DouYu's Q4 2024: Diverging Views on Revenue Strategies, Operational Focus, and Macroeconomic Pressures

These are the key contradictions discussed in DouYu International Holdings Limited's latest 2024Q4 earnings call, specifically including: Revenue Diversification Strategies, Strategic Focus and Business Operations, and Macroeconomic Impact on Consumer Spending:



Revenue Diversification and Innovative Business Growth:
- In 2024, DouYu's revenue from innovative business, advertising, and others increased by 63.6% year-over-year, accounting for 28% of total revenue.
- This growth was primarily driven by increases in revenue from the voice-based social networking business and game membership services, partially offsetting declines in livestreaming revenues due to macroeconomic headwinds and intensified competition.

Cost Optimization and Efficiency Improvements:
- DouYu implemented a 19% year-over-year reduction in content costs and a 17% year-over-year decrease in sales and marketing, research and development, and general and administrative expenses in 2024.
- These improvements were achieved by proactively cutting back on inefficient business operations, fine-tuning compensation structures for streamers, and streamlining business flow and staff structures to improve operational efficiency and cost management.

Shareholder Returns and Financial Resilience:
- The company declared two special cash dividends totaling US$600 million in 2024, demonstrating confidence in long-term growth potential and commitment to rewarding shareholders.
- These distributions were supported by the company's historical cash surplus and future plans, reflecting financial stability and strategic focus on shareholder value.

Mobile MAUs and User Engagement Trends:
- DouYu's mobile MAUs in Q4 2024 were 44.5 million, with a 5.9% quarter-over-quarter increase and a 13.9% year-over-year decrease.
- The quarter-over-quarter growth was driven by stronger content partnerships, mainstream international official tournaments, and more frequent game prop promotions, while the year-over-year decline was a result of evolving gaming video content industry dynamics.

Cost Structure and Operational Efficiency:
- DouYu aims to improve its cost structure and operational efficiency in 2025 by focusing on revenue resilience, cost reduction, and efficiency improvements, particularly in relation to content costs and fixed cost components.
- The company is implementing flexible streamer contracting models, optimizing AI initiatives, and refining workforce streamlining to enhance operational productivity and reduce costs.