HUYA Inc. Reports First Quarter 2024 Unaudited Financial Results
HUYA Inc., a leading game live streaming platform in China, reported unaudited financial results for the first quarter of 2024. Total net revenues were RMB1,504.0 million, with net income of RMB71.0 million. Non-GAAP net income was RMB92.5 million, and average mobile MAUs for Huya Live grew to 82.6 million. The company emphasized advancements in content, platform, and commercialization, driving revenues and profitability. Despite a decrease in live streaming revenues, growth in game-related services and reduced costs led to improved gross margin and operational efficiency.
Strong strategic execution led to advancements in content, platform, and commercialization.
Rapid growth in revenues from game distribution, advertising services, and in-game item sales.
Increased average mobile MAUs for Huya Live to 82.6 million.
Higher gross margin of 14.7% in the first quarter of 2024.
Reduced total operating expenses by 17.8% year-over-year.
Decrease in live streaming revenues due to soft macroeconomic environment and business adjustments.
Operating loss of RMB38.5 million for the first quarter of 2024.
Basic and diluted net income per ADS were lower compared to the same period in 2023.
Total net revenues decreased to RMB1,504.0 million for the first quarter of 2024.
Cost of revenues decreased by 24.2% due to decreased revenue sharing fees and content costs.
Insights
First Quarter 2024 Highlights[1]
- Total net revenues for the first quarter of 2024 were
RMB1,504.0 million (US ), compared with$208.3 million RMB1,962.5 million for the same period of 2023. - Net income attributable to HUYA Inc. was
RMB71.0 million (US ) for the first quarter of 2024, compared with$9.8 million RMB39.6 million for the same period of 2023. - Non-GAAP net income attributable to HUYA Inc.[2] was
RMB92.5 million (US ) for the first quarter of 2024, compared with$12.8 million RMB85.1 million for the same period of 2023. - Average mobile MAUs[3] of Huya Live for the first quarter of 2024 was 82.6 million, compared with 82.1 million for the same period of 2023.
Mr. Junhong Huang, Acting Co-Chief Executive Officer and Senior Vice President of Huya, commented, "In the first quarter of 2024, strong strategic execution delivered advancements across the board as we navigated an evolving industry environment. We upgraded the Huya Live mobile application and held an array of innovative cross-platform e-sports events and operational activities, further enhancing our content influence and brand awareness. As a result, Huya Live's average mobile MAUs grew marginally year-over-year to 82.6 million in the first quarter. Furthermore, we made encouraging progress in the commercialization of our game-related services. Rapid growth in revenues from game distribution and advertising services, as well as in-game item sales, drove our game-related services, advertising and other revenues for the first quarter to
Ms. Ashley Xin Wu, Huya's Acting Co-Chief Executive Officer and Vice President of Finance, continued, "Our total net revenues for the first quarter were approximately
[1] In December 2023, the Company acquired a global mobile application service provider from Tencent Holdings Limited for an aggregate cash consideration of |
[2] "Non-GAAP net income attributable to HUYA Inc." is defined as net income attributable to HUYA Inc. excluding share-based compensation expenses and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. For more information, please refer to the section titled "Use of Non-GAAP Financial Measures" and the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this press release. |
[3] Refers to average monthly active users on mobile apps. Average mobile MAUs for any period is calculated by dividing (i) the sum of active users on the mobile apps for each month during such relevant period, by (ii) the number of months during such relevant period. |
[4] Refers to the sum of user accounts that purchased various products and services on the Company's platform at least once during such relevant period. |
First Quarter 2024 Financial Results
Total net revenues for the first quarter of 2024 were
Live streaming revenues were
Game-related services, advertising and other revenues (formerly known as advertising and other revenues) were
Cost of revenues decreased by
Revenue sharing fees and content costs decreased by
Bandwidth costs decreased by
Gross profit was
Research and development expenses decreased by
Sales and marketing expenses decreased by
General and administrative expenses decreased by
Other income was
Operating loss was
Interest income was
Net income attributable to HUYA Inc. was
Non-GAAP net income attributable to HUYA Inc. was
Basic and diluted net income per American depositary share ("ADS") were each
Non-GAAP basic and diluted net income per ADS were
As of March 31, 2024, the Company had cash and cash equivalents, short-term deposits, short-term investment and long-term deposits of
Share Repurchase Program
On August 15, 2023, the board of directors of the Company authorized a share repurchase program under which the Company may repurchase up to
Earnings Webinar
The Company's management will host a
For participants who wish to join the webinar, please complete the online registration in advance using the links provided below. Upon registration, participants will receive an email with webinar access information, including meeting ID, meeting link, dial-in numbers, and a unique attendee ID to join the webinar.
