Core Insights - JOYY Inc. is undergoing a significant transformation, moving beyond its identity as a typical live-streaming company [1] Company Overview - JOYY Inc. is identified as a tech stock that is gaining attention in the market [1] - The company is associated with a data-driven approach to finance, aiming to provide insights and assist investors [1]

Core Insights - JOYY Inc. has been recognized as a "Most Honored Company" in the 2025 Asia Companies' Executive Team Survey by Extel, highlighting its strong performance in executive leadership and corporate governance [1][2]. Company Performance - JOYY achieved top rankings in the Overall Asia (ex-Japan/ANZ) Executive Team Small & Mid-Cap category in the internet sector across seven evaluated areas, including Best CEO, Best CFO, Best ESG, Best Board of Directors, Best IR Team, Best IR Professional, and Best IR Program [2][3]. - Ms. Li Ting, Chairperson and CEO of JOYY, was ranked No. 1 in the Best CEO category for the Small & Mid-Cap Internet sector, while Mr. Alex Liu, Vice President of Finance, secured top positions in the Best CFO category [3]. Investor Relations Excellence - JOYY achieved the highest ranking in the Best IR Program, which is assessed based on nine key attributes such as the quality of roadshows, comprehensive business knowledge, and timely disclosures [3]. - The Extel Asia Executive Team survey is based on feedback from 5,437 buy-side professionals and 863 sell-side analysts, evaluating a total of 1,668 companies across 18 sectors [4]. Company Overview - JOYY is a leading global technology company focused on enriching lives through technology, with a diversified product portfolio that includes live streaming, short-form videos, casual games, and instant messaging [5]. - The company has evolved into a multifaceted ecosystem powered by AI and data-driven technologies, and its American Depositary Shares (ADSs) have been listed on NASDAQ since November 2012 [5].

Core Viewpoint - The article discusses the phenomenon of "cigarette butt stocks" in the Chinese internet sector, particularly focusing on social media companies that, despite having strong business models and profitability, are trading at low valuations, often below their cash reserves [4][5][23]. Group 1: Definition and Characteristics of Cigarette Butt Stocks - Cigarette butt stocks are generally defined as those whose market capitalization falls below their cash reserves, often indicated by a price-to-book (PB) ratio of less than 1 [5]. - The term gained popularity through Warren Buffett's analogy, where he likened finding such stocks to picking up a cigarette butt that can still provide a puff of profit [5]. Group 2: Case Studies of Social Media Companies - Zhihu, a prominent Q&A platform, has a market capitalization of approximately $350 million, while its cash reserves are close to $6 billion, indicating a significant disparity [17][18]. - Momo, a leader in stranger social networking, has a market cap around $1.134 billion, with net cash of $1.4 billion and a TTM price-to-earnings ratio of about 7, showcasing its profitability despite a declining stock price [6][7]. - Weibo, another major player, has a market cap of $2.36 billion, which is less than its cash reserves of $2.4 billion, and it has maintained a high profit margin with a net income of approximately $396 million [13][14]. Group 3: Financial Performance and Shareholder Returns - Momo reported revenues of 2.52 billion yuan and a profit exceeding 400 million yuan, with an adjusted net profit forecast of 1.233 billion yuan for 2024, indicating strong financial health [6][8]. - Momo has returned significant value to shareholders through stock buybacks, repurchasing 13% of its shares in 2024, and offering a dividend of $0.54 per share, translating to a yield of about 10% [8][9]. - Weibo has also been generous with dividends, distributing over $0.8 per share annually since 2023, resulting in a yield exceeding 8% based on current stock prices [15]. Group 4: Market Dynamics and Challenges - The article highlights a "reverse network effect" where social media platforms experience rapid user decline, making it difficult to recover once they enter a downward cycle [28][30]. - Companies like Momo and Soul have seen significant drops in active users, with Momo's paid users decreasing by 40% over three years, reflecting the challenges in maintaining user engagement [30][33]. - The article notes that many social media platforms struggle with monetization, often relying on low-efficiency value-added services, which leads to poor revenue generation compared to their user base [33][34]. Group 5: Broader Implications and Trends - The decline of these social media stocks is not merely a result of poor performance but also reflects broader market trends and investor sentiment towards the internet sector [23][24]. - The article suggests that despite their strong fundamentals, these companies are viewed as cigarette butt stocks due to their low market valuations, leading to a lack of investor interest [31][39].

