JOYY Inc. Delivers Strong Q3 2024 Results with Focus on Globalization and Operational Efficiency
The recent third quarter (Q3) 2024 earnings call of JOYY Inc., a leading global social media platform, has revealed impressive financial results and strategic advancements. The company's Chairperson and CEO, Ms. Ting Li, led the presentation, highlighting key achievements in both revenue growth and operational efficiency.
During Q3 2024, JOYY's group revenue reached $558.7 million, with its core business segment, BIGO, recording revenues of $496 million, a slight year-over-year increase. The company's disciplined execution led to improvements in operational efficiency at both the BIGO segment and group level, resulting in a non-GAAP operating profit of $34.9 million, up 16.4% quarter-over-quarter.
BIGO's non-GAAP operating profit expanded to $72.9 million, up 5% quarter-over-quarter, exceeding expectations. Excluding the impact of foreign exchange (FX) losses, BIGO's non-GAAP net profit was also up quarter-over-quarter. These results demonstrate JOYY's ability to execute its strategic priorities effectively.
Ms. Li emphasized that the company's globalization strategy is a key focus area. By enriching user interactions and content offerings while building on its unique position as a global social platform, JOYY aims to further amplify its value proposition. The platform's global nature and organic social connections foster meaningful cross-regional connections among users.
To enhance its global ecosystem, JOYY has implemented upgrades to boost the creation, quality, and distribution of content on its platform. For instance, the company fine-tuned its content recommendation algorithm to better facilitate content sharing within same-language regions and expand cross-regional content flow between highly interactive markets such as North and South America.
JOYY also launched global cross-regional initiatives based on user interaction patterns, such as BIGO's Most Talented competition organized by the company's North American team. This event brought together creators from America, Southeast Asia, and Africa, highlighting JOYY's ability to unite diverse talent across high-engagement regions.
On the technology front, JOYY is preparing to introduce standardized global content guidelines and commence alpha testing of AI-powered real-time caption translation in select languages. This enhancement will streamline cross-regional content delivery and better serve users' growing appetite for global content and social connection.
In addition to its focus on globalization, JOYY has lifted its emphasis on operational efficiency. By optimizing every aspect of its global localized operations from user acquisition to KOL management to user engagement and monetization mechanisms, the company aims to comprehensively strengthen efficiencies and capabilities across its global operations and drive steady expansion in product and group profitability.
The comprehensive ROI analysis conducted during Q3 2024 helped JOYY optimize resource allocation by redirecting advertising spending from underperforming regions towards developed countries and focusing on the acquisition of premier users with greater monetization potential. These strategic efforts are expected to yield significant benefits for the company in the long run.
