JOYY tumbles 6% as users and revenue drop in Q1 (NASDAQ:YY)

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JOY (NASDAQ:AA) has slipped 5.7% post-market following its first quarter earnings report, where revenue declined (but still exceeded expectations), and the company saw year-over-year declines in key users.

Revenue fell 3% to $623.8 million, beating expectations (for $607.4 million) as usual. And net working the loss fell to $27.5 million from an operating loss of $87.3 million a year ago, thanks to Bigo making a profit since the second quarter of 2021.

On a non-GAAP basis, operating income increased to a gain of $20.9 million from a loss of $24.1 million.

As Bigo continued to add users, overall, the global average mobile monthly active users fell 19.2% to 274.7 million. Bigo Live’s average mobile MAUs increased by 8.8% to 31.7 million. But Likee’s average mobile MAUs fell 46.3% to 61.8 million and Hago’s mobile MAUs fell 28.8% to 9.3 million, each amid cuts in ad spend to acquire users.

Meanwhile, paying Bigo users (including Bigo Live, Likee and imo) fell 13% to 1.45 million. Average revenue per paid user increased from $290.7 to $305.7.

“We achieved steady improvement in our GAAP and non-GAAP profitability, compared to the prior year periods, and recorded $59.2 million of positive net cash from operating activities,” said the CEO David Xueling Li, adding that the company continued its share buybacks.

Liquidity at the end of the quarter was $4.48 billion; net cash from operations for the first quarter was $59.2 million.

For the second quarter, it forecast net revenue of $579 million to $600 million (taking into account “the potential impact of the COVID-19 pandemic”), given expectations of $636.3 million.

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