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• Total Net Revenues: RMB1.06 billion, a decrease of 21.8% year-over-year, but a 3% increase quarter-over-quarter.

• Live Streaming Revenues: RMB0.75 billion, down 34.7% year-over-year.

• Innovative Business, Advertising, and Other Revenues: RMB311 million, up 49.4% year-over-year, contributing 29.3% of total revenue.

• Cost of Revenues: RMB1 billion, a decrease of 14.1% year-over-year.

• Gross Profit: RMB60.8 million, down from RMB192.4 million year-over-year.

• Gross Margin: 5.7%, compared to 14.2% in the same period of 2023.

• Operating Expenses: Decreased by 23% year-over-year.

• Net Income: RMB3.4 million, compared to RMB76.4 million year-over-year.

• Adjusted Net Loss: RMB39.8 million, compared to an adjusted net income of RMB71.9 million year-over-year.

• Cash and Cash Equivalents: RMB4.38 billion as of September 30, 2024.

• Share Repurchase Program: Completed with USD20 million in ADS repurchased.

• Warning! GuruFocus has detected 3 Warning Signs with DOYU.

Release Date: November 20, 2024

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

Positive Points

• DouYu International Holdings Ltd (NASDAQ:DOYU) achieved a 3% quarter-over-quarter increase in total net revenues, marking the first sequential growth in eight consecutive quarters.

• The company successfully expanded its innovative business segment, with advertising and other revenues increasing by 49.4% year-over-year.

• DouYu International Holdings Ltd (NASDAQ:DOYU) broadcasted nearly 30 large-scale official tournaments, enhancing user engagement and platform visibility.

• The company implemented a successful summer recruitment campaign for streamers, increasing the daily average number of streams and enhancing streamer retention rates.

• DouYu International Holdings Ltd (NASDAQ:DOYU) introduced diverse game prop commercialization models, establishing the platform as a preferred choice for game prop purchases.

Negative Points

• Total net revenues decreased by 21.8% year-over-year, primarily due to a decline in live streaming revenues.

• Mobile MAUs decreased by 18.6% year-over-year, impacted by increased competition from short video platforms.

• The number of paying users declined year-over-year due to macroeconomic challenges and reduced promotional activities.

• Gross profit decreased significantly, with a gross margin of 5.7% compared to 14.2% in the same period of 2023.

• Net income for the third quarter of 2024 was RMB3.4 million, a sharp decline from RMB76.4 million in the same period of 2023.

Q & A Highlights

Q: My question is mainly regarding your live streaming business. How should we look at the future growth of the live streaming business and any strategic changes here? A: As discussed, we faced challenges from market competition and a softer macroeconomic environment, impacting traffic and revenue. Our mobile MAU decreased due to competition from short video platforms. To tackle these, we adjusted user acquisition strategies, focusing on retaining core users and improving user operational efficiency. We also enhanced content offerings and diversified monetization channels. Our strategy includes launching diverse marketing products related to game props, leveraging deep partnerships with game developers.