Shares of JOYY Inc. (NASDAQ:JOYY) recovered in early trading on Wednesday after the China-based technology company operating social media and commerce platforms reported its second-quarter results.
JOYY reported the following:
- Total revenues of $590.8 million, up 16.3% year-on-year and 6.3% sequentially and beating estimates of $574.1 million
- Operating income more than doubled to $13.8 million, from $5.8 million in the year-ago quarter.
- Non-GAAP operating income was $49.1 million, up 28.2% year-on-year and 29.4% sequentially.
- Non-GAAP EBITDA grew 18.1% year-on-year and 24.4% quarter-on-quarter to $56.9 million.
JOYY reported diluted net income of $1.01 per share and non-GAAP diluted net income of $1.24 per share, which missed consensus of $1.28 per share.
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JOYY Revenue By Business Segments
JOYY’s core business segment, Social Entertainment, grew 7.4% year-on-year and 5.6% sequentially to $422.7 million.
Management said growth was supported by improvements in live streaming monetization, with increases in live streaming revenue, core live streaming paying users, and average revenue per paying user (ARPPU) during the quarter.
BIGO Ads, the company’s deep-learning-based advertising platform, generated revenue of $133.7 million. That’s up 53.1% year-on-year, driven by higher traffic and advertiser demand.
Revenue from Shopline grew 28.6% to $34.4 million. JOYY is positioning Shopline, which helps companies build and manage online stores, as an AI-powered commerce infrastructure platform where AI influences how customers discover and purchase products.
Announced Outlook
CEO Ting Li said, “The gains across Social Entertainment, BIGO Ads and SHOPLINE point to a more diversified and durable growth profile for JOYY.”
The company guided to third-quarter sales of $602.0-$622.0 million, slightly higher than consensus of $591.8 million.
From January 1 to August 21, 2026, JOYY returned $358.8 million to shareholders, with $216.4 million in share buybacks and $142.4 million in dividends. Management plans to return $1.5 billion to shareholders by the end of 2028.
Analyst Action
- In March, UBS analysts initiated coverage of JOYY with a Buy rating and price target of $80.
- In July, Citi analyst Brian Gong reiterated a Buy rating and price target of $78.
- Earlier in August, JPMorgan upgraded its rating from Neutral to Overweight and raised its price target from $35 to $98.
JOYY Price Action: Shares of JOYY had risen 0.36% to $75.27 at the time of publication on Wednesday.
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