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JOYY (JOYY)
NASDAQ:JOYY
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JOYY
(NASDAQ:JOYY)
Rating:64Neutral
Price Target:
$53.00
▲(1.86%Upside)
Positive Factors
Capital Returns
Management is expected to increase capital returns to shareholders, potentially including cash dividends and ongoing buyback plans.
International Expansion
Strong growth in overseas ad business amid geographic and categories expansion is likely to offset weakness in the live streaming business.
Mergers and Acquisitions
The finalized sale of YY Live to Baidu for $2.1 billion in cash reduces uncertainty and mitigates downside risks to the company's net cash position.
Negative Factors
Deal Uncertainty
Uncertainties related to the Baidu & YY Live deal remain, and any updates could ease market concerns.
Regulatory Environment
Domestic audio streaming is under transition with further business adjustment amid a tightened regulatory environment.
JOYY (JOYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.77B
Dividend Yield3.49%
Average Volume (3M)273.40K
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-3.61%
EPS Growth-143.37%
CountryUS
Employees5,815
SectorCommunication Services
Sector Strength82
IndustryInternet Content & Information
Share Statistics
EPS (TTM)1.18
Shares Outstanding35,396,515
10 Day Avg. Volume256,099
30 Day Avg. Volume273,400
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.02
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit2.59
Enterprise Value/Ebitda2.32
Forecast
1Y Price Target
$63.00Price Target Upside21.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
JOYY Business Overview & Revenue Model
Company DescriptionJOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video and audio-based social platforms. The company operates Bigo Live, a live streaming platform that allows users to live stream specific moments, such as showcase talents, socialize, and connect with other users worldwide; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a casual game-oriented social platform; and imo, a chat and instant messaging application with functions, including video calls and other communication tools, such as group calls, document sharing, etc.. It operates in the People's Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, and Southeast Asia and others. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.
How the Company Makes MoneyJOYY Inc. generates revenue primarily through user-generated content and the monetization of its social media platforms. The company makes money through several key revenue streams, including virtual gifts, advertisements, and subscription services. Users purchase virtual items or gifts to enhance their live streaming experience, which contributes significantly to the company's earnings. Additionally, JOYY partners with advertisers to display ads on its platforms, generating income from ad placements. Subscription services, where users pay for premium features or enhanced experiences, also contribute to the company's revenue. The combination of these strategies allows JOYY to capitalize on its large user base and the growing demand for digital social entertainment.
JOYY Earnings Call Summary
Earnings Call Date:May 27, 2025
(Q1-2025)
| % Change Since: 14.81%|
Next Earnings Date:Sep 02, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with significant growth in non-live streaming revenues, particularly in advertising, and strong cash flow and shareholder returns. However, some challenges in live streaming revenue due to strategic adjustments and economic factors were noted, but these are expected to stabilize and grow in future quarters.Q1-2025 Updates
Positive Updates
Non-GAAP Streaming Revenue Growth
Non-GAAP streaming revenue reached $123 million, marking a year-over-year increase of 25.3%, with non-live streaming revenue accounting for 25% of the group's total revenue for the first time.
Strong Operating Cash Flow
Operating cash flow for the fourth quarter was $58 million, indicating a healthy cash flow position.
Advertising Revenue Boost
Advertising revenue was approximately $18 million, a year-over-year growth of about 27%, driven by the success of Bigo Ads.
Bigo Live's North American Growth
Bigo Live's North American region saw Q1 MAU growth exceeding 7% year over year, with paying users increasing by approximately 4% in Q2.
Successful Product Improvements
Bigo Live launched a redesigned VIP benefit system, resulting in a 3% QOQ increase in 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 distributed $49.1 million in dividends and repurchased $22.5 million worth of shares, showing a commitment to returning value to shareholders.
Negative Updates
Fluctuations in Live Streaming Revenue
Live streaming revenue experienced temporary fluctuations due to strategic adjustments and economic headwinds, although it is expected to stabilize and grow in the upcoming quarters.
Impact of Economic Headwinds
Long-tail paying users reduced spending due to economic headwinds, affecting revenue from live streaming.
