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| Statement |
|---|
| In the fourth quarter, Hago’s innovative year-end events and new operational features drove mid-single-digit sequential revenue growth |
| Looking ahead, we will continue to cultivate our content and social ecosystems to steadily grow our thriving user community and reinforce our leadership in core geographic regions |
| We have enhanced profitability at the group level for the third consecutive year |
| Thanks to upgraded interactive features, overall user engagement, as measured by the ratio of DAUs to MAUs, improved by 2.2% in the same period |
| Our focus on continuous product enhancements, nimble operational strategies, and our strong execution yielded positive results, despite the prevailing macro challenges |
| First, our relentless optimization of operational efficiencies generated enhanced profitability for the third consecutive year |
| The next-day user retention rate in the fourth quarter rose by 2.3% sequentially, while average viewer time spent per session surged by 6.4% |
| In terms of user growth, our group's MAU has resumed positive year-over-year growth for three consecutive quarters |
| BIGO’s non-GAAP operating profit reached $288 million, representing a non-GAAP operating margin of 15%, higher than our expectations |
| Hago's user social interactions also improved during the fourth quarter |
| Notably, BIGO’s non-GAAP net income expanded to 302.0 million in 2023, with its non-GAAP net income margin improved to 15.7% from 14.4% in the prior year |
| If you look at our results for the full year, we actually deliver better than expected profits |
| Importantly, we have continued to enhance returns to shareholders through dividends and share repurchases |
| Third, we solidified our leadership position within the global social entertainment industry |
| The BIGO Awards Gala, an established tradition of BIGO Live, has helped a number of exceptional creators enhance their influence and gain exposure on the global stage |
| Other social products also achieved significant breakthroughs in key markets in 2023 |
| And the non‑GAAP operating margin has been improved to 15% from 14.4% in prior year |
| Revenues from BIGO segment were $491.3 million, up by 3.1% year-over-year, driven by a strong annual increase of 7.9% in BIGO’s quarterly paying users and a stabilizing ARPPU which was down by 2.6% |
| Despite the ongoing macro uncertainties, we ended 2023 with another strong quarter |
| Looking ahead, we believe there is ample room for growth |
| We anticipate continued topline recovery in the BIGO segment |
| Globalization through localization has been our foremost strategy, and our strong global localized operational capabilities are the cornerstone of our global success |
| By driving innovations in both our products and operations, we expect to further diversify our revenue streams and capture long-term sustainable growth |
| Our elevated collaborations with KOLs and local partners were instrumental in enhancing product awareness and catalyzing user growth in 2023 |
| And looking forward to the year ‘24, we will continue to optimize our cost structure and improve our operational and management efficiency |
| With our proven execution capabilities and robust financial position, we are confident that we are well-positioned to seize growth opportunities and deliver sustainable value to our shareholders |
| The recovery of DAUs in its core regions, an evolving creator services ecosystem, and a more established business and creator marketplace all contributed to Likee's advertising revenue growing by nearly 2.5x for the full year of 2023 |
| We continued to generate robust positive operating cash flows, reaching $97.2 million in the fourth quarter |
| And this was mainly attributed to a strong growth in their number of paying users and a stabilizing ARPPU |
| All-in-all, at group level, we expect to maintain profitable, maintain a positive operating cash flow and drive a long-term sustainable growth of the group's business |
| Statement |
|---|
| Separately, as we have implemented some proactive adjustments to certain operations in the previous quarters, they have had and will continue to have a negative impact on our revenues |
| First, despite mid-single-digit growth in BIGO’s paying users throughout the four quarters, BIGO’s ARPPU was still down year-over-year, primarily due to high inflation which negatively affected users’ paying sentiment |
| These adjustments had a negative impact on livestreaming revenues in certain regions |
| Despite this progress, the Group and BIGO segment’s revenues were down by 6% and 3.6%, respectively, year-over-year |
| Our net loss last year was primarily due to an impairment loss from an equity investment recognized in that quarter |
| The decline was primarily due to two factors |
| Although Likee's overall MAUs trended down sequentially during the fourth quarter, its DAUs in the core Developed Countries, especially Europe, have maintained high-single-digit growth for the past four quarters |
| And therefore, you can see that due to the comprehensive differences across the market either in terms of policy on economic cultural and industry differences, a multinational company will definitely encounter more operational complexity and greater macroeconomic and geopolitical uncertainties in terms of business operation than those who operate in a single market |
| However, due to the ongoing uncertainty in the global macro landscape, we recognize that the pace of recovery may vary across different markets, and there may be short-term fluctuations in users’ paying sentiment |
| And for the all other segments, also excluding the impact from the proactive adjustments that we made to certain noncore live streaming businesses since the second quarter of 2023, we expect to continue to narrow the amount of non-GAAP operating loss of this segment for the year ‘24 as well |
| Cost of revenues for the quarter decreased to $368.4 million, among which our revenue-sharing fees and content costs decreased to $242.2 million |
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