JOYY's Q3 2025 Earnings Call: Contradictions in Livestreaming Growth and Advertising Strategy Revealed

Date of Call: November 19, 2025

Financials Results

• Revenue: $540.2M, up 6.4% quarter-over-quarter (Q3 2025)
• Gross Margin: 35.8%, up 4.3% Q-o-Q (group gross profit $193.1M)
• Operating Margin: Non-GAAP operating income $40.7M, up 16.6% year-over-year

Guidance:

• Q4 2025 revenue guided to $563M–$578M (implying 2.5%–5.2% YoY growth).
• BIGO Ads expected to deliver mid-double-digit YoY growth in Q4 (peak season acceleration).
• Company sees visibility for group YoY revenue growth in 2026; BIGO Ads and Shopline SaaS expected to deliver strong double-digit YoY growth.
• Q4 non-GAAP operating profit to improve Q-o-Q; full-year 2025 non-GAAP operating profit expected to rise nearly double-digit YoY.
• Continue executing $900M (2025–27) shareholder-return program with accelerated buybacks.

Business Commentary:

* Livestreaming Revenue Recovery: - JOYY Inc.'s livestreaming revenue was $388 million in Q3, up 3.5% quarter-over-quarter and marking consecutive quarters of sequential growth. - The recovery was driven by increased paying users and ARPPU, alongside structural enhancements such as refined streamer incentives and AI optimizations.

• Ad Tech Growth with BIGO Ads:
• BIGO Ads revenue reached $104 million in Q3, with a 33.1% year-over-year growth and 19.7% quarter-over-quarter increase.

• Growth was fueled by improvements in algorithm modeling, traffic expansion, and new vertical market penetration.

• Strong Financial Performance and Shareholder Returns:

• Non-GAAP operating income reached $41 million, up 16.6% year-over-year, while non-GAAP EBITDA was $51 million, up 16.8% year-over-year.

• Shareholder returns included a dividend payout of $147.9 million and a share buyback program totaling $88.6 million, demonstrating strong financial health.

  

• Focus on AI and Product Enhancements:

• JOYY invested in AI technologies to enhance user behavior modeling and content distribution, contributing to improved user engagement and streamer performance.
• Emphasis on AI capabilities across content, distribution, and payment experiences, including AI-generated virtual gifts, drove increased adoption and user interaction.

Sentiment Analysis:

Overall Tone: Positive

• Management repeatedly emphasized confidence and momentum: “we are confident we will soon reach new milestones,” “we expect livestreaming to return to year-over-year growth in 2026,” and “we have very strong confidence” in BIGO Ads and Shopline expansion; guidance and buyback acceleration reinforce a positive outlook.

Q&A:

• Question from Xueqing Zhang (China International Capital Corporation Limited): We have noticed the livestreaming growth slightly quarter-on-quarter for 2 consecutive quarters. How should we think about the long-term trend of the livestreaming business?
  Response: Livestreaming is on a steady sequential recovery and is expected to resume year‑over‑year growth in 2026 driven by streamer incentive restructuring, AI-driven content & payment optimizations, focus on high‑value users and payment infrastructure improvements.

• Question from Yuan Liao (Citic Securities Co., Ltd.): Could management please share the long-term strategic goals for your advertising business and also your operation plans for 2026?
  Response: Build BIGO Ads into a global, AI‑powered multichannel ad platform by expanding web and mobile supply, diversifying verticals and advertisers, strengthening iOS/data infrastructure and accelerating geographic expansion — four core 2026 growth drivers.

• Question from Thomas Chong (Jefferies LLC): Can management comment about the user and the revenue trend? And on the cost side, can management comment about the expenses trend and profitability outlook for 2026?
  Response: Expect group top‑line to return to YoY growth in 2026 with MAUs broadly stable (IM‑led stickiness); livestreaming to resume YoY growth while Ads and SaaS deliver double‑digit growth; disciplined spending should drive improving non‑GAAP operating profit and EBITDA.

• Question from Yiqun Chen (BOCI Research Limited): Could management share the latest thoughts and the strategies of our shareholder return initiatives?
  Response: Executing the $900M (2025–27) return program — $148M returned and $88.6M repurchased to Nov 14; buybacks accelerated in Q3 and will be further intensified as operating profit improves and shares remain undervalued.

Contradiction Point 1

Livestreaming Business Growth Trajectory

It involves differing expectations regarding the growth trajectory of the livestreaming business, which is a critical revenue driver for the company.

