JOYY Inc. (NASDAQ: YY) saw its stock price plummet 6.16% in after-hours trading on Wednesday following the release of its fourth quarter and full year 2024 financial results. The sharp decline came despite the company reporting adjusted earnings that beat analyst estimates.

The social media platform operator reported Q4 revenue of $549.4 million, slightly missing the consensus estimate of $549.5 million. However, the company's bottom line was severely impacted by a $454.9 million non-cash goodwill impairment charge, resulting in a net loss of $304.1 million for the quarter. Excluding this impairment, JOYY's adjusted net income was $96.1 million, surpassing the expected $73.4 million.

Investors appear to be focusing on the significant goodwill writedown and declining user metrics across JOYY's platforms. The company reported that its global average mobile monthly active users (MAUs) decreased to 263.1 million in Q4 2024, down from 274.9 million in the same period of 2023. This decline was evident across key products like Bigo Live, Likee, and Hago. The combination of the large impairment charge and shrinking user base seems to have overshadowed the adjusted earnings beat, leading to the after-hours selloff.