DouYu's Q1 Performance Falters: CEO Highlights Soft Market Challenges

DouYu International Holdings Limited (NASDAQ: DOYU) reported a fiscal first-quarter 2024 revenue decline of 29.9% to $144 million year-on-year, missing the analyst consensus estimate of $184 million.

The Chinese game-centric live streaming platform’s adjusted earnings per ADS loss of $(0.37) compared to $1.10 Y/Y. The stock price declined after the results.

Segments: DouYu’s Livestreaming revenues decreased by 41.5% Y/Y to $110.9 million due to the soft macroeconomic environment.

Advertising and other revenues increased by 109.3% Y/Y to $33.1 million, primarily attributable to the increase in other revenues contributed by other innovative business.

Gross margin declined from 11.9% to 10.5% Y/Y, attributable to decreased livestreaming revenues.

DouYu held $936.6 million in cash and equivalents as of March-end.

Drivers: DouYu’s quarterly average mobile MAUs fell to 45.3 million, down from 50.2 million a year ago. The quarterly average paying user count decreased to 3.4 million from 4.5 million a year ago.

Hao Cao, Vice President of DouYu, commented, “While we shore up our fundamentals, we continue to face revenue pressures from soft macroeconomic conditions and ongoing adjustments to the livestreaming business, as well as operating uncertainties.”

The stock gained over 42% in the last six months. Investors can gain exposure to it via the Invesco Golden Dragon China ETF PGJ and the SPDR S&P China ETF GXC.

Price Action: DOYU shares traded lower by 4.15% at $9.70 premarket at the last check Wednesday.

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