Participant Online Registration:
Chinese Mainland[5]: | |
International: |
A live webcast of the webinar will be accessible at https://ir.huya.com, and a replay of the webcast will be available following the session.
[5] For the purpose of this announcement only, Chinese Mainland excludes the Hong Kong Special Administrative Region, the Macao Special Administrative Region of |
About HUYA Inc.
HUYA Inc. is a leading game live streaming platform in
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For investor and media inquiries, please contact:
In
HUYA Inc.
Investor Relations
Tel: +86-20-2290-7829
E-mail: ir@huya.com
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: huya@tpg-ir.com
In
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: huya@tpg-ir.com
HUYA INC. | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(All amounts in thousands, except share, ADS, per share data and per ADS data) | ||||||
As of December 31, | As of March 31, | |||||
2023 | 2024 | 2024 | ||||
RMB | RMB | US$ | ||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 511,973 | 542,122 | 75,083 | |||
Restricted cash | 18,137 | 19,632 | 2,719 | |||
Short-term deposits | 6,851,160 | 6,624,848 | 917,531 | |||
Short-term investment | - | 10,000 | 1,385 | |||
Accounts receivable, net | 64,258 | 74,365 | 10,299 | |||
Prepaid assets and amounts due from related | 148,648 | 158,902 | 22,008 | |||
Prepayments and other current assets, net | 556,435 | 645,010 | 89,333 | |||
Total current assets | 8,150,611 | 8,074,879 | 1,118,358 | |||
Non-current assets | ||||||
Long-term deposits | 2,553,293 | 2,242,850 | 310,631 | |||
Investments | 751,844 | 751,890 | 104,136 | |||
Goodwill | 456,976 | 457,771 | 63,401 | |||
Property and equipment, net | 326,765 | 376,244 | 52,109 | |||
Intangible assets, net | 161,739 | 151,978 | 21,049 | |||
Right-of-use assets, net | 379,006 | 370,832 | 51,360 | |||
Prepayments and other non-current assets | 144,120 | 144,119 | 19,960 | |||
Total non-current assets | 4,773,743 | 4,495,684 | 622,646 | |||
Total assets | 12,924,354 | 12,570,563 | 1,741,004 | |||
Liabilities and shareholders' equity | ||||||
Current liabilities | ||||||
Accounts payable | 14,961 | 35,383 | 4,900 | |||
Advances from customers and deferred revenue | 412,257 | 337,500 | 46,743 | |||
Income taxes payable | 49,914 | 55,943 | 7,748 | |||
Accrued liabilities and other current liabilities | 1,474,827 | 1,266,372 | 175,391 | |||
Amounts due to related parties | 177,714 | 134,145 | 18,579 | |||
Lease liabilities due within one year | 31,832 | 32,706 | 4,530 | |||
Dividends payable | - | 1,066,238 | 147,672 | |||
Total current liabilities | 2,161,505 | 2,928,287 | 405,563 | |||
Non-current liabilities | ||||||
Lease liabilities | 48,069 | 41,356 | 5,728 | |||
Deferred tax liabilities | 42,317 | 41,348 | 5,727 | |||
Deferred revenue | 47,864 | 41,880 | 5,800 | |||
Total non-current liabilities | 138,250 | 124,584 | 17,255 | |||
Total liabilities | 2,299,755 | 3,052,871 | 422,818 | |||
HUYA INC. | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||
(All amounts in thousands, except share, ADS, per share data and per ADS data) | ||||||
As of December 31, | As of March 31, | |||||
2023 | 2024 | 2024 | ||||
RMB | RMB | US$ | ||||
