JOYY Inc. (YY): Business Model Canvas [Dec-2025 Updated]

You're looking at JOYY Inc. (YY) and wondering how they keep that global social entertainment engine running, especially with the market shifting. Honestly, the story right now, late 2025, boils down to a powerful dual-engine: their massive live streaming business, which pulled in $388 million in gifting revenue in Q3 2025, perfectly paired with their growing BIGO Ads platform, adding another $104 million that same quarter. With a war chest of $3.32 billion in net cash as of September 30, 2025, and a $900 million shareholder return plan underway, understanding the mechanics behind their 266.2 million global MAU is key to seeing where the next dollar comes from. Below, I've broken down their entire operating model using the Business Model Canvas so you can see exactly how they connect creators, advertisers, and those millions of users.

JOYY Inc. (YY) - Canvas Business Model: Key Partnerships

You're looking at the engine room of JOYY Inc.'s global reach, which is entirely dependent on a complex web of external relationships. These aren't just vendors; they are co-pilots in scaling Bigo Live and Likee across diverse, often regulated, international territories. The financial commitment to these partners is significant, as evidenced by the direct impact on operating costs.

The sheer scale of the platforms JOYY Inc. supports through these partnerships is best seen in the Q3 2025 top-line numbers. Livestreaming revenue hit US$388 million, and the rapidly growing BIGO Ads segment brought in US$104 million. This revenue base is the direct result of successful collaboration across all five key partnership areas.

Content creator agencies and talent networks for Bigo Live and Likee are essential for maintaining the content pipeline and managing the talent pool, which directly influences user engagement and gifting revenue. While specific agency contracts aren't public, the operational focus on creator ecosystems is clear:

• Bigo Live saw its MAUs reach 29.6 million in Q2 2025.
• Likee's MAUs were reported at 28.5 million in Q2 2025.
• BIGO's overall paying users grew sequentially by 0.8% in Q3 2025.

Global e-sports organizations are key for driving high-value, event-based viewership and engagement, especially on Bigo Live. For instance, in 2024, Bigo Live broadcast major Free Fire, MLBB, and PUBG Mobile events, which helps secure premium user time and gifting opportunities. The success of these events directly contributes to the US$388 million in Q3 2025 livestreaming revenue.

The partnership with third-party traffic acquisition partners is a measurable expense tied to the growth of BIGO Ads. This is where we see a direct financial impact in the cost structure. The expansion of the advertising business relies heavily on these external traffic sources:

So, you can see that scaling the US$104 million ad revenue required a significant, measurable investment in traffic partners, showing up as a US$19.2 million sequential jump in related costs.

Cloud service providers for global low-latency video streaming infrastructure are a foundational necessity. While specific contracts aren't disclosed, JOYY Inc. notes that its existing global network infrastructure and tech capabilities offer significant cost advantages. This infrastructure underpins the entire BIGO segment, which generated US$368 million in livestreaming revenue in Q3 2025.

For international virtual gifting, the reliance on payment processors and local e-wallet services is absolute for converting user intent into revenue. The financial data shows the overall scale of the transaction volume, even if the partner fees are bundled:

• JOYY Inc. maintained a net cash position of US$3.3 billion as of September 30, 2025, indicating strong liquidity to manage payment processing float and fees.
• The company's overall Gross Margin in Q3 2025 was 35.8%, which reflects the net result after deducting costs like payment processing fees, content costs, and revenue-sharing arrangements.

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

JOYY Inc. (YY) - Canvas Business Model: Key Activities

You're looking at the core actions JOYY Inc. takes to keep its dual-engine growth strategy running strong as of late 2025. It's all about the tech driving the ads and the disciplined management of the user base.

Developing and optimizing AI-driven content recommendation algorithms.

This activity is directly tied to the performance of the advertising segment. The focus on AI is meant to improve user engagement, which in turn drives higher ad spending from partners. The results of this technological push are visible in the advertising revenue growth.

