DouYu International Holdings Limited Reports Second Quarter 2023 Unaudited Financial Results
- None.
- None.
Second Quarter 2023 Financial and Operational Highlights
- Total net revenues in the second quarter of 2023 were
RMB1,392.2 million (US ), compared with$192.0 million RMB1,833.2 million in the same period of 2022. - Gross profit in the second quarter of 2023 was
RMB188.9 million (US ), compared with$26.1 million RMB309.0 million in the same period of 2022. - Net income in the second quarter of 2023 was
RMB6.8 million (US ), compared with net loss of$0.9 million RMB38.8 million in the same period of 2022. - Adjusted net income[1] in the second quarter of 2023 was
RMB61.4 million (US ), compared with$8.5 million RMB23.5 million in the same period of 2022. - Average mobile MAUs[2] in the second quarter of 2023 were 50.3 million, compared with 55.7 million in the same period of 2022.
- The number of quarterly average paying users[3] in the second quarter of 2023 was 4.0 million, compared with 6.6 million in the same period of 2022.
Mr. Shaojie Chen, Chief Executive Officer of DouYu, commented, "In the second quarter of 2023, we continued to foster the sustainable health of our game-centric community ecosystem. We focused on successfully maintaining our core users, launching more high-quality, highly interactive content to boost interactions in our community and further elevated the user experience. Meanwhile, we worked more closely with game developers on mutually beneficial initiatives and reduced our marketing expenses in areas such as user acquisition and branding, which in turn improved our profitability. Driven by our regularly updated premium gaming content, diverse operational activities and revenue-generating product offerings, mobile MAUs in the second quarter were steady with the prior quarter at 50.3 million. Looking ahead, we remain committed to executing our core growth strategy of fostering a vibrant, game-centric content ecosystem. We will continue to produce high-quality content, launch innovative offerings and further explore new growth avenues. Our solid business development will enhance our competitive edge and leading position in the domestic gaming content industry."
Mr. Hao Cao, Vice President of DouYu, commented, "In the second quarter of 2023, our financial performance remained steady. We continued to execute on our long-term sustainable growth strategy with an emphasis on ROI. The key adjustments we have made to our livestreaming revenue-generating activities are designed to invigorate the platform community. Together, with our product upgrades and innovations, we stabilized our total net revenue of
Second Quarter 2023 Financial Results
Total net revenues in the second quarter of 2023 decreased by
Livestreaming revenues in the second quarter of 2023 decreased by
Advertising and other revenues in the second quarter of 2023 increased by
Cost of revenues in the second quarter of 2023 was
Revenue sharing fees and content costs in the second quarter of 2023 decreased by
Bandwidth costs in the second quarter of 2023 decreased by
Gross profit in the second quarter of 2023 was
Sales and marketing expenses in the second quarter of 2023 decreased by
Research and development expenses in the second quarter of 2023 decreased by
General and administrative expenses in the second quarter of 2023 decreased by
Other operating income, net in the second quarter of 2023 was
Loss from operations in the second quarter of 2023 was
Net income in the second quarter of 2023 was
Adjusted net income, which excludes share-based compensation expenses, the share of loss in equity method investments, and impairment loss of investments, was
Basic and diluted net income per ADS[4] in the second quarter of 2023 were both
Cash and cash equivalents, restricted cash and bank deposits
As of June 30, 2023, the Company had cash and cash equivalents, restricted cash, and short-term and long-term bank deposits of
