JOYY (JOYY) Q1 2025 earnings summary

Executive summary

• Total net revenues for Q1 2025 reached $494.4 million, down from $564.6 million year-over-year, reflecting declines in live streaming but offset by strong 25.3% growth in non-live streaming revenue to $123 million, now nearly 25% of total revenue.

• Non-GAAP operating profit was $31 million, up 24.9% year-over-year, exceeding expectations.

• Net income from continuing operations attributable to controlling interest was $45.4 million, nearly flat year-over-year; 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 margin was 12.8%, up from 11.9% year-over-year.

• 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 $3.4 billion as of March 31, 2025.

• Diluted net income per ADS from continuing operations was $0.84, up from $0.69 year-over-year; non-GAAP diluted net income per ADS was $1.18, up 15.7%.

Outlook and guidance

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