DouYu International Holdings Ltd (DOYU) Q4 2024 Earnings Call Highlights: Navigating Revenue ...

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Sat, Mar 15, 2025, 1:01 AM 4 min read

Total Net Revenues: Decreased by 12.3% year-over-year to RMB1.14 billion in Q4 2024.
Live Streaming Revenues: Dropped by 28.4% to RMB0.73 billion in Q4 2024.
Innovative Business, Advertising, and Other Revenues: Increased by 47.2% to RMB405.1 million in Q4 2024.
Cost of Revenues: Decreased by 8.8% to RMB1.07 billion in Q4 2024.
Gross Profit: RMB69.8 million in Q4 2024, down from RMB126.2 million in Q4 2023.
Gross Margin: 6.1% in Q4 2024, compared to 9.7% in Q4 2023.
Sales and Marketing Expenses: Decreased by 5.5% to RMB79.3 million in Q4 2024.
Research and Development Expenses: Reduced by 42.2% to RMB34.2 million in Q4 2024.
General and Administrative Expenses: Decreased by 10.4% to RMB71.7 million in Q4 2024.
Net Loss: RMB163.7 million in Q4 2024, compared to RMB62.2 million in Q4 2023.
Adjusted Net Loss: RMB104.3 million in Q4 2024, compared to RMB5 million in Q4 2023.
Cash and Cash Equivalents: RMB4.47 billion as of December 31, 2024.
Mobile MAUs: 44.5 million in Q4 2024, increasing 5.9% quarter-over-quarter.
Paying Users: 3.3 million in Q4 2024, with quarterly ARPPU of RMB246.

Warning! GuruFocus has detected 3 Warning Signs with DOYU.

Release Date: March 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

DouYu International Holdings Ltd (NASDAQ:DOYU) successfully diversified its revenue streams, with innovative business, advertising, and other revenues increasing by 63.6% year-over-year.
The company declared two special cash dividends totaling USD600 million, reflecting a commitment to shareholder returns.
DouYu International Holdings Ltd (NASDAQ:DOYU) achieved a 17% year-over-year decrease in sales and marketing, research and development, and general and administrative expenses.
The company reported a quarter-over-quarter increase in mobile MAUs by 5.9%, indicating the effectiveness of its content-driven growth strategy.
DouYu International Holdings Ltd (NASDAQ:DOYU) is focusing on cost reduction and efficiency improvement for 2025, aiming to narrow losses and improve financial resilience.

Negative Points

DouYu International Holdings Ltd (NASDAQ:DOYU) experienced a 12.3% year-over-year decrease in total net revenues for the fourth quarter, primarily due to a decline in live streaming revenues.
The company reported a year-over-year decline in both the total number of paying users and quarterly ARPPU, highlighting challenges in user spending patterns.
Gross profit and gross margin decreased in the fourth quarter of 2024, driven by a faster decline in live streaming revenues relative to the cost of revenues.
DouYu International Holdings Ltd (NASDAQ:DOYU) faced increased net loss in the fourth quarter of 2024 compared to the same period in 2023.
The company anticipates potential short-term declines in user base and revenue due to strategic adjustments in cost structure and content procurement.

Q & A Highlights

Q: What are the new business growth drivers for DouYu in 2025, and what are the expectations for the OD and game props businesses? A: Simin Ren, Co-Chief Executive Officer, explained that in 2024, revenue from innovative business, advertising, and others increased by 36.6% year-over-year, accounting for 28% of total revenue. The voice-based social networking business and game membership program are key drivers. In 2025, DouYu plans to allocate more resources to these areas, expecting innovative business revenue to contribute approximately 35% of total revenue.

Q: What is DouYu's plan for the future use of cash? A: Hao Cao, Vice President, stated that after the dividend distribution in February 2025, DouYu had RMB2.24 billion in cash reserves. The company aims to reduce net losses significantly in 2025 and believes it has sufficient cash to manage business fluctuations and support business initiatives.

Q: How should we interpret DouYu's long-term development strategy following recent strategic adjustments and dividend payouts? A: Mingming Su, Chief Strategy Officer, emphasized that DouYu's strategy is about reallocating resources from inefficient initiatives to high-value business segments. The company aims to strengthen its core content advantages, improve margins, and enhance revenue mix by growing innovative businesses. DouYu remains committed to fostering a vibrant content ecosystem and optimizing diverse content.

Q: What is the impact of tournament procurement and streamer strategic adjustments on DouYu's platform? A: Simin Ren explained that DouYu is applying a flexible approach to acquiring copyright content, focusing on cost-effective tournaments. The company expects a significant decrease in copyright costs in 2025. Streamer resource adjustments aim to optimize business efficiency, reduce costs, and improve content ROI. While these changes may temporarily affect traffic and revenue, they are crucial for long-term growth.

Q: Can you comment on the sequential increase in G&A expenses and the outlook for 2025 operating profit? A: Hao Cao noted that the increase in G&A expenses was mainly due to workforce optimization costs. Despite potential revenue growth pressure, DouYu is committed to optimizing cost structure and controlling expenses to improve gross margin and business efficiency. The company expects some improvement in operating losses for 2025 compared to the previous year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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