• AI-driven innovations are fueling growth across BIGO Ads, specifically in user insights and precise targeting.
• The company's non-livestreaming revenue, which includes advertising, reached US$151.7 million in the third quarter of 2025.
• Non-livestreaming revenue accounted for 28.1% of JOYY Inc.'s total revenue in Q3 2025.

Operating and moderating global live streaming and short-form video platforms.

Keeping the global platforms running smoothly requires constant investment in infrastructure and moderation to maintain a positive environment for high-value users. The operational focus has shifted toward efficiency, as shown by the user metric adjustments.

Strategic sales and marketing focused on high-ROI user acquisition.

JOYY Inc. has actively optimized its spending on sales and marketing, prioritizing return on investment (ROI) over sheer user volume growth, which is evident in the MAU figures from early 2025. This discipline helps maintain profitability even as user counts shift.

The shift in strategy is reflected in the user base changes observed in the first quarter of 2025:

• Global average mobile MAUs decreased year-over-year in Q1 2025 to 260.4 million from 277.3 million in Q1 2024.
• Average revenue per paying user (ARPPU) for BIGO in Q1 2025 was US$221.6.
• The company's non-GAAP operating income for Q3 2025 was US$41 million, showing improved operational leverage.

Research and development for BIGO Ads, the programmatic advertising platform.

This is the company's stated second growth engine. R&D efforts are focused on enhancing the platform's capabilities to attract and retain advertiser budgets, which is translating directly into strong top-line growth for this segment.

The growth in advertising revenue is a concrete example of innovation turning into financial performance, with the segment showing a year-over-year increase of 33.1% in Q3 2025.

Managing a US$900 million shareholder return program (2025-2027).

A major ongoing activity is the execution of the capital return plan, supported by a strong cash position. This demonstrates a commitment to returning value to shareholders while funding operations.

Here's the quick math on the shareholder returns as of mid-November 2025:

• Total announced shareholder return program size: US$900 million through 2027.
• Dividends distributed year-to-date (Jan 1 - Nov 14, 2025): US$148 million.
• Shares repurchased year-to-date (Jan 1 - Nov 14, 2025): US$89 million.
• Net Cash balance as of September 30, 2025: US$3.32 billion.

The company's operating cash flow for the third quarter of 2025 was US$73 million.

JOYY Inc. (YY) - Canvas Business Model: Key Resources

You're looking at the core assets JOYY Inc. (YY) is using to run its global social and entertainment ecosystem as of late 2025. These aren't just line items on a balance sheet; they are the engines driving user engagement and financial stability. Honestly, the cash position alone gives them a lot of runway for strategic moves.

The foundation of JOYY Inc.'s Key Resources rests on a blend of proprietary technology, a massive user base, and a very healthy balance sheet. These elements work together to support their diversified portfolio of social applications.

The most concrete assets are the user metrics and the financial reserves. Here's a quick look at the numbers that define their current scale:

The technology underpinning this operation is a significant, though less quantifiable, resource. JOYY Inc. relies on its proprietary AI and data-driven technology for user targeting and ad delivery. This tech stack is crucial for monetizing the large user base, especially as advertising revenues show strong growth.

The advertising segment performance highlights the effectiveness of this technology:

• Advertising revenues reached US$112.5 million in the third quarter of 2025.
• BIGO Ads revenue in Q3 2025 was reported at US$104 million.
• Non-livestreaming revenue, which includes advertising, contributed 28.1% of the Company's total revenue in Q3 2025.

The application portfolio itself is a core resource, providing the platform for user interaction and revenue generation. You need to keep track of these properties:

• Bigo Live
• Likee
• imo
• Hago
• Shopline

Finally, operating globally at this scale requires significant human capital dedicated to governance and safety. JOYY Inc. maintains global content moderation and compliance teams across multiple regions. While specific team sizes aren't public, the operational adjustments made in 2025 to enhance efficiency and compliance suggest this resource is actively managed and scaled to meet diverse international regulatory demands. The company's commitment to shareholder returns, including a quarterly dividend program authorized from 2025 to 2027, also signals that financial management and capital allocation strategy are treated as key, actively managed resources.

