JOYY (JOYY) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenues reached $494.4 million, at the high end of guidance, with non-GAAP operating profit of $31 million, and non-live streaming revenue grew 25.3% year-over-year to $123 million, now representing nearly 25% of total revenue.

• Operating income rose sharply to $12.2 million from $3.5 million, a 244.5% increase, with non-GAAP operating income up 24.9% to $31 million.

• Net income from continuing operations attributable to controlling interest was $45.4 million, nearly flat year-over-year, while non-GAAP net income was $63.2 million, down from $67.2 million.

• The company completed the sale of YY Live to Baidu, recognizing a $1.9 billion gain in discontinued operations.

• BIGO Ads and non-live streaming businesses are positioned as the next growth engine, with advertising revenue up 27.3% year-over-year to $80.3 million.

Financial highlights

• Group gross profit was $178.6 million, with a gross margin of 36.49%.

• Non-GAAP net income attributable to controlling interest was $63.2 million, with a non-GAAP net income margin of 12.8%.

• Operating expenses declined to $167.2 million from $195.4 million year-over-year, reflecting disciplined cost control.

• Net cash inflows from operating activities were $58 million; net cash position stood at $3.39 billion as of March 31, 2025.

• $49.1 million in dividends distributed and $22.5 million in share repurchases as of May 23, 2025.

Outlook and guidance

• Q2 2025 net revenues are expected between $499 million and $519 million, reflecting seasonality and macroeconomic uncertainties.

• Live streaming revenue expected to stabilize and resume positive quarter-over-quarter growth from Q2 onward.

• Non-live streaming businesses, especially advertising, are projected to accelerate sequential growth in the second half of 2025.

• Group non-GAAP operating profit is expected to show an improving trend for full year 2025.