DouYu(US:DOYU)2024-06-05 13:38Financial 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]