DouYu(DOYU) - 2024 Q3 - Quarterly Report

Financial Performance - Total net revenues for Q3 2024 were RMB1,063.1 million (US $151.5 million), a decrease of 21.8% compared to RMB1,359.2 million in Q3 2023[6] - Livestreaming revenues decreased by 34.7% to RMB752.1 million (US$ 107.2 million) from RMB1,151.0 million in the same period of 2023[7] - Revenue from innovative business, advertising, and others increased by 49.4% to RMB311 million (US $44.3 million), accounting for 29.3% of total revenue, up from 15.3% in Q3 2023[8] - Total net revenues for the nine months ended September 30, 2024, were RMB 3,134,826, a decrease of 26.0% compared to RMB 4,234,443 for the same period in 2023[32] User Metrics - Average mobile MAUs in Q3 2024 were 42.1 million, down from 51.7 million in Q3 2023[5] - The number of quarterly average paying users was 3.4 million, compared to 3.9 million in the same period of 2023[5] Profitability and Loss - Adjusted net loss for Q3 2024 was RMB39.8 million (US$ 5.7 million), compared to adjusted net income of RMB71.9 million in Q3 2023[16] - Gross profit in Q3 2024 was RMB60.8 million (US $8.7 million), down from RMB192.4 million in Q3 2023, with a gross margin of 5.7% compared to 14.2%[12] - The company reported a net loss of RMB 49,169 for the three months ended September 30, 2024, compared to a net income of RMB 76,377 for the same period in 2023[32] - Basic net income per ordinary share for the three months ended September 30, 2024, was RMB 0.11, compared to RMB 2.39 for the same period in 2023[32] - The adjusted net income for the nine months ended September 30, 2023, was RMB 151,073, while for the same period in 2024, it was a net loss of RMB 171,035[35] Cash and Assets - Cash and cash equivalents as of September 30, 2024, were RMB4,383.6 million (US$ 624.7 million), down from RMB6,855.5 million as of December 31, 2023[18] - Cash and cash equivalents as of December 31, 2023, were RMB 4,440,131, a significant increase from RMB 2,013,065 as of September 30, 2024[30] - Total assets increased to RMB 8,072,103 as of December 31, 2023, compared to RMB 5,506,137 as of September 30, 2024[31] Liabilities and Equity - Total current liabilities rose to RMB 1,376,069 as of December 31, 2023, from RMB 1,213,223 as of September 30, 2024[30] - The company’s total shareholders' equity as of December 31, 2023, was RMB 6,689,333, compared to RMB 4,285,957 as of September 30, 2024[31] - The company’s accumulated deficit as of December 31, 2023, was RMB 3,485,007, compared to RMB 3,618,725 as of September 30, 2024[31] Operational Focus - The company continues to focus on diversifying revenue streams and optimizing operations to enhance financial resilience amid a challenging macroeconomic environment[3] Research and Development - Research and development expenses for the nine months ended September 30, 2024, were RMB 147,526, a decrease of 32.2% from RMB 217,863 for the same period in 2023[32] Share Repurchase - The company repurchased an aggregate of US$20 million of its ADSs under the share repurchase program as of September 30, 2024[19] Impairment and Fair Value Adjustments - The impairment losses and fair value adjustments on investments for the nine months ended September 30, 2023, amounted to RMB 28,161, while for the same period in 2024, it was a loss of RMB 43,299[35]