DouYu Q2 Earnings: Misses Revenue Estimates, Livestreaming Struggles & More

DouYu International Holdings Limited (NASDAQ: DOYU) reported a fiscal second-quarter revenue decline of 25.9% to $142.01 million year-on-year, missing the analyst consensus estimate of $186.96 million.

The Chinese game-centric live streaming platform's adjusted earnings per ADS loss of $(0.20) compared to $0.30 Y/Y.

Segments: DouYu's Livestreaming revenues decreased by 37.2% Y/Y to $108.7 million as the soft macroeconomic environment prompted product discounting and reduced promotional events.

Innovative business, advertising, and other revenues (formerly known as advertising and other revenues) increased by 80.7% Y/Y to $33.3 million, primarily attributable to the increase in other revenues contributed by other innovative businesses like voice-based social networking services.

Gross margin declined from 13.6% to 8.2% Y/Y, attributable to product discounting. DouYu held $902.9 million in cash and equivalents as of June 30, 2024.

Drivers: DouYu's quarterly average mobile MAUs fell to 44.1 million, down from 50.3 million a year ago. The quarterly average paying user count decreased to 3.4 million from 4.0 million a year ago.

In July, DouYu declared a special cash dividend of $9.76 per share to holders of record as of the close of business on August 21, 2024.

Price Action: DOYU stock is down 3.17% at $8.55 premarket at the last check Thursday.