JOYY (JOYY) Q3 2024 earnings summary

Executive summary

• Group revenue for Q3 2024 was $558.7 million, with BIGO segment revenue at $496 million, showing a slight year-over-year increase, while net income attributable to controlling interest was $60.6 million, down from $72.9 million.

• Non-GAAP operating profit at group level reached $34.9 million, up 16.4% quarter-over-quarter but down from $40.4 million year-over-year; BIGO's non-GAAP operating profit was $72.9 million, up 5% sequentially.

• Strategic focus on developed countries and premium users led to improved ROI and user growth in key markets, though average mobile MAUs declined to 272.4 million.

• Non-live streaming revenue grew 13.1% sequentially to $119.2 million, now 21.3% of group revenue, driven by strong advertising growth.

• Shareholder returns were prioritized, with $117.8 million in share repurchases during Q3 and 7.31 million ADS repurchased year-to-date.

Financial highlights

• Total net revenues were $558.7 million, compared to $567.1 million in Q3 2023, with live streaming revenues falling to $439.5 million from $495.8 million.

• Cost of revenues decreased by 2.1% to $350.5 million; gross profit was $208.1 million with a 37.3% margin, nearly flat year-over-year.

• Group GAAP operating income was $16.4 million (2.9% margin), up from $12.0 million (2.1%) year-over-year.

• Group GAAP net income was $60.6 million (10.8% margin), down from $72.9 million (12.9%) in Q3 2023, mainly due to FX losses and lower net interest income.

• Operating cash flow was $61.1 million; net cash position stood at $3.3 billion as of September 30, 2024.

Outlook and guidance

• Q4 2024 net revenues expected between $546 million and $563 million, reflecting current market and operational conditions amid macroeconomic uncertainties.

• BIGO's top line may be negatively affected in Q4 due to product adjustments, but full-year 2024 still projects moderate growth.

• For 2025, BIGO's paying users and live streaming revenue are expected to return to growth, with non-live streaming revenue maintaining double-digit growth.

• Group non-GAAP operating profit is expected to continue improving in 2025, with further narrowing of losses in other segments.