JOYY Inc. Reports Strong Q2 2024 Financial Results
JOYY Reports Second Quarter 2024 Unaudited Financial Results
JOYY Inc. (NASDAQ: YY) has released its unaudited financial results for the second quarter of 2024, demonstrating a solid performance amid challenging market conditions.
Second Quarter 2024 Financial Highlights
During this quarter, JOYY recorded net revenues reaching US$565.1 million, surpassing last year's figures of US$547.3 million. Despite the revenue growth, the net income attributable to JOYY's controlling interest fell to US$52.1 million, down from US$155.1 million from the same period in 2023.
Non-GAAP Financial Performance
When adjusted for certain non-GAAP items, net income attributable to controlling interest and common shareholders of JOYY was US$74.0 million compared to US$97.3 million year-over-year.
Operational Performance Overview
The Company reported various operational metrics for the second quarter. The average mobile monthly active users (MAUs) of Bigo Live were approximately 37.7 million, a slight decline from 38.5 million in 2023. Likewise, the platform Likee experienced a reduction in its mobile MAUs down to 35.6 million from 43.2 million, attributed to a strategic pivot towards user acquisition efficiency.
User Engagement and Growth
Hago reported an average mobile MAU of 4.4 million, a decrease from 5.5 million compared to the previous year. The global average mobile MAUs across JOYY's platforms totaled 275.2 million, maintaining a stable position compared to 275.6 million last year.
Revenue Breakdown
Live streaming revenues accounted for US$459.7 million during Q2 2024, a slight decline from US$477.0 million year-over-year. However, other revenues surged by nearly 49.8%, contributing US$105.4 million compared to US$70.4 million in the second quarter of 2023, reflecting notable growth in advertising revenues.
Cost Dynamics and Profitability
The cost of revenues rose by 4.8% to US$366.2 million. The increase largely stemmed from higher revenue-sharing fees and content costs, which escalated to US$263.9 million. JOYY's gross profit for Q2 was US$198.9 million, slightly above US$197.8 million from the previous year, representing a gross margin of 35.2%.
Operational Efficiency
Operating expenses totaled US$198.7 million, up from US$191.7 million in 2023. Notably, research and development expenses saw a decrease of US$5.6 million, while general and administrative expenses surged due to an impairment loss associated with equity investments.
Looking Ahead: Business Outlook
JOYY anticipates that its net revenues for the third quarter of 2024 will range between US$555 million and US$569 million. This guidance is based on current market conditions and operational strategies, reflecting the Company’s commitment to navigating macroeconomic uncertainties.
Share Repurchase Program
The share repurchase initiative continues, with JOYY purchasing back US$71.4 million of its shares during the quarter, underlining its strategic focus on enhancing shareholder value.
About JOYY Inc.
JOYY is recognized as a leading global technology company focused on enriching lives through engagement-driven technology. The Company operates multiple social products, including Bigo Live, Likee, and Hago, creating vibrant user communities across various regions.
Frequently Asked Questions
What were JOYY's net revenues for Q2 2024?
JOYY reported net revenues of US$565.1 million for the second quarter of 2024.
How did JOYY's net income change from Q2 2023 to Q2 2024?
The net income attributable to JOYY was US$52.1 million in Q2 2024, a decrease from US$155.1 million in Q2 2023.
What was the reason behind the drop in average mobile MAUs?
The reduction in average mobile MAUs was primarily due to a strategic shift towards more disciplined spending on user acquisition via advertising.
What is the outlook for JOYY in Q3 2024?
JOYY is forecasting net revenues between US$555 million and US$569 million for the third quarter of 2024.
What is JOYY's approach towards shareholder value enhancement?
JOYY has actively implemented its share repurchase program, showcasing a firm commitment to delivering long-term value to its shareholders.
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