JOYY Inc (NASDAQ:JOYY) posted strong first-quarter earnings with an EPS of $1.18, beating the consensus of $1.00. Their revenue reached $494.35 million, surpassing the anticipated $490 million. The company’s shares closed at $43.64, showing a slight decline of 7.4% over the past three months but a remarkable growth of 33.7% year-over-year.

Continued Pattern of Earnings Surprises

JOYY’s earnings performance reflects a trend of unexpected positives, having consistently exceeded estimates in the past four quarters by an average of 5% according to Entreprenerdly’s Historical Earnings API. This growth pattern supports ongoing investor confidence despite recent stock price fluctuations.

Strong Revenue Performance

• Q1 Revenue: $494.35 M vs. $490 M estimate
• Year-on-Year Growth: up 12%
• Adjusted EBITDA Margin: 38%

JOYY’s robust margins are indicative of effective content monetization practices coupled with significant user engagement.

Market Valuation Insights

JOYY’s stock trades at 18 times trailing twelve-month earnings, slightly above the software services median of 16 times. This premium valuation reflects investor expectations of enduring growth and continued earnings surprises.

As JOYY prepares for its Q2 guidance in the upcoming earnings call, insights will be crucial in determining whether it can maintain its user base and monetization strategies effectively.