JOYY Inc. (NASDAQ: YY) saw its stock price plummet 12.93% in pre-market trading on Thursday, following the release of its fourth quarter and full year 2024 financial results. The sharp decline came as investors reacted to a combination of disappointing factors, including downbeat revenue guidance, a substantial impairment charge, and shrinking user engagement across the company's platforms.

For the first quarter of 2025, JOYY provided a lower-than-expected revenue outlook, projecting net revenues between $482 million and $490 million. This forecast falls short of analysts' expectations of $490.8 million, according to LSEG data. The company's Q4 2024 results were marred by a massive $454.9 million non-cash goodwill impairment charge related to prior acquisitions, resulting in a net loss of $304.1 million for the quarter. This impairment overshadowed the company's better-than-anticipated adjusted earnings of $96.1 million, which exceeded analyst estimates of $73.4 million.

Adding to investor concerns, JOYY reported declining user metrics across its key products. The company's 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 platforms like Bigo Live, Likee, and Hago, signaling potential challenges in user retention and growth. Despite some positive aspects, such as improved operational efficiency and growth in non-livestreaming revenues, the market's negative reaction suggests that investors are prioritizing the company's ability to maintain its user base and navigate challenging market conditions.