HUYA's Q1 2025: Unpacking Key Contradictions in Revenue Growth, Operating Results, and User Strategy
Earnings DecryptTuesday, May 20, 2025 3:12 pm ET
2min read
Game-related services revenue growth, non-GAAP operating results improvement, live streaming revenue trends, advertising revenue trends, and user growth and strategy are the key contradictions discussed in HUYA's latest 2025Q1 earnings call.
Revenue Stabilization and Growth:
- reported total net revenues of RMB 1.51 billion for Q1 2025, stabilizing year-over-year and growing quarter-over-quarter.
- This growth was primarily driven by a 52.1% year-over-year increase in game-related services, advertising, and other revenue to RMB 370 million.
Game Distribution and In-Game Item Sales:
- Gross proceeds generated through HUYA's game distribution more than doubled year-over-year and increased sequentially.
- The increase was due to proactively engaging with existing games, refining operational strategies, and unlocking the consumption potential of high commercial value user groups.
Advertising Revenue and Initiatives:
- Brand advertising revenue declined year-over-year and quarter-over-quarter due to fewer tournaments and promotions.
- To strengthen the advertising business, upgraded the presentation format for live channels on VR live apps, creating more efficient performance-based advertising scenarios.
Overseas Expansion and Game Commercialization:
- HUYA's overseas game-related services delivered multi-fold sequential revenue growth in Q1, demonstrating promising growth.
- This growth was driven by partnerships with Chinese game companies expanding overseas, and local firms, along with tailored operational activities for each game's characteristics and key events.
AI Integration and Viewer Engagement:
- At the Legend Cup Season 3, HUYA leveraged AI solutions to transform the viewing experience, introducing Hu Xiaoyi, a smart viewing companion for users.
- This initiative generated over 300,000 bullet chat discussions with approximately 17% related to interactive discussions initiated by Hu Xiaoyi, indicating increased viewer engagement and a more immersive experience.
Revenue Stabilization and Growth:
- reported total net revenues of RMB 1.51 billion for Q1 2025, stabilizing year-over-year and growing quarter-over-quarter.
- This growth was primarily driven by a 52.1% year-over-year increase in game-related services, advertising, and other revenue to RMB 370 million.
Game Distribution and In-Game Item Sales:
- Gross proceeds generated through HUYA's game distribution more than doubled year-over-year and increased sequentially.
- The increase was due to proactively engaging with existing games, refining operational strategies, and unlocking the consumption potential of high commercial value user groups.
Advertising Revenue and Initiatives:
- Brand advertising revenue declined year-over-year and quarter-over-quarter due to fewer tournaments and promotions.
- To strengthen the advertising business, upgraded the presentation format for live channels on VR live apps, creating more efficient performance-based advertising scenarios.
Overseas Expansion and Game Commercialization:
- HUYA's overseas game-related services delivered multi-fold sequential revenue growth in Q1, demonstrating promising growth.
- This growth was driven by partnerships with Chinese game companies expanding overseas, and local firms, along with tailored operational activities for each game's characteristics and key events.
AI Integration and Viewer Engagement:
- At the Legend Cup Season 3, HUYA leveraged AI solutions to transform the viewing experience, introducing Hu Xiaoyi, a smart viewing companion for users.
- This initiative generated over 300,000 bullet chat discussions with approximately 17% related to interactive discussions initiated by Hu Xiaoyi, indicating increased viewer engagement and a more immersive experience.
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