China-based YY ( YY ), a leading provider of a social media platform used for steaming live content, reported third-quarter results after the market close Tuesday that soundly beat estimates on the top and bottom line, as did its revenue guidance for the fourth quarter.
YY reported revenue of $464.8 million, smashing the consensus estimate of $423 million, as polled by Zacks Investment Research, and up 48% from the year-ago period. It reported adjusted earnings of $1.59 per share, also beating the consensus estimate of $1.45 and up 41% from the year-ago period.
Revenue from livestreaming rose 60% to $431.6 million.
YY shares were up 1.5%, near 90.55 during after-hours trading in the stock market today . YY shares are up about 126% this year.
IBD’S TAKE: YY has a strong IBD Composite Rating of 99 out of a possible 99 and is among the best Chinese stocks to buy and watch .
YY is a pioneer in livestreaming services, offering music and dating shows, live game broadcasting and e-learning. The use of livestreaming services has surged in China due to a shortage of entertainment options, particularly in the lower-tier cities, and the appeal of its “freemium” model, where video is free to view but requires payments to boost engagement.
For the current fourth quarter, YY estimates revenue to be in the range of $512.4 million to $527.5 million, above the estimate of $498 million and up 45% from the year-ago period at the midpoint.
China’s Momo, YY Outrun Facebook, Twitter In Streaming: Goldman
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.