Get alerts: Strive, Trump Media & Technology Group, and JOYY are the three Social Media stocks to watch today, according to MarketBeat’s stock screener tool. Social media stocks are shares of publicly traded companies whose primary business is operating social networking platforms or related services that connect users, host user-generated content, and monetize attention through advertising, subscriptions, or data-driven products. For investors, these stocks are typically seen as growth-oriented but often ...

Core Insights - JOYY reported Q2 2025 net revenue of $507.8 million, a 10% year-over-year decline [1] - Non-GAAP net profit attributable to JOYY's shareholders was $77 million, up from $74 million in the same period last year, with diluted earnings per ADS at $1.44 compared to $1.17 [1] - Q2 live streaming revenue was $375.4 million, down 18% from $459.7 million year-over-year, while other business revenue increased by 25.6% to $132.4 million [1] User Metrics - Global average monthly active users (MAU) were 262.5 million, down from 275.2 million year-over-year [1] - BigoLive's average mobile MAU decreased to 29.6 million from 37.7 million [1] - Likee's average mobile MAU fell to 28.5 million from 35.6 million, and Hago's average mobile MAU dropped to 3 million from 4.4 million [1] Paid Users and Revenue Metrics - Total paid users for BIGO (including BigoLive, Likee, and imo) were 1.5 million, down from 1.66 million year-over-year [1] - Average revenue per paid user (ARPPU) for BIGO was $215.2, compared to $233.5 in the previous year [1] Future Outlook - JOYY expects Q3 2025 revenue to be between $525 million and $539 million [2]

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. 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]

Investment Rating - The report maintains a "Buy" rating for the company, YY US, with a target price of $60.00, indicating a potential upside of 29.9% from the current price of $46.19 [1][29]. Core Insights - The first quarter profits exceeded expectations, with revenue reported at $490 million, a year-on-year decline of 12%. The live streaming revenue decreased by 20%, primarily due to adjustments in non-core voice streaming business and the prior removal of BIGO Live. However, there are signs of marginal improvement in key developed markets, such as a 4% quarter-on-quarter increase in paying users in North America [2][7]. - Non-live revenue grew by 25%, now accounting for 25% of total revenue, with advertising revenue increasing by 27% and SaaS business growing over 20% [2][7]. - The adjusted net profit for the quarter was $63 million, better than the expected $53 million [2][7]. - The company has a stable shareholder return plan, with $600 million in dividends and $300 million in buybacks over three years, representing an average annual return of 13% of market capitalization [2][7]. Financial Forecasts - Revenue forecasts for 2025 have been slightly reduced by 3% to $2.122 billion, reflecting a year-on-year decline of 5%. The adjusted net profit forecast for 2025 has been increased to $267 million [5][30]. - The company expects a recovery in BIGO live streaming revenue and accelerated growth in advertising revenue in the second quarter, which may offset the impact of adjustments in the live streaming business [2][7]. - The financial model indicates a stable gross margin expectation despite the anticipated increase in advertising revenue, which typically has a lower profit margin [2][7]. Financial Data - As of the end of the first quarter, the company reported net cash of $3.4 billion, approximately 150% of its current market capitalization [2][13]. - The company has maintained a consistent cash flow, with operating cash flow reported at $58 million for the first quarter [18][31]. - The projected financials for 2025 include total revenue of $2.122 billion, with a gross profit of $764 million and a net profit of $212 million [30][31].

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 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]

Core Viewpoint - The article discusses the challenges faced by Huya, Douyu, and JOYY (formerly YY) in the post-live streaming era, highlighting JOYY's attempts to pivot towards international markets and diversify its revenue streams amidst declining user engagement and profitability concerns [1][10][18]. Financial Performance - JOYY reported a total revenue of $2.24 billion for 2024, a slight decrease of 1.3% year-on-year [3]. - The company recorded a net loss of $146 million under GAAP, primarily due to asset revaluation after the divestiture of YY Live and a non-cash goodwill impairment of $455 million [3]. - On a Non-GAAP basis, JOYY achieved a net profit of $298.5 million, marking a 2% increase year-on-year, indicating the core business's ability to generate cash flow [3]. Revenue Structure - The core BIGO segment contributed 88% of total revenue, growing by 3.3% year-on-year to $1.99 billion, serving as a stabilizing factor for the company's performance [4]. - Non-live revenue saw significant growth, increasing by 55.9% to $449.8 million, rising from 12.7% to 20.1% of total revenue, indicating a successful shift in strategy [5]. User Engagement Challenges - Despite the growth in non-live revenue, user attrition remains a significant concern, with average monthly active users (MAUs) for BigoLive, Likee, and Hago showing a downward trend [6]. - The total number of paying users decreased to 1.54 million, with ARPPU (average revenue per paying user) declining by approximately 5% to $237.1 [6]. Strategic Shifts - JOYY is focusing on international markets, with nearly 90% of its revenue coming from outside mainland China, and revenue from developed countries growing by 24.6% to account for 53.9% of total revenue [11]. - The company aims to enhance its advertising platform, expecting strong double-digit growth in this segment by 2025 [11]. Market Competition and Regulatory Environment - The competitive landscape is intensifying with the rise of platforms like TikTok, which is merging short video and live streaming, leading to increased competition for user attention [12][18]. - JOYY faces regulatory challenges, as evidenced by the temporary removal of BigoLive from app stores, which negatively impacted its fourth-quarter live streaming revenue by 13% [7][8]. Technological Integration - The integration of AI technologies is seen as a potential driver for growth, with JOYY investing in advanced content moderation and user verification systems to enhance operational efficiency [16][17]. - The CEO emphasized the importance of leveraging AI to improve community experiences and operational precision [17]. Conclusion - JOYY's journey in the post-live streaming era reflects a typical transformation phase, characterized by resilience in Non-GAAP profits and challenges in user retention and GAAP losses [18]. - The company's future growth will depend on successfully balancing diversification and globalization strategies while navigating the evolving competitive landscape [18].

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]