Ladies and gentlemen, thank you for standing by, and welcome to JOYY Inc.'s Third Quarter 2025 Earnings Call. [Operator Instructions] 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.

Thank you, operator. Hello, everyone. Welcome to JOYY's Third Quarter 2025 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 webcast 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'd 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 financial performance, our share repurchases and other 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. 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. 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 U.S. dollars. I will now turn the call over to our Chairperson and CEO, Ms. Ting Li. Please go ahead, Ms. Li.

Hello, everyone. I'm Li Ting. Thank you for joining us today. This quarter, we have taken another firm step towards becoming a global technology company powered by multiple growth engines and a strong synergistic ecosystem. Starting with our Q3 results. Livestreaming revenues sustained steady sequential recovery, while our ad tech platform, BIGO Ads accelerated top line growth with its total ad revenue growing over 19.7% quarter-over-quarter. Meanwhile, we maintained a robust cash flow generation and continued to actively return value to shareholders. Last quarter, I expressed our long-term commitment to building a meaningful and lasting presence in the ad tech industry. This quarter, we made concrete progress towards that goal. BIGO Ads daily growth revenue grew aggressively and reached new heights. As we further accumulate in scale and continuously iterate our AI algorithm, we are confident we will soon reach new milestones. We achieved total revenue of $540 million in the third quarter, up 6.4% quarter-over-quarter. Our livestreaming revenue was $388 million, up 3.5% Q-o-Q, making 2 consecutive quarters of sequential growth. Meanwhile, BIGO Ads recorded $104 million in revenue, with a year-over-year growth of 33.1%, bringing total non-livestreaming revenues, including ad revenues and others to 28.1% of group revenues. Non-GAAP operating income reached $41 million, up 16.6% year-on-year. Non-GAAP EBITDA reached $51 million, up 16.8% year-on-year and 4.9% Q-o-Q. Operating cash flow for the quarter reached $73 million. As of September 30, we had $3.3 billion in net cash. This provides strong support for our ongoing competitive shareholders' returns. We will continue actively executing our share repurchase program. As we advance our strategic priorities alongside strong acquisitional momentum, we are positioned to deliver long-term value for our shareholders. As we approach year-end, I would like to outline our overall strategic direction for year 2026. In short, we will focus…

Thanks, Ms. Li. Hello, everyone. In the third quarter of 2025, we recorded total net revenues of $540.2 million, securing a quarter-over-quarter growth of 6.4%. Our livestreaming business delivered its second sequential recovery with its livestreaming revenues increasing by 3.5% quarter-over-quarter. Our advertising business, in particular, BIGO Ads has demonstrated accelerating growth. BIGO Ads revenues was up by 33.1% year-over-year and 19.7% quarter-over-quarter to $103.9 million. Our non-GAAP EBITDA for the quarter was $50.6 million, up by 16.8% year-over-year and 4.9% quarter-over-quarter. Operating cash flow remained strong at $73.4 million in quarter 3, and we ended the quarter with $3.3 billion in net cash. We accelerated share buyback during the quarter. In quarter 3, we bought back $30.8 million worth of our shares. Between January 1 and November 14, we had bought back 1.7 million of our ADS for $88.6 million in 2025. I will now dive deeper into our detailed financial performance. Looking at our livestreaming business, our total livestreaming revenue were $388.5 million for the third quarter. $367.7 million of which was from BIGO segment, both up quarter-over-quarter. Global MAU was $266.2 million during the quarter, up by 1.4% quarter-over-quarter, driven by a healthy growth of the user pool of our instant messenger. Our ROI-oriented user acquisition, continued AI-driven optimization of our content quality and paying user experience have contributed to improved paying sentiment, with BIGO's total paying user and app increasing by 0.8% and 3.4% quarter-over-quarter. By region, group's total livestreaming revenues from developed countries increased by 7.6% quarter-over-quarter, while livestreaming revenues from Southeast Asia increased by 4.4% quarter-over-quarter. Our total non-livestreaming revenues were $151.7 million during the third quarter, up by 27.3% year-over-year. Non-livestreaming now contributes 28.1% of our total group revenues, up from only 21.3% contribution in the same period last year. We are presenting…

[Operator Instructions] Your first question comes from Xueqing Zhang from CICC.