Company Guidance
During the JOYY Inc. first-quarter 2025 earnings call, management provided detailed guidance highlighting their strategic focus on diversifying revenue streams and fostering a multifaceted ecosystem. JOYY reported a total revenue of $494.4 million for the first quarter, with non-GAAP operating profit reaching $31 million. The company emphasized the growth of its non-live streaming revenue, which accounted for 24.9% of total revenue, marking a significant increase from 17.4% the previous year. Bigo Ads, their programmatic advertising platform, experienced substantial growth, contributing $80.3 million to non-live streaming revenues, a year-over-year increase of 27.3%. The call also highlighted JOYY's commitment to shareholder value, having distributed $49.1 million in dividends and repurchased $22.5 million worth of shares. Looking forward, 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.JOYY Financial Statement Overview
Summary
JOYY faces challenges with declining revenues and profitability, reflected in negative net income and EBIT margins. However, the company maintains a strong balance sheet with low debt levels. Cash flow issues need attention to ensure liquidity and operational efficiency.Income Statement
JOYY has shown a declining revenue trend with a decrease from $2.62 billion in 2021 to $2.24 billion in 2024. The gross profit margin decreased slightly from 32% in 2023 to 36% in 2024, indicating a drop in efficiency. The net profit margin turned negative in 2024, reflecting challenges in controlling costs. EBIT and EBITDA margins deteriorated, with EBIT turning negative in 2024, signaling operational inefficiencies.55
Neutral
Balance Sheet
The balance sheet remains strong with a high equity ratio of 62.7% in 2024, indicating financial stability and low leverage. The debt-to-equity ratio is very low, at 0.01, showcasing prudent debt management. However, the return on equity has turned negative due to the net loss, signaling a need for improved profitability.72
Positive
Cash Flow
The cash flow statement reflects challenges with zero free cash flow and operating cash flow in 2024, indicating potential liquidity concerns. The free cash flow to net income ratio is non-calculable due to negative net income, and the operating cash flow to net income ratio is not available, highlighting potential cash management issues.45
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.24B | 2.27B | 2.41B | 2.62B | 2.03B |
| Gross Profit | 806.20M | 813.03M | 852.13M | 837.90M | 569.60M |
| EBITDA | 167.63M | 422.42M | 158.71M | 119.81M | 292.59M |
| Net Income | -146.24M | 301.82M | 600.00M | -103.33M | ― |
Balance Sheet | |||||
| Total Assets | 7.52B | 8.48B | 9.07B | 9.12B | 8.08B |
| Cash, Cash Equivalents and Short-Term Investments | 1.81B | 3.69B | 3.94B | 4.39B | 3.55B |
| Total Debt | 31.04M | 488.53M | 907.58M | 940.85M | 913.05M |
| Total Liabilities | 2.76B | 3.19B | 3.57B | 3.49B | 1.78B |
| Stockholders Equity | 4.71B | 5.16B | 5.18B | 5.53B | 6.23B |
Cash Flow | |||||
| Free Cash Flow | 224.16M | 213.57M | 247.28M | 25.54M | 362.27M |
| Operating Cash Flow | 308.66M | 295.58M | 316.49M | 210.42M | 524.10M |
| Investing Cash Flow | -210.25M | 420.37M | -510.28M | 789.59M | 828.82M |
| Financing Cash Flow | -707.83M | -841.75M | -321.91M | -723.54M | ― |
JOYY Technical Analysis
Positive
52.03
Price Trends
48.65
Positive
45.11
Positive
41.56
Positive
Market Momentum
1.48
Positive
63.73
Neutral
28.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JOYY, the sentiment is Positive. The current price of 52.03 is below the 20-day moving average (MA) of 52.61, above the 50-day MA of 48.65, and above the 200-day MA of 41.56, indicating a bullish trend. The MACD of 1.48 indicates Positive momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 28.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JOYY.
JOYY Risk Analysis
JOYY disclosed 91 risk factors in its most recent earnings report. JOYY reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
JOYY Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.44B | 8.43 | 12.39% | ― | -11.02% | -5.17% | |
75 Outperform | $2.61B | 7.85 | 10.79% | 7.95% | 0.83% | 22.06% | |
73 Outperform | $1.58B | 23.92 | 9.18% | 4.57% | 26.71% | -23.67% | |
72 Outperform | $31.71B | 25.19 | 14.37% | 0.06% | 4.59% | 83.27% | |
64 Neutral | $2.77B | ― | -2.48% | 3.49% | -3.61% | -143.37% | |
62 Neutral | $41.97B | -1.66 | -12.07% | 3.33% | 2.07% | -69.32% | |
58 Neutral | $433.44M | ― | -0.39% | ― | -19.68% | 99.02% |
* Communication Services Sector Average
Performance Comparison
JOYY
JOYY
52.03
19.67
60.78%
WB
Weibo
10.32
3.40
49.13%
MOMO
Hello Group
8.59
2.14
33.18%
OPRA
Opera
17.08
5.80
51.42%
TME
Tencent Music Entertainment Group
21.23
7.31
52.51%
ZH
Zhihu
4.67
1.49
46.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.