring brew.

Books 100.

Eight 9 million in non-GAAP net profit with <unk>.

<unk>, 2% non-GAAP net margin.

This was mainly attributable to the two beagles are strong financial performance.

It has turned the profit has been profitable for the full year for the first time Biogen, reaching 100.

82 million in non-GAAP nonprofit with.

Cross on the non-GAAP net margin of.

Seven 8%.

No look bike Plenaries under was a year marked by.

Our growth strategy to adapt patient.

And the breakthroughs.

Although gross Franck <unk> 2021 we continue to expand our revenue driven by our enhanced our monetization capabilities across multiple social entertainment product.

Consequently for the full year of 201 Big go lives revenue grew by 31 point to 3% license revenue grew by 97, 8% and harvest revenue grilled by four key.

554, 6%.

All contributing to the <unk>.

<unk>, 6.5% topline growth at the group level.

All of the strategic Adaptational front.

<unk>.

Proactive daily.

In fleet.

<unk> some of the strategic.

Rely magnets.

In early 2021, because we value the long term growth palace, and so as to the sustainability of our products, we made a surgeon and an adjustment to Nike and hognose marketing strategies and.

Priorities the investment in <unk>.

In their content and social ecosystems, which we believe are fundamental to the user experience.

<unk> experience in the long term compatibility comparatively.

Compared to the competitiveness of our products after a few quarters of executing those adjustments under a more prudent marketing strategy.

We are pleased to report a significant improvement in the monetization efficiency financial and operation operational health of these off lease.

Put us as a result.

Substantially narrowed.

Operating loss losses, even though.

<unk> experience for.

<unk> short term.

Fluctuations.

The combination of the increase.

Monetization of the.

Yeah.

A foreman aforementioned.

Products, our proactive two adjustments in marketing and strategy the gorilla.

Energy among our products.

Our enhance the operation efficiency across the broad.

Let us two important breakthrough.

Enabling us to achieve full year profitability.

For our global business for the first time since the deconsolidation of YY live our healthy cash flows.

The amount of change that we have enter into <unk>.

Neil phase of sustainable development.

Following a positive operating.

Cash flow offered 17 $7.6 million in the third quarter, we generated another positive operating cash flow of $150.2 million in the fourth quarter.

Looking bike, we continue to achieve in <unk>.

Breakthroughs.

It is by our proven track record of in crew in.

<unk> developing and monetization of our promos.

Okay.

Our existing global market presence.

Healthy cash flows and the sustainable growth momentum, we completed covenant.

Our future prospects as we continue to reinvent ourselves explore the global market increase our global market share and to capture future growth opportunities in the social entertainment in the industry next let me share.

Greater details of the progress we've made in each of our product lines during the fourth quarter.

As far as the Big go lives our efforts include in cultivating.

Diversify the global content ecosystem has been fruitful in expanding our product reach the big old lives.

<unk> grew the bi.

Yeah.

11, 9% year over year to 62 upon 2 million in the first quarter.

Despite the macro economy, uncertainties challenges posted by the <unk>.

Resurgence also COVID-19 COVID-19.

And then some.

Expiry.

Depreciation of certain currencies against the U S dollar, partially offset our growth momentum.

Our business demonstrated the silver resilience.

On a year over year basis.

We go lives live streaming revenue and.

Paying users increased by 12.5% and 10 points, 3%, respectively in the fourth quarter.

As we continue to make.

Either way with vivo lives growth trajectory in multiple.

<unk> graphic regions.

In particular, our revenues and the paying user from Europe increased by 42 upon 2% on the 14.7% respectively.

<unk> revenues in Europe .

Or from Southeast Asia, and other emerging markets increased by 16.

6% under 24, 4% respectively.

Last quarter we.

Made additional progress in diversifying our content ecosystem in reaching our local lies the content offerings, increasing our supply.

Premium contents and the improving user engagement in December 2022.

2021 and the January .

2022, we hosted a series of online events in multiple regions across the global such as the Euro and the Middle East There will be events featured many popular region No regional August music is singers and dancers. In addition to the <unk>.

Regions top live streamers.

To provide the user with.

Refreshing and.

The Murphy with social experience, we launched the <unk> <unk>.

<unk> product features in the fourth quarter, incorporating computer vision virtual reality argumentative.

Augmented reality and then many other cutting edge technologies in December we introduced a brand new feature called <unk>.

Virtual live which enable our users to create to customers through these digital our us as virtual rather than rig rates, and then patients and thats a meter or their lifeblood a movement.

Sure.

<unk> via a camera roll.

Windstream streaming on Big Old line, we plan to upgrade the virtual live feature continuously in.

In the future to increase our user.

Pleasant elation boosting user interactions.

User engagement beyond that we also introduced into big go lives.

Into the go live virtual background feature for Singur user live streaming rooms and employment.

<unk>.

Tell the system for branching on special user privileges in more multi user live streaming rooms.

All of these technology innovations have produced the encouraging result.

Average.

Karl Mueller to.

Duration of live streaming sessions increased the year over year.

12, 1% and eight 3% respectively in the fourth quarter.

To enhance our brand influence we continue to organize Sydney signature.

The signature events by leveraging the east, Tennessee with local lies the operational experience of our international talent. For example in January this year, we have the cost hit us.

<unk> live annual gala.

My team around the 100, the streamers from Verity all for culture backgrounds to.

Performs through video feeds in front of the a global sense during the annual gala through the <unk>.

Around the deep out of our recently launched.

Virtual live <unk> feature in collaboration with the toys.

Pi singer vivo live delivered brand new visual experience through.

At the same list.

<unk> operation of physical and virtual realities.

As is the tradition.

This annual event, we selected a big old lives most influential streamers of the year and feature to them.

Advertisements are bidding boards.

Famers landmarks around the world, including Times Square in New York and many more.

Going forward <unk> will continue executing is globalizing globalization strategy to enhance its leadership position in the social and the pen entertainment live streaming industry across the world.

It will continue to focus on key regions like North America, Europe and the.

Middle East and.

The Easter proceeds week well.

Our salary team investments in emerging markets <unk>, we will also continue to localize diversify.

Social content ecosystem with <unk>.

<unk> Hong content categories, such as the music dance card.

Comedy games and E Commerce.

The increase.

<unk> per share of <unk> <unk>.

Premium content too.

Elevated.

User expansion and engagement.

Meanwhile, through content and product innovation and localize the operations <unk> will seek to.

Construct.

Is interest space the online community as to how we use our established mall fulfilling social connections on the platform, we believe desire to diversify the content on the <unk>.

Positive social relationships on the platform will further enrich our users' social entertainment experience.

Check the mall user onto our community cultivate their spending habits and.

All she made.

Drive Big go lives monetization girls.

Next let me share some recent updates unlikely.

As discussed.

Our previous earning calls we have been fine tuned like key marketing strategy since the first quarter of 2021.

Prioritizing our investment in our content and social ecosystem also likely as overall <unk> experienced some short term.

Flush tuition tuitions as a result the reach.

$67 million.

The downward change.

Moderated a further jewelry in the fourth quarter, especially in the Gulf States in the Middle is the region.

Like is live streaming revenue continue to brew grill.

During the fourth quarter increasing by.

To 26, 5% year over year.

Revenue from the Middle East.

Increase the buy.

<unk> <unk>.

<unk> nine 1% year over year.

With our focus.

Identifying and cultivating talented content creators to where it is.

