2024-05-23 10:04Financial Performance - Total net revenue reached RMB 5.665 billion (USD 785 million), an increase of 12% year-over-year[6] - Advertising revenue was RMB 1.669 billion (USD 231 million), up 31% year-over-year[6] - Value-added services revenue amounted to RMB 2.529 billion (USD 350 million), a 17% increase year-over-year[6] - Gross profit was RMB 1.605 billion (USD 222 million), representing a 45% year-over-year increase, with a gross margin of 28.3%, up from 21.8% in the same period last year[6] - Net loss was RMB 765 million (USD 106 million), compared to a net loss of RMB 630 million in the same period last year[6] - Adjusted net loss narrowed by 56% to RMB 456 million (USD 63.1 million) year-over-year[6] - Operating cash flow for Q1 2024 was RMB 638 million (USD 88.3 million), compared to an outflow of RMB 630 million in the same period last year[6] - The adjusted operating loss narrowed by 52% year-over-year to RMB 512 million (USD 70.9 million)[9] - The net loss for the three months ended March 31, 2024, was RMB 764,631 thousand, an improvement from a net loss of RMB 1,296,690 thousand for the same period in 2023[21] - Adjusted operating loss for the three months ended March 31, 2024, was RMB 512,234 thousand, compared to RMB 1,065,776 thousand for the same period in 2023, indicating a reduction of approximately 52.1%[21] User Engagement - Daily active users (DAUs) reached 102.4 million, a 9% increase year-over-year[6] - Monthly active users (MAUs) hit a record high of 341.5 million, up 8% year-over-year[6] - Average daily usage time per user reached 105 minutes, marking a historical high[6] Revenue Breakdown - Mobile games revenue decreased by 13% year-over-year to RMB 983 million (USD 136 million), primarily due to declining revenue from several older games[8] - Value-added services revenue reached RMB 2.529 billion (USD 350 million), up 17% year-over-year, driven by growth in live streaming and value-added services[8] - Advertising revenue increased by 31% year-over-year to RMB 1.669 billion (USD 231 million), attributed to improved advertising product optimization and efficiency[8] Operating Expenses and Cash Flow - Operating expenses totaled RMB 2.424 billion (USD 336 million), a decrease of 2% year-over-year[9] - Cash and cash equivalents, along with short-term investments, amounted to RMB 12.922 billion (USD 1.790 billion) as of March 31, 2024[9] - The total current assets increased to RMB 18,727,039 thousand as of March 31, 2024, compared to RMB 16,127,496 thousand as of December 31, 2023, reflecting a growth of about 16.2%[19] - The total liabilities increased to RMB 18,754,800 thousand as of March 31, 2024, from RMB 16,342,539 thousand as of December 31, 2023, marking an increase of about 14.8%[19] - The total assets rose to RMB 33,159,067 thousand as of March 31, 2024, compared to RMB 30,249,258 thousand as of December 31, 2023, representing an increase of approximately 9.9%[19] Shareholder Information - The company repurchased convertible preferred notes totaling USD 429 million (RMB 3.046 billion) in March 2024[10] - Basic net loss per share for the quarter was RMB 1.80, an improvement from RMB 3.13 in the previous quarter[17] - The weighted average number of ordinary shares outstanding for the quarter was 415,274,340, slightly increasing from 414,793,013 in the previous quarter[17] - The weighted average number of ordinary shares (basic) for the three months ended March 31, 2024, was 415,274,340, slightly increasing from 410,564,084 in the same period of 2023[21] Future Outlook - The company plans to hold an earnings conference call on May 23, 2024, to discuss Q1 2024 results[11]