Joyy, Inc. ((JOYY)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for JOYY Inc. painted a generally positive picture, with the company showcasing stable growth in key areas such as the ad tech business and livestreaming revenue. Despite facing challenges like past app removals, JOYY’s financial resilience and strategic expansion into ad tech suggest a robust potential for future growth.
Revenue Growth
JOYY Inc. reported a total revenue of $508 million, marking a 2.7% growth quarter-over-quarter. The company’s non-GAAP operating profit reached $38 million, reflecting a significant year-over-year growth of 27.9%. Additionally, non-GAAP EBITDA grew by 25.7% year-over-year to $48 million, highlighting the company’s strong financial performance.
Ad Tech Business Expansion
The advertising segment of JOYY Inc. demonstrated impressive growth, with non-livestreaming revenue increasing by 25.6% year-over-year and contributing 26.1% to the total revenues. BIGO Ads, a key component of this segment, achieved $87 million in ad revenue, representing a 29% year-over-year growth and a 9% quarter-over-quarter increase.
Financial Resilience
As of June 30, JOYY Inc. maintained a robust financial position with $3.3 billion in net cash. The company’s operating cash flow was also strong, reaching $58 million, underscoring its financial resilience and ability to navigate challenges effectively.
Livestreaming Business Stability
The livestreaming business remained stable, with revenue reaching $375 million. BIGO livestreaming revenue was $355 million, showing stabilization quarter-over-quarter. The platform also saw a 2.3% increase in user numbers and a 13% rise in premium paying users quarter-over-quarter.
Global User Growth
JOYY Inc. experienced growth in global user engagement, with the average mobile monthly active users (MAUs) reaching 263 million. The MAUs of IM increased by 3 million, and the average daily user time spent rose by 12.8% year-over-year, indicating strong user engagement.
Temporary App Removals Impact
The company faced challenges with temporary app removals in late 2024, prompting enhancements in community safety infrastructure. This indicates JOYY’s commitment to addressing past challenges and improving app availability.
Potential Increase in Operating Losses
In the All Other segment, JOYY anticipates that non-GAAP operating losses might slightly widen in Q3 compared to Q2 due to seasonal fluctuations, highlighting a potential area of concern.
Forward-Looking Guidance
Looking ahead, JOYY Inc. anticipates continued growth in both its livestreaming and advertising revenues. The company projects a third-quarter revenue range of $525 million to $539 million. Management emphasized key strategic pillars for growth, including high-quality operations, sustainable growth, AI-driven innovation, and organizational vitality.
In conclusion, JOYY Inc.’s earnings call reflected a positive sentiment with stable growth across key business areas. The company’s strategic expansion into ad tech and its robust financial resilience position it well for future growth, despite challenges such as temporary app removals. Investors can look forward to continued growth in both livestreaming and advertising revenues as JOYY navigates the evolving market landscape.