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Joyy, Inc. (YY)
NASDAQ:YY

JOYY (YY) AI Stock Analysis

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YY

JOYY

(NASDAQ:YY)

Rating:52Neutral
Price Target:
JOYY's overall score is impacted by declining financial performance, with notable issues in revenue and profitability. However, the company has a strong balance sheet with low leverage. Technical indicators suggest bearish momentum, and valuation concerns persist due to the negative P/E ratio. The earnings call provided a positive outlook on non-GAAP profits and strategic growth areas, offering some optimism amidst the challenges.
Positive Factors
Acquisition
The finalized sale of YY Live to Baidu for $2.1 billion in cash has removed uncertainty and mitigated downside risks to the company's net cash position.
Capital Returns
Management is expected to increase capital returns to shareholders, potentially including cash dividends in addition to its ongoing buyback.
Stock Upgrade
YY stock has been upgraded to Buy with a set price target of $63 following the clearance of the overhang from the YY Live sale.
Negative Factors
Deal Uncertainties
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 (YY) vs. SPDR S&P 500 ETF (SPY)

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 its live streaming services. The company employs a virtual gifting model, where users purchase virtual items and gifts to send to content creators during live streams. These purchases are made using in-app currencies, which are bought with real money. JOYY also earns revenue from advertising on its platforms, as businesses pay to reach the company's broad and engaged user base. In addition to these revenue streams, JOYY may engage in strategic partnerships and collaborations that enhance its service offerings and expand its market presence, further contributing to its financial performance.

JOYY Earnings Call Summary

Earnings Call Date:Mar 20, 2025
(Q4-2024)
|
% Change Since: -10.15%|
Next Earnings Date:Jun 03, 2025
Earnings Call Sentiment Positive
JOYY's earnings call presented a strong focus on global expansion and non-livestreaming revenue growth, with substantial profitability and shareholder returns. However, challenges such as a decline in livestreaming revenue and significant goodwill impairment charges were noted. Despite these challenges, the positive highlights, particularly in non-GAAP net profit and robust non-livestreaming growth, outweigh the lowlights.
Q4-2024 Updates
Positive Updates
Strong Global Revenue Growth
In 2024, JOYY's global market revenue, excluding Mainland China, accounted for 89.6% of total revenue. Developed Countries saw a year-over-year revenue increase of 24.6%, boosting their share of the group's revenue to 53.9%.
Record Non-GAAP Net Profit
JOYY achieved a non-GAAP net profit of $96.1 million in the fourth quarter, up 57.1% quarter-over-quarter. For the full year 2024, the non-GAAP net profit was $298.5 million, a year-over-year increase of 2.0%.
BIGO Segment Performance
BIGO achieved revenues of $1.99 billion in 2024, a year-over-year increase of 3.3%, and a non-GAAP net profit of $314.6 million, up 4.2% year-over-year.
Robust Non-Livestreaming Revenue Growth
Non-livestreaming revenue increased 55.9% year-over-year to $449.8 million in 2024, accounting for 20.1% of total group revenue, up 7.4 percentage points from 2023.
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, alongside a $300 million share repurchase program until 2027.
Negative Updates
Livestreaming Revenue Decline
The group experienced a decline in livestreaming revenue due to adjustments in BIGO’s non-core audio livestreaming product and a temporary removal from platforms, though it still met revenue guidance due to strong performance in other areas.
Goodwill Impairment Charges
Non-cash goodwill impairment charges of $454.9 million were recorded, primarily due to lower valuations amid current market conditions affecting prior acquisitions.
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.
Company Guidance
In the fourth quarter of 2024, JOYY Inc. reported a group revenue of $549.4 million, with a non-GAAP net profit of $96.1 million, marking a 57.1% increase quarter-over-quarter. The BIGO segment, a core business unit, generated $480 million in revenue and achieved a non-GAAP operating profit of $81 million, up 11.2% sequentially. 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 BIGO segment alone contributed $1.99 billion in revenue, experiencing a 3.3% increase year-over-year, and a non-GAAP net profit of $314.6 million, up by 4.2%. The company emphasized its strategic focus on enhancing monetization in developed markets, leading to a 24.6% revenue growth in these regions, now comprising 53.9% of total revenue. Additionally, JOYY's non-livestreaming revenue saw a significant 55.9% year-over-year growth, reaching $449.8 million, and is expected to maintain double-digit growth in 2025. The company also announced a quarterly cash dividend program amounting to $600 million over three years and a new share repurchase plan of $300 million through December 2027, reflecting a commitment to optimizing shareholder value.

JOYY Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.24B2.27B2.41B2.62B2.03B
Gross Profit806.20M813.03M852.13M837.90M569.60M
EBITDA167.63M422.42M158.71M119.81M292.59M
Net Income-146.24M301.82M600.00M-103.33M
Balance Sheet
Total Assets7.52B8.48B9.07B9.12B8.08B
Cash, Cash Equivalents and Short-Term Investments1.81B3.69B3.94B4.39B3.55B
Total Debt31.04M488.53M907.58M940.85M913.05M
Total Liabilities2.76B3.19B3.57B3.49B1.78B
Stockholders Equity4.71B5.16B5.18B5.53B6.23B
Cash Flow
Free Cash Flow224.16M213.57M247.28M25.54M362.27M
Operating Cash Flow308.66M295.58M316.49M210.42M524.10M
Investing Cash Flow-210.25M420.37M-510.28M789.59M828.82M
Financing Cash Flow-707.83M-841.75M-321.91M-723.54M

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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TMTME
78
Outperform
$29.85B23.4014.37%0.92%4.59%83.27%
67
Neutral
$9.05B-4.29%21.11%87.93%
66
Neutral
$1.37B8.0212.39%-11.02%-5.17%
61
Neutral
$40.69B-0.79-11.97%3.78%2.11%-69.16%
59
Neutral
$552.07M-1.62%119.03%-7.15%22.29%
YYYY
52
Neutral
$2.19B14.64-2.96%-1.33%-148.56%
50
Neutral
$210.95M-6.76%-18.43%-349.12%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YY
JOYY
38.14
3.21
9.19%
MOMO
Hello Group
8.54
2.27
36.20%
BILI
Bilibili
22.48
5.31
30.93%
HUYA
Huya
2.43
0.15
6.58%
TME
Tencent Music Entertainment Group
20.04
4.96
32.89%
DOYU
DouYu International Holdings
6.99
3.70
112.46%
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.Date of analysis: ―