DouYu International (DOYU) Q1 2024 earnings summary

Executive summary

• Q1 2024 net revenues fell 29.9% year-over-year to RMB 1.04 billion, reflecting macroeconomic headwinds and industry challenges.

• Management focused on leveraging key strengths, operational streamlining, content ecosystem enhancement, and revenue diversification.

• Enhanced compliance, enriched gaming services, and improved user experience to foster a vibrant, game-centric content ecosystem.

• Launched cross-platform collaborations and innovative streamer initiatives to boost engagement and monetization.

• Average mobile MAUs dropped to 45.3 million from 50.2 million, and average paying users fell to 3.4 million from 4.5 million year-over-year.

Financial highlights

• Total net revenues for Q1 2024 decreased by 29.9% year-over-year to RMB 1.04 billion.

• Live streaming revenues fell 41.5% year-over-year to RMB 800.9 million; ARPU declined 24.2% to RMB 238.

• Advertising and other revenues rose 109.3% year-over-year to RMB 238.8 million, now 23% of total revenue.

• Cost of revenues dropped 28.8% year-over-year, mainly from lower revenue sharing fees and content costs.

• Gross profit was RMB 109 million, down from RMB 176.5 million year-over-year; gross margin at 10.5%.

Outlook and guidance

• Expect continued deleverage on profit due to revenue base downsizing and macroeconomic uncertainties.

• Will flexibly adjust strategies to ensure solid advancement and long-term growth.

• Anticipate advertising and other revenues to grow year-over-year in 2024, with revenue share exceeding 20%.

• Management plans to further diversify revenue streams, strengthen the business foundation, and expedite share repurchases in Q2 2024.

• Renewed strategic cooperation agreement with Tencent for another three years, maintaining similar terms.