Thank you, operator. Hello, everyone.

Welcome to JOYY's fourth quarter and full year 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 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, the expected future financial performance of the company, 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.

They 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 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.

dollar. I will now turn the call over to our Chairperson and CEO, Ms.

Ting Li. Please go ahead.

Hello, everyone. I'm Li Ting.

Thank you for joining us today. In 2025, our group revenue and social entertainment business regained growth momentum since Q2, and we saw meaningful progress in our second growth curve of ad tech and other emerging areas.

Together, these results are shaping our clear strategic framework as a global technology company with multiple growth engines. Let me start with an overview of our results.

In Q4, live streaming maintained a sequential recovery trend, while our advertising platform saw accelerated top-line growth. Meanwhile, non-GAAP operating profit and cash flow remained robust.

In the fourth quarter, total revenue reached $581.9 million, up 7.7% Q-o-Q and 5.9% year-over-year, representing our fourth positive year-over-year growth since the second half of 2024. Live streaming revenue was $394.4 million, up 1.5% Q-o-Q, marking three consecutive quarters of sequential growth.

BIGO Ads, including both first and third-party ads, generated $128.1 million in revenue, up 61.5% year-over-year, with third-party Audience Network revenue growth accelerating to 82.5% year-over-year. Overall, non-live streaming business contributed 32.2% of total group revenue.

Non-GAAP operating profit stood at $40.8 million, and operating cash flow totaled $116 million. For the full year, total revenue was $2.12 billion.

Live streaming contributed $1.53 billion, while BIGO Ads contributed $398.5 million, up 38.5% year-over-year. In particular, BIGO Ads third-party ad revenue, Audience Network, delivered 56.3% year-over-year growth.

Non-live streaming businesses represented 28% of total revenue, an increase of 7.9 percentage points compared with 2024. In 2025, non-GAAP operating income and non-GAAP EBITDA were $150.8 million and $189.8 million, up 10.8% and 10.9% year-over-year, respectively.

As of December 31, we held $3.26 billion in net cash. Our strong operating cash flow and balance sheet continue to support consistent shareholder returns.

In 2025, we returned $332 million through share repurchases and dividends. With improved business visibility and ongoing operational optimization, we are confident we will continue to deliver solid performance.

In light of our strong performance and continued double-digit non-GAAP operational profitability improvements in 2025, the board has approved an additional cash dividend of approximately US$20 million, representing approximately 10% of the total cash dividends declared for the year of 2025, on top of the company's regular quarterly dividend schedule. This demonstrates our ongoing commitment to drive operational improvement and enhance shareholder returns.

Next, let me share our strategic focus and outlook. We are currently evaluating refinements to our segment reporting structure, and we are considering to report our results under three major business segments: social entertainment, ad tech, and e-commerce SaaS, beginning since the first quarter of 2026.

This new structure will make it easier to see and understand the progress we make within each business. Our social entertainment business remains the cornerstone of our profitability and cash flow.

Meanwhile, BIGO Ads and SHOPLINE are fueling our next stage of growth with improving mid to long-term economics and expanding profitability potential. Together, these businesses position JOYY for a return to sustainable and profitable growth.

From a long-term perspective, their combined strength and synergies will serve as an outfield engine through which we can eventually penetrate addressable markets beyond what would be possible for each business individually. We believe 2026 will be a landmark year for JOYY, marking the resolute beginning of our renewed growth journey and a defining step toward becoming a global, diversified, multi-engine technology company.

Now, let's turn to our operational updates. In Q4, our core social entertainment business achieved its third consecutive quarter of sequential recovery.

Global social MAUs reached 272.1 million, up 2.2% quarter-over-quarter. Traffic from our core segment increased 4.5% Q-o-Q, driven by high user stickiness and user organic growth.

Both average user time spent and retention improved year-over-year. On the revenue side, live streaming revenue rose to $394.4 million, up 1.5% Q-o-Q.

Developed market recorded a strong recovery, with revenue climbing 3.4% Q-o-Q. BIGO's total paying users rose 1.5% Q-o-Q.

On our core flagship products, we further enhanced our streamer incentive structure and integrated AI-driven features across critical stages of the user journey, boosting both engagement and payment efficiency. For example, by integrating LLM architecture and incorporating multimodal information into our recommendation systems, we improved our ability to understand both live streaming content and user interest.

