JOYY Inc. (YY) stock prices were up by 2.84% as of the market closing on August 25th, 2021. This brought the price per share up to USD$56.47 at the end of the trading day. Subsequent premarket fluctuations have seen the stock rise by 11.63%, bringing it up to USD$63.04.
YY Stock’s Revenue Reports
Net revenues for the second quarter of fiscal 2021 were reported at USD$661.7 million by YY stock. This is a 39.7% increase from the USD$473.5 million reported in the prior year quarter. The year over year difference was largely driven by the growth of live streaming revenues from BIGO, which has continued to see growth in paying users and enhanced monetization capabilities. Resultingly, live streaming revenues were up 39.7% from USD$450.7 million in Q2 2020 to USD$629.6 million in Q2 2021.
Costs of Revenue
Costs of revenues were up to USD$458.3 million in the second quarter of fiscal 2021, representing a 32.2% increase from the USD$346.7 million reported in Q2 2020. Bandwidth costs were down to USD$27.5 million in Q2 2021, down from the USD$32.7 million in Q2 2020. This year over year difference was largely driven by YY stock’s improved efficiency in bandwidth usage. Further consolidating the yearly difference was the termination of bandwidth usage for users in India after the country’s measures to block certain Chinese mobile apps in late June 2020. This reduction was partially offset by the continued expansion of the company’s user base outside of India.
YY Stock’s Gross Profit Reports
YY stock reported gross profit for the second quarter of fiscal 2021 in the amount of USD$203.4 million. This represents a 60.4% increase from the USD$126.9 million in the prior year quarter. Gross margin improved to 30.7% in the 2021 quarter, as compared to the 26.8% reported in the second quarter of fiscal 2020.
Solid Liquidity Position
YY stock reported a comfortable liquidity position as of June 30th, 2021. The company reported cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments in the amount of USD$4.917 billion. The company reported having a total of 1,568.1 million common share outstanding as of June 30th 2021. This is equivalent to 78.4 million ADSs outstanding as of the same date.
Future Outlook for YY Stock
The company reported a strong second quarter of fiscal 2021, the success of which it hopes to maintain through the upcoming quarters. YY stock is poised to capitalize on the opportunities afforded to it as a result of the momentum it has generated. Investors are hopeful in the company’s ability to leverage the resources at their disposal to facilitate organic growth over the long term.