Conference Call Information
The Company will hold a conference call on August 14, 2023, at 7:00 a.m. Eastern Time (or 7:00 p.m. 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: | 6137525 |
The replay will be accessible through August 21, 2023, by dialing the following numbers:
International: | +1-412-317-0088 |
United States Toll Free: | +1-877-344-7529 |
Conference ID: | 5510804 |
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] "Adjusted net income" is defined as net income excluding share-based compensation expenses, and share of loss in equity method investments and impairment loss of investments. 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] Refers to the number of mobile devices that launched our mobile apps 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] Every ten ADSs represent one ordinary share. |
About DouYu International Holdings Limited
Headquartered in
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 (loss) is calculated as net income (loss) adjusted for share-based compensation expenses, share of income (loss) in equity method investments and impairment loss of investments. Adjusted net income (loss) attributable to DouYu is calculated as net income (loss) attributable to DouYu adjusted for share-based compensation expenses, share of income (loss) in equity method investments 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 loss in equity method investments, (iii) 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
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
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
Lingling Kong DouYu International Holdings Limited Email: ir@douyu.tv Tel: +86 (10) 6508-0677
| Andrea Guo The Piacente Group, Inc. Email: douyu@tpg-ir.com Tel: +86 (10) 6508-0677
|
In
Brandi Piacente The Piacente Group, Inc. Email: douyu@tpg-ir.com Tel: +1-212-481-2050
|
Media Relations Contact
Lingling Kong DouYu International Holdings Limited Email: pr_douyu@douyu.tv Tel: +86 (10) 6508-0677
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(All amounts in thousands, except share, ADS, per share and per ADS data) | |||||
As of December 31 | As of June 30 | ||||
2022 | 2023 | 2023 | |||
ASSETS | RMB | RMB | US$ (1) | ||
Current assets: | |||||
Cash and cash equivalents | 4,041,603 | 4,514,968 | 622,643 | ||
Restricted cash | 6,057 | 35,374 | 4,878 | ||
Short-term bank deposits | 2,511,150 | 1,945,160 | 268,250 | ||
Accounts receivable, net | 109,180 | 90,189 | 12,437 | ||
Prepayments | 26,064 | 32,627 | 4,499 | ||
Amounts due from related parties | 46,126 | 31,951 | 4,406 | ||
Other current assets | 337,004 | 432,942 | 59,705 | ||
Total current assets | 7,077,184 | 7,083,211 | 976,818 | ||
Property and equipment, net | 16,988 | 14,222 | 1,961 | ||
Intangible assets, net | 106,723 | 81,548 | 11,246 | ||
Long-term bank deposits | 250,000 | 560,000 | 77,228 | ||
Investments | 531,911 | 471,445 | 65,015 | ||
Goodwill | 13,804 | 14,322 | 1,975 | ||
Right-of-use assets, net | 49,911 | 34,777 | 4,796 | ||
Other non-current assets, net | 98,845 | 95,105 | 13,116 | ||
Total non-current assets | 1,068,182 | 1,271,419 | 175,337 | ||
TOTAL ASSETS | 8,145,366 | 8,354,630 | 1,152,155 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
LIABILITIES | |||||
Current liabilities: | |||||
Accounts payable | 666,985 | 596,282 | 82,231 | ||
Advances from customers | 6,459 | 19,520 | 2,692 | ||
Deferred revenue | 288,152 | 320,279 | 44,168 | ||
Accrued expenses and other current liabilities | 302,801 | 219,831 | 30,316 | ||
Amounts due to related parties | 266,788 | 374,218 | 51,607 | ||
Lease liabilities due within one year | 27,479 | 21,158 | 2,918 | ||
Total current liabilities | 1,558,664 | 1,551,288 | 213,932 | ||
Lease liabilities | 19,572 | 11,818 | 1,630 | ||
Deferred revenue | 6,570 | - | - | ||
Total non-current liabilities | 26,142 | 11,818 | 1,630 | ||
