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Tag: YY

  • JOYY Inc. (YY) surged in the current market; here is why?

    JOYY Inc. (YY) surged in the current market; here is why?

    JOYY Inc. (YY) surged in the current market after announcing its fourth quarter and fiscal 2021 results. YY values at $38.78, gaining more than 52.62% compared to yesterday’s closing price. The stock closed at $26.41 at the end of the last trading session. The stock volume traded in the previous trading session was around 792.27K shares. The current market cap of the company is about $2.72 billion.

    YY: Q4 and Fiscal 2021 Key Financials

    • JOYY Inc.’s revenue in Q4 2021 was $663.7 million, gaining more than 16.8% compared to the revenue of $568.2 million in Q4 2020.
    • Fiscal 2021 revenue was $2.6 billion, 36.5% more than the revenue of $1.9 billion in fiscal 2020.
    • The company’s net income in Q4 2021 was around $73.2 million, improving compared to the net loss of $118.9 million in Q4 2020.
    • YY’s net loss in fiscal 2021 was around $115.9 million, and profitability declined compared to the net loss of $18.7 million in fiscal 2020.
    • Its gross margin in Q4 was 11% compared to a net loss margin of 20% in Q4 2020.
    • The net loss margin is 4.4% in fiscal 2021. Last year’s net loss margin was 1%.
    • The company had cash and cash equivalents of $4.6 billion as of December 31, 2021.

    YY: Update on Share Repurchase Program

    The company’s board of directors approved $1.2 billion in further share repurchases in 2021. By December 31, 2021, JOYY had repurchased $393 million in shares, $235.7 million of which came from the newly expanded $1.2 billion repurchase plan. JOYY has also given $160 million in dividends. For their long-term support, JOYY intends to reward its shareholders for their faith in the Company’s long-term growth potential.

    YY CEO’s Remarks

    JOYY Chairman and CEO David Xueling Li said that our firm had shown tremendous resilience despite macroeconomic uncertainty and pandemic problems in 2021. We improved monetization across many products through our globalization strategy and strengthened our broad social entertainment ecosystem, resulting in a 36.5 percent year-on-year revenue increase. This year, BIGO and the whole group achieved non-GAAP profitability via greater monetization of several goods, proactive marketing adjustments, and improved operational efficiency.

    Conclusion

    The company is making tremendous progress with Bigo Lie, Likee, and Hago. Bigo Live’s revenue growth was 12.5% yoy. Likee’s growth rate was 26.5%, and Hago stands at 32.1%. The company is optimistic about its brands and anticipates firm growth in fiscal 2022.

  • Baidu Inc. (NASDAQ: BIDU) set to take over Joyy Inc. (NASDAQ: YY) in a bid to enter video streaming space

    Baidu Inc. (NASDAQ: BIDU) set to take over Joyy Inc. (NASDAQ: YY) in a bid to enter video streaming space

    Baidu Inc. (NASDAQ: BIDU) takes yet another step to diversify into its core search company and play catch-up in video entertainment, as the Chinese tech giant revealed it is set to take over Joyy Inc. (NASDAQ: YY) live-streaming service YY Live in China for $3.6 billion in an all-cash transaction.

    The report Baidu Inc. (NASDAQ: BIDU)shared along with its quarterly earnings is probably the best breakthrough into video streaming for the Chinese company. In this deal, YY is only selling its Chinese business to Baidu. The Company confirmed that the completion of the deal is subject to some constraints and is actually scheduled to take effect in the first half of 2021.

    The acquisition comes at a time when the search giant has been trying to battle rivals such as ByteDance, who have eaten away their online advertisement supremacy as Chinese consumers pay more attention to content recommendation apps driven by algorithms.

    Meanwhile, as its home market is saturated with video giants such as Kuaishou and TikTok’s sister Douyin, the sale enables Joyy to further emphasis on overseas expansion. Joyy has accrued more than 4 million paying viewers who watch influencers entertain and sell a variety of products on the video platform, deemed the leader in China’s live streaming industry.

    Last year, Joyy Inc. ( YY)completed a $1.45 billion buyout of Bigo, a project initiated by its own promoter to test the overseas market. Bigo runs the Bigo Live streaming service and the quick video app Likee, both of which have huge follow-ups outside China, but were recently suspended by the Indian government as border tensions flared up between India and China.

    “This acquisition would propel Baidu into a dominant live streaming network and augment our source of revenue,” Baidu’s co-founder and chief executive, Robin Li, said in a statement.

    In China’s video streaming industry, Baidu faces an enormous challenge. Kuaishou and Douyin, regarded as the top names in short videos in the region, have made live streaming an integral part of their user interface to increase monetization and user interaction (through the likes of virtual gifting).

    In June, Kuaishou hit 300 million active users daily, and in January, Douyin surpassed 400 million DAUs. In contrast, as of September, Baidu Inc. (NASDAQ: BIDU)flagship app had around 200 million DAUs. YY had about 40 million monthly concurrent users online live in the third quarter.