DouYu International (DOYU) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 declined 21.8% year-over-year to RMB 1.06 billion, reflecting macroeconomic pressures and a drop in livestreaming revenues.

• Gross profit fell to RMB 60.8 million from RMB 192.4 million year-over-year, with gross margin narrowing to 5.7% from 14.2%.

• Net income was RMB 3.4 million, down from RMB 76.4 million in Q3 2023; adjusted net loss was RMB 39.8 million.

• Mobile MAUs were 42.1 million, down 18.6% year-over-year, and paying users decreased to 3.4 million.

• Management focused on cost controls, revenue diversification, and investment in new business lines to support long-term growth.

Financial highlights

• Livestreaming revenues declined 34.7% year-over-year to RMB 752.1 million.

• Innovative business, advertising, and other revenues rose 49.4% year-over-year to RMB 311 million, contributing 29.3% of total revenue.

• Cost of revenues decreased by 14.1% year-over-year; bandwidth costs dropped 32%.

• Operating expenses declined 23% year-over-year, with R&D expenses down 42%.

• Loss from operations widened to RMB 94.2 million from RMB 8.8 million year-over-year.

Outlook and guidance

• Plans to replicate successful game prop promotion models across more gaming content scenarios.

• Focused on balancing traditional and new business initiatives, strengthening the community ecosystem, and driving long-term growth.

• Committed to navigating macroeconomic challenges and driving growth through new revenue streams and cost efficiencies.

• Aims to support sustainable platform development and deliver enduring stakeholder value.