JOYY Inc (NASDAQ: YY) stock fell over 6.8% on 26th March, 2021 (as of 10:29:45 UTC-4 · USD ·; Source: Google finance) as the company in the fourth quarter of FY 20 has reported the decline in the non-GAAP net loss to RMB1.86 ($0.29) per diluted American depositary share from RMB5.70 a year earlier.
The total net revenue for the fourth quarter rose by 77.5% year-over-year to RMB3.78 billion, from RMB2.13 billion in the same period of 2019. The live streaming revenues for the fourth quarter grew by 93.3% year-over-year to RMB3.59 billion, driven by live steaming revenues growth on Bigo. Other revenues in the fourth quarter had declined by 30.5% to RMB189.6 million.
Gross profit increased by 79.6% year-over-year to RMB1.11 billion. Gross margin in the fourth quarter of 2020 expanded to 29.3% from 29% in the same period of 2019. Non-GAAP net loss attributable to controlling interest and common shareholders of JOYY was RMB149.4 million from RMB455.7 million in the same period of 2019. Non-GAAP net loss margin was contracted to 3.9% in the fourth quarter of 2020 from 21.4% in the same period of 2019.
Moreover, Bigo’s revenue grew by 87.9% year-over-year to RMB3.4 billion in the fourth quarter, mainly due to continued user base growth and improved monetization capabilities of several platforms. For the fourth quarter, Bigo Live’s revenue rose by increase in MAUs and a 131.6% year-over-year increase in paying users. The revenues in the Middle East grew by 87.4% year-over-year, driven by a 63% year-over-year increase in MAUs and 85.4% year-over-year increase in paying users. Further, in the fourth quarter, Likee’s MAUs outside India grew by 119% year-over-year to 114 million. Its user base continues to expand rapidly in many regions, with MAUs ramping up by 55.3% year-over-year in developed countries, by 333.9% year-over-year in the Middle East. Likee’s revenue grew by 407.5% year-over-year and 41.4% quarter-over-quarter, mainly due to growth in developed worlds and the Middle East. Revenue from developed markets rose by 299% year-over-year, while revenue from the Middle East multiplied by 31 times year-over-year.
For Q1, Joyy expects net revenue to be in the range of $590 million to $605 million.
Additionally, the company declared a quarterly dividend of $0.51 per ADS, or $0.0255 per common share, up from the previous quarter’s payout of $0.31 per ADS, or $0.0155 per common share. The dividend will be paid on April 30 to shareholders of record as of the close of business on April 19. Further, the company may repurchase up to $300 million of its shares through August 2021. As of December 31st, 2021, the company had repurchased approximately $139.5 million of its shares.