Core Viewpoint - JOYY Inc. reported a 12.4% year-over-year decline in revenue for Q1 2025, primarily due to a significant drop in live streaming business revenue, which decreased over 20% compared to the same period last year [1][4] Group 1: Financial Performance - Q1 2025 revenue was $494 million, with live streaming revenue at $371 million [1] - Non-live revenue reached $123 million, showing a 25.3% year-over-year increase [1][4] - The sale of YY Live to Baidu for approximately $2.1 billion resulted in a confirmed gain of about $1.876 billion, contributing to a net profit of $1.92 billion for shareholders [1][6] Group 2: User Metrics - BIGO's paid user count decreased by 13.2% to 1.45 million, with average revenue per paying user (ARPPU) dropping by 5.8% to $221.6 [2] - BIGO Live's average monthly active users fell to 28.9 million from 37.1 million year-over-year [2] Group 3: Strategic Shift - The company is focusing on diversifying its revenue sources by emphasizing non-live business as a second growth engine [4][5] - Non-live revenue growth is primarily driven by advertising, particularly from BIGO Ads, which saw a 27.3% increase to $80.26 million [4] Group 4: Market Challenges - The live streaming sector faces intensified competition and changing user preferences, compounded by a challenging global economic environment [4][5] - The domestic market is pressured by leading platforms like Douyin and Kuaishou, while international competition from TikTok and Kwai is increasing customer acquisition costs [5] Group 5: Acquisition Context - The acquisition of YY Live by Baidu, initially valued at $3.6 billion, was completed at a significantly reduced price of $2.1 billion, reflecting a 40% discount [6][7] - The acquisition faced delays due to allegations of fraud against JOYY, which were later disproven, but the incident impacted the company's reputation [7] Group 6: Long-term Outlook - The sale of YY Live is seen as a strategic move to concentrate resources on more promising overseas markets and non-live business areas, enhancing financial stability and risk management [7]

Core Insights - JOYY Inc. reported Q1 2025 revenue of $494.4 million, with non-live revenue reaching $123 million, a year-over-year increase of 25.3% [2] - The company's GAAP and non-GAAP operating profits for Q1 were $12.2 million and $31 million, reflecting year-over-year growth of 244.5% and 24.9% respectively [2] - JOYY's cash flow from operations for the quarter was $58 million, and the company returned $49.1 million to shareholders through dividends and stock buybacks [2] Group 1: Live Streaming Business - JOYY's live streaming revenue for Q1 was $371.3 million, with BIGO Live contributing $351.6 million [3] - The monthly active users in North America for BIGO Live grew over 7% year-over-year, while the number of paying users increased approximately 4% quarter-over-quarter [3] - The company is deploying a diverse product matrix in verticals such as live streaming, short videos, and instant messaging to build a globally influential user community [3] Group 2: Non-Live Revenue Growth - Non-live revenue accounted for 24.9% of total revenue in Q1, marking its first significant contribution as a second growth curve for the company [4] - BIGO Ads experienced a year-over-year growth of approximately 27%, driven by localized operations, proprietary traffic resources, and advanced algorithm models [4] - The gross margin and operating margin for BIGO improved significantly, with non-live revenue growth driving overall business gross margin up to 42.1% [4] Group 3: Future Outlook - The company anticipates a recovery in BIGO's revenue in Q2, with expectations for non-GAAP operating profit to stabilize and potentially grow throughout the year [4] - JOYY's diverse product matrix covers over 260 million users globally, enhancing its appeal to advertisers and integrating cutting-edge generative AI technology into its advertising business [4]