JOYY Inc. (YY) - Canvas Business Model: Value Propositions

You're looking at the core value JOYY Inc. delivers to its various stakeholders as of late 2025. It's a mix of entertainment, global reach, and high-efficiency advertising that drives the numbers we see in the latest reports.

Real-time interactive social entertainment via live streaming and virtual gifting.

This is the foundation, the engine that keeps the ecosystem running. The core livestreaming business is showing a sequential recovery, which is a good sign for creator stability. In the third quarter of 2025, JOYY Inc.'s livestreaming revenue hit US$388 million. Specifically, BIGO livestreaming revenue was US$368 million for that same period. The monetization from gifting is directly tied to user engagement metrics, which showed positive momentum; BIGO's total paying users grew 0.8% quarter-over-quarter, and the Average Revenue Per Paying User (ARPPU) increased by 3.4% quarter-over-quarter in Q3 2025. That's defintely how you see the value proposition translating to the top line.

Global connectivity, allowing users to interact across 150+ countries.

JOYY Inc. has built a platform that connects users across over 150 countries. This massive footprint supports the scale needed for both content consumption and ad targeting. As of the third quarter of 2025, the global average mobile Monthly Active Users (MAUs) reached 266 million. This user base is the raw material for all other value streams.

High-ROI advertising solutions for global and regional brands via BIGO Ads.

The second growth engine, BIGO Ads, is delivering significant high-margin value to advertisers. In Q3 2025, advertising revenue surged, with BIGO Ads recording US$104 million in revenue. This represented a year-over-year growth of 33.1%. The total non-livestreaming revenue, which includes this ad segment, accounted for 28.1% of the Company's total revenue in Q3 2025, which was US$540 million. The platform's ability to use AI for predictive modeling and real-time bidding helps advertisers achieve strong return efficiency.

Here's a quick look at how the key drivers stacked up in Q3 2025:

Platform monetization tools and incentives for content creators.

The tools that allow creators to earn from virtual gifting are central to keeping high-quality content flowing. The US$388 million in livestreaming revenue is the direct result of this value exchange. The platform's ability to drive sequential growth in both paying users and ARPPU shows the tools are effective at capturing and rewarding high-value interactions.

Premium, ad-free experience and exclusive features for high-spending VIP users.

The VIP segment is targeted through features that enhance the experience for those willing to spend more, which is reflected in the ARPPU metrics. The 3.4% quarter-over-quarter increase in ARPPU in Q3 2025 highlights the success of catering to these high-spending users. These users are the backbone of the virtual gifting revenue stream, which is a key component of the core livestreaming business.

JOYY Inc. (YY) - Canvas Business Model: Customer Relationships

You're looking at how JOYY Inc. (YY) keeps its massive global user base engaged and spending money across platforms like Bigo Live and Likee. The relationship strategy is a blend of high-tech personalization and direct, high-touch support for the most valuable community members.

Automated, AI-driven content feeds for personalized user experience.

JOYY Inc. is definitely leaning into automation to keep eyes on the screen. They implemented AI-powered improvements across content distribution and payment experiences in Bigo Live during 2025. This focus on AI helped drive users' average viewing time up quarter-over-quarter in the third quarter of 2025. A concrete sign of adoption is that by October 2025, AI-powered interactive gifts accounted for 25% of total virtual gift consumption. This shows users are interacting with the new, personalized features.

The overall reach supporting this personalization is vast:

• Global average mobile Monthly Active Users (MAUs) hit 266.2 million in Q3 2025.
• This represented a 1.4% quarter-over-quarter increase from Q2 2025.

Dedicated, priority customer support for high-value VIP/SVIP members.

While I don't have the exact budget line for 'priority support,' the transactional data clearly shows where the focus on high-value users lies. The tiered structure encourages spending that directly funds these support systems. The success of these incentives is visible in the paying user metrics.

