SINGAPORE - JOYY Inc. (NASDAQ:YY), a global technology company known for its social products, has announced a change in its leadership. Ms. Ting Li, the current Director and Chief Operating Officer, has been appointed as the new Chief Executive Officer (CEO) and Chairperson of the Board, effective immediately.
The transition comes as Mr. David Xueling Li steps down from his role as CEO and Chairperson, though he will remain on the Board to support the company's ongoing operations and strategy. In a statement, Mr. Li expressed confidence in the timing of the leadership change, highlighting JOYY's globalization efforts and the need to diversify revenue streams and pursue new growth opportunities.
Ms. Ting Li has been with JOYY since 2011 and has played a significant role in the company's operation and strategic direction, particularly during her tenure as COO since 2016. She joined the Board in November 2023, bringing a wealth of experience from her prior role as a product manager at Tencent (HK:0700).
Under Ms. Li's leadership, JOYY will continue to focus on its content and social entertainment ecosystems, aiming to enhance the company's market position through product innovation and operational refinement. The goal is to strengthen monetization capabilities and foster long-term initiatives for revenue diversification and sustainable growth.
JOYY operates several social products, including Bigo Live, Likee, Hago, and an instant messaging product, creating a vibrant user community worldwide. The company's American Depositary Shares (ADSs) have been listed on NASDAQ since November 2012.
This leadership change is based on a press release statement and reflects the company's strategic planning. JOYY's forward-looking statements involve inherent risks and uncertainties, and actual results may differ materially from expectations due to various factors, as detailed in the company's filings with the U.S. Securities and Exchange Commission.
In other recent news, JOYY Inc. reported robust Q1 2024 results, exceeding expectations with revenues hitting $565 million. The company's primary business segment, BIGO, significantly contributed to this performance, generating revenues of $505 million. BIGO's non-GAAP net profit was $71 million, marking a recovery trend for the third consecutive quarter, primarily driven by a 28% year-over-year increase in live streaming revenues.
JOYY Inc.'s non-GAAP net profit also rose by 34.8% year-over-year to $67 million, and the company maintained a positive operating cash flow. In a notable move, JOYY Inc. executed a share buyback, purchasing $54.5 million worth of shares within the quarter.
Looking forward, JOYY Inc. anticipates sequential growth for BIGO in the latter half of the year and a continued recovery in year-over-year revenues. The company also plans to diversify revenue streams and focus on non-live streaming revenue contributions. These are some of the recent developments in the company.
InvestingPro Insights
As JOYY Inc. (NASDAQ:YY) embarks on a new chapter with Ms. Ting Li at the helm, the financial metrics and analyst insights from InvestingPro provide a clearer picture of the company's current standing. With a market capitalization of $1.96 billion, JOYY holds a notable position in the social technology sector.
An InvestingPro Tip highlights that JOYY is trading at a low Price/Book multiple of 0.38 as of the last twelve months leading up to Q1 2024. This valuation metric suggests that the company's market value is relatively modest compared to its book value, which might be of interest to value-oriented investors seeking potential investment opportunities.
Another positive sign for the company is that analysts have revised their earnings estimates upwards for the upcoming period, indicating optimism about JOYY's future financial performance. Additionally, the company's liquid assets exceed short-term obligations, providing a level of financial stability that could support Ms. Li's strategic initiatives to diversify revenue and pursue growth.
InvestingPro Data also shows that JOYY has a P/E ratio of 6.64, which may appeal to investors looking for companies with lower price-to-earnings ratios, suggesting that the stock might be undervalued compared to its earnings potential.
For those interested in further insights, InvestingPro offers additional tips on JOYY, which can be accessed at: https://www.investing.com/pro/YY. These tips could provide investors with a deeper understanding of the company's financial health and future prospects as it navigates through the leadership transition and beyond.
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