- Though it handily beat Q4 estimates, NASDAQ:YY is guiding for Q1 revenue of RMB1.06B-RMB1.08B ($169.3M-$172.5M), below a $184.3M consensus. However, a lot has already been priced in over the last three months.
- With shares far below a 52-week high of $96.39, the board has authorized a new $100M, 12-month, buyback. $50M has been spent through a $100M buyback launched last May to repurchase shares at an average price of $54.87.
- Q4 revenue of RMB1.17B ($188.7M) topped a $178.1M consensus. Online music/entertainment revenue +100.9% Y/Y to $109M; online games +40.9% to $37M; other Internet services (online dating, live game broadcasts, membership subscriptions) +237.8% to $37.8M.
- Paying online music/entertainment users +27% Q/Q and +66% Y/Y to 1.49M. ARPU flat Q/Q and +21% Y/Y at RMB453. Online game paid users +4% Q/Q and +16% Y/Y to 504K; ARPU -6% Q/Q but +21% Y/Y to RMB455. Mobile monthly active users rose 32% Q/Q and 80% Y/Y to 30M.
- Thanks to a mix shift towards lower-margin content businesses, gross margin fell to 46.7% from 51.7% in Q3 and 51.5% a year ago. Operating expenses rose 72.9% Y/Y to $35.8M (compares with 91% revenue growth).
- Shares have risen to $58.84 AH. They rose 7.3% in regular trading ahead of earnings.
- Q4 results, PR