The optimized recommendation precision and distribution efficiency led to a 5.6% Q-o-Q increase in Bigo Live's average viewing time per user in Q4. Furthermore, user adoption of AI-generated virtual gifts continues to grow.

As of January 2026, the consumption of AI interactive gifts on Bigo Live has surpassed 30% of total virtual gift consumption. We are making solid progress on our new product lineup, leveraging our established capabilities in product development, content, payments, infrastructure, and local operations.

We are expediting new product incubation and growth. In Q4, revenue from new products increased 37.9% Q-o-Q, setting new monthly records.

In 2026, we expect continued recovery in paying users and ARPU for our flagship products, driven by ongoing operational refinements. Meanwhile, we anticipate our new product lineup will sustain robust growth and bring further incremental live streaming revenue.

We are confident our social entertainment segment will regain growth momentum, delivering healthy profitability and cash flow for the group. Turning to BIGO Ads, in Q4, BIGO Ads delivered $128.1 million in advertising revenue, up 61.5% year-over-year and 23.3% Q-o-Q.

Third-party ads revenue, Audience Network, grew 82.5% year-over-year and 27.3% Q-o-Q, demonstrating accelerated growth momentum on a sequential basis for the third consecutive quarter. We fueled this growth through broader traffic coverage, multi-vertical advertiser expansion, and ongoing algorithm optimization.

First-party traffic expanded steadily, supported by higher MAUs and ad fill rates that drove sequential revenue and profit growth. Third-party traffic also increased, with SDK requests growing by 166% year-over-year and 23% Q-o-Q.

Our diversified vertical strategy across insurance, e-commerce, and IAA games broadened market coverage and allowed us to capture seasonal advertising demand more effectively. Q4 was a peak season for U.S.

insurance advertising and the prime period for year-end e-commerce campaigns such as Black Friday. Web-based demand, primarily from insurance and D2C e-commerce advertisers, grew 20%, contributing to a boost in revenue.

Enhanced placement performance led IAA vertical, primarily casual games, to a 39% sequential increase. Overall, the number of key cohorts increased by 29%, and total spending of key cohorts climbed 34%.

By region, we believe market continued to be our priority, with North America up over 21% Q-o-Q and Western Europe rising 46% Q-o-Q. To take advantage of exciting momentum, we will deepen our presence in key verticals, including lead generation ads, e-commerce, and games.

This multi-vertical approach will serve as our structure and differentiated competitive edge over the mid to long-term. Concurrently, we will expand our advertiser base and penetrate deeper into developed countries, while continuously optimizing our algorithms.

We have established a three-year roadmap for the BIGO Audience Network, targeting a revenue milestone of $1 billion by 2028, accompanied by steady improvements in economics. Finally, a word on SHOPLINE.

Beginning in 2026, we are considering to report SHOPLINE as a separate business segment to reflect our confidence in its growth prospects. Over the past year, SHOPLINE maintained double-digit revenue growth, driven by the cross-border merchant base's healthy double-digit expansion and its rising contribution to revenue.

While we have normalized SHOPLINE's R&D spending, backed by steady top-line and gross profit gains, we see a clear and achievable path for SHOPLINE to reach breakeven while sustaining its double-digit revenue growth trajectory. Turning to capital return, in Q4, we repurchased $67.4 million of shares.

For the full year, total repurchases reached $134.6 million, with momentum accelerating in the second half. We believe our current valuation does not fully reflect our intrinsic value.

We remain committed to actively utilizing our buyback program. Looking ahead, as we continue to scale our business and strengthen our operating profitability, we will work closely with the board to explore potential measures to further enhance our shareholder return mechanism.

In summary, our strategic blueprint and ecosystem potential are only beginning to unfold. We view 2026 as a fresh start toward our next phase of growth.

We remain focused on execution, and we are confident that sustained growth and profitability improvements will demonstrate our true value. Leveraging our integrated ecosystem, we remain committed to strengthening JOYY's position and delivering long-term value for our shareholders.

Now, let's begin with Alex Liu.

Thanks, Ms. Li.

Hello, everyone. In the fourth quarter of 2025, we recorded total net revenues of $581.9 million, securing a year-over-year growth of 5.9% and quarter-over-quarter growth of 7.7%.

This marks an inflection point of our top-line trend on a year-over-year basis since the third quarter of 2024. Our live streaming business delivered its third sequential recovery, with its live streaming revenue increasing by 1.5% quarter-over-quarter.

