DouYu International Holdings Limited Reports First Quarter 2025 Unaudited Financial Results
- Gross profit increased 4.1% YoY to RMB113.5M with improved gross margin of 12.0%
- Innovative business revenue grew 60.2% YoY to RMB382.6M
- Loss from operations reduced significantly by 84.3% to RMB26.1M
- Adjusted net loss decreased 75.6% to RMB20.9M
- Successful cost optimization with bandwidth costs down 31.6%
- Total net revenues declined 8.9% YoY to RMB947.1M
- Livestreaming revenues decreased 29.5% YoY to RMB564.5M
- Average mobile MAUs declined 8.7% YoY to 41.4M users
- Quarterly average paying users decreased with ARPPU of RMB216
- Cash position decreased significantly due to US$300M special dividend distribution
Insights
DouYu's Q1 shows significant operational loss reduction despite revenue decline, driven by strategic cost cutting and business diversification.
DouYu's Q1 2025 results demonstrate a company in transition, executing a strategic pivot toward revenue diversification and cost optimization. Total revenue declined
The most notable improvement appears in operating efficiency. Loss from operations decreased dramatically by
Gross margin improved to
Cash position declined significantly to
User metrics paint a mixed picture of DouYu's transition. Mobile MAUs declined
The company is clearly executing a strategic shift from traditional livestreaming toward innovative businesses with stronger margins. While this transition period creates revenue headwinds, the substantial improvement in operating metrics suggests the strategy is bearing fruit. The key question is whether DouYu can continue growing its innovative segments fast enough to offset the decline in its traditional livestreaming business.
WUHAN, China, May 20, 2025 /PRNewswire/ -- DouYu International Holdings Limited ("DouYu" or the "Company") (Nasdaq: DOYU), a leading game-centric live streaming platform in
First Quarter 2025 Financial Highlights
- Total net revenues in the first quarter of 2025 were
RMB947.1 million (US ), compared with$130.5 million RMB1,039.7 million in the same period of 2024. - Gross profit in the first quarter of 2025 was
RMB113.5 million (US ), increased by$15.6 million 4.1% fromRMB109.0 million in the same period of 2024. - Loss from operations in the first quarter of 2025 was
RMB26.1 million (US ), reduced by$3.6 million 84.3% fromRMB166.9 million in the same period of 2024. - Net loss in the first quarter of 2025 was
RMB79.6 million (US ), reduced by$11.0 million 9.5% fromRMB88.0 million in the same period of 2024. - Adjusted net loss (non-GAAP)[1] in the first quarter of 2025 was
RMB20.9 million (US ), reduced by$2.9 million 75.6% fromRMB85.7 million in the same period of 2024.
Ms. Simin Ren, Co-Chief Executive Officer of DouYu, commented, "In the first quarter of 2025, we focused on advancing our strategic revenue diversification and cost-efficiency initiatives. The effective execution of these strategies improved our gross margin and significantly narrowed our loss from operations year-over year. We ramped up our commercialization collaborations with game developers and refined the operation and promotion of our voice-based business, driving continued growth momentum in our innovative business. We also initiated staged optimization of our traditional business's cost structure, dynamically adjusting our streamers' resources to better align content supply with the platform's evolving needs. While these adjustments may lead to fluctuations in our platform traffic and revenues period-to-period, we believe they are necessary steps to improving operational efficiency and supporting the Company's healthy, sustainable long-term development and growth."
Mr. Hao Cao, Vice President of DouYu, commented, "In the first quarter, our game-specific membership service and voice-based social networking business delivered a strong performance, driving revenues from our innovative business, advertising and others up
First Quarter 2025 Operational Highlights
- In the first quarter, average mobile MAUs[2] were 41.4 million, down
8.7% year-over-year, which aligns with our content cost optimization strategy. This decline was largely due to fewer official tournament broadcasts and a reduction in related derivative content offerings on the platform. - In the first quarter, the number of quarterly average paying users[3] for livestreaming-related business was 2.9 million, with a quarterly ARPPU of
RMB216 . The decline in paying users mainly stemmed from adjustments in our operational strategies, the scaling back of our platform's low-ROI operational activities, and sustained weakness in consumer spending amid a soft macroeconomic landscape. - In the first quarter, revenues from our voice-based social networking business reached
RMB290.1 million . During the Chinese New Year holiday, we launched a series of targeted marketing campaigns, supported by highly efficient traffic distribution strategies that effectively boosted user engagement and payment conversion rates. Our average MAUs for voice-based social networking business for the first quarter were 498,400, with monthly average paying users[4] of 82,900.
