Financial Data and Key Metrics - Total net revenues decreased by 25.9% YoY to RMB1.03 billion in Q2 2024, with livestreaming revenues down 37.2% YoY to RMB0.79 billion [20] - Quarterly ARPU declined by 25.5% YoY to RMB243, while the total number of paying users decreased to 3.4 million [14][20] - Gross profit was RMB84.2 million, down from RMB188.9 million YoY, with gross margin decreasing to 8.2% from 13.6% [23] - Net loss for Q2 2024 was RMB49.2 million, compared to a net income of RMB6.8 million in the same period last year [24] - Cash and cash equivalents stood at RMB6.56 billion as of June 30, 2024, down from RMB6.86 billion at the end of 2023 [25] Business Line Data and Key Metrics - Mobile MAUs decreased by 12.3% YoY to 44.1 million, primarily due to competition from short video platforms [7] - The company broadcasted nearly 30 large-scale official tournaments and over 50 self-produced eSports tournaments during the quarter [8][9] - Streamer recruitment initiatives were expanded, with a focus on improving streaming incentives and content depth [12][13] - The company launched targeted self-produced events tailored to different gaming audiences, such as the Douyu Heroes Cup Season 5 and the Valorant Cup [10] Market Data and Key Metrics - The company faced intense competition from short video platforms, which impacted user acquisition and retention [7][29] - Macroeconomic challenges reduced consumer willingness to spend, affecting traditional livestreaming revenues [20][31] - The company focused on deepening commercialization collaborations with game developers, particularly in games like League of Legends: Wild Rift and Peacekeeper Elite [16][51] Company Strategy and Industry Competition - The company prioritized fostering a healthy, game-centric content ecosystem by leveraging top-tier streamers and premium content [6] - Revenue diversification efforts included introducing budget-friendly paid products and expanding innovative business revenues, which grew by 80.7% YoY to RMB242 million [15][21] - The company aimed to strengthen its competitive edge by optimizing resource allocation, deepening collaborations with stakeholders, and investing in new ventures [18] Management Commentary on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds and intense market competition as key challenges, particularly the impact on user acquisition and revenue [29][31] - The company plans to focus on core users, enhance content innovation, and diversify revenue streams to navigate short-term challenges and ensure long-term growth [30][32] - Management expressed confidence in the company's ability to adapt to changing market dynamics and maintain a leading position in the game livestreaming industry [39] Other Important Information - The company repurchased US$11.2 million in ADS under its 2024 share repurchase program and declared a special cash dividend of approximately US$300 million [25] - The company continued to invest in its community ecosystem and new businesses to enhance user experience and platform competitiveness [46] Q&A Session Summary Question: Impact of Macro Challenges on Operations and Financials - Management highlighted intense market competition and macroeconomic headwinds as primary challenges, affecting MAUs and livestreaming revenues [29][31] - The company responded by stabilizing paying users, diversifying revenue streams, and optimizing cost controls [32][33] Question: Stability of Streamers and Future Investments - Streamer assets remained stable, with a focus on refining operations and enhancing streamer incentives [35][37] - The company plans to continue upgrading streaming technologies and support tools to improve streamer experience [38][39] Question: Gross Margin Decline and Full-Year Outlook - The decline in gross margin was primarily due to decreased livestreaming revenues outpacing cost reductions [42] - Management expects continued pressure on profitability due to macroeconomic uncertainties and reduced interest income [43] Question: Cash Balance and Usage Plans - The company had RMB6.56 billion in cash and equivalents as of Q2 2024, with significant expenditures on shareholder returns [45] - Future cash usage will focus on business operations, community ecosystem investments, and new business development [46] Question: Cooperation with Game Developers and Revenue Growth - The company has deepened collaborations with game developers, particularly in game prop sales and membership services [48][49] - Management expects innovative business revenues to account for over 20% of total net revenue in 2024 [52]

DouYu International Holdings Limited Reports Second Quarter 2024 Unaudited Financial Results WUHAN, China, Sept. 12, 2024 /PRNewswire/ -- DouYu International Holdings Limited ("DouYu" or the "Company") (Nasdaq: DOYU), a leading game-centric live streaming platform in China and a pioneer in the eSports value chain, today announced its unaudited financial results for the second quarter ended June 30, 2024. Second Quarter 2024 Financial and Operational Highlights • Total net revenues in the second quarter of 2 ...

