Financial Performance - JOYY Inc. reported net revenues of US$507.8 million for Q2 2025, a decrease from US$565.1 million in Q2 2024 [5][6] - Live streaming revenue was US$375.4 million, down from US$459.7 million year-over-year, while non-livestreaming revenue increased by 25.6% to US$132.4 million [4][6][7] - Operating income rose to US$5.8 million from US$2.3 million in the same period last year, marking a 155.4% year-over-year increase [11] - Non-GAAP EBITDA reached US$48.2 million, up 25.7% year-over-year from US$38.4 million [12] User Metrics - Global average mobile monthly active users (MAUs) decreased to 262.5 million from 275.2 million year-over-year [5] - Average mobile MAUs for Bigo Live, Likee, and Hago were 29.6 million, 28.5 million, and 3.0 million respectively, all showing declines compared to the previous year [5] - The total number of paying users for BIGO was 1.50 million, down from 1.66 million in Q2 2024 [5] Cost and Profitability - Cost of revenues decreased by 11.9% to US$322.5 million, primarily due to a reduction in the BIGO segment [8] - Gross profit was US$185.2 million, with a gross margin of 36.5%, compared to 35.2% in Q2 2024 [9] - Operating expenses fell to US$179.8 million from US$198.7 million, with significant reductions in sales and marketing expenses [10] Shareholder Returns - The company distributed US$98.5 million in dividends and repurchased US$36.5 million worth of shares in the first half of 2025 [4] - A quarterly dividend of US$0.95 per ADS has been declared for Q3 2025, expected to be paid on October 10, 2025 [20] Business Outlook - For Q3 2025, JOYY expects net revenues to be between US$525 million and US$539 million, reflecting current market conditions and business strategies [18]

Core Viewpoint - JOYY Inc. is set to release its second quarter 2025 financial results on August 26, 2025, after the U.S. market closes, followed by an earnings conference call [1] Group 1: Earnings Announcement - The earnings conference call will take place at 9:00 PM U.S. Eastern Time on August 26, 2025 [1] - Participants can pre-register for the conference call using a provided link and will receive dial-in numbers and a unique PIN via email [1][2] - A live and archived webcast of the conference call will be available on the Company's investor relations website [2] Group 2: Company Overview - JOYY Inc. is a leading global technology company focused on enriching 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]

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]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $60.10 [5][10][6] Core Insights - The company's Q1 2025 revenue was $494 million, a year-over-year decrease of 12.44%, but it met market expectations. Adjusted net profit was $63 million, slightly above expectations due to a faster reduction in losses from the "All other" segment. The company is actively managing expenses and has returned $71.6 million to shareholders through dividends and buybacks [1][4] - The BIGO segment reported revenue of $432 million, down 14.5% year-over-year, with live streaming revenue at $352 million, down 20.5%. However, non-live business revenue grew by 27.4% to $80 million, driven by advertising growth. The company expects a sequential increase in live streaming revenue in Q2 2025 and an acceleration in advertising growth in Q3 2025 [2][4] - The "All other" segment's revenue was $60 million, with a year-over-year increase of 6%. The adjusted operating loss narrowed by 30.6% due to better-than-expected gross margins in non-live businesses and cautious expense management. The company anticipates further reductions in the expense ratio for this segment in 2025 [3][4] Financial Forecast and Valuation - The company expects revenues of $2.09 billion, $2.18 billion, and $2.30 billion for 2025, 2026, and 2027 respectively. Adjusted net profits are projected at $265 million, $285 million, and $307 million for the same years. The target price is based on a 25 PE of 11.8x, reflecting an upward adjustment due to comparable company valuations [4][10][12]

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]

Exhibit 99.1 JOYY Reports First Quarter 2025 Unaudited Financial Results Singapore, May 27, 2025 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: JOYY) ("JOYY" or the "Company"), a global technology company, today announced its unaudited financial results for the first quarter of 2025. First Quarter 2025 Financial Highlights First Quarter 2025 Operational Highlights Ms. Ting Li, Chairperson and Chief Executive Officer of JOYY, commented, "In the first quarter of 2025, we recorded net revenues of $494.4 million, with ...