DouYu Q2: 24.1% Topline Decline, Beats Expectations, Mobile User Base And Paying Users Fall

DouYu International Holdings Limited (NASDAQ: DOYU) reported a second-quarter FY23 revenue decline of 24.1% to $192 million year-on-year, beating the consensus of $183.05 million.

Segments: DouYu's Livestreaming revenues decreased by 28.8% Y/Y to $173.5 million due to the ongoing operational adjustments in the live-streaming business.

Advertising and other revenues increased by 106.5% Y/Y to $18.5 million, primarily attributable to the increase in other revenues contributed by game-specific membership services.

Gross margin declined by 330 bps to 13.6% due to the revenue decline.

Adjusted earnings per ADS of $0.03 beat the consensus of $0.02.

DouYu held $973 million in cash and equivalents.

Drivers: DouYu's quarterly average mobile MAUs fell to 50.3 million, down from 55.7 million a year ago. The quarterly average paying user count decreased to 4.0 million from 6.6 million a year ago.

Mr. Shaojie Chen, Chief Executive Officer of DouYu, commented, "Driven by our regularly updated premium gaming content, diverse operational activities, and revenue-generating product offerings, mobile MAUs in the second quarter were steady with the prior quarter at 50.3 million."

Price Action: DOYU shares traded higher by 0.95% at $1.06 premarket on the last check Monday.