Shares of JOYY (YY 4.69%) have risen today, up by 2% as of 12:45 p.m. EDT, after the company reported second-quarter earnings. The stock had gained as much as 12% in morning trading.
Revenue in the second quarter jumped 36% to 5.8 billion yuan ($826.6 million), which resulted in adjusted net income of 493.6 million yuan ($69.9 million), or 5.57 yuan ($0.79) per share. Analysts had been looking for $729.9 million in sales and adjusted earnings per share of $0.72. Global average mobile monthly active users (MAUs) grew 21% to 457.1 million, and total paying users declined modestly by 2.2% to 4.1 million due to impacts from the COVID-19 pandemic.
"During the second quarter of 2020, we maintained our focus on empowering our live streaming and short-form video dual-growth engine as we continued to upgrade our platforms, localize our operations, and create joyful experiences for people around the world," CEO David Xueling Li said in a statement. "To help people cope with the difficulties of COVID-19, we leveraged Bigo Live and our extensive global coverage to launch a series of online charity events, including a 24-hour non-stop globe charity concert, to enhance Bigo Live's brand recognition in various markets and fuel the platform's robust operating performance."
The Chinese social media tech company is in the process of selling 30 million shares of Huya to Tencent for $810 million. Due to a previous sale of Huya shares to Tencent that occurred during Q2, JOYY has now deconsolidated Huya's results as of last quarter.
In terms of guidance, JOYY is forecasting third-quarter revenue of 5.85 billion yuan to 6 billion yuan ($842.3 million to $863.9 million), which excludes the revenue contribution from Huya.