Q1 2026 JOYY Inc Earnings Call

May 26, 2026

Speaker #2: Ladies and gentlemen, thank you for standing by, and welcome to JOYY Inc.'s first quarter 2026 earnings call. At this time, all participants are in listen-only mode.

Operator: Ladies and gentlemen, thank you for standing by, welcome to JOYY Inc.'s Q1 2026 earnings call. At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be a question-and-answer session. I'd now like to hand the conference over to your host today, Jane Xie, the company's Senior Manager of Investor Relations. Please go ahead, Jane.

Speaker #2: After the management's prepared remarks, there will be a question-and-answer session. I'd now like to hand the conference over to your host today, Jane See, the company's Senior Manager of Investor Relations.

Speaker #2: Please go ahead, Jane.

Speaker #3: Thank you, Operator.

Jane Xie: Thank you, operator. Hello, everyone. Welcome to JOYY's Q1 2026 Earnings Conference Call. Joining us today are Ms. Ting Li, Chairperson and CEO of JOYY, and Mr. Alex Liu, the Vice President of Finance. For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session. The financial results and webcasts of this conference call are available at ir.joyy.com. A replay of this call will also be available on our website in a few hours. Before we continue, I would like to remind you that we may make forward-looking statements, including but not limited to the future development of our products and businesses, expected future financial performance of the company, our share repurchases, and other forefront future events, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations.

Speaker #4: Hello, everyone. Welcome to JOYY's first quarter 2026 earnings conference call. Joining us today are Ms. Ting Lee, Chairperson and CEO of JOYY, and Mr. Alex Liu, Vice President of Finance.

Speaker #4: For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session. The financial results and webcast of this conference call are available at ir.joyy.com.

Speaker #4: A replay of this call will also be available on our website in a few hours. Before we continue, I would like to remind you that we may make forward-looking statements, including but not limited to the future development of our products and businesses, expected future financial performance of the company, our share repurchases, and other potential future events, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations.

Jane Xie: Before we continue, I would like to remind you that we may make forward-looking statements, including but not limited to the future development of our products and businesses, expected future financial performance of the company, our share repurchases, and other forefront future events, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the SEC. We will also discuss certain non-GAAP financial measures that are included as additional clarifying items to aid investors in further understanding the company's performance and the impact that these items and events had on the financial results.

Speaker #4: For detailed discussions of the risk uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the SEC. We will also discuss certain non-GAAP financial measures that are included as additional clarifying items to aid investors in further understanding the company's performance and the impact that these items and events had on the financial results.

Jane Xie: For detailed discussions of the risks and uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the SEC. We will also discuss certain non-GAAP financial measures that are included as additional clarifying items to aid investors in further understanding the company's performance and the impact that these items and events had on the financial results. The non-GAAP financial measures provided above should not be considered as a substitute for or superior to the measures of the financial performance prepared in accordance with GAAP. You may find a reconciliation of the differences between GAAP and non-GAAP financial measures in our earnings release. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in US dollar. I would now turn the call over to our Chairperson and CEO, Ms. Ting Li. Please go ahead, Ms. Li.

Speaker #4: The non-GAAP financial measures provided above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Jane Xie: The non-GAAP financial measures provided above should not be considered as a substitute for or superior to the measures of the financial performance prepared in accordance with GAAP. You may find a reconciliation of the differences between GAAP and non-GAAP financial measures in our earnings release. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in US dollar. I would now turn the call over to our Chairperson and CEO, Ms. Ting Li. Please go ahead, Ms. Li.

Speaker #4: You may find a reconciliation of the differences between GAAP and non-GAAP financial measures in our earnings release. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in US dollars.

Speaker #4: I would now turn the call over to our Chairperson and CEO, Ms. Ting Lee. Please go ahead, Ms. Lee.

Speaker #5: Hello, everyone. I'm Lee Ting. Thank you for joining us today. I apologize, but I have caught a cold recently, and my voice is quite weak.

Ting Li: Hello, everyone. I'm Ting Li. Thank you for joining us today. Apologize, but I have gotten a cold recently, and my voice is quite weak. For efficiency of this meeting, I'm going to have our IR, Jane Xie, read through the prepared remarks for me. I'll be back to take your questions during the Q&A. Thank you for the understanding.

Ting Li: Hello, everyone. I'm Ting Li. Thank you for joining us today. Apologize, but I have gotten a cold recently, and my voice is quite weak. For efficiency of this meeting, I'm going to have our IR, Jane, read through the prepared remarks for me. I'll be back to take your questions during the Q&A. Thank you for the understanding.

Speaker #5: For efficiency, this meeting, I'm going to have our IR team read through the prepared remarks for me. I'll be back to take your questions during the Q&A.

Speaker #5: Thank you for the understanding.

Speaker #4: Thank you. As we enter 2026, our social entertainment business has returned to year-over-year growth, while our second growth curve, ad tech and smart commerce, is progressing with strong momentum.

Jane Xie: Thank you. As we enter 2026, our social entertainment business has returned to year-over-year growth, while our second growth curve, Ad Tech and Smart Commerce, is progressing with strong momentum. Our globally diversified ecosystem is taking shape with social entertainment, advertising, and smart commerce, fostering one another in a self-reinforcing strategic flywheel. This flywheel is propelling JOYY into its next phase of growth. Let me begin with an overview of our Q1 results. Total revenues reached $556 million, up 12.4% year-over-year, marking our strongest year-over-year growth rate in recent years. Social entertainment revenue was $400 million, up 3.2% year-over-year. BIGO Ads contributed $125 million, up 55.6% year-over-year, among which our third-party, BIGO Audience Network, delivered 78.8% year-over-year growth. Shopline revenue reached $31 million, up 16.1% year-over-year. Q1 non-GAAP operating profit and EBITDA reached $38 million and $46 million, up 22.5% and 13.2% year-over-year, respectively.

Speaker #4: Our globally diversified ecosystem is taking shape, with social entertainment, advertising, and smart commerce bolstering one another in a self-reinforcing strategic flywheel. This flywheel is propelling JOYY into its next phase of growth.

Speaker #4: Let me begin with an overview of our Q1 results. Total revenues reached $556 million, up 12.4% year-over-year, marking our strongest year-over-year growth rate in recent years.

Speaker #4: Social entertainment revenue was $400 million, up 3.2% year-over-year. Legal ads contributed $125 million, up 55.6% year-over-year, among which our third-party legal audience network delivered 78.8% year-over-year growth.

Speaker #4: Shopline revenue reached $31 million, up 16.1% year-over-year. Q1 non-GAAP operating profit and EBITDA reached $38 million and $46 million, up 22.5% and 13.2% year-over-year, respectively.

Jane Xie: Q1 non-GAAP operating profit and EBITDA reached $38 million and $46 million, up 22.5% and 13.2% year-over-year, respectively. Operating cash flow for the quarter was $46 million. As of 31 March 2026, we held over $3.18 billion in net cash. Our strong cash generation continues to support meaningful shareholder returns. Since the start of 2026, we have accelerated our buyback program. Through 22 May 2026, we have repurchased a cumulative $88 million in shares and paid $69 million in dividends for a total return of $157 million to shareholders. In light of our solid operational performance and robust balance sheet, the board has just approved an updated shareholder return program totaling $1.5 billion, under which we could repurchase up to $600 million worth of our shares and distribute approximately $900 million in dividends over the next three years.

Speaker #4: Operating cash flow for the quarter was $46 million as of March 31, 2026. We held more than $3.18 billion in net cash. Our strong cash generation continues to support meaningful shareholder returns.

Jane Xie: Operating cash flow for the quarter was $46 million. As of 31 March 2026, we held over $3.18 billion in net cash. Our strong cash generation continues to support meaningful shareholder returns. Since the start of 2026, we have accelerated our buyback program. Through 22 May 2026, we have repurchased a cumulative $88 million in shares and paid $69 million in dividends for a total return of $157 million to shareholders. In light of our solid operational performance and robust balance sheet, the board has just approved an updated shareholder return program totaling $1.5 billion, under which we could repurchase up to $600 million worth of our shares and distribute approximately $900 million in dividends over the next three years.

Speaker #4: Since the start of 2026, we have accelerated our buyback program. Through May 2026, we have repurchased a cumulative $88 million in shares and paid $69 million in dividends for a total return of $157 million to shareholders.

Speaker #4: In light of our solid operational performance and robust balance sheet, the board has just approved an updated shareholder return program totaling $1.5 billion, under which we could repurchase up to $600 million worth of our shares and distribute approximately $900 million in dividends over the next three years.

Speaker #4: This underscores our strong confidence in the long-term potential of the business and demonstrates our continued commitment to delivering sustainable value to our shareholders and enabling shareholders to benefit from our operational improvements.

Jane Xie: This underscores our strong confidence in the long-term potential of our business and demonstrates our continued commitment to delivering sustainable value to our shareholders and enabling shareholders to benefit from our operational improvements. This quarter marks the first quarter we are reporting results under our new three-segment structure, Social entertainment, BIGO Ads, and SHOPLINE. I'd like to take this opportunity to affirm our long-term strategic vision. We are building a global technology ecosystem driven by AI. This ecosystem is designed to unlock compounding returns from our data assets through the deep integration of Social entertainment, programmatic advertising, and omnichannel e-commerce, creating a self-reinforcing growth flywheel. Social entertainment is our foundational business, providing the user base, data assets, and cash flow that support the broader ecosystem.

