Key Takeaways:
JOYY Inc. (NASDAQ: JOYY) reported first-quarter revenue of $555.7 million, a 12.4 percent increase year-over-year that marked its strongest growth rate in recent years, driven by a rapidly expanding advertising technology business.
"We are pleased to report a strong start to 2026," Ting Li, Chairperson and Chief Executive Officer of JOYY, said in a statement. "Our globally diversified ecosystem is taking shape, with social entertainment, advertising, and smart commerce reinforcing one another in a powerful strategic flywheel."
The Singapore-based technology company's results showed a significant top-line acceleration, with its core social entertainment business returning to growth. The company also announced an expanded capital return program, committing to $1.5 billion in dividends and buybacks over the next three years.
For the quarter ended March 31, JOYY’s non-GAAP net income was $55.9 million, or $1.11 per diluted American Depositary Share. The company guided for second-quarter revenue to be between $562 million and $581 million, implying a year-over-year growth of 10.7 percent to 14.4 percent.
JOYY, which realigned its reporting structure this quarter, saw varied performance across its three new segments. The BIGO Ads business was the standout performer, with revenue surging 55.6% year-over-year to $124.8 million. The company attributed the growth to an expansion of traffic, higher advertiser demand, and improved ad delivery efficiency.
The foundational Social Entertainment segment, which includes the Bigo Live platform, saw revenue increase 3.2% from the prior year to $400.4 million, marking a return to growth for the division. The Shopline smart commerce business grew 16.1% to $30.5 million.
JOYY announced a new shareholder return program for 2026 through 2028, replacing a previous plan. The new program authorizes up to $600 million in share repurchases and approximately $900 million in total dividends. This represents a 67% increase from the prior program, according to company executives on the earnings call.
"Shareholder return has been and will continue to be an important component of our capital allocation strategy," Fuyong Liu, the company's Vice President of Finance, said on the call.
The results signal a potential inflection point for JOYY as its diversification into advertising and e-commerce infrastructure begins to pay off, offsetting slower growth in its mature social entertainment business. Investors will watch the second-quarter results, guided for release in August, to see if the strong momentum in the BIGO Ads segment can be sustained.
This article is for informational purposes only and does not constitute investment advice.