TOTAL LIABILITIES | 1,584,806 | 1,563,106 | 215,562 | ||
(1) Translations of certain RMB amounts into |
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 June 30 | ||||
2022 | 2023 | 2023 | |||
RMB | RMB | US$ (1) | |||
SHAREHOLDERS' EQUITY | |||||
Ordinary shares | 23 | 23 | 3 | ||
Treasury shares | (911,217) | (911,217) | (125,663) | ||
Additional paid-in capital | 10,670,287 | 10,670,287 | 1,471,500 | ||
Accumulated deficit | (3,520,525) | (3,499,160) | (482,556) | ||
Accumulated other comprehensive income | 321,991 | 531,591 | 73,309 | ||
Total DouYu Shareholders' Equity | 6,560,559 | 6,791,524 | 936,593 | ||
Noncontrolling interests | 1 | - | - | ||
Total Shareholders' Equity | 6,560,560 | 6,791,524 | 936,593 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8,145,366 | 8,354,630 | 1,152,155 | ||
(1) Translations of certain RMB amounts into |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||||||||
(All amounts in thousands, except share, ADS, per share and per ADS data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2022 | March 31, 2023 | June 30, 2023 | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2023 | |||||||||
RMB | RMB | RMB | US$ (1) | RMB | RMB | US$ (1) | |||||||||
Net revenues | 1,833,205 | 1,483,060 | 1,392,193 | 191,992 | 3,628,851 | 2,875,253 | 396,516 | ||||||||
Cost of revenues | (1,524,167) | (1,306,594) | (1,203,294) | (165,942) | (3,076,039) | (2,509,888) | (346,129) | ||||||||
Gross profit | 309,038 | 176,466 | 188,899 | 26,050 | 552,812 | 365,365 | 50,387 | ||||||||
Operating (expenses) income (2) | |||||||||||||||
Sales and marketing expenses | (167,463) | (90,686) | (87,047) | (12,004) | (353,822) | (177,733) | (24,511) | ||||||||
General and administrative expenses | (90,659) | (59,793) | (46,938) | (6,473) | (180,758) | (106,731) | (14,719) | ||||||||
Research and development expenses | (101,847) | (72,311) | (71,043) | (9,797) | (218,155) | (143,354) | (19,769) | ||||||||
Other operating income, net | 20,375 | 19,046 | 8,615 | 1,188 | 68,175 | 27,661 | 3,815 | ||||||||
Total operating expenses | (339,594) | (203,744) | (196,413) | (27,086) | (684,560) | (400,157) | (55,184) | ||||||||
Loss from operations | (30,556) | (27,277) | (7,514) | (1,036) | (131,748) | (34,792) | (4,797) | ||||||||
Other expenses, net | (28,884) | (8,000) | (53,554) | (7,385) | (30,032) | (61,554) | (8,489) | ||||||||
Interest income, net | 23,570 | 54,426 | 67,252 | 9,274 | 40,201 | 121,679 | 16,780 | ||||||||
Foreign exchange loss | - | (1,396) | 1,641 | 226 | - | 245 | 34 | ||||||||
(Loss) Income before income taxes and share of Loss in equity method investments
| (35,870) | 17,753 | 7,825 | 1,079 | (121,579) | 25,578 | 3,528 | ||||||||
Income tax expense | - | - | - | - | - | - | - | ||||||||
Share of loss in equity method investments | (2,887) | (3,236) | (977) | (135) | (4,033) | (4,213) | (581) | ||||||||
Net (loss) Income | (38,757) | 14,517 | 6,848 | 944 | (125,612) | 21,365 | 2,947 | ||||||||
Less: Net loss attributable to noncontrolling interest | (7,841) | - | - | - | (7,841) | - | - | ||||||||
Net (loss) income attributable to ordinary shareholders of the Company | (30,916) | 14,517 | 6,848 | 944 | (117,771) | 21,365 | 2,947 | ||||||||
Net (loss) income per ordinary share | |||||||||||||||
Basic | (0.97) | 0.45 | 0.21 | 0.03 | (3.69) | 0.67 | 0.09 | ||||||||
Diluted | (0.97) | 0.45 | 0.21 | 0.03 | (3.69) | 0.67 | 0.09 | ||||||||
Net (loss) income per ADS(3) | |||||||||||||||
Basic | (0.10) | 0.05 | 0.02 | - | (0.37) | 0.07 | 0.01 | ||||||||
Diluted | (0.10) | 0.05 | 0.02 | - | (0.37) | 0.07 | 0.01 | ||||||||
Weighted average number of ordinary shares used in calculating net (loss) income per ordinary share | |||||||||||||||
Basic | 31,827,240 | 32,023,551 | 31,977,664 | 31,977,664 | 31,947,461 | 32,000,608 | 32,000,608 | ||||||||
Diluted | 31,827,240 | 32,023,551 | 31,977,664 | 31,977,664 | 31,947,461 | 32,000,608 | 32,000,608 | ||||||||