Speaker #4: This quarter marks the first quarter we are reporting results under our new three-segment structure: Social Entertainment, Legal Ads, and Shopline. I'd like to take this opportunity to reaffirm our long-term strategic vision.

Speaker #4: We are building a global technology ecosystem driven by AI. This ecosystem is designed to unlock compounding returns from our data assets through the deintegration of social entertainment, programmatic advertising, and omnichannel e-commerce, creating a self-reinforcing growth flywheel.

Speaker #4: Social entertainment is our foundational business, providing the user base, data assets, and cash flow that support the broader ecosystem. By building a highly engaged global user community, we have accumulated a valuable first-party data asset and a scaled global traffic pool, supported by established technology infrastructure and localized operational networks across key markets.

Jane Xie: By building a highly engaged global user community, we have accumulated a valuable first-party data asset and a scaled global traffic pool, supported by established technology infrastructure and localized operational networks across key markets. Social entertainment underpins our cash flow generation and serves as the long-term anchor of the group. BIGO Ads accelerates our flywheel, strengthening our data and algo advantages. Through advanced predictive models and algo optimization, we convert traffic into measurable, scalable advertising ROI. Each iteration further enriches our data assets and deepens our algo moat, building a strong competitive advantage. SHOPLINE is the engine of our one-stop omnichannel e-commerce offering and provides merchants with open, connectable infrastructure that puts data ownership back in their hands. This control empowers them to maximize business performance across the full customer lifecycle. AI is the backbone of this entire ecosystem, seamlessly connecting our social data assets, algos, and e-commerce capabilities.

Speaker #4: Social entertainment underpins our cash flow generation and serves as the long-term anchor of the group. Legal ads accelerate our flywheel, strengthening our data and algo advantages.

Speaker #4: Through advanced predictive models and algorithm optimization, we convert traffic into measurable, scalable advertising ROI. Each iteration further enriches our data assets and deepens our algorithm moat, building more competitive advantage.

Speaker #4: Shopline is the engine of our one-stop omnichannel e-commerce offering, and provides merchants with open, connectable infrastructure that puts data ownership back in their hands.

Speaker #4: This control empowers them to maximize business performance across the full customer lifecycle. AI is the backbone of this entire ecosystem. Seamlessly connecting our social data assets, algos, and e-commerce capabilities, together these three pillars form a closed-loop system that deepens our economic moat and drives long-term value creation for JOYY.

Jane Xie: Together, these three pillars form a closed-loop system that deepens our economic moat and drives long-term value creation for JOYY. Now, let me walk through our Q1 performance and share our outlook on the future. In Q1, social entertainment revenue returned to year-over-year growth of 3.2%, with live streaming revenue up 2.4% year over year. Core live streaming paying users grew 5.9% year over year. On the traffic side, global average mobile MAUs reached 276 million, up 6.1% year over year and 1.5% QOQ. Driven by high user stickiness and fully organic growth, traffic from the instant messenger increased by 3.1% QOQ. For our flagship products, we improved our streamer incentive structure, launched targeted support programs for high-quality content categories, and integrated new AI capabilities. These initiatives drove ongoing gains in both content engagement and payment conversion. Streamer activity improved sequentially despite seasonal impacts.

Speaker #4: Now, let me walk through our Q1 performance and share our outlook on the future. In Q1, social entertainment revenue returned to year-over-year growth of 3.2%, with live streaming revenue up 2.4% year-over-year.

Speaker #4: Core live streaming paying users grew 5.9% year-over-year. On the traffic side, global average mobile MAU reached 276 million, up 6.1% year-over-year and 1.5% quarter-over-quarter.

Speaker #4: Driven by high user stickiness and fully organic growth, traffic from Instant Messenger increased by 3.1% quarter over quarter. For our flagship products, we improved our streamer incentive structure.

Speaker #4: We launched targeted support programs for high-quality content categories and integrated new AI capabilities. These initiatives drove ongoing gains in both content engagement and payment conversion.

Speaker #4: Streamer activity improved sequentially despite seasonal impacts. The number of active streamers increased 1.5% quarter-over-quarter, and average effective streaming hours per streamer rose 1.4% quarter-over-quarter. We have now fully rolled out our AI smart tools for streamers across key markets, meaningfully improving interaction efficiency.

Jane Xie: Number of active streamers increased 1.5% QOQ, and average effective streaming hours per streamer rose 1.4% QOQ. We have now fully rolled out our AI smart tools for streamers across key markets, meaningfully improving interaction efficiency. As of April, AI-generated interactive virtual gifts accounted for 34% of total virtual gift consumption on Bigo Live. Our new product lineup continued to gain traction, with revenue up over 500% year over year and 45% QOQ, setting new monthly revenue records. Our current Q2 guidance implies low- to mid-single-digit year-over-year growth for social entertainment revenue. Building on this momentum, we are confident that our social entertainment business will achieve full-year revenue growth in 2026 and sustain this positive trajectory going forward. Moving to Bigo Ads. In Q1, Bigo Ads generated $125 million in advertising revenue, up 65.6% year over year.

Speaker #4: As of April, AI-generated interactive virtual gifts accounted for 34% of total virtual gift consumption on legal lives. Our new product lineup continued to gain traction, with revenue up over 500% year-over-year and 45% quarter-over-quarter, setting new monthly revenue records.

Speaker #4: Our current Q2 guidance implies low-to-mid single-digit year-over-year growth for social entertainment revenue. Building on this momentum, we are confident that our social entertainment business will achieve full-year revenue growth in 2026 and sustain this positive trajectory going forward.

Speaker #4: Moving to Bego Ads. In Q1, Bego Ads generated $125 million in advertising revenue, up 55.6% year-over-year. Our third-party business, the Bego Audience Network, delivered 78.8% year-over-year growth.

Jane Xie: Our third-party business, the BIGO Audience Network, delivered 78.8% year over year, despite the seasonal softness of Q1. Broader traffic coverage, multi-vertical advertiser expansion, and ongoing algo optimization fueled this momentum. On the supply side, SDK traffic maintained strong growth, up 109% year over year and 7% QOQ in Q1. On the demand side, our strategic presence across multiple verticals, including lead generation, e-commerce, and IAA, drove an enrichment of our advertiser mix and enhanced ecosystem density. This multi-vertical approach not only accelerates data accumulation and algo iteration but also strengthens our traffic bidding capabilities. Notably, web-based demand, primarily from lead gen and e-commerce advertisers, grew 90% year over year and delivered positive sequential growth. Incremental spend from both new and existing advertisers fully offset the typical seasonal softness of Q1. IAA spending sustained 97% year-over-year growth. Geographically, we prioritize high-value developed markets.

Speaker #4: Despite the seasonal softness of Q1, broader traffic coverage, multi-vertical advertiser expansion, and ongoing algo optimization fueled this momentum. On the supply side, SDK traffic maintained strong growth, up 109% year-over-year and 7% quarter-over-quarter in Q1.

Speaker #4: On the demand side, our strategic presence across multiple verticals, including lead generation, e-commerce, and IAA, drove an enrichment of our advertiser mix and enhanced ecosystem density.

Speaker #4: This multi-vertical approach not only accelerated data accumulation and algo iteration, but also strengthened our traffic bidding capabilities. Notably, web-based demand, primarily from lead gen and e-commerce advertisers, grew 90% year-over-year and delivered positive sequential growth.

Speaker #4: Incremental spend from both new and existing advertisers fully offset the typical seasonal softness of Q1. IAA spending sustained 97% year-over-year growth. Geographically, we prioritized high-value developed markets. North America remains our largest market for Bego Ads, while Western Europe delivered notable momentum, with revenue up 27% quarter-over-quarter.

Jane Xie: North America remains our largest market for BIGO Ads, while Western Europe delivered notable momentum, with revenue up 27% QOQ. On the algo side, we are carefully and prudently scaling our computing infrastructure and strengthening our R&D talent base. By integrating data feedback from advertisers across channels and leveraging the dual growth of traffic scale and advertiser density, we have built a rich behavioral data layer. This enables multidimensional precise user profiling and real-time model iteration, which in turn improves ad delivery efficiency. The fact that we are seeing positive feedback across multiple verticals validates the generalization capabilities of our model framework. As our data scale accelerates and the vertical-specific models mature, we expect our algo flywheel will increasingly serve as the primary engine of our revenue growth going forward. We reiterate our strategic commitment to reaching $1 billion in BIGO Audience Network revenue by 2028.

Speaker #4: On the algo side, we are steadily and prudently scaling our computing infrastructure and strengthening our R&D talent base. By integrating data feedback from advertisers across channels and leveraging the dual growth of traffic scale and advertiser density, we have built a rich behavioral data layer.

Speaker #4: This enables multi-dimensional, precise user profiling and real-time model iteration, which in turn improves ad delivery efficiency. The fact that we are seeing positive feedback across multiple verticals validates the generalization capabilities of our model framework.

Speaker #4: As our data scale accelerates and the vertical-specific models mature, we expect our algo flywheel will increasingly serve as the primary engine of our revenue growth going forward.

