Joyy, Inc. ((YY)) has held its Q4 earnings call. Read on for the main highlights of the call.
JOYY Inc.’s recent earnings call showcased a predominantly positive sentiment, with the company emphasizing its strong global expansion and significant growth in non-livestreaming revenue. Despite facing challenges like a decline in livestreaming revenue and substantial goodwill impairment charges, JOYY’s focus on profitability and shareholder returns stood out as key positive highlights. The company’s non-GAAP net profit and robust non-livestreaming growth were particularly noteworthy, outweighing the challenges discussed.
Strong Global Revenue Growth
In 2024, JOYY Inc. reported impressive global market revenue, with 89.6% of total revenue coming from outside Mainland China. Developed countries experienced a remarkable year-over-year revenue increase of 24.6%, contributing to 53.9% of the group’s total revenue. This growth underscores JOYY’s successful expansion strategy in international markets.
Record Non-GAAP Net Profit
JOYY achieved a record non-GAAP net profit of $96.1 million in the fourth quarter, marking a 57.1% increase quarter-over-quarter. For the full year 2024, the non-GAAP net profit reached $298.5 million, reflecting a 2.0% year-over-year growth. This achievement highlights the company’s effective cost management and operational efficiency.
BIGO Segment Performance
The BIGO segment, a core component of JOYY’s business, generated $1.99 billion in revenue in 2024, showing a 3.3% year-over-year increase. The segment also achieved a non-GAAP net profit of $314.6 million, up 4.2% year-over-year, demonstrating its continued contribution to the company’s overall profitability.
Robust Non-Livestreaming Revenue Growth
Non-livestreaming revenue saw a significant increase of 55.9% year-over-year, reaching $449.8 million in 2024. This segment accounted for 20.1% of the total group revenue, up 7.4 percentage points from the previous year, highlighting JOYY’s successful diversification efforts.
Shareholder Returns
In 2024, JOYY repurchased 9.21 million ADSs for $309.2 million and announced a quarterly cash dividend program totaling $600 million over three years. Additionally, a $300 million share repurchase program was introduced, reflecting the company’s commitment to enhancing shareholder value.
Livestreaming Revenue Decline
The company experienced a decline in livestreaming revenue due to adjustments in BIGO’s non-core audio livestreaming product and temporary platform removals. Despite this, JOYY met its revenue guidance, thanks to strong performance in other areas.
Goodwill Impairment Charges
JOYY recorded non-cash goodwill impairment charges of $454.9 million, primarily due to lower valuations amid current market conditions affecting prior acquisitions. This charge reflects the challenges posed by the evolving market landscape.
Decreased Group Net Revenues
Total net revenues for the fourth quarter decreased to $549.4 million, down from $569.8 million in the same period last year. This decline highlights the impact of the challenges faced in the livestreaming segment.
Forward-Looking Guidance
Looking ahead, JOYY Inc. reported a group revenue of $549.4 million in the fourth quarter, with a non-GAAP net profit of $96.1 million, marking a 57.1% increase quarter-over-quarter. The BIGO segment generated $480 million in revenue, achieving an 11.2% sequential increase in non-GAAP operating profit. For the entire year, JOYY’s group revenue totaled $2.24 billion, with a non-GAAP net profit of $298.5 million, indicating a 2.0% year-over-year rise. The company emphasized its strategic focus on enhancing monetization in developed markets, leading to a 24.6% revenue growth in these regions. Additionally, JOYY’s non-livestreaming revenue is expected to maintain double-digit growth in 2025, reflecting its ongoing commitment to diversification and shareholder value optimization.
In conclusion, JOYY Inc.’s earnings call highlighted a positive outlook with strong global expansion and significant growth in non-livestreaming revenue. Despite challenges like declining livestreaming revenue and goodwill impairment charges, the company’s focus on profitability and shareholder returns remains steadfast. The forward-looking guidance suggests continued growth and strategic focus on enhancing monetization in developed markets, making JOYY a company to watch in the coming year.