China-based video streaming platform YY Inc (NASDAQ: YY) announced its third-quarter earnings after the markets closed on Tuesday.
What Happened
The social media company said it made $979.3 million in net revenues in the quarter that ended on Sept. 30. This is a 67.8% increase on a year-on-year comparison. The company posted $583.5 million in revenue in the same quarter last year.
YY’s gross profit for the quarter was $308.6 million, a 52.1% increase compared to the $202.9 million profit it made last year.
The company’s earnings per share were 16 cents, down from the $1.43 last year. The non-GAAP earnings were 90 cents, compared to the previous year’s $1.72.
Growth Driver
YY said that its acquisition of Singapore-based video streaming startup Bigo in March served as a significant factor in the revenue growth in the quarter.
Bigo added $198.5 million out of the $905.7 million YY made in live streaming from all its platforms.
Advertising on Bigo’s platform also contributed to this quarter's profit, the company said.
YY expects its earnings in the fourth quarter to be between $1.04 billion to $1.07 billion, which will be a growth of 57.7% to 62% compared to the same quarter in 2018.
Price Action
YY closed at $65.03 on Tuesday. The company’s shares traded at $68.50 in after-hours trading, an increase of 5.34% compared to the closing price.
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