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Joyy, Inc. (YY)
:YY
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JOYY
(NASDAQ:YY)72Outperform
Positive Factors
Acquisition
YY announced that it has finalized agreements with Baidu to close the sale of YY Live for a revised purchase price of $2.1B in cash.
Financial performance
There is now a cleaner balance sheet, with net cash of $60 per share.
Negative Factors
Regulatory environment
Domestic audio streaming is under transition with further business adjustment amid tightened regulatory environment.
JOYY (YY) vs. S&P 500 (SPY)
Market Cap
$2.63B
Dividend YieldN/A
Average Volume (3M)560.10K
Price to Earnings (P/E)15.2
Beta (1Y)0.86
Revenue Growth-1.94%
EPS GrowthN/A
CountryUS
Employees7,449
SectorCommunication Services
Sector Strength85
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)3.20
Shares Outstanding42,737,663
10 Day Avg. Volume992,056
30 Day Avg. Volume560,101
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.31
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$61.03Price Target Upside24.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
JOYY Business Overview & Revenue Model
Company DescriptionJOYY Inc. (YY) is a global social media platform that focuses on providing a variety of user-generated content and interactive services. The company operates across several sectors, including live streaming, short-form videos, social networking, and entertainment. JOYY's core products and services include Bigo Live, a live streaming platform; Likee, a short-form video platform; and Hago, a casual social network. These platforms cater to a diverse audience and facilitate social interactions through real-time engagement and community-building features.
How the Company Makes MoneyJOYY Inc. primarily generates revenue through its live streaming and short-form video platforms. The primary revenue stream is derived from virtual gifts and in-app purchases made by users during live broadcasts and within interactive content. Users purchase virtual items to enhance their engagement and interaction with content creators. Additionally, JOYY monetizes its platforms through advertising, offering advertisers the opportunity to reach its broad user base through targeted ad placements. The company also benefits from partnerships with content creators and influencers who help drive user engagement and spending. These strategic partnerships, along with a diversified product offering, contribute significantly to JOYY's earnings.
JOYY Financial Statement Overview
Summary
JOYY demonstrates strong profitability with improved net margins and a robust balance sheet characterized by low leverage. However, the company faces challenges with declining revenue and free cash flow, which may impact future growth. Overall, JOYY is in a stable financial position but must focus on reversing revenue and cash flow declines to enhance its financial outlook.Income Statement
JOYY's gross profit margin for the latest year is 35.85%, showcasing moderate profitability. The net profit margin improved significantly to 13.31%, indicating efficient cost management compared to previous losses. However, the revenue declined by 5.97% from the previous year, which is a concern. The EBIT margin stands at 1.27%, reflecting a low but positive operating profitability. Overall, the company's income statement shows improved profitability but challenges in sustaining revenue growth.72
Positive
Balance Sheet
The company's debt-to-equity ratio is 0.09, indicating low financial leverage and a strong equity base. The return on equity (ROE) is 5.85%, which is moderate but positive, demonstrating a decent return on shareholders' investment. The equity ratio is 60.77%, suggesting a solid capital structure with a high proportion of equity. The balance sheet is stable with low debt levels, but there is room for improvement in generating higher returns on equity.75
Positive
Cash Flow
Operating cash flow to net income ratio is 0.98, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 0.71, reflecting efficient cash flow management. However, the free cash flow declined by 13.62% compared to the previous year, which is a concern for future investments and growth. Overall, the cash flow is stable but shows declining free cash flow, impacting long-term financial flexibility.68
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.27B | 2.27B | 2.41B | 2.62B | 2.03B | 3.66B | Gross Profit |
| 804.94M | 813.03M | 852.13M | 837.90M | 569.60M | 1.20B | EBIT |
| 14.31M | 28.82M | 50.73M | -111.64M | ― | 76.48M | EBITDA |
| 226.01M | 422.42M | 158.71M | 119.81M | 292.59M | 1.07B | Net Income Common Stockholders |
| 216.08M | 301.82M | 600.00M | -103.33M | ― | 492.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.92B | 3.69B | 3.94B | 4.39B | 3.55B | 3.76B | Total Assets |
| 9.11B | 8.48B | 9.07B | 9.12B | 8.08B | 7.46B | Total Debt |
| 912.94M | 488.53M | 907.58M | 940.85M | 913.05M | 835.26M | Net Debt |
| -488.36M | -575.42M | -306.87M | -896.33M | -827.46M | 278.78M | Total Liabilities |
| 3.69B | 3.19B | 3.57B | 3.49B | 1.78B | 1.90B | Stockholders Equity |
| 5.18B | 5.16B | 5.18B | 5.53B | 6.23B | 4.73B |
| Cash Flow | Free Cash Flow | ||||
| 31.78M | 213.57M | 247.28M | 25.54M | 362.27M | 498.68M | Operating Cash Flow |
| 31.78M | 295.58M | 316.49M | 210.42M | 524.10M | 654.83M | Investing Cash Flow |
| 0.00 | 420.37M | -510.28M | 789.59M | 828.82M | ― | Financing Cash Flow |
| 0.00 | -841.75M | -321.91M | -723.54M | ― | 1.35B |
JOYY Technical Analysis
Positive
48.84
Price Trends
44.53
Positive
40.44
Positive
36.87
Positive
Market Momentum
1.26
Positive
55.59
Neutral
44.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YY, the sentiment is Positive. The current price of 48.84 is above the 20-day moving average (MA) of 48.03, above the 50-day MA of 44.53, and above the 200-day MA of 36.87, indicating a bullish trend. The MACD of 1.26 indicates Positive momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 44.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YY.
