JOYY Inc Reports Q3 2024 Financial Results
Intellectia.AI2024-11-27
JOYY Inc. Reports Q3 2024 Financial Results
SINGAPORE, Nov. 27, 2024 — JOYY Inc. (NASDAQ:YY), a global technology enterprise, has released its unaudited financial results for the third quarter of 2024.
Financial Metrics Overview
| Metrics | Q3 2024 | Q3 2023 | % Change YoY | Consensus Estimates |
|---|---|---|---|---|
| Revenue | $558.7 million | $567.1 million | -1.5% | $562 million |
| Net Income | $60.6 million | $72.9 million | -16.9% | |
| Non-GAAP Net Income | $61.2 million | $81.2 million | -24.6% | |
| Diluted EPS | $1.05 | $1.86 | -43.5% | $0.92 |
| Non-GAAP Diluted EPS | $1.07 | $1.22 | -12.3% |
JOYY’s revenue for the third quarter showed a slight decline of 1.5% year-over-year, closely aligning with Wall Street's expectations. The company experienced a notable drop in net income and earnings per share, partially attributed to rising costs within its BIGO segment, offset by a strategic reduction in sales and marketing expenditures.
Revenue Breakdown by Segments
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | % Change YoY |
|---|---|---|---|
| Live Streaming | $439.5 million | $495.8 million | -11.4% |
| Other Revenues (incl. ads) | $119.2 million | $71.3 million | +67.2% |
The revenue from live streaming fell by 11.4%, mainly driven by reduced Average Revenue Per Paying User (ARPPU) amid shifts in product focus and strategic traffic adjustments. In contrast, non-livestreaming revenues, including advertisement streams, surged by 67.2%, showcasing JOYY's success in diversifying its income streams.
Key Developments and Operational Highlights
- User Metrics :
- Average mobile MAUs of Bigo Live and Likee decreased due to more disciplined advertisement spending, impacting user acquisition.
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An increase in the number of paying users for BIGO.
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Operational Highlights :
- GAAP and non-GAAP operating incomes saw quarterly increases of 623.5% and 16.4% respectively.
- Continued share repurchase with $117.8 million completed during the quarter.
Executive Commentary
Ms. Ting Li, Chairperson and CEO, emphasized strategic advancements in enhancing JOYY's global social ecosystem while expanding operational efficiencies. She highlighted the company’s commitment to diversifying revenue sources, focusing on non-livestreaming initiatives, and optimizing resource allocation for sustainable growth.
Shareholder Returns
JOYY intensified its share repurchase initiative, buying back $117.8 million in shares this quarter, reinforcing its pledge to return value to shareholders.
Forward Guidance
For Q4 2024, JOYY anticipates net revenues between $546 million and $563 million, reflecting cautious optimism amid macroeconomic fluctuations.
Market Reaction
Post-earnings release, JOYY’s stock saw a modest uptick of approximately 0.49%, indicating investors' measured positivity on the company's future prospects.
In summary, JOYY's Q3 results underline a challenging landscape in key segments, balanced by promising growth in new revenue avenues and a firm commitment to shareholder returns. The company’s strategic focus on improving product innovations and operational excellence remains central to its long-term growth strategy.
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