DouYu International Holdings Limited Reports First Quarter 2021 Unaudited Financial Results
DouYu International Holdings Limited (Nasdaq: DOYU) reported its first quarter 2021 financial results, revealing total net revenues of RMB2.15 billion (US$328.6 million), down from RMB2.28 billion in Q1 2020. The company posted a net loss of RMB101.8 million (US$15.5 million), contrasting with a net income of RMB254.5 million in the previous year. Gross profit decreased significantly to RMB260.2 million (12.1% gross margin). Despite the challenges, average monthly active users rose by 21.3% to 191.9 million.
- Average monthly active users increased by 21.3% to 191.9 million.
- Increased investment in content for improved user engagement.
- Total net revenue declined by 5.5% year-over-year.
- Net loss of RMB101.8 million compared to net income in Q1 2020.
- Gross profit decreased to RMB260.2 million from RMB485.9 million.
WUHAN, China, May 18, 2021 /PRNewswire/ -- DouYu International Holdings Limited ("DouYu" or the "Company") (Nasdaq: DOYU), a leading game-centric live streaming platform in China and a pioneer in the eSports value chain, today announced its unaudited financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Financial and Operational Highlights
- Total net revenues in the first quarter of 2021 were RMB2,152.7 million (US
$328.6 million ), compared with RMB2,278.0 million in the same period of 2020. - Gross profit in the first quarter of 2021 was RMB260.2 million (US
$39.7 million ), compared with RMB485.9 million in the same period of 2020, implying a gross margin of12.1% in the first quarter of 2021. - Net loss in the first quarter of 2021 was RMB101.8 million (US
$15.5 million ), compared with a net income of RMB254.5 million in the same period of 2020. - Adjusted net loss in the first quarter of 2021 was RMB70.7 million (US
$10.8 million ), compared with an adjusted net income of RMB296.9 million in the same period of 2020. - Average MAUs in the first quarter of 2021 increased by
21.3% to 191.9 million from 158.1 million in the same period of 2020. - Average mobile MAUs in the first quarter of 2021 increased by
4.5% to 59.1 million from 56.6 million in the same period of 2020. - Quarterly average paying user count in the first quarter of 2021 was 7.0 million, compared with 7.6 million in the same period of 2020.
Mr. Shaojie Chen, Chief Executive Officer of DouYu, commented, "We are pleased to announce that we maintained steady operational growth in the first quarter of 2021 as we continued to upgrade our operational system. On a year-over-year basis, our total average MAUs increased by
Mr. Hao Cao, Vice President of DouYu, commented, "In the first quarter of 2021, our total revenues were RMB2.15 billion and gross profit was RMB260.2 million, representing a gross margin of
First Quarter 2021 Financial Results
Total net revenues in the first quarter of 2021 were RMB2,152.7 million (US
Live streaming revenues in the first quarter of 2021 were RMB1,998.6 million (US
Advertising and other revenues in the first quarter of 2021 were RMB154.1 million (US
Cost of revenues in the first quarter of 2021 was RMB1,892.5 million (US
Revenue sharing fees and content costs in the first quarter of 2021 increased by
Bandwidth costs in the first quarter of 2021 were RMB172.1 million (US
Gross profit in the first quarter of 2021 was RMB260.2 million (US
Sales and marketing expenses in the first quarter of 2021 were RMB209.9 million (US
Research and development expenses in the first quarter of 2021 were RMB111.3 million (US
General and administrative expenses in the first quarter of 2021 were RMB88.1 million (US
Other operating income, net in the first quarter of 2021 was RMB23.9 million (US
Loss from operations in the first quarter of 2021 was RMB125.1 million (US
Adjusted operating loss in the first quarter of 2021, which adds back share-based compensation expenses, was RMB91.8 million (US
Income tax expenses in the first quarter of 2021 and 2020 were nil due to the Company's cumulative net losses and the resulting tax loss carryforward.
Net loss in the first quarter of 2021 was RMB101.8 million (US
Adjusted net loss in the first quarter of 2021, which excludes share-based compensation expenses, share of income in equity method investments, and impairment loss of investments, was RMB70.7 million (US
Basic and diluted net loss per ADS[1] in the first quarter of 2021 were RMB0.19 (US
Conference Call Information
The Company will hold a conference call on Tuesday, May 18, 2021, at 8:00 am Eastern Time (or 8:00 pm Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers:
International: | 1-412-317-6061 |
United States Toll Free: | 1-888-317-6003 |
Mainland China Toll Free: | 4001-206115 |
Hong Kong Toll Free: | 800-963976 |
Singapore Toll Free: | 800-120-5863 |
Conference ID: | 6148890 |
The replay will be accessible through May 25, 2021, by dialing the following numbers:
International: | 1-412-317-0088 |
United States Toll Free: | 1-877-344-7529 |
Conference ID: | 10156140 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.douyu.com/.