Speaker #4: We reiterate our strategic commitment to reaching $1 billion in Bego Audience Networks revenue by 2028. As our third-party advertising business continues to scale, we expect a steady structural improvement in profitability.

Jane Xie: As our third-party advertising business continues to scale, we expect a steady structural improvement in profitability. Turning to SHOPLINE, this is the Q1 we're reporting SHOPLINE as a standalone segment. This decision to do so now reflects our belief that SHOPLINE has reached a critical mass in terms of its importance to the group, and that SHOPLINE will become an increasingly meaningful contributor to our growth going forward. As global commerce enters the omnichannel era, merchants increasingly desire autonomy and full final data ownership. We have built SHOPLINE as AI-native, one-stop omnichannel e-commerce infrastructure. What we offer merchants is not simply a storefront building tool and a fully open connectable retail operating system. Through deep integration with payments, logistics, and marketing modules, we empower merchants across every stage of their journey, from store setup and transactions to fulfillment and full lifecycle customer retention.

Speaker #4: Turning to Shopline, this is the first quarter we're reporting Shopline as a standalone segment. The decision to do so now reflects our belief that Shopline has reached a critical milestone in terms of its importance to the group, and that Shopline will become an increasingly meaningful contributor to our growth going forward.

Speaker #4: As global commerce enters the omnichannel era, merchants increasingly desire autonomy and full-funnel data ownership. We have built Shopline as an AI-native, one-stop omnichannel e-commerce infrastructure.

Speaker #4: What we offer merchants is not simply a storefront-building tool, but a fully open, connectable retail operating system. Through deep integration with payments, logistics, and marketing modules, we empower merchants across every stage of their journey, from store setup and transactions to fulfillment and full lifecycle customer retention.

Speaker #4: Globally, very few vendors are capable of delivering this kind of OS-level closed-loop solution. We are also accelerating the integration of a suite of AI-powered capabilities.

Jane Xie: Globally, very few vendors are capable of delivering this kind of OS-level closed-loop solution. We are also accelerating the integration of a suite of AI-powered capabilities, tools which drive Shopline's ongoing evolution from an enablement tool to an AI-driven commerce engine to represent a fundamental shift in how merchants operate. AI-powered traffic allocation and automated decision-making will unlock new growth opportunities and new levels of precision across omnichannel retail. On monetization, beyond high-retention subscription fees, we generate revenues through transaction-based value-added services, payment, and marketing. These reflect a fundamental distinction from traditional seat-based software tools. This monetization model, deeply aligned with merchants' full lifecycle growth, will fuel Shopline's ongoing accelerating performance. Q1 is traditionally a slow season for e-commerce, yet Shopline delivered solid results. Revenue was $31 million, up 16.1% year-over-year, with gross margin expanding further to 51.5%.

Speaker #4: The tools will drive Shopline's ongoing evolution from an enablement tool to an AI-driven commerce engine, a representative fundamental shift in how merchants operate. AI-powered traffic allocation and automated decision-making will unlock new growth opportunities and new levels of precision across omnichannel retail.

Speaker #4: On monetization, beyond high-retention subscription fees, we generate revenue through transaction-based value-added services and payment and marketing. These reflect a fundamental distinction from traditional seat-based software tools.

Speaker #4: This monetization model deeply aligns with merchants' full lifecycle growth and will fuel Shopline's ongoing, accelerating performance. Q1 is traditionally a slow season for e-commerce, yet Shopline delivered solid results.

Speaker #4: Revenue was $31 million, up 16.1% year-over-year, with gross margin expanding further to 51.5%. Revenue growth from cross-border merchants remained robust, sustaining over 60% year-over-year growth.

Jane Xie: Revenue growth from cross-border merchants remained robust, sustaining over 60% year over year growth. Our Q2 guidance implies Shopline's revenue growth accelerating to above 25% year over year in Q2. These meaningful progress marks Shopline's transition from incubation to a phase of scaled growth. Propelled by accelerated revenue and gross profit growth, Shopline is on a clear and visible path to achieve breakeven by 2028. Additionally, as BIGO Ads makes steady progress in the DTC e-commerce vertical and moves past its cold starting phase, we anticipate increasingly tangible synergies between these two businesses going forward. These mark a crucial long-term strategic objective of JOYY, and we are committed to solid execution to unlock this untapped potential. Finally, in summary, our strategic layout and the unlocking of our ecosystem's value remain in their early stages.

Speaker #4: Our Q2 guidance implies Shopline's revenue growth accelerating to above 25% year-over-year in Q2. These meaningful progress marks Shopline's transition from incubation to a phase of scaled growth.

Speaker #4: Propelled by accelerated revenue and gross profit growth, Shopline is on a clear and visible path to achieve break-even by 2028. Additionally, as Bego Ads makes steady progress in the DTC e-commerce vertical and moves past its code-stock phase, we anticipate increasingly tangible synergies between these two businesses going forward.

Speaker #4: These mark a crucial long-term strategic objective of JOYY, and we are committed to solid execution to unlock this untapped potential. Finally, in summary, our strategic layout and the unlocking of our ecosystem's value remain in their early stages.

Speaker #4: Looking ahead, we expect our three business segments to generate stronger structural synergy, further deepening our competitive moat and driving JOYY's long-term value to its next level.

Jane Xie: Looking ahead, we expect our three business segments to generate stronger structural synergy, further deepening our competitive moat and driving JOYY's long-term values to its next level. With that, I will now hand the call over to Alex Liu, our Vice President of Finance, to walk you through our financial results in detail.

Speaker #4: With that, I will now hand the call over to Alex Liu, our Vice President of Finance, to walk you through our financial results in detail.

Speaker #2: Thanks, Misty and Jay. Hello, everyone. Beginning this quarter, we are reporting Social Entertainment, Bigo Ads, and Shopline as standalone segments. This reflects a strategic inflection point.

Alex Liu: Thanks, Ms. Li and Jane Xie. Hello, everyone. Beginning this quarter, we are reporting social entertainment, BIGO Ads, and SHOPLINE as standalone segments. This reflects a strategic inflection point. BIGO Ads and SHOPLINE have evolved from incubation projects into scalable growth engines. Let's turn to a financial overview of the quarter. In Q1 2026, we recorded total net revenues of $555.7 million, securing a year-over-year growth of 12.4%. Our strongest year-over-year growth rate in recent years. Our non-GAAP EBITDA for the quarter was $45.7 million. Our operating cash flow was $46 million in Q1, and we ended the quarter with roughly $3.18 billion in net cash. As previously communicated, we accelerated share buyback since the onset into 2026, buying back $87.9 million worth of our shares as of 22 May.

Speaker #2: Bego Ads and Shopline have evolved from incubation projects into scalable growth engines. Now, let's turn to the financial overview of the quarter. In the first quarter of 2026, we recorded total net revenues of $555.7 million.

Speaker #2: Securing a year-over-year growth of 12.4%—our strongest year-over-year growth rate in recent years. Our non-GAAP EBITDA for the quarter was $45.7 million. Our operating cash flow was $46 million in Q1, and we ended the quarter with roughly $3.18 billion in net cash.

Speaker #2: As previously communicated, we accelerated the share buyback since we entered into 2026, buying back 87.9 million of our shares as of May 22. In light of our solid operational performance and robust balance sheet, we have just announced an updated shareholder return program.

Alex Liu: In light of our solid operational performance and robust balance sheet, we have just announced an updated shareholder return program totaling $1.5 billion, in which we could repurchase up to $600 million worth of our shares and distribute up to $900 million in dividends over the next three years. This represents a 67% expansion from the previous program, showing our strong confidence in the company's long-term prospects. I will now dive deeper into our detailed financial performance. Social entertainment revenues were $400.4 million for Q1, delivering its first year-over-year recovery of 3.2% year-over-year. In particular, live streaming revenues retained 2.4% year-over-year growth. This marks an inflection point and a result of the strategic adjustments we executed over the past several quarters. Total streaming paying users increased by 5.9% year-over-year, while live streaming revenues from developed countries increased by 11.2% year-over-year.

Speaker #2: Totally, $1.5 billion. And with which we could repurchase up to $600 million worth of our shares and distribute up to $900 million in dividends over the next three years.

Speaker #2: With representing a 67% expense from the previous program, showing our strong confidence in the company's long-term prospects. I will now dive deeper into our detailed financial performance.

Speaker #2: Social entertainment revenues were $400.4 million for the first quarter, delivering its first year-over-year recovery of 3.2%. In particular, live streaming revenues retained a 2.4% year-over-year growth.

Speaker #2: This marks an inflection point and is a result of the strategic adjustments we have executed over the past several quarters. Call live streaming paying users increased by 5.9% year-over-year, while live streaming revenues from developed countries increased by 11.2% year-over-year.

Speaker #2: Bego Ads continued to deliver exceptional growth, with its revenue up by 55.6% year-over-year to $124.8 million. In particular, our share party ads revenue—Bego Audience Network—delivered outstanding results.

