Core Insights - The company reported Q1 2025 revenue of $494 million, a year-over-year decline of 12.4%, primarily due to a significant drop in live streaming revenue [1] - Core live streaming revenue was $371 million, down over 20% compared to the same period last year [1] - The sale of YY Live was completed in this quarter, resulting in a confirmed gain of approximately $1.876 billion, leading to a net profit attributable to shareholders of $1.92 billion [1] Live Streaming Business Challenges - The company is focusing on overseas markets, including BigoLive, Likee, and Hago, but the live streaming segment is experiencing a downturn [1] - BIGO's paid user count decreased by 13.2% to 1.45 million, with average revenue per user dropping by about 5.8% to $221.6 [1] - Average monthly active users for BigoLive fell to 28.9 million from 37.1 million in the same quarter last year [1] - The company is adjusting the interactive features of non-core audio live streaming products and optimizing revenue-sharing mechanisms [1] Advertising Business Growth - In contrast to the decline in live streaming, the advertising and smart business platform is entering a rapid growth phase, with non-live revenue increasing by 25.3% to $12.3 million [3] - BIGO's non-live revenue grew by 27.3% to $8.026 million, accounting for over 60% of total non-live revenue [3] - The advertising segment, BIGOAds, is expanding due to multi-channel budget allocation and demand based on return on investment [3] - The company has seen significant improvements in gross margin and operating margin for the BIGO segment, with Q1 gross margin at 35.5% and operating margin at 13.3% [3]

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]