Credit: IMAGE SOURCE: GETTY IMAGESWhat happened
Shares of YY Inc. (NASDAQ: YY) jumped as much as 11.8% early Wednesday, then settled to close up 8.8% after the Chinese live-streaming social media platform announced strong third-quarter 2018 results.
More specifically, YY's quarterly revenue climbed 32.6% year over year to 2.6745 billion yuan ($597 million). That translated to 19.7% growth in adjusted (non- GAAP ) net income to $114.6 million, and an 11.1% increase in adjusted net income per share to $1.76. Most analysts would have settled for earnings of $1.67 per share on revenue of $590 million.
IMAGE SOURCE: GETTY IMAGES
So what
YY's top-line growth was driven by a 32.6% increase in live-streaming revenue, helped by 20.7% growth in mobile live streaming monthly active users and a 26.3% increase in total live streaming paying users.
Chairman and acting CEO David Xueling Li added that both YY Live and Huya have enjoyed "continuous market expansion," adding:
Now what
For the fourth quarter, YY sees revenue arriving between 4.39 billion yuan and 4.54 billion yuan, good for year-over-year growth of 21.1% to 25.2%. By contrast, analysts' consensus estimates predicted much more modest 12.8% growth.
In the end, combined with YY's straightforward third-quarter beat, that outlook gave investors more than enough reason to bid up YY shares in response today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