Comprehensive creator supports program likely continue its efforts on.

Efforts in.

Fostering a friendly and.

<unk> content creation community motivating.

By a series of incentive programs.

Number of certify the freezers likely increase the by 2022%. Consequently in the first quarter. The number also certify that creators for the gaming category.

Which are widely popular among general Z user increased by 100.

76 <unk> three.

3% Consequentially.

And as a reserve.

Energy also premium gaming content, they're produced per.

Per day increased by 97% Consequently.

As part of our.

Effort to cultivate a pump creatures likely roll out a series of upgrades.

The product features during the first quarter likely expand.

Implementation of our Super like future to broader user base, leading silver like to become a unique item for users to poverty klee endorse their favorite.

Salaries creditors and suppliers of premium content.

While certify the creatures received nearly six times mall.

The incentives <unk> <unk> feature in December <unk> of September .

Yeah.

In addition, we.

We introduced another field feature called the <unk> to enable creators to.

Publisher exclusive content for the <unk>.

Super followers via earning monthly subscription subscription fee.

All of these new feature provides the mall.

Diverse monetization channels to preachers in reach there in.

Interactions with FES and incentivize them to produce more individualized and the high quality content.

In 2022, we will continue to invest more resources.

In identifying and the new tree new training.

Talented treaters.

We will provide these creators across the various content.

Vertical with.

Bonding.

User traffic support.

Sufficient content accretion truce professional support for our local lines the operation teams and.

Dr Wise monetization Messrs to pave our path for the long term personal growth and career development, we believe <unk>.

<unk> content in the community and the.

Luckily interactions between features in a sense.

Continental to sustaining life cases monitor monetization rules and.

Reversing light user downward in the future.

In addition to a monetization via live streaming we are also steadily steering the rules of lag keeps brand advertising business and further diversifying into revenues.

Strange three.

Going forward we are.

Confident confident that like.

<unk> will be able to maintain its topline growth.

Trajectory further narrow is operation operation loss and gradually resuming.

User expansion over.

A long period of time.

Laughter huddle during the first quarter hardware continued monetization growth momentum.

<unk> live streaming revenue and paying user increase by 32, 1% and 33, 9% year over year, respectively, mainly drive driven by the optimizing of several fan engagement features and.

The launch of Neal couple features in AT&T in the.

Live streaming rooms.

Also.

Upgrade the harvest products to better satisfy the user demand for more cheap poll.

Players social interactions.

Considering the difference in user lives circles and user regions, we implement an app updates recommendation, our galleries algorithm for user to easy.

Kate their favorite last streaming enrollments as a result in the fourth quarter.

The penetration rates.

For <unk> future channels increased by two 2% sequentially.

Sequentially.

In 2020 to Hustle, we will continue to provide users with a better multi players interactive entertainment experience by optimizing its.

Product features and enhancing user matching capabilities and diversifying user interactions.

To culture in the inkjet space, the social entertainment and community.

We believe that we will continue to draw drive <unk> monetization growth further narrowed its operating loss and make further progress.

Path towards breakeven in 2022.

In summary in 2021 was fruitfully.

First full year for July .

<unk> enhanced our monetization capability across multi products helped us achieve full year revenue growth of 36, 5% the combination of our increased monetization for the.

From then.

Aforementioned products.

Proactive adjustment in market strategist bancshares synergy among multiple products and the enhanced operational efficiency across the board led us to full year profitability not only for <unk>, but also for the whole.

Growth.

On capital return front for the full year, our board of directors.

Has authorized additional share purchase program.

Greg.

Off.

One 2 billion.

As of all for December 31, 2021.

We have bounced back.

Accumulative.

$393 million of our shares.

236 billion of which was out of the $1 2 billion newly added purchase plan. Additionally, we have paid out a total of 160.

Million in dividends.

Efforts.

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

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

Looking ahead, we will continue to localize our diversified global social entertainment ecosystem expand our market reach and.

False fortify our leadership position in call center graphic regions.

As the innovator and pioneer we remain committed.

Community that our vision of bridging come in communications Amman people from all around the global and brings in a joyful and youthful experience.

This concludes my.

Prepared remarks, I will now turn the call to our general manager of finance actuarial for more detailed explanation of our financial results.

Hello, everyone.

Choice for mass General manager I'll talk about the financial results.

Since a majority of our revenues and expenses are now denominated in USD starting from January one.

One we have changed our reporting currency from renminbi.

Eldar to better illustrate our operational results.

Please note that the financial information on a non-GAAP financial information disclosed.

Earnings press release.

Predicted on a continuing operations basis unless.

Advice, specifically stated.

At the show above alive was substantially completed on February 'twenty, 'twenty, one with certain customer customary measures to be completed during the year.

Near future their historical financial results above alive.

The company's consolidated financial statements.

Continued operations accordingly.

Going from first quarter of <unk>.

During the fourth quarter of 2021.

Despite the recent volatility in the macro environment.

Chris <unk> due to COVID-19, and some depreciation of certain currencies against the U S dollar debt, partially offset our gross moment term.

Our business growth remains resilient.

Our total revenues for the first quarter increased by 16%.

Year over year to USD 663, 7 million from 506 to $8 2 million in the same period of 2020.

Primarily attributable to the highest monetization capabilities across multiple products.

<unk> <unk> <unk> and <unk>.

Yeah.

In particular, our <unk>.

<unk> revenues for the fourth quarter increased by 15% year over year to USD $629 million.

Other revenues in the first quarter increased by 53% to 42.

Got it.

Okay.

Cost of revenues for the first quarter increased by nine 6% year over year to address the 442 million.

Revenue sharing fees and content costs.

Chris to just the 295 pumps.

<unk> media is a fourth quarter from USD $254 two media in the same period of 2020 here rich.

Which was a land base increase in live streaming revenues.

Bandwidth costs decreased but trajectory 26 from <unk> 27 in the <unk>.

<unk> of 2020.

Primarily due to the.

Companies improved efficacy in bandwidth usage.

Partially offset by the increased bandwidth usage as a result of continued user base expansion of E coli.

Gross profit increased by 34, 2% year over year trajectory to 120, St five media.

Gross matter.

The fourth quarter up 20 by improved to 33, 7% from 29 <unk> per second user.

Same period of 2020.

Operating expenses for the fourth quarter Big Crisp to USD $158 two media from USD 251, 6 million due to the same period of 2020.

Among the operating expenses.

Sales and marketing expenses did create too.

Jackie.

<unk> and <unk> 6 million from USD, Mahindra and pocket $6 4 million due to disciplined spending on user.

Acquisition buyer advertisements for certain products, including likely and Hugo.

Through the combination of improved synergy among multiple products.

<unk> operating leverage and prudent marketing strategy, we continued to achieve a steady.

Pacer in profitability for both vehicles segment, both the entire group.

Our GAAP operating income for the fourth quarter was USD 68 pumps fixed media compared to a pretax.

Operating loss of USD.

<unk> Street punk HBV in the same period of 2020.

Operating income margin for the fourth quarter was 9% compared to operating loss margin of 14 point.

Sterling perfect in the same period, a percentage point here.

Our non-GAAP operating income for the first quarter.

Excludes share based compensation expenses.

Amortization of intangible assets from business acquisitions.

Impairment of goodwill and investments and a gain on disposal of subsidiaries and business.

Worth USD $83 5 million EBIT quarter compared to non-GAAP operating loss of USD 30 Street punk to media in the same period of 2020.