Core Insights - DouYu International Holdings Limited reported a significant decline in financial performance for Q2 2024, with total net revenues decreasing by 25.9% year-over-year to RMB1,032.0 million (US$142.0 million) [2][4] - The company experienced a net loss of RMB49.2 million (US$6.8 million) compared to a net income of RMB6.8 million in the same period of 2023, indicating a substantial shift in profitability [2][10] - DouYu's management emphasized a focus on diversifying revenue streams and enhancing content offerings despite facing macroeconomic challenges [3][4] Financial Performance - Total net revenues for Q2 2024 were RMB1,032.0 million (US$142.0 million), down from RMB1,392.2 million in Q2 2023, marking a 25.9% decrease [2][4] - Livestreaming revenues fell by 37.2% to RMB790.1 million (US$108.7 million) due to a soft macroeconomic environment and reduced promotional activities [4][6] - Gross profit decreased to RMB84.2 million (US$11.6 million) from RMB188.9 million in Q2 2023, resulting in a gross margin of 8.2% compared to 13.6% a year earlier [7][10] User Metrics - Average mobile monthly active users (MAUs) declined to 44.1 million in Q2 2024 from 50.3 million in the same period of 2023 [2][4] - The number of quarterly average paying users decreased to 3.4 million from 4.0 million year-over-year [2][4] Cost Management - Cost of revenues decreased by 21.2% to RMB947.8 million (US$130.4 million) from RMB1,203.3 million in Q2 2023, reflecting improved cost management [5][6] - Revenue-sharing fees and content costs also saw a reduction, decreasing by 18.1% to RMB803.4 million (US$110.6 million) [6][7] Strategic Initiatives - DouYu's innovative business, advertising, and other revenues increased by 80.7% to RMB242 million (US$33.3 million), contributing 23.4% of total revenue, up from 9.6% in Q2 2023 [3][5] - The company announced a US$300 million special cash dividend and successfully completed a US$20 million share repurchase program, indicating a commitment to shareholder value [3][11] Future Outlook - Management plans to continue exploring commercial diversification pathways and adapt operating strategies to address ongoing challenges in the macroeconomic environment [3][4]

Core Viewpoint - DouYu International Holdings Limited plans to release its unaudited financial results for the second quarter of 2024 on September 12, 2024, before the U.S. market opens [1] Group 1: Financial Results Announcement - The earnings release will be available on the Company's investor relations website [1] - A conference call will be held on September 12, 2024, at 7:00 a.m. Eastern Time to discuss the financial results [1] - Listeners can access the call through various toll-free numbers depending on their location [2] Group 2: Company Overview - DouYu is a leading game-centric live streaming platform in China and a pioneer in the eSports value chain [3] - The platform operates on both PC and mobile apps, providing users with access to immersive gaming and entertainment livestreaming [3] - DouYu focuses on high-quality content production and a technology-based talent development system to enhance user experience [3]

Core Points - DouYu International Holdings Limited announced a special cash dividend of US$9.76 per ordinary share, with an ex-dividend date set for September 3, 2024 [1][2] - The special cash dividend exceeds 25% of the Company's American Depositary Share (ADS) price, triggering Nasdaq's rules for the ex-dividend date [1] - The dividend payment date is scheduled for August 30, 2024, and trades during the due bill period will determine entitlement to the dividend [2] Company Overview - DouYu is a leading game-centric live streaming platform in China, focusing on eSports and interactive gaming content [3] - The platform operates on both PC and mobile apps, providing users with immersive gaming experiences and community engagement [3] - DouYu emphasizes a technology-based talent development system and high-quality content production to enhance user experience and ensure long-term growth [3]

