HUYA Tops Q2 Despite Macro Headwinds; Margin Shrinks

HUYA Inc HUYA reported a second-quarter FY22 revenue decline of 23.2% year-on-year to $339.68 million, beating the consensus of $335.88 million.
Segments: HUYA's Live streaming revenues declined by 20.4% Y/Y to $306.34 million due to lower average spending per paying user on Huya Live.
HUYA's advertising and other revenues declined 41.7% Y/Y to $33.33 million due to lower sub-licensing revenues and weak demand for advertising services.
Drivers: Average mobile MAUs of Huya Live rose 7.7% Y/Y to 83.6 million. The total number of paying users of Huya Live was flat Y/Y at 5.6 million.
Margin: HUYA's gross margin contracted 1,000 bps to 9.6% due to lower revenues.
HUYA's adjusted EPS of $0.004 beat the consensus loss of $(0.03).
HUYA held $1.6 billion in cash and equivalents.
CEO Rongjie Dong said, "While the turbulence in the macro and regulatory environment has decelerated our monetization in the short term, we remain confident in the broad-based strength of our solid business foundation that underpins our ability to satisfy our users' core needs."
Price Action: HUYA's shares traded lower by 1.38% at $3.57 in the premarket on the last check Tuesday.

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