JOYY (JOYY) Q3 2024 earnings summary

Executive summary

• Group revenue for Q3 2024 was $558.7 million, with BIGO segment revenue at $496 million and non-live streaming revenue up 13.1% sequentially to $119.2 million, now 21.3% of total revenue.

• Non-GAAP operating profit rose to $34.9 million, up 16.4% quarter-over-quarter but down year-over-year; BIGO's non-GAAP operating profit reached $72.9 million, up 5% sequentially.

• Net income attributable to controlling interest was $60.6 million, down from $72.9 million year-over-year; non-GAAP net income was $61.2 million, down from $81.2 million.

• Strategic focus on product optimization, market penetration in developed countries, and operational efficiency drove results.

• $117.8 million in share repurchases were completed in Q3, with $243.7 million repurchased year-to-date.

Financial highlights

• Total net revenues were $558.7 million, down from $567.1 million year-over-year.

• Live streaming revenues fell to $439.5 million from $495.8 million year-over-year, mainly due to lower ARPPU and product adjustments.

• Gross profit was $208.1 million (gross margin 37.3%), nearly flat year-over-year; BIGO's gross margin was 37%, lower year-over-year due to revenue mix shift.

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

• Diluted net income per ADS was $1.05, down from $1.86; non-GAAP diluted net income per ADS was $1.07, down from $1.22.

Outlook and guidance

• Q4 2024 net revenues expected between $546 million and $563 million.

• BIGO segment anticipated to return to sequential and year-over-year growth in paying users and live streaming revenue in 2025.

• Non-live streaming revenue for BIGO expected to maintain double-digit growth year-over-year in 2025.

• Group non-GAAP operating profit expected to continue improving in 2025.