Core Viewpoint - DouYu International Holdings Limited (NASDAQ:DOYU) is assigned a Hold investment rating due to mixed outlooks on revenue growth and profitability [1] Revenue Performance - DouYu's revenue decreased by -22.2% to RMB5,530.4 million in fiscal 2023, with a forecasted contraction narrowing to -21.3% this year and a projected positive sales growth of +4.5% next year [2] - The revenue contribution from DouYu's core live streaming business declined from 92.3% in Q1 2023 to 77.0% in Q1 2024, while advertising and other revenue accounted for 23.0% of total revenue [3] - A -41.5% drop in live streaming revenue to RMB800.9 million was partially offset by a +109.3% increase in advertising and other revenue to RMB238.8 million in Q1 2024 [3] - DouYu aims to increase the sales contribution ratio from advertising and other revenue from 13.2% in the prior year to at least 20.0% in the current year [4] Profitability Outlook - DouYu may experience some deleverage on profit levels due to ongoing adjustments in the live streaming business, leading to a -140 basis points YoY contraction in gross profit margin for Q1 2024 [5] - The company is projected to incur a normalized net loss of -RMB246 million in FY 2024, compared to a normalized net profit of +RMB154 million in FY 2023 [6] Shareholder Capital Return - DouYu's share repurchase activity has been modest, with only $2.7 million worth of shares bought back in the first three months of 2024, representing an annualized buyback yield of 3.3% [6][7] - The company does not pay dividends, making shareholder capital return reliant solely on buybacks, which may not meet investor expectations if the current repurchase rate continues [7] Market Valuation - The market is likely to focus on DouYu's revenue growth prospects, profitability outlook, and shareholder capital return when assessing the stock [8] - The current consensus price-to-revenue multiple of 0.54 times for DouYu may seem undemanding, but expected FY 2024 losses and modest share repurchase activity justify a valuation discount [8]

Financial Data and Key Metrics Changes - Total net revenues decreased by 29.9% year-over-year to RMB1.04 billion in Q1 2024 [21] - Livestreaming revenues were RMB0.8 billion, down 41.5% from RMB1.37 billion in the same period of 2023 [21] - Quarterly ARPU declined by 24.2% to RMB238 from RMB314 in the same period last year [22] - Net loss for Q1 2024 was RMB88 million, compared to net income of RMB14.5 million in the same period of 2023 [25] - Cash and cash equivalents as of March 31, 2024, were RMB6.76 billion, down from RMB6.86 billion as of December 31, 2023 [26] Business Line Data and Key Metrics Changes - Mobile MAUs were 45.3 million, a decrease of 9.7% year-over-year [6] - Total number of paying users in Q1 was 3.4 million [14] - Gaming commercialization ventures led to a higher payment conversion rate among targeted gaming traffic [7] Market Data and Key Metrics Changes - The decline in MAUs was primarily attributed to competition from short-video platforms [6][33] - Advertising and other revenues increased significantly by 109.3% to RMB238.8 million, up from RMB114.1 million in the same period of 2023 [22] Company Strategy and Development Direction - The company focused on leveraging key strengths and improving revenue structure through cooperation with game developers [5] - Strategic initiatives included optimizing organizational structure and enhancing compliance standards [5] - Plans to broaden collaboration with more game developers and diversify game prompt commercialization avenues [17] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges from macroeconomic trends and industry dynamics but emphasized a focus on long-term sustainable growth [20][31] - The company expects to experience some deleverage on profit levels due to revenue pressures but remains committed to optimizing fund allocation and enhancing commercialization capabilities [31][27] Other Important Information - The company produced over 40 eSports tournaments during the quarter and explored reciprocal content sharing collaborations [10] - The company has established collaborations with game developers in over 10 games, focusing on game prompt sales and performance-based promotions [44][45] Q&A Session Summary Question: Update on net loss and three-year margin outlook - Management emphasized a focus on long-term sustainable growth and agile operational approaches amidst macroeconomic challenges [30] Question: Softness in MAUs and outlook - Management noted that MAU decline was due to competition from short video platforms but highlighted stable core user behavior metrics [33][34] Question: Progress on cross-collaboration with other platforms - Management reported effective cross-platform collaborations that increased user engagement and broadened audience reach [39][40] Question: Revenue contribution from cooperation with game developers - Management indicated that collaborations with game developers are yielding valuable insights and contributing to revenue growth, with a focus on game prompt sales [43][45]

