DouYu Triumphs Q1 Consensus

China's game-centric live streaming platform DouYu International Holdings Limited (NASDAQ: DOYU) reported a first-quarter FY23 revenue decline of 17.4% to $216 million year-on-year, beating the consensus of $200.2 million.
Segments: DouYu's Livestreaming revenues decreased by 20.7% Y/Y to $199.3 million due to prudent operating strategies in anticipation of a tightening regulatory environment.
Advertising and other revenues increased by 66.6% Y/Y to $16.6 million, primarily attributable to the increase in other revenues contributed by game-specific membership services.
Gross margin declined by 170 bps to 11.9% due to the revenue decline.
Adjusted EPS per ADS of $0.01 beat the consensus of $0.00.
DouYu held $960.6 million in cash and equivalents.
Drivers: DouYu's quarterly average mobile MAUs fell 8.9% Y/Y to 50.2 million. The quarterly average paying user count decreased 29.7% Y/Y to 4.5 million.
Price Action: DOYU shares traded higher by 3% at $1.03 premarket on the last check Thursday.

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