Alex Liu: BIGO Ads continued to deliver exceptional growth, with its revenue up by 55.6% year-over-year to $124.8 million. In particular, our third-party Edge revenue, BIGO Audience Network, delivered outstanding results, recording 78.8% revenue growth year-over-year. On the traffic front, SDK network and request was up by 109% year-over-year and 7% QOQ in Q1. Our multi-industry strategy has helped us capture growing market opportunities. Web-based demand was up by 90% year-over-year, mobile-based demand continued to be strong, with IAA spending up by 97% year-over-year. We are right on track to achieve our three-year strategic goal for BIGO Audience Network, which is maintaining high velocity growth and reaching the three-year revenue milestone of $1 billion. While we are prudently investing in the expansion of our R&D and tools capabilities as well as our network and computing infrastructure, Audience Network economics remain healthy.

Speaker #2: Recording 78.8% revenue growth year-over-year. On the traffic front, SDK network and request was up by 109% year-over-year and 7% quarter-over-quarter in Q1.

Speaker #2: Our multi-industry strategy has helped us capture broadened market opportunities. Web-based demand was up by 90% year-over-year. Mobile-based demand continued to be strong, with RAA spending up by 97% year-over-year.

Speaker #2: We are right on track to achieve our three-year strategic goal for Bego Audience Network. This is maintaining high-velocity growth and reaching the three-year revenue milestone of $1 billion.

Speaker #2: While we are prudently investing in the expensive for our R&D and shows capabilities, as well as our network and computing infrastructure, audience networks economics remain healthy.

Speaker #2: We are confident that as we scale, we will remain profitable and potentially further enhance Audience Network’s economics in the midterm. Shopline kicked off its debut quarter, generating revenue of $30.5 million.

Alex Liu: We are confident that as we scale, we will remain profitable and potentially further enhance Audience Network economics in the mid-term. Shopline kicked off its busiest quarter, generating revenue of $30.5 million, delivering a 16.1% year-over-year revenue growth. Cross-border merchants revenue was up by 66%, with its revenue contribution up by 8% compared to Q1 last year. We expect cross-border merchants revenue to maintain a high velocity growth going forward, while margin revenue contribution from this merchant segment will lead to gradual acceleration of Shopline's overall revenue growth. Group's gross profit was $189.3 million in the quarter, with a gross margin of 34.1%. Bigo Live gross margin was down quarter-on-quarter due to a shift in our revenue mix, which saw an increased contribution from our lower-margin network ad revenues.

Speaker #2: Delivering a 16.1% year-over-year revenue growth. Cross-border merchant revenue was up by 66%. With its revenue contribution up by 8% compared to Q1 last year, we expect cross-border merchant revenue to maintain a high-velocity growth going forward.

Speaker #2: While launching revenue contribution from this merchant segment will lead to greater acceleration of Shopline's overall revenue growth, the Group's gross profit was $189.3 million in the quarter.

Speaker #2: With a gross margin of 34.1%. Bigo Ads gross margin was down quarter over quarter due to a shift in our revenue mix, with Shopline's increased contribution from our lower margin network ad revenues.

Speaker #2: Shopline's gross margin was up by 6.8 percentage points year-over-year to 51.5%, primarily due to growth in high margin subscription revenues as well as improving gross margin for its value-added service revenues.

Alex Liu: Supply's gross margin was up by 6.8 percentage points year-over-year to 51.5%, primarily due to growth in high-margin subscription revenues as well as improving gross margin for its value-added service revenues. Our group's operating expenses for the quarter were $183.4 million. Sales and marketing expenses were higher year-over-year, consistent with revenue increase. G&A expenses were also higher year-over-year, primarily due to increased share-based compensation expenses. Non-GAAP operating income for the quarter was $38 million. Non-GAAP net income attributable to controlling interest of JOYY in the quarter was $55.9 million. The group's non-GAAP net income margin was 10.1% in the quarter. Our non-GAAP net income was lower due to higher FX loss of $13.6 million due to the weakening US dollar. Excluding the impact of FX losses, our non-GAAP net income was $69.5 million, up by 8.7% year-over-year.

Speaker #2: Our group's operating expenses for the quarter were $183.4 million. Shows and marketing expenses were higher year-over-year, consistent with the revenue increase. G&A expenses were also higher year-over-year, primarily due to increased share-based compensation expenses.

Speaker #2: Our group's non-gas operating income for the quarter was $38 million. Non-gas net income attributable to controlling interest of JOYY in the quarter was $55.9 million.

Speaker #2: The group's non-gas net income margin was 10.1% in the quarter. Our non-gas net income was lower due to a higher FX loss of $13.6 million, due to the weakening US dollar.

Speaker #2: Excluding the impact of FX losses, our non-gas net income was $69.5 million, up by 8.7% year-over-year. For the first quarter of 2026, we booked net cash inflows from operating activities of $46 million.

Alex Liu: For Q1 of 2026, we booked net cash inflows from operating activities of $46 million. Our balance sheet remains healthy with a strong net cash position of $3.18 billion as of 31 March 2026. As of mid-2022, we have returned $156.8 million to our shareholders through dividends and share buybacks. Our accelerated share buybacks in the past quarters and the newly introduced three-year shareholder return program reaffirms our previous statement. Shareholder return has been and will continue to be an important component of our capital allocation strategy. We will remain focused on delivering strong results, actively executing our new programs, and enable our shareholders to benefit from our operational improvements. Turning now to our business outlook. At group level, we expect our net revenues for Q2 of 2026 to be between $562 million and $581 million.

Speaker #2: Our balance sheet remains healthy with a strong net cash position of $3.18 billion as of March 31, 2026. As of May 22, we have returned $156.8 million to our shareholders through dividends and share buyback.

Speaker #2: Our accelerated share buybacks in the past quarters and the newly introduced three-year shareholder return program reaffirm our previous statement. Shareholder return has been and will continue to be an important component of our capital allocation strategy.

Speaker #2: We will remain focused on delivering strong results, actively executing our new programs, and enabling our shareholders to benefit from our operational improvements. Turning now to our business outlook.

Speaker #2: At a group level, we expect our net revenues for the second quarter of 2026 to be between $562 million and $581 million. This implies a 10.7% to 14.4% year-over-year growth for the group's revenue.

Alex Liu: This implies a 10.7% to 14.4% year-over-year growth for the group's revenue. The Social Entertainment sustained a positive growth year-over-year. BIGO Ads made double-digit growth, while supply growth accelerating in Q2. To summarize, Q1 2026 marks a pivotal milestone for JOYY. We have delivered our strongest year-over-year revenue growth in recent years, realigned our reporting structure to meet our strategic priorities, and accelerated our commitment to capital returns through enhanced buybacks. Looking ahead, we are extremely excited about the tremendous synergy potential and the powerful flywheel momentum that our business segments will deliver in medium to longer. That concludes our prepared remarks. Operator, we would now like to open up the call to questions. Thanks.

Speaker #2: With social entertainment sustaining positive growth year-over-year, Bigo Ads delivered double-digit growth, while Shopline's growth accelerated in the second quarter. To summarize, Q1 2026 marks a pivotal milestone for JOYY.

Speaker #2: We have delivered our strongest year-over-year revenue growth in recent years, realigned our reporting structure to match our strategic priorities, and accelerated our commitment to capital returns through enhanced buybacks.

Speaker #2: Looking ahead, we are extremely excited about the tremendous synergy potential and the powerful flywheel momentum that our business segments will deliver in the medium to long term.

Speaker #2: That concludes our prepared remarks. Up next, we would now like to open up the call to questions. Thanks.

Speaker #1: Thank you. If you wish to ask a question, please press star one (*) on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two (*2).

Operator: Thank you. When asking a question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. Your first question comes from Thomas Chong with Jefferies. Please go ahead.

Speaker #1: If you're on a speakerphone, please pick up the handset to ask your question. When asking a question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call.

Speaker #1: Your first question comes from Thomas Chong with Jefferies. Please go ahead.

Speaker #2: 谢谢你接受我的提问。我们看到这一次是公司首次按照社交娱乐广告技术还有Shopline这三个业务板块披露我们的业绩。我们看到在社交娱乐业务下的直播的收入在Q1也实现了同比的正增长。可否再进一步说一下这一个复苏的是否可以持续，这个第一。第二的话，管理层可否分享一下我们26年全年各个业务线的收入还有利润的指引。Hi, good morning。Thanks management for taking my question. My first question is that this is the first time the company disclosed its performance in three business segments namely social entertainment, Bego Ads, and Shopline.

Thomas Chong: Hi, good morning. Thanks, management, for taking my question. My first question is that this is the first time the company disclosed its performance in 3 business segments, namely Social Entertainment, Bigo S, and Shopline. For Social Entertainment, live streaming revenue achieved a positive year-on-year growth in Q1. Can management further elaborate whether this is a sustainable recovery? My second question is about our full year outlook. Can management comment about our 2026 revenue and profit guidance for each business line this year? Thank you.

Speaker #2: So, for social entertainment, live streaming revenue achieved a positive year-on-year growth in Q1. Can management further elaborate on whether this is a sustainable recovery? And my second question is about our full-year outlook.

Speaker #2: Can management comment about our 2026 revenue and profit guidance for each business line this year? Thank you.