First Quarter 2025 Financial Results
Total net revenues in the first quarter of 2025 decreased by
Livestreaming revenues in the first quarter of 2025 decreased by
Innovative business, advertising and other revenues (formerly known as advertising and other revenues) in the first quarter of 2025 increased by
Cost of revenues in the first quarter of 2025 decreased by
Revenue-sharing fees and content costs in the first quarter of 2025 decreased by
Bandwidth costs in the first quarter of 2025 decreased by
Gross profit in the first quarter of 2025 increased by
Sales and marketing expenses in the first quarter of 2025 decreased by
Research and development expenses in the first quarter of 2025 decreased by
General and administrative expenses in the first quarter of 2025 decreased by
Loss from operations in the first quarter of 2025 reduced by
Net loss in the first quarter of 2025 decreased by
Adjusted net loss (non-GAAP), which excludes net loss excluding share of loss (income) in equity method investments and impairment losses and fair value adjustments on investments, decreased by
Basic and diluted net loss per ADS5 in the first quarter of 2025 were both
Cash and cash equivalents, restricted cash and bank deposits
As of March 31, 2025, the Company had cash and cash equivalents, restricted cash, restricted cash in other non-current assets, and short-term and long-term bank deposits of
[1] "Adjusted net loss (non-GAAP)" is defined as net loss excluding share of loss (income) in equity method investments, impairment losses and fair value adjustments on investments, and impairment losses of goodwill and intangible assets. For more information, please refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release. [2] "MAUs" refers to the number of active mobile users (exclusive of innovative business unless the context otherwise indicates) in a given period. Average mobile MAUs for a given period is calculated by dividing (i) the sum of active mobile users for each month of such period, by (ii) the number of months in such period. [3] "Quarterly average paying users" refers to the average paying users for each quarter during a given period of time calculated by dividing (i) the sum of paying users for each quarter of such period, by (ii) the number of quarters in such period. "Paying user" refers to a registered user that has purchased virtual gifts on our platform at least once during the relevant period. [4] "Monthly average paying users" refers to the monthly average number of paying users during a given period of time calculated by dividing (i) the sum of paying users in each month of such period, by (ii) the number of months in such period. "Paying user" refers to a registered user that has purchased virtual gifts on our platform at least once during the relevant period. [5] Every one ADS represents one ordinary share for the relevant period and calendar year. |
About DouYu International Holdings Limited
Headquartered in
Use of Non-GAAP Financial Measures
Adjusted loss from operations is calculated as loss from operations adjusted for Impairment of goodwill and intangible assets. Adjusted net loss is calculated as net loss adjusted for share of loss (income) in equity method investments, impairment losses and fair value adjustments on investments and impairment losses of goodwill and intangible assets. Adjusted net loss attributable to DouYu is calculated as net loss attributable to DouYu adjusted for share of loss (income) in equity method investments, impairment losses and fair value adjustments on investments, and impairment loss of goodwill and intangible assets. Adjusted basic and diluted net loss per ordinary share is non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net loss per ordinary share. The Company adjusted the impact of (i) share of loss (income) in equity method investments, (ii) impairment losses and fair value adjustments on investments, and (iii) impairment losses of goodwill and intangible assets to understand and evaluate the Company's core operating performance. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with
