JOYY Inc. (NASDAQ: YY) saw its stock price plummet 7.34% in the 24-hour period following the release of its fourth quarter and full year 2024 financial results. The significant decline came as investors reacted to a massive goodwill impairment charge and declining user metrics, overshadowing better-than-expected adjusted earnings.

In its Q4 2024 report, JOYY announced a net loss of $304.1 million, primarily due to a $454.9 million non-cash goodwill impairment charge associated with prior acquisitions. This impairment was attributed to lower valuations amid current market conditions. While the company's adjusted net income of $96.1 million beat analyst estimates of $73.4 million, the market focused on the substantial writedown and other concerning metrics.

Adding to investor concerns, JOYY reported declining user engagement across its platforms. 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 key products 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.