JOYY Reports First Quarter 2025 Financial Results: Non-livestreaming Revenues Grew 25.3% year over year, Driven by Diversified Growth Strategy

JOYY reported Q1 2025 net revenues of $494.4 million, with operating income increasing 244.5% year-over-year to $12.2 million and non-GAAP operating income up 24.9% to $31.0 million. The company highlighted growth in its advertising business, with BIGO Ads revenue increasing 27% due to its global reach and AI-driven optimization, and an increase in Likee's user engagement, with videos viewed per user rising 7%.

Analysis

JOYY reported a robust first quarter for 2025, with net revenues reaching US$494.4 million. A key highlight was the substantial growth in profitability, evidenced by GAAP operating income soaring 244.5% year-over-year to US$12.2 million, up from US$3.5 million in the corresponding period of 2024. Non-GAAP operating income also demonstrated solid growth, increasing by 24.9% to US$31.0 million. While net income from continuing operations attributable to controlling interest remained relatively stable at US$45.4 million compared to US$45.3 million in Q1 2024, non-GAAP net income from continuing operations attributable to controlling interest and common shareholders was US$63.2 million. The company's advertising business, BIGO Ads, was a significant growth driver, with its revenue expanding by 27% in the first quarter, supported by its global operations, user base, algorithms, and AI-driven optimization. In the livestreaming segment, Likee showed improved user engagement, with videos viewed per user increasing by 7% quarter-over-quarter and overall video consumption time growing by 10% over the same period, complemented by a 3% sequential rise in its average paying ratio, indicating effective content and streamer management strategies.

Key Decisions for Investors

• Investors should consider the significant improvement in JOYY's operating income and the strong 27% revenue growth in its BIGO Ads segment as positive signals for the company's operational efficiency and market penetration.
• Monitoring the sustained growth of Likee's user engagement metrics, such as video views and consumption time, alongside its paying user ratio, will be crucial for assessing the long-term monetization potential of the livestreaming business.
• Given the flat GAAP net income contrasted with strong non-GAAP profitability and operational improvements, investors may want to further analyze the non-GAAP adjustments and focus on the trajectory of the advertising business and AI integration for future growth.