Our advertising business, in particular BIGO Ads, continued to deliver exceptional growth, with its revenue up by 61.5% year-over-year and 23.3% quarter-over-quarter. Our operating cash flow remained strong at $116 million in Q4, and we ended the quarter with roughly $3.26 billion in net cash.

As previously communicated, we accelerated share buyback during the quarter, buying back $67.4 million worth of our shares, nearly doubling our Q3 share repurchase volume. For the full year of 2025, we booked total net revenues of $2.12 billion.

In particular, BIGO Ads booked $398.5 million in total revenue, delivering 38.5% year-over-year growth. Third-party BIGO Audience Network achieved impressive growth of 56.3% while sustaining profitability.

Our non-GAAP operating income was $150.8 million, up by 10.8% year-over-year, and our operating cash flow was $305 million. Throughout the year of 2025, our total capital returned to shareholders, including cash dividends, reached $332 million, which represents 108.8% of our operating cash flow.

I will now dive deeper into our detailed financial performance. Looking at our live streaming business, our total live streaming revenues was $394.4 million for the fourth quarter, $371.8 million of which was from BIGO segment, both up quarter-over-quarter.

Our refined streamer incentives and continued AI-driven optimization of our content distribution and paying user experience have contributed to improved paying sentiment, with BIGO's total paying users increased by 1.5%. Live streaming revenue from developed countries increased by 3.4% quarter-over-quarter.

Our total non-live streaming revenues was $187.5 million during the fourth quarter, up by 47.6% year-over-year. Non-live streaming now contributes 32.2% of our total group revenues, up from only 23.1% contribution in the same period last year.

BIGO's advertising revenues increased by 61.5% year-over-year and 23.3% quarter-over-quarter to $128.1 million. In particular, our third-party ad revenue, BIGO Audience Network, delivered exceptional results, recording 82.5% year-over-year and 27.3% sequential growth.

On the traffic front, SDK network ad request was up by 166% year-over-year and 23% quarter-over-quarter in Q4. We continued to tune and optimize our algorithm to further improve our campaign performance, which drove advertiser spending.

In Q4, the number of key cohorts was up by 29% quarter-over-quarter, with total spending from key cohorts up by 34% quarter-over-quarter. Our multi-industry strategy has helped us catch broader market opportunities.

Web-based demand was up by 20% quarter-over-quarter. Mobile-based demand continued to be strong, with IAA spending up by 39% quarter-over-quarter.

We have outlined our three-year strategic goal for BIGO Audience Network, which is to continue high-velocity growth and reaching three-year revenue milestone of $1 billion. In the near term, this means that we need to invest in the expansion of our R&D and sales capabilities, as well as our network and computing infrastructure.

Given the healthy economics of Audience Network at this stage, we are confident that as we scale, we will remain profitable and potentially further enhance Audience Network economics in the mid-term. Group's gross profit was $205.6 million in the quarter, with a gross margin of 35.3%.

BIGO's gross margin was down quarter-over-quarter due to a shift in our revenue mix, which saw an increased contribution from our lower-margin network and revenues. All other segments' gross margin was up by 5.1 percentage points year-over-year to 46.7%, primarily due to growth in high-margin non-live streaming revenues.

Our group's operating expenses for the quarter were $187.8 million. Our operating expenses were higher last year due to certain non-cash goodwill impairment charges.

Sales and marketing expenses were higher year-over-year as our ROI-focused user acquisition returned to normalized level following one-off advertising savings associated with temporary app store interruption in Q4 last year. For our R&D and G&A expenses, we maintained prudent and disciplined in our total spending through enhanced resource sharing and operating synergy across different business units, while strategically allocating incremental share of our R&D resources towards BIGO Ads.

Our group's non-GAAP operating income for the quarter was $40.8 million. Our non-GAAP operating income was lower this year, primarily due to the impact of one-off advertising savings last year.

Non-GAAP net income attributable to controlling interest of JOYY in the quarter was $70.3 million. The group's non-GAAP net income margin was 12.1% in the quarter.

Our non-GAAP net income was lower due to the impact of one-off advertising savings last year and higher FX loss due to weakening dollar this year. For the fourth quarter of 2025, we booked net cash inflows from operating activities of $116 million.

