JOYY Inc. (NASDAQ: JOYY) Reports Mixed Q1 2025 Results, Signaling Strategic Shift
SINGAPORE – In its first-quarter 2025 earnings report, JOYY Inc. (NASDAQ: JOYY), a global technology firm, unveiled financial results that present a nuanced picture of its current performance. While the period saw a decline in overall revenue, the company showcased significant improvements in profitability, driven by strategic business diversification and cost optimization. The company’s commitment to shareholder value remained evident through consistent dividend distributions and share repurchases.
Key Financial Highlights:
* Net revenues stood at $494.4 million, a decrease from $564.6 million in Q1 2024.
* JOYY achieved a net income of $45.4 million, with a non-GAAP net income of $63.2 million.
* Non-livestreaming revenues surged by 25.3% to $123.0 million, now representing 24.9% of total revenue.
* Operating income saw a significant year-over-year increase of 244.5% to $12.2 million. With a margin improved to 2.5% from 0.6% YoY.
* Shareholders benefited from $49.1 million in dividends and $22.5 million in share repurchases.
Challenges and Opportunities:
The quarter’s revenue decline, primarily attributable to a contraction in the livestreaming segment, was offset by impressive gains in profitability metrics. The substantial increase in operating income, coupled with a surge in non-livestreaming revenues, indicates the company’s successful pivot towards a more diversified business model. This expansion is fueled by rapid growth in advertising revenues through the BIGO Ads programmatic platform, with non-livestreaming revenues now representing 24.9% of total revenues.
The company has demonstrated its ability to streamline operational expenditure, resulting in a 14.5% decrease in the cost of revenues to $315.7 million, as well as notable declines in sales and marketing expenses and R&D expenses.
The company’s user metrics present a mixed bag, with a year-over-year decline in global average mobile MAUs, and total paying users down from 1.67 million to 1.45 million . However, the company maintains a robust financial standing, with net cash of $3,385.9 million.
Shareholder Returns and Outlook:
As part of its ongoing commitment to shareholders, JOYY distributed approximately $49.1 million in dividends and allocated $22.5 million towards share repurchases during the first quarter of 2025. The board has authorized a quarterly dividend of $0.94 per ADS for Q2 2025 and announced a three-year dividend program, totaling around $600 million.
For the second quarter, JOYY projects net revenues between $499 million and $519 million.
What Analysts Are Saying:
“JOYY’s Q1 results reveal a strategic rebalancing,” noted a leading analyst. “While the livestreaming segment faces headwinds, the strong growth in advertising revenue illustrates the potential of its diversified strategy.”
Edited By: CNBC News
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