What happened

Shares of JOYY (YY -3.21%), the Singapore-based social media company formerly known as YY, were moving higher today after the company turned in a strong second-quarter earnings report. 

As of 3:06 p.m. EDT, the stock was up 10.7%.

Two youngsters playing games on their smartphones while sitting on a couch.

Image source: Getty Images.

So what

JOYY said revenue in the quarter rose 39.7% to $661.7 million, which was ahead of expectations at $655.9 million. That growth came in spite of a crackdown by the Indian government on Chinese-owned apps, including Bigo Live, Likee, and Hago, which led to monthly active users (MAUs) declining by 26% to 307.5 million. MAU's outside of India rose in the quarter.

The company also made significant progress on the bottom line as its operating loss narrowed from the year-ago quarter, and it posted an adjusted loss per share of $0.01, which compared to a per-share loss of $0.63 a year ago. 

CEO David Xueling Li said, "Despite the negative impact from local holidays in certain regions, we maintained the growth trajectory of our global business, and managed to achieve significant progress in further enriching our localized content offering in the second quarter."

Now what

The company is forecasting growth of 13.7% to 18.7% for the current quarter, though that guidance excludes the contribution of Huya and YY Live as the company has sold both of those businesses over the past year to Tencent and Baidu, respectively.

Investors seemed willing to overlook a possibly significant slowdown from the second quarter, as indicated by the guidance. Their position may be due to the break-even, bottom-line performance in Q2 and the stock's sharp fall this year. Even after today's gains, it's still down 43% year to date