Core Viewpoint - JOYY is seeking new growth engines amid a peak in global entertainment live streaming industry and declining growth rates [1][2] Financial Performance - In Q1 2025, JOYY reported revenue of $494 million, a decrease of 12.4% from $565 million in Q1 2024, primarily due to a sharp decline in live streaming revenue [1] - Core live streaming revenue was $371 million, down over 20% year-on-year [1][3] - The sale of YY Live generated a confirmed gain of approximately $1.876 billion, leading to a net profit of $1.92 billion attributable to shareholders [1] - Non-GAAP operating profit was $31 million, an increase of 24.9% year-on-year [1] Business Segments - JOYY's advertising business has shown strong performance, becoming a key driver for non-live business growth, with non-live revenue increasing by 25.3% to $123 million [2][6] - The non-live revenue from BIGO Ads grew by 27.3% to $80.26 million, accounting for over 60% of total non-live revenue [6] - The number of paying users in the BIGO segment decreased by 13.2%, with average revenue per paying user (ARPPU) declining by approximately 5.8% to $221.6 [2][3] Market Trends - The global live streaming market has seen a decline in user conversion rates since 2021, with high content investment and subsidy costs making profitability more challenging [3] - The industry is experiencing a shift as platforms seek new directions, with JOYY focusing on overseas markets and optimizing its revenue-sharing mechanisms [3][4] - Despite the decline in live streaming revenue, JOYY's live streaming income in developed markets increased by 2.8 percentage points to 47.4% [4] Strategic Focus - JOYY is shifting its strategic focus towards "tooling + advertising platform," moving towards B2B services [7] - The company aims to prioritize user growth in developed countries and the Middle East, responding to regional differences in online entertainment spending [3][7] - The market remains cautious about JOYY's transformation path, as balancing profitability and investment amid ongoing live streaming business fatigue is a key challenge for the upcoming quarters [7]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $494 million, with non-live streaming revenue reaching $123 million, a year-over-year increase of 25.3% [8][29] - Non-GAAP operating profit was $31 million, reflecting a year-over-year increase of 25% [9][35] - Operating cash flow was strong at $58 million, with dividends distributed amounting to approximately $49.1 million and share repurchases of about $22.5 million [9][36] Business Line Data and Key Metrics Changes - Live streaming revenue was $351.3 million, with Bigo contributing $352 million, aligning with expectations [30] - Non-live streaming revenue accounted for 24.9% of total group revenues, up from 17.4% in the same period last year [31] - Bigo's non-live streaming revenues, primarily from advertising, increased by 27.3% year-over-year to $80.3 million [32] Market Data and Key Metrics Changes - In developed countries, live streaming revenue increased, with North America seeing a 7% year-over-year growth in MAUs [16] - The Middle East market remains a strategic priority due to strong monetization potential and high engagement [18] - Bigo achieved approximately $18 million in advertising revenue, a year-over-year growth of about 27% [20] Company Strategy and Development Direction - The company is focusing on diversifying its revenue streams, with non-live streaming businesses expected to become a second growth engine [12][26] - A multi-agent approach is being adopted to establish a sustainable long-term growth roadmap [12] - The advertising platform, Bigo Ads, is being enhanced through AI technologies to improve targeting and ROI for advertisers [23][24] Management's Comments on Operating Environment and Future Outlook - Management anticipates stabilization in live streaming revenue starting in Q2 2025, with positive quarter-over-quarter growth expected [45] - Non-live streaming businesses are projected to accelerate revenue growth in the second half of the year [46] - The company remains committed to delivering sustainable, profitable growth and long-term value for shareholders [38][62] Other Important Information - The company has a healthy balance sheet with a strong net cash position of $3.4 billion as of March 31, 2025 [36] - Shareholder returns are a key component of the capital allocation strategy, with consistent dividends and share repurchases [37][60] Q&A Session Summary Question: Can management comment on the overall monetization trend in the second half, particularly for Bigo Life? - Management expects live streaming revenue to stabilize and resume positive growth in Q2, driven by high-quality user acquisition strategies [45] Question: What are the trends in operating expenses and margin outlook for 2025? - Management noted improvements in gross margins for both Bigo and other segments, with expectations for continued positive trends in operating profit for the full year [48] Question: Can management share updates on new initiatives in 2025 and the reasons behind Bigo Ads' accelerating growth? - Management highlighted the need for advertisers to diversify their placement budgets and the advantages of Bigo Ads' extensive user base and AI capabilities for effective targeting [53][56] Question: What are the insights on shareholder return policies and capital return strategies? - Management reiterated the commitment to shareholder returns through dividends and share repurchases, while also focusing on resource allocation to support growth in non-live streaming businesses [60][62]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $494 million, with non-live streaming revenue reaching $123 million, a year-over-year increase of 25.3% [7][30] - Non-GAAP operating profit was $31 million, reflecting a year-over-year increase of 25% [8][36] - Operating cash flow was strong at $58 million, and the company distributed approximately $49.1 million in dividends to shareholders [8][39] Business Line Data and Key Metrics Changes - Live streaming revenue was $351.3 million, with Bigo contributing $350.1 million, in line with expectations [31] - Non-live streaming revenue accounted for 24.9% of total group revenues, up from 17.4% in the same period last year [32] - Bigo's non-live streaming revenues, primarily from advertising, increased by 27.3% year-over-year to $80.3 million [33] Market Data and Key Metrics Changes - In developed countries, live streaming revenue increased, with Bigo Life's North American region seeing MAU growth exceeding 7% year-over-year [16] - The Middle East market remains a strategic priority due to strong monetization potential and high engagement [17] Company Strategy and Development Direction - The company is focusing on diversifying its revenue streams, particularly through its advertising and smart commerce platforms, which are expected to become significant growth engines [12][26] - A strategic transition is underway to prioritize high-quality organic growth and operational efficiency [28][40] Management's Comments on Operating Environment and Future Outlook - Management expects live streaming revenue to stabilize and resume positive growth in the second quarter of 2025 [47] - The advertising business is anticipated to accelerate in the second half of the year, driven by increased demand and improved monetization strategies [48] Other Important Information - The company has maintained a healthy balance sheet with a strong net cash position of $3.4 billion as of March 31, 2025 [38] - Shareholder returns remain a key focus, with ongoing dividends and share repurchases [39][61] Q&A Session Summary Question: Insights on the second half business outlook and cost optimization - Management noted that adjustments made to the live streaming business are expected to stabilize revenue and improve user acquisition strategies [44][46] - Cost optimization efforts have led to improved margins and a positive outlook for operating expenses in 2025 [48][50] Question: Updates on new initiatives and reasons behind advertising growth - Management highlighted the need for advertisers to diversify their placement strategies, which has driven growth in Bigo Ads [52][54] - The advertising business benefits from a large user base and advanced AI capabilities, contributing to profitability [56][58] Question: Shareholder return policies and capital return strategies - The company remains committed to shareholder returns through dividends and share repurchases while optimizing resource allocation for growth [60][62]