Our non-GAAP operating income margin for the fourth quarter was 12, 6% compared to non-GAAP operating loss margin of five.

8% in the prior year period.

GAAP net income from continuing continuing operations attributable to controlling interest of Joy is a full quarter of 2020 by was USD $73 2 million compared to net loss of USD 118.9.

<unk> needed in the same period of 2020.

Yeah.

Net income margin was 11% in the first quarter of 2020 by compared to a net loss of 29% is a corresponding periodic fintech.

At the group level, we continued to achieve a positive non-GAAP net income from continuing operations attributable to controlling interest of joy in the fourth quarter.

Our non-GAAP net income.

98, <unk> compared to non-GAAP net loss of USD 22.

<unk> portfolio in the same period of 2020.

We have growth non-GAAP net income margin was 14, 8% is the first quarter of 2021 compared to non-GAAP net loss margin of three 9%.

In the same period of 2020.

Notably <unk>.

Also continued to achieve a positive non-GAAP net income.

GAAP net income expanded to 100 and St <unk> media in the fourth quarter.

non-GAAP net income margin improved to 18% from non-GAAP net loss Moscow, 0.4% in the prior year period.

Now turning to our results for the full year of 2020, why our total net revenues increased by 36, 5% year over year to 262 billion.

Our net loss.

Attributable to come.

Petroleum and chairs of Joy for the full year 2021 .

The 115 9 million compared to <unk> 18.

$18 7 million in 2020.

We have obtained the first full year non-GAAP profitability at group level.

The consolidated while my life.

Our non-GAAP net income attributable to controlling interest in the common shareholders of joy for the full year of 2021 was USD $108 9 million.

Compared to non-GAAP net loss of USD <unk> 60 full media in 2020.

non-GAAP net income margin for the full year of 2020 by was four 2% compared to non-GAAP net loss margin of eight 6% in 2020.

This is <unk>.

Our quarterly dividend <unk> approved August 11, 2020, and on November six 2020 vigor be distributing a dividend of USD <unk> <unk> five <unk>.

As for the first quarter of 2020 by Richard.

Expected to be paid on April 29.

22 to shareholders of record as of the close of business on April 14 2022.

Okay.

Next.

Our execution of the share repurchase program.

<unk> September and November 2021 our board of directors has authorized additional share repurchase plans.

In which they occur.

Repurchase up to USD, one <unk> two <unk> of its shares in total.

As of December 31, 2021, the company had repurchased approximately USD $235 7 million.

Sure.

Under these programs.

This means that for the full year of 2021.

Both back.

Accumulative USD 393 million of our shares.

These efforts demonstrate our cafes.

Company's long term growth prospects.

Robert It's Eric.

Reward our shareholders.

Some support of the company.

Video continues to actively utilize share repurchases to create value for our shareholders.

Going forward, we will continue to further expand our global market rates cultivate our highly engaged user community and the highest of high quality content offerings.

Beginning in the second quarter of 2021 we had anticipated some negative impacts.

Their online social entertainment activities.

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

We expect average net revenues for the first quarter of 2022 to be between USD, 600, and a 1 million and USD $616 million.

Excluding the revenue contribution from <unk> in the same period.

Last year.

We currently have limited visibility surrounding the COVID-19 epidemic long term impacts on that.

Geopolitical uncertainties.

And the markets in which we operate.

Therefore, this forecast OLED reflects our current and preliminary views on the market and the op.

No conditions, which are subject.

Subject to change.

That concludes our prepared remarks a.

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

<unk>.

Sure.

Thank you we will now begin the question and answer session. If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced to.

So the convenience of everyone on the call. Please ask one question at a time.

If you wish to ask more questions. Please rejoin the queue.

Let's say when asking a question. Please state your question in Chinese first.

And then immediately repeat your question in English. Thank you.

Our first question comes from Alex <unk> at Morgan Stanley . Please go ahead.

Okay. That's helpful. Appreciate monotone so anyone as you can see on how the enc.

<unk>.

Juanita Anya.

<unk> and <unk>.

You got somewhat intrusive.

Thiago on T cell lineage I.

I think our margin outlook.

She TVT.

As you can see the woman margin dose Eagle alongside what she said.

Ms Cheng Cheng.

Yes.

Yeah.

While our core.

So most of the Holdco you talked about <unk> future.

Thanks management for taking my question. My first question is related to our revenue growth outlook in 2022.

So how are the major countries performance.

Doing what.

What's the outlook for 2022 and my second question is regarding our margins.

Margin in the last few quarters has been on an uptrend.

And from here onwards.

<unk> cost savings, we can continue to do and for the while by core segment and when can we see a breakeven points. Thank you very much.

Harsha has an inherent here.

The two.

<unk> seen a major change Orthohydrogen shebang.

Under the <unk>.

Helpful.

Sure.

<unk>.

Two zero.

Sure. So as you also don't you also he is.

So Egypt with avid <unk> and the.

<unk> is the Brazilian hydro <unk> <unk> Yodlee sweetener quota deliberative approval in EMEA, we also put on them.

<unk> mentioned that your dollars.

The change orders are the pioneers of behalf with other national or mineral Chinese Hydro channel 500, essentially with young with is really important to.

<unk> change or the <unk> home finance clear hurdle.

So it doesn't tie regulatory a harsher valuable sharp near term enrollment year will not that changeover in APR that emergency room.

Well try them onto the R&R nano, which is all of them are higher we agenda little Mega trends.

Versus our genome product.

I'll hop champions to gain.

It's Andrea Massaging that talk to net bulk Autopay may June .

Don't have any answer pulmonary artery products shipped to their children. It uses a tour time in general.

Yes.

<unk> like <unk> or <unk>.

As usual, Tom channel women, RDR and yet the QE either to get down on <unk>, well, maybe each year.

The R&R and MSR Danielle.

Turning off which will Joshua.

Central and <unk>.

Diesel the diesel the diesel auto versus a tonne type neon bulk or.

So on the Amazon <unk> hurdle R&M, we'll maybe see trends.

Issue for sure.

The June home product producer.

Thank you Alex for your question.

As the world.

The post pandemic.

The macro environment that we encounter has become of increased uncertainty and volatility on the one hand, you see that with multiple countries gradually lifting lockdown band.

It has been negative impact on users online social entertainment activity and on the other hand, the resurgence of COVID-19 in certain areas and increased uncertainty on the potential economic wells and together with the ongoing high inflation pressure across multiple regions, we do see we.

Consumer confidence and capacity.

Which has negative impact on user behavior.

Despite the above compact macro environments, we have achieved a 36, 5% revenue growth for the year 2021.

Indicate that our diversified globalization strategy, which focused on various numbers of different regions across the world.

And our diversified growth engine empowered by multiple social entertainment products.

It's enabling our global business to have greater resilience.

So looking forward to 2002, we will continue to execute the above mentioned <unk>, we expect to have a resilient and steady top line growth driven by multiple key regions, including Europe North America.

<unk> is specific in southeast Asia, and also find monetization growth across multiple products, including Eagle life.

<unk> and other products.

Now, we'd like to remind you that the current outlook for our first quarter 2020, Q do reflect some fluctuation related to seasonality of our business. So we expect our business squares to accelerate gradually in the second half of 'twenty.

So in terms of the latest growth trends for the key regions, we do see.

Promising trend and you at specific including countries like Japan, South Korea, Australia, and New Zealand and also like the Southeast Asia region key to be gained in Q4.