Here's the quick math on the core paying segment for the BIGO segment as of Q3 2025:

Also, in the second quarter of 2025, the introduction of refined tiered incentives and exclusive privileges drove a 13% quarter-over-quarter increase in premium paying users on Bigo Live. This is the direct result of catering to that high-value cohort.

Tiered, transactional model based on virtual gift purchases (e.g., SVIP tiers up to $3,500).

The model is fundamentally transactional, driven by virtual gift purchases that define user tiers. Although the specific $3,500 SVIP threshold isn't confirmed in the latest filings, the commitment to shareholder value indirectly supports the ecosystem that enables such high spending. JOYY Inc. has a US$900 million shareholder return program running from 2025 through 2027. As of November 14, 2025, they had already returned over US$236 million through dividends and repurchases in 2025 alone. This financial stability underpins the high-value user experience.

To be fair, the ARPPU has seen some fluctuation; for instance, in Q1 2025, the BIGO ARPPU was US$221.6, down from US$235.4 in Q1 2024.

Community-driven engagement through in-app families and localized events.

Community structure is key to retention, especially given the slight dip in overall scale from 272.4 million MAUs in Q3 2024 to 266.2 million in Q3 2025. The strategy is clearly focused on quality over sheer volume, as evidenced by optimizing marketing strategies to focus on return-on-investment and high-value users. The platform actively manages these relationships through structured programs:

• Bigo Live restructured its streamer incentive mechanisms across regions since the second half of 2024 to improve streamer engagement and content quality.
• The Company is running structured events like the 'SSS Season 1, Round 2 Streamer Mission' scheduled for December 2025.

Advanced management system for direct support to streamers and agencies.

Direct support for content creators is a critical relationship component, as they are the primary value providers. JOYY Inc. formalizes this through dedicated programs. Bigo Live launched the Streamer Academy in Q2 2025, which offers tiered training, enhanced broadcast tools, and operational support. This investment directly impacted creator supply, fueling a 1.6% quarter-over-quarter increase in the number of streamers on Bigo Live in Q2 2025.

Finance: draft 13-week cash view by Friday.

JOYY Inc. (YY) - Canvas Business Model: Channels

JOYY Inc. uses a multi-pronged approach to deliver its value propositions, heavily leaning on digital distribution and its growing advertising technology stack.

The core distribution for the livestreaming segment relies on major mobile application stores. As of the third quarter of 2025, JOYY Inc.'s global average mobile Monthly Active Users (MAUs) stood at 266 million, marking a 1.4% quarter-over-quarter increase. This user base is the foundation for both virtual gift transactions and advertising inventory. Earlier in 2025, the Company resolved safety concerns that led to Bigo Live's removal by reinstating it on Google Play and was negotiating its potential return to Apple's App Store.

For direct monetization channels, the livestreaming revenue for the third quarter of 2025 reached US$388.5 million. While specific direct web top-up discount figures aren't public, this revenue stream is supported by the overall user engagement metrics, such as BIGO's total paying users growing 0.8% quarter-over-quarter in Q3 2025, alongside an Average Revenue Per Paying User (ARPPU) increase of 3.4% quarter-over-quarter.

In-app promotion and cross-promotion across the JOYY product ecosystem are integral to driving the dual growth engine strategy. The focus on strengthening synergies within the ecosystem supports the overall user base health, which saw Bigo Live deliver positive sequential growth for the second consecutive quarter in Q3 2025.

Targeted digital advertising campaigns, primarily through BIGO Ads, represent a significant channel for both revenue generation and user acquisition. BIGO Ads revenue in Q3 2025 reached US$112.5 million, a substantial year-over-year growth of 29.2%. This growth is fueled by AI-driven innovations in user insights and precise targeting. The Company is also building scale on the traffic side by integrating premium global traffic across multiple channels.

The integration with third-party networks is a key component of the advertising channel. JOYY Inc. has significantly scaled its third-party BIGO Audience network traffic through successful integrations with mediation platforms like AppLovin MAX and Unity LevelPlay. Growing publisher SDK adoption drove nearly 80% traffic growth versus the second half of 2024. Overall sales and marketing expenses for the group in Q3 2025 were US$72.1 million.

