Core Thesis - JOYY Inc. is viewed as an undervalued investment opportunity due to its strong financial position and operational model, despite market concerns regarding China's regulatory environment [3][4]. Financial Performance - JOYY has a market capitalization of $3.6 billion and nearly $2 billion in annual revenue, with a trailing P/E of 8.92 and a forward P/E of 9.78 [2][3]. - The company holds $3.3 billion in net cash as of Q3 2025, providing flexibility for capital returns and growth initiatives [2]. Market Valuation - The current stock price of JOYY is $62.13, but it is suggested that under a more typical global valuation multiple, the stock could approach $100 per share [3]. - The market continues to undervalue JOYY, treating it as a high-risk asset due to regulatory concerns, leading to a disconnect between its fundamentals and stock price [3][4]. Investment Opportunity - JOYY's asset-light, high-margin business model and robust cash position make it a low-risk investment with substantial upside potential [4]. - The company plans to return $89 million to shareholders through buybacks in 2025 under a $900 million authorization, indicating a commitment to enhancing shareholder value [2][4].

Group 1 - Strive, Trump Media & Technology Group, and JOYY are identified as the three social media stocks to watch, with high trading volumes recently [2] - Social media stocks are characterized as growth-oriented but volatile, influenced by user engagement, advertising demand, and regulatory changes [2] - Strive (ASST) provides social media marketing and content delivery services, focusing on platforms like Discord and TikTok [3] - Trump Media & Technology Group (DJT) operates social media platforms including TRUTH Social and TMTG News, founded in March 2024 [3] - JOYY (YY) operates various video-based social platforms, including Bigo Live and Likee, offering interactive experiences and communication services [4]

Core Thesis - JOYY Inc. is viewed positively due to its strong cash position and capital return strategy, which includes dividends and share repurchases, providing downside protection for investors while awaiting valuation normalization [2][3]. Financial Performance - JOYY's share price was $63.19 as of December 17th, with trailing and forward P/E ratios of 8.92 and 9.78 respectively [1]. - The company has guided for approximately $900 million in cumulative dividends and buybacks between 2025 and 2027, with a current quarterly dividend of $0.97, implying a yield of roughly 6% [3]. - JOYY holds $3.32 per share in cash as of Q3, indicating minimal leverage and liquidity risks [3]. Business Segments - Bigo Live is a significant revenue driver, generating $388 million in live-streaming revenue in Q3, accounting for over 70% of total revenue, primarily through virtual gifting [4]. - BIGO Ads has shown substantial growth, with ad revenue increasing by 29% year-over-year to $112.5 million, and BIGO Ads revenue rising 33% year-over-year to $103.9 million, including nearly 20% sequential growth [4]. Growth Catalysts - Near-term sentiment for JOYY could improve due to factors such as enhanced advertising growth, increased third-party demand, and further monetization of iOS [4]. - The company's core live-streaming business is mature, but recent earnings indicate accelerating momentum in its AdTech and SaaS initiatives, which are becoming increasingly important to the investment narrative [4]. Market Position - JOYY is trading at approximately 12.5x forward earnings, and sustained growth of over 20% in BIGO Ads could lead to a significant rerating alongside ongoing capital returns [4].

Financial Data and Key Metrics Changes - In Q4 2024, total net revenues were $549.4 million, down from $569.8 million in the same period last year [41] - Non-GAAP net income attributable to controlling interest was $96.1 million, up 49.7% from $64.2 million in Q4 2023 [48] - For the full year 2024, total net revenues were $2.24 billion, compared to $2.27 billion in 2023 [50] Business Line Data and Key Metrics Changes - The BIGO segment achieved revenues of $480 million in Q4 2024, with a non-GAAP operating profit of $81 million, up 11.2% quarter-over-quarter [16][47] - Non-livestreaming revenues for the group were $127 million, up 51.9% year-over-year, primarily due to increased BIGO advertising revenues [42] - BIGO's non-GAAP operating profit for the full year reached $286.3 million, exceeding previous expectations [17] Market Data and Key Metrics Changes - Revenue from Developed Countries increased by 24.6% year-over-year, accounting for 53.9% of total revenue [9] - Group revenues from Developed Countries and regions were up by 13.7% year-over-year [42] - The group's non-livestreaming revenue accounted for 20.1% of total group revenue, an increase of 7.4 percentage points compared to 2023 [20] Company Strategy and Development Direction - JOYY is focusing on a globalization strategy, emphasizing markets in Developed Countries for higher monetization efficiency [8] - AI is a key component of the company's strategy, aimed at enhancing product development and improving customer service [11][12] - The company aims to balance growth and efficiency while maintaining profitability and positive cash flow [10] Management's Comments on Operating Environment and Future Outlook - Management expects a stronger than usual negative seasonality impact in Q1 2025 due to Lunar New Year and Ramadan [60] - Despite recent challenges, management believes the adjustments made have provided a healthier foundation for 2025 [62] - For 2025, management anticipates continued strong growth in non-livestreaming revenue and gradual recovery in paying users for the BIGO segment [63] Other Important Information - The company announced a quarterly cash dividend program for the next three years, totaling approximately $600 million [22][52] - A new share repurchase program was approved, allowing for the repurchase of up to $300 million of shares until December 2027 [23] - The company reported a net cash position of $3.3 billion as of December 31, 2024 [22] Q&A Session Summary Question: User and revenue trends in 2025 - Management noted that non-livestreaming revenues continued to grow, while live streaming revenue declined due to adjustments and temporary platform removals [58][59] - They expect a lagging impact on monetization but do not foresee long-term growth being affected [61] Question: Outlook on 2025 experience and profitability change - Management highlighted operational efficiency improvements and expected stable non-GAAP operating profit for the BIGO segment in 2025 [70][71] - They anticipate a meaningful reduction in non-GAAP operating loss for all other segments [72] Question: Shareholder return plan rationale - The company has returned $1.684 billion to shareholders from 2020 to 2024 and plans to continue prioritizing shareholder returns [75] - The new plan represents approximately 35% of the current market cap, demonstrating commitment to sustainable shareholder returns [76] Question: Strategic priority and positioning for new initiatives - BIGO's advertising revenue is expected to maintain robust growth, driven by North America and Europe [81] - The company aims to enhance monetization efficiency and achieve positive cash flow for new initiatives [84]