Shareholders' equity | ||||||
Class A ordinary shares ( | 61 | 62 | 9 | |||
Class B ordinary shares ( | 98 | 98 | 14 | |||
Treasury shares | (206,345) | (346,576) | (48,000) | |||
Additional paid-in capital | 12,000,100 | 10,950,396 | 1,516,612 | |||
Statutory reserves | 122,429 | 122,429 | 16,956 | |||
Accumulated deficit | (2,052,336) | (1,981,303) | (274,407) | |||
Accumulated other comprehensive income | 760,592 | 772,586 | 107,002 | |||
Total shareholders' equity | 10,624,599 | 9,517,692 | 1,318,186 | |||
Total liabilities and shareholders' equity | 12,924,354 | 12,570,563 | 1,741,004 |
HUYA INC. | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(All amounts in thousands, except share, ADS, per share data and per ADS data) | ||||||||||
Three Months Ended | ||||||||||
March 31, 2023* | December 31, 2023 | March 31, 2024 | March 31, 2024 | |||||||
RMB | RMB | RMB | US$ | |||||||
Net revenues | ||||||||||
Live streaming | 1,859,924 | 1,343,463 | 1,260,444 | 174,569 | ||||||
Game-related services, advertising and other | 102,526 | 186,349 | 243,603 | 33,739 | ||||||
Total net revenues | 1,962,450 | 1,529,812 | 1,504,047 | 208,308 | ||||||
Cost of revenues(1) | (1,693,380) | (1,514,602) | (1,283,502) | (177,763) | ||||||
Gross profit | 269,070 | 15,210 | 220,545 | 30,545 | ||||||
Operating expenses(1) | ||||||||||
Research and development expenses | (153,362) | (137,001) | (135,106) | (18,712) | ||||||
Sales and marketing expenses | (103,288) | (113,342) | (76,232) | (10,558) | ||||||
General and administrative expenses | (73,464) | (100,239) | (60,032) | (8,314) | ||||||
Total operating expenses | (330,114) | (350,582) | (271,370) | (37,584) | ||||||
Other income, net | 4,176 | 13,105 | 12,309 | 1,705 | ||||||
Operating loss | (56,868) | (322,267) | (38,516) | (5,334) | ||||||
Interest income | 96,372 | 129,480 | 117,052 | 16,212 | ||||||
Impairment loss of investments | - | (79,911) | - | - | ||||||
Foreign currency exchange gains (losses), net | 413 | 2,224 | (2,419) | (335) | ||||||
Income (loss) before income tax expenses | 39,917 | (270,474) | 76,117 | 10,543 | ||||||
Income tax expenses | (304) | (4,497) | (5,084) | (704) | ||||||
Net income (loss) attributable to HUYA Inc. | 39,613 | (274,971) | 71,033 | 9,839 | ||||||
Net income (loss) attributable to ordinary | 39,613 | (274,971) | 71,033 | 9,839 | ||||||
HUYA INC. | |||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) | |||||||||
(All amounts in thousands, except share, ADS, per share data and per ADS data) | |||||||||
Three Months Ended | |||||||||
March 31, 2023* | December 31, 2023 | March 31, 2024 | March 31, 2024 | ||||||
RMB | RMB | RMB | US$ | ||||||
Net income (loss) per ADS** | |||||||||
—Basic | 0.16 | (1.14) | 0.30 | 0.04 | |||||
—Diluted | 0.16 | (1.14) | 0.30 | 0.04 | |||||
Net income (loss) per ordinary share | |||||||||
—Basic | 0.16 | (1.14) | 0.30 | 0.04 | |||||
—Diluted | 0.16 | (1.14) | 0.30 | 0.04 | |||||
Weighted average number of ADS used in | |||||||||
—Basic | 242,786,352 | 240,915,572 | 233,157,641 | 233,157,641 | |||||
—Diluted | 246,437,853 | 240,915,572 | 236,271,702 | 236,271,702 | |||||
* HUYA Inc. Unaudited Condensed Consolidated Statements of Operations for three months ended March 31, 2023 have been retrospectively | |