Social media and KOL marketing efforts are executed under an ROI-driven user acquisition strategy. The Company's focus is on user acquisition efficiency, which contributed to a decrease in sales and marketing expenses compared to the prior year period (Q3 2024 sales and marketing expenses were US$83.5 million).

Here's a look at the financial performance of the advertising channel, which is positioned as JOYY Inc.'s second growth engine:

The channels are leveraged to support the overall ecosystem engagement:

• Global average mobile MAUs in Q3 2025: 266 million.
• Bigo Live MAUs in Q1 2025: 28.9 million.
• Likee MAUs in Q1 2025: 30.2 million.
• BIGO's total paying users in Q3 2025 grew 0.8% quarter-over-quarter.
• BIGO Ads revenue is expected to maintain strong double-digit revenue growth through 2026.

The Company is using data intelligence to maximize channel effectiveness. This focus helped boost GAAP operating income by 244.5% year-over-year to US$12.2 million in Q1 2025.

JOYY Inc. (YY) - Canvas Business Model: Customer Segments

You're looking at the core audience that fuels JOYY Inc.'s global social entertainment ecosystem as of late 2025. The strategy clearly pivots on maximizing value from a massive, geographically diverse base.

The foundation of the business rests on the mass market mobile users seeking real-time social entertainment globally. As of the third quarter of 2025, JOYY Inc. reported a Global Mobile Monthly Active User (MAU) base of 266.2 million. This is the sheer scale that supports both the core live streaming and the growing advertising segments.

The high-value paying users remain critical, driving the majority of the core live streaming revenue. Management has explicitly shifted user acquisition spending to prioritize these higher quality paying users in core markets. The livestreaming segment, which is the profit bedrock, generated US$388.5 million in revenue in Q3 2025.

For content creators and professional streamers, the platform offers monetization through virtual gifting and subscriptions, supported by a focus on layered monetization within the creator economy. The core live streaming revenue they generate is substantial, with Bigo Live contributing significantly to the US$388.5 million in Q3 2025 livestreaming revenue.

The segment of global and regional advertisers is JOYY Inc.'s second growth engine, seeking performance-driven ad inventory from the BIGO Ads platform. Advertising revenues, primarily from BIGO Ads, reached US$112.5 million in Q3 2025, marking a year-over-year growth of 33.1%. Non-livestreaming revenues, which include advertising, accounted for 28.1% of the Company's total revenue in Q3 2025.

JOYY Inc.'s global footprint targets specific high-potential geographies. The company operates across these key regions: North America, Europe, the Middle East, and Southeast Asia. The focus on quality users is evident in regional performance; for instance, Bigo Live's North American region saw MAU growth exceeding 7% year-over-year in Q1 2025, and the number of paying users in that region grew approximately 4% Quarter-over-Quarter.

Here's a quick look at the key segment-related financial metrics as of the latest reporting period:

The user base characteristics drive the monetization strategy:

• Global mobile users are the base for real-time social entertainment.
• Paying users are the primary driver for core live streaming revenue.
• Advertisers are drawn by the 29.2% to 33.1% YoY growth in ad revenue.
• Creators are supported by a strategy focused on layered monetization.
• North America paying users showed a 4% QoQ increase in Q1 2025.

If onboarding takes 14+ days, churn risk rises, especially for new creators seeking immediate returns.

JOYY Inc. (YY) - Canvas Business Model: Cost Structure

You're looking at the expense side of JOYY Inc.'s operations as of late 2025, which is heavily weighted toward content and user acquisition, as is typical for a social media platform.

Revenue-sharing fees and content costs represent the largest single expense category, directly tied to the live streaming and content ecosystem. For the third quarter of 2025, the total Cost of revenues was reported at US$347.1 million. The sequential change quarter-over-quarter was significantly influenced by this area, with a US$19.2 million increase in revenue-sharing fees and content costs, driven by higher traffic acquisition costs related to advertising expansion. Specifically for the BIGO segment, the cost of revenues for Q3 2025 was US$308.1 million, a decrease of 1.4% year-over-year.