Our balance sheet remains healthy, with a strong net cash position of $3.26 billion as of December 31st, 2025. Shareholder return continued to be an important component of our capital allocation strategy.

We have returned $197.3 million to our shareholders through dividends and repurchased $134.6 million worth of our shares during the year. We believe we are still substantially undervalued.

We will continue to actively utilize our buyback program in 2026. Additionally, in light of our strong performance and continued double-digit non-GAAP operating profitability improvements in 2025, the board has approved an additional cash dividend of approximately $20 million, representing approximately 10% of the total cash dividends declared for the year of 2025, on top of the company's regular quarterly dividend schedule.

This demonstrates our ongoing commitment to drive operational improvement and enhance shareholder returns. Turning now to our business outlook.

At group level, we expect our net revenues for the first quarter of 2026 to be between $538 million and $548 million. This implies an 8.8% to 10.9% year-over-year growth for the group's revenue in quarter one, with live streaming revenues back to positive year-over-year growth, while BIGO Ads delivering mid-double-digits year-over-year growth in the first quarter, despite the impact of seasonality.

As Ms. Ting Li just mentioned, beginning in the first quarter of 2026, we are evaluating certain refinement to our segment reporting, and we are considering to report our results under three business segments, which include social entertainment, BIGO Ads, and e-commerce SaaS.

We believe the new segments will make it easier to see and understand our operational progress, particularly our new initiatives. Looking ahead, we are extremely excited about their tremendous synergy potential and the powerful flywheel momentum that our business segments will deliver in the medium to long term.

That concludes our prepared remarks. Operator, we would now like to open up the call to questions.

Thanks.

早上好，谢谢管理层接受我的提问。我有两个问题，第一个是关于我们直播业务的。管理层可以展开说一下这个复苏背后的一个核心的驱动的因素，还有我们应该如何看直播业务长期的发展趋势呢？第二个问题是关于我们今年全年的一些收入还有利润的指引。谢谢。Good morning. Thanks, management, for taking my questions.

I have two questions. The first one is about the live streaming business.

Can management talk about the key factors for recovery and how should we think about the long-term trend? My second question is about the 2026 outlook.

Can management talk about the full-year revenue and profit guidance? Thank you.

谢谢Thomas的提问。那第一个问题的话由我来回答。在四季度，我们的直播业务延续了环比的复苏，这是由付费用户和ARPU的持续的环比提升然后带来的。所以在运营层面的话，四季度我们持续在主播的激励机制、内容的生态搭建，还有AI在内容分发和用户内容消费以及VIP付费用户的体验改善等多个方面进行了优化。那这些AI驱动的用户体验的改善也进一步推动了付费转化率的持续提升。从区域来看的话，这轮的复苏主要是由发达国家的市场营收的复苏来驱动的。在新产品的整个的矩阵上，其实也实现了不错的这个环比增长。展望2026年，如此前所提到的，一次性的运营调整已经到位，不会再影响2026年。所以在这个基础上，我们将继续推进精细化用户的分层运营和激励体系的升级，以及全球优质内容的供给进一步丰富，还有支付基础设施的持续完善，包括新产品矩阵的增量贡献的逐步释放，我们预计2026年直播收入将实现稳健的同比正增长。Thank

you, Thomas. This is Li Ting.

I will take your first question. In the fourth quarter, our live streaming business continued its sequential recovery, with both paying users and ARPU are up sequentially.

On operational side, we continue to make progress across several areas, including refining our streamer incentive system, strengthening our content offerings, and also applying AI optimizations across content distribution, content consumption, and also the overall paying experience of our VIP. These AI-driven optimizations have continued to translate into meaningful and sustainable improvements in our paying conversion efficiency.

Geographically speaking, this recovery has been primarily driven by the developed market. Our new product lineup continue to grow at a healthy rate and deliver solid Q-o-Q growth, and we expect these products to continue to bring in incremental revenue as well.

Looking ahead, as we have mentioned, these one-off operational adjustments had been fully implemented, and we no longer expect they to have any negative impact on our performance for the new year. We will continue to advance refined user segmentation and also incentive upgrades, expand our high-quality content, global content offerings, and also better strengthen our global payment infrastructure.

We also expect growing incremental contribution from our new product lineup. On this basis, we expect our live streaming revenue to be back to steady, positive year-over-year growth in the year 2026.

