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.

• Focused on fostering a healthy, game-centric content ecosystem through top-tier streamers, premium content, and deeper cooperation with game developers.

• Rolled out innovative monetization strategies, including game prop sales and membership programs, to diversify revenue streams.

• Average mobile MAUs declined to 44.1 million from 50.3 million, and average paying users dropped to 3.4 million from 4.0 million year-over-year.

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

Financial highlights

• Total net revenues fell 25.9% year-over-year to RMB 1.03 billion in Q2 2024.

• Live streaming revenues dropped 37.2% year-over-year to RMB 790.1 million.

• Innovative business, advertising, and other revenues surged 80.7% year-over-year to RMB 242 million, now 23.4% of total revenue.

• Gross profit was RMB 84.2 million, down from RMB 188.9 million a year ago; gross margin declined to 8.2% from 13.6%.

• Adjusted net loss was RMB 45.5 million, compared to adjusted net income of RMB 61.4 million a year ago.

Outlook and guidance

• Management expects continued margin pressure and does not anticipate net level breakeven for 2024.

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

• Plans to expand game prop sales and deepen collaborations with game developers to drive future growth.

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