Ting Li: Thank you, Thomas. 修复发挥着作用。一季度本应该是主播开播的淡季，但我们仍然实现了有效开播主播数和人均有效开播时长的环比正增长。优质的内容品类，比如音乐主播的开播人数也获得大幅度的上涨。在整体的内容供应和主播能动性的提升的基础上，我们继续推动了精细化的用户分层运营和激励体系升级，并通过AI等多个环节的赋能，改善了内容分发和付费体验。这些改善也进一步推动了付费转化率的提升，以及核心直播付费用户增长了近6%。在新产品的矩阵方面，一季度也取得了显著的进展，同比增幅超过500%，收入持续创新高，为社交娱乐整体增长持续贡献了增量。目前来看，二季度指引预示社交娱乐收入同比增速将较第一季度进一步加速。基于这一势头，我们对2026年直播收入实现稳健正增长充满信心。

Speaker #3: 谢谢Thomas。第一个问题会由我来回答。一季度正如此前所预期的，我们的社交娱乐的收入同比涨了3.2%。其中直播收入同比涨了2.4%。正式回归到了同比正增长的轨道。其实自24年下半年以来推动的一系列的调整，尤其是主播激励机制的调整，持续对直播生态的修复发挥着作用。一季度本应该是主播开播的淡季，但我们仍然实现了有效开播主播数和人均有效开播时长的环比正增长。优质的内容品类，比如音乐主播的开播人数也获得大幅度的上涨。在整体的内容供应和主播能动性的提升的基础上，我们继续推动了精细化的用户分层运营和激励体系升级。并通过AI等多个环节的赋能，改善了内容分发和付费体验。这些改善也进一步推动了付费转化率的提升以及核心直播付费用户增长了近6%。在新产品的矩阵方面，一季度也取得了显著的进展，同比增幅超过500%。收入持续创新高。为社交娱乐整体增长持续贡献了增量。目前来看，二季度指引预示社交娱乐收入同比增速将较第一季度进一步加速。基于这一势头，我们对2026年直播收入实现稳健正增长充满信心。

Speaker #1: Thank you, Thomas. This is Lizzy. I will answer your question. So for the first question, first of all, in Q1, as expected, our social entertainment revenue was up by 3.2% year-over-year, with live streaming revenue up 2.4% year-over-year, returning to positive year-over-year growth trajectory.

Jane Xie: Thank you, Thomas. This is Ms. Li. I will answer your question. For the first question, for Q1, as expected, our social entertainment revenue was up by 3.2% year-over-year, with live streaming revenue up 2.4% on year-over-year, returning to a positive year-over-year growth trajectory. We have been executing a series of structural enhancements since H2 2024, particularly with our streamer incentive mechanisms. These, we believe, have continued to strengthen our live streaming ecosystem. Despite Q1 typically being a slow season for streamer activity, we still achieved a sequential increase in the number of active streamers and also the average effective streaming hours per streamer. Notably, the music streamers, which is one of our key quality content genre, also saw a meaningful uptick in streamer participation.

Speaker #1: Well, we have been executing a series of structural enhancements since the second half of 2024, particularly with our streamer incentive mechanisms. And these, we believe, have continued to strengthen our live streaming ecosystem.

Speaker #1: Despite Q1 typically being a low season for streamer activity, we still achieved a sequential increase in the number of active streamers and also the average effective streaming hours per streamer.

Speaker #1: Notably, the music streamers, which is one of our key quality content genres, also saw a meaningful uptick in streamer participation. Building on the improved content supply and streamer engagement, we continue to refine our user segmentation and also upgrade our tiered paying user benefit system.

Jane Xie: Building on the improved content supply and streamer engagement, we continue to refine our user segmentation and also upgrade our tiered paying user benefits systems. Combined with AI-driven optimizations on content distribution and also payment experience, these efforts drove further improvement in paying conversion, with core live streaming paying users growing nearly 6% year over year. Our new product lineup also continued to gain traction in Q1, with revenue up over 500%, setting new monthly records and contributing incremental revenue to Social Entertainment. Looking ahead, our current Q2 guidance implies a low to mid single-digit year over year growth for Social Entertainment revenue, which represent an acceleration from Q1. Building on this momentum, we are confident that live streaming revenue and also Social Entertainment revenue will achieve steady positive growth in 2026.

Speaker #1: Combined with AI-driven optimization on content distribution and also payment experience, these efforts drove further improvement in paying conversion, with core live streaming paying users growing nearly 6% year-over-year.

Speaker #1: Our new product lineup also continued to gain traction in Q1, with revenue up over 500%, selling new monthly records, and contributing incremental revenue to social entertainment.

Speaker #1: Looking ahead, our current Q2 guidance implies a low-to-mid single-digit year-over-year growth for social entertainment revenue, which represents an acceleration from Q1. Building on this momentum, we are confident that live streaming revenue, as well as social entertainment revenue, will achieve steady positive growth in 2026.

Speaker #4: Hey, Thomas. With Alex,我来回答一下您的第二个问题。展望26年的二季度，我们目前给予市场的集团收入指引是实现同比10.7到10.4的一个增长。那分业务线来看的话，社交娱乐的业务，我们预计二季度的收入会实现一个个位数的同比增长。那么Bego Ads的话，将延续强劲的表现，实现一个中双位数的同比增长。Shopline二季度的营收的同比增速会提升到25%以上。展望全年的话，我们预期社交娱乐实现同比稳健的增长。Bego Ads方面，随着流量规模持续的扩张，多垂类广告组的覆盖加分，以及我们算法模型的不断迭代优化，对应效应将推动Bego Ads全年保持强劲的中双位数的同比增长。Shopline方面，跨境商户快速渗透以及新市场的拓展，我们预期Shopline业务也将维持两位数的营收增长。那么随着三条业务线均进入到上升通道，我们对2026年集团的全年收入实现正增长是充满了信心的。经营利润方面的话，展望二季度，随着各业务板块收入的环比增长，我们预期集团经营利润也获得环比的增长。全年来看，社交娱乐业务在直播业务重新回归增长的同时呢，直播整体的利润将保持平稳或小幅的增长。Bego Ads的三方广告目前处于一个高速扩张的阶段，今年我们会在研发、在销售团队的建设，以及资源设施上进行持续不断的投入。但考虑到当前阶段优异的模型已经非常的健康，我们有信心在保持盈利的基础上，随着规模的进一步提升，中期盈利能力有望持续的增强。那么对于Shopline来讲的话，运营费用是相对固定的，在收入和毛利增长的驱动下，相信亏损可以持续不断的收窄。所以综合来看，我们预计26年集团Non-GAAP经营利润和EBITDA将延续25年的改善趋势，实现同比Teams的稳步提升。当然，在净利润的层面上，我们想就外汇损益的科目进行一个补充解释。由于美元兑人民币汇率的持续贬值，我们一季度已经预期二季度会有比较大额的未实现的一个汇兑损失，Unrealized FX Loss。对，但这部分其实是和经营不相关的，是属于一个浮动的盈亏，在美元升值的时候又会产生未实现的一个汇兑收益。对。

Alex Liu: Thomas，你好，我是Alex，我来回答一下您的第二个问题。展望2026年的二季度，我们目前给予市场的集团收入指引是实现同比10.7%到14.4%的增长。分业务线来看的话，社交娱乐的业务我们预计二季度的收入会实现一个个位数的同比增长。那么Bigo Live将延续强劲的表现，实现一个中双位数的同比增长。超话二季度的营收的同比增速会提升到25%以上。展望全年的话，我们预期社交娱乐实现同比稳健的增长。Bigo Live方面，随着流量规模持续的扩大，多维广告主的覆盖加深，以及我们算法模型的不断迭代优化，这个效应将推动Bigo Live全年保持强劲的中双位数的同比增长。超话方面，跨业务相互快速渗透以及新市场的拓展，我们预期超话的业务也将维持两位数的营收增长。那么随着三条业务线均进入到上升通道，我们对2026年集团的全年收入实现正增长是充满了信心的。经营利润方面的话，二季度随着各业务板块收入的环比增长，我们预期集团经营利润也获得环比的增长。全年来看，社交娱乐业务在直播业务重新回归增长的同时，直播整体的利润将保持平稳或小幅的增长。Bigo Live的第三方广告目前处于一个高速扩张的阶段，今年我们会在研发、在销售团队的建设以及基础设施上进行持续不断的投入。但考虑到当前阶段的unit economics模型已经非常的健康，我们有信心在保持盈利的基础上，随着规模的进一步提升，中期盈利能力有望持续地增强。那么对超话来讲的话，运营费用是相对固定的，在收入和毛利增长的驱动下，相信亏损可以持续不断地收窄。所以综合来看，我们预计2026年集团non-GAAP经营利润会更大，将延续2025年的改善趋势，实现同比近10%的稳步提升。

Alex Liu: 在净利润的层面上，我们产生外汇损益的，可我进行一个补充解释。由于美元对人民币汇率的持续贬值，我们一季度以及二季度会有比较大额的未实现的一个汇兑损失unrealized FX loss。但这部分其实是和经营不相关的，是属于一个浮动的盈亏，在美元升值的时候又会产生未实现的一个汇兑收益。对。

Speaker #1: This is Alex. I will take your second question. So for Q2, our current guidance implies 10.7% to 14.4% year-over-year growth for our group revenue.