In 2022, we expect our business continue to be diversified among the above mentioned region. Thank you.

Alex Nihon negative in 2000, and the argument here with Aphrodite shop.

So I'm not going to deliver.

Our eco segment of Susannah junior impact vintage or other non-GAAP continue to lead <unk>, our non-GAAP as you continue to do so.

So not material.

Some fatigue could sushi to talking to you about an.

Yes from a few months.

Okay.

<unk> power.

Total rule <unk> Suzhou T cell company.

While my tissue boxes.

Yeah.

<unk>.

FICO segment.

Our <unk> segment in the June issue came up with our unions.

But if you sell to.

Our colleague optical live tissue biopsy <unk> Shapiro, our cheetah can be checked we were lucky.

Congrats issued so talk to him about GTA figures on how many chips with a total <unk>.

Do you think that somehow put some TV.

Good competitive with your with your infrastructure.

But we do try to tell you.

It should have been clearer kombucha noncontract increases Charlie Yes, Salto central.

R&D actually the Hangzhou and Suzhou.

Sushi also come down which is underpinning part of acoustic quick on your tissue, but that's what that future.

Yes.

Thank you and this is Alex Neil I'll take your second question.

As David just mentioned, we could the profitability of our global business.

Achieving a seven 8% on GAAP net profit margin for VITAS segment for the full year.

And also a four 2% non-GAAP net profit margin for the whole group in 2021. So this means that we have officially entered into a sustainable 12 states in 2022, we want to balance growth and <unk>.

And this means that on the one hand, we will seize the opportunity continue to invest and explore the global market and continue to increase the influence in market share of our products and on the other hand, we expect to remain profitable and steadily increase the profitability level of our business.

So specifically for <unk> segment on top of the non-GAAP net margin that we achieved in the year 'twenty. One we expect to continue to steadily improve because non-GAAP profitability for the full year in the year 'twenty two and this is based on the assumption that <unk> continues to maintain a relatively stable.

Level.

<unk> profitability, while the losses of other product lines, such as Nike are continuing to narrow.

In terms of.

Cost and expense margins.

The increase monetization across multiple products and the improvement.

Enhanced operational efficiency, we believe that cost savings could happen across various expense items.

And for the other segment.

Secondly, in our full year non-GAAP loss.

85% in the year 'twenty one 'twenty.

<unk> Q as the monetization of Pago and also other products continue to pick up.

<unk> non-GAAP net losses of this segment could be further narrowed in plenty king.

Thank you.

Next question.

Our next question comes from Thomas Chong of Jefferies. Please go ahead.

So I'm sorry, Paul I think if I need Chung.

You bet.

She outlined <unk>, albeit driven issue.

Hi, Ray gas economy, but I think I'm good.

Some other bank wallet.

But you guys have Mercury DJ that.

Yes, they've got seasonality.

Yeah.

Got it.

One last one.

<unk> life.

Right.

And that indeed.

Our people.

A couple of quick ones.

So just in the EBIT.

Sure.

While our digital <unk>.

Sydney being somewhat equal.

I didn't do it.

Thanks management for taking my questions. My first question is about the competitive landscape in overseas market, how should we ambition.

The changes in this year and how should we think about the seasonality.

Good question is about.

But the YY live transaction can management share about the progress as well as any contingency plan.

Any.

Strategies that can be shared are thank you.

Oh, just a credit union goods.

Suzanne activity because people will target since <unk>.

This year <unk> gone a year with general attorneys in Hawaii.

I will now touch on behalf was obviously looking well in Israel, which is a.

Along the year will look like.

No hotel yield Dodge and Johan <unk>, who will have the new England journal on a single quarter.

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<unk> <unk>.

Could you couldn't hire on one line in the foundry outlook, we allow them and those of a year ago.

<unk> also had a chance of logistical issues on our hydrogel for another strong year women in Shanghai <unk> hundred of the agenda.

The two loans, while millennial cohort G away, then we will power turnaround at <unk> <unk> versus <unk>.

No.

So going to <unk>, each and look at the ballpark help with Amazon.

Two women quite accommodating Jason those are the chico's onshore in the long run.

Thank you Andre.

<unk> now on the Chevron energy is a year, where the Jones will be Joshua while monthly our union to either Ginormous, usually generally eating the tas in a little while maybe.

<unk>.

Germany, we Joshua turnaround.

Alright. Thank you Thomas regarding your first question on the competitive landscape I'd share it might be it's multiple times in our previous earnings call it as well.

Just mentioned that our global business turned profitable in the year 'twenty, one and we have officially enter into a sustainable growth stage. So this means that under the current complex increasingly complex macro environment. This makes our business more resilient.

And allow us to gain additional competitive advantages on top of our already existing extensive global business presence and also our proven global clients operational capacity. So.

Now turning losses into profits means that we have more space and time to think and plan our business from a longer term development perspective.

We have said before there is still a lot of potential for the global social entertainment market, we believe that with discipline abundant cash flow and also with a healthy growth model, we will be better positioned to seize market opportunity and further increased our market share and influence of our multiple products.

And regarding our business seasonality.

We have to admit that the outbreak and the courage and the pandemic has actually disrupted the normal pattern from time to time and according to our limited observation of our business trends in the past the first half of the year is usually our lowest season and business.

<unk>, usually accelerate in the second half of the year.

What kind of outlook for our first quarter 2022 reflects such seasonality fluctuation.

We expect our business to accelerate gradually in the second half of 'twenty two.

Even though the clients due to the YY live and <unk>.

I think majority of hydrology enroll.

There's a whole she'll even the gene that Roger Holm nuclear country Shanghai.

<unk>.

And regarding your second question about the sale of our life. The deal is still ongoing.

Any update further information will be disclosed when it's client by applicable law. Thank you.

Next question Jamie.

Our next question comes from <unk> Zhang of China Renaissance. Please go ahead.

So David I'll Lindsay is actually.

So did you guys require somebody like you talked you don't just go into one year to go.

Thiago.

Oh My God.

Yes.

Chris I think.

Chip.

Patricia.

Oh sure.

Just to follow your opinion.

First of all yes, where they've got to have woke up more delta.

Thank you management for taking my question.

A couple of questions regarding IQ so what's the what are your.

Between.

Page 15 years under audit.

Sure.

Our expectation with a light monetization dos controlled manner and also.

And.

I would now like to turn Anthony our.

Our tool at the target for this year. Thank you.

Our houses in England TR quite like this.

Union elements don't they likely that whole balance related to hematology console launches of our tool and then those are the two funds LLC.

Congress or the module.

So and are likely to choose this horizontal well will be mortgages pudong singular Chico Chico's, a total nominally likely higher <unk> jaco nearer term goal fettuccine energy tubular showroom to the NDA.

Yes.

<unk> engineered the decrease or not.

So dialogue.

I'll talk about balance sheet. So it's a good time peanuts and promotional your general judge Anaconda drawn from Hydro <unk>.

Now, what's the likelihood you think on Congo.

Congo, Gerardo modules, a key region yet.

<unk> also launched <unk> light.

<unk> and Samsung.

Don't read <unk> annual to annual horizontal axis of the Eagle brand yet.

Sure if I'm gonna to the likelihood of iron mostly tissue tissue Truvada central European here solid tissue box shooters over an agenda.

So total hanmi in our monthly you can target the likelihood that over her ensure broader bulk auto loans that don't ask Shonda gotcha.

