DouYu International (DOYU) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenues fell 25.9% year-over-year to RMB 1.03 billion, with gross profit down to RMB 84.2 million and a net loss of RMB 49.2 million compared to net income last year.

• Revenue from innovative business, advertising, and others rose 80.7% year-over-year to RMB 242 million, now 23.4% of total revenue.

• Average mobile MAUs declined to 44.1 million, and average paying users dropped to 3.4 million year-over-year.

• Management focused on enriching the content ecosystem, commercial diversification, and long-term sustainable growth amid macroeconomic and industry challenges.

• User attrition mainly affected low-frequency users, while core user engagement and activity remained stable.

Financial highlights

• Livestreaming revenues decreased 37.2% year-over-year to RMB 790.1 million, mainly due to a softer macro environment and reduced promotional activities.

• Innovative business, advertising, and other revenues increased 80.7% year-over-year to RMB 242 million.

• Gross profit was RMB 84.2 million, down from RMB 188.9 million year-over-year; gross margin fell to 8.2% from 13.6%.

• Net loss was RMB 49.2 million, compared to net income of RMB 6.8 million in Q2 2023; adjusted net loss was RMB 45.5 million.

• Cost of revenues decreased 21.2% year-over-year to RMB 947.8 million.

Outlook and guidance

• Management expects continued pressure on gross margin and profitability due to macroeconomic headwinds and lower cash balances post-dividend.

• Innovative business, advertising, and other revenue expected to exceed 20% of total net revenue in 2024.

• Focus remains on revenue diversification, cost control, and operational efficiency to support long-term growth.

• Management will continue to adapt operating strategies to evolving macroeconomic and industry shifts, focusing on optimizing the content ecosystem and exploring commercial diversification.