Jane Xie: This is Alex. I will take your second question. For Q2, our current guidance implies 10.7% to 14.4% year-over-year growth for our group revenue. By segment, we expect Social Entertainment to deliver a low to mid single-digit year-over-year growth. BIGO Ads to sustain mid double-digit year-over-year growth, and Shopline's revenue growth to accelerate to about 25% year-over-year. For the full year of 2026, we expect Social Entertainment to deliver steady year-over-year growth rate. For BIGO Ads, with continued traffic expansion, deepening multi-vertical advertising coverage, and ongoing algo optimization, we expect a strong mid-double-digit year-over-year growth for the full year. For Shopline, with accelerating cross-border merchant penetration and also new market expansion, we expect it to sustain double-digit revenue growth.

Speaker #1: By segment, we expect social entertainment to deliver low- to mid-single-digit year-over-year growth. Bigo Ads to sustain mid-double-digit year-over-year growth, and Shopline's revenue growth to accelerate to about 25% year-over-year.

Speaker #1: For the full year of 2026, we expect social entertainment to deliver a steady year-over-year growth rate for Bigo Ads, with continued traffic expansion, deepening multi-vertical advertising coverage, and ongoing algorithm optimization. We expect a strong mid–double-digit year-over-year growth for the full year.

Speaker #1: For Shopline, with accelerating cross-border merchant penetration and also new market expansion, we expect it to sustain double-digit revenue growth. With all three segments now entering into an upward trajectory, we are confident that the group will deliver solid, positive revenue growth for the full year of 2026.

Jane Xie: With all three segments now entering into an upward trajectory, we are confident that the group will deliver positive solid revenue growth for the full year of 2026. Turning to operating profit, for Q2, we expect sequential improvement in the group operating profit in line with our QoQ revenue growth across all segments. For the full year, on Social Entertainment side, with live streaming revenue back to growth, we expect live streaming profit to remain stable or grow modestly. For BIGO Ads, our BIGO Audience Network is rapidly scaling, and we will need to continue to invest in R&D, sales, and also our network infrastructure. Given the healthy economics of the BIGO Audience Network at this stage, we are confident that as we scale, we will remain profitable, and we expect to see further improvement in its economics over the medium term.

Speaker #1: Turning to operating profit, for Q2, we expect sequential improvement in the group operating profit in line with our QOQ revenue growth across all segments.

Speaker #1: For the full year, on the social entertainment side, with live streaming revenue back to growth, we expect live streaming profit to remain stable or grow modestly.

Speaker #1: For Bego Ads, our audience network is rapidly scaling, and we will need to continue to invest in R&D, sales, and also our network infrastructure.

Speaker #1: But given the healthy economics of the audience network at this stage, we are confident that as we scale, we will remain profitable, and we expect to see further improvement in its economics over the medium term.

Speaker #1: For Shopline, with its operating expenses relatively fixed, on revenue and gross profit growth, we'll drive continued narrowing of its operating losses. Overall speaking, we expect the group's non-GAAP operating profit and EBITDA to continue the improving trend that we achieved in '25, delivering a steady team's year-over-year growth in 2026.

Jane Xie: For SHOPLINE, with its operating expenses relatively fixed, our revenue and gross profit growth will drive continued narrowing of its operating losses. Overall speaking, we expect the group's non-GAAP operating profit and EBITDA to continue the improving trend that we achieved in 2025, delivering a steady teens year over year growth in 2026. At the net profit level, I do want to provide some additional context on FX fluctuations. Due to the continued weakening of the US dollar against RMB, we recorded significant unrealized FX losses in Q1 and we expect similar impact from FX in Q2. However, we'd like to remind you that these are non-operational mark to market fluctuations, so when the dollar strengthens, they will be reversed. Next question please.

Speaker #1: At a net profit level, I do want to provide some additional context on FX fluctuations. Due to the continued weakening of the US dollar against the RMB, we recorded significant unrealized FX losses in Q1, and we expect a similar impact from FX in Q2.

Speaker #1: However, we'd like to remind you that these are non-operational, mark-to-market fluctuations, so when the dollar strengthens, they will be reversed. Next question, please.

Speaker #2: Thank you. Your next question comes from CC Cheng with CLSA. Please go ahead.

Operator: Thank you. Your next question comes from Phoebe Chen with CLSA. Please go ahead.

Operator: Thank you. Your next question comes from Cici Cheng with CLSA. Please go ahead.

Speaker #3: Hey, hey, Guan Yicheng.感谢接受我的提问，然后也恭喜公司强劲业绩。其实我想再追问一下，就是关于广告业务方面，因为我们一季度的话一般是一个传统的淡季，但是Bego Ads它的表现是明显好于预期的。然后请问这个核心的驱动力是什么？另外呢，就是目前公司已经接入了像Max啊，然后还有Level Play这两大头部的聚合平台，能不能再介绍一下我们目前跟其他的聚合平台的合作进展，以及对业务有什么潜在的影响？谢谢。

Phoebe Chen: 管理层感谢接受我的提问，然后也恭喜公司强劲业绩。其实我想再追问一下，关于广告业务方面，因为我们一季度的话一般是一个传统的淡季，但是Bigo Ads它的表现是明显好于预期的，请问这个核心的驱动力是什么？另外，目前公司已经接入了像Meta然后还有LevelPlay这两大头部的聚合平台，能不能再介绍一下我们目前跟其他的聚合平台的合作进展，以及对业务有什么潜在影响？谢谢。

Cici Cheng: 管理层感谢接受我的提问，然后也恭喜公司强劲业绩。其实我想再追问一下，关于广告业务方面，因为我们一季度的话一般是一个传统的淡季，但是Bigo Ads它的表现是明显好于预期的，请问这个核心的驱动力是什么？另外，目前公司已经接入了像Meta然后还有LevelPlay这两大头部的聚合平台，能不能再介绍一下我们目前跟其他的聚合平台的合作进展，以及对业务有什么潜在影响？谢谢。

Speaker #4: 哦，谢谢您的问题。那这个问题会继续由我来回答。在一季度，Bego Ads实现了同比增长55.6%，其中三方广告平台同比增长了78.8%。环比也实现了微增，整体的表现是好于预期的。核心的驱动力会来自以下几个方面：第一，多元垂类的战略布局成效显现；凭借着在线索收集、D2C的电商、IAA等垂类的深刻的根源，一季度的外部端的预算同比增长了90.1%；环比也逆势取得了正增长；IAA的预算同比增长了97%。这是我们在传统淡季能够交出好于预期的成绩单的核心原因。第二个方面，算法的能力的持续取得的升级。通过持续推动广告全渠道的数据回传，叠加了AI模型的标签，更全面的用户行为数据，我们实现了用户画像的聚合迭代。显著提升了平台上的广告分发效率。此外，我们还完成了中台模型的框架升级，根据不同广告的特性对模型进行有针对性的升级迭代。并针对线索、IAA、独立站电商等多垂类进行了专项优化，提高了算法效率。在数据的积累和算法迭代的作用下，流量触达和变现效率持续提升。广告主的留存和平均投放预算增加，形成了飞轮效应。那接下来我们还是会持续优化迭代算法模型。从效果上看，多垂类行业的正向反馈已经验证了中台模型框架的泛化能力。随着数据规模的加速积累和垂类模型的持续精细化，算法飞轮效应正在加速释放，将逐步成为下个阶段、下半年乃至明年广告收入增长的主要引擎。关于流量侧，我们还在积极的推进和投入聚合平台的合作。那目前有一个合作项目已经进入了内测的阶段。我们预计将在2026年内完成正式对接。我们预期在正式接入后，将帮助广告主在全球范围内触达更广泛的优质流量，进一步提升我们的流量覆盖深度和广度，为飞轮效应注入新的加速力。我们对Bego Ads的三方广告业务持续保持高速增长，非常有信心。

Ting Li: 谢谢你的问题，这个问题会继续由我来回答。在一季度，Bigo Ads实现了同比增长55.6%，其中三方广告平台同比增长了78%，环比也实现了微增，整体的表现是好于预期的。核心的驱动力会来自以下几个方面。第一，多元垂类的战略布局初见成效。凭借着在线索收集、D2C的电商、IAA等垂类的深刻的根源，一季度的Web端预算同比增长了90.1%，环比也逆势取得了正增长，IAA的预算同比增长了97%，这是我们在传统淡季能够交出好于预期的成绩单的核心原因。第二个方面，算法的能力的持续升级。通过持续推动广告全渠道的数据回传，叠加了AI模型标签与更全面的用户行为数据，我们实现了用户画像的聚合迭代，显著提升了平台上的广告分发效率。此外，我们还完成了中台模型的框架升级，根据不同广告的特性，对模型进行有针对性的升级迭代，并针对线索、IAA、独立站电商等多垂类进行了专项优化，提高了算法效率。在数据的积累和算法迭代的作用下，流量触达和变现效率持续提升，广告主的留存和平均投放预算增加，形成了正反馈效应。接下来我们还是会持续优化迭代算法模型。从效果上看，多垂类行业的正向反馈已经验证了中台模型框架的泛化能力。随着数据规模的加速积累和垂类模型的持续精细化，算法飞轮效应正在加速释放，将逐步成为下个阶段，下半年乃至明年广告收入增长的主要引擎。关于流量侧，我们还在积极地推进和头部汽车品牌的合作。目前有一个合作项目已经进入了内测的阶段，我们预计将在2026年内完成正式对接。我们预期在正式接入后，将帮助广告主在全球范围内触达更广泛的优质流量，进一步提升我们的流量覆盖深度和广度，为飞轮效应注入新的加速力。我们对Bigo Ads的三方广告业务持续保持高速增长非常有信心。

Speaker #1: Thank you, CC. This is Li Qing. I will take your question. In Q1, Bego Ads delivered 55.6% year-over-year growth, with third-party Bego Audience Network growing by 78.8% year-over-year, and also delivering a modest positive sequential growth.

