DouYu International Holdings Limited (DOYU) Q3 Earnings call transcript Nov 20, 2024
1min read DouYu International Holdings Limited held its third quarter 2024 earnings call, revealing a strategic focus on maximizing core competitive edge and diversifying revenue streams amidst market dynamics and economic challenges. The call was led by Lingling Kong, IR Director, and was joined by executives Hao Cao, Vice President of Finance, and Simin Ren, Vice President from Interim Management Committee.
Financial Overview and Strategic Initiatives
In the third quarter, DouYu stayed closely aligned with market dynamics and proactively adopted operational strategies to solidify fundamentals and invest in new initiatives. The mobile MAUs saw a decrease of 18.6% year-over-year, attributed to increased competition from short video platforms and user attrition from low-frequency users. However, the engagement patterns of core users remained relatively stable, with viewing hours and activity levels remaining strong. The company's commercialization ventures also drew in fresh users and reengaged active ones, fostering a more vibrant gaming ecosystem.
Despite a challenging macroeconomic environment, DouYu's innovative business segment continued to show growth, with a 49.4% increase in revenues year-over-year. This growth was driven by increased revenues from the voice-based social networking service and game membership service. The company's cost of revenues decreased by 14.1% year-over-year, thanks to reduced revenue sharing fees and content costs.
Strategic Adaptations and Operational Efficiencies
DouYu's strategic focus on enhancing operational efficiency was evident in its refined business model and resource optimization efforts. The company has been actively expanding its gaming event content portfolio, broadcasting official tournaments and self-produced content to enrich the professional gaming content lineup. It has also been optimizing its streamer management strategy, focusing on improving the ROI for streamers through live streaming content quality and commercialization capabilities.
The company has also been working on cost-saving strategies, including reducing staff-related expenses and streamlining operations. These efforts have led to a 23% year-over-year decline in total operating expenses.
Future Outlook and Growth Opportunities
Looking ahead, DouYu remains committed to navigating macroeconomic challenges and market shifts with resilience and agility. The company will continue to use its new revenue streams to drive growth and sharpen its focus on cost efficiencies to mitigate financial pressure. It will also continue to explore new growth opportunities, leveraging its deep partnerships with game developers to diversify its revenue streams and deliver high-quality content to users.
In conclusion, DouYu's third quarter earnings call highlighted the company's strategic adaptations and operational efficiencies, underscoring its commitment to maximizing core competitive edge and diversifying revenue streams. Despite facing challenges, DouYu remains optimistic about its future growth prospects and is well-positioned to capitalize on the shifting dynamics of the live streaming and gaming industries.