DouYu(DOYU)2024-09-12 14:15Financial Data and Key Metrics - Total net revenues decreased by 25.9% YoY to RMB1.03 billion in Q2 2024, with livestreaming revenues down 37.2% YoY to RMB0.79 billion [20] - Quarterly ARPU declined by 25.5% YoY to RMB243, while the total number of paying users decreased to 3.4 million [14][20] - Gross profit was RMB84.2 million, down from RMB188.9 million YoY, with gross margin decreasing to 8.2% from 13.6% [23] - Net loss for Q2 2024 was RMB49.2 million, compared to a net income of RMB6.8 million in the same period last year [24] - Cash and cash equivalents stood at RMB6.56 billion as of June 30, 2024, down from RMB6.86 billion at the end of 2023 [25] Business Line Data and Key Metrics - Mobile MAUs decreased by 12.3% YoY to 44.1 million, primarily due to competition from short video platforms [7] - The company broadcasted nearly 30 large-scale official tournaments and over 50 self-produced eSports tournaments during the quarter [8][9] - Streamer recruitment initiatives were expanded, with a focus on improving streaming incentives and content depth [12][13] - The company launched targeted self-produced events tailored to different gaming audiences, such as the Douyu Heroes Cup Season 5 and the Valorant Cup [10] Market Data and Key Metrics - The company faced intense competition from short video platforms, which impacted user acquisition and retention [7][29] - Macroeconomic challenges reduced consumer willingness to spend, affecting traditional livestreaming revenues [20][31] - The company focused on deepening commercialization collaborations with game developers, particularly in games like League of Legends: Wild Rift and Peacekeeper Elite [16][51] Company Strategy and Industry Competition - The company prioritized fostering a healthy, game-centric content ecosystem by leveraging top-tier streamers and premium content [6] - Revenue diversification efforts included introducing budget-friendly paid products and expanding innovative business revenues, which grew by 80.7% YoY to RMB242 million [15][21] - The company aimed to strengthen its competitive edge by optimizing resource allocation, deepening collaborations with stakeholders, and investing in new ventures [18] Management Commentary on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds and intense market competition as key challenges, particularly the impact on user acquisition and revenue [29][31] - The company plans to focus on core users, enhance content innovation, and diversify revenue streams to navigate short-term challenges and ensure long-term growth [30][32] - Management expressed confidence in the company's ability to adapt to changing market dynamics and maintain a leading position in the game livestreaming industry [39] Other Important Information - The company repurchased US300 million [25] - The company continued to invest in its community ecosystem and new businesses to enhance user experience and platform competitiveness [46] Q&A Session Summary Question: Impact of Macro Challenges on Operations and Financials - Management highlighted intense market competition and macroeconomic headwinds as primary challenges, affecting MAUs and livestreaming revenues [29][31] - The company responded by stabilizing paying users, diversifying revenue streams, and optimizing cost controls [32][33] Question: Stability of Streamers and Future Investments - Streamer assets remained stable, with a focus on refining operations and enhancing streamer incentives [35][37] - The company plans to continue upgrading streaming technologies and support tools to improve streamer experience [38][39] Question: Gross Margin Decline and Full-Year Outlook - The decline in gross margin was primarily due to decreased livestreaming revenues outpacing cost reductions [42] - Management expects continued pressure on profitability due to macroeconomic uncertainties and reduced interest income [43] Question: Cash Balance and Usage Plans - The company had RMB6.56 billion in cash and equivalents as of Q2 2024, with significant expenditures on shareholder returns [45] - Future cash usage will focus on business operations, community ecosystem investments, and new business development [46] Question: Cooperation with Game Developers and Revenue Growth - The company has deepened collaborations with game developers, particularly in game prop sales and membership services [48][49] - Management expects innovative business revenues to account for over 20% of total net revenue in 2024 [52]