嗨，早上好，Thomas。对于您的第二个问题我来回答一下。四季度其实我们可以看到集团收入实现了同比、环比的双增长，直播业务延续了环比增长的势头，已经连续三个季度环比增长，广告业务的增长那是进一步加速的。展望26年的一季度，目前我们的集团收入指引是实现同比的8.8%到10.9%的一个增长。首先直播业务侧，我们预计一季度将恢复同比的正增长，但从环比角度来讲，今年的农历新年和斋月都集中在一季度，和去年Q1情况是比较类似的，我们预计今年Q1还是会有季节性的一个影响。另外Q1同样是广告业务的传统淡季，但我们仍然预计BIGO Ads将表现强劲，继续实现中双位数的一个同比增幅。展望全年的话，我们对26年的收入增长是非常有信心的，三条业务线的增长路径都非常清晰。首先，直播业务正如我们前面提到的，去年一次性的调整已经基本到位了，我们预计直播业务会重新回到同比稳健增长的一个趋势上。其次在广告业务方面，进入到26年，流量规模在持续的扩张，多个垂类的广告主的覆盖也是在持续的加深，算法模型也在不断迭代优化，这几个维度的改善其实是相互叠加的，会让我们的BIGO Ads全年保持强劲的两位数的同比增幅。那么电商SaaS方面，随着产品能力的持续完善，重点市场跨电商户的快速渗透以及新市场的逐步拓展，SaaS业务也将维持两位数的营收增长，共同推动集团收入重回稳定的同比增幅的轨道，便打开更广阔的一个赛道空间。利润方面，直播业务增长的同时其实我们的成本结构也在持续的优化，直播整体的利润将保持平稳的增长，但我们也会把其中一部分的利润投入到新的产品矩阵中来。第三方广告目前是处在一个高速扩张的阶段，今年在研发和销售团队的建设以及基建带宽的投入等，都会更加的持续、更加的、更加的多的投入吧，但考虑到在当前阶段我们的优异模型其实已经非常健康，我们有信心在保持盈利的基础上，随着规模的进一步提升，三方广告的盈利能力在中期可以持续的增加。电商SaaS在收入增长的驱动下，可以持续的缩窄亏损，这个减亏的趋势也是清晰可见。所以综合来看，我们预计26年在集团non-GAAP经营利润和EBITDA将延续2025年的改善趋势，实现同比梯次的稳步提升。And

this is Alex. I will take your second question.

Let's first take a quick recap of Q4. Our group revenue in Q4 deliver a very solid growth, both year-over-year and Q-o-Q, with live streaming continuing its sequential recovery for third consecutive quarters, and our ad tech business continuing accelerating its year-over-year growth.

For Q1, our current guidance implies a year-over-year growth rate of 8.8% to 10.9% for group's total revenue. Looking at live streaming, we expect live streaming revenue to be back to positive year-over-year growth since Q1.

On sequential basis, considering that the Lunar New Year and Ramadan both fall in Q1 this year, similarly as last year, we expect there will be a similar seasonal softness for live streaming on a sequential basis. For advertising, Q1 is also usually a softer quarter for advertising as well, but we still expect very robust performance from BIGO Ads.

Our current guidance implies mid-double-digit year-over-year growth for BIGO Ads. For the full year, based on the current momentum that we're observing across the three business units, we're very confident that we will be able to achieve positive year-over-year revenue growth for the group in 2026.

On live streaming, as we previously mentioned, the one-off adjustments from last year have been fully implemented, and we expect our revenues to return to steady year-over-year growth. On ad tech, entering into the year 2026, we continue to see traffic expansion, deepening penetration across multi-verticals, and also ongoing model optimization to drive our revenue growth in year '26.

These drivers are mutually reinforcing, and together we believe that they support our expectation for a very strong double-digit year-over-year growth for BIGO Ads for the full year of '26. On our e-commerce SaaS business, with continued product capability development, rapid penetration in cross-border merchants in key markets, and also our gradual expansion into certain new markets in the new year, we expect our SaaS revenue to sustain its double-digit growth as well.

Taken together, we believe that these three engines will put our top line back to a very stable and positive year-over-year growth trajectory, and enabling us to tap into the massively broader long-term market opportunities as well. Looking at our profitability outlook for the year 2026, we expect stable operating profit contribution from live streaming.