Financial Performance - Total net revenues for Q1 2024 were RMB1,039.7 million (US$144.0 million), a decrease of 29.9% from RMB1,483.1 million in Q1 2023[2]. - Gross profit in Q1 2024 was RMB109.0 million (US$15.1 million), down from RMB176.5 million in Q1 2023, resulting in a gross margin of 10.5% compared to 11.9%[7]. - Net loss for Q1 2024 was RMB88.0 million (US$12.2 million), compared to a net income of RMB14.5 million in Q1 2023[9]. - Total net revenues for the three months ended March 31, 2024, were RMB 1,295,962, a decrease from RMB 1,483,060 in the same period last year, representing a decline of approximately 12.6%[32]. - Gross profit for the same period was RMB 126,250, down from RMB 176,466 year-over-year, indicating a decrease of about 28.5%[32]. - The company reported a net loss of RMB 87,953 for the three months ended March 31, 2024, compared to a net income of RMB 14,517 in the prior year, reflecting a significant shift in performance[32]. - The adjusted operating loss for the three months ended March 31, 2024, was RMB (166,939) million, compared to RMB (86,401) million for the same period in 2023, indicating a significant increase in losses[34]. - The net income (loss) for the three months ended March 31, 2024, was RMB (87,953) million, reflecting ongoing challenges in the market[34]. User Metrics - Average mobile MAUs in Q1 2024 were 45.3 million, down from 50.2 million in Q1 2023[2]. - The number of quarterly average paying users in Q1 2024 was 3.4 million, a decrease from 4.5 million in Q1 2023[2]. Revenue Sources - Revenue from advertising and other sources increased by 109.3% to RMB238.8 million (US$33.1 million), contributing 23.0% of total revenue, up from 7.7% in Q1 2023[5]. - Livestreaming revenues decreased by 41.5% to RMB800.9 million (US$110.9 million) due to soft macroeconomic conditions and planned reductions in revenue-generating promotions[5]. Expenses - Research and development expenses decreased by 25.0% to RMB54.2 million (US$7.5 million) in Q1 2024[8]. - Operating expenses totaled RMB 275,945 for the latest quarter, an increase from RMB 203,744 in the same quarter last year, marking an increase of approximately 35.4%[32]. - Research and development expenses were RMB 54,150 for the three months ended March 31, 2024, down from RMB 72,311 in the same period last year, a decrease of about 25.1%[32]. Financial Position - As of March 31, 2024, the company had cash and cash equivalents totaling RMB6,762.2 million (US$936.6 million), a slight decrease from RMB6,855.5 million as of December 31, 2023[10]. - The company had total assets of RMB 8,140,650 as of March 31, 2024, compared to RMB 8,072,103 as of December 31, 2023, showing a slight increase of approximately 0.8%[30]. - Total current liabilities increased to RMB 1,376,069 as of March 31, 2024, from RMB 1,382,770 at the end of the previous quarter, indicating a decrease of about 0.2%[30]. - The company’s accumulated deficit increased to RMB (3,572,960) as of March 31, 2024, from RMB (3,485,007) at the end of the previous quarter, indicating a growing financial challenge[30]. - Cash and cash equivalents stood at RMB 4,440,131 as of December 31, 2023, with short-term bank deposits of RMB 1,716,540, reflecting a strong liquidity position[28]. Shareholder Information - The weighted average number of ordinary shares used in calculating net income (loss) per ordinary share was 31,807,180 for the three months ended March 31, 2024[32]. - The basic adjusted net income (loss) per ordinary share for the three months ended March 31, 2024, was RMB (2.69), compared to RMB (0.80) for the same period in 2023[34]. - The weighted average number of ordinary shares used in calculating adjusted net income (loss) per ordinary share for the three months ended March 31, 2024, was 31,807,180[34]. Impairment and Losses - The company reported an impairment of goodwill and intangible assets of RMB 34,035 million for the three months ended December 31, 2023[34]. - The share of loss in equity method investments for the three months ended March 31, 2024, was RMB 1,310 million, compared to RMB 3,236 million for the same period in 2023[34]. - The company experienced impairment losses of investments totaling RMB 21,844 million for the three months ended December 31, 2023[34]. - The adjusted net income (loss) attributable to DouYu for the three months ended March 31, 2024, was RMB (85,692) million, a decline from RMB (5,036) million in the same period last year[34].