For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and Non-GAAP Results" near the end of this release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Investor Relations Contact
In
Chenyang Yan DouYu International Holdings Limited Email: ir@douyu.tv Tel: +86 (10) 6508-0677 | Andrea Guo Piacente Financial Communications Email: douyu@tpg-ir.com Tel: +86 (10) 6508-0677 |
In
Brandi Piacente Piacente Financial Communications Email: douyu@tpg-ir.com Tel: +1-212-481-2050 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except share, ADS, per share and per ADS data) | |||||
As of December 31 | As of March 31 | ||||
2024 | 2025 | 2025 | |||
ASSETS | RMB | RMB | US$(1) | ||
Current assets: | |||||
Cash and cash equivalents | 1,017,148 | 1,852,492 | 255,280 | ||
Restricted cash | 83 | 74 | 10 | ||
Short-term bank deposits | 3,070,374 | 80,000 | 11,024 | ||
Accounts receivable, net | 49,057 | 53,170 | 7,327 | ||
Prepayments | 26,885 | 24,309 | 3,350 | ||
Amounts due from related parties | 74,175 | 57,616 | 7,940 | ||
Other current assets, net | 231,354 | 235,406 | 32,440 | ||
Total current assets | 4,469,076 | 2,303,067 | 317,371 | ||
Property and equipment, net | 7,093 | 6,550 | 903 | ||
Intangible assets, net | 60,917 | 52,539 | 7,240 | ||
Long-term bank deposits | 360,000 | 340,000 | 46,853 | ||
Investments | 456,815 | 397,744 | 54,811 | ||
Right-of-use assets, net | 15,816 | 12,530 | 1,727 | ||
Other non-current assets | 76,616 | 89,652 | 12,354 | ||
Total non-current assets | 977,257 | 899,015 | 123,888 | ||
TOTAL ASSETS | 5,446,333 | 3,202,082 | 441,259 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
LIABILITIES | |||||
Current liabilities: | |||||
Accounts payable | 498,667 | 490,049 | 67,531 | ||
Advances from customers | 4,444 | 2,575 | 355 | ||
Deferred revenue | 252,346 | 249,336 | 34,359 | ||
Accrued expenses and other current liabilities | 242,517 | 197,359 | 27,197 | ||
Amounts due to related parties | 222,589 | 278,607 | 38,393 | ||
Lease liabilities due within one year | 11,458 | 10,163 | 1,400 | ||
Total current liabilities | 1,232,021 | 1,228,089 | 169,235 | ||
Lease liabilities | 4,223 | 2,342 | 323 | ||
Total non-current liabilities | 4,223 | 2,342 | 323 | ||
TOTAL LIABILITIES | 1,236,244 | 1,230,431 | 169,558 | ||
(1) Translations of certain RMB amounts into all translations from RMB to H.10 statistical release of the Federal Reserve Board. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except share, ADS, per share and per ADS data) | |||||
As of December 31 | As of March 31 | ||||
2024 | 2025 | 2025 | |||
RMB | RMB | US$(1) | |||
SHAREHOLDERS' EQUITY | |||||
Ordinary shares | 20 | 20 | 3 | ||
Additional paid-in capital | 7,514,498 | 5,363,717 | 739,140 | ||
Accumulated deficit | (3,791,817) | (3,871,429) | (533,497) | ||
Accumulated other comprehensive income | 487,388 | 479,343 | 66,055 | ||
Total DouYu Shareholders' Equity | 4,210,089 | 1,971,651 | 271,701 | ||
Total Shareholders' Equity | 4,210,089 | 1,971,651 | 271,701 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,446,333 | 3,202,082 | 441,259 | ||
(1) Translations of certain RMB amounts into all translations from RMB to H.10 statistical release of the Federal Reserve Board. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (All amounts in thousands, except share, ADS, per share and per ADS data) | |||||||
Three Months Ended | |||||||
March 31, | December 31, | March 31, | March 31, | ||||
2024 | 2024 | 2025 | 2025 | ||||
RMB | RMB | RMB | US$(1) | ||||
Net revenues | 1,039,684 | 1,136,000 | 947,051 | 130,507 | |||
Cost of revenues | (930,678) | (1,066,209) | (833,543) | (114,865) | |||
Gross profit | 109,006 | 69,791 | 113,508 | 15,642 | |||
Operating expense | |||||||
Sales and marketing expenses | (75,570) | (79,348) | (72,929) | (10,050) | |||
General and administrative expenses | (42,797) | (71,674) | (35,787) | (4,932) | |||
Research and development expenses | (54,150) | (34,150) | (32,749) | (4,513) | |||
Other operating (loss) income, net | (103,428) | (77,520) | 1,815 | 250 | |||
Total operating expenses | (275,945) | (262,692) | (139,650) | (19,245) | |||