I'd like to.

No real change in Guangzhou, and Shanghai, Virginia.

Sudan Lasagna anytime in the total sales of women's IR nanometers see breakeven increasingly regime will show that.

Virtually all commercial challenges.

Meanwhile.

Regarding your first question about Nike as I just mentioned.

Our remarks in the year, one we took some proactive changes to Nike to adjust like Keith marketing strategy and focused on the identification and cultivation of content creation.

As a result, although like even though you did suffer some fluctuation after several quarters of executing the marketing adjustments <unk> has also achieved several key results in the past year, we see that likely is like any revenue has increased by nearly 100% and its operating loss.

For the full year were significantly narrow.

67% compared to the year of 2020, meaning that the product overall growth model has become much more healthier.

For 2022, we believe that likely will continue to invest more resources into identifying and nurturing the content creators, who believe that viper in content community and likely interaction between the pre interest in defense.

The mental too.

Sustaining like East monetization quest.

And also investing Nike user Gaelic now.

Now let trend in the future.

And in terms of monetization like you will continue to.

Increase the penetration rate up by training and improved its monetization efficiency in the year. So we expect to maintain steady monetization growth in the year 'twenty came.

In terms of its marketing strategy, we will continue to observe the performance of Nike in multiple markets, including the middle East and Southeast Asia and as user engagement level of retention and also content program in these markets.

At the right time, we might consider increasing investment.

The acquisition.

But we do expect Nike operating loss for the full year to be further narrows and will have the opportunity to be one step closer towards self sustainability.

We're going on amongst the feature will continue.

Another feature border solar Gen <unk> I understand that Youll Sotheby's sure by vendor with.

<unk>.

In the long haul.

And English.

<unk> Silver bowl follow them going on the pension we more I'm wondering hi, Joshua this is Jed.

The drought conditions.

Our future.

Rich astrological hustle.

Long, sometimes overdue <unk> model quite honestly somewhat warmer.

And about <unk> five elements.

<unk> <unk> bin.

Our 10-Q.

To ensure that pushed out in time and the Goldman Eurasia enormous easier.

And regarding your second question about non life changing revenue.

Our non live streaming revenue in year 'twenty, one increased 39.

Throughout the year accounting for five 4% of our total revenue mainly from our advertising and the membership subscription revenues.

Monetization contribution from the recently launched features such as like Keith <unk> follow are still very very small.

Primary focus at this stage it deal should provide additional support to our <unk>.

So as mentioned before in the previous quarter the growth of our advertising revenue is closely related to.

Our content pool, and also scale up our user base. So at this stage, we will prioritize the concentration of our content pool and our product alien.

And also steadily advancing our diversified monetization.

I believe that the newly introduced the latest.

<unk> features have demonstrated our efforts towards this direction.

Thank you.

Okay.

That's the end of our Q&A.

Thank you management I'll hand back to you for closing comments.

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

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Ladies and gentlemen, thank you for standing by and welcome to the jewelry, Inc. Fourth quarter and full year 2021 earnings call.

At this time all participants are in a listen only mode.

After the management's prepared remarks, there'll be a question and answer session.

I'd now like to hand, the conference over to your host today James Chi The company Senior manager of Investor Relations. Please go ahead James.

Thank you operator.

Hello, everyone welcome to join <unk> fourth quarter, and full year 2021 earnings conference call.

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

MS Ting, Li our CLO and Mr. Alex <unk>, 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 financial results and webcast of this conference call are available at IR <unk> 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 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 our chairman and CEO , Mr. David <unk> Li Please go ahead.

Yes.

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

Let me start the call with an overview of our first quarter results. We grew our total revenues by 16 16, 8% year over year to $663 7 million.

Specifically <unk> revenue increased by 30 points to year over year to $576 1 million. Meanwhile, we further improved our non-GAAP profitability at the group level when is.

<unk> the YY live.

We earned a non-GAAP net profit for <unk>.

98 points is $3 million and improved our non-GAAP net to <unk>.

<unk> two.

Four key points.

8%.

<unk> non-GAAP net profit expand to 103.

Three 5 million, while its non-GAAP net margin improved to 18%.

From eight 7% in the previous quarter.

As a result for the full year offer turn page on Q1, we generated.

Two points.

Six two.

<unk> six 2 billion in total revenue an increase of 36, 5% from 2020.

Notably we grow vehicles full year 2021 revenues by 30.

Four 1% to two point to three 2 billion.

Group level, our global business reached another.

Major milestone as we attended.

Full year non-GAAP profitability for the first time with a screw the YY live Hiving brew.

Books 100.

Eight 9 million in non-GAAP net profit with <unk>.

<unk>, 2% non-GAAP net margin.

This was mainly attributable to the two <unk> strong financial performance.

It has turned the profit has been profitable for the full year for the first time Biogen, reaching 100.

82 million in non-GAAP nonprofit with.

Cross bonding non-GAAP net margin of.

Seven 8%.

No look bike plenty to undo wise a year marked.

Marked by growth and strategic adapt patient.

And the breakthroughs.

Although gross from <unk>.

<unk> hundred one we continue to expand our revenue driven by our enhanced monetization capabilities across multiple social entertainment product.

Consequently for the full year of 2021 Big go lives revenue grew by 31 point to 3% license revenue grew by 97, 8% and <unk> revenue grew by four key.

554, 6%.

All contributing to the.

<unk>, 6.5% topline growth at group level.

On the strategic dedication Franck.

<unk>.

Proactive daily.

In <unk> <unk>.

<unk> strategic.

Rely magnets.

In early 2021, because we value the long term growth palace and business to the sustainability of our products, we made a surgeon and an adjustment to Nike and hognose marketing strategies.

Priorities the investment in our in their content and social ecosystems, which we believe are fundamental to the user experience and the long term competitive bid.

Compared to the competitiveness of our products.

After a few quarters of executing those an adjustment under a more prudent marketing strategy.

We are pleased to report a significant improvement in the monetization efficiency financial and operation operational health of these off lease.

As a result.

Substantially narrowed.

Operating losses, even though.

<unk> experience.

Feel short term.

Fluctuations.

The combination of the.

Increase.

The monetization of the.

Ah forming a more aforementioned.

Products, our proactive adjustments in marketing and strategy.

Growing synergy among our products.

Our enhanced operational efficiency across the broad has led us to import into breakthrough.

Enabling us to achieve full year profitability.

For our global business for the first time since the deconsolidation of YY live our healthy cash flows.

The amount of change that we have enter into <unk>.

Neil phase of sustainable development.

Following a positive operating.

Cash flow, all showing 17 $7.6 million in the third quarter, we generated another positive operating cash flow of 150.2 million in the fourth quarter.

Looking Mike we continue to achieve in Alere Q <unk>.

Breakthroughs.

Evidenced by our proven track record of in crew in.

<unk> developing and the monetization of our promos.

With.

Our existing global market presence.

Healthy cash flows and the sustainable growth momentum, we are completely confident in our future prospects as we continue to reinvent ourselves explore the global market increase our global market share.

Sure and the capture feature growth opportunities in the social entertainment in the industry.

Next let me share greater details of the progress we've made in each of our product lines during the first quarter license.

Let's start with the Big go lives our efforts include.

And cultivating a.

Diversify the global content ecosystem has been fruitful in expanding our product reach the big old lives.

<unk> grew the bi.

11, 9% year over year to certainly to upon 2 million in the first quarter.

