Social media company JOYY (YY) was up by ~7% during market hours despite posting a decline in Q3 revenue and lower Y/Y Q4 guidance.
Q3 non-GAAP EPADS of $0.96 beats by $0.59. Revenue of $586.7M (-9.8% Y/Y) misses by $2.1M.
Live streaming revenues decreased to $542.8M from $612.2M, primarily due to the decrease in the average revenue per paying user of BIGO. Meanwhile, other revenues increased by 14.6% Y/Y to $44.0M from $38.4M.
"Despite the macro headwinds and monetization challenges, Bigo Live maintained its user growth trajectory thanks to effective local operations and product feature upgrades," CEO David Xueling Li said during the company's earnings call.
Gross profit increased by 4.5% to $220.2M from $210.8M, while gross margin improved to 37.5% from 32.4%. The main reason is optimization of revenue sharing cost and other operational costs.
Operating expenses decreased by 3.1% to $202.2M from $208.7M.
JOYY declared a dividend of $0.51 per American Depository Share, and repurchased ~$14.1M of its shares during the quarter.
The company expects Q4 net revenues to be between $594M and $619M, vs. consensus of $612.25M (-7.75% Y/Y).
The lower end of our current Q4 guidance reflects part of the negative macro impact, Li told analysts.