JOYY Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-27
JOYY Inc. Reports Second Quarter 2024 Financial Results
JOYY Inc. (NASDAQ:YY) announced its unaudited financial results for the second quarter ended June 30, 2024.
Financial Metrics Overview
| Key Metrics | Q2 2024 | Q2 2023 | QoQ Change | YoY Change | Consensus Estimates |
|---|---|---|---|---|---|
| Net Revenues | $565.1M | $547.3M | +3% | +3.3% | $558M |
| Net Income (Attributable) | $52.1M | $155.1M | -66.4% | -66.4% | |
| Non-GAAP Net Income | $74.0M | $97.3M | -23.9% | -23.9% | |
| GAAP Diluted EPS per ADS | $0.83 | $2.02 | -58.9% | -58.9% | |
| Non-GAAP Diluted EPS per ADS | $1.17 | $1.29 | -9.3% | -9.3% | $0.89 |
Performance Interpretation: The second quarter of 2024 exhibits moderate revenue growth of 3.3% year-over-year, surpassing Wall Street expectations of $558M. However, net income saw a significant decline compared to the second quarter of 2023, mainly due to non-recurring gains in the previous year. Despite lower earnings, the company exceeded consensus earnings per share estimates of $0.89 with a non-GAAP diluted EPS of $1.17.
Segment Revenue Performance
| Segment | Q2 2024 Revenue ($M) | Q2 2023 Revenue ($M) | YoY Change |
|---|---|---|---|
| Live Streaming | $459.7 | $477.0 | -3.6% |
| Other Revenues | $105.4 | $70.4 | +49.8% |
Performance Interpretation: Live-streaming revenue dropped slightly by 3.6%, whereas other revenues grew significantly by nearly 50%, primarily due to strong performance in advertising. This indicates effective strategic diversification and a successful expansion of revenue streams within the BIGO segment.
Operational Highlights
- Average mobile MAUs of Bigo Live: 37.7 million (down from 38.5 million in Q2 2023).
- Average mobile MAUs of Likee: 35.6 million (down from 43.2 million in Q2 2023).
- Average mobile MAUs of Hago: 4.4 million (down from 5.5 million in Q2 2023).
- Global average mobile MAUs: 275.2 million (slightly down from 275.6 million in Q2 2023).
- Total Number of Paying Users (BIGO): 1.66 million (up from 1.53 million in Q2 2023).
- Average revenue per paying user (BIGO): $233.5 (down from $248.0 in Q2 2023).
Comments from Management
Ms. Ting Li, Chairperson and CEO of JOYY, emphasized the company's growth momentum and highlighted continued revenue and profit improvements despite economic uncertainties. She pointed out that BIGO's advertising business has emerged as a crucial revenue driver and ongoing cost optimization efforts have resulted in improved efficiency. She also reaffirmed the company's commitment to shareholders through share repurchase programs.
Share Repurchase Program
- During Q2 2024, JOYY repurchased $71.4 million worth of shares under its current $530 million share repurchase program, which is extended through November 2025, with an additional repurchase authorization up to $400 million.
Forward Guidance
- For Q3 2024, JOYY anticipates net revenues between $555 million and $569 million, reflecting their strategic priorities and market conditions. This outlook is subject to change due to macroeconomic uncertainties.
Stock Price Movement
- Post-earnings, JOYY's stock price experienced a slight decline of -0.36%.
In summary, JOYY Inc. showed robustness in revenue growth and maintained a strategic focus on diversification and operational efficiency. However, profitability challenges remain, influenced by last year's one-time gains.
For investor relations inquiries, please contact: - JOYY Inc. – Jane Xie/Maggie Yan, joyy-ir@joyy.com - ICR, Inc. – Robin Yang, joyy@icrinc.com