Core Viewpoint - DouYu International Holdings Limited reported a significant decline in financial performance for the first quarter of 2024, with total net revenues decreasing by 29.9% year-over-year, reflecting challenges in the macroeconomic environment and the livestreaming industry dynamics [2][4]. Financial Performance - Total net revenues for Q1 2024 were RMB1,039.7 million (US$144.0 million), down from RMB1,483.1 million in Q1 2023 [2][4]. - Gross profit decreased to RMB109.0 million (US$15.1 million) from RMB176.5 million in the same period last year [2][7]. - The company reported a net loss of RMB88.0 million (US$12.2 million) compared to a net income of RMB14.5 million in Q1 2023 [2][8]. - Adjusted net loss was RMB85.7 million (US$11.9 million), a decline from adjusted net income of RMB25.8 million in the previous year [2][9]. User Metrics - Average mobile monthly active users (MAUs) were 45.3 million, down from 50.2 million in Q1 2023 [2]. - The number of quarterly average paying users decreased to 3.4 million from 4.5 million in the same period last year [2]. Revenue Breakdown - Livestreaming revenues fell by 41.5% to RMB800.9 million (US$110.9 million) due to soft macroeconomic conditions and a planned reduction in revenue-generating promotions [4][5]. - Advertising and other revenues increased by 109.3% to RMB238.8 million (US$33.1 million), driven by innovative business initiatives [5][6]. Cost Management - Cost of revenues decreased by 28.8% to RMB930.7 million (US$128.9 million) [5]. - Revenue-sharing fees and content costs dropped by 37.7% to RMB675.1 million (US$93.5 million) [6]. - Bandwidth costs decreased by 33.7% to RMB82.5 million (US$11.4 million) [6]. Operational Adjustments - The company is focusing on diversifying its commercialization capabilities and optimizing its organizational structure to enhance user experience [3]. - DouYu has returned RMB111.7 million related to historical illegal activities of third-party streamers to government authorities, recorded as an operating expense [3]. Strategic Developments - DouYu's board authorized a share repurchase program of up to US$20 million, with US$2.7 million repurchased by March 31, 2024 [10]. - The strategic cooperation agreement with Tencent was renewed for another three years, maintaining similar terms as previous agreements [11].

WUHAN, China, May 29, 2024 /PRNewswire/ -- DouYu International Holdings Limited ("DouYu" or the "Company") (Nasdaq: DOYU), a leading game-centric live streaming platform in China and a pioneer in the eSports value chain, today announced that it plans to release its unaudited financial results for the first quarter 2024 before the U.S. market opens on Wednesday, June 5, 2024. The earnings release will be available on the Company's investor relations website at http://ir.douyu.com/.DouYu's management will hol ...