HUYA (HUYA) Q2 2024 earnings summary

Executive summary

• Total net revenues for Q2 2024 were RMB 1.54 billion, up 2.5% sequentially but down from RMB 1.84 billion year-over-year, driven by rapid expansion in game-related services, advertising, and other businesses.

• Game-related services, advertising, and other revenues reached RMB 308.5 million, up 152.7% year-over-year and 26.6% quarter-over-quarter, contributing 20% of total net revenues for the first time.

• Non-GAAP net income was RMB 97 million, with a non-GAAP net margin of 6.3%.

• Average mobile MAUs reached 83.5 million, up from 82.9 million year-over-year, driven by self-organized esports events and new game launches.

• Strategic focus on business transformation, content and platform upgrades, and technology innovation supported positive outcomes.

Financial highlights

• Total net revenues: RMB 1.54 billion, down from RMB 1.84 billion year-over-year.

• Live streaming revenues: RMB 1.23 billion, down from RMB 1.72 billion year-over-year.

• Game-related services, advertising, and other revenues: RMB 309 million, up from RMB 122 million year-over-year.

• Cost of revenues decreased 14.4% year-over-year to RMB 1.33 billion.

• Gross profit: RMB 215 million; gross margin: 13.9%. Non-GAAP gross margin: 14.2%.

• Operating loss: RMB 26 million; non-GAAP operating loss: RMB 3 million (margin -0.2%, near breakeven).

• Net income attributable: RMB 30 million; non-GAAP net income: RMB 97 million.

• Diluted net income per ADS: RMB 0.13; non-GAAP diluted net income per ADS: RMB 0.42.

Outlook and guidance

• Expectation for Q3: double-digit sequential growth in game-related services, advertising, and other revenues.

• Full-year gross profit margin and profit level expected to increase compared to 2023.

• Management expects to continue expanding in the game industry through content, technology, and product innovation, despite macro and industry uncertainties.

• Focus remains on operational efficiency and platform ecology upgrades to drive long-term growth.