Loss from operations | (166,939) | (192,901) | (26,142) | (3,603) | |||
Other expenses, net | - | (21,401) | (58,554) | (8,069) | |||
Interest income | 81,094 | 45,147 | 10,141 | 1,397 | |||
Foreign exchange income | 153 | 546 | 258 | 36 | |||
Loss before income taxes and share of (loss) income in equity method investments | (85,692) | (168,609) | (74,297) | (10,239) | |||
Income tax expenses | - | (6,464) | (5,134) | (707) | |||
Share of (loss) income in equity method investments | (2,261) | 1,981 | (181) | (25) | |||
Net loss | (87,953) | (173,092) | (79,612) | (10,971) | |||
Net loss attributable to ordinary shareholders of the Company | (87,953) | (173,092) | (79,612) | (10,971) | |||
Net loss per ordinary share | |||||||
Basic | (2.77) | (5.74) | (2.64) | (0.36) | |||
Diluted | (2.77) | (5.74) | (2.64) | (0.36) | |||
Net loss per ADS(2) | |||||||
Basic | (2.77) | (5.74) | (2.64) | (0.36) | |||
Diluted | (2.77) | (5.74) | (2.64) | (0.36) | |||
Weighted average number of ordinary shares used in calculating net loss per ordinary share | |||||||
Basic | 31,807,180 | 30,178,859 | 30,178,859 | 30,178,859 | |||
Diluted | 31,807,180 | 30,178,859 | 30,178,859 | 30,178,859 | |||
Weighted average number of ADS used in calculating net loss per ADS(2) | |||||||
Basic | 31,807,180 | 30,178,859 | 30,178,859 | 30,178,859 | |||
Diluted | 31,807,180 | 30,178,859 | 30,178,859 | 30,178,859 | |||
(1) Translations of certain RMB amounts into from RMB to the Federal Reserve Board. (2) Every one ADS represents one ordinary share. |
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except share, ADS, per share and per ADS data) | |||||||
Three Months Ended | |||||||
March 31, | December 31, | March 31, | March 31, | ||||
2024 | 2024 | 2025 | 2025 | ||||
RMB | RMB | RMB | US$(1) | ||||
Loss from operations | (166,939) | (192,901) | (26,142) | (3,603) | |||
Add: | |||||||
Impairment losses of goodwill and intangible assets | - | 75,473 | - | - | |||
Adjusted Operating Loss (non-GAAP) | (166,939) | (117,428) | (26,142) | (3,603) | |||
Net loss | (87,953) | (173,092) | (79,612) | (10,971) | |||
Add/(Reversal of): | |||||||
Share of loss (income) in equity method investments | 2,261 | (1,981) | 181 | 25 | |||
Impairment losses and fair value adjustments on investments(2) | - | 21,401 | 58,554 | 8,069 | |||
Impairment losses of goodwill and intangible assets | - | 75,473 | - | - | |||
Adjusted net loss (non-GAAP) | (85,692) | (78,199) | (20,877) | (2,877) | |||
Net loss attributable to DouYu | (87,953) | (173,092) | (79,612) | (10,971) | |||
Add: | |||||||
Share of loss (income) in equity method investments | 2,261 | (1,981) | 181 | 25 | |||
Impairment losses and fair value adjustments on investments | - | 21,401 | 58,554 | 8,069 | |||
Impairment losses of goodwill and intangible assets | - | 75,473 | - | - | |||
Adjusted net loss attributable to DouYu | (85,692) | (78,199) | (20,877) | (2,877) | |||
Adjusted net loss per ordinary share (non-GAAP) | |||||||
Basic | (2.69) | (2.59) | (0.69) | (0.10) | |||
Diluted | (2.69) | (2.59) | (0.69) | (0.10) | |||
Adjusted net loss per ADS(3) (non-GAAP) | |||||||
Basic | (2.69) | (2.59) | (0.69) | (0.10) | |||
Diluted | (2.69) | (2.59) | (0.69) | (0.10) | |||
Weighted average number of ordinary shares used in calculating adjusted net loss per ordinary share | |||||||
Basic | 31,807,180 | 30,178,859 | 30,178,859 | 30,178,859 | |||
Diluted | 31,807,180 | 30,178,859 | 30,178,859 | 30,178,859 | |||
Weighted average number of ordinary shares used in calculating adjusted net loss per ADS(3) | |||||||
Basic | 31,807,180 | 30,178,859 | 30,178,859 | 30,178,859 | |||
Diluted | 31,807,180 | 30,178,859 | 30,178,859 | 30,178,859 | |||
(1) Translations of certain RMB amounts into from RMB to the Federal Reserve Board. (2) Impairment losses and fair value adjustments on investments were included in the line item "Other expenses, net" of condensed consolidated statements of income (loss). (3) Every one ADS represents one ordinary share. |
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SOURCE DouYu International Holdings Limited