Sales and marketing expenses are actively managed, showing a clear focus on efficiency. In the third quarter of 2025, these expenses totaled US$72.1 million. This figure was down from US$83.5 million in the corresponding period of 2024, reflecting the optimization for return-on-investment and user acquisition efficiency.

The infrastructure to support global, low-latency video delivery, which includes bandwidth and server infrastructure costs, is embedded within the Cost of Revenues, which was US$347.1 million in Q3 2025.

Research and development (R&D) investment in AI and new product features is a strategic necessity, though the specific dollar amount for R&D expenses in Q3 2025 is not explicitly broken out in the latest reports, separate from other operating expenses.

General and administrative costs support the global workforce. As of December 31, 2024, JOYY Inc. had 5,815 employees. The company size is generally categorized as between 5,001-10,000 Employees.

Here's a quick look at the key operating expense components for Q3 2025 compared to the prior year period:

The commitment to shareholder returns also factors into the financial structure, with a shareholder return program announced covering approximately US$900 million through dividends and share repurchases from 2025 through 2027.

• Net cash as of September 30, 2025, stood at US$3,320.9 million.
• Net cash from operating activities for Q3 2025 was US$73.4 million.
• The company announced a dividend of $0.94 per ADS in Q1 2025.
• For the full year 2024, JOYY invested US$309.2 million in share repurchases.

Finance: draft 13-week cash view by Friday.

JOYY Inc. (YY) - Canvas Business Model: Revenue Streams

You're looking at how JOYY Inc. (YY) converts its user engagement into hard cash as of late 2025. It's a mix of direct user spending, advertising dollars, and platform services, showing a clear pivot toward non-livestreaming growth.

The core of the revenue engine remains the interactive social entertainment platforms. You see this in the direct monetization from users who want to support creators or gain status within the apps. This segment has shown a steady sequential recovery heading into the end of 2025.

• Live streaming revenue from virtual gifting, totaling US$388 million in Q3 2025. (Note: Detailed reports show US$388.5 million for the quarter).
• Advertising revenue from BIGO Ads, which grew to US$104 million in Q3 2025.
• Subscription and premium membership fees (e.g., Bigo Live VIP/SVIP).
• Revenue from casual games and other non-livestreaming services (e.g., Hago).
• E-commerce and smart commerce platform service fees (Shopline).

The advertising technology platform, BIGO Ads, is definitely gaining momentum, showing accelerated top-line growth. This is a key part of JOYY Inc. (YY)'s strategy to diversify away from reliance on virtual gifting. BIGO Ads revenue in Q3 2025 was reported at US$104 million, marking a year-over-year growth of 33.1%. This growth is attributed to expanding traffic and better algorithm performance.

The total non-livestreaming revenue, which bundles advertising with other services, reached US$151.7 million in the third quarter of 2025, representing a year-over-year increase of 27.3%. This category is where revenue from casual games like Hago and the smart commerce SaaS business, Shopline, is primarily captured. Other revenues specifically were reported at US$39.2 million in Q3 2025, driven in part by the continued steady growth of the smart commerce SaaS business.

Here's a quick look at the Q3 2025 revenue composition based on the reported segments. It shows how the non-livestreaming portion is closing the gap relative to the core business.

The subscription and premium membership fees are embedded within the livestreaming revenue figure of US$388.5 million. For instance, BIGO's total paying users grew 0.8% quarter-over-quarter, while the Average Revenue Per Paying User (ARPPU) increased 3.4% quarter-over-quarter in Q3 2025, directly reflecting the strength of these premium fee streams.

The overall revenue picture for JOYY Inc. (YY) in Q3 2025 was US$540.2 million. This reflects a sequential recovery in the main segment while the diversification engine, advertising, accelerates. If onboarding takes 14+ days, churn risk rises, which directly impacts those virtual gifting numbers, so maintaining user experience is defintely critical for this revenue stream.