Jane Xie: Thank you, this is Liping. I will take your question. In Q1, BIGO has delivered a 65.6% year-over-year growth, with third-party BIGO Audience Network growing by 78.8% year-over-year, and also delivering a modest positive sequential growth. The overall performance was ahead of our expectations, and I would attribute it to the following key drivers. First of all, our multi-vertical strategy is definitely delivering clear results, leveraging our established capabilities in lead generation, direct-to-customer, e-commerce, and also IAA. Our web-based demand grew by 90% year-over-year in Q1 and delivered positive sequential growth despite Q1 being a slow season. IAA demand grew by 97%, and this was the primary reason that we were able to deliver better than expected results during Q1. Secondly, the continuous upgrade of our algo capabilities.

Speaker #1: The overall performance was ahead of our expectations, and I would attribute it to the following key drivers. First of all, our multi-vertical strategy is definitely delivering clear results, leveraging our established capabilities in lead generation, direct-to-customer e-commerce, and also IAA.

Speaker #1: Our web-based demand grew by 90% year-over-year in Q1, and delivered positive sequential growth despite Q1 being a slow season. IAA demand grew by 97%, and this was the primary reason that we were able to deliver better-than-expected results during Q1.

Speaker #1: Secondly, the continuous upgrade of our algo capabilities. We have been driving broader cross-channel data feedback from advertisers, combined with AI-powered labeling and richer user behavioral data.

Jane Xie: We have been driving broader cross-channel data feedback from advertisers, combined with AI-powered labeling and richer user behavioral data, which significantly enhance our user profiling and ad delivery efficiency on the platform. We've also completed a framework upgrade to our core predictive model with specialized optimizations across each IAA and e-commerce verticals. As data accumulates and algo iterates, we are seeing sustained improvements in monetization efficiency with higher advertiser retention and also a growing average spend per advertiser, forming a self-reinforcing effect. Going forward, we will continue to optimize and iterate our algo models. The positive results that we have already achieved across multiple verticals have validated the generalization capability of our model framework.

Speaker #1: This significantly enhanced our user profiling and ad delivery efficiency on the platform. We've also completed a framework upgrade to our core predictive model, with specialized optimizations across lead gen, IAA, and e-commerce.

Speaker #1: Verticals. As data accumulates and the algorithm iterates, we are seeing sustained improvements in monetization efficiency, with higher advertiser retention and also growing average spend per advertiser, forming a self-reinforcing effect.

Speaker #1: Going forward, we will continue to optimize and iterate our algo models. The positive result that we have already achieved across multiple verticals has validated the generalization capability of our model framework.

Speaker #1: As data continue to accumulate at an accelerating pace, and vertical-specific models continue to mature, the algo flywheel is gaining momentum, and we expect it to increasingly serve as the primary engine for our advertiser revenue growth in the following stage, particularly in the second half and even beyond.

Jane Xie: As data continue to accumulate at an accelerating pace and vertical-specific models continue to mature, the algo flywheel is gaining momentum, we expect it to increasingly serve as the primary engine for our advertiser revenue growth in the following stage, particularly in H2 and also even beyond. Regarding your question on mediation partnerships, on traffic side, we are actively advancing integrations with industry-leading mediation platforms. One of our partnership has already entered the beta-testing phase, we expect to complete our official integration within 2026. Once live, it will enable advertisers to reach a broader pool of high-quality traffic globally, further expanding our traffic coverage in depth and breadth, injecting new momentum into the flywheel. We have very strong confidence in sustaining rapid growth for BIGO Audience Network. Thank you. Next question, please.

Speaker #1: Regarding a question on mediation partnerships on the traffic side, we're actively advancing integrations with industry-leading mediation platforms. One of our partnerships has already entered the beta testing phase, and we expect to complete official integration within 2026.

Speaker #1: One slide, it will enable advertisers to reach a broader pool of high-quality traffic globally, further expanding our traffic coverage in depth and breadth, and injecting new momentum into the flywheel.

Speaker #1: We have very strong confidence in sustaining rapid growth for Bigo Audience Network. Thank you. Next question, please.

Speaker #3: Thank you. Your next question comes from Rafael Chen with BOCI Research. Please go ahead.

Operator: Thank you. Next question comes from Raphael Chen with BOCI Research. Please go ahead.

Speaker #4: CC, regarding transition of the Q1. 公司场景的一个业绩。留意到 Shopline 首次进行单独披露，能否请管理层分享近年进展及扭亏的路径。Thanks management for the opportunity to ask question. Noticing that Shopline made its first noticing that Shopline made its first standalone disclosure.

Raphael Chen: 谢谢管理层接受我的提问。公司长江产业的一级市场。留意到 Shopline 最近进行单独披露，能否请管理层分享经营进展及扭亏的路径？Thanks management for the opportunity to ask question. Noticing that Shopline made its first standalone disclosure, could management elaborate more insights on the latest business updates and the path to greater profitability? Thank you.

Speaker #4: Could management elaborate more insights on the latest business updates and the past break-even and profitability? Thank you.

Speaker #5: 谢谢你的问题。那这个问题会继续由我来回答。是的，这是我们第一次把 Shopline 作为一个独立板块来披露。刚才在讲稿中我们也有提到，Shopline 的定位是以 AI 为底层的一站式全渠道电商基础设施。我们做的不是一个简单的线上工具，而是一套开放、可扩展的全渠道零售操作系统。这里把支付、物流、营销都深度地集成在了一起，让商家在一个平台上完成从建站、交易、履约，到用户获取和全生命周期留存的所有环节。在全球范围内，能提供这种操作系统级别闭环方案的服务商非常有限。从收入模式来看，Shopline 构建了高粘性订阅费基石，加高爆发增值的差异化商业变现模式。一方面，稳健的订阅成为了底层入口，积累了商家的基础，形成了经常性的收入；另一方面，Shopline 通过高速增长的支付、营销等增值服务，实现了对交易闭环的深度渗透和 GMV 变现。这种与商家全链路成长深度绑定的变现模式，将成为驱动 Shopline 业绩持续爆发的引擎。我们的商户群体可以分为本对本和跨境商户两大部分。以品牌大客户为主导的跨境商户收入自去年以来保持了高速增长，目前我们主要投入的研发费用已经趋稳。收入和毛利的提升都带来了经营杠杆效应。Shopline 的亏损在大幅收窄，随着收入和毛利规模的加速提升，我们有信心，也会全力推进 Shopline 在 2028 年实现盈亏平衡。

Ting Li: 谢谢你的问题，这个问题会继续由我来回答。是的，这是我们第一次把Shopline作为一个独立板块来披露。刚才在讲稿中我们有提到，Shopline的定位是以AI为底层的一站式全渠道电商基础设施。我们做的不是一个简单的建站工具，而是一套开放可扩展的全渠道零售操作系统，这里把支付、物流、营销都深度地集成在了一起，让商家在一个平台上完成从建站、交易、履约到用户获取和全生命周期留存的所有的环节。在全球的范围内，能提供这种操作系统级别的闭环方案的服务商非常有限。从收入模式来看，Shopline构建了高粘性订阅费基石加高爆发增值的差异化商业变现模式。一方面，稳定的订阅成为了底层入口，积累了商家的基础，形成了经常性的收入。另一方面，Shopline通过高速增长的支付、营销等增值服务，实现了对交易闭环的深度渗透的天底电线。这种与商家全链路成长深度绑定的变现模式将成为驱动Shopline业绩持续爆发的引擎。我们的商户群体可以分为本对本和跨境商户两大部分。以品牌大客户为主导的跨境商户收入自去年以来保持了高速增长。目前我们主要投入研发费用已经趋稳，收入和毛利的提升都带来了经营杠杆效应，Shopline的亏损在大幅收窄，以及随着收入和毛利规模的加速提升，我们有信心也会全力推进Shopline在2028年实现盈亏平衡。

Speaker #3: Thank you, Rafael, for your question. This is Lizi. Yes, this is the first quarter that we are reporting Shopline as a standalone segment, as we mentioned in our prepared remarks.

Jane Xie: Thank you Raphael for your question. This is the first quarter that we are reporting SHOPLINE as a standalone segment. As we mentioned in our prepared remarks, we have positioned SHOPLINE as an AI-native one-stop omnichannel commerce infrastructure. What we are building is not a simple storefront building tool, but rather an open and connectable extensible retail operating system that deeply integrates payments, logistics, and marketing modules, allowing merchants to manage everything from store setup and transactions to fulfillment and full lifecycle customer retention on one single platform. Globally speaking, very few vendors are capable of delivering this kind of OS-level closed-loop solution. In terms of revenue model, we have built a differentiated monetization framework anchored by high stickiness subscription fees and accelerated by high growth value-added services. On one hand, a stable subscription revenue serves as the foundational entry point, building a robust merchant base and generating recurring revenue.

