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JOYY (YY) Set to Report Q1 Earnings: What's in the Cards?

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JOYY YY is expected to release first-quarter fiscal 2022 results on May 26.

For first-quarter 2022, JOYY expects revenues between $601 million and $616 million.

The Zacks Consensus Estimate is currently pegged at $604.6 million, indicating a decline of 5.98% from the year-ago quarter’s levels.

The Zacks Consensus Estimate for first-quarter earnings is currently pegged at 38 cents per share, which has moved north by 7 cents in the past 30 days. JOYY had reported a loss of 30 cents in the year-ago quarter.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 496.93%.

Let’s see how things have shaped up for JOYY prior to this announcement.

Factors to Note

JOYY’s implementation of strategic realignments to secure its long-term growth and sustainability of its products is likely to have positively driven the company’s first-quarter 2022 results.

The company’s upcoming first-quarter 2022 results are expected to have benefited from its focus on creating a diversified global content ecosystem.

Overseas expansion and enhancement of its monetization capabilities across multiple social entertainment products are likely to have aided JOYY's top-line growth in the upcoming quarterly results.

BIGO Live is anticipated to have driven the top line due to its growing demand and strong adoption in the to-be-reported quarter.

In the fourth quarter, BIGO Live’s livestreaming revenues and paying users increased by 12.5% and 10.3%, respectively, on a year-over-year basis. BIGO Live’s monthly active users (MAUs) reached 32.2 million, up 11.9% year over year, in the fourth quarter. The trend is likely to have continued in the to-be-reported quarter.

Likee and Hago’s robust adoption is anticipated to have driven BIGO’s top-line growth in the to-be-reported quarter.

India’s ongoing ban on China-owned apps in the market might have hampered user growth, thereby impacting the global MAUs of the company. This is expected to have hurt top-line growth in the to-be-reported quarter. In the last reported quarter, global average mobile MAUs declined by 20.4% year over year, to 280.0 million, with the impact softened by gains outside India.

Nonetheless, JOYY’s innovative product launches in the fourth quarter, incorporating computer vision, virtual reality, augmented reality and many other cutting-edge technologies, are expected to have driven revenues in the to-be-reported quarter.

JOYY’s cross-industry partnerships, which include gaming companies, TV show producers and entertainment agencies, are expected to have helped it attract high-quality live streamers and content creators to its platform. This is also anticipated to have attracted a newer audience to its platform.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

JOYY has an Earnings ESP of +17.33% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are other companies worth considering, as these too have the right combination of elements to beat on earnings this reporting cycle:

Aspen Technology AZPN has an Earnings ESP of +1.11% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aspen Technology shares have returned 24.8% year to date compared with the Zacks Computer - Software industry’s fall of 24.6% and the Computer & Technology sector’s decline of 26.8% year to date.

Ceridian HCM CDAY has an Earnings ESP of +4.26% and a Zacks Rank of 2.

CDAY shares have fallen 48.5% year to date compared with the Zacks Internet - Software industry’s decline f 47.2% and the Computer & Technology sector’s fall of 26.8% year to date.

Flex FLEX has an Earnings ESP of +1.03% and a Zacks Rank of 2.

Flex shares have fallen 14.7% year to date compared with the Zacks Electronics - Miscellaneous Products industry’s decline of 36%. Flex has outperformed the Computer & Technology sector’s fall of 26.8% year to date.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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