Financial Highlights - The company reported net revenues of $494.4 million for Q1 2025, a decrease from $564.6 million in Q1 2024 [5] - Non-livestreaming revenues reached $123.0 million, marking a year-over-year increase of 25.3% and accounting for 24.9% of total net revenues for the first time [4][8] - Live streaming revenues were $371.3 million, down from $466.4 million in the same period last year, attributed to a decline in paying users and ARPPU [6][5] - GAAP operating profit was $12.2 million, a 244.5% increase year-over-year, while non-GAAP operating profit was $31.0 million, up 24.9% [12][13] - The company distributed approximately $49.1 million in dividends and repurchased $22.5 million worth of shares from January 1, 2025, to May 23, 2025 [4] Operational Highlights - The global average mobile MAUs decreased to 260.4 million from 277.3 million year-over-year, primarily due to optimized sales and marketing strategies [7] - The average mobile MAUs for Bigo Live, Likee, and Hago were 28.9 million, 30.2 million, and 3.3 million, respectively, all showing declines compared to the previous year [7] - The total number of paying users for BIGO was 1.45 million, down from 1.67 million in the same period last year [7] Cost and Profitability - Cost of revenues decreased by 14.5% to $315.7 million, leading to a gross profit of $178.6 million, with a gross margin of 36.1% [9][10] - Operating expenses were reduced to $167.2 million, down from $195.4 million in Q1 2024, with significant decreases in sales and marketing expenses [11] - Non-GAAP net income from continuing operations was $63.2 million, compared to $67.2 million in Q1 2024, with a non-GAAP net income margin of 12.8% [15] Balance Sheet and Cash Flow - As of March 31, 2025, the company had net cash of $3,385.9 million, an increase from $3,275.9 million at the end of 2024 [17] - Net cash from operating activities for Q1 2025 was $58.0 million [17] Business Outlook - For Q2 2025, the company expects net revenues to be between $499 million and $519 million, reflecting current market conditions and operational strategies [20] Shareholder Returns - The company has authorized a quarterly dividend program, with a total of approximately $600 million to be distributed over three years, declaring a dividend of $0.94 per ADS for Q2 2025 [22]

Group 1 - JOYY Inc. plans to release its first quarter 2025 financial results after the U.S. market closes on May 26, 2025 [1] - An earnings conference call will be hosted by the company's management at 9:00 PM U.S. Eastern Time on May 26, 2025 [1] - Participants can pre-register for the conference call and will receive dial-in numbers and a unique PIN via email [1][2] Group 2 - JOYY is a leading global technology company with a mission to enrich lives through technology [3] - The company has a diversified product portfolio that includes live streaming, short-form videos, casual games, instant messaging, and advertising initiatives [3] - JOYY has been listed on NASDAQ since November 2012 and operates globally with a focus on localized strategies [3]