Speaker #3: We have positioned Shopline as an AI-native, one-stop omnichannel commerce infrastructure. What we are building is not a simple storefront building tool, but rather an open and connectable, extensible retail operating system that deeply integrates payments, logistics, and marketing modules, allowing merchants to manage everything from store setup and transactions to fulfillment and full lifecycle customer retention.

Speaker #3: On one single platform, globally speaking, very few vendors are capable of delivering this kind of OS-level closed-loop solution. In terms of revenue model, we have built a differentiated monetization framework anchored by high-stakeness subscription fees and accelerated by high-growth value-added services.

Speaker #3: On one hand, a stable subscription revenue serves as the foundational entry point, building a robust merchant base and generating recurring revenue; and on the other hand, through deeply penetrating transaction loop and monetizes GMV through rapidly growing value-added services, including payment and also marketing.

Jane Xie: On the other hand, through deeply penetrating the transaction loop and monetizing GMV through rapidly growing value-added services including payment, and also marketing. This monetization model, which is deeply aligned with the full lifecycle growth of merchants, will serve as the primary engine driving the continuous growth in Shopline's financial performance. When we look at Shopline's merchant base, we currently serve two major categories: local merchants, and also cross-border merchants. Revenues from cross-border merchants, predominantly key accounts, the larger brands, have maintained high velocity growth since last year. Our R&D spend, which has been our primary OpEx, has largely stabilized and the improvement in revenue and gross profit is generating operating leverage, and Shopline's losses are narrowing meaningfully. Looking ahead, we see a clear and achievable path for Shopline to reach breakeven by 2028, and we are fully committed to delivering on that. Thank you.

Speaker #3: This monetization model, which is deeply aligned with the full lifecycle growth of merchants, will serve as the primary engine driving the continuous growth in Shopline's financial performance.

Speaker #3: When we look at Shopline's merchant base, we currently serve two major categories: local merchants and cross-border merchants. Revenues from cross-border merchants, predominantly key accounts and larger brands, have maintained high-velocity growth since last year.

Speaker #3: Our R&D spend, which has been our primary OPEX, has largely stabilized, and the improvement in revenue and gross profit is generating operating leverage. And Shopline's losses are narrowing meaningfully.

Speaker #3: Looking ahead, we see a clear and achievable path for Shopline to reach break-even by 2028, and we are fully committed to delivering on that.

Speaker #3: Thank you. Maybe one last question, please.

Jane Xie: Maybe one last question, please.

Speaker #1: Thank you. Your next question comes from Xueqing Zhang with CICC. Please go ahead.

Operator: Thank you. The next question comes from Wei Jingzhang with CICC. Please go ahead.

Operator: Thank you. The next question comes from Xueqing Zhang with CICC. Please go ahead.

Speaker #5: Hey, CC, going to transition with Q1 with the问题是关于股东回报的。那公司本季度是宣布了全新的三年15亿美金的一个股东回馈计划，包括6亿美金的回购和9亿美金的分红。那想请问管理层能不能分享一下大幅提升股东回报的一个考虑，谢谢。Thanks management for taking my question. My question about shareholder returns. The company announced a new three-year shareholder return plan for US dollar 1.5 billion this quarter.

Wei Jingzhang: 感谢管理层接受我的提问，我的问题是关于股东回报的。公司本次董事会宣布了全新的三年$15亿的股东回馈计划，包括$6亿的回购和$9亿的分红。想请问管理层能不能分享一下大幅提升股东回报的考虑？谢谢。

Xueqing Zhang: 感谢管理层接受我的提问，我的问题是关于股东回报的。公司本次董事会宣布了全新的三年$15亿的股东回馈计划，包括$6亿的回购和$9亿的分红。想请问管理层能不能分享一下大幅提升股东回报的考虑？谢谢。

Jane Xie: Thanks management for taking my question. My question about shareholder returns. The company announced a new 3-year shareholder return plan of US$1.5 billion this quarter, including $600 million in share buyback and $900 million in dividends. Could management share the thinking behind the significant increase in shareholder returns? Thank you.

Speaker #5: Including $600 million in share buyback and $900 million in dividends. Could management share the thinking behind the significant increase in shareholder returns? Thank you.

Speaker #2: Hey, Xueqing. 谢谢你的提问。我是Alex，我来回答一下。本季度我们非常高兴地宣布了全新的一个三年股东的回馈计划，总规模达到了15亿美金，覆盖26年到28年的财年，这个新的方案其实取代了以前三年9亿美金的股东回馈计划，总体的规模提升了约67%。那具体来看的话，新计划是两个部分：第一，每年3亿美金的年度分红；和以前的年度分红计划相比的话，是提升了50%。第二的话，是每年2亿美元的回购额度，比之前的回购翻了一倍。对，做出这一决定其实我们背后有几个核心的考虑点。第一，首先我们三大业务线都已经进入到了一个清晰的增长的轨道。那么为更高水平的股东回馈，其实是奠定了非常扎实的一个基础。第二的话，公司维持强劲的一个净现金的储备，对，截止到3月底还有这个30接近32亿美金，完全有能力支持这一承诺的执行。第三的话，我们认为当前股价仍然是显著低估了公司的长期价值的。那么持续加大回购力度本身也是管理层信心最直接的一个体现。那么未来在展望三年的话，我们将坚定地执行这一计划，让股东切实分享到公司经营改善所带来的红利。谢谢。

Alex Liu: 谢谢，谢谢你的提问。我是Alex，我来回答一下。本季度我们非常高兴地宣布了全新的一个三年股东的回馈计划，总规模达到了15亿美金，覆盖2026年到2028年的财年。这个新的方案其实取代了前三年9亿美金的股东回馈计划，总体的规模提升了约67%。具体来看的话，新计划是两部分，第一，每年3亿美金的年度分红，和以前的年度分红计划相比的话是提升了50%。第二的话是每年2亿美元的回购额度，比之前的回购翻了一倍。做出这个决定，其实我们背后有几个核心的考虑点。第一，首先我们三大业务线都已经进入到了一个清晰的增长的轨道，为更高水平的股东回馈其实是建立了非常扎实的一个基础。第二的话，公司维持强劲的一个净现金的储备，截止到三月底还有接近32亿美金，完全有能力支持这一承诺的执行。第三的话，我们认为当前股价仍然是显著低估了公司的长期价值的，持续加大回购力度本身也是管理层信心最直接的一个体现。未来在掌握三年的话，我们将坚定地执行这一计划，让股东确实分享到公司经营改善所带来的红利。谢谢。

Speaker #3: Thank you, Xueqing, for your question. This is Alex. We are very pleased to announce this quarter our new three-year shareholder return plan, totaling $1.5 billion.

Alex Liu: Thank you Xueqing for your question. This is Alex. We are very pleased to announce this quarter our new three-year shareholder return plan totaling $1.5 billion, covering fiscal years.

Speaker #3: Covering fiscal years 2026 through 2028. This replaces our previous program, totaling $900 million. Representing a roughly 67% expansion in our total commitment. Specifically, the new plan comprises two components.

Jane Xie: This replaces our previous program totaling $900 million, representing a roughly 67% expansion in our total commitment. Specifically, the new plan comprises two components. Annual dividend of $300 million per year. That would be up by 50% from our previous $200 million per year. Our annual share buybacks be the share repurchase authorization per year. The annualized buyback quota would be $200 million, and that would be nearly doubling the average quota of $100 million under the previous plan. There were several key considerations behind our decision. First of all three business segments are now on a clear growth trajectory, providing a very solid foundation for a higher level of shareholder returns. At the same time, our strong net cash position, at the end of Q1, we still have around $3.2 billion of net cash on hand.

Speaker #3: Annual dividend of $300 million per year. That would be up by 50% from our previous $200 million per year. And our annual share buyback, the share repurchase authorization, per year.

Speaker #3: The annualized buyback quota would be $200 million, and that would be nearly doubling the average quota of $100 million under the previous plan. There were several key considerations behind our decision.

Speaker #3: First of all, all three business segments are now on a clear growth trajectory, providing a very, very solid foundation for a higher level of shareholder returns.

Speaker #3: At the same time, our strong net cash position as of the end of Q1 will still have around $3.2 billion of net cash on hand.

Speaker #3: This gives us full financial capacity to execute this commitment. And we do believe that the current share price still materially undervalues our long-term potential.

Jane Xie: This gives us the full financial capacity to execute on this commitment. We do believe that the current share price still materially undervalues our long-term potential, and our commitment to increasing buybacks is a very direct expression of the management's strong conviction in the future of the company. Looking ahead over the next three years, we are firmly committed to executing this plan and enabling our shareholders to benefit from improving operations. That was the last question, and thank you so much for joining us today. We look forward to speaking with everyone next quarter. Thank you.

Speaker #3: And our commitment to increasing buyback is a very direct expression of the management's strong conviction in the future of the company. Looking ahead over the next three years, we are firmly committed to executing this plan.

Speaker #3: And enabling our shareholders to benefit from improving operations. That was the last question. Thank you so much for joining us today. We look forward to speaking with everyone next quarter.

Speaker #3: Thank you.

Operator: Thank you. This conference is now concluded. Thank you for attending today's presentation. You may now disconnect.