[1] Every ten ADSs represent one ordinary share. |
About DouYu International Holdings Limited
Headquartered in Wuhan, China, DouYu International Holdings Limited (Nasdaq: DOYU) is a leading game-centric live streaming platform in China and a pioneer in the eSports value chain. DouYu operates its platform on both PC and mobile apps, through which users can enjoy immersive and interactive games and entertainment live streaming. DouYu's platform brings together a deep pool of top live streamers. By providing a sustainable streamer development system built on advanced technology infrastructure and capabilities, DouYu helps ensure a consistent supply of quality content. Through collaborations with a variety of participants across the eSports value chain, the Company has gained coveted access to a wide variety of premium eSports content, which further attracts viewers and enhances user experience. For more information, please see http://ir.douyu.com/.
Use of Non-GAAP Financial Measures
Adjusted operating income (loss) is calculated as operating income (loss) adjusted for share-based compensation expenses. Adjusted net income is calculated as net loss adjusted for share-based compensation expenses, share of income (loss) in equity method investments, gain on disposal of investment or subsidiaries and impairment loss on investments. Adjusted net income attributable to DouYu is calculated as net income attributable to DouYu adjusted for share-based compensation expenses, share of income (loss) in equity method investments, gain on disposal of investment or subsidiaries and impairment loss of investments. Adjusted basic and diluted net income per ordinary share is non-GAAP net income attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The Company adjusted the impact of (i) share-based compensation expenses, (ii) share of income (loss) in equity method investments, (iii) gain on disposal of investment or subsidiaries and (iv)impairment loss of investments 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 U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics in accordance with U.S. GAAP.
For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.5518 to US
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the Securities Exchange Commission. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
In addition to factors previously disclosed in Huya and DouYu's documents filed with the SEC, the following factors, among others, could cause actual results to differ materially from forward-looking statements and information or historical performance: the occurrence of any event, change or other circumstances that could give rise to the right of one or both of Huya and DouYu to terminate the definitive merger agreement between Huya and DouYu; the outcome of any legal proceedings that may be instituted against Huya, DouYu or their respective shareholders or directors; the ability to obtain regulatory approvals and meet other closing conditions to the merger, including the risk that regulatory approvals required for the merger are not obtained or are obtained subject to conditions that are not anticipated or that are material and adverse to Huya's or DouYu's business; a delay in closing the merger; the ability to obtain approval by DouYu's shareholders on the expected terms and schedule; business disruptions from the proposed merger that will harm Huya's or DouYu's business, including current plans and operations; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger; certain restrictions during the pendency of the merger that may impact Huya's or DouYu's ability to pursue certain business opportunities or strategic transactions; the ability of Huya or DouYu to retain and hire key personnel; uncertainty as to the long-term value of the Class A ordinary shares of Huya following the merger; the continued availability of capital and financing following the merger; the business, economic and political conditions in the markets in which Huya and DouYu operate; changes in Huya's or DouYu's anticipated revenue and income; changes in DouYu's operating or other expenses; the degree to which Huya or DouYu encounters competition; and general political, economic and market conditions.
Investor Relations Contact
Mao Mao
DouYu International Holdings Limited
Email: ir@douyu.tv
Phone: +1 (646) 224-6934
Xinran Rao
ICR, Inc.
Email: DouYu.IR@icrinc.com
Phone: +1 (646) 224-6934
Media Relations Contact
Iris Ding
DouYu International Holdings Limited
Email: pr_douyu@douyu.tv
Phone: +1 (646) 308-1475
Edmond Lococo
ICR, Inc.
