DouYu International Holdings Limited Showcases Q4 2024 Results

DouYu International Holdings Limited Unveils Q4 and Full Year 2024 Results

DouYu International Holdings Limited (Nasdaq: DOYU) has shared its unaudited financial results for the fourth quarter and the complete year of 2024. As a leading game-centric live streaming platform, DouYu continues to innovate within the rapidly evolving eSports landscape.

Fourth Quarter 2024 Financial Highlights

The total net revenues for the fourth quarter of 2024 reached RMB1,136.0 million (approximately US$155.6 million), showcasing a decrease compared with RMB1,296.0 million during the same period in 2023. This decline is attributed primarily to the ongoing macroeconomic challenges affecting user engagement and spending.

Gross and Net Profit Overview

In Q4 2024, the gross profit stood at RMB69.8 million (about US$9.6 million), significantly lower than the RMB126.2 million reported in Q4 2023. The net loss amounted to RMB163.7 million (US$22.4 million), widening from the net loss of RMB62.2 million year-over-year.

User Engagement Metrics

DouYu has seen a decline in user engagement, reporting an average of 44.5 million mobile Monthly Active Users (MAUs), a drop from 51.7 million in the prior year. Additionally, the number of quarterly average paying users decreased to 3.3 million from 3.7 million.

Full Year 2024 Performance Insights

The entire year of 2024 reflected total net revenues of RMB4,270.8 million (US$585.1 million), down from RMB5,530.4 million in 2023. This decline underlines the challenges faced by DouYu in the competitive live streaming space. Nevertheless, the company reported strides in diversifying its revenue streams through innovative business ventures.

Annual Gross Margin and Net Income

For the full year, the gross profit was recorded at RMB323.8 million (approximately US$44.4 million), compared to RMB684.0 million in 2023. DouYu also experienced a net loss of RMB297.4 million (around US$40.8 million), diverging from a net income of RMB35.5 million from the previous year. Adjusted net loss (non-GAAP) was reported at RMB239.9 million (US$32.9 million).

Strategic Responses to Market Dynamics

Ms. Simin Ren, Co-CEO, emphasized the company’s efforts to stabilize its operations amidst financial pressures. DouYu plans to optimize its resource allocation and diversify income sources while reducing inefficient investments. She stated that maximizing operational efficiency with AI technology remains a key focus going forward.

Revenue Diversification and Future Initiatives

According to Mr. Hao Cao, Vice President, revenue from innovative business segments including advertising grew by an impressive 63.6%, contributing RMB1.2 billion (28% of total revenues). Despite current profitability challenges, the focus on strategic cost optimizations aims to narrow the overall net loss in 2025. DouYu recently declared a special cash dividend of US$300 million, reinforcing its commitment to shareholder value.

Income and Investment Considerations

DouYu's revenues from livestreaming have faced difficulties, particularly in user payments, which affect the overall revenue structure. However, the integrated approach to fostering its gaming-centric content ecosystem remains pivotal for long-term success. The company continuously enhances its technology to improve user experiences and community engagement.

Frequently Asked Questions

1. What is DouYu's primary business focus?

DouYu primarily operates a game-centric live streaming platform, emphasizing eSports and interactive entertainment.

2. How did DouYu's Q4 2024 revenue compare to Q4 2023?

DouYu reported a revenue of RMB1,136.0 million in Q4 2024, a decrease from RMB1,296.0 million in Q4 2023.

3. What initiatives is DouYu focusing on for growth?

The company is prioritizing revenue diversification and operational efficiency through strategic resource allocation and the use of technology.

4. What was DouYu's net loss for the full year of 2024?

DouYu's total net loss for 2024 stood at RMB297.4 million, contrasting sharply with net income in the previous year.

5. How does DouYu plan to enhance its user experience?

DouYu aims to improve user experience by integrating advanced technology and increasing community engagement through innovative content offerings.

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