YY Inc. (NASDAQ:YY) Q2 2019 Earnings Conference Call Transcript
Aug 13, 2019 • 09:00 pm ET
Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Your first question comes from the line of Thomas Chong from Jefferies. Please ask your question.
Thanks management for taking my questions. My question is about our competition in overseas market. As we see, our users are ramping up very quickly in overseas across different applications in BIGO Live and also IMO, how should we think about the competitive landscape and our spending in sales and marketing expenses in the second half and next year? Thank you.
David Xueling Li
Yes. This is David. Let me answer your first part of your question. So firstly, in terms of the competition for the instant messaging platforms globally, so when we monitor the trend, there always be two to three of the different platforms to stay -- to exist in the market simultaneously that makes the market bigger. They will not be -- have the similar situation that what happened in China, which is a winner-take-all situation. So we are still very confident in terms of the futures of IMO's development. Especially in the future, firstly, we'll continue to bring in more technical forces to continue help BIGO to develop the different kind of functionalities.
And meanwhile, we also will, as I mentioned in the prepared remarks, we also will bring in the different -- brought in the different kind of content as well as the services into IMO to continually improve the user stickiness, as well as the user scale. So -- and meanwhile, if you look at our -- the DNA of the company, we -- in the past decade, we actually has been accumulating a lot of experience in terms of develop instant messaging-related functionalities, as well the services. So we -- from that perspective, we're also very confident in terms of future IMO's development.
And from another perspective, if you look at the instant messaging services, it really looks like the visual ID card for each individual users from the Internet separately [Phonetic]. So -- but when we look at the overseas peers operations, we think that they didn't put that much of the effort in terms of the content operations. But we -- but in terms of the content operation, we were really good about that. For example, as we mentioned in the prepared remarks, IMO's currently, the user's conversion rate from the instant messaging to the short-form video services has reached to over 50%.
So in the future, since we continue producing more different kind of content there, definitely, we can continue to improve the ID card functionalities, as well as the people's participation into the instant messaging platform.
We are very optimistic in terms of the synergies between Likee and IMO's platform in the future. For Likee's platform, the producers -- the short-form video producers' participation rate is much higher than other peers. And for IMO, since they have the video communication users, so they also have more motivation