BIGO's Q1 2025 Earnings Call: Unpacking Contradictions in Revenue, Shareholder Returns, and Profit Outlook

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Revenue Diversification and Non-Livestreaming Growth:
- JOYY Inc. reported non-livestreaming revenue of $123 million in Q1 2025, a year-over-year increase of 25.3%, representing 25% of the group's total revenue.
- The growth in non-livestreaming revenue is driven by the expansion of its global programmatic advertising platform, BIGO Ads, and the development of a smart commerce SaaS platform.

Advertising Revenue and Platform Expansion:
- BIGO Ads achieved advertising revenue of $18 million in Q1 2025, marking a year-over-year growth of about 27%.
- The growth is attributed to the platform's ability to attract a growing number of advertisers and publishers and its use of AI to improve ad performance and returns.

Live Streaming Optimization and Operational Efficiency:
- JOYY's optimization efforts in its live streaming business led to a 2.8% year-over-year increase in the percentage of total live streaming revenues from developed countries.
- The improvements in operational efficiency were driven by strategies such as prioritizing high-quality users in core markets and upgrading content safety measures.

Operating Profit and Shareholder Returns:
- The company recorded a non-GAAP operating profit of $31 million in Q1 2025, a year-over-year increase of 25%.
- JOYY also distributed approximately $49.1 million in dividends and repurchased $22.5 million worth of shares, reinforcing its commitment to returning value to shareholders.