Inspire.

Macro economy, uncertainties challenges posted by the <unk>.

Resurgence also Colgate Colgate of 19th and then some.

The expiry.

Depreciation of certain currencies against the U S dollar that's.

Partially offset our growth momentum.

Our business demands change here.

Silver really salience.

On a year over year basis.

We go lives live streaming revenue.

Paying users increased by 12.5% and 10, 3% respectively in the fourth quarter as we continue to make.

By the way with vivo lives growth trajectory in multiple.

Well, Brad sleek regions.

In particular, our revenues and the paying user from Europe increased by 42 upon 2% on the.

14.7% respectively.

<unk> revenues in the paying user from southeast Asia, and other emerging markets increased by 16 six.

6% under 24, 4%, respectively in the first quarter, we made additional progress in diversifying our content ecosystem in reaching our localize the content offerings, increasing our supply of premium content and improve.

<unk> user engagement in December <unk>.

2021 and the January .

2022, we hosted a series of online events in multiple regions across the global such as the Euro and the Middle East will be event featured many popular region No regional August museums singers and answers in addition to the region.

<unk> top live streamers.

To provide the user with.

Refreshing and.

Immersive the social experience, we launched the <unk> <unk> product features in the fourth quarter, incorporating computer vision virtual reality argumentative.

Argument here.

Allergy and then many other cutting edge technologies in December we introduced the brand new feature called <unk>.

Virtual live which enable our users to create to customers through these digital our us as virtual rather than.

And then patients and thats, a meter or their lifeblood, a movement and facial expressions.

Cameral.

Windstream streaming on Big Old line, we plan to upgrade the virtual live feature continuously in.

In the future to increase our user.

Pleasant elation boosting user interactions.

User engagement beyond that we also introduced into big go lives.

Into the go live virtual background future for Singur user live streaming rooms and employment.

<unk>.

Tab system for branching on special user privileges in more multi user live streaming rooms.

All of these technology innovations have produced encouraging.

Jean result.

<unk> and <unk>.

Karl Mueller team.

Duration of live streaming sessions increased the year over a year.

By 12, 1% and eight 3% respectively in the fourth quarter.

To enhance our brand influence we continue to organize Sydney Sydney.

<unk>.

The signature events by leveraging the east, Tennessee with local lines the operational experience of our international talent. For example in January this year, we have the horsetail.

<unk> live annual gala.

In <unk> around the 100, the streamers from their anti all for culture backgrounds to <unk>.

Performs through video feeds in France, and also the a global sense during the annual gala through the <unk>.

<unk> grown the devote of our recently launched.

Virtual live in <unk> I'll answer feature in collaboration with the toys.

Pi singer vivo live delivered brand new wheel experienced through.

At the same lease.

<unk> operation also physical and virtual realities.

As is the tradition all four.

This annual event, we selected the <unk> lives most influential streamers of the year and feature to them.

Advertisements are bidding boards.

Famers landmarks around the world, including Times Square in New York and many more.

Going forward <unk> will continue executing is globalizing globalization strategy to enhance its leadership position in the social and the Pan Entertainment live streaming industry across the world.

It will continue to focus on key regions like North America, Europe and the.

Middle East.

The eastern proceeds week well.

Our salary team investments in emerging markets <unk>. We will also continue to longhorn lives diversify is social content ecosystem with <unk>.

We'll host on content categories, such as the music dance Com.

Comedy games, and E Commerce, and a further increase.

Proportion of.

Premium content too.

Elevated.

User expansion and engagement.

Meanwhile, through content and product innovation and localize the operations <unk> will seek to.

Construct two inches two inches space the online community as to how we use our established mall fulfilling social connections on the platform, we believe desire to diversify the content.

Positive social relationships on the platform will further enrich our users' social entertainment experience.

Check the mall user onto our community cultivate there.

Spending habits and.

She made.

Drive vivo lives monetization growth.

Next let me share some recent updates are unlikely.

As discussed.

Our previous earning calls we have been fine tuned like key marketing strategies since the first quarter of 291 on the broader.

Prioritizing our investment in our content and social ecosystem also likely as overall <unk> experienced some short term.

Large Jewish tuitions as a result the reach.

Statements T $7 million.

The downward a chain.

Moderated a further during the fourth quarter, especially in the Gulf States in the Middle East region.

Lack of large streaming revenue continued to grew grow.

During the fourth quarter increasing by.

To 26, 5% year over year.

Revenue from the Middle East.

Increase the buy.

Five <unk>.

<unk> nine 1% year over year.

With a focus on.

Identifying and cultivating talented content creators to where it is.

Comprehensive creator Sowpods program likely continue its efforts on.

Efforts in.

Fostering a friendly and leverage content creation community motivating.

By a series of incentive programs the.

The number of certify the freezers, unlike increased by 2022%. Consequently in the first quarter. The number also certify the creators.

Gaming category.

Which are widely popular among general Z user increased by 100 or so.

76 <unk>.

3% Consequentially.

And as a reserve.

Energy also a premium gaming content, they're produced per.

Per day increased by 97% Consequently.

As part of our.

Effort to cultivate the NSO pump creatures likely roll out a series of upgrades.

The product features during the first quarter likely expand.

Implementation of our Super like future to a broader user base, leading silver like to become a unique item for users to poverty klee endorse their favorite.

Salaries creditors and suppliers of premium content.

Meanwhile.

Certify the creatures received nearly six times mall.

The incentives are thoroughly the Super lab feature in December <unk> of September .

In addition, we introduced another field feature called the <unk> to enable creators to.

Publisher exclusive content for the Super followers buyer, earning monthly subscription subscription fee.

Yeah.

All of these new feature provides the mall.

Diverse the monetization channels to preachers in reach there.

Interactions with FES and incentives then to produce small individualized and the high quality content.

In 2022, we will continue to invest more resources.

In identifying and the new tree new training.

LNG the Praetors.

We will provide these creators across the various content.

Vertical with abundant use.

Our traffic support.

Sufficient content accretion truce professional support for our local lines the operation teams and.

DIY is monetization matters to pave our path for the long term personal growth and career development, we believe <unk>.

<unk> content in the community and the.

Likely interactions between patients and incentives.

The mental to sustaining like user monetization.

Monetization growth.

Reversing <unk> user downward in the future.

In addition to monetization via live streaming we are also steadily steering the rules of lag Keith's brand advertising business and further diversifying into revenues.

Streams three.

Going forward we are.

Confidence confidence that line.

<unk> will be able to maintain its topline growth.

Trajectory further narrow is operation operation loss.

Naturally resuming.

User expansion over.

A long period of time.

Laughter hurdle during the first quarter hardware continued into monetization growth momentum.

<unk> live streaming revenue and the paying user increase by 32, 1% on the 33, 9% year over year, respectively, mainly driving driven by the optimizing of several.

Engagement features and.

Launch of Neal couple features in AT&T in the live streaming rooms, we also.

Upgrade of <unk> products to better.

Satisfy the user demand for more cheap hole.

Players social interactions.

Considering the difference in user live circles.

User regions, we implement an app updates recommendation, our galleries algorithm for user to easy.

Locate their favorite livestream enrollments as a result in the first quarter.

The penetration rates.

For <unk> future channels increased by two 2%.

Sequentially.

In 2020 to Hustle, we will continue to provide users with batra multi players interact Q entertainment experience by optimizing its.

Product features enhancing user matching capabilities and diversifying user interactions.