How to assess the long-term trend of the livestreaming business given two consecutive quarters of slight QoQ growth? - Xueqing Zhang (CICC)

2025Q3: The livestreaming business is showing steady sequential recovery, supported by growth in paying users and ARPPU. Structural enhancements across the ecosystem include refining streamer incentives, strengthening content supply, and AI for content distribution and paying experience optimization. Looking ahead, we expect livestreaming to return to year-over-year growth in 2026. - Ting Li(CEO)

What is the long-term outlook for the livestreaming business? What is the revenue outlook for the second half? - Thomas Chong (Jefferies)

2025Q2: Q1 is seen as a bottom for BIGO's livestreaming due to seasonal factors and app removals. Q2 showed sequential recovery driven by growth in paying users. Improvements in content optimization and operating efficiency will drive growth in upcoming quarters. Operational activities like galas and product optimization are expected to enhance engagement and monetization for livestreaming. The diversity in content and new audio products may contribute to growth, with a return to year-over-year growth trajectory in 2026. - Ting Li(CEO)

Contradiction Point 2

Advertising Business Transformation and Growth Strategy

It involves changes in the strategic approach and growth expectations for the advertising business, which is another crucial revenue source for the company.

What are the long-term goals and 2026 operational plans for the advertising business? - Yuan Liao (Citic Securities Co., Ltd., Research Division)

2025Q3: We are transforming our ad tech business, establishing BIGO Ads as a global platform for multichannel performance-driven advertising. Growth drivers for 2026 include traffic expansion, new advertiser spending, advertising data infrastructure enhancement, and geographic market expansion, particularly in North America and Europe. - Ting Li(CEO)

What are the key drivers and unique advantages driving the growth in advertising revenue? How do you assess potential synergies across business segments? - Cici Cheng (CLSA)

2025Q2: Ad tech growth is driven by technological optimization and market opportunities. The early stages of advertising algorithm development show promise, with ongoing improvements expected to boost growth. Expansion into new verticals and markets like North America, Japan, and Europe is planned. Synergies exist between ad tech and livestreaming, with BIGO Ads leveraging data assets and infrastructure for growth. As ad tech expands, it will empower livestreaming and other businesses, enhancing synergies. - Ting Li(CEO)

Contradiction Point 3

Livestreaming Business Growth Trends

It involves the expected growth trajectory of the livestreaming business, which directly impacts revenue projections and investor expectations.

How to view the long-term trend of the livestreaming business after two consecutive quarters of slight QoQ growth? - Xueqing Zhang (China International Capital Corporation Limited, Research Division)

2025Q3: The livestreaming business is showing steady sequential recovery, supported by growth in paying users and ARPPU. Structural enhancements across the ecosystem include refining streamer incentives, strengthening content supply, and AI for content distribution and paying experience optimization. Looking ahead, we expect livestreaming to return to year-over-year growth in 2026. - Ting Li(CEO)

Could management comment on the monetization trend in the second half, specifically for BIGO Live? Could management also discuss cost optimization, operating expense trends, and the 2025 margin outlook? - Thomas Chong (Jefferies LLC, Research Division)

2025Q1: Live streaming revenue has experienced fluctuations due to adjustments and operational changes but is expected to stabilize and resume positive growth. - Ting Li(CEO)

Contradiction Point 4

Advertising Business Growth Strategy

It highlights different strategic approaches to the advertising business, which impacts revenue growth and market positioning.

What are the long-term strategic goals for the advertising business and the operational plans for 2026? - Yuan Liao (Citic Securities Co., Ltd., Research Division)

2025Q3: We are transforming our ad tech business, establishing BIGO Ads as a global platform for multichannel performance-driven advertising. Growth drivers for 2026 include traffic expansion, new advertiser spending, advertising data infrastructure enhancement, and geographic market expansion, particularly in North America and Europe. - Ting Li(CEO)

Can management provide updates on BIGO's advertising growth, the regions driving it, and the outlook? - Unidentified Analyst (Goldman Sachs)

2025Q1: BIGO Ads is already contributing positively to operating profits and is expected to continue contributing to revenue and profitability long-term. - Ting Li(CEO)

Contradiction Point 5

Livestreaming Business Growth Expectations

It involves differing expectations for the growth trajectory of the livestreaming business, which is a critical revenue driver for the company.

How should we think about the long-term trend of the livestreaming business given the two consecutive quarters of slight quarter-on-quarter growth? - Xueqing Zhang (China International Capital Corporation Limited, Research Division)

2025Q3: The livestreaming business is showing steady sequential recovery, supported by growth in paying users and ARPPU. Structural enhancements across the ecosystem include refining streamer incentives, strengthening content supply, and AI for content distribution and paying experience optimization. Looking ahead, we expect livestreaming to return to year-over-year growth in 2026. - Ting Li(CEO)

What are the expected user and revenue trends for 2025? - Thomas Chong (Jefferies LLC, Research Division)

2024Q4: BIGO will concentrate on developed countries and premium users. Paying users are expected to return to sequential growth by Q2, with non-livestreaming revenue maintaining strong growth. However, adjustments to non-core audio live streaming may negatively impact top-line growth compared to Q1 2024. MAU growth is expected in the second half of 2025. - Ting Li(CEO)