HUYA Beats Revenue Estimates in Q1, Yet Faces Challenges in Game Streaming Sector

HUYA Inc HUYA reported fiscal first-quarter 2024 revenue of $208.31 million, beating the analyst consensus estimate of $206.83 million.

The Chinese game live-streaming platform's adjusted earnings per ADS was $0.05. 

Live streaming revenues declined to 1.26 billion Chinese yuan ($174.6 million) from 1.86 billion Chinese yuan in the prior-year quarter, owing to the soft macro and industry environment and proactive business adjustments.

Meanwhile, game-related services, advertising and other revenues (formerly known as advertising and other revenues) increased by 137.6% Y/Y to $33.7 million, led by game advertising and distribution revenue growth.

The average mobile MAUs of Huya Live for the first quarter of 2024 was 82.6 million, compared with 82.1 million for the same period of 2023.

Paying users on Huya Live increased Q/Q, rising to 4.4 million, reflecting a strong base of high-value gamer users.

The gross margin was 14.7% for the quarter vs. 13.7%, mainly due to lower revenue sharing fees and content costs ratio.

As of March 31, 2024, the company had cash and cash equivalents, short-term and long-term deposits of $1.30 billion.

HUYA stock gained over 36% in the last 12 months. Investors can gain exposure to the stock via Jacob Funds Inc. Jacob Forward ETF JFWD and Global X Video Games & Esports ETF HERO.

Price Action: HUYA shares are up 6% at $4.68 at the last check Monday.