JOYY Inc (NASDAQ:YY) stock fell 4.89% (As on May 29, 11:22:18 AM UTC-4, Source: Google Finance) after the company posted decline in the topline for the first quarter of FY 24 and gave downbeat guidance for the second quarter. The Company’s core business segment BIGO continued its topline recovery trend, generating revenues of US$505.2 million, a year-over-year increase of 8.0%. JOYY recorded net profit and non-GAAP net profit¹ of US$ 45.3 million and US$67.2 million, with GAAP and non-GAAP net margins of 8.0% and 11.9%, respectively. The BIGO segment’s net profit and non-GAAP net profit reached US$61.0 million and US$71.2 million, with GAAP and non-GAAP net profit margins of 12.1% and 14.1%, respectively. JOYY sustained its positive operating cash flows, generating US$75.0 million in the first quarter.

Moreover, in the first quarter, Bigo Live’s revenue continued its year-over-year rebound. Specifically, revenue from developed countries grew by 14.8%, accompanied by a 17.2% increase in paying users in these regions. During the quarter, Bigo Live remained focused on its user acquisition strategy, channeling more resources into developed countries and regions to enhance monetization efficiency, resulting in an 8.9% year-over-year MAU growth in these countries and regions. In the first quarter, Likee’s revenue continued to recover year over year and it maintained its profitability. Advertising revenue grew by 1.1 times on an annual basis, and DAUs in the core European market maintained sequential growth.

Likee’s recent launch of interactive gaming features has been instrumental in breaking the ice and fostering connections between users, leading to substantial growth in paying users. During the first quarter, Likee launched a series of engaging online and offline community events for creators, users, and brands.  Hago sustained positive operating cash flow during the first quarter. Hago’s implementation of more gamified interactions and paid features has effectively boosted user engagement and monetization.

YY in the first quarter of FY 24 has reported the adjusted earnings per share of $1.02, beating the analysts’ estimates for the adjusted earnings per share by 21 cents. The company had reported the adjusted revenue decline of 3.3 percent to $564.6 million in the first quarter of FY 24, beating the analysts’ estimates for revenue by $10.6 million. Non-GAAP net income1 attributable to controlling interest and common shareholders of JOYY in the first quarter was US$67.2 million, compared to US$49.9 million in the corresponding period of 2023.

Looking ahead, JOYY’s guidance for Q2 2024 indicates expected net revenues between $538 million and $569 million, slightly below the consensus of $565 million.