Email: DouYu.PR@icrinc.com
Phone: +1 (646) 308-1475
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 | ||
2020 | 2021 | 2021 | |
RMB | RMB | US$(1) | |
ASSETS Current assets | |||
Cash and cash equivalents | 5,279,902 | 5,027,654 | 767,370 |
Restricted cash | 11,875 | 11,841 | 1,807 |
Short-term bank deposits | 2,230,229 | 2,439,973 | 372,413 |
Accounts receivable, net | 199,744 | 176,378 | 26,921 |
Prepayments | 66,257 | 60,618 | 9,252 |
Amounts due from related parties | 9,045 | 10,024 | 1,530 |
Other current assets | 236,704 | 382,446 | 58,373 |
Total current assets | 8,033,756 | 8,108,934 | 1,237,666 |
Property and equipment, net | 37,792 | 34,410 | 5,252 |
Intangible assets, net | 141,672 | 120,867 | 18,448 |
Long-term bank deposits | 100,000 | 100,000 | 15,263 |
Investments | 500,659 | 533,729 | 81,463 |
Goodwill | 12,933 | 13,025 | 1,988 |
Right-of-use assets | 62,141 | 51,242 | 7,821 |
Other non-current assets | 19,004 | 14,552 | 2,221 |
Total non-current assets | 874,201 | 867,825 | 132,456 |
TOTAL ASSETS | 8,907,957 | 8,976,759 | 1,370,122 |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
LIABILITIES | |||
Current liabilities | |||
Accounts payable | 986,073 | 1,019,272 | 155,571 |
Advances from customers | 10,911 | 12,541 | 1,914 |
Deferred revenue | 242,013 | 199,441 | 30,441 |
Accrued expenses and other current liabilities | 384,041 | 372,551 | 56,862 |
Amounts due to related parties | 223,525 36,281 | 353,923 31,698 | 54,019 4,838 |
Lease liabilities due within one year | |||
Total current liabilities | 1,882,844 | 1,989,426 | 303,645 |
Lease liabilities | 16,952 | 13,433 | 2,050 |
Deferred revenue | 30,779 | 27,898 | 4,258 |
Total non-current liabilities | 47,731 | 41,331 | 6,308 |
TOTAL LIABILITIES | 1,930,575 | 2,030,757 | 309,953 |
(1) Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, all |
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 | ||
2020 | 2021 | 2021 | |
RMB | RMB | US$(1) | |
SHAREHOLDERS' EQUITY | |||
Ordinary shares | 23 | 23 | 4 |
Treasury shares | (695,098) | (695,098) | (106,093) |
Additional paid-in capital | 10,486,398 | 10,519,715 | 1,605,622 |
Accumulated deficit | (2,863,219) | (2,925,238) | (446,479) |
Accumulated other comprehensive income | 10,911 | 49,379 | 7,539 |
Total DouYu Shareholders' Equity | 6,939,015 | 6,948,781 | 1,060,593 |
Noncontrolling interests | 38,367 | (2,779) | (424) |
Total Shareholders' Equity | 6,977,382 | 6,946,002 | 1,060,169 |
TOTAL LIABILITIES | |||
AND SHAREHOLDERS' EQUITY | 8,907,957 | 8,976,759 | 1,370,122 |
(1) Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||
(All amounts in thousands, except share, ADS, per share and per ADS data) | |||||
Three Months Ended | |||||
March 31, | December 31, | March 31, | March 31, | ||
2020 | 2020 | 2021 | 2021 | ||
RMB | RMB | RMB | US$(1) | ||
Net revenues | 2,278,035 | 2,269,197 | 2,152,687 | 328,564 | |
Cost of revenues | (1,792,181) | (2,087,022) | (1,892,499) | (288,852) | |
Gross profit | 485,854 | 182,175 | 260,188 | 39,712 | |
Operating income (expense) (2) | |||||
Sales and marketing expenses | (107,357) | (170,708) | (209,877) | (32,033) | |
General and administrative expenses | (84,580) | (117,699) | (88,074) | (13,443) | |
Research and development expenses | (92,888) | (118,879) | (111,264) | (16,982) | |
Other operating income (expense), net | 16,578 | (7,272) | 23,924 | 3,652 | |
Total operating expenses | (268,246) | (414,558) | (385,291) | (58,806) | |
Income (loss) from operations | 217,608 | (232,383) | (125,103) | (19,094) | |
Other expenses, net | (10,018) | (3,403) | 127 | 19 | |
Interest income, net | 45,044 | 23,104 | 20,930 | 3,195 | |
Income (loss) before income taxes and share of | 252,634 | (212,682) | (104,046) | (15,880) | |
Income tax expense | - | - | - | - | |
Share of income (loss) in equity method investments | 1,892 | (15,982) | 2,213 | 338 | |
Net income (loss) | 254,526 | (228,664) | (101,833) | (15,542) | |
Less: Net loss attributable to noncontrolling interest | (5,924) | (31,807) | (39,814) | (6,077) | |
Net income (loss) attributable to ordinary | 260,450 | (196,857) | (62,019) | (9,465) | |
Net income (loss) per ordinary share | |||||
Basic | 8.18 | (6.12) | (1.92) | (0.29) | |
Diluted | 7.90 | (6.12) | (1.92) | (0.29) | |
Net income (loss) per ADS(3) | |||||
Basic | 0.82 | (0.61) | (0.19) | (0.03) | |
Diluted | 0.79 | (0.61) | (0.19) | (0.03) | |
Weighted average number of ordinary shares used in calculating net income (loss) per ordinary share | |||||
Basic | 31,848,831 | 32,175,361 | 32,349,764 | 32,349,764 | |
Diluted | 32,976,034 | 32,175,361 | 32,349,764 | 32,349,764 | |
Weighted average number of ADS used in calculating net income (loss) per ADS(3) | |||||
Basic | 318,488,308 | 321,753,609 | 323,497,638 | 323,497,638 | |
Diluted | 329,760,341 | 321,753,609 | 323,497,638 | 323,497,638 | |
(1) Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, all (2) Share-based compensation expenses were allocated in cost of revenues and operating expenses as follows:
translations from RMB to U.S. dollars are made at a rate of RMB6.5518 to US
statistical release of the Federal Reserve Board.