With live streaming now returns to growth, along with continued cost optimization, we expect live streaming continue to generate a stable, improving profit, although we do expect to selectively reinvest some of our incremental profit into the new social product lines. Our ad tech business, particularly our third-party ad revenue Audience Network, is still in a high-velocity growth phase.

In the near term, this means that we will need to invest in the expansion of our R&D and sales capabilities in addition to our network and computing infrastructure. Given the healthy unit economics of Audience Network at this stage, we are very confident that we will remain profitable, and as we scale, we believe that we can potentially further enhance Audience Network's economics in the mid-term.

Looking at our e-commerce SaaS, we expect as its revenue continue to grow, we can continue to narrow its operating losses, and that its loss reduction trajectory is very clear, on track. Putting it all together, we expect the group non-GAAP operating income and EBITDA to continue our improving trend, similarly as '25, and deliver a steady year-over-year growth in the teens in 2026.

Thank you. Next question, please.

感谢管理层接受我的提问，也恭喜这个季度取得非常强劲的一个业绩。那我的问题其实是关于广告的。那我们也看到了我们在上个季度我们的一方和三方广告也实现了一个加速的增长，那同时呢刚才CFO也指引了26年Q1也有望实现一个中双位数的一个增长。那我想请问一下这个我们26年的一季度的这个增长的一个驱动主要来自于哪些方面？Thanks for taking my questions. Congratulation on the strong results.

My question is regarding your advertising business. In last quarter, both our first-party and third-party advertising business achieved accelerated growth, and you also guided that in the first quarter 2026, you will realize a mid-double-digit growth rate in your advertising business.

Can management elaborates on the key drivers of your advertising growth rate in the first quarter 2026? Thank you.

好的，谢谢您的问题。那这个问题先由我来回答。正如在prepared remarks里面所提到的，我们的广告预算主，它的预算结构是多元化的，包括保险为主的线索类广告、垂类的、独立站电商垂类的、IAA垂类的这些客户。那这样的一个结构其实使我们的广告业务呈现了更加明显的季节性特征，所以体现在Q4的电商、线索广告环增其实更强，而Q1的环比对比Q4来讲，其实是有一定的这个基数压力的。但是我们持续升级了我们整个广告系统的核心算法。在4Q的时候，我们重点优化的是ROAS、CVR等核心模型，融入了AI的标签、全渠道的用户行为等多维特征，并且加速了优化的投放策略。在这个同时，我们还推进了线索类、IAA、电商等多场景的算法适配，提高了算法效率。算法和策略的优化，使得Q4的广告主在留存和平等的投放预算上都不断地增加，并且不断地吸引了更多的新进的广告主。在这个同时，也使得我们的流量触达和变现效率有了持续的提升，形成了飞轮效应。所以这使得我们在淡季的时候依然可以期待比较好的表现。那目前我们的指引隐含了BIGO Ads将保持中双位数的同比增长。Thank

you for question. This is Li Ting.

As we mentioned in the prepared remarks, our advertiser mix is well diversified across different industries, including lead generation ads for insurance, direct-to-customer e-commerce, and also IAA, etc. Our current advertiser mix means that seasonality pattern could be very obvious, as shown in our sequentially very robust ad spend from e-commerce and insurance lead generation ads in Q4, while Q1 is typically sequentially softer, particularly due to our Q4's high comparison base.

That said, we kept upgrading our core algorithms. In Q4, we focused on improving our ROAS and CVR models by adding additional AI signals and also multi-channel user behavior data, while refining our targeting and delivery strategies.

We also expanded our algorithm optimization across specific industries, across lead gen, IAA, and also e-commerce, to boost efficiency. These improvements have lifted our advertiser retention rate, our average ad spend per advertiser, and also attracted new advertisers during the quarter.

Such optimizations also enabled us to effectively reach more traffic, and also increase our monetization capability for publishers, which creates a flywheel effect. We believe that that creates a solid foundation for Q1.

That's why even in a seasonally softer quarter, we still expect BIGO Ads to deliver mid-double-digit year-over-year growth, as implied in our current Q1 guidance. Thank you.

Next question, please.

will translate myself. Thanks, management, for taking my question, and congratulations on solid results.

I think management mentioned that the 3P ads scale is expected to reach over $1 billion U.S. dollar in 2028, which is a very positive number.

What are drivers behind these numbers, and how should we think about long-term profitability of 3P ads business? Thank you.