[Foreign Language] Congratulations on the strong quarter. My question is about the livestreaming business. We have noticed the livestreaming growth slightly quarter-on-quarter for 2 consecutive quarters. How should we think about the long-term trend of the livestreaming business?

[Interpreted] Thank you for your question. This is Li Ting. I will take your question. In the third quarter, our livestreaming business continued its steady sequential recovery, supported by growth in both our paying users and ARPPU. Across regions, developed countries and Southeast Asia maintained resilient and continue the improving trend we've seen in the recent quarters. Over the past several quarters, we've been focusing and executing a series of structural enhancements across our ecosystem, including refining streamer incentive programs, strengthening a more diversified content supply and distribution and expanding the use of AI for content distribution and also paying experience optimization. And those have reinforced one another and also help livestreaming back to healthier growth. Looking ahead to 2026, we expect livestreaming to return to year-over-year growth. First of all, the one-off operational adjustments that we made earlier this year are now largely behind us, and then we expect -- are now largely behind us. And going forward, we will continue to focus our resources on high-value paying users and developed countries while further enhancing refined operations globally through expanding higher-quality content supply, improving user segmentation and incentive existence while strengthening our global payment infrastructure. We expect these to improve our paying conversion and also ARPPU. Additionally, we will also expect some incremental revenue contribution from our new product initiatives in the Middle East region in year 2026. With these drivers, we remain confident that livestreaming is well positioned to resume steady year-over-year growth in the new year. Thank you.

Your next question comes from Yuan Liao from Citic.

[Foreign Language] I'll translate myself. Congrats for the strong quarter results. My question is regarding your advertising business. Could management please share the long-term strategic goals for your advertising business and also your operation plans for 2026?

[Interpreted] Thank you, Liao Yuan. This is Li Ting. I will take your question. We are transforming our high-growth ad tech business by establishing BIGO Ads as a global platform for performance-driven multichannel advertising across different verticals. In terms of our channels, we expect to establish a multi-channel layout, enabling monetization for a wide range of suppliers, including web open networks, mobile app developers and others, thereby significantly expand our supply base. And in terms of industry vertical coverage, we expect our advertiser base to become much, much more diversified and cover a much broader range of advertiser types. For example, for in-app advertising segment, we will continue to deepen penetration into casual games and tool and utility apps. And for the in-app purchase segment, we expect to explore penetration into core vertical such as mid- to hardcore games, content and social as well as e-commerce marketplace. And on web-based advertising, we will also expect to penetrate into verticals such as finance, direct-to-customer, e-commerce, et cetera. So building on this foundation, as our advertising verticals become much, much more diversified and much more expanded advertiser coverage, together with rising traffic and diversifying traffic channels, we will accumulate an increasing volume of data. And this will empower our full domain user profiling and consequently enable us to further optimize the performance and efficiency of our model. And geographically speaking, BIGO Ads will continue to have a global footprint, while our core regions will still be concentrated in developed countries such as North America and Europe, globalization remains a clear path as we continue to expand our platform. And as for our specific plan for BIGO Ads for year 2026, we expect our growth drivers to come from the below 4 areas. First of all, continued expansion of our traffic; second, a strong growth in the number of IAA and web-based advertisers together with their advertiser spending and together with our expansion into new verticals; and thirdly, improvement of our advertising data infrastructure, including continuously enhancing data feedback, strengthening our iOS ecosystem, which we believe will accelerate our model optimization and efficiency; and fourth, geographic market expansion, building on our solid results and foundation that we have achieved regarding these 4 aspects, that has already been achieved in the year 2025. We have a very, very strong confidence in the development, and we really look forward to what we can achieve in the year '26.

Your next question comes from Thomas Chong from Jefferies.

[Foreign Language] I will translate myself. My question is about the 2026 outlook. Can management comment about the user and the revenue trend? And on the cost side, can management comment about the expenses trend and profitability outlook?

