DouYu(DOYU) - 2023 Q3 - Quarterly Results

Financial Performance - Total net revenues for Q3 2023 were RMB1,359.2 million (US$186.3 million), a decrease of 24.4% from RMB1,798.3 million in Q3 2022[1][4] - Gross profit for Q3 2023 was RMB192.4 million (US$26.4 million), compared to RMB251.2 million in the same period of 2022, with a gross margin of 14.2%[1][6] - Net income for Q3 2023 was RMB76.4 million (US$10.5 million), a significant improvement from a net loss of RMB6.6 million in Q3 2022[1][8] - Adjusted net income for Q3 2023 was RMB71.9 million (US$9.9 million), up 179.9% year-over-year from RMB25.7 million in Q3 2022[1][8] - Net revenues for the three months ended September 30, 2023, were RMB 1,359,189, a decrease of 24.5% compared to RMB 1,798,333 for the same period in 2022[25] - Gross profit for the three months ended September 30, 2023, was RMB 192,418, reflecting a gross margin of 14.2%[25] - The company reported a net income of RMB 76,377 for the three months ended September 30, 2023, compared to a net loss of RMB 6,643 for the same period in 2022[25] - The company reported a net income of RMB 76,377 million for the three months ended September 30, 2023, compared to a net loss of RMB 6,643 million in the same period last year, representing a significant turnaround[28] User Metrics - Average mobile MAUs in Q3 2023 were 51.7 million, down from 57.1 million in the same period of 2022[1][2] - Quarterly average paying users decreased to 3.9 million in Q3 2023 from 5.6 million in Q3 2022[1][2] Revenue Breakdown - Livestreaming revenues fell by 32.5% to RMB1,151.0 million (US$157.8 million) in Q3 2023, primarily due to a soft macroeconomic environment[1][4] - Advertising and other revenues increased by 123.2% to RMB208.2 million (US$28.5 million) in Q3 2023, driven by innovative business growth[1][4] Cost Management - Cost of revenues decreased by 24.6% to RMB1,166.8 million (US$159.9 million) in Q3 2023, reflecting effective cost management[1][5] - Research and development expenses for the three months ended September 30, 2023, were RMB 74,510, a decrease from RMB 84,371 in the same period of 2022[25] Cash and Assets - Cash and cash equivalents as of September 30, 2023, were RMB7,139.4 million (US$978.5 million), up from RMB6,808.8 million at the end of 2022[1][8] - Total assets increased from RMB 8,145,366 as of December 31, 2022, to RMB 8,396,443 as of September 30, 2023, representing a growth of 3.1%[21] - Cash and cash equivalents increased from RMB 4,041,603 as of December 31, 2022, to RMB 4,209,335 as of September 30, 2023[21] - The company’s total shareholders' equity increased to RMB 6,832,042 as of September 30, 2023, from RMB 6,560,559 as of December 31, 2022[23] Liabilities and Deficits - Total current liabilities remained stable at RMB 1,558,664 as of September 30, 2023, compared to RMB 1,584,806 as of December 31, 2022[21] - The company’s accumulated deficit decreased from RMB (3,520,525) as of December 31, 2022, to RMB (3,422,782) as of September 30, 2023[23] Impairments and Gains - The company experienced an impairment loss of investments amounting to RMB 53,554 million for the three months ended September 30, 2023, compared to RMB 32,298 million in the same period last year[28] - The company recorded a gain on disposal of investment of RMB 5,132 million for the three months ended September 30, 2023, compared to no such gain in the previous quarter[28] - The share of income (loss) in equity method investments for the three months ended September 30, 2023, was a loss of RMB 3,035 million, compared to a gain of RMB 977 million in the previous quarter[28] Adjusted Metrics - Adjusted operating loss for the three months ended September 30, 2023, was RMB 8,810 million, slightly worse than the RMB 7,514 million loss reported for the previous quarter[28] - Basic adjusted net loss income per ordinary share for the three months ended September 30, 2023, was RMB 2.25, an increase from RMB 1.92 in the previous quarter[28] - The weighted average number of ordinary shares used in calculating adjusted net loss income per ordinary share was 31,977,664 for the three months ended September 30, 2023, consistent with the previous quarter[28] - The weighted average number of ordinary shares used in calculating net income per ordinary share was 31,977,664 for the three months ended September 30, 2023[25] Overall Revenue - The company’s total revenue for the nine months ended September 30, 2023, was RMB 151,073 million, a significant increase from RMB 76,123 million in the same period last year[28]