谢谢您的问题，那我还继续回答这个部分。是的，我刚才有明确提到我们广告的这样一个长期的目标。因为在刚刚展望一季度业绩的时候，我有提到飞轮效应，流量、预算以及广告技术和策略的相互之间的促进，它们之间的相互的持续的优化和增长，这些都将贯穿BIGO Ads业务发展的全周期。所以具体来看，在流量侧，首先是需要接入更多的SDK流量和聚合平台，将推动我们整个流量规模内生性的这样一个增长。同时我们将持续地拓展多渠道流量以及iOS流量的拓展。再其次呢，我们也会加速在美国、欧洲、日本市场的渗透以及潜在新市场的拓展。在整体的预算侧，除了现有的垂类外，我们还会持续探索更多的线索类广告的细分垂类、IAP和电商等，进一步提升各个垂类客户的数量和密度。在平台侧呢，随着流量和预算侧的扩张，我们也将会持续地迭代算法和数据，细化垂类的模型，优化投放策略。那所有上述的这些措施都在并行地推进，而且相互推动和相互之间有所促进。同时这也是我们第一次对外公布、公开我们对BIGO Ads的中期战略目标。团队非常地优秀，那公司也集中了合力，都一起在努力。所以在25年的交付我们的成绩非常好，那现在的团队和公司正在为26年以及后续的增长目标全力的推进中。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。Thank you, Brian.

This is Li Ting. I will take your question.

Yes, I just mentioned our mid-term strategic goal for BIGO Ads. When we were talking about our Q1 outlook earlier, I mentioned the flywheel effect and the mutual reinforcement and continuous improvement across traffic, advertiser demand, and algorithm, and also our monetization strategies will continue to be long-term drivers throughout the entire development of BIGO Ads.

To be specific, on traffic side, first, we expect further organic traffic growth as we are being integrated with rising number of SDK publisher partners and also mediation platforms. We'll also continue to expand multi-channel traffic and also iOS traffic.

Second, we will accelerate our penetration into U.S., Europe, and Japan, and also potentially other new regions. On demand side, in addition to our current verticals, we're simultaneously exploring new verticals, including sub-verticals of lead generation ads, IAP, and e-commerce.

We expect to further increase both the number of clients and also our customer density within each vertical. On platform side, with the rapid expansion in traffic and also in demand, we are continuously iterating and optimizing our algorithm and data capabilities, driving more vertical-specific optimizations and enhancing our bidding and delivery strategies.

We believe that all of these initiatives are moving forward in parallel, and they reinforce each other. This is the first time we are disclosing our mid-term strategic goals for BIGO Ads.

The team is exceptionally talented, and also the company has dedicated additional resources to work together to that goal as well, and we deliver outstanding results in the year '25. Right now, the team and the company is fully committed and pushing forward aggressively toward our strategic targets for the year 2026 and beyond.

We remain highly confident in the continued high-velocity growth of BIGO Ads, particularly the third-party Audience Network proportion. Thank you.

Next question, please.

感谢管理层接受我的提问。我的问题是关于SHOPLINE的。管理层能否展开讲一下目前SHOPLINE业务的状态以及增长的驱动力？那我们该如何展望SHOPLINE逐步扭亏、最终达到盈亏平衡的路径和时间表？谢谢。Thanks, management, for taking my question. My question is on SHOPLINE.

Can management provide more color on the current business momentum of SHOPLINE and the key drivers behind its growth? How should we think about the path towards narrowing losses and eventually achieving breakeven, both in terms of strategy and the timeline?

Thank you.

谢谢您的问题。那这个关于SHOPLINE的问题继续由我来回答。关于SHOPLINE，它所在的服务型的电商SaaS一直是稳健坚定向好的赛道。那不同于整个平台类电商的这种流量的封闭性，服务型电商开放、可连接，数据由卖家具备，拥有，并且可以持续地去运营和营销。并且它和传统的SaaS去卖这种座位席的这种收费方式不同，SHOPLINE的收费模式更多的是来自于为卖家提供了GMV的增长动力所带来的GMV take rate。所以在过去几年，SHOPLINE的核心命题一直是产品能力。我们投入了优质的研发，将我们整个产品的厚度升级到电商的整个的生态系统，成为电商SaaS加支付解决方案，再加上营销整合的这样一个完整的GMV的可以去驱动的闭环。从去年开始，我们整个的研发投入已经非常地稳定，由品牌客户主导的跨境电商客户等区域的经营快速地增长。这里我们看到收入和毛利的增长推动了真正的经营杠杆，带来了SHOPLINE亏损的大幅减少。那整个商业模式的验证以及目前经营毛利的增长，让breakeven的这个趋势是非常的清晰，而且可持续的。所以我们期待并且全力的在推进SHOPLINE会在2028年实现盈亏平衡。Thank you. This is Li Ting.

