JOYY Announces Second Quarter 2024 Unaudited Financial Results
JOYY Inc. (NASDAQ: YY) has shared its unaudited financial results for the second quarter of 2024, showcasing a strong performance despite facing tough market conditions.
Financial Highlights for the Second Quarter of 2024
In this quarter, JOYY achieved net revenues of US$565.1 million, which is an increase from US$547.3 million recorded last year. However, the net income attributable to JOYY's controlling interest decreased to US$52.1 million, down from US$155.1 million during the same period in 2023.
Non-GAAP Financial Insights
When adjusted for specific non-GAAP items, the net income attributable to controlling interest and common shareholders of JOYY was US$74.0 million, compared to US$97.3 million from the previous year.
Operational Performance Summary
The Company provided various operational metrics for the second quarter. The average mobile monthly active users (MAUs) of Bigo Live stood at approximately 37.7 million, a slight decline from 38.5 million in 2023. Similarly, Likee saw a drop in its mobile MAUs, which fell to 35.6 million from 43.2 million, due to a strategic shift towards more efficient user acquisition.
User Engagement and Growth Trends
Hago reported an average mobile MAU of 4.4 million, down from 5.5 million compared to the previous year. Overall, JOYY's platforms maintained a stable global average of mobile MAUs, totaling 275.2 million, slightly down from 275.6 million last year.
Revenue Analysis
During Q2 2024, live streaming revenues amounted to US$459.7 million, reflecting a slight decrease from US$477.0 million year-over-year. On the other hand, other revenues experienced a remarkable growth of nearly 49.8%, reaching US$105.4 million compared to US$70.4 million in the second quarter of 2023, indicating a significant rise in advertising revenues.
Cost Trends and Profitability
The cost of revenues increased by 4.8%, totaling US$366.2 million. This rise was primarily driven by higher revenue-sharing fees and content costs, which climbed to US$263.9 million. JOYY's gross profit for Q2 was US$198.9 million, slightly exceeding US$197.8 million from the previous year, resulting in a gross margin of 35.2%.
Operational Efficiency Insights
Operating expenses reached US$198.7 million, up from US$191.7 million in 2023. Notably, research and development expenses decreased by US$5.6 million, while general and administrative expenses increased due to an impairment loss related to equity investments.
Future Outlook: Business Projections
JOYY expects its net revenues for the third quarter of 2024 to fall between US$555 million and US$569 million. This forecast is based on current market dynamics and strategic operational plans, reflecting the Company's dedication to managing macroeconomic challenges.
Share Repurchase Initiative
The share repurchase program is ongoing, with JOYY repurchasing US$71.4 million worth of its shares during the quarter. This move underscores the Company's commitment to enhancing shareholder value.
About JOYY Inc.
JOYY is recognized as a prominent global technology company dedicated to improving lives through engagement-driven technology. The Company manages multiple social products, including Bigo Live, Likee, and Hago, fostering vibrant user communities across diverse 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 caused the decline in average mobile MAUs?
The drop in average mobile MAUs was mainly due to a strategic focus on more efficient spending for user acquisition through advertising.
What is JOYY's outlook for Q3 2024?
JOYY is projecting net revenues between US$555 million and US$569 million for the third quarter of 2024.
How is JOYY enhancing shareholder value?
JOYY is actively pursuing its share repurchase program, demonstrating a strong commitment to delivering long-term value to its shareholders.