[Interpreted] Thank you, Thomas. This is Li Ting. I will take your first question. Looking ahead to the year 2026, we're still in the process of finalizing detailed operational plan, and therefore, we will not provide a quantitative guidance at this stage. That said, based on the trends we are already observing across our major businesses, we have very clear visibility into the '26 for the group's return to positive year-over-year revenue growth, and we have very strong confidence in that. First of all, on livestreaming, as I mentioned earlier, the business has returned to relatively stable sequential growth trajectory following the adjustments that we made in the previous quarters. And we expect livestreaming to resume steady year-over-year growth in the year '26. And for -- secondly, for advertising and e-commerce SaaS, they have shown very strong momentum this year. BIGO Ads delivered approximately 30% year-over-year growth in the first 3 quarters of '25, and our e-commerce SaaS business also achieved double-digit growth. Looking into 2026, we expect both businesses to deliver very strong double-digit growth. And for advertising, we continue to see high visibility across traffic expansion, model, our model capabilities and our advertiser coverage and regional penetration. For SaaS, enhanced product capabilities and rapid growth in key markets, we will continue to contribute to top line expansion. Taken together, as livestreaming returns to year-over-year growth, while both advertising and SaaS maintaining strong performance, we believe that the group is entering into a new growth cycle, with our top line returning to positive stable year-over-year growth trajectory and broader long-term opportunities ahead. While on the user front, we will continue to focus on traffic quality. In Q3, our overall MAU base is still around 78% coming from our Instant Messenger product, which is highly sticky and purely organically acquired. And our IM product has delivered sequential growth for the past 3 quarters when it comes to MAU, and we expect this steady momentum to continue. For our broader social entertainment portfolio -- product portfolio, we expect to remain ROI-oriented and focus on acquiring high-quality global users. Overall speaking, at group level, we expect our group MAU to remain broadly stable in the year 2026 with continued improvement in our user community, which we believe will provide a solid foundation for livestreaming monetization and other monetization opportunities, particularly our first-party ads.

[Interpreted] Thank you, Thomas. This is Alex. I will take your second question. First of all, let us recap our performance in the third quarter. We delivered on better-than-expected profits in this quarter with our non-GAAP operating profit reached $40.7 million, up by 16.6% year-over-year. With our non-GAAP EBITDA increased by 16.8% year-over-year and 4.9% Q-o-Q to $50.6 million. For BIGO segment, our non-GAAP gross profit margin was 35% in Q3, down slightly Q-o-Q, mainly due to the change in our revenue mix as our rising third-party BIGO Audio network has a dilution impact on our segment gross margin. This was partially offset by our ongoing content cost optimization and better efficiency in the livestreaming -- in BIGO's livestreaming. As a result, BIGO's non-GAAP operating margin remained stable at 14% in Q3. Looking at all other segments, non-GAAP gross margin improved -- was improved from 40% to 42.9% year-over-year, driven by revenue growth and higher contribution from our higher-margin SaaS business. Its operating -- its non-GAAP operating loss continue to narrow further to $25.5 million, down from $38 million in Q3 last year, reflecting disciplined spending in our operating expenses. Looking into Q4, we expect the group's non-GAAP operating profit continues to improve Q-o-Q, and this implies that for the full year of '25, our group's total non-GAAP operating profit will achieve a nearly double-digit year-over-year increase compared to the year '24. And turning to the year 2026, looking at the 3 driving components with livestreaming returning to year-over-year growth -- top line year-over-year growth and maintaining stable profitability and BIGO Ads continue to go up, contributing incremental profit. And with e-commerce SaaS further narrowing its operating losses, we expect the group's total non-GAAP operating profit amount and non-GAAP EBITDA to continue the improving trend that we achieved this year and grow steadily in the year '26.

Your next question comes from Raphael Chen from BOCI Research.

[Foreign Language] Let me translate myself. Congrats on the third quarter. Just wondering could management share the latest thoughts and the strategies of our shareholder return initiatives?

[Interpreted] Thank you, Raphael. This is Alex. I will take your question. Regarding capital return at the beginning of the year, we announced a 3-year shareholder return program totaling $900 million for the year '25 to '27, and we are currently executing this plan steadily, and we are well on track to deliver the plan. As of November 14, we have already paid out a total of $148 million in dividends and repurchased $88.6 million worth of our shares with share buyback execution accelerating in the third quarter. As Ms. Li just shared, we are entering into a new growth stage and the group's revenue will return to a growth trajectory, and we expect to open up much broader market opportunities. While our share price is still at a relatively low level, we expect to actively accelerate our share buyback going forward. Looking ahead, as our operating profit continues to grow, we expect that shareholders can look forward to enhance returns over time. So that was our last question. Thank you so much for joining our call, and we look forward to speaking with everyone next quarter. Thank you.

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