Joyy, Inc. ((JOYY)) has held its Q1 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, highlighting significant growth in non-live streaming revenues, particularly in advertising, and robust cash flow and shareholder returns. While there were some challenges in live streaming revenue due to strategic adjustments and economic factors, these are expected to stabilize and grow in future quarters.
Non-GAAP Streaming Revenue Growth
Joyy, Inc. reported a notable increase in non-GAAP streaming revenue, reaching $123 million, which marks a year-over-year growth of 25.3%. Notably, non-live streaming revenue accounted for 25% of the group’s total revenue for the first time, showcasing the company’s successful diversification efforts.
Strong Operating Cash Flow
The company demonstrated a healthy cash flow position with an operating cash flow of $58 million for the fourth quarter. This strong cash flow is a positive indicator of Joyy’s financial health and operational efficiency.
Advertising Revenue Boost
Advertising revenue saw a significant boost, reaching approximately $18 million, a year-over-year growth of about 27%. This growth was primarily driven by the success of Bigo Ads, Joyy’s programmatic advertising platform.
Bigo Live’s North American Growth
Bigo Live experienced impressive growth in the North American region, with Q1 monthly active users (MAU) increasing by over 7% year over year. Additionally, paying users grew by approximately 4% in Q2, indicating a strong user engagement and monetization strategy.
Successful Product Improvements
Joyy implemented successful product improvements, including a redesigned VIP benefit system for Bigo Live, resulting in a 3% quarter-over-quarter increase in average revenue per user (ARPU) for high-end users. Likee also saw a 7% increase in videos viewed per user and a 10% increase in overall video consumption time.
Positive Shareholder Returns
The company demonstrated its commitment to returning value to shareholders by distributing $49.1 million in dividends and repurchasing $22.5 million worth of shares. These actions reflect Joyy’s strong financial position and dedication to shareholder satisfaction.
Fluctuations in Live Streaming Revenue
Live streaming revenue experienced temporary fluctuations due to strategic adjustments and economic headwinds. However, Joyy remains optimistic that these revenues will stabilize and grow in the upcoming quarters.
Impact of Economic Headwinds
Economic headwinds led to a reduction in spending by long-tail paying users, affecting live streaming revenue. Despite these challenges, Joyy is focused on strategic adjustments to mitigate these impacts.
Forward-Looking Guidance
Looking ahead, Joyy, Inc. is focused on diversifying its revenue streams and fostering a multifaceted ecosystem. The company reported a total revenue of $494.4 million for the first quarter, with non-GAAP operating profit reaching $31 million. Joyy anticipates second-quarter net revenues between $499 million and $590 million, driven by strategic enhancements in monetization and operational efficiency across both live streaming and non-live streaming segments.
In summary, Joyy, Inc.’s earnings call reflected a positive outlook with significant growth in non-live streaming revenues and strong shareholder returns. While challenges in live streaming revenue were noted, the company is optimistic about future stabilization and growth. Joyy’s strategic focus on diversification and operational efficiency positions it well for continued success in the coming quarters.