Three Months Ended | ||||
March 31, | December 31, | March 31, | March 31, | |
2020 | 2020 | 2021 | 2021 | |
RMB | RMB | RMB | US$(1) | |
Research and development expenses | 5,563 | 5,504 | 5,468 | 835 |
Sales and marketing expenses | 1,174 | 1,232 | 1,217 | 186 |
General and administrative expenses | 35,114 | 26,506 | 26,632 | 4,065 |
(3) Every ten ADSs represent one ordinary share.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||
(All amounts in thousands, except share, ADS, per share and per ADS data) | ||||
Three Months Ended | ||||
March 31, | December 31, | March 31, | March 31, | |
2020 | 2020 | 2021 | 2021 | |
RMB | RMB | RMB | US$(1) | |
Income (loss) from operations | 217,608 | (232,383) | (125,103) | (19,094) |
Add: | ||||
Share-based compensation expenses | 41,850 | 33,242 | 33,317 | 5,086 |
Adjusted operating income (loss) | 259,458 | (199,141) | (91,786) | (14,008) |
Net income (loss) | 254,526 | (228,664) | (101,833) | (15,542) |
Add: | ||||
Share-based compensation expenses | 41,850 | 33,242 | 33,317 | 5,086 |
Share of (income) loss in equity method investments | (1,892) | 15,982 | (2,213) | (338) |
Impairment losses and fair value adjustments on | 2,446 | 2,500 | - | - |
Adjusted net income (loss) | 296,931 | (176,940) | (70,729) | (10,794) |
Net income (loss) attributable to DouYu | 260,450 | (196,857) | (62,019) | (9,465) |
Add: | ||||
Share-based compensation expenses | 41,850 | 33,242 | 33,317 | 5,086 |
Share of income (loss) in equity method investments | (1,892) | 15,982 | (2,213) | (338) |
Impairment losses and fair value adjustments on | 2,446 | 2,500 | - | - |
Adjusted net income (loss) attributable to DouYu | 302,855 | (145,133) | (30,915) | (4,717) |
Adjusted net income (loss) per ordinary share | ||||
Basic | 9.51 | (4.51) | (0.96) | (0.15) |
Diluted | 9.51 | (4.51) | (0.96) | (0.15) |
Adjusted net income (loss) per ADS(2) | ||||
Basic | 0.95 | (0.45) | (0.10) | (0.01) |
Diluted | 0.95 | (0.45) | (0.10) | (0.01) |
Weighted average number of ordinary shares used in calculating adjusted net income (loss) per ordinary share | ||||
Basic | 31,848,831 | 32,175,361 | 32,349,764 | 32,349,764 |
Diluted | 31,848,831 | 32,175,361 | 32,349,764 | 32,349,764 |
Weighted average number of ordinary shares used in calculating adjusted net income per ADS(2) | ||||
Basic | 318,488,308 | 321,753,609 | 323,497,638 | 323,497,638 |
Diluted | 318,488,308 | 321,753,609 | 323,497,638 | 323,497,638 |
(1) Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, all |
(2) Every ten ADSs represent one ordinary share. |
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SOURCE DouYu International Holdings Limited
FAQ
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