Weighted average number of ADS used in calculating net (loss) income per ADS(3) | |||||||||||||||
Basic | 318,272,401 | 320,235,512 | 319,776,640 | 319,776,640 | 319,474,607 | 320,006,075 | 320,006,075 | ||||||||
Diluted | 318,272,401 | 320,235,512 | 319,776,640 | 319,776,640 | 319,474,607 | 320,006,075 | 320,006,075 | ||||||||
(1) Translations of certain RMB amounts into | |||||||||||||||
(2) Share-based compensation expenses were allocated in cost of revenues and operating expenses as follows: | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2022 | March 31, 2023 | June 30, 2023 | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2023 | |||||||||
RMB | RMB | RMB | US$ (1) | RMB | RMB | US$ (1) | |||||||||
Research and development expenses | 5,437 | - | - | - | 10,872 | - | - | ||||||||
Sales and marketing expenses | 1,213 | - | - | - | 2,425 | - | - | ||||||||
General and administrative expenses | 24,184 | - | - | - | 50,747 | - | - | ||||||||
(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 | Six Months Ended | ||||||||||||||
June 30, 2022 | March 31, 2023 | June 30, 2023 | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2023 | |||||||||
RMB | RMB | RMB | US$ (1) | RMB | RMB | US$ (1) | |||||||||
Loss from operations | (30,556) | (27,277) | (7,514) | (1,036) | (131,748) | (34,792) | (4,797) | ||||||||
Add: | |||||||||||||||
Share-based compensation expenses | 30,834 | - | - | - | 64,044 | - | - | ||||||||
Adjusted Operating (loss) income | 278 | (27,277) | (7,514) | (1,036) | (67,704) | (34,792) | (4,797) | ||||||||
Net (loss) income | (38,757) | 14,517 | 6,848 | 944 | (125,612) | 21,365 | 2,947 | ||||||||
Add: | |||||||||||||||
Share-based compensation expenses | 30,834 | - | - | - | 64,044 | - | - | ||||||||
Share of loss in equity method investments | 2,887 | 3,236 | 977 | 135 | 4,033 | 4,213 | 581 | ||||||||
Impairment loss of investments | 28,571 | 8,000 | 53,554 | 7,385 | 28,571 | 61,554 | 8,489 | ||||||||
Adjusted net (loss) income | 23,535 | 25,753 | 61,379 | 8,464 | (28,964) | 87,132 | 12,017 | ||||||||
Net (loss) income attributable to DouYu | (30,916) | 14,517 | 6,848 | 944 | (117,771) | 21,365 | 2,947 | ||||||||
Add: | |||||||||||||||
Share-based compensation expenses | 30,834 | - | - | - | 64,044 | - | - | ||||||||
Share of loss in equity method investments | 2,887 | 3,236 | 977 | 135 | 4,033 | 4,213 | 581 | ||||||||
Impairment loss of investments | 28,571 | 8,000 | 53,554 | 7,385 | 28,571 | 61,554 | 8,489 | ||||||||
Adjusted net (loss) income attributable to DouYu | 31,376 | 25,753 | 61,379 | 8,464 | (21,123) | 87,132 | 12,017 | ||||||||
Adjusted net (loss) income per ordinary share | |||||||||||||||
Basic | 0.99 | 0.80 | 1.92 | 0.26 | (0.66) | 2.72 | 0.38 | ||||||||
Diluted | 0.99 | 0.80 | 1.92 | 0.26 | (0.66) | 2.72 | 0.38 | ||||||||
Adjusted net (loss) income per ADS(2)
| |||||||||||||||
Basic | 0.10 | 0.08 | 0.19 | 0.03 | (0.07) | 0.27 | 0.04 | ||||||||
Diluted | 0.10 | 0.08 | 0.19 | 0.03 | (0.07) | 0.27 | 0.04 | ||||||||
Weighted average number of ordinary shares used in calculating Adjusted net (loss) income per ordinary share | |||||||||||||||
Basic | 31,827,240 | 32,023,551 | 31,977,664 | 31,977,664 | 31,947,461 | 32,000,608 | 32,000,608 | ||||||||
Diluted | 31,827,240 | 32,023,551 | 31,977,664 | 31,977,664 | 31,947,461 | 32,000,608 | 32,000,608 | ||||||||
Weighted average number of ADS used in calculating net (loss) income per ADS(2) | |||||||||||||||
Basic | 318,272,401 | 320,235,512 | 319,776,640 | 319,776,640 | 319,474,607 | 320,006,075 | 320,006,075 | ||||||||
Diluted | 318,272,401 | 320,235,512 | 319,776,640 | 319,776,640 | 319,474,607 | 320,006,075 | 320,006,075 | ||||||||
(1) Translations of certain RMB amounts into | |||||||||||||||
(2) Every ten ADSs represent one ordinary share. |
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SOURCE DouYu International Holdings Limited
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