DouYu International (DOYU) Q1 2025 earnings summary

Executive summary

• Total net revenues for Q1 2025 were RMB947.1 million, down 8.9% year-over-year, reflecting strategic cost optimization and macroeconomic softness.

• Gross profit increased 4.1% to RMB113.5 million, with gross margin rising to 12.0% from 10.5% year-over-year.

• Loss from operations narrowed by 84.3% to RMB26.1 million, and net loss decreased by 9.5% to RMB79.6 million year-over-year.

• Adjusted net loss (non-GAAP) reduced by 75.6% to RMB20.9 million, highlighting improved operational efficiency.

• Strategic focus on revenue diversification and cost efficiency drove improved financial resilience and business growth.

Financial highlights

• Livestreaming revenues fell 29.5% year-over-year to RMB564.5 million due to fewer paying users and lower ARPPU.

• Innovative business, advertising, and other revenues surged 60.2% to RMB382.6 million, driven by voice-based social networking and game membership services.

• Cost of revenues decreased by 10.4% to RMB833.5 million, with content and bandwidth costs down 11.1% and 31.6%, respectively.

• Sales and marketing, R&D, and G&A expenses declined 3.5%, 39.5%, and 16.4% year-over-year, respectively.

• Cash and equivalents, restricted cash, and bank deposits totaled RMB2,308.8 million as of March 31, 2025, down from RMB4,467.8 million at year-end due to a US$300 million special dividend.

Outlook and guidance

• Management expects continued execution of cost reduction, efficiency improvement, and loss narrowing strategies to support long-term growth.

• Adjustments in streamer resources and content supply may cause fluctuations in traffic and revenues but are aimed at sustainable development.