** Each ADS represents one Class A ordinary share. |
(1) | Share-based compensation was allocated in cost of revenues and operating expenses as follows: |
Three Months Ended | ||||||||
March 31, 2023 | December 31, 2023 | March 31, 2024 | March 31, 2024 | |||||
RMB | RMB | RMB | US$ | |||||
Cost of revenues | 8,264 | (17) | 4,285 | 593 | ||||
Research and development expenses | 19,940 | 546 | 7,616 | 1,055 | ||||
Sales and marketing expenses | 1,227 | 248 | 366 | 51 | ||||
General and administrative expenses | 11,262 | (393) | 4,268 | 591 |
HUYA INC. | ||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||
(All amounts in thousands, except share, ADS, per share data and per ADS data) | ||||||||
Three Months Ended | ||||||||
March 31, 2023* | December 31, 2023 | March 31, 2024 | March 31, 2024 | |||||
RMB | RMB | RMB | US$ | |||||
Gross profit | 269,070 | 15,210 | 220,545 | 30,545 | ||||
Share-based compensation expenses allocated in | 8,264 | (17) | 4,285 | 593 | ||||
Non-GAAP gross profit | 277,334 | 15,193 | 224,830 | 31,138 | ||||
Operating loss | (56,868) | (322,267) | (38,516) | (5,334) | ||||
Share-based compensation expenses | 40,693 | 384 | 16,535 | 2,290 | ||||
Amortization of intangible assets from business | 5,747 | 5,965 | 5,930 | 821 | ||||
Non-GAAP operating loss | (10,428) | (315,918) | (16,051) | (2,223) | ||||
Net income (loss) attributable to HUYA Inc. | 39,613 | (274,971) | 71,033 | 9,839 | ||||
Impairment loss of investments | - | 79,911 | - | - | ||||
Share-based compensation expenses | 40,693 | 384 | 16,535 | 2,290 | ||||
Amortization of intangible assets from business | 4,770 | 4,951 | 4,922 | 682 | ||||
Non-GAAP net income (loss) attributable to | 85,076 | (189,725) | 92,490 | 12,811 | ||||
Net income (loss) attributable to ordinary | 39,613 | (274,971) | 71,033 | 9,839 | ||||
Impairment loss of investments | - | 79,911 | - | - | ||||
Share-based compensation expenses | 40,693 | 384 | 16,535 | 2,290 | ||||
Amortization of intangible assets from business | 4,770 | 4,951 | 4,922 | 682 | ||||
Non-GAAP net income (loss) attributable to | 85,076 | (189,725) | 92,490 | 12,811 | ||||
Non-GAAP net income (loss) per ordinary share | ||||||||
—Basic | 0.35 | (0.79) | 0.40 | 0.05 | ||||
—Diluted | 0.35 | (0.79) | 0.39 | 0.05 | ||||
Non-GAAP net income (loss) per ADS | ||||||||
—Basic | 0.35 | (0.79) | 0.40 | 0.05 | ||||
—Diluted | 0.35 | (0.79) | 0.39 | 0.05 | ||||
Weighted average number of ADS used in | ||||||||
—Basic | 242,786,352 | 240,915,572 | 233,157,641 | 233,157,641 | ||||
—Diluted | 246,437,853 | 240,915,572 | 236,271,702 | 236,271,702 |
* HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results for three months ended March 31, 2023 have been retrospectively |
View original content:https://www.prnewswire.com/news-releases/huya-inc-reports-first-quarter-2024-unaudited-financial-results-302143357.html
SOURCE HUYA Inc.
FAQ
What were HUYA Inc.'s total net revenues for the first quarter of 2024?
How did HUYA Inc.'s net income compare between the first quarters of 2023 and 2024?
What was the average mobile MAUs for Huya Live in the first quarter of 2024?
What initiatives did HUYA Inc. take to enhance shareholder value?