To culture and.

Inkjet space, the social entertainment community.

We believe that we will continue to draw drive <unk> monetization growth further narrowed its operating loss and make further progress on its path towards breakeven in 2022.

In summary, 2021 was fruitful.

First full year for July .

The enhanced our monetization have ability across multi products helpers achieved full year revenue growth of.

36, 5% the combination of our increased monetization for the.

<unk>.

Aforementioned products.

Proactive adjustments in marketing strategies banter synergy among multiple products and the enhanced the operation efficiency across the board led to full year profitability not only for <unk>, but also for the whole group.

No.

On capital return front for the full year, our board of directors.

Has authorized additional share purchase program a flaw.

Greg.

Off.

One 2 billion.

As of all for December 31, 2021.

We have bounced back.

Accumulative.

309 key $3 million of our shares.

236, many of which was out of the $1 2 billion newly added purchase plan. Additionally, we have paid out a total of 161.

In dividends.

<unk> efforts.

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

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

Looking ahead, we will continue to localize our diversified global social entertainment ecosystem expand our market reach and.

False fortify our leadership position in call center graphic regions.

Innovator and pioneer will remain.

Community that our vision of bridging.

Communications Amman people from all around the global and brings in a joyful and youthful experiences.

This concludes my.

Prepared remarks, I will now turn the call to our general manager of finance.

<unk> for a more detailed explanation of our financial results.

Hello, everyone.

Joy condensed general manager I'll talk about the financial results.

Since a majority of our revenues and expenses are now denominated in USD starting from January one 2021 we have changed our reporting currency from renminbi.

To better illustrate our operational results.

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

Presented on a continuing operations basis.

Unless otherwise specifically stated.

At the show above alive was substantially completed on February <unk> to 2021 with certain customer customary measures to be completed in the near future their historical financial results of Bob alive.

The company's consolidated financial statements as discontinued operations accordingly.

Starting from first quarter of 2020.

Okay.

During the fourth quarter of 2021.

Despite the recent volatility in the macro environment and increased <unk> due to COVID-19, and some depreciation of certain currencies against the U S dollar debt, partially offset our gross moment term.

Our business growth remains resilient.

Our total revenues for the first quarter increased by 16%.

<unk> year over year to USD, 600, and a 63 7 million from five.

506 to $8 2 million in the same period of 2020.

Primarily attributable to the highest monetization capabilities across multiple products, including <unk> <unk> and Hugo.

In particular, our live streaming revenues for the fourth quarter increased by 15% year over year to USD $629 million.

Other revenues in the first quarter increased by 53% to address the $42 8 million.

Cost of revenues for the first quarter increased by nine 6% year over year to address the $442 million.

Revenue sharing fees and content costs.

Increased to 295, plus <unk> media is a fourth quarter from USD $254 2 million in the same period of 2020.

This was a land base the increase in live streaming revenues.

Bandwidth costs decreased to $20 6 million from USD 27 million in the superiority of <unk> thousand 20 <unk>.

Primarily due to the company's improved efficacy.

Bandwidth usage.

Offset by the increased bandwidth usage as a result of continued user base expansion of E coli.

Gross profit increased by 34, 2% year over year trajectory to 120, St five media.

Mercury is a fourth quarter up 2020 by improved to 33, 7% from 29, 3% due to the same period of 2020.

Operating expenses for the fourth quarter decreased to USD $158 2 million from USD 251, 6 million due to the same period of 2020.

Among the operating expenses.

And market expenses decreased to.

Directly behind Europe in chart 6 million from USD, <unk>, <unk> and $46 4 million due to disciplined spending on user acquisition buyer advertisements for certain products, including likely and Hugo.

Through the combination of improved synergy among multiple product.

<unk> operating leverage and prudent marketing strategy.

We continued to achieve a steady pace in profitability for both vehicles segment at both the entire group.

Our GAAP operating income for the fourth quarter was USD $68 6 million compared to operating loss of USD.

83, <unk> in the same period of 2020.

Operating income margin for the fourth quarter was 9% compared to operating loss margin of 14 point.

7% in the same period of 2010 to you.

Our non-GAAP operating income for the first quarter with.

Excludes share based compensation expenses.

Amortization of intangible assets from business acquisitions.

Impairment of goodwill and investments and a gain on disposal of subsidiaries and business.

USD $83 5 million EBIT quarter compared to non-GAAP operating loss of USD $33 2 million in the same period of 2020.

Our non-GAAP operating income margin for the fourth quarter was 12, 6% compared to non-GAAP operating loss margin of five eight.

As a percent in the prior year period.

GAAP net income from continuing continuing operations attributable to controlling interest of joy in the fourth quarter of 2020 by was USD $73 2 million compared to net loss of USD <unk> 89.

<unk> needed in the same period of 2020.

Sure.

Net income margin was 11% in the first quarter of 2020 by compared to a net loss margin of 29% is a corresponding periodic attracted fintech.

At the group level, we continued to achieve a positive non-GAAP net income from continuing operations attributable to controlling interest of joy in the fourth quarter.

Our non-GAAP net income of USD 98, <unk> mediated <unk>.

GAAP to non-GAAP net loss of USD 22 portfolio in the same period of 2020.

We have growth non-GAAP net income margin was 14, 8% in the first quarter of 2021 compared to non-GAAP net loss margin of three 9% during the same period of 2020.

Notably <unk> also continued to achieve a positive non-GAAP net income.

non-GAAP net income expanded to 100 and street five media in the fourth quarter with.

non-GAAP net income margin improved to 18% from non-GAAP net loss Moscow Bureau, 0.4% the prior year period.

Now turning to our results for the full year of 2021, our total net revenues increased by 36, 5% year over year to USD 262 billion.

Our net loss.

Attributable to come too.

Total interest of Joy for the full year 2021 was USD 115 9 million compared to.

$18 7 million in 2020.

We have obtained the first full year non-GAAP profitability at group level.

The.

The consolidated while alive.

Our non-GAAP net income attributable to controlling interest and the company's shareholders of joy for the full year of 2021 was USD $108 9 million.

Compared to non-GAAP net loss of USD 164 million in 2020.

non-GAAP net income margin for the full year of 2020 by was four 2% compared to non-GAAP net loss margin of eight 6% in 2020.

Yes.

Our quarterly dividend Black approved on August 11, 2020, and on November six 2020 vigor be distributing a dividend of USD <unk> <unk> five <unk>.

For the first quarter of 2020 by rich.

Expected to be paid on April 29, 2022 to shareholders of record as of the close of business on April 22.

Next.

Our execution of the share repurchase program.

<unk> September and November 2021 our board of directors has authorized additional share repurchase plans.

<unk> the company.

Repurchase up to USD, one <unk> two <unk> of its shares in total.

As of December 31, 2021, the company had repurchased approximately USD $235 7 million.

Sure.

Its shares under these programs.

This means that for the full year of 2021.

Both back.

Accumulative USD 393 media of our shares.

These efforts demonstrate our comp days.

Company's long term growth prospects.

Average severity to reward our shareholders for their support of the company.

Video continues to actively utilize share repurchases to create value for our shareholders.

Going forward, we will continue to further expand our global market rates cultivate our highly engaged user community and the highest of high quality content offerings.

Beginning in the second quarter of 2021, we had anticipated some negative impacts.

Their online social entertainment activities.

From the gradual lift off and they make related lockdowns in certain countries.

