Seeking Alpha

YY -4.6% AH in spite of Q1 beat, solid guidance

  • YY expects Q2 revenue of RMB745M-RMB755M ($119.2M-$120.8M), above a $113.6M consensus and good for 82%-85% Y/Y growth.
  • Online music/entertainment revenue, now 57% of total revenue, rose 11% Q/Q and 228% Y/Y to $61.6M. Paid users rose by 104K Q/Q to 1.006M, and ARPU by RMB8 to RMB381.
  • Online game revenue rose 8% Q/Q and 36% Y/Y to $29M. ARPU rose by RMB15 Q/Q to RMB391, and paid users by 28K to 461K after falling by 10K in Q4.
  • Online ads plunged 46% Q/Q and 24% Y/Y to $3.9M. All other revenue (membership fees, live game broadcasting) rose 10% Q/Q and 134% Y/Y to $12.7M.
  • Gross margin was 52.4%, +90 bps Q/Q but -130 bps Y/Y. Opex rose 38% Y/Y to $23.4M (trailed rev. growth of 112%).
  • Q1 results, PR
Comments (5)
  • berniespear
    , contributor
    Comments (234) | Send Message
    The instinct it seems these days is to selloff the earnings. YY is already climbing back in AH trading. lets see how she goes for the rest of the week!
    5 May, 05:40 PM Reply Like
  • fred2046
    , contributor
    Comment (1) | Send Message
    ARPU by RMB8 to RMB381´╝îIs it true?
    6 May, 12:22 AM Reply Like
  • T-time
    , contributor
    Comments (275) | Send Message
    This company is a monster - like other Chinese companies. HOwever, all of them have been selling off and I think there is more to it... I am considering getting out before it's all gone.....
    6 May, 11:39 AM Reply Like
  • jordanform
    , contributor
    Comment (1) | Send Message
    I was short so I was scared when earnings were beat and guidances raised. Not sure why it's down 8% but i'll cover and take the free $$$, i'm not complaining :)
    6 May, 12:15 PM Reply Like
  • T-time
    , contributor
    Comments (275) | Send Message
    Well jordanform ignorance is bliss I guess - scared? How? the analyst predictions have been aggressive across the board if you had done your research. No one who had done their DD would have shorted YY. Maybe the shorts are having a nice run but it is not because of any solid fundamentals - therefore I say it again - dumb luck! Can you do it 4 our of 5?
    6 May, 12:57 PM Reply Like
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