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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $22.52B | 24.69 | 10.12% | 1.00% | -3.71% | 24.71% | |
72 Outperform | $2.63B | 15.25 | 3.99% | ― | -1.94% | ― | |
70 Outperform | $1.31B | 7.99 | 11.25% | ― | -12.36% | -29.81% | |
60 Neutral | $9.60B | ― | -9.43% | ― | 11.73% | 47.68% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
58 Neutral | $919.18M | ― | -1.59% | ― | -20.51% | 67.41% | |
56 Neutral | $243.03M | ― | -3.51% | ― | -26.72% | -236.96% |
* Communication Services Sector Average
Performance Comparison
YY
JOYY
48.84
18.96
63.45%
MOMO
Hello Group
7.65
1.19
18.42%
BILI
Bilibili
24.10
11.49
91.12%
HUYA
Huya
4.07
0.94
30.03%
TME
Tencent Music Entertainment Group
13.32
3.05
29.70%
DOYU
DouYu International Holdings
7.56
6.14
432.39%
JOYY Earnings Call Summary
Earnings Call Date: Nov 27, 2024 | % Change Since: 39.54% | Next Earnings Date: Mar 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted solid revenue performance in developed markets and growth in non-live streaming and advertising revenues. However, the decline in live streaming revenue and foreign currency exchange losses posed challenges. The company remains optimistic about strategic adjustments improving long-term profitability.Highlights
Solid Group Revenue and Growth in Developed Markets
Group revenue reached $558.7 million with revenues from developed countries increasing 21.6% year-over-year, now contributing 54.9% of the group's revenue.
BIGO's Non-GAAP Operating Profit and Efficiency
BIGO's non-GAAP operating profit expanded to $72.9 million, up 5% quarter-over-quarter. Group non-GAAP operating profit was $34.9 million, up 16.4% quarter-over-quarter.
Non-Live Streaming Revenue Growth
Group non-live streaming revenue grew 13.1% sequentially to $119.2 million, representing 21.3% of group revenue. BIGO's non-live streaming revenue increased 15.5% quarter-over-quarter to $78.2 million.
Successful Share Repurchase Program
The company repurchased $117.8 million worth of shares in Q3, with $283 million remaining under the repurchase program.
Advertising Revenue Growth
BIGO advertising revenue grew significantly, with Likee's advertising revenue up 33.4% year-over-year.
Lowlights
Decline in Live Streaming Revenue
BIGO's live streaming revenues were down year-over-year due to proactive content cost optimizations and adjustments to audio live streaming products.
Foreign Currency Exchange Losses
The group experienced larger foreign currency exchange losses, impacting GAAP net income margins.
Challenges in Non-Core Markets
Efforts in non-core markets shifted resources, potentially leading to declines in Likee's user metrics.
Anticipated Revenue Impact in Q4
Adjustments in BIGO's audio live streaming product may negatively affect Q4 revenues.
Company Guidance
During the third quarter of 2024, JOYY Inc. reported a group revenue of $558.7 million, with its core business segment BIGO contributing $496 million, indicating a slight year-over-year increase. The company's group non-GAAP operating profit rose to $34.9 million, marking a 16.4% increase quarter-over-quarter. BIGO's non-GAAP operating profit reached $72.9 million, also up 5% quarter-over-quarter. The firm noted that their group non-live streaming revenue increased by 13.1% sequentially to $119.2 million, which constituted 21.3% of the total group revenue. The company maintained positive operating cash flow, generating $61.1 million, and continued its share repurchase program, buying back $117.8 million in shares during the quarter. Moving forward, JOYY expects its net revenues for the fourth quarter to range between $546 million and $563 million, with BIGO poised for moderate top-line growth for the full year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.