We expect average net revenues for the first quarter of 2022 to be between USD $601 million and USD $616 million.

Excluding the revenue contributed from <unk> life in the same period of last year.

<unk> currently have limited visibility surrounding the COVID-19 epidemic long term impacts on the geopolitical uncertainties on our business and the markets in which we operate.

Therefore, this forecast OLED reflects our current and preliminary views on the market and operational conditions, which are subject to change.

That concludes our prepared remarks.

Later, we will now like to open up the call to questions. Thanks.

Thank you we will now begin the question and answer session. If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.

For the convenience of everyone on the call. Please ask one question at a time, if you wish to ask more questions. Please rejoin the queue.

I will say when asking a question. Please state your question in Chinese first.

And then immediately repeat your question in English. Thank you.

<unk>.

Our first question comes from Alex <unk> at Morgan Stanley . Please go ahead.

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Thanks management for taking my question. My first question is related to our revenue growth outlook in 2022.

So how are the major countries performance.

Doing what.

The outlook for 2022, and my second question is regarding our margins.

Margin in the last few quarters.

On an uptrend.

From here onwards.

<unk> cost savings, we can continue to do and for the while by core segment and when can we see a breakeven points. Thank you very much.

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Thank you Alex for your question.

As the world.

Post pandemic.

The macro environment that we encounter has become of increased uncertainty and volatility on the one hand, you see that with multiple countries gradually lifting lockdowns than it has been negative impact on users online social entertainment activity and on the other hand, the resurgence of COVID-19.

Certain areas and increased uncertainty on the potential economic wells and together with the ongoing high inflation pressure across multiple regions, we do see weakened consumer confidence and capacity.

<unk>, which has negative impact on user behavior.

Despite the above contacts macro environments, we have achieved a 36, 5% revenue growth for the year 2021.

Indicate that our diversified globalization strategy, which focused on various numbers of different regions across the world.

And our diversified growth engines empowered by multiple social entertainment products.

It's enabling our global business to have greater resilience.

So looking forward to 2002, we will continue to execute the above mentioned <unk>, we expect to have a resilient and steady top line growth driven by multiple key regions, including Europe North America.

<unk> is specific in southeast Asia, and also find monetization growth across multiple products, including Eagle life.

Hugo and other products.

Now, we'd like to remind you that the current outlook for our first quarter 2020, Q do reflect some fluctuation related to seasonality of our business. So we expect our business to accelerate gradually in the second half of 'twenty.

So in terms of the latest growth trends for the key regions, we do see.

Promising trend and you at specific including countries like Japan, South Korea, Australia, and New Zealand and also the Southeast Asia region key to be gained in Q4.

In 2022, we expect our business continue to be diversified among the above mentioned regions. Thank you.

Alex Nihon negative in 2000, and the argument here with Aphrodite shop.

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Thank you and this is Alex Neil I will take your second question.

As David just mentioned, we cleared the profitability of our global business.

Achieving a seven 8% on GAAP net profit margin for VITAS segment for the full year.

And also a four 2% non-GAAP net profit margin for the whole group in 2021. So this means that we have officially entered into a sustainable growth states in 2022, we want to balance growth and profit and this means that on the one hand, we will seize the opportunity continue to invest.

And explore the global market and continue to increase the influence in market share of our products and on the other hand, we expect to remain profitable and steadily increase the profitability level of our business.

So specifically for <unk> segment on top of the non-GAAP net margin that we achieved in the year 'twenty. One we expect to continue to steadily improve because non-GAAP profitability for the full year in the year 'twenty two and this is based on the assumption that <unk> continues to maintain a relatively stable.

Level.

<unk> profitability, while the losses of other product lines, such as Nike are continuing to narrow in terms of.

Cost and expense margins.

The increased monetization.

Multiple products and the improvement.

Enhanced operational efficiency, we believe that cost savings could happen across various expense items.

And for the other segment, we have successfully narrowed full year non-GAAP loss by 35% in the year 'twenty one.

20, Q as the monetization of Pago and also other products continue to pick up we expect that the non-GAAP net losses of this segment could be further narrowed in plenty king.

Thank you.

Yes.

Next question.

Our next question comes from Thomas Chong from Jefferies. Please go ahead.

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So it's in the EBIT.

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While our digital <unk>, Sydney being a mother.

I didn't do it.

Thanks management for taking my questions. My first question is about the competitive landscape in overseas market.

Our mission at <unk>.

Changes in this year and how should we think about the seasonality.

My second question is about.

But the YY live transaction.

Women share about the progress as well as any contingency plan.

Or any.

Yes.

Strategies that can be shared thank you.

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Alright. Thank you Thomas regarding your first question on the competitive landscape I'd share it might be used multiple times in our previous earnings content as well.

Just mentioned that our global business time profitable in the year 'twenty, one and we have officially enter into a sustainable growth stage. So this means that under the current complex increasingly complex macro environment. This makes our business more resilient.

And allow us to gain additional competitive advantages on top of our already existing extensive global business presence and also our proven global clients operational capacity.

Turning losses into profits means that we have more space and time to think and plan our business from a longer term development perspective.

We have said before there is Dr Patel.

Potential for the global Social Entertainment market, we believe that with discipline about bank and cash flow and also with a healthy growth model, we will be better position Casey's market opportunity and further increase the market share and influence of our multiple products and.

And regarding our business seasonality.

We have to admit that the outbreak and liquor Gen is that the pandemic has actually disrupted the normal pattern from time to time and according to our limited observation of our business trends in the past the first half of the year is usually our lowest season and business closed user.

<unk> accelerate in the second half of the year, the kind of outlook for our first quarter 2022 reflects such seasonality fluctuation.

We expect our business to accelerate gradually in the second half of 2010.

Even though the client while alive. This is John <unk> John .

<unk> has already enrolled the ruble neither wholesale leaving the gingiva as a whole and local country Shanghai with Iridium <unk>.

And regarding your second question about the sale of our life. The deal is still ongoing and if there is any update further information will be disclosed when it's client by applicable law. Thank you.

Next question Jamie.

Our next question comes from <unk> Zhang of China Renaissance. Please go ahead.

That's helpful.

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Chris I think.

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Patricia.

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What are you guys still won't get more buildup.

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I have couple questions, let's say regarding IQ So what's my luck.

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Sure.

Regarding your first question about Nike.

I just mentioned in the prepared remarks in the year 'twenty. One we took some proactive changes to Nike to adjust like Keith marketing strategy and focused on the identification and concentration of content creation.

As a result, although like even though you did suffer some fluctuation after several quarters of executing the marketing adjustments like he has also achieved several key results in the past year, we see that likely like any revenue has increased by nearly 100% and its operating loss.

For the full year was significantly narrow.

67% compared to the year of 2020.

Meaning that the product overall growth model has become much more healthier.

So for 2022, we believe it likely will continue to invest more resources into identifying and nurturing the content creators.

Leave that Viper in content community and likely interaction between the creators and defense fundamentals.

Sustaining like East monetization quest.

And also investing Nike user galik, our trend in the future.

And in terms of monetization like you will continue to increase the penetration rate applied Jamie and improved its monetization efficiency in the year to any case. So we expect to maintain steady monetization growth in the year 2000 and.

In terms of its marketing strategy, we will continue to observe the performance of Nike in multiple markets, including the middle East and Southeast Asia and its user engagement level of retention and also constant progress in these markets.

At the right time, we might consider increasing investment.