I will take this question. We remain optimistic on the long-term prospects of the SaaS-based e-commerce sector.

Unlike walled garden marketplace platforms, SHOPLINE provides an open and extensive solution to merchants, through which the merchants can have full data ownership for advanced operations. Also quite distinctive to traditional SaaS monetization model, we don't charge by usage per person.

We realize our value through empowering our merchants to capitalize GMV growth, and our monetization is based on the take rate of that growing GMV. In the past several years, SHOPLINE's core mission has been product excellence, and we've made substantial investments in our R&D to evolve from a storefront builder to a full-stack e-commerce ecosystem, seamlessly combining SaaS infrastructure, payment, and also integrated marketing tools into one powerful closed loop.

Since last year, our R&D investment have greatly stabilized. Our cross-border merchants, particularly brand customers, have grown rapidly, and our revenue and gross profit growth have driven improving operating leverage, resulting in our significant reduction in SHOPLINE's operating losses.

We believe that we are past the stage of business model validation, and now our rising gross profit has put us on a clear and sustainable path to breakeven. We look forward to and remain fully committed to achieving breakeven for SHOPLINE in 2028.

One last question, please. Thank you.

大家好，感谢管理层接受我的提问，恭喜强劲的一个业绩。看到这个季度公司在原有的基础上新增了派息，能否请管理层分享这一决策背后的考量，以及考虑到当前的一个估值水平，公司是否有意愿进一步提速股票的回购？我来翻译一下。We noticed that company distributed an additional cash dividend this quarter. Could management share the underlying considerations behind this?

Also, given current valuation, does company intend to further accelerate share buyback? Thank you.

哎，Raphael，感谢你的提问，我是Alex。我们先回顾一下25年啊。25年其实我们的股东回馈是非常非常积极的，在现有的股东回报的计划下，全年累计派息是1.97亿美金，回购了1.35亿美金，合计超过了3.3亿美金的。这大概占到了我们当前市值的10.9%。哪怕放在整个行业内，其实也是非常非常有竞争力的一个水平吧。除此以外呢，考虑到25年的经营利润是两位数的增长，那么在现有的季度分红计划以外，董事会又批准了额外派发一笔现金分红，总金额是2000万美金。这体现了公司对经营成果的坚定信心，以及伴随着经营改善、持续提升股东回报的长期承诺。关于回购，四季度我们的力度其实接近翻倍，你们能看到我们四季度单季就回购了6740万美金。其实当前股价尚处低位，所以我们将持续的、积极的推进回购。那么展望未来的话，随着公司迈入新的成长周期，集团营收重回增长的轨道，业务经营利润也将持续的提升，我们相信股东可以期待分享更多的回报。谢谢。Thank

you, Raphael. This is Alex.

I will take your question. First, looking back at 2025, our capital return execution has been very, very robust.

Under our current shareholder return program, we paid out approximately $197 million in dividends and repurchased approximately $135 million worth of shares throughout the year, bringing our total shareholder returns to surpassing $330 million. That represents around 10.9% of our current market cap, which we believe is a very, very competitive level within the industry.

Additionally, in light with our strong operating performance and double-digit improvement in our non-GAAP OP in '25, the board has approved an additional cash dividend of approximately $20 million on top of our regular quarterly dividend schedule. This demonstrates our strong confidence in operating performance and also our ongoing commitment to drive operational improvements and enhance shareholder returns.

On buyback, we nearly doubled our repurchase execution in Q4, buying back additional $67.4 million in one quarter in Q4. We believe we're still undervalued, and we will continue to actively execute our buybacks going forward.

Looking forward, we are entering into the new phase of growth, with our revenue back to growth and also operating profits continuing to improve. We believe that our shareholders can look forward to sharing even greater returns.

That was the last question. Thank you so much for joining this call.

We look forward to speaking with everyone next quarter. Thank you.